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10 April 2023
Grand Jury Charges San Fernando Valley Man Who Allegedly Embezzled $2.2 Million in Money and Real Estate from Elderly VictimRead the Press Release
SANTA ANA, California – A Burbank man was arraigned today on a federal grand jury indictment alleging he embezzled approximately $2.2 million from a sizable estate left to an elderly man by the man’s late brother.
Jamal Nathan “Jimmy” Dawood, 52, is charged with six counts of wire fraud, nine counts of money laundering, and one count of aggravated identity theft.
At his arraignment in United States District Court in Santa Ana, Dawood pleaded not guilty to the charges against him. His bond was set at $50,000 and a June 6 trial date was scheduled.
According to the indictment returned on April 5, during the second half of 2019, Dawood offered to assist the victim with the management of real estate properties and retirement savings that the victim had inherited from the victim’s deceased brother. Specifically, Dawood allegedly helped the victim open a trust account at a bank for the purpose of managing the retirement savings.
Without the victim’s knowledge or authorization, Dawood then initiated wire and online banking transfers from the victim’s trust account to Dawood-controlled accounts, the indictment alleges. Without the victim’s knowledge or permission, Dawood allegedly also wired money from the victim’s trust account to people with whom Dawood had personal and business relationships.
Dawood allegedly convinced the victim to transfer ownership of his home and his late brother’s real estate holdings to various companies. Dawood falsely represented that the victim would retain an ownership interest in his residence and the inherited real estate through these companies. In fact, Dawood and other individuals close to him controlled these companies, according to the indictment.
In total, Dawood allegedly fraudulently obtained at least $2,202,688 in the victim’s money and property. The illicitly obtained funds allegedly were used to purchase real estate in La Crescenta and Fontana.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Dawood would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count, up to 10 years in federal prison for each money laundering count, and a mandatory consecutive sentence of two years in federal prison for the aggravated identity theft count.
The FBI is investigating this matter.
Assistant United States Attorneys Kristin N. Spencer and Melissa S. Rabbani of the Santa Ana Branch Office are prosecuting this case.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This 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 seven days a week from 3 a.m. to 8 p.m. Pacific Time. English, Spanish, and other languages are available.
Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Founder and Former Chief Investment Officer of Infinity Q Sentenced to 15 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JAMES VELISSARIS, the founder and former chief investment officer of Infinity Q Capital Management (“Infinity Q”), a New York-based investment adviser that ran a mutual fund and a hedge fund that purported to have approximately $3 billion in assets under management, was sentenced to 15 years in prison for his participation in a scheme to defraud Infinity Q’s investors. The sentence was imposed by U.S. District Judge Denise L. Cote.
U.S. Attorney Damian Williams said: “Velissaris wove a complex scheme to defraud investors in Infinity Q’s investment funds, and he continuously lied to investors, auditors, and even the SEC in order to hide his crimes. Velissaris’s massive scheme was calculated and deceptive, and he now justly faces 15 years in federal prison. We hope this lengthy sentence resonates in the financial sector and deters anyone who may be tempted to lie to investors.”
According to public court filings and statements made in Court:
Background
VELISSARIS was the founder and chief investment officer of Infinity Q, an investment adviser that ran both a mutual fund (the “Mutual Fund”), started in about 2014, and a hedge fund (the “Hedge Fund,” and collectively the “Investment Funds”), started in about 2017. As of 2021, the two funds purported to have approximately $3 billion in assets under management. Infinity Q was headquartered in New York, New York, and employed a small staff, including a chief compliance and chief risk officer (“Employee-1”).
A major component of both the Mutual Fund and the Hedge Fund’s holdings were over-the-counter (“OTC”) derivative positions that involved customized contracts that allowed the counterparties to take positions on the volatility, or price movement, of underlying assets or indices. VELISSARIS, through Infinity Q, represented to its investors that it valued these OTC derivative positions based on fair value, and that in order to do so, it utilized the services of an independent third-party provider. In particular, Infinity Q represented to investors and other stakeholders that it used Bloomberg Valuations Service (“BVAL”) to independently calculate the fair value of these positions, in accordance with the terms of the underlying derivative contracts. These OTC derivative positions comprised hundreds of millions of dollars of the Investment Funds’ portfolios.
VELISSARIS’s Scheme to Lie to Investors and Inflate Derivative Swap Positions
In fact, however, VELISSARIS defrauded Infinity Q’s investors by taking an active role in the valuation of Infinity Q’s positions and by modeling the positions in ways that were not based on the actual terms of the underlying contracts and were inconsistent with fair value. VELISSARIS’s input into the BVAL valuation process was inconsistent with Infinity Q’s representations about the independence of the process and allowed VELISSARIS to fraudulently mismark positions in BVAL. VELISSARIS engaged in the mismarking of positions in BVAL by making false entries in BVAL’s system, including by secretly altering the computer code employed by BVAL that caused BVAL to alter and disregard certain critical terms. Altering and disregarding terms in this fashion caused BVAL to report values that were artificially inflated and, often, much higher than fair value.
By manipulating OTC derivative positions in BVAL in this way, VELISSARIS caused numerous positions in the Investment Funds to have anomalous and, at times, impossible valuations. For example, at times, VELISSARIS made manipulations in either the Mutual Fund and/or the Hedge Fund that caused certain identical positions that were held by both the Mutual Fund and the Hedge Fund (namely, a position where all the material terms are the same) to have substantially divergent values. In other cases, some of VELISSARIS’s manipulations caused certain positions held by the Investment Funds to have impossible values, such as where, under the true terms of the swap, the value adopted by VELISSARIS could only be true if volatility were negative – a condition which is mathematically impossible.
Ultimately, after VELISSARIS’s mismarking scheme was uncovered in or about February 2021, Infinity Q liquidated the Investment Funds and sold its OTC derivative positions. These positions were sold for hundreds of millions of dollars less than their purported market values in BVAL, thereby resulting in substantial losses to the investors in the Investment Funds.
VELISSARIS Lies to Auditors and Obstructs the SEC’s Investigation
In order to hide this scheme and prevent its detection, VELISSARIS lied to numerous outside stakeholders and regulators. First, in order to prevent Infinity Q’s outside auditor (the “Auditor”) from discovering the fraud, VELISSARIS provided the Auditor with falsified term sheets from counterparties that he had altered to change the true terms of certain OTC derivative positions. In particular, in connection with a number of audits, the Auditor selected certain OTC positions that it would independently value in order to confirm the reasonableness of Infinity Q’s values from BVAL. In order to ensure that the Auditor would not arrive at materially different results when independently valuing positions that VELISSARIS had manipulated in BVAL, VELISSARIS altered the terms of certain deal documents and provided them to the Auditor. After receiving these falsified documents and relying on them in its independent evaluation, the Auditor confirmed the reasonableness of VELISSARIS’s valuations in BVAL.
Furthermore, beginning in May 2020, the Securities and Exchange Commission (“SEC”) opened an inquiry and later an investigation into Infinity Q’s valuation practices. In connection with that investigation, VELISSARIS provided false and misleading information to the SEC. For example, when the SEC asked for original documents that had been provided to investors, VELISSARIS altered the documents before providing them to the SEC, including certain alterations that would help hide his mismarking scheme. For example, Infinity Q’s original investor materials stated that “[o]nce a price is established for a portfolio security, it shall be used for all Funds that hold the security.” As explained above, this was untrue, and on numerous occasions, manipulations in BVAL made by VELISSARIS caused the same positions in the Mutual Fund and the Hedge Fund to have substantially different values. To conceal the falsity of Infinity Q’s disclosures, VELISSARIS, along with Employee-1, removed this line from investor documents that were provided to the SEC.
In June 2020, the SEC requested that Infinity Q provide additional materials, including documents regarding Infinity Q’s valuation committee and all of its meeting minutes. Infinity Q’s investor materials had represented that Infinity Q had a valuation committee, including VELISSARIS; that the committee would meet monthly or more often; and that VELISSARIS would be responsible for preparing minutes of such meetings. In fact, however, VELISSARIS had not kept notes of any such meetings. Accordingly, days before responding to the SEC, VELISSARIS made up notes purporting to be from valuation committee meetings in 2019 and 2020 and submitted them to the SEC.
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In addition to his prison term, VELISSARIS, 38, of Atlanta, Georgia, was sentenced to three years of supervised release and agreed to pay approximately $22 million in forfeiture. The Court reserved decision on the amount of restitution.
Mr. Williams praised the work of the Federal Bureau of Investigation. He further thanked the SEC and the Commodity Futures Trading Commission for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Margaret Graham is in charge of the prosecution.
Florida Man Pleads Guilty to Selling Fentanyl over the Dark WebRead the Press Release
SACRAMENTO, Calif. — Chaloner Saintillus, 35, of Delray Beach, Florida, pleaded guilty Thursday, April 6, 2023, to 12 counts of distributing controlled substances into the Eastern District of California using the dark web, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Saintillus operated multiple narcotics vendor accounts on the dark web under the username “chlnsaint,” through which he sold fentanyl, oxycodone, oxymorphone, and other narcotics in exchange for cryptocurrency. Taking advantage of the dark web’s anonymity, Saintillus completed more than 1,000 drug deals between August 2019 and August 2020 alone. Saintillus used the U.S. Postal Service to send his customers the fentanyl, opioids, and other narcotics they purchased from “chlnsaint.”
Law enforcement officers from an interagency task force in the Eastern District of California known as the Northern California Illicit Digital Economy Task Force (“NCIDE”) conducted 12 controlled purchases of narcotics from “chlnsaint” between April and October 2020. Agents identified Saintillus as “chlnsaint” through physical surveillance and analysis of financial, package tracking, and photographic records maintained by the Postal Service. NCIDE agents executed warrants at Saintillus’s Florida residence in October 2020, during which they arrested Saintillus and seized narcotics, over $20,000 in cryptocurrency, a firearm, and a suitcase full of ammunition.
This case is the product of an investigation by NCIDE, which is composed of agents from the Federal Bureau of Investigation, Homeland Security Investigations, the U.S. Postal Inspection Service, the Internal Revenue Service-Criminal Investigation, and the Drug Enforcement Administration. NCIDE agents received assistance from the Palm Beach County Sheriff’s Office and the Delray Beach Police Department. Assistant U.S. Attorneys Sam Stefanki and Ross Pearson are prosecuting the case.
Saintillus is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on July 10, 2023. Saintillus faces a maximum statutory penalty of 20 years in prison and a $1 million fine on each of the 12 counts to which he pleaded guilty. 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.
Five men indicted on federal charges for illegal firearms possessionRead the Press Release
SAVANNAH, GA: Five defendants are among those facing federal charges including illegal possession of firearms after separate indictments by a grand jury in the Southern District of Georgia, while recent actions in U.S. District Court include guilty pleas and criminal sentences related to illegal gun possession.
The indicted cases are being investigated as part of Project Safe Neighborhoods in collaboration with federal, state and local law enforcement agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the FBI, to reduce violent crime with measures that include targeting convicted felons who illegally carry guns.
“Individuals who are convicted of felonies are prohibited from possessing guns,” said Jill E. Steinberg, U.S. Attorney for the Southern District of Georgia. “With our law enforcement partners, we will continue to protect the safety of our communities by identifying and removing these repeat offenders.”
In the past four years, more than 820 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction for a previous felony. That charge carries a statutory penalty of up to 15 years in prison, and there is no parole in the federal system.
Defendants named in federal indictments from the April 2023 term of the U.S. District Court grand jury include:
- Wesley Rosenberg, 24, of Ludowici, Ga., charged with Engaging in the Firearms Business Without a License, and two counts of Transfer of a Firearm in Violation of the National Firearms Act. The indictments allege Rosenberg unlawfully imported and sold firearm silencers.
- Tyrell Smith, 32, of Savannah, charged with Possession of a Firearm by a Convicted Felon;
- Herman Lamont Dessasure, 30, of Statesboro, Ga., charged with Possession of a Firearm by a Convicted Felon;
- Dustin Shane Webster, 30, of Augusta, charged with Possession of a Firearm by a Convicted Felon; and,
- Joquan K. Clark, 25, of Waynesboro, Ga., charged with Possession of a Firearm by a Convicted Felon.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
Additional defendants recently have been adjudicated on federal charges that include illegal firearms possession:
- Maurice Brown, 21, of Savannah, was sentenced to 21 months in prison after pleading guilty to Possession of a Firearm by a Convicted Felon. In July 2022, Brown sped away from an attempted traffic stop in Savannah by a Georgia State Patrol trooper and later ran from the vehicle. Savannah Police officers found him hiding in a nearby home, and found a pistol under the driver’s seat of the vehicle Brown was driving. Brown was on probation for state charges at the time of his arrest.
- Jeffrey J. Haynes, 30, of Savannah, awaits sentencing after pleading guilty to Possession of a Firearm by a Convicted Felon. Savannah Police officers arrested Haynes during a June 2021 traffic stop after finding a pistol in his waistband.
Agencies investigating these cases include the ATF, the FBI, the Georgia Bureau of Investigation, the Savannah Police Department, the Richmond County Sheriff’s Office, and the Georgia State Patrol.
The cases are being prosecuted for the United States by the Southern District of Georgia U.S. Attorney’s Office.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information from the ATF on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atfw-form-4473
Father Sentenced to 40 Years in Methamphetamine Case Involving SonRead the Press Release
A Fort Worth father who conspired with his son to deal methamphetamine was sentenced Thursday to 40 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
David Devaney, Sr., 59, and David Devaney, Jr., 36, opted for a bench trial and were found guilty of conspiracy to possess with intent to distribute a controlled substance by U.S. District Judge Mark Pittman in November 2022. The elder Mr. Devaney was sentenced on Thursday; the younger Mr. Devaney is slated to be sentenced on May 4. Co-conspirator Cory Litts, 36, pleaded guilty to the same charged in October 2022 and was sentenced in April to more than 22 years in prison.
“The dangerous culture created by drug trafficking impacts all of us, creating a terminal plague that ruins the livelihood of our communities,” said Lester R. Hayes Jr., Special Agent in Charge HSI Dallas. “As long as this illicit activity exists, we are all susceptible to the violence and societal ills of the drug trade.”
According to court documents, the investigation into the elder Mr. Devaney began in June 2022, when a cooperating defendant identified the elder Mr. Devaney as a methamphetamine distributor.
Later that month, law enforcement received a 911 call about a 64-year-old woman who was shot and killed in Burleson, Texas. Surveillance video showed that Mr. Devaney, Sr.’s vehicle was involved in the incident, which was thought to be a drug deal gone bad. (The deceased woman was an innocent bystander.)
Officers tracked the vehicle to a hotel parking lot, where they frisked the driver, Mr. Litts, and found a plastic baggy containing 115 grams of methamphetamine and a digital scale concealed inside his clothing.
Officers then approached Mr. Devaney, Sr., who was sitting on the passenger’s side of the vehicle, and observed him throw a shaving kit bag into a nearby bush. Inside the bag, officers found more than a kilogram of methamphetamine and a substantial amount of U.S. currency. They frisked Mr. Devaney, a ten-time convicted felon, and found a .40 caliber Smith & Wesson pistol tucked into his waistband.
Both men were arrested and transported to the Burleson police department.
That same evening, Mr. Devaney, Jr., was also arrested in connection with the shooting in Burleson.
In an interview with law enforcement, Mr. Devaney, Jr. denied involvement with the shooting, but admitted, “obviously, there’s been drugs.” He said his dad “just went off the deep end… and he started selling drugs,” and claimed his father “just kept sucking me in.”
Homeland Security Investigations’ Dallas Field Office, the Johnson County Sheriff’s Office Stop The Offender Program (STOP), the Burleson Police Department, and the Texas Department of Public Safety conducted the investigation. Assistant U.S. Attorneys Shawn Smith and Laura Montes prosecuted the federal case.
The state has filed capital murder charges against both Devaneys and several other individuals for their alleged roles in the Burleson shooting. Although they have been convicted of the federal drug charges, they are presumed innocent of the state capital murder charges until proven guilty beyond a reasonable doubt in a court of law.El Departamento de Justicia llega a un acuerdo con un restaurante franquiciado en la Florida que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con una compañía ubicada en la Florida, Destin Wings LLC, conocida comercialmente como Hooters of Destin (Destin Wings). El acuerdo resuelve la determinación del Departamento que Destin Wings vulneró la Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a una persona no ciudadana de los EE. UU. a la hora de comprobar su permiso para trabajar en los Estados Unidos.
«Mientras que los empleadores tienen la obligación legal de verificar el permiso para trabajar en los Estados Unidos de cada persona recién contratada, no pueden discriminar durante el proceso con base en el estatus de ciudadanía o la nacionalidad de origen del empleado», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles seguirá combatiendo con firmeza la discriminación ilícita en el empleo y quitará los obstáculos innecesarios al trabajo».
La investigación del Departamento comenzó cuando una trabajadora no ciudadana de los EE. UU. se quejó que Destin Wings se había negado a aceptar su documentación válida que demostraba su permiso para trabajar y solicitó documentación adicional innecesaria. Aunque tenía permiso para trabajar en los Estados Unidos, no pudo obtener uno de los documentos que Destin Wings requería debido a su estatus de ciudadanía. La disposición antidiscriminatoria de la INA prohíbe que los empleadores soliciten documentos específicos o más documentos de los que sean necesarios por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. Los empleadores deben permitir que sus trabajadores presenten cualquier documentación aceptable que dichos trabajadores quieran y no pueden rechazar documentación válida que parece ser genuina.
El acuerdo requiere que Destin Wings pague una sanción civil a los Estados Unidos, efectúe pagos retroactivos a la trabajadora que se había quejado al Departamento, capacite su personal en cuanto a la disposición antidiscriminatoria de la INA y que se someta a la supervisión del Departamento durante un período de tres años.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus de ciudadanía y la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, las prácticas documentales injustas, las represalias y la intimidación.
Hay información disponible en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación a la hora de verificar el permiso para trabajar. Aprenda más sobre cómo la IER protege los derechos de los trabajadores en este video. Para más información sobre las protecciones que ofrece la INA contra la discriminación en el empleo al amparo de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe en correo electrónico a [email protected]; o visite las páginas web de la IER en inglés y español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Aquellos aspirantes o empleados que creen haber sido sometidos a: discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; discriminación en el proceso de la verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) con base en su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o llamar a la línea directa de la IER para trabajadores para pedir ayuda.
Durham Crips Gang Member Sentenced for Fifth Robbery ConvictionRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 19 years in prison, after pleading guilty to one count of conspiracy to commit robbery and two counts of felon in possession of a firearm by an armed career criminal, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).
DEVONTE DAQUAN COZART, age 28, of Durham, North Carolina, was sentenced to a 228-month term of imprisonment by the Honorable Catherine C. Eagles, United States District Judge in the United States District Court for the MDNC. He pleaded guilty on December 8, 2022, to conspiracy to interfere with commerce by robbery, a violation of Title 18, United States Code, Section 1951(a), and two counts of felon in possession of a firearm by an armed career criminal, a violation of Title 18, United States Code, Section 922(g)(1) and 924(e). COZART also agreed to forfeit two handguns.
A codefendant, Tori Demarco Bumpers, pleaded guilty on September 8, 2022, to the same statutory violations. Bumpers’ sentencing is scheduled for August 4, 2023, in Winston-Salem, North Carolina.
According to court records, COZART, a member of the Eight Trey Gangster Crips street gang, and Bumpers left the area of Glenbrook Drive on March 14, 2022, just before dark in COZART’s gray Honda Accord. At approximately 9:30 p.m. that night, Bumpers robbed a vape shop located at West Club Boulevard in Durham at gunpoint, taking cash, cigarettes, a “Cookies” brand backpack, and other items. Bumpers left the store and fled on foot with a second man. At approximately 9:50 p.m., two men wearing dark clothing and masks robbed an individual waiting for a ride to work (Victim-1). After one of the men, whose height and hair was consistent with COZART’s, got in Victim-1’s face and pointed a gun at him, the assailants took cash, electronics, and an Oakley backpack from Victim-1. At approximately 10:10 p.m., Bumpers aimed a gun at the clerk of a convenience store on Fayetteville Road in Durham and demanded cash and cigarettes. After taking the items, he left the store and ran across the parking lot to a waiting car. Around 10:30 p.m. Durham Police Department officers stopped COZART’s gray Honda Accord on East Club Boulevard. COZART was driving, and Bumpers was in the front passenger seat. A black mask was resting between COZART’s right leg and the center console. Officers removed the men from the car and placed them in handcuffs. Upon searching the vehicle, officers recovered items from each of the above-described robberies and a loaded .45 handgun.
On May 12, 2022, investigators executing a warrant to arrest COZART on federal charges stemming from the March 14, 2022, robberies searched the Durham residence where he was located and found a 9mm handgun. Subsequent investigation identified a fingerprint on the gun’s magazine as having been made by COZART’s right thumb.
The previous year, on April 8, 2022, investigators encountered COZART in a Durham apartment near a .357 magnum revolver. COZART admitted that the gun belonged to him.
At the time of these offenses, COZART had been previously convicted of Common Law Robbery and Breaking and Entering (offense date May 7, 2014); Common Law Robbery and Conspiracy to Commit Common Law Robbery (offense date March 24, 2015); Common Law Robbery (offense date February 5, 2015); Common Law Robbery and Conspiracy to Commit Common Law Robbery (offense date May 1, 2018); and Attempted Common Law Robbery (offense date April 28, 2018). In connection with these offenses COZART was sentenced to multiple terms of imprisonment exceeding one year. Thus, at the time of the offenses, COZART was legally barred from possessing a firearm due to his status as a felon.
The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force (SSTF), the Durham Police Department, and the Durham County Sheriff’s Office. The lead investigator was an FBI Task Force Officer from the Durham County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Eric Iverson.
Since 1992, the FBI's Safe Streets Violent Crime Initiative has successfully aligned FBI Agents, state and local law enforcement investigators, and federal and state prosecutors onto SSTFs to reduce violent crime. This nationwide initiative brings resources together in a "force multiplier concept" and utilizes the expertise of each agency. SSTFs focus primarily upon street gang and drug-related violence through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations.
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Detroit Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Brandon Lamarr McCauley, also known as “Louie,” 30, of Detroit, Michigan, was sentenced today to five years and two months in prison, to be followed by three years of supervised release, for possession with intent to distribute heroin.
According to court documents and statements made in court, on May 12, 2022, law enforcement officers pulled over a vehicle driven by McCauley on Fifth Avenue in Huntington. McCauley admitted that he possessed approximately 62 grams of suspected heroin, which he had divided into multiple bags for distribution, that officers found during the traffic stop. The West Virginia State Police Forensic Laboratory confirmed the controlled substance was fentanyl.
McCauley further admitted to aiding and abetting another individual in the distribution of additional quantities of heroin totaling 2.6 grams on Sixth Street in Huntington on May 12, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Finney 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. 3:22-cr-187.
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Connecticut Man Sentenced to 51 Months for Trafficking More Than 4 lbs. of Cocaine to New HampshireRead the Press Release
CONCORD – A Connecticut man was sentenced today in federal court for drug trafficking in New Hampshire, U.S. Attorney Jane E. Young announces.
Jabreel A. Amir, 41, was sentenced by U.S. District Court Judge Paul J. Barbadoro to 51 months in prison and 3 years of supervised release. On December 14, 2022, Amir plead guilty to the charges.
“Today, the defendant was held accountable for trafficking cocaine to New Hampshire,” said U.S. Attorney Jane E. Young. “Our federal and local law enforcement partners successfully prevented a significant quantity of drugs from impacting our communities, and we will continue to work together to prosecute individuals who contribute to this serious problem.”
On May 9, 2022, Amir attempted to deliver cocaine in New Hampshire to an individual cooperating with the government. Law enforcement officers surveilled Amir as he attempted to conduct the drug sale. He traveled from Waterbury, Connecticut to Concord, New Hampshire, where he was arrested. Law enforcement seized more than 2 kilograms of cocaine.
The United States Drug Enforcement Administration led the investigation. Valuable assistance was provided by New Hampshire State Police Narcotics Intelligence Unit. Assistant U.S. Attorney Jennifer C. Davis prosecuted the case.
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Cincinnati man pleads guilty to Covid relief fraudRead the Press Release
CINCINNATI– A man who filed for relief under the Paycheck Protection Program and fraudulently claimed that he was running a business during the time he was incarcerated pleaded guilty in U.S. District Court today to one count of wire fraud.
Willie Boyce, 41, agreed to pay $41,040 in restitution, in addition to any time he may serve in federal prison.
According to court documents, Boyce was incarcerated in Hamilton County from March 2018 until September 2020, when he was released to a halfway house.
Boyce acknowledged that he applied electronically for two PPP loans in April 2021, claiming he owned a business that provided taxi and ridesharing services.
In his applications, Boyce fraudulently claimed a gross income of $98,500 for 2019 even though he was in prison for the entirety of that year. Boyce used his halfway house address as the business address and submitted a forged bank statement.
Boyce claimed the money was for payroll for his company, and received payments on April 20 and May 5, 2021, but withdrew or spent all the money by the end of May 2021, on non-business-related transactions including payments to Gucci, Louis Vuitton, Expedia, Hampton Inn and Delta Airlines.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the guilty plea entered today before Senior U.S. District Judge Susan J. Dlott. The case was investigated by the Social Security Administration Office of Inspector General, in coordination with U.S. Postal Inspection Service, U.S. Secret Service, Ohio Bureau of Motor Vehicles Investigations and Hamilton County Prosecutor’s Office. Assistant U.S. Attorney Ebunoluwa Taiwo is representing the United States in this case.
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Beaver County Man Sentenced to 8 Years in Prison for Selling Drugs that Led to an Overdose DeathRead the Press Release
PITTSBURGH - A Beaver County resident has been sentenced in federal court to 96 months of imprisonment on his conviction of Possession with Intent to Distribute and Distribution of a Substance Containing Detectable Amounts of Heroin, Acetyl Fentanyl, and Fentanyl, Acting United States Attorney Troy Rivetti announced today.
United States District Judge William S. Stickman imposed the sentence on Zachary Martin Cymbalak, age 36, of Freedom, Pennsylvania.
According to information presented to the court, on Jan. 6, 2019, law enforcement officer found a deceased individual under circumstances suggesting that the death was caused by an overdose, which was later confirmed by the Beaver County Coroner’s Office. At the location of the death, law enforcement officers found drug paraphernalia and distinctive empty stamp bags. Based on telephone records and other investigative techniques, law enforcement identified Cymbalak as the likely source of supply of the drugs that caused the death.
Later on Jan. 6, 2019, law enforcement arranged for a confidential informant to purchase controlled substances from the defendant. The stamp bags were the same distinctive stamp bags found at the scene of the death. After the purchase, law enforcement stopped the vehicle in which Cymbalak was a passenger and recovered more of the distinctive stamps bags and the money used in the purchase. Laboratory tests confirmed that the stamp bags purchased from Cymbalak and recovered from Cymbalak’s person contained a combination of heroin, fentanyl, and acetyl fentanyl. As part of the plea agreement Cymbalak took responsibility for causing the death of the decedent.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Drug Enforcement Administration, along with the Baden and Harmony Township police departments, the Beaver County Coroner’s Office, and the Beaver County District Attorney’s Office Anti-Drug Task Force, for the investigation leading to the successful prosecution of Cymbalak.
Bakersfield CPA Pleads Guilty to Stealing over $350,000 from InvestorsRead the Press Release
FRESNO, Calif. — Jeffrey Todd Stewart, 57, of Bakersfield, pleaded guilty today to wire fraud in relation to him stealing $355,000 from investors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Stewart was employed as a certified public accountant in Bakersfield. Between September 2014 and June 2018, Stewart solicited and received over $2 million from investors to pay fees and expenses purportedly needed for an overseas business deal. Stewart represented to the investors that their investments were being used for the deal and promised significant returns. Although Stewart used most of the money for the purported deal, he spent $355,000 of the money obtained from the investors on his own personal expenses, including mortgage payments, trips to Las Vegas, and gambling.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Joseph Barton and Brittany Gunter are prosecuting the case.
Stewart is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Aug. 21, 2023. Stewart faces a maximum statutory penalty of 20 years in prison and a fine up to $250,000. 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.
Atlanta Man Sentenced to 6.5 Years in Prison for Distributing Fentanyl from McKeesport ResidenceRead the Press Release
PITTSBURGH – A Georgia resident has been sentenced in federal court to 78 months of imprisonment on his conviction of Possession with the Intent to Distribute Fentanyl, Acting United States Attorney Troy Rivetti announced today.
United States District Judge David Stewart Cercone imposed the sentence on Christopher Jordan, age 42, of Atlanta, Georgia.
According to information presented to the court, an investigation by the Allegheny County Police revealed that Jordan was selling fentanyl from an address on Soles Street in McKeesport, Pennsylvania. Allegheny County Police detectives executed a search warrant at that residence on March 11, 2021, and the detectives found distribution quantities of fentanyl attributable to Jordan, along with other evidence of drug trafficking.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Allegheny County Police Department for the investigation leading to the successful prosecution of Jordan.
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.
Airline Passenger Charged After Flight Diverted into KCI AirportRead the Press Release
KANSAS CITY, Mo. – A passenger aboard an Alaska Airlines flight has been charged in a federal criminal complaint after the flight was diverted from its course and landed at Kansas City International Airport.
Chloe M. Dasilva, 32, was charged with one count of interfering with flight crew members and attendants in a complaint filed in the U.S. District Court in Kansas City, Mo., on Friday, April 7. Dasilva, who remains in federal custody, will have her initial court appearance today.
An affidavit filed in support of the federal criminal complaint alleges that Dasilva interfered with the duties of flight attendants while she was a passenger aboard Alaska Airlines flight 456. The flight was scheduled for nonstop service from San Francisco International Airport in San Francisco, California, to Chicago O’Hare International Airport in Chicago, Ill. However, the flight was diverted into Kansas City International Airport in Kansas City, Mo., at approximately 4:20 a.m. Friday, April 7.
According to the affidavit, Dasilva, who had been disruptive during the flight, was involved in a confrontation with a male flight attendant, cussing and yelling and threatening to kill him. A flight attendant, with the assistance of two passengers, used zip ties to restrain her. One of the passengers switched seats with a mother and her infant who was seated directly in front of Dasilva for their safety.
The pilot decided to divert to Kansas City instead of going to Chicago because he was concerned for the safety of the passengers.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Matthew Blackwood. It was investigated by the FBI.
8 April 2023
Pine Ridge Man Indicted for Pornography and Sexual AbuseRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that a federal grand jury has indicted a Pine Ridge, South Dakota, man for Enticement of a Minor, Possession of Child Pornography, and Sexual Abuse of a Minor.
Rowland Coomes, age 35, was indicted in February of 2023. He appeared before U.S. Magistrate Judge Daneta L. Wollmann on April 5, 2023, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 10 years up to life in custody and/or a $250,000 fine, a mandatory minimum of five years up to life of supervised release, and $100 to the Federal Crime Victims Fund for each count of conviction. Restitution may also be ordered.
The charges relate to Coomes using his cellular phone to entice a minor female to engage in sexual activity in November of 2021. Coomes also possessed child pornography on his social media account. Between March of 2021 and November of 2022, Coomes sexually abused another minor female at Pine Ridge.
The charges are merely accusations and Coomes is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI. Assistant U.S. Attorney Megan Poppen is prosecuting the case.
Coomes was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 13, 2023.
Eagle Butte Man Sentenced for AssaultRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man convicted of Assault Resulting in Serious Bodily Injury was sentenced on April 7, 2023, by Chief Judge Roberto A. Lange, U.S. District Court.
Ramon Louis Bagola, age 24, was sentenced to 40 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bagola was indicted by a federal grand jury in September of 2022. He pleaded guilty on January 11, 2023.
On the evening of May 16, 2022, Bagola and another individual assaulted the victim in the stairwell of the Evergreen Apartments building in Eagle Butte, knocking the victim unconscious and causing a subdural hematoma. The assault was unprovoked. Bagola took the victim’s car keys and wallet from his person. Bagola used the car keys to steal the victim’s Trailblazer from the apartment parking lot.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem prosecuted the case.
Bagola was immediately remanded to the custody of the U.S. Marshals Service.
7 April 2023
Worcester Man Sentenced for Cocaine Trafficking ConspiracyRead the Press Release
BOSTON – A Worcester man has been sentenced in federal court in Worcester for conspiring to distribute over 500 grams of cocaine.
Angel Cordova, 39, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to five years in prison and four years of supervised release. In December 2021, Cordova pleaded guilty to conspiracy to distribute and to possess with intent to distribute 500 grams or more of cocaine.
In March 2019, intercepted communications determined Cordova was conspiring with a least five others – including Junior Melendez Juan Rodriguez, Antoine Mack, Kevin Jean, and Carlos Richards – to buy significant quantities of powder cocaine, convert some of that powder cocaine into crack cocaine and distribute powder and crack cocaine in Massachusetts and New Hampshire. From March 2019 through June 2019, investigators identified over four kilograms of cocaine that Melendez either purchased or sold, including over 300 grams of cocaine that was seized in New Hampshire on May 25, 2019.
Juan Rodriguez and Kevin Jean were convicted after a jury trial and sentenced to 52 months and 40 months in prison, respectively. Antoine Mack pleaded guilty and was sentenced 54 months in prison. Melendez pleaded guilty and was sentenced to 156 months in prison. Carlos Richards remains a fugitive.United States Attorney Rachael S. Rollins; James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Worcester Police Chief Steven M. Sargent made the announcement today. Valuable was provided by Massachusetts State Police, New Hampshire State Police, Shrewsbury Police and the Worcester County Sheriff’s Office. Assistant U.S. Attorneys Greg A. Friedholm, Kristen M. Noto and Lauren A. Graber of Rollins’ Criminal Division prosecuted the cases.
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 details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterville Man Faces up to 15 Years for Conspiring to Provide Material Support to TerroristsRead the Press Release
BANGOR, Maine: A Waterville man pleaded guilty in U.S. District Court in Bangor today to conspiracy to provide material support to terrorists.
According to court records, beginning in November 2021, Xavier Pelkey, 19, conspired with two minors, one located in Chicago and one in Canada, to conduct a mass shooting at a Shia mosque in the Chicago area. Pelkey and his coconspirators were subscribers to a radical form of Sunni Islam and supporters of the foreign terrorist organization the Islamic State, also known as ISIS. Pelkey planned to contribute firearms, ammunition and explosives to be used in the attack.
In February 2022, the FBI executed a search warrant at Pelkey’s Waterville residence and discovered three handmade explosive devices. Investigators observed a hand-painted version of the flag used by ISIS on the wall of Pelkey’s bedroom and recovered written statements intended to be released just prior to the planned attack claiming the attack in the name of ISIS.
Pelkey faces up to 15 years in prison and a $250,000 fine followed by up to a lifetime of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case.
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Warren, PA Man Sentenced to Prison for Possessing Child PornographyRead the Press Release
ERIE, Pa. - A resident of Warren, Pennsylvania, has been sentenced in federal court to 4 years in jail and 7 years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Troy Rivetti announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Vincent Dexter Swanson, 30, 304 Cold Spring Lane, Warren, Pennsylvania.
According to information presented to the court, from April 2020 to March 2021, Swanson possessed and accessed with intent to view visual images and videos in individual computer files depicting prepubescent minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (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.
Prior to imposing sentence, Judge Baxter noted the seriousness of the offense and its impact on the most vulnerable segment of society.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Rivetti commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Swanson.
Vinalhaven Man Faces up to 10 Years Following Guilty Plea for Illegal Possession of a FirearmRead the Press Release
BANGOR, Maine: A Vinalhaven man pleaded guilty in U.S. District Court in Bangor today to being a felon in possession of a firearm.
According to court records, in June 2022, investigators arrested an individual on a federal arrest warrant at the Fairfield Inn in Bangor. When the individual asked if he could get money from his room, agents entered the room in the individual’s presence to retrieve the money with his consent. Investigators found John Dinius, 56, in the room, and observed a magazine for a gun on the bathroom counter. When investigators asked Dinius where the guns were located, he directed them to a bag containing a loaded .45 caliber pistol and a .38 caliber revolver. He admitted he had hidden the bag to get the guns out of sight. A 2004 conviction in Massachusetts precluded Dinius from possessing a firearm.
Dinius faces up to 10 years in prison and a fine of up to $250,000. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine Drug Enforcement Agency; and the U.S. Drug Enforcement Administration investigated the case.
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United States Settles Fair Housing Act Lawsuit Against Artimus Construction for Failure to Construct Apartments Accessible to Persons with DisabilitiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that the United States has settled a federal Fair Housing Act (“FHA”) lawsuit against ARTIMUS CONSTRUCTION, INC. (“ARTIMUS”). Under the settlement, ARTIMUS has agreed to make retrofits at rental buildings in Harlem and Chelsea, named Susan’s Court and Chelsea Park, respectively. ARTIMUS also agreed to provide $75,000 to compensate aggrieved persons and pay a $5,000 civil penalty. Additionally, ARTIMUS agreed to establish procedures to survey four additional properties, two in Manhattan and two in Queens, to improve accessibility and agreed to ensure that its future residential development projects will comply with the accessibility requirements of the FHA. The settlement was approved today by U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Damian Williams said: “This Office has brought multiple suits to address the failure of real estate developers to comply with the Fair Housing Act, and we will continue to ensure that New York City’s residential housing market is open to everyone, including people with disabilities. We appreciate Artimus’s cooperation in remedying the inaccessible conditions in their buildings.”
According to the allegations in the complaint and the settlement approved today:
The FHA’s accessible design and construction provisions require multifamily housing complexes constructed after January 1991 to have basic features accessible to persons with disabilities. The inaccessible conditions at ARTIMUS’s rental buildings included excessively high thresholds at building entrances and entrances to common use areas, common use bathrooms that lack grab bars and pipe insulation, excessively high thresholds at entrances to individual apartments and within the apartments, and bathrooms in individual apartments that lack sufficient clear floor space for people who use wheelchairs. These features in the common use areas of ARTIMUS’s buildings, as well as in the buildings’ apartment interiors, did not meet the specifications set forth in the Fair Housing Accessibility Guidelines, Design Guidelines for Accessible/Adaptable Dwellings.
Under the settlement, ARTIMUS agreed to make retrofits to the public and common use areas as well as the individual units at the Chelsea Park and Susan’s Court buildings to improve accessibility. The settlement also requires ARTIMUS to establish procedures to ensure FHA compliance at its future development projects, including to retain an FHA compliance consultant to assess the design documents and conduct site visits to identify non-compliant conditions. In addition, ARTIMUS agreed to institute policies and training to ensure that its employees and agents will comply with the FHA’s accessibility requirements.
Finally, the settlement requires ARTIMUS to provide $75,000 to compensate aggrieved persons. Aggrieved persons may be entitled to monetary compensation from the fund created through today’s settlement. Aggrieved individuals may include those who:
- Were discouraged from living at ARTIMUS’s rental buildings because of the lack of accessible features;
- Have been hurt in any way by the lack of accessible features at ARTIMUS’s rental buildings;
- Paid to have an apartment at one of ARTIMUS’s rental buildings made more accessible to persons with disabilities; or
- Otherwise were discriminated against on the basis of disability at one of ARTIMUS’s rental buildings as a result of inaccessible design and construction.
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The settlement with ARTIMUS is the 18th settlement reached by this Office with developers and architects to remedy inaccessible housing in this District, including suits against The Durst Organization, Glenwood Management, Silverstein Properties, Related Companies, and Atlantic Development.
Any individual who may be entitled to compensation can file a claim by using the Civil Rights Complaint Form available on the United States Attorney’s Office’s website https://www.justice.gov/usao-sdny/civil-rights or by sending a written claim to:
U.S. Attorney’s Office, Southern District of New York
86 Chambers Street, 3rd Floor
New York, New York 10007
Attention: Chief, Civil Rights Unit
The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorney David J. Kennedy is in charge of the case.
U.S. Attorney’s Office Settles Lawsuit Against Virginia Towing Company for Unlawfully Auctioning Off Servicemembers’ VehiclesRead the Press Release
ALEXANDRIA, Va. – Steve’s Towing, Inc., located in Virginia Beach, has agreed to pay $90,000 to settle a complaint that alleged that the company violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain court orders before auctioning off vehicles belonging to at least seven SCRA-protected servicemembers, including two vehicles belonging to a member of a Navy SEAL team who was deployed overseas. The complaint further alleged that the company engaged in a pattern or practice of violating the SCRA and had no policies, practices, or procedures in place to ensure SCRA compliance.
The U.S. Attorney’s Office launched its investigation after a Navy legal assistance attorney reported that Steve’s Towing, Inc., had towed two vehicles from a military base that belonged to a deployed Navy SEAL and then sold the vehicles without first obtaining court orders. One of the vehicles, a 1992 Toyota Land Cruiser HZJ73, contained evidence of the Navy SEAL’s military service, including a duffel bag of military uniforms and a Naval Special Warfare Development Group Sniper challenge coin. Under the SCRA, towing companies must determine whether a vehicle in their possession belongs to a servicemember; if that vehicle belongs to a servicemember, the towing company must obtain a court order prior to selling the vehicle.
“Servicemembers often rely heavily on their personal vehicles to commute to work and care for their families. A servicemember’s loss of a vehicle, therefore, can affect the military’s readiness,” said Jessica D. Aber, United States Attorney for the Eastern District of Virginia. “EDVA is dedicated to holding accountable businesses who do not uphold the right of servicemembers under the SCRA.”
“This case began with a member of a Navy SEAL team who returned home from an overseas deployment, only to find that a towing company had auctioned off two vehicles that he had parked at a military base,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution will compensate all of the servicemembers whose vehicles were illegally taken from them while they were serving their country.”
Under the proposed consent order, which still must be approved by the Court, Steve’s Towing will pay $67,500 to the seven SCRA-protected servicemembers mentioned in the United States’ complaint, and will pay up to $12,500 to compensate additional SCRA-protected servicemembers whose vehicles Steve’s Towing may have sold without first obtaining court orders. The order also requires Steve’s Towing, Inc., to pay a $10,000 civil penalty to provide SCRA training to its employees, and to develop new policies and procedures consistent with the SCRA.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Civil Rights Division’s Housing and Civil Enforcement Section.
The matter was investigated by Assistant U.S. Attorneys Deirdre G. Brou and Sean D. Jansen.
The civil claims settled by this Servicemembers Civil Relief Act agreement are allegations only; there has been no determination of civil liability.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney Leary Announces New Leadership Team MembersRead the Press Release
MACON, Ga. – Three Assistant U.S. Attorneys have been promoted to leadership positions within the Middle District of Georgia, completing the executive team assembled under U.S. Attorney Peter D. Leary.
Assistant U.S. Attorney Bowen Reichert Shoemaker is the new Civil Division Chief, making her the first female non-interim Civil Division Chief in the Office’s history; Assistant U.S. Attorney Will Keyes is now the Deputy Criminal Chief; and Assistant U.S. Attorney Elizabeth “Beth” Howard is the new Senior Litigation Counsel (SLC) for the Criminal Division. These three attorneys join First Assistant U.S. Attorney Shanelle Booker, Criminal Chief Leah McEwen, Columbus Branch Chief Amy Helmick, Appellate Chief Mikki Schieber, and Civil Division SLC Lance Simon to comprise the legal leadership in the office. The team includes many historic firsts for the Middle District of Georgia, including FAUSA Booker who is the first black woman and first female to hold the highest non-appointed position in the office; SLC Simon who is the first openly LGBTQ+ person to command a leadership role in the District; and the greatest number of women attorneys to hold leadership positions.
“It is crucial to assemble a team of top-tier and diverse attorneys to pursue vigorous justice on behalf of the citizens now and in the years to come,” said U.S. Attorney Peter D. Leary. “Alongside the many dedicated and skilled attorneys and staff in the office, these dynamic leaders will help to ensure a strong future of equal justice for all in the Middle District of Georgia.”
Civil Division Chief Bowen Reichert Shoemaker joined the U.S. Attorney’s office in 2018. Since then, she has specialized in high-exposure tort claims and cases brought under the False Claims Act on behalf of the citizens. Prior to joining the office, Civil Chief Shoemaker was a trial attorney for an Atlanta law firm handling multi-district litigation and complex commercial cases. Born and raised in Georgia, she graduated magna cum laude from both the Mercer University School of Law and the University of Georgia, and clerked for the Honorable Hugh Lawson, U.S. District Judge. Civil Chief Shoemaker is highly involved in the Macon community, and currently serves on the board of trustees for Historic Macon, Macon Arts Alliance, Stratford Academy and is a member of the Macon Rotary Club. She has also served as an adjunct professor at Mercer Law. In 2021, she was named a “40 Under 40” by the UGA Alumni Association in 2021.
Deputy Criminal Chief Will Keyes joined the office in 2018. He has prosecuted a broad range of federal criminal cases, to include drug trafficking organizations, violent crime and offenses related to terrorism. He has served as the Project Safe Neighborhood Coordinator, National Security Cyber Specialist, District Election Officer and Deputy Anti-Terrorism Advisory Council. Before joining the office, he was on active duty in the U.S. Army prosecuting members of Al-Qaeda in military commissions in Guantanamo Bay, Cuba. From 2016-2017 he deployed to Camp Arifjan, Kuwait, in support of Operation Inherent Resolve where he served as legal advisor to a battalion of over 800 soldiers operating throughout Kuwait and Iraq. He began his career at a law firm in Atlanta and holds four degrees from the University of Georgia, which include his law degree, a master’s degree and two undergraduate degrees. In addition to his duties with the office, he serves in the U.S. Army Reserves, Civil Affairs and Psychological Operations Command as a judge advocate. Recently, he became qualified as a paratrooper upon graduation from the U.S. Army Airborne School.
Assistant U.S. Attorney Elizabeth “Beth” Howard is the new Senior Litigation Counsel (SLC) for the Criminal Division. SLC Howard joined the office as a criminal prosecutor in 2014, and she has prosecuted a broad range of crimes, to include complex white collar fraud and public corruption, child exploitation, human trafficking, violent crime, and wiretap prosecutions. Among other duties, she currently serves as the office’s Financial Fraud Coordinator, and she previously coordinated the office’s law clerk program. Prior to joining our office, SLC Howard worked as an Assistant Solicitor General in Macon, focusing on domestic violence prosecutions. She earned both her undergraduate and law degrees from Mercer University; while in law school, she twice worked as a law clerk for the U.S. Attorney’s Office in the Middle District. Born and raised in Florida, SLC Howard has resided in the Middle District of Georgia for 18 years.
The Middle District of Georgia encompasses 70 of Georgia’s 159 counties, and includes Albany, Athens, Columbus, Macon and Valdosta with a population of approximately 2,045,000 people. The office is responsible for prosecuting federal crimes in the District, including crimes related to terrorism, public corruption, child exploitation, fraud, firearms, illegal gangs and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Two Defendants in Separate Cases Sentenced to Federal Prison for Child Pornography and Illegal Possession of Firearm CrimesRead the Press Release
LAFAYETTE, La. - United States Attorney Brandon B. Brown announced the resolution of two cases in the Lafayette Division of the Western District of Louisiana. United States District Judge Robert R. Summerhays sentenced the following individuals yesterday:
Charles Dirk Lafleur, 56, of Ville Platte, Louisiana, was sentenced to 78 months in prison, followed by 3 years of supervised release, for possession of child pornography. The charges in this case stem from an investigation by an agent with the Louisiana Bureau of Investigation Cyber Crimes Unit after a Cyber Tip Line Report was received from the National Center for Missing and Exploited Children (NCMEC). The report identified the upload of an image containing child pornography to a Microsoft OneDrive account and identified the unique user information associated with that account. Their investigation revealed that the image did in fact contain child pornography and a search warrant was obtained for the Microsoft OneDrive account. The search warrant identified the account user as Lafleur. After further investigation, another search warrant was obtained for Lafleur’s residence and was executed by law enforcement agents on November 7, 2018. Agents recovered eight of Lafleur’s electronic devices, which were analyzed and found to contain images and videos depicting child pornography, including depictions of pornography involving prepubescent minors under 12 years of age. Lafleur was charged and pleaded guilty to possession of child pornography on October 12, 2022.
The case was investigated by the Department of Homeland Security, Bureau of Immigration and Customs Enforcement and the Louisiana Bureau of Investigation Cyber Crimes Unit and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
In a separate and unrelated case, Nathan Zenon, Jr., 39, of Youngsville, was sentenced by to 68 months in prison, followed by 3 years of supervised release, for illegal possession of a firearm. On May 10, 2017, deputies with the Vermilion Parish Sheriff’s Office observed Zenon enter a residence in Youngsville and attempted to serve him with an outstanding arrest warrant at the residence. After his arrest, Zenon admitted to deputies that he had marijuana in his vehicle and gave consent to search. Deputies recovered two small bags of marijuana, a digital scale, and a magazine for a .45 caliber firearm loaded with six rounds of ammunition. A search warrant was obtained to search the residence and inside deputies found a loaded Springfield 9mm pistol in the bedroom. A DNA analysis confirmed that Zenon could not be excluded as a contributor to the firearm. In addition, an agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) tested the firearm and found it to be functional and manufactured in Croatia and imported via Illinois, thus having been transported in interstate commerce. Zenon has prior felony convictions for possession of cocaine and possession with intent to distribute cocaine and marijuana (2006), and knew he was prohibited from possessing a firearm or ammunition. He pleaded guilty to the charge of possession of a firearm by a convicted felon on November 7, 2022.
The case was investigated by the ATF and Vermilion Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Craig R. Bordelon.
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Texas Man Pleads Guilty to Hate Crime and Arson for Setting Fire to SynagogueRead the Press Release
A Texas man pleaded guilty today to a hate crime and arson in connection with a fire he set at the Congregation Beth Israel synagogue in Austin, Texas, on Oct. 31, 2021.
According to court documents and admissions made during the plea hearing, three days before the arson, on Oct. 28, 2021, Franklin Sechriest of San Marcos, Texas, drove to the synagogue’s parking lot outside its sanctuary. According to journals recovered from Sechriest, he went there to “scout out a target.” Sechriest admitted that he targeted the synagogue because of his hatred of Jews, and his journals were replete with virulent antisemitic statements and views. Sechriest also possessed several decals and stickers expressing antisemitic messages.
The night of the arson, Sechriest drove to the synagogue and was seen on surveillance video carrying a five-gallon container and toilet paper toward the synagogue’s sanctuary. Moments later, multiple surveillance videos captured the glow of a fire from the direction of the sanctuary. A security camera captured Sechriest jogging away from the direction of the fire and toward the open driver’s side door of a vehicle. A concerned citizen reported the fire, and the Austin Fire Department responded quickly to extinguish it. In Sechriest’s journal, in an entry dated Oct. 31, 2021, he wrote “I set a synagogue on fire.” In the days following the arson, Sechriest’s journal noted that he was actively monitoring media reports to track the progress of the investigation into the arson.
“Antisemitism has no place in our society, and hate-fueled violence will not be tolerated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By targeting a house of worship, the defendant attempted to intimidate and disrupt the Jewish community. The Department of Justice is committed to aggressively prosecuting antisemitic violence and will continue to hold accountable the people responsible for these deplorable incidents.”
“These hate-filled crimes not only caused damage to a Jewish place of worship, but they were intended to intimidate and undermine the well-being of the entire Jewish community,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “Antisemitic violence and violence against any person or group on account of their religion will not be tolerated. My office will remain vigilant in bringing to justice criminals who engage in hate crimes.”
“One of the FBI’s highest priorities is to protect the civil rights of all Americans,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Field Office. “Hate crimes such as this one devastate and terrorize communities. The FBI remains steadfast and committed to working with our partners to prevent violent incidents like this one, which was motivated by bias and hate. We also urge the public to report any suspected hate crimes to the FBI and local law enforcement.”
The sentencing is set for June 23. Sechriest faces a maximum sentence of 20 years in prison and a $250,000 fine.
Assistant Attorney General Clarke, U.S. Attorney Esparza and Special Agent in Charge Oliver made the announcement.
The FBI and Austin Fire Department investigated the case.
Assistant U.S. Attorney Matthew Devlin for the Western District of Texas and Trial Attorney Andrew Manns of the Civil Rights Division’s Criminal Section are prosecuting the case.
Tampa Man Sentenced to Prison for Unlawful Possession of Guns, Grenades, and Classified InformationRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Jeremy Brown (48, Tampa) to seven years and three months in federal prison, to be followed by three years of supervised release, for possession of unregistered short-barrel firearms, possession of unregistered explosive grenades, improper storage of explosive grenades, and retention of classified information. In addition, he was ordered to forfeit the unregistered devices traceable to the offense, pay child support arrears and a special assessment in the amount of $525.
Brown was found guilty after a jury trial on December 12, 2022. According to evidence presented at trial, on Sept. 30, 2021, the FBI executed an arrest and search warrant at Brown’s residence in Tampa. During the search, agents found an unregistered AR-15-style rifle, modified to have a 10” barrel, in Brown’s bedroom. Agents also found a sawed-off shotgun, also unregistered, on a couch inside of Brown’s recreational vehicle (RV), which was parked near his home. Inside a briefcase next to the shotgun, agents found a classified Trip Report that Brown had authored shortly before he retired from the U.S. Special Forces. Inside the bedroom of that same RV, agents found an ammunition vest containing two M-67 fragmentation grenades hidden in the pockets. U.S. Army records confirmed that the grenades had originally been in the possession of the U.S. Army.
Trial evidence also established that Brown had served as a weapons sergeant in the Special Forces, which would have given him access to M-67 fragmentation grenades. Finally, the evidence established that the classified Trip Report contained highly sensitive information about U.S. Department of Defense intelligence – gathering tactics, techniques, and procedures, including information about a human source that, if released, could have caused the source to be arrested, tortured, or killed.
“The communities we serve can be assured by investigations such as this that the FBI and its law enforcement partners are working diligently and tirelessly to support the mission of protecting the American people and upholding the United States Constitution,” said FBI Tampa Special Agent in Charge David Walker.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Daniel J. Marcet and Risha Asokan, and by National Security Division, Counterintelligence and Export Control Section Trial Attorney Menno Goedman.
Statement from Attorney General Merrick B. GarlandRead the Press Release
The Justice Department tonight issued the following statement from Attorney General Merrick B. Garland following the district court decisions in Alliance for Hippocratic Medicine v. FDA and Washington et al. v. FDA:
“The Justice Department strongly disagrees with the decision of the District Court for the Northern District of Texas in Alliance for Hippocratic Medicine v. FDA and will be appealing the court’s decision and seeking a stay pending appeal. Today’s decision overturns the FDA’s expert judgment, rendered over two decades ago, that mifepristone is safe and effective. The Department will continue to defend the FDA’s decision.
Separately, the Justice Department is reviewing the decision of the District Court for the Eastern District of Washington in Washington et al. v. FDA.
The Department is committed to protecting Americans’ access to legal reproductive care.”
South Burlington Man Sentenced to Federal Prison in Connection with Cocaine Distribution Resulting in a Non-Fatal OverdoseRead the Press Release
Burlington, Vermont – The United States Attorney’s Office for the District of Vermont stated that Bruce Erdmann, 63, of South Burlington, Vermont, was sentenced today, to three months of incarceration and three months of home detention following his guilty plea to a charge of distribution of cocaine. Chief U.S. District Judge Geoffrey W. Crawford also ordered Erdmann to pay a $4,000 fine and serve three years of federal supervised release. The sentence imposed by Judge Crawford was determined with reference to the Federal Sentencing Guidelines.
According to court records, Erdmann’s conviction stemmed from a March of 2021 incident in which he distributed cocaine to an individual within his residence, resulting in a non-fatal overdose.Special Agent in Charge Fernando P. McMillan, FDA Office of Criminal Investigations New York Field Office, stated, “We commend the United States Attorney’s Office and our law enforcement partners as we work together to protect the public health.”
U.S. Attorney Nikolas P. Kerest thanked the U.S. Food and Drug Administration and the South Burlington Police Department for their investigatory work on this case.
The case was prosecuted by Assistant United States Attorneys Kimberly Ang and Nate Burris. Erdmann was represented by Attorney Ian Carleton, Esq.
Second Mexican National Sentenced for Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A second Mexican national has been sentenced in federal court after a Missouri State Highway Patrol trooper found more than 88 pounds (40 kilograms) of methamphetamine and a firearm during a car stop on Interstate 70 in Saline County, Mo.
Gustavo Renteria-Rojas, 39, a citizen of Mexico residing in Evanston, Ill., was sentenced by U.S. District Chief Judge Beth Phillips on Thursday, April 6, to 11 years and six months in federal prison without parole.
His brother and co-defendant, Jose Alfredo Renteria-Rojas, 34, a citizen of Mexico residing in Des Plaines, Illinois, was sentenced on Monday, April 3, to 11 years and six months in federal prison without parole.
Both Gustavo and Jose Renteria-Rojas have pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of using a firearm in furtherance of a drug-trafficking crime.
Gustavo Renteria-Rojas was driving a white 2011 Volkswagen Jetta SE on April 5, 2021, and Jose Renteria-Rojas was a passenger in the vehicle, which was stopped by a Missouri State Highway Patrol trooper on eastbound I-70 in Saline County, Mo. The trooper could smell the odor of burnt and raw marijuana emanating from the vehicle as he stood outside the front passenger-side window. He also noticed a marijuana blunt in the center console. When Gustavo Renteria-Rojas opened the glove box to retrieve the requested paperwork, a bag of marijuana was visible in plain view.
Gustavo Renteria-Rojas was placed in the trooper’s patrol car. The trooper requested Jose Renteria-Rojas, in the rear passenger seat, to exit the vehicle for a vehicle search. As Jose Renteria-Rojas did so, air fresheners fell from the car. Jose Renteria-Rojas then collected them and put them in the door pocket, which also contained a loaded Smith & Wesson .380-caliber handgun with a magazine, as well as an extra magazine.
The trooper searched the vehicle and found four white cardboard boxes in the trunk that contained 36 packages with a total of 88.7 pounds of methamphetamine. The trooper also found a methamphetamine smoking pipe concealed within a roll of toilet paper on the driver’s seat where Gustavo Renteria-Rojas had been sitting.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Drug Enforcement Administration and the Missouri State Highway Patrol.
Santa Rosa Doctor Sentenced to Two-And-A-Half Years in Prison for Unlawfully Prescribing Controlled SubstancesRead the Press Release
SAN FRANCISCO – Thomas Keller, formerly a pain management doctor in Santa Rosa, has been sentenced to 30 months in prison for distributing Schedule II and IV controlled substances outside the scope of his professional practice and without a legitimate medical need, announced United States Attorney Ismail J. Ramsey, Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris, FBI San Francisco Special Agent in Charge Robert K. Tripp, and U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan, and the California Department of Justice Division of Medi-Cal Fraud and Elder Abuse (DMFEA). The sentence was handed down by the Hon. Vince Chhabria, United States District Judge, after a jury found Keller was guilty of the crimes at trial in November 2022.
Keller, 75, was a Santa Rosa resident and a licensed physician who ran a pain management practice in Santa Rosa when he was indicted on September 27, 2018. At trial, the evidence demonstrated that Keller repeatedly prescribed the opioid oxycodone and other strong, addictive drugs to his patient, A.M., in dosages and combinations that far exceeded the usual course of professional practice and were for no legitimate medical need. A.M. was 17-years old and was struggling with mental health issues when she first came to Keller seeking help. Trial evidence established that these facts made the drugs that Keller prescribed more dangerous. On December 22, 2016, Keller prescribed high dosage levels of oxycodone to A.M., along with two other controlled substances, Carisoprodol (also known as Soma), and Diazepam (also known as Valium); the combination magnified the potential health risks for the patient. Further, evidence showed that on January 20, 2017, Keller distributed Diazepam to A.M., and on February 16, 2017, Keller distributed Oxycodone to A.M., again knowing the distribution of both was outside the scope of professional practice and not for a legitimate medical purpose. Keller also distributed Carisoprodol, a muscle relaxant often referred to as “Soma,” to A.M. on July 10, 2017. Approximately two weeks later, A.M. died of an overdose of Oxycodone and other drugs.
On November 3, 2022, a jury convicted Keller on four counts of unlawful distribution of controlled substances, in violation of 21 U.S.C. § 841(a)(1). The jury was unable to reach a verdict on six additional counts.
Court documents filed in connection with Keller’s sentencing describe the dangerousness of the drug combinations prescribed by the defendant as well as Keller’s understanding that the drug prescriptions were unsafe. For example, trial evidence established that the combination of an opioid, a benzodiazepine, and Soma together – colloquially known as “the Holy Trinity” – is an extremely dangerous combination of drugs; nevertheless, Keller prescribed this combination of drugs to A.M repeatedly for more than two years. Further, the government argued that evidence submitted at trial – in the form of trainings that Keller had received and Keller’s own journal entries – demonstrated that Keller prescribed the drugs even though (1) he knew the dangerousness and addictiveness of opioids, (2) he knew medical professionals promulgated guidelines and recommendations that aim to decrease the amounts of opioids that clinicians prescribe, and (3) he knew that his prescriptions to A.M. were outside the normal course of medical practice.
In addition to the prison term, Judge Chhabria ordered a three-year term of supervised release upon release from prison. Judge Chhabria ordered the defendant to surrender on or before September 8, 2023, to begin serving his prison term.
Assistant U.S. Attorneys Kristina Green and Ross E. Weingarten are prosecuting the case with the assistance of Pat Mahoney. This case was investigated and prosecuted by member agencies of the Organized Crime Drug Enforcement Task Force, a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state, and local law enforcement agencies. This prosecution is the result of investigations by the DEA, FBI, HHS-OIG, and the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse.
Owner of Brighton-Based Physical Therapy Clinic Pleads Guilty to Fraud SchemeRead the Press Release
BOSTON – A Boston woman pleaded guilty yesterday in federal court in Boston to her role in a scheme to defraud an insurance provider for physical therapy services that were not provided to patients.
Gyulnara Bayryshova, 57, pleaded guilty to one count of conspiracy to commit mail fraud. U.S. District Court Judge Richard G. Stearns scheduled sentencing for July 13, 2023. Bayryshova was indicted in February 2021 along with co-defendants Anna Barenboym, Slava Pride and Raya Bagardi.
Bayryshova was the owner of Brighton Physical Therapy (BPT), a Brighton-based physical therapy clinic. From October 2018 through June 2020, Bayryshova and her co-defendants conspired to cause an insurance company to reimburse them for physical therapy services that were not actually provided and/or were not medically necessary and, in some cases, were provided by individuals not licensed to provide the services. Specifically, Bayryshova and her co-defendants falsely billed for services purportedly rendered to patients injured in automobile accidents when the services were not actually provided. BPT also paid patients for referrals and referred patients to attorneys to assist with patients’ insurance settlements.
Bayryshova is the last remaining defendant to plead guilty in the case. Barenboym, Pride and Bagardi previously pleaded guilty to their roles in the conspiracy and are scheduled to be sentenced on May 10, 2023, May 24, 2023 and July 11, 2023, respectively.
The charge of conspiracy to commit mail fraud provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Anthony DiPaolo, Chief of Investigations of the Insurance Fraud Bureau of Massachusetts; Boston Police Commissioner Michael Cox; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Criminal Division is prosecuting the case.
Oviedo Man Sentenced to 30 Years in Prison for Receipt of Child Sex Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Trevor Lang (29, Oviedo) to 30 years in federal prison for receipt of child sex abuse material. The court also ordered Lang to forfeit a computer and hard drive which were used in the commission of the offense. Lang had pleaded guilty on November 17, 2022.
According to court documents, after a cyber tip was reported to the National Center for Missing and Exploited Children (NCMEC), federal agents executed a search warrant on Lang’s residence and recovered several electronic devices. A search of those devices revealed that Lang had sent, received, and viewed hundreds of images and videos depicting the sexual abuse of children. At the time, Lang was on sex offender probation for a prior state offense.
This case was investigated by the Federal 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.
Orlando Man Sentenced to 40 Years in Federal Prison for Producing Child Sexual Abuse MaterialRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Preston Percyville Cresser (22, Orlando) to 40 years in federal prison for production and possession of child sexual abuse material, to by followed by a lifetime of supervised release. The court also ordered Cresser to forfeit the electronic device utilized in the commission of the offense and to register as a sex offender. Cresser had pleaded guilty on December 7, 2022.
According to court documents, Cresser engaged in a “sextortion” scheme where he would engage minor females on various social media platforms and coerce them to create and send him child sexual abuse material. Cresser would demand additional sexual images or videos, and if the victim did not want to comply, would threaten to send the previous images to the victim’s family or post them to social media. Cresser would often demand that the minor video-call him, and he would surreptitiously record the minor performing the requested sexual acts.
“This investigation demonstrates the FBI and its law enforcement partners’ vigilance in rescuing young victims of sextortion and ensuring justice for their abusers,” said FBI Tampa Division Special Agent in Charge David Walker. “We’ve seen an alarming increase in sextortion schemes and encourage parents and caregivers to talk to their children about it. You can find information at www.fbi.gov/stopsextortion.”
This case was investigated by the Federal Bureau of Investigation, with assistance from the Apopka Police Department, and the Orlando Police Department. 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.
Opp, Alabama Woman Sentenced to Federal Prison for Stealing Funds from ChurchRead the Press Release
Montgomery, Alabama – On April 6, 2023, Carmen Ramer Davis, 59, from Opp, Alabama, received a sentence of 18 months in prison after pleading guilty to eight counts of wire fraud, announced United States Attorney Sandra J. Stewart. The federal judge also ordered that Davis serve one year of supervised release following her prison term.
According to court records and statements made in open court, sometime in 2006, the Brooklyn Congregational Methodist Church in Coffee County appointed Davis to serve as its secretary. In this position, Davis had authority to pay bills and expenses incurred by the church and had access to the church’s bank accounts. Davis eventually obtained a debit card associated with the church’s bank account without the church’s knowledge. Davis began using the card to make fraudulent cash withdrawals at ATMs and to purchase personal items at various retailers. She also fraudulently wrote checks from the church’s bank account to herself or made them out to cash. Davis did not make these withdrawals and purchases with the knowledge or consent of the church, nor were they for the church’s benefit. Evidence gathered during the investigation indicated that Davis used some of the illicit proceeds for trips to casinos in Mississippi and Alabama. The fraudulent activity was not discovered until August 2019, when a church leader received a letter from the church’s bank indicating there were insufficient funds to cover a $75.00 check written against the church’s account.
During today’s sentencing hearing, the judge determined that, over the course of the scheme (a period stretching from July of 2008 until July of 2019), Davis defrauded the church of $89,440.32. The judge ordered Davis to pay restitution to the church in that amount. Soon after the church leaders discovered Davis’s fraud, the Brooklyn Congregational Methodist Church closed due to financial hardship and has not reopened.
“The crimes committed by Ms. Davis victimized an entire faith community,” said United States Attorney Stewart. “The harm will continue to be felt for quite some time. I am hopeful that the sentence imposed will deter others from engaging in such deceitful conduct.”
“The actions of the defendant significantly damaged not only the church, but also the community at large,” stated FBI Special Agent in Charge Paul Brown. “I am proud of the work by the FBI and US Attorney’s office to hold Davis accountable for her actions and work toward repairing the public's trust.”
The FBI and the Coffee County Sheriff’s Office investigated this case. Assistant United States Attorney Joel Feil prosecuted the case.
Omaha Woman Sentenced for Drug ConspiracyRead the Press Release
United States Attorney Steven A. Russell announced that Victoria Bindas, 43, of Omaha, Nebraska, was sentenced on April 6, 2023, by United States District Judge Brian C. Buescher for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. Bindas received a sentence of 121 months’ imprisonment with a five-year term of supervised release to follow. There is no parole in the federal system.
Beginning in mid-2018, a Drug Enforcement Administration task force started investigating the methamphetamine distribution operation of David Duane Short, based out of the Omaha, Nebraska, metro area. This investigation included a court ordered Title III interception of phone calls and text messages, allowing agents to identify the scope of the conspiracy and its’ members. Bindas was intercepted on numerous occasions contacting Short and was obtaining mutli-ounce quantities of methamphetamine. These deals between Short and Bindas were monitored by law enforcement. Bindas was ultimately held responsible for her in buying at least 1200 grams of methamphetamine from Short to distribute.
In addition to Bindas, several members of this multi-state drug trafficking organization have now been sentenced. Edward Glen Summers (Council Bluffs) was sentenced to 180 months’ imprisonment, Kaden Henry (Wisner, Nebraska) was sentenced to 168 months’ imprisonment, Rose Ellen Points (Council Bluffs) was sentenced to 120 months’ imprisonment, Chelsea Leigh Short (Omaha) was sentenced to 132 months’ imprisonment, Christian Gonzalez-Gardea (El Paso, Texas) was sentenced to 135 months’ imprisonment, Rex Lee Kmiecik (Omaha) was sentenced to 132 months’ imprisonment, Robert Root (Council Bluffs) was sentenced to 144 months’ imprisonment, and David Duane Short (Omaha) was sentenced to 210 months’ imprisonment.
This effort was 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.
This case was investigated by the Drug Enforcement Administration, Omaha Police Department, Nebraska State Patrol, IRS’s Criminal Investigations, and the Pottawattamie County (Iowa) Sheriff’s Office.
Omaha Citizen Sentenced for Drug Trafficking ConspiracyRead the Press Release
United States Attorney Steven A. Russell announced that Kenneth Flowers, 48, was sentenced on April 6, 2023, in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute 50 grams or more of pure methamphetamine. United States District Judge Brian C. Buescher sentenced Flowers to 40 months imprisonment. There is no parole in the federal system. After his release from prison, Flowers will begin a five-year term of supervised release.
On March 18, 2021, the DEA Criminal Interdiction Unit, while working at the U.S. Post Office in Omaha, Nebraska, intercepted a package containing 1,585 grams of pure methamphetamine. The package was destined to be delivered to an address in Omaha. Undercover special agents delivered the package to the listed address and observed Flowers pick up the package and deliver the package to the residence of Elmer Hernandez. Flowers was then arrested. Hernandez was later arrested for drug and firearm offenses.
Hernandez has pled guilty and is scheduled for sentencing on April 19, 2023.
This case was investigated by the Drug Enforcement Administration.
North Carolina Pharmacy Agrees to Resolve False Claims Act AllegationsRead the Press Release
MedCare Clinic & Pharmacy, LLC (MedCare), located in Indian Trail, North Carolina, has agreed to pay $213,677 to resolve allegations that it violated the False Claims Act by knowingly billing federal health care programs for medications that were never dispensed.
The United States alleged that, from Jan. 1, 2016, through Dec. 31, 2019, MedCare billed both Medicare Part D and North Carolina Medicaid for 200 prescription medications that MedCare never distributed to beneficiaries. According to the government’s allegations, inventory records showed that MedCare did not buy enough of these medications to fill all of the prescriptions billed to these health care programs.
“Pharmacies may bill only for medications that they actually sell,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our office will continue to pursue entities that knowingly and unjustly enrich themselves at the taxpayers’ expense.”
“When pharmacies bill government programs for prescriptions that are not disbursed to patients, taxpayer dollars are wasted and finite resources are diverted from beneficiaries in need,” said the U.S. Attorney Dena J. King for the Western District of North Carolina. “Our office will continue to work with our state and federal partners to investigate and hold accountable those who seek to profit from fraud on federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former MedCare employees Brittanie Henry and Zilphia Adcock. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. Henry and Adcock will receive $53,419.43 as their share of the settlement. The qui tam case is captioned U.S. ex rel. Henry v. Pharmacy Holdings, et al., No. 3:20-cv-61 (W.D.N.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of North Carolina, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the Department of Health and Human Services Office of Inspector General.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Senior Trial Counsel Jennifer Cihon of the Civil Division, Assistant U.S. Attorney Caroline McLean and Investigator Cathleen Hollowell for the Western District of North Carolina investigated the case.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
North Carolina Pharmacy Agrees to Resolve False Claims Act AllegationsRead the Press Release
CHARLOTTE, N.C. – MedCare Clinic & Pharmacy, LLC (MedCare), located in Indian Trail, North Carolina, has agreed to pay $213,677.00 to resolve allegations that it violated the False Claims Act by knowingly billing federal health care programs for medications that were never dispensed.
The United States alleged that, from Jan. 1, 2016 through Dec. 31, 2019, MedCare billed both Medicare Part D and North Carolina Medicaid for two hundred prescription medications that MedCare never distributed to beneficiaries. According to the government’s allegations, inventory records showed that MedCare did not buy enough of these medications to fill all of the prescriptions billed to these health care programs.
“Pharmacies may bill only for medications that they actually sell,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Our office will continue to pursue entities that knowingly and unjustly enrich themselves at the taxpayers’ expense.”
“When pharmacies bill government programs for prescriptions that are not disbursed to patients, taxpayer dollars are wasted and finite resources are diverted from beneficiaries in need,” said the U.S. Attorney Dena J. King for the Western District of North Carolina. “Our office will continue to work with our state and federal partners to investigate and hold accountable those who seek to profit from fraud on federal health care programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by former MedCare employees Brittanie Henry and Zilphia Adcock. Under those provisions, a private party may file an action on behalf of the United States and receive a portion of any recovery. Henry and Adcock will receive $53,419.43 as their share of the settlement. The qui tam case is captioned U.S. ex rel. Henry v. Pharmacy Holdings, et al., No. 3:20-cv-61 (W.D.N.C.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Western District of North Carolina, with assistance from the Medicaid Investigations Division of the North Carolina Attorney General’s Office, and the Office of Inspector General of the United States Department of Health and Human Services.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
Senior Trial Counsel Jennifer Cihon, Assistant U.S. Attorney Caroline McLean, and Investigator Cathleen Hollowell investigated the cause.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
Meth Trafficker Sentenced to 292 Months' ImprisonmentRead the Press Release
CHATTANOOGA, Tenn. – On April 7, 2023, Armando Mejia-Almazan, 44, a Mexican National, was sentenced to 292 months in prison by the Honorable Travis R. McDonough, Chief United States District Judge, in the United States District Court at Chattanooga.
As part of the plea agreement filed with the court, Mejia-Almazan agreed to plead guilty to an indictment charging him with one count of conspiracy to distribute 50 grams or more of methamphetamine (actual) and 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(A), and 846. After his release from imprisonment, Mejia-Almazan will be on supervised release for five years and may be subject to deportation.
According to court documents and evidence presented at sentencing, Mejia-Almazan, who had previously been removed from the United States and unlawfully returned, distributed more than 50 kilograms of ice methamphetamine to a Chattanooga-based drug trafficking organization. Mejia-Almazan utilized multiple apartments in the Atlanta metro area to facilitate his drug trafficking and acted under the direction of a Veracruz, Mexico-based methamphetamine broker affiliated with the Cartel de Jalisco Nuevo Generacion (“CJNG”).
“The United States Attorney’s Office is committed to targeting the ongoing threat to our communities from cartel-based drug traffickers,” said United States Attorney Francis M. Hamilton III. “We will continue to work with our law enforcement partners to ensure that those who seek to profit from flooding our communities with dangerous drugs will face justice.”
I'm very proud of the work done by the dedicated men and women of DEA in this case," said Special Agent in Charge J. Todd Scott, head of Drug Enforcement Administration's ("DEA") Louisville Field Division. "Mr. Mejia-Almazan had tentacles reaching down into Mexica, straight to the Sinaloa and Jalisco New Generation Cartels, the two ruthless, violent criminal organizations that are intentionally poisoning Americans to drive addiction."
This sentencing was the culmination of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Appalachia HIDTA mission is to use a multi-disciplinary approach to deal with the ongoing threats to public health and safety, particularly as it regards prescription drug diversion, the emerging threat of heroin, as well as the continued threats of marijuana, cocaine, methamphetamine, and synthetic drugs. The Appalachia region is arguably the epicenter of this crisis and requires unprecedented multi-disciplined cooperation to effectively address the many faceted health and public safety problems that result from this daunting threat. The Appalachia HIDTA will serve as the conduit for this cooperation.
Law enforcement agencies participating in the joint investigation which led to the indictment and subsequent conviction of Mejia-Almazan, included DEA Chattanooga Resident Office, DEA Atlanta Field Division, Federal Bureau of Investigation Chattanooga Resident Agency, Chattanooga Police Department, and Hamilton County Sheriff’s Office. Numerous agencies from the Appalachia High Intensity Drug Trafficking Area (HIDTA) Task Force assisted in the investigation.
Assistant U.S. Attorney Kevin T. Brown represented the United States.
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McCall Man Sentenced to Prison for Illegal Timber Harvesting and Banned from All National Forest LandsRead the Press Release
BOISE – Richard Russell Kersten, 36, of McCall, Idaho, was sentenced to one month in federal prison for illegally harvesting timber from national forest lands, U.S. Attorney Josh Hurwit announced today. In addition, Kersten was ordered to pay the government $8,000 in restitution and banned from entering all National Forest System lands for a period of three years.
According to court records, beginning in late 2018, U.S. Forest Service officers received information about a group of individuals who were causing extensive natural resource damage in the Payette National Forest near McCall. These individuals were cutting and removing timber illegally and then selling it as firewood in the local communities. Through numerous investigative methods, officers learned that Kersten was acting as a “watchdog” for the group and was illegally removing trees and creating unauthorized roads and campsites in the forest. The investigation later expanded to include the Nez Perce and Boise National Forests.
The forests each have a fuelwood permit system that allows members of the community to lawfully cut a designated number of cords of firewood each year. The evidence showed, however, that Kersten was manipulating the fuel wood permit program and taking more than his permit allowed. This resulted in extensive natural resource damage to the forest.
“National forest lands are an Idaho treasure and provide recreation and resources for thousands of people each year,” said U.S. Attorney Hurwit. “Through close collaboration with our local, state, and federal law enforcement partners, we will protect these public lands so they can continue to be enjoyed by future generations.”
U.S. District Judge B. Lynn Winmill also sentenced Kersten to three years of supervised release, which will commence upon completion of his prison sentence. Kersten pleaded guilty to the crime on December 5, 2022, and was sentenced on April 3, 2023.
U.S. Attorney Josh D. Hurwit, of the District of Idaho, commended the cooperative efforts of the U.S. Forest Service, Bureau of Land Management, Idaho Department of Fish and Game, Idaho State Police, Adams County Sheriff’s Office, Valley County Sheriff’s Office, Idaho County Sheriff’s Office, and the McCall Police Department, which led to charges.
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Maryland Man Pleads Guilty to Check Theft and Forgery SchemeRead the Press Release
ALEXANDRIA, Va. – A Hanover, Maryland, man pleaded guilty today to his role in a check theft and forgery scheme involving at least 10 victims and nearly half a million dollars in loss.
According to court documents, Akinbobola Komolafe, 27, and other individuals stole checks from the U.S. mail, many of which had been mailed from the area around Glen Echo, Maryland. Komolafe and his co-conspirators then altered the checks to change the payment amount and the payee’s name. For example, Komolafe and his conspirators altered a check originally written for $43.20 to a medical practice to instead pay $40,000 to a co-conspirator. Another check involved in the conspiracy, originally written for $140.00 to a physician, was altered to pay $30,000 to a co-conspirator.
Komolafe was captured on surveillance footage at Wells Fargo bank branches in Falls Church and Arlington, depositing the fraudulent checks into the accounts of recruited co-conspirators. Komolafe was identified as the depositor of the checks by his distinct clothing, which matched that which he was wearing in posts on his social media accounts.
Once the fraudulent proceeds were deposited, Komolafe and others divided the proceeds among themselves and transferred the proceeds into other accounts to conceal the source of the proceeds. The conspiracy caused no less than approximately $486,716 in loss, and Komolafe personally obtained or shared in no less than $100,000 of that loss.
Komolafe is scheduled to be sentenced on July 28, 2023. He faces a maximum penalty of 30 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Damon E. Wood, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after Senior U.S. District Judge T. S. Ellis III, accepted the plea.
Assistant U.S. Attorneys Zachary Ray and Katherine Rumbaugh are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:23-cr-14.
Man Guilty of Federal Charge Related to April 2022 Shooting DeathRead the Press Release
DES MOINES, IA – On April 5, 2023, a federal jury convicted a Des Moines man of possessing ammunition in connection with the April 2022 shooting death of a man.
According to court documents and evidence presented at trial, Tyrone Scott Cameron, 29, shot and killed a man after a fight over a debt Cameron owed. The evidence showed that Cameron left the apartment complex where the fight occurred and later returned with a gun. He fired 15 rounds of ammunition through a closed apartment door, striking and killing a male victim. A second victim survived. Cameron then fled the scene and was later identified as the shooter through surveillance video, witness statements, and cell site location records.
Cameron’s sentencing date has not yet been set. He faces up to 10 years in federal prison. There is no parole in the federal system.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The case was investigated by the Des Moines Police Department, with assistance at trial by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Federal Bureau of Investigation. Assistant United States Attorneys Mikaela Shotwell and Kristin Herrera are prosecuting 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.
Los Angeles Businessman, Utah Fuel Plant Operators and Employees Sentenced to Prison for Billion-Dollar Biofuel Tax Fraud SchemeRead the Press Release
Five individuals were sentenced this week to prison for their roles in a $1 billion biofuel tax conspiracy: Lev Aslan Dermen, aka Levon Termendzhyan, 56, was sentenced to 40 years; Jacob Kingston, 46, was sentenced to 18 years; Isaiah Kingston, 42, was sentenced to 12 years; Rachel Kingston, 67, was sentenced to seven years; and Sally Kingston, 45, was sentenced to six years.
According to court documents and testimony from Dermen’s 2020 trial, from 2010 to 2018, Dermen conspired with Jacob and Isaiah Kingston, their mother, Rachel Kingston, Jacob Kingston’s wife, Sally Kingston, and others, to fraudulently claim more than $1 billion in refundable renewable fuel tax credits. The IRS ultimately paid out more than $511 million in credits to Washakie Renewable Energy (“Washakie”), a Utah biodiesel company owned by Jacob and Isaiah Kingston. The Kingstons distributed the fraud proceeds among themselves and Dermen.
Dermen was found guilty after a seven-week jury trial of conspiracy to commit mail fraud, conspiracy to commit money laundering and money laundering. In addition to the prison sentence, U.S. District Judge Jill N. Parrish ordered Dermen to pay $442,615,520 in restitution to the IRS and imposed a money judgment of more than $181 million against him.
Jacob Kingston was ordered to pay $511 million in restitution to the IRS. The court also imposed a $338 million money judgment against him. Jacob Kingston was co-owner and CEO of Washakie. In July 2019, he pleaded guilty to conspiracy to commit mail fraud, filing false claims with the IRS, money laundering and conspiracy to commit the same, obstruction by concealing and destroying records and conspiracy to commit the same and witness tampering.
Isaiah Kingston was also ordered to pay $511 million in restitution to the IRS. Isaiah Kingston, Jacob Kingston’s brother, was co-owner and CFO of Washakie. In July 2019, he pleaded guilty to conspiracy to commit mail fraud, aiding and assisting in the filing of false partnership tax returns, money laundering and conspiracy to commit the same and obstruction by concealing and destroying records and conspiracy to commit the same.
Jacob and Isaiah Kingston both testified at Dermen’s trial in 2020.
Rachel Kingston was the “special projects manager” at Washakie and participated in the scheme by backdating documents and creating fake invoices to support the filing of the false claims. In July 2019, she pleaded guilty to conspiracy to commit mail fraud, money laundering and conspiracy to commit the same and obstruction by concealing and destroying records.
Sally Kingston also worked at Washakie and participated in the scheme by similarly backdating documents and creating fake invoices to support the filing of the false claims. In July 2019, she pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering.
The conspiracy began in 2010 and continued through 2018 and involved multiple fraudulent schemes. One involved purchasing biodiesel from the East Coast of the United States (which had been produced by others who had already claimed the renewable fuel tax credit) and exporting it to foreign countries, including Panama, then doctoring transport documents to disguise and import the biodiesel as “feedstock.” Washakie used this false paperwork to claim it had produced biodiesel from the feedstock to support its filing of fraudulent claims for IRS biofuel tax credits. Washakie also fraudulently obtained millions of EPA renewable identification numbers that were then sold for approximately $65 million. Later, Dermen and the Kingstons conspired to purchase millions of gallons of biodiesel and rotate it though the U.S. shipping system to create the appearance that qualifying fuel was being produced and sold by Washakie. Washakie applied for and was paid by the IRS over $300 million for its claimed 2013 production and over $164 million for its claimed 2014 production. Evidence at Dermen’s trial showed that, to further create the appearance of legitimate business transactions, Dermen and the Kingstons schemed to cycle their and other co-conspirators’ fraud proceeds in more than $3 billion in financial transactions through multiple bank accounts.
Throughout the scheme, Dermen falsely assured Jacob Kingston that Kingston and his family would be protected by Dermen’s “umbrella” of corrupt law enforcement and immune from criminal prosecution. In exchange, Jacob and Isaiah Kingston transferred over $134 million in fraudulent proceeds to companies in Turkey and Luxembourg that were subsequently laundered internationally and through the U.S. financial system.
Money from the fraudulent claims were distributed to Dermen and the Kingstons and used to make lavish purchases in the United States, Turkey, and Belize. Dermen’s associates in Turkey bought and rebuilt a 150-foot yacht named “Queen Anne.” The Queen Anne was seized by the government in Beirut, Lebanon in 2021, and then sold in Cyprus for $10.1 million. Dermen also caused Jacob Kingston to send more than $700,000 on behalf of Dermen to purchase land in Belize for a planned casino, for which the government is seeking forfeiture. The government is also seeking the forfeiture of other assets in Turkey related to the fraud proceeds sent there. Jacob and Isaiah Kingston sent more than $21 million in fraud proceeds to SBK Holdings USA, Inc., Dermen’s California-based company. Jacob Kingston used $1.8 million of the fraud proceeds to buy a 2010 Bugatti Veyron for Dermen as a “gift,” and Dermen gifted a chrome Lamborghini and a gold Ferrari to Jacob Kingston. Dermen and Jacob Kingston also laundered $3 million through Dermen’s company, NOIL Energy Group, to purchase a mansion in Sandy, Utah for Jacob and Sally Kingston.
The Kingston defendants sent over $35 million of their share of the fraud proceeds to their extended family and companies they owned.
Dermen also laundered $3.5 million through SBK Holdings USA, Inc., to purchase a mansion in Huntington Beach, California. The government now seeks forfeiture of this residence as well as a couple dozen other parcels of real property that were purchased with the Kingstons’ share of the proceeds.
“The significant sentences imposed by the court reflect the breathtaking scope of the defendants’ nearly decade-long tax fraud scheme – one of the largest ever,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Dermen and members of the Kingston family cost law-abiding taxpayers more than $500 million and attempted to steal double that. They also sought to cover their tracks by cycling billions-of-dollars in transactions through the banking system and using fuel purchases and oil tankers to give the illusion their plant was actually producing and selling biodiesel fuel eligible for IRS credits. Tax Division prosecutors and IRS-CI Special Agents not only unraveled this scheme – they uncovered, traced and recovered millions in proceeds secreted in Turkey, the United States and elsewhere.”
“The U.S. Attorney’s Office for the District of Utah thanks the Justice Department’s Tax Division and IRS investigators for their tireless efforts into shutting down this large-scale scheme,” said U.S. Attorney Trina A. Higgins for the District of Utah. “However, the work in this case is not over. Going forward, our office and the Tax Division will continue to work together to seek forfeiture of assets connected to this massive fraud scheme to recoup the losses it caused to the United States.”
IRS-Criminal Investigation, the Environmental Protection Agency-Criminal Investigation Division (EPA-CID), and the Defense Criminal Investigative Service (DCIS) of the Department of Defense Office of the Inspector General investigated the case.
“Today brings to a close the final step in the prosecution of these five defendants,” said Special Agent in Charge Albert Childress of the IRS Phoenix Field Office. “This case has been one of unprecedented fraud against the United States and its citizens and is one of the most egregious examples of tax fraud in U.S. history. These defendants not only participated in a scheme to steal over $500 million from the United States, but also went to great lengths to launder and hide their fraud proceeds. In addition, certain of the defendants even tried to conceal their fraudulent conduct by way of attempted witness threats and intimidation. After the last of the sentencings today, the government has made a statement that there will be severe consequences for fraud. Despite your efforts to launder your money, or any attempts to cover your crimes, there is always a trail which our financial investigators can follow, and justice will be done.”
“The defendants sought to illegally and fraudulently profit from a program that was designed to help reduce greenhouse gas emissions,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “This case sends a clear message that EPA and our law enforcement partners will aggressively prosecute these crimes and violators will pay a heavy price.”
Acting Deputy Assistant Attorney General Goldberg also thanked the Justice Department’s Office of International Affairs, as well as law enforcement partners in the Grand Duchy of Luxembourg, Austria, Belize, Ireland, Lebanon and Cyprus for their assistance in the case.
Senior Litigation Counsel John E. Sullivan and Trial Attorney Richard M. Rolwing of the Justice Department’s Tax Division, along with Assistant U.S. Attorney Leslie Goemaat for the District of Columbia, formerly of the Tax Division, prosecuted the case. Senior Policy Advisor Darrin L. McCullough of the Justice Department’s Money Laundering and Asset Recovery Section assisted with the extensive forfeiture proceedings related to the prosecution. Several Assistant U.S. Attorneys for the District of Utah assisted in the forfeiture proceedings.
Local Leader of Alprazolam Conspiracy Sentenced to Eight Years in Federal PrisonRead the Press Release
PENSACOLA, FLORIDA – Jason C. Martinez, 46, of Pensacola, Florida, was sentenced to eight years in federal prison for leading a local conspiracy aimed at distributing and possessing with intent to distribute alprazolam after previously pleading guilty on January 10, 2023. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Our local, state, and federal law enforcement partners work tirelessly to keep us safe and serve a critical role in our efforts to remove addictive, and all too frequently deadly, controlled substances from our communities,” said U.S. Attorney Coody. “These sentences demonstrate our commitment to support their efforts through the investigation and vigorous prosecution of criminals distributing drugs in North Florida.”
Between November 1, 2020, and March 11, 2022, Martinez, and his two co-conspirators, Chad E. Dennison, and Tina P. Rahn, conspired to distribute alprazolam throughout Pensacola.
On March 11, 2022, law enforcement executed multiple residential search warrants to conclude its nearly one-and-a-half year-long investigation into the alprazolam distribution conspiracy. During the investigation, law enforcement intercepted over one hundred parcels traveling through the United States Postal stream. Upon execution of the search warrants, law enforcement discovered pharmaceutical grade pill presses, pill counting machines, a full body suit and respirator, drug ledgers, and packaging products, amongst other items. Martinez received his orders from unknown co-conspirators via the dark web, and he then mixed, pressed, and packaged the pills as well as labelled them for distribution. Martinez then relied on his co-conspirators to deliver the packages to various post offices throughout the Pensacola area for distribution all over the country.
Martinez’s co-conspirators previously pled guilty to conspiracy to distribute and possess with intent to distribute alprazolam. The sentences imposed for all defendants were as follows:
- Jason C. Martinez, 46, of Pensacola, 8 years in federal prison, followed by 2 years’ supervised release;
- Chad E. Dennison, 44, of Pensacola, 48 months in federal prison, followed by 3 years’ supervised release; and
- Tina P. Rahn, 53, of Pensacola, 24 months in federal prison, followed by 3 years’ supervised release.
“The resolution to this investigation demonstrates the hard work and collaboration of our law enforcement partners. The leader of this extensive drug distribution network will now spend significant time behind bars,” said Juan Vargas, Inspector in Charge of the Miami Division, U.S. Postal Inspection Service. “Martinez and his co-conspirators plagued their communities with illicit drugs. This investigation is a great example of the U.S. Postal Inspection Service’s commitment to eliminating illicit drugs from the mail and protecting our communities.”
This case was investigated by the United States Postal Inspection Service with the assistance of local law enforcement to include the Escambia County Sheriff’s Office and Florida Highway Patrol. Assistant United States Attorney Jennifer H. Callahan prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Leader of multi-state drug trafficking group sentenced to 9 years in prison for distribution of fentanyl, meth, and heroinRead the Press Release
Seattle – A 39-year-old Woodinville, Washington, resident was sentenced today in U.S. District Court in Seattle to 108 months in prison, for his role as the leader of a conspiracy to distribute narcotics including fentanyl, meth, and heroin, announced U.S. Attorney Nick Brown. Jose Luis Ibarra-Valle has been in custody since his arrest in December 2020. At his sentencing hearing, U.S. District Judge Richard A. Jones said, “You introduced large quantities of heroin and fentanyl into this community…drugs that are highly addictive and dangerous.”
“During the investigation, Mr. Ibarra-Valle was heard on the wire-tap talking about getting a firearm so he could go after drug customers who owed him money,” said U.S. Attorney Brown. “And when Mr. Ibarra-Valle learned someone had died from his fentanyl laced pills, he wasn’t worried about selling deadly pills, instead he only complained that the death would cause increased law enforcement scrutiny.”
The investigation began in March 2020 and involved telephone wiretaps beginning in July 2020. The investigation revealed Ibarra-Valle was bringing drugs up from California to Oregon and Western Washington. Over the course of the investigation, law enforcement seized 16,000 fentanyl pills, 30 pounds of methamphetamine, and six pounds of heroin. Ibarra-Valle was stopped by law enforcement in October 2022 with 10,000 fentanyl pills, 20 pounds of methamphetamine, and more than a kilo of heroin.
Five members of the drug trafficking ring have already been convicted and sentenced:
JESUS GUTIERREZ-GARCIA, 33, Everett, WA was sentenced to 78 months in prison.
JESUS GARNICA-MELGOZA, 41, Seattle, WA was sentenced to 42 months in prison
SANTOS CARO, 37, Portland, Oregon was sentenced to five years in prison
LEE WALLETTE, 39, Mountlake Terrace, WA was sentenced to six years in prison
TISHA GIRTZ, 40, Lake Stevens, WA was sentencing to 54 months in prison
In asking for a ten-year sentence prosecutors noted the huge increase in overdose deaths. According to a national report, “between June 2020 and May 2021 more than 100,000 Americans died from drug overdose – more than twice the number of U.S. traffic fatalities or gun violence deaths during that period. Some two-thirds of these deaths – about 170 fatalities each day, primarily among those ages 18 to 45 – involved synthetic opioids.” Commission on Combatting Synthetic Opioid Trafficking – Final Report, Executive Summary, page ix, dated February 2022.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF .
The investigation was led by the Drug Enforcement Administration in partnership with the Federal Bureau of Investigation, Homeland Security Investigations, Whatcom Gang and Drug Task Force, Washington State Patrol, Snohomish Regional Drug Task Force, United States Border Patrol, Customs and Border Protection, Skagit County Interlocal Drug Enforcement Unit, the Whatcom County Sheriff’s Office, the Lake Stevens Police Department and Tulalip Police Department.
The case is being prosecuted by Assistant United States Attorney Vince Lombardi.
Justice Department and FTC Obtain Settlement to Stop Deceptive Marketing Practices Involving the Sale of Funeral Goods and ServicesRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that the U.S. District Court for the Southern District of Florida entered an order that requires Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano to pay $275,000 in civil penalties and to be subject to injunctive relief requiring them to comply with the FTC Act and the FTC’s Trade Regulation Rule Concerning Funeral Industry Practices (Funeral Rule). The FTC Act prohibits unfair and deceptive conduct and false advertising. The Funeral Rule prohibits providing consumers with inaccurate price information and requires certain disclosures to consumers regarding pricing for funeral-related goods.
The stipulated order settles the government’s allegations that Legacy Cremation Services, LLC, Funeral & Cremation Group of North America, LLC, and Anthony Joseph Damiano violated the FTC Act and Funeral Rule. The government’s complaint alleges that defendants serve as brokers between consumers and third-party funeral and cremation providers that offer funeral services, and that defendants have misled consumers about the locations where funeral services will be provided, as well as the ultimate costs of such services. The complaint also alleges that when consumers objected to these pricing practices, defendants refused to provide consumers with the remains of their loved ones until they paid. Under the settlement reached by the parties, defendants agreed not to engage in these practices. They also specifically agreed to clearly and conspicuously include on their websites the actual physical locations of the service providers and a link to their general price lists. Before accepting payment from any consumer, defendants agreed to provide an itemized, written statement of all prices and the total cost of services. defendants also agreed that their obligation to provide accurate information about their offerings and prices extends to consumers who inquire by telephone or electronic means.
“The Department of Justice is committed to protecting consumers from deceptive sales practices — particularly when consumers are in vulnerable circumstances, such as when a loved one passes” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “This resolution serves as a warning that the Department of Justice will not permit companies and individuals to profit from consumers’ grief by engaging in unlawful and deceptive marketing practices when offering funeral arrangements.”
“Lying to consumers about critical information including price and location of services when they are dealing with the loss of a loved one is outrageous and illegal,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Our actions in this case show the FTC’s commitment to enforcing the Funeral Rule to protect consumers and honest funeral homes.”
Trial Attorneys Wandaly Fernández García and Katherine Ho and Assistant Director Lisa K. Hsiao of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James A. Weinkle for the Southern District of Florida handled the matter. Rebecca Plett and Thomas Harris represent the FTC.
Justice Department Resolves Suit Against Virginia Beach Towing Company for Illegally Auctioning Off Servicemembers’ VehiclesRead the Press Release
The Justice Department has entered into a consent order requiring Steve’s Towing Inc. in Virginia Beach, Virginia, to pay $90,000 to settle a complaint alleging that the company violated the Servicemembers Civil Relief Act (SCRA). The complaint, which was filed on April 15, 2022, alleges that Steve’s Towing failed to obtain court orders before auctioning off vehicles belonging to at least seven SCRA-protected servicemembers, including two vehicles belonging to a member of a Navy SEAL team who was deployed overseas. The complaint further alleges that the company engaged in a pattern or practice of violating the SCRA and had no policies, practices, or procedures in place to ensure SCRA compliance. Under the SCRA, a towing company must determine whether a vehicle in its possession belongs to a servicemember; if so, the towing company must obtain a court order prior to selling the vehicle.
“This case began with a member of a Navy SEAL team who returned home from an overseas deployment, only to find that a towing company had auctioned off two vehicles that he had parked at a military base,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution will compensate all of the servicemembers whose vehicles were illegally taken from them while they were serving their country.”
“Servicemembers often rely heavily on their personal vehicles to commute to work and care for their families. A servicemember’s loss of a vehicle, therefore, can affect the military’s readiness,” said U.S. Attorney Jessica D. Aber for the Eastern District of Virginia. “EDVA is dedicated to holding accountable businesses who do not uphold the right of servicemembers under the SCRA.”
The department launched its investigation after a Navy legal assistance attorney reported that Steve’s Towing Inc. had sold two vehicles belonging to a deployed Navy SEAL without first obtaining court orders. One of the vehicles was a unique Toyota Land Cruiser. Stored inside the SEAL Team member’s Land Cruiser was evidence of his military service in the form of a duffel bag of military uniforms and a Naval Special Warfare Development Group Sniper challenge coin.
Under the proposed consent order, which still must be approved by the court, Steve’s Towing will pay $67,500 to the seven SCRA-protected servicemembers referenced in the United States’ complaint, up to $12,500 to compensate additional SCRA-protected servicemembers whose vehicles Steve’s Towing may have sold without first obtaining court orders and a $10,000 civil penalty. Steve’s Towing will also be required to provide SCRA training to its employees and to develop new policies and procedures consistent with the SCRA.
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at https://legalassistance.law.af.mil/. The department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section, together with U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $481 million in monetary relief for over 147,000 servicemembers through its enforcement of the SCRA. Additional information on the Justice Department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Jury Finds Massachusetts Man Guilty of a Conspiracy to Distribute FentanylRead the Press Release
CONCORD – A jury convicted a Methuen, Massachusetts man yesterday in federal court in Concord for a conspiracy to distribute fentanyl in New Hampshire, announces Jane E. Young.
Ramon Jaquez-Diaz, age 52, was convicted following a two-day jury trial for his role as a drug-runner in a conspiracy to distribute fentanyl operating out of Lawrence, Massachusetts. U.S. District Court Judge Paul J. Barbadoro scheduled sentencing for July 24, 2023 at 10 a.m. Jaquez-Diaz was indicted for this charge on March 8, 2021.
Jaquez-Diaz worked with others to transport fentanyl from New York to Massachusetts, and ultimately into New Hampshire. The fentanyl was internationally sourced. Twelve people were charged for this conspiracy.
The charging statute provides a sentence of no greater than 20 years in prison, at least 3 years of supervised release, and a maximum fine of $1,000,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
The Drug Enforcement Administration led the investigation. Assistant U.S. Attorneys Seth R. Aframe, Heather A. Cherniske, and John Kennedy are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on April 4 was:
Jicarilla Juan Tiznado, 23, of Farmington, New Mexico, on charges of cyberstalking. If convicted of the most serious crime, Tiznado faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Tiznado was detained pending further proceedings. The FBI and Fort Peck Law Enforcement investigated the case. PACER case reference. 22-81.
Brittany Alice Bradley, 25, of Harlem, and Daniel Francis First Raised, 32, of Harlem, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, distribution of methamphetamine, distribution of controlled substances and distribution of fentanyl. If convicted of the most serious crime, Bradley and First Raised face a mandatory minimum of five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Bradley was released pending further proceedings, while First Raised was detained pending further proceedings. The FBI and Tri Agency Task Force investigated the case. PACER case reference. 22-18.
Wilbur Joseph Nagel, 52, of Box Elder, on charges of distribution of controlled substances. If convicted of the most serious crime, Nagel faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Nagel was detained pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Rocky Boy’s Police Department and Montana Highway Patrol investigated the case. PACER case reference. 23-21.
Jesse Nunez-Ibarra, 22, of Great Falls, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, distribution of meth and distribution of heroin. If convicted of the most serious crime, Nunez-Ibarra faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. Nunez-Ibarra was released pending further proceedings. The Great Falls Police Department, Drug Enforcement Administration and Montana Division of Criminal Investigation investigated the case. PACER case reference. 22-102.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 5 was:
Anthony Holcomb, 29, April Jean Timberman, 41, and Bonita Hammons, 33, all of Miles City, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, the defendants face a mandatory minimum of 10 years to life in prison, a $10 million fine and at least five years of supervised release. All defendants were detained pending further proceedings. The Drug Enforcement Administration, U.S. Postal Service and Montana Division of Criminal Investigation investigated the case. PACER case reference. 23-32.
Appearing on April 3 was:
Jamie Nicole Selage, 26, of Crow Agency, on charges of assault resulting in serious bodily injury. If convicted of the most serious crime, Selage faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Selage was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-137.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on April 6 was:
Shanetwann Clayton Waldon, 45, of Fort Worth, Texas, on charges of conspiracy to commit bank fraud and bank fraud. If convicted of the most serious crime, Waldon faces a maximum of 30 years in prison, a $1 million fine and five years of supervised release. Waldon was detained pending further proceedings. The FBI, Missoula Police Department, Chubbock, Idaho, Police Department, Pocatello, Idaho, Police Department and Bannock County, Idaho, Sheriff’s Office, investigated the case. PACER case reference. 23-13.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Former county attorney for Starr County indicted for public corruptionRead the Press Release
McALLEN, Texas – A 49-year-old Rio Grande City man has been arrested for Travel Act violations, federal programs theft and Hobbs Act extortion under color of official right, announced U.S. Attorney Alamdar S. Hamdani.
Victor Canales was the former county attorney for Starr County. He is expected to make his initial appearance before U.S. Magistrate Judge Nadia S. Medrano at 9 a.m. Monday, April 10.
A federal grand jury returned the nine count indictment April 5, which was unsealed today upon his arrest.
According to the indictment, from on or about Jan. 1, 2005, until on or about April 20, 2022, Canales was the elected county attorney. In that role, he had the authority to collect fines and fees and to choose whether or not to prosecute certain offenses, according to the charges.
The indictment also alleges that Starr County had received more than $10,000 in federal benefits each year between 2018-2021. During that time, Canales allegedly embezzled property worth at least $5,000 in each of those years.
Further, Canales knowingly obstructed and affected commerce by extortion by obtaining property not due to him on four separate occasions in 2021, according to the indictment. Canales also allegedly knowingly and willfully used a facility in interstate and foreign commerce to carry on unlawful activity between 2017 and 2021.
Canales is charged with one count of the Travel Act violations which carries a possible sentence of up to five years in federal prison, upon conviction. He also faces a maximum of 10 years on each of four counts of federal programs theft and up to another 20 years on each conviction of Hobbs Act extortion under color of official right. All charges also carry a possible $ 250,000 maximum fine.
The FBI worked in partnership with the Texas Office of the Attorney General to conduct the Border Corruption Task Force (BCTF) investigation with the assistance of OCDETF Operation Ice River agencies including the Drug Enforcement Administration, Texas Department of Public Safety – Texas Rangers and Homeland Security Investigations.
The BCTF is comprised of multiple state and federal agencies that serve to disrupt and dismantle corrupt domestic public officials that operate along the southwest border.
Assistant U.S. Attorney Patricia Cook Profit is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.