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Newest first across public DOJ and U.S. Attorney press releases.
Monday 27 February 2023
Davenport Man Sentenced for Unlawful Possession of a Firearm and Distribution of FentanylRead the Press Release
Davenport, IA – A Davenport man was sentenced to 174 months of imprisonment, on Tuesday, February 21, 2023, for possessing a firearm as a felon and possessing a distribution amount of fentanyl.
According to court documents, on November 1, 2021, Linder Kai Divos, age 27, was in possession of a Taurus, nine-millimeter pistol, as well as 96 grams of methamphetamine and 564 fake Percocet pills, which contained fentanyl. Divos ran from the police. Prior to his arrest, law enforcement purchased pills containing fentanyl from Divos. After he is released from prison, Divos will serve five years of supervised release.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
DOJ and Lincoln Pharmacy in Tacoma settle allegations the pharmacy failed to follow the Controlled Substances ActRead the Press Release
Seattle – The U.S. Attorney’s Office and Lincoln Pharmacy in Tacoma have reached a settlement agreement over inspection findings by the Drug Enforcement Administration that Lincoln had failed to comply with some of the administrative requirements of the Controlled Substances Act (CSA). Lincoln Pharmacy will pay the United States $80,000 to resolve the claims. The settlement is one in a series of enforcement actions the DEA has taken with providers and pharmacies over administrative violations of the CSA.
“The Controlled Substances Act has requirements for medical professionals and pharmacies so that certain narcotic substances are carefully tracked,” said U.S. Attorney Nick Brown. “Those requirements are designed to allow DEA to monitor the distribution of these drugs to try to combat abuse and addiction and the harms that follow.”
The settlement with Lincoln Pharmacy states that during an inspection in June 2021, DEA found that in a variety of ways, Lincoln Pharmacy failed to appropriately track controlled substances coming to the pharmacy. For example: Lincoln Pharmacy failed to maintain records on substances such as oxycodone and hydrocodone between March 2020 and June 2021; Lincoln Pharmacy’s inventories of scheduled drugs were inadequate; the pharmacy failed to keep records of when and how much of certain scheduled drugs were delivered to the pharmacy; the pharmacy failed to secure some of the controlled substances; and the pharmacy failed to keep the ‘private key’ secure - something used to sign DEA orders.
Lincoln is paying the $80,000 settlement but does not admit any liability.
This is the third entity to settle administrative claims with the U.S. Attorney’s Office over administrative failure to follow the Controlled Substances Act.
In September 2021, JRK Pharma Inc d/b/a Edmonds Pharmacy settled allegations that between October 2019 and May 2021, it filled 347 prescriptions for controlled substances written by two practitioners who either did not have valid state licensed to practice medicine or did not have an active DEA license to prescribe controlled substances. Edmonds Pharmacy paid $20,000 to resolve the allegations and does not admit liability.
In August 2022, Dr. Akiko Kato, a naturopathic physician, signed a settlement stating that she prescribed controlled substances that were outside her naturopathic license and limitations under the CSA. Between October 2016 and October 2021, she wrote 644 prescriptions for substances such as Dextroamphetamine, Alprazolam, Clonazepam, Ketamine, and Phentermine. Dr. Kato was not authorized to prescribe such prescriptions. Dr. Kato paid a $37,500 settlement.
These cases were a result of a concerted focus of DEA to prevent pharmacies from filling prescriptions written by providers without prescribing authority for those substances.
“The DEA will hold those medical practitioners accountable who fail to comply with the Controlled Substance Act (CSA) in order to deter pharmaceuticals from being abused,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division.
The DEA investigated these matters and the cases were resolved by Assistant United States Attorneys Matt Waldrop and Ashley Burns.
Convicted Domestic Abuser Sentenced to over 3 Years in Federal Prison for Illegally Possessing a Firearm After Fleeing Police at 120 Miles-per-HourRead the Press Release
INDIANAPOLIS- Max Gellersen, 27, of Indianapolis, was sentenced to 46 months in federal prison after pleading guilty to Possession of a Firearm by a Person Convicted of a Misdemeanor Crime of Domestic Violence.
According to court documents, on August 6, 2020, Indianapolis Metropolitan Police Department (IMPD) officers responded to a domestic disturbance. By the time the officers had arrived, Gellersen had left the home. The victim stated that Gellersen pointed a gun at her, struck and choked her.
Later that day, officers attempted to stop Gellersen for a probation violation while he was driving. Gellersen failed to comply and led police on 120 mile per hour vehicle chase that ultimately ended when his vehicle caught on fire. While under arrest, Gellersen directed police to where they would find the firearm in his home.
IMPD officers searched Gellersen’s home and found a Colt Series 4 handgun in the exact location that Gellersen described. Gellersen is prohibited from possessing a firearm under federal law due to his 2018 misdemeanor conviction for Domestic Battery in Boone County.
Zachary A. Myers, United States Attorney for the Southern District of Indiana, Randal Taylor, Chief of Police for IMPD, and Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division made the announcement.
“Many illegally armed perpetrators of gun violence in the home and in mass shootings have a prior history of committing domestic violence,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The U.S. Attorney’s Office, in partnership with ATF and IMPD, will continue to prioritize federal prosecution of the armed criminals who pose the greatest danger to those closest to them and to the public. The sentence imposed today demonstrates that domestic abusers who choose to illegally possess guns risk significant time in federal prison with no possibility of parole.”
ATF investigated this case with valuable assistance provided by IMPD. The sentence was imposed by U.S. District Court Judge James P. Hanlon. Judge Hanlon also ordered that Gellersen by supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S Attorney Myers thanked Assistant United States Attorneys Abhi Kambli and Jayson W. McGrath, who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
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Chugiak Man Indicted for Sexually Exploiting ChildrenRead the Press Release
ANCHORAGE – A federal grand jury returned an indictment on February 23, 2023, charging Jeremy Scott Daniels, 37, of Chugiak for crimes involving the sexual exploitation of children.
The indictment and additional details set out in court documents filed by the government allege that, in December 2021, Daniels used social media to entice and induce a minor to engage in sexually explicit activity and produce child pornography with him. The filings further allege that in October 2010, Daniels communicated online with undercover law enforcement, unbeknownst to him, and attempted to entice a fictitious child, whom he believed to be an 8-year-old girl, to engage in sexually explicit activity with him. The same filings also allege that Daniels distributed, received, and possessed child pornography at various points throughout 2020 and 2022. Between May and June 2020, on ten occasions, Daniels used the messaging application Kik to transmit child pornography videos to other users. On January 28, 2022, the date of Daniel’s arrest, the FBI also recovered child pornography involving prepubescent minors on Daniel’s cellphone.
If the public has any further information regarding Daniels’s activities, please contact the FBI Anchorage Field Office at 907-276-4441.
Daniels was previously taken into federal custody on January 28, 2022, following the government’s filing of a complaint. The indictment charges Daniels with production of child pornography; coercion and enticement; and distribution, receipt and possession of child pornography. The defendant previously made his initial court appearance on the complaint on February 2, 2022, before U.S. Chief Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. If convicted, Daniels faces a mandatory minimum penalty of 15 years imprisonment and maximum penalty of 30 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 (FBI) Child Exploitation and Human Trafficking Task Force conducted the investigation leading to the indictment in this case.
Assistant U.S. Attorney George Tran is prosecuting the case.
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 U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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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Chief Financial Officer Sentenced to Three Years for Embezzling More Than $1.3 MillionRead the Press Release
CHICAGO — The former chief financial officer of a suburban IT consulting firm has been sentenced to three years in federal prison after embezzling over $1.3 million from his former company, of which he was a partner, CFO, and Managing Member.
ANTHONY FREMAREK, 49, of Plainfield fraudulently caused funds from two of the Schaumburg-based company’s bank accounts to be used to pay his personal credit cards, from 2013 to 2019. Fremarek attempted to conceal the embezzlement by falsifying entries in the company’s accounting system to disguise the payments as seemingly legitimate business expenses and submitting falsified financial information to the company’s banks. Fremarek pleaded guilty to one count of wire fraud in November 2022.
The sentence was imposed by U.S. District Court Judge Robert Gettleman on February 23, 2023.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
“[A]s soon as [defendant] had access to the company’s accounts and financial records, he began abusing his position out of pure greed,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Defendant . . . unrepentantly betray[ed] the trust of his former partners and employees and stopped only when he was caught and terminated.”
Central Valley Man Pleads Guilty to Nearly $9 Million Cow Manure Ponzi SchemeRead the Press Release
FRESNO, Calif. — Ray Brewer, 66, of Porterville, and Sheridan, Montana, pleaded guilty today to wire fraud, money laundering, and identity theft charges for running a multimillion-dollar fraud scheme where he purported to turn cow manure into green energy, U.S. Attorney Phillip A. Talbert announced.
According to court records, from March 2014 through December 2019, Brewer stole $8,750,000 from investors by claiming to build anaerobic digesters on dairies in Fresno, Kern, Kings, and Tulare Counties, as well as other counties in California and Idaho. Anaerobic digesters are large machines that use microorganisms to breakdown biodegradable material and turn it into methane. The methane can then be sold on the open market as green energy. The methane also produces Renewable Energy Credits (REC), which represent the property right to the reduction in greenhouse gas emissions achieved through green energy creation. RECs are commonly purchased by companies to meet green energy regulatory, contractual, and initiative requirements or commitments. Brewer’s investors were supposed to receive 66% of all net profits as well as tax incentives.
Brewer made various misrepresentations to his investors. Brewer took the investors on tours of dairies where he said that he was going to build the digesters and sent them forged lease agreements with the dairy owners. He also sent the investors altered agreements with banks that made it appear as though he had obtained millions of dollars in loans to build the digesters. Finally, he sent the investors forged contracts with multinational companies that made it appear as though he had secured revenue streams. None of this was true.
After Brewer received the investors’ money, he transferred the funds to multiple other bank accounts that he opened in the names of different entities, his family members, and an alias. He used false descriptions for the transfers. He did so to conceal the location, source, ownership, and control of the money before using it for personal expenditures. These expenditures included two plots of land that were 10 or more acres each, a 3,700 square foot custom home, and new Dodge Ram pickup trucks.
Brewer subsequently told his investors that the digesters were progressing when that was not the case. He did so by sending them fake construction schedules, fake invoices for project-related costs, fake power generation reports, fake RECs, and fake pictures.
In some instances, Brewer purported to refund investors all or some of their money. The refunds, however, came from newly received money from other investors who had not authorized Brewer to use their money in this way. When Brewer’s investors realized the fraud and obtained civil judgments against him, he moved to Montana and assumed a new identity. He later claimed to have been wrongfully arrested before admitting who he was.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Social Security Administration Office of Inspector General. Assistant U.S. Attorneys Joseph D. Barton, Henry Z. Carbajal III, and Alyson A. Berg are prosecuting the case.
Brewer is scheduled to be sentenced on June 26, 2023, by U.S. District Judge Jennifer L. Thurston. Brewer faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 for the wire fraud conviction. He also faces a maximum statutory penalty of 20 years in prison and a fine a of $500,000 or twice the amount of money involved for the money laundering conviction, whichever is the greater. Finally, he faces a mandatory two years in prison, consecutive to other counts, for the aggravated identity theft conviction. 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.
Carson Man Sentenced to More Than 11 Years in Prison for Role in International Conspiracy to Launder Money Taken from Fraud VictimsRead the Press Release
LOS ANGELES – A Carson man who was a central figure in an international fraud and money-laundering network that targeted $25 million through a variety of frauds – including romance scams and elder fraud – was sentenced today to 135 months in federal prison.
Valentine Iro, 34, the lead defendant in a 252-count federal grand jury indictment that charged 80 individuals, was sentenced by United States District Judge R. Gary Klausner. Judge Klausner also ordered Iro to pay $1,397,553 in restitution.
Iro pleaded guilty in October 2020 to one count of conspiracy to engage in money laundering. He has been in federal custody since August 2019.
From October 2014 to August 2019, Iro helped lead a massive international criminal network that conspired to defraud individuals and companies all over the world and then to launder an intended amount of more than $25 million in intended ill-gotten gains. Known globally to fraudsters and their middlemen, Iro communicated primarily through encrypted messaging applications and phone calls. He worked to connect the fraudsters, who were committing various online scams, with money movers and bank accounts that could be used to receive and launder money from victims.
Iro knew that the scams included business email compromise (BEC) fraud, romance scams, and other fraud schemes. A native of Nigeria, Iro at times used code words and Nigerian pidgin – an English-based dialect used across that nation – to avoid detection by law enforcement. The fraudsters perpetrating these criminal activities largely were located outside the United States.
As part of the scheme, Iro negotiated his “cut” of the illegal proceeds that he would keep for himself for organizing the receipt and laundering of funds. He then would select or find a bank account, or assist in opening bank accounts, to be used to receive victims’ money. Iro collected bank account information for banks in the Los Angeles area and in other cities and nations often in preparation for requests to come from co-conspirators.
For romance scams and elder fraud, Iro sometimes used bank accounts under his personal control. For BEC frauds, if a bank account with a specific business name was required to trick a business-victim into making a payment, Iro often coordinated with “money movers” to open accounts that could receive funds obtained, according to court documents. In addition to making the fake business name mirror the name of a legitimate company, members of the conspiracy routinely filed fictitious business name statements with the Los Angeles County Registrar/Recorder’s Office that were presented to banks when the fraudulent accounts were opened.
Once a victim deposited funds into a bank account or a money service account, Iro coordinated with others to further launder the funds. Members of the conspiracy sometimes wired funds to other bank accounts under their control; in other cases, they simply withdrew funds as cash or negotiable instruments such as cashier’s checks.
When stolen funds were withdrawn as cash, the conspirators frequently used illicit money exchangers to move funds overseas, generally avoiding transferring the funds directly through banking institutions. To do this, Iro coordinated the transfer of a victim’s funds from a fraudulent bank account they controlled to U.S. bank accounts belonging to illicit money exchangers. Those money exchangers, in turn, used a Nigerian banking application to transfer other funds in naira (₦), the currency of Nigeria, from Nigerian bank accounts they controlled to the Nigerian bank accounts specified by Iro. This method was used to transfer millions of dollars to Nigerian co-conspirators without directly transferring funds overseas.
“This case is part of our multiprong approach to protect Americans from attempts to steal their money through elaborate scams being perpetrated around the world,” said United States Attorney Martin Estrada. “Through lies and deceit, these fraud artists try to fleece businesses and individuals, including the elderly and vulnerable. This case demonstrates that we can and will identify, charge, and prosecute fraudsters and their money laundering accomplices, no matter how far across the world their criminal network may stretch.”
“Defendant Iro masterminded this international money laundering scheme for years and, in the process, stole money and identities from hundreds of victims, including some who were led to believe they were in a romantic relationship only to learn they were being scammed,” said Donald Alway, the Assistant Director in Charge of the FBI's Los Angeles Field Office. “As we continue to investigate this case and look for fugitives, we urge Americans to learn how to identify BEC, romance, and other schemes, which have increased dramatically in recent years.”
Federal prosecutors have secured 21 convictions in this case so far. Additional defendants have been arrested in Nigeria, and others are at large.
The FBI Cyber Task Force led this investigation. The Justice Department also recognizes substantial assistance from the United States Department of State’s Diplomatic Security Service; the Los Angeles County District Attorney’s Office; the Orange County District Attorney’s Office; the Ventura County District Attorney’s Office; the San Bernardino Police Department; the Los Angeles County Sheriff’s Department; and the California Franchise Tax Board.
Many of the FBI’s Legal Attachés provided assistance throughout this investigation, as did the Office of International Affairs in the Justice Department’s Criminal Division and foreign authorities around the world.
Multiple private sector partners were also instrumental throughout this investigation, including Palo Alto Networks, Flashpoint, and the National Cyber-Forensics and Training Alliance (NCFTA).
Assistant United States Attorney Sue J. Bai of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
The FBI has issued a report on the rise of BEC schemes, and published a recap of Operation WireWire, which was an international effort to disrupt international BEC scams. An FBI public service announcement that warns of the dangers of BEC schemes encourages businesses to “trust but verify.”
California Man Sentenced to More than Seven Years in Federal Prison for Trafficking MethamphetamineRead the Press Release
COLUMBIA, SOUTH CAROLINA — David Ruger, 44, of Long Beach, California, was sentenced to more than 7 years in federal prison after pleading guilty to conspiracy to possess with intent to distribute and to distribute methamphetamine.
Evidence presented to the Court showed that over several years, Ruger was involved in a methamphetamine trafficking conspiracy. Ruger’s role in that conspiracy was as a methamphetamine source of supply for distributors in South Carolina. Over the course of the conspiracy, Ruger was attributed more than four kilograms of methamphetamine.
United States District Judge Mary Geiger Lewis sentenced Ruger to 87 months in prison, to be followed by a 5-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Richland County Sheriff’s Department, the Drug Enforcement Administration (DEA), and the United States Postal Inspection Service. Assistant U.S. Attorney Katherine Flynn prosecuted the case.
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Bullying and Internet Safety a Top Priority for U.S. Attorney’s Office Community Outreach StaffRead the Press Release
MIAMI – Nearly one in four students ages 12-18 experiences bullying. It can eat away at a student’s self-esteem and make attending school a serious challenge. That’s why staff from the Law Enforcement Coordination and Community Outreach Section of the U.S. Attorney’s Office, Southern District of Florida, regularly travel to area schools to shine a light on this behavior at an early age.
Most recently, more than 100 fifth and sixth graders gathered in the Academir Charter School East gymnasium in Doral, Fla., for a presentation about bullying, cyberbullying, and tips to stay safe on the internet.
According to research, one typically bullies because he or she likely was bullied themselves. And rather than stop the cycle of behavior, they choose to bully for fear of becoming a victim.
“When being bullied, don’t take the bait,” said Law Enforcement Coordination Specialist Darcey Lindsley. “Don’t get upset because that’s exactly what they want you to do. If someone says you’re ugly, respond with well I think you’re beautiful.”
And always report bullying. When it’s reported, there is a record of it.
“If you see something, get involved,” said Lindsley. “Be that person you want others to be toward you.”
In the past, bullying was usually face-to-face. Now it’s all over social media and many children become victims of it.
“Who knows what cyberbullying is?” asked Lindsley. Nearly every hand went up. “To be considered cyberbullying it needs to be minor against minor. After that it becomes harassment. Judges are taking this type of bullying very seriously. They aren’t necessarily slapping minors on the wrist anymore.”
Regarding internet safety, Lindsley stressed the need to always be skeptical about online chatting. That fellow 10-year-old on the chat quite easily could be a 40-year-old with bad intentions.
“You have to think,” said Lindsley. “Don’t slip up and don’t be so trusting. Don’t reveal too much as you never know who is on the other end of that instant message.”
Law Enforcement Coordination Specialist Darcey Lindsley of the U.S. Attorney’s Office, Southern District of Florida, rewards a student with a piece of candy for a correct answer during a recent presentation on bullying, cyberbullying, and internet safety.
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Brothers Convicted of Methamphetamine ConspiracyRead the Press Release
Memphis, TN – Today, a federal jury convicted brothers Julio Garcia, 42, and Juan Garcia, 38, of conspiracy to distribute 500 grams or more of methamphetamine. United States Attorney Kevin G. Ritz announced the guilty verdict.
According to information presented in court, in 2019, investigators with Homeland Security Investigations (HSI) began investigating the drug trafficking activities of the brothers. Julio Garcia was serving a 10-year federal sentence at the time for another drug offense and while in custody he used contraband phones to continue his drug trafficking activities.
Juan Garcia, who was not in custody, served as a “middle-man.” He was tasked with, among other things, accepting payments for shipments of narcotics and depositing the money from those payments into various bank accounts. During this conspiracy, investigators were able to seize two shipments, each containing over 1 kilogram of methamphetamine.
Julio Garcia is scheduled to be sentenced on June 27, 2023, and Juan Garcia is scheduled to be sentenced on June 28, 2023, both before United States District Judge Mark S. Norris. Both men face not less than 10 years imprisonment, not more than life, not more than a $10,000,000 fine, and not less than five years of supervised release.
This case was investigated by Homeland Security Investigation, the Federal Bureau of Investigation, the United States Postal Inspection Service, the Shelby County Sheriff’s Office, the Tennessee Bureau of Investigation, and the Desoto County Sheriff’s Department.
This prosecution, as well as the previous investigation into Julio Garcia, is part of an investigation conducted by the Organized Crime and Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking organizations and organized criminal enterprises, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
United States Attorney Kevin Ritz thanked Assistant United States Attorneys Greg Allen and Michelle Kimbril-Parks, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Brookline Man Admits Robbing Dormont Dollar BankRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal law, Acting United States Attorney Troy Rivetti announced today.
Ahmed Asiri, 26, of the City’s Brookline neighborhood, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that on December 7, 2022, Asiri robbed the Dollar Bank located at 3029 West Liberty Ave, in Pittsburgh, Pennsylvania 15216. As a result of the robbery, Asiri obtained $20,000 in United States currency. These funds were later recovered by law enforcement.
Judge Horan scheduled sentencing for June 21, 2023 at 10:30 a.m. The law provides for a total sentence of not more than 20 years in prison, a fine of not more than $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Carl J. Spindler is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County Police Department, and the Dormont Police Department conducted the investigation that led to the prosecution of Ahmed Asiri.
Boone County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Troy Wilson Wheatley, 42, of Boone County, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on August 30, 2021, law enforcement officers responded to reports of a shooting at Wheatley’s residence near Chapmanville. Officers encountered Wheatley and seized a Ruger, model Security-9, 9mm pistol and a Smith & Wesson, .22-caliber pistol. One firearm was in a holster on Wheatley’s hip and the other was in his back pocket. Wheatley admitted to possessing the firearms and further admitted to the officers that he had discharged a firearm when his nephew drove past the residence that morning.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Wheatley was prohibited from possessing a firearm because of his prior felony conviction for delivery of a controlled substance in Nicholas County Circuit Court on February 3, 2006.
Wheatley is scheduled to be sentenced on June 22, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
Acting U.S. Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Boone County Sheriff’s Department, and the West Virginia State Police.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorneys Nowles Heinrich and Lesley Shamblin are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-225.
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Bergen County Man Charged for Possession of Machine Gun, Rifle, Handgun, and Fraudulent United States Marshals Service Credentials in Newark AirportRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was charged following his attempt to bring firearms, ammunition, a bulletproof vest, fraudulent law enforcement credentials, and other items on a domestic flight to Fort Lauderdale, Florida, U.S. Attorney Philip Sellinger announced today.
Seretse Clouden, 42, of Wallington, New Jersey, is charged by complaint with unlawful possession of firearms and ammunition by a convicted felon and fraudulent possession of an identification document and authentication feature of the United States. He made his initial court appearance today before the U.S. Magistrate Judge James B. Clarke III in Newark federal court and was detained.
According to the documents filed in this case and statements made in court:
On Dec. 30, 2022, Clouden entered Newark Liberty International Airport for a scheduled flight to Fort Lauderdale. During routine screening of checked luggage that was destined for Fort Lauderdale, Transportation Security Administration agents discovered two .40 caliber Glock magazines, each containing 15 rounds of .40 caliber ammunition and a ballistic vest carrier that displayed the words “Deputy Marshal.”
Further investigation revealed that the checked luggage belonged to Clouden, which resulted in additional screening of Clouden’s other luggage, which contained an ASP expandable baton, a spring loaded knife, a taser, a .40 caliber Glock 22 handgun, a .308 caliber DPMS Panther Arms rifle, and one 5.56 caliber AR-15 rifle, which meets the definition of a machine gun.
That luggage also contained “United States Marshal” credentials, bearing Clouden’s name and photograph, and a “United States Marshal” badge. An inquiry with the United States Marshals Service confirmed that Clouden is not, and was not, employed with the United States Marshal Service.
The count of unlawful possession of firearms and ammunition by a convicted felon carries a maximum potential penalty of 15 years in prison. The count of fraudulent possession of an identification document and authentication feature of the United States carries a maximum penalty of five years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; special deputies of the U.S. Marshals Service, under the direction of Marshal Juan Mattos; officers of the Port Authority Police Department, under the direction of Superintendent Edward Cetnar; and officers of the Transportation Security Administration.
The government is represented by U.S. Attorney Desiree Grace, Deputy Chief of the Criminal Division, and Jenny Chung, Assistant U.S. Attorney of the Office’s OCDETF/Narcotics Unit, in Newark.
Another guilty of trafficking women in cantina backroomRead the Press Release
HOUSTON – A 30-year-old man who resided in Houston has pleaded guilty to several sex trafficking crimes and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Edgar Botello admitted to sex trafficking with force, fraud or coercion and conspiracy to do so as well as possession of child pornography.
“Sex traffickers prey on the vulnerable, including those in the United States without documentation,” said Hamdani. “These victims are often fearful of law enforcement and reluctant to come forward. I praise the bravery of the victims which led to the conviction of Botello and his mother. If you are a victim or know someone who is, please contact authorities. We work side-by-side with victims to bring people like Botello to justice.”
Botello worked with his mother - Maria Botello-Morales - to run a cantina known as Puerto Algre. There, they forced several females to engage in commercial sex in backrooms built specifically for that purpose.
As part of his plea, Botello threatened and intimidated these victims with violence to manipulate them into the sex acts for his personal financial benefit.
The victims reported they had started at the bar as waitresses. However, Botello-Morales used Botello as her representative and enforcer and told them they had to engage in commercial sex. If they refused, she threatened them with violence. The women reported Botello always carried a gun with him and, on occasion, threatened them.
Some of the victims witnessed violence and weapons at the bar and in the back area where the sex acts occurred. Each described how they had to take customers to the backrooms. They were given a condom wrapped in a paper towel, were to spend no more than 15 minutes in the room and charge approximately $70. Upon exit, they had to turn the money over to whoever was guarding the room, which was often Botello.
Law enforcement conducted a search at Botello’s residence on April 1, 2021. At that time, they found numerous weapons in his room. They also discovered a computer which was found to contain child pornography.
U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for June 12. At that time, Botello faces up to life in prison for the sex trafficking charges as well as up to another 10 years for the possession of child pornography.
Botello has been and will remain in custody pending that hearing. Botello-Morales, 56, pleaded guilty Jan. 3o and also remains in custody pending sentencing.
The Texas Alcoholic Beverage Commission (TABC) and Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Houston Police Department (HPD) as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
HTRA law enforcement includes members of the HPD; FBI; HSI; Texas Attorney General’s Office; IRS-Criminal Investigation; Department of Labor (DOL); DOL – Wage and Hour Division; Department of State; Federal Air Marshals; TABC; Texas Department of Public Safety; Texas Rangers; Texas Parks and Wildlife; Social Security Administration – OIG; Texas Department of Licensing and Regulation; Texas Department of Family and Protective Services as well as police departments in Houston Independent School District (ISD), Conroe ISD and Missouri City; Harris County constables offices – Precincts one and four; sheriff’s offices in Harris, Montgomery, Fort Bend, Brazoria and Waller counties in coordination with District Attorney’s offices in Harris, Montgomery, Fort Bend and Galveston Counties. They work in coordination with victim service providers such as YMCA, United Against Human Trafficking and Texas Forensic Nurse Examiners.
Established in 2004, the U.S. Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
7 defendants sentenced for conspiring to launder more than $11.8 million of online romance scam proceedsRead the Press Release
COLUMBUS, Ohio – The final defendant charged in a conspiracy to launder the money generated from online romance scams was sentenced in federal court here today to 18 months in prison and three years of supervised release.
Kwame O. Yeboah, 38, of Columbus, conspired to launder more than $1.7 million through bank accounts in his control. As part of his sentence, Yeboah is ordered to pay the $1.7 million in restitution.
Yeboah and six other co-conspirators were convicted and sentenced for laundering the proceeds of online romance scams; they did not conduct the actual online scamming. The total amount generated by romance fraud that these individuals laundered was more than $11.8 million.
The other defendants convicted and sentenced include:
Name
Age
City of Residence
Sentence Received
Robert K. Asante
39
Canal Winchester
60 months in prison
Eric Ahiekpor
52
Lewis Center
36 months in prison
Edward Amankwah
45
Westerville
48 months in prison
Uriah Lamdul
30
Columbus
24 months in prison
Mohamed Toure
28
Columbus
18 months in prison
Alexis Wellington
32
Canal Winchester
Term of probation
The romance scams involved individuals who created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons, and provided account information and directions for where money should be sent. In part, these accounts were in the names of the defendants, their family members and their companies.
Funds were not used for the purposes claimed by the perpetrators of the romance scams. Instead, the co-conspirators conducted transactions designed to conceal, such as withdrawing cash, transferring funds to other accounts, buying official checks, sending wires to Ghana, China, the United States, and more. Part of the conspiracy was for the defendants to move the romance fraud proceeds from the United States to Ghana.
As part of their sentences, the defendants will pay the approximately $11.8 million in total.
Toure was also sentenced for money laundering as part of an unrelated COVID fraud scheme. Another individual submitted a fraudulent application for an Economic Injury Disaster Loan (EIDL). The U.S. Small Business Administration approved the COVID disaster-related loan and sent $110,000 in loan proceeds to Toure’s bank account. He then laundered the funds to conceal and disguise the fraud proceeds.
Ahiekpor was also sentenced for Wire Fraud for his role in defrauding the EIDL Program. In June 2020, he obtained a fraudulent $150,000 EIDL for his business. He spent the funds on two boats, an outboard motor, and a boat trailer. Ahiekpor committed part of his fraud scheme while on pretrial release for his money laundering charges, which means he will serve his Wire Fraud sentence after he completes his Money Laundering sentence.
The public can report online romance scams and other internet crimes at ic3.gov.
Experts offer tips for flagging romance scams:
- Be careful what you post and make public online. Scammers can use details shared on social media and dating sites to better understand and target you.
- Beware if the individual seems too perfect or quickly asks you to leave a dating service or social media site to communicate directly.
- Beware if the individual attempts to isolate you from friends and family or requests inappropriate photos or financial information that could later be used to extort you.
- Beware if the individual promises to meet in person but then always comes up with an excuse why he or she can’t. If you haven’t met the person after a few months, for whatever reason, you have good reason to be suspicious.
- Never send money to anyone you have only communicated with online or by phone. Never provide your financial information or allow your bank accounts to be used for transfers of funds.
Requests for gift cards are also a red flag. The FBI has additional tips and information for protecting against romance and confidence fraud: https://www.fbi.gov/how-we-can-help-you/safety-resources/scams-and-safety/common-scams-and-crimes/romance-scams.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10 a.m.–6 p.m. Eastern Time, Monday–Friday. English, Spanish and other languages are available.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI), announced the sentence imposed today by U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.
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3D Printing Company to Pay up to $4.54 Million to Settle False Claims Act Allegations for Export Violations in Connection with NASA and DOD ContractsRead the Press Release
A 3D printing company has agreed to pay the United States up to $4.54 million to resolve allegations that it violated the False Claims Act by improperly transmitting export-controlled technical data to China in violation of the export control laws of the United States in connection with certain NASA and DOD contracts, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
In parallel agreements also related to alleged export violations, the company has agreed to a $20 million administrative settlement with the U.S. Department of State, and a $2.77 million administrative settlement with the U.S. Department of Commerce.
Per the terms of a civil settlement executed with the Department of Justice on February 27, 2023, South Carolina-based 3D Systems Corporation agreed to pay $2.27 million in restitution to the federal government within the next 30 days. The company may be required to pay an additional $2.27 million in penalties under the Justice Department settlement agreement, for a total of up to $4.54 million, if it fails to pay at least that amount in civil penalties to the Department of State and the Department of Commerce in connection with the parallel administrative settlements referenced above.
According to the Justice Department Settlement Agreement, 3D Systems – through its Quickparts subsidiary – completed on-demand manufacturing projects both directly and indirectly on contracts issued by DOD and NASA, including for projects involving technical or other data potentially classified under and controlled by the International Emergency Economic Powers Act, the Arms Export Control Act, the Export Administration Regulations, and/or the International Traffic in Arms Regulations (collectively, the Export Control Laws).
Generally, the Export Control Laws prohibit certain controlled items and/or intellectual property from being exported to certain foreign countries, including the People’s Republic of China, without a license or authorization from the appropriate federal agencies. In the Justice Department settlement agreement, the United States alleged that between January 1, 2012 and December 31, 2017 3D exported certain items and/or intellectual property to China without the appropriate license or authorization in violation of the Export Control Laws in connection with certain contracts issued by DOD and NASA in violation of the False Claims Act.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
This matter was jointly investigated by the U.S. Department of Defense Office of Inspector General, Defense Criminal Investigative Service, the National Aeronautics and Space Administration Office of Inspector General, Homeland Security Investigations, and the U.S. Department of Commerce, Office of Export Enforcement. Assistant U.S. Attorney Kenneth Coffin handled this matter on behalf of the Department of Justice.
Sunday 26 February 2023
U.S. Attorney's Office Launches “United Against Hate” Initiative with Outreach EventRead the Press Release
CHARLOTTE, N.C. – Today, U.S. Attorney Dena J. King, along with members of the U.S. Attorney’s Office Civil Rights Team and federal and local law enforcement partners, met with representatives of the Sikh community.
Today’s meeting was the first of a series of planned outreach and educational events to be conducted by the U.S. Attorney’s Office as part of the Justice Department’s “United Against Hate” (UAH) initiative. In September 2022, the Justice Department announced the launching of UAH, a nationwide program created to combat the rise in unlawful acts of hate.
In the Western District of North Carolina, the UAH initiative will include a series of events focusing on community groups at risk of being targeted in hate crimes and incidents of hate. Each event will give participants an opportunity to directly connect with federal prosecutors and law enforcement to increase community understanding of hate crimes and hate incidents; provide a mechanism for reporting potential hate crimes and civil rights violations; build trust between law enforcement and communities; and create and strengthen alliances with government partners and community groups to combat unlawful acts of hate.
“People in communities across the Western District have the right to live their lives free from fear, violence, and intimidation. This fundamental right is guaranteed and protected by the Constitution. Unfortunately, certain groups are frequent targets of acts of hate and abuse,” said U.S. Attorney King. “The purpose of this initiative is to protect our communities, educate members on their rights and the relevant law, provide an avenue for reporting hate crimes and incidents of hate, and increase trust in our criminal justice system. I am looking forward to attending the outreach events, participating in a productive dialogue with community members, and working collaboratively to combat hate crimes.”
Today’s event, which was held at the Gurdwara Khalsa Darbar, the Sikh faith center in Charlotte, featured a presentation by Assistant U.S. Attorneys with experience in prosecuting hate crimes and civil rights violations, and law enforcement representatives with the FBI, and the Charlotte Mecklenburg Police Department. In addition to law enforcement, representatives from the Justice Department’s Community Relations Service were also in attendance. The presenters facilitated a discussion with representatives of the Sikh community centered on hate crimes, including defining hate crimes versus hate incidents; the importance of reporting acts of hate to law enforcement; providing options for responding to hate incidents when situations do not constitute federal or state crimes; and distinguishing unlawful conduct from protected First Amendment activity, with a focus on identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
“The Sikh community of Charlotte greatly values the relationship it has built with the U.S. Attorney’s Office, going back to 2008. With the Office’s help, we have always been able to reach out to federal law enforcement for assistance with any challenge our community faces, whether it is school bullying, diversity training at the airport, security of the Gurdwara, or civil rights matters. Today, the U.S. Attorney’s Office continues to play a pivotal role in shaping and nurturing this relationship. Our community is grateful for everything this Office has done for us,” said Pushpinder Garcha, a representative of the United Sikhs.
The U.S. Attorney’s Office will hold additional UAH events in the upcoming months to engage with communities throughout the Western District.
On May 27, 2021, U.S. Attorney General Merrick B. Garland issued a memorandum on improving the Justice Department’s efforts to combat unlawful acts of hate, and emphasized the need to actively engage in outreach and educational efforts centered around hate crimes.
Saturday 25 February 2023
Springfield, Illinois, Man Convicted of Possession of Firearm by a FelonRead the Press Release
SPRINGFIELD, Ill. – A federal jury returned a guilty verdict on February 22, 2023, against Aaron Jackson, 30, of Springfield, Ill. for knowingly possessing a firearm as a convicted felon. Sentencing for Jackson is scheduled for June 21, 2023, at the U.S. Courthouse in Springfield.
Over two days of testimony in front of United States District Judge Sara Darrow, the government presented evidence establishing that Jackson had previously been convicted of two felonies when he was stopped for traffic offenses on August 18, 2021, and was found to be in possession of a firearm. Officers from the Springfield Police Department located a loaded Ruger LCP 380 in the front seat of the car Jackson was driving. Jackson was the only occupant of the car and was also in possession of methamphetamine, marijuana, and cocaine.
Jackson remains in the custody of the United States Marshals Service. At sentencing, Jackson will face statutory penalties of up to ten years’ imprisonment, up to a $250,000 fine, and up to three years of supervised release.
The case investigation was conducted by the Springfield Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorneys Sierra Senor-Moore and Tanner Jacobs represented the government at trial.
The case against Jackson 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.
Quincy, Illinois, Woman Convicted of Various Drug and Gun OffensesRead the Press Release
SPRINGFIELD, Ill. – A federal jury returned guilty verdicts on February 23, 2023, against Kelsey Hickman, 31, of Quincy, Ill. for distributing more than five grams of methamphetamine, possessing with the intent to distribute methamphetamine, and possessing a firearm as a convicted felon. She was acquitted of possessing a firearm in furtherance of drug trafficking. Sentencing for Hickman has not yet been scheduled.
Over two days of testimony in front of Senior United States District Judge Sue E. Myerscough, the government presented evidence establishing that Hickman sold 7.98 grams of methamphetamine in February 2021; she possessed with the intent to distribute methamphetamine; and she illegally possessed a firearm after having previously been convicted of a felony in March 2021. Following the trial, Hickman was remanded into the custody of the United States Marshals Service.
At sentencing, Hickman will face between five and forty years’ imprisonment for the distribution of methamphetamine, up to twenty years’ imprisonment for possession with intent to distribute methamphetamine, and up to ten years’ imprisonment for illegally possessing the firearm. She also faces up to a lifetime term of supervised release and up to a $5 million fine.
The case investigation was conducted by the Quincy Police Department and the Illinois State Police, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Federal Bureau of Investigation, Springfield Field Office. Assistant U.S. Attorneys Matt Weir and Nate Bertrand represented the government at trial.
The case against Hickman 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.
Friday 24 February 2023
Заява Генерального Прокурора Мерріка Б. Гарланда у зв’язку з Річницею Нападу Росії на УкраїнуRead the Press Release
Сьогодні Міністерство юстиції опублікувало наступну заяву Генерального Прокурора Мерріка Б. Гарланда у зв’язку з Річницею Нападу Росії на Україну:
Протягом минулого року США і світ спостерігали жахливі картини й чули трагічні історії про жорстокість і смерть, спричинені несправедливим і неспровокованим нападом Росії на Україну.
Сьогодні Міністерство юстиції підтверджує свою рішучу підтримку українським партнерам у боротьбі за правосуддя.
Прокурори Міністерства юстиції з команди із притягнення до відповідальності за воєнні злочини як ніколи тісно співпрацюють з українськими колегами у справах розслідування конкретних злочинів, скоєних російськими силами, зокрема нападів на цивільних. Водночас Конгрес розширив наші повноваження щодо притягнення до відповідальності за скоєні воєнні злочини ймовірних виконавців, виявлених у Сполучених Штатах.
Наша оперативна група «KleptoCapture», до складу якої входять прокурори, агенти, аналітики, перекладачі, інші працівники Міністерства та партнери з правоохоронних органів, продовжує притягати до відповідальності та конфіскувати активи осіб, санкціонованих за підтримку Кремля і російських військ.
Ми також застосовуємо надані Конгресом нові законні повноваження для передачі певних активів, конфіскованих у російських олігархів, для відновлення України. На початку цього місяця я схвалив першу передачу таких коштів Державному департаменту для підтримки народу України. На черзі інші.
Я відчуваю гордість за виконання такої важливої роботи й за численних працівників Міністерства, які підтримують цю роботу.
Протягом минулого року український народ показав світові, що таке мужність. Міністерство юстиції продовжуватиме стояти пліч-о-пліч з нашими українськими й міжнародними партнерами стільки, скільки буде потрібно для захисту правосуддя і верховенства права.
English
West Warwick Man Sentenced in Unemployment Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A West Warwick man who admitted to a federal judge that he participated in a conspiracy to use the stolen identities of others to gain COVID related unemployment insurance benefits was sentenced today to three years in federal prison, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Richard Allen, 57, previously admitted to the court that he and other members of the conspiracy used stolen personal identifying information of other individuals, to file for COVID-related unemployment benefits in multiple states, including Ohio, Massachusetts, Arizona, and Texas. In the fraudulent applications, co-conspirators listed addresses associated with Allen to which benefit payments by check or debit card were mailed.
According to information presented to the court, Allen communicated with co-conspirators to activate fraudulently obtained benefit debit cards; withdrew funds from the debit cards; and sent a portion of the funds to co-conspirators, including via Bitcoin transactions.
Additionally, Allen admitted that he failed to report a change of income to the Social Security Administration (SSA), and specifically stated on SSA documents that “I do not receive any other type of income,” thus fraudulently continuing to collect Supplemental Security Income payments from the SSA he began receiving in June 2018.
Allen, detained in federal custody, pleaded guilty on June 29, 2022, to conspiracy to commit mail fraud, five counts of aggravated identity theft, and two counts of theft of government money. He was sentenced today by U.S. District Court Judge William E. Smith to 36 months of incarceration to be followed by 3 years of federal supervised release, and pay restitution in the amount of $152,054.
This case, as well as other instances of criminal activity related to fraudulent applications for pandemic-related unemployment insurance benefits are being investigated jointly by the FBI, the Rhode Island State Police, and the U.S. Department of Labor – Office of Inspector General. Cases are jointly reviewed, charged, and prosecuted by a team of prosecutors that include Assistant U.S. Attorneys Denise M. Barton, Stacey P. Veroni, and G. Michael Seaman, and Rhode Island Assistant Attorney General John M. Moreira, chief of the Rhode Island Attorney General’s Public Integrity Unit.
United States Attorney Cunha and Attorney General Neronha thank the Social Security Administration, Office of Inspector General for their assistance in the investigation of this matter.
Rhode Islanders who believe their personal identification has been stolen and used to fraudulently obtain unemployment benefits are urged to contact the Rhode Island State Police at [email protected] or the FBI Providence office at (401) 272-8310.
On May 17, 2021, the United States 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.
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West Des Moines Man Sentenced to 60 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
Des Moines, IA – A West Des Moines man was sentenced today to 60 years in prison for multiple child exploitation offenses.
For the last twelve years, Jonathan Francis Speidel, age 31, of West Des Moines, used social media platforms, including Snapchat, Kik, TikTok, and MeetMe, to communicate with minor females. During the conversations, Speidel directed numerous children to take explicit photos or videos of themselves. To persuade children to produce and send him child pornography, Speidel used various tactics. Among other things, Speidel misrepresented facts about himself, such as his name, employment information, and age; he paid children in exchange for sexually explicit content; he claimed to be looking for models; and he sent children child pornography or depictions of him masturbating. The minor victims ranged in age from 8 to 17 years old and were located across the United States, including several victims who lived in or near Des Moines.
Over the same period, Speidel collected and exchanged child pornography using various internet sites. On or about March 30, 2022, Speidel knowingly possessed visual depictions of child pornography, including over 800 images and over 200 videos, some of which included minors younger than twelve years old.
Speidel also traveled over state lines with the intent to engage in illicit sexual conduct with a child. While living in Oregon from October 2018 to August 2019, Speidel engaged in a sexual relationship with a child, who was between 14 and 15 years old. Speidel was charged in Oregon with several counts of sexual abuse. Those charges remain pending. After being charged, Speidel returned to the Des Moines area some time in 2020. In September 2020, Speidel flew to Oregon, picked up the child, who by that time had turned 16 years old, and drove the child to Washington. Speidel took the child to Washington, where the age of consent is 16, younger than the age of consent in Oregon. The purpose of Speidel’s trip was to engage in sexually explicit conduct with the child and to produce child pornography. In Washington, Speidel did both of those things with the child.
Following his prison term, Speidel will be on supervised release for life and required to register as a sex offender. There is no parole in the federal system.
After the sentencing, FBI Omaha Special Agent in Charge Eugene Kowel said, “We are proud of the work of our FBI Child Exploitation and Human Trafficking Task Force in Des Moines. This joint investigation brought an end to Jonathan Speidel’s appalling and heinous crimes. Today’s sentence ensures Speidel will no longer be allowed to victimize children. It also sends a message to predators, the FBI and our federal, state, and local partners will remain relentless to ensure children are protected.”
Iowa Division of Criminal Investigation Cyber Crime Bureau Special Agent in Charge, and Iowa Internet Crimes Against Children (ICAC) Task Force Commander Nathaniel McLaren said “This case highlights the collaboration of information between ICAC Task Force agencies combating this type of child sexual exploitation. The DCI Cyber Crime Bureau - Iowa ICAC Task Force worked closely alongside Ohio Law Enforcement, and Oregon (State) Law Enforcement to arrest the suspect. This collaboration ultimately led to the identification of numerous victims nationwide and multiple victims locally in the Des Moines area.”
United States Attorney Richard D. Westphal of the Southern District of Iowa said “Speidel is a dangerous child predator, pure and simple. Today’s sentence provides some degree of justice for Speidel’s actions to the victims, who in the face of indescribable trauma, have courageously contributed to help prevent Speidel from harming any other minors. For over a decade, he targeted, manipulated and enticed minors, exchanging thousands of electronic messages, with the goal to produce child pornography and engage in illegal sex acts. Our thanks to the Iowa Division of Criminal Investigation (DCI)’s Internet Crimes Against Children Task Force and the FBI Child Exploitation Task Force and their continued dedication to protecting children and bringing individuals like Speidel to justice.”
The case was investigated by the Iowa Division of Criminal Investigation’s Cyber Crime Bureau and Internet Crimes Against Children Task Force, the FBI Child Exploitation and Human Trafficking Task Force in Des Moines, the North Olmstead, Ohio Police Department, and the Gladstone, Oregon Police Department. Assistant United States Attorney Kyle Essley prosecuted the case.
The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorney’s Offices and the Department of Justice’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Parents and guardians are encouraged to have open and ongoing conversations about internet safety with children. For more information about internet safety education, please visit https://www.justice.gov/psc and click on the Publication & Resources tab.
Two Individuals Sentenced to Prison for Tax Fraud SchemeRead the Press Release
A North Carolina woman and a Maryland man were each sentenced today to 30 months in prison for conspiring to defraud the United States, aiding in the preparation of false tax returns and stealing government funds.
According to court documents, between 2013 and 2016, Sandra Denise Curl of Charlotte, North Carolina, and Percy Leroy Jacobs of Prince Frederick, Maryland, filed estate and trust tax returns (Forms 1041) on behalf of multiple fraudulent trusts they owned, seeking refunds to which they were not entitled. Curl and Jacobs also filed false personal returns, claiming fictitious tax withholdings in order to generate refunds. In total, the defendants attempted to defraud the IRS of more than $2.2 million.
In addition to the terms of imprisonment, U.S. District Judge George J. Hazel ordered both defendants to serve three years of supervised release and to each pay $959,044 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Jeffrey McLellan and George Meggali of the Tax Division and Assistant U.S. Attorney Michael Morgan for the District of Maryland prosecuted the case.
Two Individuals Sentenced to More Than Two Years in Federal Prison for Tax Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Sandra Denise Curl of Charlotte, North Carolina, and Percy Leroy Jacobs of Prince Frederick, Maryland late yesterday to 30 months each in federal prison, followed by three years of supervised release, for conspiring to defraud the United States, helping file false tax returns, and theft of government funds. Judge Hazel also ordered the defendants to each pay $959,044 in restitution. On March 21, 2022, a federal jury convicted the defendants after trial.
The sentences were announced by U.S. Attorney for the District of Maryland Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; and Special Agent in Charge Kareem A. Carter of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to evidence presented at trial, between 2013 and 2016, Curl and Jacobs filed tax returns on behalf of multiple fraudulent trusts they owned, seeking refunds to which they were not entitled. Curl and Jacobs also filed false individual tax returns in their own names, claiming fictitious tax withholdings in order to generate refunds. In total, the defendants attempted to defraud the IRS of more than $2.2 million.
U.S. Attorney Erek L. Barron and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division commended IRS-Criminal Investigation for its work in the case. U.S. Attorney Barron and Acting Deputy Assistant Attorney General Goldberg thanked Assistant U.S. Attorney Michael Morgan and Trial Attorneys Jeffrey McLellan and George Meggali of the Tax Division, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach
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Trinity County Man Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment Thursday against Anthony Jair Demedeiros, 23, of Weaverville, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Feb. 9, 2021, law enforcement received a report of Demedeiros boarding a bus, carrying a duffel bag believed to contain a firearm. Demedeiros was on searchable Post Release Community Supervision (PRCS) from a prior conviction in Tehama County for carrying a concealed firearm when having been previously convicted of a felony, and also had prior arrests for violent crimes.
Officers located the bus they suspected Demedeiros had boarded and followed it. When it came to a stop, officers boarded the bus and detained Demedeiros. Next to Demedeiros’ seat, officers saw a bag matching the description of the reported duffel bag. Demedeiros denied the bag was his and no other party on the bus claimed it as theirs. Officers seized the bag and inside it found a Bushmaster Carbon-15 .223-5.56 caliber rifle, with a telescope, partially disassembled (making it more readily concealable). All parts were present to reassemble a complete and operational rifle. The rifle had a round in the chamber and a 10-round magazine loaded with four rounds. A records check of the rifle’s serial number indicated that it had been reported stolen from an address in Trinity County.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Redding Police Department, and the Shasta County District Attorney’s Office. Assistant U.S. Attorney James Conolly is prosecuting the case.
If convicted, Demedeiros faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of 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.
Three Arrested in Attempted Human Smuggling Event Near Morses LineRead the Press Release
Burlington, Vermont - The United States Attorney for the District of Vermont announced that three persons were arrested near Morses Line on February 19, 2023 in connection with an attempt to smuggle individuals without legal status into the United States. Aaron Cruz-Castelazo, 32, a Mexican national who has no immigration status in the United States, and Marcos Rosas-Mendoza, 34, also a Mexican national without status here, appeared Wednesday in United States District Court in Burlington on a charge that they attempted to transport individuals without legal status within the United States. Emmanuel Moheno-Gomez, 30, a citizen of Mexico without legal status in the United States, appeared in court yesterday on a charge that he unlawfully entered the country. U.S. Magistrate Judge Kevin J. Doyle ordered that all three defendants be held without bail pending trial. Two other individuals without status in the United States who were apprehended with Moheno-Gomez were released to immigration custody for removal from the United States.
According to public court documents, in the late afternoon of February 19, law enforcement officials in Canada notified the Border Patrol in Vermont that a vehicle had dropped off three individuals just north of the border in Canada. Believing that the individuals were planning to enter the United States on foot, Border Patrol agents responded to the area and eventually apprehended three Mexican nationals, including Moheno-Gomez. During that investigation, agents also encountered a rental vehicle with North Carolina license plates. An agent stopped that vehicle when it drove to the area just south of the border where the three individuals likely would have crossed into the United States. Agents detained the driver, Cruz-Castelazo, and the passenger, Rosas-Mendoza. Agents later determined that Rosas-Mendoza had been in cellphone communication with one of the three individuals as they walked across the border.
The United States Attorney emphasizes that the charges against these defendants are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.As currently charged, Cruz-Castelazo and Rosas-Mendoza face up to five years of imprisonment if convicted. The unlawful entry charge against Moheno-Gomez is a misdemeanor punishable by up to six months of imprisonment. The actual sentences would be determined with reference to the Federal Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest credited the agents of the United States Border Patrol for their continued efforts to prevent the exploitation of foreign nationals by human smuggling organizations.
Rosas-Mendoza is represented by Assistant Federal Public Defender Steven Barth. Cruz-Castelazo is represented by Robert Katims, Esq. Moheno-Gomez is represented by John-Claude Charbonneau, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Texas Man Sentenced to Prison for Wire Fraud ConspiracyRead the Press Release
A Texas man was sentenced today to 65 months in prison for wire fraud conspiracy and aggravated identity theft.
According to court documents, Ryan Shern, 34, of Kyle, participated in a conspiracy to use stolen identity theft information to seek fraudulent tax refunds from the IRS in the names of unsuspecting taxpayers. From 2016 through 2019, to facilitate access to the payments, Shern allowed co-conspirators to direct such refunds to his and his wife’s personal bank accounts and to prepaid debit cards he purchased and controlled.
Shern used a portion of the tax refunds to purchase money orders and luxury goods for himself. On at least one occasion, Shern used a copy of a false tax return filed using stolen identifying information to persuade the bank that it should release to his account a fraudulent refund totaling more than $250,000. Shern also wired, or directed his wife to wire, funds to co-conspirator bank accounts.
In addition to the term of imprisonment, U.S. District Judge Lee Yeakel ordered Shern to serve three years of supervised release and to pay $726,165 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jaime Esparza for the Western District of Texas made the announcement.
IRS Criminal Investigation investigated the case.
Trial Attorneys Mitchell T. Galloway, Robert A. Kemins and Mary Frances Richardson of the Tax Division prosecuted the case.
Task Force KleptoCapture Unseals Two Cases Charging Evasion of Russian Economic CountermeasuresRead the Press Release
From the outset of Russia’s unprovoked, full-scale invasion of Ukraine, one year ago today, the Department of Justice has prioritized enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed alongside our global partners. Today, the Department continues that work by actions in two separate federal cases to disrupt sanctions evasion and smuggling networks supporting the Russian regime.
“Over the past year, the Ukrainian people have shown the world what courage looks like,” said Attorney General Merrick B. Garland. “For as long as it takes, the Department of Justice will continue to stand shoulder-to-shoulder with our Ukrainian and international partners in defense of justice and the rule of law.”
“It has been one year since Russia launched an unprovoked invasion of its neighbor, but the FBI has been working with our Ukrainian partners for years to battle Russian aggression there — and we aren’t going anywhere,” said FBI Director Christopher Wray. “The FBI's commitment to Ukraine remains unwavering, and we will continue to stand against Russia at home and abroad.”
The U.S. Attorney for the Southern District of New York has filed a civil forfeiture complaint against six real properties located in New York, New York; Southampton, New York; and Fisher Island, Florida, worth approximately $75 million. The complaint alleges that the properties beneficially owned by Russian oligarch Viktor Vekselberg are the proceeds of sanctions violations and were involved in international money laundering transactions. The case arises in the wake of the indictment of Vekselberg’s alleged strawman, Vladimir Voronchenko, a fugitive previously charged in the Southern District of New York. In the Eastern District of New York, a five-count indictment was unsealed today charging Ilya Balakaev, 47, of Moscow, with various offenses related to a years-long scheme to illegally smuggle sensitive devices used in counterintelligence operations from the United States to Russia for the benefit of the Federal Security Service of the Russian Federation (FSB), the principal intelligence and security agency of the Russian government. Balakaev is further charged with illegally exporting a gas detector and related software from the United States to Russia for the benefit of the Democratic People’s Republic of Korea (DPRK or North Korea). Concurrent with today’s action in the Eastern District of New York, the Department of Commerce separately issued a Temporary Denial Order denying the export privileges of Balakaev and his company, Radiotester OOO (aka Radiotester LLC), for 180 days with the possibility of renewal.
Today’s actions coincide with the one-year mark of Russia’s unprovoked war in Ukraine. Read more about the Justice Department’s efforts to hold Russia accountable here.
The Vekselberg Properties
According to court documents, on April 6, 2018, the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Vekselberg as a Specially Designated National (SDN) in connection with its finding that the actions of the Government of the Russian Federation in Ukraine constituted an unusual and extraordinary threat to the national security and foreign policy of the United States.
Prior to his designation by OFAC, between in or about 2008 and in or about 2017, Vekselberg, through a series of shell companies, acquired six real properties in the United States, today worth approximately $75 million:
- 19 Duck Pond Lane, Southampton, New York 11968.
- 515 Park Avenue, Units Units 21 and 2I, New York, New York 10022.
- 7002 Fisher Island Drive, Unit 7002 PH2, Miami Beach, Florida 33109.
- 7183 Fisher Island Drive, Units 7182 and 7183, Miami Beach, Florida 33109.
The FBI and HSI are investigating the case. The Justice Department’s National Security Division and Office of International Affairs, and OFAC provided valuable assistance.
Assistant U.S. Attorneys Jessica Greenwood, Joshua A. Naftalis, and Sheb Swett for the Southern District of New York are prosecuting the case.
United States v. Ilya Balakaev
As alleged in the indictment, between 2017 and the present, Balakaev contracted with a part of the FSB that is responsible for the Russian government’s communication security and cryptology, to repair spectrum analyzers and signal generators, devices used to detect surveillance equipment and to transmit covert communications. Because the devices were not readily available in Russia, the defendant established a network of individuals in the United States to assist him in purchasing the equipment, which the defendant then smuggled out of the United States, in violation of U.S. export control and sanctions laws.
In addition to his scheme to evade Russian sanctions, the defendant also illegally exported U.S. technology on behalf of a North Korean government official, in violation of U.S. export laws. As alleged, the defendant contracted with the First Secretary of the North Korean Embassy to the Russian Federation, based in Moscow, to obtain hazardous gas detectors and software from the United States for the benefit of the North Korean government.
If convicted on all counts, Balakaev, currently a fugitive, faces a maximum of 75 years in prison.
The FBI, HSI, Commerce Department’s Office of Export Enforcement (OEE), and CBP are investigating the case.
Assistant U.S. Attorney Sara K. Winik for the Eastern District of New York is prosecuting the case with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
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These cases were coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2, 2022, and under the leadership of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
Tampa Man Who Led Officers on High-Speed Chase Sentenced to More Than Six Years for Firearm and Drug Trafficking OffensesRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Raequin Smith (27, Tampa) to six years and three months in federal prison for possession with the intent to distribute cocaine and possession of a firearm in furtherance of drug trafficking. Smith had pleaded guilty on December 1, 2022.
According to court documents, on April 5, 2022, Smith was stopped by law enforcement for driving at a high rate of speed. When asked to exit the vehicle, Smith fled in the vehicle. Police helicopters were dispatched and located Smith driving at a high rate of speed and disregarding traffic signals through busy roadways in Tampa. Officers used spike strips to disable Smith’s vehicle, but Smith fled on foot, discarding a bookbag in a driveway as he ran. Officers pursued Smith until he was apprehended. They retrieved the bookbag which contained a firearm, ammunition, cocaine, marijuana, two digital scales, and multiple empty baggies.
This case was investigated by the Tampa Police Department and the Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) unit of the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Maria Guzman.
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.
Tampa Man Sentenced to 10 Years in Federal Prison for Attempted Coercion and Enticement of A Minor to Engage in Sexual ActivityRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Demetrius Reddick (36, Tampa) to 10 years in federal prison for attempted coercion or enticement of a minor to engage in sexual activity. The court also ordered Reddick to serve a 15-year term of supervised release and to register as a sex offender. He also forfeited a cellphone that was used in the commission of the offense. Reddick had pleaded guilty on September 13, 2022.
According to court documents, Reddick spent approximately two months communicating with an undercover detective, who was posing as a 13-year-old girl, over a social media platform. During these conversations, Reddick engaged the fictious child in sexual conversations, and ultimately traveled to a hotel in Orlando to meet for the purpose of engaging in sexual activities with the child.
This case was investigated by the Federal Bureau of Investigation and the Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorney Shannon Laurie.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Tampa Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Muhammed Momtaz Al-Azhari (26, Tampa) has pleaded guilty to attempting to provide material support or resources to a designated foreign terrorist organization, namely, the Islamic State of Iraq and al-Sham (“ISIS”). Pursuant to the terms of his plea agreement, Al-Azhari and the United States have agreed to the imposition of a stipulated sentence of 18 years in federal prison. Al-Azhari has also agreed to forfeit certain assets that are traceable to proceeds of the offense, as well as various items of property, including gear involved in, or intended to be used to commit the offense.
According to the plea agreement, Al-Azhari is a United States citizen who spent most of his life abroad and came to embrace dogmatic, Islamist/Salafist beliefs. In or around 2015, Al-Azhari was convicted of advocating for Jaysh al-Islam, an armed Islamist group then participating in the Syrian conflict, in Saudi Arabia. Al-Azhari spent approximately three years in Saudi Arabian custody, after which he was removed to the United States. Upon Al-Azhari’s arrival to the United States, in or around December 2018, the FBI began investigating him for potentially providing material support to ISIS, which, at all relevant times, was designated as a foreign terrorist organization under federal law.
In or around April 2020, Al-Azhari began planning to carry out an attack in support of ISIS. Around the same time, Al-Azhari began to acquire multiple firearms. He also researched and scouted potential locations in the Tampa Bay area. Since at least May 2019, Al-Azhari consumed ISIS propaganda and spoke favorably about ISIS, to whom he eventually pledged his allegiance through a bay’ah (an Islamic oath of allegiance). Furthermore, Al-Azhari spoke about avenging the United States’ imprisonment of Muslims, including ISIS fighters, and the United States’ military actions in the Middle East. In addition, Al-Azhari rehearsed parts of the plan described above, including practicing statements that he would make during, or in connection with, an attack in support of ISIS.
Between late April and May 2020, Al-Azhari also had multiple interactions with an FBI undercover employee (“UC-1”) and a confidential human source (“CHS-1”), during which Al-Azhari tried to buy guns from the UC-1, including a fully automatic rifle, but he was arrested on unrelated state charges while negotiating the purchase. Al-Azhari thereafter met CHS-1, attempted to “convert” CHS-1 to Islam, and confided in CHS-1 about his affiliation with ISIS and his plans to provide material support to ISIS, as well as to send money to ISIS. Al-Azhari recruited CHS-1 to help him carry out the plans described above in support of ISIS, as well as robberies, and he asked CHS-1 to obtain a Glock pistol and an unregistered silencer for him. Agents arrested Al-Azhari when he took possession of the gun and silencer on May 24, 2020.
This case was investigated by FBI’s Joint Terrorism Task Force, including Homeland Security Investigations (HSI), the Tampa Police Department, the Pinellas County Sheriff’s Office, the Hillsborough County Sheriff’s Office, the St. Petersburg Police Department, the Clearwater Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Patrick Scruggs and Risha Asokan.
Straw Purchaser Sentenced for Role in Beckley-to-Philadelphia Firearms Trafficking ConspiracyRead the Press Release
BECKLEY, W.Va. – Maurice Johnson, 36, of Mount Hope, was sentenced today to one year in prison, to be followed by three years of supervised release, for his role in a conspiracy to traffic more than 140 firearms from the Beckley area to Philadelphia, Pennsylvania.
According to court documents and statements made in court, Johnson participated in a conspiracy led by Bisheem Jones, also known as “Bosh,” that trafficked in firearms purchased in the Southern District of West Virginia from around June 2020 to around July 2021. Johnson was among several straw purchasers enlisted to buy the firearms, with Jones or an intermediary telling Johnson what firearms to purchase and providing the money to buy them.
Johnson bought a HS Produkt, Model XDS MOD (Springfield Armory), 9mm pistol and a Ruger, Security-9, 9mm pistol, for Jones in Mount Hope on December 29, 2020. Johnson admitted that he falsely certified on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473 that he was the buyer of the firearms when he knew he was purchasing them for Jones and his trafficking conspiracy.
Johnson pleaded guilty to conspiracy to travel interstate with the intent to engage in dealing firearms without a license and making false statements in acquisition of firearms. Johnson is among 18 defendants who pleaded guilty in connection with firearms trafficking. Of the over 140 firearms trafficked in the conspiracy, approximately 45 have been recovered at crime scenes primarily in Philadelphia and have been connected to two homicides, crimes of domestic violence, and other violent offenses. One of the firearms Johnson purchased was recovered at a crime scene in Philadelphia.
After five days of trial, a federal jury found Jones, 37, of Philadelphia, guilty on December 16, 2022, of conspiracy to travel interstate with the intent to deal in firearms without a license, conspiracy to commit money laundering, and interstate travel with the intent to deal in firearms without a license. Jones is scheduled to be sentenced on April 7, 2023, and faces a maximum penalty of 35 years in prison.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Negar M. Kordestani and Steve Loew prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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. 5:22-cr-46.
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Statement of U.S. Attorney Damian Williams on the Convictions of Mohamed Tahlil Mohamed and Abdi Yusuf HassanRead the Press Release
"For 977 days, Michael Scott Moore, an American journalist, was held hostage in Somalia by pirates. Today, a unanimous jury found two key players in Moore's years-long captivity guilty on all counts: Mohamed Tahlil Mohamed and Abdi Yusuf Hassan. Tahlil, a Somali Army officer, left his post to take command of the pirates holding Moore captive and obtained the machineguns and grenade launchers used to threaten and hold Moore. Hassan, the Minister of Interior and Security for the province in Somalia where Moore was held hostage, abused his government position and led the pirates' efforts to extort a massive ransom from Moore's mother. Today's guilty verdicts show that neither time nor distance can weaken our resolve to hold those who dare to take Americans hostage overseas fully accountable for their crimes, and to see justice done for the victims of such brutal and brazen attacks against Americans."
Seven Defendants Charged in Rochester Illegal Sports Gambling BusinessRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. – U.S. Attorney Trini E. Ross announced today that seven individuals were charged by criminal complaint for their roles in an illegal gambling business headquartered in Rochester, NY. Named in the complaint are:
• Louis P. Ferrari II is charged with conspiracy, transmission of wagering information, operation of an illegal gambling business, and money laundering.
• Dominic Sprague is charged with conspiracy, transmission of wagering information, and operation of an illegal gambling business.
• Anthony Amato, Joseph Lombardo, Jeffrey Boscarino, and James Civiletti are charged with transmission of wagering information and conspiracy.
• Tomasso Sessa is charged with operation of an illegal gambling business and conspiracy.Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that according to the complaint, the defendants conspired to operate illegal poker games at 565 Blossom Road and an illegal sports betting operation through the website sport700.com. Defendants Ferrari and Sprague co-owned and operated the illegal poker games at 565 Blossom Road, and Ferrari operated the illegal sports betting book through sport700.com, managing individual bettors and overseeing sub-agents, including Sprague, who had their own books of individual bettors. In addition, Ferrari owns and operates Ferrari Excavating on Steel Street in Rochester, where he collected cash payment of gambling losses from players and then laundered the illegal proceeds through the Ferrari Excavating business. Sprague also owned and operated a pawn shop on Stone Road in Greece, NY, where he collected cash payments of gambling losses from bettors and paid gambling winnings to bettors.
Defendant Amato administrated sport700.com and assisted Ferrari and others in creating accounts, usernames, and passwords, and managing individual bettors and overseeing sub-agents who had their own books of individual bettors on sport700.com. Defendant Sessa managed the day-to-day operations of the illegal gambling operation at 565 Blossom Road. Defendants Lombardo and Boscarino were sub-agents under Ferrari through sport700.com. Defendant Civiletti was an employee of Sprague’s pawn shop, collecting payments of gambling losses from people on behalf of Ferrari and Sprague.
During the course of the investigation, investigators intercepted a series of calls and text messages between targets of the investigation, sub-agents and individual bettors discussing the placement of bets, collection of winnings, and payment of losses. The investigation revealed that Ferrari generated $1,241,172 in winnings, while Amato generated winnings totaling $8,945,629.
On April 17, 2021, as investigators arrived to execute a search warrant at 565 Blossom Road, they interrupted an ongoing illegal card game, which sent individuals fleeing. An unknown number of individuals successfully fled, eight were temporarily detained. Investigators seized multiple items such documents, which included gambling ledgers and timestamped website printouts of online gambling player account activities. That same day, they also seized the cell phones of Ferrari and Sprague, which both contained evidence of sports bookmaking.
Also previously charged in a separate complaint in connection with this case is former New York State Trooper Thomas Loewke.
The criminal complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino, the Internal Revenue Service, Criminal Investigation, under the direction of Special Agent-in-Charge Thomas Fattorusso, the New York State Police, under the direction of Major Brian Ratajczak, the Greece Police Department, under the direction of Chief Michael Wood, and Rochester Police Department, under the direction of Chief David Smith. Additional assistance was provided by the Monroe County District Attorney’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Sanctions Evasion and Money Laundering Charges Unsealed Against Specially Designated Global Terrorist Mohammad Bazzi and Talal ChahineRead the Press Release
A three-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Mohammad Ibrahim Bazzi, a Lebanese and Belgian citizen, and Talal Chahine, a Lebanese citizen, with conspiracy to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist, attempt to conduct and cause United States persons to conduct unlawful transactions with a Specially Designated Global Terrorist, and money laundering conspiracy. The indictment was returned under seal by a federal grand jury sitting in Brooklyn, New York on January 27, 2023, and relates to Bazzi and Chahine’s alleged activities in the United States, as directed from Lebanon.
Breon Peace, United States Attorney for the Eastern District of New York and Daniel J. Kafafian, Acting Special Agent-in-Charge, Drug Enforcement Administration (DEA), New Jersey Division (DEA), announced the charges.
“As alleged, Mohammad Bazzi thought that he could secretly move hundreds of thousands of dollars from the United States to Lebanon without detection by law enforcement. Today’s arrest proves that Bazzi was wrong,” stated United States Attorney Peace. “Our office is committed to ensuring that sanctions imposed by the U.S. government are respected and that terrorism financiers are starved of funds.”
“The defendants in this case attempted to provide continued financial assistance to Hizballah, a foreign terrorist organization responsible for death and destruction,” stated DEA Acting Special Agent-in-Charge Kafafian. “The men and women of DEA are committed to working with our law enforcement and foreign counterparts to disrupt and dismantle the operations of these organizations and those who choose to support them financially.”
In May 2018, the United States Department of the Treasury, Office of Foreign Assets Control (OFAC) designated Bazzi as a Specially Designated Global Terrorist for assisting in, sponsoring, and providing financial, material, and technological support and financial services to Hizballah, a foreign terrorist organization that, since the 1980s, engaged in numerous terrorist activities, including attacks against American military members, government employees, and civilians abroad. According to the OFAC designation, Bazzi is a key Hizballah financier who has provided millions of dollars to Hizballah over the years, generated from his business activities in Belgium, Lebanon, Iraq and throughout West Africa. As a result of the designation, Bazzi’s interest in any property in the United States was blocked, and all U.S. persons were generally prohibited from transacting business with, or for the benefit of, Bazzi.
As alleged, following Bazzi’s designation, Bazzi and Chahine conspired to force or induce an individual located in the United States (U.S. Person) to liquidate their interests in certain real estate assets located in Michigan and covertly transfer hundreds of thousands of dollars in proceeds of the liquidation out of the United States to Bazzi and Chahine in Lebanon without the requisite OFAC licenses, in violation of the International Emergency Economic Powers Act (IEEPA).
During recorded communications, Bazzi and Chahine proposed numerous methods to conceal from OFAC and law enforcement officials that Bazzi was both the source and destination of the proceeds of the sale and to create the false appearance that the U.S. Person was conducting legitimate arms-length transactions unrelated to Bazzi and Chahine. For example, Bazzi and Chahine proposed that the funds be transferred through:
- a third party in China as part of a fictitious purchase of restaurant equipment from a Chinese manufacturer;
- a third party in Lebanon as part of a fictitious real estate purchase;
- Chahine’s family members in Kuwait as part of fictitious intra-family loans; and
- as part of a fictitious franchising agreement as payment for the rights to operate a Lebanese-based restaurant chain throughout the United States.
Bazzi was arrested by Romanian law enforcement authorities upon his arrival in Bucharest today. The United States intends to seek Bazzi’s extradition to the Eastern District of New York to face the charges in the indictment. Each count in the indictment is punishable by up to 20 years imprisonment. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF
The government’s case is being prosecuted by Assistant United States Attorneys Francisco J. Navarro, Jonathan P. Lax, Nomi D. Berenson, and Robert M. Pollack, with assistance provided by Trial Attorney Charles Kovats of the National Security Division’s Counterterrorism Section. Assistant United States Attorney Claire Kedeshian of the Office’s Asset Recovery Section is handling forfeiture matters. The Justice Department’s Office of International Affairs is assisting with the extradition in this case.
The Defendants:
MOHAMMAD BAZZI
Age: 58
Lebanon and BelgiumTALAL CHAHINE
Age: 78
LebanonE.D.N.Y. Docket No. 23-CR-041 (DLI)
San Rafael Man Visiting Yosemite Pleads Guilty to Domestic Violence ChargeRead the Press Release
FRESNO, Calif. — Stefan Niels Weiste Kirkeby, 59, of San Rafael, pleaded guilty to domestic violence within the special maritime and territorial jurisdiction of the United States, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 4, 2022, Kirkeby and his wife got into a verbal confrontation that resulted in park visitors having to intervene due to the yelling as well as the threats of harm being made by Kirkeby. The victim reported she was forcibly grabbed by her wrist and both fell to the ground. Kirkeby was threatening to kill her then kill himself during the altercation. The victim sustained bruising, pain to her wrist, and scratches.
This case is the product of an investigation by the National Park Service with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
Kirkeby is scheduled to be sentenced on June 26, 2023, by U.S. District Judge Jennifer L. Thurston. Kirkeby faces a maximum statutory penalty of five years in prison and a $250,000 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.
Russian National Charged with Supplying U.S. Technology to the Russian and North Korean GovernmentsRead the Press Release
A five-count indictment was unsealed today in federal court in Brooklyn, New York charging Ilya Balakaev with various charges related to smuggling devices commonly used in counterintelligence operations out of the U.S. to Russia for the benefit of the Federal Security Service of the Russian Federation (FSB) and Democratic People’s Republic of Korea (“DPRK” or “North Korea”).
As alleged, between 2017 and the present, the defendant Ilya Balakaev entered into multiple contracts through his company Radiotester LLC with the FSB—the principal intelligence and security agency of the Russian government—to repair spectrum analyzers and signal generators. The devices that the defendant was tasked to repair were frequently used as part of counterintelligence operations to sweep for surveillance bugs and to transmit covert communications. Because the devices were not readily available in Russia, the defendant created a network of individuals in the U.S. to assist him in purchasing the equipment in the U.S. which he used to repair the FSB devices, in violation of U.S. sanctions.
The defendant worked closely with Russian government officials from FSB Center 8’s Military Unit 43753, the agency responsible for Russia’s communication security and cryptology. In furtherance of his scheme, the defendant entered into at least 10 contracts with FSB Military Unit 43753, purchased approximately 43 devices in the U.S., and traveled to the U.S. approximately 14 times in the span of approximately four years.
In addition to his scheme to evade Russian sanctions, the defendant also provided U.S. technology to a North Korean government official, in violation of U.S. sanctions against North Korea. The defendant contracted with the First Secretary of the North Korean Embassy to the Russian Federation, based in Moscow, to obtain hazardous gas detectors and software from the U.S. for the benefit of the North Korean government.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Special Agent in Charge Jonathan Carson., US Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office, Ivan Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Francis J. Russo, Director of Field Operations, U.S. Customs and Border Protection, New York Field Office (CBP) and Andrew Adams, Director, Task Force KleptoCapture, announced the charges.
“As alleged, the defendant violated U.S. law by procuring, smuggling, and repairing counterintelligence operation devices for the benefit of Russia’s secret police and the North Korean government,” stated United States Attorney Peace. “Today’s indictment demonstrates our Office’s commitment to vigorously prosecute those who evade sanctions for a profit, both for their wallet and for Russia as they continue their aggression against Ukraine.”
“The defendant allegedly operated schemes to smuggle software and devices from the United States and provide them to hostile foreign government services in violation of U.S. sanctions. FBI New York and our partners will continue to protect the national security of the United States by disrupting the procurement of sanctioned equipment and technology,” stated Assistant Director-in-Charge Driscoll.
“To prevent the continuance of violations identified in the indictment, the defendant is now subject to a Commerce temporary denial order, which restricts his ability to access U.S. technologies,” said Jonathan Carson, Special Agent-in-Charge of the New York Field Office, Office of Export Enforcement. “These coordinated actions highlight our vigilance and ability to leverage our unique combination of criminal and administrative enforcement authorities to address evasions of U.S. export controls.”
“U.S. Customs and Border Protection is uniquely positioned to enhance the safety of our country. We will continue to work with our partners to be exceptionally focused on addressing the threats posed by counterintelligence activities, terrorism, transnational criminal organizations, and others who wish to do us harm,” said Francis J. Russo, Director New York Field Office. “CBP’s combined efforts with our law enforcement partners in this case serve as a reminder that we will continue to combat and prosecute modern transnational criminal organizations.”
“From the outset of the Task Force, the Department has prioritized the investigation and prosecution of case involving criminal violations of our export controls pertaining to Russia. As today’s case demonstrates, facilitators like this defendant provide smuggling services for all manner of dangerous actors and regimes – it is not possible to disentangle the FSB’s smuggling networks from those servicing other sanctioned state actors, and we must support and applaud comprehensive charges like those set forth in the Eastern District’s indictment,” stated Task Force KleptoCapture Director Adams.
“As alleged, Balakaev and his network actively schemed to circumvent OFAC sanctions in support of enhancing the counterintelligence operations of the Federal Security Service of the Russian Federation (FSB) and the Democratic People’s Republic of Korea. Today’s indictment, on the one year anniversary of the Russian invasion of Ukraine, is a credit to the collaboration of the American law enforcement community to investigate and prosecute those who seek to support oppressive regimes worldwide,” said Ivan J. Arvelo, Special Agent in Charge for Homeland Security Investigations (HSI) in New York. “HSI and our partners will continue to aggressively pursue criminal charges against those who engage in actions aimed at compromising our national security.”
If convicted, the defendant faces a maximum of 75 years’ imprisonment. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Sara K. Winik is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendant:
ILYA BALAKAEV
AGE: 47
MOSCOW, RUSSIAE.D.N.Y. Docket No. 23-CR-79
Retired U.S. Air Force Officer Pleads Guilty to Unlawful Retention of Classified National Defense InformationRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Robert L. Birchum (55, Tampa) has pleaded guilty to unlawfully possessing and retaining classified documents relating to the national defense of the United States. Birchum faces a maximum penalty of 10 years in federal prison. A sentencing date has not yet been set. Birchum has also agreed to surrender certain computer equipment that contained classified information and facilitated the unlawful retention of national defense information.
According to the plea agreement, Birchum, who retired in 2018 as a Lieutenant Colonel in the United States Air Force, had served in various positions in intelligence, including those requiring him to work with classified intelligence information for the Joint Special Operations Command, the Special Operations Command, and the Office of the Director of National Intelligence. While he was on active duty, Birchum entered into several agreements with the United States regarding the protection and proper handling of classified information. In 2017, however, law enforcement officers discovered that Birchum had removed more than 300 classified files or documents, including more than 30 items marked Top Secret, from authorized locations to his home, his overseas officer’s quarters, and a storage pod in his driveway. None of these locations were authorized for storage of classified national defense information, and Birchum knew as much. For example, Birchum possessed two documents on a thumb drive found in his home that contained information relating to the National Security Agency’s capabilities and methods of collection, and targets’ vulnerabilities. Both documents were classified as Top Secret/SCI, and their unauthorized release could be expected to cause exceptionally grave damage to the national security of the United States.
This case was investigated by the United States Air Force—Office of Special Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Cherie L. Krigsman and Trial Attorney Evan N. Turgeon of the Department of Justice’s National Security Division, Counterintelligence and Export Control Section.
Download Plea AgreementQueens Man Arrested for Defrauding Former Employer of $4.4 Million in Fake Invoice SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the arrest of BHASKARRAY BAROT for engaging in a years-long scheme to defraud his former employer out of approximately $4.4 million. BAROT was arrested this morning in Queens, New York, on a criminal Complaint and was presented before a magistrate judge in the Southern District of New York.
U.S. Attorney Damian Williams said: “As alleged, over the course of years, Barot created fraudulent invoices and processed them for payment at the Manhattan-based company where he used to work as a procurement manager. Barot designed the invoices to closely resemble the invoices that the company received from real vendors and other entities owed payment from the company. But the fraudulent invoices differed in a crucial way: they directed payment into Barot’s pocket. Today’s arrest demonstrates that this Office will seek justice for companies that fall victim to corporate theft.”
FBI Assistant Director Michael J. Driscoll said: "As the charges today allege, Barot operated a years-long deception, scamming his employer out of millions of dollars through bogus invoices. Duplicitous schemes like this bring undue harm to the greater financial community. The FBI will continue to investigate complex financial crimes and hold the transgressors accountable in the criminal justice system."
According to the allegations contained in the Complaint, which was unsealed today in Manhattan federal court:[1]
From at least in or about July 2018, up to and including at least August 2022, BAROT engaged in a scheme to defraud his former employer (the “Company”) of approximately $4.4 million through fake invoices designed to resemble those received from legitimate vendors of the Company. BAROT used his position as a procurement manager at the Company to process the fraudulent invoices for payment. When doing so, he often affixed the fake invoices to email messages that he, in some cases, sent in the names of employees of the Company’s real vendors so that it would appear as though the real vendors were seeking payment on the fake invoices.
The fake invoices, however, stated that payment should be made to entities with names that often differed slightly from those of the real vendor companies. BAROT then incorporated companies and opened bank accounts in the names of some of the entities listed for payment on the fake invoices so that he could collect the payments that the Company made on the fake invoices.
BAROT repeated these fraudulent tactics with more than a dozen fictitious entities and caused payment to be made by the Company on approximately 40 fake invoices, totaling approximately $4.4 million.
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BAROT, 32, of Queens, New York, is charged with one count of wire fraud, which carries a maximum potential sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jeffrey W. Coyle is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Puerto Rican Man Pleads Guilty to Possession of 79 Kilograms of CocaineRead the Press Release
St. Thomas, VI – U.S. Attorney Delia L. Smith announced that Wesly Albert Amaro of Puerto Rico, pleaded guilty before United States Magistrate Ruth Miller to one count of possession with intent to distribute cocaine.
According to court documents, on March 29, 2022, at approximately 4:00 a.m., the United States Coast Guard detected a vessel operating without navigation lights traveling at a high rate of speed from Culebra, PR, towards Hendrick Bay, St. Thomas. The vessel was later intercepted by U.S. Customs and Boarder Protection Air and Marine Operations. The vessel, operated by Amaro, attempted to flee while the co-defendant Brian Santiago Gonzalez began throwing duffel bags overboard. The engine of the vessel was disabled after Amaro failed to stop. Agents later recovered three duffel bags containing 79 kilograms of suspected narcotics which later tested positive for cocaine hydrochloride. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the United States Coast Guard, Drug Enforcement Administration, Homeland Security Investigations and U.S. Customs and Border Protection Air and Marine Operations and was prosecuted by Assistant United States Attorney Kyle Payne. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Puerto Rican Man Pleads Guilty to Possession of 30 Kilograms of CocaineRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced that Rafael Velez-Lopez of Puerto Rico pleaded guilty before United States Magistrate Judge Ruth Miller to one count of possession with intent to distribute cocaine.
According to court documents, on September 22, 2020, Drug Enforcement Administration agents arrested Velez-Lopez and Emanuel Campbell Camacho after they observed Camacho exit the Windward Passage Hotel and enter a blue Mazda sedan that traveled to the parking lot at Nelson Mandela Circle. Camacho later exited his vehicle and approached the passenger side of another vehicle where he removed a black duffle bag and placed it into his vehicle. Camacho then returned to the Windward Passage Hotel with a duffle bag approached the stairs leading to the second- floor level of the hotel. As the agents approached Camacho, they observed Velez-Lopez near the top of the stairs checking his cell phone. Agents inspected the duffel bag and discovered 30 brick-shaped objects inside the duffle bag that Camacho was carrying. Velez Lopez and Camacho were in constant communication during the entire transaction. The bricks later tested positive for cocaine hydrochloride. Velez-Lopez will be sentenced by a federal district court judge who will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by Drug Enforcement Administration and investigated by Assistant United States Attorney Kyle Payne. This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Operators of Jacksonville Roofing Business Indicted for Scheme to Evade Payment of Payroll Taxes and Workers’ Compensation Premiums and Tax FraudRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Travis Morgan Slaughter and Tripp Charles Slaughter with conspiracy to commit wire fraud and conspiracy to commit tax fraud related to a roofing business that they operated. Travis Slaughter is also charged with failing to account for and pay over payroll taxes to the IRS and evading personal income taxes for the years 2017 through 2019. Tripp Slaughter is also charged with filing false personal income tax returns for the years 2016 through 2019.
The wire fraud conspiracy count carries a maximum penalty of 20 years in federal prison and the tax fraud conspiracy and evasion of taxes counts each carry a maximum penalty of 5 years’ imprisonment. The filing false tax return counts each carry a maximum penalty of 3 years’ imprisonment. The indictment also notifies the defendants that the United States intends to seek forfeiture of a total of approximately $3 million, the estimated amount of proceeds obtained as a result of the wire fraud conspiracy.
According to the indictment, Travis Morgan Slaughter and Tripp Charles Slaughter operated a roofing business in Jacksonville under the name Great White Construction, Inc. (a/k/a Florida Roofing Experts, Inc., a/k/a 5 Star Roofing Services LLC). The company contracted with professional employer organizations ("PEOs") to prepare payroll checks for the company's employees, after making deductions for payroll taxes, and to file payroll tax returns and forward tax payments to the governmental authorities.
However, the company did not provide the PEOs with information about all of the hours worked by or all of the wages due to its employees. Instead, the company also paid the employees directly, with separate checks drawn on company bank accounts, and did not deduct payroll taxes from these checks. By paying employees with “split checks”—one from the PEO and one from the company—the company avoided paying the full amount of payroll taxes due to the IRS.
On many occasions, the company issued checks from its checking account in lump sum amounts to work crew leaders for work performed by the crews. Many of the workers on these crews were citizens of other countries who were living and working in the United States illegally. The work crew leaders obtained cash for the checks and paid the workers on the crews in cash. Paying the workers in cash helped these undocumented non-citizens to continue to live and work in the United States illegally.
During the period of January 2017 through July 2020, the PEOs issued payroll checks to the employees totaling approximately $4,930,613, after deducting and paying over to the IRS the payroll taxes due. During that same period, the company issued checks to the employees totaling approximately $18,545,845, with no payroll taxes being deducted or paid. The unpaid payroll taxes on that amount—including only the Social Security and Medicare taxes and income tax that should have been withheld from the employees’ pay—was $2,768,377.
The PEOs also secured workers’ compensation insurance coverage for the company. The premiums charged by the workers’ compensation insurers were based on the total amount of payroll that the company reported to the PEOs. If the company had reported the actual amount of payroll, the insurers would have charged additional premiums totaling millions of dollars.
Travis Slaughter evaded the payment of income taxes for the years 2017 through 2019 by, among other things, failing to file a tax return for 2017 and not filing returns for 2018 and 2019 until 2021, which returns significantly underreported his income from the business. He also withdrew hundreds of thousands of dollars from business bank accounts, fraudulently transferred two properties to his children, and purchased four properties that he fraudulently titled in the names of his children.
Tripp Slaughter filed false tax returns for the years 2016 through 2019 by failing to include the income he was paid directly by the company that totaled approximately $121,492 and failing to report business income that totaled approximately $847,597.
An indictment is merely a formal charge that a defendant has committed a violation of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Internal Revenue Service – Criminal Investigation and Homeland Security Investigations (HSI). It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Norman Man Sentenced to Serve More Than 11 Years in Federal Prison for Transportation of Child PornographyRead the Press Release
OKLAHOMA CITY – Yesterday, BRADLEY KEITH COLLINS, 44, of Norman, Oklahoma, was sentenced to serve 135 months in federal prison for transportation of child pornography, announced United States Attorney Robert J. Troester.
In July 2021, Homeland Security Investigations received a Cybertip from the National Center for Missing and Exploited Children that Collins uploaded 66 picture images of child pornography to his Google Photos account. On September 7, 2022, a federal grand jury returned a three-count Indictment against Collins, alleging transportation, possession, and accessing of child pornography. On October 28, 2022, Collins pled guilty to transportation of child pornography.
Yesterday, U.S. District Judge David L. Russell sentenced Collins to serve 135 months in federal prison, followed by five years of supervised release, upon release from prison. In announcing the sentence, Judge Russell noted the circumstances of the offense and Collins’ history and characteristics, including that he had sexual contact with a foster child several years ago. At sentencing, Judge Russell remanded Collins into federal custody. He will be required to register as a sex offender upon release from federal prison.
This case is the result of an investigation by the U.S. Homeland Security Investigations and the Oklahoma Highway Patrol. Assistant U.S. Attorney Brandon Hale prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Reference is made to court filings for further information.
New Orleans Man Indicted for Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – EMANUEL ROSS, age 24, a resident of New Orleans, Louisiana, was charged today, in a three-count indictment for violations of the Federal Gun Control and Federal Drug Control Acts.
ROSS is charged in Count 1 with possession with intent to distribute cocaine and fentanyl in violation of 21 U.S.C. § 841(a)(1); in Count 2 with possession of firearms in furtherance of a drug trafficking crime in violation of 18 U.S.C. § 924(c); and in Count 3 with possession of a machinegun, in violation of 18 U.S.C. § 922(o). Count 2 of the indictment alleges that ROSS possessed 10 different guns in furtherance of his drug trafficking activities.
As to Count 1, ROSS faces a maximum term of imprisonment of 15 years, up to a $1,000,000 fine, and at least 3 years of supervised release. For Count 2, ROSS faces a consecutive term of imprisonment of not less than 5 years up to life imprisonment to be served consecutive to any other term imposed, up to a $250,000 fine, and up to 5 years of supervised release. For Count 3, ROSS faces up to a maximum term of imprisonment of 10 years , up to a $250,000 fine, and up to 3 years of supervised release. Finally, ROSS must pay a mandatory special assessment fee of $100 for each count.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. Assistant United States Attorney Mark A. Miller of the Violent Crimes Unit is in charge of the prosecution.
Navajo woman arraigned for involuntary manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Mariah Chapo was arraigned in federal court on February 23, 2023, on a charge of involuntary manslaughter. Chapo, 26, an enrolled member of Navajo Nation, will remain on conditions of release pending trial.
A grand jury indicted Chapo on January 25, 2023. According to the indictment and other records, on February 11, 2022, Chapo crashed her vehicle after driving at a high rate of speed while intoxicated, ultimately killing an unsecured eight-month-old John Doe. The alleged homicide occurred within the exterior boundaries of the Navajo Nation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Chapo faces up to eight years in prison.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Matthew J. McGinley is prosecuting the case.
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Naples Felon Sentenced to More Than Seven Years for $2.6 Million COVID Relief Fraud SchemeRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Daniel Joseph Tisone (35, Naples) to seven years and three months in federal prison for wire fraud, bank fraud, illegal monetary transactions, and possession of ammunition by a convicted felon. Tisone was also ordered to forfeit the properties, engagement ring, ammunition, and cash seized from bank accounts, as well as to pay restitution in the amount of $2,617,447.17, all traceable proceeds of the offenses. Tisone had pleaded guilty on August 26, 2022.
According to court documents, between March 2020 and April 2021, Tisone, a convicted felon, submitted false and fraudulent Economic Injury Disaster Loan (EIDL), Main Street Lending Program (MSLP), and Paycheck Protection Program (PPP) loan applications to the Small Business Administration (SBA), as well as PPP and MSLP approved lenders. The loan applications contained numerous false representations, including the criminal history, average monthly payroll, number of employees, and gross revenues of the applicant, Tisone.
In support of the fraudulent EIDL, PPP, and MSLP applications, Tisone submitted false and fictitious payroll and tax documents, as well as a fake commercial lease. Further, Tisone fraudulently used the means of identification of individuals who purported to work for Tisone’s companies, including their names, dates of birth, and Social Security numbers, to submit false and fraudulent payroll and payroll tax documents. Tisone also fraudulently used the means of identification of an individual, including the individual’s name, date of birth, driver license, and Social Security number, to submit a false and fraudulent EIDL application.
Tisone’s false and fraudulent representations caused the SBA, PPP, and MSLP lenders to approve and fund one MSLP, four EIDL, and five PPP loans, resulting in the deposit of approximately $2,617,447 into bank accounts Tisone controlled. Tisone then used the funds for unauthorized purposes and for his own personal enrichment, including the purchase of residences in Naples, Florida, stocks and investment securities, a 2019 Tiara 34LS boat, a 4.02 carat engagement ring, and ammunition.
On March 20, 2022, while executing a search warrant at Tisone’s residence, FBI agents discovered more than 800 rounds of assorted .223/5.56 and 9mm caliber ammunition in Tisone’s master bedroom and garage. As a convicted felon, Tisone is prohibited from possessing a firearm or ammunition under federal law.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
The MSLP was designed to provide support to small and medium-sized businesses and their employees across the United States during the COVID-19 pandemic. The program was intended to help companies, that were in sound financial condition prior to the onset of the pandemic, maintain their operations and payroll until conditions normalized.
“Daniel Joseph Tisone seriously abused three federal programs that used taxpayers’ money to aid struggling small businesses through the pandemic, said Brian Miller, the Special Inspector General for Pandemic Recovery. “SIGPR is glad to have played a significant role teaming with other law enforcement agencies and the United States Attorney’s Office to hold Mr. Tisone accountable.”
This case was investigated by the FBI, Special Inspector General for Pandemic Recovery (SIGPR), IRS – Criminal Investigation, and the Federal Reserve Board OIG. It was prosecuted by Assistant United States Attorneys Trent Reichling, Suzanne Nebesky, and Julie Simonsen.
Morrison Man Indicted for Covid FraudRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Richard Rejan Nieto, age 37, formerly of Morrison, has been indicted on three counts of wire fraud and five counts of money laundering for taking money that he received as a result of fraudulent Paycheck Protection Program (PPP) applications he submitted.
In late March 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was enacted, and extended emergency financial assistance to millions of Americans suffering economic harm from the COVID-19 pandemic. The CARES Act expanded existing Small Business Administration programs, including the Economic Injury Disaster Loan (“EIDL”) program, and established new temporary programs, including the Paycheck Protection Program (“PPP”).
According to the indictment, from April of 2020, through April of 2021, the defendant allegedly devised and participated in a scheme to defraud the United States and a lender. The defendant unjustly enriched himself by obtaining $913,551.88 in PPP loans. He obtained the loans by inflating payroll costs, making false statements and certifications, and submitting fake tax returns. Having unjustly obtained PPP loans, he then applied for loan forgiveness for the full amount of the PPP loans. He obtained forgiveness of $176,956.09 through false representations and by submitting fake payroll checks. He allegedly laundered money through large money transfers between bank and investment accounts, including a $40,000 transfer to a cryptocurrency account in January 2021, to purchase Bitcoin. The United States has previously executed seizures of fraud proceeds from the defendant’s E*Trade investment account and from two cryptocurrency trading accounts.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
The Internal Revenue Service-Criminal Investigation (IRS-CI) investigated this case. Assistant United States Attorneys Craig Fansler and Martha Paluch are handling the prosecution.
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.
Case number: 22-cr-00262
Montana Man Sentenced to 27 Years in Prison for Child Exploitation CrimesRead the Press Release
BECKLEY, W.Va. – Gary Lee Hodges, 72, of Bigfork, Montana was sentenced today to 27 years in prison, to be followed by 15 years of supervised release, for two counts of attempted enticement of a minor to engage in illegal sexual activity. Hodges must also register as a sex offender.
According to court documents and statements made in court, Hodges contacted a woman in Beckley, West Virginia, on a social networking website dedicated to individuals interested in sexual fetishes. Hodges learned that the woman had two daughters, ages 11 and 13. Hodges expressed interest in coming to West Virginia to establish a household with the woman and children, where he would engage in sexual activity with both minor females. Specifically, Hodges stated that he planned to engage in sexual intercourse and oral sex on a regular basis with both minor females.
During the next month, Hodges continued to make plans to travel to West Virginia to meet the woman and her daughters. To encourage the children to engage in sexual activity with him, Hodges sent them lingerie and other gifts and booked a trip to take them to Washington, D.C., to visit the zoo. Hodges reserved a hotel room in Beckley to meet the woman and the girls. Hodges flew to Charleston on January 14, 2022, where he was arrested.
The court found that Hodges planned to use the two children as “sex slaves” and called his criminal conduct “abominable.”
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Human Trafficking and Child Exploitation Task Force.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald and third-year law student intern Ryan Vick prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-33.
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Missouri Nonprofit Admits False Statements About Care of Foster Youth, Agrees to Pay $1.8 MillionRead the Press Release
ST. LOUIS – A Missouri-based nonprofit behavioral health provider has admitted making criminal false statements in claims for services not provided to foster youth and agreed to a series of compliance measures, federal and state officials announced Friday.
In a separate civil settlement, Great Circle of Webster Groves, Missouri agreed to pay $1,866,000, consisting of $933,000 in restitution that was doubled under the False Claims Act.
“In this non-prosecution agreement, Great Circle admits falsely claiming to have provided enhanced supervision to youth at its residential treatment facility in claims for payment to the State of Missouri,” said Assistant U.S. Attorney Meredith Reiter, who is leading the team that worked on the case. “A cascade of issues can arise from inadequate supervision, particularly for children with such intensive need for treatment and assistance.”“These agreements hold Great Circle accountable by requiring it to admit false billing and pay a civil false claims settlement, without jeopardizing continued access to residential treatment services for children in Missouri’s foster care program,” Reiter said.
The non-prosecution agreement (NPA) was entered into for, among other reasons, the nonprofit’s past and continuing cooperation, the lack of a prior criminal history and the $1.8 million civil settlement agreement. A major consideration was also the fact that the nonprofit has been providing behavioral health services to children with special needs in the custody of the Missouri Department of Social Services, Children’s Division, and a criminal conviction resulting in exclusion from federal programs could jeopardize that and thus cause hardship to innocent third parties.
The multi-year investigation and these agreements are the result of a coordinated effort among the U.S. Attorney’s Office for the Eastern District of Missouri, the Office of Inspector General of the Department of Health and Human Services, the Missouri Department of Social Services, the FBI, the Webster Groves Police Department and the Phelps County Sheriff’s Department.
“Great Circle falsely submitted bills for services it did not provide but were needed by the children,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “Prioritizing profit over safety can put already vulnerable children in peril.”
“To obtain ill-gotten gains, Great Circle knowingly submitted false claims related to services that are intended to benefit children,” stated Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General. “We commend the efforts of our agents and law enforcement partners to hold Great Circle accountable and safeguard the integrity of our federal programs that support health and human services.”
“I’m committed to enforcing the law as written, and that involves ensuring that anyone who defrauds the state is held accountable,” said Missouri Attorney General Andrew Bailey. “I’m proud of the collaboration between this office’s Medicaid Fraud Control Unit and our law enforcement partners to obtain restitution for the state, and we will continue to ensure that those who cheat the state are brought to justice.”
“Following a multi-year investigation of Great Circle related to allegations of abuse of child health care recipients, allegations of failure to report abuse and Medicaid fraud, we are pleased with the results,” said Lt. Jillian McCoy of the Webster Groves Police Department. “The ultimate goal of serving and protecting vulnerable youth was obtained by cooperative efforts with federal agencies through the U.S. Attorney’s Office.”
“Our goal is to ensure every child across the state lives in a safe, nurturing environment that will ultimately help them thrive,” said Robert Knodell, acting director for the Missouri Department of Social Services. “The Department of Social Services is pleased to assist in holding Great Circle accountable for its actions without further jeopardizing the care of some of Missouri’s most vulnerable youth. We are sending a strong message regarding the care we expect our children to receive, and we will continue to do whatever it takes to help ensure the safety and well-being of Missouri’s children.”
As part of the agreement, Great Circle admitted falsely claiming to have provided services for six residents between 2019 and 2020. Great Circle is licensed to provide “intensive residential treatment” services to children, also known as Level IV services, and defined as providing a “highly structured and secure environment designed to: (a) prevent emotionally disturbed youth from runaway behavior; (b) address the likelihood of rage and physical aggression by the residents; and (c) minimize the likelihood of youth injuring themselves or others.”
On multiple occasions, Great Circle falsely claimed to have provided services above Level IV, including increased ratios of staff to residents and other enhanced services.
The company agreed to cooperate with the government in any additional health care fraud investigation and to promptly report any credible evidence or allegations of conduct violating U.S. law to the U.S. Attorney’s Office. Great Circle also has agreed to implement a compliance and ethics program designed to prevent and detect violations of federal fraud and related statutes and adopt new or modify existing internal controls, compliance code and policies and procedures where necessary. Officers, directors and senior management will have to “provide strong, explicit, and visible support and commitment” to the corporate policy against violations of relevant laws.
Great Circle has locations throughout Missouri and in Kansas. KVC Missouri has announced it will take over Great Circle April 1.
Assistant U.S. Attorneys Meredith Reiter, Suzanne Moore and Gwendolyn Carroll handled the case.
great_circle_fully_executed_civil_settlement_agreement.pdfMichigan Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – James Meeks-Little, 29, of West Bloomfield, Michigan, was sentenced today to seven years in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl.
According to court documents and statements made in court, on June 24, 2021, Meeks-Little was a passenger in a vehicle pulled over by law enforcement officers in Beckley. Meeks-Little was the subject of an arrest warrant at the time of the traffic stop. Officers found 247.9 grams of a mixture containing fentanyl hidden behind the glove box, and a Springfield, model XD, 9mm semi-automatic handgun. Meeks-Little admitted to possessing the fentanyl mixture and further admitted that he intended to distribute it.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service, the Drug Enforcement Administration (DEA), the West Virginia State Police, and the Beckley Police Department.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess and former Assistant United States Attorney Nick Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-129.
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