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Wednesday 11 January 2023
Former Philadelphia Restaurant Owner Sentenced to 15 Months for Tax FraudRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today that Matthew Swartz, 50, of Fairmount, West Virginia, was sentenced to 15 month’s imprisonment, three years of supervised release, and ordered to pay $486,000 in restitution to the U.S. Department of Treasury.
In November 2020, the defendant pleaded guilty before United States District Court Judge Timothy J. Savage to failing to pay employee withholding taxes to the IRS from his employees’ taxes in 2014. Swartz, the owner of a group of Philadelphia area restaurants operating as the Grainery Group, was personally responsible for preparing the payroll for the company. As part of that responsibility, he prepared payroll stubs for employees that represented that taxes had been withheld from their pay and paid over to the IRS. In fact, Swartz did not pay to the IRS the taxes he withheld from the employee’s pay. As part of a plea agreement, Swartz acknowledged that he had failed to pay over withholding for the years 2011, 2012 and 2013, in addition to the charged conduct in the 2014 tax year.
The case was investigated by the Internal Revenue Service – Criminal Investigations and is being prosecuted by Assistant United States Attorney Richard Barrett.
Former Muncie Police Department Supervisor Pleads Guilty to Obstruction of Justice for Writing False Report to Cover up Excessive Force by Other OfficersRead the Press Release
INDIANAPOLIS – A former sergeant with the Muncie Police Department (MPD), in Muncie, Indiana, pleaded guilty today to one count of obstruction of justice for writing a false report to cover up the excessive use of force by other MPD officers under his command.
According to court documents and statements made during the change of plea hearing, on or about August 9, 2018, Joseph Krejsa, 52, responded to the scene of an arrest involving a civilian with the initials L.G. Before he arrived on the scene, other MPD officers under his supervision – including Officer Chase Winkle, the son of the then-Chief of Police – had used excessive force against L.G., resulting in serious injury to L.G.’s face. The day after the arrest, Krejsa conducted a supervisory review of the incident, during which he noted that he had watched the videos of the incident and falsely deemed those uses of force “justified.”
Several days later, on or about August 13 and August 14, 2018, the captain of MPD’s patrol division tasked Krejsa with conducting a more in-depth review of the officers’ uses of force during L.G.’s arrest, which was separate from the typical shift sergeant review. In response to this request, Krejsa watched the involved-officers’ body worn camera videos, which revealed what had happened during the arrest: Two officers under his supervision, Chase Winkle and Corey Posey, approached L.G. in an alley way and gave several verbal commands to L.G. – including to put his hands on his head and to get on the ground – and L.G. complied with those commands. On the ground, as Posey held both of L.G.’s hands behind his back, L.G. directed a verbal insult towards officers, and in response, Winkle lifted his left knee, and, using his knee, dropped his bodyweight down onto L.G.’s neck and head area. L.G. screamed out words to the effect of, “He crushed my whole face!” and pulled his hands towards his face. Winkle then tased L.G., as other MPD officers, including Officer Jeremy Gibson, arrived to assist. Toward the end of the incident, officers secured one of L.G.’s hands in handcuffs, lifted him up to a seated position, and Gibson delivered two forceful knee strikes directly to L.G.’s face.
After reviewing the officers’ body camera videos, Krejsa knowingly authored a lengthy memorandum for MPD’s official records that contained several false statements. Specifically, Krejsa falsely implied that any force used against L.G. was justified to ensure officer safety; falsely asserted that officers used only low levels of force near the start of the incident, and escalated to higher levels of force only after lower levels of force were ineffective; falsely stated that Winkle “kneeled on [L.G.]’s left shoulder and upper body,” when in fact he knew that Winkle had used his knee to strike L.G.’s head and neck area; and falsely implied that Winkle’s uses of force against L.G. caused only cuts to L.G.’s face, when he knew that the use of force against L.G. caused serious bodily injury to L.G. As part of his plea, Krejsa admitted that he knew, when he wrote the false report, that the inaccuracies and material omissions in his report were intended to influence any potential investigation into the incident.
Krejsa is the fourth Muncie Police Department official to plead guilty in connection with this investigation. Krejsa was one of four MPD officers who were indicted in April 2021 in a 17-count superseding indictment for their roles in using excessive force against arrestees and/or attempting to cover up the misconduct. A fifth Muncie police officer, Dalton Kurtz, previously entered a pre-indictment guilty plea on August 4, 2021, to one count of misprision of felony for concealing and failing to report inappropriate use of force by Winkle during a separate incident.
On May 13, 2022, Gibson also pleaded guilty to civil rights and obstruction charges for assaulting a different arrestee and writing a false report about the incident. On December 5, 2022, Winkle pleaded guilty to eleven counts of civil rights and obstruction offenses for assaulting arrestees and writing false reports about the incidents, including the arrest of L.G. The last remaining officer is scheduled to stand trial at a later date.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Zachary A. Myers for the Southern District of Indiana, and FBI Indianapolis Special Agent in Charge Herbert J. Stapleton made the announcement.
The FBI Indianapolis conducted the investigation.
Trial Attorneys Katherine G. DeVar and Mary J. Hahn of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Peter Blackett for the Southern District of Indiana are prosecuting the case.
Former Mayor of Trujillo Alto Sentenced for Accepting BribesRead the Press Release
SAN JUAN, Puerto Rico – The former mayor of the Municipality of Trujillo Alto, Puerto Rico, José Luis Cruz-Cruz, was sentenced today to 24 months in prison for his involvement in a bribery scheme in which he received cash payments in exchange for directing municipal employees to execute municipal contracts for the benefit of an asphalt and paving company and a trash removal company.
José Luis Cruz-Cruz, 63, pleaded guilty in June 2022 to one count of conspiracy to engage in a bribery scheme. According to court documents and statements made in connection with his plea and sentencing, Cruz-Cruz was the mayor and highest-ranking government official in the municipality of Trujillo Alto from 2009 until 2022. In 2020 and 2021 he directed municipal employees to execute municipal contracts with Company A and Company B. In exchange, Cruz-Cruz agreed to receive kickback payments in cash from Company A and Company B. In addition to the term of imprisonment, the defendant was sentenced to two years of supervised release.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, United States 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 González of the FBI San Juan Field Office made the announcement.
The FBI San Juan Field Office investigated the case.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Seth A. Erbe for the District of Puerto Rico are prosecuting the case.
These cases are part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodríguez, 21-465 (RAM); United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Luis Arroyo-Chiques, 21-485 (SCC); United States v. Eduardo Cintron-Suarez, 22-151 (SCC); United States v. Ramon Conde-Melendez, 22-221 (PAD); United States v. Pedro Miranda-Marrero, 22-251 (RAM); and United States Jose Bou-Santiago, 22-379 (ADC).
Additionally, the department recently obtained indictments charging several former officials with bribery related to municipal contracts, and those cases are still pending. See United States v. Ángel Pérez-Otero, 21-474 (ADC); United States v. Javier García-Pérez, 22-185 (ADC); and United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Louisiana State Senator and Chair of State Political Party, Sentenced to 22 Months Imprisonment for Role in Nearly Seven-Year Scheme to Defraud Campaign Entity, Donors, and Political Party OrganizationRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that former Louisiana State Senator and Chair of State Political Party “A,” KAREN CARTER PETERSON, age 53, from New Orleans, Louisiana, was sentenced today by United States District Judge Sarah S. Vance to 22 months imprisonment after previously pleading guilty to a one-count bill of information charging her with wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2. Additionally, Judge Vance sentenced Peterson to serve a period of 3 years of supervised release, 600 hours of unpaid community service, restitution in the amount of $53,106.93, a fine of $115,000, with $94,250 due immediately and a mandatory special assessment fee of $100. PETERSON was ordered to report to authorities to commence serving her prison sentence on March 6, 2023.
According to court documents, PETERSON served as a Louisiana State Senator for the 5th District from about 2010 until about April 8, 2022, and as the Chair of State Political Party A between about 2012 and 2020. As a Louisiana State Senator, PETERSON formed and maintained a campaign organization, the “Karen Carter Peterson Campaign Fund (“KCPCF”),” to solicit and raise campaign funds from individual and corporate donors. The campaign funds were solicited based upon false representations that the funds would be used to facilitate PETERSON’S reelection for the position of State Senator. In the course of soliciting campaign donations, PETERSON also failed to disclose to potential contributors that she had already used prior contributions for her personal benefit.
In furtherance of her scheme, PETERSON diverted, and caused her friends and associates to divert, campaign funds from the KCPCF to PETERSON’S personal use for the purpose of obtaining and using money and property from contributors to the KCPCF by means of materially false and fraudulent representations and promises for nearly seven (7) years. She did so by writing checks drawn on the KCPCF account to at least four (4) of her friends and associates and directing them to cash the checks at financial institutions in the New Orleans, Louisiana area and then to give PETERSON the proceeds. Occasionally she allowed the individuals cashing the checks to keep a small portion of the proceeds. PETERSON used the funds to pay for personal expenses unrelated to her campaign or the holding of public office, including to pay gambling-related expenses. Further, PETERSON caused the public filing of false and misleading campaign finance reports that mischaracterized expenditures as being for legitimate purposes related to her campaign or the holding of public office, but were, in fact, unrelated to such purposes and, instead, were diverted to PETERSON’S personal use. In total, between about November 25, 2013, and March 5, 2020, PETERSON fraudulently employed the scheme on numerous occasions to divert and convert to her personal use approximately $94,250 that had been donated by contributors to her campaign.
Additionally, in her role as Chair of State Political Party A, PETERSON oversaw the strategic decision-making, operations, outreach, and direction of Party A and supervised its permanent staff, including individuals who had signatory authority of State Political Party A’s financial accounts. PETERSON exploited her position to choose entities (“Companies”) operated by her associates, purportedly to provide campaign-related services to State Political Party A, and to determine the amount that Party A would pay each of the Companies. PETERSON represented to State Political Party A that the payments were for a campaign purpose. In reality, the Companies provided either no or minimal services for State Political Party A. PETERSON then willfully and wrongfully directed the Companies to remit a portion of the funds paid to them by State Political Party A to PETERSON through either checks drawn on the accounts of the Companies or in cash. In total, between about October 7, 2019, and April 4, 2020, PETERSON received approximately $53,106.93 of funds from State Political Party A through this fraudulent scheme.
“People have the right to expect that their elected leaders will uphold the trust placed in them,” said the United States Attorney’s Office. “Former State Senator Peterson illegally used campaign funds and state political party funds for her personal use during the majority of her tenure as a state senator. She broke the law, deceived contributors, and violated her duty to the voters and the political party with which she was affiliated on dozens of occasions. Such crimes feed public frustration, cynicism, and civic disengagement. This case is proof that our office is committed to holding corrupt public officials accountable.”
“The FBI is committed to aggressively pursuing those who violate the trust placed in them by the public and holding them accountable for their actions. Today’s sentencing sends a clear message that individuals like former Louisiana State Senator Karen Carter Peterson, who stole money to enrich herself, will be held responsible,” said Douglas A. Williams, Jr., FBI New Orleans Special Agent in Charge. “I would like to thank our partners at the United States Attorney’s Office Eastern District of Louisiana, Internal Revenue Service – Criminal Investigation, and Metropolitan Crime Commission for their strong partnerships in helping the FBI disrupt public corruption in Louisiana."
“As an elected official, Karen Peterson was expected to lead by example and lookout for the best interests of her constituents,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “However, Peterson diverted campaign funds for personal use. Today’s sentencing proves no matter a person’s position or power, when the public’s trust is abused through illegal means, they will be held accountable.”
The United States Attorney’s Office praised the work of the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation, and Forensic Accountant Josephine M. Beninati, CPA, CFE in this matter. Assistant United States Attorney Jordan Ginsberg, Chief of the Public Corruption Unit, is in charge of the prosecution.
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Former Executive Director of Long Island Charity Sentenced to over Two Years in Prison for EmbezzlementRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, Senior United States District Judge Edward R. Korman sentenced Wafa Abboud to a term of imprisonment of 33 months. As part of the sentence, Judge Korman also ordered Abboud to forfeit $836,000 and pay $1,415,000 in restitution to Human First, Inc. (Human First), the nonprofit agency that Abboud led for more than five years. Abboud was convicted following a two-week jury trial in July 2019 of theft from programs receiving federal funds, bank fraud, and conspiracies to commit those crimes.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“Stealing taxpayer money earmarked for developmentally disabled youth to pay for vacations, cosmetic surgery, and luxurious vacations is shameful,” stated United States Attorney Peace. “Today, the defendant has been held accountable for betraying the most vulnerable among us whom she was entrusted to serve and treating the non-profit organization bank accounts as though they were her own.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, for its investigative work on the case.From January 2011 until her termination on May 27, 2016, Abboud was the Executive Director of Human First, a non-profit corporation that provided services to individuals with autism and other developmental disabilities. In that capacity, Abboud exercised nearly complete control over the charity’s finances. During Abboud’s tenure, Human First received tens of millions of dollars annually from the New York State Office for People with Development Disabilities, which is funded in significant part by the Medicaid program. The money was disbursed to Human First to support its mission of providing residential, rehabilitative, and other services to developmentally disabled youth.
Abboud entered into an agreement with co-defendant Marcelle Bailey whereby Abboud caused Human First to pay Bailey’s company MPB Management Services LLC (MPB) approximately $16,000 per month in purported “consulting” fees. Bailey deposited approximately half of each monthly disbursement into bank accounts that were controlled by Abboud, who used the money to fund a lavish lifestyle, including expensive international vacations, visits to luxury spas and high-end beauty salons and restaurants, and elective cosmetic surgeries. Abboud also withdrew approximately $120,000 from the accounts in cash and wired tens of thousands of dollars in the account overseas. In total, Abboud stole approximately $420,000 between May 2011 and February 2016 through the MPB embezzlement scheme.
Abboud also conspired with co-defendant Rami Taha to steal over $400,000 through a scheme in which Abboud deliberately issued overpayments to contractors performing work on Human First properties with the knowledge that the overpayment would be kicked back to her. The overpayments were disguised through the use of inflated invoices submitted to Human First, and the payments to Abboud were hidden by transferring the funds through a number of sham bank accounts before ultimately depositing them into accounts controlled by Abboud. Abboud used the stolen money to finance the down payment and renovation of her residence. To conceal the true source of the funds, Abboud lied to her mortgage lender, falsely claiming that the funds were a settlement payment she had received for damage caused to her previous home.
Bailey pleaded guilty to embezzlement and bank fraud in December 2017 and was sentenced by Judge Korman in August 2021 to 33 months in prison. Taha pleaded guilty in May 2019 to embezzlement. A fourth defendant, Arkadiusz Swiechowicz, pleaded guilty to obstruction of justice in September 2018. Taha and Swiechowicz are awaiting sentencing.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Robert Polemeni and Turner Buford are in charge of the prosecution. Assistant United States Attorney Tanisha Payne of the Office’s Asset Recovery Section is handling forfeiture matters in the case.
The Defendant:
WAFA ABBOUD
Age: 55
Merrick, NY
E.D.N.Y. Docket No. 16-CR-396 (ERK)Former Drug Treatment Clinic Owner Sentenced for Meth TraffickingRead the Press Release
KANSAS CITY, Mo. – The former owner of an Olathe, Kansas, clinic that treated opioid addiction has been sentenced in federal court for possessing methamphetamine to distribute.
Trevor J. Robinson, 46, of Olathe, Kan., was sentenced by U.S. District Judge Gary A. Fenner on Tuesday, Jan. 10, to 11 years and three months in federal prison without parole.
Robinson owned and operated Nuvista, LLC, a Suboxone outpatient clinic in Olathe for individuals with opioid addiction, from June 2013 until his arrest in October 2020, after which the business closed. On Nov. 3, 2021, Robinson pleaded guilty to one count of possessing with the intent to distribute methamphetamine.
According to court documents, Robinson used the Nuvista clinic location to process, store, and distribute methamphetamine. A confidential informant purchased a pound of methamphetamine from Robinson during a controlled transaction in the clinic’s parking lot a few days before his arrest. Robinson also showed the confidential informant another pound of methamphetamine inside the Nuvista clinic that he was in the process of converting from liquid to crystal.
Although the government does not currently have evidence Robinson sold drugs to specific clients of the clinic, according to court documents, the evidence does show he distributed drugs into the same community he was trying to service with treatment. Robinson was a large-scale supplier and did not sell directly to users, who would be clients of the clinic. Therefore, the government maintains it is possible the drugs he distributed made their way to the addicts he was also treating.
Robinson admitted he was in possession of illegal drugs when he was arrested by Kansas City police officers on Oct. 22, 2020. Law enforcement officers had Robinson, who had an outstanding arrest warrant, under surveillance at a Northland hotel. Robinson conducted several short meetings with individuals in the parking lot. Those meetings were consistent with hand-to-hand drug transactions. Robinson left the hotel carrying a grey backpack, got into his Dodge Ram truck, and drove to a downtown parking garage. Robinson left his truck in the parking garage and drove away in his 2014 Maserati, which he parked on the street nearby. Officers then surrounded the Maserati and arrested Robinson.
Robinson was in possession of a plastic bag that contained 15 white round pills imprinted with “M30” in his front right pocket and $900 in his wallet. Laboratory tests confirmed 14 of the pills contained fentanyl and one pill contained oxycodone.
Officers searched Robinson’s Maserati and found a grey backpack on the front passenger’s seat. The backpack contained a digital scale, plastic bags that contained approximately 1.5 kilograms of methamphetamine, plastic bags that contained cocaine and heroin, several plastic bags that contained various pills, including MDMA/ecstasy, a plastic bag that contained marijuana, $12,548 in cash, two iPhones, and a leather-bound ledger notebook.
After his arrest, Robinson told investigators that he sold methamphetamine in ounce or pound quantities. He admitted he bought pound and kilogram quantities of methamphetamine from at least three different suppliers on a regular basis. He paid $6,000 per pound of methamphetamine, which he sold for about $700 per ounce.
According to court documents, Robinson has four prior felony convictions for drug trafficking in California from 1999 through 2003. He was released to parole in 2005 and discharged from supervision in 2008.
This case was prosecuted by Assistant U.S. Attorney Ashleigh A. Ragner. It was investigated by the Kansas City, Mo., Police Department, the FBI, and the Northeast Kansas Drug Task Force.
Former Doctor Convicted of Illegal Distribution of Controlled SubstancesRead the Press Release
A federal jury convicted a doctor formerly licensed in Ohio today for illegally prescribing controlled substance pills in violation of the Controlled Substances Act.
According to court documents and evidence presented at trial, Freeda Flynn, 69, formerly of St. Clairsville, unlawfully prescribed controlled substances, such as oxycodone, hydrocodone, and methadone, to her patients outside the scope of professional practice and not for a legitimate medical purpose. Some patients were prescribed high doses of medication without justification despite their addictions, which were known to Flynn and which placed them at risk for overdose or death. Others were prescribed medication in dosages, or in combinations, that were outside the course of professional practice. Flynn previously surrendered her DEA registration to prescribe controlled substances, and her medical license was revoked by the State Medical Board of Ohio in January 2021.
Flynn was convicted in the Southern District of Ohio of eight counts of unlawful distribution of a controlled substance. She faces a maximum penalty of 20 years in prison on each count. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Kenneth L. Parker for the Southern District of Ohio; Special Agent in Charge J. William Rivers of the FBI Cincinnati Field Office; Special Agent in Charge Orville O. Greene of the DEA Detroit Division; and Special Agent in Charge Mario M. Pinto of the Department of Health and Human Service Office of Inspector General (HHS-OIG) made the announcement.
The DEA, FBI, HHS-OIG, Ohio Attorney General’s Office, and Ohio Board of Pharmacy investigated the case.
Trial Attorneys Christopher Jason and Maryam Adeyola of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in late 2018, ARPO has partnered with federal and state law enforcement agencies and U.S. Attorneys’ Offices throughout Alabama, Kentucky, Ohio, Virginia, Tennessee, and West Virginia to prosecute medical professionals and others involved in the illegal prescription and distribution of opioids. Over the past three years, ARPO has charged over 115 defendants, collectively responsible for issuing prescriptions for over 115 million controlled substance pills. To date, more than 60 ARPO defendants have been convicted. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Five Defendants Arrested for Stealing Millions from Government-Funded Childcare Programs for Low Income FamiliesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Michael J. Driscoll, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Susan A. Frisco, the Acting Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced the unsealing of a seven-count Indictment today charging five defendants with participating in schemes to steal millions of dollars from government-funded childcare programs for low-income families, including by stealing proceeds from a fake after-school program that received millions in funding and by using funds to purchase private real estate, items at auction, and a luxury vehicle. Four of the defendants were arrested today and will be presented before U.S. Magistrate Judge Robert W. Lehrburger in federal court in Manhattan. HAROLD SCHWARTZ was arrested and will be presented in the Southern District of Florida. The case has been assigned to U.S. District Judge Jennifer H. Rearden.
U.S. Attorney Damian Williams said: “As alleged, the defendants brazenly participated in schemes that stole from programs meant to benefit society’s most vulnerable members — children — and spent the proceeds of their crimes on items like real estate, cars, and to buy items at auction. Their schemes used children as currency, creating a fake afterschool program and ‘enrolling’ in that program children who never attended it, all so they could line their own pockets. Let me be clear: this Office is committed to rooting out the abuse of government funds intended for the public welfare.”
FBI Assistant Director Michael J. Driscoll said: “Today we allege the defendants operated multiple schemes to enrich themselves by defrauding government-funded childcare programs designed to assist needy families. The FBI remains dedicated to uncovering and eliminating the abuse of government-sponsored programs and ensuring those who exploit programs intended to assist low-income families will be held accountable.”
HHS-OIG Acting Special Agent in Charge Susan A. Frisco said: “The monies that the defendants are alleged to have stolen were intended to support New York families that greatly need financial assistance in securing safe and quality care for their children. HHS-OIG and our law enforcement partners are fervent in our efforts to detect and investigate individuals believed to defraud federally funded childcare programs and deprive deserving enrollees in an attempt to gain personal wealth.”
As alleged in the Indictment unsealed today in Manhattan federal court and statements made in court filings:[1]
MARTIN HANDLER, MENACHEM LIEBERMAN, HAROLD SCHWARTZ, ISIDORE HANDLER, and BEN WERCZBERGER participated in multiple related schemes to steal from and defraud daycares receiving funding from the City of New York’s Administration for Children’s Services (“ACS”) and the U.S. Department of Health and Human Services (“HHS”).
Among their schemes, MARTIN HANDLER, LIEBERMAN, SCHWARTZ, and ISIDORE HANDLER participated in a scheme to fraudulently claim reimbursement from ACS for the enrollment of children in a fake after-school program purportedly operated by a non-profit daycare provider (“Daycare Provider-1”), resulting in the theft of more than $1,000,000.
MARTIN HANDLER and LIEBERMAN perpetrated another fraudulent scheme against HHS by concealing their secret ownership of Daycare Provider-1, an ostensible “non-profit” entity without any legal owners that has received in excess of $90 million in federal funding since 2009. MARTIN HANDLER’s and LIEBERMAN’s secret ownership of Daycare Provider-1 allowed them to circumvent statutory and regulatory restrictions against less-than-arm’s length partnerships. MARTIN HANDLER and LIEBERMAN steered Daycare Provider-1 into partnerships with their respective for-profit daycares (“Daycare Provider-2 and Daycare Provider-3”), that resulted in millions of dollars of federal funding for Daycare Provider-2 and Daycare Provider-3.
MARTIN HANDLER, LIEBERMAN, SCHWARTZ, and ISIDORE HANDLER also submitted false information to HHS to hide their fraudulent schemes. In about December 2021, HHS initiated an investigation into Daycare Provider-1 and conveyed allegations that had arisen about LIEBERMAN’s relationship with Daycare Provider-1. MARTIN HANDLER, LIEBERMAN, SCHWARTZ, and ISIDORE HANDLER then conspired to submit a letter to the regional HHS office responding to these allegations that, among other things, falsely denied LIEBERMAN had a less-than-arm’s length relationship with Daycare Provider-1, even though, in fact, LIEBERMAN secretly owned it.
MARTIN HANDLER and BEN WERCZBERGER participated in a scheme to steal, and to launder the proceeds of their theft, from HANDLER’s for-profit daycare, Daycare Provider-2. MARTIN HANDLER and WERCZBERGER stole at least $2.8 million in federal funding intended for childcare services for low-income children in the Bronx. They carried out this theft by funneling a portion of HHS’s monthly funding to WERCZBERGER, by providing no-show jobs to WERCZBERGER’s wife and grandson, and by having Daycare Provider-2 cover the cost of a luxury SUV for WERCZBERGER’s wife.
Finally, MARTIN HANDLER himself stole funds from Daycare Provider-2’s operating expenses, including to purchase real estate, to repay a $500,000 loan to a business associate, to purchase historical items at auction, and to purchase a luxury vehicle.
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A chart containing the names of the defendants who were charged today and the charges and maximum penalties they face is attached. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Defendant
Age
Charges
Maximum Penalties
MARTIN HANDLER
Brooklyn, NY
48
Wire Fraud Conspiracy
Count One
Conspiracy to Defraud the United States
Count Three
Conspiracy to Falsify Documents and Records
Count Four
Theft of Government Funds
Count Five
Money Laundering Conspiracy
Count Six
Theft of Government Funds
Count Seven
20 years
Five years
Five years
10 years
20 years
10 years
MENACHEM LIEBERMAN
Brooklyn, New York
46
Wire Fraud Conspiracy
Count One
Aggravated Identity Theft
Count Two
Conspiracy to Defraud the United States
Count Three
Conspiracy to Falsify Documents and Records
Count Four
20 years
Two-year term consecutive to any other prison term
Five years
Five years
HAROLD SCHWARTZ
Brooklyn, New York
67
Wire Fraud Conspiracy
Count One
Conspiracy to Falsify Documents and Records
Count Four
20 years
Five years
ISIDORE HANDLER
Brooklyn, New York
37
Wire Fraud Conspiracy
Count One
Conspiracy to Falsify Documents and Records
Count Four
20 years
Five years
BEN WERCZBERGER
Brooklyn, New York
70
Theft of Government Funds
Count Five
Money Laundering Conspiracy
Count Six
10 years
20 years
Mr. Williams praised the outstanding investigative work of the FBI and HHS-OIG. Mr. Williams also thanked the U.S. Department of Agriculture, Office of the Inspector General for their assistance with this investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Daniel Wolf and Mollie Bracewell are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Federal, State, and Local Law Enforcement Join Forces to Disrupt Violent Crime, Firearms, and Drug Trafficking in Multiple Jurisdictions Across the CountryRead the Press Release
“Today, the Justice Department has taken several significant enforcement actions to disrupt large-scale illegal gun and drug trafficking operations,” said Attorney General Merrick B. Garland. “I am grateful to all of the Department’s agents, prosecutors, and staff involved in these actions, as well as to our state and local partners, for their tireless work. The actions taken today represent the work that is being done by this Department every single day to disrupt violent crime, combat gun violence, and get deadly fentanyl out of our communities.”
Earlier today, at the federal courthouse in Brooklyn, a seven-count indictment was unsealed charging David Mccann, Tajhai Jones, Raymond Minaya, and Calvin Tabron with allegedly conspiring to illegally traffic more than 50 firearms. Mccann and Minaya are also charged with conspiracy to distribute and possess with intent to distribute cocaine base; Mccann is additionally charged with conspiracy to distribute and possess with intent to distribute fentanyl. Mccann, Jones, Minaya, and Tabron were arrested this morning. Mccann and Minaya are scheduled to be arraigned this afternoon before United States Magistrate Judge Taryn A. Merkl. Jones and Tabron will be arraigned in Virginia.
This prosecution is the first in New York, and among the first in the country, to charge the gun trafficking provisions of the Bipartisan Safer Communities Act, which Congress and the President enacted in June 2022. The Act is the first federal statute specifically designed to target gun trafficking. Among other provisions, it creates a standalone firearm trafficking conspiracy offense, which the government has charged in this case to hold accountable those who conspire to illegally sell firearms. The Act provides for sentences of up to 15 years’ imprisonment.
Read more about the case here.
In the Northern District of West Virginia today, two Baltimore-based drug trafficking organizations that supplied large amounts of fentanyl to West Virginia and caused at least two deaths have been dismantled by separate federal indictments that were unsealed today.
Thirty-four people from Maryland, Virginia, and West Virginia were indicted on charges related to the sale of fentanyl, heroin, and other drugs in Hampshire County and Mineral County. The drugs distributed led to a spike in overdoses in the region, both fatal and non-fatal. Much of the fentanyl had high levels of purity and had a purple tint to distinguish it from drugs sold by competitors.
In the first indictment, Kentrel Anthony Rollins, aka T-Rock, 30, of Baltimore, Maryland, is alleged to be the leader of a fentanyl distribution operation in Hampshire County and elsewhere from January 2020 to October 2021. Court documents show that in addition to the sale of drugs, there was firearms trafficking and the trading of guns for drugs. Many of the firearms were acquired by a straw purchaser on behalf of the organization. 12 people are charged in this matter, which also includes the alleged trafficking of heroin, methamphetamine and cocaine.
In the second indictment, Sean Jarred Davis, 31, also of Baltimore, is alleged to be the leader of a conspiracy to distribute more than 40 grams of fentanyl, as well as heroin, in Hampshire County and elsewhere from February 2021 to January 2023. A total of 22 individuals are charged in the case.
Read more about the case here.
And in the Southern District of Georgia today, 76 defendants are named in a newly unsealed federal indictment describing a massive drug trafficking investigation tied to the Ghost Face Gangsters criminal street gang that includes allegations of multiple deaths from illegal drug overdoses.
As announced today at a multi-agency news conference held at Glynn County Police Department Headquarters in Brunswick, Georgia, the indictment in USA v. Alvarez et. al, dubbed Operation Ghost Busted, charges 76 defendants with involvement in a drug trafficking conspiracy that distributed large amounts of methamphetamine, fentanyl, heroin, and alprazolam in the greater Glynn County area. The primary conspiracy charge in the indictment carries a mandatory minimum sentence of 10 years in prison, up to life, along with substantial financial penalties and a period of supervised release following any prison term.
Read more about the case here.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty
Federal Law Enforcement Partners Commemorate National Human Trafficking Awareness Day--January 11, 2023Read the Press Release
PORTLAND, Ore.—Today, federal law enforcement partners from the U.S. Attorney’s Office for the District of Oregon, FBI Portland Field Office, and Homeland Security Investigations Seattle Field Office join to commemorate National Human Trafficking Awareness Day and reaffirm their commitment to combating all forms of human trafficking.
“Human trafficking devastates families and communities and preys on the most vulnerable members of our society. As a federal prosecutor, I’ve seen the extraordinary suffering survivors have endured and the incredible strength, courage, and resolve they demonstrate as they rebuild their lives. Today is a day we honor these survivors,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Due to the I-5 corridor, human trafficking remains a huge problem throughout the state of Oregon and sadly, our Violent Crime Squad and Child Exploitation Task Force have some of the busiest investigators in the FBI's Portland office. Traffickers often lure vulnerable victims with promises of a better life and then use violence and manipulation as a means to control,” said, Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “The FBI, along with our law enforcement partners, is working every day to protect those victims who are being exploited from further abuse. Help us help them. If you have information about human trafficking or child exploitation, please contact law enforcement immediately.”
“Our nation is one that places a high value on opportunity, and through our many partnerships we can ensure that those opportunities are not poisoned by criminals who utilize slavery as cruel means to a harmful end,” said Special Agent in Charge (SAC) Robert Hammer, who oversees HSI operations in the Pacific Northwest. “HSI continues to fight human trafficking regardless of the form it takes, and will use our expertise in investigating transnational crime to prevent the exploitation of people through forced labor, domestic servitude, or sex trafficking.”
Human trafficking, sometimes referred to as trafficking in persons or modern slavery, is a serious federal crime involving the exploitation of individuals for labor, services, or commercial sex through force, fraud, or coercion. This coercion can be subtle or overt, physical or psychological. Exploitation of a minor for commercial sex is human trafficking, regardless of whether any form of force, fraud, or coercion was used.
Victims of human trafficking can be anyone regardless of race, color, national origin, disability, religion, age, gender, sexual orientation, gender identity, socioeconomic status, education level, or citizenship status. Although there is no defining characteristic that all human trafficking victims share, traffickers around the world frequently prey on individuals who are poor, vulnerable, living in unsafe or unstable environments, or are in search of a better life.
In the U.S., trafficking victims can be American or foreign citizens. Some of the most vulnerable populations for trafficking in the U.S. include American Indian and Alaska Native communities, LGBTQ individuals, individuals with disabilities, undocumented migrants, runaway and homeless youth, temporary guest-workers, and low-income individuals.
The U.S. Attorney’s Office for the District of Oregon is committed to continuing its victim-centered, trauma-informed approach to detecting hidden human trafficking crimes, holding perpetrators accountable, and helping to restore the lives of survivors, while strengthening strategic anti-trafficking partnerships.
If you or someone you know is in immediate danger, please call 911.
If you believe you or someone you know is a victim of human trafficking or may have information about a trafficking situation, please call the National Human Trafficking Hotline toll-free at 1-888-373-7888 or visit https://humantraffickinghotline.org. You can also text the National Human Trafficking Hotline at 233733.
January is National Slavery and Human Trafficking Prevention Month. Every year since 2010, the President has dedicated the month to raising awareness about the different forms of human trafficking and educating people about this crime and how to spot it. To learn more, visit https://www.whitehouse.gov/briefing-room/presidential-actions/2022/12/30/a-proclamation-on-national-human-trafficking-prevention-month-2023/.
Federal Jury Finds Convicted Felon Guilty of Firearm PossessionRead the Press Release
Memphis, TN – After a two-day trial, Gary Crawford, 32, has been found guilty of being a convicted felon in possession of a firearm. United States Attorney Kevin Ritz announced the guilty verdict today.
According to information presented in court, on October 27, 2021, it was reported that a male on Porter Street and Ioka Avenue was armed with a machete. Memphis Police Officers responded to the 700 block of Porter and spoke with a complainant who advised that a man named Gary from the neighborhood threatened her with a machete and left it on her porch. Officers recovered the machete.
While still on the scene, officers responded to another call that a man fitting the same description began firing shots in the area. Crawford was found sitting on a couch on the porch of a home on Ioka Avenue. After noticing the officers, Crawford stood up and began waving a firearm and yelling at the officers. He was ordered to drop the weapon but did not comply and a standoff began. A short time later, the firearm fell from his lap, he stood up, walked off the porch, and undressed in the front yard before officers rushed and took him into custody. A Smith & Wesson 9mm caliber pistol was recovered where Crawford was sitting.
As a result of his felony convictions, Crawford is prohibited by federal law from possessing firearms and ammunition.
Sentencing is set on April 7, 2023, before United States District Judge Samuel H. Mays.
This case was investigated by Project Safe Neighborhoods (PSN), and the Memphis Police Department. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Kevin Ritz thanked Assistant United States Attorneys Regina Thompson and Stephen Hall, who prosecuted this case, as well as the law enforcement partners who investigated the case.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Federal Jury Finds Cherokee, N.C. Man Guilty of Firearms OffenseRead the Press Release
ASHEVILLE, N.C. – A federal jury in Asheville has convicted Tarrell Leshaun Williams, 42, of Cherokee, N.C., of possession of a firearm by a convicted felon, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty, Jerin Falcon, Deputy Associate Director of the Bureau of Indian Affairs (BIA), Division of Drug Enforcement, and Chief David Zack of the Asheville Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, on February 11, 2022, law enforcement officers attempting to serve Williams with a federal arrest warrant located the defendant at an apartment complex in Asheville. According to trial evidence, prior to effectuating the arrest warrant, law enforcement observed Williams placing an item – later identified as a Taurus 9mm firearm – in the trunk of his vehicle. Williams was arrested shortly thereafter. Williams has prior felony criminal convictions and he is prohibited from possessing a firearm.
Williams remains in federal custody. A sentencing date has not been set.
In making today’s announcement, U.S. Attorney King thanked the DEA’s Asheville Post of Duty, the BIA, and the Asheville Police Department for their investigation of the case and the Bureau of Alcohol, Tobacco, Firearms & Explosives for their substantial assistance.
Assistant U.S. Attorneys John Pritchard and Alexis Solheim of the U.S. Attorney’s Office in Asheville prosecuting the case.
Federal Grand Jury Indicts Hopkins County Man on Multiple Counts of Sexually Exploiting ChildrenRead the Press Release
Bowling Green, KY – A federal grand jury in Bowling Green returned a five-count indictment today charging a Hopkins County man with producing and possessing child pornography.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jerry C. Templet, Jr. of the U.S. Department of Homeland Security Investigations made the announcement.
According to the indictment, Steven Ray Buchanan, 45, of Madisonville, Kentucky, was charged with four counts of production of child pornography and one count of possessing child pornography.
The defendant will make an initial court appearance on a later date before a U. S. Magistrate Judge of the U. S. District Court for the Western District of Kentucky in Owensboro. Buchanan faces a minimum sentence of 15 years and a maximum sentence of 140 years in prison. If convicted, a federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors. There is no parole in the federal system.
This case is being investigated by the U.S. Department of Homeland Security Investigations.
This case is being prosecuted by Assistant United States Attorneys Joel King and A. Spencer McKiness.
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. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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FBI Task Force Investigation Results in One of the Largest-Ever Drug Seizures in Yakima County, WashingtonRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that the FBI’s Safe Streets Task Force, conducted a comprehensive federal investigation concerning drug trafficking within the City of Yakima. The investigation culminated with the execution of multiple federal search warrants in Yakima County.
According to law enforcement sources, on December 28, 2022 the FBI Task Force seized more than approximately 120,000 fentanyl-laced pills and more than 42 pounds of methamphetamine. The FBI and its local partners also seized a loaded Beretta pistol and approximately $152,000 in U.S. Currency, including approximately $100,000 that was buried outside the residence. In connection with the seizure, Eliseo Equihua-Zamora was indicted on January 10, 2023, with Possession with Intent to Distribute Over 50 Grams of Actual (pure) Methamphetamine, Possession with Intent to Distribute over 400 grams of Fentanyl, and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Equihua-Zamora is presumed innocent until proven guilty and is facing charges in the United States District Court for the Eastern District of Washington.
U.S. Attorney Waldref commended the joint efforts of law enforcement for removing such a large quantity of illegal narcotics from the community. U.S. Attorney Waldref stated, “Illegal narcotics, and fentanyl in particular, have become a scourge across the United States. I’m grateful to the FBI and our critical task force partners for working together to combat this dangerous poison. Without their combined efforts, more than 100,000 deadly fentanyl-laced pills and more than 40 pounds of methamphetamine would not have been removed from the community. As a result, our neighborhoods and communities are safer and stronger.”
“Every time the FBI and our partners seize these dangerous and highly potent drugs, we are also removing from the community hundreds of thousands of opportunities for someone, perhaps even an unknowing young person, to make one bad choice and become addicted or overdose,” said Richard A. Collodi, Special Agent in Charge of the FBI Seattle Field Office. “As the drug landscape changes in our country, and fentanyl is hiding in unknown quantities amongst other drugs or being represented as another drug entirely, it is critical that law enforcement disrupt the flow of this poison into Washington state.”
“The recent successful results of an investigation by the FBI Task Force highlights the importance of federal and local agencies working together for public safety,” stated Yakima County Sheriff Robert Udell. He continued, “The investigation seized a significant quantity of fentanyl and methamphetamine in the Yakima area, and these possibly fatal illegal drugs were removed from our community. I am pleased with the results of the FBI Task Force, and our deputies look forward to working together with the Task Force to achieve further success in removing illegal drugs from our community.”
This ongoing case is being investigated by the FBI Task Force, which members include the Yakima County Sheriff’s Office, the Washington State Department of Corrections, Homeland Security Investigations, and United States Border Patrol. The FBI Task Force was assisted by the Moxee Police Department and the Snohomish Regional Drug Task Force. This case is being prosecuted by Assistant United States Attorney Tom Hanlon.
An indictment and a complaint are merely allegations, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
1:23-CR-2004-SAB
El Paso Man Sentenced to 12 Years on Child Pornography ChargesRead the Press Release
EL PASO – An El Paso man was sentenced Tuesday to 12 years in prison and a lifetime of supervised release for charges related to receipt and possession of child pornography.
According to court documents, Peter Sebastian Felix, 29, had been exchanging sexually explicit images with a minor. Felix was in a rock band and used his popularity to gain the trust of underage girls. Homeland Security Investigations agents discovered a USB drive containing several video files of the minor engaging in sexual acts. Agents also searched an external hard drive, revealing approximately 50 files containing suspected child sexual exploitation material, one of the files depicting a minor between eight and 10 years old.
Felix pleaded guilty in June 2022 to one count of receipt and distribution of child pornography and one count of possession of prepubescent child pornography. A restitution hearing is scheduled for March.
“Protecting children, who are among the most vulnerable victims in this country, will always be a priority,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “We and our partners are always here to identify these predators, put an end to their harmful behavior, and bring them to justice.”
“Justice has been served. However, no sentence is lengthy enough to penalize predators for the lifetime of pain and suffering the innocent children whom they’ve victimized will suffer,” said Special Agent in Charge Francisco B. Burrola of the HSI El Paso Division. “HSI continues to work tirelessly with our law enforcement partners to investigate, arrest and prosecute child predators in our shared mission to protect children and prosecute perpetrators whose behavior has no place in our society.”
HSI investigated the case.
Assistant U.S. Attorney Sarah Valenzuela prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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East Windsor Man Admits Recording His Sexual Abuse of MinorRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARK ROMAN, 54, of East Windsor, waived his right to be indicted and pleaded guilty today in Hartford federal court to production and possession of child pornography.
According to court documents and statements made in court, law enforcement began investigating Roman after Yahoo! reported to the National Center for Missing and Exploited Children (NCMEC) that Roman’s email account was transmitting images of child sexual abuse. Investigators determined that Roman’s email account also contained voyeuristic images and videos of naked children that appeared to be homemade.
On November 2, 2021, the Connecticut State Police and East Windsor Police Department executed a state search warrant at Roman’s residence and seized Roman’s iPhone, laptop and computer storage devices. Analysis of the seized revealed more than 1,000 images and videos of child pornography, including images and videos of Roman sexually abusing a girl who was between the ages of six and eight. The seized images also included numerous voyeuristic videos that Roman secretly took of the minor victim, another minor female who was between the ages of two and four, and adult victims.
Roman pleaded guilty to one count of production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and one count of possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on April 5.
Roman has been detained since his arrest on November 29, 2021.
This matter has been investigated by Homeland Security Investigations (HSI) and the Connecticut State Police, with the assistance of the East Windsor Police Departments. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
U.S. Attorney Avery thanked the Hartford State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
East St. Louis Man Sentenced to 104 Months for Possessing a Firearm with an Automatic SwitchRead the Press Release
EAST ST. LOUIS, Ill. – An East St. Louis man received a prison sentence of 104 months on Tuesday in a U.S. District Court after admitting to possession of a firearm with a high-capacity magazine that operated as a machine gun as well as a 50-round drum magazine.
Derron Smith-Johnson, 28, pled guilty to Unlawful Possession of a Firearm by a Felon and Possession of a Machine Gun due to the firearm having an automatic switch.
According to court documents, the Public Safety Enforcement Group in East St. Louis was investigating three shootings and a homicide used with the same gun based on lab analysis in February 2022. The crimes happened within a one-week time frame and involved a silver GMC Acadia.
Video footage led PSEG to identify Smith-Johnson during the investigation, and agents visited an apartment he was known to occasionally stay at in Belleville, Illinois. Shortly after arriving, Smith-Johnson was taken into custody, and the homeowner consented to a search of the premises.
Stowed away in an air return vent was a Glock 23 40 caliber pistol with an automatic rifle switch loaded with an extended magazine containing 23 live rounds. Agents also recovered a 50-round drum magazine loaded with 50 live rounds of 40 caliber ammunition, as well as 43 rounds of 357 SIG ammunition in a bedroom dresser. A lab determined Smith-Johnson’s fingerprints to be on the Glock 23 pistol, which was later confirmed to be linked through ballistics comparisons to the three shootings and homicide under investigation by PSEG.
“Ballistic evidence can confirm if the same gun is used in multiple instances, and the recovered firearm was used in a week-long, violent crime spree,” said U.S. Attorney Rachelle Aud Crowe. “The Public Safety Enforcement Group is working day in and day out to improve protections for the East St. Louis community, and I applaud their efforts.”
“This sentencing sends a clear message to those that commit crimes of violence and illegally possess and use machine gun conversion devices (commonly referred to as switches), we are tired of it,” said Fred Winston, Special Agent in Charge of the ATF’s Kansas City Field Division. “This investigation utilized the very best combination of crime gun intelligence through ATF’s National Integrated Ballistic Information Network (NIBIN) and collaborative law enforcement partnerships to identify shooters in efforts to make our streets safer.”
In addition to the 104-month prison sentence, Smith-Johnson also received three years of supervised release and was ordered to pay a $200 fine and $200 in special assessments.
The ATF led the investigation with assistance from PSEG and the Illinois State Police. Assistant U.S. Attorney Ali Burns prosecuted the case.
East Providence Man Sentenced for Fraudulently Applying for COVID-Relief Business LoansRead the Press Release
PROVIDENCE, R.I. – An East Providence man who submitted eight fraudulent loan applications seeking more than $375,000 in COVID-19 relief business loans guaranteed by the federal Small Business Administration has been sentenced to four years in federal prison, announced United States Attorney Zachary A. Cunha.
Kevin Mancieri, 49, submitted fraudulent Paycheck Protection Program (PPP) applications to secure the loans, complete with fabricated bank records and tax forms. In addition to submitting two fraudulent applications in his own name, Mancieri prepared fraudulent applications in the names of four other individuals that he was associated with. Additionally, Mancieri used a stolen identity and submitted a fraudulent PPP application in that person’s name as well, seeking an additional $60,710 in loans.
According to information presented to the court, Mancieri submitted fraudulent PPP applications seeking a total of $375,928, resulting in a loss of $152,246. Of that amount, Mancieri personally obtained $92,438.
Mancieri pleaded guilty on August 15, 2022, to conspiracy to commit bank fraud, access device fraud, and aggravated identity theft. Mancieri was sentenced today by U.S. District Court Judge William E. Smith to forty-eight months in federal prison to be followed by three years of federal supervised release. Additionally, Mancieri was fined $10,000 and ordered to pay restitution in the amount of $152,246.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the FBI and Internal Revenue Criminal Investigation.
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Douglas County Man Sentenced to Five Years in Federal Prison for Manufacturing Illegal Short-Barreled Rifle and Selling DrugsRead the Press Release
EUGENE, Ore.—A Douglas County, Oregon man was sentenced to federal prison today for manufacturing and selling an illegal short-barreled rife and selling several ounces of methamphetamine.
Gregory Wayne Ferguson, 46, was sentenced to 60 months in federal prison and 4 years’ supervised release.
According to court documents, in January 2021, law enforcement learned that Ferguson had claimed to manufacture “ghost guns,” do-it-yourself firearms made from readily-available materials and components untraceable by law enforcement. Ferguson further claimed to have manufactured a short-barreled rifle that could be made into a fully-automatic weapon. In late January 2021, Ferguson test-fired the unmarked, short-barreled rifle with a prospective buyer and then sold it for $1,500. One week later, Ferguson sold 110 grams of methamphetamine to the same individual.
On March 15, 2021, Ferguson was charged by criminal complaint with illegally possessing a firearm made in violation of the National Firearms Act and distributing methamphetamine. Ferguson was arrested the next day. On September 21, 2022, he pleaded guilty to both charges.
Today’s sentencing resolves Ferguson’s federal criminal case and is expected to resolve several pending felony cases in Douglas County Circuit Court.
This case was investigated by ATF with assistance from the Douglas Interagency Narcotics Team, Douglas County Sheriff’s Office and Oregon State Police. It was prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, in partnership with Chief Deputy District Attorney Allison Eichmann of the Douglas County District Attorney’s Office.
This case is part of Project Safe Neighborhoods (PSN), 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.
Formed in October 1989, the Douglas Interagency Narcotics Team is a special investigative unit formed to combat illegal narcotics activity in Douglas County. DINT member agencies include Douglas County, including the Douglas County Sheriff and District Attorney’s Offices, the Oregon National Guard, Oregon State Police, and Roseburg Police Department.
Del Rio Teen Mentor and School Tutor Sentenced to 18 Years on Child Pornography ChargesRead the Press Release
DEL RIO, Texas – A Del Rio man was sentenced Monday to 220 months in prison for receipt and distribution of child pornography.
According to court documents, Oscar Barrera Jr., 29, mentored at-risk teens, worked as a tutor in the Del Rio school system and served as a youth counselor at church retreats. On June 17, 2021, Homeland Security Investigations (HSI) special agents conducted a search warrant on Barrera’s residence and confiscated his cell phone, which had more than 1,100 images and nearly 700 videos of child sexual abuse material.
“It’s unsettling when you learn that someone working so closely with our children and in our communities can possess such predatory tendencies,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Thanks to our federal agency partners like Homeland Security Investigations, we are able to ensure these sexual abusers can no longer prey on our children.”
“The heavy sentence imposed on Mr. Barrera sends a clear message that there are serious consequences for those who exploit children in any way,” said Acting Special Agent in Charge Craig Larrabee of the HSI San Antonio Division. “HSI agents make it a top priority to protect children from victimization by working to investigate predators involved with the production, distribution and possession of child sexual abuse material and ensure they are held accountable for their heinous actions. HSI will continue to dedicate our resources to identify these individuals and bring them to justice.”
On April 4, 2022, Barrera pleaded guilty to one count of distribution of child pornography and one count of receipt of child pornography.
HSI investigated the case.
Assistant U.S. Attorneys Rex Beasley and Tyler Fleming prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Covington Man Sentenced for Possessing Thirty-Three Firearms in Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that MICHAEL MALONE, age 38, a resident of Covington, Louisiana, was sentenced on January 10, 2023 in the United States District Court in connection with his plea of guilty to a one-count indictment charging him with Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
United States District Court Judge Greg G. Guidry sentenced MALONE to 82 months of imprisonment in the Bureau of Prisons. Following his term of imprisonment, MALONE will be placed on supervised release for a period of three years. The court did not impose a fine, but imposed a mandatory special assessment fee of $100.00.
On the night of February 3, 2022, at approximately 11:30 p.m., St. Tammany Parish deputies were on patrol on Highway 434 in Lacombe when they observed MALONE’s silver Toyota Highlander, parked in front of the 434 Mini Storage. Deputies observed an individual inside of the vehicle. Concerned that a burglary could have been in progress, the deputies approached MALONE’s vehicle.
Upon approaching the vehicle, deputies spoke with MALONE’s girlfriend, who told the deputies that MALONE was inside of his storage unit. The deputies observed that a number of miscellaneous items were located outside of the unit, but that the unit’s door was closed. MALONE was not visible to the deputies. As the deputies continued to approach the unit, they heard the sound of a gun being racked. Upon opening the door to the storage unit, the deputies observed MALONE in possession of a firearm. Deputies located 33 firearms inside of the unit. Deputies detained MALONE. MALONE admitted to being on probation at the time of his arrest and being a convicted felon with two convictions for possession of Methylenedioxymethamphetamine (MDMA) (ecstasy), simple burglary of an inhabited dwelling, and two counts of simple burglary.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Tammany Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Covington Man Sentenced for Possessing Thirty-Three Firearms in Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that MICHAEL MALONE, age 38, a resident of Covington, Louisiana, was sentenced on January 10, 2023 in the United States District Court in connection with his plea of guilty to a one-count indictment charging him with Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
United States District Court Judge Greg G. Guidry sentenced MALONE to 82 months of imprisonment in the Bureau of Prisons. Following his term of imprisonment, MALONE will be placed on supervised release for a period of three years. The court did not impose a fine, but imposed a mandatory special assessment fee of $100.00.
On the night of February 3, 2022, at approximately 11:30 p.m., St. Tammany Parish deputies were on patrol on Highway 434 in Lacombe when they observed MALONE’s silver Toyota Highlander, parked in front of the 434 Mini Storage. Deputies observed an individual inside of the vehicle. Concerned that a burglary could have been in progress, the deputies approached MALONE’s vehicle.
Upon approaching the vehicle, deputies spoke with MALONE’s girlfriend, who told the deputies that MALONE was inside of his storage unit. The deputies observed that a number of miscellaneous items were located outside of the unit, but that the unit’s door was closed. MALONE was not visible to the deputies. As the deputies continued to approach the unit, they heard the sound of a gun being racked. Upon opening the door to the storage unit, the deputies observed MALONE in possession of a firearm. Deputies located 33 firearms inside of the unit. Deputies detained MALONE. It was determined that MALONE was on probation at the time of his arrest and being a convicted felon with two convictions for possession of Methylenedioxymethamphetamine (MDMA) (ecstasy), simple burglary of an inhabited dwelling, and two counts of simple burglary.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Tammany Parish Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Convicted Felon Sentenced to 41 Months Prison for Possessing Firearms and AmmunitionRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Shawn Michael Palacios Rosario, age 41, from Guam, was sentenced to 41 months imprisonment by the District Court of Guam. Rosario was convicted of two counts of Felon in Possession of Firearms and Ammunition, in violation of 18 U.S.C. § 922(g)(1). The Court also ordered three years of supervised release, 100 hours of community service, and mandatory $200 special assessment fee.
On February 7, 2022, Guam Police Department officers saw a motorcycle being driven at a high rate of speed in Dededo, Guam. The motorcycle was not displaying a license plate. The rider continued speeding, attempting to evade police, before crashing into a parked vehicle. The rider was identified as Rosario. Officers discovered that he possessed a .380 caliber pistol and 18 rounds of ammunition. Under federal law, Rosario was prohibited from possessing firearms or ammunition due to a prior felony conviction in the District Court of Guam.
On May 17, 2022, the U.S. Marshals Fugitive Task Force served an outstanding arrest warrant on Rosario at a residence in Dededo. Federal law enforcement discovered that Rosario had a pouch next to him that contained a .40 caliber pistol and four rounds of ammunition. They also found a pipe, syringe, and hypodermic needle, in addition to three grams of methamphetamine. Under federal law, drug users are also prohibited from possessing firearms or ammunition.
“Rosario’s possession of even a single round of ammunition would have resulted in similar consequences,” stated United States Attorney Anderson. “Felons and firearms are a dangerous combination for our communities. We will continue to work closely with our partners to hold these criminals accountable.”
“We commend the Guam Police Department officers and the U.S. Marshals Fugitive Task Force for their work getting this felon off the streets,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Felons cannot possess firearms or ammunition, and Mr. Rosario compounded it by possessing illegal narcotics. Hopefully this sentence will give him time to reflect on his actions and change his ways.”
This case is part of Project Safe Neighborhoods (PSN), 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 works 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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Guam Police Department conducted the investigation that resulted in the indictment. The investigation was also facilitated by the U.S. Marshals Fugitive Task Force. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Colchester Man Charged in Connection with Swanton Drug-Related HomicideRead the Press Release
Burlington, Vermont - The United States Attorney’s Office stated Dominique Troupe, 36, of Colchester, was arraigned today before United States Magistrate Judge Kevin J. Doyle in connection with a Second Superseding Indictment in which Troupe and others are charged with gun and drug crimes. Troupe is charged with one count of conspiracy to distribute cocaine base, one count of aiding and abetting the use of a firearm during and in relation to the drug conspiracy, one count of conspiring to commit a robbery of drugs and money by threat of force, and one count of possession with intent to distribute cocaine base.
According to court documents, the first three counts against Troupe relate to the February 2, 2022 shooting death of Elijah Oliver in Swanton, Vermont. In its motion seeking Troupe’s detention, the United States asserts that Troupe was a primary source of supply for crack cocaine being sold out of a residence on River Street in Swanton, and that Oliver was a rival Swanton drug dealer. According to the detention motion, to protect their crack cocaine distribution operation, Troupe and others implemented a plan to carry out an armed robbery of Oliver, seeking to steal drugs and money, and during the attempted robbery Oliver was shot and killed.Troupe has been in federal custody since his September 7, 2022 arrest for possessing with intent to distribute cocaine base. In today’s hearing, United States Magistrate Judge Doyle ordered Troupe to remain detained during the pendency of the prosecution. Troupe and his co-defendants will have until March 20 to file pre-trial motions.
If Troupe is convicted of all charges, he will face a mandatory minimum 15-year prison sentence, with a maximum possible sentence of life; any sentence would be advised by the Federal Sentencing Guidelines.
The United States Attorney emphasizes that the indictment is an accusation only and that the defendant is presumed innocent until and unless proven guilty.
This case has been investigated by the Vermont State Police, in coordination with the United States Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Franklin County Sheriff Department, and the Swanton Police Department.
The Assistant United States Attorney handling the prosecution is Michael Drescher. Troupe is represented by Mark Kaplan, Esq. of Burlington.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psnChild Predator to Serve 20 Years in Prison, Pay $100K to VictimsRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced last week to serve 20 years in prison and pay $100,000 in restitution for the sexual exploitation of children.
According to court documents, Tanner Real, 22, extorted 10 minor victims into producing sexually explicit material for him. In addition to his prison sentence, Real was sentenced to 20 years of supervised release.
“The sexual exploitation of children is a horrendous crime,” said U.S. Attorney Jaime Esparza of the Western District of Texas. “Our office, along with our law enforcement partners, will continue to do everything in our power to obtain justice for these victims.”
“Every day, all across this country and here in our region, the FBI and our law enforcement partners are working tirelessly to rescue vulnerable children from the criminals who are engaged in these terrible crimes,” said Special Agent in Charge Oliver E. Rich Jr. of the FBI San Antonio Division. “Thankfully, with this sentencing, this individual will now be behind bars for a very long time.”
The Boerne Police Department investigated the case with the assistance of the FBI.
Assistant U.S. Attorney Tracy Thompson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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California-Based Company, Company President Plead Guilty in Scheme to Violate the Export Control ActRead the Press Release
PROVIDENCE – Tao Jiang, the president and owner of Broad Tech System, Inc., a California-based electronics distribution company, today admitted to a federal judge in Providence that he and his company participated in a conspiracy to conceal information from the U.S. Department of Commerce and from U.S. Customs and Border Protection as part of a scheme to illegally export chemicals manufactured and/or distributed by a Rhode Island-based company to a technology company in China with ties to the Chinese military, announced United States Attorney Zachary A. Cunha.
Tao Jiang, aka Jason Jiang, 53, of Riverside, CA, and Broad Tech Systems, Inc., pleaded guilty as charged by way of indictment to conspiracy, violation of the Export Control Act, and money laundering conspiracy.
Jiang and Broad Tech System admitted that they conspired together and with Bohr Winn-Shih, an engineer employed at Broad Tech System, to order the chemicals Photoresist and HPRD (Developer) from a North Kingstown-based manufacturer, then knowingly submitted false and misleading documentation to the U.S. Government and to shipping companies in an effort to have those products illegally shipped to a company in China, in violation of the Export Control Reform Act.
The intended recipient of the shipment, a state-owned Chinese entity in Nanjing, China, mainly engages in the manufacturing of electronic components and the research, development and production of core chips and key components in China’s military strategic early warning systems, air defense systems, airborne fire control systems, manned space systems, and other national large-scale projects. Photoresist and HPRD are essential to the chip manufacturing process.
The Chinese company is on a U.S. government list of businesses that are not permitted to receive products manufactured in the United States.
In October 2018, the Customs and Border Protection National Targeting Center alerted the U.S. Department of Commerce (DOC) of an intended export of 58 gallons of Photoresist to the China-based company. The product was returned to the manufacturer. Several days after the shipment was halted, the Rhode Island manufacturer received a call from Jiang, acting on behalf of Broad Tech System, seeking to purchase 94 gallons of Photoresist, and asking that it be shipped to a different China-based company. The manufacturer communicated to DOC agents that they found this to be suspicious because they had not done business with Broad Tech in the past; the quantity of Photoresist ordered was unusually significant; and the request came just days after the first shipment had been recalled. It was determined by DOC agents that Jiang, Shih and Broad Tech concealed the intended recipient, and that the shipment’s final destination was actually the Nanjing-based company controlled by the Chinese government.
According to information presented to the court, on January 29, 2019, Broad Tech received a wire transfer of $65,984 to its bank account within the United States, representing payment for the 58 gallons of Photoresist. It was determined that the wire transfer originated from an account controlled by the Nanjing, China-based company.
Jiang and Broad Tech System are scheduled to be sentenced on April 11, 2023. The defendants’ sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
Bohr Winn-Shih, 65, of Ontario, CA, pleaded guilty on May 11, 2021. Winn-Shih was sentenced on August 3, 2021, to one year of probation.
The cases are being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The matter was investigated by the U.S. Department of Commerce and U.S. Customs and Border Protection.
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California Man Sentenced to over 10 Years in Federal Prison for Drug TraffickingRead the Press Release
FORT SMITH – A Redlands, California man was sentenced today to 121 months in prison followed by five years of supervised release on one count of Possession with the Intent to Distribute Heroin. The Honorable Judge P.K. Holmes, III, presided over the sentencing hearing in the United States District Court in Fort Smith.
According to court documents, on January 22, 2022, a trooper with the Arkansas State Police stopped Pedro Armando Nava, Jr., age 34, for operating a vehicle with an expired registration sticker on the license plate. The stop occurred on Interstate 40 in Crawford County, Arkansas. Upon making contact with the two occupants of the vehicle, the trooper detected the odor of marijuana emitting from the vehicle.
The trooper spoke with the occupants of the vehicle separately and obtained conflicting information regarding their travels.
After Nava admitted to having a marijuana joint in the vehicle, a search was conducted. The search resulted in troopers locating and seizing one (1) marijuana joint and four (4) suitcases containing eight (8) packages of narcotics.
All eight (8) packages were sent to the Drug Enforcement Adminiatration (DEA) crime lab for further testing. The DEA crime lab found the following substances and amounts: 7,451 grams of heroin and 3,016.3 grams of cocaine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Arkansas State Police and the Drug Enforcement Administration investigated the case.
Assistant U.S. Attorney Devon Still prosecuted the case.
California Man Gets 8-Year Prison Term for Transporting Kilos of Meth to Western PARead the Press Release
PITTSBURGH, PA – A resident of Stockton, California has been sentenced in federal court to 100 months of imprisonment followed by four years of supervised release on his conviction for violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy K. Chung announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Jose Villalobos, age 41.
According to information presented to the court, Villalobos transported between five and 15 kilograms of methamphetamine between methamphetamine suppliers in California that was then sent to methamphetamine distributors located in the Western District of Pennsylvania.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball prosecuted this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
California Man Convicted of Bismarck Bank RobberyRead the Press Release
BISMARCK – United States Attorney Mac Schneider announced that on January 11, 2023, following a 2-day trial, a jury returned a guilty verdict on a charge of Bank Robbery against Robert Andrew Wolter, age 38, from San Jose, California, who robbed the Expressway Avenue Branch of U.S. Bank in Bismarck, ND. U.S. District Judge Daniel M. Traynor presided over the trial.
On January 15, 2019, shortly after 9:00 a.m., a man wearing a disguise, including a mask, wig, and hat entered the U.S. Bank Branch on Expressway Avenue in Bismarck, ND, and announced that this was a bank robbery and directed bank personnel to place money into a bag. After obtaining money from the employees, the man fled the bank.
Three weeks later, on February 5, 2019, Robert Andrew Wolter was at the Newark, New Jersey airport, intending to fly to Ghana, Africa. During an outbound examination conducted by Customs and Border Protection, Wolter underdeclared the amount of currency that he had in his possession. While Wolter was in custody in New Jersey, further investigation in San Jose, California, led to the discovery of evidence related to the Bismarck U.S. Bank robbery.
Wolter was indicted on the bank robbery charge in North Dakota on April 3, 2019.
The charge of bank robbery carries a statutory maximum penalty of 20 years in federal prison and a $250,000 fine. Sentencing of Wolter will be scheduled at a later date.
"The arrest and conviction of this bank robber is a product of cross-country cooperation," US Attorney Mac Schneider said. "I congratulate our federal and local law enforcement partners and our trial team for successfully administering justice in this case."
The case was investigated by the Federal Bureau of Investigation, Bismarck Police Department, United States Department of Homeland Security/Customs and Border Protection (New Jersey), and the San Jose Police Department (California), and prosecuted by Assistant U.S. Attorneys David Hagler and Jonathan O’Konek
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Bridgeport Man Sentenced to Prison for Child Exploitation OffenseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MICHAEL NASTU, 63, of Bridgeport, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 18 month of imprisonment, followed by three years of supervised release, for a child exploitation offense.
According to court documents and statements made in court, in March 2021, Nastu, using the Kik social media application, initiated a chat with an FBI Online Covert Employee (“OCE”) who was posing as a 14-year-old girl from Connecticut. Between March 31 and June 25, 2021, Nastu sent the OCE sexually explicit messages and several pictures and videos of male genitalia, and he attempted to entice the OCE to send him child pornography in return. Although they had multiple text exchanges about meeting in person, Nastu never travelled to meet the OCE.
Nastu was arrested on June 30, 2021. On September 22, 2022, he pleaded guilty to attempted transfer of obscene materials to a minor.
Nastu, who is released on a $100,000 bond, is required to report to prison on March 13.
This investigation was conducted by the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Amanda S. Oakes and Nancy V. Gifford through the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Boston Man Sentenced for Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Boston man was sentenced today for using others’ identities to fraudulently obtain over $65,000 in Pandemic Unemployment Assistance (PUA) benefits.
Wilson Radhames Peguero Brea, 53, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 28 months in prison and one year of supervised release. In October 2022, Peguero pleaded guilty to one count of wire fraud and one count of aggravated identity theft.
Peguero used the name and Social Security number of two U.S. citizens to fraudulently apply for and obtain PUA benefits. Peguero also applied for and received additional PUA benefits using his own name but fraudulently representing that he was a U.S. citizen. With respect to the applications, Peguero also submitted fraudulent documents, such as a fake U.S. permanent resident card and a fraudulently obtained driver’s license.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England made the announcement. Valuable assistance was provided by the U.S. Department of Labor, Office of Inspector General; U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of State, Diplomatic Security Service; U.S. Postal Inspection Service; Massachusetts State Police; and U.S. Citizenship and Immigration Services in Boston. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Big Timber felon sentenced to 46 months in prison for illegal possession of firearmsRead the Press Release
BILLINGS — A Big Timber man with a felony record was sentenced today to 46 months in prison, to be followed by three years of supervised release, after he admitted to illegally possessing three loaded firearms, U.S. Attorney Jesse Laslovich said.
James Edward Dempster, 43, pleaded guilty in May 2022 to prohibited person in possession of a firearm.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that in 2014, Dempster was convicted in U.S. District Court of a felony drug crime and prohibited from possessing firearms. In November 2021, a Sweet Grass County Sheriff’s deputy made a traffic stop in Big Timber of a truck that was pulling a trailer without taillights. Dempster was the driver. The deputy noticed the muzzle of a hunting rifle sticking out near the floorboard, ran Dempster’s information and confirmed that Dempster was on federal probation. During search of the truck, law enforcement recovered three loaded firearms—two rifles and a semi-automatic pistol. Law enforcement further learned that the pistol and one of the rifles were owned by Dempster’s father and that Dempster took them with out permission.
Assistant U.S. Attorney Benjamin D. Hargrove prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Sweet Grass County Sheriff’s Office and U.S. Probation 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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Baton Rouge Man Sentenced to 132 Months in Federal Prison for Fraud Scheme and Money Laundering Relating to Financial Aid and COVID FraudRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Elliott Sterling, age 34, of Baton Rouge, Louisiana, to 132 months in federal prison following his convictions for wire fraud, financial aid fraud, and engaging in monetary transactions involving property derived from specified unlawful activity. The Court further sentenced Sterling to serve three years of supervised release following his term of imprisonment and ordered him to pay restitution in the amounts of $2,760,422 to the U.S. Department of Education and $90,000 to the Small Business Administration.
After an eight-day trial, the jury unanimously convicted Sterling of five counts of wire fraud involving a scheme to defraud the Department of Education federal student aid program, two counts of financial aid fraud, and two counts of wire fraud involving the Small Business Administration Economic Injury Disaster Loan program, which was designed to aid businesses during the Covid-19 pandemic. Sterling was also convicted of six counts of money laundering involving the proceeds of his two wire fraud schemes. The jury further ordered the forfeiture of $422,632.38 in fraud proceeds that the FBI had seized in the case.
As the evidence at trial demonstrated, with respect to the Department of Education wire fraud and financial aid fraud counts, Sterling received $1,468,239 in federal student aid loans and grants that were associated with 180 Baton Rouge Community College (BRCC) students into his personal bank account and the business bank account of his company, Sterling Educational Consulting, LLC. The evidence presented at trial showed that Sterling used the personal identifying information of his purported students to electronically fill out and submit their Free Applications for Federal Student Aid (FAFSAs), sign master promissory notes on their behalf, enroll them into classes at BRCC, and create and manage the student BankMobile accounts that received federal student loans. Through Sterling’s control of the students’ accounts, he directed Department of Education monies to be paid directly into his own bank accounts.
In order to circumvent Department of Education controls designed to inform students about the financial obligations of student loans, Sterling concealed his role as the preparer of the FAFSAs and pretended to be the students when he logged on with their credentials, clicked through the loan counseling in less than three minutes, and signed promissory notes in their names. Typically, the students did not have access to the email addresses or login information that Sterling created on their behalf and did not have access to their own FAFSA, BRCC, or BankMobile accounts.
In addition, Sterling falsified the academic qualifications for 168 students to the Department of Education, and 145 of these students lacked even a high school diploma or equivalent (e.g. a GED). A witness at trial also testified that Sterling had paid him $5,000 to produce 42 diplomas with fictional grades. These diplomas were then provided to BRCC after BRCC requested verification of the students’ academic credentials. None of the 180 students for whom Sterling received money progressed academically at BRCC, and 172 failed or withdrew from every class they were enrolled in. Some students were incarcerated when their FAFSAs were submitted, promissory notes signed, or federal student aid disbursed into Sterling’s bank accounts.
Instead of directing the funds he received to the students, Sterling kept over 60% for himself, and for 25 students, Sterling kept 100% of the loan proceeds. Among the students who received money from Sterling’s scheme, most were unaware they had signed up for student loans and that Sterling had signed master promissory notes in their names obligating them to repay the full amount. The students were also unaware of the true amount of refunds awarded in their names, and the true amount Sterling retained as his portion.
With respect to the SBA wire fraud, Sterling submitted a loan application on behalf of his business, Sterling Educational Consulting, LLC, that falsified the business’s revenues and costs and concealed his prior guilty plea to felony theft. As a result of these false statements, the SBA loaned Sterling $90,000 in order for him to pay the operating costs of his business during the Covid-19 pandemic. Sterling promptly withdrew $75,000 in cash. During the course of his schemes, Sterling also spent more than $253,000 at casinos in Louisiana, Nevada, and Pennsylvania.
Louisiana Inspector General Stephen Street commented, “Elliott Sterling put a great deal of time and effort into his calculated scheme to steal millions of financial aid dollars from the U.S. Government and the taxpayers. He shamelessly broke the law out of pure personal greed. We were very pleased when a criminal jury found Sterling guilty on all charged counts, and even more so with the 11-year prison sentence imposed by the Court. This significant prison sentence was entirely appropriate given the brazen nature of the fraud and will hopefully send a strong message of zero tolerance. The Louisiana Inspector General remains committed to rooting out this corruption wherever it may be found.” Street added, “I want to thank United States Attorney Ron Gathe and his staff for their usual outstanding work, as well as our partners at the FBI and the US Department of Education OIG for another successful outcome.”
This case was investigated by the FBI, the Louisiana Office of Inspector General, and the U.S. Department of Education – Office of Inspector General. This case was prosecuted by Deputy Criminal Chief Elizabeth E. White and Asset Forfeiture Chief Brad Casey.
Baltimore fentanyl organizations shut down by federal indictmentsRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Baltimore-based drug trafficking organizations that supplied large amounts of fentanyl to West Virginia and caused at least two deaths have been dismantled by separate federal indictments that were unsealed today.
Thirty-four people from Maryland, Virginia, and West Virginia were indicted on charges related to the sale of fentanyl, heroin and other drugs in Hampshire County and Mineral County. The drugs distributed led to a spike in overdoses in the region, both fatal and non-fatal. Much of the fentanyl had high levels of purity and had a purple tint to distinguish it from drugs sold by competitors.
In the first indictment, Kentrel Anthony Rollins, also known as “T-Rock,” age 30, of Baltimore, Maryland is alleged to be the leader of a fentanyl distribution operation in Hampshire County and elsewhere from January 2020 to October 2021. Court documents show that in addition to the sale of drugs, there was firearms trafficking and the trading of guns for drugs. Many of the firearms were acquired by a straw purchaser on behalf of the organization. Twelve people are charged in this matter, which also includes the alleged trafficking of heroin, methamphetamine and cocaine.
In the second indictment, Sean Jarred Davis, age 31, also of Baltimore, is alleged to be the leader of a conspiracy to distribute more than 40 grams of fentanyl, as well as heroin, in Hampshire County and elsewhere from February 2021 to January 2023. A total of twenty-two individuals are charged in the case.
“Fentanyl continues to be the number one threat to public safety in the region and much of it flows here from Baltimore,” said United States Attorney William Ihlenfeld. “The investigators are to be commended for their outstanding work in identifying the sources of supply and halting their operations.”
The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, led the investigations. The Task Force consists of members from the Federal Bureau of Investigation, the Drug Enforcement Administration, the West Virginia State Police, the Mineral County Sheriff’s Office, the Hampshire County Sheriff’s Office, the Hardy County Sheriff’s Office, the Grant County Sheriff’s Office, and the Keyser Police Department. The Hampshire County Prosecutor’s Office assisted.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the cases on behalf of the government.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
List of defendants
Baltimore Man Sentenced to 35 Years in Federal Prison for Murder-For-HireRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin today sentenced Daquante Thomas, a/k/a “Glock,” age 20, of Baltimore, Maryland, to 35 years in federal prison, followed by five years of supervised release, for discharge of a firearm during a crime of violence resulting in death, in connection with a murder-for-hire conspiracy.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Gregory Der of the Howard County Police Department; and Howard County State’s Attorney Rich Gibson.
“This case is a tragedy for the victim and the affected families. I am hopeful that our reenergized law enforcement and community partnerships will help break this cycle of violence,” said United States Attorney Erek L. Barron.
“Today’s sentencing is another example of the successful partnership that exists between our office and our law enforcement partners on the local, state, and federal level,” said Howard County State’s Attorney Rich Gibson. “We are committed to working in a collaborative manner to solve cases, make arrests, and hold criminals, such as Daquante Thomas, accountable for their actions.”
“The prioritizing of money over humanity in this case shows just how little this defendant values the lives of others,” said ATF Baltimore Special Agent in Charge Toni M. Crosby. “We cannot allow individuals like this to walk freely in our communities, willing to murder citizens for the right price. ATF is proud to work alongside our local, state, and federal partners every day to identify and investigate the people responsible for committing acts of violence in Maryland.”
According to the plea agreement, on October 4, 2020, Howard County Police responded to a shooting in the area of Basket Ring Road in Columbia. Victim Juan Ross was found shot and killed at the scene, sustaining multiple gunshot wounds to the head. Investigation identified Daquante Thomas as one of the shooters. As detailed in the guilty plea, co-conspirator 1 accused the victim, Juan Ross, age 23, of Columbia, Maryland, of cooperating with law enforcement, including on a live social media conversation on September 9, 2020, and in text message. Thomas admitted that co-conspirator 1 solicited him and another conspirator to kill Juan Ross and that he accepted payment to commit the murder.
According to the plea agreement, on October 3, 2020, Thomas and co-conspirator 2 texted each other about the address where they could find the victim. The next day Thomas, co-conspirator 2 and co-conspirator 3 drove to the area of Basket Ring Road in Columbia to locate Juan Ross, then drove to a drug store nearby so that co-conspirator 2 could purchase an Uber card and leave the area. A short time later, Thomas and co-conspirator 3 returned to the area of Basket Ring Road, shot and killed Juan Ross, then drove away together.
Two co-defendants, Jourdain Larose, a/k/a “JBlacc,” age 27, of Ellicott City, Maryland, and Tyrik Braxton, a/k/a “Son-Son,” age 26, of Baltimore, Maryland, are charged with a federal murder-for-hire conspiracy, use of interstate commerce facilities in the commission of a murder-for hire, and use and discharge of a firearm during a crime of violence resulting in death. They remain detained while they await their trial. An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF, the Howard County Police Department, and the Howard County State’s Attorney’s Office for their work in the investigation and prosecution and thanked the FBI, the Maryland State Police, the Anne Arundel County Police Department, the Baltimore County Police Department, and the Baltimore Police Department for their assistance. Mr. Barron thanked Assistant U.S. Attorney Kim Y. Oldham, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Armed Indianapolis Drug Dealer Sentenced to over 15 Years in Federal Prison for Trafficking 3 Kilograms of Fentanyl and Other Controlled SubstancesRead the Press Release
INDIANAPOLIS- Frank Nelson, 45, of Indianapolis, Indiana, was sentenced to 188 months in federal prison for possession with intent to distribute fentanyl.
According to court documents, on August 24, 2021, Drug Enforcement Administration (DEA) officials executed a search warrant at Frank Nelson’s Indianapolis residence for financial documents in connection to an ongoing drug trafficking and money laundering investigation. Nelson was taken into custody upon opening the door for investigators.
During a search of Nelson’s home, officers located a black Puma backpack in the laundry room that contained several clear plastic bags of white powder and brown chunky substances. Shortly after this discovery, law enforcement officers obtained a second search warrant for the same residence to search for narcotics and other instrumentalities. The Puma backpack was searched and found to contain approximately 3 kilograms of fentanyl, 1.6 kilograms of cocaine, and half a kilogram of heroin. According to the DEA, as little as two milligrams of fentanyl can be fatal, depending on a person’s body size, tolerance, and past usage. One kilogram of fentanyl has the potential to kill 500,000 people.
In searching Nelson’s master bedroom, agents located a 9mm semiautomatic pistol in a nightstand and a semiautomatic rifle under the bed. Agents also located $90,310 in United States currency. Inside Nelson’s bedroom closet, agents located a black Nike duffle bag containing 16 taped, brick-shaped objects (approximately 1 kilogram each) filled with cocaine.
In his guilty plea, Nelson admitted that the seized substances contained fentanyl, heroin, and cocaine, and that he possessed the drugs with the intent to sell them.
At the time of his arrest, Nelson was on bond after being charged in 2020 with dealing cocaine in Hendricks County, Indiana.
“We may never know exactly how many lives this defendant is responsible for ruining to satisfy his greed,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Substance abuse disorders take lives and devastate families in all zip codes and of all walks of life. We are grateful to our partners at the DEA and IMPD for investigating this case and taking many kilograms of dangerous drugs off of our streets.”
“The sentence imposed on Mr. Nelson was justified,” said Michael Gannon, Assistant Special Agent in Charge. “Despite being out on bond for a drug offense, Mr. Nelson continued to distribute kilogram quantities of lethal fentanyl, heroin, and cocaine while possessing firearms to facilitate his drug trafficking activities. The DEA remains committed to working hand in hand with our state, local, and federal partners in order to keep our communities safe. The DEA commends the outstanding work by the Indianapolis Metropolitan Police Department and the United States Attorney’s Office.”
The DEA and IMPD Drug Task Force investigated this case. The sentence was imposed by U.S. District Court Judge James R. Sweeney. Judge Sweeney also ordered that Nelson be supervised by the U.S. Probation Office for 5 years following his release from federal prison.
U.S Attorney Myers thanked Assistant United States Attorney Jayson W. McGrath who prosecuted the case.
One Pill Can Kill: Avoid pills bought on the street because One Pill Can Kill. Fentanyl is a highly potent opioid that drug dealers dilute with cutting agents to make counterfeit prescription pills that appear to be Oxycodone, Percocet, Xanax, and other drugs. Fentanyl is used because it’s cheap. Small variations in the quantity or quality of fentanyl in a fake prescription pill can accidentally create a lethal dosage. Fentanyl has now become the leading cause of drug poisoning deaths in the United States. Fake prescription pills laced with fentanyl are usually shaped and colored to look like pills sold at pharmacies, like Percocet and Xanax. For example, fake prescription pills known as “M30s” imitate Oxycodone obtained from a pharmacy, but when sold on the street the pills routinely contain fentanyl. These particular pills are usually round tablets and often light blue in color, though they may be in different shapes and a rainbow of colors. They often have “M” and “30” imprinted on opposite sides of the pill. Do not take these or any other pills bought on the street – they are routinely fake and poisonous, and you won’t know until it’s too late.
Alabama Company Pleads Guilty in Worker Death CaseRead the Press Release
ABC Polymer Industries LLC pleaded guilty yesterday to a willful violation of an Occupational Safety and Health Administration (OSHA) standard that caused a worker’s death. The charge involves an Aug. 16, 2017, incident at the Helena, Alabama, plant owned by ABC Polymer Industries LLC, in which a worker was pulled into a cluster of unguarded moving rollers and killed. U.S. District Judge Annemarie Carney Axon for the Northern District of Alabama accepted the plea.
According to court documents, ABC Polymer operated multiple plastic extrusion lines at its facility, which molded raw materials into flat rectangular plastic sheets. The machinery pulled the sheets through a series of rollers arranged in clusters before cutting them into plastic threads or tapes, which were sold for use in various products. According to court documents filed in connection with the case, the machine at issue in the worker’s death was equipped with a “cage” or barrier guard that could be pulled down over one of the exposed sides of the rollers. OSHA standards require moving machinery such as this to be guarded while the machine is energized.
However, ABC Polymer was aware that its employees routinely raised the guard on its machines to cut tangled plastic off the rollers, thereby operating the machines without the required guarding. ABC Polymer also trained its employees to cut tangled plastic off the rollers while the rollers were in operation. ABC Polymer admitted that it knew or should have known that these practices exposed employees to a risk of injuries and death in violation of federal law.
“This victim’s tragic death was entirely preventable,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Employers who willfully violate OSHA standards are gambling with their employees’ health and lives. We will continue to hold accountable those who fail to follow these critical safety rules.”
“This tragic loss of life could have been avoided by following federal safety standards,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “We are grateful for the work of our OSHA partners in holding employers accountable for the safety of their employees. My office will use the tools available to us to protect Alabama workers and prosecute employers who willfully violate federal safety laws.”
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations. The count of conviction carries a maximum sentence of a $500,000 fine, or twice the financial gain to the defendant or twice the financial loss to another, whichever is greater, and restitution to the victim. Judge Axon scheduled sentencing for Jan. 24 where she will determine the sentence after considering the relevant statutory factors.
This case was investigated by the Occupational Safety and Health Administration of the U.S. Department of Labor.
Trial Attorneys Ethan Eddy and William Shapiro of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys Robert Posey and Ryan Rummage for the Northern District of Alabama are prosecuting the case.
Alabama Company Pleads Guilty in Worker Death CaseRead the Press Release
BIRMINGHAM, Ala. – ABC Polymer Industries LLC pleaded guilty yesterday to a willful violation of an Occupational Safety and Health Administration (OSHA) standard that caused a worker’s death. The charge involves an Aug. 16, 2017, incident at the Helena, Alabama, plant owned by ABC Polymer Industries LLC, in which a worker was pulled into a cluster of unguarded moving rollers and killed. U.S. District Judge Annemarie Carney Axon accepted the plea.
According to court documents, ABC Polymer operated multiple plastic extrusion lines at its facility, which molded raw materials into flat rectangular plastic sheets. The machinery pulled the sheets through a series of rollers arranged in clusters before cutting them into plastic threads or tapes, which were sold for use in various products. According to court documents filed in connection with the case, the machine at issue in the worker’s death was equipped with a “cage” or barrier guard that could be pulled down over one of the exposed sides of the rollers. OSHA standards require moving machinery such as this to be guarded while the machine is energized.
However, ABC Polymer was aware that its employees routinely raised the guard on its machines to cut tangled plastic off the rollers, thereby operating the machines without the required guarding. ABC Polymer also trained its employees to cut tangled plastic off the rollers while the rollers were in operation. ABC Polymer admitted that it knew or should have known that these practices exposed employees to a risk of injuries and death in violation of federal law.
“This victim’s tragic death was entirely preventable,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Employers who willfully violate OSHA standards are gambling with their employees’ health and lives. We will continue to hold accountable those who fail to follow these critical safety rules.”
“This tragic loss of life could have been avoided by following federal safety standards,” said U.S. Attorney Escalona. “We are grateful for the work of our OSHA partners in holding employers accountable for the safety of their employees. My office will use the tools available to us to protect Alabama workers and prosecute employers who willfully violate federal safety laws.”
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations. The count of conviction carries a maximum sentence of a $500,000 fine, or twice the financial gain to the defendant or twice the financial loss to another, whichever is greater, and restitution to the victim. Judge Axon will hold a sentencing hearing at a later date, where she will determine the sentence after considering the relevant statutory factors.
This case was investigated by the OSHA of the U.S. Department of Labor.
Assistant U.S. Attorneys Robert Posey and Ryan Rummage for the Northern District of Alabama and Trial Attorneys Ethan Eddy and William Shapiro of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.
Tuesday 10 January 2023
Windsor Resident Sentenced to 33 Months in Prison for Defrauding Employer and its Lender of More than $700KRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARGARET BOISTURE, 51, of Windsor, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 33 months of imprisonment, followed by two years of supervised release, for defrauding her former employer and one of its lenders of more than $700,000. Judge Williams also ordered Boisture to pay a $7,100 fine and to make full restitution.
According to court documents and statements made in court, Boisture functioned as the chief financial employee of ZoneFlow Reactor Technologies, a pre-revenue company in the business of developing and commercializing a new technology that improves the efficiency of the production of hydrogen. PayPal marketed and serviced commercial loans from WebBank, a third-party lender. Between approximately October 2016 and February 2020, Boisture defrauded ZoneFlow, PayPal and WebBank by diverting ZoneFlow money to herself; taking unauthorized loans that caused ZoneFlow to pay additional interest expense; and making misrepresentations to PayPal and WebBank to induce them to make unauthorized loans to ZoneFlow that expanded the pool of money from which Boisture could take.
In total, Boisture’s criminal conduct caused losses of $632,159.78 to ZoneFlow and $78,088.76 to PayPal and WebBank.
On July 19, 2022, Boisture pleaded guilty to one count of wire fraud affecting a financial institution.
Boisture, who is released on a $500,000 bond, is required to report to prison on March 13.
This matter was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney David E. Novick.
Warwick Man Convicted on Drug Trafficking, Firearm Charges as Federal Jury Trial is Set to BeginRead the Press Release
PROVIDENCE – Jose Manuel Rosario-Mella, a/k/a Luis Cortes, 55, of Warwick, arrested in August 2020 by Rhode Island DEA Drug Task Force agents following a month-long investigation into his drug trafficking activities, pleaded guilty in federal court today to possession with intent to distribute 100 grams or more of heroin and being a felon in possession of a firearm, announced United States Attorney Zachary A. Cunha.
Rosario-Mella’s guilty plea was entered as his federal jury trial was scheduled to begin.
On August 12, 2022, DEA agents and Warwick Police detectives executed a court-authorized search of Rosario-Mella’s residence and seized a 1,002-gram brick of heroin from a closet shelf; a loaded 9mm Glock pistol and ammunition in a compartment in the master bedroom; $337,600 in cash; three kilogram presses used to compress heroin into bricks for transportation and sale; and assorted items used in the preparation and distribution of heroin.
Present in the residence at the time of the search was the defendant’s girlfriend and her two minor daughters.
Rosario-Mella is scheduled to be sentenced on April 13, 2023. The defendant’s sentence will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Assistant United States Attorney’s Paul F. Daly, Jr., and Zechariah Chafee.
The Rhode Island DEA Drug Task Force is comprised of personnel from the DEA; Rhode Island State Police; and the Central Falls, East Providence, Cranston, Coventry, Newport, North Kingstown, Pawtucket, Providence, South Kingstown, Warwick, West Warwick, Woonsocket and Amtrak Police Departments.
Additionally, United States Attorney Cunha thanks ATF for their assistance in the investigation.
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Utah Tax Preparer Sentenced to Prison for Tax Scheme and Obstructing IRSRead the Press Release
A Utah professional tax preparer was sentenced yesterday to 37 months in prison for tax evasion, conspiring to defraud the United States and obstructing the IRS’s efforts to collect his tax debt, which exceeded $1.1 million.
According to court documents and statements made in court, Sergio Sosa, of Orem, owned and operated Sergio Central Latino, a tax preparation business. From approximately 2004 to 2020, Sosa conspired to defraud the United States by concealing his assets and income from the IRS. From 2003 through 2017, Sosa also did not timely file his own tax returns or pay the taxes he owed for these years. After the IRS audited Sosa and began efforts to collect his tax debt – which at the time amounted to more than $750,000 – he obstructed those efforts by using nominees to open business bank accounts, renaming his business and placing it in his children’s names, and making false statements to the IRS. Sosa also directed one of his children to make mortgage payments on his personal residence using funds he provided.
In addition to the term of imprisonment, U.S. District Judge David Sam ordered Sosa to serve 36 months of supervised release and to pay $1,104,737 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Ahmed Almudallal of the Tax Division and Assistant U.S. Attorney Ruth Hackford-Peer for the District of Utah prosecuted the case.
Utah Tax Preparer Sentenced to Prison for Tax Scheme and Obstructing IRSRead the Press Release
WASHINGTON – A Utah professional tax preparer was sentenced yesterday to 37 months in prison for tax evasion, conspiring to defraud the United States and obstructing the IRS’s efforts to collect his tax debt, which exceeded $1.1 million.
According to court documents and statements made in court, Sergio Sosa, of Orem, owned and operated Sergio Central Latino, a tax preparation business. From approximately 2004 to 2020, Sosa conspired to defraud the United States by concealing his assets and income from the IRS. From 2003 through 2017, Sosa also did not timely file his own tax returns or pay the taxes he owed for these years. After the IRS audited Sosa and began efforts to collect his tax debt – which at the time amounted to more than $750,000 – he obstructed those efforts by using nominees to open business bank accounts, renaming his business and placing it in his children’s names, and making false statements to the IRS. Sosa also directed one of his children to make mortgage payments on his personal residence using funds he provided.
In addition to the term of imprisonment, U.S. District Judge David Sam ordered Sosa to serve 36 months of supervised release and to pay $1,104,737 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Ahmed Almudallal of the Tax Division and Assistant U.S. Attorney Ruth Hackford-Peer for the District of Utah prosecuted the case.
United States Attorney Will Thompson to Help Mark National Human Trafficking Awareness DayRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will join with officials from the Charleston YWCA and other key stakeholders on Wednesday, January 11, 2023, at 11:30 a.m. for National Human Trafficking Awareness Day.
The press conference will include a “Red Sand” event, a visibility initiative to bring attention to the vulnerabilities that can lead to human trafficking and exploitation. The day is part of National Human Trafficking Prevention Month.
WHAT: National Human Trafficking Awareness Day Press Conference
WHEN: Wednesday, January 11, 2023, at 11:30 a.m.
WHERE: Steps of Kanawha County Courthouse, 409 Virginia Street East, Charleston
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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United States Attorney Will Thompson to Address West Virginia Board of EducationRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will appear before the West Virginia Board of Education during its 9 a.m. meeting on Wednesday, January 11, 2023, to promote career technical education law and public safety programs.
WHAT: Presentation on Career Technical Education Law and Public Safety Programs
WHEN: Wednesday, January 11, 2023. The meeting begins at 9 a.m.
WHERE: West Virginia Board of Education, West Virginia Capitol Complex, Building 6, Suite 600, 1900 Kanawha Boulevard, East, Charleston
Audio of the meeting was live-streamed. Meeting minutes are available here: https://wvde.us/events/2023/1/january-2023-board-meeting.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney’s Office for the District of Utah Collects More than $10 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
SALT LAKE CITY, Utah – U.S. Attorney Trina A. Higgins announced today that the District of Utah collected $10,690,252.06 in criminal and civil actions in Fiscal Year 2022. Of this amount, $5,550,041.48 was collected in criminal actions and $5,140,210.58 was collected in civil actions.
Additionally, the District of Utah worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,863,335.61 in cases pursued jointly by these offices. Of this amount, $11,775.00 was collected in criminal actions and $1,851,560.61 was collected in civil actions.
For example, in February 2022, the District of Utah recovered $265,455.45 as part of the settlement in the U.S.A v. Ryan Richard West case where West and his co-defendant Gary Alan Gygi were sentenced separately for defrauding numerous individuals in business venture investment schemes. For more information on this case, see original press release https://www.justice.gov/usao-ut/pr/logan-man-sentenced-five-years-federal-prison-defrauding-investors-his-fraudulent
“The United States Attorney’s Office is committed to the prosecution of crimes involving financial fraud and seeking recovery for victims in these cases,” said U.S. Attorney Trina A. Higgins for the District of Utah.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
U.S. Attorney’s Office Collects $2,088,622.73 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
HONOLULU – U.S. Attorney Clare E. Connors announced today that the United States Attorney’s Office for the District of Hawaii collected $2,088,622.73 in criminal and civil actions in Fiscal Year 2022. Of this amount, $1,534,259.15 was collected in criminal actions and $554,363.58 was collected in civil actions.
Additionally, the Hawaii U.S. Attorney’s Office worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $7,991,796.46 in civil cases pursued jointly by these offices.
“Recouping money owed to the United States, as well as obtaining financial recoveries from those who violate the law, are critical aspects of our system of justice,” said U.S. Attorney Clare E. Connors. “We will vigorously pursue economic sanctions and collections on behalf of our community.”
In August 2022, the District of Hawaii recovered $75,000 from the former Majority Leader of the State of Hawaii Senate, Jamie Kalani English, in partial payment of the $100,000 fine imposed for honest services wire fraud. Over $7.5 million of the amount recovered from cases jointly worked, resulted from a consent decree in an environmental action the United States brought for reimbursement of costs and compensation for natural resource damages associated with the release or threatened release of hazardous substances at the former Oahu Sugar pesticide-mixing area within the Pearl Harbor Superfund Site.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in Hawaii, working with partner agencies and divisions, collected $1,063,208 in asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney Announces Federal Charges Against Man Who Carried Out Machete Attack in Times Square on New Year’s EveRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Merrick B. Garland, the Attorney General of the United States, Christopher A. Wray, the Director of the Federal Bureau of Investigation (“FBI”), Michael J. Driscoll, Assistant Director in Charge of the New York Field Office of the FBI, and Keechant L. Sewell, the Commissioner of the New York City Police Department (“NYPD”), announced today that TREVOR THOMAS BICKFORD has been charged with federal crimes in connection with BICKFORD’s efforts to wage jihad by killing U.S. Government officials and his knife attack on three NYPD officers in Times Square on New Year’s Eve. BICKFORD was charged by Complaint with attempting to kill officers and employees of the U.S. Government and persons assisting them. BICKFORD is currently in state custody and will be transported to and presented in Manhattan federal court at a later date to face the federal charges filed in the Southern District of New York.
U.S. Attorney Damian Williams said: “On this past New Year’s Eve, revelers flocked to Times Square to ring in the New Year with friends and family. But Trevor Bickford allegedly targeted the iconic yearly celebration to carry out a brazen act of violence and hatred in the name of jihad. Bickford’s alleged attack in one of the most visited destinations in the world on its busiest night of the year ironically only served to spotlight the coordination, resolve, and dedication of American law enforcement to guard the wellbeing of the public. We sincerely thank our law enforcement partners for their outstanding work and bravery, and especially wish a full and speedy recovery to the officers injured in this senseless attack.”
Attorney General Merrick B. Garland said: “As detailed in today’s complaint, we allege that the defendant plotted a jihad-inspired attack targeting U.S. government officials, and on December 31st, 2022, attacked three NYPD officers who were part of the joint federal-state law enforcement operation protecting the Times Square New Year’s Eve celebration. We are deeply grateful for the bravery of the officers who were injured in this horrible attack and who put their lives on the line every day to serve their communities. Together with our law enforcement partners at every level of government, the Justice Department will continue to work to disrupt, investigate, and prosecute those who target and attack law enforcement and endanger the American people.”
FBI Director Christopher A. Wray said: “As alleged, three New York City Police Department officers were brutally assaulted in a jihad-inspired attack on New Year’s Eve while they were performing their duties to protect their city and those out celebrating the holiday. Being a law enforcement officer requires brave individuals willing to put their lives on the line every day to keep others safe. We are committed to holding those who would target law enforcement with violence fully accountable.”
FBI Assistant Director Michael J. Driscoll said: “As we allege today, Bickford deliberately planned and executed his violent attack against New York City Police Officers who were simply doing their job protecting the public. Only the quick action of these brave officers prevented further harm. The FBI's New York Joint Terrorism Task Force is unwavering in its mission to combat terrorism to keep our city safe, and we will bring any radicalized individual willing to commit violence to justice.”
NYPD Commissioner Keechant L. Sewell said: “An attack against New York City police officers is an attack against all of us – and today’s charges make it clear that such violence will be prosecuted to the fullest extent of the law. Our NYPD family is thankful our heroic officers survived this premeditated ambush, and the entire city commends them for preventing further bloodshed during one of our nation’s largest public events. Clearly, the threat of jihadist terrorism remains very real, and our country’s security begins with the dedicated local, state, and federal law enforcement officers who are committed to keeping us safe. I applaud our NYPD investigators, our partners on the FBI’s New York Joint Terrorism Task Force, and the prosecutors in the U.S. Attorney’s Office for the Southern District of New York for their combined efforts on this important case.”
According to the allegations contained in the Complaint charging the defendant:[1]
In the summer of 2022, BICKFORD, a 19-year-old U.S. citizen and resident of Maine, began accessing and consuming materials espousing radical Islamic ideology, including materials promoting the Taliban and reflecting the teachings of Abu Muhammad al-Maqdisi, a prominent radical Islamic cleric who was a spiritual mentor of al Qaeda. Over the ensuing months, BICKFORD radicalized, devoting himself to violent Islamic extremism and waging jihad.
By November 2022, BICKFORD was interested in traveling to the Middle East to support the Taliban and took steps towards traveling to Afghanistan to ally himself with the Taliban and work with the Taliban to fight against governments that, in BICKFORD’s view, oppress Muslims. BICKFORD dedicated himself to the mission of waging jihad against officials of governments that he believes are anti-Muslim, including the U.S. Government. BICKFORD told a family member that he wanted to travel to the Middle East so that he could be a suicide bomber for his religion. BICKFORD ultimately decided that he would not travel overseas, and instead would wage jihad against the U.S. Government within the United States.
To carry out his jihadist mission, BICKFORD traveled from Maine to New York City in late December. On New Year’s Eve, BICKFORD went to Times Square for the purpose of killing U.S. Government officials, armed with a large, curved knife similar to a machete, known as a kukri, with a blade over one foot long.
Protecting the civilians who attend the annual New Year’s Eve celebration in Times Square requires and involves the coordination, collaboration, and mutual assistance of multiple federal and state law enforcement agencies, including the FBI and NYPD. During this special event, the FBI and NYPD work together and assist each other in the performance of their respective duties, in a collective effort to ensure a safe Times Square New Year’s Eve celebration.
At approximately 10:10 p.m., at 52nd Street and Eighth Avenue, blocks away from the New Year’s Eve celebration in Times Square, BICKFORD attacked three NYPD officers, who were detailed to the joint federal-state law enforcement operation to protect the New Year’s Eve celebration. The location of 52nd Street and Eighth Avenue was an access checkpoint at which spectators could gain entry to the events in Times Square, and both FBI and NYPD personnel were deployed in the area of the checkpoint, including the three officers whom BICKFORD attacked. BICKFORD approached the NYPD officers, declared “Allahu Akbar” — an Arabic phrase meaning “God is great,” which other radical Islamic extremists have similarly proclaimed while carrying out terrorist attacks — and stabbed and struck the officers in the head with his kukri. Before BICKFORD could attack more targets, one of the victim officers shot BICKFORD in the shoulder, stopping the attack, and he was taken into state custody. BICKFORD wounded all three officers, who suffered lacerations and other injuries, and each officer had to be taken to a hospital for treatment.
A bag that BICKFORD brought with him to the Times Square area was subsequently recovered by law enforcement from the scene of the attack. BICKFORD’s bag contained, among other things, a book by al-Maqdisi promoting jihad and BICKFORD’s journal. The al-Maqdisi book encourages followers, among other things, to wage jihad against disbelievers and governments ruled by disbelievers, and to use swords on the heads of disbelievers. An entry in BICKFORD’s journal from December 31, 2022 — that is, the day of his attack — states that “this will likely be my last entry” and that BICKFORD believed his brother, a soldier in the U.S. military, had “joined the ranks of my enemy.” A second bag that BICKFORD was carrying, also recovered by law enforcement near Times Square, contained a book espousing violent Islamic extremism, with certain portions highlighted, including the following: “Fight in the Name of Allah and in the Cause of Allah. Fight against those who do not believe in Allah. Wage a holy war.”
The kukri that BICKFORD used in the attack, depicted below, was recovered by law enforcement from the scene of the attack:
After being treated at a local hospital, during a subsequent Mirandized interview, BICKFORD stated, among other things, the following:
- BICKFORD decided not to travel overseas to wage jihad as originally planned, and instead to commit jihad in New York City. In the days leading up to his New Year’s Eve attack, BICKFORD traveled from Maine to New York City.
- On New Year’s Eve, BICKFORD went to Times Square and walked around the area “trying to figure out the right time to kill.” BICKFORD started reciting verses from the Quran in his head to “hype himself up” for his attack.
- BICKFORD identified an NYPD officer who was isolated from civilians and other officers, took out the kukri from his backpack, declared “Allahu Akbar,” and attacked the officer.
- After attacking that officer, BICKFORD charged at another officer and tried but failed to remove that officer’s firearm from the officer’s holster. One of the officer victims then shot BICKFORD in the shoulder, stopping his attack.
- When asked why he conducted the attack, BICKFORD stated that the officer was a man in uniform who had a weapon; all men of military age were his targets; no one can work for the U.S. Government and be a true Muslim because the U.S. Government supports Israel; and he wanted to kill as many of these targets as he could.
- BICKFORD intended to die in the attack, in an effort to achieve martyrdom. BICKFORD believed his attack was unsuccessful, because he did not kill any officers, and he did not die himself.
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BICKFORD, 19, of Wells, Maine, is charged in the Complaint with four counts of attempted murder of officers and employees of the U.S. Government and persons assisting them, each of which carries a maximum sentence of 20 years in prison. The charges carry an aggregate potential sentence of 80 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative efforts of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Sarah L. Kushner and Kaylan E. Lasky are in charge of the prosecution with assistance from Trial Attorney D. Andrew Sigler of the Counterterrorism Section of the Department of Justice’s National Security Division.
The charges contained in the Complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations and every fact described should be treated as an allegation.
Two Men Sentenced to Prison for Distributing Controlled Substances Resulting in DeathRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Demetrius Taylor, age 30, of Patterson, New Jersey, and Joseph Decker, age 28, of Monroe County, Pennsylvania, were sentenced by U.S. District Court Judge Malachy E. Mannion for heroin/fentanyl trafficking offenses resulting in death. Taylor received a sentence of 240 months in prison and Decker was sentenced to 180 months in prison.
According to United States Attorney Gerard M. Karam, both Decker and Taylor previously pleaded guilty to distribution and possession with intent to distribute heroin and fentanyl, resulting in death. On February 21, 2020, Taylor distributed heroin and fentanyl to Decker, who subsequently distributed the heroin and fentanyl to an individual who, in turn, shared it with a 32-year-old woman. The woman overdosed and died on February 26, 2020 after ingesting the drugs.
On July 18, 2022, Taylor and Decker’s co-conspirator, Mary Keiper, age 27, of Monroe County, pleaded guilty to conspiring to distribute and possesses with intent to distribute more than 100 grams of heroin and fentanyl and is awaiting sentencing.
The charges stem from a joint investigation involving the Federal Bureau of Investigation (FBI) in Scranton, the Pennsylvania State Police, and the Pocono Mountain Regional Police Department. United States Attorney Michelle Olshefski is prosecuting the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also 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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Town of Greenwich Agrees to Increase Accessibility at Marina to Comply with Americans with Disabilities ActRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that the U.S. Attorney’s Office has reached a settlement agreement with the Town of Greenwich to resolve allegations that a Greenwich marina was not operating in compliance with the Americans with Disabilities Act of 1990 (“ADA”).
The settlement agreement resolves an ADA complaint filed by an individual with disabilities alleging that Greenwich’s Byram Marina has no designated accessible boat slips and no accessible routes to the boat slips. As a result, the marina is not accessible to individuals with physical disabilities. Greenwich is in the process of making significant improvements to the Byram Marina, as required by the settlement agreement, including improving the accessibility of designated boat slips, and the routes to those slips, as well as other accommodations designed to increase accessibility.
Under federal law, public entities are prohibited from discriminating on the basis of disability. The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“Among the most important protections provided by the Americans with Disabilities Act are those ensuring individuals with disabilities have access to public services, including recreational activities such as boating,” stated U.S. Attorney Avery. “Our Office is committed to enforcing the ADA, which requires public entities, including municipalities, to provide access to individuals with disabilities. We greatly appreciate the willingness of the Town of Greenwich and its leaders to work with our office collaboratively to increase the accessibility and usability of Greenwich’s facilities.”
Any member of the public who wishes to file a complaint alleging that a public entity or place of public accommodation in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
This matter was handled by Assistant U.S. Attorney William M. Brown, Jr. of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice Civil Rights Division.
Three U.S. Postal Service Employees Charged in Million Dollar National Coronavirus Fraud RingRead the Press Release
FLORENCE, SOUTH CAROLINA — Three defendants – all of whom were U.S. Postal Service employees during this alleged fraud scheme – have been charged in the District of South Carolina for their alleged roles in a fraud scheme related to the Coronavirus Aid, Relief, and Economic Security Act’s Paycheck Protection Program (PPP).
The scheme involved as many as 400 fraudulent PPP loan applications, the majority of which were for applicants in South Carolina. The indictment alleges the scheme resulted in more than $1 million in fraudulently obtained PPP loans, and according to evidence presented at the defendants’ bond hearing, that figure may be as high as $8 million.
The indicted defendants are:
- Tiffany McFadden, 40, a former U.S. Postal Service employee from Brooklyn, New York, and Port St. Lucie, Florida;
- Cherry Lewis, 43, a U.S. Postal Service employee from Johnsonville, South Carolina; and
- Keisha Lewis, 33, a U.S. Postal Service employee from Hemingway, South Carolina.
The indictment alleges that the defendants were part of a national scheme, led by McFadden, that fraudulently acquired PPP loans. The PPP loan program was administered by the Small Business Administration (SBA) and provided forgivable loans to small businesses for job retention and certain other expenses during, and resulting from, the COVID-19 pandemic.
McFadden, according to the indictment, created false and fraudulent PPP loan applications by obtaining the personal identifying information (PII) of putative PPP loan applicants. She used that information to create tax documents and other paperwork related to non-existent businesses. McFadden then submitted that information to SBA-approved lenders, and the loan recipients received PPP loans they were not entitled to. In exchange for her services, McFadden would receive a portion of the funds. The indictment alleges that McFadden would also assist in getting the loans forgiven through the SBA.
Cherry Lewis and Keisha Lewis, as alleged in the indictment, assisted McFadden in the scheme. They requested and received blank and fillable tax forms from McFadden, which they used to assist others in completing fraudulent PPP loan applications. The indictment further alleges that both Cherry Lewis and Keisha Lewis also personally obtained at least one fraudulently obtained PPP loan.
The defendants were arrested by the U.S. Secret Service on January 6, 2023. That same day, they were arraigned before U.S. Magistrate Judge Kaymani D. West at the federal courthouse in Florence, South Carolina, and released on bond pending trial.
“Any member of the public who has information related to this scheme is encouraged to contact the U.S. Secret Service,” said U.S. Attorney Adair F. Boroughs. “PPP loans were intended to help businesses survive unprecedented challenges. Every dollar stolen from this program was stolen from taxpayers and legitimate businesses in need of support. This office takes pandemic-related crime seriously and stands ready to prosecute such fraud in all its forms.”
Any member of the public who has information related to this scheme is encouraged to contact the Columbia, South Carolina, field office of the U.S. Secret Service at 803-772-4015.
Each defendant faces a maximum penalty of 20 years in prison, fines, and restitution.
The case was investigated by the U.S. Secret Service, with assistance from the U.S. Postal Inspection Service, the Small Business Administration, the Florence County Sheriff's Office, and the Williamsburg County Sheriff's Office. Assistant U.S. Attorneys Elliott B. Daniels and Winston Marosek, who also serves as the Office’s Coronavirus Fraud Coordinator, are prosecuting the case. A copy of the indictment is attached.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
U.S. Attorney Boroughs stated that all charges in the indictment are merely accusations and that defendants are presumed innocent unless and until proven guilty.
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