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2 March 2023
Syracuse Man Pleads Guilty to Possession of Methamphetamine with Intent to DistributeRead the Press Release
SYRACUSE, NEW YORK - Michael Griswold, age 37, of Syracuse, pled guilty to possession with intent to distribute over 500 grams of methamphetamine. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
As part of his plea, Griswold admitted that, on November 9, 2022, he possessed over 500 grams of crystal methamphetamine hidden inside a bag in his bedroom closet. Griswold also admitted that he intended to distribute the methamphetamine to others.
United States District Judge Glenn T. Suddaby will sentence Griswold on July 12, 2023. Griswold faces a mandatory minimum sentence of 10 years in prison and a maximum term of life, a fine of up to $10,000,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the United States Drug Enforcement Administration (DEA), with assistance from the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Syracuse Police Department, and the Metro-Jefferson Drug Task Force. Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case.
Swift Bird Woman Sentenced for Possession with Intent to Distribute a Controlled SubstanceRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Swift Bird, South Dakota, woman convicted of Possession with Intent to Distribute a Controlled Substance. The sentencing took place on February 27, 2023.
Regina Maynard, age 31, was sentenced to seven years and three months in federal prison, followed by three years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Maynard was indicted by a federal grand jury in April of 2022. She pleaded guilty on October 4, 2022.
The conviction stemmed from an incident on February 7, 2022, when law enforcement conducted a traffic stop on Maynard and a co-defendant. They searched the vehicle and found inside Maynard’s purse a digital scale and several baggies. Five packages of methamphetamine, totaling 139 grams of pure methamphetamine, were found in a safe disguised to look like a book. Maynard admitted possessing the methamphetamine with the intent to distribute it in and around central South Dakota and on the Cheyenne River Sioux Indian Reservation.
This case was investigated by the Stanley County Sheriff’s Office and the Northern Plains Safe Trails Drug Task Force. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Maynard was immediately remanded to the custody of the U.S. Marshals Service.
St. Louis Lawyer Admits Faking Legal Documents for at Least 30 ClientsRead the Press Release
ST. LOUIS – A lawyer from St. Louis, Missouri on Thursday admitted faking legal documents and forging judges’ signatures in cases involving at least 30 clients.
Andrew Gavin Wynne, 35, pleaded guilty in front of U.S. District Judge Sarah E. Pitlyk to five felony counts of identity theft.
Wynne admitted that while representing at least 30 clients, he created fictitious documents with forged signatures of judicial officers in St. Louis and St. Louis and St. Charles counties. Included among those were bogus court orders, judgments and emails authored by at least ten separate judges, Wynne’s plea agreement says, some of which purportedly awarded money to his clients.
In one example in the plea agreement, Wynne sent an email to a client on Feb. 28, 2020 that included a fictitious judgment and decree of dissolution with a forged judge’s signature. That divorce decree said Wynne’s client's marriage was dissolved and the parties would have joint legal and physical custody of the minor children. The decree also said the client was owed $900 per month child support, $5,000, a vehicle and other assets.
On July 21, 2020, Wynne emailed another client an order with a forged judge’s signature that claimed $20,200 in payments were owed to that client.
On both occasions, Wynne told his clients not to discuss the documents that he’d sent.
Wynne admitted that his crimes caused a loss of between $250,000 and $550,000.
On Oct. 27, 2021, the Missouri Supreme Court suspended Wynne’s law license after the Office of Chief Disciplinary Counsel said there was probable cause to believe he posed “a substantial threat of irreparable harm to the public” due to misconduct. He was indicted in U.S. District Court in St. Louis on Feb. 9, 2022.
Wynne is scheduled to be sentenced June 1. The charge carries a potential penalty of up to five years in prison, a $250,000 million fine or both.
The FBI investigated the case. Assistant U.S. Attorneys Derek Wiseman and Kyle Bateman are prosecuting the case.
St. Louis County Man Gets 8+ Years on Child Pornography ChargesRead the Press Release
ST. LOUIS – A man from St. Louis County, Missouri who served as an administrator in an online meeting room where child sex abuse material was traded was sentenced Thursday to eight years and one month in prison.
U.S. District Judge Matthew T. Schelp also ordered Michael Morales, 49, of Manchester, to pay $38,000 in restitution to victims who appeared in the pictures and videos.
Morales pleaded guilty in November to two felonies: receipt of child pornography and possession of child pornography. He admitted that he served as an administrator in a meeting room on the Kik social media app known for trading child sexual abuse material, and posted pictures and videos there in 2020. He also admitted possessing pictures and videos containing those materials on his cellphone.
The FBI and the St. Louis County Police Department investigated the case. Assistant U.S. Attorney Colleen Lang prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Spencer Man Sentenced for Child Pornography ChargesRead the Press Release
BOSTON – A Spencer man was sentenced yesterday in federal court in Worcester for possessing child sexual abuse material (CSAM).
Joseph Michael Smith, 60, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 27 months in prison and five years of supervised release. In November 2022, Smith pleaded guilty to one count of possession of child pornography.
Investigators received several tips that CSAM was shared from messenger accounts tied to Smith’s address. During a search of Smith’s residence on Nov. 10, 2021, a drive was seized, and a forensic analysis revealed 35 videos depicting children as young as two-years-old being sexually abused, as well as over 300 images depicting CSAM that had downloaded to, and deleted from, the USB drive.
United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Spencer Police Chief David Darrin made the announcement today. Assistant U.S. Attorney Kristen Noto of Rollins’ Worcester Branch Office prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Sioux Falls Woman Sentenced in Meth ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Karen E. Schreier has sentenced a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance. The sentencing took place on February 28, 2023.
Tiffany Nicole Seidel, 31, was sentenced to 11 years and eight months in federal prison, followed by five years of supervised release. She was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Seidel was indicted for conspiracy to distribute a controlled substance by a federal grand jury in September of 2022. She pleaded guilty on December 2, 2022.
Seidel reached an agreement with co-conspirators to distribute 50 grams or more of pure methamphetamine in the District of South Dakota. On April 7, 2022, she assisted her co-conspirators in completing the sale of one pound of methamphetamine to a confidential informant. She and her co-conspirators met the confidential informant in the parking lot of a grocery store, where they completed the sale of approximately 333.8 grams of methamphetamine, at 98% purity, for $4,600. Her involvement in the conspiracy ended in June of 2022, when she was arrested for her conduct.
This case was investigated by the Sioux Falls Area Drug Task Force and the Drug Enforcement Administration. This case was prosecuted by Special Assistant U.S. Attorney Paige Petersen, who also serves as a prosecutor with the South Dakota Attorney General’s Office.
Seidel was immediately remanded to the custody of the U.S. Marshals Service.
Sherwin-Williams to Pay $1 Million to Resolve Alleged False Claims Act Violations Arising from Bridge Painting ProjectRead the Press Release
PHILADELPHIA, PA – United States Attorney Jacqueline C. Romero announced that The Sherwin-Williams Company has agreed to pay $1 million to resolve False Claims Act allegations that it participated in a scheme to defraud the federal Disadvantaged Business Enterprise (DBE) program in connection with a contract to paint the George C. Platt Memorial Bridge in Philadelphia.
Governed by statutes and regulations, the DBE program provides opportunities for small businesses owned by socially and economically disadvantaged individuals to work on federally funded projects by requiring that government contracts set goals for DBE participation. A government contractor may claim credit toward a DBE goal only if a DBE serves a “commercially useful function” on the project. A DBE does not serve a commercially useful function, however, if it acts as a mere pass-through, or extra participant, through which funds are passed to create the appearance that historically disadvantaged businesses did the work.
According to the government’s investigation, this was precisely the case with the Platt Bridge project. In 2011, Hercules-Vimas Joint Venture, LLC was awarded a $42.7 million contract by the Pennsylvania Department of Transportation (PENNDOT) to paint the bridge. The contract, funded largely by the federal government, required that a percentage of work be performed by a DBE. To meet this requirement, Hercules-Vimas subcontracted with Vertech International, Inc., a DBE certified in Pennsylvania, to supply materials.
The government contends that this arrangement was a sham. While Hercules-Vimas represented to PENNDOT that Vertech was the paint supplier, the government alleges that it worked directly with Sherwin-Williams, a non-disadvantaged business, to deliver paint and materials to the project site. Vertech merely created invoices designed to conceal the fraud in exchange for a nominal fee.
In 2016, the owner of Vertech pleaded guilty to criminal charges associated with his role in the fraudulent scheme, as did a Hercules-Vimas principal in 2017. In addition, the government reached a $310,000 civil settlement of False Claims Act allegations against Hercules-Vimas in 2020.
According to the government, Sherwin-Williams’ liability as a third-party supplier arises from its knowing complicity with the fraudulent scheme. The government contends that Sherwin-Williams maintained the ordered supplies in storage and delivered them directly to Hercules-Vimas’s job site, then submitted invoices for payment of paint and supplies to Vertech, with knowledge and intent that Vertech would, in turn, create invoices on Vertech’s letterhead, adding a 1.75% mark-up (representing Vertech’s profit) and submit those invoices to Hercules-Vimas for payment. This scheme, the government believes, enabled Hercules-Vimas to submit a substantially lower bid than competing bidders on the Platt Bridge Project because, unlike Hercules-Vimas’s bid, competing bids included the reasonable market value for commercially useful functions performed by Disadvantaged Business Enterprises.
“Because of this scheme, legitimate disadvantaged business owners were deprived of the very opportunities the DBE program was designed to create,” said U.S. Attorney Romero. “Sherwin-Williams must be held accountable because, without its agreement, the scheme would not have worked.”
“Preserving the integrity of DBE programs by unraveling the layers of fraudulent activities in federally funded highway projects remains an important point of focus for our Office of Investigations,” said Christopher A. Scharf, Special Agent-in-Charge of the U.S. Department of Transportation Office of Inspector General Northeastern Region. “The significant financial settlement and compliance program reached today demonstrates our commitment to working with our law enforcement and prosecutorial partners on DBE schemes that adversely impact transportation programs in the Commonwealth of Pennsylvania and throughout the United States.”
The settled civil claims are allegations only. There has been no determination of civil liability. The investigation was conducted by the United States Department of Transportation Office of Inspector General and the United States Department of Labor Office of Inspector General. For the United States Attorney’s Office, Assistant United States Attorneys David Degnan, Eric Gill, and Bryan Hughes handled the investigation.
Sex Offender Sentenced to Prison for Crime Against Federal OfficerRead the Press Release
CHARLESTON, W.Va. – Norman Leon Geipe II, 39, was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for resisting a federal officer causing bodily injury.
According to court documents and statements made in court, on January 14, 2021, deputy U.S. Marshals approached Geipe outside a Parkersburg homeless shelter and told Geipe they had an arrest warrant alleging he had failed to register as a sex offender. Geipe physically resisted the attempt to take him into custody and bit the left forearm of one of the deputy U.S. Marshals, breaking the skin and drawing blood.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Marshals Service and the Parkersburg Police Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorneys Troy D. Adams and Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-98.
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Sex Offender Sentenced to 15 Years in Federal Prison for Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that PHILIP FROST, 33, was sentenced today by U.S. District Judge Robert M. Chatigny in Hartford to 180 months of imprisonment, followed by 15 years of supervised release, for a child exploitation offense.
According to court documents and statements made in court, in March 2016, Frost was convicted in state court of possessing child pornography in the second degree. On October 1, 2019, while Frost was on special parole and residing in a halfway house in Hartford, a staff member at the halfway house discovered Frost was in possession of a smartphone, which was a violation of Frost’s parole conditions. The staff member secured the phone and contacted Frost’s parole officer. That evening, before the parole officer arrived the next morning, Frost used another resident’s phone to delete the history of his various online messaging accounts.
Subsequent analysis of Frost’s smartphone revealed images of child pornography, including images depicting the sexual abuse of prepubescent children.
The investigation further revealed that, between July 31, 2019 and October 1, 2019, Frost engaged in sexual conduct with a 15-year-old victim. Frost provided a cellphone to the minor victim so that they could communicate, and he enticed the minor victim to send him images of the minor victim engaging in sexually explicit conduct. Frost also received these images on his smartphone.
Frost was on the Connecticut Sex Offender Registry at the time this criminal conduct.
Frost has been detained since October 2, 2019. On October 30, 2020, he pleaded guilty to receipt of child pornography.
State sexual assault charges against Frost are pending.
This matter was investigated by the Connecticut State Police and the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Margaret M. Donovan.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Several Defendants Sentenced for Drug Trafficking and Firearms CrimesRead the Press Release
MONROE, La. - United States Attorney Brandon B. Brown announced that four defendants were sentenced yesterday by United States District Judge Terry A. Doughty in four separate cases involving drug trafficking and firearms charges.
Leslie Jason Fulwiler, 50, of West Monroe, Louisiana, was sentenced to 60 months in prison, followed by 3 years of supervised release, for being a felon in possession of a firearm. On or about January 28, 2021, Fulwiler pawned two firearms in Minden, Louisiana. Just one day later, Fulwiler went back to the pawn shop to try and retrieve the firearms he had pawned but could not do so due to the fact that he is a convicted felon. Further investigation by agents with the West Monroe Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) revealed that the firearms Fulwiler had pawned were in fact stolen. Fulwiler has prior felony convictions for possession of methamphetamine and burglary and knew that he could not possess a firearm or ammunition as a convicted felon. The case was prosecuted by the ATF and West Monroe Police Department and was prosecuted by Assistant U.S. Attorney Mary Mudrick.
Dantrell Rayshon Marshall, 23, of Monroe, Louisiana, was sentenced to 46 months in prison, followed by 3 years of supervised release, on firearms charges. On August 31, 2022, deputies with the Ouachita Parish Sheriff’s Office stopped a vehicle for having an expired Louisiana temporary license tag. When deputies approached the vehicle, they detected a strong odor of marijuana coming from inside and asked both the driver and passenger, who was later identified as Marshall, out of the vehicle. They consented to a search of the vehicle and deputies discovered approximately 42 grams of suspected marijuana and a Springfield Armory 9mm firearm loaded with 19 rounds of ammunition partially protruding from the front passenger seat. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) determined that the firearm was operational and had traveled through interstate commerce. Marshall was indicted September 28, 2022 and charged with one count of possession of a firearm by a convicted felon. He pleaded guilty to the charge November 21, 2022. This case was investigated by the Federal Bureau of Investigation, ATF, and Ouachita Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Tennille Gilreath.
Keith Jerome Mosley, 50, of Edwards, Mississippi, was sentenced to 78 months in prison, followed by 5 years of supervised release, for conspiracy to possess with intent to distribute methamphetamine. Law enforcement officers with the U.S. Drug Enforcement Administration (DEA) began an investigation into drug trafficking activities in Tensas Parish, Louisiana. On or about September 8, 2020, troopers with the Louisiana State Police stopped the vehicle Mosley was driving after learning that he had agreed to sell methamphetamine to an individual. Law enforcement officers found a plastic bag hidden in the vehicle which contained not less than 50 grams of methamphetamine. Mosley pleaded guilty to the charge on November 21, 2022. The case was investigated by the DEA and Louisiana State Police and was prosecuted by Assistant U.S. Attorney Leon H. Whitten.
Adrian Dion Coleman, 24, of Monroe, Louisiana, was sentenced to 36 months in prison, followed by 3 years of supervised release. Coleman pleaded guilty October 31, 2022 to possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. These charges stemmed from a traffic stop conducted on January 18, 2021 by officers with the Ouachita Parish Sheriff’s Office in which Coleman was a passenger in the vehicle. A search of the vehicle revealed a Taurus 9mm pistol on the seat of the car where Coleman had been sitting. Coleman also had 12 individual clear bags of marijuana on his person, containing a total of 48 grams. Coleman admitted the drugs and firearm were his. The firearm was tested by agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and it was determined that the firearm was operational and had traveled through interstate commerce. The case was investigated by the ATF and Ouachita Parish Sheriff’s Office and was prosecuted by Assistant U.S. Attorney Andrew C. Weber.
“The sentences handed down in each of these cases are the result of outstanding work and coordination between our federal and local law enforcement agencies in the Monroe area,” said U.S. Attorney Brandon B. Brown. “We will continue working together with these law enforcement agencies to make the streets of Monroe safer.”
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Saratoga Springs Woman Pleads Guilty to Misappropriating Funds as the Fiduciary to a VeteranRead the Press Release
ALBANY, NEW YORK – JoAnne Natalie, age 64, of Saratoga Springs, New York, pled guilty today to misappropriating the funds of a veteran as his appointed fiduciary, announced United States Attorney Carla B. Freedman and Christopher F. Algieri, Special Agent in Charge of the Northeast Field Office for the United States Department of Veterans Affairs (VA) Office of Inspector General.
Natalie admitted that after being appointed as fiduciary for a veteran, between September 2019 and January 2021, she stole, embezzled and misappropriated $50,174.42 of the veteran’s VA benefits by using the benefits deposited into the veteran’s bank account for her own personal ends. She also admitted to neglecting and failing to submit any required accountings to the VA, as required by law.
United States District Judge Glenn T. Suddaby will sentence Natalie on July 27, 2023. Natalie faces a maximum term of 5 years in prison, a fine of up to $250,000, a term of supervised release of up to 3 years, and restitution to the estate of the veteran and any other identified victims. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The VA Office of Inspector General investigated this case. Assistant U.S. Attorney Alexander P. Wentworth-Ping prosecuted this case.
This case is part of the Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults. Anyone with information about allegations of attempted fraud involving elders can call the National Elder Fraud Hotline at 1-833-372-8311.
SDTX implements voluntary self-disclosure and monitorship selection policiesRead the Press Release
HOUSTON – The U.S. Attorney’s Office for the Southern District of Texas (USAO-SDTX) has implemented a new national policy which details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a USAO, announced U.S. Attorney Alamdar S. Hamdani.
The policy, which is effective immediately, aims to provide 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. It also hopes 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 SDTX also implemented a selection policy for independent corporate monitors, who can be an effective resource in assessing a company’s compliance with the terms of a corporate criminal resolution and reducing the risk of repeat misconduct and compliance lapses.
The policy lays out a detailed, mandatory selection process that culminates in U.S. Attorney approval for the appointment of any monitor. In general, the SDTX will favor the imposition of a monitor where there is a demonstrated need for, and clear benefit to be derived from, a monitorship, such as when a company’s compliance program and controls are untested, ineffective, inadequately resourced or not fully implemented at the time of a resolution. This is particularly true if the investigation reveals a compliance program is deficient or inadequate in numerous or significant respects. Conversely, where a company’s compliance program and controls are demonstrated to be tested, effective, adequately resourced and fully implemented at the time of a resolution, a monitor may not be necessary. The scope of any monitorship will be appropriately tailored to address the specific concerns of each individual company.
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. A company must also disclose 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 who voluntarily self-discloses, as defined in the policy, and fully meets the other requirements of the policy by fully cooperating, timely and appropriately remediating the criminal conduct and paying appropriate penalties will receive significant benefits. These include that the USAO may choose not seek a guilty plea, not to impose any criminal penalty and/or not to impose a criminal penalty that is greater than 50% below the low end of the U.S. 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 which may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met. These include if the misconduct poses a grave threat to national security, public health or the environment; if the misconduct is deeply pervasive throughout the company; or 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. 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 will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a USAO and another DOJ are jointly prosecuting a company or where the misconduct the company reports falls within the scope of conduct the VSD covers, 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.
These policies were prepared by the Corporate Criminal Enforcement Policy Working Group, a group of United States Attorneys from geographically diverse districts throughout the USAO community, at the request of the Attorney General’s Advisory Committee and its White Collar Fraud Subcommittee.
Rosebud Man Sentenced for Failure to RegisterRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced today that Chief Judge Roberto A. Lange, U.S. District Court, has sentenced a Rosebud, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on February 28, 2023.
Damon Has Horns, age 41, was sentenced to two years and eight months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Has Horns was indicted for Failure to Register as a Sex Offender by a federal grand jury in March of 2022. He pleaded guilty on November 21, 2022.
Has Horns was convicted of Aggravated Sexual Abuse on June 20, 2001. As a result of this conviction, Has Horns is required to register as a sex offender and update his registration within three business days of relocation or changing employment or student status. Has Horns last registered in June of 2022, providing an address in Sioux Falls, South Dakota. Has Horns failed to pay rent in September and the locks to his apartment were changed on October 1, 2022. Has Horns’ whereabouts were unknown until he was arrested on the Rosebud Sioux Indian Reservation on June 18, 2022.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
This case was investigated by U.S. Marshals Service and Sioux Falls Police Department. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Has Horns was immediately remanded to the custody of the U.S. Marshals Service.
Romanian Citizen Arrested and Charged in $5 Million Covid Relief FraudRead the Press Release
SAN DIEGO – Constantin Sandu of Romania, a suspected organized crime figure, was arrested and charged in a federal complaint today with masterminding a scheme to steal more than $5 million in California unemployment insurance benefits intended to help workers impacted by the pandemic.
According to the complaint, Sandu conspired with 214 unnamed Romanian co-conspirators across California and in Romania to fraudulently obtain millions of dollars in California unemployment insurance benefits by fabricating documents, creating fictitious accounts and businesses, and filing bogus claims with California’s Economic Development Department, which administers the state’s unemployment benefits.
“According to the complaint, this defendant presided over a vast network of international swindlers to exploit a program meant to help struggling California workers survive the pandemic,” said U.S. Attorney Randy Grossman. “The pandemic may be waning, but we are still aggressively investigating allegations of COVID relief fraud. The scheme alleged in this case diverted millions of dollars from those who truly needed it.”
Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.
Sandu was arrested by FBI San Diego on March 1, 2023, at the Imperial Beach Border Patrol Station. He is scheduled to make his first appearance in federal court this afternoon before U.S. Magistrate Judge Allison H. Goddard at 2 p.m.
“FBI San Diego would like to thank our local, state, and federal law enforcement partners for addressing this problem in a unified effort,” said Special Agent in Charge Stacey Moy of the FBI San Diego Field Office. “These benefits were offered with the intention of helping struggling families stay afloat and were a critical lifeline for many. Sandu’s alleged greed diverted those funds for his own personal gain. The FBI and our partners will continue to identify those who commit pandemic-related fraud and hold them accountable for their crimes.”
“The San Diego Police Department is committed to investigating and solving crimes committed by organized crime rings. The arrest of Constantin “Bobi” Sandu is the culmination of a yearlong investigation by Economic Crimes Unit detectives and multiple law enforcement partners. We will continue to collaborate with these partners to arrest the over 200 suspects involved in this investigation.”
“IRS Criminal Investigation and our law enforcement partners will continue to investigate individuals and organizations who target relief programs as a way to steal funds from critical programs,” said Special Agent in Charge Tyler Hatcher of the Los Angeles Field Office. “It is especially egregious when criminal organizations think they can profit off of the United States and steal funds that are intended to aid citizens during times of need. IRS-CI is committed to aggressively investigating these crimes and bringing those criminal organizations to justice.”
The complaint said that beginning in fall of 2020 and continuing until late summer of 2022, Sandu and hundreds of unnamed co-conspirators learned and developed a process to receive the most benefits possible by using fraudulent identifications, falsified utility bills, falsified earnings statements, falsified W2s, fraudulent Health Insurance cards and non-existent companies. Additionally, Sandu learned to “backdate” or modify the EDD applications with an earlier unemployment start date to generate even bigger pay days.
Co-conspirators across California would share information, knowledge and resources with Sandu, for Sandu to file claims for regular unemployment insurance and expanded pandemic unemployment insurance benefits from California EDD. Co-conspirators communicated with Sandu via Facebook or other electronic means or met with him in person to provide their Personal Identifying Information, known as PII.
According to the California Franchise Tax Board, none of the companies in the various W2’s submitted for conspirators’ EDD applications was real. According to Blue Cross Blue Shield, none of the member identification numbers submitted for conspirators EDD applications was real.
In total, Sandu conspired with unnamed co-conspirators to fraudulently obtain no less than $5,207,687.00 in California Unemployment Insurance benefits.
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANT Case Number: 23-mj-00697-AHG
Constantin Sandu, aka Bobi Sandu, aka Ionut Mihai Age: 33 Transient, Romanian
SUMMARY OF CHARGES
Title 18, U.S.C. § 1349 and 1343 - Conspiracy to Commit Wire Fraud; U.S.C. § 981(a)(1)(C) Criminal Forfeitures; Title 28, U.S.C. § 2461(c) Civil Forfeitures
Maximum penalty: Thirty years in prison, $1 million fine
AGENCIES
Federal Bureau of Investigation
San Diego Police Department Economic Crimes Unit
Internal Revenue Service
California Employment Development Department Investigative Division
U.S. Department of Homeland Security
Department of Labor Office of Investigator General
Rohnert Park Resident Convicted of East Bay Bank Robbery SpreeRead the Press Release
OAKLAND – A federal jury convicted William Mulligan today of two counts of bank robbery and two counts of attempted bank robbery relating to an East Bay bank robbery spree in January of 2021, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Robert K. Tripp. The conviction follows a four-day trial before the Honorable Yvonne Gonzalez Rogers, United States District Judge.
Mulligan, 36, of Rohnert Park, was charged on May 13, 2021, in a federal indictment alleging multiple counts of bank robbery and attempted robbery, all taking place in January of 2021. At trial, the government showed that on January 11, 2021, Mulligan entered a Bank of America branch in Dublin, Calif., presented a robbery note to the teller, and walked away with $8,650 in cash. Then, on January 25, 2021, Mulligan robbed or attempted to rob three East Bay banks. First, Mulligan entered a Bank of America branch in Pleasant Hill, Calif., presented the robbery note, but the teller refused to give him any money. Twenty minutes later, Mulligan entered a Bank of America branch in Walnut Creek, Calif., presented the robbery note to the teller, who retreated to the bank’s vault room without giving Mulligan any money. Shortly thereafter, Mulligan entered a Wells Fargo branch in Concord, Calif., presented the robbery note and obtained $1,160 from the bank teller. Three days later, on January 28, 2021, Mulligan was pulled over while driving a white Nissan with a black spoiler, distinctive stickers, and no license plates, the same car seen on surveillance footage at the Dublin and Walnut Creek robberies. After Mulligan’s arrest, officers discovered a robbery note in his wallet and a subsequent FBI search of his car revealed clothing matching that worn during all four bank robberies and attempted bank robberies.
On May 13, 2021, a federal grand jury indicted Mulligan, charging him with five counts of robbery and attempted bank robbery, in violation of 18 U.S.C. § 2113(a). At trial, the government presented evidence demonstrating Mulligan was guilty of four of the counts and the jury convicted Mulligan of all the counts tried.
Mulligan faces a maximum sentence of 20 years in prison per count, as well as a $250,000 fine. In addition, the court may order restitution and an additional term of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Gonzalez Rogers ordered that Mulligan remain detained pending sentencing and has not yet scheduled a sentencing date.
Assistant United States Attorneys Abraham Fine and Benjamin K. Kleinman of the Oakland Branch of the United States Attorney’s Office are prosecuting the case with assistance from Kay Konopaske, Kathleen Turner, Jessie Chelsea and Margoth Turcios. The prosecution is a result of an investigation by the FBI.
Reality Show Star Sentenced to Life in Prison for Arranging Nephew’s MurderRead the Press Release
ST. LOUIS – A former reality show star was sentenced to life in prison Thursday for arranging the murder of his nephew in St. Louis, Missouri in 2016 for money.
James Timothy Norman, 43, was found guilty by a jury in U.S. District Court in September of conspiracy to commit murder-for-hire, murder-for-hire and conspiracy to commit mail and wire fraud in the fatal shooting of 20-year-old Andre Montgomery Jr. on March 14, 2016.
Norman and Montgomery appeared on the reality show Welcome to Sweetie Pie’s. Norman took out a life insurance policy worth $450,000 on Montgomery, then arranged through intermediaries for his nephew’s murder at 3964 Natural Bridge Avenue in St. Louis.
“Tim Norman sought to make $450,000 by having his nephew, Andre Montgomery, killed. Instead, he was caught and will spend the rest of his life in prison. Although Andre’s family was robbed of their loved one, hopefully this result will provide some measure of peace and justice for them,” said U.S. Attorney Sayler A. Fleming.
“Tim Norman portrayed one image to the public, but there were more sinister intentions lurking underneath,” said Assistant U.S. Attorney Angie Danis during Thursday’s sentencing hearing. “And the measure of someone’s character is what they do when they think no one is watching. When he thought no one was watching, he planned the execution of his nephew and carried it out.”
“Five families, especially that of the victim, are suffering and irreparably harmed as a result of Norman’s plot to have his own nephew murdered,” said Special Agent in Charge Jay Greenberg of the FBI St. Louis Division. “At least all his co-conspirators have accepted responsibility. To this day, Norman hasn’t accepted responsibility despite the fact 12 jurors unanimously convicted him after seeing and hearing seven days of evidence in trial.”
U.S. District Judge John A. Ross sentenced the shooter, Travell Anthony Hill, of St. Louis, to 32 years in prison in October. Hill now 31, pleaded guilty to one count of conspiracy to commit murder-for-hire and one count of murder-for-hire and admitted fatally shooting Montgomery with a .380-caliber handgun after being told of his location by a woman who knew both Montgomery and Norman. Hill was later paid $5,000.
The woman, Terica Taneisha Ellis, now 39, from Memphis, Tennessee, was sentenced to three years in prison in January. Ellis pleaded guilty to the murder-for-hire conspiracy charge and admitted that Norman paid her $10,000 to find Montgomery and pass on his location. Ellis admitted knowing Norman was going to take some form of action, but she did not know Montgomery would be shot.
A fourth person, insurance agent Waiel “Wally” Rebhi Yaghnam, was sentenced to three years in prison in November. Yaghnam pleaded guilty to a charge of wire and mail fraud conspiracy and admitted fraudulently helping Norman apply for multiple insurance policies beginning in October 2014. Yaghnam then helped Norman file a claim on Montgomery’s life insurance policy after Montgomery’s death.
The FBI and the St. Louis Metropolitan Police Department investigated this case. Assistant U.S. Attorneys Angie Danis and Gwendolyn Carroll are prosecuting the case.
Rapid City Man Sentenced for Fourth Failure to Register as a Sex Offender ConvictionRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that Chief Judge, Roberto A. Lange, U.S. District Court, has sentenced a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender. The sentencing took place on February 27, 2023.
Benjamen T. Flute, a/k/a Benjamin T. Flute, age 43, was sentenced to 25 months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Flute was indicted by a federal grand jury in September of 2022. He pleaded guilty on November 7, 2022.
Flute was convicted of Second-Degree Rape in Caddo County, Oklahoma, in December of 2007. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. Flute was convicted in U.S. District Court of Failure to Register as a Sex Offender in 2017, 2019, and 2021. In August of 2022, Flute was released from prison with instructions to begin supervised release in Rapid City. Flute thereafter did not arrive at his expected residence in Rapid City, and he failed to update his sex offender registration. An arrest warrant was subsequently issued, and Flute was arrested in Rapid City on August 25, 2022.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Flute was immediately remanded to the custody of the U.S. Marshals Service.
Pueblo Man Sentenced to 11 Years in Federal Prison for Armed RobberyRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Perry Sean Lohnes, age 38, of Pueblo, was sentenced to 11 years in federal prison for robbery and brandishing a firearm during a crime of violence.
According to the plea agreement, on April 11, 2022, the defendant went to a fast food restaurant located on East 8th Street in Pueblo. The defendant was wearing a camouflage style jacket and facemask. He approached the counter, ordered food and then sat down to eat it. He later came back to the counter and started taking money out of the register. An employee of the restaurant confronted the defendant and the defendant immediately pulled a handgun from his pocket and pulled back on the slide of the handgun. This caused one round of ammunition to be expelled from the handgun, and it landed in the cash register. The defendant pointed the firearm at the employee and told her to “get back.” The defendant then took cash out of the cash register and ran toward a local park.
“We are taking an aggressive approach to prosecuting violent criminals in Pueblo,” said United States Attorney Cole Finegan. “This case is one example of excellent work from our law enforcement partners working together to make Pueblo a safer community. This type of violence will not be tolerated.”
“This sentence represents the unwavering teamwork between FBI Denver and our law enforcement partners like the Pueblo Police Department and the Pueblo County Sheriff’s Office to ensure dangerous criminals are no longer a threat to the public,” said Federal Bureau of Investigation (FBI) Denver Acting Special Agent in Charge Leonard Carollo. “The FBI remains committed to working with all our local, state, and federal partners to keep our communities safe.”
Judge Daniel D. Domenico sentenced the defendant on March 1, 2023.
This case was investigated by the Federal Bureau of Investigation (FBI) Denver, with assistance from the Pueblo Police Department and the Pueblo County Sheriff’s Office. The prosecution was handled by the Violent Crime and Immigration Enforcement Section of the U.S. Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 22-cr-00197
Previously Convicted Sex Offender Sentenced to 15 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher has sentenced August Candeloro III, a/k/a “Nick,” age 35, of Catonsville, Maryland, today to 15 years in federal prison, followed by lifetime supervised release, for a federal charge of possession of child pornography.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Acting Superintendent of the Maryland State Police Colonel Roland L. Butler, Jr.; and Interim Chief Dennis J. Delp of the Baltimore County Police Department.
According to his guilty plea, beginning in 2019 Candeloro began using a messaging application to send images depicting the sexual abuse of children. After additional investigation, law enforcement executed a search warrant at Candeloro’s residence and seized his cellular phone from his bedroom. The phone was found to contain conversations between Candeloro and other users of the messaging application. Candeloro also joined private chat groups on the messaging application, many of which had chatroom names indicative of trading child pornography. Candeloro posted links to a secure cloud storage platform in many of the chatrooms. The secure cloud storage platform allows the user to create links containing encrypted files and chats with keys controlled by the user. Candeloro’s phone also revealed over 2000 images of suspected child pornography, including images involving prepubescent minors and depicting sadistic and masochistic conduct.
Candeloro was previously convicted in two cases for a second-degree sex offense involving a 13-year-old victim in Howard County and Baltimore County Circuit Courts. As a result of those convictions, Candeloro was required to register as a sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended the HSI, Maryland State Police, and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Pinon Man Sentenced to 22 Years for Second Degree Murder in Child Homicide CaseRead the Press Release
PHOENIX, Ariz. – Ferin Billy Nez, 36, of Pinon, Arizona, was sentenced yesterday by United States District Judge Diane J. Humetewa to 22 years in prison. Nez, an enrolled member of the Navajo Nation, pleaded guilty to Second Degree Murder for killing his infant son.
On February 27, 2018, Nez had custody of his infant son, when the child became unresponsive and later died. A medical examination revealed that the victim had injuries consistent with having been shaken and thrown. On March 24, 2021, Nez was charged in a six-count indictment with murder and child abuse. He pleaded guilty to Second Degree Murder on October 17, 2022.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorneys Jennifer E. LaGrange and Sharon K. Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08016-PCT-DJH
RELEASE NUMBER: 2023-027_Nez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Pennsylvania Resident Convicted of Conspiracy in Scheme to Defraud and Extort Crypotocurrency ExecutivesRead the Press Release
SAN FRANCISCO – Today, Anthony Francis Faulk pleaded guilty to a federal charge of conspiracy in connection with a scheme to defraud more than a dozen executives of cryptocurrency-related companies and cryptocurrency investors of money and other property, announced United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Robert K. Tripp. The guilty plea was accepted by the Honorable William H. Orrick, United States District Judge.
Faulk, 26, of Latrobe, Penn., acknowledged his role in the conspiracy in a written plea agreement filed with the Court. According to his plea agreement, Faulk admitted from October 2016 through May 2018, he conspired with others to defraud and extort cryptocurrencies and other money from executives of cryptocurrency-related companies and cryptocurrency investors. Faulk acknowledged that the scheme involved extortion as well as “SIM swapping,” whereby Faulk and his co-conspirators gained access to their victims’ email, electronic storage, and other accounts to defraud the victims of their property.
SIM stands for Subscriber Identity Module or Subscriber Identification Module. A SIM card is a technology used to identify and authenticate subscribers on mobile phone devices. According to his plea agreement, Faulk admitted that he used fraud, deception, and social engineering techniques to induce representatives of cellphone service providers to transfer or port cellphone numbers from SIM cards in the devices possessed by victims into SIM cards of devices possessed by members of the conspiracy. Once in possession of the illegally obtained information, members of the conspiracy reset passwords of their victims’ email, electronic storage, and other accounts. The co-conspirators then were able to control the accounts, access cryptocurrency accounts, and transfer cryptocurrencies from accounts owned by the victims to accounts, or wallets, controlled by Faulk and his co-conspirators.
Further, Faulk admitted that in addition to transferring cryptocurrencies, the co-conspirators also contacted some of their victims by telephone and threatened to compromise further accounts unless the victims paid additional money to the fraudsters.
In the plea agreement, Faulk agreed to forfeit a home in Pennsylvania valued at approximately $942,500, two bank accounts with a combined value of more than $18,500,000, luxury cars, jewelry, and other property – all constituting or is derived from proceeds traceable to the conspiracy.
On December 10, 2019, a federal grand jury indicted Faulk, charging him with one count of conspiracy to commit wire fraud, in violation of 18 U.S. C. § 1349, and one count of interstate communications with intent to extort, in violation of 18 U.S.C. § 875(d). Pursuant to his plea agreement, Faulk pleaded guilty to the conspiracy count. If Faulk complies with the terms of the agreement, the extortion count will be dismissed at sentencing.
Faulk remains free on bail pending his sentencing. Judge Orrick scheduled the sentencing for June 8, 2023. Faulk faces a statutory maximum sentence of 20 years in prison and a maximum fine of twice the gain or loss realized from his crimes. In addition, the court could order Faulk to serve a maximum three-year term of supervised release, restitution, and other penalties. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant United States Attorney Robert Leach is prosecuting the case. This case is the result of an investigation from FBI, along with significant assistance from the Santa Clara County District Attorney's Office's REACT Task Force.
Peculiar Business Owner Sentenced for Tax EvasionRead the Press Release
KANSAS CITY, Mo. – The owner of a Peculiar, Mo., business was sentenced in federal court today for tax evasion.
Jason Rigoli, 43, was sentenced by U.S. District Judge Stephen R. Bough to one year and one day in federal prison without parole. The court also ordered Rigoli to pay $138,455 in restitution.
On Aug. 2, 2022, Rigoli pleaded guilty to one count of tax evasion. Rigoli, who has owned and operated Granite Construction Services, LLC, since 2006, admitted that he has not filed a federal personal, business, or employment tax return for eight years, from 2013 to 2020. Rigoli also failed to pay state income taxes, state employment taxes, workers’ compensation taxes and unemployment taxes.
As part of his scheme, Rigoli used his business bank accounts for all his personal expenses. Rigoli used proceeds of his tax fraud to pay for travel, restaurant meals, and liquor.
Rigoli falsely told IRS agents that he always paid his employees by check. Rigoli also falsely told IRS agents that he paid his employees “by 1099,” when in fact, Rigoli often paid employees with cash and filed no Forms W-2 or Forms 1099 for his employees.
According to court documents, special agents with IRS-Criminal Investigation executed a search warrant at Granite Construction Services. Agents recovered false returns, which were not filed with the IRS, and were labelled with notes such as, “Fake/High,” “2015 Completed F Taxes,” and “Real 2014.”
Rigoli told the agents an accountant that has an office in his same building would soon be preparing and filing all his personal and business tax returns at one time. He said if they had shown up just a month later, he would have had all his taxes filed. He said he was supposed to meet with the accountant that Friday regarding his tax returns. Agents later interviewed the accountant and she contradicted almost everything Rigoli said. The accountant said Rigoli was not a client, that she wasn’t preparing his returns, and that he had no scheduled appointment with her.
According to court documents, Rigoli applied for two Economic Injury Disaster Loans (EIDL) from the Small Business Administration for the same business but under two different names. He received a $150,000 loan for Granite Construction Services on Aug. 4, 2020. He applied for a second EIDL loan on Aug. 5, 2020, under the business name Patriot Construction Management, a shell company. For this second, fraudulent, loan, Rigoli used his parents’ address as the business address and the same employees as he used for his first EIDL loan. This loan was not granted by the Small Business Administration.
Rigoli kept very few books and records related to his business. To calculate taxes owing, the IRS reconstructed the business’s books using bank records and documents recovered from the business. Because Rigoli often used cash, because he comingled his accounts, and because the IRS gave him the benefit of the doubt on business expenses and depreciation, the tax loss is relatively low - $110,819 total from 2016-2019. When federal employment taxes are added, the total federal tax loss is $121,007. The Missouri state tax loss of $17,448 brings the total tax loss to $138,455.
In July 2022, Rigoli filed for tax years 2017 and 2018, so they were several years late. Rigoli reported taxes due and owing for those years. From 2014 to the date of sentencing, Rigoli paid just $139 in federal or state income or employment taxes.
This case was prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by IRS-Criminal Investigation.
Organizer of firearms trafficking conspiracy sent to prisonRead the Press Release
McALLEN, Texas – A 20-year-old Pharr resident has been ordered to federal prison for organizing several individuals and having them purchase several firearms which were bound for Mexico, announced U.S. Attorney Alamdar S. Hamdani.
Christopher Tijerina pleaded guilty July 12, 2022.
Today, U.S. District Judge Micaela Alvarez ordered Tijerina to serve 78 months in federal prison to be immediately followed by a three-year-term of supervised release. At the hearing, the judge noted Tijerina was a leader/organizer in the conspiracy and cited the serious nature of the conduct, the number of firearms involved and the danger they pose to the community at large. The court further stated that being a good citizen requires being good to the whole community.
“We are facing an epidemic of gun violence across our nation,” said Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “The recent surge in gun violence is driven, in part, by individuals who are illegally trafficking firearms to countries like Mexico. When you illegally buy a gun for someone else, you are committing a federal crime and ATF will continue working with our law enforcement partners to stop firearms traffickers and straw purchasers who are contributing to gun violence in our community.”
In January 2022, Tijerina coordinated an effort to obtain firearms that would then be exported to Mexico. From Jan. 31 to Feb. 9, 2022, co-conspirators successfully purchased 13 firearms. Six were 7.62mm AK-47 variant rifles, while there were five 7.62mm AK variant pistols, one .40 caliber pistol and one 9mm pistol. They also attempted to purchase three additional 7.62mm AK-47 variant rifles, but were unsuccessful.
The purchases were made from local federal firearms licensees (FFLs) located in Hidalgo County.
Tijerina, admitted he recruited individuals for the purpose of purchasing firearms for him. Those individuals were eventually charged and convicted of straw purchasing firearms as they each represented on a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) form they were in fact the true buyer of the firearm when they were not.
Thus far, those co-conspirators range in age from 19 to 23 and have received sentences of up to 70 months in federal prison.
Eduardo Guajardo, 26, a U.S. citizen believed to be residing in General Bravo, Nuevo Leon, Mexico, and Jesus Alexis Martine, 20, Edinburg, are both considered fugitives in the case and warrants remain outstanding for their arrests. Anyone with information about their whereabouts is asked to contact U.S. Marshals Service Enforcement Office at 956-558-6238.
Tijerina will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The ATF conducted the investigation. Assistant U.S. Attorneys Peter I. Brostowin and Sarina DiPiazza prosecuted the case.
Operators of Addiction Treatment Chain Charged in Alleged Health Care FraudRead the Press Release
PROVIDENCE – The Massachusetts operator of a chain of addiction treatment clinics is charged in federal court in Providence, RI, with millions of dollars of health care fraud, aggravated identity theft, money laundering and obstruction, announced United States Attorney Zachary A. Cunha. In addition, the treatment center and its former supervisory counselor were also charged with health care fraud.
Michael Brier, 60, of Newton, MA, Mi Ok Bruining, 62, of Warwick, RI, and Recovery Connections Centers of America, Inc. (RCCA) are charged by criminal complaint with health care fraud. Michael Brier was also charged in the complaint with aggravated identity theft, money laundering and obstruction.
It is alleged in court documents that, Brier, Bruining, and RCCA shortchanged Rhode Island and Massachusetts substance abuse disorder patients out of much needed counseling and treatment services, while defrauding Medicare, Medicaid, and other health insurers out of millions of dollars.
At a press conference announcing the culmination of this investigation and resulting criminal charges and arrests, United States Attorney Zachary A. Cunha commented, “What makes the fraud scheme that we have charged today particularly pernicious – is that not only was this scheme, as we allege, designed to defraud by enriching these defendants with federal and private healthcare dollars they did not earn, but that in the process it cheated a vulnerable population of recovery patients out of the full, genuine support and treatment that they need to have a chance at recovery.”
"Today’s arrests serve as a strong reminder that we will not tolerate fraud schemes that target our federal health care programs, as alleged, nor will we accept anything less than high quality care for the people served by those programs,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General. “Our agency’s mission is to protect the well-being of the public and the integrity of the federal health care system, and we will hold accountable those who seek to exploit the opioid epidemic for personal gain.”
“Today, we arrested and charged Michael Brier, Mi Ok Bruining, and Recovery Connections Centers of America, for a wide-ranging scheme in which they are accused of abusing our health care system, cheating taxpayers, and leveraging the opioid crisis to take advantage of those struggling with substance abuse so the company could rake in millions,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The allegations set forth in this case represent one of the most brazen and egregious examples of health care fraud the FBI has seen here in Rhode Island in recent history, and make no mistake, it is not a victimless crime. Anytime the integrity of our federal health care programs is undermined, we all pay the price through the cost of higher insurance premiums, greater out-of-pocket expenses, and co-pays, and even reduced or lost benefits.”
According to the charging documents, Brier, Bruining and RCCA operated a chain of addiction treatment centers but failed to provide the patients with the required counseling sessions and treatment, while simultaneous billing Medicare, Medicaid and other health care payors for 45-minute counseling sessions on a routine basis even though the sessions were not more than 15 minutes, and often only 5-10 minutes or less. At times, so many counseling sessions were billed at this level that the total amount of time would be impossible for the available therapist to have provided in any 24 hours period.
Brier and RCCA are also alleged to have caused a fraudulent application to be submitted to Medicare which, among other things, misrepresented and concealed the role that Brier was playing in the business and failed to disclose Brier’s 2013 criminal conviction for federal tax crimes, which was relevant to Medicare’s consideration of the application.
The Complaint also alleges that Brier purported to practice medicine and wrote and caused to be filled fraudulent prescriptions using the names and prescriber information, including Drug Enforcement Administration numbers, of doctors without their permission.
Brier is also alleged to have falsified a document in a matter within the jurisdiction of an agency of the United States by causing the Medical Director to sign a false and back-dated document.
The complaint alleges that defendants caused millions of dollars in fraudulent billings to be submitted to Medicare and millions more in fraudulent billings to other health care payors.
The government is also seeking to forfeit thirteen bank accounts, two buildings, and two vehicles allegedly realized by the defendants as a result of the alleged criminal conduct.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorneys Sara Miron Bloom and Kevin Love Hubbard.
The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General and the Federal Bureau of Investigation. United States Attorney Cunha thanks the IRS, Customs and Border Protection, and the Rhode Island Office of the Attorney General for their assistance in the investigation.
Additionally, United States Attorney Cunha thanks the United States Department of Health and Human Services and the Centers for Disease Control, and their partners in Rhode Island and Massachusetts, for their quick response to establish services for patients who may be impacted by this law enforcement action.
Additionally, United States Attorney Cunha thanks the United States Department of Health and Human Services Centers for Disease Control and Prevention’s Opioid Rapid Response Program, and their partners in Rhode Island Department of Behavioral Healthcare and Massachusetts Department of Public Health, for assisting patients who may be impacted by this law enforcement action.
Rhode Island Department of Behavioral Healthcare, Developmental Disabilities and Hospitals is working to assure continuity of treatment for RCCA patients. Rhode Island patients in need of a new or immediate bridge prescription are urged to call (401) 606-5454; Rhode Island patients in need of behavioral health referrals for physicians, counselor, or clinic information may call (410) 414-LINK.
Massachusetts Department of Public Health, Bureau of Substance Addiction Service is working to assure continuity of care and treatment RCCA patients. Massachusetts patients in need of a new or immediate bridge prescription are urged to call (617) 414-4175; Massachusetts patients in need of behavioral health referrals for physicians, counselor, or other services may call (800) 327-5050 or use helplinema.com.
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Ohio man pleads guilty to investment fraud scheme defrauding Pike County investorsRead the Press Release
COLUMBUS, Ohio – An Ohio man pleaded guilty in U.S. District Court here today to orchestrating an investment fraud scheme in Pike County and to failing to remit more than $50,000 that had been withheld from employee paychecks to employee retirement funds.
Robert W. Walton, Jr., 54, of Loveland, Ohio, pleaded guilty to one count of wire fraud and one count of theft from an employee benefit plan.
According to court documents, Walton engaged in a scheme to defraud investors of Hadsell Chemical Processing, LLC (HCP) and related entities. Walton was the president of HCP and fraudulently sought investments in the form of promissory notes from dozens of victim investors.
Walton claimed the notes were personally guaranteed by a prominent local business owner when in fact they were not. Walton repeatedly forged the business owner’s signature from 2012 through 2015 without the business owner’s authority on several loan documents and promissory notes.
Walton admitted to falsely representing his company’s future revenues from another business to be in the millions by creating fake invoices. The actual total legitimate business revenue HCP had with that other business was approximately $50,000. He provided the fake invoices to investors. Walton also provided investors with a falsified profit and loss statement, changing HCP’s net income during January to May 2014 from approximately –$800,000 to nearly $395,000.
During part of his employment at HCP, Walton was responsible for approving the remittance of employee retirement funds to an employee benefit plan sponsored by HCP. Walton failed to remit approximately $53,000 withheld from employees’ pay, failing to transfer the funds into employee retirement funds.
The United States is seeking more than $8.6 million in restitution for the victims of the fraud scheme.
Wire fraud is punishable by up to 20 years in prison and embezzling from an employee benefit plan carries a potential maximum sentence of up to five years in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI) Cincinnati Division; and L. Joe Rivers, Regional Director, United States Department of Labor Employee Benefits Security Administration, Cincinnati Regional Office announced the guilty plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Peter K. Glenn-Applegate is representing the United States in this case.
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Ohio Man Sentenced to 12 Years in Prison for Child Exploitation CrimeRead the Press Release
CHARLESTON, W.Va. – Aaron Andrew Dement, 44, of Munroe Falls, Ohio, was sentenced today to 12 years in prison, to be followed by 10 years of supervised release, for attempted enticement of a minor. Dement must also register as a sex offender.
According to court documents and statements made in court, Dement used a dating-chat website to communicate with an individual he believed to be a minor female. Dement admitted to sending the minor female a photo of his genitals and a video of himself masturbating. Dement also asked the minor female to take and send him a photo of her genitalia.
On October 2, 2021, Dement contacted the minor female again and asked her to produce and send him a sexually explicit photo of herself and a sexually explicit voice message. Dement sent the minor female another sexually explicit video of himself. Dement further admitted that from October 7, 2021 until December 13, 2021, he continued to attempt to persuade, induce, entice or coerce the minor child to produce sexually explicit images of herself while also sending her sexually explicit images of himself, through online chats and text messages.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) Violent Crime Against Children (VCAC) Task Force.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorneys Jennifer Rada Herrald and Kristin F. Scott prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-20 and 2:22-cr-199.
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New York Man Indicted for Firearms and Narcotics TraffickingRead the Press Release
BOSTON – A New York man was arrested yesterday in connection with allegedly trafficking drugs and firearms.
Jason Lebberes, 31, of Tuckahoe, N.Y., was indicted on one count of distributing more than 50 grams of methamphetamine; one count of transferring a firearm to an out-of-state resident; and one count of transferring a machinegun. Lebberres was arrested in New York this morning and appeared in federal court in the Southern District of New York yesterday. He will appear in federal court in Boston at a later date.
According to the indictment, Lebberes sold more than 50 grams of methamphetamine, a privately manufactured firearm, commonly known as a “ghost gun” and a Glock switch. A Glock switch is a device that converts firearms into automatic weapons. The investigation revealed that Lebberes had allegedly sold numerous Glock switches to other customers in the past.
It is further alleged that, during a search of Lebberes’ residence in Tuckahoe, N.Y. yesterday, a treasure trove of handguns, assault rifles, and ammunition were recovered, several of which appeared to be privately manufactured. A video of Lebberes discharging a handgun out of his car window was also allegedly recovered during the investigation.
The charge of possession with intent to distribute more than 50 grams of actual methamphetamine provides for a sentence of at least ten years and up to life years in prison, at least five years of supervised release and a fine of up to $5,000,000. The charge of transferring a firearm to an out-of-state resident provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of transferring a machinegun provides for a sentence of up to 15 years in prison, up to 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Office; Darnell Edwards, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division made the announcement today. Valuable assistance was provided by the New York State Police. Assistant U.S. Attorney Evan Panich of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
New York City Man Indicted for Drug and Gun OffensesRead the Press Release
SYRACUSE, NEW YORK – Rasheed Mingues, 43, a resident of New York City staying in the Utica, NY area, was indicted today for possession of controlled substances with the intent to distribute them, possession of a firearm in furtherance of his drug trafficking crimes, and possession of a firearm as a convicted felon. United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division, made the announcement.
Mingues was previously charged by a federal complaint on December 10, 2022. He has been detained without bail since he made his initial appearance on December 10 before Magistrate Judge Thérèse Wiley Dancks.
The indictment alleges that, on December 9, 2022, Mingues possessed hundreds of grams of fentanyl, methamphetamine, and cocaine with the intent to distribute them. The indictment also alleges that Mingues possessed a loaded 9mm handgun in furtherance of his drug trafficking crimes. Federal law prohibits Mingues from possessing the firearm as a result of a prior felony conviction.
The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
The charges filed against Mingues carry a mandatory minimum prison sentence of 15 years and a maximum sentence of life, a fine of up to $10,000,000, and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The United States Drug Enforcement Administration (DEA) and New York State Police are investigating the case with assistance from the Utica Police Department, Syracuse Police Department, Oneida County Sheriff’s Office, and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). Assistant U.S. Attorney Jessica N. Carbone is prosecuting the case.
Nampa Woman Sentenced to 12 Years in Federal Prison for Possession with Intent to Distribute 15 Pounds of FentanylRead the Press Release
BOISE – Wathana Insixiengmay, 34, of Nampa, was sentenced to 144 months in federal prison for possessing, with the intent to distribute, 15 pounds of fentanyl, U.S. Attorney Josh Hurwit announced today.
According to court records, Insixiengmay was a main fentanyl distributor for a large drug trafficking organization with direct ties to Mexico. Insixiengmay received between 12 and 15 pounds of fentanyl (approximately 60,000 pills) on a weekly basis for local distribution. In return she was sending between $50,000 and $100,000 back to the supplier each following week. When she was arrested on June 7, 2022, she had over 30,000 fentanyl pills (approximately seven pounds), nearly eight pounds of fentanyl powder, 180 grams of methamphetamine, and $12,435 in drug proceeds. This remains one of the largest, if not the largest, individual seizure of fentanyl in the District of Idaho’s history.
Senior U.S. District Judge B. Lynn Winmill also ordered Insixiengmay to pay a $500 fine and to serve five years of supervised release following her prison sentence. Insixiengmay pled guilty to the charge on October 24, 2022.
U.S. Attorney Hurwit commended the investigation by the Drug Enforcement Administration Task Force consisting of officers from the United States Marshals Service, United States Probation Office, Nampa Police Department, Boise Police Department, Meridian Police Department, Ada County Sheriff’s Office, Canyon County Sheriff’s Office, and the Idaho Department of Correction.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Michigan Resident Uses Twitter to Threaten to Kill Jewish Government OfficialsRead the Press Release
DETROIT – A Tipton, Michigan resident was charged in a criminal complaint with using Twitter to threaten to kill Jewish government officials in Michigan, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
According to the criminal complaint filed in the case, on February 17, 2023, Jack Eugene Carpenter, III, 41, of Tipton, Michigan, using Twitter while located in Texas, made threats against Jewish government officials in Michigan. One post read, in part: “I’m heading back to Michigan now threatening to carry out the punishment of death to anyone that is jewish in the Michigan govt if they don’t leave, or confess.” Carpenter continued his threats of violence in a second post, which read, in part: “I’ll be coming back to Michigan, still driving with expired plates. You may want to let everyone know, and Wayne County sheriff as well, any attempt to subdue me will be met with deadly force in self-defense.”
The complaint indicated that Carpenter had three 9 mm semi-automatic pistols registered to him, and that he was under investigation by the Michigan State Police for stealing a fourth pistol. According to the complaint, it is also believed that Carpenter also owned a shotgun and two hunting rifles in addition to the pistols.
Carpenter was originally arrested by federal agents in Texas where he appeared in federal court on February 21, 2023. After his hearing in Texas, Carpenter was transported in custody to Detroit, where he made his initial appearance yesterday in federal court. The United States has requested that Carpenter be detained pending trial. He is scheduled for a pretrial detention hearing on Friday, March 3, 2023.
“No one should be threatened or targeted with violence because of their religious beliefs,” said U.S. Attorney Ison. “Anyone who communicates a threat to kill or injure others can expect serious criminal consequences.” “This investigation was greatly aided by concerned citizens who timely came forward to law enforcement and thereby helped us keep our communities safe,” continued U.S. Attorney Ison. “Our community members are the first line of defense in cases like this: so please, if you hear or see something that has you concerned that someone may commit a violent act, please reach out to your local, state, or federal law enforcement agency and help us keep Michigan safe.”
“Threats such as this are intended to create fear, and this case clearly shows targeting someone based on religious beliefs will not be tolerated,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “Crimes motivated by bias will be investigated by the FBI in coordination with the Michigan State Police, and perpetrators held responsible for their actions.”
Based on the charges in the criminal complaint, Carpenter faces up to 5 years in prison if convicted.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being investigated by special agents of the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Hank Moon.
Michigan City Man Sentenced to 151 Months in PrisonRead the Press Release
SOUTH BEND – Cory Thomas, 49 years old, of Michigan City, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio after pleading guilty to possession with intent to distribute cocaine, announced United States Attorney Clifford D. Johnson.
Thomas was sentenced to 151 months in prison followed by 3 years of supervised release.
According to documents in the case, in May 2022, Thomas was pulled over on his motorcycle while transporting over 125 grams of cocaine. This is Thomas’s fifth felony conviction related to the distribution of controlled substances.
This case was investigated by the Drug Enforcement Administration with the assistance of the LaPorte County Drug Task Force and the LaPorte County Sheriff’s Office. This case was prosecuted by Assistant United States Attorney Molly E. Donnelly and former Assistant United States Attorney Frank E. Schaffer.
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Mexican Nationals Charged with Offenses Stemming from Smuggling and Labor Trafficking SchemeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Robert Fuller, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Hartford Police Chief Jason Thody today announced that MARIA DEL CARMEN SANCHEZ POTRERO, also known as Maria Carmela Sanchez, 69, and APOLINAR FRANCISCO PAREDES ESPINOZA, also known as “Pancho,” 56, both of citizens of Mexico residing in Hartford, were arrested yesterday on federal criminal complaints charging each with offenses stemming from their smuggling of aliens into the U.S., harboring them at their Hartford residence, forcing them to work, and threatening to harm them in various ways if they failed to pay exorbitant fees, interest and other living expenses.
Sanchez and Paredes appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford who ordered them detained. A bond hearing for Sanchez is scheduled for March 8.
As alleged in court documents and statements made in court, beginning in September 2022, the FBI and Hartford Police interviewed approximately 10 Mexican nationals who disclosed that they were smuggled from Mexico into the U.S. and transported to Hartford. The victims typically stated that they had arranged with Sanchez and her associates in Mexico to cross the border into the U.S. in exchange for a fee of between $15,000 and $20,000 that each would need to pay once they were in the U.S. In most cases, the victims were required to turn over a property deed as collateral before leaving Mexico. They were then smuggled across the border and transported to Sanchez’s and Paredes’ residence on Madison Street in Hartford.
It is also alleged that after the victims arrived in Hartford, Sanchez informed them that they would have to pay $30,000, with interest, and that they would have to pay her for rent, food, gas and utilities. Sanchez and Parades created false documents for the victims, including Permanent Residence cards and Social Security cards, and helped the victims find employment in the Hartford area. In addition to their own jobs, some victims were required to perform work around the house, or to assist Paredes in his job responsibilities without compensation and without having their debt reduced.
It is further alleged that Sanchez rarely provided victims with an accounting of their debt. If victims failed to make regular payments, or in amounts that she expected, Sanchez and Paredes would threaten the victims, including threatening to harm family members in Mexico, to take property in Mexico that had been secured as collateral, to reveal victims’ immigration status to U.S. authorities, and to raise their interest payments. In one instance, Sanchez threatened to call police to say that a victim had tried to rape her.
Sanchez and Paredes are charged with conspiracy to smuggle, transport, harbor, and encourage or induce aliens to enter and reside in the U.S., an offense that carries a maximum term of imprisonment of 10 years; conspiracy to commit labor trafficking, an offense that carries a maximum term of imprisonment of 20 years; and extortion, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Federal Bureau of Investigation, Hartford Police Department, U.S. Department of Labor – Office of Inspector General, U.S. Department of Labor, U.S. Customs and Border Protection, U.S. Citizenship and Immigration Services, and U.S. Immigration and Customs Enforcement. The case is being prosecuted by Assistant U.S. Attorneys Angel Krull and Shan Patel.
Mexican National Sentenced for Illegally Entering the U.S. Three TimesRead the Press Release
KANSAS CITY, Mo. – A Mexican national who was arrested for driving while intoxicated has been sentenced in federal court for illegally entering the United States for the third time.
Juan Antonio Tejeda-Quiroz, 42, residing in Grandview, Mo., was sentenced by U.S. District Judge Greg Kays on Wednesday, March 1, to three years and six months in federal prison without parole.
On Sept. 22, 2022, Tejeda-Quiroz pleaded guilty to one count of illegally reentering the United States after having been deported following a conviction for a crime of violence.
On April 30, 2022, around 2:30 a.m., a white Buick Century driven by Tejeda-Quiroz reversed out of a driveway and crashed into a marked Grandview police patrol vehicle parked on the 13000 block of 15th Street in Grandview. Tejeda-Quiroz was arrested for driving while intoxicated.
Tejeda-Quiroz, a citizen and national of Mexico, illegally entered the United States in February 1994. On Sept. 6, 2001, Tejeda-Quiroz was convicted of two counts of aggravated assault with a deadly weapon and one count of arson. He threw a firebomb inside a car occupied by his wife, causing her to jump from the moving car that caught fire and exploded, and then used his car to threaten her. He was sentenced to five years of probation and received a deferred sentence. On Dec. 4, 2001, Tejeda-Quiroz was deported to Mexico.
Tejeda-Quiroz illegally entered the United States a second time. He was arrested for burglary of a vehicle on Dec. 8, 2002. On March 17, 2006, he was arrested for illegally reentering the United States, which violated the terms of his probation. His probation was revoked on June 16, 2006, and he was sentenced to six years and six months in prison. On July 13, 2012, Tejeda-Quiroz was again deported to Mexico.
Tejeda-Quiroz illegally reentered the United States a third time in 2018. On May 25, 2018, he was arrested in Lawrence, Kansas for driving under the influence. He was arrested in Liberty, Mo., in July 2021 for driving without a valid license and no insurance. He was arrested in Olathe, Kan., in March 2022 for driving without a license.
Tejeda-Quiroz used alias names, according to court documents, presumably to avoid detection. Tejeda-Quiroz has used controlled substances, including cocaine, and heroin, snorting around one-half gram of heroin a day up until his arrest, according to court documents.
This case was prosecuted by Assistant U.S. Attorney Rudolph R. Rhodes IV. It was investigated by the Grandview, Mo., Police Department and U.S. Immigration and Customs Enforcement.
McComb Woman Found Guilty of Conspiracy and False Statements in Connection with Federal Unemployment FraudRead the Press Release
Jackson, Miss. – A federal jury convicted a McComb woman for one count of conspiring to commit wire fraud, one count of conspiring to commit theft of public money, one count of theft of public money, and one count of making a false statement to a federal agent.
U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Mathew Broadhurst, Special Agent in Charge for the Southeast Region of the U.S. Department of Labor Office of Inspector General made the announcement.
According to court documents and evidence presented at trial, Laketia Andrews Crossley, 51, conspired with Sedrick Pittman, Marcus Parker, Austin Bahm, and Calveshar Isaac to receive federal unemployment insurance benefits. During the early months of the COVID-19 pandemic, Pittman, Parker, Bahm, and Isaac were inmates housed at the South Mississippi Correctional Institution in Mississippi Department of Corrections custody. The inmates fraudulently applied for federal unemployment insurance benefits by stating on their applications that they were able and available to immediately accept employment.
Due to the overwhelming number of applications for unemployment insurance, these fraudulent applications were not immediately detected, and benefits were approved for the group of prison inmates. The unemployment insurance benefits were sent by mail on debit cards to Crossley. Crossley then converted the funds on the debit cards to funds that she transmitted to Pittman, with whom she had a long-term romantic relationship, via cell phone. When questioned about her actions by special agents of the Department of Labor, Office of Inspector General (DOL-OIG), Crossley made false statements. It is contrary to federal law to fraudulently apply for or receive federal unemployment insurance benefits. It is also contrary to federal law to make false statements to a federal agent.
While Pittman, Parker, Bahm, and Isaac all pled guilty to various charges, Crossley asserted her right to a jury trial. After a three-day trial at the federal courthouse in Natchez, a jury found Crossley guilty of all charges.
Crossley is scheduled to be sentenced by Senior United States District Judge David Bramlette III on June 1, 2023, at the federal courthouse in Natchez.
The Department of Labor Office of Inspector General investigated the case.
Assistant U.S. Attorneys Kimberly T. Purdie and Charles W. Kirkham are prosecuting the case.
Maryland Man Sentenced to Five Months Incarceration for Simple Assault ChargesRead the Press Release
WASHINGTON – Robert Anderson, 55, of Hanover, Maryland, was sentenced today to five months of incarceration for a series of simple assaults on Metropolitan Police Department employees and officers that involved offensive touching and brandishing a knife. At the time of these assaults, Anderson was a sworn officer with the Metropolitan Police Department. The announcement was made by U.S. Attorney Matthew M. Graves and Chief Robert J. Contee, III.
On February 1, 2023, a jury found Anderson guilty of four counts of assault. The verdict followed a three-day trial in the Superior Court of the District of Columbia, before the Honorable Heidi Pasichow who sentenced him to 480 days in jail suspended after 150 days with the condition that Anderson successfully complete 18 months of probation.
According to the government’s evidence, on January 14, 2019, at approximately 9:00 p.m., an officer victim was working at the Fifth District Police Station when Anderson, who was on duty, came up beside her and beckoned to her to stand up. When she did not stand up, Anderson leaned down and kissed her ear and neck without consent. In response to this conduct, the Metropolitan Police Department reassigned then-Officer Anderson to the Fourth District Police Station. Only several weeks later, in early February 2019, Anderson approached another female officer from behind, wrapped his arms around her, touched her breast, and kissed her ear and face without consent. And on February 5, 2019, Anderson approached two female employees and began to touch them on their heads without their consent. When a civilian employee intervened to stop Anderson from touching the women, Anderson brandished a knife at him.
In announcing the sentence, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Lead Paralegal Specialist Wanda Trice and other support personnel.
Finally, he commended the efforts of Assistant U.S. Attorney Jacqueline Yarbro and Assistant U.S. Attorney Bonnie Lindemann, who prosecuted the case, and Assistant U.S. Attorneys Felice Roggen and Tamara Rubb, who investigated the case.
Man Convicted, Fined for Operating a Guide Company on BLM Land Without a PermitRead the Press Release
ANCHORAGE – A federal magistrate judge in Alaska sentenced a Fairbanks man to pay a fine for unlawfully selling and operating a tour on federal land without a permit. The land is owned by the Bureau of Land Management (BLM).
According to court documents and statements in court, Jun Liang, 40, is the sole owner of AK Aurora Travel Inc. Through that company, Liang sold and operated tours of various places in Alaska, including Castner Glacier Trail, located at milepost 217.3 on the Richardson Highway. In December 2022, Liang sold a tour to tourists without a Permit, despite having been told that he needed a permit to do so lawfully. Liang lacked the required Permit.
The law requires tour operators to have a Special Use Permit to sell or operate tours on BLM land. Castner Glacier trail has complex environmental and topographical challenges. Extreme winds, fast changing water levels, active glaciers, and rockfalls all present hazards.
Federal Magistrate Judge Scott Oravec commented that it was important to understand that it is unlawful to operate tours on BLM land without a permit. The Court warned Liang that there could be more serious penalties if he unlawfully operates more tours.
“Unlawful tours pose a threat to unwitting tourists and natural resources,” said BLM Law Enforcement Ranger Joseph Crane. “Today’s sentencing demonstrates that BLM and its partner agencies are committed to protecting federal land and pursuing those whose illegal acts threaten our natural resources and endanger visitors.”
The sentencing occurred on March 1, 2023. U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
The Bureau of Land Management investigated the case.
Assistant U.S. Attorney Jonas M. Walker prosecuted the case.
For more information about Castner Glacier, see: https://www.blm.gov/visit/castner-glacier-trail
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Man Admits Methamphetamine Sales, Gun ChargeRead the Press Release
ST. LOUIS – A man arrested at a St. Charles County motel with an assault rifle and a ballistic vest labeled “Police” pleaded guilty to drug and gun charges Thursday.
Brett A. Stone, 42, pleaded guilty in front of U.S. District Judge Rodney W. Sippel to two counts of possession with the intent to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
On July 7, 2020 members of the St. Charles County Regional Drug Task Force learned that Stone was selling drugs at a St. Charles County motel and had a gun. Investigators conducted surveillance and saw Stone walking around the outside of the hotel, carrying an assault-type weapon and wearing a ballistic vest with the words “Police” on the back, Stone’s plea agreement says.
The investigators then detained someone who left Stone’s hotel room and found about 12 grams of methamphetamine, drug paraphernalia and a firearm.
Stone was taken into custody outside his hotel room, and a woman who told authorities she was there to buy methamphetamine was arrested inside the room. A court-authorized search of that room found a stolen AR-15 rifle, a shotgun, a muzzle loader pistol, the ballistic vest, ammunition, a money counter, methamphetamine and drug paraphernalia. Stone was released while charges were being sought.
On Oct. 13, 2020 a confidential informant bought $300 worth of methamphetamine from Stone.
Stone is scheduled to be sentenced June 1. The methamphetamine charges each carry a potential penalty of up to 20 years in prison, a $1 million fine or both. The gun charge carries a penalty of at least five years in prison.
The St. Charles County Regional Drug Task Force and the Drug Enforcement Administration investigated the case. Assistant U.S. Attorney Paul D’Agrosa is prosecuting the case.
Leader of Multi-Kilo Meth Distribution Ring Pleads Guilty, 16 Co-Defendants Admit Guilt Resulting from OCDETF InvestigationRead the Press Release
MACON, Ga. – Multiple defendants connected to a methamphetamine trafficking ring centered in Milledgeville, Georgia, that was responsible for distributing a total of five kilograms of methamphetamine pleaded guilty to their crimes recently resulting from an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
Jarvis Havior aka “J Bo,” 31, of Milledgeville, pleaded guilty to possession of methamphetamine with intent to distribute on Feb. 16 before U.S. District Judge Marc Treadwell. Havior faces a minimum of ten years in prison to a maximum of life imprisonment to be followed by at least five years of supervised release and a $10,000,000 fine. Sentencing is scheduled for May 3.
“Through the Organized Crime and Drug Enforcement Task Force, law enforcement agents coordinated a successful take-down of a drug trafficking network pushing high volumes of methamphetamine into the Milledgeville area,” said U.S. Attorney Peter D. Leary. “Local, state and federal law enforcement are helping us hold those distributing large quantities of the most deadly and addictive illegal drugs accountable at the federal level.”
“Those who distribute methamphetamine pose a grave danger to the community. These traffickers can no longer deliver dangerous drugs on the streets and must now face the consequences of their actions,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Division.
“The dangers associated with meth remain one of the most significant drug threats facing our community,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “With the help of our federal, state and local partners, this is a significant amount of poison that will not make it into our communities, driving crime and violence.”
“Illegal drugs are dangerous and threaten the safety of Georgia communities. The GBI is committed to getting these drugs off the streets by bringing to justice all those that take part in the illegal drug trade, from the supplier down to the dealer,” said GBI Director Mike Register.
According to court documents, agents with DEA, GBI and the Ocmulgee Drug Task Force (OCDETF) received credible information in June 2020 from multiple confidential sources that Havior was leading a multi-kilogram methamphetamine distribution ring operating in the Milledgeville community. A subsequent investigation determined the location of distribution “trap” houses and “stash” houses for bulk narcotics and cash that Havior and his criminal associates maintained.
On April 5, 2021, agents determined that Havior was going to replenish his methamphetamine supply at a location in Stone Mountain, Georgia, where he had previously traveled to for suspected drug re-supply runs. Agents observed Havior meet a man at a Publix parking lot in Stone Mountain and receive a fully laden green Publix bag. Havior traveled to a restaurant in Covington, Georgia, and gave the bag to co-defendant Anrico Taylor. Both defendants departed the restaurant in their respective vehicles and traffic stops were conducted on them in Baldwin County, Georgia. Taylor attempted to flee with the Publix bag, ripping apart several smaller bags of methamphetamine as he ran from officers, amounting to approximately one kilogram of methamphetamine spread on the ground. In total, four kilograms of methamphetamine was found inside the green Publix bag. In all, the drug trafficking ring is responsible for distributing at least five kilograms of methamphetamine.
The following co-defendants entered guilty pleas and will be sentenced at a later date:
- Dawn Carey, 47, of Milledgeville, pleaded guilty to one count of conspiracy to distribute controlled substances and faces a maximum of life in prison;
- Nicholas Cuevas-Flores, 37, of Lawrenceville, Georgia, pleaded guilty to one count of conspiracy to distribute controlled substances and faces a maximum of life in prison;
- Bruce Harrison, 39, of Milledgeville, pleaded guilty to one count possession of methamphetamine with intent to distribute and faces a maximum of life in prison;
- Paul Collins, 59, of Milledgeville, pleaded guilty to one count of conspiracy to distribute controlled substances and faces a maximum of 20 years in prison;
- Arturo Marshall aka Turo, 41, of Milledgeville, pleaded guilty to one count of conspiracy to distribute controlled substances and faces a maximum of 20 years in prison;
- Annie Collins, 21, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Tyrone Hitchcock aka T Y, 48, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Alicia Nugent, 38, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Anrico Taylor aka Rico, 34, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Amber Vanclief, 32, of Milledgeville, pleaded guilty to one count of possession of methamphetamine with intent to distribute and faces a maximum of 20 years in prison;
- Matthew Cameron, 47, of Milledgeville, pleaded guilty to possession of methamphetamine with intent to distribute and faces a maximum of ten years in prison;
- Paris Binion, 30, of Milledgeville, pleaded guilty to one count of the unlawful use of a communications facility and faces a maximum of four years in prison;
- Lamont Jackson, 48, of Milledgeville, pleaded guilty to one count of the unlawful use of a communications facility and faces a maximum of four years in prison;
- Perry Miller, 27, of Milledgeville, pleaded guilty to the unlawful use of a communications facility and faces a maximum of four years in prison;
- Macarthur Reeves aka Mac, 67, of Milledgeville, pleaded guilty to the unlawful use of a communications facility and faces a maximum of four years in prison; and
- Ryan Rickard, 49, of Milledgeville, pleaded guilty to one count of the unlawful use of a communications facility and faces a maximum of four years in prison.
The following co-defendants remain at large and are charged with the following crimes:
- Dwight Turner aka “Wight,” 57, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and two counts distribution of methamphetamine and faces a maximum of life in prison;
- Paul Bentley aka “Old School,” 56, of Milledgeville, is charged with one count conspiracy to distribute controlled substances and faces a maximum of life in prison; and
- Noe Canela, 34, of Lilburn, Georgia, is charged with one count conspiracy to distribute controlled substances and faces a maximum of life in prison.
An indictment is merely an accusation of a crime; any and all defendants remain innocent unless proven guilty by a court of law.
Individuals with information regarding the whereabouts of Turner, Canela and Bentley can contact the FBI’s Atlanta Field Office at (770) 216-3000 or submit a tip online at tips.fbi.gov.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being investigated by DEA, FBI, GBI, Ocmulgee Drug Task Force, Baldwin County Sherriff’s Office, Laurens County Sheriff’s Office, Washington County Sheriff’s Office, Georgia Department of Corrections, Milledgeville Community Supervision Office, Wilkinson County Sheriff’s Office, Jones County Sheriff’s Office, Atlanta-Carolina’s HIDTA Office and Gwinnett Metro Task Force.
Assistant U.S. Attorney Alex Kalim is prosecuting the case.
Lame Deer man admits sexually abusing boy on Northern Cheyenne Indian ReservationRead the Press Release
BILLINGS — A Lame Deer man today admitted to allegations that he sexually abused a minor boy over several years on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Loy Matthew Bryant, 51, pleaded guilty to sexual abuse of a minor. Bryant faces a maximum of 15 years in prison, a $250,000 fine and not less than five years to a lifetime of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. A sentencing date will be set before U.S. District Judge Susan P. Watters. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Bryant was detained pending further proceedings.
In court documents, the government alleged that Bryant engaged in sexual relations with the victim, identified as John Doe, who was between the ages 12 years and 16 years, for several years. In September 2022, John Doe, age 17, disclosed that Bryant started sexually abusing him when he was in about the sixth grade. When interviewed by law enforcement, Bryant admitted to having sexual relations with the victim.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI.
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Korean National Pleads Guilty to “Bust Out” Bank Fraud Scheme in Sacramento Area and ElsewhereRead the Press Release
SACRAMENTO, Calif. — Hee Soung Oh, 47, a Korean national residing in Southern California, pleaded guilty today to bank fraud and bank fraud conspiracy, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between January 2017 and September 2017, Oh participated in a nationwide check kiting “bust out” scheme in order to obtain cash from banks. The scheme’s participants obtained a real Republic of Korea passport that was altered to bear a new photograph and name, which they used to open bank accounts with a small amount of cash. The accounts were dormant until a time the participants believed the bank would allow the account holder to deposit a check and make withdrawals before the check actually cleared. At that time, the participants wrote checks from a different bank account with non-sufficient funds, deposited those checks into the dormant account, and then withdrew cash from the dormant account before the checks cleared. The participants would access funds by purchasing a money order and then deposit the money order into yet another bank account associated with the scheme.
Oh is associated with opening source accounts or draining victim accounts. These bust-outs resulted in an actual loss of $273,800 to the banks, and a total intended loss of $466,318 based on additional, unsuccessful bust-out attempts.
This case is the product of an investigation by the IRS Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Audrey B. Hemesath is prosecuting the case.
Oh is scheduled to be sentenced on May 18, 2023, by U.S. District Judge Troy L. Nunley. Oh faces a maximum statutory penalty of 30 years. 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.
Korean nationals Jong Eun Lee, 48, and Kyung Min Kong, 55, were sentenced respectively to 22 months and seven years and nine months in prison. Charges are pending against Ki Jang and Bon Soke Hong, who were indicted on Oct. 21, 2021. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Justice Department and European Commission Announces Resumption of U.S. and EU Negotiations on Electronic Evidence in Criminal InvestigationsRead the Press Release
The U.S. Department of Justice and the European Commission today announced the resumption of negotiations on an EU-U.S. agreement to facilitate access to electronic evidence in criminal investigations. Officials from the U.S. Department of Justice, U.S. Department of State, and European Commission plan to meet in Stockholm, Sweden, on March 15 and 16 prior to the EU-U.S. Justice and Home Affairs Senior Officials Meeting taking place in Stockholm on March 16 and 17. Negotiation started in September 2019 but was paused while the European Union finalized the EU e-Evidence legislation.
Justice Department Secures Settlement in Sexual Harassment Lawsuit Against Michigan LandlordRead the Press Release
The Justice Department announced today that it has secured an agreement to resolve a lawsuit alleging that landlord Darrell Jones of Muskegon, Michigan, violated the Fair Housing Act by sexually harassing female tenants. The settlement also resolves claims against Fatima Jones and Jones Investing, LLC, which, along with Jones, owned the properties where the alleged harassment occurred.
“The Fair Housing Act protects the rights of tenants to live in peace and security without the fear that their housing provider will sexually harass them,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to holding housing providers accountable for their unlawful behavior and seeking relief for survivors.”
“The sexual harassment of tenants is an intolerable abuse of power that violates federal civil rights laws,” said U.S. Attorney Mark A. Totten for the Western District of Michigan. “No one should have to endure harassment and discrimination, especially in their own homes. My office is committed to protecting the rights of vulnerable tenants and will continue to vigorously enforce the Fair Housing Act to combat discrimination and secure justice for victims.”
Under the agreement, which still must be approved by the U.S. District Court for the Western District of Michigan, defendants are required to pay $155,000 to compensate individuals harmed by the harassment and pay a $10,000 civil penalty to the United States. The consent order also requires the defendants to:
- Retain an independent property manager to manage their rental properties for the duration of the order;
- Obtain fair housing training; and
- Implement non-discrimination policies and complaint procedures to prevent sexual harassment at their properties in the future.
The lawsuit, filed in June 2020, alleged that since at least 2008, Jones subjected female tenants to harassment that included making repeated and unwelcome sexual comments, touching tenants’ bodies without their consent, demanding sexual activity in exchange for rent and housing-related benefits and taking adverse actions against tenants who resisted his sexual advances or complained about the harassment.
This case was referred to the Justice Department by the Fair Housing Center of West Michigan and was litigated by attorneys in the department’s Civil Rights Division and the U.S. Attorney’s Office for the Western District of Michigan.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the initiative in October 2017, the department has filed 28 lawsuits alleging sexual harassment in housing and recovered more than $9.8 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online
Justice Department Files Statements of Interest in Servicemembers’ Lawsuits Asserting Their Rights Against Major Banks in Federal CourtRead the Press Release
The Justice Department announced today that it filed statements of interest in Espin et al. v. Citibank, N.A. and Padao v. American Express National Bank, two lawsuits currently pending in the U.S. District Court for the Eastern District of North Carolina, to address the right of the nation’s servicemembers to bring and participate in class action litigation under the Servicemembers Civil Relief Act (SCRA) instead of being forced into privatized arbitration proceedings on their own.
The SCRA provides special legal protections to servicemembers to enable them to focus on their jobs defending the nation. For example, it allows servicemembers to reduce the interest rates on certain loans to 6% while on active duty. In Espin and Padao, the plaintiffs allege that Citibank and American Express, respectively, violated the SCRA by imposing interest rates in excess of 6% on qualified servicemembers.
The plaintiffs are seeking to bring class actions against the banks on behalf of themselves and other servicemembers who may have been affected. In response, Citibank and American Express are seeking to have the cases dismissed and to require every servicemember to bring their own individual claim in private arbitration. The department’s statements of interest urge the court to deny the defendants’ motions and to allow the plaintiffs’ SCRA class claims to proceed.
“The Justice Department is committed to robust enforcement of the Servicemembers Civil Relief Act, both through actions brought by the Attorney General and through servicemembers seeking to vindicate their own rights and the rights of others in federal court,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division.
“Our troops put their lives on the line to secure our freedom, and they should be able to effectively vindicate their rights,” said U.S. Attorney Michael Easley for the Eastern District of North Carolina. “Our troops fight for our freedom abroad, and we will zealously fight for their rights here at home. Limiting the rights of members of our military is unacceptable, especially in North Carolina, one of the most military-friendly states in the nation. We stand with our troops and insist that they be treated with the respect they deserve.”
The department’s statements of interest address specific language in the SCRA that permits plaintiffs in a civil action to be a representative party on behalf of members of a class or be a member of a class despite any previous agreement to the contrary. As explained in the statements of interest, this provision allows servicemembers to participate in class actions in federal court alleging SCRA violations even where, as in Espin and Padao, defendants seek to enforce an agreement requiring individual arbitration. The motions to compel arbitration in both cases are currently pending before the court.
Since 2011, the department has obtained over $481 million in monetary relief for over 123,000 servicemembers through its enforcement of the SCRA. For more information about the department’s enforcement efforts under the SCRA and other laws that protect the rights of servicemembers, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Houston Area Man Sentenced for Selling, Mailing Counterfeit Native American GoodsRead the Press Release
SAN ANTONIO – A Kingwood man was sentenced in federal court in San Antonio Tuesday to five years of probation for mail fraud and misrepresentation of Indian Goods under the Indian Arts and Crafts Act.
According to court documents, Kevin Charles Kowalis, 60, fraudulently marketed and sold jewelry online that he described as “Native American Indian Handmade,” “genuine Indian handcrafted,” “Zuni,” and “Navajo.” He had received the counterfeit jewelry from a manufacturer in the Philippines unaffiliated with any federally recognized Native American tribe. Kowalis fulfilled an order of the jewelry to a San Antonio-based customer, mailing several packages through the U.S. Postal Service. In addition to the five-year probation sentence, Kowalis was ordered to forfeit his inventory and pay restitution to a victimized artist.
“Fraud can come in many forms but always carries the intent to deceive a victim,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Offenders like this defendant victimize both our cherished Native American community and consumers who believe they’re collecting authentic pieces of Native American culture. We will not stand idle while someone takes advantage of our citizens and our federal resources.”
“This sentencing is important in the fight to end this type of fraud. Our dedicated team of special agents works on behalf of the Department of the Interior and the Indian Arts and Crafts Board to protect American Indian and Alaska Native artists and the consumers who purchase authentic Native American art and craftwork,” said Assistant Director Edward J. Grace of the U.S Fish and Wildlife Service’s (USFWS) Office of Law Enforcement. "We thank our partners at the U.S. Department of Justice for their assistance with this investigation."
“For those selling counterfeit Indian art and craftwork it is important to know that wherever you are we will diligently work to find and prosecute you under the Indian Arts and Crafts Act,” said Director Meridith Stanton of the U.S. Department of the Interior’s Indian Arts and Crafts Board. “This case provides a vivid demonstration of that commitment.”
The USFWS Office of Law Enforcement investigated the case with the assistance of the U.S. Department of the Interior’s Indian Arts and Crafts Board.
Assistant U.S. Attorney William Calve prosecuted the case.
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Guatemalan Man Sentenced to over Four Years in Prison for Fentanyl TraffickingRead the Press Release
SACRAMENTO, Calif. — Jairo Leonidas Raymundo-Cua, 33, of Guatemala, was sentenced today to four years and three months in prison for conspiring to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on multiple occasions in February 2022, Raymundo-Cua distributed powder fentanyl and counterfeit oxycodone M-30 pills containing fentanyl to an undercover officer on behalf of the leader of the conspiracy, Carlos Calel. When law enforcement officers executed a search warrant at Raymundo-Cua’s Sacramento residence in March 2022, they found over 20,000 M-30 pills containing fentanyl and over a kilogram of fentanyl-laced heroin in Raymundo-Cua’s backpack, along with a fraudulent green card in Raymundo-Cua’s name.
This case was the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, and the Tri-County Drug Enforcement Team. Assistant U.S. Attorney David W. Spencer prosecuted the case.
Carlos Calel pleaded guilty to conspiracy to distribute fentanyl on Oct. 27, 2022. Calel is scheduled to be sentenced on May 11, 2023, by U.S. District Judge Troy L. Nunley. Calel faces a maximum statutory penalty of 40 years in prison and a $5 million 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 effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Fort Wayne Man Sentenced to 90 Months in PrisonRead the Press Release
FORT WAYNE – Airon L. Mitchell, age 24, of Fort Wayne, was sentenced before United States District Court Judge Holly A. Brady after pleading guilty to possession with intent to distribute a controlled substance and possession of a firearm in furtherance of a drug trafficking crime, announced United States Attorney Clifford D. Johnson.
Mitchell was sentenced to 90 months in prison followed by 3 years of supervised release.
According to documents in this case, in August 2021, Fort Wayne Police Officers were looking for Mitchell who had an outstanding warrant for his arrest. Officers observed Mitchell get into a vehicle while holding a bag which he dropped in the center console. The bag contained 195 blue fentanyl pills. A search warrant for his residence resulted in the recovery of 193.8 grams of marijuana, a digital scale, a loaded 9mm handgun as well as a loaded 50 round drum magazine. Mitchell is a convicted felon and prohibited from possessing the firearm or ammunition.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and the Indiana State Police Laboratory Division. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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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Former Schenectady-Area Teacher Sentenced to 19 Years in Prison for Sexually Exploiting a MinorRead the Press Release
ALBANY, NEW YORK – Kristin Blair Hiltunen, age 37, of Amsterdam, New York, was sentenced today to 228 months in prison for sexually exploiting a minor. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
As part of her guilty plea, Hiltunen admitted that between April 2021 and August 2021, she engaged in a sexual relationship with a minor victim who was under 16 years of age. During this period of time, Hiltunen exchanged thousands of messages with the victim over a social media application through which she persuaded, induced, and enticed the victim to take sexually explicit images of themselves and send the images to Hiltunen. Hiltunen further engaged in livestreamed video chats with the victim during which they engaged in sexual acts.
United States District Judge Glenn T. Suddaby also imposed a 20-year term of supervised release to begin after Hiltunen is released from prison. Hiltunen will be required to register as a sex offender as a result of this conviction.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes members of the Rotterdam Police Department, as well as the New York State Police. This case was prosecuted by Assistant United States Attorney Rachel L. Williams as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Former Rensselaer County Correctional Officer Sentenced for Sexual Abuse of InmateRead the Press Release
ALBANY, NEW YORK – Sean Morrissey, age 51, of Waterford, New York, a former Rensselaer County Correctional Officer, was sentenced today for sexually abusing an inmate in his custody at the Rensselaer County Correctional Facility (“RCCF”). United States District Judge Glenn T. Suddaby ordered Morrissey to serve 3 years of probation, to include 6 weekends in jail, and to pay a $2,000 fine.
United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
Morrissey previously pled guilty to a one-count indictment charging abusive sexual contact of a ward. Morrissey admitted that during a two-week period between September 7, 2018 and September 21, 2018, while he was a correctional officer at RCCF, he knowingly rubbed the genitalia of a female federal inmate, while he was the sole corrections officer in charge of her all-female housing unit.
The FBI and the Rensselaer County Sheriff’s Office investigated this case. Assistant U.S. Attorney Benjamin S. Clark prosecuted this case.
Former Raleigh County Housing Director Pleads Guilty to Federal Fraud CrimeRead the Press Release
BECKLEY, W.Va. Laquenta Lowe, 45, of Beckley, pleaded guilty today to conversion of public money exceeding $1,000. Lowe admitted to stealing at least $7,978.91 in federal funds while employed by the Raleigh County Housing Authority (RCHA).
According to court documents and statements made in court, Lowe was chief financial officer and accountant for the RCHA from July 1, 2018 through May 31, 2019. Lowe was executive director of the RCHA from June 1, 2019, through April 30, 2021. During this time, RCHA administered programs that used federal funds including the Section 8 income-based rent subsidy program. RCHA kept the federal funds it received from the United States Department and Urban Development (HUD) in RCHA’s primary operating account at a West Virginia bank.
Lowe used her positions at RCHA to steal at least $7,978.91 in federal funds that HUD had disbursed to RCHA and knowingly converted the funds to her personal use and without authorization. Lowe admitted to receiving at least $6,728.82 of that amount in overtime compensation that she should not have received. Lowe further admitted to receiving at least $660.68 in travel-related expenses reimbursements that she should not have received for RCHA-related travel. Lowe also admitted to using a RCHA credit card issued to her to purchase a $199.99 smart watch for her personal use and without authorization.
Lowe is scheduled to be sentenced on June 23, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of Housing and Urban Development-Office of Inspector General (HUD-OIG), the Federal Bureau of Investigation (FBI), and the West Virginia State Auditor’s Office (WVSAO) Public Integrity and Fraud Unit (PIFU).
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorneys Ryan Blackwell and Kristin Scott are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:23-cr-7.
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Former New Yorker Sentenced to Three Years in Prison for Defrauding Purchasers of Cryptocurrency-Mining Computers and Miner-Hosting ServicesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that CHET STOJANOVICH, a/k/a “Chester J. Stojanovich,” was sentenced today to three years in prison. STOJANOVICH was sentenced for defrauding more than a dozen victims of more than $2 million through fraudulent misrepresentations that he would provide his customers with specialized cryptocurrency-mining computers (“Miners”) and Miner-hosting services that would provide the victims with a lucrative stream of “hash power” convertible into cryptocurrency. Instead, STOJANOVICH misappropriated his victims’ money and failed to provide them with the Miners and Miner-hosting services they had purchased from him. Stojanovich previously pled guilty on November 29, 2022, to one count of wire fraud and was sentenced today before United States District Judge Denise Cote.
U.S. Attorney Damian Williams said: “Chet Stojanovich took advantage of a flashy new trend in the financial sector to swindle his victims into sending him more than $2 million dollars in exchange for cryptocurrency-related technology and equipment that these victims never received. This case serves as another reminder that even new financial frontiers are fraught with old-fashioned fraud, but our career prosecutors and law enforcement partners are ever as prepared to root out these schemes.”
According to the Indictment, statements made in court, and other publicly filed documents in this case:
From at least 2019, until his arrest in April 2022, STOJANOVICH controlled various companies, including Chet Mining Co. LLC (“Chet Mining”). Starting in approximately March 2019, STOJANOVICH engaged in a scheme to defraud people who were seeking to purchase Miners and Miner-hosting services through which they expected to obtain “hash power” convertible into cryptocurrency and money. STOJANOVICH defrauded these victims by falsely telling them that: he would purchase, and had purchased, Miners on their behalf; and he would provide them with Miner-hosting services and had already obtained such Miner-hosting services for them.
In total, STOJANOVICH fraudulently induced more than a dozen customer-victims to pay a total of more than $2 million to STOJANOVICH and his companies, ostensibly in return for Miners and Miner-hosting services. Despite fraudulent representations to the contrary, STOJANOVICH: (i) failed to provide many of the Miners that he told customers he had acquired; (ii) failed to provide the Miner-hosting services and cryptocurrency hash power that he represented he would provide; (iii) employed deceptive practices to create the illusion that such Miners had been acquired and were being used to provide hash power to those customers; and (iv) misappropriated his customers’ funds and spent the funds on unrelated and personal expenditures, including chartered air flights, hotel rooms, limousines, and private parties.
Eventually, at least six of STOJANOVICH’s victims sought to hold him accountable for his fraud by suing him in a civil case, Holmes et al. v. Chet Mining, Chet Stojanovich, et ano., Case No. 20 Civ. 4448 (LJL) (S.D.N.Y.). STOJANOVICH sought to obstruct their efforts by lying under oath at a deposition, and lying to the presiding district judge, about the existence and location of electronic evidence in the case.
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In addition to his prison sentence, STOJANOVICH, 38, previously of New York, New York, but residing in California since his release on bail in this case, was sentenced today to three years of supervised release, forfeiture of $2,158,927, and restitution to his victims in the amount of $2,108,927.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation in the investigation of this case
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.