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6 March 2023
Heavily Armed, Repeat Drug Dealer Sentenced to 16 Years in Federal Prison for Trafficking Fentanyl and Meth while on Community CorrectionsRead the Press Release
INDIANAPOLIS- Dreshaun Carter, 26, of Indianapolis, Indiana, was sentenced to 16 years in federal prison after pleading guilty to distributing fentanyl and methamphetamine.
According to court documents, on February 1, 2022, Drug Enforcement Administration (DEA) agents arrested Dreshaun Carter on a federal warrant for distributing methamphetamine.
DEA agents executed a search warrant at Carter’s residence, where they located over 1.5 kilograms of fentanyl, over 900 grams of methamphetamine, over 200 grams of crack cocaine, $90,123 in U.S. currency, digital scales, 19 firearms, and police body armor. Three of the firearms were stolen.
At the time of his arrest, Carter was on community corrections with GPS monitoring and had previously been convicted of a felony for dealing narcotics.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Indianapolis Metropolitan Police Chief Randal Taylor, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office made the announcement.
“His prior drug dealing felony and supervision by Community Corrections didn’t deter the defendant from pushing fentanyl, meth, and crack into our neighborhoods,” said U.S. Attorney Myers. “Even wearing a GPS monitor, he still chose to arm himself to the teeth—with nineteen guns and police body armor. The serious federal prison sentence imposed today will hopefully convince him to finally change his ways when he is released. I commend the DEA and IMPD for their investigation and commitment to protect the public from dangerous, repeat drug traffickers.”
DEA and IMPD investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Carter be supervised by the U.S. Probation Office for 5 years after his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Pamela S. Domash, who prosecuted this 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.
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Georgia Cyber Fraud Task Force marks two years addressing the laundering of cyber-enabled fraud proceeds in the metro-Atlanta areaRead the Press Release
ATLANTA – Cyber-enabled crimes cost Georgia residents almost $144 million in 2021, with losses attributed to business email compromise schemes, investment scams, and confidence or romance scams topping the list of frauds. Nationally, these losses are in the billions. The Georgia Cyber Fraud Task Force, which investigates and prosecutes these cases, comprises local, state, and federal agencies throughout Georgia, committed to sustained community outreach, as well as training for law enforcement and prosecutors to better respond to cyber-enabled crime.
Cyber-fraudsters perpetrate these scams by utilizing a network of participants who each play an integral part in the success of the scam. One critical actor in these schemes is the “money mule”: the party responsible for opening a U.S. bank account, usually a business account, and accepting proceeds from a variety of frauds and forwarding the funds as directed, often to accounts overseas. The mission of the Georgia Cyber Fraud Task Force (CFTF) is to identify quality leads for investigation of suspected money mules in the Atlanta area and reduce the amount of time and resources necessary to impact those mules through judicial intervention.
Money mules act as a sort of contractor in the economy of cyber-enabled fraud, rather than the perpetrator interacting with a victim. The money flowing into money mule accounts represents proceeds from a variety of fraud types and numerous victims, and the money may flow out to second-tier recipients who remain unaware of one another. The anonymity with which these fraud schemes operate works to the advantage of the perpetrators. The sheer volume of victims who funnel money into a mule’s account – who may operate more than a dozen bank accounts – poses a daunting obstacle for law enforcement.
Untangling the web of bank accounts associated with a single mule, and the victims who deposited money into those accounts, may require more than a year of law enforcement time and resources. But focusing investigative efforts on identifying and removing money mules from fraud operations makes it harder for fraudsters to direct victim funds into U.S. bank accounts. Impacting the ability of fraudsters to move stolen funds reduces the success of these fraud schemes.
Most law enforcement activity is initially victim-centric; a victim contacts their local law enforcement agency to report that they have been defrauded. But in cyber-enabled fraud schemes the money and the person who received it are rarely in the same location, or the same state, as the victim who reports the crime. Typically, law enforcement traces the funds to an out-of-state account and then must pass the lead off to law enforcement in that jurisdiction and hope that the investigation continues. The CFTF is addressing this investigative challenge in two ways: first, by proactively dealing with money mules in our area of responsibility, and second, by taking referrals from law enforcement across the country who have identified funds from their local victims that have landed in bank accounts in our area.
During the past year, the CFTF has continued to refer leads to local and state law enforcement for investigation of money mules. These leads originate from victim complaints made to the FBI’s Internet Crime Complaint Center, known as “IC3,” as well as law enforcement leads from around the country through the StopTheMuleGa initiative.
- Bernard Kaba, 62, of Morrow, Georgia, was sentenced on August 30, 2022, to 10 years of probation and ordered to pay $50,000 in restitution to victims after pleading guilty to theft by taking in connection to his receipt of business email compromise (BEC) fraud proceeds.
- Borin Khoun, 45, of Lawrenceville, Georgia, was sentenced on July 27, 2022, after pleading guilty to two indictments charging him with theft in connection with his receipt of fraud proceeds from romance and inheritance scams. Khoun was sentenced to 15 years, with the first 90 days to be served in custody followed by nine months of work release, and the remainder on probation. Khoun was also fined $1,500 and ordered to pay $234,479.58 in restitution to victims.
- Olayemi Fadipe, 41, of Snellville, Georgia, was charged by accusation for theft by receiving in connection with his participation in a romance/confidence fraud scheme.
- Stella Mae Zebic, 43, of Brookhaven, Georgia, was indicted in DeKalb County, Georgia, on January 17, 2023, on charges of theft by taking, computer crimes, and identity fraud in connection with her participation in a BEC scheme.
- Jaysen Robinson, 24, of Dunwoody, Georgia, was indicted in Fulton County, Georgia, on December 6, 2022, on charges of theft by taking and money laundering in connection with his participation in a BEC scheme that targeted a law firm.
- Augustus Edmund, 62, of Conyers, Georgia, was indicted in Hall County, Georgia, on February 15, 2023, on two counts of theft by taking for his role in a BEC scheme. The indictment alleges that he took over $200,000 from a non-profit organization in August 2021.
- Ugochinyere Anazodo, 44, of Suwannee, Georgia, was indicted in Gwinnett County, Georgia, on February 15, 2023, on charges of racketeering, theft, and money laundering in connection with his participation in several cyber-enabled fraud schemes, including romance and confidence frauds and a BEC fraud that resulted in a loss to the Georgia Department of Transportation.
- Chigbogwu Nnamani, 53, of Marietta, Georgia, was indicted in Gwinnett County on February 8, 2023, for theft by taking in connection with his participation in a BEC scheme.
Members of the public should keep in mind that indictments contain only allegations against the individual against whom the indictment is obtained. A defendant is presumed innocent until proven guilty, and it will be the government’s burden at trial to prove the defendant guilty beyond a reasonable doubt of the allegations contained in the indictment.
If you have been the victim of a cyber-enabled fraud scheme such as a business email compromise or a confidence fraud, report the fraud to your bank, your local law enforcement agency, and the Internet Crime Complaint Center at www.IC3.gov.
Business email compromise schemes rely on victims trusting their email communications are secure. If you are sending or receiving large sums of money, confirm the transaction instructions in person or in a phone call that you initiate. If you are engaged in online relationships, beware of individuals who make excuses not to meet in person and any requests for money.
You can find more information about online scams and how to protect yourself by visiting www.ic3.gov or the Georgia Attorney General’s Consumer Protection Division www.consumer.georgia.gov.
To help small businesses, non-profits, and places of worship safeguard their data and devices, the Attorney General’s Consumer Protection Division created Cybersecurity in Georgia. This comprehensive guide includes critical tips and information on the different types of cyber threats, protecting your data and network, training employees about cybersecurity, planning for and responding to a security breach, cyber insurance, and more. Download your free copy here.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fresno Man Pleads Guilty to Assaulting a Court Security OfficerRead the Press Release
FRESNO, Calif. — Carlos Perez, 46, of Fresno, pleaded guilty today to assaulting a federal contractor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 21, 2021, Perez attempted to bypass security at the Robert E. Coyle Fresno Federal Courthouse. When a court security officer attempted to stop him, Perez swung his arm at the officer, striking the officer in the face.
This case is the product of an investigation by the Federal Protective Services, the U.S. Marshals Service, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
Perez is scheduled to be sentenced on Wednesday, March 8, 2023, by U.S. District Judge Jennifer L. Thurston. Perez faces a maximum statutory penalty of one year in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Fresno County Couple Pleads Guilty to Hacking Database Containing People’s Identities and Selling Them on the Dark Web for $160,000 in Digital CurrencyRead the Press Release
FRESNO, Calif. — Former Navy couple, Marquis Hooper, 32, and Natasha Chalk, 39, of Selma, pleaded guilty today to a conspiracy where they hacked a database that contained personally identifiable information (PII) and sold it on the dark web for $160,000 in digital currency, U.S. Attorney Phillip A. Talbert announced. Hooper also pleaded guilty to underlying wire fraud and aggravated identity theft charges.
According to court records, when Hooper was a chief petty officer and Chalk was a reservist in the Navy, Hooper opened an account with a private company that maintains a database containing PII for millions of people. The company restricts access to the database to businesses and government agencies that have a demonstrated, lawful need for the PII. Beginning in August 2018, Hooper opened an online account with the company by falsely representing that the Navy needed him to perform background checks on sailors. After Hooper opened his account, he added Chalk. The couple used Hooper’s access to the company’s database to obtain the PII of over 9,000 people. They then sold the PII on the dark web for $160,000.
At least some of the individuals to whom Hooper and Chalk sold people’s PII used it to commit further crimes. For example, one individual used the PII to create a driver’s license using a victim’s information and then tried to withdraw money from the victim’s bank account. The bank declined the transaction.
In December 2018, Hooper’s account was closed for suspected fraud. Thereafter, Hooper and Chalk enlisted an unindicted co-conspirator to regain access to the database. Under Hooper’s direction and with the promise of $2,500 for each month that the account was opened, the co-conspirator tried to open an account. Hooper created a fake contract that identified a further identity theft victim as a Navy supply officer authorizing the transaction, and when the company asked for verification, Hooper provided a fake driver’s license for the victim and a fake letter from a commanding officer approving the transaction. In the end, the company decided not to open the account.
This case is the product of an investigation by the Naval Criminal Investigative Service, the Federal Bureau of Investigation, and Homeland Security Investigations. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Hooper and Chalk are scheduled to be sentenced July 24, 2023, by U.S. District Judge Jennifer L. Thurston. They face a maximum statutory penalty of 20 years in prison and a fine of $250,000 for the conspiracy convictions. Hooper also faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 for the wire fraud conviction, and two years in prison, consecutive to other counts, for the aggravated identity theft conviction. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Four Members of Conspiracy that Trafficked Methamphetamine from California into Evansville Sentenced to a Total of 50 Years in Federal PrisonRead the Press Release
EVANSVILLE- Seroy A. Mobley, 38, of Evansville, Indiana, was sentenced to 200 months in federal prison after pleading guilty to conspiracy to distribute methamphetamine and illegally possessing a firearm. He was the leader of the methamphetamine trafficking conspiracy, and the last of its four members to be sentenced.
According to court documents, between January and June of 2018, Seroy Mobley, Carl Kirkland, Seneca Binder, and Eric Wilkerson conspired to deal methamphetamine in Southern Indiana and Northern Kentucky. Mobley was the leader of the conspiracy, obtaining large amounts of methamphetamine from his source of supply, Kirkland. Kirkland shipped the meth from California to Evansville via U.S. mail. Mobley then distributed the narcotics to Binder and Wilkerson, who were mid-level distributors in the Evansville and Whitestown, Kentucky communities.
During the execution of a search warrant at Mobley’s Evansville residence, Evansville Police Department officers located a .38 caliber revolver, two digital scales, and 384 grams of meth in an infant’s room.
Mobley is legally prohibited from possessing a firearm due to his previous state conviction for cocaine possession and federal conviction for armed drug trafficking. Mobley was released from federal prison for his prior conviction on June 25, 2015, and was still on federal supervised release when he was arrested for his role in the January 2018 conspiracy.
In total, the Drug Enforcement Administration and Evansville Police Department seized 25 pounds of methamphetamine and a .38 caliber revolver involved in the conspiracy.
As of today, all four defendants have been sentenced as follows:
Defendant
Offenses
Sentence
Seroy Mobley, 38,
of Evansville, IN
Conspiracy to distribute methamphetamine
Illegally possessing a firearm
16.6 years’ imprisonment
5 years supervised release
3 years’ license revocation
Carl Kirkland, 57,
of Antioch, California
Conspiracy to distribute methamphetamine
10 years’ imprisonment
5 years supervised release
Seneca Binder, 41,
of Evansville, IN
Conspiracy to distribute methamphetamine
10 years’ imprisonment
5 years supervised release
Eric Wilkerson, 41,
of Whitestown, Kentucky
Conspiracy to distribute methamphetamine
15 years’ imprisonment
5 years supervised release
Zachary A. Myers, United States Attorney for the Southern District of Indiana and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office made the announcement.
“The methamphetamine ravaging our families and neighborhoods doesn’t come from nowhere,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Drug traffickers like those convicted in this case bring this poison from thousands of miles away and pump it onto our streets. We will continue to work with our partners at the DEA and Evansville Police Department to dismantle these meth trafficking conspiracies and hold them accountable.”
The DEA investigated this case with valuable assistance provided by the Evansville Police Department. The sentences were imposed by U.S. District Court Judge Richard L. Young. Judge
U.S. Attorney Myers thanked Assistant United States Attorney Lauren M. Wheatley, who prosecuted this case.
Previous release here.
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Four Individuals Arrested for Investment Fraud Scheme Targeting Hawaii ResidentsRead the Press Release
HONOLULU – Today, Defendants HAITEM TAYLOR ABID DHAENE, age 19, LATIFA ZANKI DHAENE, age 47, TIM DHAENE, age 37, and SOFYANE ABID DHAENE, age 22, were arraigned in federal court on charges contained in an indictment returned by a federal grand jury on February 23, 2023. The four defendants were arrested in Waikiki over the weekend by agents of the Federal Bureau of Investigation (FBI). They all pled not guilty today, and trial was set for May 8, 2023, before U.S. District Judge Leslie E. Kobayashi. SOFYANE DHAENE was ordered released on conditions, and the three others are scheduled for detention hearings on March 7 and 8.
According to the indictment, the four individuals are charged with wire fraud involving allegations they engaged in a fraudulent investment scheme by which they obtained more than $300,000. The indictment alleges that in January 2022, the family of four arrived in Los Angeles, California, on Belgian passports and moved to Hawaii in or about September 2022. The indictment further alleges that, between October 2022 and February 2023, they solicited multiple persons in Hawaii to invest money, based on false promises that the money would be placed in high return investment contracts supposedly guaranteed by a mainland wealth management firm and its partner. HAITEM DHAENE represented he was a partner in the mainland firm, when, according to the indictment, he was not a partner, and the wealth management firm did not know about his claimed association or the purported investment contracts.
Among other things, the indictment alleges the defendants falsely claimed to have formed a private equity investment group; that they provided an investment contract promising a return of 315% per annum; and that the contract bore the name and forged signature of a mainland wealth advisor. As a result of these promises, various individuals gave the four defendants approximately $309,000, including $294,000 withdrawn from an individual’s 401k retirement account.
According to U.S. Attorney Clare E. Connors, these charges are the product of close collaboration between federal and state law enforcement authorities. Specifically, the investigation was conducted jointly by the FBI and the Special Investigation and Prosecution Division (SIPD) of the Hawaii Department of the Attorney General.
“Our office is committed to investigating and prosecuting those who commit a wide variety of frauds in Hawaii,” stated U.S. Attorney Connors. “Here, we are pleased to work closely with SIPD, and believe this partnership substantially increases law enforcement’s ability to protect our community.”
“The Department of the Attorney General’s Special Investigation and Prosecution Division was created to give Hawaii a valuable tool to combat white-collar crime and human trafficking,” said Anne Lopez, Attorney General of the State of Hawaii. “This collaboration between SIPD, the United States Attorney’s Office, the FBI, and other law-enforcement partners will bring justice to Hawaii residents.”
"This alleged fraud is an unconscionable display of greed and manipulation," said Special Agent in Charge Steven Merrill. "The FBI is committed to bringing to justice those who perpetrate these outrageous scams."
Each defendant is charged with three counts of wire fraud, and each count carries a maximum penalty of 30 years in prison as well as a fine of up to $1 million. An indictment is merely an accusation, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI in partnership with SIPD. It is being prosecuted by Assistant U.S. Attorney Craig Nolan and Deputy Attorney General Lauren M. Nakamura, who also serves as a Special Assistant U.S. Attorney.
Four Gangster Disciples Leaders Convicted of Racketeering Conspiracy and MurderRead the Press Release
EAST ST. LOUIS, Ill. – A federal jury convicted four leaders of the Gangster Disciples today for their participation in a years-long interstate racketeering conspiracy involving drug trafficking, witness tampering, and multiple murders.
According to court documents and evidence presented at trial, the four defendants were members of the Gangster Disciples, a gang with a decades-long history of lawlessness and violence. The Gangster Disciples have a presence throughout the United States, including in state and federal prisons. The gang employs a structured hierarchy, with leadership positions such as national “Board Members” and state “Governors.” As part of their efforts to maintain control of the gang, the defendants murdered two other members who opposed their regime.
On May 18, 2018, Warren Griffin, aka GG, aka Big Head, 53, of Glenwood, Illinois, drove to the south side of Chicago with fellow Gangster Disciples Board Member Anthony Dobbins to murder a former powerful Board Member (Victim-1), because he opposed their status as Board Members in the gang. Griffin lured Victim-1, and Dobbins came up behind Victim-1 and shot him three times in the back and once in the face.
On April 28, 2018, Sean Clemon, aka Pops, 52, of Cape Girardeau, Missouri, and Dominique Maxwell, aka D-Mac, aka Monster, 30, also of Cape Girardeau, on orders from Frank Smith, aka Little Frank, aka Red Beard, 49, of Naperville, Illinois, fatally shot another victim (Victim-2) and injured two other men in Bridgeton, Missouri. The shooting was part of a leadership dispute in which Board Members Smith and Griffin sought to remove another Gangster Disciple member from his position as Governor of Missouri. Smith texted “Mike Tyson Punch Out” to Maxwell prior the shooting, which was an order to commit “extreme violence,” including murder. Both Clemon and Maxwell were promoted to leadership positions within the gang for committing this murder.
The defendants’ other acts of violence included a nightclub stabbing in East St. Louis, Illinois, and a nonfatal shooting in Cape Girardeau, Missouri. Gangster Disciples members also engaged in various acts of drug trafficking, including a scheme to smuggle the synthetic drug “K2” into Missouri state prisons.
All four defendants were convicted of Racketeer Influenced and Corrupt Organizations (RICO) Act conspiracy and murder in aid of racketeering, and face a mandatory sentence of life in prison. The sentencing dates have not yet been set.
Smith, Maxwell, and Clemon were also convicted of racketeering conspiracy, as well as firearms offenses related to the murder of Victim-2. Griffin was also convicted of racketeering conspiracy, as well as firearms offenses related to the murder of Victim-1.
Dobbins pleaded guilty to racketeering conspiracy on Jan. 17.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Rachelle Aud Crowe for the Southern District of Illinois made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Cape Girardeau Field Office; Federal Bureau of Prisons; FBI; DEA; Missouri Department of Corrections; Illinois State Police; Chicago Police Department; Bridgeton Police Department; Cape Girardeau Police Department; Major Case Squad of Greater St. Louis; and O’Fallon (IL) Police Department investigated the case.
Trial Attorneys Jeremy Franker, Alexander Gottfried, and Christopher Usher of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. Assistant U.S. Attorney Ali Summers for the Southern District of Illinois provided substantial assistance.
Four Gangster Disciples Leaders Convicted of Racketeering Conspiracy and MurderRead the Press Release
A federal jury convicted four leaders of the Gangster Disciples today for their participation in a years-long interstate racketeering conspiracy involving drug trafficking, witness tampering, and multiple murders.
According to court documents and evidence presented at trial, the four defendants were members of the Gangster Disciples, a gang with a decades-long history of lawlessness and violence. The Gangster Disciples have a presence throughout the United States, including in state and federal prisons. The gang employs a structured hierarchy, with leadership positions such as national “Board Members” and state “Governors.” As part of their efforts to maintain control of the gang, the defendants murdered two other members who opposed their regime.
On May 18, 2018, Warren Griffin, aka GG, aka Big Head, 53, of Glenwood, Illinois, drove to the south side of Chicago with fellow Gangster Disciples Board Member Anthony Dobbins to murder a former powerful Board Member (Victim-1), because he opposed their status as Board Members in the gang. Griffin lured Victim-1, and Dobbins came up behind Victim-1 and shot him three times in the back and once in the face.
On April 28, 2018, Sean Clemon, aka Pops, 52, of Cape Girardeau, Missouri, and Dominique Maxwell, aka D-Mac, aka Monster, 30, also of Cape Girardeau, on orders from Frank Smith, aka Little Frank, aka Red Beard, 49, of Naperville, Illinois, fatally shot another victim (Victim-2) and injured two other men in Bridgeton, Missouri. The shooting was part of a leadership dispute in which Board Members Smith and Griffin sought to remove another Gangster Disciple member from his position as Governor of Missouri. Smith texted “Mike Tyson Punch Out” to Maxwell prior the shooting, which was an order to commit “extreme violence,” including murder. Both Clemon and Maxwell were promoted to leadership positions within the gang for committing this murder.
The defendants’ other acts of violence included a nightclub stabbing in East St. Louis, Illinois, and a nonfatal shooting in Cape Girardeau, Missouri. Gangster Disciples members also engaged in various acts of drug trafficking, including a scheme to smuggle the synthetic drug “K2” into Missouri state prisons.
All four defendants were convicted of Racketeer Influenced and Corrupt Organizations (RICO) Act conspiracy and murder in aid of racketeering, and face a mandatory sentence of life in prison. The sentencing dates have not yet been set.
Smith, Maxwell, and Clemon were also convicted of racketeering conspiracy, as well as firearms offenses related to the murder of Victim-2. Griffin was also convicted of racketeering conspiracy, as well as firearms offenses related to the murder of Victim-1.
Dobbins pleaded guilty to racketeering conspiracy on Jan. 17.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Rachelle Aud Crowe for the Southern District of Illinois made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives Cape Girardeau Field Office; Federal Bureau of Prisons; FBI; DEA; Missouri Department of Corrections; Illinois State Police; Chicago Police Department; Bridgeton Police Department; Cape Girardeau Police Department; Major Case Squad of Greater St. Louis; and O’Fallon (IL) Police Department investigated the case.
Trial Attorneys Jeremy Franker, Alexander Gottfried, and Christopher Usher of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case. Assistant U.S. Attorney Ali Summers for the Southern District of Illinois provided substantial assistance.
Former Luxury Homebuilder Indicted for Obstruction of Grand Jury Proceeding and False StatementsRead the Press Release
BOSTON – The former owner of a now-defunct luxury home building business in West Springfield has been indicted for allegedly obstructing a grand jury’s investigation of his businesses’ cash receipts.
Kent Pecoy, 64, of Wilbraham, was indicted on one count of corrupt concealment of records with intent to impair their use in an official proceeding, one count of obstruction of an official proceeding and one count of count of false statements. Pecoy will appear in federal court in Springfield at a later date.
Pecoy was previously indicted in a separate case in December 2019 along with his son, Jason Pecoy, and Kevin M. Kennedy, the former owner of a golf management company, for allegedly conspiring to defraud the United States by concealing cash payments for the construction of Kennedy’s two homes in East Longmeadow and West Dennis. The defendants were later charged in a superseding indictment in January 2020. All three defendants have pleaded not guilty in that case and are pending trial.
Pecoy was the sole owner, operator and chief executive officer of Kent Pecoy & Sons, Construction, Inc. (KPSC) – a West Springfield-based commercial and luxury home construction company. According to today’s indictment, between 2013 and 2016, a customer allegedly paid Pecoy and KPSC hundreds of thousands of dollars in cash to construct a home in West Dennis. It is alleged that Pecoy failed to deposit most of the cash into business bank accounts and instead distributed the cash directly to vendors and subcontractors for the project.
On April 29, 2015, a federal grand jury sitting in Springfield issued KPSC a subpoena requiring the production of KPSC’s cash for services records beginning in Jan. 1, 2012. In June 2015, KPSC produced the subpoenaed records which allegedly included documents confirming that KPSC had made numerous, substantial cash payments to the lumber company, but no records indicating KPSC’s own receipt of cash. It is alleged that in response to a request for additional records concerning KPSC’s cash receipts, Pecoy falsely stated that KPSC had no additional records concerning KPSC’s cash receipts.
During a search of KPSC’s business premises in April 2016, it is alleged that numerous documents were discovered relating to KPSC’s receipt and distribution of cash from the customer home construction project, including payment ledgers, contracts, project check lists and e-mails exchanged between Pecoy and the project manager.
The charges of corrupt concealment of records with intent to impair their use in an official proceeding and obstruction of an official proceeding each provide for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $250,000. The charge of making false statements provides for a sentence of up to five years in prison, at least 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 Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Steven H. Breslow of Rollins’ Springfield Branch Office and Trial Attorney Eric B. Powers of the Justice Department’s Tax Division are 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 Florida Highway Patrol Captain Pleads Guilty to Accessing Child Sexual Abuse MaterialRead the Press Release
MIAMI – Christopher James Chappell, a 46-year-old former Captain with the Florida Highway Patrol, has pled guilty to accessing child sexual abuse material.
As part of his guilty plea, Chappell admitted to watching a video depicting the sexual abuse of a prepubescent minor child while he engaged in sexual acts with another individual. Chappell then sent a photo of his sexual encounter to a third individual in a group chat, which showed the child sexual abuse material playing in the background.
U.S. District Judge Rodney Smith will sentence Chappell on May 19, Fort Lauderdale, Florida.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Markenzy Lapointe for the Southern District of Florida and acting Special Agent in Charge Maged Behnam of the FBI Miami Field Office announced the conviction.
FBI Miami investigated the case. Assistant U.S. Attorney Lacee Elizabeth Monk is prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-60148.
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Former Benton County Coach and Youth Pastor Sentenced to 45 Years for Exploiting ChildrenRead the Press Release
Memphis, TN – Joshua Henley, 34, formerly of Benton County, has been sentenced to 45 years in federal prison for producing sexually explicit images of a minor, transporting, and possessing child exploitation material, and transporting a minor interstate with the intent to engage in sexual activity. United States Attorney Kevin G. Ritz announced the sentence today.
According to the information presented in court, from 2017 until April 2021, Henley was the pastor at Holladay Church of Christ and coached the girls’ basketball team at Holladay Elementary. In
April 2021, Henley left Benton County to become the youth pastor at a church in Indiana. In June
2021, Henley returned to Benton County and transported a teen to Indiana under the guise that she was to assist at his new parish. Instead, Henley sexually assaulted the teen. Henley was arrested as he was driving her back to Tennessee.At the time of Henley’s arrest, he had a cell phone which contained sexually explicit images and videos of two other Tennessee teenagers with which he had contact through SnapChat and FaceTime.
The teens each disclosed that Henley also engaged in sexual activity with them.Henley has worked with young people in other states including Oklahoma and Texas.
United States District Judge S. Thomas Anderson sentenced Henley to 540 months in federal prison to be followed by ten years of supervised release. There is no parole in the federal system.
This case was investigated by the FBI’s Crimes Against Children Task Force, the Benton County
Sheriff’s Department, the Evansville Police Department and TBI’s Technical Service Unit.United States Attorney Kevin Ritz thanked Assistant United States Attorneys Debra Ireland and
Lauren Delery, who prosecuted this case, as well as law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901)
544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.Former Accountant Providing Financial Services to Utah Charter Schools Indicted for $2.5M Fraud SchemeRead the Press Release
Salt Lake City, Utah – A federal grand jury in Salt Lake City, Utah returned an indictment March 1, 2023, charging a Utah man with allegedly planning and executing a scheme to steal money from two Utah charter schools for his own personal gain and the benefit of his family, including paying for cosmetic surgeries for his wife.
According to court documents, Cole Arnold, 39, of Kaysville, Utah, was an accountant for Academica West Services, which provides services for charter school business operations. Arnold provided financial services to several charter schools in Utah, including North Davis Preparatory Academy and Ascent Academies. Beginning in August 2017 and continuing through June 2022, Arnold used his position at Academica West Services to allegedly steal $2,563,348.23 from North Davis Preparatory and Ascent Academies. According to the indictment, Arnold’s fraudulent activity included: creating false invoices, bills and credit card statements claiming fees for school supplies, teacher salaries, and other fictitious line-item expenses, for the purpose of generating payments to credit cards controlled by himself; creating false computer journal entries claiming a variety of school related expenses; passing fraudulently obtained money through Venmo and a bank account in the name of Upper Limit Innovation, a registered Utah business that Arnold was a co-owner and registered agent of, to transfer the fraudulently obtained money. The stolen charter school funds were used by Cole for travel, concerts, cosmetic surgeries, home improvements, jewelry, furniture, electronics, and other personal expenses.
Arnold is charged with 10 counts of wire fraud, and five counts of money laundering. The defendant is scheduled for his initial court appearance March 30, 2023, at 1:00 p.m. in courtroom 8.4 before a U.S. Magistrate Judge at the Orrin G. Hatch United States District Courthouse in Salt Lake City, Utah.
U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated by the FBI Salt Lake Financial Crimes Task Force, which includes IRS-CI, Layton Police Department and the FBI.
Assistant U.S. Attorney, Jennifer K. Muyskens, for the District of Utah is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Firearm Possession Results in Prison SentenceRead the Press Release
A man who was found in possession of a firearm by Fayette County authorities who were initially assisting in a runaway child investigation was sentenced today to more than two years in federal prison.
Rusty Joe Barker, age 39, from Hawkeye, Iowa, received the prison term after a November 7, 2022 guilty plea to one count of being a felon in possession of a firearm.
At the guilty plea, Barker admitted he possessed a firearm on August 10, 2022, and that he had previously been convicted in 2007 in Chickasaw County, Iowa, of the felony offenses of third-degree kidnapping, and two counts of willful injury-causing serious injury. The firearm was found in Barker’s house.
Barker was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Barker was sentenced to 30 months’ imprisonment and must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Barker is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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 prosecuted by Assistant United States Attorney Patrick J. Reinert and investigated by Fayette County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-02057.
Follow us on Twitter @USAO_NDIA.
Federal Grand Jury Indicts Man for Weapons ViolationRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today, that on March 3, 2023 a federal grand jury indicted LARYAN REED, age 22, with a weapon violation that occurred on February 17, 2023.
In Count 1 of the indictment, REED is charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). If convicted, REED faces a maximum sentence of 15 years of imprisonment, a fine of up to $250,000, a period of up to 3 years of supervised release, and a mandatory special assessment fee of $100.00.
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.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Orleans Police Department. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit.
reed_laryan_indictment_redacted_sanitized.pdfFort Washakie Man Sentenced for Assault Resulting in Substantial Bodily Injury to a Person Under the Age of 16Read the Press Release
United States Attorney Nicholas Vassallo announced today that Chief United States District Court Judge Scott Skavdahl sentenced LESLIE FRANK NOSEEP, III, age 20, of Fort Washakie, Wyoming, to six months in prison for assault resulting in substantial bodily injury to a person under the age of 16. The sentence includes three years of supervised release, restitution in the amount of $458.96 and a $100 special assessment.
On September 10, 2022, Noseep was driving on Old Wind River Highway on the Wind River Indian Reservation while intoxicated. Noseep swerved into the oncoming lane of travel and struck a 14-year-old boy who was riding his skateboard on the side of the road. The boy suffered deep lacerations on his knees and calf. Noseep fled the scene and was later apprehended by law enforcement.
This crime was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Kerry Jacobson prosecuted the case.
Case No. 22-cr-00100-SWS
Evansville Felon Sentenced to 14 Years in Federal Prison for Trafficking Methamphetamine, Illegally Possessing Multiple Guns and Body ArmorRead the Press Release
EVANSVILLE- Deariel Simmons, 29, of Evansville, Indiana was sentenced to 14 years in federal prison after pleading guilty to possession with intent to distribute methamphetamine and illegally possessing a firearm.
According to court documents, on July 15, 2020, officials with the Drug Enforcement Administration (DEA) and the United States Postal Service (USPIS) opened an investigation into Simmons after intercepting a package sent from California that contained two kilograms of methamphetamine hidden inside of a paint can. The package was delivered to an Evansville address where Simmons was observed picking it up and leaving in his Ford Fusion.
When Vanderburgh County Sheriff’s deputies initiated a traffic stop of Simmons, he fled the scene and led deputies on a vehicle pursuit. Simmons eventually threw the package out the window of his vehicle, then jumped out and fled on foot. After a brief foot chase, deputies lost track of Simmons when he jumped over a six-foot fence and ran toward civilians. Dash cam footage showed Simmons later returning to his truck and leaving the scene. Simmons escaped but was later located and arrested.
On October 8, 2020, law enforcement officers executed a search warrant at Simmons’ residence. Officers seized five digital scales, a plastic bag containing 17.6 grams of methamphetamine, marijuana, an electronic money counter, a body armor vest, four loaded firearms, and ammunition.
Simmons is prohibited from possessing a firearm due to his previous felony robbery conviction in Vanderburgh County.
“This defendant was a tremendous danger to our community: trafficking meth, fleeing from police, and illegally equipping himself with loaded guns and body armor,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “His prior felony convictions make these crimes all the more egregious. The serious federal prison sentence imposed today shows that the U.S. Attorney’s Office, along with our partners at the USPIS, DEA, and Vanderburgh County Sheriff’s Office, will not tolerate armed methamphetamine traffickers in our neighborhoods.”
“This successful partnership between the US Postal Inspection Service, the DEA, and local law enforcement should serve as a warning to anyone dealing in these dangerous and illegal substances that the Postal Inspection Service and our partners are unwavering in our mission to identify and disrupt their illegal activity,” said Rodney M. Hopkins, Inspector-in-Charge, U.S. Postal Inspection Service Detroit Division.
DEA and USPIS investigated this case with valuable assistance provided by the Vanderburgh County Joint Task Force and Vanderburgh County Sheriff’s Office. The sentence was imposed by U.S. District Court Judge, Richard L. Young. Judge Young also ordered that Simmons be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorneys Lauren M. Wheatley, Matthew B. Miller, and Todd S. Shellenbarger, who prosecuted this case.
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District Man Sentenced to Five Years in Prison for Armed Carjacking and Robbery in Northeast WashingtonRead the Press Release
WASHINGTON - Devin Gatewood, also known as James J. Williams, 23, of Washington, D.C., was sentenced today to five years in prison on felony charges stemming from an armed carjacking and robbery in the Trinidad area of Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department.
Gatewood pleaded guilty on November 3, 2022, in the Superior Court of the District of Columbia, to one count of robbery, one count of carrying a dangerous weapon, and one count of unauthorized use of a vehicle. He was sentenced by the Honorable Jason Park. Following his prison term, Gatewood will be placed on three years of supervised release. At the time of the offense, Gatewood was on probation for an April 2022 misdemeanor firearms conviction in the Superior Court of the District of Columbia. The Honorable Heidi M. Pasichow revoked Gatewood’s probation in that case and has scheduled a sentencing hearing for March 13, 2023.
According to the government’s evidence, on the evening of August 28, 2022, Gatewood and an unidentified accomplice approached the victim, who was sitting in his parked vehicle in the 1100 block of Queen Street NE. The victim felt uneasy and got out of his car to make small talk with the men. Gatewood produced what appeared to be a 9mm handgun and communicated to the victim that he was being robbed. The victim laid down on the ground, while Gatewood and the accomplice took his iPhone, Apple Watch, car keys, and cash. Gatewood drove away in the victim’s vehicle, and the accomplice left in a separate vehicle.
The victim called the Metropolitan Police Department. MPD officers located the victim’s vehicle within minutes and followed the vehicle until it came to an abrupt stop. Gatewood jumped out of the vehicle’s driver’s seat and began to flee on foot but was quickly apprehended. No firearm was recovered. Gatewood has remained in custody since his arrest.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those investigating the case from the Metropolitan Police Department. They also acknowledged the efforts of those working on the case from the U.S. Attorney’s Office, including Paralegal Specialist Crystal L. Waddy. Finally, they commended the work of Assistant U.S. Attorney Paul V. Courtney, who investigated and prosecuted the case.
Defendant Sentenced to 17 Years for Murder-For-Hire Scheme and Related Shooting in PoughkeepsieRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and William V. Grady, the Dutchess County District Attorney, announced that JUSTTIN KENYOTTA HAYWOOD was sentenced to 17 years in prison for his participation in a murder-for-hire scheme and related shooting in Poughkeepsie in 2020 in which HAYWOOD, having been offered $5,000 to kill another individual, wrongly identified, pursued, and shot at a 17-year-old boy who had been playing basketball in a park with two friends in Poughkeepsie. HAYWOOD previously pled guilty to murder for hire and being a felon in possession of a firearm and ammunition before United States District Judge Nelson S. Román, who imposed the sentence.
U.S. Attorney Damian Williams said: “Justtin Haywood’s sentence shows that senseless acts of violence will be met with severe consequences. Haywood agreed to murder another individual and then shot at an innocent 17-year-old boy, who had been playing basketball with friends in a park. For this crime, Haywood will spend 17 years in federal prison.”
FBI Assistant Director Michael J. Driscoll said: “As this sentence demonstrates, there is no place in our community for anyone willing to commit murder. Criminal behavior like Haywood's is a dangerous bane to society and often results in innocent people being placed in harm's way. The FBI's Hudson Valley Safe Streets Task Force and our partners in law enforcement work tirelessly to make those who have complete disregard for humanity face the consequences of their actions.”
Dutchess County Chief Assistant District Attorney Matthew Weishaupt said: “We commend the joint effort by all the agencies involved in bringing Mr. Haywood to justice for this horrific shooting and targeting of an innocent young man. Let the message be clear: we will use all available resources to bring violent criminals to justice and ensure the safety of our community. We have an outstanding working relationship with our federal partners and will continue to work together to combat this senseless violence.”
According to the Complaint and the Information filed against the defendant, other documents filed in federal court, and statements made in public court proceedings:
In late December 2019 and early January 2020, Haywood traveled from Colorado to North Carolina and then ultimately up to Poughkeepsie, New York, and met with a co-conspirator (“CC-1”) who offered him $5,000 to kill another male individual. Haywood agreed to do so, and on January 15, 2020, wrongly believing to have found his intended target, approached three teenagers playing basketball in King Street Park in Poughkeepsie and attempted to shoot one of them, a 17-year-old boy, ultimately chasing them in his car as they fled on foot and firing multiple shots from inside of his car. Fortunately, no one was hit.
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In addition to his prison sentence, HAYWOOD, 40, of Aurora, Colorado, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding work of the FBI, the Town of Poughkeepsie Police Department, the City of Poughkeepsie Police Department, and the Dutchess County District Attorney’s Office.
The FBI’s Hudson Valley Safe Streets Task Force, the Town of Poughkeepsie Police Department, the City of Poughkeepsie Police Department, and the Dutchess County District Attorney’s Office conducted a joint investigation of the 2020 shooting and murder-for-hire scheme.
This case is being handled by the Office’s White Plains Division. Assistant U.S. Attorney Kevin Sullivan is in charge of the prosecution.
Davenport Man Sentenced to Federal Prison for Firearm ChargesRead the Press Release
DAVENPORT, IA – A Davenport man was sentenced on February 28, 2023, to 106 months in prison for possessing a firearm during and in relation to a drug trafficking crime and possessing a firearm as a felon.
According to court documents, the investigation into Darron Javon Mayo, 25, began when law enforcement found a car with multiple guns in it while clearing a parking lot before a Lil Durk concert in Moline. Law enforcement reviewed surveillance footage and recognized Mayo as one of the people associated with the car. One of the pistols had Mayo’s fingerprint on it.
A search warrant was then executed on Mayo’s residence in Davenport. During the search of Mayo’s residence, law enforcement found cocaine, Clonazolam, and more than 700 grams of marijuana. Officers also located a loaded firearm. As part of his plea, Mayo admitted to possessing the marijuana with the intent to distribute it in the Quad Cities area. Furthermore, Mayo admitted to possessing the firearm in furtherance of distributing and protecting his marijuana. Mayo was convicted of a felony in Illinois and was therefore prohibited from possessing firearms. Following his prison term, Mayo was ordered to serve five years of supervised release.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case.
Court Finds Gross Negligence, Orders Oil Company to Pay United States and State of California $65 MillionRead the Press Release
On March 2, the U.S. District Court for the Central District of California entered final judgment against HVI Cat Canyon Inc., formerly known as Greka Oil & Gas Inc., in a civil suit brought jointly by the United States, on behalf of the U.S. Environmental Protection Agency (EPA) and the U.S. Coast Guard, and by the State of California on behalf of the California Department of Fish and Wildlife (CDFW) and the California Regional Water Quality Control Board, Central Coast Region.
The United States and California filed the suit alleging that HVI Cat Canyon, which previously owned and operated multiple oil and gas production facilities in Santa Barbara County, California, was liable for:
- 12 oil spills into waters of the United States in violation of the Clean Water Act;
- 17 oil spills into waters of the state in violation of state law;
- Reimbursement of the federal and state governments’ costs of cleaning up the oil spills;
- Natural resource damages under state law for harm to fish, plant, bird, or animal life and habitat; and
- Numerous violations of federal Oil Pollution Prevention Regulations identified in 16 EPA inspections across 11 facilities.
The court’s judgment follows an earlier 65-page opinion dated Feb. 25, in which the court awarded the United States and California the full amount of civil penalties, response costs, and damages that they sought at trial.
“We applaud the court’s decision to hold HVI Cat Canyon responsible for the full extent of the harm they caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environmental and Natural Resources Division. “This outcome is a prime example of strong federal and state partnership and persistence in pursuing justice against a company that long flouted its compliance obligations.”
“This final judgment reflects EPA’s continued commitment to ensuring companies that operate oil and gas production facilities comply with federal clean water laws and prevent unnecessary oil spills,” said Regional Administrator Martha Guzman of EPA Pacific Southwest. “Holding companies responsible for failing to meet their environmental obligations is key to protecting our waterways and surrounding communities.”
“The California Department of Fish and Wildlife is committed to protecting our state’s pristine natural resources,” said CDFW Director Charlton H. Bonham. “Staff from our Office of Spill Prevention and Response work daily to prevent, prepare for and respond to oil spill incidents statewide. The collective efforts of state and federal regulators to hold this company accountable for the significant impacts they have caused is evidence of our dedication to fighting every day for the resources we hold in trust for all Californians.”
“HVI Cat Canyon, formerly GREKA, is being held accountable in their long history of multiple violations and on-going non-compliance across many agencies,” said Regional Water Board Chair Jane Gray. “This judgment is a testament to the multi-year efforts of agencies and the legal system’s ability to provide justice for egregious actions perpetrated against the environment.”
The court found that the 12 spills into waters of the United States, which occurred from 2005 through 2010, resulted from HVI Cat Canyon’s gross negligence. “Based on the totality of the circumstances, the spills evinced a pattern of reckless disregard for good oilfield industry practices, and a series of negligent acts or omissions by HVI concerning oil spill prevention, and pipeline and facility inspection and maintenance,” the court wrote. In total, the court found that the spills had discharged approximately 26,584 barrels of crude oil and produced water, a briny waste by-product of oil production. The court also ruled that HVI Cat Canyon had committed a total of 60 violations of the federal regulations at 11 facilities for a total of 86,842 days of violation.
Ultimately the court held HVI Cat Canyon liable to the United States for $40 million in civil penalties for the spills, $15 million in civil penalties for the violations of federal regulations, and $2.5 million in cleanup costs. The court also held HVI Cat Canyon liable to California for $7.7 million in civil penalties and nearly $200,000 in natural resource damages and cleanup costs.
The case is styled United States, et al. v. HVI Cat Canyon, Inc., formerly known as Greka Oil & Gas Inc., No. 2:11-cv-05097-FMO-SS (C.D. Cal.). The court’s order is available through the court’s website, www.cacd.uscourts.gov.
Co-Founder and Leader of a Violent Drug and Sex Trafficking Gang called the “Sevens,” Sentenced to Life Plus a Consecutive Ten YearsRead the Press Release
PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero and announced today that Alexander Malave, 31, of Reading, Pennsylvania, co-founder and Top General of a gang he named the Sevens, was sentenced to lifetime imprisonment followed by a consecutive mandatory 10 years’ imprisonment.
Malave was one of 14 defendants charged with various offenses involving the violent acts of the Sevens gang, whose members represented other gangs such as the Gangster Disciples, Bloods, and Crips. Ten offenders pled guilty. Malave was convicted, along with Karvarise Person, 33; James Goode, 47 and Shaquile Newson, 29, by a jury on June 2, 2022, of offenses including conspiracy to participate in a racketeering enterprise; conspiracy to commit sex trafficking by force, fraud, and coercion, and of a minor; violent crime in aid of racketeering, including kidnapping and assault with a dangerous weapon; sex trafficking by force, fraud, or coercion; and discharging a firearm in the course of committing a violent offense - all arising from his leadership in in the “Sevens” gang, which took control over and operated out of a 50-room boarding house on South 4th Street in the City of Reading.
One trial witness testified that when the Sevens gang took over the boarding house, it was “like Russia invading Ukraine.” Malave was one of the gang’s most violence members. In the course of committing his violent offenses, he kidnapped, maimed, assaulted, imprisoned, and otherwise wreaked havoc and harm to those he encountered. For example, during one vicious attack, Malave grabbed a man from behind and savagely used a knife to slice him from ear to ear, causing him excruciating pain and permanent disfigurement. After he was sliced and maimed, the man was kept locked naked in a closet for three days, provided no food or water, during which time the Sevens gang members kept watch and discussed who would kill him. During the course of the three days, the man was also subject to additional beatings. On another occasion, Malave shot another individual in an attempt to demonstrate the Sevens gang’s power and control over the boarding.
“Today’s sentencing ensures the permanent end of Malave’s reign of terror over the City of Reading and the demise of the Sevens gang,” said U.S. Attorney Romero. “We will continue to partner with our local counterparts to bring the resources necessary to investigate, prosecute and dismantle violent gangs.
The sentencing of the “Seven’s” leader, Alexander Malave, to a lifetime in federal prison should serve as a warning to criminal organizations that perpetuate violence and terrorize our communities,” said HSI Philadelphia Special Agent in Charge William S. Walker. “HSI’s resolve to disrupt the abhorrent acts and to dismantle the criminal enterprises of gangs in order to restore safety to our community’s streets is and always will be absolute.”
"This Gang and its members were responsible for despicable criminal acts in our community," said John T. Adams, Berks County District Attorney. "Again, I would like to thank our Federal Partners for the collaborative effort with local authorities to dismantle this Criminal enterprise and for seeking Justice for the victims in this case. Hopefully, today's sentencing sends a message that this type of criminal conduct will not be tolerated in our community, and those that violate our Laws will receive significant penalties for their actions. "
“The sentencing of Alexander Malave to life in prison for his role as a leader in the Sevens gang will ensure that he will never again terrorize and prey on innocent victims like he did in the City of Reading,” said Reading Police Chief Richard A. Tornielli. “The Reading Police Department, with our partner law enforcement agencies, will continue to prioritize the investigation and dismantling of criminal organizations that conduct acts of violence in our city. I want to thank Homeland Security Investigations and the US Attorney’s Office for their hard work and collaboration on this and other cases that will continue to make the City of Reading a safer place.”
The case was investigated by Homeland Security Investigations and the Reading Police Department and is being prosecuted by Assistant United States Attorneys Sherri A. Stephan and Justin Ashenfelter.
City of Gloucester Enters into Agreement to Resolve Clean Water Act Violations Related to Discharge of Undertreated Sewage into Massachusetts BayRead the Press Release
BOSTON – The announcement of a consent decree with the City of Gloucester, Mass. resolves violation of the federal and state Clean Water Acts regarding the City’s water pollution control facility that discharges undertreated waste into Massachusetts Bay.
The settlement requires the City of Gloucester (City) to undertake a construction project to add secondary treatment to its water pollution control facility. Secondary treatment is a combination of physical and biological processes that break down many harmful elements in municipal sewage. The City has operated without secondary controls on its treatment plant pursuant to a waiver issued in 2001. EPA and the Massachusetts Department of Environmental Protection (MassDEP) more recently determined that water pollution data indicated that the waiver should not be renewed and that upgrading the City’s treatment plant to provide secondary treatment is needed. In response, under the proposed settlement the City agreed to proceed with the upgrades, an expected cost in excess of $150 million.
In 2022, EPA and MassDEP issued a new National Pollution Discharge Elimination System (NPDES) Permit to the City of Gloucester that included pollution limits which the current treatment plant cannot meet because the plant only provides primary treatment (clarification/settling and disinfection). Complying with the proposed consent decree, if entered by the federal court, will help ensure that Gloucester comes into compliance with the Clean Water Act.
“Fiercely protecting our environment is a civil and human rights issue. Ensuring that bodies of water are not contaminated with harmful toxins and pollutants remains a vital part of this work. This Consent Decree requires Gloucester to take significant steps to improve the quality of the water it discharges into Massachusetts Bay,” said United States Attorney Rachael S. Rollins. “The successful implementation of the Consent Decree will ensure a healthier environment for the residents of Gloucester and all of us in the Commonwealth. My office remains committed to fighting for healthier, cleaner and safer communities.”
“This settlement is the result of many years of work between EPA and our state and local partners to address sewage pollution from this community entering Massachusetts Bay. The work required under the proposed settlement will help result in cleaner and healthier water for overburdened communities, and a better-protected environment in nearby areas. Notably, this means Gloucester will be the final major city in the eastern U.S. to install secondary treatment at their wastewater treatment facilities. The timing of this is fortunate, as it is a great time to make investments in water treatment infrastructure thanks to funding assistance available in the Bipartisan Infrastructure Law that may help defray costs borne by local ratepayers,” said EPA New England Regional Administrator David W. Cash.
“The Clean Water Act requires controls to limit the harmful impacts of sewage discharges,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The settlement will ensure significant, long-term investment into the City’s water treatment infrastructure to safeguard the health of Massachusetts Bay.”
“We are grateful to our federal and municipal partners for working with us to improve the water quality, and thus the overall health, of Gloucester’s residents,” said Attorney General Andrea Joy Campbell. “These are necessary measures as we continue to ensure that residents, especially those in our coastal communities, live in a healthy and safe environment.”
The City of Gloucester has already provided an aggressive schedule to EPA and MassDEP for design and construction of secondary treatment. The City has proposed to complete design and bidding of the project by the end of 2024; complete construction of secondary treatment by the end of 2027; and achieved compliance with all permit limits by March 30, 2028.
Undertreated sewage from the City’s existing water treatment facility results in a variety of unauthorized discharges into Massachusetts Bay, including disease causing organisms and toxic pollutants.
The proposed consent decree is subject to a 30-day public comment period and court approval after it is published in the Federal Register. It is available at https://www.justice.gov/enrd/consent-decrees
U.S. Attorney Rollins; EPA Administrator Cash; AAG Kim and AG Campbell made the announcement today. Assistant U.S. Attorney Annapurna Balakrishna of Rollins’ Civil Division; Henry Friedman, Assistant Section Chief for the Department of Justice’s Environment and National Resources Division (DOJ-ENRD); Brian Donohue, Senior Trial Attorney for DOJ-ENRD; and Jeffrey Kopf, Senior Enforcement Counsel for EPA handled the matter.
More Information:
How EPA works to protect water by ensuring compliance with environmental laws and regulations: https://www.epa.gov/enforcement/water-enforcement
How municipalities manage wastewater: https://www.epa.gov/npdes/municipal-wastewater
Final Permit for the City and 301(h) decision: https://www.epa.gov/system/files/documents/2025-06/finalma0100625permit2-2022.pdf
Charleston Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – Larry Wayne Legg, 55, of Charleston, pleaded guilty today to conspiracy to distribute methamphetamine.
According to court documents and statements made in court, Legg admitted to obtaining quantities of methamphetamine from co-defendant Justin Allen Bowen over several months prior to December 5, 2022. Legg further admitted to selling the methamphetamine with co-defendant Kimberly Dawn Legg out of their Lotus Drive residence in Charleston. Larry Wayne Legg would typically weigh the methamphetamine for individual sales and Kimberly Dawn Legg would handle the money. The two shared a cell phone to arrange obtaining additional quantities of methamphetamine from Bowen.
On December 5, 2022, law enforcement officers searched the Lotus Drive residence and found approximately 1 pound of methamphetamine. Larry Wayne Legg admitted to receiving the methamphetamine from Bowen and further admitted that he intended to sell the methamphetamine with Kimberly Dawn Legg.
Larry Wayne Legg is scheduled to be sentenced on June 27, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
Bowen pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine on February 23, 2023. Bowen and Larry Wayne Legg were indicted along with Kimberly Dawn Legg, Jasper Wemh, Richard Allen Bowen, McKenzie Bowen, Nicholas Bradford Confere, and Stanley Aaron Burkes. The remaining defendants are scheduled for trial on April 25, 2023. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the Charleston Police Department, the West Virginia State Police, and the Kanawha County Sheriff’s Office.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorneys Jeremy B. Wolfe and Nowles Heinrich are prosecuting the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:23-cr-4.
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Central Florida Man Pleads Guilty to Committing Almost $20 Million in FraudRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces that Nikesh Ajay Patel (38, formerly of Windermere) has pleaded guilty to an indictment charging him with 13 counts related to almost $20 million in fraud that he perpetrated while on federal pretrial release. Patel has pleaded guilty to one count of conspiracy to commit wire fraud, three counts of wire fraud, one count of conspiracy to commit money laundering, and eight counts of money laundering. He faces a maximum penalty of 30 years in federal prison for each count of conspiracy and wire fraud, and up to 20 years’ imprisonment for each money laundering count. His sentencing date has not yet been scheduled.
According to court documents, Patel, a Central Florida resident, was charged in 2014 by the U.S. Attorney’s Office in the Northern District of Illinois for a $179 million fraud scheme. He was arrested and released on bond. For the next several years, Patel claimed that he was cooperating with authorities and using his business skills to get funds to repay some of what he owed. In fact, Patel had devised a new scheme that netted him almost $20 million.
Patel’s new fraud scheme involved three parts. First, Patel fabricated fraudulent loan documents that falsely represented that a bank in Miami had authorized loans to be made to convert hotels in rural areas into assisted living facilities. Although the bank in Miami exists, it had never made any of the loans. The person who was listed as signing the loans (“Ron Elias”) was a fictitious identity used by Patel to perpetrate his conspiracy and scheme. Second, Patel applied to the United States Department of Agriculture (USDA) to guarantee the fake loans pursuant to its Business and Industry Guaranteed Loan Program. Third, after the USDA agreed to guarantee the fake loans, Patel sold the guaranteed portion of the fake loans to the Federal Agricultural Mortgage Corporation, also known as Farmer Mac. Patel executed the scheme on three occasions, receiving almost $20 million in proceeds. Patel used a portion of the funds from that scheme to pay some of his restitution, but he was saving much of it to flee the United States.
Patel’s sentencing in the Northern District of Illinois was set for January 9, 2018. Three days before that, he was arrested at the airport in Kissimmee. Patel had chartered a flight to Ecuador, where he intended to request political asylum and live off the proceeds that he had obtained from his new scheme. Instead, Patel’s bond was revoked and the U.S. Marshals Service transported him to the Northern District of Illinois. On March 6, 2018, Patel was sentenced to 25 years in federal prison for his case in the Northern District of Illinois.
This case was investigated by the Federal Bureau of Investigation and the U.S. Department of Agriculture, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta and United States Attorney Roger B. Handberg.
Bookkeeper Pleads Guilty to Embezzling $304,903 from Labor UnionRead the Press Release
Orlando, FL – United States Attorney Roger B. Handberg announces that Denise E. Kovacs (60, Clermont) has pleaded guilty to embezzlement. Kovacs faces a maximum sentence of five years in federal prison. Her sentencing is scheduled for June 21, 2023, before U.S. District Judge Wendy W. Berger.
According to court documents, Kovacs was the bookkeeper at Plumbers AFL-CIO Local 803, a labor union that represents plumbers and pipefitters in central Florida. During a nearly five-year period of employment, Kovacs stole $43,777 in cash from union dues and charged $261,126 in expenses on the union’s credit card. To conceal her theft, Kovacs altered internal business records which kept union officials in the dark about her ongoing embezzlement of funds.
This case was investigated by the Department of Labor, Office of Labor Management Standards. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
Beaumont Man Sentenced to Federal Prison for Convenience Store RobberyRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jamar Byars, also known as Jamar Limbrick, 21, pleaded guilty on April 25, 2022, to Hobbs Act robbery and brandishing a firearm during a crime of violence and was sentenced to 117 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to court documents, on Oct. 14, 2021, law enforcement officers responded to a call regarding an armed robbery at the Food Basket located on North 4th Street in Beaumont. An assailant, later identified as Byars, selected an item and brought it to the register. Byars then pulled out a firearm and pointed it at the clerk and demanded money. The clerk hesitated and Byars responded by striking the clerk in the head with the pistol twice. Byars then removed the money from the register and fled the scene. Byars was indicted by a federal grand jury on Jan. 5, 2022.
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.
This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.
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Bakersfield Man Pleads Guilty to Possessing a Firearm in Furtherance of Drug Trafficking at a Bakersfield MotelRead the Press Release
FRESNO, Calif. — Derrick Dewayne Gage, 41, of Bakersfield, pleaded guilty today to possessing a firearm in furtherance of a drug trafficking crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 23, 2022, law enforcement officers were on patrol at the Plaza Motel on Union Avenue in Bakersfield when they saw Gage inside a room with a firearm and what appeared to be drugs. The officers searched the room and seized a loaded Sarsilmaz 9 mm semi-automatic handgun as well as cocaine. Gage is prohibited from possessing firearms because he has prior felony convictions for domestic violence, participation in a criminal street gang, and sales of cocaine.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Bakersfield Police Department. Assistant U.S. Attorneys Justin J. Gilio, Kimberly A. Sanchez, and Laurel J. Montoya are prosecuting the case.
Gage is scheduled to be sentenced on July 10, 2023, by U.S. District Judge Jennifer L. Thurston. Gage faces five years to life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Aurora Man Indicted for Firearms ViolationsRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Timothy Taconi, age 69, of Aurora, has been indicted for dealing firearms without a license and possession of an unregistered firearm.
According to the indictment, from August 2020, through February 5, 2023, the defendant, not being a licensed dealer of firearms, engaged in the business of dealing in firearms. The defendant knowingly received and possessed a silencer, which is not registered to him in the National Firearms Registration and Transfer Record.
The defendant made his initial appearance before Magistrate Judge Scott T. Varholak on February 24, 2023.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Denver Division handled the investigation. Assistant United States Attorneys Kelly Churnet and Rebecca Weber are handling the prosecution.
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.
CASE NUMBER: 23-cr-00058
Ashburn Woman Convicted of $2.5 Million Pandemic FraudRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted an Ashburn woman today on charges of conspiracy, bank fraud, and money laundering.
According to court records and evidence presented at trial, Rose-Marie Nsahlai, 47, and her husband fraudulently obtained two Paycheck Protection Program (PPP) loans. The PPP was a program instituted by the U.S. Congress to help businesses affected by the coronavirus pandemic continue to pay salaries or wages to their employees. Nsahlai carried out the scheme in connection with two of her husband’s businesses by creating fraudulent payroll documentation for each business, and then submitting that documentation in support of the PPP loan applications. The fraudulent documentation represented that her husband’s businesses had dozens of employees with over $17 million of annual payroll in 2019, when in fact they had few, if any, employees.
In total, Nsahlai and her husband fraudulently obtained approximately $2,501,753 in loan proceeds, and they then spent those funds on items unrelated to any legitimate PPP-related expense. Those items included the down-payment on a 7,000-square-foot home in Leesburg. Nsahlai’s husband pleaded guilty to this scheme in 2021.
Nsahlai faces a maximum penalty of 30 years in prison when sentenced on July 19. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kareem Carter, IRS Criminal Investigation Acting Special Agent in Charge of the Washington D.C. Field Office; Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS); Michael Serra, Acting Special Agent in Charge of the Office of Inspector General for the Federal Deposit Insurance Corporation (FDIC); and Amaleka McCall-Brathwaite, Eastern Region Special Agent in Charge for the Small Business Administration, Office of Inspector General (SBA-OIG), made the announcement after U.S. District Judge Rossie D. Alston, Jr. accepted the verdict.
Assistant U.S. Attorneys Jordan M. Harvey and David A. Peters are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-234.
5 March 2023
Readout of Assistant Attorney General Kristen Clarke’s Trip to Selma, AlabamaRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division traveled to Selma, Alabama, over the weekend to commemorate the 58th anniversary of Bloody Sunday and meet with local organizations about the Justice Department’s commitment to civil rights and racial justice.
This morning, Assistant Attorney General Clarke spoke at the Martin and Coretta King Unity Breakfast at Wallace Community College in Selma, Alabama, reflecting on the painful history of Bloody Sunday and enumerating the Justice Department’s recent enforcement work to defend the civil rights of all people.
She said, “To quote Dr. King: ‘Selma, Alabama, became a shining moment in the conscience of man. If the worst in American life lurked in its dark streets, the best of American instincts arose passionately from across the nation to overcome it.’ The Civil Rights Division at the Justice Department is driven by that same belief. We are committed to defending the civil rights of all people in our country.” Read her full remarks here.
Later that morning, she spoke at a worship service hosted by the historic Brown Chapel African Methodist Episcopal Church. She said, “John Lewis may not be with us today, but … we all know that he fought the good fight. Today, our charge – indeed our sacred mission – is to pick up the baton that he has handed us and continue the fight for justice. The commemoration of Bloody Sunday is a moment to redouble our efforts to ensure that every American has voice in our democracy…” Read her full remarks here.
In the afternoon, Assistant Attorney General Clarke crossed the Edmund Pettus Bridge with a delegation of U.S Attorneys and hundreds of people, including civil rights leaders, distinguished clergy, elected officials and residents of Alabama.
On Monday, Assistant Attorney General Clarke will travel to Montgomery, Alabama, to meet with the U.S. Attorneys of the Attorney General’s Advisory Committee Civil Rights Subcommittee, the Equal Justice Initiative, and other civil rights stakeholders.
Assistant Attorney General Kristen Clarke speaks at the Martin and Coretta King Unity Breakfast. Assistant Attorney General Kristen Clarke speaks at the Sunday Morning Worship Service hosted by Brown Chapel African Methodist Episcopal Church.
Assistant Attorney General Kristen Clarke and U.S. Attorneys from across the country. Districts represented: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Montana, Idaho, South Dakota, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern District of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Eastern District of New York and the Southern District of West Virginia.
3 March 2023
Wilkes-Barre Brothers Sentenced to 188 Months’ Imprisonment Each for Running A Fentanyl and Cocaine Trafficking Conspiracy That Resulted in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Court Judge Robert D. Mariani sentenced brothers Jose Raymer Tejeda, age 38, and Edwin Tejeda, age 32, to 188 months of imprisonment each, for running a fentanyl and cocaine trafficking conspiracy. Both men were residents of Wilkes-Barre, Pennsylvania, prior to being incarcerated on the instant offenses.
According to United States Attorney Gerard M. Karam, the Tejeda brothers previously pleaded guilty to conspiring to distribute cocaine and 400 grams and more of fentanyl, which resulted in death. The Tejeda brothers operated the conspiracy to distribute significant quantities of fentanyl and cocaine in the Wilkes-Barre region and elsewhere, between approximately January 2016 and February 2020. On September 19, 2019, James Garris, Jr., a drug dealer in the Tejeda brothers’ drug trafficking organization, distributed fentanyl to James Tindol, Jr., who subsequently distributed the fentanyl to an individual identified as A.V. Shortly after ingesting the fentanyl, A.V. overdosed and died.
In addition to Edwin Tejeda and Jose Raymer Tejeda, five other former Luzerne County men associated with their drug trafficking organization have been charged and convicted in the broader investigation, for various fentanyl, cocaine, and tramadol trafficking offenses, including fentanyl trafficking that resulted in death:
- Emilio Tejeda, age 33, a third brother, formerly of Wilkes-Barre, Pennsylvania, was sentenced to 57 months of imprisonment after pleading guilty to conspiring to distribute fentanyl;
- James Tindol, Jr., age 38, formerly of Nanticoke, Pennsylvania, was sentenced to 120 months of imprisonment after pleading guilty to distributing fentanyl that resulted in death;
- James Garris, Jr., age 52, formerly of Wilkes-Barre, Pennsylvania, was sentenced to 168 months of imprisonment after pleading guilty to distributing fentanyl that resulted in death;
- Kearon Brinson, age 41, formerly of West Nanticoke, Pennsylvania, was sentenced to 41 months of imprisonment after pleading guilty to conspiring to distribute fentanyl and marijuana; and
- Lamont Hubbard, age 50, formerly of Plymouth, Pennsylvania, was sentenced to a time served term of approximately 26 months after pleading guilty to conspiring to distribute fentanyl and marijuana.
As part of the sentencings, Judge Mariani ordered forfeiture of over $25,000, and various firearms, ammunition, and property seized during the investigation.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Luzerne Country Drug Task Force, and the Kingston Police Department. Assistant U.S. Attorney Phillip J. Caraballo 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.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Wichita Falls Fentanyl Trafficker Sentenced to 17 ½ Years Following Fatal OverdoseRead the Press Release
A Wichita Falls drug dealer who sold fentanyl to 27-year-old who suffered a fatal overdose was sentenced today to more than 17 years in federal prison, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Lionel DeSaun Henderson, 33, and his former girlfriend, Shameka Tanee Mason, 29, were first charged in July. Mr. Henderson pleaded guilty in November 2022 to possession with intent to distribute a controlled substance and was sentenced Friday by U.S. District Judge Reed O’Connor to 210 months in federal prison. Ms. Mason pleaded guilty in August 2022 to conspiracy to possess with intent to distribute a controlled substance and was sentenced in December to 24 months in federal prison.
In court documents, the pair admitted they knowingly sold counterfeit oxycodone pills laced with fentanyl to an individual who later sold them to his 27-year-old cousin, J.D.K. J.D.K. split the drugs with his coworker. On June 12, 2020, both J.D.K. and his coworker overdosed; the coworker received medical attention and recovered, but J.D.K. died of drug toxicity.
During an interview at a Denton hospital, the coworker told investigators that he and J.D.K. split what appeared to be a 30mg oxycodone tablet. He said some of the remaining pills were stored at J.DK.’s home in Graham, Oklahoma. Agents searched the bedroom and recovered one round blue tablet marked M/30, three green rectangle tablets marked S/90/3, and one pink capsule with illegible markings. The blue M/30 – which appeared identical to brand name oxycodone – instead tested positive for butyryl fentanyl.
Agents then cultivated a confidential source who identified Lionel Henderson as the source of the blue M/30s. He went through Mr. Henderson’s girlfriend, Shameka Mason, to arrange a meeting with an undercover agent at Ms. Mason’s residence in Wichita Falls. On June 25, agents met with Mr. Henderson and Ms. Mason and purchased five M/30 tablets, which later tested positive for fentanyl and acetaminophen.
They then executed a search warrant of Mr. Henderson’s home, where they recovered 497 blue m/30s that later tested positive for fentanyl and acetaminophen, 1,035 multicolored tablets that later tested positive for ecstasy, and multiple firearms, including one that was stolen.
A month later, agents interviewed Ms. Mason, who admitted that she and Mr. Henderson had been dealing illicit substances in December 2018. They began with alprazolam, or “bars,” then escalated to ecstasy, and later to M/30s, which she called “percs,” in December 2019. She claimed she did not know where Mr. Henderson obtained the pills, but admitted they sold the pills for $25 apiece.
In plea papers, Mr. Henderson admitted that he had been selling fentanyl-laced counterfeit pills since March 2020.
The Drug Enforcement Administration’s Dallas Field Division, the Carter County Sheriff’s Office, the Oklahoma State Bureau of Investigation, and the Oklahoma City Medical Examiner’s Office conducted the investigation. Assistant U.S. Attorney P.J. Meitl is prosecuting the case.
United States Obtains Permanent Injunctions and Civil Penalties in Actions against California, Georgia, and Utah Distributors of Essential Oils and Nutritional SupplementsRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced the entry of stipulated orders for permanent injunction and civil penalty judgments against three distributors in relation to their allegedly deceptive COVID-19 claims made when marketing essential oils and nutritional supplements.
Tina Wong, a pediatrician based in California, Eliza Johnson Bacot, a nurse practitioner based in Georgia, and Lauren Busch, a former registered nurse based in Utah, each agreed to pay $15,000 in civil penalties and to permanent injunctive relief to resolve allegations involving deceptive COVID-19 claims made in connection with their marketing of essential oils and nutritional supplements. The stipulated orders resolve lawsuits the government filed in the U.S. District Courts for the Central District of California (Wong), Northern District of Georgia (Bacot), and District of Utah (Busch).
According to the court filings, the defendants are or were distributors for doTERRA International, LLC, a Utah-based multi-level marketing company that sells essential oils, supplements, and other products. The government alleged that, in public webinars that took place in January 2022, each defendant represented that products promoted and offered for sale prevent, reduce the risk or severity of, or cure COVID-19 and long-haul COVID-19 and counteract purported negative effects of COVID-19 vaccinations. Among the many deceptive claims that the government alleged that defendants made were: that the company’s chewable products help prevent children from contracting COVID-19 (Wong); that inhaling essential oils inhibit spike proteins (Busch) and viral replication (Bacot); that certain essential oils prevent the binding of the virus to human cells and help prevent one from contracting COVID-19 (Wong); that certain of the company’s products minimize inflammation from long-haul COVID-19 (Busch); and that the company’s supplements reduce purported negative health effects of COVID-19 vaccinations (Busch). The government alleged that no published report of any well-controlled human clinical study substantiates defendants’ COVID-19-related claims.
The COVID-19 Consumer Protection Act, enacted in December 2020, makes it unlawful, for the duration of the COVID-19 public health emergency, to engage in a deception in commerce associated with the treatment, cure, prevention, mitigation, or diagnosis of COVID 19. Persons who violate the COVID-19 Consumer Protection Act may be subject to civil penalties, injunctive relief, and other remedies available under the Federal Trade Commission Act.
The stipulated orders bar each defendant from making COVID-19 prevention, treatment, or cure claims for any product or service, except for claims specifically approved by the Food and Drug Administration. Further, the orders require that any disease treatment, mitigation, or cure claims that each defendant makes in connection with the marketing of any food, drug, or dietary supplement be supported by a randomized, double-blind, and placebo-controlled human clinical trial and that competent and reliable scientific evidence substantiate other health benefit and efficacy claims that each defendant makes when promoting or selling any food, drug, or dietary supplement. Each defendant also agreed to be enjoined from misrepresenting the results of any study regarding the efficacy of a food, drug, or dietary supplement.
“The Department of Justice remains vigilant in its efforts to stem the deceptive promotion of supposed COVID-19 treatments that have no proven benefits in combatting the disease,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue working with our law enforcement and agency partners to stop those who seek financial gain by peddling unproven cures for COVID-19.”
The Federal Trade Commission (FTC) referred these cases and the stipulated orders to the Department of Justice. The cases were handled by attorneys in the Civil Division’s Consumer Protection Branch, including Senior Litigation Counsel Christina Parascandola and Trial Attorney Zachary Dietert and Assistant Director Gabriel H. Scannapieco, in conjunction with attorneys at the FTC’s Bureau of Consumer Protection/Division of Advertising Practices.
The claims made in the complaints are allegations that the United States would have to prove if the cases had proceeded to trial.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors and assists agencies tasked with administering relief programs to prevent fraud by, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.ftc.gov.
United States Attorney’s Office Reaches Settlement with Lycoming County over Polling Place Access for VotersRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced a settlement with Lycoming County, Pennsylvania, under Title II of the Americans with Disabilities Act to improve physical accessibility at the county’s polling places for individuals who use wheelchairs and other mobility aids.
During the November 7, 2017, General Election, the United States Attorney’s Office, along with an architect from the Department of Justice, surveyed a portion of the county’s polling place locations. The survey resulted in a finding that many of the County’s polling locations contain barriers to vote for persons with disabilities. Title II of the ADA prohibits discrimination on the basis of disability by a state or local government in any of its programs or services, including its voting program.
Under the terms of the agreement, the county will use an evaluation form for each current and prospective polling place based on ADA architectural standards. The settlement requires the county to either relocate inaccessible polling places to new, accessible facilities, or to use temporary measures such as portable ramps, signs, traffic cones and doorbells, where appropriate to ensure accessibility on Election Day.
“Obstacles and barriers at polling locations for individuals with disabilities violate their fundamental right to vote,” said U.S. Attorney Gerard M. Karam. “This agreement demonstrates a working partnership between Lycoming County and the United States to ensure all disabled voters will be able to cast their ballots with their neighbors on Election Day.”
This investigation was handled by Assistant United States Attorney Michael J. Butler, the civil rights coordinator, with the assistant of the United States Department of Justice, Civil Rights Division (Disability Rights Section).
Those interested in finding out more about the ADA can access the ADA website at www.ada.gov. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/. Anyone in the Middle District of Pennsylvania may also report civil rights violations to the Civil Rights Coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
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United States and State of Wisconsin Secure False Claims Act Judgment of over $2.3 Million Against Substance Abuse Treatment ProviderRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on March 2, 2023, United States District Judge Joseph P. Stadtmueller entered default judgment against Dr. Siamak Arassi and his clinic, Healing Corner, LLC, in the amount of $2,346,545.78 for violations of the False Claims Act.
As alleged in the United States and State of Wisconsin’s Joint Complaint in Intervention, Healing Corner and its sole practitioner, Dr. Arassi, caused the submission of false claims to the Wisconsin Medicaid Program by ordering excess Vivitrol, a medication used to treat alcohol dependance and prevent relapse to opioid dependance. Vivitrol is administered by a healthcare professional to patients monthly and reimbursed by Wisconsin Medicaid at approximately $1600 per injection. Despite prescribing, requesting refill, and receiving delivery of prescription Vivitrol from a specialty pharmacy, Healing Corner routinely did not administer the Vivitrol to the patient for whom it was prescribed, but instead, at the direction of Dr. Arassi, routinely ordered Vivitrol prescriptions in the name of former patients of Healing Corner, which were reimbursed by Wisconsin Medicaid. This practice generated a stockpile of excess Vivitrol, which Healing Corner administered to non-Medicaid patients for cash—often paying Healing Corner over $1000 out of pocket per month. Healing Corner also administered free samples of Vivitrol to Medicaid patients but still submitted claims to Medicaid for reimbursement.
“The U.S. Attorney’s Office prioritizes efforts to stop healthcare fraud and is committed to working with our federal, state, and local partners to protect health care program beneficiaries and the American taxpayers,” said U. S. Attorney Haanstad. “This judgment demonstrates our continuing efforts to combat violations of the False Claims Act.”
“Seeking reimbursement for medications that are not administered to the intended beneficiary for profit, undermines the integrity of medical professionals who we entrust to care for our most vulnerable populations,” said Mario M. Pinto, Special Agent in Charge with the U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to pursue medical professionals and others who defraud our Federal health care programs.”
“Those who cheat the Medicaid system must be held accountable,” said Attorney General Kaul. “Thank you to the investigators and prosecutors who have secured this significant judgment.”
The judgment includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Clarence Christiansen, the stepfather of a former Healing Corner patient. Healing Corner had ordered multiple Vivitrol prescriptions in the former patient’s name, which the former patient never requested and never received.
The resolution obtained in the matter was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Wisconsin, Office of Inspector General, U.S. Department of Health and Human Services and the Wisconsin Department of Justice. Assistant United States Attorneys Maura Flaherty and Michael Carter represented the United States in this matter.
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U.S. Attorney Rachael Rollins to Convene a Justice Department Delegation in Selma to Commemorate "Bloody Sunday" and the Passage of Voting Rights Act of 1965Read the Press Release
BOSTON – U.S. Attorney Rachael Rollins has announced that a Justice Department delegation of more than 30 U.S. Attorneys from across the country will travel to Selma and Montgomery, Alabama, in commemoration of the 58th Anniversary of “Bloody Sunday” and the passage of the Voting Rights Act of 1965. The delegation will meet with community and civil rights leaders while exploring some of the significant and historic civil rights institutions in Alabama from March 4-7, 2023. Rollins, who serves as Vice-Chair of the Attorney General Advisory Committee’s Civil Rights Subcommittee, along with Chair U.S. Attorney Nicholas Brown of the Western District of Washington, planned the trip and will lead the delegation.
“Walking the same steps as those who courageously marched across the Edmund Pettus Bridge in 1965 is a powerful and moving experience. I am incredibly honored to join my Justice Department colleagues in Selma,” said U.S. Attorney Rollins. “The beliefs that compelled those before us to march toward justice – that everyone should have equitable access to participatory democracy, fair and equal protection of the law, and the ability to live and thrive authentically and fully as themselves – are identical to what drives the work of my office and the Justice Department today.”
“As Vice-Chair of the Civil Rights Subcommittee, I have the privilege of furthering the Justice Department’s mission and priorities to uphold the rule of law and protect civil rights. I am proud of the exceptional work we have done in Massachusetts, including:
- Setting up a hotline (1-83-END-H8-NOW) to allow the public to report hate crimes or incidents in our Commonwealth;
- Being an inaugural District for United Against Hate – a Justice Department program that educates the public about their civil rights;
- Ensuring that every neighborhood and person in our Commonwealth has the benefit of constitutional, lawful, and effective policing; and
- Creating our District’s first Civil Rights and Human Trafficking Unit to investigate and prosecute hate crimes, including racially motivated church burnings in Springfield, multiple incidences of anti-Semitism and Islamophobia across our Commonwealth, race-directed violence and hatred in Quincy, and threats against Boston Children’s Hospital and other medical institutions for providing gender-affirming care.”
In addition to walking across the Edmund Pettus Bridge on Sunday, March 5th, the U.S. Attorneys will meet with Assistant Attorney General Kristen Clarke of Justice Department’s Civil Rights Division; distinguished jurist Myron Thompson, the first Black Assistant Attorney General for Alabama and the second Black federal judge in the state; and Bryan Stevenson, Founder and Executive Director of the Equal Justice Initiative, a nonprofit organization that provides legal representation to people who have been illegally convicted, unfairly sentenced, or abused in state jails and prisons. In addition, the U.S. Attorneys will visit The Johnson Institute in the Montgomery federal courthouse where many key civil rights cases were decided; The Legacy Museum, which provides a comprehensive history on the legacy of slavery; and The Memorial for Peace and Justice. These opportunities are some examples of the way U.S. Attorney Rollins has worked to bring learning out of the conference room and into the communities we have the privilege to protect and serve. She and U.S. Attorney Brown have also convened the Civil Rights Subcommittee for programs with the U.S. Holocaust Museum.
U.S. Attorneys from the following Districts have confirmed they will attend the Selma and Montgomery events: Massachusetts, Connecticut, New Jersey, South Carolina, Colorado, Nevada, Montana, Idaho, South Dakota, Western and Middle Districts of Louisiana, Eastern District of Wisconsin, Eastern and Western Districts of Michigan, Middle District of Florida, Northern and Eastern Districts of California, Eastern District of Pennsylvania, Western District of Virginia, Western District of North Carolina, Southern District of Ohio, Eastern District of New York and the Southern District of West Virginia.
U.S. Attorney Rollins and U.S. Attorney Brown want to acknowledge the assistance of the Middle District of Alabama, who is hosting the delegation, as well as U.S. Attorney Breon Peace of the Eastern District of New York and former U.S. Attorney Cindy Chung of the Western District of Pennsylvania who provided valuable assistance.
U.S. Attorney Peter D. Leary Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
MACON, Ga. – United States Attorney Peter D. Leary announced that the U.S. Attorney’s Office for the Middle District of Georgia has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released this week.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022, memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Two Men Charged with Carjacking, Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – Two men have been indicted for carjacking and firearms violations, announced U.S. Attorney Andrew M. Luger.
According to court documents, on January 3, 2022, Jordan James Smith, 26, of Ramsey, used force, violence, and intimidation to steal a Nissan Juke. On February 3, 2022, Smith and his co-defendant Carson Thomas McCoy, 21, of Blaine, used force, violence, and intimidation to steal a Honda Accord. During the carjacking, Smith brandished a Glock 21, .45 caliber semi-automatic pistol with a red and black camouflage slide.
In November 2022, McCoy was charged in a federal criminal complaint after stealing a BMW sedan, breaking into a residence in Ham Lake, Minnesota, and stealing various items—including a firearm. McCoy was subsequently involved in a road rage incident and apprehended after fleeing law enforcement. A search of the vehicle revealed the firearm McCoy stole from the residential burglary and numerous other items of contraband.
Because Smith and McCoy both have prior felony convictions, they are prohibited under federal law from possessing firearms or ammunition at any time.
The indictment charges Smith with two counts of carjacking, one count of brandishing a firearm during a crime of violence, and one count of possessing a firearm as a felon. McCoy is charged with one count of carjacking and one count of possessing a firearm as a felon. Smith had his initial appearance today in U.S. District Court before Magistrate Judge Dulce J. Foster and was ordered to remain in detention pending further court proceedings. McCoy has been detained since the November 2022 federal complaint.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Blaine Police Department, the Hennepin County Violent Offender Task Force (VOTF), and the Anoka County Sheriff’s Office.
Assistant U.S. Attorney Jordan L. Sing is 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.
Two Maui Men Sentenced for Racially Motivated Attack on White ManRead the Press Release
Two men from the Hawaiian island of Maui were sentenced in federal court for their racially motivated attack on C.K., a white man who was attempting to move into their neighborhood of Kahakuloa.
Kaulana Alo-Kaonohi, 33, was sentenced to 78 months in prison. Levi Aki Jr., 33, was sentenced to 50 months in prison.
“The defendants in this case nearly killed a man because they believed he did not belong in their neighborhood because of the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The law protects everyone in this country from racially motivated violence, and these sentences send a strong message that such violence will not be tolerated.”
“No one should suffer the violence, cover up and injustice the defendants wrought in this case,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “All persons have a right to freedom from violence motivated by racial hatred, and the Department is committed to ensuring that right is protected in a court of law.”
“This horrific violence was motived by nothing other than hate,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “The FBI is committed to ensuring those who perpetrate such injustices are held accountable and that civil rights are respected and protected for all.”
At trial, the evidence showed that the victim, C.K., purchased a house in Kahakuloa and decided to move there with his wife and three daughters after his wife was diagnosed with multiple sclerosis and forced to retire. When C.K. arrived in Kahakuloa, he was harassed and threatened by various Kahakuloa residents who told him things like, “This is a Hawaiian village. The only thing coming from the outside is the electricity,” and “You don’t even belong in Hawaii.”
On Feb. 13, 2014, when C.K. was unpacking his belongings with his elderly uncle, the defendants, who had never met C.K. before, stormed onto his property and demanded that he pack his things and leave, threatening to “tie [him] up and drag [him]” and make him “go missing” if he did not comply. When C.K. replied that he owned the house, Alo-Kaonohi dragged his index finger along C.K.’s jaw and told him, “Your skin is the wrong f****** color.” Aki then picked up a roofing shovel and handed it to Alo-Kaonohi, who struck C.K. in the head with it, opening up a bloody wound on the back of C.K.’s head. Later on, after C.K. had already begun packing up his possessions, the defendants attacked him a second time. During that attack, Aki head butted C.K. and struck him in the face with the shovel a second time, giving C.K. a concussion and causing him to lose consciousness. When he came to, the defendants were kicking him in the side and broke two of his ribs. During the second attack, one of the defendants said, “no white man is ever going to live here.”
At the sentencing hearing, the government introduced evidence that just months after his unprovoked attack on C.K., Alo-Kaonohi committed a similar unprovoked attacked on a white-skinned man at the Steel Horse Saloon, a bar in Wailuku, Maui. In that attack, Alo-Kaonohi approached the victim from behind, tapped him on the shoulder and then punched him repeatedly in the head until he was unconscious. The victim sustained a large gash on his head that required seven staples to close and suffered permanent brain damage.
Assistant Attorney General Clarke, U.S. Attorney Connors and Special Agent in Charge Merrill made the announcement.
The FBI Honolulu Field Office conducted the investigation.
Assistant U.S. Attorney Chris Thomas for the District of Hawaii and Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Civil Rights Division’s Criminal Section prosecuted the case.
Two Maui Men Sentenced for Racially Motivated Attack on White ManRead the Press Release
WASHINGTON – Two men from the Hawaiian island of Maui were sentenced in federal court for their racially motivated attack on C.K., a white man who was attempting to move into their neighborhood of Kahakuloa.
Kaulana Alo-Kaonohi, 33, was sentenced to 78 months in prison. Levi Aki Jr., 33, was sentenced to 50 months in prison.
“The defendants in this case nearly killed a man because they believed he did not belong in their neighborhood because of the color of his skin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The law protects everyone in this country from racially motivated violence, and these sentences send a strong message that such violence will not be tolerated.”
“No one should suffer the violence, cover up and injustice the defendants wrought in this case,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “All persons have a right to freedom from violence motivated by racial hatred, and the Department is committed to ensuring that right is protected in a court of law.”
“This horrific violence was motived by nothing other than hate,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “The FBI is committed to ensuring those who perpetrate such injustices are held accountable and that civil rights are respected and protected for all.”
At trial, the evidence showed that the victim, C.K., purchased a house in Kahakuloa and decided to move there with his wife and three daughters after his wife was diagnosed with multiple sclerosis and forced to retire. When C.K. arrived in Kahakuloa, he was harassed and threatened by various Kahakuloa residents who told him things like, “This is a Hawaiian village. The only thing coming from the outside is the electricity,” and “You don’t even belong in Hawaii.”
On Feb. 13, 2014, when C.K. was unpacking his belongings with his elderly uncle, the defendants, who had never met C.K. before, stormed onto his property and demanded that he pack his things and leave, threatening to “tie [him] up and drag [him]” and make him “go missing” if he did not comply. When C.K. replied that he owned the house, Alo-Kaonohi dragged his index finger along C.K.’s jaw and told him, “Your skin is the wrong f****** color.” Aki then picked up a roofing shovel and handed it to Alo-Kaonohi, who struck C.K. in the head with it, opening up a bloody wound on the back of C.K.’s head. Later on, after C.K. had already begun packing up his possessions, the defendants attacked him a second time. During that attack, Aki head butted C.K. and struck him in the face with the shovel a second time, giving C.K. a concussion and causing him to lose consciousness. When he came to, the defendants were kicking him in the side and broke two of his ribs. During the second attack, one of the defendants said, “no white man is ever going to live here.”
At the sentencing hearing, the government introduced evidence that just months after his unprovoked attack on C.K., Alo-Kaonohi committed a similar unprovoked attacked on a whiteskinned man at the Steel Horse Saloon, a bar in Wailuku, Maui. In that attack, Alo-Kaonohi approached the victim from behind, tapped him on the shoulder and then punched him repeatedly in the head until he was unconscious. The victim sustained a large gash on his head that required seven staples to close and suffered permanent brain damage.
Assistant Attorney General Clarke, U.S. Attorney Connors and Special Agent in Charge Merrill made the announcement.
The FBI Honolulu Field Office conducted the investigation.
Assistant U.S. Attorney Chris Thomas for the District of Hawaii and Special Litigation Counsel Christopher J. Perras and Trial Attorney Tara Allison of the Civil Rights Division’s Criminal Section prosecuted the case.
Two Individuals Sentenced for Kidnapping Resulting in DeathRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced two individuals, in separate but related cases, for kidnapping and conspiracy to kidnap a minor victim, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.
U.S. District Court Judge L. Scott Coogler sentenced Patrick Devone Stallworth, 42, and Derick Irisha Brown, 32, both of Birmingham, to life in prison. Stallworth and Brown were convicted in 2022 of one count of kidnapping and one count of conspiracy to kidnap a minor victim. The jury further found that the minor victim’s death resulted from the kidnapping.
According to court documents, on October 12, 2019, Birmingham Police Department responded to a report that a three-year-old girl was missing near the Tom Brown Village Housing Development in Birmingham, Alabama. Stallworth and Brown traveled in a Toyota Sequoia to the Tom Brown Village Housing Development on that day and kidnapped 3-year-old Kamille “Cupcake” McKinney. Her body was found on October 22, 2019.
“There is no greater responsibility for federal law enforcement than to investigate and prosecute those who commit senseless and horrendous acts of violence against young children.” U.S. Attorney Escalona said. “I want to personally thank the dozens of law enforcement members and community volunteers who assisted in both big and small ways in the investigation and bringing justice to the victim and her family.”
"While today’s sentencing can’t take away the pain or fill the void of loss for Kamille’s family, I sincerely hope there is some comfort in knowing those who committed this heinous crime have been brought to justice,” SAC Peeples said. “The FBI and its’ law enforcement partners are committed to bringing to justice those who seek to prey on our children, the most vulnerable members of our society”.
The Federal Bureau of Investigation and the Birmingham Police Department investigated the case, with assistance from the United States Marshals Service. Chief of the Criminal Division Lloyd C. Peeples and Assistant U.S. Attorneys Blake Milner and Brittany Byrd prosecuted the case.
Two Defendants Arrested for Stealing over $1 Million from ATMs Throughout the BronxRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced the unsealing of a two-count Complaint today charging RAMDEO BALLIRAM and LEONARDO ORTIZ with bank theft and conspiracy to commit bank theft in connection with a years-long scheme in which they stole more than $1 million from Automated Teller Machines (“ATMs”) located in commercial establishments throughout the Bronx. BALLIRAM and ORTIZ were arrested today and will be presented before U.S. Magistrate Judge James L. Cott.
U.S. Attorney Damian Williams said: “As alleged, the defendants carried out a calculated scheme for years, stealing over a million dollars from ATMs in businesses throughout the Bronx. The relentless efforts of this Office and our law enforcement partners have finally put an end to the burglaries and thefts allegedly perpetrated by the defendants, and we will continue to be diligent in seeking justice for those affected by these crimes.”
NYPD Commissioner Keechant L. Sewell said: “For nearly two years, these defendants allegedly targeted multiple small businesses in the Bronx – burglarizing, ransacking, and stealing more than $1 million. Their brazen scheme undermined public safety throughout an entire borough, and today’s complaint is the next step toward holding them accountable for their crimes. Thank you to the U.S. Attorney’s Office for the Southern District of New York and all the NYPD investigators who worked together to bring charges in this case.”
According to the allegations contained in the Complaint:[1]
From at least in or about March 2021 through in or about January 2023, BALLIRAM, ORTIZ, and another individual (“CC-1”) engaged in a series of at least 23 burglaries of commercial establishments throughout the Bronx, in which they stole over $1 million from ATMs.
The burglaries followed a simple pattern: on each occasion, BALLIRAM, ORTIZ, and at least one other individual broke into Bronx small businesses — often bodegas or restaurants — in the middle of the night in order to steal all the cash from the ATM inside the store. In the course of stealing all the cash from the ATMs, BALLIRAM and ORTIZ also ransacked each store, stealing all the cash from the register, cigarettes, lottery tickets, alcohol, and digital video recording systems. BALLIRAM and ORTIZ stole tens of thousands of dollars in cash and valuables each time.
BALLIRAM and ORTIZ serially followed an armored car (“Bank Van-1”) as it refilled ATMs throughout the Bronx on behalf of a particular bank in order to determine which ATMs to target. Once BALLIRAM and ORTIZ learned which ATMs had been refilled, they then traveled to that location to break into the store and steal the cash. BALLIRAM and ORTIZ often used sophisticated tools to break into both the commercial establishments and the ATMs, as pictured below. On the occasion pictured below, BALLIRAM and ORTIZ stole more than $77,000 from the ATM:
On a few occasions, when they were unable to break into the ATM to steal the cash, BALLIRAM and ORTIZ stole the entire ATM. On at least one occasion, BALLIRAM and ORTIZ also used a stolen vehicle to carry out the scheme.
* * *
BALLIRAM, 44, of Queens, New York, and Ortiz, 52, of Queens, New York, are each charged with one count of conspiracy to commit bank theft, which carries a maximum potential sentence of five years in prison, and one count of bank theft, which carries a maximum potential sentence of 10 years in prison.
The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the NYPD, particularly Detectives of the Bronx Grand Larceny Squad, and the Special Agents and Investigative Analysts of the United States Attorney’s Office for the Southern District of New York.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Jackie Delligatti is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint constitutes only allegations, and every fact described herein should be treated as an allegation.
Tompkins County Medical Practice Pays $70,377 to Resolve False Claims Act and Controlled Substance Act Allegations Relating to Opioid and Benzodiazepine PrescriptionsRead the Press Release
SYRACUSE, NEW YORK – Dr. Howard Silcoff, and his medical practice, Dryden Family Medical Practice, PLLC agreed to pay $70,377 to resolve the United States’ allegations that they prescribed controlled substances for non-legitimate medical purposes, outside the usual course of a professional practice, thereby causing false claims to be submitted to the Medicare program.
The announcement was made by United States Attorney Carla B. Freedman, Naomi Gruchacz, Acting Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG), and Special Agent in Charge Frank A. Tarentino III, U.S. Drug Enforcement Administration (DEA), New York Division.
Under the Controlled Substances Act and analogous New York State law, controlled substances may only be issued for a legitimate medical purpose by an individual practitioner acting in the usual course of a professional practice. Prescribers must regulate the dosage to that which is ordinarily recognized by the medical profession as sufficient for treatment. For the cost of a prescription to be reimbursable by Medicare, the prescription must be medically necessary, and comply with federal and state law. Dr. Silcoff admitted that for more than a decade, he prescribed an average of 35 morphine pills per day to a single patient. He also simultaneously prescribed to the same patient diazepam, also known as valium, which belongs to class of drugs known as benzodiazepines. Dr. Silcoff had been advised by the patient’s Medicare prescription drug carrier, that these medications were potentially contraindicated and that physicians should use caution when concurrently prescribing opioids, such as morphine, with benzodiazepines. Beginning in October 2017, Dr. Silcoff ordered drug urinalysis screens for this patient, which revealed that the patient was using cocaine and unprescribed oxycodone and was inconsistently taking the diazepam. Dr. Silcoff made no changes to the prescription regimen for 17 months, before ultimately initiating the patient on buprenorphine for opioid dependence, pain, and withdrawal symptoms.
This settlement resolves the United States’ allegations that the morphine prescriptions were excessive and dangerous to both the patient and the general public, especially in light of concurrent use of diazepam, un-prescribed oxycodone, and cocaine. Because multiple drug screens were negative for benzodiazepines, the United States further contends that a portion of the diazepam prescriptions had no legitimate medical purpose.
The $70,377 payment constitutes damages sustained by Medicare when it reimbursed for the prescriptions, and civil penalties under the Controlled Substances Act.
This case was investigated by HHS-OIG and DEA Syracuse District Office’s Diversion Group.
Assistant U.S. Attorney Christopher Moran represented the United States in this matter.
Three men admit to fatal smuggling event in MissionRead the Press Release
McALLEN, Texas - Two Mexican men and a U.S. citizen have admitted to their roles in an alien smuggling conspiracy which resulted in death, announced U.S. Attorney Alamdar S. Hamdani.
Francisco Javier Quintanilla-Alcocer, a 38-year old Mexican citizen, pleaded guilty today. Brandon Cibriano-Gonzalez, a 21-year-old Mexican citizen, and Orlando Andres Garcia, 23, Mission, had previously admitted their guilt in relation to the scheme.
On Oct. 22, 2021, Cibriano-Gonzalez acted as a brush guide to smuggle a group of 10 non-U.S. citizens from Mexico into the United States. He guided them to a pick-up location in Palmview. There, Quintanilla-Alcocer and Garcia arrived and were driving a Chevrolet Impala and Chevrolet Malibu, respectively. The aliens and Cibriano-Gonzalez loaded into the vehicles and left the scene. Shortly thereafter, law enforcement attempted to conduct a traffic stop, but both vehicles failed to yield and a high-speed chase ensued.
Garcia turned his vehicle in an attempt to divert law enforcement, while Quintanilla-Alcocer continued to accelerate. Quintanilla-Alcocer eventually turned onto a dirt road in Mission where the Chevrolet Impala rolled and crashed into a homeowner’s fence. Authorities located a total of seven individuals on scene. Three had been ejected, two of whom died at the scene.
Quintanilla-Alcocer was not located at that time. However, evidence in the vehicle led law enforcement to him. Phone records also indicated that Quintanilla-Alcocer and Garcia had been consistently communicating throughout the high-speed pursuit. During these conversations, Garcia instructed Quintanilla to go faster.
Chief U.S. District Judge Randy Crane accepted the pleas and set Quintanilla-Alcocer’s sentencing for May 25, while Cibriano-Gonzalez and Garcia are set for April 18. At those times, all three men face up to life in federal prison. They each have been and will remain in custody pending their hearings.
Homeland Security Investigations conducted the investigation with assistance from the Palmview Police Department and Texas Department of Public Safety. Assistant U.S. Attorneys Lee Fry and Devin Walker are prosecuting the case.
Three Women Indicted for Alleged Scheme that Used Prison Inmates’ Identities to Fraudulently Obtain Federal Student LoansRead the Press Release
LOS ANGELES – Three women were arrested this week on a federal grand jury indictment alleging they ran a federal student aid fraud scheme that used the identities of California prison inmates and other victims to fraudulently enroll in an Orange County-based community college and obtain federal student loans totaling nearly $1 million, the Justice Department announced today.
The six-count indictment charges the following defendants with one count of conspiracy to commit wire fraud affecting a financial institution and bank fraud:
- Nyisha Ramsey, 43, of Lancaster;
- Dionne Ramsey, 36, of Las Vegas, who is Nyisha Ramsey’s sister; and
- Sharyn Barney, 62, of Lancaster, who is Nyisha Ramsey’s mother-in-law.
Dionne Ramsey faces four additional counts of wire fraud affecting a financial institution. Dionne Ramsey and Barney also have been charged with one count of bank fraud.
According to the indictment returned in December 2022 and unsealed this week, from January 2012 to August 2017, the defendants allegedly obtained personally identifying information, including names and Social Security numbers, of state prison inmates and other victims, and used this information to fraudulently enroll in community colleges.
The defendants allegedly then posed as the straw students to apply for federal student aid using the Free Application for Federal Student Aid (FAFSA) and directed those funds to bank accounts they controlled. Those funds, according to the indictment, were used for personal expenses and were not used for permitted educational costs at a community college in Orange County as they were supposed to be.
As a result of their alleged scheme, the defendants fraudulently caused the United States Treasury to disburse approximately $980,000 in FSA funds on behalf of straw students.
The United States Department of Education oversees the administration of Title IV Federal Student Assistance. This includes the administration of Direct Loan Programs for low-interest loans to eligible students to help cover the cost of higher education, and the Pell Grant Program to assist eligible needy students in meeting the costs of post-secondary education. According to federal regulations, federal student-loan funds can only be used to pay the cost of attending an institution of higher education. Incarcerated individuals are not eligible to receive such funds.
All three defendants were arrested this week and were ordered released on bond. Nyisha Ramsey and Barney were arraigned and have pleaded not guilty to the charges against them. An April 25 trial date has been scheduled for them. Dionne Ramsey, who made her initial court appearance on Thursday in the District of Nevada, is expected to be arraigned in Los Angeles in the coming weeks.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, each defendant would face a statutory maximum sentence of 30 years in federal prison for each count.
The United States Department of Education and Department of Housing and Urban Development investigated the matter.
Assistant United States Attorneys Daniel H. Weiner of the General Crimes Section and Maxwell K. Coll of the Asset Forfeiture and Recovery Section are prosecuting this case.
Three Plead Guilty to Conspiracy to Commit Armed Robberies and Shootings in Hillsborough, Polk, Pasco, and Lee Counties While Dressed as Police OfficersRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Reginald Roberts (22, Lakeland), a/k/a/ “Rudy,” Nathaniel Keith Carr (28, Riverdale), a/k/a “Nate,” and Chrishawn De’Earl Butler (22, Brooksville), a/k/a “Baby,” have each pleaded guilty to conspiracy to commit robbery, Hobbs Act robbery, and brandishing and discharging firearms in the commission of crimes of violence. Each faces a minimum mandatory sentence ranging from 14 to 21 years, up to life, in federal prison. Sentencing dates have not yet been set.
According to the plea agreements, and as depicted in the attached photographs introduced at the initial appearance hearing on May 12, 2021, between December 2020 and April 2021, Roberts, Carr, Butler and others engaged in a conspiracy to rob individuals they suspected of distributing narcotics. During that time, the conspirators engaged in numerous armed robberies in Hillsborough, Pasco, Polk, and Lee counties, some of which resulted in shootings. While committing these offenses, the conspirators impersonated law enforcement officers by wearing black clothing, gloves, and masks, often with law enforcement insignia, or vests with “Sheriff” affixed. In addition, during certain robberies, the conspirators drove a black Dodge Durango and white Chevrolet Malibu equipped with blue lights and sirens.
Co-conspirator Jasmine Weber (28, Tampa) has also pleaded guilty, and is pending sentencing. Indicted co-conspirators Daniel Jackson and Darius Hudson are pending trial. An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the FBI, with assistance from the Hillsborough County Sheriff’s Office, the Bartow Police Department, the Lakeland Police Department, the Dade City Police Department, the Cape Coral Police Department, the Pasco Sheriff’s Office, the Hernando County Sheriff’s Office, the Arcadia Police Department, and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
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.
Three More Sentenced in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BERNELL GALE (“GALE”), age 46 of Raceland, Louisiana, TANYA GIVENS (“GIVENS”), age 45, of Gibson, Louisiana; and DAKOTA DIGGS (“D. DIGGS”), age 27, of Ft. Smith, Arkansas, were each sentenced on March 1, 2023 in United States District Court. Each defendant had previously pled to one count of Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans.
According to court records, on March 27, 2017, GIVENS conspired with passengers Lois Russell (“Russell”), John Diggs (“J. Diggs”), and James “Curtis” Williams (“Williams”) to stage an accident with a tractor-trailer at the intersection of Chef Menteur Highway and Downman Road. Damien Labeaud (“Labeaud”) and Roderick Hickman (“Hickman”) also participated in this accident. Hickman, while driving Russell’s car, intentionally struck the 18-wheeler and then fled the scene in a getaway vehicle driven by Labeaud. Russell advised NOPD that she was the driver and she, along with GIVENS and J. Diggs, made claims for personal injuries. In total, the victim trucking and insurance companies paid out approximately $272,500.00 for these fraudulent claims.
According to court records, on May 17, 2017, D. DIGGS, Henry Randle (“H. Randle”), and Ryan Wheaten (“Wheaten”) served as passengers in an automobile collision staged by Labeaud in the vicinity of U.S. Highway 90 East and Calliope Street in New Orleans. Labeaud fled the scene in a getaway car driven by Mario Solomon. H. Randle falsely reported to the NOPD that he had been driving and that the tractor-trailer had struck his vehicle. Shortly thereafter, Labeaud and Solomon went on to stage a second accident in the vicinity of Louisa Street and Chickasaw Street in New Orleans with GALE, Troy Smith (“Smith”), Marvel Francois (“Francois”), and another passenger. After these collisions, D. DIGGS, H. Randle, Wheaten, GALE, Smith, and Francois made fraudulent claims for personal injuries. The victim trucking and insurance companies paid out approximately $10,000.00 for these phony claims.
U.S. District Judge Lance M. Africk sentenced DIGGS to 60 months of probation, restitution in the amount of $11,000 and a $100 mandatory special assessment fee. GIVENS was sentenced to 60 months of probation, restitution in the amount of $363,970.63 and a $100 mandatory special assessment fee. GALE was sentenced to 36 months of probation and a $100 mandatory special assessment fee. The court set a restitution hearing for GALE for May 31, 2023 at 2 p.m.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Edward J. Rivera, Assistant U.S. Attorney Maria Carboni, both of the Financial Crimes Unit and Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit.
Three Individuals Plead Guilty to Laundering Money from Massage Parlor ProstitutionRead the Press Release
NORFOLK, Va. – A Norfolk woman pleaded guilty today to conspiracy to engage in money laundering. Two Norfolk defendants pleaded guilty last week to the same charges.
According to court documents, Si Liu, 36, and her codefendants, Yang Gao, 33, and Ye Wang, 32, conspired to move and conceal proceeds obtained through prostitution. During the conspiracy, Gao, Wang and Liu worked as operators or managers of illicit, unregistered massage parlors located in Virginia Beach and Williamsburg, which derived revenues from the prostitution of female employees for money. Women were recruited online to work for the defendants. Female employees within the massage parlors performed sex acts for customers in exchange for cash payments.
Gao managed the day-to-day operations of the parlors, including collecting money obtained via commercial sex. Gao also provided transportation to women engaged in commercial sex and maintained the facilities, unlicensed massage parlors, utilized for commercial sex. Wang assisted Gao in the operation of the illicit commercial sex business. Liu helped facilitate the exploitation of women engaged in commercial sex, collected proceeds from the illegal activity, managed the web-based advertising of the illicit massage parlors, and encouraged women to perform sex acts by providing condoms and offering financial incentives.
Gao, Wang, and Liu split the prostitution proceeds with the women engaged in prostitution. Gao, Wang and Liu traveled to the massage parlors located in Virginia Beach and Williamsburg to collect prostitution proceeds, and then deposited a percentage of profits into various bank accounts. Money was then transferred to other members of the larger enterprise through cash deliveries and via mobile banking.
Pursuant to the plea agreements the defendants agreed to forfeit four vehicles, over $130,000 in US Currency, numerous items of jewelry, a gold bar; as well as three personal residences.
Gao and Wang previously pleaded guilty to conspiracy to engage in money laundering. Gao and Wang are scheduled to be sentenced on August 4. Liu is scheduled to be sentenced on August 11. Each defendant faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek W. Gordon, Acting Special Agent in Charge of U.S. Homeland Security Investigations (HSI) Washington, D.C.; Paul Neudigate, Chief of Virginia Beach Police; and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after U.S. District Judge Arenda Wright Allen accepted the plea.
Assistant U.S. Attorneys Megan Montoya and Matthew Heck are prosecuting the case.
This case was investigated by the Hampton Roads Human Trafficking Task Force, a collaboration between federal, state and local law enforcement and prosecutors, as well as nongovernmental organizations, working together to combat human trafficking in the Hampton Roads, Virginia region.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-108.
Terrebonne Parish Man Pleads Guilty to Violations of the Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that yesterday, TATUM DARDAR, 26, from Terrebonne Parish, pled guilty to conspiracy to distribute and possess with the intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(C) and possession with the intent to distribute a quantity of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
DARDAR took part in a conspiracy to distribute methamphetamine throughout Terrebonne Parish and the surrounding areas for over a year.
At sentencing and for each charge, DARDAR faces up to a maximum term of twenty (20) years imprisonment, a maximum fine of up to $1,000,000.00, at least four (4) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
This case was investigated by the U.S. Drug Enforcement Administration, the Terrebonne Parish Sheriff’s Office, the Louisiana State Police, and the Houma Police Department. The prosecution is being handled by Assistant United States Attorney Lynn E. Schiffman of the Narcotics Unit.
Tampa Man Sentenced to More Than Five Years for Conspiracy to Commit COVID-Related Unemployment Insurance Fraud and Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge William Jung has sentenced Steve Aloysius Moodie, Jr. (35, Tampa) to 5 years and 10 months in federal prison for conspiracy to commit wire fraud and aggravated identity theft, wire fraud, and aggravated identity theft. As part of his sentence, the court also ordered Moodie to pay $1,070,647 in restitution, jointly with co-defendant Melinda Sue Hernandez (33, Ruskin), to the various state workforce agencies they defrauded. Moodie had pleaded guilty on September 19, 2022.
Hernandez was previously sentenced to 42 months in federal prison for her role in the conspiracy.
According to court documents, from approximately June 2020 through April 2021, Moodie and Hernandez obtained personal identifying information (PII) of others without their knowledge. Hernandez was employed as a medical assistant at a Tampa Bay area hospital and gained access to patient PII, which she used to further the scheme. Moodie used that PII and that of others to submit, and cause to be submitted, false and fraudulent unemployment insurance (UI) claims to various state workforce agencies to obtain UI benefits. These UI benefits were then transferred to bank accounts or loaded onto debit cards issued in the names of others. Moodie and Hernandez then used, and attempted to use, the fraudulently obtained debit cards to withdraw money from ATMs. Law enforcement calculated the total intended loss caused by the fraudulent UI claims to be between $1.5 million and $3.5 million.
This case was investigated by the United States Postal Inspection Service and Homeland Security Investigations (HSI). It was prosecuted by Assistant United States Attorney Greg Pizzo.
In March 2020, the President signed the Families First Coronavirus Response Act and the Coronavirus Aid, Relief, and Economic Security Act, which expanded states’ ability to provide UI for many workers impacted by COVID-19, including for workers who were not ordinarily eligible for benefits.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.