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23 February 2023
Cumberland Man Sentenced to Ten Years in Federal Prison in Largest Counterfeit Pill SeizureRead the Press Release
PROVIDENCE – A Cumberland man who admitted to possessing approximately 665,728 methamphetamine-laced counterfeit Adderall® pills, the largest known seizure of its kind in the country, was sentenced today to ten years in federal prison, announced United States Attorney Zachary A. Cunha.
Dylan Rodas, 27, has been detained since his arrest on March 28, 2022, as the result of an expansive Project Safe Neighborhoods Rhode Island and DEA Drug Task Force investigation into the trafficking of methamphetamine in Rhode Island. Rodas was arrested for delivery of methamphetamine to a confidential source which had occurred earlier in the month.
At the time of his arrest, Rodas immediately provided DEA agents with information about his drug trafficking activities, including the location where he packaged and stored narcotics and that he was in possession of a number of firearms, assorted ammunition and other illegal substance. Upon searching this location, agents seized approximately 665,728 methamphetamine-laced counterfeit Adderall® pills, weighing a total of approximately 660 pounds; approximately eleven kilograms of methamphetamine powder; fake Oxycodone fentanyl-laced pills; two motorized pill presses; 250 grams of cocaine; $15,000 in cash; and seven handguns, including two “ghost guns. This is believed to be the largest seizure of counterfeit Adderall pills and among the largest single methamphetamine seizures by DEA’s New England Field Division.
Rodas pleaded guilty on September 29, 2022, to possession with intent to distribute 500 grams or more of methamphetamine. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 120 months in federal prison to be followed by five years of federal supervised release and to pay a $5,000 fine.
The case was prosecuted by Assistant United States Attorney Stacey A. Erickson.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; the East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, and Woonsocket and Amtrak Police Departments; and Rhode Island Attorney General’s Office Bureau of Criminal Identification and Investigation.
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Cumberland County Man Sentenced to 10 Years in Prison for Receiving Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Anthony Lauro, age 35, of Mechanicsburg, Pennsylvania, was sentenced to 10 years’ imprisonment by United States District Court Judge Christopher C. Conner for receiving child pornography. Judge Conner also ordered Lauro to pay $24,000 in restitution to victims of his offenses, and to serve 10 years on supervised release following his prison sentence.
According to U.S. Attorney Gerard M. Karam, Lauro pleaded guilty to receiving images and videos of child pornography that were sent to him by another Cumberland County resident named Ryan Banks, who created the illicit images with a 14-year-old boy in West Virginia in September 2020 when Banks was 36. Banks is currently serving a 17 ½ to 35-year prison sentence in West Virginia for his offenses. Lauro was found to have been in contact with both Banks and the victim at the time the victim was being sexually exploited. As part of the federal investigation, agents found Lauro in possession of more than 1,000 images and videos depicting the sexual exploitation of other minors.
The case was investigated by Homeland Security Investigations with assistance from the Pennsylvania Office of Attorney General, the Mechanicsburg Police Department, and the Monongalia County Sheriff’s Office in West Virginia. Assistant United States Attorney Christian T. Haugsby prosecuted the case.
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 Attorneys' 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.usdoj.gov/psc.
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Criminal Organization Leader to Serve 25 Years in Federal Prison Once Current 10-Year Sentence EndsRead the Press Release
SAN ANTONIO – A Mexican national was sentenced Wednesday in federal court in San Antonio to 25 years in prison for his involvement in a criminal organization.
According to court documents, Jose Miguel Sandoval-Pineda aka “Primo,” aka “Chavalon,” 22, of Michoacan, Mexico, was the leader, organizer and recruiter for a criminal organization heavily involved in human smuggling, firearms trafficking and narcotics trafficking in the San Antonio area in 2019 and early 2020. Sandoval-Pineda and his organization are also tied to numerous shootings and arsons, including two homicides, mostly in the San Antonio area. Sandoval-Pineda was arrested on Jan. 17, 2020 in West Columbia, Texas and is currently serving a 10-year federal sentence for the illegal possession of a machine gun. On Nov. 4, 2021, Sandoval-Pineda pleaded guilty to four additional counts: conspiracy to transport illegal aliens; conspiracy to commit money laundering; conspiracy to commit arson; and use of fire or explosives to commit a federal felony.
On Wednesday, U.S. District Judge Xavier Rodriguez sentenced Sandoval-Pineda to 10 years for one count of conspiracy to transport illegal aliens; 15 years for one count of conspiracy to commit money laundering; and 15 years for one count of conspiracy to commit arson, which will run concurrent with each other. Judge Rodriguez also sentenced Sandoval-Pineda to a consecutive 10 years in prison for one count of the use of fire or explosives to commit a federal felony. Sandoval-Pineda will serve his 25-year federal prison sentence at the conclusion of his current 10-year sentence.
“This defendant, who was already serving 10 years in federal prison, will now remain locked up for more than two more long decades,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “That is thanks to the dedication of our skilled prosecutors and our law enforcement partners at the local and federal levels. Without them, this criminal organization would likely still be out there terrorizing our communities and putting innocent lives at risk.”
“Yesterday’s sentence is an example of Homeland Security Investigation’s commitment to seeking justice on individuals responsible for violent crimes and wreaking havoc in our neighborhoods as this defendant did,” said Acting Special Agent in Charge Craig Larrabee of the HSI San Antonio Division. “The successful outcome of this case is a direct result of the steadfast efforts of HSI and our law enforcement partners in combating violent crime, human smuggling and firearms trafficking.”
“As this case demonstrates, ATF is uniquely positioned to investigate and bring to justice those that use gun violence and fire to hurt and intimidate others,” said Special Agent in Charge Fred J. Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Houston Field Division. “We will continue to work with our law enforcement partners to investigate and hold accountable those who commit violent crimes in our community.”
Of the 11 defendants in this case, six have been sentenced. On Aug. 26, 2021, co-defendant Jose Victor Calleja-Velasquez aka “Kory,” 32, of Culiacan, Sinaloa, Mexico was sentenced to 240 months for one count of illegal alien in possession of a firearm and one count of possession with intent to distribute methamphetamine. A second co-defendant Jorge Rodriguez, 27, of Austin was sentenced on Nov. 30, 2021, to concurrent sentences of 27 months for one count of conspiracy to harbor illegal aliens and one count of conspiracy to commit money laundering. On Oct. 19, 2022, a third co-defendant Samuel Lee Jones, 33, of San Antonio was sentenced to time already served with three years of supervised release for one count of illegal possession of a machine gun. A fourth co-defendant, Emmanuel Valdovinos aka “Manny,” 22, of San Antonio was sentenced on Dec. 5, 2022 to concurrent sentences of 78 months for one count of conspiracy to commit arson and one count of felon in possession of a firearm. On Dec. 14, 2022, Jose Efrain Ovalle-Alvarado, 24, of San Antonio was sentenced to 33 months in prison for one count of illegal possession of a machine gun.
Four defendants are in federal custody as they await their sentencing hearings: Eduardo Angel Viera aka “Lalo,” 26, of San Antonio; Javier Duenas aka “Puppet,” 22, of San Antonio; Jahannatan Pachecano Andrade, 23, of San Antonio; and Daniel Boanerges Orellana-Cano, 23, of La Ceiba, Atlantida, Honduras. The eleventh defendant, Jose Carlos Martinez, 22, of San Antonio is pending trial.
The ATF, HSI and San Antonio Police Department investigated the case.
Assistant U.S. Attorney Brian Nowinski prosecuted the case.
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Convicted Sex Offender Sentenced to 46 months for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon for illegal firearm possession, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Liles C. Burke sentenced Edward Olin Jones, 66, of Hanceville to 46 months in prison followed by three years of supervised release. Jones pleaded guilty to the charge of being a felon in possession of a firearm in November 2022.
According to the plea agreement, on March 16, 2022, Alabama Probation & Parole officers conducted a home visit at the residence of Jones located in Hanceville, Alabama. Jones was on state felony probation, and as conditions of his probation he had to submit to searches by probation officers and was prohibited from possessing firearms. The probation officers recovered a Smith & Wesson .38 Special revolver, a Röhm .22 caliber revolver, a Winchester 12-gauge shotgun, a Weatherby .300 Weatherby Magnum rifle, a Remington .300 Winchester Magnum rifle, a Remington .22 caliber rifle, and 907 rounds of ammunition from Jones’ home.
Prior to his arrest in this case, Jones had been convicted of Sodomy, First Degree, and Sex Abuse, First Degree, in the Circuit Court of Jefferson County, Alabama.
ATF investigated the case along with the Alabama Probation and Parole Office. Assistant U.S. Attorney Daniel S. McBrayer prosecuted the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Convicted Felon Sentenced to 18 Years in Prison on Drug ChargesRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced an Anniston man and convicted felon for distribution of methamphetamine, announced U.S. Attorney Prim F. Escalona, Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson and Drug Enforcement Administration Special Agent in Charge Brad L. Byerley.
U.S. District Court Judge R. David Proctor sentenced Camerin Neshun Thomas aka “Killer Cam,” 29, to 18 years in prison. Thomas pleaded guilty to two counts of distribution of methamphetamine in November 2022. Court documents showed that Thomas was also previously convicted in Calhoun County Circuit Court of Possession of Controlled Substances with Intent to Distribute.
According to the plea agreement, in June 2022, the 7th Judicial Circuit Major Crimes Unit Investigator and a Bureau of Alcohol, Tobacco, and Firearms Task Force officer coordinated two controlled purchases of methamphetamine from Thomas. On June 1, 2022, Thomas sold 68.45 grams of pure methamphetamine from a residence on McCoy Avenue in Anniston. On June 21, 2022, Thomas sold a total of four ounces of pure methamphetamine from two separate locations in Anniston.
This investigation is an operation of the Organized Crime Drug Enforcement Task Forces (OCDETF) Operation “Lengua Doble.” OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of the Attorney General’s strategy to combat transnational-organized-crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks.
ATF and DEA investigated the case along with the 7th Judicial Circuit Major Crimes Unit. Assistant U.S. Attorney Allison Garnett prosecuted the case.
Concord Man Sentenced to 78 Months for Child Sexual Exploitation CrimeRead the Press Release
CONCORD – Marc Pulsifer, 45, of Concord, was sentenced to 78 months in prison for the federal charge of transportation of child pornography, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, law enforcement officers learned that Google had detected potential child exploitation materials on Google Photos accounts with an IP address that resolved to Concord, New Hampshire, at various times in 2020. Through their investigation, officers determined that Pulsifer had uploaded child sexual abuse images and child erotica images to Google Photos from his apartment in Concord. On June 3, 2021, law enforcement executed a search warrant at the defendant’s apartment where they discovered child sexual abuse images actively displayed on various electronic media, including two large-screen televisions. Based on the forensic review of electronic media seized from the defendant’s residence, investigators confirmed that the defendant possessed thousands of child sexual abuse images and videos, which he organized in designated folders with descriptive names and stored across multiple devices. The defendant maintained multiple backup digital copies of his child sexual abuse images and child erotic collection, and he used cloud storage services to store and stream these images on his televisions and other electronic media.
Pulsifer previously pleaded guilty on October 5, 2022. In addition to the prison sentence, Pulsifer must spend five years on supervised release, pay $9,000 in restitution.
“Child sexual abuse image crimes exploit innocent children and cause immeasurable harm thus warranting significant federal prison time,” said U.S. Attorney Young. “In order to protect children, we work closely with our law enforcement partners to identify and prosecute those who commit crimes involving child sexual abuse images in the Granite State.”
This matter was investigated by the Concord Police Department, with assistance from U.S. Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Cam Le.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Columbus man sentenced to three years in prison, ordered to repay money received through unclaimed funds fraud schemeRead the Press Release
COLUMBUS, Ohio – Marcus C. Beatty, 55, of Columbus, has been sentenced to three years in federal prison and repay $486,408.55 in unclaimed funds he stole from the State of Ohio, who was holding the funds in trust for the rightful owners.
Court documents outline the significant fraud scheme Beatty ran from at least June 2011 through at least March 2018 to steal from the Ohio Department of Commerce Division of Unclaimed Funds. In Ohio, as in many other states, when funds held by a financial institution are inactive for a certain length of time, the funds legally become “unclaimed funds” and are turned over to the state. The Division of Unclaimed Funds returns the money to the rightful owners who claim them.
For nearly eight years, Beatty repeatedly filed fraudulent claims for unclaimed funds through an intricate process of identifying Ohio businesses whose registrations had been cancelled, using fraudulent paperwork to reinstate the businesses with the Ohio Secretary of State, changing the names of these companies to the names of companies for which the Division of Unclaimed Funds held money in trust, then filing then fraudulent claims with the Division to obtain the unclaimed funds.
Beatty fraudulently obtained unclaimed funds held in trust for five Ohio companies. He also filed several false claims with the unclaimed-funds agencies in Alabama, Nebraska, New Jersey, and Pennsylvania.
Beatty pleaded guilty in October 2022 to one count of mail fraud. In 2006, Beatty had been sentenced in federal court to 33 months in prison in a separate fraud scheme.
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; the U.S. Postal Inspection Service; and Sherry Maxfield, Director of the Ohio Department of Commerce announced the sentence imposed February 22, 2023 by U.S. District Judge Michael H. Watson. Assistant United States Attorney Peter Glenn-Applegate is representing the United States in this case.
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Cincinnati man arrested with high-powered firearm while on bond for gun crimes sentenced to 54 months in prisonRead the Press Release
CINCINNATI – A Cincinnati man was sentenced in U.S. District Court to 54 months in prison for illegally possessing a high-powered, high-capacity pistol with a high-capacity magazine while he was on bond after serving two years in state prison for gun crimes.
Hamilton County Sheriff’s deputies arrested Nahya Wimpye, 23, on Christmas Day 2020. He was a passenger in a car pulled over for a brake light violation near Lockland. Officers found a Century Arms, Micro Draco, 7.62x39 millimeter semi-automatic pistol loaded with 18 rounds of 7.62x39 millimeter ammunition in the car.
“The Hamilton County Coroner’s Office Crime Lab found the defendant's DNA on the firearm, which is essentially the pistol equivalent of an AK-47,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “Reducing violent crime effectively sometimes means punishing those who demonstrate that they are repeatedly a threat to community safety.”
Court documents indicate that at the time of the Christmas Day arrest, Wimpye was on post-release control after serving two years in state custody for illegally possessing a firearm. While awaiting a hearing on the violations of his post-release control, he was found yet again with another firearm in February 2021. While on bond, he was arrested in Tennessee on felony charges.
A federal grand jury indicted Wimpye in October 2021 on one count of possession of a firearm by a prohibited person. Wimpye pleaded guilty to the indictment in September 2022.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Daryl S. McCormick, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); Hamilton County Sheriff Charmaine McGuffey and Lockland Police Chief Chris Bundren announced the sentence imposed on February 22, 2023 by U.S. District Court Judge Douglas R. Cole. Assistant United States Attorney Timothy D. Oakley is representing the United States in this case.
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Cherokee, N.C. Man Is Sentenced to 15 Years for Sexual Contact with A MinorRead the Press Release
ASHEVILE, N.C. –David Green Edwards, 32, of Cherokee, N.C. was sentenced to 15 years in prison followed by a lifetime of supervised release for two counts of sexual contact with a minor occurring in 2014 in Indian Country, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Carla Neadeau of the Cherokee Indian Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, in 2019, the child victim disclosed the sexual abuse dating back to 2014, when the victim would have been approximately five years old. Both the child and Edwards are enrolled members of the Eastern Band of Cherokee Indians. According to information filed with the court, the child victim disclosed that, on at least two different instances, Edwards touched inappropriately the victim’s private area with his hand and genitalia. Information presented in court showed that Edwards was interviewed multiple times by law enforcement and denied sexually abusing the child, however he did admit that he wished the victim was closer to his age.
Edwards is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. When released he will be required to register as a sex offender.
In making today’s announcement U.S. Attorney King thanked the Federal Bureau of Investigation and the Cherokee Indian Police Department, for their investigation of the case and the North Carolina State Bureau of Investigation for their assistance.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Charleston Man and Woman Plead Guilty to Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Kenneth Desaun Hayway, 38, and Hannah Elizabeth Barbee, 30, both of Charleston, pleaded guilty today to conspiracy to distribute 40 grams or more of a mixture containing a detectable amount of fentanyl.
According to court documents and statements made in court, Hayway sold fentanyl to a confidential informant asking for heroin on August 15, 2022, and August 19, 2022, in Charleston. Hayway further admitted to organizing the sale of fentanyl with Barbee and co-defendant Khalif Marquee Coleman to a confidential informant seeking heroin on August 19, 2022, at Barbee’s Chesterfield Avenue residence in Charleston.
Barbee admitted to selling fentanyl to a confidential informant seeking heroin on six occasions between August 5, 2022, and September 27, 2022, at her Chesterfield Avenue residence. On September 28, 2022, law enforcement officers executed a search warrant at Barbee’s residence and found mixtures containing fentanyl totaling 55.97 grams, scales, drug packaging materials, and $5,926. Some of the cash recovered during the search was prerecorded buy money from the sales to the confidential informants.
Hayway and Barbee are scheduled to be sentenced on June 15, 2023, and face a mandatory minimum of five years and up to 40 years in prison, four years of supervised release, and a $5 million fine.
Coleman, 35, of Charleston, pleaded guilty to conspiracy to distribute 40 grams or more of a mixture containing a detectable amount of fentanyl on February 22, 2022. Coleman is scheduled to be sentenced on June 8, 2023, and faces a mandatory minimum of five years and up to 40 years in prison, four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Metropolitan Drug Enforcement Network Team (MDENT), and the assistance provided by the Drug Enforcement Administration (DEA) Mid-Atlantic Laboratory.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Julie M. White is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-198.
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Castleton Man Sentenced to over 3 Years for String of Three Bank RobberiesRead the Press Release
INDIANAPOLIS- Richard Gammon, 26, of Indianapolis, Indiana, was sentenced to 46 months in federal prison after pleading guilty to committing three bank robberies.
According to court documents, on December 17, 2020, Gammon entered a Fifth Third Bank on East 82nd Street in Indianapolis and approached the teller. Gammon showed the teller a cellphone with text on the screen that displayed words to the effect of “give me all the 100s and 50s in your drawer. No sudden moves. No alarms and no one will get hurt.” The teller complied and gave Gammon approximately $1,000 from the drawer.
On January 19, 2021, Gammon robbed the Regions Bank on 82nd Street in Indianapolis. Once again, Gammon showed the teller a cellphone with text on the screen that displayed words to the effect of “Give me all the money in the top drawer. Don’t trip any alarms or signal or message anyone.” The teller complied and gave Gammon $1,360 from the drawer.
Indianapolis Metropolitan Police Department investigators determined the two robberies were likely committed by the same offender. Police later received two Crime-Stoppers tips identifying Gammon as the robbery suspect and began an investigation, which was joined by the FBI.
On the morning of April 11, 2021, Gammon entered the PNC Bank located on 96th street in Fishers, Indiana. Gammon asked the teller about opening an account, and then showed them his phone which displayed a message to the effect of “Give me 5000 dollars. All big bills. No alarm. No button.” The teller complied and gave Gammon $760.
Investigators were able to locate Gammon soon after the PNC Bank robbery, and followed him to his Castleton apartment building, where he was taken into custody. Investigators executed a search warrant at Gammons’ apartment and recovered some of the bills he stole that morning.
“Bank robbery is a very serious crime that carries very serious consequences,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The sentence imposed today demonstrates the commitment of federal and local law enforcement agencies to protect the public from repeat criminals like this defendant. I am grateful to the FBI, IMPD, and Fishers Police Department for their persistence in identifying this serial robber and holding him accountable.”
“This sentence is the culmination of the investigative collaboration between agencies to ensure that this violent individual was held fully accountable for his actions,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “It should send a clear message that robbing financial institutions in the state of Indiana will have one final outcome - a long sentence in federal prison.”
IMPD and FBI investigated this case with valuable assistance provided by the Fishers Police Department. The sentence was imposed by Chief U.S. District Court Judge, Tanya Walton Pratt. Judge Pratt also ordered that Gammon be supervised by the U.S. Probation Office for 3 years following his release from federal prison. Gammon must also pay restitution of $1,000 to Fifth Third Bank and $1,360 to Regions Bank.
U.S. Attorney Myers thanked Assistant United States Attorneys Peter A. Blackett, who prosecuted this case.
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Busby man admits strangling womanRead the Press Release
BILLINGS — A Busby man today admitted to strangling a woman while both were in a vehicle on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said.
Tysawn Dantae Pine, 24, pleaded guilty to an indictment charging him with strangulation. Pine faces a maximum of 10 years in prison, a $250,000 fine and three years 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. Pine was detained pending further proceedings.
The government alleged in court documents that Pine and the victim, identified as Jane Doe, had been in a dating relationship. On April 9, 2022, Jane Doe was asleep when she heard knocking. Pine had left the evening before and had been drinking and using methamphetamine. Pine forced himself into the house and then told Jane Doe they were going to his grandmother’s house. They got into a car and Jane Doe started to drive. Pine refused to get out of the car when they arrived at his grandmother’s house. The two argued inside the vehicle, and Pine began assaulting and strangling Jane Doe. Later that day, Jane Doe was examined for injuries at the emergency room.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI and Bureau of Indian Affairs.
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Bulk Fentanyl Trafficker Is Convicted of Drug and Gun ChargesRead the Press Release
STATESVILLE, N.C. – A federal jury in Statesville returned a guilty verdict today against Jermaine Douglas Grandy for trafficking fentanyl and illegal possession of firearms, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Grandy, 41, of Lenoir, N.C., was convicted of conspiracy to distribute and to possess with intent to distribute fentanyl, possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking crime, and possession of a firearm by a convicted felon.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Alan C. Jones of the Caldwell County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence presented at trial and witness testimony, between December 2020 and February 2021, Grandy conspired with others to distribute and to possess with intent to distribute fentanyl in Caldwell County and surrounding areas. Trial evidence established that Grandy obtained the drugs from a supply source in Arizona, and frequently made trips there to purchase fentanyl pills in bulk quantities. The evidence further established that on February 14, 2021, as Grandy was returning to North Carolina from a trip to Arizona, law enforcement conducted a traffic stop of Grandy’s vehicle in Granite Falls, N.C. Upon searching the vehicle, law enforcement located inside the vehicle three loaded 9mm pistols, and approximately 34,221 pills wrapped in fourteen bundles concealed in the air vent under the hood of the car. Later the same day, law enforcement executed a search warrant at a residence associated with Grandy, from which they seized a money counter, two digital scales, and other items consistent with the packaging and distribution of narcotics. Law enforcement also seized 29 illegal firearms, including semi-automatic rifles and handguns, ammunition, and approximately 79 magazines.
Grandy is currently in federal custody. The drug conspiracy and the possession with intent to distribute charges each carry a minimum penalty of 10 years and a maximum penalty of life in prison, the possession of a firearm in furtherance of a drug trafficking crime carries a maximum penalty of five years to be served consecutively with any other term imposed, and the possession of a firearm by a felon charge carries a maximum sentence of 10 years in prison. A sentencing date for Grandy has not been set.
In making today’s announcement, U.S. Attorney King commended the ATF, the SBI, and the Caldwell County Sheriff’s Office for their investigation of the case and thanked the Catawba County Sheriff’s Office, the Hickory Police Department, and the Drug Enforcement Administration for their assistance.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville is prosecuting the case.
Brunswick County Man Sentenced to 60 Years in Prison for Child Pornography ChargesRead the Press Release
WILMINGTON, N.C. – A Brunswick County man was sentenced today to 720 months in prison, followed by five years of supervised release for possessing and trading child pornography. The prison sentence imposed is the statutory maximum allowed for the crimes. Craig Connors Schenck, 39, of Saint James, North Carolina pled guilty on March 8, 2022 to Receipt of Child Pornography, Distribution of Child Pornography and Possession of Child Pornography. Schenk was also ordered to pay $105,000 in restitution and was ordered to pay a special assessment of $15,000.
According to court documents and other information presented in court, Craig Connors Schenck, 39 was investigated by the North Carolina State Bureau of Investigation (SBI) after Google notified the National Center for Missing and Exploited Children a user had uploaded images of child pornography. The email address used by the individual contained Schenck’s first initial and last name. The IP address associated with the uploaded illegal material was being leased to Schenck’s parents with whom Schenck lived. The cybertip was classified as a priority because it was believed Schenck may have been employed in a capacity which gave him access to children.
The SBI executed a search warrant at Schenck’s residence the same day the cybertip was received. Schenck admitted to law enforcement that he was given a thumb drive in 2007 that had child pornography on it. He admitted to being a part of online platforms where child pornography was traded. Schenck also admitted that for some time he had been employed with various companies who cared for cognitively impaired children. Schenck’s digital devices were seized and analyzed by the SBI.
During the forensic analysis of Schenck’s digital devices nearly 1,500 images and over 600 videos that depicted child sexual abuse material were discovered. In addition to images, agents located a number of chats in various social media platforms, wherein Scheck discussed the sexual abuse of children, traded child pornography images and described graphic sexual fantasies. Agents also found child pornography images of a child that, in chats with other individuals online, Schenck admitted to producing. The child was identified as a child with whom Schenck had worked in the course of his employment.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing was concluded. Chief U.S. District Judge Richard E. Myers II presided over the sentencing. North Carolina State Bureau of Investigation investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-00012-M.
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Bronx Man Guilty of Fentanyl and Cocaine Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that a federal jury in Hartford has found LEONARDO HECTOR ROSADO, 52, of the Bronx, New York, guilty of fentanyl and cocaine distribution offenses.
The trial before U.S. District Judge Alvin W. Thompson began on February17 and the jury returned verdicts of guilty on all counts of a three-count superseding indictment this morning.
According to court documents and statements made in court, in April 2021, members of the FBI’s Bridgeport Safe Streets Task Force and Bridgeport Police Department coordinated the acquisition of a kilogram of heroin from Rosado. On April 13, 2021, Rosado drove from the Bronx to a meeting location in Bridgeport where he provided a cooperating witness with nearly a kilogram of a substance containing fentanyl, heroin and cocaine, and another small bag containing more than four grams of fentanyl. Investigators arranged another narcotics transaction and, on May 16, 2021, arrested Rosado after he drove to a location in Bridgeport with nearly three kilograms of a substance containing fentanyl, heroin and cocaine, and an additional 983 grams of cocaine.
The jury found Rosado guilty of two counts of possession with intent to distribute and distribution of 400 grams or more of fentanyl, and one count of possession with intent to distribute and distribution of 500 grams or more of cocaine. Judge Thompson scheduled sentencing for May 18, at which time Rosado faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Rosado has been detained since his arrest.
This matter has been investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Daniel E. Cummings.
Beckley Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Kishaun Andre Jones, 23, of Beckley, pleaded guilty today to distribution of methamphetamine.
According to court documents and statements made in court, on December 20, 2021, Jones sold a substance containing methamphetamine to a confidential informant near South Kanawha Street in Beckley. Jones admitted to the transaction and further admitted to selling methamphetamine to the confidential informant on two other occasions in Raleigh County.
On February 23, 2022, law enforcement officers executed a search warrant at Jones’ Beckley residence and found quantities of methamphetamine, fentanyl, and heroin as well as three firearms and $6,445. Jones admitted that intended to distribute the controlled substances.
Jones is scheduled to be sentenced on June 9, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), and the Beckley/Raleigh County Drug and Violent Crime Unit.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-64.
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Barnstead Woman Pleads Guilty to Stealing over $130,000 from Barnstead and Hampton School DistrictsRead the Press Release
CONCORD – Amy Burley, 47, of Barnstead, pleaded guilty in federal court today to embezzling more than $130,000 from both the Barnstead and Hampton School Districts, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, Burley was employed as a bookkeeper for Barnstead School District and then Hampton School District. In her role, Burley processed payroll and handled the payment of invoices.
Burley used her access at Barnstead School District to alter her payroll information, make student loan payments and payments to personal creditors, and pay for an Amazon account charged to Barnstead but controlled by Burley, totaling $110,295.26. Following her termination from Barnstead, Burley was hired as a bookkeeper at Hampton School District, where she used her position to use district funds to pay student loans and credit cards belonging to her or her family members, totaling $20,966.52.
Burley is scheduled to be sentenced on June 1, 2023.
The case was investigated by the Federal Bureau of Investigation, the Department of Education Office of the Inspector General, and the Barnstead Police Department. The case is being prosecuted by Assistant U.S. Attorney John J. Kennedy.
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Alleged ‘SIM Swapper’ Charged with Hacking into Instagram Influencers’ Accounts to Get Money and Sexually Explicit Video ChatsRead the Press Release
LOS ANGELES – A Downtown Los Angeles man was charged today in a six-count federal grand jury indictment for allegedly defrauding female social media influencers, including by engaging in “SIM swapping” to hijack their Instagram accounts and obtain money from them and engage in sexually explicit video chats with him.
Amir Hossein Golshan, 24, is charged with two counts of wire fraud, one count of unauthorized access to a protected computer to obtain information, one count of accessing a computer to defraud and obtain value, one count of aggravated identity theft, and one count of threatening to damage a protected computer.
Golshan has been in federal custody since his arrest on a criminal complaint in this case on February 2. His arraignment is scheduled for Friday morning in United States District Court.
A Subscriber Identity Module (SIM) is a small, portable memory chip card that stores a cellphone user’s information and is used to authenticate cellphone subscribers.
“SIM swapping” is the process of fraudulently inducing a carrier to reassign a cellphone number from the legitimate subscriber or user’s SIM card to a SIM card controlled by another without the legitimate subscriber or user’s authorization.
According to the indictment and other court documents, from April 2019 to February 2023, Golshan schemed to defraud female social media influencers, models, and their friends on social media. Golshan allegedly accomplished his scheme by targeting social media influencers and causing the victims’ cell phone numbers to be SIM swapped. He allegedly did this by deceiving the victims’ phone carriers into transporting the victims’ cellphone number to a Golshan-controlled cellphone. Golshan then reset the password and codes for the victims’ social media accounts and caused them to be sent to a device he controlled, the indictment alleges.
Golshan then allegedly logged into the victims’ social media accounts, impersonated them to their online friends, and requested that the victims’ online friends send him money. Other times, Golshan allegedly extorted the victims for money and sexually explicit chats to return the victims’ social media accounts.
For example, in December 2021, a Los Angeles-based model and social media influencer identified in court documents as “Victim 1” received a direct message on Instagram from the account owned by one of her friends, stating, “Can you do me a favor? What’s your number?” Victim 1 provided her phone number to the person whom she believed was her friend.
Four hours later, Victim 1 noticed that her phone was no longer connecting to her cellphone network. She then received an email from her cellphone carrier stating that her account had been changed from her personal iPhone to a different iPhone that she did not recognize.
It took Victim 1 approximately two hours to regain control of her cellphone and she was unable to log into her Instagram account for one day because her password had been changed. During that time, Golshan allegedly hacked into Victim 1’s Instagram account, posed as Victim 1 and requested cellphone numbers and money from Victim’s friends, collecting approximately $15,000 in illicit gains in the process.
In another incident, Golshan allegedly SIM swapped another victim – identified in court papers as “Victim 3.” He allegedly took control of her Instagram account, changed its password, and demanded $5,000 from her. Golshan allegedly later told the victim that he would return her Instagram account to her if she initiated a video call and stripped for him.
Other times, Golshan allegedly engaged in other fraudulent schemes on social media. For example, Golshan lied to other Instagram users claiming that he could provide verified user badges on Instagram for a fee, the indictment states. Golshan allegedly then charged the victims hundreds of dollars each for verified badges, knowing that he could not provide the verified badges he purported to sell.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, Golshan would face a statutory maximum sentence of 20 years in federal prison for each wire fraud count, up to five years in federal prison for each computer hacking-related count, and a mandatory two-year prison sentence for the aggravated identity theft count.
The FBI is investigating this matter.
Assistant United States Attorney Andrew M. Roach of the Cyber and Intellectual Property Crimes Section is prosecuting this case.
Acting United States Attorney Rivetti Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
PITTSBURGH - Acting United States Attorney Troy Rivetti announced that the U.S. Attorney’s Office for the Western District of Pennsylvania has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released yesterday. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will typically not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
Voluntary Self Disclosures should be directed to the United States Attorney’s Office for the Western District of Pennsylvania Acting Criminal Chief Tonya Goodman at 412-644-3500.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
35-Year-Old Man Sentenced to 24 Months for Attempted Firearms Trafficking into MexicoRead the Press Release
TUCSON, Ariz. – On Wednesday, Luis Carlos Martinez-Chacon, 35, of Chihuahua, Mexico, was sentenced by United States District Judge John C. Hinderaker to 24 months in prison, followed by 12 months of supervised release. Martinez-Chacon pleaded guilty to one count of Smuggling Goods from the United States.
On June 29, 2022, Martinez-Chacon attempted to exit the United States and enter the Republic of Mexico at the DeConcini Port of Entry in Nogales, Arizona. During a search of his vehicle, Customs and Border Protection officers found a 9mm Berretta pistol, a 9mm Glock 19 pistol, an FN57 rifle with a filed off serial number, a .45 caliber Colt M 1911, a Smith and Wesson 629 Classic .44 Magnum, a Magpul magazine (17 round capacity), two Berretta magazines (15 round capacity each), two FN57 magazines (20 round capacity each), two Colt 1911 magazines (seven round capacity each), 960 rounds of .223 Wolf ammunition, 880 rounds of .223 TUL ammunition, and six rounds of .45 caliber ammunition. The items were hidden inside the dashboard and center console of the vehicle. Martinez-Chacon admitted he expected to be paid in exchange for delivering the firearms, magazines, and ammunition to an individual in Mexico.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Sarah B. Houston, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01662-TUC-JCH (DTF)
RELEASE NUMBER: 2023-024_Martinez-Chacon# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
26-Year-Old Sentenced to 24 Months for Attempted Firearms Trafficking to MexicoRead the Press Release
TUCSON, Ariz. – Adan Gomez-Lopez, 26, of Nogales, Mexico, was sentenced on Wednesday by United States District Judge John C. Hinderaker to 24 months in prison, followed by 12 months of supervised release. Gomez-Lopez pleaded guilty to one count of Smuggling Goods from the United States.
On July 1, 2022, Gomez-Lopez attempted to exit the United States and enter the Republic of Mexico at the DeConcini Port of Entry in Nogales, Arizona. During a search of the vehicle, Customs and Border Protection officers found 510 rounds of .223 caliber ammunition, 103 rounds of .556 caliber ammunition, 600 rounds of 6.5mm ammunition, 350 rounds of 9mm pistol ammunition, 100 rounds of .30 caliber ammunition, 20 rounds of .308 caliber ammunition, and 50 rounds of 12-gauge shotgun ammunition. The ammunition was concealed within the vehicle’s quarter panels, speaker box, and non-factory compartments. Gomez-Lopez admitted that he expected payment in exchange for delivering the ammunition to an individual in Mexico.
Homeland Security Investigations conducted the investigation in this case. Assistant United States Attorney Brandon M. Bolling, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-22-01544-TUC-JCH (BGM)
RELEASE NUMBER: 2023-025_Gomez-Lopez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
22 February 2023
Woman Sentenced to Prison for Straw Purchase of Firearm Used in Fatal Nicholas County ShootingRead the Press Release
CHARLESTON, W.Va. – Melanie Clodfelter, 41, of Summersville, was sentenced today to two years in prison, to be followed by three years of supervised release, for making a false statement in acquisition of a firearm. Clodfelter admitted to purchasing a semi-automatic firearm used to kill one Nicholas County deputy sheriff and seriously injure another in June 2022.
According to court documents and statements made in court, on November 17, 2021, Clodfelter bought a Radical Firearms, model RF-15, multi-caliber rifle in Nicholas County. Clodfelter admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Record Form 4473, by falsely certifying that she was the buyer of the firearm when she knew she was purchasing it for Richie Holcomb.
Clodfelter gave Holcomb the firearm on the day of the purchase. Clodfelter admitted that Holcomb gave her the money to buy the firearm. Clodfelter further admitted that she knew Holcomb was prohibited from possessing a firearm because he had a prior felony conviction.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Holcomb was prohibited from possessing a firearm because of a felony conviction for unlawful wounding in Webster County Circuit Court on July 30, 2014.
Clodfelter was prohibited from possessing a firearm because she was an unlawful user of methamphetamine. Prior to purchasing the firearm for Holcomb, Clodfelter knew that Holcomb was also an unlawful user of methamphetamine.
On June 3, 2022, law enforcement officers responded to a domestic disturbance in the Birch River area and encountered Holcomb and another individual. During the encounter, Holcomb fatally shot Nicholas County Sheriff’s Deputy Thomas Edward Baker III with the semi-automatic rifle purchased and provided by Clodfelter. Corporal Joshua Ellison was wounded in the exchange of gunfire. Holcomb was fatally shot.
Baker’s widow, Jamie D. Baker, addressed the court and described the impact of Clodfelter’s act on her life and the lives of his children, their family and the Nicholas County community. The court stated that Clodfelter’s “reckless act” led to the “loss of the life of a man of valor, courage and dedication.”
“It may have taken only a few seconds for Clodfelter to answer falsely on that ATF form, but the tragic consequences will last a lifetime,” said United States Attorney Will Thompson. “This case is why the statute was enacted. Some people may think that the straw purchase of a firearm is not a big deal, but when you have a dead deputy, a widow, children who will grow up without their father, and another wounded deputy, it’s a pretty significant crime.”
Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which assisted the Nicholas County Sheriff's Office and the West Virginia State Police in response to the shooting of the two deputies.
“The tragic death of Nicholas County Sheriff’s Deputy Thomas Edward Baker III, and the injury of another deputy, is another terrible example of what happens when guns are supplied to those who are prohibited from possessing them,” said Acting ATF Special Agent in Charge Robert Maynard of the Louisville Division. “ATF will continue to focus on those who drive violent crime, which includes those who commit violence using firearms and those that help them obtain firearms illegally. This case should serve as a strong warning to those involved in straw purchasing, there will be consequences to your actions.”
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Steve Loew, Negar M. Kordestani and Alex Hamner prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-135.
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United States Attorney's Office Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
NASHVILLE – United States Attorney Henry C. Leventis announced that the U.S. Attorney’s Office for the Middle District of Tennessee has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
“This policy seeks to standardize how VSDs are defined and credited by USAOs nationwide, to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations,” said U. S. Attorney Leventis. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from the Attorney General’s Advisory Committee’s White Collar Fraud Subcommittee.
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United States Attorney Trina A. Higgins Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
SALT LAKE CITY, UT – U.S. Attorney Trina A. Higgins announced that the U.S. Attorney’s Office for the District of Utah has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
United States Attorney Stephanie M. Hinds Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
United States Attorney Stephanie M. Hinds announced that the U.S. Attorney’s Office for the Northern District of California has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group on which U.S. Attorney Hinds sits. In addition to U.S. Attorney Hinds, the Working Group is comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
United States Attorney Erek L. Barron Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
Baltimore, Maryland - Erek L. Barron, United States Attorney for the District of Maryland announced today that the Maryland U.S. Attorney’s Office has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy, released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md.
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United States Attorney Clare E. Connors Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
HONOLULU – U.S. Attorney Clare E. Connors announced today that the United States Attorney’s Office (USAO) for the District of Hawaii has implemented the new national USAO Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a USAO, and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General Lisa O. Monaco’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), in the absence of any aggravating factor will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorneys Peace and Connors, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney’s Office Announces 20th Annual Project Safe Neighborhoods Logo ContestRead the Press Release
COLUMBIA, SOUTH CAROLINA — The United States Attorney's Office is sponsoring the 20th Annual Project Safe Neighborhoods (“PSN”) Logo Contest. The statewide contest welcomes students to illustrate how we can help prevent gun violence in our schools by designing a logo for use on upcoming PSN publications. The theme is “Preventing Gun Violence in Our Schools – Know the Signs.”
The contest is open to all South Carolina grade school students, including homeschooled students, and entries will be categorized into four grade divisions: K-2nd grade, 3rd-5th grade, 6th-8th grade, and 9th-12th grade. A winner will be selected from each of the four divisions, and each division winner will receive $50. An overall winning logo will be chosen from the four division winners and will receive an additional $50 prize for a total of $100.
The winning entries will be selected by “The Insiders,” a select group of students from the South Carolina Department of Juvenile Justice, who travel throughout the state encouraging children and promoting community awareness of the consequences of juvenile crime. In addition to the South Carolina Department of Juvenile Justice, the United States Attorney’s Office is proud to partner with the South Carolina Sheriffs’ Association, the South Carolina Police Chiefs’ Association, and the South Carolina Law Enforcement Officers’ Association for this year’s contest.
Entries should be consistent with the theme “Preventing Gun Violence in Our Schools – Know the Signs.” The deadline for submissions is March 31, 2023. If your student is interested in participating, contact your local school as contest information has been sent to all South Carolina schools. Applications and contest rules may also be found on our website at https://www.justice.gov/usao-sc/programs/ceasefire/project-sentry/contest-winners/contest-rules.
The centerpiece of the Department of Justice’s violent crime reduction efforts, PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. The contest is an important prevention initiative that has proven to be an effective way to engage our students in meaningful conversation about preventing gun crimes among our young people and ensuring a safe learning atmosphere for our schoolchildren.
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U.S. Attorney Sellinger Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
NEWARK, N.J. – U.S. Attorney Philip R. Sellinger announced that the U.S. Attorney’s Office for the District of New Jersey has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today.
The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
“The intent of this new policy is to incentivize corporate responsibility and a culture of compliance,” U.S. Attorney Sellinger said. “We hope that companies will come forward when misconduct occurs, and cooperate with the government so that individual wrongdoers can be held accountable. When they do, they will have a far better and more predictable outcome.”
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s Sept. 15, 2022, memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by – in the absence of any aggravating factor – fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50 percent below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50 percent and up to a 75 percent reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of U.S. Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of U.S. Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, U.S. Attorney Sellinger, and U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, and U.S. Attorney for the Western District of Virginia Christopher Kavanaugh. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney Sayler A. Fleming Announces New Voluntary Self-Disclosure PolicyRead the Press Release
United States Attorney Sayler A. Fleming announced that the U.S. Attorney’s Office for the Eastern District of Missouri has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by—in the absence of any aggravating factor—fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50% below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50% and up to a 75% reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
U.S. Attorney Jesse Laslovich announces $1.3 million grant from Justice Department for investment in State Crisis InterventionRead the Press Release
BILLINGS — U.S. Attorney Jesse Laslovich announced today a $1,387,530 award to the Montana Board of Crime Control as part of the Justice Department’s Byrne State Crisis Intervention Program. The award to Montana was among 49 awards to states, territories and the District of Columbia.
The investment of more than $231 million nationwide will fund state crisis intervention court proceedings, including but not limited to, extreme risk protection order (ERPO) programs that work to keep guns out of the hands of those who pose a threat to themselves or others. This investment in community safety is authorized by the Bipartisan Safer Communities Act of 2022, historic legislation to address and reduce gun violence. The awards are administered by the Department’s Office of Justice Programs’ Bureau of Justice Assistance.
“This grant to the Montana Board of Crime Control is an important part of the United States Justice Department’s effort to protect Montana communities from violent crime and gun violence. We are determined to ensure that our fellow Montanans are safe and secure. Importantly, these resources will give our communities tools to help prevent gun violence and support persons who are at risk of committing or becoming a victim of gun crimes,” U.S. Attorney Laslovich said.
In the award to the Montana Board of Crime Control, a Crisis Intervention Advisory Board (CIAB) will be formed from members of and be governed by the already existing Montana Board of Crime Control. The CIAB will discuss, inform and direct the state’s Byrne State Crisis Intervention Program strategies and funding priorities for the initial four-year grant period, from fiscal year 2023 to fiscal year 2026. Because Montana does not have Extreme Risk Protection Order laws, it is not anticipated the CIAB will pursue ERPO programs. The CIAB will consider court-based programs, such as drug, mental health and veterans’ treatment courts, including those that accept clients with firearm violations; behavioral health programs for persons at risk to themselves or others; and funding for law enforcement agencies to safely secure, store, track and return relinquished guns.
Signed into law by President Biden in June 2022, the Bipartisan Safer Communities Act is the most significant piece of federal gun safety legislation in almost three decades and comes as a response to recent mass shootings and to the far more common, but no less tragic, incidents of community gun violence. Including the Byrne State Crisis Intervention Program, the law allocates a total of $1.4 billion to OJP over five years to develop, implement, and sustain meaningful investments in safer communities.
“These awards will help meet two monumental public safety challenges — the alarming proliferation of gun violence in our country and the clear need for front-end interventions to slow the cycle of violence and victimization in our most underserved communities,” said BJA Director Karhlton F. Moore. “The Bureau of Justice Assistance is proud to make these resources available to states as a critical part of its mission to reduce and prevent crime and to promote a fair and effective criminal justice system.”
For a full list of awards, please visit: https://data.ojp.usdoj.gov/stories/s/O-BJA-2023-171458/b5xz-as5z/. These awards are the latest effort from the Department of Justice’s Office of Justice Programs to implement this historic legislation.
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U.S. Attorney Avery Announces Implementation of New Voluntary Self-Disclosure PolicyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office for the District of Connecticut has implemented the new United States Attorney’s Offices’ Voluntary Self-Disclosure Policy released earlier today. The policy, which is effective immediately, details the circumstances under which a company will be considered to have made a voluntary self-disclosure (VSD) of misconduct to a United States Attorney’s Office (USAO), and provides transparency and predictability to companies and the defense bar concerning the concrete benefits and potential outcomes in cases where companies voluntarily self-disclose misconduct, fully cooperate and timely and appropriately remediate.
The goal of the policy is to standardize how VSDs are defined and credited by USAOs nationwide, and to incentivize companies to maintain effective compliance programs capable of identifying misconduct, to expeditiously and voluntarily disclose and remediate misconduct, and to cooperate fully with the government in corporate criminal investigations. The policy was developed pursuant to the Deputy Attorney General’s September 15, 2022 memorandum, “Further Revisions to Corporate Criminal Enforcement Policies Following Discussions with Corporate Crime Advisory Group” (Monaco Memo), which directed each Department of Justice (DOJ) component that prosecutes corporate crime to review its policies on corporate voluntary self-disclosure and, if there was no formal written policy to incentivize self-disclosure, draft and publicly share such a policy.
Under the new VSD policy, a company is considered to have made a VSD if it becomes aware of misconduct by employees or agents before that misconduct is publicly reported or otherwise known to the DOJ, and discloses all relevant facts known to the company about the misconduct to a USAO in a timely fashion prior to an imminent threat of disclosure or government investigation. A company that voluntarily self-discloses as defined in the policy and fully meets the other requirements of the policy, by – in the absence of any aggravating factor – fully cooperating and timely and appropriately remediating the criminal conduct (including agreeing to pay all disgorgement, forfeiture, and restitution resulting from the misconduct), will receive significant benefits, including that the USAO will not seek a guilty plea; may choose not to impose any criminal penalty, and in any event will not impose a criminal penalty that is greater than 50 percent below the low end of the United States Sentencing Guidelines (USSG) fine range; and will not seek the imposition of an independent compliance monitor if the company demonstrates that it has implemented and tested an effective compliance program.
The policy identifies three aggravating factors that may warrant a USAO seeking a guilty plea even if the other requirements of the VSD policy are met: (1) if the misconduct poses a grave threat to national security, public health, or the environment; (2) if the misconduct is deeply pervasive throughout the company; or (3) if the misconduct involved current executive management of the company. The presence of an aggravating factor does not necessarily mean that a guilty plea will be required; instead, the USAO will assess the relevant facts and circumstances to determine the appropriate resolution. If a guilty plea is ultimately required, the company will still receive the other benefits under the VSD policy, including that the USAO will recommend a criminal penalty of at least a 50 percent and up to a 75 percent reduction off the low end of the USSG fine range, and that the USAO will not require the appointment of a monitor if the company has implemented and tested an effective compliance program.
In cases where a company is being jointly prosecuted by a USAO and another DOJ component, or where the misconduct reported by the company falls within the scope of conduct covered by VSD policies administered by other DOJ components, the USAO will coordinate with, or, if necessary, obtain approval from, the DOJ component responsible for the VSD policy specific to the reported misconduct when considering a potential resolution. Consistent with relevant provisions of the Justice Manual and as allowable under alternate VSD policies, the USAO may choose to apply any provision of an alternate VSD policy in addition to, or in place of, any provision of its policy.
“Corporate crime can negatively impact our health, safety and financial security,” said U.S. Attorney Avery. “This Voluntary Self-Disclosure Policy not only details the benefits a company will receive for making a voluntary disclosure of misconduct and cooperating during a resulting investigation, but it also establishes a standard across U.S. Attorney’s Office nationwide for evaluating and crediting the self-disclosure. We encourage all companies who uncover wrongdoing within to come forward, save valuable law enforcement investigative resources, and receive the benefit of being a good corporate citizen.”
The Attorney General’s Advisory Committee (AGAC), under the leadership of United States Attorney for the Southern District of New York Damian Williams, requested that the White Collar Fraud Subcommittee of the AGAC, under the leadership of United States Attorney for the Eastern District of New York Breon Peace, develop policies in response to the Deputy AG’s memo. The policy announced today was prepared by a Corporate Criminal Enforcement Policy Working Group comprised of U.S. Attorneys from geographically diverse districts, including U.S. Attorney Peace, as well as U.S. Attorney for the Eastern District of Virginia Jessica Aber, U.S. Attorney for the District of Connecticut Vanessa Roberts Avery, U.S. Attorney for the District of Hawaii Clare Connors, U.S. Attorney for the Eastern District of North Carolina Michael F. Easley, Jr., U.S. Attorney for the Northern District of California Stephanie Hinds, U.S. Attorney for the Western District of Virginia Christopher Kavanaugh, and U.S. Attorney for the District of New Jersey Philip Sellinger. Assistant U.S. Attorney Amanda Riedel, White Collar Crimes Coordinator for the Executive Office for U.S. Attorneys, also participated in the development of the policy.
Two Washington men sentenced to prison for trafficking heroin, methamphetamine, fentanyl pills in Missoula areaRead the Press Release
MISSOULA — Two Washington men who admitted to drug trafficking charges after Montana law enforcement found heroin, methamphetamine, fentanyl pills and a firearm in their vehicle during a traffic stop were sentenced today to prison, U.S. Attorney Jesse Laslovich said.
Alex Stephen Schmidt, 50, of Colville, Washington, was sentenced to six and one half years in prison, to be followed by five years of supervised release. Schmidt pleaded guilty in September 2022 to conspiracy to possess with intent to distribute controlled substances.
Co-defendant Richmond James McKee, 52, of Spokane, Washington, was sentenced to five years in prison, to be followed by five years of supervised release. McKee pleaded guilty in October 2022 to conspiracy to possess with intent to distribute controlled substances.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in October 2021, law enforcement conducted a traffic stop of a vehicle McKee was driving on Interstate 90 in Montana. The vehicle belonged to Schmidt. In a later search of the vehicle, officers found heroin, methamphetamine, fentanyl pills, a firearm and drug paraphernalia. The investigation determined that a confidential informant assisted Schmidt with selling drugs and that Schmidt was the individual who normally obtained the drugs.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, the Montana Highway Patrol and Missoula County Sheriff’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Two Nigerian citizens indicted for attempting to defraud the United States of over $25 millionRead the Press Release
Seattle – Two Nigerian citizens who currently reside in Toronto, Canada, have been indicted by a federal grand jury for their scheme to steal COVID-19 disaster benefits and U.S. tax refunds, announced U.S. Attorney Nick Brown. Sakiru Olanrewaju Ambali, 45, was arrested yesterday in Frankfurt, Germany, as he traveled back to Canada from Nigeria. Fatiu Ismaila Lawal, 45, was arrested in Canada. Each defendant remains in Germany or Canada respectively pending extradition to the U.S.
“These men are accused of using the stolen identities of thousands of Americans to submit over 1,700 claims for pandemic unemployment benefits to over 25 different states, including Washington State,” said U.S. Attorney Nick Brown. “My Office is committed to bringing to justice those accused of exploiting a time of crisis to illegally enrich themselves, whether they are in the United States or abroad.”
“These arrests demonstrate the Department’s commitment to bring together our law enforcement partners and pursue these alleged fraudsters around the world,” said Department of Justice Acting Director of COVID-19 Fraud Enforcement Michael C. Galdo. “I applaud the hard work of the U.S. Attorney’s Office for the Western District of Washington, thank our domestic and international partners for their continued assistance, and look forward to seeing additional results from the data analysis identifying suspected pandemic relief fraud.”
According to the indictment, Lawal and Ambali used the stolen personal information of thousands of U.S. taxpayers and residents to file fraudulent claims for COVID-19 pandemic assistance and false tax returns seeking refunds. In total, the claims sought approximately $25 million, but the conspirators obtained approximately $2.4 million, primarily from pandemic unemployment benefits.
The co-conspirators allegedly submitted claims for pandemic unemployment benefits to over 25 states including New York, Maryland, Michigan, Nevada, California, and Washington. Using 13 Google accounts they filed some 900 claims. The co-conspirators also allegedly established four internet domain names that they then used for fraud – creating some 800 different email addresses that were used for fraud.
Lawal and Ambali allegedly filed some 2300 fraudulent income tax returns seeking over $7.1 million in tax refunds. The IRS caught most of the fraud and paid only about $30,000 in fraudulent refunds.
The co-conspirators also attempted to use the stolen identities for Economic Injury Disaster Loans (EIDL) to defraud the Small Business Administration.
According to the indictment, the co-conspirators had the proceeds of their fraud sent to cash cards or to “money mules” who transferred the funds according to instructions given by the co-conspirators. They also allegedly used stolen identities to open bank accounts and have the money deposited directly into those accounts for their use.
Lawal and Ambali are charged with conspiracy to commit wire fraud, ten counts of wire fraud and six counts of aggravated identity theft.
The conspiracy and wire fraud counts are punishable by up to 30 years in prison. Aggravated identity theft is punishable by a mandatory minimum two years in prison to run consecutive to any other prison time imposed in the case.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The National Unemployment Fraud Task Force provided a lead on this case to the investigative team in Western Washington. The case was investigated by the FBI with assistance from U.S. Postal Inspection Service (USPIS) and the Department of Labor Office of Inspector General (DOL-OIG). Also contributing to the investigation were Washington State Employment Security Division (ESD), the Internal Revenue Service Criminal Investigation (IRS-CI), and the Small Business Administration (SBA).
The case is being prosecuted by Assistant United States Attorneys Cindy Chang and Seth Wilkinson of the Western District of Washington. DOJ’s Office of International Affairs is assisting.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
lawal_and_ambali_indictment.pdfTwo More New Orleans Residents Sentenced in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that, on February 15, 2023, U.S. District Judge Sarah S. Vance sentenced HERBERT ALLEN (“ALLEN”), age 38, and DION RIDLEY (“RIDLEY”), age 23, after they pleaded guilty to Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. Judge Vance sentenced ALLEN to 37 months in prison, followed by 3 years of supervised release. RIDLEY was sentenced to 6 months in prison, followed by 1 year of supervised release. Judge Vance also imposed a mandatory special assessment fee of $100 as to each defendant.
According to court documents, the defendants admitted to being in a conspiracy to commit mail fraud in connection with a staged automobile collision. In the scheme, ALLEN falsely claimed that he was the driver of a car that was struck by a tractor-trailer on June 28, 2017. RIDLEY, a passenger in the car, falsely claimed that ALLEN was driving the car and they were struck by a tractor-trailer. In fact, the government’s evidence showed that the defendants conspired with Damien Labeaud (“Labeaud”), Roderick Hickman (“Hickman”), and others to intentionally collide ALLEN’s 2007 Chevrolet Impala with a tractor-trailer in the area of Tchoupitoulas Street and Calliope Street in New Orleans. Both defendants lied in civil depositions, falsely claiming that ALLEN was driving the car that collided with the tractor-trailer, when in fact Hickman was driving the car and intentionally hit the tractor-trailer. Through their false statements and acts of deception, ALLEN was able to secure a $50,000 monetary settlement from the owner and insurer of the tractor-trailer, and RIDLEY was able to secure a $90,000 monetary settlement.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brandon S. Long; Brian M. Klebba, Unit Chief; Assistant U.S. Attorney Maria M. Carboni; and Assistant U.S. Attorney Edward Rivera, all members of the Financial Crimes Unit.
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Two Men Sentenced for Laundering Proceeds of a Business Email Compromise SchemeRead the Press Release
ALEXANDRIA, Va. – Two men were sentenced today to over 14 years in prison combined for money laundering as part of a business email compromise (BEC) scheme.
According to court documents, Onyewuchi Victor Ibeh, 33, of Mitchellville, Maryland, and Jason Eugene Joyner, 42, of Hyattsville, Maryland, participated in a scheme to launder the proceeds of a BEC scheme. In this scheme, conspirators infiltrate the computer systems of a victim company, including their email servers and email accounts, through phishing attacks or the use of malware. Once there, the conspirators impersonate the victim’s business partner and claim the business partner’s bank account information has changed. Intending to send the money to the business partner, the victim business instead sends the money to bank accounts controlled by the conspirators.
According to trial testimony, the network of accounts operated by defendants laundered about $13 million fraudulently obtained from numerous victim businesses between July 2016 and May 2020. Five of the defrauded businesses testified at trial, including one headquartered in Falls Church, Virginia. The co-conspirators laundered the proceeds of the scheme through various financial transactions using dozens of bank accounts that they directly and indirectly controlled. Joyner’s role in the scheme was to withdraw the proceeds of the fraud in cash, which he delivered to other conspirators, including Ibeh. Ibeh’s role in the scheme was to manage the money laundering by causing conspirators to open bank accounts, which he used to wire money domestically and internationally. Ibeh spent the proceeds of the fraud on luxury items, including a custom jewelry piece costing close to $40,000.
Ibeh was sentenced to 10 years and Joyner was sentenced to 51 months in prison. Ibeh and Joyner conspired with, among others, Anthony Ayeah and Mouaaz Elkhebri, both of whom have also been convicted of conspiracy to commit money laundering.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Michael Ray, Inspector in Charge of Cybercrime and National Security of the U.S. Postal Inspection Service; and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorney Christopher Hood, Assistant U.S. Attorney Russell Carlberg, and Special Assistant U.S. Attorney Elizabeth Bagwell prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-200.
Two Business Owners Sentenced for Conspiring to Pay Bribes in Exchange for Municipal Contracts in Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – Two government contractors were sentenced this week for their involvement in separate bribery schemes in which they gave payments to the mayor of the municipality of Cataño, Puerto Rico, in exchange for the mayor’s awarding of municipal contracts to their respective companies.
Mario Villegas-Vargas, 44, of Gurabo, Puerto Rico, was sentenced today to 46 months in prison for conspiracy to commit federal funds bribery. According to court documents, Villegas-Vargas paid kickbacks and bribes in exchange for the mayor exerting his influence on municipal officials in Cataño to ensure that Villegas-Vargas’ asphalt and paving business, JR Asphalt, was awarded municipal contracts. Villegas-Vargas’ bribe payments and his efforts to conceal those payments resulted in his business being awarded over $9.9 million in municipal contracts in Cataño.
Other public officials in Puerto Rico have already pleaded guilty to receiving bribe payments from JR Asphalt, including the former mayors of Aguas Buenas, Guayama, and Trujillo Alto and the former Directors of Public Works in Guayama and Cataño.
Jose Bou-Santiago, 50, of Bayamon, Puerto Rico, was sentenced yesterday to two years in prison for conspiracy to commit federal funds bribery. According to court documents, in April 2019, Bou-Santiago provided a Rolex watch to the mayor of Cataño in exchange for a future municipal contract for Bou-Santiago’s company, Bou Maintenance Service. Specifically, in June 2019, Bou Maintenance Service was awarded a construction contract by the municipality valued at approximately $190,000.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the cases.
Trial Attorneys Nicholas W. Cannon and Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Chief of the Financial Fraud and Public Corruption Section Seth A. Erbe for the District of Puerto Rico prosecuted the cases.
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Two Business Owners Sentenced for Conspiring to Pay Bribes in Exchange for Municipal Contracts in Puerto RicoRead the Press Release
Two government contractors were sentenced this week for their involvement in separate bribery schemes in which they gave payments to the mayor of the municipality of Cataño, Puerto Rico, in exchange for the mayor’s awarding of municipal contracts to their respective companies.
Mario Villegas-Vargas, 44, of Gurabo, Puerto Rico, was sentenced today to 46 months in prison for conspiracy to commit federal funds bribery. According to court documents, Villegas-Vargas paid kickbacks and bribes in exchange for the mayor exerting his influence on municipal officials in Cataño to ensure that Villegas-Vargas’ asphalt and paving business, JR Asphalt, was awarded municipal contracts. Villegas-Vargas’ bribe payments and his efforts to conceal those payments resulted in his business being awarded over $9.9 million in municipal contracts in Cataño.
Other public officials in Puerto Rico have already pleaded guilty to receiving bribe payments from JR Asphalt, including the former mayors of Aguas Buenas, Guayama, and Trujillo Alto and the former Directors of Public Works in Guayama and Cataño.
Jose Bou-Santiago, 50, of Bayamon, Puerto Rico, was sentenced yesterday to two years in prison for conspiracy to commit federal funds bribery. According to court documents, in April 2019, Bou-Santiago provided a Rolex watch to the mayor of Cataño in exchange for a future municipal contract for Bou-Santiago’s company, Bou Maintenance Service. Specifically, in June 2019, Bou Maintenance Service was awarded a construction contract by the municipality valued at approximately $190,000.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the cases.
Trial Attorneys Nicholas W. Cannon and Ryan R. Crosswell of the Criminal Division’s Public Integrity Section and Chief of the Financial Fraud and Public Corruption Section Seth A. Erbe for the District of Puerto Rico prosecuted the cases.
Three Individuals Sentenced for Firearm Straw Purchasing ConspiracyRead the Press Release
NORFOLK, Va. – Three individuals were sentenced today and last week to 58 months in prison combined for engaging in a straw purchasing conspiracy.
According to court documents, from March 2020 through July 23, 2020, David Collins, 34, of Vineland, New Jersey, Cardel Howard, 36, of Norfolk, and Felicia Tyson, 36, also of Norfolk, conspired together to straw purchase firearms in Virginia Beach, and traffic the firearms to New Jersey. During the conspiracy, Tyson acted as a straw purchaser of firearms on behalf of others, including defendants Howard and Collins.
In total, Tyson purchased seven firearms and attempted to purchase an eighth firearm for other individuals. Howard directed Tyson as to which firearms to purchase and how much to charge others for firearms. Collins traveled from New Jersey to Virginia for the purpose of acquiring a firearm in Virginia, which he could not acquire on his own because he is a convicted felon and a resident of New Jersey. The investigation into this group began after law enforcement in New Jersey recovered a firearm during a shooting investigation and determined that the firearm was previously purchased by Tyson.
Collins was sentenced today to 22 months in prison. On February 15, Howard was sentenced to 22 months’ incarceration for his role in the conspiracy. On February 8, Tyson was sentenced to 14 months' incarceration for her role in the conspiracy.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell Longwood, Acting Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by U.S. District Judge Elizabeth W. Hanes.
Assistant U.S. Attorney Megan Montoya prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-76.
Third and Pike armed drug dealer sentenced to five years in prisonRead the Press Release
Seattle – A 31-year-old Seattle man was sentenced today in U.S. District Court in Seattle to five years in prison for federal crimes related to his distribution of fentanyl pills in downtown Seattle and his armed shoplifting in Bellevue, announced U.S. Attorney Nick Brown. Kendall Alston was arrested on March 23, 2022, after Seattle Police Officers noted his hand-to-hand drug sales. The officers had been surveilling the area of 3rd Avenue between Pike and Pine Streets as part of “Operation New Day.” The emphasis patrol was aimed at increasing public safety in the Pike/Pine corridor where drug sales had led the area to become a hot spot for other crimes including assaults and shootings.
“Mr. Alston was armed with a loaded handgun while dealing potentially deadly fentanyl pills in downtown Seattle,” said U.S. Attorney Nick Brown. “Drugs and guns are a deadly combination and getting both off the street is a priority for the community.”
According to records filed in the case and testimony at trial, an officer in an observation point above the street witnessed a person in distinctive clothing engaging in what appeared to be a hand-to-hand drug sale. The officer returned to street level and saw the person later identified as Alston make another drug sale. Officers moved in and took Alston into custody. Alston carried 244 blue pills that were later tested and found to contain fentanyl. In his backpack, Alston carried a loaded Hi-Point .45 caliber semi-automatic handgun.
After a 3-day trial in August 2022, the jury deliberated about three hours before finding Alston guilty of knowingly distributing fentanyl, possession of fentanyl with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. Following the guilty verdicts, Alston agreed to plead guilty to two additional counts of being a felon in possession of a firearm. The counts are related to his March arrest in downtown Seattle with the firearm, and a previous January 2022 arrest for shoplifting in Bellevue, where he was found to be carrying a different firearm.
Alston is prohibited from possessing firearms due to two felony convictions, a 2018 residential burglary conviction in Pierce County, and a 2013 residential burglary conviction in King County.
At the sentencing hearing U.S. District Judge Lauren J. King noted Alston was “an intelligent young man engaging in high-risk behavior…. Possessing a firearm while dealing drugs adds to the danger.”
The case was investigated by the Seattle Police Department with assistance from the Drug Enforcement Administration.
The case was prosecuted by Assistant United States Attorneys Cecelia Gregson and Casey Conzatti.
Texan sentenced for transporting people in trunkRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old San Antonio resident has been ordered to federal prison for transporting undocumented aliens, announced U.S. Attorney Alamdar S. Hamdani.
Bryan Tanner pleaded guilty Dec. 1, 2022.
Today, U.S. District Judge David S. Morales ordered Tanner to serve 37 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard evidence that while committing the offense, he possessed a loaded firearm that was readily available to him in the car. In imposing the sentence, Judge Morales noted the dangerousness of the offense and also considered Tanner’s criminal history which includes prior convictions for possession and distribution of a controlled substance.
On Sept. 8, 2022, Tanner approached the Border Patrol checkpoint near Sarita. He appeared nervous and could not answer law enforcement’s questions.
They asked to check the vehicle, at which time Tanner attempted to flee the checkpoint. Authorities stopped him and discovered three individuals concealed inside the trunk. Two of the individuals indicated they had been there for at least three hours.
The temperature inside the area was over 99 degrees.
Law enforcement also discovered a loaded 9mm handgun stashed between the driver’s seat and center console of the car.
Tanner has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Ashley Martin prosecuted the case.
Terrebonne Parish Man Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – DERECK CELESTIN, JR., age 37, a resident of Terrebonne Parish, Louisiana, was sentenced on February 16, 2023 to 120 months imprisonment, 5 years of supervised release, and a mandatory $200 special assessment fee by U.S. District Judge Susie Morgan, after pleading guilty to a two-count indictment which charged him with distribution of methamphetamine in violation of Title 21, United States Code, Sections 841(a)(1), 841(b)(1)(B), and 841(b)(1)(A), announced U.S. Attorney Duane A. Evans.
According to court documents, a Drug Enforcement Administration (DEA) investigation revealed that CELESTIN was a methamphetamine distributor in Terrebonne Parish. DEA agents arranged two controlled purchases of methamphetamine from CELESTIN. On July 13, 2021, agents arranged the purchase of 48.73 grams of methamphetamine from CELESTIN. On August 9, 2021, agents arranged the purchase of 130.35 grams of methamphetamine from CELESTIN.
This case was investigated by the Drug Enforcement Administration and Terrebonne Parish Sheriff’s Office. The prosecution was handled by Assistant United States Attorney J. Benjamin Myers of the Narcotics Unit.
Shreveport Man on Supervised Release for Previous Federal Conviction Sentenced for Possessing a FirearmRead the Press Release
SHREVEPORT, La. – Charles M. Thomas, 26, of Shreveport, Louisiana, was sentenced today for being a convicted felon in possession of a firearm and for violating the terms of his federal supervised release, announced United States Attorney Brandon B. Brown. United States District Judge S. Maurice Hicks, Jr. sentenced Thomas to 46 months in prison, followed by 3 years of supervised release on the firearms charge.
Thomas was indicted in March 2022 and charged with possession of a firearm and ammunition by a convicted felon and pleaded guilty to the charge on August 4, 2022. The charge stems from an incident which occurred on March 7, 2022, when officers with the Shreveport Police Department arrested Thomas for domestic violence. Further investigation by law enforcement agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) led to the discovery of video evidence of Thomas being in possession of a firearm. Agents knew that Thomas had previously been convicted in the Western District of Louisiana in 2018 for being a convicted felon in possession of a firearm and at the time of this arrest for domestic violence, was on supervised release for that conviction. During a search of the apartment where Thomas was staying, agents discovered a bag containing .223 and 5.56 caliber ammunition which belonged to Thomas. The ammunition was compatible with the firearm that Thomas was seen holding in the video. In addition, agents found in the apartment the same sweatpants that Thomas was wearing in the video. Thomas has a prior felony conviction for aggravated assault with a firearm (2015) and the prior felon in possession of a firearm conviction (2018) in the Western District of Louisiana.
Thomas was found to be in violation of his federal supervised release, and he was sentenced to an additional 14 months in prison to run consecutive with the above sentence.
The case was investigated by the ATF and Shreveport Police Department and prosecuted by Assistant U.S. Attorney Seth D. Reeg.
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Sanostee man pleads guilty to voluntary manslaughterRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that Tyrone Atcitty Nez pleaded guilty to voluntary manslaughter. Nez, 33, of Sanostee, New Mexico, and an enrolled member of the Navajo Nation, will remain in custody pending sentencing, which has not been scheduled.
According to the plea agreement and other court records, on June 8, 2022, Nez fatally assaulted a man, identified as John Doe, in the home where Nez resides near Sanostee on the Navajo Nation. Nez allegedly punched John Doe in the face, rendering John Doe unconscious. Nez then allegedly stomped the victim in the face several times. John Doe died as a result of his injuries.
Nez faces up to 17 years in prison.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Police Department. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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Salem Man Pleads Guilty for Using Twitter to Threaten Violence Against Robinhood EmployeesRead the Press Release
PORTLAND, Ore.—A Salem, Oregon man pleaded guilty today for using Twitter to threaten violence against employees of Robinhood Markets, Inc., an online financial services company based in Menlo Park, California.
Christopher David Michalski, 39, pleaded guilty to one count of interstate communication of threats.
According to court documents, on or about April 14, 2022, a Robinhood employee contacted the FBI to report a series of Twitter posts spanning nearly a year threatening violence toward Robinhood employees, including its Chief Executive Officer and his family. Further investigation revealed that the Twitter account used to transmit the threats, @goldshroomand1, was associated with the internet protocol address of Michalski’s home in Salem and that several photos of firearms accompanying the threats were taken at a nearby shooting range.
On April 25, 2022, Michalski was charged by criminal complaint with interstate communication of threats. The next week, on May 4, 2022, special agents from the FBI and officers from the Salem Police Department arrested Michalski without incident. On May 19, 2022, Michalski was indicted by a federal grand jury in Portland.
Michalski faces a maximum sentence of five years in federal prison, a $250,000 fine, and three years’ supervised release. He will be sentenced on May 15, 2023, by U.S. District Court Judge Michael H. Simon.
This case was investigated by the FBI with assistance from the Salem Police Department’s Strategic Investigation Unit. It was prosecuted by Scott M. Kerin, Assistant U.S. Attorney for the District of Oregon.
Russian Malware Developer Arrested and Extradited to the United StatesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the arrest and extradition of Dariy Pankov a/k/a “dpxaker.” Pankov is charged with conspiracy, access device fraud, and computer fraud. If convicted on all counts, he faces a maximum penalty of 47 years in federal prison. The indictment also notifies Pankov that the United States intends to forfeit $358,437, which is alleged to be traceable to proceeds of the offenses.
Pankov, a citizen and resident of Russia, was taken into custody by Georgian authorities in the Republic of Georgia, on October 4, 2022, and extradited to the United States pursuant to a request from the United States. Pankov appeared before United States Magistrate Christopher P. Tuite on February 21, 2023, in Tampa, Florida and was ordered detained pending trial.
According to the indictment, Pankov developed a malicious software program named “NLBrute.” The powerful malware was capable of compromising protected computers by decrypting login credentials, such as passwords. Pankov used NLBrute to obtain the login credentials of tens of thousands of computers located all over the world. He marketed, sold, and had others sell on his behalf, NLBrute to other cybercriminals for a fee. Pankov sold the stolen login credentials on a dark web website that specialized in the purchase and sale of access to compromised computers. Once sold, those credentials were used to facilitate a wide range of illegal activity, including ransomware attacks and tax fraud. Pankov listed the credentials of more than 35,000 compromised computers for sale on the website, and obtained more than $350,000 in illicit proceeds.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation was led by the Internal Revenue Service—Criminal Investigation, Tampa Field Office, and the Federal Bureau of Investigation, Tampa Field Office. Substantial assistance was provided by the Department of Justice’s Office of International Affairs and United States Marshals Service. This investigation also benefited from foreign law enforcement cooperation by the Georgian Prosecutor General’s Office, Ministry of Justice, and Ministry of Internal Affairs. It will be prosecuted by Assistant United States Attorney Carlton C. Gammons.
Download IndictmentRensselaer County Sex Offender Arrested for Sexually Exploiting a Child, Receiving Child PornographyRead the Press Release
ALBANY, NEW YORK – Zachary Cota, age 29, of Castleton-on-Hudson, New York, was arrested today for sexually exploiting a child and receiving child pornography. United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), made the announcement.
A criminal complaint alleges that between May 27, 2022 and June 7, 2022, Cota sexually exploited an 8-year-old child residing outside of New York State and also received child pornography.
The charges in the criminal complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Cota appeared today in Albany, before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending further proceedings.
Upon conviction, the charges filed against Cota carry a mandatory minimum term of 25 years in prison and a maximum of 90 years in prison, as well as a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The case is being investigated by the FBI and its Child Exploitation Task Force, which includes members of federal, state, and local law enforcement agencies, including the Rotterdam, Troy, and Colonie Police Departments and the New York State Police. Assistant U.S. Attorneys Jonathan S. Reiner and Rachel L. Williams are prosecuting the case as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Recidivist Fraudster Pleads Guilty to Fraud, Identity Theft, and Making False Statements in Connection with Andrews Air Force Base Construction ContractRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that RAYMOND WHITE, a/k/a “John Raymond Anthony White,” a/k/a “Raymond Alexander White,” pled guilty yesterday to a scheme in which he defrauded the government by submitting fraudulent documents and false information about himself, his company’s business, and his company’s finances in order to obtain a $4.8 million contract to build a munitions load crew training facility at Joint Base Andrews, Maryland (“Andrews Air Force Base”), and to obtain a bond guarantee from the United States Small Business Administration (“SBA”) in connection with the contract. WHITE also committed aggravated identity theft by using another person’s signature and Social Security number. WHITE pled guilty before United States District Judge Edgardo Ramos.
U.S. Attorney Damian Williams said: “Despite a prior conviction by this Office, Raymond White continued to lie and fabricate information in order to line his own pockets. This time, White defrauded the government, submitting fraudulent documents and false information to obtain a nearly $5 million construction contract and to obtain a bond guarantee from the SBA in connection with the contract. This Office will continue to prosecute recidivist fraudsters until the message is clear and they have learned their lesson: committing financial fraud will lead to significant penalties.”
According to the Complaint, Superseding Indictment, public court filings, and statements made in court:
From in or about May 2019 through in or about September 2020, WHITE submitted a bid and related documents to the District of Columbia Army National Guard (“National Guard”) on a contract (the “Contract”) to build a munitions load crew training facility at Andrews Air Force Base. Prior to obtaining the Contract, WHITE provided the National Guard with fraudulent documents about himself and his company, Kochendorfer Group USA Inc., (“Kochendorfer”). WHITE submitted similar information to the SBA to obtain a guarantee from the SBA that was a requirement for obtaining the Contract.
The fraudulent documents that WHITE submitted to the National Guard and the SBA included a doctored bank account statement, fake reports from an accounting firm that WHITE had invented, and falsified financials. These documents purported to show that Kochendorfer had significant cash assets. In fact, Kochendorfer had virtually no money. WHITE also submitted a false resume and firm dossier, which described fictitious construction jobs and provided fake references. WHITE claimed, among other things, that he had overseen the construction of a World Cup soccer stadium in Brazil from 2012 to 2014 when in fact, WHITE was in federal prison during that time frame, serving a prison term on a prior fraud conviction. WHITE also lied to the SBA by denying that he had any prior criminal convictions. In furtherance of this fraud on the National Guard and the SBA, WHITE forged the signature of an attorney on a Kochendorfer letter and used another individual’s Social Security number on his SBA guarantee application.
Based on WHITE’s misrepresentations, the National Guard awarded the Contract to Kochendorfer and the SBA issued a guarantee. The National Guard terminated the Contract after discovering WHITE’s fraud, and no construction work was ever performed on the site. As a result of the Contract’s termination, the SBA has fulfilled multiple claims pursuant to the guarantee provided by the SBA.
In 2011, WHITE was convicted following a jury trial in the U.S. District Court for the Southern District of New York under the name “John Raymond Anthony White” for engaging in major fraud, mail fraud, false statements, and witness tampering. United States v. John Raymond Anthony White, S1 10 Cr. 516 (SHS). WHITE’s prior conviction arose out of his fraud in the procurement of four government contracts, for a scheme in which he falsely represented that he was a disabled veteran. As a result of his 2011 federal conviction, WHITE and his prior construction company, Mitsubishi Construction Corporation, were excluded from government contracting for a period of five years. The name that WHITE used in connection with the Contract — Raymond White — was different from the name he had used in connection with the government contracts at issue in his prior federal conviction.
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WHITE, 58, of New York, New York, pled guilty to one count of major fraud against the United States, which carries a maximum sentence of 10 years in prison; two counts of wire fraud, each of which carries a maximum sentence of 20 years in prison; two counts of false statements and false writings, each of which carries a maximum sentence of five years in prison; and one count of aggravated identity theft, which carries a consecutive mandatory minimum sentence of two years in prison.
The minimum and maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. Sentencing is scheduled for May 23, 2023, at 11:00 a.m.
Mr. Williams praised the work of the Air Force Office of Procurement Fraud Investigations and Office of Special Investigations and the Army Major Procurement Fraud Unit in this investigation.
The case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Edward C. Robinson Jr., Jessica Greenwood, and Frank Balsamello are in charge of the prosecution, with the assistance of Paralegal Specialist Maria Gatica.
Portland Man Sentenced to Federal Prison for Assaulting Postal EmployeeRead the Press Release
PORTLAND, Ore.—On February 21, 2023, a Portland man was sentenced to federal prison for punching a U.S. Postal Service employee after stealing several trays of mail from a post office.
Dellmon Timmy Smith, 53, was sentenced to 30 months in federal prison and three years’ supervised release.
According to court documents, on November 22, 2021, Smith—who has a criminal history spanning decades that includes multiple felony convictions for theft and making threats of violence during his various thefts—entered a back door of the Creston U.S. Post Office on SE Foster Road in Portland, pushed past a postal service employee, grabbed two trays of mail, and ran away. The employee yelled for help and several other postal employees chased Smith down the street. When the first employee caught up to Smith, Smith dropped the trays of mail, reached into his waistband, and said “I have a gun, I’m going to shoot you.”
As two other employees caught up, Smith turn around and punched one of the employees in the face, below their left eye, and before falling to the ground. The employees took pictures of Smith, collected the stolen mail, and returned to the post office. Smith was later identified and arrested without incident.
On June 22, 2022, a federal grand jury in Portland returned a two-count indictment charging Smith with mail theft and assault on a federal officer. On November 28, 2022, he pleaded guilty to the assault charge.
This case was investigated by the U.S. Postal Inspection Service (USPIS). It was prosecuted by Meredith D.M. Bateman and Seth Uram, Assistant U.S. Attorneys for the District of Oregon.
Physician Agrees to $190,731 Settlement Relating to Controlled Substances Act ClaimsRead the Press Release
PENSACOLA, FLORIDA – Timothy Ramsden, of Panama City, Florida, practicing at The Anti-Aging Clinic of Northwest Florida, settled potential violations of the Controlled Substances Act by agreeing to pay a fine of $190,731 and surrendering his Drug Enforcement Administration (DEA) registration for Schedule II and IIN controlled substances for a period of five (5) years, along with compliance monitoring for a period of five (5) years. The settlement was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“In reaching this settlement, we emphasize the necessity of adhering to and enforcing the Controlled Substances Act,” said U.S. Attorney Coody. “It is our duty to ensure the mandates of the Controlled Substances Act are upheld and that its limits are not abused by physicians. Our office will continue to ensure compliance with the Controlled Substances Act and all federal laws regulating physicians.”
Dr. Ramsden entered into a civil settlement agreement with the United States Attorney’s Office for the Northern District of Florida. As part of the resolution, Dr. Ramsden will surrender his DEA registration for Schedule II and IIN controlled substances, not reapply for a period of at least five years, and pay a civil fine of $190,731. The investigation uncovered numerous potential civil violations of the Controlled Substances Act, including:
- Failing to keep complete and accurate records;
- Failing to properly document the biennial inventory;
- Failing to record the number of units or volume of each finished form in each commercial container on the biennial inventory;
- Failing to indicate the date received on two (2) invoices;
- Failing to properly indicate the dispositions within the patient file;
- Failing to document patient file where prescription for Testosterone Enanthate (5ML) Injectable was issued;
- Issuing prescription for Oxandrolone to patient which was returned to Dr. Ramsden for his personal use.
In addition to the monetary penalties and surrender of his DEA Schedule II and IIN registration, Dr. Ramsden agreed to compliance terms for the next five (5) years, including record-keeping monitoring and uninterrupted visits from the DEA.
“An important part of DEA’s mission is to ensure all DEA registrants follow the federal laws set forth in the Controlled Substance Act, to include accurate inventorying, tracking, and recordkeeping to prevent the diversion of controlled substances. When medical professionals fail to comply with these laws, it puts our communities at risk,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “DEA remains committed to working with our law enforcement and regulatory partners to hold registrants accountable and ensure our communities remain safe and healthy.”
This civil settlement agreement is not an admission of any liability by Dr. Ramsden, nor a concession by the United States that its potential claims were not well-founded.
Assistant United States Attorneys Mary Ann Couch, Kathryn Drey, and Marie Moyle represented the United States in this matter, which was investigated by the Drug Enforcement Administration, Diversion Control Program.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.