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Tuesday 31 January 2023
Additional Four Charged in Connection with Plot to Kill Haitian PresidentRead the Press Release
Today, U.S. federal law enforcement transferred into U.S. custody four men detained in Haiti to face criminal charges in the Southern District of Florida related to their alleged involvement in the July 7, 2021, assassination of former Haitian President Jovenel Moïse.
A criminal complaint charges dual Haitian-American citizens James Solages, 37, Joseph Vincent, 57, and Colombian citizen German Alejandro Rivera Garcia, 44, with conspiring to commit murder or kidnapping outside the United States and providing material support and resources resulting in death, and conspiring to do so, knowing or intending that such support and resources would be used to prepare for or carry out the conspiracy to kill or kidnap.
A separate criminal complaint charges dual Haitian-American citizen Christian Sanon, 54, with conspiring to smuggle goods from the United States and cause export information not to be filed, as well as with smuggling goods from the United States and providing unlawful export information.
Solages, Vincent, Rivera and Sanon are scheduled to make their initial federal court appearances tomorrow at 2:00 p.m. before U.S. Magistrate Judge Alicia Otazo-Reyes in Miami.
Including these four defendants, seven individuals are now in U.S. custody, charged with U.S. crimes for their roles in the assassination plot. The other men charged are Mario Antonio Palacios Palacios, 43, Rodolphe Jaar, 49, and Joseph Joel John, 51, who were arrested last year.
As alleged in the complaints, Solages, Vincent, Rivera, Sanon and others participated in crimes that culminated in the assassination of the Haitian President.
It is alleged that in April 2021, Solages, Sanon and others met in South Florida to discuss regime change in Haiti and support for Sanon, an aspiring Haitian political candidate. After that meeting, a list of equipment and weapons needed for the regime change operation was shared with Solages, who then shared it with Sanon. According to the complaint, items on that list included rifles, machineguns, tear gas, grenades, ammunition, bulletproof vests, and other weapons and equipment.
In May 2021, Sanon contracted for equipment needed to support his “private military” forces in Haiti. His private forces included about 20 Colombian nationals with military training who were recruited to assist in the operation and provide security to Sanon. Rivera led the Colombian group, according to the allegations.
It is alleged that Sanon conspired with others to ship 20 ballistic vests for use by his private military forces from South Florida to Haiti on June 10, 2021. The vests were shipped without the required export license from the U.S. Department of Commerce and without the required export information filings.
In mid-June 2021, support for President Moïse’s replacement shifted to a former Haitian Supreme Court Judge. That Judge signed a document requesting assistance to further the arrest and imprisonment of President Moïse. In addition, a document purportedly signed by that Judge claimed to provide immunity in Haiti to those who participated in the operation.
On June 19, 2021, Solages, Vincent, Rivera and others communicated about their plans to arrest President Moïse, detain him and take him away in an airplane to an unknown location. The plan did not go forward when the conspirators failed to obtain the plane and necessary weapons for the operation.
On June 28, 2021, according to the charging documents, Solages traveled from Haiti to South Florida to share with others the documents purportedly signed by the Haitian Judge requesting assistance and immunity. Solages flew back to Haiti on July 1, 2021, to participate in the operation against the President.
It is alleged that on July 6, 2021, Solages, Vincent, Rivera and others met at a house near President Moïse’s residence, where firearms and equipment were distributed and Solages announced that the mission was to kill President Moïse. On July 7, 2021, several individuals arrived outside President Moïse’s residence, some of whom were wearing ballistic vests. They entered the President’s home and killed him, according to the allegations.
Haitian authorities arrested Solages, Vincent, Rivera and Sanon. They were detained in Haiti until today’s transfer to the United States.
Solages, Vincent and Rivera face up to life imprisonment if convicted. Sanon faces up to 20 years if convicted. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Markenzy Lapointe for the Southern District of Florida, Acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office and Acting Special Agent in Charge Michael E. Buckley of Homeland Security Investigations (HSI) Miami made the announcement.
The FBI and HSI investigated these cases.
Assistant U.S. Attorneys Andrea Goldbarg and Monica Castro for the Southern District of Florida, Trial Attorneys Frank Russo and Jessica Fender of the National Security Division’s Counterterrorism Section, and Emma Ellenrieder of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this matter. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture. The Justice Department’s Office of International Affairs provided valuable assistance.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
24 People Indicted for Cross-Country Marijuana Distribution and Money Laundering Conspiracies, Firearms Offenses, and Other CrimesRead the Press Release
ALBANY, NEW YORK – Twenty-four defendants have been charged with marijuana distribution, money laundering, firearms, and related offenses in an indictment returned last month.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; Chief Daniel DeWolf of the Troy Police Department; and Matthew Scarpino, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As alleged in the 99-count indictment, between at least 2016 and June 2022, Dwight A. Singletary II, aka “Nutt” and “Mike Jones,” McKenzie Merrialice Coles, aka “Kenzie,” and others shipped thousands of kilograms of marijuana from a small shipping store called Fast Pack & Ship in Fresno, California, to locations throughout the United States, including the Capital Region of New York. The marijuana was shipped in packages delivered by UPS and FedEx, and to enable the recipients to receive the packages, Singletary, Coles, and others text messaged receipts with package tracking information to the recipients. Singletary and Coles are from New York but moved to Fresno and, as alleged, principally operated their marijuana distribution scheme from California.
Recipients of the packages of marijuana in the Capital Region included, among many others, David Singletary; Lawrence Mumphrey; Deandre Caldwell, aka “Dilli,” “Dillinger,” and “Dre”; Rosemary Coles; Niara Banks, aka “Nie”; Jazell Shuler; Toqwanda Ketchmore, aka “Quannie”; Victor Turner; JuneAllyson Osman, aka “Juney”; Consanga Harris, aka “Sondy”; and LaFay Pearson, aka “Lala.”
In addition to marijuana, Singletary, Coles, and others also shipped “edibles” containing tetrahydrocannabinols, or THC, from Fast Pack & Ship. Rosemary Coles, David Singletary, Lawrence Mumphrey, and Deandre Caldwell, among others, allegedly sold the edibles in the Capital Region. In the Capital Region, the marijuana and edibles would often be taken to so-called “knock spots,” including on 5th Avenue in Troy, where the marijuana products were sold through a slot in the door. Search warrants executed throughout the investigation repeatedly resulted in the seizure of firearms and ammunition at “knock spots” and at residences belonging to those who ran the knock spots, including David Singletary, aka “DB,” and Lawrence Mumphrey, aka “L,” both of whom are alleged to have been prohibited from possessing firearms and ammunition as previously convicted felons.
The proceeds from the sale of marijuana and edibles were allegedly laundered through a variety of means, including money transfers; the transportation and delivery of cash, including $179,710 in cash that was seized from Kristle Walker, aka “Demii” at the Albany International Airport; the purchase of cashier’s checks; real estate transactions; and cash and money order deposits into various bank accounts, including accounts in the names of Dwight Singletary’s companies, DAS Empire, Inc. and Daddy D’s Boutique, and McKenzie Coles’ company, M.M.M.C. Management, Inc. The real estate transactions included Dwight Singletary’s and Coles’ purchase of two residences in Fresno for $820,000, and the use of hundreds of thousands of dollars in cash marijuana proceeds to renovate properties owned by Dwight Singletary and DAS Empire in the Capital Region. Some of the renovated properties were later sold, including a residence on 5th Avenue in Troy. As alleged in the indictment, Singletary purchased the residence for $9,000 in 2016 and sold it for over $250,000 in 2020.
The indictment alleges that Lawrence Mumphrey possessed three large-caliber rifles and a handgun in furtherance of drug trafficking crimes. One of the rifles and the handgun did not have serial numbers; Mumphrey also allegedly possessed 79 rounds of ammunition. Deandre Caldwell also allegedly possessed a handgun in furtherance of drug trafficking crimes.
The indictment contains forfeiture allegations seeking the forfeiture of, among other things, seven properties in Fresno and the Capital Region; over $300,000 in cash and funds seized from bank accounts; several vehicles, including a 2021 Mercedes G63 and a 2021 Mercedes S580; over $500,000 worth of jewelry, including a Patek Philippe watch worth over $114,000; luxury items, including a chinchilla fur vest; and firearms and ammunition. The charges in the indictment are merely accusations. Each defendant is presumed innocent unless and until proven guilty.
The indictment is unsealed as to the following 17 defendants, who are charged with the following crimes and face the following minimum and maximum terms of imprisonment on the most serious counts.
Defendant
Age
Residence
Charges
Min/Max
Dwight A. Singletary II, aka “Nutt” and “Mike Jones”
40
Fresno, California
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Possession with intent to distribute controlled substances.
Maintaining a drug-involved premises.
Conspiracy to commit money laundering.
Money laundering.
Transactions in criminally derived property.
Minimum:10 years Maximum: Life
McKenzie Merrialice Coles, aka “Kenzie”
35
Fresno, California
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Conspiracy to commit money laundering.
Money laundering.
Transactions in criminally derived property.
Minimum:10 years Maximum: Life
David Singletary, aka “DB”
36
Cohoes, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Possession with intent to distribute controlled substances.
Possession of ammunition by a prohibited person.
Maintaining a drug-involved premises.
Conspiracy to commit money laundering.
Minimum:10 years Maximum: Life
Isiah Ti-Quan Clements, aka “Zay”
35
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Conspiracy to commit money laundering.
Money laundering.
Minimum:10 years Maximum: Life
Lawrence Mumphrey, aka “L”
43
Albany, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Possession with intent to distribute controlled substances.
Maintaining a drug-involved premises.
Possession of firearms in furtherance of a drug trafficking crime.
Possession of firearms and ammunition by a prohibited person.
Conspiracy to commit money laundering.
Money laundering.
Minimum:15 years Maximum: Life
Latrice Mumphrey
41
Albany, New York
Conspiracy to commit money laundering.
Money laundering.
Maximum: 20 years
Deandre Caldwell, aka “Dilli,” “Dillinger,” and “Dre”
30
Albany, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Possession with intent to distribute controlled substances.
Possession of a firearm in furtherance of a drug trafficking crime.
Minimum:10 years Maximum: Life
Rosemary Coles
70
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Conspiracy to commit money laundering.
Money laundering.
Minimum:10 years Maximum: Life
Kristle Walker, aka “Demii”
30
Albany, New York
Conspiracy to commit money laundering.
Money laundering.
False statements.
Maximum: 20 years
Niara Banks, aka “Nie”
31
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Conspiracy to commit money laundering.
Money laundering.
Maximum: 20 years
Jazell Shuler
34
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Conspiracy to commit money laundering.
Minimum: 5 years
Maximum: 40 years
Toqwanda Ketchmore, aka “Quannie”
28
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Minimum: 5 years
Maximum: 40 years
Victor Turner
58
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Minimum: 5 years
Maximum: 40 years
JuneAllyson Osman, aka “Juney”
57
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Minimum: 5 years
Maximum: 40 years
LaFay Pearson, aka “Lala”
21
Latham, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Maximum: 20 years
Consanga Harris, aka “Sondy”
62
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Minimum: 5 years
Maximum: 40 years
Alyssa June White
29
Troy, New York
Conspiracy to manufacture, distribute, and possess with intent to distribute controlled substances.
Conspiracy to commit money laundering.
Money laundering.
Maximum: 20 years
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The defendants who have appeared in court have been released with conditions pending trial, except for Dwight Singletary, David Singletary, and Lawrence Mumphrey, who were ordered detained following detention hearings earlier this month before United States Magistrate Judge Daniel J. Stewart.
The ATF, DEA, Troy Police Department, Fresno County Sheriff’s Office, and HSI are investigating the case. Assistant U.S. Attorneys Cyrus P.W. Rieck and Dustin C. Segovia are prosecuting the case.
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.
Monday 30 January 2023
Woman guilty of trafficking women in cantina backroomRead the Press Release
HOUSTON – A 56-year-old woman who illegally resided in Houston has pleaded guilty to several sex trafficking crimes, announced U.S. Attorney Alamdar S. Hamdani.
Maria Botello-Morales admitted to sex trafficking with force, fraud or coercion and conspiracy to do so as well as sex trafficking of a minor.
“Sex trafficking takes many forms. Violators can be male or female, young or old.” Hamdani said. “Trafficking is as diverse as the population of this district, and we will work side by side with our partners and continue to root out this evil that is nothing less than a scourge on our society.”
Botello-Morales had recruited a minor female in 2007 from Mexico. Botello-Morales caused the minor to engage in commercial sex and took payment directly from the commercial sex buyers.
Botello-Morales also ran Puerto Algre from 2015 to 2020. Puerto Algre was a cantina where several females were forced to engage in commercial sex in backrooms built specifically for that purpose. Botello-Morales and others threatened and intimidated these victims with violence to manipulate them into engaging in commercial sex for her personal financial benefit.
The victims reported they had started at the bar as waitresses. However, Botello-Morales soon told them they had to engage in commercial sex. If they refused, she threatened them with violence.
Some witnessed violence and weapons at the bar and in the back area where the sex acts occurred. Each described how they had to take customers to the backrooms. They were given a condom wrapped in a paper towel, were to spend no more than 15 minutes in the room and charge approximately $70. On the way out, they had to turn the money over to whoever was guarding the room.
One victim also explained that when she refused to come to work, Botello-Morales sent someone to physically assault her.
U.S. District Judge Andrew S. Hanen accepted the plea and set sentencing for June. At that time, Botello-Morales faces up to life in prison.
Botello-Morales has been and will remain in custody pending that hearing.
Texas Alcohol and Beverage Commission (TABC) and Homeland Security Investigations (HSI) conducted the investigation with the assistance of the Houston Police Department (HPD) as part of the Human Trafficking Rescue Alliance (HTRA). Assistant U.S. Attorney Sherri L. Zack is prosecuting the case.
HTRA law enforcement includes members of the HPD; FBI; HSI; Texas Attorney General’s Office; IRS-Criminal Investigation; Department of Labor (DOL); DOL – Wage and Hour Division; Department of State; Federal Air Marshals; TABC; Texas Department of Public Safety; Texas Rangers; Texas Parks and Wildlife; Social Security Administration – OIG; Texas Department of Licensing and Regulation; Texas Department of Family and Protective Services as well as police departments in Houston Independent School District (ISD), Conroe ISD and Missouri City; Harris County constables offices – Precincts one and four; sheriff’s offices in Harris, Montgomery, Fort Bend, Brazoria and Waller counties in coordination with District Attorney’s offices in Harris, Montgomery, Fort Bend and Galveston Counties. They work in coordination with victim service providers such as YMCA, United Against Human Trafficking and Texas Forensic Nurse Examiners.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Weeping Water Man Sentenced for Felon in Possession of AmmunitionRead the Press Release
United States Attorney Steven Russell announced that Matthew W. Miller, 36, of Weeping Water, Nebraska, was sentenced today in federal court in Omaha for the crime of Felon in Possession of Ammunition. United States District Judge Brian C. Buescher sentenced Miller to 37 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
On August 10, 2021, Miller pawned Winchester .357 ammunition at Sol’s Pawn Shop in Omaha. Miller’s information was recorded for the sale and the pawn ticket was submitted for fingerprint analysis. Miller’s fingerprints were on the ticket. Miller was also photographed pawning the ammunition. The Bureau of Alcohol, Tobacco, and Firearms confirmed that all the ammunition Miller pawned was manufactured outside the state of Nebraska.
Miller has been convicted of multiple felony offenses in several Nebraska counties. Among his prior felonies are felony Theft offenses committed in Douglas and Washington counties, Burglary (Douglas County), Carrying a Concealed Weapon, and Possession of a Firearm by a Prohibited Person (Douglas County).
This case was investigated by the Omaha Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Wayne County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Duke Orlando Geary, 39, of Kenova, pleaded guilty today to possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on January 30, 2020, law enforcement officers searched Geary’s Kenova residence. Geary admitted to possessing approximately 88 marijuana plants, 25 pounds of marijuana, a Taurus .22-caliber revolver, and ammunition found by officers during the search. Geary further admitted that he intended to sell the marijuana and possessed the firearm to protect the marijuana and the sales proceeds.
Geary is scheduled to be sentenced on May 1, 2023, and faces a mandatory minimum of five years and up to life in prison, five years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Violent Crime and Drug Task Force West.
United States District Judge Robert C. Chamber presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-233.
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United States Attorney's Office Files Civil Forfeiture Action to Recover Proceeds of Cryptocurrency Investment Fraud SchemeRead the Press Release
BOSTON – The United States Attorney’s Office filed a civil forfeiture action to recover cryptocurrency alleged to be proceeds of an online investment fraud scheme targeting victims in Massachusetts and elsewhere. The government seeks to forfeit 81,547 USDT (Tether) and 87,321 BEL (Bella Protocol) traceable to the fraud, which has been seized by the government. Tether is a unit of cryptocurrency that is equivalent in value to one U.S. dollar. Bella Protocol is also a cryptocurrency with a value that fluctuates with the market.
In April 2022, a federal investigation began into an investment fraud scheme that targeted a Massachusetts victim. As detailed in court documents, the victim had been contacted in March 2022 through LinkedIn by an alleged scammer. After further communications in Chinese through another application, the victim was lulled into making what she believed was a legitimate cryptocurrency investment. The victim was induced to download an application that appeared to be a legitimate cryptocurrency platform but was allegedly fraudulent, and then invested money through that fraudulent site.
During the investigation, a second victim in California was identified, who was also allegedly lulled into investing in a fraudulent cryptocurrency scheme after an initial contact through LinkedIn.
A portion of the funds the victims invested to another cryptocurrency wallet was traced, resulting in the seizure of 81,547 USDT and 87,321 BEL.
It is a violation of federal law to use wire communications as part of a scheme to defraud or to obtain money or property by means of false or fraudulent pretenses. A civil forfeiture action allows third parties to assert claims to property, which must be resolved before the property can be forfeited to the United States and returned to victims.
This is the second civil forfeiture action the U.S. Attorney’s Office has filed seeking to forfeit cryptocurrency traced to an online investment fraud scheme targeting Massachusetts victims.
Members of the public who believe they are victims of a cybercrime – including cryptocurrency scams, romance scams, investment scams, and BEC fraud scams – should contact [email protected]
United States Attorney Rachael S. Rollins and Andrew Murphy, Special Agent in Charge of the U.S. Secret Service, Boston Field Office, made the announcement today. Assistant U.S. Attorney Carol E. Head, Chief of Rollins’ Asset Recovery Unit, is prosecuting the civil forfeiture action.
The details contained in the civil forfeiture complaint are allegations. The United States Attorney’s Office has not filed a corresponding criminal action on the matter.
U.S. Attorney Thompson Invites Media to Human Trafficking Training WorkshopRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson of the Southern District of West Virginia invites the media to attend the public portion of a human trafficking training workshop on Tuesday, January 31, 2023, from 10 a.m. to 11:15 a.m. at the University of Charleston.
After opening remarks by Thompson and leadership from the U.S. Department of Homeland Security-Homeland Security Investigation (HSI), their respective offices will provide an overview of human trafficking in West Virginia.
Other participants include the West Virginia Fusion Center, the West Virginia Center for Children’s Justice, and the West Virginia State Police. The remainder of the workshop is reserved for law enforcement and other registered stakeholders.
WHAT: Combatting Human Trafficking in West Virginia: Bringing Our Communities Together for Response, Prevention, Awareness and Action
WHEN: Tuesday, January 31, 2023, from 10 a.m. to 11:15 a.m.
WHERE: University of Charleston, Geary Student Union Ballroom, Third Floor, 2300 MacCorkle Avenue, SE, Charleston.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney Announces Settlement of Civil Fraud Lawsuit Against Former Hunter College Professor and Hunter College for Fraudulently Using Federal Research FundsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that the United States has filed and settled a civil fraud lawsuit against HUNTER COLLEGE (“HUNTER”) and JEFFREY T. PARSONS-HIETIKKO (“PARSONS”), a former HUNTER psychology professor who served as Director of Hunter’s Center for HIV Educational Studies (“CHEST”). The lawsuit resolves the United States’ allegations that for many years: (i) PARSONS improperly invoiced personal expenses to National Institutes of Health (“NIH”) funds, including expenses related to scuba diving trips, international flights for his family, a tropical birthday celebration, and travel for his work as a private consultant; (ii) HUNTER used NIH funds to pay PARSONS over $90,000 in retention bonuses without disclosing these payments to NIH as required; and (iii) PARSONS and HUNTER submitted false timekeeping records that misrepresented the time that CHEST staff spent working on NIH grant-related projects, resulting in the use of NIH grant funds to compensate CHEST staff for work performed for private clients. The lawsuit alleges that these impermissible uses of NIH funds violated HUNTER’s certifications to NIH and the U.S. Department of Health and Human Services (“HHS”) that the NIH funds would be used only for allowable research and academic purposes.
Under the settlement approved by U.S. District Judge Ronnie Abrams, PARSONS, 55, of Teaneck, New Jersey, and HUNTER agreed to pay $375,000 and $200,000, respectively, to the United States and made detailed factual admissions regarding their conduct.
U.S. Attorney Damian Williams said: “NIH provides funding to academic institutions for the purpose of furthering important research that impacts communities and improves lives. For years, Jeffrey Parsons-Hietikko obtained these funds under false pretenses, then used them to cover his personal expenses and for other purposes totally unrelated to research. Hunter College improperly used NIH funds to pay undisclosed bonuses to Parsons and for other expenses unrelated to NIH-funded work. When individuals and institutions abuse federal grant money, this Office will hold them accountable.”
As alleged in the Complaint filed in Manhattan federal court:
During his time at HUNTER, where he was promoted on multiple occasions and achieved the status of Distinguished Professor in 2012, PARSONS proved himself to be singularly proficient at obtaining NIH funding to support his and CHEST’s research. HUNTER considered PARSONS to be one of its most prized faculty members and offered him a number of perks, including discretionary spending accounts financed by NIH funds, a high level of personal control over CHEST’s federal grant funds, and special accommodations in the approval process for obtaining reimbursements from federal funds for his expenses. PARSONS then abused his authority and influence by repeatedly drawing from these discretionary accounts to fund personal expenses.
From January 1, 2010, through May 17, 2018 (the “Covered Period”), PARSONS and HUNTER defrauded the United States by materially misusing federal funds obtained from NIH and making false certifications and statements to NIH and HHS. First, PARSONS defrauded the Government by improperly using NIH funds that HUNTER had certified to HHS would only be used to support the facilities and administrative costs associated with HUNTER’s NIH grants (the “Indirect Cost Funds”) to reimburse himself for his personal travel expenses, including expenses relating to personal scuba diving trips, international flights for his family, and a tropical birthday celebration. PARSONS falsely represented that these reimbursement requests all had an academic or research purpose. PARSONS also improperly used Indirect Cost Funds to double the reimbursement he received for travel relating to his non-NIH-related work as a private consultant to external clients.
From December 2010 through December 2013, HUNTER improperly used the Indirect Cost Funds to pay PARSONS over $90,000 in undisclosed retention bonuses, even though NIH rules and regulations prohibited the Indirect Cost Funds from being used to make such payments. HUNTER never disclosed and, indeed, took steps to hide its use of the Indirect Cost Funds to pay these bonuses to PARSONS.
During the Covered Period, PARSONS also misused CHEST’s NIH grant funds to pay CHEST staff for time they spent working for CHEST’s private consulting clients, rather than on NIH grant-related projects. In order to obtain NIH funds for this purpose, PARSONS approved timekeeping records representing that those staff spent their time and effort working on NIH-funded research projects. In reality, however, CHEST staff had also spent time working on unrelated projects commissioned by third parties, which were not properly reimbursable from the NIH grant funds and were not accurately reflected on the documents PARSONS submitted to obtain reimbursement. Although HUNTER was on notice that CHEST staff performed work on outside projects, it nevertheless sought and received NIH funds to improperly pay CHEST staff for this outside work. The third parties that commissioned CHEST to work on the outside projects separately paid for the work performed by CHEST staff. HUNTER directed those payments into discretionary accounts to benefit CHEST and PARSONS, including one account used to reimburse PARSONS for alcohol expenses. Moreover, even after HUNTER became aware that NIH-funded CHEST staff had been improperly utilized to perform work for PARSONS’s private consulting company, HUNTER never took steps to investigate or report to NIH this misuse of NIH funding.
As part of the settlement, PARSONS admits, acknowledges, and accepts responsibility for the following conduct:
- From 2013 through 2017, PARSONS requested reimbursement from Indirect Cost Funds for scuba diving trips to the Cayman Islands, Bonaire, Cuba, Costa Rica, Fiji, Cozumel, and Belize (the “Scuba Trips”). As part of his request for reimbursement from Indirect Cost Funds, PARSONS represented that the Scuba Trips had a research purpose. However, PARSONS did not create any documents, data, or records reflecting research he conducted while he was on the Scuba Trips.
- In addition to the Scuba Trips, from 2016 through 2017, PARSONS also requested reimbursement from Indirect Cost Funds for travel to Cape Town (the “Cape Town Trip”) and Puerto Rico (the “Puerto Rico Trip,” and together with the Cape Town Trip, the “Personal Trips”). As part of his request for reimbursement from Indirect Cost Funds for the Personal Trips, PARSONS represented that the Personal Trips had an academic purpose.
- From 2016 through 2018, PARSONS sought and received reimbursement from Indirect Cost Funds to reimburse himself for travel to Denver, Chicago, and Los Angeles. However, during these trips, PARSONS was not working on projects relating to CHEST’s NIH grants and, instead, was working as a consultant for other institutions. PARSONS did not reimburse HUNTER or NIH for any of the Indirect Cost Funds he received relating to his travel to Denver, Chicago, and Los Angeles as a consultant for other academic institutions.
- Throughout the Covered Period, PARSONS caused HUNTER to request NIH grant funds to pay the salaries of CHEST staff ostensibly working on CHEST’s NIH-funded research. PARSONS approved a spreadsheet that purported to reflect the percentage of time and effort that CHEST staff spent working on CHEST’s NIH-funded research (the “Staff Allocation Spreadsheet”). During the Covered Period, CHEST staff not only worked on projects connected to HUNTER’s own NIH-funded research, but also on unrelated projects commissioned by third parties (“Outside Projects”). During the Covered Period, the Staff Allocation Spreadsheet failed to accurately reflect the time and effort CHEST staff spent working on the Outside Projects. Instead, during the Covered Period, the Staff Allocation Spreadsheet reflected CHEST staff as working entirely on CHEST’s NIH-funded research.
As part of the settlement, HUNTER admits, acknowledges, and accepts responsibility for the following conduct:
- During the Covered Period, HUNTER was aware that CHEST staff worked on Outside Projects and received payments from third parties for that work. However, the staff’s work on many of the Outside Projects was not reflected on the Staff Allocation Spreadsheet at all, and when it was, the Staff Allocation Spreadsheet understated the time that CHEST staff spent working on those Outside Projects. Instead, the time and effort of CHEST’s staff on the Outside Projects was incorrectly allocated on the Staff Allocation Spreadsheet to projects that NIH funded directly through NIH grants. HUNTER, in reliance on these incorrect Staff Allocation Spreadsheets, sought and received reimbursement from the NIH for staff time and effort expended on the Outside Projects.
- HUNTER deposited the funds it received as payment for CHEST’s staff work on the Outside Projects into accounts to benefit CHEST and PARSONS, and one of these accounts was used to reimburse PARSONS for expenses for alcohol at CHEST-related events.
- From December 2010 through December 2013, HUNTER used Indirect Cost Funds to pay PARSONS over $90,000 of retention bonuses, which were never disclosed to NIH. Throughout the Covered Period, NIH rules and regulations prohibited the use of Indirect Cost Funds to pay faculty retention bonuses not previously disclosed to NIH.
In connection with the filing of the lawsuit and settlement, the Government joined a whistleblower lawsuit that had previously been filed under seal pursuant to the False Claims Act.
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Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Office of Inspector General for HHS.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jessica Jean Hu is in charge of the case.
U.S. Attorney Announces $22.8 Million Settlement of Civil Fraud Lawsuit Against Vitamin Importer for Underpaying Customs Duties Owed on Products Imported into the United StatesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, AnnMarie R. Highsmith, Executive Assistant Commissioner for U.S. Customs and Border Protection’s (“CBP”) Office of Trade, and Francis Russo, Director of CBP Field Operations New York, announced today that the United States has filed and settled a civil lawsuit against International Vitamins Corporation (“IVC”), a United States-based company that imports and sells vitamins and nutritional supplements from China. The settlement resolves claims that, for years, IVC defrauded the United States by misclassifying more than 30 of its products under the Harmonized Tariff Schedule (“HTS”) in order to avoid paying customs duties and by failing to pay back duties owed to the United States even after IVC finally corrected its longstanding misclassifications.
Under the settlement agreement approved by U.S. District Judge Mary Kay Vyskocil, IVC will pay $22,865,055 to the United States. As part of the settlement agreement, IVC also made admissions regarding its conduct. IVC admitted that, between 2015 and 2019, it utilized HTS classifications for 32 products it imported from China (the “Covered Products”) that carried duty-free rates, even though those products, if accurately classified, would have been subject to the payment of duties. IVC also admitted that even after it retained a consultant in 2018 who informed IVC that it had been misclassifying the Covered Products, IVC did not implement the correct classifications for over nine months and never remitted duties that it had underpaid to the United States because of its misclassification of the Covered Products.
U.S. Attorney Damian Williams said: “IVC engaged in a fraudulent scheme to avoid customs duties owed to the United States by misclassifying many of its products as duty-free when importing them from China. Worse yet, IVC made no effort to right its wrongs even after acknowledging internally that it had underpaid millions of dollars of duties owed. This Office is committed to combatting customs fraud by holding companies accountable when they attempt to avoid paying what they owe when importing goods from abroad.”
CBP Executive Assistant Commissioner AnnMarie R. Highsmith said: “This case reflects a pattern of behavior in which this company knowingly misclassified imported merchandise to avoid paying duties. They did so despite clear prior rulings by CBP on the correct classification for this specific type of product. Their failure to adhere to the customs laws, which are designed to protect U.S. revenue and U.S. consumers, will cost the company more than $22.8 million under the terms of a civil settlement with the United States. The dedication of the men and women of the CBP Office of Trade, the Office of Chief Counsel New York, and the United States Attorney’s Office to protect a fair and competitive trade environment is vital to facilitating lawful trade.”
CBP Director of Field Operations Francis Russo said: “U.S. Customs and Border Protection provided the critical link to an ongoing investigation into an attempt to circumvent payment of proper duties. This case serves as a great example of collaborative law enforcement efforts to uncover and dismantle enterprises that seek to defraud the United States government for personal gain while causing economic harm to their competitors.”
As alleged in the Complaint filed in Manhattan federal court:
From January 1, 2015, through September 13, 2019 (the “Covered Period”), IVC made thousands of entries of the Covered Products (consisting of raw and bulk vitamins and nutritional supplements) into the United States from China while materially misreporting to CBP the duty rates applicable to those products under the HTS. IVC knowingly submitted or caused its customs brokers to submit entry documents to CBP that contained false classifications of the Covered Products in order to avoid paying duties owed and failed to remit underpaid duties even after IVC confirmed that the classifications it had used were incorrect.
IVC utilized inaccurate HTS classifications for the Covered Products despite receiving repeated notices from CBP informing IVC that the classifications it had been using for similar goods were erroneous. After continuing to use the incorrect HTS classifications for more than three years, IVC retained a consultant to analyze the propriety of its classifications. Even after the consultant confirmed that IVC had been misclassifying the Covered Products under the HTS, IVC persisted in using its incorrect classifications for these goods for over nine months. Throughout, IVC provided the incorrect classifications to its customs brokers, knowing that they would rely on those classifications when preparing documents to be submitted to CBP on IVC’s behalf.
When IVC finally adopted the correct classifications for the Covered Products, IVC made no effort to pay back the duties that it had long owed to the United States because of its pervasive misclassifications. As a result, IVC underpaid millions of dollars of duties owed to CBP for its imports.
In the settlement agreement, IVC admitted, acknowledged, and accepted responsibility for the following conduct:
- During the Covered Period, IVC’s customs brokers used information provided by IVC to prepare and submit customs entry summaries to CBP relating to imports of the Covered Products. IVC knew that its customs brokers would rely on the information it provided when classifying the Covered Products and preparing the entry summaries to be submitted to CBP.
- During the Covered Period, IVC provided its customs brokers with HTS classifications for the Covered Products that applied to medicaments and vitamins and that would incur no duties. The Covered Products should have been classified as food preparations subject to the payment of duties. IVC continued providing its customs brokers with these inaccurate HTS classifications even after CBP issued Notices of Action to IVC in 2016 and 2017 regarding classification errors made by IVC for similar non-Covered Products, namely, incorrectly classifying the similar non-Covered Products as duty-free when the correct classifications were for food preparations subject to duties.
- In the fall of 2018, IVC retained a consultant to review the HTS classifications IVC was using for all of the products IVC was then importing into the United States, including the Covered Products. After analyzing the 134 products, the consultant provided IVC with the correct HTS classifications for each of the Covered Products. The corrected codes carried higher duty rates than the HTS classifications IVC was using at the time. As a result, IVC had underpaid duties on the Covered Products.
- IVC did not implement the corrected codes for the Covered Products that were imported into the United States on entry documentation submitted to CBP until around September 13, 2019. Soon after, an IVC executive explained his view “that as each item is reviewed and corrected,” IVC had “a very strong go forward but the clean up is tough.” IVC never remitted the duties it had underpaid for the Covered Products, apart from in response to several discrete Notices of Action.
- As a result, IVC, through its customs brokers, misclassified the Covered Products on entry documents filed with CBP and, throughout the Covered Period, routinely underpaid customs duties on the Covered Products.
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In connection with the filing of the lawsuit and settlement, the Government joined a whistleblower lawsuit that had been previously filed under seal pursuant to the False Claims Act.
Mr. Williams thanked CBP for its investigative efforts and ongoing support and assistance with the case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Zachary Bannon is in charge of the case.
Two Florida Doctors Convicted in $31 Million Medicare Fraud SchemeRead the Press Release
A federal jury convicted two Florida doctors today for their roles in a scheme to defraud Medicare by submitting over $31 million in claims for expensive durable medical equipment (DME) that Medicare beneficiaries did not need and that were procured through the payment of kickbacks.
According to court documents and evidence presented at trial, Dean Zusmer, 54, of Miami, was a chiropractor who conspired with others to steal millions of dollars from Medicare. Zusmer owned one of four DME companies that collectively billed Medicare over $31 million for medically unnecessary DME, of which over $15 million was paid. Zusmer and his co-conspirators, including Jeremy Waxman, acquired patient referrals and signed doctors’ orders by paying kickbacks to marketers who used overseas call centers to solicit patients and telemedicine companies to procure prescriptions for unnecessary braces for these patients.
Court documents and evidence presented at trial further demonstrated that Lawrence Alexander, M.D., 45, of Miami, was an orthopedic surgeon who owned one of the DME companies with Waxman and concealed both his and Waxman’s roles in the scheme by putting the DME company in the name of one of Alexander’s family members.
Zusmer was convicted of conspiracy to commit health care fraud, health care fraud, conspiracy to pay illegal health care kickbacks, paying illegal health care kickbacks, and false statements relating to health care matters. He is scheduled to be sentenced on April 20 and faces a maximum penalty of 10 years in prison on each of the following counts: conspiracy to commit health care fraud; health care fraud; and paying illegal health care kickbacks. Zusmer faces a maximum penalty of five years in prison for the following counts: conspiracy to pay illegal health care kickbacks and false statements relating to health care matters.
Alexander was convicted of false statements relating to health care matters. He is scheduled to be sentenced on April 20 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Waxman was previously sentenced to over 15 years in prison for his role in the scheme.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI Criminal Investigative Division; Special Agent in Charge David Walker of the FBI Tampa Field Office; and Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services Office of the Inspector General (HHS-OIG), Miami Regional Office made the announcement.
The FBI and HHS-OIG investigated the case.
Trial Attorneys Catherine Wagner, Patrick Queenan, Meredith Hough, Jamie de Boer, and Keith Clouser of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Three Family Members of the Former Director of the St. Clair Housing Commission Sentenced to Prison for Defrauding HUDRead the Press Release
DETROIT – Three family members of the former executive director of the St. Clair Housing Commission, Lorena Loren, were sentenced today to federal prison after having pleaded guilty to various federal offenses due to their involvement in Loren’s fraudulent scheme to steal money from the Section 8 program of the U.S. Department of Housing and Urban Development (HUD), United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by Machelle L. Jindra, Special Agent in Charge of the U.S. Department of Housing and Urban Development and James Tarasca, Special Agent in Charge, Federal Bureau of Investigation.
Lorena Loren (now deceased) had previously pleaded guilty and been sentenced to 37 months in prison for conspiring with several family members to steal federal funds provided to the St. Clair Housing Commission by HUD to administer low-income housing programs within St. Clair County. As part of her scheme, Loren stole approximately $336,000 in federal funds, including money earmarked for HUD’s Housing Choice Voucher program, commonly known as Section 8 housing, which allows low-income families to lease privately owned rental properties with the assistance of HUD rental subsidies.
Today, the following three family members were sentenced before the Honorable Mark A. Goldsmith:
Brian Loren (Lorena Loren’s husband), age 61, was sentenced to 9 months in prison after pleading guilty to conspiring to commit federal program fraud of approximately $73,000. According to court records, Brian Loren conspired with his wife and others to embezzle money from the St. Clair Housing Commission. Brian Loren and another individual opened a joint bank account at a PNC Bank in Deland, Florida. Between August 2014 and August 2016, fraudulent Section 8 rental subsidy payments were issued to the PNC Joint Account Holder to benefit Lorena Loren, Brian Loren, and the PNC Joint Account Holder.
Ryan Loren (Lorena Loren’s son), age 36, was sentenced to 11 months in prison after pleading guilty to receiving unlawful compensation from HUD with the intent to defraud. Ryan Loren admitted that, from August 2008 through August 2016, he made false statements to HUD regarding where he lived in order to receive improper funds from HUD, and later he lied about it during his testimony before a federal grand jury. Ryan Loren agreed that he illegally received between $40,000 and $95,000.
Kayla Loren (Ryan Loren’s wife and Lorena Loren’s daughter-in-law), age 33, was also sentenced to 11 months in prison after pleading guilty to receiving unlawful compensation from HUD with the intent to defraud. Like her husband, Kayla Loren admitted that, from August 2010 through August 2016, she made false statements to HUD regarding who lived with her in order to receive improper funds from HUD. Kayla Loren admitted that she had also lied about her actions while testifying before a federal grand jury. Kayla Loren also agreed that she received between $40,000 and $95,000.
As required by their plea agreements, the defendants paid the remaining restitution owed to HUD prior to sentencing. The total amount of restitution paid by these three defendants was $99,835.29. For the whole case, $336,340.22 in restitution has been repaid to HUD as a result of the prosecutions of the Loren family.
U.S. Attorney Dawn Ison commended the work of HUD and the FBI in conducting this criminal investigation and said, “The HUD Section 8 program serves some of the neediest in our community, very low-income families, the elderly, and the disabled. We are committed to prosecuting public officials who steal from any federal program and anyone who assists public officials in depriving lawfully-entitled citizens of the vital assistance they need. We are equally committed to prosecuting anyone who lies before a grand jury. Truthful testimony under oath is the foundation of the American system of justice. There will be penalties for those who attempt to erode that foundation.”
"HUD OIG is committed to protecting the integrity of Federal housing programs and bringing justice to those who abuse these programs for personal gain," said Special Agent-in-Charge Machelle Jindra. "We will continue to work with our law enforcement partners to investigate and hold accountable bad actors and protect the programs that HUD beneficiaries rely on."
“Having been trusted to serve the residents of St. Clair as a public official, Lorena Loren instead conspired with her family to steal federal funds for herself and her family, and today that family is admitting their collective role in that criminal scheme,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “This case is yet another example of the FBI’s commitment to rooting out public corruption in order to protect the integrity of the institutions that are supposed to serve the best interests of our citizens.”
The case was originally prosecuted by U.S. Attorney Dawn N. Ison, when she was an Assistant United States Attorney. Today’s sentencing was conducted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.
The case was investigated by agents of U.S. Department of Housing and Urban Development-Office of Inspector General and the Federal Bureau of Investigation.
Texas Woman Indicted for Money Laundering, Bank Fraud, and Identity TheftRead the Press Release
LEXINGTON, Ky. – A Houston woman, Shimea Maret McDonald, 24, has been indicted by a federal grand jury, on one count of conspiracy to commit money laundering, one count of providing fraudulent statements to a federally insured financial institution, and three counts of identity theft.
As alleged in the federal indictment, McDonald conspired with others to engage in business email compromise scams. More specifically, the conspirators targeted business or municipal entities, which had ongoing financial relationships with other vendors who were owed current of future payments by the entities. The conspirators then impersonated the vendors in email communications with the targeted entities and requested wire payments to a new bank account, one opened in the name of Gretson Company LLC. McDonald and her co-conspirators opened three bank accounts under Gretson Company LLC, which was a shell company established in Texas by managing member K.N., whose identity had been stolen. McDonald and her co-conspirators would then attempt to withdraw the funds in a variety of payment methods, to quickly move the funds elsewhere.
The indictment further alleges that, in August 2022, the conspirators impersonated a nonprofit organization having business with the City of Lexington over email and convinced a City official to wire funds owed to the non-profit organization to a bank account at Truist Bank. The City wired a total of $3,905,837.05 to the Gretson Company LLC bank account at Truist Bank. Prior to the August 2022 wire transfer, McDonald, using the identity of K.N., had requested eight counter checks from Truist Bank, which would be funded from wires fraudulently received from the City. Then, when the money was placed in the fraudulent account at Truist Bank, McDonald, using the identity of K.N., attempted to deposit a portion of these funds into another account in the name of Gretson Company LLC, at another financial institution.
Ultimately, Truist Bank and the City of Lexington were able to recover all the funds that were transmitted.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Lawrence Weathers, Chief of the Lexington Police, jointly announced the indictment.
The investigation preceding the indictment was conducted by the FBI and Lexington Police. The case is being prosecuted by Assistant U.S. Attorney Kate Dieruf.
McDonald will appear in Court on Tuesday, February 7 at 10 a.m. She faces up to 20 years on the count of wire fraud; she faces up to 30 years for the count of bank fraud; she faces up to two years, to run consecutively on each count of aggravated identity theft; and she faces judgments for restitution and forfeiture of the property attained through the fraud. However, any sentence following a conviction would be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
Any indictment is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
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Tax preparer who falsified deductions to obtain larger refunds sentencedRead the Press Release
Tacoma – A 53-year-old resident of Graham, Washington, was sentenced today to two months in custody and three months of home detention in U.S. District Court in Tacoma for tax fraud and aiding and assisting with false tax returns, announced U.S. Attorney Nick Brown. Philippe Mbowamba filed 29 tax returns for others and for himself with a tax loss of $141,392. Mbowamba has agreed to make restitution for the full tax loss.
At the sentencing hearing, U.S. District Judge Benjamin H. Settle said “In the U.S., we have a tax system that depends on individuals paying their taxes voluntarily… Not only did you not report your income fully, you also helped others not report their taxes… When tax fraud is widespread, it means that the honest tax payer ends up paying more than their fair share.”
According to the plea agreement, between 2012 and 2019, Mbowamba operated a tax preparation business. An analysis of the returns Mbowamba filed, revealed that he had knowingly claimed fraudulent deductions and tax credits on behalf of many of his clients. Most of the clients were immigrants from Africa who were referred to Mbowamba by other members of the immigrant community. Mbowamba, a naturalized U.S. citizen, had originally immigrated from the Democratic Republic of the Congo. The immigrants trusted Mbowamba and were unaware of the false information on their tax returns.
In addition to false returns for other people, Mbowamba falsified his own return, failing to report more than $56,000 in income for tax year 2014. The tax loss on that one return was $26,531.
Under the terms of the plea agreement, the IRS may still level additional civil tax, penalties, and/or interest. Mbowamba has accepted a permanent injunction, barring him from preparing tax returns for anyone other than himself.
The case was investigated by Internal Revenue Service: Criminal Investigation (IRS:CI).
The case is being prosecuted by Assistant United States Attorney Zachery Dillon.
Statement of U.S. Attorney Damian Williams on the Conviction of Billy OrtegaRead the Press Release
"Billy Ortega ran a drug delivery service that delivered fentanyl, killing three victims on a single day. Worse yet, Ortega was fully aware that a customer had previously overdosed from the deadly fentanyl Ortega laced into his product, yet continued sending the drugs to his victims. As a unanimous jury determined, Ortega will now be held accountable for the victims’ tragic and untimely deaths. This case exemplifies that the national fentanyl epidemic continues to claim lives and inflict havoc on families from all walks of life. Drug dealers don’t label their drugs as poison, they just sell them with indifference to the tragedy left in their wake. Combatting the fentanyl epidemic in our communities is one of my Office’s top priorities."
Standish Man Pleads Guilty to Attempted Transfer of Obscene Material to a MinorRead the Press Release
PORTLAND, Maine: A Standish man pleaded guilty today in U.S. District Court in Portland to the attempted transfer of obscene material to a minor.
According to court records, in March 2022, the Cumberland County Sheriff’s Office received reports that an individual later identified as John Wilson, 36, had engaged in inappropriate conversations with at least two minor children using the internet and social media. In June 2022, Wilson engaged in sexually explicit online chat communications with members of a watchdog group posing as underage girls. During one sexually explicit online chat, Wilson sent photographs of his penis and live-streamed a video of himself masturbating to someone he believed to be an 11-year-old girl.
Wilson faces a maximum of 10 years in prison, a $250,000 fine and up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations and the Cumberland County Sheriff’s Office investigated the case.
Reports of child sexual exploitation are increasing: In 2021, The National Center for Missing & Exploited Children (NCMEC) CyberTipline received 29.3 million reports of suspected child sexual exploitation, an increase of 35% from 2020 and 73% from 2019. From 2019 to 2021, reports of “Online Enticement of Children for Sexual Acts” increased more than 130% while reports of “Unsolicited Obscene Material Sent to a Child” increased 220%. Victimization can take place across every platform, including social media, messaging apps, gaming platforms, etc. To make a CyberTipline Report, visit https://report.cybertip.org/.
Project Safe Childhood: 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 Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
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Sioux City Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine pled guilty January 26, 2023, in federal court in Sioux City.
Linda Fernandez, 69, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine.
At the plea hearing, Fernandez admitted that between May 2022 and July 2022, she and others conspired to distribute methamphetamine in the Sioux City area. On July 15, 2022, law enforcement executed a search warrant on defendant’s apartment, and discovered approximately one pound of methamphetamine, drug distribution materials, marijuana, and over $3,300.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Fernandez remains in custody of the United States Marshal pending sentencing. Fernandez faces a possible maximum sentence of 20 years’ imprisonment, a $1,000,000 fine, and at least three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4055. Follow us on Twitter @USAO_NDIA.
Saudi Arabian National Charged with Interstate Transportation of Stolen School BusRead the Press Release
NEWARK, N.J. – A Saudi Arabian man was charged for transporting a stolen school bus across state lines, U.S. Attorney Philip R. Sellinger announced today.
Bader Alzahrani, 22, of Saudi Arabia, is charged by complaint with one count of receipt of a stolen vehicle and one count of transportation of a stolen vehicle. He is scheduled to make his initial appearance this afternoon U.S. Magistrate Judge Edward S. Kiel in Newark federal court.
According to documents filed in this case and statements made in court:
On Jan. 15, 2023, a break-in was reported in an unoccupied residential home in Livingston, New Jersey. During a search of a backpack in that home, law enforcement saw a Saudi Arabian passport with the name Bader Alzahrani, along with other items that appeared to belong to Alzahrani. On Jan. 17, 2023, the Livingston Board of Education reported that a school bus was stolen from a parking lot across the street from the unoccupied residential home where the break-in was reported. Law enforcement officers located Alzahrani in Stroudsburg, Pennsylvania, and was later found to be in possession of the keys to the stolen school bus.
Each count charged in the complaint is punishable by a maximum penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Sellinger credited special agents of the FBI and task force officers of the Joint Terrorism Task Force, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges. He also thanked agents of the FBI Field Office in Washington, D.C., under the direction of Assistant Director in Charge Steven D’Antuono; members of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Ricky J. Patel; members of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Monroe County, Pennsylvania, Office of the District Attorney, under the direction of District Attorney E. David Christine, Jr.; members of the Livingston Police Department, under the direction of Police Chief Gary Marshuetz; and members of the New Jersey State Police, under the direction of Col. Patrick J. Callahan.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office’s National Security Unit in Newark.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.+
Salem Man Pleads Guilty to Wire Fraud Related to the COVID-19 PandemicRead the Press Release
CONCORD – Michael Rosa, 62, of Salem, pleaded guilty in federal court to wire fraud, First Assistant United States Attorney Jay McCormack announced today.
According to court documents and statements made in court, Rosa defrauded New Hampshire Employment Security (NHES), which administers the unemployment insurance program in New Hampshire.
In March 2020, Congress passed legislation providing additional unemployment benefits to individuals who lost their jobs because of the economic upheaval caused by the coronavirus pandemic. At the time, Rosa controlled several companies located in Plaistow, including Enviromart and KSC Industrial. In late March 2020, Rosa and his co-defendant, George Adyns, directed company employees to file for unemployment benefits with NHES while continuing to work. This caused the unemployment system to effectively pay the employees’ salaries. As a result, NHES paid out almost $50,000 in fraudulently obtained unemployment benefits.
Rosa is scheduled to be sentenced on May 10, 2023.
Adyns previously pled guilty on May 25, 2022 and is scheduled to be sentenced on February 15, 2023.
The case was investigated by the U.S. Defense Criminal Investigative Service, the U.S. Labor Department’s Office of the Inspector General, New Hampshire Employment Security and the New Hampshire Attorney General’s Office with assistance from the U.S. Naval Criminal Investigative Service. The case is being prosecuted by Assistant United States Attorneys Matthew T. Hunter and Alexander S. Chen.
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Rock Port Man Pleads Guilty to Distributing Fentanyl That Caused Fatal OverdoseRead the Press Release
KANSAS CITY, Mo. – A Rock Port, Mo., man pleaded guilty in federal court today to selling fentanyl to another Atchison County, Mo., man that resulted in his fatal overdose.
Quentin W. Carder, 23, pleaded guilty before U.S. District Judge Howard F. Sachs to one count of conspiracy to distribute fentanyl and cocaine, which caused the death of another person, and one count of distributing fentanyl and cocaine, which caused the death of another person.
By pleading guilty today, Carder admitted that he distributed four blue pills that appeared to be oxycodone, but which were counterfeit and actually contained fentanyl, to a person identified in court documents as “C.L.” on June 18, 2021. Carder had previously supplied C.L. with cocaine.
In the early hours of June 20, 2021, C.L. used one of the fentanyl pills he obtained from Carder. Later that morning, C.L.’s father found him in his bedroom, unresponsive and in medical distress. C.L. was transported to a hospital for medical attention but eventually succumbed and was pronounced dead on June 22, 2021. According to today’s plea agreement, a forensic toxicologist concluded that C.L. would not have died but for acute intoxication of fentanyl.
Under federal statutes, Carder is subject to a mandatory minimum sentence of 20 years in federal prison without parole, up to a sentence of life 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. Attorney Byron H. Black. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol, and the Atchison County, Mo., Sheriff’s Department.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Reliance Laboratories manager admits to lying about testing public waterRead the Press Release
CLARKSBURG, WEST VIRGINIA – The co-owner and manager of Reliance Laboratories, Inc., in Bridgeport, West Virginia, has admitted to violating the Safe Drinking Water Act and the Clean Water Act.
According to court documents, Tenley Megan Miller, 42, of Bridgeport, was the owner of Reliance Laboratories, Inc., a company that purportedly tested public drinking water samples submitted to it pursuant to the Safe Drinking Water Act. In May 2021, the City of Martinsburg sent water samples to Miller’s laboratory for testing and Miller reported that she tested the samples and found them to be safe. Investigators then discovered that Miller did not test the samples because her laboratory equipment was not operational. The City of Martinsburg unwittingly reported the false test results to the State of West Virginia pursuant to U.S. Environmental Protection Agency regulations.
Miller pleaded guilty today to making a false representation in a matter within the jurisdiction of the Environmental Protection Agency. She faces up to five years in prison and a fine of no more than $250,000.
“The defendant in this case knowingly submitted falsified water analysis results, jeopardizing the health and safety of the impacted communities,” said Special Agent in Charge Nic Evans of EPA's Office of Inspector General. “Today’s guilty plea demonstrates the Environmental Protection Agency Office of Inspector General’s commitment to holding accountable those who attempt to undermine the laws designed to protect the safety of the public’s drinking water supply.”
“The defendant in this case had knowingly falsified vital analysis results jeopardizing drinking and wastewater operations.” Said Acting Special Agent in Charge Richard Conrad of EPA’s Criminal Investigation Mid Central Area Branch, Chicago, IL. “The defendant will be held accountable for their actions because they placed several communities and businesses at risk.”
The Environmental Protection Agency Office of Inspector General and the Environmental Protection Agency Criminal Investigations Department investigated.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Michael John Aloi presided.
Quincy, Illinois Woman Sentenced to 48 months in Prison for Distribution of MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois woman, Kristin Washington, 37, of the 4000 block of State Street in Quincy, Illinois, has been sentenced by United States District Judge Sue Myerscough to 48 months in federal prison, to be followed by a 4-year term of supervised release, for distributing methamphetamine in Quincy, Illinois.
Washington was indicted in October 2021 and pleaded guilty in September 2022. She has remained in the custody of the United States Marshal since her arrest in June 2022.
The statutory penalties for distributing methamphetamine are up to 40 years imprisonment, not more than a $5,000,000 fine, not less than 4 years and up to life of supervised release, and a $100 special assessment.
The Federal Bureau of Investigation, Springfield Division, Illinois State Police, and Quincy Police Department investigated the case. Assistant United States Attorney Matthew Z. Weir represented the government in the prosecution.
The case against Washington 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.
Prince William Drug Dealer Sentenced for Causing Multiple OverdosesRead the Press Release
ALEXANDRIA, Va. – A Dumfries man was sentenced today to 30 years in prison for distribution of fentanyl resulting in death and serious bodily injury, and possession with the intent to distribute fentanyl.
According to court documents, on September 21, 2021, Michael Vaughn, 28, distributed cocaine laced with fentanyl at a party at an apartment in the Skyline area of Fairfax County. Six individuals took the substance, believing it to be cocaine. All six suffered overdoses and were transported to area hospitals. Five of the overdose victims were able to be saved by the administration of Narcan. However, the sixth individual died as a result of a fentanyl overdose. At trial, the evidence showed that Vaughn had intentionally added fentanyl to the cocaine. Additionally, Vaughn possessed approximately 60 additional grams of fentanyl powder at his residence when he was arrested on October 20, 2021.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston.
Significant assistance was provided by the Prince William County Police Department.
Assistant U.S. Attorneys Rachael C. Tucker and Michael P. Ben’Ary prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-261.
Pocatello Man Sentenced to 80 Years in Federal Prison for Producing and Possessing Child PornographyRead the Press Release
POCATELLO – Shawn Chase Cody, 41, of Pocatello was sentenced to 960 months in federal prison for production and possession of child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records, in August, 2019, law enforcement received an investigative lead that Cody sexually abused multiple children for the past six years. Law enforcement learned from the victims that Cody possessed videos of these acts on his phone and computer.
Cody was later arrested after his home was searched and the child pornography he produced was found on his devices. Also found in his possession were 2,259 still images and 53 videos of child pornography that he downloaded on the Internet.
“Today’s sentence, which is effectively a life sentence, should send a message that my office and our law enforcement partners will aggressively prosecute predators who prey upon children,” said U.S. Attorney Hurwit. “While nothing can fully repair the damage done by the defendant, I hope that this sentence provides a measure of peace to the brave victims in this case.”
“This 80 year sentence serves as notice to Idaho communities that HSI agents will use every investigative tool available to stop child predators like Mr. Cody,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “The perpetual vigilance of both the community and law enforcement will remain necessary pieces in the fight against anyone who may try to exploit children.”
Senior U.S. District Judge Billy Roy Wilson from the Eastern District of Arkansas also ordered Cody to serve a lifetime of supervised release following his prison sentence. Cody pleaded guilty to the charges on October 7, 2021.
U.S. Attorney Hurwit thanked Homeland Security Investigations (HSI) in Idaho Falls and the Bannock County Sheriff's Office for their cooperative efforts that led to the charges.
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 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.justice.gov/psc.
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Peoria Man Sentenced to 120 Months in Prison for Possession with the Intent to Distribute MethamphetamineRead the Press Release
PEORIA, Ill. – A Peoria, Illinois man, Robert Lee Ford, 38, of the 700 block of South Helen Street, has been sentenced to 120 months in the Bureau of Prisons, to be followed by five years of supervised release, for possession with intent to distribute methamphetamine.
At the sentencing hearing before U.S. District Judge Joe B. McDade, the government presented evidence that on May 10, 2022, Ford sold 100.6 grams of methamphetamine that tested 90% pure. On May 30, 2022, DEA and Peoria Police continued surveillance on Ford, who parked his vehicle at a gas station on Lincoln Avenue in Peoria. When Ford entered the gas station, officers approached his vehicle and saw a large bag of suspected methamphetamine sitting in the center console. Officers arrested Ford at the gas station counter and located $2,500 cash in his wallet. Following the arrest, officers recovered a clear plastic baggie from Ford’s car containing 111.9 grams of methamphetamine that tested 81% pure.
Ford was indicted in June 2022 and pled guilty in September 2022. He has remained in the custody of the U.S. Marshals since his arrest.
The statutory penalties for possession of methamphetamine with intent to distribute are 10 years to life imprisonment and a possible $10 million dollar fine, followed by five years to life of supervised release.
The investigation was led by the Drug Enforcement Administration (DEA) and the Peoria Police Department. Assistant United States Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Ford 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.
Pauls Valley Man Sentenced to Serve Five Years in Federal Prison for Involuntary Manslaughter from Collision Causing Deaths of Two ChildrenRead the Press Release
OKLAHOMA CITY – Today, WILLIAM AARON DAVID PATCHELL, 26, of Pauls Valley, Oklahoma, was sentenced to serve sixty months in federal prison for involuntary manslaughter in Indian country, announced United States Attorney Robert J. Troester.
Public record reflects that in July of 2019, Patchell was driving on a country road at more than twice the posted speed limit when he hit a family vehicle. The collision resulted in the deaths of two children, the premature birth of a third child, and extensive injuries to two adults. An investigation by the Oklahoma Highway Patrol (OHP) determined Patchell’s vehicle was travelling more than 80 miles per hour just before the collision. Based on the evidence collected, OHP determined Patchell’s speed caused the collision.
Patchell was initially charged in Garvin County District Court with two counts of Manslaughter in the First Degree, but the case was dismissed pursuant to McGirt v. Oklahoma on September 7, 2021.
On November 2, 2021, a federal grand jury returned a two-count indictment against Patchell for involuntary manslaughter. The case was prosecuted in federal court because the victims were members of a federally recognized Indian tribe and the crime occurred within the boundaries of the Chickasaw Nation, and within the Western District of Oklahoma.
On April 8, 2022, Patchell pleaded guilty to a one-count information charging him with involuntary manslaughter for causing the death of the two child victims.
Patchell was sentenced today to serve sixty months in federal prison by U.S. District Judge Patrick R. Wyrick. Judge Wyrick also ordered that upon release from prison, Patchell must serve three years of supervised release.
This case was a result of an investigation by the FBI Oklahoma City Field Office and the Oklahoma Highway Patrol. Assistant U.S. Attorney Tiffany Noble prosecuted the case.
Reference is made to court filing for further information.
Palm Beach County Man Pleads Guilty to Million Dollar COVID Relief Fraud SchemeRead the Press Release
Fort Myers, Florida – United States Attorney Roger B. Handberg announces that Al Clint LaRoche (43, West Palm Beach) today pleaded guilty to two counts of bank fraud. He faces a maximum penalty of 30 years in prison for each count. A sentencing date has not yet been set.
According to the plea agreement, between April 2020 and April 2021, LaRoche submitted false and fraudulent First Draw and Second Draw Paycheck Protection Program (PPP) loan applications to a financial institution through a financial services and technology company based in Naples for his business – Bornwild, LLC. The loan applications contained numerous false representations and certifications, including Bornwild’s average monthly payroll, number of employees, and that the loan funds would be used for authorized purposes.
In addition, to qualify for each PPP loan, and in support of his fraudulent loan applications, LaRoche submitted fake and fictitious quarterly federal tax returns (IRS Form 941s) for Bornwild that contained false representations about the business’s quarterly payroll expenses. LaRoche’s false and fraudulent representations caused the PPP lender to approve and fund a First Draw and Second Draw PPP loan, resulting in the deposit of approximately $1,078,652.50 into bank accounts LaRoche controlled. LaRoche then unlawfully used the funds for unauthorized purposes and for his own personal enrichment, including the purchase of a Mercedes Benz SUV, jewelry, hotel and travel stays, various retail purchases, and more than $350,000 in cash withdrawals.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Trent Reichling.
New Orleans Man Charged by Federal Grand Jury for Alleged Possession of Approximately 100 Machine Gun Conversion DevicesRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that KODY SEVERIN, age 25, a resident of New Orleans, Louisiana, was charged on January 26, 2023 in a seven-count indictment by a federal grand jury for violations of the Federal Gun Control Act and the Federal Controlled Substances Act, and for attempted obstruction of justice.
SEVERIN is charged in Count 1 with possession with intent to distribute marijuana, in violation of Title 21, United States Code, Sections 841(a)(1) and (b)(1)(D). In Count 2, SEVERIN is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). In Count 3 and Count 6, SEVERIN is charged with possession of firearms by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). Count 4 changes SEVERIN with the possession of approximately 100 machineguns, that is, multiple types of machinegun conversion devices, which qualify as “machineguns” under Title 26, United States Code, Section 5845(b), in violation of Title 18, United States Code, Section 922(o). Count 5 charges SEVERIN with possession of unregistered firearms, including silencers, destructive devices, and approximately 100 machinegun conversion devices, in violation of Title 26, United States Code, Section 5861(d). Count 7 charges SEVERIN with attempting to obstruct justice in violation of Title 18, United States Code, Section 1512(b)(1).
If convicted of Count 1, SEVERIN faces a maximum sentence of 5 years imprisonment, up to a $250,000 fine, and at least 2 years of supervised release . If convicted of Count 2, SEVERIN faces a mandatory minimum sentence of 5 years up to life imprisonment, which is to run consecutively to all other sentences, up to a $250,000 fine, and up to 5 years of supervised release . If convicted of Count 3 or Count 6, SEVERIN faces a maximum term of imprisonment of 15 years, up to a $250,000 fine, and up to 3 years of supervised release. If convicted of Count 4, SEVERIN faces a maximum term of imprisonment of 10 years, up to a $250,000 fine, and up to 3 years of supervised release. If convicted of Count 5, SEVERIN faces a maximum term of imprisonment of 10 years, up to a $10,000 fine, and up to 3 years of supervised release. If convicted of Count 7, SEVERIN faces a maximum term of imprisonment of 20 years, up to a $250,000 fine, and up to 3 years of supervised release. For each count, SEVERIN also faces the payment of a $100 mandatory 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 New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant United States Attorney David Haller of the Violent Crime Unit of the U.S. Attorney’s Office.
Mill Valley Man Sentenced to More Than Three Years for Unlicensed Firearms TraffickingRead the Press Release
SAN FRANCISCO – James William Palmer was sentenced today to 37 months in federal prison for dealing firearms without a license, announced United States Attorney Stephanie M. Hinds and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Acting Special Agent in Charge Joshua E. Jackson. The sentence was handed down by United States District Judge James Donato.
Palmer, 38, of Mill Valley, pleaded guilty on August 15, 2022. In his plea agreement, he admitted that from May 2020 to January 2021 he engaged in the business of manufacturing and selling firearms. He acknowledged that he ran the business for profit and without a license, knowing it was unlawful to do so. Palmer described that he manufactured firearms at his Mill Valley home, where he maintained an area in his garage for firearms manufacturing and had on hand numerous tools and parts necessary to do so. He admitted in his plea agreement that he also sold marijuana during this time period.To run his firearm business, Palmer communicated with buyers and sellers of firearms via text messages in which firearm prices, meeting places for transactions, and amounts owed were discussed. He utilized a white board to write down customer names and numbers along with amounts owed or paid by customers. As an example of his firearms sales, Palmer described in his plea agreement his October 2020 sale of a Glock 17 semi-automatic pistol to a customer for $780.
Palmer also described that on January 27, 2021 – the day of his arrest – he was driving his car and had a loaded Glock Model 26 .45 ACP caliber semi-automatic pistol in the car, with two loaded .45 caliber magazines in the center console and ammunition in his pants pocket. He bought the Glock pistol for $900 at a gun show, paying a higher price to avoid paperwork and to get the handgun immediately.
Palmer further admitted that on the day of his arrest he had multiple firearm receivers in various stages of handgun construction in his garage. In a memo filed for the sentencing hearing, the government described that Palmer had 71 items connected to firearms manufacturing and dealing at his Mill Valley residence. In addition to the firearm receivers, Palmer had privately manufactured firearm (PMF) jigs, firearms parts, assorted ammunition, a Glock pistol frame with its serial number plate removed, standard and high-capacity magazines for various calibers, and multiple tools for firearms manufacturing. Palmer also had a loaded P80 .45 caliber Glock-style semi-automatic handgun in the garage.
The government also described some of the texts in which Palmer communicated with firearms buyers and sellers about prices, locations for exchanges, and amounts owed. In one text, Palmer said, “What about getting that 17 so I can resume business? I got 6 people waiting.” In another, Palmer wrote that he had been dealing in firearms in Marin County “for 20 years off and on.”
In addition to the 37 months imprisonment, U.S. District Judge Donato imposed three years of supervision for Palmer following his release from prison. Palmer was ordered to surrender on February 6, 2023, to begin serving his sentence.
Assistant U.S. Attorneys Ilham A. Hosseini and Alexis J. James prosecuted the case with the assistance of Maribel Gallegos. The prosecution is the result of an investigation by ATF and the Marin County Sheriff’s Office.
This case follows the U.S. Department of Justice’s launch in five key regions of Cross-Jurisdictional Firearms Trafficking Strike Forces that are focused on disrupting illegal firearms trafficking. One of the five Strike Forces was launched here, in the San Francisco Greater Bay Area and Sacramento Region. The Strike Force identifies sources of illegally trafficked firearms and disrupts straw purchasing as well as firearms trafficking networks by collaborating in cross-jurisdictional efforts that include multiple federal agencies and multiple states and their local law enforcement agencies.
Michigan Man Convicted on Charges of Providing Material Support to ISISRead the Press Release
DETROIT – A Dearborn resident was convicted by a federal jury today in the Eastern District of Michigan on charges of providing and conspiring to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, and attending an ISIS training camp.
The convictions were announced by Assistant Attorney General for National Security Matthew G. Olsen, U.S. Attorney Dawn N. Ison of the Eastern District of Michigan, and James A. Tarasca, Special Agent in Charge of the Detroit, Michigan, office of the Federal Bureau of Investigation.
Ibraheem Izzy Musaibli, 32, of Dearborn, Michigan, was convicted after a 9-day trial conducted before United States District Judge David M. Lawson in Detroit. The jury deliberated less than 4 hours before returning their guilty verdicts.
Musaibli, a natural-born U.S. citizen, was convicted on charges of providing and attempting to provide material support to ISIS, conspiring to provide material support to ISIS, and attending an ISIS training camp.
Evidence provided during the trial established that Musaibli, born in Detroit, began looking into ISIS while in Michigan in 2015. He then traveled to Yemen in April 2015 and continued to research ISIS—including downloading ISIS propaganda and an ISIS book on how to get into Syria. From Yemen, he traveled to Syria in the fall of 2015 where he attended an ISIS-run religious training camp before undergoing ISIS military training where he learned to shoot, carry, and otherwise handle an AK-47 assault rifle. Upon graduation from the ISIS military training camp, Musaibli swore allegiance to ISIS and its leader. Musaibli remained with ISIS for over two and a half years. Musaibli was eventually apprehended by Syrian Democratic Forces in 2018, turned over to the FBI, and flown back to the United States to face terrorism charges.
Musaibli faces a statutory maximum penalty of 50 years in prison when he is sentenced on May 11, 2023.
“Ibraheem Musaibli traveled halfway around the world and joined a vicious, brutal, and violent terrorist organization known—and proud of—its barbaric acts of terror,” said U.S. Attorney Dawn N. Ison. “Today’s verdicts highlights the dedication of this office, along with our law enforcement partners, in pursuing anyone who poses a danger to the United States—no matter where they are located.”
“This defendant willingly traveled to Syria, joined ISIS, and attended a terrorist training camp,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Today’s verdict demonstrates to anyone who would seek to contribute to ISIS’s terrorist activities that the FBI’s Joint Terrorism Task Force will be unwavering in its mission to protect the American people by identifying, disrupting, and bringing them to justice.”
This case was investigated by the FBI’s Joint Terrorism Task Force. The case is being prosecuted by Assistant U.S. Attorneys Hank Moon and Michael Martin of the Eastern District of Michigan with assistance from the National Security Division’s Counterterrorism Section.
Maryland Man Sentenced to 10 Years in Prison for Trafficking Narcotics into Southeastern ConnecticutRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that KAREEM SWINTON, also known as “K,” 41, last residing in Owings Mills, Maryland, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 120 months of imprisonment, followed by six years of supervised release, for narcotics trafficking offenses.
According to the evidence presented during a trial last year, in 2018, the FBI, the Norwich Police Department and other law enforcement agencies began investigating a narcotics trafficking organization that was operating in southeastern Connecticut. The investigation, which included court-authorized wiretaps and controlled purchases of crack, revealed that Swinton, who formerly resided in Norwich, regularly traveled to Connecticut and other states to supply co-conspirators with narcotics, primarily cocaine and crack. Swinton’s co-coconspirators in Connecticut distributed the drugs in the Norwich area.
On August 3, 2022, a jury found Swinton guilty of one count of conspiracy to possess with intent to distribute, and to distribute, cocaine and cocaine base (“crack”), and one count of possession with intent to distribute, and distribution of, a controlled substance.
Ten other individuals were convicted of narcotics trafficking offenses stemming from this investigation.
Swinton has been detained in federal custody since February 21, 2019.
Swinton’s criminal history includes a prior federal conviction for trafficking cocaine and crack. In June 2008, Swinton was arrested by the Texas Highway Patrol after he was found in possession of approximately two kilograms of cocaine and more than two pounds of marijuana that he was transporting from Arizona to Connecticut. In August 2009, he was sentenced in Bridgeport federal court to 100 months of imprisonment for that offense.
This investigation was conducted by the Federal Bureau of Investigation, the Connecticut State Police, and the Norwich, Town of Groton, and Waterford Police Departments, with the assistance of the FBI’s Baltimore Field Office, the Baltimore Police Department, and the Delaware State Police. The case was prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Marc H. Silverman through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts, and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Marina del Rey Man Sentenced to More Than 3½ Years in Prison for Stealing Decedents’ Identities to Gain Access to Their Bank AccountsRead the Press Release
LOS ANGELES – A Marina del Ray man was sentenced today to 45 months in federal prison for stealing the identities of a married couple who had died days earlier and then using them to unlawfully gain access to their bank accounts, credit cards, and retirement accounts, fraudulently obtaining more than $137,000 in the process.
Kristopher Brent Cobb, 41, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $137,573 in restitution. At today’s hearing, Judge Walter said that Cobb’s crimes had caused “immense grief” to the married couple’s surviving child.
Cobb pleaded guilty in August 2022 to one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
On September 11, 2019, a man identified in court documents as “Victim 1” murdered Victim 2 (his wife) and Victim 3 (their son), attempted to kill Victim 4 (their daughter), and then committed suicide.
Two days later, Cobb, having read news coverage of the murder-suicide, created two fraudulent email addresses – one in Victim 1’s name and the other in Victim 2’s name. Cobb then used Victim 1’s cellphone number and requested that Capital One Bank add him as an authorized user of Victim 1’s credit card. On September 28, 2019, Cobb – using Victim 1’s Capital One Bank credit card in his own name – attempted to withdraw approximately $8,566 from an ATM in Los Angeles.
On October 2, 2019, while at a cellphone store in Alhambra, Cobb impersonated Victim 1 and entered into a sales agreement in Victim 1’s name for a cellphone with Victim 2’s phone number and used Victim 1’s Citibank credit card to make an unauthorized purchase for $124.
Two days later, Cobb called Barclays Bank using Victim 1’s cellphone number and requested that it send a replacement of Victim 1’s Barclays credit card to a post office box in Woodland Hills, which an accomplice had opened in Victim 1’s name after Victim 1’s death. In November 2019, Cobb used a key to open the post office box and took possession of its contents.
In total, Cobb caused losses of approximately $146,139, including approximately $122,488 in losses from unauthorized transfers from Victim 1 and Victim 2’s TD Ameritrade account to purchase gold shipped to addresses in the Los Angeles area.
Cobb also in late October 2019 made approximately $16,450 in unauthorized purchases and attempted ATM cash withdrawals using various credit cards in Victim 1’s name, including purchases in California and Puerto Rico.
Finally, Cobb made approximately $3,200 in unauthorized transfers from Victim 1’s Chase Bank savings account to Victim 1’s Chase Bank checking account to fund an unauthorized check.
“[Cobb’s] predation upon Victims 1 and 2 was not only to plunder the estate of Victims 1 and 2, but was perpetrated upon Victim 4 at the most difficult and complicated moment of her life,” prosecutors argued in a sentencing memorandum. “[Cobb’s] crimes were grotesque.”
The United States Secret Service investigated this matter.
Assistant United States Attorneys Roger A. Hsieh and Valerie L. Makarewicz of the Major Frauds Section prosecuted this case.
Man Pleads Guilty to Federal Firearm and Drug Trafficking Charges Stemming from Shootout at New Orleans HotelRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today, that MALIK FERNANDEZ, age 23, from New Orleans, pled guilty on January 24, 2023 to various firearm and drug charges. His guilty plea stems from his participation in a December 28, 2020, shootout at the Jung Hotel on Canal Street.
Earlier this year, a federal grand jury handed down two related indictments charging a total of nine individuals with various violations of the Federal Gun Control and Federal Controlled Substances Acts for their participation in this shootout. Today, FERNANDEZ pled guilty to Counts 1, 2, 3, and 4 of the indictment, charging him with conspiracy to possess firearms in furtherance of a drug trafficking crime (Count 1); using, carrying and discharging a firearm during and in relation to a drug trafficking crime (Count 2); conspiracy to possess with the intent to distribute marijuana (Count 3); and illegally maintaining a drug involved premises (Count 4).
FERNANDEZ will be sentenced on May 2, 2023. Based on his guilty plea he will face the following sentences:
For Count 1, he will face a maximum sentence of 20 years in prison, not more than 3 years of supervised release, and not more than a $250,000.00 fine, pursuant to Title 18, United States Code, Sections 924(o) and 3583.
For Count 2, he will face a mandatory minimum of 10 years and a maximum of life in prison, not more than 5 years of supervised release, and a fine of not more than $250,000.00, pursuant to Title 18, United States Code, Section 924(c). Any prison sentence imposed in connection with this count must be served consecutively to any other prison sentence imposed in connection with this case, in accordance with Title 18, United States Code, Sections 924(c), 2, and 3583.
For Count 3, he will face a maximum sentence of 5 years in prison, up to two years of supervised release, and not more than a $250,000.00 fine, pursuant to Title 21, United States Code, Section 841 (b)(1)(D); and
For Count 4, he will face a sentence of not more than 20 years in prison, a fine of not more than $500,000.00 and not more than 3 years of supervised release, in accordance with Title 18, United States code, Section 3583.
Each count also carries a mandatory special assessment fee of $100.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the New Orleans Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Maurice Landrieu and Elizabeth Privitera are in charge of the prosecution.
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Man Sentenced to 32 Months for Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that Julio Soto Robles, 34, of Puerto Rico, was sentenced on Friday, January 27, 2023, to 32 months’ imprisonment followed by four years of supervised release for possession with intent to distribute 735 grams of cocaine.
On August 24, 2022, Soto Robles pleaded guilty to possession with intent to distribute cocaine. According to court records, on August 18, 2020, Soto Robles and a co-traveler, Gregory Vega, arrived at the Cyril E. King Airport from Puerto Rico with no luggage. During a primary inspection by Customs and Border Protection (CBP), Soto Robles was found to be in possession of approximately $11,000 in U.S. currency. Soto Robles told CBP officers that the money was to pay for the surgery of a relative named Rafaela. Soto Robles further stated that he never met this relative and only knew her as “Tia Abuela.” On August 20, 2020, Soto Robles and his co-traveler returned to the Cyril E. King airport and attempted to board a flight to Puerto Rico. During secondary inspection, CBP officers searched a suitcase that the two men were carrying and discovered three separate bundles of cocaine.
The case was investigated by Customs and Border Protection and Homeland Security Investigations. It was prosecuted by Assistant U.S. Attorney Kyle Payne.
Leader of Drug Delivery Service Responsible for Three Fentanyl Poisoning Deaths ConvictedRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of BILLY ORTEGA, a/k/a “Jason,” for distributing the fentanyl that killed three young New York City professionals: Julia Ghahramani, Amanda Scher, and Ross Mtangi. The jury convicted ORTEGA following a two-week trial before U.S. District Judge Ronnie Abrams.
U.S. Attorney Damian Williams said: “Billy Ortega ran a drug delivery service that delivered fentanyl, killing three victims on a single day. Worse yet, Ortega was fully aware that a customer had previously overdosed from the deadly fentanyl Ortega laced into his product, yet continued sending the drugs to his victims. As a unanimous jury determined, Ortega will now be held accountable for the victims’ tragic and untimely deaths. This case exemplifies that the national fentanyl epidemic continues to claim lives and inflict havoc on families from all walks of life. Drug dealers don’t label their drugs as poison, they just sell them with indifference to the tragedy left in their wake. Combatting the fentanyl epidemic in our communities is one of my Office’s top priorities.”
According to the allegations in the Indictment and the evidence presented at trial:
From at least in or about 2015 to at least in or about February 2022, BILLY ORTEGA was the leader of a narcotics delivery service in the New York City area that principally distributed cocaine. ORTEGA used his mother’s apartment in Manhattan as his stash house, employing family members and close friends to manage his drugs and cash and to deliver his drugs to customers. In order to protect his drug business, ORTEGA supplied the guns that were kept at the stash house. Over a span of years, ORTEGA ran his drug delivery service over text message, acting as the central contact who, like a dispatcher, coordinated drug deliveries by texting his couriers and his customers.
In the course of a single day – March 17, 2021 – ORTEGA delivered, through one of his couriers, fentanyl-laced cocaine to Ghahramani, Mtangi, and Scher at three separate locations in Manhattan. All three victims died after consuming the drugs distributed by ORTEGA.
On the day of the three poisonings – and prior to the fentanyl being delivered to any of the three victims – ORTEGA received the following text message from a different customer warning ORTEGA that his drugs had almost killed someone else. Specifically, at approximately 2:29 p.m. on March 17, 2021, that other customer sent ORTEGA the following text message: “Hey man. Just on a follow up from yesterday - I gave most of my last bag to my buddy and he just called me this second to say he ended up in hospital last night. [. . .] He had to get a Narcan shot and was released in the early hours.”[1] ORTEGA read this text message prior to coordinating the three deliveries of the drugs, from the same fentanyl-tainted batch of cocaine, that killed the three victims in this case.
Later that night on March 17, 2021, after the victims had stopped responding to ORTEGA’s text messages, ORTEGA offered the fentanyl-tainted batch of cocaine to another drug dealer so he could test it out on “some girls.” Specifically, at approximately 10:25 p.m. on March 17, 2021, ORTEGA texted the drug dealer: “If you[’re] going to be around way let me know have some every one is saying it’s to[o] Strong . . . Give it to some girls and you let me know lol bro.”
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BILLY ORTEGA, 35, of West Milford, New Jersey, was convicted of one count of narcotics conspiracy resulting in death, three counts of narcotics distribution resulting in death, and one count of use and carrying of a firearm in furtherance of the narcotics conspiracy. The charges carry a mandatory minimum sentence of 25 years in prison and a maximum sentence of life in prison.
The statutory minimum and maximum penalties 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 New York City Police Department (“NYPD”), the Organized Crime Drug Enforcement Task Forces (“OCDETF”) New York Strike Force, and the New York/New Jersey High Intensity Drug Trafficking Area (“HIDTA”) Intelligence Analysts for their support and assistance in this matter.
This investigation was conducted by the OCDETF New York Strike Force in partnership with the Drug Enforcement Administration’s (“DEA”) law enforcement partners. The OCDETF New York Strike Force comprises federal, state, and local law enforcement agencies supported by OCDETF and the New York/New Jersey High Intensity Drug Trafficking Area. The Strike Force is affiliated with the DEA’s New York Division and includes agents and officers of the DEA, NYPD, New York State Police, Homeland Security Investigations, U.S. Internal Revenue Service Criminal Investigation Division, Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Customs and Border Protection, U.S. Secret Service, U.S. Marshals Service, New York National Guard, Clarkstown Police Department, U.S. Coast Guard, Port Washington Police Department, and New York State Department of Corrections and Community Supervision.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Micah F. Fergenson, Michael R. Herman, and Robert B. Sobelman, with the assistance of Analyst Kelsey Opozda and Paralegal Specialists Alex Frenchman and Christine Woods, are in charge of the prosecution.
[1] “Narcan” is an opiate blocker, used to counteract the deadly effects of drugs like fentanyl.
Kentucky Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Melvin Theophilius Hill, 38, of Ashland, Kentucky, was sentenced today to five years and four months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on May 2, 2022, law enforcement officers conducted a traffic stop of a vehicle driven by Hill near 13th Street and Ninth Avenue in Huntington. Officers searched the vehicle and found a loaded FN 509 9mm handgun in the passenger seat rear pocket. Hill admitted to possessing the firearm and placing it where officers found it during the search.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Hill knew he was prohibited from possessing a firearm because of his prior felony convictions in Boyd County, Kentucky, Circuit Court for second-degree robbery on May 9, 2008, and first-degree possession of a controlled substance on January 12, 2011.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-134.
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Justice Department Announces Settlement with Logan Square Aluminum Supply over Lead ViolationsRead the Press Release
Today, the Justice Department and U.S. Environmental Protection Agency (EPA) announced a settlement with Logan Square Aluminum Supply Inc., resolving alleged violations of the federal Lead Renovation, Repair and Painting regulations, known as the RRP rule, at renovation projects Logan Square and its contractors performed in Chicago and Chicago suburbs.
Under the court settlement, Logan Square will implement a comprehensive program to ensure that its contractors are certified and trained to use lead-safe work practices to avoid creating lead dust during home renovation activities. Under a parallel administrative settlement agreement, Logan Square will also pay a $400,000 penalty, and perform $2 million of lead-based paint abatement work in lower-income properties located in Chicago and Chicago suburbs in communities with a higher incidence of childhood lead poisoning.
“Companies that renovate homes built before 1978 must ensure that they hire EPA-certified contractors and follow other EPA rules requiring lead safe work practices,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will take aggressive action against companies that do not take these important steps.”
“Lead exposure from lead-based paint continues to be a hazard for American families living in older homes, and children in those homes are particularly vulnerable,” said Larry Starfield, EPA Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance. “This settlement requires Logan Square Aluminum Supply, Inc. to take necessary steps to ensure that it meets appropriate safety requirements in future renovation projects that may disturb lead-based paint.”
Renovation is any activity that disturbs painted surfaces and includes most repair, remodeling, and maintenance activities, such as electrical work, plumbing, carpentry and window replacement. Both Logan Square and its contractors are responsible for compliance with the RRP rule to protect the health and safety of families, especially children under the age of six who are most susceptible to lead hazards. For these projects, Logan Square must contract with only EPA-certified firms and renovators, ensure they maintain certification, use lead-safe work practices, and document their work with checklists during renovations.
Logan Square will add a link on its website to EPA’s content on lead-safe work practices. In addition, Logan Square will take action to respond to situations where a contractor is not operating in compliance with the RRP rule; investigate all reports of potential noncompliance; and ensure that any violations are corrected and reported to EPA.
EPA first discovered the alleged violations through customer complaints about a project performed in Evanston, Illinois. EPA learned that Logan Square frequently subcontracted work to uncertified firms and did not use lead-safe work practices, perform required post-renovation cleaning, provide the EPA-required lead-based paint pamphlets to occupants, or establish records of compliance. Logan Square also conducts business under other names, including Climate Guard Thermal Products Co. and Studio 41.
The consent decree was lodged in the U.S. District Court for the Northern District of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. View the consent decree here.
Further information is available from the National Lead Information Center (800-424-LEAD) and online at www.epa.gov/lead. Available resources include additional information about the RRP program; information for contractors and property managers about program requirements; and downloadable lead-safety education materials.
To report a possible violation of the RRP Rule requirements, please visit EPA’s website.
Justice Department Announces Settlement with Logan Square Aluminum Supply over Lead ViolationsRead the Press Release
WASHINGTON – Today, the Justice Department and U.S. Environmental Protection Agency (EPA) announced a settlement with Logan Square Aluminum Supply Inc., resolving alleged violations of the federal Lead Renovation, Repair and Painting regulations, known as the RRP rule, at renovation projects Logan Square and its contractors performed in Chicago and Chicago suburbs.
Under the court settlement, Logan Square will implement a comprehensive program to ensure that its contractors are certified and trained to use lead-safe work practices to avoid creating lead dust during home renovation activities. Under a parallel administrative settlement agreement, Logan Square will also pay a $400,000 penalty, and perform $2 million of lead-based paint abatement work in lower-income properties located in Chicago and Chicago suburbs in communities with a higher incidence of childhood lead poisoning.
“Companies that renovate homes built before 1978 must ensure that they hire EPA-certified contractors and follow other EPA rules requiring lead safe work practices,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will take aggressive action against companies that do not take these important steps.”
“Lead exposure from lead-based paint continues to be a hazard for American families living in older homes, and children in those homes are particularly vulnerable,” said Larry Starfield, EPA Acting Assistant Administrator for the Office of Enforcement and Compliance Assurance. “This settlement requires Logan Square Aluminum Supply, Inc. to take necessary steps to ensure that it meets appropriate safety requirements in future renovation projects that may disturb lead-based paint.”
Renovation is any activity that disturbs painted surfaces and includes most repair, remodeling, and maintenance activities, such as electrical work, plumbing, carpentry and window replacement. Both Logan Square and its contractors are responsible for compliance with the RRP rule to protect the health and safety of families, especially children under the age of six who are most susceptible to lead hazards. For these projects, Logan Square must contract with only EPA-certified firms and renovators, ensure they maintain certification, use lead-safe work practices, and document their work with checklists during renovations.
Logan Square will add a link on its website to EPA’s content on lead-safe work practices. In addition, Logan Square will take action to respond to situations where a contractor is not operating in compliance with the RRP rule; investigate all reports of potential noncompliance; and ensure that any violations are corrected and reported to EPA.
EPA first discovered the alleged violations through customer complaints about a project performed in Evanston, Illinois. EPA learned that Logan Square frequently subcontracted work to uncertified firms and did not use lead-safe work practices, perform required post-renovation cleaning, provide the EPA-required lead-based paint pamphlets to occupants, or establish records of compliance. Logan Square also conducts business under other names, including Climate Guard Thermal Products Co. and Studio 41.
The consent decree was lodged in the U.S. District Court for the Northern District of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. View the consent decree here.
Further information is available from the National Lead Information Center (800-424-LEAD) and online at www.epa.gov/lead. Available resources include additional information about the RRP program; information for contractors and property managers about program requirements; and downloadable lead-safety education materials.
To report a possible violation of the RRP Rule requirements, please visit EPA’s website.
Indianapolis Men Sentenced to a Combined 60 years in Federal Prison for Their Roles in the Sexual Exploitation of a ChildRead the Press Release
INDIANAPOLIS – Michael Ingram, 43, of Indianapolis, Indiana, was sentenced to 40 years in federal prison after pleading guilty to Sexual Exploitation of a Child, Conspiracy to Sexually Exploit Children, and Distribution and Receipt of Child Sexual Abuse Material. Cameron Helm, 36, of Indianapolis, Indiana, was also sentenced to 20 years in federal prison after pleading guilty to Conspiracy Sexually Exploit Children and Distribution and Receipt of Child Sexual Abuse Material.
According to court documents, in March 2020, the Indianapolis Metropolitan Police Department (IMPD) began investigating Ingram after receiving a CyberTip from an email provider. Further investigation revealed that the owner of this email account sent child sex abuse material to Ingram’s email account. Investigators were able to tie the account to Ingram’s Indianapolis residence and obtained a warrant to search for evidence of crimes.
Members of the Indiana Internet Crimes Against Children (ICAC) task force executed the warrant and recovered Ingram’s iPhone and iPad. A forensic examination of these devices revealed that Ingram had produced, distributed, and possessed child sex abuse material.
In addition, over 1,600 text messages were located on the devices between Ingram and Helm, from February 7, 2018, to October 2020. In these texts, Ingram and Helm conspire to sexually exploit a child and graphically describe potential sex acts with children. At Helm’s direction, Ingram took photos of himself sexually assaulting a child. Ingram distributed that child sex abuse material to Helm, and Helm distributed other child sex abuse material to Ingram in return.
U.S. Attorney for the Southern District of Indiana Zachary A. Myers and IMPD Chief Randal Taylor made the announcement.
“These criminals gleefully reveled in the dark sewer of child exploitation,” said U.S. Attorney Myers. “They placed their own sexual gratification above the autonomy, dignity, and safety of a vulnerable child. The serious sentences imposed here demonstrate that these horrific abuses are unacceptable in civilized society. Indiana’s renowned Internet Crimes Against Children Task Force, including our office and IMPD, will continue to work relentlessly to keep children safe and hold abusers accountable.”
ICAC and IMPD investigated the case. The sentence was imposed by U.S. District Judge, Sarah Evans Barker. Judge Barker also ordered that Ingram be supervised by the U.S. Probation Office for life and Helm be supervised for 15 years following their release from federal prison. Ingram and Helm must also register as sex offenders wherever they live, work, or go to school, as required by law. Additionally, Helm must pay $10,000 in restitution to the child victims and has been fined $10,000 pursuant the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018.
U.S. Attorney Myers thanked Assistant United States Attorney Kyle M. Sawa who prosecuted the case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Akale Jamel Green, 54, of Huntington, was sentenced today to three years in prison, to be followed by three years of supervised release, for distribution of heroin.
According to court documents and statements made in court, on June 15, 2020, Green sold approximately 1.42 grams of heroin to a confidential informant while parked at a Hurricane shopping plaza. The Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory confirmed the controlled substance contained heroin and fentanyl.
Green further admitted to aiding and abetting the sale of approximately 1 gram of heroin and fentanyl to a confidential informant at a Hurricane residence on June 9, 2020, and to selling approximately 1.33 grams of heroin and fentanyl to a confidential informant in Huntington on June 23, 2020. On July 22, 2020, law enforcement officers executed a search warrant at a Doulton Avenue residence in Huntington and found a quantity of a heroin and fentanyl mixture and digital scales. Green admitted to possessing the heroin and fentanyl mixture and that he intended to distribute it.
United States Attorney Will Thompson made the announcement and commended the investigative work of the DEA and the West Virginia State Police Ona Violent Crime and Drug Task Force West.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-100.
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Hot Springs Man Sentenced to over 8 Years in Federal Prison for Drug TraffickingRead the Press Release
HOT SPRINGS – A Hot Springs man was sentenced on January 27, to 97 months in prison followed by three years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the U.S. District Court in Hot Springs.
According to court documents, John Raymond Duran, age 58, was identified by law enforcement to be distributing methamphetamine in Hot Springs, Arkansas area.
Between the months of December 2020 and March 2021, investigators were able to conduct multiple controlled purchases of methamphetamine from Duran.
On April 12, 2021, a search was conducted at Duran’s residence, resulting in investigators locating and seizing approximately 1539 grams of a mixture or substance that field tested positive for methamphetamine.
The methamphetamine seized and purchased was subsequently submitted to the Drug Enforcement Administration (DEA) laboratory for additional testing.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
Homeland Security Investigations Little Rock, the Drug Enforcement Administration, Hot Springs Police Department, and the 18th East Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney Bryan Achorn and Special Assistant U.S. Attorney Trent Daniels prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Four Washington State Men Sentenced for Hate Crime and False Statement Charges After Racially-Motivated AssaultRead the Press Release
Four men who assaulted a Black man because of the man’s actual and perceived race at a bar in Lynnwood, Washington, were sentenced today in the U.S. District Court for the Western District of Washington.
Jason DeSimas, 45, Jason Stanley, 46, Randy Smith, 42, and Daniel Dorson, 27, previously each pleaded guilty to one count of committing a hate crime, as well as one count of making false statements to investigators about their role in the assault.
DeSimas was sentenced to 48 months; Stanley was sentenced to 47 months and nine days; Smith was sentenced to 42 months; and Dorson was sentenced to 28 months.
“The defendants subjected a Black man to a brutal and racially-motivated assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Racially-motivated hate crimes terrorize entire communities, and they have no place in our society. The Department of Justice will continue to investigate and prosecute individuals who commit these abhorrent crimes.”
“The myth of white supremacy is alive and well and can foment dangerous behavior and violence. These particular defendants are deeply steeped in racial hatred, expressed through their Nazi tattoos, white supremacist symbols on their clothing and their use of racist slurs. They came to our area to honor a man who died leading a racist and violent gang, and thought they could act on their beliefs with impunity,” said U.S. Attorney Nick Brown for the Western District of Washington. “But the victims and witnesses of their brutal assault have proved they are far stronger than these four. And today our justice system is holding them accountable for the damage they did not only to the people they assaulted, but to the community that recoils when presented with their despicable hatred.”
“Imagine being attacked by four men purely because of the color of your skin.” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “The victim in this case does not have to imagine. Tragically, he lived it. With today’s sentences, my hope is the victim feels some sense of justice has been served. However, until all citizens are safe from threats and violence based on their race, ethnicity, gender or beliefs, the FBI’s work protecting victims of hate will continue.”
In their respective plea agreements, DeSimas, Stanley, Smith and Dorson each admitted that, on Dec. 8, 2018, they entered a bar in Lynnwood, with a large group that included fellow members of Crew 38 and the Hammerskins. Crew 38 is a support group for the Hammerskins, which is a white supremacist organization. The majority of the men in the group were similarly dressed in dark jeans or pants, black boots, black “bomber” jackets and dark-colored t-shirts and had crew-cut hairstyles. Some wore jackets with either Crew 38 patches or other patches aligned with white supremacist beliefs. In addition, many wore shirts with phrases, numbers or logos that expressed white supremacist beliefs and/or memberships, including Crew 38. Many in the group also had visible tattoos, including swastika tattoos, that expressed their views on white race superiority. Members of the group, including defendants Stanley and Smith, repeatedly gave the Nazi salute as they danced.
While in the bar, all four defendants assaulted T.S., a Black man who was serving as the disc jockey at the bar, when T.S. attempted to move defendant Stanley away from his music equipment. All four defendants punched and kicked T.S., even after he fell to the floor, while some in the group called T.S. racial slurs. Two bystanders attempted to intervene to help T.S. and stop the assault. The defendants and other assaulted both bystanders, causing them to sustain injuries. As a result of the defendants’ actions, T.S. suffered serious physical injuries, including extrema pain, loss of consciousness, bleeding and swelling in his eye and bruising on his back, chest and legs.
In their plea agreements, the four defendants each admitted that they were members of Crew 38 and/or prospective members of the Hammerskins, and that they had traveled to the Lynnwood area with others to attend events related to “Martyr’s Day,” an annual gathering honoring a white supremacist who died in a shootout with federal agents on Whidbey Island in the 1980s.
In their plea agreements, defendants DeSimas and Stanley each admitted that they knew that the Hammerskins had used a tactic known as “mutual combat” against members of groups whose beliefs they opposed. Members believed that, using this tactic, they could go to bars frequented by groups whose beliefs they opposed and have one or more members initiate a fight. When the fight began, other members of the group could jump in and assault their perceived antagonists, and later claim a defense of “mutual combat” as a way to avoid accountability.
In addition to the hate crime charge, each defendant pleaded guilty to one count of making false statements to federal agents who were investigating the assault. Specifically, Stanley falsely claimed to the agents that he was not even present in the State of Washington during the weekend of the assault. Stanley made this false claim in order to cover up his participation in the assault of T.S.
DeSimas falsely claimed to the agents that neither he nor anyone else called T.S. a racial slur during the assault, while Smith falsely claimed to the agents that he did not remember anyone calling T.S. a racial slur during the assault. Dorson falsely told agents that he had not traveled to Washington State during the weekend of the assault to attend a white supremacist’s “Martyr’s Day” observance and that he had not owned a jacket associated with a white supremacy hate group prior to the weekend of Dec. 8, 2018. In their respective plea agreements, these defendants each admitted that they made these false statements in order to cover up the motive for the assault, which was the bias that he and others had against T.S.’s race.
The four defendants were charged in an indictment that was unsealed on Dec. 18, 2020.
Smith was charged in the District of Oregon in an unrelated case for illegal possession of a firearm. That charge was resolved in the Western District of Washington.
The FBI investigated the case, with the support of the Snohomish County Sheriff’s Office. The Smith firearms matter was investigated by the FBI Portland Field Office and the Eugene, Oregon, Police Department.
Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Rebecca Cohen for the Western District of Washington are prosecuting the case. The Smith firearms matter was prosecuted by Assistant U.S. Attorney William McLaren for the District of Oregon.
Fort Myers Man Sentenced to More Than 15 Years for Selling Fentanyl and MethamphetamineRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell today sentenced Diante Jarrel Lewis (32, Fort Myers) to 15 years and 8 months in federal prison for twice distributing fentanyl and for distributing methamphetamine. Lewis had pleaded guilty on August 24, 2022.
According to court documents, Lewis was charged with distributing fentanyl on two separate dates in May of 2022. Court documents further show that he was charged with distributing over 50 grams of methamphetamine during that same period. Lewis qualified as a Career Offender under the Federal Sentencing Guidelines based on his criminal history.
This case was investigated by the Lee County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Mark Morgan.
Former Top Guatemalan Police Official Who Failed to Disclose Murder Convictions on Green Card Petition Found Guilty of Felony OffenseRead the Press Release
LOS ANGELES – The former chief of the National Police in Guatemala’s second-largest city has been found guilty by a jury of a federal criminal charge for knowingly using a “green card” whose application to U.S. immigration authorities failed to disclose he had been convicted of murdering two political activists in Guatemala in the 1980s, the Justice Department announced today.
Catalino Esteban Valiente Alonzo, 82, of Fontana, was found guilty late Friday of one count of knowing use of a Lawful Permanent Resident card that was procured by means of a false claim or statement. Valiente is the former chief of the National Police in Quetzaltenango, Guatemala.
According to evidence presented at his four-day trial, Valiente entered the United States in April 2013 with a Lawful Permanent Resident card – commonly known as a “green card” – that he fraudulently obtained by failing to disclose that he had been arrested and tried for kidnapping and murder in Guatemala.
In October 1987, shortly after Valiente ordered an “investigation” into two political dissidents associated with anti-police protests at local universities in Quetzaltenango, two people were kidnapped in broad daylight by police officers. Days later, their bodies were recovered in separate locations on the side of the road, just outside the city limits. They had been beaten and tortured prior to being killed.
In December 1987, Valiente and others were charged in Guatemala in connection with the kidnappings and murders. He was arrested and remained in custody for two-and-a-half years while the criminal case against him proceeded.
In 1989, Valiente was convicted in Guatemala of double murder. He was sentenced to 30 years in prison and was ordered to pay approximately $6,000 to the victims’ families. In 1990, an intermediate appellate court overturned Valiente’s conviction, dismissed the charges, and ordered him released from custody.
Immediately after his release from prison, Valiente fled Guatemala. In August 1990, he entered the United States at the San Ysidro Port of Entry in San Diego. Days later, he filed – under penalty of perjury – an application for asylum. On this application, he falsely denied that he had ever been detained, convicted, sentenced or imprisoned in another country.
The Supreme Court of Guatemala in March 1993 vacated the intermediate appellate court’s ruling and issued a warrant for his arrest.
In September 1997, Valiente filed – under penalty of perjury – a false application for a green card in which he denied having been arrested, charged, fined or imprisoned outside the United States for violating any law.
Valiente subsequently lied under oath to a U.S. immigration official during an interview about the answers on his green card application. The green card was approved and Valiente used it, including presenting it to re-enter the United States at Los Angeles International Airport in April 2013.
United States District Judge Dolly M. Gee scheduled a May 24 sentencing hearing, at which time Valiente will face a statutory maximum sentence of 10 years in federal prison.
Homeland Security Investigations (HSI) investigated this matter in coordination with the HSI Attaché in Guatemala City, United States Citizenship and Immigration Services, Fraud Detection and National Security Directorate, and the Document and Benefit Fraud Task Force Los Angeles.
Assistant United States Attorney Joshua O. Mausner of the General Crimes Section is prosecuting this case.
Members of the public who have information about foreign nationals suspected of engaging in human rights abuses or war crimes may call the Immigration and Customs Enforcement (ICE) tip line at 1-866-DHS-2423 (1-866-347-2423). Callers may remain anonymous.
Former Naval Officer Agrees to Plead Guilty to Making Threats in Interstate CommerceRead the Press Release
BOSTON – A former naval police officer at the Portsmouth Naval Shipyard in New Hampshire has agreed to plead guilty to three counts of making threatening communications to his ex-wife and her mother in Iowa.
Luis De Leon, 30, of Middleton, was charged and has agreed to plead guilty to three counts of making threats in interstate commerce. A plea hearing has not yet been scheduled by the Court. De Leon was previously arrested and charged by criminal complaint on Sept. 26, 2022.
According to the charging documents, on or about April 30, 2022, De Leon made a threatening phone call to his ex-wife in Iowa from a mobile telephone belonging to another individual. Specifically, during the call, De Leon allegedly made several threatening statements including, “You’re gonna f****** pay! Do you understand!? There will be death! There will be war in the street! You wanna to go war!? I’ll take you to f****** war!”
Between May and June 2022, De Leon allegedly sent two letters containing threats to his ex-wife’s mother in Iowa. In the letters, it is alleged that De Leon wrote, among other things, “I’ll be heading over there soon […] God help you and your dysfunctional family if you try and stop me. I won’t be alone either just so you know and that’s for your safety NOT MINE!!! […] If you don’t believe me just look where I’m sending this from. I don’t really have much else to lose, and do you know what men with nothing left to lose usually do?”
The charge of making threatening communications in interstate commerce provides for a sentence of up to five years in prison, three years 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 Timothy H. Kistner of Rollins’ National Security 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.
Former Louisville, Kentucky, Police Officer Sentenced for Using Excessive ForceRead the Press Release
Katie R. Crews, 29, of Jeffersonville, Indiana, was sentenced to two years of probation, 200 hours of community service and a $5,000 fine for violating an individual’s rights by using excessive force while acting as a police officer for the Louisville Metro Police Department.
In October 2022, Crews admitted during a plea hearing that on or about June 1, 2020, while acting as a police officer with the Louisville Metro Police Department, she shot an individual with a pepperball even though the individual was standing on private property and not posing a threat to the defendant or others. Crews pleaded guilty to one misdemeanor count for using unreasonable force. As part of the plea agreement, Crews is no longer an officer with the Louisville Metro Police Department and has forfeited her Kentucky law enforcement certification.
“This former Louisville police officer abused her authority as a law enforcement officer and violated the victim’s civil rights,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence makes clear that law enforcement officials are not above the law. The Justice Department will continue to prosecute law enforcement officials who violate our federal civil rights laws and defy the public trust by using excessive force.”
“As in this case, our office will work diligently with our federal and local law enforcement partners to ensure the citizens of the Western District are protected from the use of excessive force by officers sworn to protect them,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky.
Assistant Attorney General Clarke, U.S. Attorney Bennett and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Civil Rights Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section prosecuted the case.
Former Louisville, Kentucky, Police Officer Sentenced for Using Excessive ForceRead the Press Release
Katie R. Crews, 29, of Jeffersonville, Indiana, was sentenced to two years of probation, 200 hours of community service and a $5,000 fine for violating an individual’s rights by using excessive force while acting as a police officer for the Louisville Metro Police Department.
In October 2022, Crews admitted during a plea hearing that on or about June 1, 2020, while acting as a police officer with the Louisville Metro Police Department, she shot an individual with a pepperball even though the individual was standing on private property and not posing a threat to the defendant or others. Crews pleaded guilty to one misdemeanor count for using unreasonable force. As part of the plea agreement, Crews is no longer an officer with the Louisville Metro Police Department and has forfeited her Kentucky law enforcement certification.
“This former Louisville police officer abused her authority as a law enforcement officer and violated the victim’s civil rights,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This sentence makes clear that law enforcement officials are not above the law. The Justice Department will continue to prosecute law enforcement officials who violate our federal civil rights laws and defy the public trust by using excessive force.”
“As in this case, our office will work diligently with our federal and local law enforcement partners to ensure the citizens of the Western District are protected from the use of excessive force by officers sworn to protect them,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky.
Assistant Attorney General Clarke, U.S. Attorney Bennett and Special Agent in Charge Jodi Cohen of the FBI Louisville Field Office made the announcement.
The FBI and the Louisville Metro Police Department’s Public Integrity Unit jointly investigated the case through the Louisville Public Corruption Civil Rights Task Force.
Assistant U.S. Attorney Amanda E. Gregory for the Western District of Kentucky and Civil Rights Trial Attorney Anita Channapati of the Civil Rights Division’s Criminal Section prosecuted the case.
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Florissant Bank Manager Admits Defrauding Elderly CustomersRead the Press Release
ST. LOUIS – A former bank branch manager from Florissant, Missouri on Monday admitted targeting elderly customers of her bank and stealing $175,000 of customers' money.
Andrea Nicole Hopkins, 28, pleaded guilty in front of U.S. District Judge Audrey G. Fleissig to four felony counts of bank fraud.
From Feb. 20, 2020 to May 25, 2021, while manager of the Commerce Bank branch on Natural Bridge Avenue in St. Louis, she devised a scheme to divert money from customer accounts for her own use. She targeted elderly customers, knowing that some had a diminished capacity to understand their financial affairs, her plea agreement says. Among the victims are two 80-year-olds, one 95-year-old and one 82-year-old.
Hopkins logged into 15 accounts and transferred funds out into either cashier’s checks or prepaid cards in the names of other people, her plea says. She changed the address on some account statements, forged signatures and transferred funds among customers to try and hide the thefts.
In all, Hopkins fraudulently diverted a total of $328,273 from customer accounts, but $152,431 of that she transferred internally among customers to hide her theft, leaving $175,842 for her. Hopkins used the money to buy a motorcycle, to pay for living expenses and to pay personal debts.
Hopkins is scheduled to be sentenced May 8. The charges carry a penalty of up to 30 years in prison, a $1 million fine or both.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Kyle T. Bateman is prosecuting the case.
Five Individuals Indicted for Child Abuse on the Red Lake ReservationRead the Press Release
BEMIDJI, Minn. – Five members of the Red Lake Band of Chippewa Indians have been indicted for multiple child abuse charges including child torture and child neglect on the Red Lake Indian Reservation, announced U.S. Attorney Andrew M. Luger.
According to court documents, between January 1, 2021, and April 29, 2022, Trina Mae Johnson, 49, directed the torture, endangerment, neglect, and abuse of a child who was in Johnson’s legal custody through a foster care placement. Johnson was aided and abetted by Bertram Calvin Lussier, Jr., 42, and Johnson’s three sisters, Bobbi Jo Johnson (a/k/a Bobbi Jo Kingbird), 44, Ellie Mae Johnson, 47, and Patricia Ann Johnson, 39, who all regularly assumed responsibility for all or a portion of the care and supervision of the minor victim. The abuse included withholding food from the victim to the point of starvation, forcing the victim to stand in uncomfortable positions for long periods of time, and assaulting the victim in various ways. As a result of Johnson’s and her accomplices’ abuse, the victim suffered serious and substantial physical, mental and emotional harm.
Trina Johnson is charged with one count of child torture, one count of child neglect—deprivation of food and health care, one count of child endangerment and one count of assault on a minor with a dangerous weapon. Bobbi Johnson, Ellie Johnson, Patricia Johnson and Lussier, were each charged with one count of child neglect—deprivation of food and health care and one count of child endangerment.
Trina Johnson, Bobbi Johnson, Patricia Johnson, and Lussier all made their initial appearances Friday, January 27, in U.S. District Court before Magistrate Judge Jon T. Huseby.
Ellie Johnson will make her initial appearance in U.S. District Court before a Magistrate Judge at a later date.
This case was investigated by the FBI and the Red Lake Tribal Police Department, with support from the Minnesota Bureau of Criminal Apprehension, the Beltrami County Sherriff’s Office, the Bemidji Police Department, and the Blackduck Police Department.
Assistant U.S. Attorneys Ruth S. Shnider and Angela M. Munoz are prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Fentanyl Dealer Pleads Guilty in Federal CourtRead the Press Release
ASHEVILLE, N.C. – Megan Emily Tate, 28, of Sylva, N.C., appeared before U.S. Magistrate Judge W. Carleton Metcalf this morning and pleaded guilty to distributing a substance that contained fentanyl which resulted in serious bodily injury, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees North Carolina, and Sheriff Doug Farmer of the Jackson County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s plea hearing, in April 2021, deputies with the Jackson County Sheriff’s Office arrested Tate for suspected distribution of fentanyl. Court records show that while Tate was in custody at the Jackson County Detention Center, she supplied two inmates with fentanyl, causing them to overdose. As a result, both overdose victims were transported to the hospital and one victim was placed on a ventilator. Both victims later recovered from their drug overdose. According to court documents, over the course of the investigation into the drug overdose incidents, law enforcement determined that Tate had supplied each victim with a substance that contained fentanyl, which Tate was able to conceal and later retrieve from a body cavity.
According to the DEA, fentanyl is a synthetic opioid that is 50 times more potent than heroin and 100 times more potent than morphine. Fentanyl remains the deadliest drug threat in the United States. According to the CDC, more than 100,000 people in the United States died of drug overdoses and drug poisonings in the 12-month period ending in January 2022. Sixty-seven percent of those deaths involved synthetic opioids like fentanyl. Some of these deaths were attributed to fentanyl mixed with other illicit drugs like cocaine, methamphetamine, and heroin, with many users unaware they were actually taking fentanyl.
Tate is currently in federal custody. At sentencing, Tate faces a sentence of 20 years in prison. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the DEA’s Asheville Post of Duty and the Jackson County Sheriff’s Office for their investigation of this case.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Federal Jury Convicts Omaha Man in Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Steven Russell announced that on January 27, 2023, a federal jury in the District of Nebraska found Gilberto Aguilar-Beltran, 46, of Omaha, Nebraska guilty of conspiracy to distribute and possess with intent to distribute methamphetamine, and of possession with intent to distribute methamphetamine.
On May 12, 2021, Omaha Police observed Aguilar-Beltran, driving a Jeep Grand Cherokee, meet up with two people driving a black SUV at a Taco Bell on South 42nd Street. A male from the black SUV got into Aguilar-Beltran’s Jeep and they briefly drove around before returning to the Taco Bell. The male returned to the black SUV and departed at the same time as the Jeep. Omaha Police stopped the black SUV, and after completing a canine sniff of the exterior, they searched it. Officers recovered approximately one pound of meth and arrested the driver and passenger.
Following this apparent drug transaction, OPD detectives gathered additional evidence of Aguilar-Beltran’s involvement in methamphetamine distribution. Ultimately, on July 15, 2021, officers executed a search warrant at Aguilar-Beltran’s home, locating distribution quantities of methamphetamine, cash, and a digital scale and packaging materials consistent with drug trafficking.
Investigators further determined through deconfliction and cooperation with federal investigative agencies that Aguilar-Beltran’s activities in furtherance of drug trafficking extended beyond methamphetamine distribution. A cooperating witness testified at trial that Aguilar-Beltran collected thousands of dollars in proceeds from methamphetamine sales for the organization. Additional witnesses testified that Aguilar-Beltran allowed the detached garage at his residence to be used over a period of several years for the regular off-loading of dozens of pounds of methamphetamine from a “trap” car that had been driven repeatedly to Omaha from the southwest border. The methamphetamine from the trap car was intended for distribution in Nebraska.
United States District Judge Brian C. Buescher presided over the jury trial and will sentence Aguilar-Beltran on April 27, 2023.
This case was investigated by the Omaha Police Department, the Drug Enforcement Administration, Homeland Security Investigations, and the Federal Bureau of Investigation.