Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
4 April 2023
Three Indicted for Forced Labor and One Charged with Labor Trafficking at Woburn RestaurantsRead the Press Release
BOSTON – A father and son who own two Woburn restaurants, Taste of Brazil—Tudo Na Brasa and The Dog House Bar and Grill, along with their relative who lives in Brazil, have been charged with conspiring to obtain labor and services from migrants whom they smuggled into the United States from Brazil through threats of serious harm.
Jesse James Moraes, 65, and Hugo Giovanni Moraes, 43, both of Woburn; and Chelbe Willams Moraes, 62—the brother of Jesse Moraes and uncle of Hugo Moraes—of Minas Gerais, Brazil were charged in a superseding indictment with forced labor conspiracy; Jesse Moraes and Hugo Moraes were charged with forced labor and attempted forced labor; and Jesse Moraes was charged with labor trafficking and attempted labor trafficking and money laundering conspiracy.
Jesse Moraes, Hugo Moraes and Chelbe Moraes were previously charged with encouraging and inducing, and conspiring to encourage and induce, an alien to come to, enter and reside in the United States for the purpose of commercial advantage or private financial gain, knowing and in reckless disregard of the fact that such coming to, entry, and residence is or will be in violation of law. Chelbe Moraes also faces additional charges of money laundering conspiracy and money laundering with intent to promote the smuggling operation and conceal the source of smuggling proceeds.
“This case is another stark example of the human trafficking that’s happening every single day in our country and our Commonwealth and the heinous lengths some employers go to in the pursuit of profit,” said United States Attorney Rachael S. Rollins. “It is alleged that these defendants conspired to take advantage of the American dream. Individuals seeking to come to the United States for a better life to benefit themselves and their families were allegedly taken advantage of and deceived. We allege that these defendants endangered the victims they smuggled and compelled them to work through threats of violence and other serious harm. Additionally, Chelbe Moraes allegedly provided false documents to help migrants enter the United States and claim asylum. This hurts the overwhelming majority of people who abide by our immigration laws, especially those seeking refuge out of fear of persecution in their home country. The victims in this case are real people with families who have taken on immeasurable risk to come to the United States, only to be met with threats of violence and oppression. Such conduct will not be tolerated in our Commonwealth.”
“Labor traffickers treat humans like commodities, profiting from the mistreatment of their workforce and using force, fraud, or coercion to push people to work and make it difficult or impossible to leave. Today’s superseding indictment alleges that Moraes and his conspirators smuggled individuals into the United States, charging them tens of thousands of dollars only to withhold wages to ostensibly pay back their smuggling debt,” said Michael J. Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England. “Homeland Security Investigations is proud to work every day with our partners to investigate and seek justice for survivors of human trafficking.”
“An important part of the mission of the U.S. Department of Labor, Office of Inspector General is to investigate allegations of labor trafficking involving the use of coercion or force. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Jonathan Mellone, Special Agent in Charge of the Department of Labor, Office of Inspector General.
According to the charging documents, Chelbe Moraes and his co-conspirators targeted and smuggled migrants from Brazil into the United States for a fee of approximately $18,000 – 22,000. Once the migrants were in the United States, Jesse Moraes and Hugo Moraes allegedly targeted and recruited migrants to work in their restaurants in Woburn by promising them good jobs and a better life than they had in Brazil and arranging for the victims to rent or share the rental of one or more apartments owned or controlled by the defendants. It is alleged that Jesse Moraes and Hugo Moraes withheld wages from the victims in order to pay off their smuggling debts and forced the victims to work long hours, often performing difficult manual labor, while subjecting the victims to threats of serious harm – including financial harm, violence and deportation to prevent them from quitting and demanding better pay and working conditions. It is further alleged that Chelbe Moraes, Jesse Moraes and Hugo Moraes gave or offered to give fake documentation to the victims in order to support asylum claims or false claims of work authorization.
Members of the public who believe they may be victims of the alleged crimes, or have information or questions about this case, are encouraged to call 888-221-6023, Option 5 or send an email with contact information to [email protected].The charges of forced labor, attempted forced labor, and forced labor conspiracy provide for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. The charge of labor trafficking and attempted labor trafficking provides for a sentence of up to 20 years in prison, up to five years of supervised release and a fine of up to $250,000. The charge of encouraging and inducing, and conspiring to encourage and induce, an alien to come to, enter, and reside in the United States for financial gain, knowing and in reckless disregard of the fact that such coming to, entry, and residence is or will be in violation of law provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charges of money laundering and money laundering conspiracy provide for a sentence of up to 20 years in prison, three years of supervised release, and a fine of $500,000 or twice the amount involved in the transaction, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins; HSI Acting SAC Krol; DOL-OIG SAC Mellone; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Woburn Police Chief Robert F. Rufo, Jr., made the announcement today. Valuable assistance in the investigation was provided by the Norwood Police Department. Assistant U.S. Attorneys James D. Herbert, Kelly Lawrence and Samuel R. Feldman of Rollins’ Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Thirteen Sentenced to Federal Prison for Methamphetamine Trafficking and Related Firearms CrimesRead the Press Release
FLORENCE, SOUTH CAROLINA — Eleven men and two women from across the Pee Dee were sentenced to multi-year terms in federal prison after pleading guilty to their roles in a methamphetamine conspiracy out of the Chesterfield and Darlington County areas.
- Clifford Ray Gardner, 67, of McBee, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute methamphetamine, distribution of methamphetamine, and being a felon in possession of a firearm and ammunition;
- Zachary Miles Gardner, 29, of Hartsville, was sentenced to 57 months in prison after pleading guilty to aiding and abetting distribution of methamphetamine;
- Marion Wendell Brown, Jr., 37, of Hartsville, was sentenced to 14 years in prison after pleading guilty to possessing a firearm in furtherance of drug trafficking;
- Harvey Lee Dixon, 37, of Hartsville, was sentenced to 74 months in prison after pleading guilty to conspiracy to distribute methamphetamine;
- Jeffrey Scott Lloyd, 32, of Hartsville, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute methamphetamine;
- Craig Leon Warr, 50, of Hartsville, was sentenced to 5 years in prison after pleading guilty to conspiracy to distribute methamphetamine;
- Ricky Jerry Wallace, 30, 0f Patrick, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute methamphetamine;
- Charles Barney Lloyd, 50, of Hartsville, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute methamphetamine;
- Justin Lee Kelly, 40, of Hartsville, was sentenced to 80 months in prison after pleading guilty to conspiracy to distribute methamphetamine;
- Jonathan Nowell Dixon, 41, of Hartsville, was sentenced to 66 months in prison after pleading guilty to conspiracy to distribute methamphetamine;
- Ashley Jordan Griffits, 33, of Hartsville, was sentenced to 92 months in prison after pleading guilty to conspiracy to distribute methamphetamine;
- Thomas George Hall, II, 42, of Hartsville, was sentenced to 10 years in prison after pleading guilty to conspiracy to distribute methamphetamine; and
- Lacey Elizabeth Watford, 22, of Hartsville, was sentenced to 5 years in prison after pleading guilty to conspiracy to distribute methamphetamine.
Wallace and Warr’s terms of imprisonment will be followed by a ten-year term of court-ordered supervision. The remaining defendants will have a five-year term of court-ordered supervision to follow imprisonment. There is no parole in the federal system.
“Our office is dedicated to protecting the people of South Carolina from the dangers of drug trafficking and related gun crimes,” said U.S. Attorney Adair F. Boroughs. “I want to thank our law enforcement partners who worked together to dismantle this methamphetamine trafficking ring and hold accountable those who were pedaling this dangerous drug into our neighborhoods.”
“The same individuals responsible for bringing deadly narcotics into our communities are often responsible for much of the violent gun crime we face,” said Bennie Mims, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Charlotte Field Division. “Bringing these individuals to justice and dismantling drug trafficking networks has a major impact on stopping gun violence and making communities safer.”
“We are thankful for the diligent work and collaboration of the many departments that brought an end to the organization that was bringing these dangerous drugs into our community,” said Public Information Officer for the City of Hartsville Michelle Byers Brown. “The City of Hartsville continues to stay vigilant and dedicated to working with all agencies to assure that individuals who desire to harm our city and surrounding communities are brought to justice.”
Evidence presented to the Court showed that Clifford Ray Gardner was the head of a multi-year methamphetamine trafficking conspiracy based out of Chesterfield and Darlington Counties. During the course of that conspiracy, Gardner was accountable for trafficking more than 9 kilograms of methamphetamine.
Evidence showed Harvey Lee Dixon, Jeffrey Scott Lloyd, Craig Leon Warr, Ricky Jerry Wallace, Charles Barney Lloyd, Justin Lee Kelly, Jonathan Nowell Dixon, Ashley Jordan Griffits, Thomas George Hall, II, and Lacey Elizabeth Watford were distributors within the conspiracy. Each was accountable for trafficking half a kilogram or more of methamphetamine during the course of the conspiracy.
In May 2019, law enforcement executed a search warrant at Marion Wendell Brown Jr.’s residence in Hartsville, from which he sold drugs. Officers found two rifles and a 12-gauge shotgun, approximately $1,000 in cash, 16 grams of methamphetamine, and a quantity of heroin. A subsequent search of the same location revealed additional drugs and a stolen law enforcement firearm.
In May 2021, law enforcement conducted a controlled buy of approximately 55 grams of methamphetamine from Clifford Ray Gardner at a residence in McBee. Zachary Miles Gardner was the middleman on the deal.
In June 2021, law enforcement executed a search warrant at the same McBee residence where the controlled buy occurred. Officers found three firearms. Federal law prohibits Clifford Ray Gardner from possessing firearms because of a prior felony conviction.
Chief United States District Judge R. Bryan Harwell sentenced all thirteen individuals.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by Hartsville Police Department, Chesterfield County Sheriff’s Office, Darlington County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA). Assistant U.S. Attorney Katherine Flynn prosecuted the case.
###
Texas Man Pleads Guilty to Columbia Pharmacy BurglaryRead the Press Release
JEFFERSON CITY, Mo. – A Houston, Texas, man pleaded guilty in federal court today to stealing nearly $7,000 in prescription drugs from a Columbia, Mo., pharmacy.
Reginald Tremayne Jackson, 32, pleaded guilty before U.S. Magistrate Judge Willie J. Epps Jr. to one count of the burglary of a business registered with the Drug Enforcement Administration.
By pleading guilty today, Jackson admitted that he broke into the drive through window at Kilgore’s Medical Pharmacy, 1608 Chapel Hill Road, at approximately 2:26 a.m. on June 4, 2022. Once inside the pharmacy, Jackson used a pry tool to force open a locked cabinet that contained prescription medications. Jackson put the prescription bottles in a green-and-white-striped bag, left the pharmacy through the drive-through window, and got into the rear passenger’s seat of a silver Chevrolet Malibu driven by a co-defendant. The vehicle drove away at approximately 2:31 a.m.
Columbia police officers were able to track the Malibu using a GPS tracking device that had been taken during the pharmacy burglary. Officers located the vehicle at the Ramada Inn, 901 Conley Road in Columbia, and conducted a traffic stop. Jackson was in the rear passenger seat of the Malibu; he and the driver were arrested.
Security video footage from Ramada Inn and the GPS tracking device indicated the vehicle had stopped near the Ramada Inn sign for approximately two minutes prior to the traffic stop. Officers walked the tree line area, where they saw footprints in the heavy dew in the grass, and found the green-and-white-striped bag approximately 15 feet from the edge of the tree line. The bag contained stolen prescription bottles of hydromorphone, methylphenidate, morphine, oxycodone, and oxycontin. Kilgore’s provided a calculated list of the drugs and quantities stolen for a drug loss value of approximately $6,981.
Under federal statutes, Jackson is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger. It was investigated by the Columbia, Mo., Police Department, the Boone County, Mo., Sheriff’s Department and the FBI.
Texas Laboratory Agrees to Pay $5.9 Million to Settle Allegations of Kickbacks to Third Party Marketers and Unnecessary Drug TestsRead the Press Release
Genotox Laboratories Ltd., of Austin, Texas, has agreed to pay at least $5.9 million to resolve False Claims Act allegations that it paid volume-based commissions to third party marketers in violation of the Anti-Kickback Statute and submitted claims to federal health care programs for unnecessary drug tests. In parallel proceedings, the U.S. Attorney’s Office for the Western District of Texas and Genotox entered into an eighteen-month Deferred Prosecution Agreement to resolve a criminal investigation regarding the same conduct.
“Laboratories are prohibited from paying kickbacks to third parties to arrange for laboratory orders,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will hold accountable companies that violate the rules intended to protect the integrity and resources of federal health care programs.”
The settlement announced today resolves allegations that, from 2014 to 2020, Genotox paid kickbacks to independent contractor sales representatives and marketing firms to arrange for or recommend the ordering of Genotox’s laboratory testing, in violation of the Anti-Kickback Statute. As part of the settlement, Genotox admitted and accepted responsibility for paying independent contractor marketers, whom Genotox referred to as “1099” representatives, a percentage of the revenue Genotox received from billing Medicare, the Railroad Retirement Board (RRB), and TRICARE for laboratory testing orders facilitated or arranged for by the 1099 representatives.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare and other federally funded health care programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.
In addition, the settlement resolves allegations that, from 2014 to 2022, Genotox submitted claims to Medicare, RRB, and TRICARE for laboratory tests that were not covered and/or not reasonable and necessary, including blanket orders and routine standing orders of drug testing for all patients in a provider’s practice. As part of the settlement, Genotox admitted and accepted responsibility for offering health care providers order forms known as “custom profiles” for each provider to pre-select the tests to order, which Genotox then performed and billed, for all or nearly all of the provider’s patients, generally at the highest reimbursement categories, such as definitive drug testing for 22 or more drug classes.
Under the settlement with the United States, Genotox has agreed to pay $5.9 million, plus additional amounts if certain financial contingencies occur. The settlement amount was based on the company’s ability to pay.
In connection with the settlement, Genotox entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Genotox maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicare and Medicaid claims at Genotox.
“Kickbacks harm the integrity of federal programs and unnecessarily increase costs to taxpayers,” said U.S. Attorney Jill E. Steinberg for the Southern District of Georgia. “Patients should know that decisions concerning their health are based on their needs, not the profit margins of providers.”
“The Deferred Prosecution Agreement ensures that Genotox will live up to its compliance obligations,” said U.S. Attorney Jaime Esparza for the Western District of Texas. “My office is committed to the effort to root out fraud and abuse in the health care system.”
“Health care companies that engage in kickback schemes can undermine the public’s trust in medical institutions and the financial integrity of the programs billed,” said Special Agent in Charge Tamala E. Miles of HHS-OIG. “Working with our law enforcement partners, our agency will continue to investigate such allegations in order to detect and deter illicit activity targeting federal health care programs.”
“The Department of Defense (DOD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) is committed to rooting out fraud schemes that not only waste valuable taxpayer resources, but also impact mission readiness,” said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. “DCIS, along with our law enforcement partners, will aggressively pursue and hold those accountable who undermine the integrity of DOD’s taxpayer funded health care program, known as TRICARE, which is intended for our service members, retirees, and their families.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Alex DiGiacomo, Genotox’s former billing manager. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. DiGiacomo v. Genotox Laboratories, Ltd., et al., No. 2:20-cv-97 (S.D. Ga.). As part of the settlement, DiGiacomo will receive approximately $1 million.
The civil resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Southern District of Georgia, with assistance from HHS-OIG and DCIS.
The matter was handled by Fraud Section attorneys Douglas Rosenthal and Christopher Terranova and Assistant U.S. Attorney Bradford C. Patrick for the Southern District of Georgia. Assistant U.S. Attorneys G. Karthik Srinivasan and Alan Buie handled the criminal matter in the Western District of Texas.
The government’s pursuit of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).
Except to the extent of the facts admitted by Genotox, the claims resolved by the settlement are allegations only and there has been no determination of liability.
Tax preparer found to have illegally prepared false tax returnsRead the Press Release
HOUSTON – A local woman has been convicted of seven counts of aiding and assisting in preparing false tax returns, announced U.S. Attorney Alamdar S. Hamdani.
A federal jury sitting in Houston returned a guilty verdict April 3 against Cheryl Christin Kissentaner following a four-day trial.
At trial, the jury heard from federal agents as well as five of Kissentaner’s clients.
Testimony and evidence revealed individuals paid Kissentaner to prepare tax returns from 2016 through 2019 through her company First Financial Tax Services. However, she was not legally allowed to do so. The jury heard that a paid tax preparer is required to have paid all of his or her own tax returns, but Kissentaner had failed to pay her 2012-2017 tax returns until late 2019. This was after the tax returns she prepared and filed for a fee.
From 2016 through 2019, Kissentaner prepared at least nine tax returns in which she created fake businesses that allegedly operated at losses. They also claimed false fuel tax credits, state income tax deductions for Texas residents (who did not pay a state income tax), false medical expenses, false medical expenses, unemployed reimbursement expenses, false contributions to charity, other false expenses for businesses and failed to report IRA distributions.
Kissentaner also claimed that, pursuant to an engagement letter she prepared for her clients, she owed no duty to examine their returns for fake claims. However, Kissentaner filed numerous certificates under oath with the IRS in which she promised the government she would exercise due diligence in examining the tax returns she prepared and filed. She also charged tax preparer fees well in excess of other firms that provided the same services and asked potential clients to identify a reference and offered them a fee if they referred individuals themselves.
At trial, evidence showed that 98 percent of her clients obtained a refund even though several owed as much as $25,000 and did not pay any income taxes throughout the year. One such client had been obtaining a refund in excess of $8,000 each year. However, after Kissentaner became aware she was under investigation, that client was informed she owed over $10,000. When she inquired as to the change, Kissentaner untruthfully claimed that it was due to a change in the tax law and due to the client’s son now attending college on a full-time basis.
Further, a large percentage of Kissentaner’s clients claimed fuel tax credits despite the fact that only 0.2 percent of all tax payers would be eligible for that benefit.
U.S. District Judge David Hittner presided over the trial and set sentencing for June 29. At that time, Kissentaner faces up to three years imprisonment for each count of conviction.
She has been and will remain in custody pending that hearing.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Adam Laurence Goldman and Tyler White prosecuted the case.
Tax Preparer Admits Preparing at Least 23 Fraudulent ReturnsRead the Press Release
ST. LOUIS – A tax preparer from Jennings, Missouri on Tuesday admitted preparing at least 23 fraudulent tax returns that created losses of more than $500,000.
Darius D. Cobb, 51, pleaded guilty in front of U.S. District Judge Henry E. Autrey to two felony counts of aiding in the preparation of a false and fraudulent tax return.
Cobb admitted preparing at least 200 tax returns for the tax years 2017 and 2018. In at least 23 of the returns, Cobb included some false information: fake W-2 forms with false wages and withholdings, false Schedule C forms reporting profit or loss from a business, false claims for the American Opportunity Credit for educational expenses and false information about dependents.
In one example in the plea agreement, Cobb included a business loss of $14,024 for one taxpayer even though the taxpayer was not a business owner.
The total losses from Cobb’s crimes were approximately $517,021, the plea says.
Cobb is scheduled to be sentenced July 11. The crime carries a maximum penalty for each charge of 3 years in prison, a $250,000 fine, or both. Cobb has also agreed to pay restitution to the IRS.
The case was investigated by IRS - Criminal Investigations. Assistant U.S. Attorney Jennifer Roy is prosecuting the case.
Tax Evader Sentenced to PrisonRead the Press Release
PHOENIX, Ariz. – Ryan C. Patterson, 34, of Scottsdale, Arizona, was sentenced last week to 20 months in prison, followed by three years of supervised release. He also was ordered to pay $436,194 in restitution to the IRS. Patterson was convicted on September 23, 2022, by a federal jury of three counts of tax evasion, after a two-week trial.
Patterson, a contractor specializing in remodels, directed customers to make out checks to him personally and deposited the checks into his personal checking accounts. He failed to report $1.9 million in income and avoided nearly $550,000 in taxes. He also reported a loss of $38,000 in 2016, while at the same time purchasing a primary residence for $445,000 in cash and making other lavish expenditures.
“The conviction and sentencing of the defendant are the result of an effort by the Internal Revenue Service to vindicate the rights of honest American taxpayers by holding scofflaws to account,” said U.S. Attorney Gary Restaino. “Instead of following the law, Patterson blatantly ignored it, and selfishly lined his pockets with money to which he wasn’t entitled.”
This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Kevin M. Rapp and Aron Ketchel, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00724-PHX-JJT
RELEASE NUMBER: 2023-048_Patterson# # #
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.Tampa Area Man Sentenced to More Than 17 Years for Series of Convenience Store RobberiesRead the Press Release
Tampa, FL – U.S. District Judge Mary Scriven has sentenced Enrique Marquez (26, Tampa) to 17 years and 11 months in federal prison for four Hobbs Act robberies, conspiracy to commit those robberies, and two counts of brandishing a firearm during the commission of the robberies. Marquez had pleaded guilty on December 5, 2022.
According to court documents, on May 5, 2022, Marquez and his co-defendants robbed two convenience stores in the Tampa area. During the robberies, Marquez brandished a firearm. The next morning, Marquez and his co-defendants robbed two more Tampa area convenience stores in the same manner. In addition, on May 1, 2022, Marquez shot two individuals when he and one of his co-defendants attempted to rob an individual in an effort to obtain narcotics.
Marquez’s co-defendants, Christopher Alvarez and Dyonnie Alvarez, previously pleaded guilty to their roles in this case. Their sentencing hearings are scheduled for April 18, 2023.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff's Office. It was prosecuted by Assistant United States Attorney Samantha Newman. The forfeiture was handled by Assistant United States Attorney Suzanne Nebesky.
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.
Surprise Man Sentenced to Four Years in Prison for False Claims to the IRSRead the Press Release
PHOENIX, Ariz. –Anthony Henry Williams, 52, of Surprise, Arizona, was sentenced last week by United States District Judge Michael T. Liburdi to four years in prison. Williams was convicted on January 11, 2023, of 17 counts including conspiracy, false claims to the IRS, and transactional money laundering.
In 2018 and 2019, Williams submitted seven false tax returns to the Internal Revenue Service (IRS), claiming over $3 million in owed refunds. The IRS processed one of these returns that resulted in an unwarranted $600,000 refund to Williams. The IRS later advised him that the return was fraudulent, and that Williams needed to return the money. Williams failed to do so; instead, he purchased two luxury vehicles and a home, among other expenditures.
His co-defendant, Shakina Williams, pleaded guilty and was sentenced to time served followed by 12 months of supervised release for her role in the offense. Both defendants were ordered to pay almost $600,000 in restitution. They also were ordered to forfeit their interests in a Surprise home, an Audi A7, and a Porsche Panamera.
Internal Revenue Service Criminal Investigation conducted the investigation in this case. Assistant United States Attorneys Kevin M. Rapp and Kristen Brook, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00722-PHX-MLT
RELEASE NUMBER: 2023-047_Williams# # #
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.Straw Purchaser of Gun that Killed Detroit Police Officer Sentenced to PrisonRead the Press Release
DETROIT – A Detroit man was sentenced today to two years in prison for purchasing a Draco pistol for his friend, Ehmani Davis, who would go on to use the firearm in the killing of Detroit Police Officer Loren Courts, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by Craig Kailimai Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Explosives, and Firearms.
Sheldon Thomas, age 27, of Detroit, Michigan, was sentenced by United States District Judge Gershwin Drain. According to court documents and statements made in court, on June 7, 2022, Thomas bought a Century Arms Draco pistol in Eastpointe, Michigan. Thomas admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473, by falsely certifying that he was the buyer of the firearm when he knew he was purchasing it for Ehmani Davis.
Thomas gave Davis the firearm on the day of the purchase. Thomas admitted that Davis gave him the money to buy the firearm. Thomas further admitted that he made multiple attempts to purchase a handgun for Davis.
“The tragic death of Detroit Police Officer Loren Courts is another terrible example of what happens when guns are supplied to those who are prohibited from possessing them,” said U.S. Attorney Ison. “Fighting violent crime is a top priority in our office, and we are committed to holding accountable those who engage in illicit firearm transactions.”
“The loss of Detroit Police Officer Courts was a tragedy that could have been prevented. There are serious consequences that can come from illegally purchasing firearms for prohibited individuals. A critical part of ATF’s mission is to stop violent criminals from possessing firearms before a loss of life occurs,” said, Assistant Special Agent in Charge Craig Kailimai “We will continue to work side by side with our U.S. Attorney’s, federal, state, and local law enforcement partners to make our communities safer.”
This case was investigated by the Bureau of Alcohol, Tobacco, Explosives, and Firearms. The case was prosecuted by Assistant U.S. Attorney Barbara Lanning.
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.
St. Louis Man Who Tried to Bring 100 Pounds of Methamphetamine to St. Louis Sentenced to 10 Years in PrisonRead the Press Release
ST. LOUIS – A man caught trying to bring 100 pounds of methamphetamine to the St. Louis, Missouri area was sentenced Tuesday to 10 years in federal prison.
Dawuane Lamont Rhodes Jr., now 25, was arrested in October 2020 with $15,005 in cash, an assault-style weapon and a pistol when he tried to pick up the methamphetamine at a University City garage.
Law enforcement was waiting because a Geary County, Kansas sheriff’s deputy had stopped a van heading to St. Louis from Colorado and found two duffle bags containing roughly 100 pounds of methamphetamine.
Demond Bernard McDaniels Jr., 27, of St. Charles, had arranged for Rhodes to do the pickup. After he was told that Rhodes didn’t show, McDaniels brought $6,930 in cash and jewelry to the pickup location.
Investigators later found $93,820 in cash and a pistol at McDaniels’ home.
McDaniels and Rhodes pleaded guilty in November in front of U.S. District Judge Matthew T. Schelp to one felony count of conspiracy to distribute and possession with intent to distribute methamphetamine. They agreed to forfeit the money seized during the investigation as well as two Dodge Charger Hellcats and a 2015 Mercedes Sprinter van.
The case was investigated by the Drug Enforcement Administration and the U.S. Postal Inspection Service. Assistant U.S. Attorney Paul D’Agrosa prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Spearfish Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Spearfish, South Dakota, man convicted of Attempted Receipt of Child Pornography. The sentencing took place on April 3, 2023.
Anthony James Kemp, 56, was sentenced to five years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and a $5,000 special assessment to the Victims of Trafficking Fund. Kemp will also be required to register as a sex offender under the Sex Offender Registration and Notification Act.
Kemp was indicted for Attempted Sexual Exploitation of a Minor, Attempted Enticement of a Minor Using the Internet, and Attempted Receipt of Child Pornography by a federal grand jury in August of 2021. He pleaded guilty on December 2, 2022.
Kemp was arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2021 Sturgis Motorcycle Rally, targeting internet predators. Following multiple text messages with an undercover persona Kemp thought was a 15-year-old girl, he negotiated a time and place he would meet the girl to have sex. When Kemp went to the pre-determined location to meet the minor, he was instead met by law enforcement agents and placed under arrest.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by Homeland Security Investigations, the South Dakota Division of Criminal Investigation, the Pennington County Sheriff’s Office, and the Rapid City Police Department. Assistant U.S. Attorney Sarah B. Collins prosecuted the case.
Kemp was immediately remanded to the custody of the U.S. Marshals Service.
Sixth Defendant Pleads Guilty to Local “DMV Board” Dogfighting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Westmoreland County man pleaded guilty yesterday to conspiring to engage in dogfighting.
According to court documents, from at least May 2015 through August 2020, Tarry Jeron “TJ” Wilson, 38, and other conspirators from Virginia, D.C., and Maryland, used a messaging app private group, which they generally referred to as “the DMV Board” or “the Board,” as a place where they and their associates could discuss training fighting dogs, exchange videos about dogfighting, and arrange and coordinate dog fights, away from the view of law enforcement authorities. Members of the DMV Board also used the messaging app to compare methods of killing dogs that lost fights, as well as to circulate media reports about conspirators who had been caught by law enforcement and discuss methods to minimize the likelihood that they would be caught themselves.
According to court documents, Wilson, who used the kennel name “City Limits,” regularly used the DMV Board to solicit fights for his dogs, and to notify his fellow dogfighters of the results of the fights that were arranged. In January 2019, Wilson entered his dog “City Limits Lil Bella” in a fight in Delaware. The fight lasted one hour and 12 minutes, before his dog lost the fight. Wilson later described on the DMV Board how, when his attempt to electrocute the dog failed, he simply shot her.
In June 2020, Wilson attended five dogfights, including two involving his own dogs. Wilson’s dog, “Thor,” won the first fight when the opposing dog quit 16 minutes into the fight. Wilson’s dog, “Red Alert,” won the last fight after 32 minutes when the opposing dog stopped moving. In August 2020, Wilson possessed eight pit-bull type dogs at his Warsaw residence, including four that bore scarring patterns that indicated previous involvement in dogfighting.
According to court documents, Wilson warned members of the DMV Board to be sure to confirm the death of the dogs that they try to kill upon losing a fight. He explained that one time, he and a co-conspirator thought that their dog had died in a fight, only to find that the dog returned to life. Further, Wilson provided on the DMV Board instructions on how to kill a losing dog and offered to drive to another conspirator’s house to hang the dog from a tree himself. Wilson told his fellow DMV Board members that he “loved” killing losing dogs.
According to court documents, in response to a news article posted to the DMV Board regarding an individual charged with running a dogfighting operation, Wilson warned: “People like dogs. They don’t like what we doing to them, though, I bet you that.”
In August 2022, Wilson and six others were indicted for a dogfighting conspiracy involving the DMV Board. Five of those six have previously pleaded guilty and been sentenced for dogfighting offenses.
Wilson is scheduled to be sentenced on June 20, 2023. He faces a maximum penalty of five years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Assistant U.S. Attorneys Gordon D. Kromberg and Cristina C. Stam are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-154.
Sex Offender Sentenced to More Than 26 Years in Prison for Sexual Exploitation of a ChildRead the Press Release
BOSTON – A registered sex offender from Lawrence has been sentenced in federal court in Boston for sexually exploiting a 12-year-old girl.
Irvin Abreu, 38, was sentenced on March 31, 2023 by US District Judge Patti B. Saris to 315 months in prison and 10 years of supervised release. In April 2022, Abreu pleaded guilty to one count of sexual exploitation of children.
“Upon being released from custody for enticing a 15-year-old child, Mr. Abreu – a registered sex offender – immediately began to sexualize and harm another child. His victim was even younger this time at 12 years old. This recidivist is a predator who has repeatedly sought out to harm innocent children and rob them of their childhood. He is a danger to our society and remains exactly where he belongs – behind bars and away from our children. We commend the victim’s mother for reporting this predator’s exploitation and harm of her child so swiftly,” said United States Attorney Rachael S. Rollins.
“Abreu is a registered sex offender who went on to offend again, sexually abusing a child and documenting the abuse by producing child exploitation material. We are grateful to our law enforcement partners whose vigilance and collaboration brought this case to our attention and has resulted in this significant sentence,” said Michael J. Krol, Acting Special Agent in Charge for Homeland Security Investigations in New England.
Two months after being released from state custody and placed on probation for the exploitation of a 15-year-old girl, Abreu met a 12-year-old girl on the internet, groomed her and had sex with her on more than one occasion, documenting the sexual abuse in videos and photographs. The victim’s mother discovered communications between them and immediately reported the matter to local police. Forensic analysis of Abreu’s phone revealed photos, videos and text messages, including imagery depicting his sexual abuse of and sexualized communications with the victim. Additionally, Abreu’s internet history revealed searches for elementary schools in Lawrence, an internet search for “first time sex positions for virgins,” and an internet search for “what does pedophile mean.”
U.S. Attorney Rollins and HSI Acting SAC Krol made the announcement. Valuable assistance was provided by the Lawrence Police Department and the Essex County District Attorney’s Office. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit and the District’s Project Safe Childhood Coordinator, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. “My office is also committed to prevention,” said U.S. Attorney Rollins. “In addition to our school-based outreach, we offer trainings for parents and guardians across the Commonwealth to help demystify some of the ways predators access our children through modern technology. We will always investigate and prosecute predators, while simultaneously committing to educate caregivers about the dangers our young people can face in the digital world.” For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Repeat Sex Offender Sentenced to Life in Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – Brian Wittke, 51, a previously convicted sex offender who shared child pornography online and produced child pornography of two children under age two, was sentenced to life in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Wittke, of Wilkes County, was also ordered to serve a lifetime of supervised release and will be required to register as a sex offender should he ever be released from prison.
Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI) and Chief Andy LeBeau of the Boone Police Department join U.S. Attorney King in making today’s announcement.
“Brian Wittke is a repeat sex predator who caused two young children unimaginable harm,” said U.S. Attorney King. “Protecting children from sexual abuse and exploitation is a priority for my office. Our Special Prosecutions Unit is dedicated to removing predators like Wittke from the community and working with victims to ensure they have a voice in the criminal justice system.”
According to filed court documents and today’s sentencing hearing, between March 29, 2017, and July 28, 2020, Wittke engaged in sexually explicit conduct with two children for the purpose of producing child pornography videos. The criminal investigation began when an undercover detective with the Boone Police Department downloaded child pornography videos that Wittke shared online. The downloads led to law enforcement officers executing a search warrant at Wittke’s residence where the officers seized a thumb drive. A forensic examination of the thumb drive revealed the presence of 57 child pornography videos, five of which depicted Wittke engaging in sexual conduct with two children under age two. In 2001, Wittke was convicted in Wilkes County of two counts of Taking Indecent Liberties with a Child.
On October 6, 2022, Wittke pleaded guilty to production of child pornography. He is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
The Boone Police Department and North Carolina State Bureau of Investigation handled the investigation.
Assistant United States Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Red Lake Man Sentenced to over 16 Years in Federal Prison for RapeRead the Press Release
DULUTH, Minn. – A Red Lake man has been sentenced to 200 months in prison followed by five years of supervised release for sexually assaulting a woman in her home on the Red Lake Reservation, announced United States Attorney Andrew M. Luger.
As proven at trial, on July 3, 2020, Descart Austin Begay, Jr., 38, knowingly raped and sexually assaulted a victim in her home until she was finally able to escape.
On September 6, 2022, Begay was found guilty on two counts of aggravated sexual abuse and two counts of sexual abuse. Begay was sentenced today in U.S. District Court by Judge Nancy E. Brasel.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Evan B. Gilead prosecuted the case.
Rapid City Woman Sentenced to 10 Years in Prison for Drug TraffickingRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on March 24, 2023.
Brittany Vermeulen, 35, was sentenced to 10 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Vermeulen was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in July of 2022. She pleaded guilty on January 6, 2023.
During her involvement in the conspiracy Vermeulen obtained distributable quantities of fentanyl, at times traveling to the Denver, Colorado, area to pick up fentanyl. Upon her return to South Dakota, she would then distribute the fentanyl, primarily in the Black Hills area.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), the Drug Enforcement Agency, and the South Dakota Highway Patrol. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota Highway Patrol, and the South Dakota National Guard. Assistant U.S. Attorney Gina S. Nelson prosecuted the case.
Vermeulen was immediately remanded to the custody of the U.S. Marshals Service.
Raleigh Man Sentenced to 19 Years in Federal Prison for Multiple Armed RobberiesRead the Press Release
RALEIGH, N.C. – Ira Burnett, 34, of Raleigh, North Carolina was sentenced today to 228 months in prison for charges related to four armed robberies in Raleigh, North Carolina.
According to court records and evidence presented in court, Ira Burnett committed four-armed robberies in Raleigh between June 27, 2021 and July 5, 2021. He displayed a weapon to rob a Family Dollar, two Walgreens, and Sky Blue Tobacco all located in Raleigh.
A “Be on the Look Out” or B.O.L.O. announcement was made public by the Raleigh Police Department on June 29, 2021, which included two photos of Burnett taken from video surveillance footage from Family Dollar. Burnett displayed or brandished a weapon to the clerks in each location. He attempted to disguise his identity by wearing a sweatshirt, a mask, and the same Fox Racing hat during each robbery. He was also observed driving the same grey in color vehicle in each location. Less than 20 minutes after his last robbery, a manager at a gas station on Wake Crossroads called police as she recognized Burnett from the B.O.L.O announcement and believed he had just left the gas station. The manager was able to provide the police with video footage and photo evidence of the vehicle Burnett was driving, a grey Nissan, which enabled police to track down the owner of the vehicle.
On July 6, 2021, the Raleigh Police Department executed a search warrant at the residence of the owner of the grey Nissan. Recovered as a result of the search was a loaded .357 caliber revolver, two sweatshirts that resembled what Burnett wore during the robberies, and a Fox Racing hat. Burnett was indicted for the robberies on September 7, 2022 and pleaded guilty to all four robberies on January 4, 2023.
Michael F. Easley, U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Assistant U.S. Attorney Leonard Champaign prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:22-CR-00208-BO.
Pecos Man Sentenced to 15 Years for Attempted MurderRead the Press Release
ALPINE, Texas – A Pecos man was sentenced in a federal court in Pecos last week to 180 months in prison for attempted murder.
According to court documents, Alberto Jimenez Pastrana, 35, shot at a vehicle containing multiple people—later determined to be his children and their mother—then crashed into it with his own vehicle and drove away. Pecos Police Department (PPD) patrol officers located Pastrana, who fled at a high rate of speed and led the officers on a vehicle pursuit, shooting at PPD officers and Reeves County Sheriff’s Deputies. Texas State Troopers, along with the other law enforcement officers in pursuit, tracked Pastrana to a neighborhood south of Pecos where he had crashed and took off on foot. He eventually ditched his assault rifle and surrendered in an area that contained empty oil-field chemical containers and abandoned vehicles.
Pastrana was charged in a criminal complaint on Sept. 28, 2022 with one count of possession of a firearm by a prohibited person. Pastrana, a convicted felon with four prior felony convictions, was sentenced by U.S. District Judge David Counts to the statutory maximum sentence.
“It was very evident that this defendant tried to end the lives of his own children and their mother with both a firearm and a vehicle,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “I greatly appreciate the joint effort and professionalism by our local and state law enforcement partners, who selflessly placed themselves in harm’s way in the pursuit leading to the Pastrana’s arrest.”
The Texas Department of Public Safety Criminal Investigation Division, Pecos Police Department, and Texas Highway Patrol investigated the case.
Assistant U.S. Attorney Matthew Ellis prosecuted the case.
###
Owner of Pacific Crest Equity Partners Pleads Guilty to Tax Evasion, Forfeits $1.9mRead the Press Release
NEWS RELEASE SUMMARY — April 4, 2023
SAN DIEGO— Kenneth Yonika of Alpine, California pleaded guilty in federal court today to evading federal taxes in 2017, 2018 and 2020.
As part of his guilty plea, Yonika agreed to pay $669,133 in restitution to the Internal Revenue Service and forfeit $1.9 million seized by the Internal Revenue Service Criminal Investigation (IRS-CI) and Homeland Security Investigations (HSI).
According to court documents, in 2017, 2018 and 2020, Yonika and his partners utilized a foreign-based nominee to sell securities in the United States and abroad. To offer the securities, Yonika and others had the nominee sign paperwork falsely reporting the nominee owned the securities. Yonika and others then opened a United States bank account to receive millions of dollars in profits from the sale of the securities, which were distributed to Yonika and his partners.
In an effort to hide the income of the securities sales, Yonika engaged in numerous financial transactions involving his personal bank accounts and bank accounts belonging to his company, Pacific Crest Equity Partners, Inc. For example, Yonika conducted dozens of wire transfers from both personal bank accounts and Pacific Crest bank accounts to family members and used Pacific Crest Equity Partner bank accounts to purchase real property and pay for personal expenses. Yonika admitted that his transactions with the nominee, Pacific Crest Bank accounts, and family members were all willful attempts to criminally evade income taxation.
“When someone cheats the tax system, it hurts all honest taxpayers and the integrity of our institutions,” said U.S. Attorney Randy Grossman. “This office will pursue and seek a just punishment for these crimes.” Grossman thanked the prosecution team and agents from IRS and Homeland Security Investigations for their excellent work on this case.
“Mr. Yonika attempted to bypass rules that protect our capital markets, and then skirted U.S. tax laws to evade paying his fair share on the millions of dollars he profited,” said Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation’s Los Angeles Field Office. “At this time of year, when hard working Americans are honestly and diligently preparing their tax returns, it is unacceptable that Mr. Yonika evaded his taxes by taking overt steps to hide his income. The IRS Criminal Investigation and its law enforcement partners are determined to bring those that commit tax fraud to justice.”
“HSI Costa Pacifico Money Laundering Task Force will continue to work with our law enforcement partners to investigate and prosecute criminals that use complex financial schemes to defraud innocent investors,” said HSI San Diego Special Agent in Charge, Chad Platz. “Offshore accounts and shell companies will not deter us from holding these bad actors accountable.”
Sentencing is scheduled for June 30 at 8:30 a.m. before U.S. District Judge Gonzalo Curiel.
DEFENDANT Case Number 21CR2542-TWR
Kenneth Yonika Alpine, CA Age: 45
SUMMARY OF CHARGES
Tax Evasion—Title 26, U.S.C., Section 7201
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: Five years in prison, $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; forfeiture and restitution
AGENCY
IRS Criminal Investigation
Homeland Security Investigations
Owings Mills Man Sentenced to More Than Five Years in Federal Prison for Transporting and Smuggling Firearms and Ammunition from the United States to Assist Separatists Fighting Against the Government of CameroonRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Wilson Nuyila Tita, age 47, of Owings Mills, Maryland, to 63 months in federal prison, followed by two years of supervised release, for conspiracy, for transporting firearms with obliterated serial numbers, and for smuggling firearms and ammunition from the United States to Nigeria. Tita was convicted of those charges on May 6, 2022, along with co-defendants Eric Fru Nji, age 42, of Fort Washington, Maryland and Wilson Che Fonguh, age 41, of Bowie, Maryland, after a two-week trial.
The sentence was announced by Erek L. Barron, United States Attorney for the District of Maryland; Special Agent in Charge James C. Harris of Homeland Security Investigations (“HSI”) Baltimore; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”) Baltimore Field Division; and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (“DCIS”) - Mid-Atlantic Field Office.
According to the evidence presented at trial, from at least November 2017 through July 19, 2019, Tita and his co-defendants conspired with each other and with others to export firearms, ammunition and other military typed items from the United States to Nigeria. Specifically, the evidence at trial established that co-conspirators secreted 38 firearms, 28 of which had the obliterated serial numbers in a shipping container that they sent out of the Port of Baltimore in January of 2019. The guns included sniper rifles, SKS assault rifles (some with bayonets), other rifles and several handguns. There were 44 high-capacity magazines, two rifle scopes and over 35,000 rounds of ammunition. The evidence proved that co-conspirators concealed the firearms, ammunition, rifle scopes, and other items in duffle bags and heavily wrapped packages inside sealed compressor units, placing those items into a shipping container destined for Nigeria. According to trial testimony and court documents, Tita was present for the loading of the container, but that did not load anything himself, because Tita “didn’t like to get his hands dirty.” Instead, Tita gave instructions to the others as they loaded the container.
As detailed in trial testimony, Tita and his co-conspirators contributed funds for the purchase of firearms, ammunition, reloading materials and other equipment for shipping overseas to separatists fighting against the Government of Cameroon. Tita and his co-conspirators communicated about their efforts and plans to ship weapons and ammunitions using an on-line encrypted messaging application and code words in order to conceal their activities. Co-defendant Fonguh and seven defendants charged in related cases are awaiting sentencing.
United States Attorney Erek L. Barron commended HSI, the ATF and DCIS for their work in the investigation. Mr. Barron recognized the U.S. Department of Commerce, Office of Export Enforcement; the U.S. Department of State, Diplomatic Security Service; the Naval Criminal Investigative Service; and the U.S. Postal Inspection Service for their contributions to the investigation. U.S. Attorney Barron thanked Assistant U.S. Attorney Kathleen O. Gavin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
# # #
North Braddock Man Indicted on Drug and Gun ChargesRead the Press Release
PITTSBURGH - A resident of North Braddock, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating various federal narcotics and firearms laws, Acting United States Attorney Troy Rivetti announced today.
The three-count Indictment named Roman Griffey, 28, as the sole defendant.
According to Indictment presented to the court, on July 24, 2022, Griffey allegedly possessed with intent to distribute 10 grams or more of fentanyl analog, a quantity of cocaine, and a quantity of cocaine base. Additionally, the defendant allegedly possessed a firearm and ammunition as a convicted felon. Griffey also allegedly possessed a firearm in furtherance of a drug trafficking crime.
The law provides for a maximum total sentence of not less than 5 years in prison, a fine of not more than $8,000,000.00 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Katherine C. Jordan is prosecuting this case on behalf of the government.
The Allegheny County Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Orleans Man Charged with Federal Cares Act FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DENT HUNTER, of New Orleans, LA, age 45, was indicted on March 31, 2023, on one count of making false statements, one count of theft of government funds, and two counts of money laundering related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
On March 27, 2020, the President of the United States signed into law the CARES Act, which provided emergency assistance, administered by the United States Small Business Administration (SBA), to small business owners affected by the Coronavirus (COVID-19) pandemic. The two primary sources of funding for small businesses were the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loans (EIDL) program.
According to the indictment, on or about April 6, 2020, HUNTER made false statements to an approved lender , for a business in order to obtain a PPP loan for $122,100. On or about July 22, 2020, HUNTER stole $149,900 from the SBA by using an application in the name of NexLevel ONE Realty. Finally, HUNTER committed two counts of money laundering when he used the ill-gotten funds to buy two motor vehicles for family members.
HUNTER faces a sentence of up to five years in prison for the false statements count. He also faces up to ten years in prison for the theft count and each money laundering count. All of the counts include up to $250,000 in fines, and up to three years of supervised release along with a $100 mandatory special assessment fee per count due after conviction.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
For more information on the Department of Justice’s response to the pandemic, please visit https://www.justice.gov/coronavirus. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was investigated by an agent assigned to the Pandemic Response Accountability Committee (PRAC) Fraud Task Force. The PRAC was established to serve the American public by promoting transparency and facilitating coordinated oversight of the federal government’s COVID-19 pandemic response. The PRAC’s 21 member Inspectors General identify major risks that cross program and agency boundaries to detect fraud, waste, abuse, and mismanagement in the more than $5 trillion in COVID-19 spending. The PRAC Fraud Task Force brings together agents from 15 Inspectors General to investigate fraud involving a variety of programs, including the Paycheck Protection Program. Task force agents who are detailed to the PRAC receive expanded authority to investigate pandemic fraud as well as tools and training to support their investigations.
U.S. Attorney Evans praised the work of the U.S. Department of Veterans Affairs - Office of Inspector General (a member of the PRAC) and the Internal Revenue Service - Criminal Investigation in investigating this matter. Assistant U.S. Attorney Edward J. Rivera of the Financial Crimes Unit is in charge of the prosecution.
Moultrie Man Sentenced to Prison for Armed Drug Trafficking Following High-Speed Chase in Crisp CountyRead the Press Release
ALBANY, Ga. – A Southwest Georgia man was sentenced to serve 20 years in prison after he was arrested following a high-speed chase while carrying a semi-automatic Glock, ammunition, cash and drugs a month after he was released from federal custody.
Terry Allen Harris, Jr., aka “TJ,” 38, of Moultrie, Georgia, was sentenced to serve 240 months in prison to be followed by eight years of supervised release by U.S. District Judge Leslie Abrams Gardner on March 30, after he previously pleaded guilty to one count of possession of methamphetamine with intent to distribute and one count of possession of a firearm in furtherance of a drug trafficking crime. There is no parole in the federal system.
“The defendant is rightly being held to account for his proven disregard for the law and willingness to put others in danger,” said U.S. Attorney Peter D. Leary. “Armed repeat felons will face federal prosecution in the Middle District of Georgia, resulting in prison time without parole.”
“Repeat offenders putting the lives of innocent bystanders at risk will not be tolerated. We are committed to working with our law enforcement partners to bring these criminals to justice,” GBI Director Mike Register.
According to court documents, Harris led Crisp County Sheriff’s Office deputies on a high-speed chase on June 24, 2020, after deputies attempted to pull him over for driving 19 miles over the posted speed limit on I-75. Harris exited the interstate, increasing his speed to over 100 miles per hour in a 45 mile-per-hour zone, driving on the wrong side of the road and other dangerous maneuvers before ultimately crashing his vehicle into a birdbath and a tree on a residential property.
Officers found a Glock 19 semi-automatic pistol at Harris’ feet, 59 rounds of ammunition, three extra magazines and $11,821 in cash, plus seven bags of suspected marijuana, grinders, ledgers, a digital scale and a quantity of methamphetamine and LSD. Harris has multiple prior serious felonies, including a prior conviction for possession of a firearm by a convicted felon. Harris had been released from federal prison on May 20, 2020, a little more than a month before this incident.
The case was investigated by the Crisp County Sheriff’s Office, Mid-South Narcotics Task Force and GBI.
The case was prosecuted by Criminal Chief Leah McEwen.
Minnesota Man Sentenced to More Than 24 Years in Federal Prison for Gun and Drug ConvictionsRead the Press Release
A man who conspired across multiple states to distribute methamphetamine while possessing a firearm was sentenced March 31, 2023, in federal court in Sioux City, Iowa.
Shawn Gaston, 32, from Fairmont, Minnesota, pled guilty on July 8, 2022, to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm by a prohibited person, and possession of a firearm in furtherance of a drug trafficking crime.
Evidence at the plea and sentencing hearings showed that from February 2020 through October 2021, Gaston and others distributed approximately 27 pounds of methamphetamine across Northern Iowa, Minnesota, and Wisconsin. In October 2021, law enforcement in Clay County, Iowa, attempted to effectuate a traffic stop on a vehicle Gaston was operating. Gaston led law enforcement on a lengthy high-speed pursuit with Gaston’s vehicle ultimately crashing into a creek in Dickinson County, Iowa. Gaston exited the vehicle after the crash and attempted to dispose of a gun and methamphetamine before being apprehended. The gun and methamphetamine were found approximately 20 yards from the crashed vehicle. Gaston was in Iowa to collect on a drug debt owed to him. Defendant has multiple prior felony convictions, including possession of stolen property and possession of drugs. These convictions prohibit Gaston from legally possessing guns.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Gaston was sentenced to 295 months’ imprisonment, and must serve a term of five years’ supervised release following imprisonment. There is no parole in the federal system. Gaston remains in custody of the United States Marshal until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN 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.
The case was investigated by the Clay County Sheriff’s Office, Iowa Great Lakes Drug Task Force, Iowa Division of Narcotics Enforcement, Spencer Police Department, H.E.A.T., Minnesota River Valley Drug Task Force, Minnesota BCA, Worthington Police Department, Wisconsin DCI, Sauk County Wisconsin Sheriff’s Office, Iowa-Grant Wisconsin Drug Task Force, Crawford County Wisconsin Sheriff’s Office, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Iowa DCI Laboratory. The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4094. Follow us on Twitter @USAO_NDIA.
Maryland Man Charged for Making a Threatening Phone Call to an LGBTQ Advocacy GroupRead the Press Release
A federal criminal complaint has been filed charging a Maryland man for using the telephone to threaten a group that advocates for LGBTQ individuals.
According to court documents, on the evening of March 28, the victim organization received a threatening voicemail from a phone number that investigators identified as belonging to Adam Michael Nettina, 34, of West Friendship, Maryland. The message referenced the March 27 mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where the perpetrator was publicly identified as being transgender. During the call, numerous threats were made including, “…We’ll cut your throats. We’ll put a bullet in your head….You’re going to kill us? We’re going to kill you ten times more in full.”
Nettina had an initial appearance yesterday in U.S. District Court in Baltimore before U.S. Magistrate Judge Matthew J. Maddox.
If convicted, Nettina faces a maximum sentence of five years in federal prison for interstate communications with a threat to injure. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Erek L. Barron for the District of Maryland and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.
The FBI Baltimore Field Office investigated the case.
Assistant U.S. Attorney Paul E. Budlow for the District of Maryland and Deputy Chief Bobbi Bernstein of the Civil Rights Division’s Criminal Section are prosecuting the case.
Manatee County Bank Robber SentencedRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Robert Frascella (55, Bradenton) to 3 years and 10 months in federal prison for bank robbery. The court also ordered Frascella to forfeit $5,000, which is traceable to proceeds of the offense. Frascella had pleaded guilty on December 12, 2022.
According to court documents, on August 8, 2022, Frascella entered a bank in Parrish and asked to complete a $10,000 wire transfer. When he was advised that he didn’t have sufficient funds for the transfer, he left the bank. A short time later he returned to the bank, pulled a box from his backpack, and placed it on the ground of the lobby floor. Frascella indicated it was an explosive device and demanded money. He left the bank with $5,000, the only money the teller had available. As a result of the bomb threat, the bank employees and customers were evacuated from the building. Law enforcement and a bomb squad determined that the box did not contain an explosive device. Frascella was identified and arrested later that day.
This case was investigated by the Federal Bureau of Investigation – Sarasota division, and the Manatee County Sheriffs’ Office. It was prosecuted by Assistant United States Attorney Maria Guzman.
Man Sentenced to 14 Years for Distributing Methamphetamine that Caused Death of Iowa WomanRead the Press Release
A man who distributed methamphetamine to a woman, which resulted in her death, was sentenced today to serve 14 years in federal prison.
Eric A. Young, age 43, from St. Ansgar, Iowa, was convicted of distribution of methamphetamine.
At the plea hearing, Young admitted that he provided methamphetamine to a woman from Nashua, Iowa, on the night of her death. Young admitted to selling the methamphetamine to the woman in exchange for $90. He further admitted that he was present when the woman became unresponsive after taking the methamphetamine. The woman was later pronounced dead at the scene. During the sentencing hearing, the judge indicated that the woman died as a result of a methamphetamine overdose.
Sentencing was held before United States District Court Judge C.J. Williams. Young was sentenced to serve 168 months’ imprisonment and must serve a three‑year term of supervised release following his term of incarceration. There is no parole in the federal system. Young remains in the custody of the United States Marshal until he is transported to federal prison.
This case was investigated by the Iowa Division of Criminal Investigation and is being prosecuted by Assistant United States Attorney Jason Dorval Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2024-CJW.
Follow us on Twitter @USAO_NDIA.
Lynn Man Arrested for Wire Fraud and Aggravated Identity TheftRead the Press Release
BOSTON – A Lynn man has been arrested and charged in connection with using a stolen identity to rent an apartment, for which he allegedly made no rent payments.
Steeve Jean, 36, was charged with wire fraud, aggravated identity theft and unauthorized use of a Social Security number. Jean will make an initial appearance in federal court in Boston at 4 p.m. today.
According to the charging documents, from September 2021 through June 2022, Jean rented an apartment in Lynn under an assumed name. Jean allegedly paid no rent for the apartment and left when the apartment complex began steps to evict him. It is further alleged that, while serving a state prison sentence in April 2021, Jean submitted two fraudulent federal Paycheck Protection Program loan applications claiming business losses for a business that did not exist.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of aggravated identity theft, if convicted, provides for a mandatory sentence of two years in prison, three years of supervised release and a fine of up to $250,000. The charge of unauthorized use of a Social Security number, if convicted, provides for a sentence of up to five years in prison, three of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Benjamin A. Tolkoff of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Leader of Armed Robbery Crew Targeting Pharmacies Sentenced to 14 Years in PrisonRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Jordan Velez was sentenced by United States District Judge Joanna Seybert to 14 years’ imprisonment for his organizing role in the armed robberies of 10 pharmacies. Velez pleaded guilty to a Hobbs Act robbery conspiracy and firearm charges in October 2021.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), announced the sentence.
“Jordan Velez recruited and directed a crew of robbers that put our citizens in grave danger when they entered numerous pharmacies wielding their semi-automatic weapons. They stole drugs and money and terrorized many victims.” stated United States Attorney Peace. “Today, Velez has been justly punished for these violent crimes.”
“Velez and his coconspirators brought violence and fear to multiple communities throughout the New York metropolitan area when they used semi-automatic weapons to rob pharmacies of money and prescription pills. As the sentence today shows, the FBI will ensure anyone willing to commit crimes of this nature faces consequences in the criminal justice system,” stated FBI Assistant Director-in-Charge Driscoll.
“Defendant Jordan Velez and his associates committed numerous pharmaceutical robberies from Nassau County to New Jersey while they were armed placing the public in danger. I would like to thank all of the dedicated law enforcement professionals from numerous agencies for a job well done. Hopefully Velez will receive an appropriate punishment upon sentencing which will keep him incarcerated so he is not a threat to the public,” said NCPD Commissioner Ryder.
Between February 2018 and May 2019, Velez participated in 10 separate armed robberies of pharmacies. During each robbery, acting on Velez’s orders, Velez’s co-conspirators donned masks and entered pharmacies in Long Island, Queens and New Jersey armed with semi-automatic weapons. They demanded prescription pills and money from the pharmacy’s employees. During a robbery that took place in April 2018, Velez’s crew duct-taped a victim inside a CVS pharmacy in Port Jefferson Station, New York. Velez and his crew stole more than $200,000 worth of prescription pills and money during their robbery spree. Co-defendants Ricky Torres and Steven Valenzuela previously pleaded guilty and were sentenced by Judge Seybert to 102 months’ imprisonment and 84 months’ imprisonment, respectively.
The Robberies
- February 17, 2018, CVS in Valley Stream, Long Island
- February 19, 2018, Walgreens in Bethpage, Long Island
- February 23, 2018, Walgreens in Linden, New Jersey
- March 7, 2018, Walgreens in South Ozone Park, Queens
- March 11, 2018, CVS in Queens Village, Queens
- March 15, 2018, CVS in Glen Cove, Long Island
- March 21, 2018, CVS in Rahway, New Jersey
- March 30, 2018, CVS in East Orange, New Jersey
- April 3, 2018, CVS in Port Jefferson Station, Long Island
- May 22, 2018, Walgreens in South Ozone Park, Queens
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Mark E. Misorek is in charge of the prosecution.
The Defendant:
JORDAN VELEZ
Age: 24
Flushing, QueensE.D.N.Y. Docket No. 18-CR-265 (S-2) (JS)
Jury Convicts KC Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man has been convicted at trial of illegally possessing a firearm.
Cory T. Brown, 33, was found guilty on Thursday, March 30, of one count of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Brown was in possession of a Glock 10mm semi-automatic pistol with an extended magazine on Oct. 14, 2021. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has prior felony convictions for carrying a concealed weapon and resisting a lawful stop.
Brown, who was on the FBI’s Most Wanted Fugitive List, was at the residence of co-defendant Myron A. McMillian, 31, of Independence, Mo., on Oct. 14, 2021. Brown had been indicted in a drug-trafficking conspiracy and was a fugitive for two years. (He was later acquitted of the conspiracy charge at trial.)
FBI agents were conducting surveillance of the apartment complex, and several tactical teams approached the apartment building that evening. Before officers could announce their presence, McMillian and two other people ran from the rear door of the apartment. Brown, wearing a red balaclava pulled over his face with only his eyes visible, was arrested near the back door of the apartment. Brown had $11,072 in cash in his pocket and identity documents with his photo but another person’s name. Officers later searched the silver 2021 Mercedes they had seen Brown driving and found a black Louis Vuitton backpack that contained $5,000 in cash.
Officers executed a search warrant at McMillian’s apartment, where they found eight firearms, approximately 3.5 kilograms of marijuana, and $3,188 in cash.
On the kitchen counter, officers found a Smith & Wesson .40-caliber semi-automatic pistol, a Glock 10mm semi-automatic pistol with an extended magazine, a Smith & Wesson .40-caliber semi-automatic pistol, and marijuana. Officers also found an Anderson Arms AM-15 .556-caliber firearm and a Romarm Cugir Draco 7.62x39mm pistol in the kitchen area. DNA evidence indicated the Glock pistol had been in Brown’s possession.
In McMillian’s bedroom, officers found a backpack that contained marijuana and approximately $800 in cash. Officers also found a duffel bag that contained approximately 2.5 kilograms of marijuana. Under the mattress of the bed, they found a Smith and Wesson .40-caliber semi-automatic pistol. On the dresser, investigators found marijuana and approximately $1,580 in cash. In a dresser drawer, they found marijuana and approximately $800 in cash.
Officers found a New Frontier Armory .223-caliber rifle in the main living room area, on the floor near the fireplace, an FNH 5.7mm semi-automatic pistol on the arm of the couch, and a Glock .45-caliber semi-automatic pistol on a shelf.
Law enforcement officers executed another search warrant at McMillian’s apartment (at a different address) on July 14, 2022. Officers found a Glock .380-caliber semi-automatic firearm on the bedroom floor, an Omni Hybrid American Tactical .223/multi-caliber pistol between the mattress and box springs of the bed, and marijuana in the closet and the dresser.
McMillian pleaded guilty on March 8, 2023, and awaits sentencing.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for approximately three hours before returning guilty verdicts to U.S. District Judge Greg Kays, ending a trial that began Tuesday, March 28.
Under federal statutes, Brown is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh A. Ragner and Robert M. Smith. It was investigated by the FBI, the Kansas City, Mo., Police Department, and the Independence, Mo., Police Department.
Project Safe Neighborhoods
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.
Joplin Man Sentenced to 20 Years for Meth Trafficking, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for possessing methamphetamine to distribute and illegally possessing a firearm.
Timothy A. Avey, 40, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole.
On Oct. 4, 2021, Avey pleaded guilty to one count of possessing pseudoephedrine with the intent to manufacture methamphetamine, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of possessing methamphetamine with the intent to distribute.
The Ozarks Drug Enforcement Team executed a search warrant at Avey’s residence on June 18, 2019. Officers found 1.38 grams of methamphetamine and a PW Arms firearm in a small safe in the garage. They also found 15 240mg pseudoephedrine pills and 18 120mg pseudoephedrine pills, which Avey admitted he planned to use to manufacture methamphetamine, as well as 10 hallucinogenic mushrooms. Officers found additional components of a methamphetamine lab in the garage. Avey, who admitted he was selling eight ounces of methamphetamine a day, was arrested and posted bond.
On Aug. 29, 2019, a Joplin police officer conducted a traffic stop while Avey was under surveillance. Officers searched the vehicle and, inside a silver Puma bag, found three Ziploc-style baggies; one baggie contained 144 grams of methamphetamine, one contained 1.7 grams of methamphetamine, and one contained 1.4 grams of marijuana. Officers also found another baggie that contained 15.1 grams of methamphetamine in the center console of the vehicle.
According to court documents, these offenses to which Avey pleaded guilty were part of a crime spree that began on May 26, 2019, when Avey attempted to steal items from a store and had 24.2 grams of methamphetamine, heroin, pills, and marijuana in his possession. In June 2019, Avey sold methamphetamine to a confidential law enforcement source. On Aug. 21, 2019, Avey was stopped with 135 grams of methamphetamine. On April 26, 2020, an officer attempted to conduct a traffic stop for having the wrong plate on his vehicle, but Avey fled into a field, propelling the components of his methamphetamine lab out of his truck bed as he attempted to flee. On June 28, 2020, Avey was stopped with 104 grams of methamphetamine. On Oct. 26, 2020, Avey attempted to flee from a traffic stop and wrecked into the hand railing of a church; he had a methamphetamine lab in his car. He was arrested on federal charges the following day.
According to court documents, Avey is a member of the Joplin Honkys prison gang.
This case was prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Joplin, Mo., Police Department, the Ozarks Drug Enforcement Team, the FBI, the Sarcoxie, Mo., Police Department, and the Missouri State Highway Patrol.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Indiana Man Sentenced for Attempting to Transport AliensRead the Press Release
ALBANY, NEW YORK – Jose Manuel Mejias-Ayala, age 46, of Washington, Indiana, was sentenced today to time served (five days in jail) and to pay a $2,000 fine for attempting to unlawfully transport aliens.
United States Attorney Carla B. Freedman and Chief Patrol Agent Robert N. Garcia, United States Border Patrol, Swanton Sector made the announcement.
As part of his guilty plea on December 2, 2022, Mejias-Ayala admitted that on September 25, 2022 he drove his SUV from Indiana to Mooers, New York, to pick up three Mexican citizens who had recently illegally crossed the international border from Canada into the United States. Mejias-Ayala also admitted that he planned to drive the three people to Chicago, Illinois, and that he was to be paid $6,000 for his efforts.
United States District Judge Mae A. D’Agostino also imposed a 1-year term of supervised release.
The United States Border Patrol investigated the case. Assistant U.S. Attorney Rick Belliss prosecuted the case.
Hueytown Man Sentenced to More than 12 Years in Prison on Gun and Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Hueytown man on gun and drug charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Annmarie C. Axon sentenced Derray Le’Mon Greene, 22, to 151 months in prison. Greene pleaded guilty to two counts of possession of a machine gun, one count of possession with intent to distribute fentanyl, and one count of possession with intent to distribute marijuana.
According to the plea agreement, on two separate occasions between March 2022 and April 2022, the Jefferson County Sheriff’s Office had law enforcement encounters with Greene.
On March 29, 2022, a Jefferson County Sheriff’s deputy conducted a traffic stop on a vehicle in which Greene was the driver. The deputy smelled a strong odor of marijuana coming from inside the vehicle. The deputy searched the vehicle and found marijuana, a Glock 9mm pistol with an attached “Glock Switch,” three Glock magazines, one loaded with 30 rounds of ammunition, and two loaded with 15 rounds in each magazine, and a box of 30 rounds of 9mm ammunition inside of a backpack located in the rear floorboard of the vehicle.
On April 8, 2022, JCSO narcotics detectives were conducting surveillance on an apartment complex in Hoover and discovered Greene’s vehicle in the parking lot. While the detectives were talking to Greene, they observed an individual walk down the steps from an apartment carrying a black bag. The individual entered Greene’s vehicle and sat in the passenger’s seat. Detectives approached the vehicle and contacted the individual. There was an odor of marijuana coming from the vehicle. Detectives searched the vehicle and located a Glock 9mm pistol, with an attached “Glock Switch,” under the driver’s side rear seat. The Glock pistol had an extended magazine that was loaded with 39 rounds of 9mm ammunition. Detectives also found a plastic bag containing fentanyl and a plastic bag containing marijuana next to the Glock pistol.
The ATF investigated the case along with assistance from the Jefferson County Sheriff’s Office. Assistant U.S. Attorney Michael A. Royster prosecuted the case.
Howard County Man Facing Federal Charges for Allegedly Making a Threatening Phone Call to an LGBTQ Advocacy GroupRead the Press Release
Baltimore, Maryland – A federal criminal complaint has been filed charging Adam Michael Nettina, age 34, of West Friendship, Maryland, for using the telephone to threaten a group that advocates for LGBTQ individuals. The criminal complaint was filed on March 31, 2023, and Nettina was arrested later that evening. Nettina had his initial appearance on April 3, 2023, in U.S. District Court in Baltimore before U.S. Magistrate Judge Matthew J. Maddox and was ordered to be detained pending a detention hearing scheduled for April 7, 2023, at 1:30 p.m.
The federal charge was announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the affidavit filed in support of the criminal complaint, on the evening of March 28, 2023, the victim organization received a threatening voicemail from a phone number, which investigators identified as belonging to Adam Michael Nettina. The message referenced the March 27, 2023, mass shooting at a school in Nashville, Tennessee, involving multiple shooting fatalities, where the perpetrator was publicly identified as being transgender. During the call, numerous threats were made including, “…We’ll cut your throats. We’ll put a bullet in your head….You’re going to kill us? We’re going to kill you ten times more in full.”
If convicted, Nettina faces a maximum sentence of five years in federal prison for interstate communications with a threat to injure. 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.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron and Assistant Attorney General Kristen Clarke commended the FBI for its work in the investigation. Mr. Barron and Ms. Clarke thanked Assistant U.S. Paul E. Budlow and Deputy Chief Bobbi Bernstein of the Justice Department’s Civil Rights Division, who are prosecuting the federal case.
The U.S. Attorney’s Office for the District of Maryland (USAO-MD) is launching the national Department of Justice initiative, United Against Hate, this spring. Together with our local partners, USAO-MD’s United Against Hate campaign will empower local residents and communities to combat unlawful acts of hate, stand against racism and discrimination and alter the course of growing intolerance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Honduran National Sentenced to 41 Months in Federal Prison for Possession of Firearms by an Alien Illegally and Unlawfully in the United StatesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Elmer Enrique Amaya Gonzales, age 20, of Honduras, to 41 months in federal prison following his conviction for possession of firearms by an alien illegally and unlawfully in the United States. Upon his release from prison, Gonzales will be removed from the United States and returned to his home country of Honduras.
According to admissions made as a part of his guilty plea, on June 6, 2022, East Baton Rouge Sheriff’s Office deputies were dispatched to Innovation Park Drive in reference to an armed robbery. Upon arrival, deputies contacted the two victims, who advised they were robbed at gunpoint. The victims stated that they were outside discussing the day's upcoming work schedule when they were approached by three armed Hispanic males who demanded their possessions. The three males fled the scene in a dark colored older model Toyota Corolla.
Deputies were able to collect camera footage from the nearby area and observed a dark colored Toyota Corolla traveling in the same area around the time of the robbery. Through this footage, deputies were able to determine the license plate of the vehicle. On June 6, 2022, the vehicle was observed parked outside of Bayou Fountain Avenue with a Hispanic male standing next to it. Deputies watched the vehicle and observed the individual, later identified as Gonzales, enter and exit the vehicle's driver side door multiple times. Deputies contacted Gonzales and detained him for further questioning.
While on scene, deputies observed multiple items in plain view within the vehicle possibly related to the armed robbery that occurred on June 4. Specifically, deputies observed masks, rifle magazines, and rifle ammunition. Investigators obtained a state search warrant to search the vehicle. During the search warrant, deputies recovered a Palmetto, model PSAK47 7.62nun caliber rifle, and a CBC, model 715P, .22 caliber pistol, and various types of ammunition from the vehicle. As the primary user of the Toyota Corolla, Gonzales was aware of the presence of the firearms and ammunition. A Honduran passport belonging to Gonzales was also found in the vehicle's center console.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security, and the East Baton Rouge Parish Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Eli J. Abad.
High-Ranking Member of the Sinaloa Cartel Extradited from Mexico to the United States to Face International Drug Trafficking and Firearm ChargesRead the Press Release
A Mexican national made his initial appearance in the U.S. District Court for the District of Columbia yesterday to face international drug trafficking and firearms charges.
According to court documents, between August 2009 and January 2016, Jorge Ivan Gastelum Avila, aka Cholo Ivan, 42, was a high-ranking member of the Sinaloa Cartel, an international drug trafficking organization that was headed by Joaquin Guzman Loera, aka El Chapo, and Ismael Zambada Garcia, aka El Mayo. The Sinaloa Cartel is a violent, transnational drug trafficking organization based in Mexico that engaged in the manufacture, distribution, and importation of ton quantities of cocaine and marijuana from Colombia, Ecuador, Venezuela, Peru, Panama, Costa Rica, and Honduras to Mexico and into the United States.
Court documents also allege that at the time of his arrest, Gastelum Avila was a lead sicario, or assassin, for the Sinaloa Cartel and worked closely with Guzman Loera. He allegedly operated as the “plaza boss” for the Mexican city of Guamúchil, Sinaloa, and in that role, he supervised at least 200 armed men and controlled the drug-trafficking activities in that city and the surrounding area.
In January 2016, Mexican authorities arrested Gastelum Avila and Guzman Loera together in Los Mochis, Sinaloa, Mexico, as they attempted to flee arrest. In December 2018, a grand jury returned an indictment against Gastelum Avila. The United States requested his provisional arrest in February 2020 and Mexican authorities arrested Gastelum Avila based on that request in March 2020. Gastelum Avila remained detained in Mexico pending his extradition. He was extradited from Mexico to the United States on April 1.
Gastelum Avila is charged with conspiracy to manufacture and distribute five kilograms or more of cocaine and over 1,000 kilograms of marijuana intending and knowing that those substances would be imported into the United States. He is also charged with knowingly and intentionally using, carrying, brandishing, and discharging a firearm, including a destructive device, during and in relation to a drug trafficking crime. Gastelum Avila faces a maximum penalty of life in prison for the drug conspiracy charge and a mandatory consecutive sentence of 30 years for the firearms offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Guzman Loera was extradited to the United States in January 2017. In July 2019, he was sentenced to life in prison for being a principal leader of a continuing criminal enterprise, narcotics trafficking, using a firearm in furtherance of his drug crimes, and participating in a money laundering conspiracy.
This case is supported by the Organized Crime Drug Enforcement Task Force (OCDETF).
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Acting Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI), Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.
The HSI Nogales Office and the FBI Washington Field Office are investigating this case.
Trial Attorney Kirk Handrich of the Criminal Division’s Narcotic and Dangerous Drug Section is prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance with securing the arrest and extradition of Gastelum Avila. The Criminal Division’s Office of Enforcement Operations also provided significant assistance.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Galveston resident sentenced for having pornographic images of childrenRead the Press Release
HOUSTON – A 37-year-old Galveston resident was has handed a significant sentence for distribution and possession of child pornography, announced U.S. Attorney Alamdar S. Hamdani.
Bryan Calderon pleaded guilty March 31, 2022.
Today, U.S. District Judge Brown sentenced him to 92 months each for the distribution and possession of child pornography convictions, respectively, both to be run concurrently. At the hearing, the court heard additional information regarding the vast collection of child pornography found in Calderon’s electronic devices after law enforcement executed a search warrant at his residence in February 2021.
Calderon was further ordered to pay restitution to the victims, but the specific amount will be determined at a later date. He must also serve 10 years on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. Calderon will also be ordered to register as a sex offender.
Calderon came to the attention of law enforcement based on a cybertip to the National Center for Missing and Exploited Children. An IP address appeared to be distributing child pornography to messenger groups using links to cloud storage files. The investigation led to Calderon and his residence in Galveston.
Law enforcement executed a search warrant and seized several electronic devices to include laptop computers and cell phones. Further analysis ultimately revealed Calderon possessed a total of 771 images depicting child pornography. His collection included prepubescent minors, bondage and bestiality involving minors engaging in sexually explicit conduct.
Calderon will remain in custody pending transfer to a U.S Bureau of Prisons facility in the near future.
Homeland Security Investigations – Galveston and members of the Houston Metro Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorneys Sherin Daniel and Kimberly A. Leo are prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Fourth Circuit Affirms Life Sentence of West Virginia Sex TraffickerRead the Press Release
CHARLOTTESVILLE, Va. – The Fourth Circuit Court of Appeals has affirmed the life sentence for a West Virginia man convicted in the Western District of Virginia for commercial sex trafficking.
Kendall Demarko Wysinger, 46, from Manassas, Virginia, was convicted by a jury in January 2019 of sex trafficking and various drug crimes in Virginia, West Virginia, and Maryland. In August 2020, Wysinger was sentenced to life in prison.
Last week, a three-judge panel of the Fourth Circuit Court of Appeals in Richmond affirmed that sentence.
According to evidence presented at trial, Wysinger used heroin to coerce his victims into engaging in commercial sex and employed threats and intimidation to ensure he maintained power and control over those victims. Wysinger routinely advertised these victims for commercial sex using online classified ads in Winchester, Virginia, Shenandoah County, Virginia, and cities in West Virginia and Maryland, and used social media accounts to target and recruit women into his sex-trafficking operation. The defendant demanded his victims pay him nearly all of the money they received from commercial sex in order to pay their drug debts, his charges for posting ads online, and the costs of transporting them to prostitution dates.
On one occasion, the heroin Wysinger distributed resulted in two overdoses. Wysinger gave what he said was heroin to one victim of his sex trafficking ring and her friend, but the substance was actually fentanyl, a far more powerful synthetic opioid. Both victims overdosed as a result of fentanyl poisoning, and one of them eventually died. Wysinger was with both victims when they overdosed and left the victims unconscious in a Winchester motel room.
Assistant United States Attorneys Laura Taylor, Jennifer R. Bockhorst, and Rachel Swartz handled the appeal for the United States.
Former Start-Up CEO Charged in $175 Million FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Patricia Tarasca, the Special Agent in Charge of the New York Regional Office of the Federal Deposit Insurance Corporation’s Office of the Inspector General (“FDIC-OIG”), announced the unsealing of a criminal Complaint charging CHARLIE JAVICE with falsely and dramatically inflating the number of customers of her company, Frank, in order to fraudulently induce J.P. Morgan Chase (“JPMC”) to acquire Frank for $175 million. JAVICE, who appeared on the Forbes 2019 “30 Under 30” list, stood to gain over $45 million from the fraud.
JAVICE was arrested last night in New Jersey and will be presented later today before U.S. Magistrate Judge Barbara Moses.
U.S. Attorney Damian Williams said: “As alleged, Javice engaged in a brazen scheme to defraud JPMC in the course of a $175 million acquisition deal. She lied directly to JPMC and fabricated data to support those lies — all in order to make over $45 million from the sale of her company. This arrest should warn entrepreneurs who lie to advance their businesses that their lies will catch up to them, and this Office will hold them accountable for putting their greed above the law.”
FDIC-OIG Special Agent in Charge Patricia Tarasca said: “The allegations described in today’s criminal Complaint exemplify the many ways banks can be defrauded. The FDIC-OIG remains committed to holding individuals accountable who threaten the integrity of financial institutions, and we thank our law enforcement partners for their diligence and dedication to investigating such crimes.”
According to the Complaint unsealed today in Manhattan federal court:[1]
In or about 2017, JAVICE founded TAPD, Inc., d/b/a Frank (“Frank”), a for-profit company that offered an online platform designed to simplify the process of filling out the Free Application for Federal Student Aid (“FAFSA”). FAFSA is a federal government form, available free of charge, that students use to apply for financial aid for college or graduate school. JAVICE was Frank’s CEO.
In or about 2021, JAVICE began to pursue the sale of Frank to a larger financial institution. Two major banks, one of which was JPMC, expressed interest and began acquisition processes with Frank. JAVICE represented repeatedly to those banks that Frank had 4.25 million customers or “users.” JAVICE explicitly defined “users” — to both banks — as individuals who had signed up for an account with Frank and for whom Frank therefore had at least four identified categories of data (i.e., first name, last name, email address, and phone number). In fact, Frank had less than 300,000 users.
When JPMC sought to verify the number of Frank’s users and the amount of data collected about them — information that was critical to JPMC’s decision to move forward with the acquisition process — JAVICE fabricated a data set. To do this, JAVICE and a co-conspirator (“CC-1”) first asked Frank’s director of engineering to create an artificially generated data set (a so-called synthetic data set). The director of engineering raised concerns about the legality of the request, to which JAVICE responded, in substance and in part, “We don’t want to end up in orange jumpsuits.” The director of engineering declined the request.
JAVICE then approached an outside data scientist and hired him to create the synthetic data set. After the data set was created, JAVICE provided that synthetic data set to an agreed-upon third-party vendor in an effort to confirm to JPMC that the data set had over 4.25 million rows. JAVICE then caused the third-party vendor to convey to JPMC that the data set had over 4.25 million rows, consistent with JAVICE’s misrepresentations that Frank had 4.25 million users.
In reliance on JAVICE’s fraudulent representations about Frank’s users, JPMC agreed to purchase Frank for $175 million. As part of the deal, JPMC hired JAVICE and other Frank employees. JAVICE received over $21 million for selling her equity stake in Frank and, per the terms of the deal, was to be paid another $20 million as a retention bonus.
Unbeknownst to JPMC, at or about the same time that JAVICE was creating the fabricated data set, JAVICE and CC-1 sought to purchase, on the open market, real data for over 4.25 million college students to cover up their misrepresentations. JAVICE and CC-1 succeeded in purchasing a data set of 4.5 million students for $105,000, but it did not contain all the data fields that JAVICE had represented to JPMC were maintained by Frank. JAVICE then purchased an additional set of data on the open market in order to augment the data set of 4.5 million users. After JPMC acquired Frank, JPMC employees asked JAVICE and CC-1 to provide data relating to Frank’s users so that JPMC could begin a marketing campaign to those users. In response, JAVICE provided what was supposedly Frank’s user data. In fact, JAVICE fraudulently provided the data she and CC-1 had purchased on the open market at a small fraction of the price that JPMC paid to acquire Frank and its purported users.
* * *
JAVICE, 31, of Miami Beach, Florida, is charged with one count of conspiracy to commit bank and wire fraud, one count of wire fraud affecting a financial institution, and one count of bank fraud, each of which carry a maximum sentence of 30 years in prison, and one count of securities fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Special Agents from the U.S. Attorney’s Office for the Southern District of New York and from FDIC-OIG.
The case is being handled by the Office’s Complex Frauds and Cybercrime Unit, and Assistant U.S. Attorneys Micah F. Fergenson and Dina McLeod are in charge of the prosecution.
The charges contained in the Complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former San Diego Police Officer and Three Co-Defendants Plead Guilty to Multiple Crimes Stemming from Years-Long Operation of Illicit Massage BusinessesRead the Press Release
A former San Diego Police Department vice detective and his co-defendants each pleaded guilty today in connection with their operation of five illicit massage businesses in California and Arizona that profited for years by exploiting women to engage in commercial sexual services under the guise of offering therapeutic massage services.
According to court documents, Peter Griffin, 78, who left the department in 2002, Kyung Sook Hernandez, 58, Yu Hong Tan, 56, and Yoo Jin Ott, 46, owned and operated Genie Oriental Spa, Felicita Spa, Blue Green Spa, Maple Spa and Massage W Spa, located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022. The criminal scheme included incorporating their businesses with state agencies, managing the finances of the businesses, advertising commercial sexual services online, recruiting and employing women to perform commercial sexual services in the businesses and benefiting financially from the illegal enterprises. The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to operate the illicit massage businesses.
Griffin previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit. Throughout the course of the scheme, Griffin used the experience and skills he acquired through his work as a vice detective – and in at least one instance, his badge – to help the businesses evade law enforcement, thwart regulatory inspections, investigations, and any official action against the businesses, conceal evidence, and maintain a façade of legitimacy. On another occasion, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about her employment at the illicit massage business. Griffin also used resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses. During the scheme, the defendants encouraged and expected employees to perform commercial sexual services inside the businesses and relied on Griffin’s law enforcement background to help conceal the criminal conduct. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.”
“The defendant – a former vice detective who once took an oath to uphold our laws – knew more than most that illicit massage businesses cruelly profit by exploiting women for commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to prosecuting the proprietors of these illegal businesses, and to shining a light on those places where sexual exploitation and trafficking persist.”
“Peter Griffin misused the expertise acquired during his time as a vice detective and abused the respect that came with his badge – all to ensure that his ‘massage parlors’ operated under the radar for his personal financial gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The guilty pleas of Griffin and his co-defendants underscore the Justice Department’s commitment to holding accountable those who profit from crime, particularly crimes that involve the exploitation of vulnerable populations and the abuse of trust that communities place in law enforcement. This plea would not have been possible without the innovative and collaborative efforts of our partners in federal and local law enforcement, the Human Trafficking Prosecution Unit, and the U.S. Attorney’s Office for the Southern District of California.”
“This criminal scheme involved illicit businesses that exploited a vulnerable population,” said U.S. Attorney Randy Grossman for the Southern District of California. “We are committed to prosecuting the offenses that impact not only the employees of these illicit businesses, but the safety of the communities in which they operate.”
“Griffin betrayed the pledge he took to uphold our laws and to protect the members of our community through his egregious misuse of power and knowledge,” said Acting Special Agent in Charge John Kim of the FBI San Diego Field Office. “We appreciate the collaboration of our federal, state, and local partners to ensure that justice is served to Griffin and his co-conspirators. There is no place in our community for those who negligently prioritize money over people.”
Griffin pleaded guilty to conspiring to violate the Interstate Travel in Aid of Racketeering Act (ITAR) by using facilities in interstate commerce to promote and facilitate businesses involving prostitution, and to wire fraud conspiracy and money laundering, for which he faces a maximum penalty of 30 years in prison. Hernandez, Tan and Ott, who managed the different illicit massage businesses in Griffin’s network, each pleaded guilty to misprision of a felony and face maximum penalties of three years in prison.
Assistant Attorney General Clarke, Assistant Attorney General Polite, U.S. Attorney Grossman and Special Agent in Charge Plantz made the announcement.
The investigation was led by Homeland Security Investigations, IRS Criminal Investigation, and the San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program. The investigation was also supported by the FBI, the San Diego Police Department, the San Diego Sheriff’s Office, the Escondido Police Department, the San Diego District Attorney’s Office and the Tempe, Arizona, Police Department.
Assistant U.S. Attorney Jill Streja for the Southern District of California, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Former San Diego Police Officer and Others Plead Guilty to Crimes Stemming from Operation of Illicit Massage BusinessesRead the Press Release
NEWS RELEASE SUMMARY – April 4, 2023
SAN DIEGO – Former San Diego Police Vice Detective Peter Griffin and three co-defendants pleaded guilty in federal court today in connection with their operation of five illicit massage businesses in California and Arizona that profited for years by exploiting women to engage in commercial sexual services under the guise of offering therapeutic massage services.
According to court documents, Griffin, who left the San Diego Police Department in 2002, and codefendants Kyung Sook Hernandez, Yu Hong Tan, and Yoo Jin Ott owned and operated “Genie Oriental Spa,” “Felicita Spa,” “Blue Green Spa,” “Maple Spa,” and “Massage W Spa,” located in the greater San Diego area and in Tempe, Arizona, between 2013 and August 2022.
The criminal scheme included incorporating their businesses with state agencies, managing the finances of the businesses, advertising commercial sexual services online, recruiting and employing women to perform commercial sexual services in the businesses, and benefiting financially from the illegal enterprises. The defendants leased multiple commercial properties as storefronts, leased and bought residential properties to use as housing for employees, and secured credit card processing equipment to operate the illicit massage businesses.
Griffin, who is also a former attorney, previously worked as a detective with the Vice Operations Unit of the San Diego Police Department, a unit tasked with dismantling the very businesses he operated and promoted for personal profit. According to his plea agreement, throughout the course of the scheme, Griffin used the experience and skills he acquired through his work as a vice detective – and in at least one instance, his badge – to help the businesses evade law enforcement; thwart regulatory inspections, investigations and any official action against the businesses; conceal evidence and maintain a façade of legitimacy.
On another occasion, Griffin told an employee that he was a former police officer and instructed her not to “open [her] mouth” about her employment at the illicit massage business. Griffin also used resources he had access to by virtue of his private investigator license to obtain information on customers and employees on behalf of the illicit massage businesses. Through the course of the scheme, the defendants encouraged and expected employees to perform commercial sexual services inside the businesses and relied on Griffin’s law enforcement background to help conceal the criminal conduct. When one employee initially refused to perform commercial sexual services, one of the defendants instructed her to “leave [her] morals in China” in order to “make the customers happy.”
“This criminal scheme involved illicit businesses that exploited a vulnerable population,” said U.S. Attorney Randy Grossman. “We are committed to prosecuting the offenses that impact not only the employees of these illicit businesses, but the safety of the communities in which they operate.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.
“The defendant – a former vice detective who once took an oath to uphold our laws – knew more than most that illicit massage businesses cruelly profit by exploiting women for commercial sex,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to prosecuting the proprietors of these illegal businesses, and to shining a light on those places where sexual exploitation and trafficking persist.”
“Peter Griffin misused the expertise acquired during his time as a vice detective and abused the respect that came with his badge – all to ensure that his ‘massage parlors’ operated under the radar for his personal financial gain,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The guilty pleas of Griffin and his co-defendants underscore the Justice Department’s commitment to holding accountable those who profit from crime, particularly crimes that involve the exploitation of vulnerable populations and the abuse of trust that communities place in law enforcement. This plea would not have been possible without the innovative and collaborative efforts of our partners in federal and local law enforcement, the Human Trafficking Prosecution Unit, and the U.S. Attorney’s Office for the Southern District of California.”
“No one is above the law. I’m appalled that someone who once took an oath to protect our community could prey on the vulnerable,” said San Diego Chief of Police David Nisleit. “I’m proud of our own SDPD officers who helped make this investigation possible and I commend our partner agencies for their diligence in holding Peter Griffin and his accomplices accountable. This is an important step toward justice for the survivors of these crimes.”
“Investigating criminal activity that targets vulnerable individuals and communities is one of IRS-CI’s top priorities,” said Tyler Hatcher Special Agent in Charge of IRS Criminal Investigation's Los Angeles Field Office. “Peter Griffin and his co-defendants will now face the consequences of their almost decade long illegal business that took advantage and victimized women within our community. IRS-CI is committed to using our financial expertise to trace illicit funds and bring down these criminal enterprises.”
“Griffin betrayed the pledge he took to uphold our laws and to protect the members of our community through his egregious misuse of power and knowledge,” said Acting Special Agent in Charge John Kim of the FBI’s San Diego Field Office. “We appreciate the collaboration of our federal, state, and local partners to ensure that justice is served to Griffin and his co-conspirators. There is no place in our community for those who negligently prioritize money over people.”
“This trusted member of the community and his associates profited from the illegal proceeds of the commercial sex industry which is often accompanied by other forms of criminal activity such as money laundering,” said Chad Plantz, special agent in charge, HSI San Diego. “This law enforcement officer utilized his institutional knowledge of the job to betray the public trust. HSI will continue working with our federal, state, and local law enforcement partners to hold accountable those who profit off of individuals lured into this exploitative industry.”
The investigation was led by Homeland Security Investigations, Internal Revenue Service Criminal Investigation, and the San Diego Human Trafficking Task Force, a regional, multi-agency effort led by the California Department of Justice dedicated to supporting survivors and holding traffickers accountable. The task force is comprised of numerous federal, state, and local agencies, as well as the Southwest Border High Intensity Drug Trafficking Area program.
The investigation was also supported by the Federal Bureau of Investigations, the San Diego Police Department, the San Diego Sheriff’s Department, the Escondido Police Department, the San Diego District Attorney’s Office, and the Tempe, Arizona Police Department. Assistant U.S. Attorney Jill Streja of the Southern District of California, Trial Attorney Caylee Campbell of the Money Laundering and Asset Recovery Section of the Criminal Division of the Department of Justice, and Trial Attorney Leah Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.
DEFENDANTS Case Number 22cr1824-JO
Peter Griffin 78
Kyung Sook Hernandez 58
Yu Hong Tan 56
Yoo Jin Ott 46
SUMMARY OF CHARGES
Conspiracy, Interstate and Foreign Travel or Transportation in Aid of Racketeering (ITAR),
Maximum Penalty: Five years in prison, $250,000 fine
Conspiracy to Commit Wire Fraud
Maximum Penalty: Thirty years in prison, $1 million fine
Engaging in Monetary Transactions in Property Derived from Specified Unlawful Activity
Maximum Penalty: Ten years in prison, $250,000 fine or twice amount of criminally derived property
Misprision of a Felony
Maximum Penalty: Three years in prison, $250,000 fine
AGENCIES
Homeland Security Investigations
Internal Revenue Service Criminal Investigations
Federal Bureau of Investigation
San Diego Human Trafficking Task Force
Escondido Police Department
San Diego Police Department
San Diego District Attorney’s Office
San Diego County Sheriff’s Department
Tempe, Arizona Police Department
Former Postal Employee Indicted for Delaying and Stealing the Contents of U.S. MailRead the Press Release
NEW ORLEANS, LOUISIANA – DAZMON DYER, age 29, a resident of New Orleans, Louisiana was indicted on March 31, 2023 by a federal grand jury for unlawful delay of U.S. Mail matter by a postal employee, in violation of Title 18, United States Code, Section 1703(a) and theft of U.S. Mail matter by a postal employee, in violation of Title 18, United States Code, Section 1709, announced U.S. Attorney Duane A. Evans.
According to the two-count indictment, between on or about June 17, 2022 and July 17, 2022, DYER unlawfully secreted, detained, and stole the contents of U.S. mail entrusted to him as a postal employee. As to each count, DYER faces a maximum sentence of 5 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory $100 special assessment fee .
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the United States Postal Service, Office of the Inspector General. Assistant United States Attorney Troy L. Bell of the General Crimes Unit is in charge of the prosecution.
Former Baton Rouge Doctor Convicted of Distributing Controlled Substances Sentenced to 180 Months in Federal PrisonRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Randy J. Lamartiniere, age 64, formerly a doctor in Baton Rouge and now a resident of Alexandria, Louisiana, to 180 months in federal prison following his conviction for distribution of controlled substances by a physician. The Court further sentenced Lamartiniere to serve three years of supervised release following his term of imprisonment, and ordered forfeiture of all property and proceeds obtained by Lamartiniere as a result of his conviction.
According to evidence presented at trial, from in or about March 2015 through January 2016, Lamartiniere, in exchange for cash, wrote medically unnecessary prescriptions for large quantities of Adderall, fentanyl, hydrocodone, methadone, oxycodone, and oxymorphone. Lamartiniere’s fee typically ranged from $100 to $300 per visit, and he accepted no form of health insurance for “doctor visits.” At the end of these “visits,” Lamartiniere routinely issued prescriptions for Adderall and opioids, therefore, distributing and dispensing controlled substances that he knew were not for a legitimate medical purpose and outside the usual course of a legitimate medical practice.
After the hearing, U.S. Attorney Gathe stated, “This prosecution and the lengthy prison sentence imposed today should serve as a reminder of the Department of Justice’s firm commitment to fighting opioid diversion, and a warning to those who would traffic and illegally dispense dangerous opioids in our community. The investigation and federal criminal prosecution have taken several years, but our commitment to this cause has never wavered. I want to thank the great work and dedication of all of the law enforcement agents and investigators who contributed to this successful prosecution, and the prosecutors in this office whose work helped lead to today’s result.”
DEA Baton Rouge District Office Assistant Special Agent in Charge Steven Hofer stated, “The DEA and its law enforcement partners are committed to investigating any medical professional that chooses to place their personal gain over patient care. This investigation demonstrates the positive effects of a collaborative law enforcement effort in Louisiana and our strong partnership with the United States Attorney’s Office to pursue anyone who intends to harm the community. The lengthy sentence received by Dr. Lamartiniere reflects the damage he caused to the community and, hopefully, will deter other medical practitioners with intentions to profit by taking advantage of the public from their trusted position.”
Iberville Parish Sheriff Stassi said, “as law enforcement officers, we are held to a higher standard, as we should be, the same applies to doctors and other medical professionals. Lamartiniere betrayed the trust of his patients, and he abused his authority. His arrest and conviction are continued steps to fight the war on drugs. The persistence of the law enforcement officers that worked to build this case and the tireless efforts of the prosecutors are proof positive that we are committed to providing a safe and peaceful community.” Stassi also acknowledged the countless hours that DEA, the Iberville Parish Sheriff’s Office, our state and local law enforcement partners, and the US Attorney’s Office spent on this case and thanked them for their efforts.
This case was investigated by the Drug Enforcement Administration, with assistance from the Iberville Parish Sheriff’s Office, East Baton Rouge Parish Sheriff’s Office, West Baton Rouge Parish Sheriff’s Office, along with the Baton Rouge Police Department and Department of Health and Human Services – OIG. The case was prosecuted by Assistant United States Attorneys Paul L. Pugliese; Alan A. Stevens, who also serves as Senior Litigation Counsel; and Harley W. Ferguson.
Final Rule Issued for Home Confinement Under the Coronavirus Aid, Relief and Economic Security (CARES) ActRead the Press Release
The Department of Justice has issued a final rule granting discretion to the Director of the Bureau of Prisons to allow individuals placed in home confinement under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to remain in home confinement after the expiration of the covered emergency period.
“The Justice Department is committed to protecting the safety of our communities and continuing to support the successful transition of those on home confinement back to society,” said Attorney General Merrick. B. Garland. “This final rule makes clear that the Director of the Bureau of Prisons has the discretion to ensure that those who have made rehabilitative progress and complied with the conditions of home confinement are not unnecessarily returned to prison.”
The final rule provides the Bureau the discretion and flexibility to impose proportional and escalating sanctions for individuals who commit infractions, including returning them to prison. It also allows the Bureau to move individuals into Residential Reentry Centers when needed, including instances when home residence is no longer viable or due to either minor accountability issues or non-significant disciplinary issues.
Consistent with the final rule, the Director of the Bureau of Prisons today also instructed that any individual placed on home confinement under the CARES Act will remain on home confinement under the CARES Act for the remainder of their sentence, provided that they are compliant with the rules and regulations of community placement.
The final rule comes after the Attorney General issued a statement directing the Department to engage in a rulemaking process to ensure that individuals placed in home confinement under the CARES Act are not unnecessarily returned to prison. The proposed rule was published on June 21, 2022, and the comment deadline concluded on July 21, 2022. Prior to the publication of the proposed rule, the Office of Legal Counsel issued an opinion interpreting the CARES Act to give the Bureau of Prisons discretion to permit individuals on home confinement to remain there after the COVID-19 emergency has ended.
Since the enactment of the CARES Act on March 26, 2020, the Bureau of Prisons has placed more than 12,000 individuals in home confinement under CARES Act authority. Of those, only a fraction of one percent have been returned to secure custody due to new criminal conduct.
Federal jury convicts Albuquerque man of drug trafficking offenses and federal firearm violationRead the Press Release
ALBUQUERQUE – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Gregory M. Millard, Special Agent in Charge for the DEA El Paso Division, announced today that a federal jury on March 30 returned a guilty verdict against Eloy Romero. The jury convicted Romero, 47, of Albuquerque, New Mexico, on one count each of possession with intent to distribute 50 grams and more of methamphetamine, possession with intent to distribute 40 grams and more of fentanyl, and possession of a firearm in furtherance of a drug trafficking crime. United States District Judge Judith C. Herrera presided.
The case against Romero was part of a February 25, 2021, tactical operation by the Albuquerque Police Department in the Southwest Area Command. During the operation, members of the APD Gang Unit observed Romero engage in suspicious behavior in a business parking lot. They approached Romero’s vehicle with emergency equipment engaged, but Romero drove away from the area, disregarding their lights and sirens. APD followed but temporarily disengaged to avoid a dangerous pursuit. Eventually, Romero pulled over and was approached by the investigating officers.
Officers determined that Romero’s vehicle had a suspended registration and Romero had a suspended driver’s license. Officers decided to tow the vehicle, pursuant to department policy. During an inventory of the vehicle, officers discovered suspected fentanyl and a firearm. They immediately sealed the vehicle and sought a search warrant. During execution of the search warrant, officers located a black backpack in the back seat that contained 352 grams of methamphetamine, 1,876 tablets of fentanyl, numerous rounds of .22 ammunition and a .22 caliber semi-automatic handgun.
Romero will remain in custody pending sentencing, which has not been scheduled. He faces a minimum of fifteen years in prison.
The Drug Enforcement Administration’s Albuquerque District Office and Albuquerque Police Department investigated this case. It is being prosecuted by Assistant U.S. Attorneys Nora Wilson and Joseph M. Spindle.
# # #
23-63
Detroit Man Pleads Guilty to Stealing $1.6M in Unemployment Insurance BenefitsRead the Press Release
DETROIT – A Detroit man pleaded guilty today to wire fraud and aggravated identity theft arising out of a scheme to defraud multiple states out of more than $1.6 million in pandemic-related unemployment insurance benefits, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General, and Special Agent in Charge John Marengo of the United States Secret Service’s Detroit Field Office.
Darren Smith, 36, entered his guilty pleas before United States District Judge Terrence G. Berg.
According to court records, beginning as early as May 2020 and continuing through at least July 2020, Smith, with the intent to defraud, filed approximately 250 fraudulent unemployment insurance (UI) claims seeking pandemic unemployment assistance (PUA) benefits to which he was not entitled. Smith submitted the fraudulent claims in the names of multiple individuals, using their Social Security Numbers and other personal identifying information, without their authorization or consent. The fraudulent UI benefits were paid out via debit cards, which Smith then used to repeatedly withdraw the funds via ATMs located in the Eastern District of Michigan.
United States Attorney Ison stated, “This case reflects our ongoing commitment to prosecute those who took advantage of the Covid-19 pandemic by stealing funds intended for those in need. We treat this kind of fraud especially seriously because corruption within these programs undermines trust and confidence in government programs generally. My office will remain vigilant in the pursuit of those who cheat the government and their fellow citizens.”
“Darren Smith engaged in an unemployment insurance fraud scheme that targeted multiple state workforce agencies. Smith submitted false unemployment insurance claims in the names of identity theft victims to obtain debit cards loaded with stolen unemployment benefits. We will continue to work with our law enforcement partners to safeguard the unemployment insurance system from those who exploit these benefit programs,” said Irene Lindow, Special Agent-in-Charge, Great Lakes Region, U.S. Department of Labor Office of Inspector General.
“The U.S. Secret Service continues to work with our law enforcement partners on UIA Fraud schemes. We are thankful to the US Attorney’s Office and Department of Labor for partnering with us in the investigation and prosecution of this case,” said Special Agent in Charge Marengo.
Smith faces a statutory maximum penalty of 20 years imprisonment on the charge of wire fraud and a mandatory minimum sentence of 2 years imprisonment on the charge of aggravated identity theft. Per the terms of his plea agreement, Smith will also be required to pay restitution to the victim states in the total amount of $1,611,648. Sentencing is set for August 17, 2023, at 2pm.
This case was investigated by the U.S. Department of Labor Office of the Inspector General and the U.S. Secret Service. The case is being prosecuted by Assistant United States Attorney Sarah Youngblood and Special Assistant United States Attorney Corinne M. Lambert.
Department of Justice Distributes Compensation to People Harmed by Lack of Accessible Features at Residential Rental Properties Covered in Fair Housing Act LawsuitRead the Press Release
The United States Attorney’s Office for the District of North Dakota, through Jennifer Klemetsrud Puhl, acting under authority conferred by 28 U.S.C. § 515, announced today that the Department of Justice has started delivering payments to individuals harmed by the lack of accessible features at West Fargo and Grand Forks properties that were the subject of a recent federal lawsuit alleging violations of the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). Those individuals were identified through a process established in a settlement between the United States and the defendants in the case.
The federal lawsuit, filed in March 2020 by the Department of Justice, alleged that Hampton Corporation Inc. and several other individuals and entities violated the FHA and ADA by failing to design and construct multifamily residential properties and an associated rental office so that they are accessible to people with disabilities. As part of settlement agreements resolving this lawsuit, the defendants agreed to contribute to a settlement fund totaling $120,000 for people who suffered harm due to the lack of accessible features at the properties; it is from this fund that the Department of Justice is distributing compensation to the individuals who suffered harm.
As required by the settlement agreement, the defendants are also in the process of correcting inaccessible features in the common areas of the properties and within the individual units, including: removing steps; installing handrails on ramps; replacing steeply-sloped walkways; adding accessible routes to mailboxes and site arrival points; ensuring that obstacles do not protrude into the circulation path; installing lever handles on doors; widening doorways; retrofitting bathrooms so they are accessible for wheelchair users; and relocating outlets and controls to within a wheelchair user’s reach range. The defendants have also attended fair housing training and agreed that any future housing they design or construct will comply with the FHA.
“The people receiving compensation as a result of this settlement were harmed by accessibility violations at these properties in profound ways,” said Assistant United States Attorney Tara Iversen. “Steps leading up to apartment building entrances forced some to use unsafe, homemade ramps to get into their homes, or rely on others to lift them and their wheelchair over a step. Too narrow doorways led some residents using walkers or wheelchairs to remove interior bathroom and bedroom doors entirely. And in addition to daily hardships, some individuals suffered real physical injury related to inaccessible features. While we applaud the defendants for their monetary contributions to the settlement fund, timely retrofits to the properties to ensure their accessibility are also critical. Those improvements already completed have positively impacted residents’ experiences at the properties. We encourage the defendants to continue to comply with the requirements of the settlement agreement so residents and their guests can safely enjoy their homes.”
The properties included in the settlement agreement include:
• Townhomes at Charleswood, located at 1908 Burlington Drive in West Fargo, North Dakota;
• Steeples Apartments, located at 2850 and 2950 36th Avenue South in Grand Forks, North Dakota;
• South Hampton Townhomes, located at 3174, 3274 and 3374 36th Avenue South in Grand Forks, North Dakota;
• Carrington Court Townhouse Apartments, located at 3383 Primrose Court in Grand Forks, North Dakota; and
• The rental office serving Carrington Court Townhouse Apartments, South Hampton Townhomes, and Steeples Apartments, located at 3001 36th Avenue South in Grand Forks, North Dakota.
The Justice Department, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability, and familial status. Among other protections, the FHA requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic physical accessibility features, including, among other things, accessible routes without steps to all single-story, ground-floor units and to all units in a building served by an elevator. The ADA protects individuals with disabilities from discrimination in public accommodations, including the rental office at issue in this case. The full and fair enforcement of the FHA, the ADA, and their mandates to integrate individuals with disabilities are major priorities of the United States Attorney’s Office for the District of North Dakota and the Civil Rights Division.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online at www.civilrights.justice.gov.
######
Danville, Illinois, Man Charged with Carjacking Resulting in Death and MurderRead the Press Release
URBANA, Ill. – A grand jury today returned a superseding indictment charging Kevin Marshall, 32, of Danville, Illinois, with allegedly carjacking and murdering Daniel Walter, a 28-year-old man from Williamsport, Indiana, on or about April 25, 2020. The superseding indictment also charges Marshall with allegedly possessing firearms as a felon, as well as possessing methamphetamine with the intent to distribute and carrying firearms during and in relation to the methamphetamine trafficking.
The superseding indictment alleges that Marshall illegally possessed three firearms as a felon – a Taurus 9mm handgun, a Colt .45 caliber handgun, and a Phoenix Arms .22LR caliber handgun – between April 14, 2020, and August 18, 2020. The superseding indictment further alleges that Marshall used the Taurus 9mm handgun to murder Walter on or about April 25, 2020, during a carjacking where Marshall took Walter’s 2005 Ford F-150. Marshall is also charged with allegedly possessing more than 50 grams of methamphetamine with the intent to distribute between July 24, 2020, and August 18, 2020, and with carrying the Taurus 9mm and Colt .45 caliber firearms during and in relation to the methamphetamine trafficking.
The superseding indictment includes special findings by the grand jury alleging that Marshall has a prior state conviction for second-degree murder that involved his use of a firearm against another person, and that Marshall allegedly committed the carjacking and murder of Walter after substantial planning and premeditation and in the expectation of obtaining items of pecuniary value.
Marshall was previously arrested in Danville on August 18, 2020, and was charged in the United States District Court for the Central District of Illinois with the possession of firearms by a felon on August 3, 2021. Marshall has remained in pretrial detention since that time.
If convicted, the maximum statutory penalties for the charges of carjacking resulting in death and murder using a firearm during and in relation to the carjacking are up to life imprisonment or the death penalty.
Agencies participating in the investigation include the Danville Police Department; the Federal Bureau of Investigation, Springfield Field Office; the Illinois State Police; the U.S. Marshals Service; the Vermilion County Sheriff’s Office; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Bryan D. Freres and Eugene L. Miller are representing the government in the prosecution in coordination and cooperation with Vermilion County State’s Attorney Jacqueline Lacy.
Members of the public are reminded that a superseding indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Cumberland County Man Admits Possessing Destructive Device and Explosive MaterialsRead the Press Release
CAMDEN, N.J. – A Cumberland County, New Jersey, man today admitted possessing a destructive device and explosive materials, U.S. Attorney Philip R. Sellinger announced.
Thomas Petronglo, 64, of Vineland, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler to an indictment charging him with one count of possession of a destructive device and one count of unlawful storage of explosives.
According to documents filed in this case and statements made in court:
On March 12, 2021, Petronglo was found in possession of one destructive device, a 5 ¾-inch diameter metal can, containing a quantity of an explosive mixture of potassium perchlorate and aluminum, with a fuse sticking out of the device. Petronglo also possessed multiple intact improvised explosive devices and explosive materials at his residence in Vineland.
U.S. Attorney Sellinger credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Bryan Miller, with the investigation leading to today’s guilty plea. He also thanked the Vineland Police Department, the Cumberland County Prosecutor’s Office, and the N.J. State Police for their assistance with the investigation.
The count of possession of a destructive device carries a maximum penalty of 10 years in prison and a $250,000 fine. The count of unlawful storage of explosives carries a maximum penalty of one year in prison and a $100,000 fine.
The government is represented by Assistant U.S. Attorneys Jeffrey Bender and Joseph McFarlane of the U.S. Attorney’s Office in Camden.
petronglo.indictment.pdf