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Thursday 23 February 2023
Acting United States Attorney Rivetti Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
PITTSBURGH - Acting United States Attorney Troy Rivetti announced that the U.S. Attorney’s Office for the Western District of Pennsylvania has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released yesterday. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will typically not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
Voluntary Self Disclosures should be directed to the United States Attorney’s Office for the Western District of Pennsylvania Acting Criminal Chief Tonya Goodman at 412-644-3500.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
35-Year-Old Man Sentenced to 24 Months for Attempted Firearms Trafficking into MexicoRead the Press Release
TUCSON, Ariz. – On Wednesday, Luis Carlos Martinez-Chacon, 35, of Chihuahua, Mexico, was sentenced by United States District Judge John C. Hinderaker to 24 months in prison, followed by 12 months of supervised release. Martinez-Chacon pleaded guilty to one count of Smuggling Goods from the United States.
On June 29, 2022, Martinez-Chacon attempted to exit the United States and enter the Republic of Mexico at the DeConcini Port of Entry in Nogales, Arizona. During a search of his vehicle, Customs and Border Protection officers found a 9mm Berretta pistol, a 9mm Glock 19 pistol, an FN57 rifle with a filed off serial number, a .45 caliber Colt M 1911, a Smith and Wesson 629 Classic .44 Magnum, a Magpul magazine (17 round capacity), two Berretta magazines (15 round capacity each), two FN57 magazines (20 round capacity each), two Colt 1911 magazines (seven round capacity each), 960 rounds of .223 Wolf ammunition, 880 rounds of .223 TUL ammunition, and six rounds of .45 caliber ammunition. The items were hidden inside the dashboard and center console of the vehicle. Martinez-Chacon admitted he expected to be paid in exchange for delivering the firearms, magazines, and ammunition to an individual in Mexico.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Sarah B. Houston, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01662-TUC-JCH (DTF)
RELEASE NUMBER: 2023-024_Martinez-Chacon# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
26-Year-Old Sentenced to 24 Months for Attempted Firearms Trafficking to MexicoRead the Press Release
TUCSON, Ariz. – Adan Gomez-Lopez, 26, of Nogales, Mexico, was sentenced on Wednesday by United States District Judge John C. Hinderaker to 24 months in prison, followed by 12 months of supervised release. Gomez-Lopez pleaded guilty to one count of Smuggling Goods from the United States.
On July 1, 2022, Gomez-Lopez attempted to exit the United States and enter the Republic of Mexico at the DeConcini Port of Entry in Nogales, Arizona. During a search of the vehicle, Customs and Border Protection officers found 510 rounds of .223 caliber ammunition, 103 rounds of .556 caliber ammunition, 600 rounds of 6.5mm ammunition, 350 rounds of 9mm pistol ammunition, 100 rounds of .30 caliber ammunition, 20 rounds of .308 caliber ammunition, and 50 rounds of 12-gauge shotgun ammunition. The ammunition was concealed within the vehicle’s quarter panels, speaker box, and non-factory compartments. Gomez-Lopez admitted that he expected payment in exchange for delivering the ammunition to an individual in Mexico.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Brandon M. Bolling, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01544-TUC-JCH (BGM)
RELEASE NUMBER: 2023-025_Gomez-Lopez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Wednesday 22 February 2023
Woman Sentenced to Prison for Straw Purchase of Firearm Used in Fatal Nicholas County ShootingRead the Press Release
CHARLESTON, W.Va. – Melanie Clodfelter, 41, of Summersville, was sentenced today to two years in prison, to be followed by three years of supervised release, for making a false statement in acquisition of a firearm. Clodfelter admitted to purchasing a semi-automatic firearm used to kill one Nicholas County deputy sheriff and seriously injure another in June 2022.
According to court documents and statements made in court, on November 17, 2021, Clodfelter bought a Radical Firearms, model RF-15, multi-caliber rifle in Nicholas County. Clodfelter admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473, by falsely certifying that she was the buyer of the firearm when she knew she was purchasing it for Richie Holcomb.
Clodfelter gave Holcomb the firearm on the day of the purchase. Clodfelter admitted that Holcomb gave her the money to buy the firearm. Clodfelter further admitted that she knew Holcomb was prohibited from possessing a firearm because he had a prior felony conviction.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Holcomb was prohibited from possessing a firearm because of a felony conviction for unlawful wounding in Webster County Circuit Court on July 30, 2014.
Clodfelter was prohibited from possessing a firearm because she was an unlawful user of methamphetamine. Prior to purchasing the firearm for Holcomb, Clodfelter knew that Holcomb was also an unlawful user of methamphetamine.
On June 3, 2022, law enforcement officers responded to a domestic disturbance in the Birch River area and encountered Holcomb and another individual. During the encounter, Holcomb fatally shot Nicholas County Sheriff’s Deputy Thomas Edward Baker III with the semi-automatic rifle purchased and provided by Clodfelter. Corporal Joshua Ellison was wounded in the exchange of gunfire. Holcomb was fatally shot.
Baker’s widow, Jamie D. Baker, addressed the court and described the impact of Clodfelter’s act on her life and the lives of his children, their family and the Nicholas County community. The court stated that Clodfelter’s “reckless act” led to the “loss of the life of a man of valor, courage and dedication.”
“It may have taken only a few seconds for Clodfelter to answer falsely on that ATF form, but the tragic consequences will last a lifetime,” said United States Attorney Will Thompson. “This case is why the statute was enacted. Some people may think that the straw purchase of a firearm is not a big deal, but when you have a dead deputy, a widow, children who will grow up without their father, and another wounded deputy, it’s a pretty significant crime.”
Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which assisted the Nicholas County Sheriff's Office and the West Virginia State Police in response to the shooting of the two deputies.
“The tragic death of Nicholas County Sheriff’s Deputy Thomas Edward Baker III, and the injury of another deputy, is another terrible example of what happens when guns are supplied to those who are prohibited from possessing them,” said Acting ATF Special Agent in Charge Robert Maynard of the Louisville Division. “ATF will continue to focus on those who drive violent crime, which includes those who commit violence using firearms and those that help them obtain firearms illegally. This case should serve as a strong warning to those involved in straw purchasing, there will be consequences to your actions.”
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Steve Loew, Negar M. Kordestani and Alex Hamner 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. 2:22-cr-135.
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United States Attorney's Office Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
NASHVILLE – United States Attorney Henry C. Leventis announced that the U.S. Attorney’s Office for the Middle District of Tennessee has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
“This policy seeks to standardize how VSDs are defined and credited by USAOs nationwide, to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations,” said U. S. Attorney Leventis. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from the Attorney General’s Advisory Committee’s White Collar Fraud Subcommittee.
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United States Attorney Trina A. Higgins Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
SALT LAKE CITY, UT – U.S. Attorney Trina A. Higgins announced that the U.S. Attorney’s Office for the District of Utah has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
United States Attorney Stephanie M. Hinds Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
United States Attorney Stephanie M. Hinds announced that the U.S. Attorney’s Office for the Northern District of California has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group on which U.S. Attorney Hinds sits. In addition to U.S. Attorney Hinds, the Working Group is comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
United States Attorney Erek L. Barron Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
Baltimore, Maryland - Erek L. Barron, United States Attorney for the District of Maryland announced today that the Maryland U.S. Attorney’s Office has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy, released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md.
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United States Attorney Clare E. Connors Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
HONOLULU – U.S. Attorney Clare E. Connors announced today that the United States Attorney’s Office (USAO) for the District of Hawaii has implemented the new national USAO Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a USAO, and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General Lisa O. Monaco’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), in the absence of any aggravating factor will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorneys Peace and Connors, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney’s Office Announces 20th Annual Project Safe Neighborhoods Logo ContestRead the Press Release
COLUMBIA, SOUTH CAROLINA — The United States Attorney's Office is sponsoring the 20th Annual Project Safe Neighborhoods (“PSN”) Logo Contest. The statewide contest welcomes students to illustrate how we can help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications. The theme is “Preventing Gun Violence in Our Schools – Know the Signs.”
The contest is open to all South Carolina grade school students, including homeschooled students, and entries will be categorized into four grade divisions: K-2nd grade, 3rd-5th grade, 6th-8th grade, and 9th-12th grade. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo will be chosen from the four division winners and will receive an additional $50 prize for a total of $100.
The winning entries will be selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state encouraging children and promoting community awareness of the consequences of juvenile crime. In addition to the South Carolina Department of Juvenile Justice, the United States Attorney’s Office is proud to partner with the South Carolina Sheriffs’ Association, the South Carolina Police Chiefs’ Association, and the South Carolina Law Enforcement Officers’ Association for this year’s contest.
Entries should be consistent with the theme “Preventing Gun Violence in Our Schools – Know the Signs.” The deadline for submissions is March 31, 2023. If your student is interested in participating, contact your local school as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found on our website at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
The centerpiece of the Department of Justice’s violent crime reduction efforts, PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The contest is an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes among our young people and ensuring a safe learning atmosphere for our schoolchildren.
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U.S. Attorney Sellinger Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced that the U.S. Attorney’s Office for the District of New Jersey has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
“The intent of this new policy is to incentivize corporate responsibility and a culture of compliance,” U.S. Attorney Sellinger said. “We hope that companies will come forward when misconduct occurs, and cooperate with the government so that individual wrongdoers can be held accountable. When they do, they will have a far better and more predictable outcome.”
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s Sept. 15, 2022, memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by – in the absence of any aggravating factor – fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50 percent below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50 percent and up to a 75 percent reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of U.S. Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of U.S. Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, U.S. Attorney Sellinger, and U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, and U.S. Attorney for the Western District of Virginia Christopher Kavanaugh. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney Sayler A. Fleming Announces New Voluntary Self-Disclosure PolicyRead the Press Release
United States Attorney Sayler A. Fleming announced that the U.S. Attorney’s Office for the Eastern District of Missouri has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney Jesse Laslovich announces $1.3 million grant from Justice Department for investment in State Crisis InterventionRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich announced today a $1,387,530 award to the Montana Board of Crime Control as part of the Justice Department’s Byrne State Crisis Intervention Program. The award to Montana was among 49 awards to states, territories and the District of Columbia.
The investment of more than $231 million nationwide will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence. The awards are administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance.
“This grant to the Montana Board of Crime Control is an important part of the United States Justice Department’s effort to protect Montana communities from violent crime and gun violence. We are determined to ensure that our fellow Montanans are safe and secure. Importantly, these resources will give our communities tools to help prevent gun violence and support persons who are at risk of committing or becoming a victim of gun crimes,” U.S. Attorney Laslovich said.
In the award to the Montana Board of Crime Control, a Crisis Intervention Advisory Board (CIAB) will be formed from members of and be governed by the already existing Montana Board of Crime Control. The CIAB will discuss, inform and direct the state’s Byrne State Crisis Intervention Program strategies and funding priorities for the initial four-year grant period, from fiscal year 2023 to fiscal year 2026. Because Montana does not have Extreme Risk Protection Order laws, it is not anticipated the CIAB will pursue ERPO programs. The CIAB will consider court-based programs, such as drug, mental health and veterans’ treatment courts, including those that accept clients with firearm violations; behavioral health programs for persons at risk to themselves or others; and funding for law enforcement agencies to safely secure, store, track and return relinquished guns.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
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U.S. Attorney Avery Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office for the District of Connecticut has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by – in the absence of any aggravating factor – fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50 percent below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50 percent and up to a 75 percent reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
“Corporate crime can negatively impact our health, safety and financial security,” said U.S. Attorney Avery. “This Voluntary Self-Disclosure Policy not only details the benefits a company will receive for making a voluntary disclosure of misconduct and cooperating during a resulting investigation, but it also establishes a standard across U.S. Attorney’s Office nationwide for evaluating and crediting the self-disclosure. We encourage all companies who uncover wrongdoing within to come forward, save valuable law enforcement investigative resources, and receive the benefit of being a good corporate citizen.”
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Roberts Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Two Washington men sentenced to prison for trafficking heroin, methamphetamine, fentanyl pills in Missoula areaRead the Press Release
MISSOULA — Two Washington men who admitted to drug trafficking charges after Montana law enforcement found heroin, methamphetamine, fentanyl pills and a firearm in their vehicle during a traffic stop were sentenced today to prison, U.S. Attorney Jesse Laslovich said.
Alex Stephen Schmidt, 50, of Colville, Washington, was sentenced to six and one half years in prison, to be followed by five years of supervised release. Schmidt pleaded guilty in September 2022 to conspiracy to possess with intent to distribute controlled substances.
Co-defendant Richmond James McKee, 52, of Spokane, Washington, was sentenced to five years in prison, to be followed by five years of supervised release. McKee pleaded guilty in October 2022 to conspiracy to possess with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in October 2021, law enforcement conducted a traffic stop of a vehicle McKee was driving on Interstate 90 in Montana. The vehicle belonged to Schmidt. In a later search of the vehicle, officers found heroin, methamphetamine, fentanyl pills, a firearm and drug paraphernalia. The investigation determined that a confidential informant assisted Schmidt with selling drugs and that Schmidt was the individual who normally obtained the drugs.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, the Montana Highway Patrol and Missoula County Sheriff’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Two Nigerian citizens indicted for attempting to defraud the United States of over $25 millionRead the Press Release
Seattle – Two Nigerian citizens who currently reside in Toronto, Canada, have been indicted by a federal grand jury for their scheme to steal COVID-19 disaster benefits and U.S. tax refunds, announced U.S. Attorney Nick Brown. Sakiru Olanrewaju Ambali, 45, was arrested yesterday in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Fatiu Ismaila Lawal, 45, was arrested in Canada. Each defendant remains in Germany or Canada respectively pending extradition to the U.S.
“These men are accused of using the stolen identities of thousands of Americans to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State,” said U.S. Attorney Nick Brown. “My Office is committed to bringing to justice those accused of exploiting a time of crisis to illegally enrich themselves, whether they are in the United States or abroad.”
“These arrests demonstrate the Department’s commitment to bring together our law enforcement partners and pursue these alleged fraudsters around the world,” said Department of Justice Acting Director of COVID-19 Fraud Enforcement Michael C. Galdo. “I applaud the hard work of the U.S. Attorney’s Office for the Western District of Washington, thank our domestic and international partners for their continued assistance, and look forward to seeing additional results from the data analysis identifying suspected pandemic relief fraud.”
According to the indictment, Lawal and Ambali used the stolen personal information of thousands of U.S. taxpayers and residents to file fraudulent claims for COVID-19 pandemic assistance and false tax returns seeking refunds. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits.
The co-conspirators allegedly submitted claims for pandemic unemployment benefits to over 25 states including New York, Maryland, Michigan, Nevada, California, and Washington. Using 13 Google accounts they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud.
Lawal and Ambali allegedly filed some 2300 fraudulent income tax returns seeking over $7.1 million in tax refunds. The IRS caught most of the fraud and paid only about $30,000 in fraudulent refunds.
The co-conspirators also attempted to use the stolen identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration.
According to the indictment, the co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
Lawal and Ambali are charged with conspiracy to commit wire fraud, ten counts of wire fraud and six counts of aggravated identity theft.
The conspiracy and wire fraud counts are punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other prison time imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA).
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson of the Western District of Washington. DOJ’s Office of International Affairs is assisting.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
lawal_and_ambali_indictment.pdfTwo More New Orleans Residents Sentenced in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that, on February 15, 2023, U.S. District Judge Sarah S. Vance sentenced HERBERT ALLEN (“ALLEN”), age 38, and DION RIDLEY (“RIDLEY”), age 23, after they pleaded guilty to Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. Judge Vance sentenced ALLEN to 37 months in prison, followed by 3 years of supervised release. RIDLEY was sentenced to 6 months in prison, followed by 1 year of supervised release. Judge Vance also imposed a mandatory special assessment fee of $100 as to each defendant.
According to court documents, the defendants admitted to being in a conspiracy to commit mail fraud in connection with a staged automobile collision. In the scheme, ALLEN falsely claimed that he was the driver of a car that was struck by a tractor-trailer on June 28, 2017. RIDLEY, a passenger in the car, falsely claimed that ALLEN was driving the car and they were struck by a tractor-trailer. In fact, the government’s evidence showed that the defendants conspired with Damien Labeaud (“Labeaud”), Roderick Hickman (“Hickman”), and others to intentionally collide ALLEN’s 2007 Chevrolet Impala with a tractor-trailer in the area of Tchoupitoulas Street and Calliope Street in New Orleans. Both defendants lied in civil depositions, falsely claiming that ALLEN was driving the car that collided with the tractor-trailer, when in fact Hickman was driving the car and intentionally hit the tractor-trailer. Through their false statements and acts of deception, ALLEN was able to secure a $50,000 monetary settlement from the owner and insurer of the tractor-trailer, and RIDLEY was able to secure a $90,000 monetary settlement.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Unit Chief; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward Rivera, all members of the Financial Crimes Unit.
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Two Men Sentenced for Laundering Proceeds of a Business Email Compromise SchemeRead the Press Release
ALEXANDRIA, Va. – Two men were sentenced today to over 14 years in prison combined for money laundering as part of a business email compromise (BEC) scheme.
According to court documents, Onyewuchi Victor Ibeh, 33, of Mitchellville, Maryland, and Jason Eugene Joyner, 42, of Hyattsville, Maryland, participated in a scheme to launder the proceeds of a BEC scheme. In this scheme, conspirators infiltrate the computer systems of a victim company, including their email servers and email accounts, through phishing attacks or the use of malware. Once there, the conspirators impersonate the victim’s business partner and claim the business partner’s bank account information has changed. Intending to send the money to the business partner, the victim business instead sends the money to bank accounts controlled by the conspirators.
According to trial testimony, the network of accounts operated by defendants laundered about $13 million fraudulently obtained from numerous victim businesses between July 2016 and May 2020. Five of the defrauded businesses testified at trial, including one headquartered in Falls Church, Virginia. The co-conspirators laundered the proceeds of the scheme through various financial transactions using dozens of bank accounts that they directly and indirectly controlled. Joyner’s role in the scheme was to withdraw the proceeds of the fraud in cash, which he delivered to other conspirators, including Ibeh. Ibeh’s role in the scheme was to manage the money laundering by causing conspirators to open bank accounts, which he used to wire money domestically and internationally. Ibeh spent the proceeds of the fraud on luxury items, including a custom jewelry piece costing close to $40,000.
Ibeh was sentenced to 10 years and Joyner was sentenced to 51 months in prison. Ibeh and Joyner conspired with, among others, Anthony Ayeah and Mouaaz Elkhebri, both of whom have also been convicted of conspiracy to commit money laundering.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael Ray, Inspector in Charge of Cybercrime and National Security of the U.S. Postal Inspection Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorney Christopher Hood, Assistant U.S. Attorney Russell Carlberg, and Special Assistant U.S. Attorney Elizabeth Bagwell prosecuted 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. 1:21-cr-200.
Two Business Owners Sentenced for Conspiring to Pay Bribes in Exchange for Municipal Contracts in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – Two government contractors were sentenced this week for their involvement in separate bribery schemes in which they gave payments to the mayor of the municipality of Cataño, Puerto Rico, in exchange for the mayor’s awarding of municipal contracts to their respective companies.
Mario Villegas-Vargas, 44, of Gurabo, Puerto Rico, was sentenced today to 46 months in prison for conspiracy to commit federal funds bribery. According to court documents, Villegas-Vargas paid kickbacks and bribes in exchange for the mayor exerting his influence on municipal officials in Cataño to ensure that Villegas-Vargas’ asphalt and paving business, JR Asphalt, was awarded municipal contracts. Villegas-Vargas’ bribe payments and his efforts to conceal those payments resulted in his business being awarded over $9.9 million in municipal contracts in Cataño.
Other public officials in Puerto Rico have already pleaded guilty to receiving bribe payments from JR Asphalt, including the former mayors of Aguas Buenas, Guayama, and Trujillo Alto and the former Directors of Public Works in Guayama and Cataño.
Jose Bou-Santiago, 50, of Bayamon, Puerto Rico, was sentenced yesterday to two years in prison for conspiracy to commit federal funds bribery. According to court documents, in April 2019, Bou-Santiago provided a Rolex watch to the mayor of Cataño in exchange for a future municipal contract for Bou-Santiago’s company, Bou Maintenance Service. Specifically, in June 2019, Bou Maintenance Service was awarded a construction contract by the municipality valued at approximately $190,000.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the cases.
Trial Attorneys Nicholas W. Cannon and Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Chief of the Financial Fraud and Public Corruption Section Seth A. Erbe for the District of Puerto Rico prosecuted the cases.
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Two Business Owners Sentenced for Conspiring to Pay Bribes in Exchange for Municipal Contracts in Puerto RicoRead the Press Release
Two government contractors were sentenced this week for their involvement in separate bribery schemes in which they gave payments to the mayor of the municipality of Cataño, Puerto Rico, in exchange for the mayor’s awarding of municipal contracts to their respective companies.
Mario Villegas-Vargas, 44, of Gurabo, Puerto Rico, was sentenced today to 46 months in prison for conspiracy to commit federal funds bribery. According to court documents, Villegas-Vargas paid kickbacks and bribes in exchange for the mayor exerting his influence on municipal officials in Cataño to ensure that Villegas-Vargas’ asphalt and paving business, JR Asphalt, was awarded municipal contracts. Villegas-Vargas’ bribe payments and his efforts to conceal those payments resulted in his business being awarded over $9.9 million in municipal contracts in Cataño.
Other public officials in Puerto Rico have already pleaded guilty to receiving bribe payments from JR Asphalt, including the former mayors of Aguas Buenas, Guayama, and Trujillo Alto and the former Directors of Public Works in Guayama and Cataño.
Jose Bou-Santiago, 50, of Bayamon, Puerto Rico, was sentenced yesterday to two years in prison for conspiracy to commit federal funds bribery. According to court documents, in April 2019, Bou-Santiago provided a Rolex watch to the mayor of Cataño in exchange for a future municipal contract for Bou-Santiago’s company, Bou Maintenance Service. Specifically, in June 2019, Bou Maintenance Service was awarded a construction contract by the municipality valued at approximately $190,000.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the cases.
Trial Attorneys Nicholas W. Cannon and Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Chief of the Financial Fraud and Public Corruption Section Seth A. Erbe for the District of Puerto Rico prosecuted the cases.
Three Individuals Sentenced for Firearm Straw Purchasing ConspiracyRead the Press Release
NORFOLK, Va. – Three individuals were sentenced today and last week to 58 months in prison combined for engaging in a straw purchasing conspiracy.
According to court documents, from March 2020 through July 23, 2020, David Collins, 34, of Vineland, New Jersey, Cardel Howard, 36, of Norfolk, and Felicia Tyson, 36, also of Norfolk, conspired together to straw purchase firearms in Virginia Beach, and traffic the firearms to New Jersey. During the conspiracy, Tyson acted as a straw purchaser of firearms on behalf of others, including defendants Howard and Collins.
In total, Tyson purchased seven firearms and attempted to purchase an eighth firearm for other individuals. Howard directed Tyson as to which firearms to purchase and how much to charge others for firearms. Collins traveled from New Jersey to Virginia for the purpose of acquiring a firearm in Virginia, which he could not acquire on his own because he is a convicted felon and a resident of New Jersey. The investigation into this group began after law enforcement in New Jersey recovered a firearm during a shooting investigation and determined that the firearm was previously purchased by Tyson.
Collins was sentenced today to 22 months in prison. On February 15, Howard was sentenced to 22 months’ incarceration for his role in the conspiracy. On February 8, Tyson was sentenced to 14 months' incarceration for her role in the conspiracy.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell Longwood, Acting Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorney Megan Montoya prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-76.
Third and Pike armed drug dealer sentenced to five years in prisonRead the Press Release
Seattle – A 31-year-old Seattle man was sentenced today in U.S. District Court in Seattle to five years in prison for federal crimes related to his distribution of fentanyl pills in downtown Seattle and his armed shoplifting in Bellevue, announced U.S. Attorney Nick Brown. Kendall Alston was arrested on March 23, 2022, after Seattle Police Officers noted his hand-to-hand drug sales. The officers had been surveilling the area of 3rd Avenue between Pike and Pine Streets as part of “Operation New Day.” The emphasis patrol was aimed at increasing public safety in the Pike/Pine corridor where drug sales had led the area to become a hot spot for other crimes including assaults and shootings.
“Mr. Alston was armed with a loaded handgun while dealing potentially deadly fentanyl pills in downtown Seattle,” said U.S. Attorney Nick Brown. “Drugs and guns are a deadly combination and getting both off the street is a priority for the community.”
According to records filed in the case and testimony at trial, an officer in an observation point above the street witnessed a person in distinctive clothing engaging in what appeared to be a hand-to-hand drug sale. The officer returned to street level and saw the person later identified as Alston make another drug sale. Officers moved in and took Alston into custody. Alston carried 244 blue pills that were later tested and found to contain fentanyl. In his backpack, Alston carried a loaded Hi-Point .45 caliber semi-automatic handgun.
After a 3-day trial in August 2022, the jury deliberated about three hours before finding Alston guilty of knowingly distributing fentanyl, possession of fentanyl with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Following the guilty verdicts, Alston agreed to plead guilty to two additional counts of being a felon in possession of a firearm. The counts are related to his March arrest in downtown Seattle with the firearm, and a previous January 2022 arrest for shoplifting in Bellevue, where he was found to be carrying a different firearm.
Alston is prohibited from possessing firearms due to two felony convictions, a 2018 residential burglary conviction in Pierce County, and a 2013 residential burglary conviction in King County.
At the sentencing hearing U.S. District Judge Lauren J. King noted Alston was “an intelligent young man engaging in high-risk behavior…. Possessing a firearm while dealing drugs adds to the danger.”
The case was investigated by the Seattle Police Department with assistance from the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorneys Cecelia Gregson and Casey Conzatti.
Texan sentenced for transporting people in trunkRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old San Antonio resident has been ordered to federal prison for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
Bryan Tanner pleaded guilty Dec. 1, 2022.
Today, U.S. District Judge David S. Morales ordered Tanner to serve 37 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard evidence that while committing the offense, he possessed a loaded firearm that was readily available to him in the car. In imposing the sentence, Judge Morales noted the dangerousness of the offense and also considered Tanner’s criminal history which includes prior convictions for possession and distribution of a controlled substance.
On Sept. 8, 2022, Tanner approached the Border Patrol checkpoint near Sarita. He appeared nervous and could not answer law enforcement’s questions.
They asked to check the vehicle, at which time Tanner attempted to flee the checkpoint. Authorities stopped him and discovered three individuals concealed inside the trunk. Two of the individuals indicated they had been there for at least three hours.
The temperature inside the area was over 99 degrees.
Law enforcement also discovered a loaded 9mm handgun stashed between the driver’s seat and center console of the car.
Tanner has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.
Terrebonne Parish Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DERECK CELESTIN, JR., age 37, a resident of Terrebonne Parish, Louisiana, was sentenced on February 16, 2023 to 120 months imprisonment, 5 years of supervised release, and a mandatory $200 special assessment fee by U.S. District Judge Susie Morgan, after pleading guilty to a two-count indictment which charged him with distribution of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, a Drug Enforcement Administration (DEA) investigation revealed that CELESTIN was a methamphetamine distributor in Terrebonne Parish. DEA agents arranged two controlled purchases of methamphetamine from CELESTIN. On July 13, 2021, agents arranged the purchase of 48.73 grams of methamphetamine from CELESTIN. On August 9, 2021, agents arranged the purchase of 130.35 grams of methamphetamine from CELESTIN.
This case was investigated by the Drug Enforcement Administration and Terrebonne Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Shreveport Man on Supervised Release for Previous Federal Conviction Sentenced for Possessing a FirearmRead the Press Release
SHREVEPORT, La. – Charles M. Thomas, 26, of Shreveport, Louisiana, was sentenced today for being a convicted felon in possession of a firearm and for violating the terms of his federal supervised release, announced United States Attorney Brandon B. Brown. United States District Judge S. Maurice Hicks, Jr. sentenced Thomas to 46 months in prison, followed by 3 years of supervised release on the firearms charge.
Thomas was indicted in March 2022 and charged with possession of a firearm and ammunition by a convicted felon and pleaded guilty to the charge on August 4, 2022. The charge stems from an incident which occurred on March 7, 2022, when officers with the Shreveport Police Department arrested Thomas for domestic violence. Further investigation by law enforcement agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led to the discovery of video evidence of Thomas being in possession of a firearm. Agents knew that Thomas had previously been convicted in the Western District of Louisiana in 2018 for being a convicted felon in possession of a firearm and at the time of this arrest for domestic violence, was on supervised release for that conviction. During a search of the apartment where Thomas was staying, agents discovered a bag containing .223 and 5.56 caliber ammunition which belonged to Thomas. The ammunition was compatible with the firearm that Thomas was seen holding in the video. In addition, agents found in the apartment the same sweatpants that Thomas was wearing in the video. Thomas has a prior felony conviction for aggravated assault with a firearm (2015) and the prior felon in possession of a firearm conviction (2018) in the Western District of Louisiana.
Thomas was found to be in violation of his federal supervised release, and he was sentenced to an additional 14 months in prison to run consecutive with the above sentence.
The case was investigated by the ATF and Shreveport Police Department and prosecuted by Assistant U.S. Attorney Seth D. Reeg.
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Sanostee man pleads guilty to voluntary manslaughterRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Tyrone Atcitty Nez pleaded guilty to voluntary manslaughter. Nez, 33, of Sanostee, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on June 8, 2022, Nez fatally assaulted a man, identified as John Doe, in the home where Nez resides near Sanostee on the Navajo Nation. Nez allegedly punched John Doe in the face, rendering John Doe unconscious. Nez then allegedly stomped the victim in the face several times. John Doe died as a result of his injuries.
Nez faces up to 17 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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Salem Man Pleads Guilty for Using Twitter to Threaten Violence Against Robinhood EmployeesRead the Press Release
PORTLAND, Ore.—A Salem, Oregon man pleaded guilty today for using Twitter to threaten violence against employees of Robinhood Markets, Inc., an online financial services company based in Menlo Park, California.
Christopher David Michalski, 39, pleaded guilty to one count of interstate communication of threats.
According to court documents, on or about April 14, 2022, a Robinhood employee contacted the FBI to report a series of Twitter posts spanning nearly a year threatening violence toward Robinhood employees, including its Chief Executive Officer and his family. Further investigation revealed that the Twitter account used to transmit the threats, @goldshroomand1, was associated with the internet protocol address of Michalski’s home in Salem and that several photos of firearms accompanying the threats were taken at a nearby shooting range.
On April 25, 2022, Michalski was charged by criminal complaint with interstate communication of threats. The next week, on May 4, 2022, special agents from the FBI and officers from the Salem Police Department arrested Michalski without incident. On May 19, 2022, Michalski was indicted by a federal grand jury in Portland.
Michalski faces a maximum sentence of five years in federal prison, a $250,000 fine, and three years’ supervised release. He will be sentenced on May 15, 2023, by U.S. District Court Judge Michael H. Simon.
This case was investigated by the FBI with assistance from the Salem Police Department’s Strategic Investigation Unit. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
Russian Malware Developer Arrested and Extradited to the United StatesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and extradition of Dariy Pankov a/k/a “dpxaker.” Pankov is charged with conspiracy, access device fraud, and computer fraud. If convicted on all counts, he faces a maximum penalty of 47 years in federal prison. The indictment also notifies Pankov that the United States intends to forfeit $358,437, which is alleged to be traceable to proceeds of the offenses.
Pankov, a citizen and resident of Russia, was taken into custody by Georgian authorities in the Republic of Georgia, on October 4, 2022, and extradited to the United States pursuant to a request from the United States. Pankov appeared before United States Magistrate Christopher P. Tuite on February 21, 2023, in Tampa, Florida and was ordered detained pending trial.
According to the indictment, Pankov developed a malicious software program named “NLBrute.” The powerful malware was capable of compromising protected computers by decrypting login credentials, such as passwords. Pankov used NLBrute to obtain the login credentials of tens of thousands of computers located all over the world. He marketed, sold, and had others sell on his behalf, NLBrute to other cybercriminals for a fee. Pankov sold the stolen login credentials on a dark web website that specialized in the purchase and sale of access to compromised computers. Once sold, those credentials were used to facilitate a wide range of illegal activity, including ransomware attacks and tax fraud. Pankov listed the credentials of more than 35,000 compromised computers for sale on the website, and obtained more than $350,000 in illicit proceeds.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation was led by the Internal Revenue Service—Criminal Investigation, Tampa Field Office, and the Federal Bureau of Investigation, Tampa Field Office. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and United States Marshals Service. This investigation also benefited from foreign law enforcement cooperation by the Georgian Prosecutor General’s Office, Ministry of Justice, and Ministry of Internal Affairs. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Download IndictmentRensselaer County Sex Offender Arrested for Sexually Exploiting a Child, Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Zachary Cota, age 29, of Castleton-on-Hudson, New York, was arrested today for sexually exploiting a child and receiving child pornography. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
A criminal complaint alleges that between May 27, 2022 and June 7, 2022, Cota sexually exploited an 8-year-old child residing outside of New York State and also received child pornography.
The charges in the criminal complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Cota appeared today in Albany, before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending further proceedings.
Upon conviction, the charges filed against Cota carry a mandatory minimum term of 25 years in prison and a maximum of 90 years in prison, as well as a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Rotterdam, Troy, and Colonie Police Departments and the New York State Police. Assistant U.S. Attorneys Jonathan S. Reiner and Rachel L. Williams are prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Recidivist Fraudster Pleads Guilty to Fraud, Identity Theft, and Making False Statements in Connection with Andrews Air Force Base Construction ContractRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RAYMOND WHITE, a/k/a “John Raymond Anthony White,” a/k/a “Raymond Alexander White,” pled guilty yesterday to a scheme in which he defrauded the government by submitting fraudulent documents and false information about himself, his company’s business, and his company’s finances in order to obtain a $4.8 million contract to build a munitions load crew training facility at Joint Base Andrews, Maryland (“Andrews Air Force Base”), and to obtain a bond guarantee from the United States Small Business Administration (“SBA”) in connection with the contract. WHITE also committed aggravated identity theft by using another person’s signature and Social Security number. WHITE pled guilty before United States District Judge Edgardo Ramos.
U.S. Attorney Damian Williams said: “Despite a prior conviction by this Office, Raymond White continued to lie and fabricate information in order to line his own pockets. This time, White defrauded the government, submitting fraudulent documents and false information to obtain a nearly $5 million construction contract and to obtain a bond guarantee from the SBA in connection with the contract. This Office will continue to prosecute recidivist fraudsters until the message is clear and they have learned their lesson: committing financial fraud will lead to significant penalties.”
According to the Complaint, Superseding Indictment, public court filings, and statements made in court:
From in or about May 2019 through in or about September 2020, WHITE submitted a bid and related documents to the District of Columbia Army National Guard (“National Guard”) on a contract (the “Contract”) to build a munitions load crew training facility at Andrews Air Force Base. Prior to obtaining the Contract, WHITE provided the National Guard with fraudulent documents about himself and his company, Kochendorfer Group USA Inc., (“Kochendorfer”). WHITE submitted similar information to the SBA to obtain a guarantee from the SBA that was a requirement for obtaining the Contract.
The fraudulent documents that WHITE submitted to the National Guard and the SBA included a doctored bank account statement, fake reports from an accounting firm that WHITE had invented, and falsified financials. These documents purported to show that Kochendorfer had significant cash assets. In fact, Kochendorfer had virtually no money. WHITE also submitted a false resume and firm dossier, which described fictitious construction jobs and provided fake references. WHITE claimed, among other things, that he had overseen the construction of a World Cup soccer stadium in Brazil from 2012 to 2014 when in fact, WHITE was in federal prison during that time frame, serving a prison term on a prior fraud conviction. WHITE also lied to the SBA by denying that he had any prior criminal convictions. In furtherance of this fraud on the National Guard and the SBA, WHITE forged the signature of an attorney on a Kochendorfer letter and used another individual’s Social Security number on his SBA guarantee application.
Based on WHITE’s misrepresentations, the National Guard awarded the Contract to Kochendorfer and the SBA issued a guarantee. The National Guard terminated the Contract after discovering WHITE’s fraud, and no construction work was ever performed on the site. As a result of the Contract’s termination, the SBA has fulfilled multiple claims pursuant to the guarantee provided by the SBA.
In 2011, WHITE was convicted following a jury trial in the U.S. District Court for the Southern District of New York under the name “John Raymond Anthony White” for engaging in major fraud, mail fraud, false statements, and witness tampering. United States v. John Raymond Anthony White, S1 10 Cr. 516 (SHS). WHITE’s prior conviction arose out of his fraud in the procurement of four government contracts, for a scheme in which he falsely represented that he was a disabled veteran. As a result of his 2011 federal conviction, WHITE and his prior construction company, Mitsubishi Construction Corporation, were excluded from government contracting for a period of five years. The name that WHITE used in connection with the Contract — Raymond White — was different from the name he had used in connection with the government contracts at issue in his prior federal conviction.
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WHITE, 58, of New York, New York, pled guilty to one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; two counts of false statements and false writings, each of which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a consecutive mandatory minimum sentence of two years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for May 23, 2023, at 11:00 a.m.
Mr. Williams praised the work of the Air Force Office of Procurement Fraud Investigations and Office of Special Investigations and the Army Major Procurement Fraud Unit in this investigation.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Edward C. Robinson Jr., Jessica Greenwood, and Frank Balsamello are in charge of the prosecution, with the assistance of Paralegal Specialist Maria Gatica.
Portland Man Sentenced to Federal Prison for Assaulting Postal EmployeeRead the Press Release
PORTLAND, Ore.—On February 21, 2023, a Portland man was sentenced to federal prison for punching a U.S. Postal Service employee after stealing several trays of mail from a post office.
Dellmon Timmy Smith, 53, was sentenced to 30 months in federal prison and three years’ supervised release.
According to court documents, on November 22, 2021, Smith—who has a criminal history spanning decades that includes multiple felony convictions for theft and making threats of violence during his various thefts—entered a back door of the Creston U.S. Post Office on SE Foster Road in Portland, pushed past a postal service employee, grabbed two trays of mail, and ran away. The employee yelled for help and several other postal employees chased Smith down the street. When the first employee caught up to Smith, Smith dropped the trays of mail, reached into his waistband, and said “I have a gun, I’m going to shoot you.”
As two other employees caught up, Smith turn around and punched one of the employees in the face, below their left eye, and before falling to the ground. The employees took pictures of Smith, collected the stolen mail, and returned to the post office. Smith was later identified and arrested without incident.
On June 22, 2022, a federal grand jury in Portland returned a two-count indictment charging Smith with mail theft and assault on a federal officer. On November 28, 2022, he pleaded guilty to the assault charge.
This case was investigated by the U.S. Postal Inspection Service (USPIS). It was prosecuted by Meredith D.M. Bateman and Seth Uram, Assistant U.S. Attorneys for the District of Oregon.
Physician Agrees to $190,731 Settlement Relating to Controlled Substances Act ClaimsRead the Press Release
PENSACOLA, FLORIDA – Timothy Ramsden, of Panama City, Florida, practicing at The Anti-Aging Clinic of Northwest Florida, settled potential violations of the Controlled Substances Act by agreeing to pay a fine of $190,731 and surrendering his Drug Enforcement Administration (DEA) registration for Schedule II and IIN controlled substances for a period of five (5) years, along with compliance monitoring for a period of five (5) years. The settlement was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“In reaching this settlement, we emphasize the necessity of adhering to and enforcing the Controlled Substances Act,” said U.S. Attorney Coody. “It is our duty to ensure the mandates of the Controlled Substances Act are upheld and that its limits are not abused by physicians. Our office will continue to ensure compliance with the Controlled Substances Act and all federal laws regulating physicians.”
Dr. Ramsden entered into a civil settlement agreement with the United States Attorney’s Office for the Northern District of Florida. As part of the resolution, Dr. Ramsden will surrender his DEA registration for Schedule II and IIN controlled substances, not reapply for a period of at least five years, and pay a civil fine of $190,731. The investigation uncovered numerous potential civil violations of the Controlled Substances Act, including:
- Failing to keep complete and accurate records;
- Failing to properly document the biennial inventory;
- Failing to record the number of units or volume of each finished form in each commercial container on the biennial inventory;
- Failing to indicate the date received on two (2) invoices;
- Failing to properly indicate the dispositions within the patient file;
- Failing to document patient file where prescription for Testosterone Enanthate (5ML) Injectable was issued;
- Issuing prescription for Oxandrolone to patient which was returned to Dr. Ramsden for his personal use.
In addition to the monetary penalties and surrender of his DEA Schedule II and IIN registration, Dr. Ramsden agreed to compliance terms for the next five (5) years, including record-keeping monitoring and uninterrupted visits from the DEA.
“An important part of DEA’s mission is to ensure all DEA registrants follow the federal laws set forth in the Controlled Substance Act, to include accurate inventorying, tracking, and recordkeeping to prevent the diversion of controlled substances. When medical professionals fail to comply with these laws, it puts our communities at risk,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “DEA remains committed to working with our law enforcement and regulatory partners to hold registrants accountable and ensure our communities remain safe and healthy.”
This civil settlement agreement is not an admission of any liability by Dr. Ramsden, nor a concession by the United States that its potential claims were not well-founded.
Assistant United States Attorneys Mary Ann Couch, Kathryn Drey, and Marie Moyle represented the United States in this matter, which was investigated by the Drug Enforcement Administration, Diversion Control Program.
The U.S. 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 public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Omaha Man Sentenced for Possession of a Firearm by a FelonRead the Press Release
United States Attorney Steven Russell announced that Thomas Costanza, 52, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possession of a firearm by a felon. United States District Judge Brian C. Buescher sentenced Costanza to 30 months’ imprisonment followed by 3 years of supervised release for that offense. There is no parole in the federal system.
On August 4, 2020, Costanza sold a Colt Government Model .45 caliber handgun to Sol’s Jewelry and Loan in Omaha. During the transaction, Costanza provided his driver’s license, and Sol’s photocopied it. Costanza also provided a fingerprint and took a photograph. The sale was recorded on a sales ticket. Surveillance video from Sol’s showed Costanza enter the store with a brown bag, present it to the front counter, and remove the firearm. Costanza was subsequently arrested and admitted to law enforcement that he sold the firearm to Sol’s. That firearm was later determined to have been reported stolen. On August 4, 2020, Costanza had a prior felony conviction for Theft by Shoplifting-Third Offense in Douglas County District Court, and he was therefore prohibited from possessing a firearm.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
This case was investigated by the Omaha Police Department.
Omaha Man Sentenced for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – Diamond Cook, age 31, of Omaha, Nebraska, was sentenced on February 16, 2023, to 48 months in prison following his plea of guilty to being a prohibited person in possession of a firearm. After he is released from prison, Cook will serve three years of supervised release.
On February 24, 2022, a Fremont County Deputy stopped a car on Interstate 29 for not displaying registration and a nonworking brake light. The deputy could smell marijuana coming from the car. Cook was a passenger and lied about his name. During a search of the car, law enforcement located a loaded handgun. Cook is prohibited from having any firearms because he is a convicted felon.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Fremont Cunty Sheriff’s Office, the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Old Saybrook Contractor Sentenced to Prison for Tax EvasionRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that DIMITRIOS KASSIMIS, also known as Jimmy Kassimis, 58, of Old Saybrook, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 15 months of imprisonment, followed by three years of supervised release, for tax evasion.
According to court documents and statements made in court, Kassimis owns and operates various entities related to his construction business, including Allstate Contracting and JRC Renovations. In 2018 and 2021, Kassimis received substantial income from his businesses but did not file any personal or business federal income tax returns, and also did not file any employment tax returns for his businesses. The investigation revealed that Kassimis did not have any personal bank accounts. He paid all of his personal expenses through his business bank accounts and made cash withdrawals from the business accounts at casinos for personal expenses. He also cashed checks made payable to his businesses at a check cashing business in New York and failed to report that income. In addition, he did not issue IRS Forms 1099 or W-2 to his employees and paid at least some employees in cash.
The tax loss to the IRS for the 2018 through 2021 tax years was $233,086.87. Judge Williams ordered Kassimis to cooperate with the IRS to pay all outstanding tax liabilities.
On November 9, 2022, Kassimis pleaded guilty to one count of tax evasion.
Kassimis, who is released on bond, is required to report to prison on April 24.
This investigation was conducted by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
Ocean County Man Admits Sexually Exploiting MinorRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man today admitted coercing a minor into producing images of child sexual abuse, U.S Attorney Philip R. Sellinger announced.
Samuel Schwinger, 37, Lakewood, New Jersey, pleaded guilty before U.S. District Court Judge Georgette Castner in Trenton federal court to an information charging him with one count of sexual exploitation of a minor.
According to documents filed in the case and statements made in court:
In March 2019 used an internet-based application to communicate with the victim, who was under the age of 12. Schwinger asked the victim to make sexually explicit videos of the victim and send them to him. Schwinger admitted that from October 2018 through April 5, 2019, he communicated with more than 25 minor victims for the purpose of producing and distributing sexually explicit material.
The charge of sexual exploitation of a minor carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. Sentencing is scheduled for June 27, 2023.
U.S. Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill under the direction of Special Agent in Charge Ricky J. Patel in Newark; the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer; and the Lakewood New Jersey Police Department under the direction of Chief Gregory Meyer.
The government is represented by Assistant U.S. Attorney Michelle Gasparian, Chief of the General Crimes Unit.
North Platte Woman Sentenced for Drug Trafficking CrimeRead the Press Release
United States Attorney Steven Russell announced that Catherine Gibson, 45, of North Platte, Nebraska, was sentenced today in federal court in Omaha, Nebraska, for her role in a methamphetamine conspiracy. United States District Judge Brian C. Buescher sentenced Gibson to 46 months of imprisonment. There is no parole in the federal system. After her release from prison, she will begin a three-year term of supervised release.
In February and March of 2021, Gibson was part of a conspiracy to distribute methamphetamine in western Nebraska. As part of the conspiracy, on both February 22, 2021, and February 23, 2021, Gibson sold approximately 28 grams of methamphetamine to an informant. On March 3, 2021, law enforcement searched Gibson’s rental car and located approximately 110 grams of methamphetamine (actual) and ten fentanyl pills. On the same day, officers searched Gibson’s Alliance, Nebraska, residence and located an additional approximately 92 grams of methamphetamine. Gibson told officers that she picked up methamphetamine and was bringing it to Alliance, Nebraska, to sell.
This case was investigated by the Nebraska State Patrol, the Box Butte County Sheriff’s Office, and the Federal Bureau of Investigation.
Nigerian Man Sentenced to Five Years in Prison for Multimillion Dollar Fraud Scheme in Which He Impersonated Procurement Officials of U.S. State and Local Governments and Educational InstitutionsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that FATADE IDOWU OLAMILEKAN, a/k/a “Fatade Olamilekan Idowu,” a/k/a “Olamilekan Idowu Fatade,” a/k/a “Idowu Fatade,” a citizen of Nigeria, was sentenced to five years in prison in connection with a scheme to fraudulently obtain and attempt to obtain millions of dollars of medical equipment, laboratory products, computer equipment and hardware, and other merchandise from suppliers of such merchandise across the United States by impersonating, among other individuals, procurement officials of U.S. state and local governments and educational institutions. OLAMILEKAN was arrested in Nigeria on October 1, 2021, and extradited from Nigeria to the United States on July 14, 2022, and he has been detained since his arrest. The defendant previously pled guilty to wire fraud before U.S. District Judge Valerie E. Caproni, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Fatade Idowu Olamilekan carried out a sprawling criminal scheme from Nigeria to fraudulently obtain medical equipment and other merchandise by impersonating government officials, including the Chief Procurement Officer for New York. Olamilekan will now face substantial prison time for his criminal conduct. This case demonstrates that we will go to great lengths to pursue defendants located abroad who seek to defraud American businesses and individuals.”
According to the allegations in the Indictment and other court documents:
From at least in or about 2018 through at least on or about September 14, 2020, OLAMILEKAN engaged in a scheme to fraudulently obtain and attempt to obtain millions of dollars of medical equipment, laboratory products, computer equipment and hardware, and other merchandise from suppliers of such merchandise across the United States by impersonating, among other individuals, procurement officials of U.S. state and local governments and educational institutions. In particular, during the COVID-19 pandemic, OLAMILEKAN impersonated the Chief Procurement Officer of New York State in an effort to fraudulently obtain medical equipment, including defibrillators. OLAMILEKAN engaged in the following conduct to carry out his criminal scheme:
First, OLAMILEKAN engaged in extensive research to identify specific procurement officials of U.S. state and local governments and educational institutions to impersonate and U.S. suppliers of medical, laboratory, and computer equipment to target as part of the scheme. This research included obtaining information about the current suppliers to the state and local governments and educational institutions OLAMILEKAN sought to impersonate and targeting those suppliers in order to avoid arousing suspicion. For example, OLAMILEKAN appears to have specifically targeted a medical supplier that was already providing medical equipment to New York State in or to avoid suspicion when OLAMILEKAN, who was impersonating the Chief Procurement Officer of New York State, contacted the supplier to obtain medical equipment.
Second, after OLAMILEKAN identified procurement officials to impersonate, he used aliases and a Lithuanian web hosting company to register email accounts with domains that had slight variations from the legitimate email accounts used by procurement officials in order to “spoof” or impersonate those officials’ email accounts (the “spoofed emailed accounts”). The spoofed email accounts used by OLAMILEKAN usually had the same username as the procurement official’s email account but added an extra letter or common domain name to the domain of the email account. These spoofed email accounts were therefore specifically designed to trick suppliers to impersonated procurement officials into thinking the spoofed email accounts were authentic. In total, OLAMILEKAN registered and used spoofed email accounts impersonating at least (i) eight different procurement officials of state and local governments in California, Illinois, Minnesota, New York, North Carolina, Pennsylvania, Texas, and Vermont; and (ii) three procurement officials of educational institutions located in Georgia and New York.
Third, OLAMILEKAN used the spoofed email accounts to send emails impersonating the procurement official and seeking quotes for medical, laboratory, and computer equipment from targeted suppliers. These emails typically indicated that the payment terms would be “net 30 days,” which is a standard term of trade credit for government and educational entities that only requires payment for the goods within 30 days of delivery. OLAMILEKAN therefore impersonated the identities of procurement officials of government entities and educational institutions in order to exploit this industry standard and fraudulently obtain equipment without providing any advance payment information or deposit prior to delivery of the equipment.
Finally, once OLAMILEKAN received a response from a targeted supplier, he provided the supplier with a purchase order containing the forged signature of the impersonated procurement official and an address for a warehouse located in the United States for delivery and storage of the equipment purchased. Once the purchased items shipped to the warehouse provided by OLAMILEKAN, he typically had the warehouse re-ship the items to another warehouse and, ultimately, from the United States to locations in Australia, the United Kingdom, and/or Nigeria. OLAMILEKAN also coordinated with the warehouses receiving the shipments from the targeted suppliers using the stolen identity of at least one U.S. resident, thereby further concealing his own identity and avoiding detection of his criminal activity. Because payment was not due to the suppliers until 30 days after delivery of the equipment, OLAMILEKAN was able to take possession of the equipment prior to detection of the fraud, which typically occurred after payment was not received by the supplier within the 30-day period.
* * *
In addition to the prison sentence, OLAMILEKAN, 41, of Lagos, Nigeria, was sentenced to three years of supervised release and ordered to pay restitution and forfeiture of $306,852.18.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked Nigeria’s Federal Ministry of Justice, Nigeria’s Economic and Financial Crimes Commission (“EFCC”), the Central Authority Unit of Nigeria’s Ministry of Justice, and the Attorney General of the Federal Republic of Nigeria for their assistance in the investigation. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Nigeria.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Sagar K. Ravi is in charge of the prosecution.
New York Man Is Charged with Cyberstalking, Kidnapping, and Related OffensesRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte returned a criminal indictment charging Russell J. Martini, 45, of Bay Shore, New York, with cyberstalking, stalking, kidnapping, and making interstate threats, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department join U.S. Attorney King in making today’s announcement.
According to allegations in the indictment, from April to May 2022, Martini sent repeated harassing and threatening communications to an individual identified in court documents as “Jane Doe.” The indictment alleges that Jane Doe knew Martini and had obtained a protection order in New York that prohibited the defendant from contacting her. In April 2022, Jane Doe moved from New York to Charlotte. Soon thereafter, Martini allegedly began a cyberstalking campaign against Jane Doe, and used texts, emails and social media platforms to send Jane Doe and members of her family harassing messages and threats of death and bodily injury. Martini also allegedly created a public social media account in Jane Doe’s name and used a compromising photo of the victim as a profile picture. The indictment further alleges that Martini threatened to publish sexual photos and videos of Jane Doe online and on popular social media websites if Jane Doe did not respond to Martini’s communications.
According to the indictment, in May 2022, Martini traveled to Charlotte and attempted to kidnap Jane Doe. The indictment alleges that Martini waited at Jane Doe’s apartment complex and attacked her as she walked up the stairs to her apartment. Martini allegedly attempted to drag the victim to his car but a bystander intervened and Martini fled. After the attack, Martini allegedly sent Jane Doe an email asking her if she was “ready for round two” and threatened to kill her.
Martini is currently in state custody and will be scheduled to appear in federal court. He faces a maximum penalty of up to life in prison for the kidnapping charge, and a maximum prison term of five years for each offense of cyberstalking, stalking, and communicating interstate threats.
The charges against Martini are allegations. The defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement, U.S. Attorney King thanked the FBI and CMPD for their investigation of this case.
Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
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New Orleans Resident Pleads Guilty to Drug ConspiracyRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that TONI JONES, age 33, of New Orleans, Louisiana, pleaded guilty on February 16, 2023 to a violation of the Federal Drug Control Act, Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
JONES’s federal conviction is for possession with the intent to distribute fentanyl, cocaine base, and methamphetamine. The offense occurred on February 10, 2022 at the intersection of North Claiborne Avenue and Tupelo Street in New Orleans, Louisiana. She faces a maximum of twenty (20) years imprisonment, a fine of up to $1,000,000.00, at least three (3) years of supervised release, and a mandatory $100.00 special assessment fee.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Charles Dustin Strauss of the Violent Crimes Unit.
Navajo man pleads guilty to sexual abuse of a minorRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Christian Apachito pleaded guilty to sexual abuse of a minor on Feb. 15, 2023. Apachito, 28, of Tohajiilee, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not yet been scheduled.
In his plea agreement, Apachito admitted that on or about November 11, 2020, he engaged in a sexual act with the victim, identified as Jane Doe. The victim is also a member of the Navajo Nation and was at least the age of 12 years but not yet 16 years old at the time. The abuse took place on the Navajo Nation.
By the terms of the plea agreement, Apachito faces not more than 15 years in prison and must register as a sex offender.
This case was investigated by the FBI Albuquerque Field Office with assistance from the Navajo Department of Criminal Investigation. Assistant United States Attorneys Kimberly N. Bell and Mark Pfizenmayer are prosecuting the case.
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Mother-Daughter Fraudsters Sentenced for Social Security and Bankruptcy ScamsRead the Press Release
LYNCHBURG, Va. – A Hurt, Virginia woman, who stole more than $170,000 in Social Security Administration retirement funds to which she was not entitled, was sentenced in federal court just three months after her mother was sentenced on related charges.
In November 2022, Christy Bowling, 38, pled guilty to concealment of bankruptcy assets and theft of government money. Last week, she was sentenced to two months in federal prison and one year of home detention.
Bowling’s mother, Judith Cash, 58, of Shipman, Virginia, pleaded guilty in May 2022 to one count of theft of public money and was sentenced to one year of home detention.
According to court documents, in August 2020, Betty Gowen, who had been incarcerated since 2011 for the murder of her husband, contacted the Social Security Administration (SSA) to apply for Title II Retirement Insurance Benefits upon her release from prison.
When SSA officials received Gowen’s application, it was revealed that her daughter, Judith Cash, and granddaughter, Christy Bowling, had already applied for and had been receiving Gowen’s SSA Retirement Benefits since 2010. Cash and Bowling had been using the funds through a shared bankcard.
SSA determined that Cash and Bowling stole $172,952 and the court has ordered them to pay this amount back in restitution.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Gail S. Ennis, Inspector General for the Social Security Administration, made the announcement.
The Social Security Administration investigated the case.
Assistant U.S. Attorney Charlene R. Day prosecuted the case.
Milton Man Pleads Guilty to Federal Child Sex Crimes Committed in FijiRead the Press Release
PENSACOLA, FLORIDA – Jason R. Moore, 42, of Milton, Florida, has pled guilty to two counts of “Illicit Sexual Conduct in Foreign Places.” Jason R. Coody, United States Attorney for the Northern District of Florida, announced the plea today after Moore admitted his criminal activity in federal court in Pensacola.
The federal indictment alleged that Moore engaged in “Illicit Sexual Conduct in Foreign Places” from March 2013 through February 2016. Specifically, Moore engaged in these crimes in the Republic of Fiji. Moore was arrested by Special Agents from the Department of Homeland Security and the Florida Department of Law Enforcement in Santa Rosa County in late 2022.
Moore remains in the custody of the United States Marshals Service. Sentencing is scheduled for May 22, 2023, at 11:00 a.m., before United States District Judge M. Casey Rodgers. Moore faces up to 60 years in federal prison, followed by a term of up to a lifetime of supervised release following any imprisonment. Moore will also have to register as a sexual offender.
The case was investigated by the Department of Homeland Security, the Florida Department of Law Enforcement, and the New York State Police.
The case is being prosecuted by Assistant United States Attorney David L. Goldberg and Trial Attorney Adam Braskich of the Department of Justice’s Child Exploitation and Obscenity Section.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the Department of Justice and led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), it marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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 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.
Michigan Doctor Sentenced to Prison for Tax EvasionRead the Press Release
A Michigan endocrinologist was sentenced yesterday to eight months in prison for evading taxes due on income related to his medical practice.
According to court documents and statements made in court, Dr. Bashar Kiami of Roscommon owned and operated Northern Michigan Endocrine PLLC, a solo endocrinology practice in Grayling. From 2014 through 2017, Kiami filed corporate returns that underreported the practice’s gross receipts and overstated its expenses. As the sole shareholder, Kiami reported business income from the practice on his individual income tax returns. By underreporting the practice’s business income, Kiami fraudulently reduced his personal tax liability for those same years. In total, Kiami caused a tax loss to the IRS of approximately $250,000.
In addition to the term of imprisonment, U.S. District Judge Thomas L. Ludington ordered Kiami to serve two years of supervised release, pay a $15,000 fine and pay the remaining $59,642 he owed in restitution to the U.S.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Jeffrey A. McLellan and Melissa S. Siskind of the Justice Department’s Tax Division prosecuted the case.
Medical Center pays over $21M to settle alleged false claimsRead the Press Release
HOUSTON – Cornerstone Healthcare Group Holding Inc. and CHG Hospital Medical Center LLC. dba Cornerstone Hospital Medical Center have agreed to pay the United States $21,637,512 to resolve claims that the company improperly billed Medicare, announced U.S. Attorney Alamdar S. Hamdani.
Some of the alleged claims were submitted for unauthorized services, services not provided and services which were deemed so inadequate they were considered worthless.
“Taking advantage of the elderly and infirm is disgraceful,” said Hamdani. “When providers accept federal funds for reimbursement, they have a duty and responsibility to provide the necessary and best care possible to the patient. As one of the largest of its kind in our district, this settlement shows our commitment to protecting our most vulnerable citizens and the integrity of the Medicare system.”
Cornerstone Medical Center was formerly a long-term acute care facility located in Houston that operated as a long-term care hospital. Cornerstone was in the business of providing extended medical and rehabilitative care to individuals who qualified as clinically complex and possessed multiple acute and/or chronic conditions. Through its subsidiaries, CHG Holding operated specialty hospitals throughout the United States, including Cornerstone Medical Center which is no longer in business.
The investigation began when a qui tam aka whistleblower lawsuit was filed under seal Sept. 28, 2018. The individual filing the suit worked at Cornerstone Medical Center long term care facility. During the relator’s employment, they witnessed, among other things, unlicensed, unauthorized students of Drs. Jorge Guerrero, Joel Joselevitz and Joseph Varon rendering medical procedures. These unauthorized and improper services were fraudulently billed to Medicare.
In addition, Cornerstone Medical Center submitted claims for payment for services certain treating physicians allegedly rendered. However, records showed those physicians were actually out of the country and could not have performed the services.
Finally, the investigation concluded that from Jan. 1, 2012, through Dec. 31, 2018, Cornerstone Medical Center billed for services not supported by the patients’ diagnosis or medical records, and billed for services that were either not rendered or were so inadequate they were worthless (in some cases, resulting in harm to patients.) The claims for payment to Medicare for those services were deemed to be fraudulent and submitted in violation of federal law.
“Submitting improper claims to Medicare compromises the financial security of the program and wastes valuable taxpayer dollars,” said Acting Special Agent in Charge Korby R. Harshaw of Department of Health and Human Services - Office of Inspector General (DHHS-OIG). “We will continue to work alongside our law enforcement partners to protect the integrity of federal health care programs and to hold bad actors who exploit them accountable.”
“This $21.6 million settlement by Cornerstone Healthcare Group Holding is one of the largest civil healthcare fraud settlements FBI Houston has seen, and we work a lot of healthcare fraud cases. I hope this case sends a message to other healthcare providers who think they can get away with similar fraud,” said FBI Special Agent in Charge James Smith. “Not only did Cornerstone Healthcare bilk the Medicare program out of millions of dollars, it also took advantage of its patients who were unknowingly used for its scam. These patients trusted their doctors and healthcare providers and ultimately received little to no care. At the end of the day, health care fraud affects everyone. It raises our health insurance premiums and exposes patients to worthless and unnecessary medical procedures. I’m proud of the work our FBI Houston Healthcare Fraud Task Force has done.”
Under the False Claims Act, a private party known as a relator can file an action on behalf of the United States and receive a portion of the recovery. In this case, the relator will receive $4,327,502.
The U.S. Attorney’s Office, DHHS-OIG, FBI and Department of Defense conducted the investigation.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Man charged with domestic assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Steven Williams was charged by complaint with assault with a deadly weapon and assault by strangulation. Williams, 28, of the Caddo Nation of Oklahoma, appeared in federal court today for a detention hearing and will remain in custody pending trial, which has not yet been scheduled.
According to the criminal complaint, over the course of three days in February, Williams allegedly beat his pregnant girlfriend, identified in court records as Jane Doe, so badly she needed immediate medical care at San Juan Regional Medical Center. Jane Doe’s injuries included a broken hand, severe bruising, and knife wounds to her neck, arms, and hands.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Williams faces up to twenty years in prison.
The FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police Department. Special Assistant United States Attorney Mark A. Probasco is prosecuting the case.
Anyone experiencing domestic violence or who knows someone experiencing domestic violence can reach an advocate at the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY). In New Mexico, the Domestic Violence Resource Center is available by telephone at (505) 843-9123 or online at https://dvrcnm.org/
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Man Sentenced to 10 Years in Federal Prison for Fentanyl and Firearm OffensesRead the Press Release
GREENSBORO, N.C. - On February 22, 2023, a judge in federal district court sentenced CLYDE TURAINE BRAND to 120 months in prison, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina.
On September 20, 2022, following a five-day trial, a jury found BRAND, age 38, guilty of three counts: felon in possession of a firearm, possession of a stolen firearm, and possession with intent to distribute fentanyl.
Evidence at trial showed that on June 30, 2021, BRAND possessed with intent to distribute 2.55 grams of fentanyl, a rifle, and two stolen Smith & Wesson handguns at a residence in Concord, North Carolina, following the execution of a search warrant. BRAND was present at the residence at the time the warrant was executed. The fentanyl was recovered from a toilet. The rifle was found in the closet of an empty bedroom. The stolen handguns were found in a vehicle behind the residence.
United States District Chief Judge Thomas D. Schroeder sentenced BRAND to a 120-month term of imprisonment and a 3-year term of federal supervised release.
The case was investigated by Bureau of Alcohol Tobacco Firearms and Explosives (ATF), Cabarrus County Sheriff's Office, and the Department of Homeland Security. The case was prosecuted by Assistant United States Attorney Craig M. Principe and Special Assistant United States Attorney Mary Ann Courtney.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Man Pleads Guilty for Sexually Assaulting a 14-Year-Old and Strangling a Dating PartnerRead the Press Release
A man who sexually abused a 14-year-old victim and later assaulted his then-girlfriend has pleaded guilty in federal court, announced U.S. Attorney Clint Johnson.
Andrew Don Rector, 32, of Kiefer, pleaded guilty to sexual abuse of a minor in Indian Country and assault of an intimate/dating partner by strangling and attempting to strangle in Indian Country.
In his plea agreement, Rector admitted that on Aug. 15, 2020, to Aug. 16, 2020, he sexually abused a 14-year-old victim while she was at his home. Officers dispatched to locate the teenager, who was reported as a runaway, discovered the victim in the defendant’s home. Law enforcement were able to prove the sexual assault after interviewing the victim and analyzing DNA evidence.
Rector further admitted that from May 3, 2022, to May 4, 2022, he strangled his dating partner. During the domestic violence assault, he strangled the victim multiple times and also threatened to kill the victim and her family.
The FBI and Muscogee Nation Lighthorse Tribal Police Department conducted the investigation. Assistant U.S. Attorneys Julie Childress and Cymetra Williams are prosecuting the case.
Man Extradited from Peru on International Money Laundering ChargesRead the Press Release
ALEXANDRIA, Va. – A Belize City, Belize, man was extradited to the United States Tuesday on charges of laundering tens of millions of dollars of drug proceeds on behalf of notorious international drug trafficking organizations.
According to court documents, Jianxing Chen, 42, led and controlled a network of couriers who transported cash generated by the domestic sale of controlled substances. Some of the cash came from cocaine sales throughout the United States – including Chicago, Houston, Los Angeles, New York, Atlanta, as well as in the Eastern District of Virginia. At Chen’s direction, couriers transported drug money across the country to locations in New York City. From there it was laundered through a variety of methods until it, or its equivalent value, was remitted to drug trafficking organizations in Latin America, including Mexico. Chen received “contracts” to transport and launder this money through Xizhi Li, who was also prosecuted and convicted based on the same superseding indictment.
Below is a table of defendants also named in the superseding indictment along with their sentences:
Name
Charges
Conviction/Sentence
Xizhi Li
Counts 1-3 (drug trafficking and money laundering
Money laundering, 180 months
Jiayu Chen
Counts 1-3 (drug trafficking and money laundering
Money laundering, 60 months
Eric Yong Woo
Count 3 (money laundering)
Money laundering, 18 months
Jingyuan Li
Counts 1-3 (drug trafficking and money laundering)
Money laundering, 84 months
Tao Liu
Counts 1-14 (drug trafficking, money laundering, attempted identity fraud, bribery
Money laundering, bribery, 84 months
Chen was arrested in Lima, Peru, on June 14, 2021, based on the superseding indictment and held in that country until his extradition was approved and executed on February 21, 2023.
Chen is charged with conspiracy to distribute five kilograms or more of cocaine, conspiracy to distribute five kilograms or more of cocaine, knowing and intending and having reasonable cause to believe it will be unlawfully imported into the United States, and conspiracy to commit money laundering. If convicted, Chen faces a mandatory minimum of 10 years in prison and up to life imprisonment. 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; Wendy C. Woolcock, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Special Operations Division; J. Todd Scott, Special Agent in Charge for the DEA-Louisville; Frank. A. Tarentino III , Special Agent in Charge for the DEA-New York; Jessica Moore, Chief of the Criminal Investigations Division of the U.S. Department of State’s Diplomatic Security Service (DSS); and James M. Gibbons, Special Agent in Charge of U.S. Homeland Security Investigations (HSI), made the announcement.
Assistant U.S. Attorneys David A. Peters and Michael P. Ben’Ary, along with Trial Attorneys Mary Daly, and Stephen A. Sola of the Justice Department’s Money Laundering and Asset Recovery Section, are prosecuting the case.
Significant assistance was provided by law enforcement partners in Australia, Guatemala, Mexico, and New Zealand.
The case was investigated as part of two Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Dark Castle and Operation Taishan Triangle. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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. 1:19-cr-334.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Man Convicted of Distributing Methamphetamine Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Ronnie K. Hongo, Jr., 43, of Many, Louisiana, has been sentenced by United States District Judge S. Maurice Hicks, Jr. to 180 months in prison, followed by 5 years of supervised release, on drug and firearms charges.
According to evidence presented to the court, on or about March 19, 2021, the Sabine Parish Sheriff’s Office executed a search warrant at a residence in Many, Louisiana where Hongo lived. Law enforcement agents with the Federal Bureau of Investigation (FBI) and Sabine Parish Sheriff’s Office had information that Hongo had been selling methamphetamine to others. During the execution of the search warrant, deputies discovered 369 grams of methamphetamine and a .45 caliber pistol inside the home. Hongo was present at the home at the time of the search, and he was subsequently arrested. Following his arrest, Hongo confessed to possession of the narcotics and firearm. Additional investigation by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) revealed that the firearm had traveled in interstate commerce and functioned as designed. Hongo pleaded guilty on October 5, 2022 to one count of possession with intent to distribute methamphetamine and one count of carrying and using a firearm during a drug trafficking crime.
The case was investigated by the FBI, ATF, and Sabine Parish Sheriff’s Office and prosecuted by Assistant U.S. Attorney Leon H. Whitten.
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