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Tuesday 10 January 2023
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
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 Aug. 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 Aug. 13 and Aug. 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, 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 less force was ineffective; falsely stated that Winkle “kneeled on [L.G.]’s left shoulder and upper body,” when in fact Krejsa 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 Krejsa 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 Aug. 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 Dec. 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 Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office made the announcement.
The FBI Indianapolis Field Office investigated the case.
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 Co-Owner and Sales Manager of defunct medical testing lab sentenced to prisonRead the Press Release
Seattle – A resident of Astoria, Oregon was sentenced today in U.S. District Court in Seattle to two years in prison for five federal felonies connected to his scheme to profit from illegal kickbacks in the medical testing industry, announced U.S. Attorney Nick Brown. Richard Reid, 53, was convicted in March 2022, following a six-day jury trial. At today’s sentencing hearing, U.S. District Judge John C. Coughenour denied a defense motion to postpone the prison sentence while Reid appeals his conviction.
“Mr. Reid was the architect of a scheme to illegally profit on toxicology tests that were paid for by government insurance,” said U.S. Attorney Brown. “The web of referrals and kick-backs led to significant profits for NWPL and its owners. Such illegal kick-backs simply inflate medical costs for the rest of us.”
The activities of Bellevue-based Northwest Physicians Laboratory (NWPL) have been the subject of extensive civil and criminal litigation. Richard Reid was one of the owners and the Vice President of Sales for NWPL. Reid helped NWPL obtain more than $3.7 million in kickback payments by steering urine drug test specimens to two labs that could bill the government for testing. This resulted in government payments to those two labs of more than $6.5 million.
According to records filed in the case between January 2013 and July 2015, two labs, that were not physician owned, made payments to NWPL in exchange for referrals of Medicare and TRICARE program business, in violation of the Anti-Kickback Statute. Paying remuneration to medical providers or provider-owned laboratories in exchange for referrals encourages providers to order medically unnecessary services. The Anti-Kickback Statute functions, in part, to discourage such behavior. NWPL was physician-owned, and for that reason could not test urine samples for patients covered by government health programs such as Medicare, Medicaid, and TRICARE. In order to conceal the payment of the kickbacks, Reid and other co-conspirators involved described the fees as being for marketing services; however, no marketing services were performed.
In the sentencing memo asking that Reid receive the same two-year sentence as CEO Jae Lee, prosecutors described his role writing, “Reid hid the truth and kept the cover story in place by lying to his sales force, lying to providers, and sharing fraudulent opinion letters from attorneys. NWPL grew and the money – including illegal kickbacks – rolled in. The kickbacks increased as time went on, and totaled almost $5 million. As the proceeds of the crime rose, so did Reid’s monthly distributions -- from $10,000 in 2013 to $50,000 in 2015.”
Reid was convicted of one count of conspiracy to solicit and receive kickbacks involving health care programs and four counts of receipt of kickbacks.
The company, NWPL, pleaded guilty in February 2021 and was sentenced to pay $8,114,417 in restitution joint and several with the other criminal defendants. NWPL has dissolved. To date, the labs and individuals involved in this investigation have paid more than $14 million to settle related civil allegations.
In addition to Reid, three other defendants have pleaded guilty and await sentencing. Former NWPL CEO Jae Lee was sentenced to two years in prison in May 2022. Kevin Puls, the former Executive Director of NWPL was sentenced to 90 days in prison and a year of supervised release.
"Mr. Reid's sentencing culminates his part in a years-long investigation wherein he was convicted last year for actively orchestrating and personally benefiting from a scheme to corrupt and defraud the healthcare system, including the Department of Defense's TRICARE program," said Bryan D. Denny, the Special Agent in Charge of the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. "DCIS will continue to work with its partners to root out fraudulent activities, like those in this particular investigation, that weaken TRICARE and inevitably increase costs unnecessarily."
“Mr. Reid let his greed get in the way of doing what was right by taxpayers” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “He solicited and received hundreds of thousands of dollars in kickbacks. Ultimately, frauds like these inflate health care costs for the rest of us. I applaud the work of our investigators and partners to hold Mr. Reid accountable, provide justice to the victims, and bring his crimes to an end.”
The case was investigated by the FBI, Health and Human Services Office of Inspector General (HHS-OIG), and the Defense Criminal Investigative Service (DCIS).
The case was prosecuted by Assistant United States Attorney Michael Dion and former Assistant United States Attorney Brian Werner.
Five Florida Men Sentenced for Conspiracy and Interstate Transportation of over $1.3 Million of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Five men were sentenced today for their roles in a conspiracy to transport over $1.3 million worth of stolen perfume products out of New Jersey to Florida, U.S. Attorney Philip R. Sellinger announced.
Carlos Duvergel, 58, of Miami Gardens, Florida, was sentenced to 33 months in prison. Four defendants residing in Hialeah, Florida, were also sentenced: Juan Crespo, 46, was sentenced to 37 months in prison; Felix Castillo, 49, was sentenced to 33 months in prison; Asnay Fernandez, 32, was sentenced to 33 months in prison; and Ismael Manzano-Suarez, 25, was sentenced to 33 months in prison. The defendants were previously convicted at trial before Judge Peter G. Sheridan with conspiring to transport stolen property in interstate commerce and transportation of stolen property in interstate commerce. Judge Sheridan imposed the sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
In November 2017, the defendants broke into a warehouse storing perfume products in Edison, New Jersey, and drove away with two tractor trailers filled with stolen perfume products. The value of the stolen perfume products was over $1.3 million. The defendants were arrested in May 2018 while attempting to break into another perfume warehouse in East Brunswick, New Jersey.
In addition to the prison term, Judge Sheridan sentenced each defendant to three years of supervised release and were ordered to pay total restitution of $1.36 million.
U.S. Attorney Philip R. Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencings. He also thanked the Edison Police Department, the East Brunswick Police Department, and the Middlesex County Prosecutor’s Office, for their assistance with the investigation.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the National Security Unit and Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime and Gangs Unit in Newark.
Federal Prosecutors Aggressively Pursuing Those Who Lie in Connection with Firearm TransactionsRead the Press Release
OKLAHOMA CITY — The Western District of Oklahoma is aggressively seeking to keep firearms out of the wrong hands by pursuing those who lie in connection with gun purchases. Several recent cases charged in federal court highlight these efforts.
Federal law prohibits knowingly making any false statement in connection with purchasing, or attempting to purchase, a firearm. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) requires prospective firearm buyers to complete ATF Form 4473. This Form requires buyers to answer several questions, including those about the buyer’s competency, criminal history, drug use, immigration status, and history with domestic violence. Applicants who knowingly make false statements may also face criminal prosecution for a felony and up to 10 years in federal prison. Federal Firearms Licensees (FFLs), who sell or transfer a firearm to a prohibited person, allow a straw purchaser to buy a gun for someone else, or fail to keep proper records of who they sell firearms to may also face criminal prosecution. Before attempting to purchase a firearm, prospective buyers who have eligibility concerns should visit www.atf.gov or contact their local ATF field office.
"Keeping guns out of the hands of those who shouldn’t have them is of paramount concern," said U.S. Attorney Robert J. Troester. "We will use the tools available to us to pursue those who use a straw purchaser or lie when trying to buy a gun. We will continue to work closely with ATF and our law enforcement partners to prevent guns from falling into the wrong hands by holding accountable those who lie to get them."
"ATF and its’ partners work tirelessly to keep firearms out of the hands of those who should not have them. There is no higher priority than protecting our citizens and their loved ones from firearms violence. The lesson learned here is that if you buy a gun for someone that shouldn’t have one, you will go to prison. And trust me, prison is not somewhere you want to be," stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
The following recent cases brought in federal court are examples of efforts in the Western District to hold defendants accountable for making false statements in connection with the attempted purchase or purchase of a firearm or related offenses:
Sentencings:
- AMY CARWILE, 46, and KEVIN CARWILE, 48, both of Purcell, Oklahoma, were sentenced on August 3, 2022, to serve three months in federal prison. According to public record, the Carwiles were engaged in the business of selling firearms, and dating back to 2012, they made false statements and failed to maintain proper records in connection with their firearm business. Transaction records indicate that the Carwiles had sold approximately 253 firearms through their off-the-books operation. Records further reflect law enforcement seized 112 firearms that were to be sold without completing the appropriate and required paperwork. Their federal firearms license to sell firearms has been revoked.
- EDDIE WAYNE MORRISON, 34 of Duncan, Oklahoma, was sentenced to time-served, or essentially 16 months in federal custody, on December 29, 2022, for making a false statement during the purchase of a firearm. According to public record, Morrison purchased a firearm from EZ Pawn in Duncan. Prior to purchasing a firearm, Morrison had been deemed incompetent by a court. He was also subject to a protective order in Love County. A judge had ordered Morrison detained in federal custody since August 12, 2021, until sentencing. He is currently serving a term of two years of supervised release.
Guilty Pleas:
- HERIBERTO FLORES, 29, of Oklahoma City, pleaded guilty on April 5, 2022, to illegal possession of ammunition as a convicted felon. According to public record, Flores was at an Oklahoma City Fairgrounds gun show with another individual, Haley Adkison, where officers observed the two looking at different handguns. Law enforcement pulled over Flores after he left the gun show and found him in possession of ammunition. At sentencing, Flores faces up to ten years in federal prison.
- HALEY LEEANNE ADKISON, 24, of Oklahoma City, pleaded guilty on August 18, 2022, to making a false statement during a firearms transaction. According to public record, Adkison was observed completing paperwork regarding the purchase of firearms at an Oklahoma City Fairgrounds gun show, after looking at different firearms with Heriberto Flores. Adkison was scheduled to take possession of six firearms at the vendor’s store in Tulsa, Oklahoma. At sentencing, Adkison faces up to ten years in federal prison.
- JOSHUA DAVID MOSELEY, 31, of Harrah, Oklahoma, pleaded guilty on September 6, 2022, to making a false statement during the purchase of a firearm. According to public record, Moseley attempted to purchase a firearm from Super Pawn #2 Inc., in Oklahoma City. Moseley checked “no” for having been convicted in any court of a misdemeanor crime of domestic violence. Public records show that, on January 6, 2022, Mosely was convicted of misdemeanor domestic assault and battery in Oklahoma County District Court case CM-2021-1377. At sentencing, Moseley faces up to 10 years in federal prison.
- BRIONJRE MARTAI ODELL HAMILTON, 22, of Oklahoma City, pleaded guilty on October 10, 2022, to making false statements during attempted purchases of firearms. According to public record, on May 25, 2022, Hamilton was convicted of carrying a firearm under the influence of drugs (marijuana) in Oklahoma County District Court case CM-2021-3533. Thereafter, records reflect Hamilton lied on the ATF Form 4473 regarding his eligibility to purchase firearms and attempted to purchase firearms on four separate occasions, after the ATF informed Hamilton that he was a prohibited from doing so. At sentencing, Hamilton faces up to 10 years in federal prison on all four counts.
- NEMORY ZAHID RAMOS CASTRO, 22, of Oklahoma City, pleaded guilty on January 5, 2023, for making a false statement during the purchase of a firearm. According to public record, Ramos made false written statements in connection with the purchases of two assault-style firearms, one in Oklahoma City and one in Luther, Oklahoma. In one instance, Ramos submitted the ATF Form 4473 stating he was not acquiring the assault-style firearm for another person, but a few hours after the transfer law enforcement found another individual in possession of it during a traffic stop. At sentencing, Castro faces up to ten years in federal prison on both counts.
Sentencings hearing in federal criminal cases take place approximately 90 days after a plea of guilty. Reference is made to public filings for more information.
This case is part of Project Safe Neighborhoods, the Department of Justice’s signature nationwide initiative that brings together federal, state, local, and tribal law enforcement officials and prosecutors to address violent crime, reduce gun violence, and enforce federal firearms laws.
Federal Judge Sentences Man to More Than Five Years in Prison for Illegally Possessing Firearm in RockfordRead the Press Release
ROCKFORD — A federal judge has sentenced a Rockford man to more than five years in federal prison for illegally possessing a firearm in Rockford.
U.S. District Judge Iain D. Johnston on Friday sentenced MARCUS CLAY, 23, to five years and two months in prison. Clay pleaded guilty in September 2022 to a charge of illegal firearm possession. As a previously convicted felon, Clay was prohibited by federal law from possessing firearms. Clay admitted in a plea agreement that while in Rockford on Oct. 27, 2021, he possessed a loaded handgun with an extended magazine. The magazine was loaded with an additional 29 rounds of ammunition.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey L. Matthews, Acting Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and Carla Redd, Chief of the Rockford Police Department. The government was represented by Special Assistant U.S. Attorney Theodora Anderson, a prosecutor with the Winnebago County State’s Attorney’s Office who is working with the U.S. Attorney’s Office under a federal grant to prosecute certain firearm offenses in federal court.
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Federal Charges Announced Against Maine Man Who Carried Out Machete Attack in Times Square on New Year’s Eve in Name of JihadRead the Press Release
Trevor Thomas Bickford, 19, of Wells, Maine, 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.
“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,” said Attorney General Merrick B. Garland. “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.”
“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,” said U.S. Attorney Damian Williams for the Southern District of New York. “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.”
“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,” said FBI Director Christopher Wray. “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.”
“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,” said Assistant Director Michael J. Driscoll of the FBI New York Field Office. “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.”
“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,” said NYPD Commissioner Keechang L. Sewell. “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:
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.
Bickford is charged 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 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 is investigating the case.
Assistant U.S. Attorneys Sarah L. Kushner and Kaylan E. Lasky for the Southern District of New York are prosecuting the case, with assistance from Trial Attorney D. Andrew Sigler of the National Security Division’s Counterterrorism Section.
A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Downstate Man Sentenced for Trafficking in Prohibited WildlifeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Jose A. Der, Jr., 50, of Brooklyn, NY, who was convicted of trafficking in prohibited wildlife, was sentenced to serve two years’ probation and a $10,000 fine payable to the Lacey Act Reward fund by U. S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Aaron J. Mango, who handled the case state that in November 2016, Der owned a business, Der Dau Custom Made Boots & Shoes, Inc., in Brooklyn, NY. Der used Der Dau’s corporate delivery account to have four shipments of custom-made boots imported from Canada at the Peace Bridge Port of Entry. The shipments contained nine pairs of boots trimmed with exotic wildlife skins, including stingray, crocodile, python, and monitor lizard. The boots, which were being returned to Der for alteration and/or repair but were intercepted and inspected at the border and subsequently seized by the U.S. Fish and Wildlife Service (USFWS). The boots were not declared to USFWS and no required permits accompanied the shipments. The seized boots were valued at approximately $20,593. The investigation determined that following the boot seizures, Der replaced the Canadian customer’s boots but did not declare the replacement boots to USFWS or obtain permits. Between 2015 and 2020, 48 additional pairs of custom-made boots comprised with exotic wildlife leathers were shipped in international commerce by Der to customers. Der did not file a declaration with USFWS or obtained permits. The value of the custom boots which were unlawfully shipped in international commerce is $129,361.
The sentencing is the culmination of an investigation by the United States Fish and Wildlife Service, under the direction of Ryan Noel, Special Agent-in-Charge of the USFWS-Office of Law Enforcement North-Atlantic Appalachian Region, the New York State Department of Environmental Conservation, and Environment and Climate Change Canada, under the direction of Robert Baxter, Operations Manager, Wildlife Enforcement Directorates Major Case Unit, Ontario Region.
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Dominican Man Previously Convicted in Fentanyl Distribution Conspiracy Pleads Guilty to Illegal ReentryRead the Press Release
BOSTON – A Dominican man pleaded guilty today in federal court in Boston to illegally reentering the United States after deportation.
Milton Jose Arias, 32, pleaded guilty to one count of unlawful reentry before U.S. District Court Judge Allison D. Burroughs, who scheduled sentencing for April 4, 2023.
Arias is a citizen of the Dominican Republic who illegally entered the United States at an unknown time and location without inspection. In July 2019, Arias was convicted in federal court in Boston of fentanyl distribution and fentanyl distribution conspiracy and, in March 2020, was removed from the United States.
In January 2022, Arias was found to have unlawfully reentered the United States without the appropriate permission sometime after his removal.
The charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.United States Attorney Rachael S. Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Lawrence Police Chief Roy P. Vasque made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit is prosecuting the case.
Defendant Sentenced in Groundbreaking Cryptocurrency Insider Trading CaseRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that NIKHIL WAHI was sentenced by U.S. District Judge Loretta A. Preska to 10 months in prison for his participation in a scheme to commit insider trading in cryptocurrency assets by using confidential information from his brother, a former product manager at Coinbase Global, Inc. (“Coinbase”), about which crypto assets were scheduled to be listed on Coinbase’s exchanges. WAHI previously pled guilty to one count of conspiracy to commit wire fraud.
U.S. Attorney Damian Williams said: “At a time when the cryptocurrency markets have been plagued by fear, uncertainty, and doubt, insider trading creates the impression that everything is rigged and that only people with secret advantages can make a real buck. Today’s sentence makes clear that the cryptocurrency markets are not lawless. There are real consequences to illegal insider trading, wherever and whenever it occurs.”
According to the allegations in the Indictment and statements made in public court proceedings and filings:
Beginning in approximately October 2020, NIKHIL WAHI obtained from his brother, an employee of Coinbase working on highly confidential crypto asset listings, secret tips about which crypto assets would be listed on Coinbase. Using that insider information, NIKHIL WAHI used anonymous Ethereum blockchain wallets and accounts held under pseudonyms at centralized cryptocurrency exchanges to acquire those crypto assets shortly before Coinbase publicly announced that it was listing these crypto assets on its exchanges. On multiple occasions following Coinbase’s public listing announcements, NIKHIL WAHI sold the crypto assets for a profit.
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In addition to the prison sentence, WAHI, 27, of Seattle, Washington, was ordered to pay $892,500 in forfeiture.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation. He also acknowledged the assistance of the Justice Department’s National Cryptocurrency Enforcement Team, as well as that of the Securities and Exchange Commission, which separately initiated civil proceedings against WAHI.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Noah Solowiejczyk and Nicolas Roos are in charge of the prosecution.
Coventry Man Charged with Fraudulently Obtaining COVID-19 Relief FundsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Jean Pierre Njock, Acting Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that JOHN MATAVA, 58, of Coventry, has been charged by federal criminal complaint with offenses related to his receipt of COVID-19 relief funds.
Matava was arrested on January 7, 2023. He appeared yesterday before U.S. Magistrate Judge Thomas O. Farrish in Hartford and was released on a $60,000 bond.
In March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided emergency financial assistance to Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP). In April 2020, Congress authorized more than $300 billion in additional PPP funding. The PPP allowed qualifying small businesses and other organizations to receive unsecured loans at an interest rate of 1%. PPP loan proceeds were to be used by businesses on payroll costs, interest on mortgages, rent and utilities. The PPP allowed the interest and principal to be forgiven if businesses spent the proceeds on these expenses within a certain period of time of receipt and used at least a certain percentage of the amount to be forgiven for payroll.
The PPP was overseen by the Small Business Administration, which has authority over all PPP loans. Individual PPP loans, however, were issued by private approved lenders, such as Celtic Bank, which received and processed PPP applications and supporting documentation, and then made loans using the lenders’ own funds, which were guaranteed by the SBA.
As alleged in the criminal complaint, in April 2020, Matava applied to Celtic Bank for a $100,000 PPP loan for J.M. Builders LLC. The application submission included several false representations, including that J.M. Builders LLC had eight employees and an average monthly payroll of $40,000; that the monies would be used for payroll, lease, mortgage, interest and utilities; and that the business owner was not subject to pending formal criminal charges. At the time of the PPP loan application, there were no records of payroll or employees with the Connecticut Department of Labor for J.M. Builders LLC, and Matava was subject to criminal charges in two pending cases related to arrests in 2017 and 2018.
It is alleged that on April 22, 2020, Celtic Bank disbursed $100,000 to a bank account for J.M. Builders LLC on which Matava was the signatory. The account was opened on April 21, 2020, and had a balance of $0 immediately prior to the loan funds being disbursed. Between April 2020 and January 2021, Matava used the funds primarily for personal expenditures, including $3,498 to pay a dog breeder, $4,777 for payments to an RV superstore in Connecticut, and legal fees, including a $2,000 retainer, for four court cases in Rockville, Connecticut.
It is further alleged that in January 2021, Matava sought $100,000 in additional PPP funds from Celtic Bank, and included with the application several additional false statements and fraudulent tax documents. Celtic Bank denied the application.
The complaint charges Matava with wire fraud affecting a financial institution, which carries a maximum term of imprisonment of 30 years, and with making an illegal monetary transaction, which carries a maximum term of imprisonment of 10 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721, or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Connecticut Man Sentenced for Cyberstalking and Threatening Massachusetts WomanRead the Press Release
BOSTON – A Connecticut man was sentenced today in federal court in Boston for threatening, harassing and intimidating a Massachusetts woman through social media and email.
Marshall Nicholas Fain, 32, of New Haven, Conn., was sentenced by U.S. District Court Judge Angel Kelley to 46 months in prison and three years of supervised release. In August 2022, Fain pleaded guilty to one count of cyberstalking and one count of transmitting threats through interstate commerce.
“When relationships end people need to act appropriately, even when they are upset, and move on. Mr. Fain obviously was not capable of doing so. Now he has been sentenced to 46 months in prison because he terrorized and threatened to kill his ex-girlfriend and her family. Stalking and violently threatening others – whether online or in person – is a serious, federal crime. Thanks to the victim’s strength and immediate action, Mr. Fain is now a convicted felon,” said United States Attorney Rachael S. Rollins. “Although today’s sentence can’t erase the pain and suffering Mr. Fain caused, we hope it brings the victim and her family solace in knowing he has been held accountable and will be removed from our community.”
“Marshall Fain used his words as weapons, sending threatening messages to harass and intimidate his ex-girlfriend and her family. His actions were intended to inflict emotional harm and the fear of physical violence and that’s exactly what they did. We thank the victim for her bravery in helping us put him behind bars,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Cyberstalking is a serious crime, and you can be sure the FBI will continue to work to identify others like Mr. Fain who are using today’s technology in such a despicable way.”
Fain was in a relationship with the victim for approximately two years, until the relationship ended in August 2021. Soon after, in September 2021 and continuing through December 2021, Fain sent the victim multiple private messages through email and social media threatening to kill the victim and members of her family.
Fain created multiple social media and email accounts which he used to harass and threaten the victim anonymously. Specifically, Fain used anonymous Instagram and Facebook accounts to send the victim messages that said, among other things, “I’ll kill you” and “You gonna get yours if it’s the last thing I do.” Fain also used anonymous email addresses to send the victim threatening messages that said, among other things, “I’m gonna find you and kill you if it’s the last thing I do,” “By now you know I don’t give a f*** about my own life so I really don’t mind taking yours,” and “When the time is right you gonna be one of the girls going missing. Ima torture the f*** out of you when I catch you.”
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The Federal Bureau of Investigation, New Haven Division provided valuable assistance in the matter. Assistant U.S. Attorney Evan Gotlob of Rollins’ Major Crimes Division prosecuted the case.
Columbia Man, Gang Member, Sentenced to 46 months in Federal Prison for Multiple Firearms OffensesRead the Press Release
COLUMBIA, SOUTH CAROLINA —David Bryant III, 25, of Columbia, was sentenced to more than 46 months in federal prison after pleading guilty to possession of a stolen firearm, possession of a firearm with an obliterated serial number, and possession of a firearm by a felon.
Evidence presented to the Court showed that on January 28, 2020, officers with the U.S. Marshals Fugitive Task Force located Bryant in the passenger seat of a vehicle on Wilkes Road in Columbia and arrested him on an outstanding warrant. The arresting officers smelled marijuana coming from the vehicle and the driver confirmed marijuana was present. Officers searched the vehicle and found marijuana as well as a 12-gauge shotgun, a 9mm pistol, and .40 caliber pistol. The serial number on the 9mm pistol had been completely removed.
After law enforcement read Bryant his Miranda rights, he confirmed that all of the firearms belonged to him and that the .40 caliber pistol was given to him after it was stolen by a friend. At the time of his arrest, Bryant was a known member of a street gang, and his prior convictions for assault and battery 1st degree and discharging a firearm into a dwelling disqualified him from possessing a firearm or ammunition.
United States District Judge Mary Geiger Lewis sentenced Bryant to 46 months in prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the City of Columbia Police Department. Assistant U.S. Attorney Lamar J. Fyall is prosecuting the case.
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Charlotte Man Is Convicted of Defrauding the North Carolina Medicaid ProgramRead the Press Release
CHARLOTTE, N.C. – A federal jury in Charlotte has convicted Donald Booker, 57, of Charlotte, of multiple federal charges in connection with a scheme to obtain more than $11 million from the North Carolina Medicaid program, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. On December 9, 2022, Booker’s co-defendant, Delores Jordan, 54, of Louisville, Kentucky, pleaded guilty for her role in the fraudulent scheme.
Joining U.S. Attorney King in making today’s announcement are Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, (IRS-CI) Charlotte Field Office, and North Carolina Attorney General Josh Stein, who oversees the North Carolina Medicaid Investigations Division (MID).
According to filed court documents, trial evidence and witness testimony, Booker owned United Diagnostic Laboratories (UDL), a urine toxicology testing laboratory, and United Youth Care Services (UYCS), a company that provided mental health and substance abuse treatment services. Booker’s co-defendant, Jordan, owned Legacy Housing, a housing provider. Trial evidence established that, from January 2016 to August 2019, Booker and his co-conspirators executed a conspiracy to defraud the North Carolina Medicaid program by paying illegal kickbacks to Jordan and other co-conspirators in exchange for urine samples from Medicaid-eligible beneficiaries.
As Jordan previously admitted in court, she and other co-conspirators recruited housing-vulnerable individuals and other Medicaid-eligible beneficiaries for housing and other programs and services. Once enrolled, the beneficiaries were required to submit urine specimens for drug testing as a condition of their participation in the program. The specimens were provided to UDL and UYCS for medically unnecessary urine drug testing. Booker and his co-conspirators paid the recruiters a kickback from UYCS’s NC Medicaid reimbursement on the drug testing. According to evidence presented at trial, Booker and Jordan also executed a conspiracy to launder the proceeds of the kickback and health care fraud conspiracy in order to conceal and disguise the nature and source of UYCS’s illegal kickback payments for drug testing referrals.
The jury convicted Booker of conspiracy to commit health care fraud, multiple violations of the Anti-Kickback Statute, money laundering conspiracy, and money laundering. Jordan pleaded guilty to healthcare fraud conspiracy and money laundering conspiracy. A sentencing date for the defendants has not been set.
The FBI, IRS-CI, and NC Medicaid Investigations Division investigated the case.
Assistant U.S. Attorneys Graham Billings and Michael Savage of the U.S. Attorney’s Office in Charlotte are prosecuting the case.
Charleston Man Pleads Guilty to Fentanyl and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Doran King Burroughs Jr., 23, of Charleston, pleaded guilty today to distribution of 40 grams or more of fentanyl and being a felon in possession of firearms.
According to court documents and statements made in court, on August 10, 2022, Burroughs sold approximately 102 grams of fentanyl to a confidential informant while outside a Charleston business in the informant’s vehicle. Burroughs admitted to that transaction and an additional sale of approximately 51 grams of fentanyl to a confidential informant on May 4, 2022, in the informant’s vehicle.
On August 11, 2022, law enforcement officers executed a search warrant at Burroughs’ residence. Burroughs admitted that officers found approximately 76 grams of fentanyl, a drum magazine loaded with 7.62x39mm ammunition, a Spartan Armor System body armor carrier, and four firearms: a Glock, model 17, 9mm pistol; a PAP, model M92PV, 7.62-caliber pistol; a Glock, model 43X, 9mm pistol; and a Bushmaster model xm15-e25, .223-caliber rifle. Burroughs admitted to possessing the fentanyl with the intent to distribute it.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Burroughs was prohibited from possessing firearms because of his conviction for first-degree possession of a controlled substance, first offense, in Boone County, Kentucky, Circuit Court on March 7, 2022.
Burroughs is scheduled to be sentenced on May 3, 2023, and faces a mandatory minimum of five years and up to 55 years in prison, four years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Metropolitan Drug Enforcement Network Team (MDENT).
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Andrew D. Isabell is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-172.
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Buffalo Man Going to Prison for Selling Crack CocaineRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Nikita Burt, 39, of Buffalo, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, crack cocaine, was sentenced to serve 21 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Timothy C. Lynch, who handled the case, stated that between October 2021, and January 12, 2022, Burt supplied crack cocaine to co-defendant David Garrett, who then sold the cocaine to an individual working with the Drug Enforcement Administration (DEA). Between November and December 2021, the DEA conducted three controlled purchases of cocaine from David Garrett. On January 12, 2022, DEA agents executed search warrants on Burt’s vehicle and his Mortimer Street residence, which agents believed he was utilizing as a location to store drugs. During the search of Burt’s vehicle, they recovered $2,334 in cash. During the search of Burt’s Mortimer residence, agents recovered three defaced handguns. One of the handguns was linked to Burt through DNA analysis.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Brighton Man Pleads Guilty to $1.5 Million COVID-Relief FraudRead the Press Release
BOSTON – The owner of a Massachusetts-based food truck business pleaded guilty today to filing fraudulent loan applications in order to obtain $1.5 million in pandemic relief under the Coronavirus Aid, Relief and Economic Security (CARES) Act and the American Rescue Plan Act.
Loc Vo, 55, pleaded guilty to one count of wire fraud. U.S. Senior District Court Judge William G. Young scheduled sentencing for May 3, 2023. Vo was arrested and charged in July 2022.
Vo owned Smart Gourmet LLC (Smart Gourmet), a food truck business in Massachusetts, and Indy Publish, a dormant Maryland company. Between April 2020 and July 2021, Vo submitted loan applications on behalf of these businesses under three Small Business Administration (SBA) pandemic relief programs: the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan Program (EIDL), and the Restaurant Revitalization Fund (RRF). In these applications, Vo requested approximately $1.5 million and committed to use the funds for rent, mortgage interest, payroll and utilities, among other eligible expenses.
After receiving the relief funds, Vo immediately transferred most of them to brokerage accounts in his name to purchase shares in an electric car manufacturer, an internet marketplace company and a biotechnology company, among others.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the RRF to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
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.
Berkley Nurse Sentenced for Tampering with Patients' FentanylRead the Press Release
BOSTON – A Berkley nurse was sentenced yesterday in federal court in Boston for tampering with fentanyl intended for patients at a hospital’s post-surgery recovery unit and an outpatient vascular surgery center.
Hugo Vieira, 42, was sentenced by U.S. District Court Judge Angel Kelley to five years of probation, with the first year to be served in home detention. Vieira was also ordered to pay a fine of $20,000. The government recommended a sentence of 38 months in prison and three years of supervised release. In May 2022, Vieira pleaded guilty to one count of tampering with a consumer product.
From 2017 to January 2019, while working at a Massachusetts hospital and an outpatient vascular surgery center, Vieira removed fentanyl from vials meant for patients who were undergoing surgery or recovering from surgery. To conceal his conduct, Vieira replaced the diverted fentanyl with saline. When his conduct was discovered, law enforcement identified 60 tampered vials at the vascular surgery center and two vials at the hospital post-surgery recovery unit. Those vials contained only 1.3–7% of the declared concentration of fentanyl citrate.
United States Attorney Rachael S. Rollins; Fernando McMillan, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health made the announcement. Assistant U.S. Attorneys Elysa Q. Wan and David J. Derusha of Rollins’ Criminal Division prosecuted the case.
Monday 9 January 2023
Wilmer Man Sentenced to Ninety-Two Months Imprisonment for Mailing Suboxone Strips to Inmates in Federal PrisonRead the Press Release
John Robert Payne, of Wilmer, was sentenced today to ninety-two months imprisonment for conspiracy to distribute a controlled substance and providing contraband to a federal prisoner. The sentence was handed down by United States District Court Judge Kristi K. DuBose. Payne previously pled guilty to the offenses.
Documents filed with the court established that investigators with the Yazoo City Federal Correctional Complex (YCFCC) in Mississippi discovered that Payne mailed two letters, on two separate dates, to inmates at the prison. The envelopes contained a total of thirty-four Suboxone (Buprenorphine) strips. The first letter was mailed on August 31, 2021, to an inmate and it contained twenty strips of Suboxone. The Suboxone was hidden between two pictures. On September 21, 2021, Payne mailed a second letter into YCFCC to a different inmate containing fourteen Suboxone (Buprenorphine) strips. In this envelope, the Suboxone strips were hidden between a picture and a Walmart receipt. Suboxone (Buprenorphine) is a schedule III synthetic opioid.
Investigators also recovered a recorded telephone call from Payne to an inmate at YCFCC in which Payne and the inmate discuss a letter that Payne sent into the prison. During the same conversation, Payne discusses drugs and drug usage at YCFCC with the inmate. At the time Payne mailed the opioids to the inmates he was on supervised release with the federal probation office after serving a federal prison term for possession with the intent to distribute methamphetamine and possession of a firearm in furtherance of drug trafficking.U.S. Attorney Sean P. Costello praised the outstanding work of the investigators in detecting the opioid drugs and the partnering of multiple investigative agencies to bring the defendant to justice.
This case was investigated by Investigators at the YCFCC, the United States Postal Inspection Service and the Department of Homeland Security, Homeland Security Investigations (HSI). The case was prosecuted by Assistant United States Attorneys George F. May and Lawrence J. Bullard.
Washington, D.C. Man Sentenced to 54 Months in Prison for Downloading Child PornographyRead the Press Release
Man Apprehended After Using the Dark Web
WASHINGTON – John Green, 81, of the District of Columbia, was sentenced today to 54 months in prison for accessing and downloading child pornography. The sentence was announced by U.S. Attorney Matthew M. Graves, and Special Agent in Charge Wayne A. Jacobs, of the FBI Washington Field Office’s Criminal and Cyber Division.
Green pleaded guilty on October 25, 2022, in the U.S. District Court for the District of Columbia, before the Honorable Colleen Kollar-Kotelly. Green must also pay $18,000 in restitution to his victims. Upon completion of his prison term, he will be placed on five years of supervised release and will be required to register as a sex offender for 15 years.
According to the government’s evidence, in May of 2019, Green used his computer to access a website on the Dark Web that offered individuals the opportunity to access and download child sexual abuse material, featuring children as young as infants. At the time of this criminal offense, Green was 78 years old. In July of 2021, law enforcement obtained a search warrant for Green’s home. A laptop computer was seized which, when forensically examined, was found to contain over nine hundred images and videos of child pornography. Additionally, numerous DVDs and books were discovered which featured children in various states of undress, and in sexually explicit situations.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation and Human Trafficking Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Graves and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI's Child Exploitation and Human Trafficking Task Force, which includes members of the FBI's Washington Field Office and MPD’s Youth Investigations Division. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorney Amy E. Larson, who prosecuted the case.
Virginia Man Pleads Guilty to Conspiring to Violate Iranian SanctionsRead the Press Release
Greenbelt, Maryland – Behrouz Mokhtari, age 72, of McLean, Virginia and Tehran, Iran, a native of Iran and a naturalized citizen of the United States, pleaded guilty today to two conspiracies to violate sanctions imposed by the United States on Iran regarding the exportation, re-exportation, sale, or supply directly or indirectly, any goods, technology, or services to Iran.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, from at least March 2018 until at least September 2020, Mokhtari conspired with his co-defendant and others to evade Iranian sanctions by engaging in business activities on behalf of Iranian entities without first obtaining the required licenses from the Office of Foreign Assets Control (OFAC).
Mokhtari held management positions and/or maintained ownership control of multiple business in Iran and the United Arab Emirates (“UAE”), referred to collectively as “the FSR Network.” Mokhtari and his co-conspirators used the FSR Network to provide services to Iranian entities and engage in transactions involving Iranian petrochemical products, including refining petrochemical products and transporting them by sea. Mokhtari and his co-conspirators used bank accounts located in the UAE, including Bitubiz FZE, which was part of the FSR Network and over which Mokhtari exercised partial or complete control, to process these U.S. dollar transactions.
Mokhtari admitted that Bitubiz operated as a conduit for the FSR Network to conceal the fact that Mokhtari and his co-conspirators were engaging in financial transactions with, and providing services to, Iranian entities. Bitubiz maintained daily ledgers which recorded the receipt and transfers of funds. After receiving an incoming wire transfer, Bitubiz would credit most of that amount to Ayegh Isfahan Manufacturing Company (“AIM”). Mokhtari and others held ownership interests in AIM, which was located in Iran, was engaged in the petrochemical industry, and was part of the FSR Network.
As stated in his guilty plea, from about February 2013 until at least June 2017, Mokhtari and a number of Iranian nationals engaged in a conspiracy to conduct illicit shipments of petrochemical products to and from Iran, in violation of the Iranian sanctions and used the U.S. financial system to facilitate such shipments. In furtherance of the scheme, Mokhtari created a front company in Panama, East & West Shipping, Inc., to purchase two liquid petroleum gas (LPG) tanker vessels for approximately $38 million. These vessels were subsequently used to transport Iranian petrochemical products in international commerce on behalf of, and to benefit, Iranian entities associated with the Government of Iran.
After using East & West to purchase the two vessels (LPG Vessel 1 and 2), Mokhtari transferred ownership of the vessels to other entities, in order to conceal the conspirators’ financial and ownership interest in the two vessels. The conspirators then used another entity, Greenline Shipholding, Inc., to control operations of LPG Vessels 1 and 2. For example, through email communications from Greenline email accounts, or email accounts containing some variation of the Greenline name, the conspirators directed Company 5, a ship management company, to oversee the leasing and operation of LPG Vessel 1 and 2 to transport Iranian petrochemical products from Iranian ports to other locations and to participate in ship-to-ship transfers of Iranian products while on the high seas.
The conspirators, including Mokhtari, used the United States financial system to engage in transactions related to the hiring of the vessels and other expenses. In addition, Mokhtari and his co-conspirators frequently communicated by email about the nature and source of the products that the vessels were transporting, as well as the use of false shipping documents and other measures taken to conceal the fact that the vessels were transporting products to and from Iran, in order to evade the Iranian sanctions.
At some point prior to May 2017, ownership of LPG Vessel 1 was transferred to Russell Shipping, Inc., which was owned by Mokhtari. On May 30, 2017, Mokhtari sold LPG Vessel 1 to be scrapped for more than $3.1 million. Mokhtari received a total of $2,862,591.12 from that sale. The purchaser wired funds to accounts at two separate banks held in the name of Mori Construction and Development, LLC (Mori Construction). Mokhtari was the sole owner of Mori Construction and controlled both bank accounts. Through a series of inter-account transfers and check payments, by September 2017 all of the proceeds from the sale of LPG Vessel 1 were located in a third account, over which Mokhtari and his daughter had signature authority. In March 2018, Mokhtari used those proceeds to purchase a home in Campbell, California for $1,512,000.
Mokhtari admitted that he knew that, as a United States citizen, he was prohibited from engaging in business with or providing services to Iranian entities, without first obtaining a license or permission from OFAC to do so. Neither Mokhtari, nor any of his co-conspirators ever applied for or obtained such a license. Mokhtari further knew that it was illegal to engage in transactions intended to evade Iranian sanctions, or to engage in transactions related to goods and services of Iranian origin or export.
As part of his guilty plea, Mokhtari must forfeit money, property, and/or assets derived from, obtained as the result of, or used to facilitate the commission of his illegal activities, including the residence he purchased in Campbell, California and a money judgment in the amount of approximately $2,862,598.12.
Mokhtari faces a maximum sentence of five years in federal prison for each of the two conspiracy counts. U.S. District Judge George J. Hazel has scheduled sentencing for April 3, 2023 at 10:00 a.m.
United States Attorney Erek L. Barron commended FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kathleen O. Gavin, 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 www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Virginia Man Pleads Guilty to Conspiring to Violate Iranian SanctionsRead the Press Release
Behrouz Mokhtari, 72, of McLean, Virginia, and Tehran, Iran, a naturalized U.S. citizen, pleaded guilty today to two separate conspiracies to violate sanctions imposed by the United States on Iran regarding the exportation, re-exportation, sale, or supply, directly or indirectly, of any goods, technology, or services to Iran.
According to his guilty plea, from at least March 2018 until at least September 2020, Mokhtari conspired with his co-defendant and others to evade Iranian sanctions by engaging in business activities on behalf of Iranian entities without first obtaining the required licenses from the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC).
Mokhtari held management positions and/or maintained ownership control of multiple business in Iran and the United Arab Emirates (UAE), referred to collectively as “the FSR Network.” Mokhtari and his co-conspirators used the FSR Network to provide services to Iranian entities and engage in transactions involving Iranian petrochemical products, including refining petrochemical products and transporting them by sea. Mokhtari and his co-conspirators used bank accounts located in the UAE, including Bitubiz FZE, which was part of the FSR Network and over which Mokhtari exercised partial or complete control, to process these U.S. dollar transactions.
Mokhtari admitted that Bitubiz operated as a conduit for the FSR Network to conceal the fact that Mokhtari and his co-conspirators were engaging in financial transactions with, and providing services to, Iranian entities. Bitubiz maintained daily ledgers which recorded the receipt and transfers of funds. After receiving an incoming wire transfer, Bitubiz would credit most of that amount to Ayegh Isfahan Manufacturing Company (AIM). Mokhtari and others held ownership interests in AIM, which was located in Iran, engaged in the petrochemical industry, and part of the FSR Network.
As stated in his guilty plea, from about February 2013 until at least June 2017, Mokhtari and several Iranian nationals engaged in a separate conspiracy to support illicit shipments of petrochemical products to and from Iran in violation of the Iranian sanctions. In furtherance of the scheme, Mokhtari created a Panama-based front company, East & West Shipping Inc., to purchase two liquid petroleum gas (LPG) tanker vessels to transport Iranian petrochemical products in international commerce on behalf of, and to benefit, Iranian entities associated with the Government of Iran.
After using East & West to purchase the two vessels (LPG Vessels 1 and 2), Mokhtari transferred ownership of the vessels to other entities to conceal the conspirators’ financial and ownership interest. The conspirators then used another entity, Greenline Shipholding Inc., to control the operations of LPG Vessels 1 and 2. For example, through email communications from Greenline email accounts, or email accounts containing some variation of the Greenline name, the conspirators directed Company 5, a ship management company, to oversee the leasing and operation of LPG Vessels 1 and 2 to transport Iranian petrochemical products from Iranian ports to other locations and to participate in ship-to-ship transfers of Iranian products while on the high seas.
The conspirators, including Mokhtari, used the U.S. financial system to engage in transactions related to the vessels and other expenses. In addition, Mokhtari and his co-conspirators frequently communicated by email about the nature and source of the products that the vessels were transporting, as well as the use of false shipping documents and other measures to conceal the fact that the vessels were transporting products to and from Iran in violation of Iranian sanctions.
At some point prior to May 2017, ownership of LPG Vessel 1 was transferred to Russell Shipping Inc., which was owned by Mokhtari. On May 30, 2017, Mokhtari sold LPG Vessel 1 to be scrapped for more than $3.1 million. Mokhtari received a total of $2,862,591.12 from that sale. The purchaser wired funds to accounts at two separate banks – one held in the name of Mori Construction and Development LLC and the other held in the name of Mori Construction. Mokhtari was the sole owner of Mori Construction and controlled both bank accounts. Through a series of inter-account transfers and check payments, by September 2017, the proceeds from the sale of LPG Vessel 1 were located in a third account, over which Mokhtari and his daughter had signature authority. In March 2018, Mokhtari used those proceeds to purchase a home in Campbell, California, for over $1.5 million.
Mokhtari admitted that he knew that, as a U.S. citizen, he was prohibited from engaging in business with or providing services to Iranian entities without first obtaining a license or permission from OFAC to do so. Neither Mokhtari nor any of his co-conspirators ever applied for or obtained such a license. Mokhtari further knew that it was illegal to engage in transactions intended to evade Iranian sanctions or to engage in transactions related to goods and services of Iranian origin or export.
As part of his guilty plea, Mokhtari must forfeit money, property and assets derived from, obtained as the result of, or used to facilitate the commission of his illegal activities, including the residence he purchased in Campbell, California, and a money judgment in the amount of $2,862,598.12.
Mokhtari faces a maximum sentence of five years in federal prison for each of the two conspiracy counts. U.S. District Judge George J. Hazel scheduled sentencing for April 3.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Erek L. Barron for the District of Maryland, Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division and Special Agent in Charge Thomas J. Sobocinski of the FBI Baltimore Field Office made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney Kathleen O. Gavin for the District of Maryland prosecuted the case, with valuable assistance provided by the National Security Division’s Counterintelligence and Export Control Section.
United States Attorney Implements Groundbreaking Settlement with Meta Platforms, Inc., Formerly Known as Facebook, to Address Discrimination in the Delivery of Housing AdsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, along with Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, announced today that the Justice Department has reached a key milestone in its settlement agreement with Meta Platforms, Inc. (“Meta”), formerly known as Facebook, Inc., requiring Meta to change its ad delivery system to prevent discriminatory advertising in violation of the Fair Housing Act (“FHA”). As required by the settlement entered on June 27, 2022, resolving a lawsuit filed in the U.S. District Court for the Southern District of New York, Meta has now built a new system to address algorithmic discrimination. Today, the parties informed the Court that they have reached agreement on the system’s compliance targets. This development ensures that Meta will be subject to court oversight and regular review of its compliance with the settlement through June 27, 2026.
U.S. Attorney Damian Williams said: “This groundbreaking resolution sets a new standard for addressing discrimination through machine learning. We appreciate that Meta agreed to work with us toward a resolution of this matter and applaud Meta for taking the first steps towards addressing algorithmic bias. We hope that other companies will follow Meta’s lead in addressing discrimination in their advertising platforms. We will continue to use all of the tools at our disposal to address violations of the Fair Housing Act.”
“This development marks a pivotal step in the Justice Department’s efforts to hold Meta accountable for unlawful algorithmic bias and discriminatory ad delivery on its platforms,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold Meta accountable by ensuring the Variance Reduction System addresses and eliminates discriminatory delivery of advertisements on its platforms. Federal monitoring of Meta should send a strong signal to other tech companies that they too will be held accountable for failing to address algorithmic discrimination that runs afoul of our civil rights laws.”
The United States’ complaint alleged, among other things, that Meta uses algorithms in determining which Meta users receive ads, including housing ads, and that those algorithms rely, in part, on characteristics protected under the FHA. Specifically, the United States alleged that Meta feeds troves of user information into its ad delivery system, including information related to users’ FHA-protected characteristics such as sex and race, and uses that information in its personalization algorithms to predict which ad is most relevant to which user. As the complaint alleged, Meta’s delivery algorithms introduce bias when delivering ads, resulting in a variance along sex and estimated race/ethnicity between the set of users who are eligible to see housing ads based on the advertiser’s targeted audience and the set of users who actually see the ad.
Pursuant to the settlement, Meta has developed a new system—the Variance Reduction System (“VRS”)—to reduce the variances between the eligible audience and the actual audience. The United States has concluded that the new system will substantially reduce the variances between the eligible and actual audiences along sex and estimated race/ethnicity in the delivery of housing advertisements. The VRS will operate on all housing advertisements across Meta platforms, and the agreement requires Meta to meet certain compliance metrics in stages. For example, by December 31, 2023, for the vast majority of housing ads on Meta platforms, Meta will reduce variances to less than or equal to 10% for 91.7% of those ads for sex and less than or equal to 10% for 81.0% of those ads for estimated race/ethnicity. For more information on the operation of the VRS, read Meta’s technical paper.
As further provided in the settlement agreement, the parties have selected an independent, third-party reviewer, Guidehouse, Inc. (“Guidehouse”), to investigate and verify on an ongoing basis whether the VRS is meeting the compliance metrics agreed to by the parties. Under the agreement, Meta must provide Guidehouse and the United States with regular compliance reports and make available any information necessary to verify compliance with the agreed-upon metrics. The court will have ultimate authority to resolve any disputes over the information that Meta must provide.
Finally, as also required by the settlement agreement, Meta has ceased delivering housing advertisements using the Special Ad Audience tool (which delivered ads to users who “look like” other users), and Meta will not provide any targeting options for housing advertisers that directly describe or relate to FHA-protected characteristics.
This agreement marks the first time that Meta will be subject to court oversight for its ad targeting and delivery system.
More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. More information about the U.S. Attorney’s Office for the Southern District of New York is available at www.justice.gov/usao-sdny. Individuals who believe they have been victims of housing discrimination may submit a report to the U.S. Attorney’s Office for the Southern District of New York online at https://www.justice.gov/usao-sdny/civil-rights or by telephone at (212) 637-0840; may submit a report online to the Department of Justice atwww.civilrights.justice.gov; or may contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorneys Ellen Blain, David J. Kennedy, and Christine S. Poscablo are in charge of the case.
U.S. Attorney’s Office Celebrates National Law Enforcement Appreciation Day 2023Read the Press Release
COLUMBIA, SOUTH CAROLINA —Today, January 9, 2023, the United States Attorney’s Office for the District of South Carolina is showing its appreciation to law enforcement agencies across the state to celebrate national Law Enforcement Appreciation Day (“L.E.A.D.”). The start of the new year is a perfect time to show support for our law enforcement partners, who often go above and beyond to serve our communities, including by responding to critical incidents, gathering toys for needy kids during the holiday, distributing groceries to families in need, and playing ball with neighborhood kids. Their tireless dedication to the communities they serve does not go unnoticed.
From the Upstate to the Lowcountry and across the Pee Dee and Midlands, members of the USAO will be making visits to departments to thank officers in person and to share artwork done by local school children thanking officers.
The USAO encourages members of the community to take a moment to thank your local community officers, school resource officers, etc. Remember to also thank the families of those officers as the inherent dangers of the job are always at the forefront of their minds.
Here are a few simple things you can do to thank the officers in your community:
1. Take snacks/bottled water to local departments, along with a note of support;
2. Suggest to schools and children that they write letters or draw pictures supporting law enforcement and then drop those letters/pictures off at the local police department/sheriff’s office;
3. Send a letter, card, or email to your local law enforcement agency expressing support and appreciation. Ask that your support be shared with agency staff; and
4. Take a moment to thank the officers you encounter during your normal day.
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U.S. Attorney's Office Files Statement of Interest in Fair Housing Act Case Alleging Unlawful Algorithm-Based Tenant Screening PracticesRead the Press Release
BOSTON – Today the Justice Department filed a Statement of Interest to make clear that the Fair Housing Act (FHA) applies to residential screening companies that develop and sell algorithmic-based screening services to housing providers. The Statement of Interest, filed in federal court in Boston, also addresses the appropriate pleading standard for disparate impact claims under the FHA. The statement highlights the United States’ commitment to enforcing the FHA, including in cases involving algorithms and tenant screening software.
The Department’s statement is in response to motions to dismiss filed in Louis et al v. SafeRent et al. – a lawsuit filed in the District of Massachusetts in May 2022. The lawsuit was filed by plaintiffs Mary Louis and Monica Douglas, two Black rental applicants who use housing vouchers to pay part of their rent. Plaintiffs applied for rental housing but allege they were denied due to their “SafeRent Score,” a score derived from SafeRent’s algorithmic-based screening software. The Plaintiffs allege that SafeRent scores result in disparate impact against Black and Hispanic rental applicants because the underlying algorithm relies on certain factors that disproportionately disadvantage Black and Hispanic applicants, such as credit history and non-tenancy related debts, while failing to consider one highly relevant factor, the use of housing vouchers.
“Algorithms are written by people. As such, they are susceptible to all of the biases, implicit or explicit, of the people that create them,” said United States Attorney Rachael S. Rollins. “As the housing industry and other professions adopt algorithms into their everyday decisions, there can be disparate impacts on certain protected communities. Stable and affordable housing provides a unique pathway to success, opportunity and safety. We must fiercely protect the rights and protections promulgated in the Fair Housing Act. Today’s filing recognizes that our 20th century civil rights laws apply to 21st century innovations.”
“Housing providers and tenant screening companies that use algorithms and data to screen tenants are not absolved from liability when their practices disproportionately deny people of color access to fair housing opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This filing demonstrates the Justice Department’s commitment to ensuring that the Fair Housing Act is appropriately applied in cases involving algorithms and tenant screening software.”
“Tenant screening policies are not exempt from the Fair Housing Act’s protections just because decisions are made by algorithm,” said Damon Smith, General Counsel for the United States Department of Housing and Urban Development. “Housing providers and tenant screening companies must ensure that all policies that exclude people from housing opportunities, whether based on algorithm or otherwise, do not have an unjustified disparate impact because of race, national origin or another protected characteristic.”
Through the Statement of Interest, the Department seeks to assist the court by addressing two questions of law erroneously represented in the defendants’ motions to dismiss. First, the statement sets out the appropriate standard for pleading disparate impact claims under the FHA. Second, the statement clarifies that the FHA’s text and caselaw support the FHA’s application to companies providing residential screening services.
The Defendants in Louis et al v. SafeRent et al. have moved to have the case dismissed and Plaintiffs oppose defendants’ motions. The Justice Department’s Statement of Interest disagrees with the Defendants’ pleading standard for disparate impact claims and with SafeRent’s assertion that the FHA does not apply to companies like SafeRent. The motions to dismiss are now pending before the court.
Assistant U.S. Attorney Gregory Dorchak of Rollins’ Civil Rights Unit and Trial Attorney Kinara Flagg of the Justice Department’s Civil Rights Division handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit https://www.justice.gov/usao-ma/civil-rights
U.S. Attorney Announces Human-Trafficking Task Force and Multi-Prong Effort to Combat Trafficking in Eastern North CarolinaRead the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley is announcing efforts to combat human trafficking including the launch of a dedicated task force, and increased community outreach and education to raise awareness. As part of the annual observation of January as Human Trafficking Awareness Month, Easley also highlighted several successful human trafficking prosecutions led by his office.
“It is easy to dismiss human trafficking as a problem that happens only in other parts of the country or the world, but sadly it is something that is happening right here in our communities in Eastern North Carolina,” said U.S. Attorney Michael Easley. “Our office is advancing the fight to end human trafficking in our communities. Working together with our law enforcement partners at every level, we seek to identify, locate, and recover the victims and prosecute individuals and organizations exploiting the most vulnerable members of our community. In addition to using our investigative and prosecutorial tools, we are ensuring that our law enforcement partners are armed with the tools and expertise to investigate these cases and hosting events to promote education and awareness.”
New Human Trafficking Task Force
The office is announcing the creation of a dedicated human trafficking task force, initially focused on the Raleigh-Cary area, that is meeting regularly to share intelligence and investigative leads, receive specialized training, develop investigative tools and expertise for law enforcement agencies. The task force includes members of three prosecutorial offices and 11 law enforcement agencies, including the Wake and Johnston County District Attorney’s offices, Homeland Security Investigations (HSI), the Federal Bureau of Investigation (FBI), U.S. Marshal Service, Internal Revenue Service (IRS), N.C. State Bureau of Investigation (NCSBI), N.C. State Highway Patrol (NCSHP), the Wake County Sheriff’s Office, St. Augustine’s University and the Raleigh, Apex and Cary Police Departments. The goal is to use lessons learned from this task force to develop regional task forces in other parts of the district in the coming year.
“The U.S. Marshals Service has always worked closely with the National Center for Missing and Exploited Children (NCMEC) and our federal, state, and local counterparts to recover missing and endangered children," stated U.S. Marshal Glenn McNeill. "We are excited to serve this vital mission and build upon these partnerships as the task force grows in the never-ending pursuit of justice for victims of human trafficking.”
“We are appreciative for this opportunity to further our agency’s efforts in combating human trafficking throughout our state and beyond,” said Colonel Freddy L. Johnson Jr., commander of the North Carolina State Highway Patrol. “The work to be done by this collaborative group of passionate law enforcement professionals will undoubtedly help in identifying victims, removing them from harm’s way and in building strong cases to fully prosecute the offenders of these callous acts.”
“By bringing together the experience and expertise of all cooperating law enforcement agencies, we greatly enhance our ability to combat human trafficking and bring those perpetrating these heinous crimes to justice,” said Ronnie Martinez, Special Agent in Charge of HSI Charlotte that covers North and South Carolina.
“Human traffickers prey on the vulnerable members of our community, and we are proud to join our Federal, state, and local partners on the human trafficking task force to combat this prolific crime,” said Raleigh Police Chief Estella Patterson. “The Raleigh Police Department will work steadfastly with our partners to educate our community and raise awareness of the impacts of human trafficking. Additionally, we will work closely with the court system to ensure that human traffickers are prosecuted to the fullest extent of the law and that the victims are given the resources and support for healing. We will not be a community that allows individuals to abuse other members of society.
NCSBI Director Robert Schurmeier stated, “The creation of a task force specifically dedicated to fighting human trafficking is a welcomed development for North Carolina. Having this resource in place will allow us to better serve the citizens of NC and the many victims of human trafficking. We understand the difficulties and many challenges presented by the complexities of human trafficking investigations. However, together with our criminal justice partners, we believe we can make a profound impact by saving lives and holding to account those who traffic their fellow human beings. The SBI is eager for the opportunity to combat human trafficking in all forms, and is honored to be part of a task force comprised of so many talented members.”
Education, Awareness and Community Outreach
In an effort to raise awareness and educate those involved in the fight against human trafficking, staff from the U.S. Attorney’s Office participated in nearly half a dozen community engagement events, with more planned for 2023. In addition to the direct outreach efforts, the office has also worked to strengthen partnerships with non-governmental organizations and other service providers to ensure that victims of human trafficking are getting the help that they need after the trauma they have experienced.
Prosecution of Human Traffickers
Finally, the office is highlighting several human trafficking prosecutions from 2022 that have helped to put traffickers and members of their organizations behind bars.
USA v. Kevin Rudolph and Marcus Gambrell (No. 5:19-CR-336-FL)
Marcus Antwan Gambrell, 30, of Raleigh, was sentenced to 210 months in prison, on December 21, 2021, for manufacturing child pornography. Gambrell and co-defendant Kevin Rudolph were charged in a four-count superseding indictment. The indictment charged both men with sex trafficking of a minor and using the internet to promote prostitution, Gambrell with manufacturing child pornography, and Rudolph with possession of a firearm by a felon. Gambrell pled guilty to manufacturing child pornography. Rudolph pled guilty to sex trafficking of a minor and aiding and abetting, and sentencing is scheduled for later this month.
USA v. Jenkins, et al. (No. 7:22-CR-00083)
In July 2022, the government indicted a significant human trafficking investigation, charging 20 human trafficking and drug related offenses including, a sex trafficking conspiracy, sex trafficking of multiple victims by force, fraud or coercion, sex trafficking of a minor, multiple counts related to transportation of victims across state lines for purposes of engaging in commercial sex, a drug conspiracy, and drug related offenses. All defendants are presumed innocent until proven guilty.
USA v. Yomere Juan Busbee (No. 5:20-CR-00393)
In September 2022, a federal jury in Wilmington found the defendant – a violent pimp and drug dealer from Fayetteville – guilty on six counts of kidnapping of four victims, including a minor, drug, and gun offenses stemming from an investigation into the defendant’s sex trafficking offenses. Two co-defendants in the case pled guilty. Busbee is currently set to be sentenced at the end of this month, facing at least 20 years in prison.
USA v. Xiang Yue Jin (No. 5:21-CR-00266) and USA v. Ok Hwa Lee et. al (No. 7:21-CR-00079)
In September 2022, Jin was sentenced to 15 months in prison plus financial restitution for bribery charges intended to protect her illegal “massage parlor” business from law enforcement scrutiny. Five other defendants were indicted in a separate case stemming from the same investigation into illicit massage parlors where sexual services were provided. The last of those five defendants pled guilty in December 2022 and all five are scheduled to be sentenced in 2023.
USA v. Marvarlus Cortel Snead (EDNC No. 7:19-CR-00151; 4th Cir. No. 21-4333)
In December 2022, the Fourth Circuit Court of Appeals affirmed the conviction and sentence of Marvarlus Snead, rejecting all of defendant’s arguments on appeal. Snead was previously convicted at trial and sentenced to 35 years for sex trafficking of a minor.
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If you or anyone you know needs help or has information to provide in regard to a potential human trafficking situation, please contact law enforcement by calling 911 if the situation appears unsafe, or contact the National Human Trafficking Hotline:
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- https://humantraffickinghotline.org/
- 1-888-373-7888
- *Text 233733
- Email: [email protected]
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Three Fentanyl Traffickers Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Luis Omar Rosa Cotto (32, Orlando), Alejandro Acevedo Luna (34, Apopka), and Juan Carlos Garcia (38, Apopka) to federal prison for their roles in a conspiracy to distribute fentanyl.
Luis Omar Rosa Cotto
Pleaded guilty on July 12, 2022
Responsible for over 1.5 kilograms of fentanyl
Sentenced on November 7, 2022, to 10 years in federal prison
Alejandro Acevedo Luna
Pleaded guilty on July 6, 2022
Responsible for over 1 kilogram of fentanyl
Sentenced on January 6, 2023, to 15 years in federal prison
Juan Carlos Garcia
Found guilty at trial on October 17 to 19, 2022
Responsible for over 1 kilogram of fentanyl
Sentenced on January 6, 2023, to 10 years in federal prison
According to court documents, Acevedo Luna and Garcia conspired to drive to a gas station in Apopka and sell more than a kilogram of fentanyl for $33,000. Garcia drove the vehicle and brought a loaded handgun with him, and Acevedo Luna brought the drugs and set up the deal. The Drug Enforcement Administration (DEA) received information about the drug transaction and worked with the Apopka Police Department to conduct a traffic stop. After a search, the loaded handgun was recovered from the center console of the vehicle and the package of drugs was located in the backseat. Both men were arrested without incident.
On the same day, Rosa Cotto was determined to be the source of the fentanyl and a controlled purchase was set up by the DEA to buy an additional half kilogram of fentanyl. Rosa Cotto arrived at the buy location with the drugs, and he was arrested. A bag containing more than half a kilogram of fentanyl was found inside his vehicle. All of the drugs were tested by the DEA laboratory and determined to be p-Fluorofentanyl, which is an analogue of fentanyl and is classified as a Schedule I controlled substance.
This case was investigated by the DEA, Homeland Security Investigations, and the Apopka Police Department. It was prosecuted by Assistant United States Attorneys John M. Gardella and Courtney Richardson-Jones.
Sun Prairie Man Sentenced to More Than 10 Years for Drug TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Daniel Gibbs, 37, Sun Prairie, Wisconsin, was sentenced on Friday, January 6, by Chief U.S. District Judge James D. Peterson to 121 months in federal prison for distributing 50 grams or more of methamphetamine. Gibbs pleaded guilty to this charge on September 14, 2022.
Gibbs sold one pound of methamphetamine to a confidential source on three separate occasions at a residence in Sun Prairie in August and September of 2021. On November 10, 2021, agents executed a search warrant at the residence where Gibbs had previously sold methamphetamine to the confidential source. During the search, agents found approximately four pounds of heroin, a kilogram press, and a loaded firearm.
At the sentencing hearing, Judge Peterson stated that Gibbs had committed “a very serious drug trafficking crime” by distributing significant quantities of methamphetamine and heroin. Judge Peterson also noted that Gibbs had previously served substantial time in federal prison for a violent crime involving kidnapping and extortion.
The charge against Gibbs is the result of a joint investigation by the Drug Enforcement Administration, Dane County Narcotics Task Force, Wisconsin Department of Justice Division of Criminal Investigation, United States Postal Inspection Service, Federal Bureau of Investigation, and Sun Prairie Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Summerville Man Sentenced to Ten Years in Federal Prison for Possession of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Cameron Dyer, 30, of Summerville, was sentenced to 10 years in federal prison after pleading guilty to possession of child pornography involving a prepubescent minor.
Evidence presented to the Court showed that on May 4, 2020, law enforcement identified a Kik Messenger group created for the sharing of child pornography. Kik Messenger is an instant messaging application for mobile devices that allows users to share content. The members of the group openly engaged in the distribution of child pornography. Dyer was identified as a member of this group and was actively engaged in sharing child pornography. A federal search warrant was executed at Dyer’s home in Dorchester County on September 22, 2021. FBI seized electronic devices and conducted a forensics examination of the devices and found 56 images and 32 videos of child pornography on Dyer’s cell phone, including that of prepubescent children.
The investigation also revealed that Dyer was convicted of Possession of Child Pornography in 2015 at the Superior Court of Massachusetts, Essex County, and sentenced to 18 months in prison and two years of probation.
United States District Judge Bruce Howe Hendricks sentenced Dyer to 120 months in prison, to be followed by a life term of court-ordered supervision. There is no parole in the federal system. Judge Hendricks also ordered Dyer to pay $21,000 in restitution.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation (FBI), with assistance from Dorchester County Sheriff’s Office. Assistant U.S. Attorney Dean H. Secor is prosecuting the case.
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Statement of U.S. Attorney Zachary A. Myers on the Passing of Former U.S. Attorney Timothy MorrisonRead the Press Release
INDIANAPOLIS- United States Attorney for the Southern District of Indiana, Zachary A. Myers, issued the following statement on the death of former U.S. Attorney Timothy Morrison.
“The U.S. Attorney’s Office is deeply saddened to hear of Tim Morrison’s passing. Tim served his fellow Hoosiers in the U.S. Attorney’s Office for over 23 years. On three separate occasions he led our office as U.S. Attorney, in 1993, from 2000 to 2001, and from 2007 through 2010. He served in office leadership for many years as First Assistant U.S. Attorney, and successfully prosecuted a wide variety of offenses, including violent crimes, public corruption, fraud, firearms, and national security crimes. Tim was a lifelong prosecutor, who also served in the leadership of the Monroe County and Marion County Prosecutors’ Offices prior to joining the Department of Justice.
In addition to his accomplishments as a prosecutor, Tim was a beloved professor at his alma mater, Indiana University’s Maurer School of Law. For almost ten years, law students benefited from Tim’s wisdom, experience, and passion for our profession. Tim’s dedication, compassion, decency, and commitment to promoting justice have left an indelible mark on the U.S. Attorney’s Office and on our community. We offer our sincerest condolences to Tim’s wife, Linda Hunt, and all of his family, loved ones, and colleagues.”
Solano County Hells Angels Member Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — Dennis Killough Jr., 51, of Vacaville, pleaded guilty today to unlawfully possessing two firearms after being convicted of a felony crime, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Dec. 8, 2021, law enforcement officers executed a search warrant at Killough’s home as part of an investigation into a brutal beating at the clubhouse for the Vallejo chapter of the Hells Angels Motorcycle Club. In October 2021, two different victims—both of whom were members of a different motorcycle club that is considered a “puppet” (or subordinate) club of the Hells Angels—were beaten by Killough and other club members based on perceived infractions of the Hells Angels’ rules.
During the search of Killough’s home, law enforcement found two firearms, including a Taurus G2C 9 mm compact pistol and a Taurus model PT 745 Pro handgun. Killough has prior felony convictions, including previous firearm convictions, which prohibit him from possessing firearms.
This case is the product of an investigation by the Solano County District Attorney’s Office, the Solano County Sheriff’s Office, the Vacaville Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Aaron D. Pennekamp and Jason Hitt are prosecuting the case.
Killough is scheduled to be sentenced on March 27, 2023, by U.S. District Judge Kimberly J. Mueller. Killough faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Skimmer Builder Sentenced to Prison for Role in Stealing Financial Identities at Gas PumpsRead the Press Release
Potential Victims Urged to Contact Justice Department
For Further Information, Contact:
Assistant U. S. Attorneys Sabrina L. Fève and Nicholas W. PilchakSAN DIEGO – A Los Angeles resident was sentenced today to 41 months in prison for his role building specialized devices to steal the financial information of unwitting victims at gas pumps throughout Southern California.
Robert Fichidzhyan, age 40, admitted in his plea agreement that he built “skimmers”—customized electronic devices that his accomplices secretly installed at dozens of gas stations to steal credit and debit card information from unknowing patrons. Fichidzhyan admitted that the conspiracy he participated in stole at least $619,923.45 during the period that he was involved.
“Identity thieves should not assume they are safe committing electronic larceny,” said U.S. Attorney Randy S. Grossman. “Anyone who victimizes the public in our jurisdiction will be brought to justice.” Grossman thanked the prosecution team, IRS-CI and Secret Service agents for their excellent work on this case.
As set out in court documents, Fichidzhyan’s accomplices broke into gas pumps throughout Southern California and installed customized skimming devices to steal victims’ credit and debit card information during otherwise legitimate transactions. Next, they made unauthorized cards encoded with victims’ information for their own use, stole victims’ funds, or otherwise sold victim financial information outright to others who would exploit it for their own gain.
Fichidzhyan admitted in his plea agreement that he personally received $249,890.00 from the scheme. He was ordered to forfeit that amount, and to participate in paying restitution of $619,923.45 to the victims of his crime together with his codefendants.
Another defendant in a related case previously received prison time for similar conduct. On June 23, 2022, Margar Simonyan was sentenced to 12 months and 1 day in custody in related case number 21-cr-2659-BAS, together with $11,810 of forfeiture and restitution. The next hearing in the case against the remaining defendants is set for March 20, 2023, before U.S. District Judge Cynthia Bashant.
This investigation involved significant contributions from many different sources, including state, local, and federal law enforcement partners, and assistance from and partnerships with the financial and private sectors, such as the National Cyber-Forensics Training Alliance (NCTFA). Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
“The U.S. Secret Service works vigorously to combat financial fraud perpetrated against the Southern California community, particularly crimes related to skimming,” said SAIC Jason Reynolds of the San Diego Field Office. “The Secret Service, along with our local, state, and federal partners, will continue to be proactive in suppressing this criminal activity, and remains ready to investigate financial crimes wherever they occur.”
DEFENDANTS Case Number 21-CR-2660-BAS
- Haykaz Mansuryan 33 Residence: Granada Hills, California
- Hayk Shakaryan 34 Residence: Glendale, California
- Davit Babayan 36 Residence: Granada Hills, California
- Artour Hakobyan 39 Residence: Glendale, California
- Petros Armutyan 36 Fugitive
- Hakop Karayan 44 Residence: Glendale, California
- Robert Fichidzhyan 40 Residence: North Hollywood, California
- Vasiliy Polyak 32 Residence: Glendale, California
SUMMARY OF CHARGES
Conspiracy to Use Unauthorized Access Devices and Possess Device-Making Equipment, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(2), and 1029(a)(4)
Maximum Penalty: five to ten years in prison, depending upon prior convictions; fine of $250,000 or twice the gross gain or loss
Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A (Defendants 1, 2, and 4 through 6 only)
Maximum Penalty: mandatory minimum two years in prison, consecutive to any other sentence
AGENCIES
U.S. Secret Service
Internal Revenue Service, Criminal Investigation
Scranton Man Sentenced to 210 Months in Prison for Drug TraffickingRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Javier Correa, age 41, of Scranton, Pennsylvania, was sentenced on January 3, 2023, to 210 months’ imprisonment by U.S. District Court Judge Malachy E. Mannion, for possession with intent to distribute more than 50 grams of methamphetamine and more than 400 grams of fentanyl.
According to United States Attorney Gerard M. Karam, on April 29, 2021, following a confidential tip, state parole and Drug Enforcement Administration agents searched Correa’s Scranton residence and seized 174 grams of methamphetamine, 611 grams of fentanyl, a loaded Bersa 9mm handgun, firearm magazines, ammunition, and $30,427.25.
This case was investigated by DEA, the Scranton Police Department, and the Pennsylvania State Parole officers. Assistant U.S. Attorneys Geoffrey W. MacArthur and Brian Gallagher prosecuted 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. 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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San Fernando Valley Man Pleads Guilty to Selling Used and Counterfeit Medical Devices Used for Skin Tightening and Fat BurningRead the Press Release
LOS ANGELES – A Tarzana man pleaded guilty today to federal criminal charges for running a nearly $6 million scheme in which he knowingly sold used skin-tightening medical devices that were deliberately misbranded as new, as well as counterfeit devices that he claimed were to be used with fat-reducing laser machines.
Kambiz Youabian, 49, pleaded guilty to a two-count information charging him with mail fraud and introducing a misbranded medical device into interstate commerce.
According to his plea agreement, Youabian owned and operated MSY Technologies Inc., a West Los Angeles-based company that did business under the names “Thermagen” and “Global Electronic Supplies” (GES).
From March 2016 to June 2022, Youabian purchased used transducers, which are medical devices used to tighten the skin of dermatology patients by delivering ultrasound energy to a patient’s skin. Used properly, transducers are designed to provide no more than 2,400 treatments. After this number is reached, the devices are considered depleted and should be disposed of in accordance with health code regulations.
Through GES, Youabian purchased depleted transducers for nominal sums, typically $50. Youabian then remanufactured the depleted transducers and added fabricated serial numbers to make the transducers appear to be new.
Then, through his Thermagen company, Youabian fraudulently marketed and sold – for many times more than he paid for them – the remanufactured transducers to health care providers and customers as “new” transducers with 2,400 remaining treatments. To conceal his connection to Thermagen, Youabian used names of fabricated Thermagen employees on correspondences with victim providers and used out-of-state commercial mailboxes for Thermagen’s return of address on shipments, which he sent through the U.S mail.
For example, in February 2020, Youabian, through Thermagen’s website, sold a device falsely advertised as “new” and “containing 2,400 lines” – and with a retail price of $1,695 – to a buyer. Youabian then shipped the device – which contained a fake serial number – from Los Angeles to Florida via the United States Postal Service.
Youabian also shipped counterfeit PAC keys, medical devices used to operate laser machines designed to reduce fat on patients, through the mail.
He then transferred his ill-gotten gains to bank account his controlled, including accounts he opened in the names of MSY Technologies, himself, and his au pair.
In June 2022, law enforcement executed search warrants at Youabian’s home and the GES-Thermagen office in West Los Angeles.
In the GES-Thermagen office, law enforcement seized 75 transducers in various states of refurbishment, a manufacturing workstation containing tools and transducer parts, and detailed records of GES and Thermagen’s expenses.
Youabian admitted in his plea agreement to unlawfully selling thousands of medical devices, including transducers and PAC keys, and receiving at least $5,821,474 in fraudulent proceeds that should have been paid to the companies that are the sole U.S. distributors for these devices. Youabian also admitted to causing reputational harm to the device manufacturers and distributors of these medical devices.
United States District Judge Dale S. Fischer scheduled a June 26 sentencing hearing, at which time Youabian will face a statutory maximum sentence of 23 years in federal prison.
The U.S. Food and Drug Administration Office of Criminal Investigations and the United States Postal Inspection Service investigated this matter.
Assistant United States Attorney Gregory D. Bernstein of the Major Frauds Section is prosecuting this case.
Sacramento Man Sentenced to over 3 Years in Prison for Assaulting a Court Security OfficerRead the Press Release
SACRAMENTO, Calif. — Adam Fuller, 36, of Sacramento, was sentenced today to three years and four months in prison for assaulting a federal officer, U.S. Attorney Phillip A. Talbert announced.
According to court records, on Aug. 27, 2019, Fuller punched a federal Court Security Officer in the face outside the Sacramento federal courthouse. The punch knocked the officer to the ground and split open his forehead, requiring five stitches.
This case was the product of an investigation by the Federal Protective Services, the U.S. Marshals Service, and the Sacramento Police Department. Assistant U.S. Attorney Cameron L. Desmond prosecuted the case.
Rosebud Woman Sentenced for Assaulting a Federal OfficerRead the Press Release
PIERRE - United States Attorney Alison J. Ramsdell announced that a Rosebud, South Dakota, woman charged with Assaulting, Resisting, and Impeding a Federal Officer pleaded guilty and was sentenced on January 4, 2023, by U.S. Magistrate Judge Mark A. Moreno.
Kendall Logan, age 29, was sentenced to one year in federal prison, followed by one year of supervised release, and ordered to pay $25.00 to the Federal Crime Victims Fund.
The conviction stems from an incident that took place on February 5, 2020, in Rosebud, when Logan kicked a federal police officer employed by the Rosebud Sioux Tribe in the abdomen.
The investigation was conducted by the Rosebud Sioux Tribe Law Enforcement Services. The case was prosecuted by Assistant U.S. Attorney Jay Miller.
Logan was remanded to the custody of the U.S. Marshals Service.
Repeat Offender Admits Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man today admitted possessing multiple images and videos of child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
John Schulenburg, 67, of Basking Ridge, New Jersey, pleaded guilty by videoconference before U.S. District Judge John Michael Vazquez in Newark federal court to a superseding information charging him with possession of child pornography.
According to documents filed in this case and statements made in court:
In July 2019, an undercover law enforcement officer conducted an online session using a publicly available peer-to-peer program, which allows internet users to trade digital files. During this session, a user shared multiple files featuring images of child sexual abuse from an internet address traced to Schulenburg’s residence. On Nov. 6, 2019, law enforcement lawfully obtained a computer from Schulenburg’s residence that contained hundreds of images and videos of child sexual abuse, including images of prepubescent children.
Schulenburg was previously convicted of endangering the welfare of a child/possession of child pornography in Somerset County in 2013. For a repeat offender, the charge of possession of child pornography carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for May 22, 2023.
U.S. Attorney Sellinger credited special agents with the Newark Child Exploitation and Human Trafficking Task Force, under the direction of FBI Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the guilty plea. He also thanked the Somerset County Prosecutor’s Office for its assistance.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Rapid City Man Sentenced for EscapeRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced that U.S. District Judge Jeffrey L. Viken has sentenced a Rapid City, South Dakota, man convicted of Escape from Custody. The sentencing took place on January 5, 2023.
Jeremy Crow, 29, was sentenced to six months in federal prison, with no supervised release to follow, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. He remains under supervision obligations in a different case.
Jeremy Crow was indicted for Escape from Custody by a federal grand jury in August of 2022. He pleaded guilty on October 21, 2022.
Crow was in the Bureau of Prisons custody serving a sentence for Robbery and Brandishing a Firearm During the Commission of a Crime. He was placed at the Community Education Center in Rapid City to finish serving his sentence as part of a reentry process. He walked away from the facility in July of 2022 and was located in Rapid City approximately 45 days later by the Rapid City Police Department.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Crow was immediately remanded to the custody of the U.S. Marshals Service.
Pennsylvania Man Pleads Guilty to Distribution and Transportation of Child Exploitation MaterialRead the Press Release
CONCORD – Michael Wilcox, 33, of Philadelphia, PA, pled guilty in federal court today to distribution and transportation of child sexual abuse material, United States Attorney Jane E. Young announced.
According to court documents and statements made in court, Wilcox engaged in sexually explicit online chats with an undercover law enforcement officer on various social media platforms. In the course of those chats, Wilcox offered to sell child sexual abuse material to the undercover in exchange for payment via CashApp. Wilcox sent various images of child sexual abuse material to the undercover as “samples” of material that he had available for sale. He later sent the undercover links to online cloud storage folders that contained hundreds of additional images, many of them depicting child sexual abuse material.
The plea agreement filed in court recommends that Wilcox be sentenced to 5-10 years in federal prison. Sentencing is set for April 17, 2023.
This matter was investigated by Homeland Security Investigations with assistance from the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Oelwein Man Sentenced to 30 Years for Distributing Methamphetamine and Obstructing JusticeRead the Press Release
A man who distributed methamphetamine out of his residence, conspired to have a government witness assaulted, and sexually abused multiple women was sentenced to 30 years in federal prison.
Justin Michael Buehler, age 39, from Oelwein, Iowa, received the prison term after a June 9, 2022 jury verdict finding him guilty of two counts of distribution of methamphetamine.
The evidence at trial showed that Buehler distributed methamphetamine to an employee at his workplace. In January 2019, law enforcement agents coordinated with the employee to set up two controlled purchases of methamphetamine from Buehler’s home. The agents surveilled both purchases.
Sentencing was held before United States District Court Judge C.J. Williams. At sentencing, the Court found Buehler obstructed justice by conspiring with his cell mates to have one of the government’s witnesses physically assaulted before trial. The Court also found that two witnesses credibly testified that Buehler convinced them to come to his residence, provided substances to them, and sexually assaulted them multiple times.
The Court credited Buehler with at least 15 adult criminal convictions and found he qualified as a career offender under the United States Sentencing Guidelines.
Buehler was sentenced to serve 360 months’ imprisonment and must serve a 6-year term of supervised release following his term of incarceration. There is no parole in the federal system. Buehler remains in custody of the United States Marshal until he can be transported to federal prison.
The case was prosecuted by Assistant United States Attorneys Jason Dorval Norwood and Pat Reinert. The case was investigated by the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2006.
Follow us on Twitter @USAO_NDIA.
Norfolk Man Convicted of Sexually Abusing 11-Year-OldRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man last Friday on charges of abusive sexual contact of a minor.
According to court records and evidence presented at trial, in 2019, Donald Gene Ferguson II, 51, was working as a civilian Department of Defense employee in Iwakuni, Japan. During the summer of 2019, while in military housing in Iwakuni, Ferguson forced an 11-year-old minor to touch his genitals. While the Naval Criminal Investigative Service (NCIS) was investigating the abuse, they discovered Ferguson also sexually abused a 12-year-old in the summer of 2012 while living in Florida.
Ferguson faces a maximum penalty of life in prison when sentenced on May 9. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; and Mack Hickman, Special Agent in Charge of the NCIS Norfolk Field Office, made the announcement after Chief U.S. District Judge Mark S. Davis accepted the verdict.
Assistant U.S. Attorney Elizabeth Yusi and Trial Attorney Alicia A. Bove of the Department of Justice’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:22-cr-49.
New prosecutor to lead civil rights enforcement in West VirginiaRead the Press Release
Assistant U.S. Attorney Carly Nogay and U.S. Attorney William IhlenfeldWHEELING, WEST VIRGINIA — Civil rights enforcement will be the focus of the newest prosecutor in the United States Attorney’s Office.
U.S. Attorney William Ihlenfeld announced today that Carly Nogay has been hired to lead civil rights investigations, to include hate crimes, disability and housing rights violations, and infractions of laws that prohibit discrimination based upon race, color, national origin, sex, and religion.
“I’m excited to have Carly Nogay on our team,” said Ihlenfeld. “She is an experienced litigator with outstanding academic credentials and a strong desire to serve the public. Her leadership on civil rights matters will help to make our communities safer and stronger.”
Nogay comes from the Allegheny County District Attorney’s Office in Pittsburgh where she handled a busy docket of violent crime and firearms cases. Prior to her work in Pittsburgh, she served as law clerk for Judge Valarie Costanzo of Washington County.
Nogay graduated with honors from both Duquesne University and the West Virginia University College of Law.
New Jersey Man Pleads Guilty to Fraudulent Schemes to Steal California Unemployment Insurance Benefits and to Steal Economic Injury Disaster LoansRead the Press Release
SACRAMENTO, Calif. — Eric Michael Jaklitsch, 40, of Elizabeth, New Jersey, pleaded guilty today to charges in two related cases, one case alleging wire fraud and aggravated identity theft and the other case alleging wire fraud, U.S. Attorney Phillip A. Talbert announced.
For the first case, according to court documents, between October 2020 and December 2021, Jaklitsch executed a scheme to defraud the California Employment Development Department (EDD) by filing at least 78 fraudulent unemployment insurance claims with EDD, seeking Pandemic Unemployment Assistance and other benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. During the scheme, Jaklitsch collected personally identifiable information (PII) of numerous individuals — including names, birth dates, and Social Security numbers — and used their identities to file fraudulent unemployment insurance claims. The filings represented, among other things, that the claimants had recently lost employment or were unable to find employment due to the COVID-19 pandemic. These unemployment insurance claims were fraudulent because, for example, the claimants were not unemployed, they were not eligible for California unemployment insurance benefits, or Jaklitsch did not have authority to file claims on their behalf.
Since at least October 2021, EDD has partnered with ID.me — a private company used by the EDD for ID verification of claimants — to implement a system for verifying claimant identities before EDD can process unemployment insurance claims. An internal investigation conducted by ID.me identified Jaklitsch as a person conducting a fraud scheme and referred the case to federal law enforcement.
In executing his fraudulent scheme, Jaklitsch also submitted false information to ID.me that allowed his fake and stolen identities to be verified. This false information included images of fake driver’s licenses that contained photos of Jaklitsch and the names of the purported claimants. He also submitted live photos of himself that were used to verify the photos on the fake driver’s licenses. Once these false identities were verified, Jaklitsch filed the fraudulent unemployment insurance claims with EDD under the same identities.
In the fraudulent unemployment insurance applications, Jaklitsch requested that the unemployment insurance benefits be mailed to various addresses under his control, including his residence in New Jersey. EDD approved dozens of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing unemployment insurance benefits. Jaklitsch then activated the EDD debit cards and used them to withdraw the benefits at ATMs throughout New Jersey. The scheme sought over $2.5 million in unemployment insurance benefits and caused EDD and the United States to incur actual losses exceeding $900,000.
For the second case, according to court documents, between July 2020 and August 2020, Jaklitsch executed a scheme to defraud the Small Business Administration (SBA) by fraudulently acquiring COVID-19 Economic Injury Disaster Loans (EIDL), which were loans meant to provide low-interest financing and grants to small businesses, renters, and homeowners in regions affected by declared disasters, like the COVID-19 pandemic.
To obtain an EIDL, a qualifying business applied to the SBA and provided certain information about its operations through an online portal. The EIDL approval process required applicants to supply minimal eligibility documentation and to affirm that the information in the application was true and correct under the penalty of perjury and applicable criminal statutes. The amount of an EIDL was based, in part, on the information provided by the applicant—primarily, gross revenue minus cost of goods sold, divided by two. Qualifying entities could use EIDL funds only on certain expenses, including fixed debts, payroll, and accounts payable.
In furtherance of the scheme, Jaklitsch or one or more co-schemers knowingly submitted fraudulent EIDL loan applications to the SBA for the benefit of entities that did not authorize the applications. The false material information included, among other things, that (a) the schemers had the authority to submit the loan applications on behalf of the applying entities, (b) the entities’ gross revenues; (c) the entities’ costs of goods sold; and (d) bank account information purportedly belonging to the entities. These fraudulent applications sought at least $1,280,680. SBA approved these fraudulent applications and caused the transfer of approximately $1,280,540 in EIDL loan funds to at least 14 separate bank accounts held by a financial institution.
Between August and September 2020, Jaklitsch used a cellphone application to conduct numerous cash-out transactions that debited the fraudulent EIDL loan funds held in the 14 bank accounts. Each transaction caused money to be depleted from one or more of the 14 bank accounts, and Jaklitsch received the withdrawn cash from the stores. In total, Jaklitsch withdrew at least $777,312 in cash.
This case is the product of an investigation by the Federal Bureau of Investigation, the Department of Labor – Office of the Inspector General, the Department of Homeland Security – Office of the Inspector General – Covid Fraud Unit, and the California Employment Development Department (EDD) – Investigation Division. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Jaklitsch is scheduled to be sentenced by U.S. District Judge William B. Shubb on April 10, 2023. Jaklitsch faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each of the wire fraud counts. He also faces a two-year mandatory prison sentence for the aggravated identity theft count, which must run consecutive to any sentence received on the wire fraud counts. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of a California COVID-19 Fraud Enforcement Strike Force operation, one of three interagency COVID-19 fraud strike force teams established by the U.S. Department of Justice. The California Strike Force combines law enforcement and prosecutorial resources in the Eastern and Central Districts of California and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors. The strike forces use prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds.
Michigan Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Brandon Lamarr McCauley, also known as “Louie,” 30, of Detroit, Michigan, pleaded guilty today to possession with intent to distribute heroin.
According to court documents and statements made in court, on May 12, 2022, law enforcement officers pulled over a vehicle driven by McCauley on Fifth Avenue in Huntington. McCauley admitted that he possessed approximately 62 grams of suspected heroin, which he had divided into multiple bags for distribution, that officers found during the traffic stop. The West Virginia State Police Forensic Laboratory confirmed the controlled substance was fentanyl.
McCauley further admitted to aiding and abetting another individual in the distribution of additional quantities of heroin totaling 2.6 grams on Sixth Street in Huntington on May 12, 2022.
McCauley is scheduled to be sentenced on April 10, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Violent Crime and Drug Task Force.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-187.
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Mexican National Pleads Guilty to Tax Fraud ChargesRead the Press Release
NASHVILLE – A Mexican national pleaded guilty last week in U.S. District Court to conspiring to file false claims against the United States in order to defraud the United States and steal more than $1,000 of public money, announced U.S. Attorney Henry C. Leventis for the Middle District of Tennessee.
Claudio Juarez, 41, pleaded guilty on Wednesday and had been a fugitive for six years following his indictment in 2016, before being arrested in June 2022 in Bowling Green, Kentucky.
“The U.S. Attorney’s Office remains committed to working with our law enforcement partners at IRS – Criminal Investigation to identify and prosecute those who exploit the tax system and defraud the United States,” said U.S. Attorney Leventis. “I commend the agents and prosecutors who have remained diligent through several years of this protracted investigation which has brought dozens of offenders to justice.”
Juarez was one of 46 persons ultimately charged for participating in a tax fraud scheme involving tax preparation businesses throughout middle Tennessee, including Soto Income Tax Services. The federal investigation began in April 2015, when 10 federal search warrants were executed at various residences and tax return preparation businesses. As a result of this investigation, agents subsequently determined that part of the tax fraud scheme dated back to 2011 and resulted in nearly $6 million in bogus refunds.
During the investigation, more than $1 million in cash was seized, as well as several late model, luxury automobiles and 11 Nashville-area properties. Many of the individuals charged, including Juarez, were in the United States illegally. Juarez’s role in the scheme was crucial to its success as he cashed fraudulent checks and dealt in fake documents such as W-2’s and other fraudulent identification documents.
"As we approach tax filing season, those who might consider preparing false tax returns should be aware of the extremely negative consequences as evidenced by the 46 defendants charged," said Donald “Trey” Eakins, Special Agent in Charge of the Charlotte Field Office. "Today's plea again emphasizes that the Internal Revenue Service Criminal Investigation and U.S. Attorney’s office will continue their aggressive pursuit of those who would attempt to defraud America's tax system."
Juarez’s sentencing hearing is scheduled for May 15, 2023. He faces up to 5 years in prison and a $250,000 fine.
This case was investigated by the Internal Revenue Service-Criminal Investigation and Homeland Security Investigations, with arrest assistance by the Bowling Green Police Department. Assistant United States Attorney J. Christopher Suedekum is prosecuting the case.
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Metairie Woman Sentenced for Theft of Social Security Funds and Cares Act FundsRead the Press Release
Note: The U.S. Attorney's Office would like to acknowledge the assistance of the United States Departmemt of Treasury, Inspector General for Tax Administration in investigating this matter.
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that defendant, RACHEL COONEY, of Metairie, Louisiana, was sentenced on January 5, 2023 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to court documents, COONEY’s mother was receiving social security benefits before her death. When she died, these benefits should have terminated. However, COONEY continued to receive the payments by accessing her deceased mother’s bank account from November 2015 through January 2020. COONEY also received $1,200.00 of COVID-19/CARES ACT funds deposited into her mother’s account. COONEY admitted to federal authorities that she used her deceased mother’s ATM card to pay for her own personal expenses knowing she was not entitled to Social Security benefits or the COVID-19/CARES ACT funds. COONEY failed to notify the Social Security Administration of her mother’s death, and fraudulently received approximately $76,139.00 in benefits to which she was not entitled. COONEY also received $1,200.00 of COVID-19/CARES ACT funds to which she was not entitled.
U.S. District Judge Carl J. Barbier sentenced COONEY to five (5) years of probation, the payment of restitution to the Social Security Administration in the amount of $76,139.00 and a $100 mandatory special assessment fee.
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.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorneys Rachal Cassagne and Jon Maestri.
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Markenzy Lapointe Toma Juramento al Cargo de Fiscal Federal del Distrito Sur de FloridaRead the Press Release
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Nombrado por el presidente Joseph Biden y confirmado por el Senado de los Estados Unidos, Lapointe dirige ahora la oficina de casi 500 abogados y profesionales de apoyo responsables de la investigación y persecución de delitos federales en el sur de Florida, tanto como litigios civiles en los que los Estados Unidos tiene interés jurídico.
"Siento profunda honra de servir a mi país y a la comunidad como fiscal federal del distrito sur de Florida," dijo Lapointe. "La gloriosa historia de ésta oficina procede de décadas de compromiso con la justicia, equidad, integridad, y el servicio a la comunidad. Me comprometo a respetar estos principios y esforzarme por mantener el nivel de excelencia sobre el que se construyó esta oficina."
Antes de su nombramiento como fiscal federal de los Estados Unidos, Lapointe fué socio en el despacho de Miami de Pillsbury Winthrop Shaw Pittman LLP, donde se ocupaba de asuntos comerciales, responsabilidad civil de productos defectuosos de alto riesgo, negligencia profesional, y asuntos de investigación penal. También copresidió el comité de promoción de la diversidad de abogados del bufete, promoviendo la retención y promoción de abogados de diversas procedencias.
Lapointe comenzó su carrera judicial en el Tribunal Supremo de Florida, donde trabajó como asistente jurídico del Honorable Harry Lee Anstead del 1999 al 2001. Pasó a ser fiscal adjunto del distrito sur de Florida del 2002 al 2006, donde se encargaba de asuntos penales federales que van desde delitos relacionados con estupefacientes y armas de fuego hasta fraudes bancarios e hipotecarios. Lapointe trabajó como asociado de litigios, y más tarde como socio en el bufete de Miami de Boise Schiller Flexner LLP del 2006 hasta el 2017. Después de eso, se unió a Pillsbury como socio.
A lo largo de su carrera, Lapointe mantuvo una destacada práctica pro bono.
Recibió el Premio de Asistencia Jurídica/Premio Pro Bono de Devolver Algo a Cambio en la Defensa del Menor y el Premio de Abogado más Eficiente en el Daily Business Review por Trabajo Pro Bono en Derecho de Familia.
Lapointe recibió su licenciatura en derecho de la Facultad de Derecho de Florida State University y una licenciatura en finanzas de la Facultad Empresarial de Florida State University. También estudió en Miami Dade College.
Lapointe es un veterano de la Guerra del Golfo en la Marina y el primer abogado estadounidense de origen haitiano en servir al país como fiscal federal. Emigró de Haití a los Estados Unidos siendo adolescente, vivió en el vecindario de Liberty City, y se graduó de Edison High School.
El sustituye a Juan Antonio Gonzalez, fiscal federal de carrera que dirigía la oficina desde marzo 2021.
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Markenzy Lapointe Swears Oath of Office as South Florida United States AttorneyRead the Press Release
MIAMI – Markenzy Lapointe was sworn in today as United States Attorney for the Southern District of Florida by Chief U.S. District Judge Cecilia M. Altonaga.
Nominated by President Joseph Biden and confirmed by the U.S. Senate, Lapointe now leads an office of nearly 500 attorneys and support professionals responsible for investigating and prosecuting federal crimes in South Florida and for litigating civil matters in which the U.S. has an interest.
“I am deeply honored to serve my country and community as U.S. Attorney for the Southern District of Florida,” said Lapointe. “The proud history of this office stems from decades of commitment to justice, fairness, integrity, and community service. I will follow these principles and strive to uphold the standard of excellence on which this office is built.”
Prior to his appointment, Lapointe was a partner in the Miami office of Pillsbury Winthrop Shaw Pittman LLP, where he handled commercial, high exposure product liability, professional malpractice, and criminal investigation matters. He also co-chaired the law firm’s Advancement of Diverse Attorneys Committee, promoting the retention and advancement of attorneys from diverse backgrounds.
Lapointe began his legal career with the Florida Supreme Court, where he served as a law clerk to the Honorable Harry Lee Anstead from 1999 to 2001. He went on to serve as an assistant U.S. attorney for the Southern District of Florida from 2002 to 2006, handling federal criminal matters that ranged from narcotics and firearms crimes to bank and mortgage fraud. Lapointe worked as a litigation associate, and later partner, for the Miami office of Boies Schiller Flexner LLP from 2006 to 2017. After that, he joined Pillsbury as a partner.
Throughout his career, Lapointe has maintained a notable pro bono practice. He received the Legal Aid/Put Something Back Pro Bono Award in Child Advocacy and the Daily Business Review’s Most Effective Lawyer Award for Pro Bono in Family Law.
Lapointe received his law degree from Florida State University College of Law and a degree in finance from Florida State University College of Business. He also attended Miami Dade College.
Lapointe is a U.S. Marine Gulf War veteran and the first Haitian-born American lawyer to serve the country as U.S. Attorney. He emigrated from Haiti to the U.S. as a teenager, lived in Miami’s Liberty City neighborhood, and graduated from Edison High School.
He replaces Juan Antonio Gonzalez, a career federal prosecutor who had led the office since March 2021.
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Markenzy Lapointe Prete Sèman pou Pòs Pwokirè Jeneral La Florid di SidRead the Press Release
The referenced media source is missing and needs to be re-embedded.MIAMI - Markenzy Lapointe prete sèman jodiya kom Pwokirè Jeneral Distri Sid Laflorid devan Chèf Jij Distri Dèzetazini Cecilia M. Altonaga.
Nonmen pa Prezidan Joseph Biden epi konfimè pa Sena Lèzetazini, Lapointe an tèt yon biwo ki gen prèske 500 Avoka ak tout profesyonèl dapwi yo ki responsab envestige ak pouswiv tout zak kriminèl federal nan Laflorid di Sid, ak litij koze sivil kote entère Lèzetazini an je.
"Se avèk anpil onè ke ma va sèvi peyi m ak kominote a antan ke Pwokirè Jeneral Distri Sid Laflorid la." Msye Lapointe di. "Istwa fyète biwo sa a pran nesans nan deseni de angajman ak la jistis, san patipri, entegrite, ak sèvis kominòtè. Mwen angaje m a swiv tout prensip sa yo ak fè tout efò pou respekte tout nòm ekselans ki se fondasyon biwo sa a.
Anvan yo te nonmen l, Lapointee te patnè nan kabinè Pillssbury Winthrop Shaw Pittman LLP, kote li te jere litij komèsyal, ak responsabilite sivil pwodwi defektye a gwo risk, neglijans pwofesyonèl, ak koze envestigasyon kriminèl. Li te ko-prezidan tou, nan Komite pou Avansman Divèsite Avoka, pou pwomouvwa retansyon ak avansman avoka divès orijin.
Lapointe te komanse karyè legal li nan Tribinal Siprèm Laflorid kote li te sèvi antan ke Asistan Legal Onorab Harry Lee Anstead de 1999 a 2001. Aprè sa li pase a Adjidan Komisè Gouvènman nan Distri Sid Laflorid de 2002 a 2006, kote li tap jere tout koze zak kriminèl depi sou zak ki gen rapò ak dwòg, zamafe rive jiska fwòd bankè ak fwòd ipotèk. Lapointe travay tou kom assosye litij, epi li vinn fè patnè nan Kabinè Boise Schiller Flexner nan Miami a de 2006 a 2007. Aprè sa li rantre nan Pillsbury antan ke asosye
Atravè karyè li, Lapointe te kenbe yon pratik asistans legal gratis solid. Li resevwa Pri de Legal Aid/Put Something Back Pro bono pou defans timoun ak Pri Avoka pi Efisyan nan Daily Business Review pou travay pro bono nan Dwa Koze Familyal.
Lapointe resevwa diplòm avoka liya de Fakilte Dwa Florida State University ak dipòm nan finans de Lekòl Komès Florida State University. Li te etidye nan Miami Dade College tou.
Lapointe se yon Veteran Gè Golf la Marin ak premye Avoka Ameriken ki fèt an Ayiti ka pral sèvi peyi a antan ke Pwokirè Jeneral. Li emigre de Ayiti vinn Lèzetazini lè li te yon jèn adolesan, li te abite nan vwazinaj Liberty City epi li gradye de Edison High School.
Li ranplase Juan Antonio Gonzalez, yon pwokirè de karyè ki tap dirije biwo a depi mas 2021.
Man Sentenced for Integral Role in Sophisticated International Fraud SchemeRead the Press Release
A Romanian national was sentenced today to 89 months in prison for his role in a transnational, multimillion-dollar scheme to defraud American victims. He is the 24th member of the organized criminal group to be sentenced, of the 28 who were charged.
Ionut-Razvan Sandu, 35, of Romania, pleaded guilty in April 2022 to conspiracy to commit a Racketeer Influenced and Corrupt Organizations Act (RICO) offense. Four other defendants pleaded guilty to this offense and were sentenced for their roles in the conspiracy between Nov. 16 and 18, 2022, including: Rafael-Liviu Cucu, 33, of Romania to 61 months; Alexandru-Catalin Calin, 40, of Romania, to 61 months; Ciprian-Ionut Filip, 37, of Romania to 70 months; and Gabriel Constantin Georgescu, 37, of Romania to 63 months.
“This highly organized and sophisticated syndicate stole directly from the pockets of hard-working Americans. The criminals then used digital currency to launder their ill-gotten gains,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s result is proof that the Criminal Division and our law enforcement partners will never stop pursuing cybercriminals who target the American public—no matter where these criminals reside, and no matter what tools they use to hide.”
“Cybercrime is an increasingly prevalent means for criminals to prey on the public, causing victims, from across the United States, to lose millions of dollars,” said U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “To continue to protect Americans against organized cybercrime, cooperation and coordination among law enforcement is essential. This case is the result of a massive, years-long effort by the U.S. Secret Service to coordinate the investigation of this crime and identify and apprehend the offenders. I commend the exceptional work done by all our law enforcement partners, and we are proud to have joined this cooperative effort to prosecute this significant cyber fraud scheme.”
“Financial crimes that take place in the cyber domain have a very real impact on everyday Americans and their families,” said Special Agent in Charge Robert Holman of the U.S. Secret Service Louisville Field Office. “The Secret Service remains committed to investigating such crimes, and we appreciate the continued support of our local, state, federal, and international law enforcement partners as we work together to bring those responsible to justice.”
According to plea documents, beginning as early as October 2014, Sandu and other members of the criminal organization collectively developed a process and offered a service by which co-conspirators based in the United States and abroad would launder the proceeds of online auction fraud.
According to court documents, Georgescu, Filip, and other co-conspirators posted false advertisements to popular online auction and sales websites, such as eBay, for goods that did not actually exist. Members of the conspiracy created fictitious online accounts to post these advertisements and communicate with victims, sometimes using the stolen identities of Americans to do so. The advertisements typically marketed the sale of used vehicles or similar goods and targeted working-class Americans.
Members of the conspiracy used several tactics to convince victims to send money for the advertised goods. For example, they impersonated a military member who needed to sell the advertised item before deployment. In furtherance of the scheme, the defendants delivered invoices to the victims bearing trademarks of reputable companies to make the transaction appear legitimate. The defendants also set up call centers to impersonate customer support, address questions, and alleviate concerns over the advertisements.
Once victims had sent payment, members of the conspiracy engaged in a complex money laundering scheme offered by Sandu and others wherein U.S.-based conspirators received victim funds, converted those funds to cryptocurrency, and transferred proceeds in the form of cryptocurrency to foreign-based money launderers. Those foreign-based money launderers, such as Cucu and Calin, would then work with other members of the conspiracy to convert the bitcoin back into fiat currency. Sandu was held responsible for laundering over $3.5 million worth of fraudulent proceeds. To date, law enforcement has identified over 900 victims of this scheme.
The investigation was conducted by the U.S. Secret Service, Kentucky State Police, Lexington Police Department, IRS Criminal Investigation and U.S. Postal Inspection Service, and supported by the Justice Department’s Organized Crime Drug Enforcement Task Force (OCDETF) and the International Organized Crime Intelligence and Operations Center (IOC-2). Assistance was provided by the Romanian National Police (Service for Combating Cybercrime), the Romanian Directorate for Investigating Organized Crime and Terrorism (Agency for Prosecuting Organized Crime), and the Supreme Prosecutor’s Office of Cassation of the Republic of Bulgaria. The Justice Department’s Office of International Affairs and Criminal Division’s Money Laundering and Asset Recovery Section provided significant support.
This case is being prosecuted by Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Kathryn M. Dieruf of the U.S. Attorney’s Office for the Eastern District of Kentucky.
Individuals who believe they may be victims of the online auction fraud scheme described herein are encouraged to visit the following website to obtain more information: www.justice.gov/usao-edky/information-victims-large-cases.
Leader of Drug Trafficking Organization Facing up to Life in Prison Following Jury VerdictRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Uriel Fajardo-Albarran (27, Coleman) guilty of one count of conspiring to distribute 50 grams or more of methamphetamine and three counts of distribution of methamphetamine. Fajardo-Albarran faces a minimum mandatory penalty of 10 years, up to life, in federal prison. A sentencing date has not yet been set.
According to evidence presented during the three-day trial, Fajardo-Albarran received large amounts of methamphetamine from sources in Mexico, Texas, and Atlanta, Georgia. He then transported the methamphetamine to the Middle District of Florida where he used lower-level dealers to distribute multiple kilograms of the substance each week for approximately two years. Fajardo-Albarran organized the network of distribution after taking over for a supplier who had previously been convicted and sentenced to federal prison.
This case was investigated by the Drug Enforcement Administration, the Columbia County Sheriff’s Office, the Lake City Police Department, the Florida Highway Patrol, the Unified Drug Enforcement Strike Team, the Marion County Sheriff’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorneys Tyrie K. Boyer and Sarah J. Swartzberg.