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Tuesday 3 January 2023
Middle District of Florida U.S. Attorney’s Office Collects More Than $168 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
Tampa, FL ― U.S. Attorney Roger B. Handberg announced today that the Middle District of Florida (MDFL) collected $168,330,189 related to criminal and civil matters in the fiscal year ending September 30, 2022 (FY 2022). Of that amount, $103,089,821 represents total collections in criminal and civil actions. Included in this amount is $43,048,067 recovered in its locally handled cases; $17,769,638 in criminal cases and $25,278,429.11 in civil cases.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $85,181,948 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $59,903,519.32 in these jointly handled cases.
Additionally, the district’s Asset Recovery Division, led by Chief Anita Cream, working with partner agencies, forfeited $65,240,368 from criminal and civil asset forfeiture actions completed in fiscal year 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2022, more than $14 million forfeited in the MDFL in this and prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and approximately $3 million was shared with federal, state, and local law enforcement agencies. The district anticipates that the vast majority of the more than $65 million forfeited in FY 2022 will be returned to crime victims.
“Every day, we work alongside our law enforcement partners, federal, state, and local agencies to enforce our nation’s laws and recover illicit money from convicted criminals who have exploited government programs through fraud and abuse,” said U.S. Attorney Roger B. Handberg. “We will continue to coordinate our efforts to protect taxpayer resources, help victims recover from their losses, and restore public trust.”
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
Significant Affirmative Civil Enforcement Cases
United States ex rel. Haight v. Physician Partners of America, et al., Case No. 8:18-civ-267 (M.D. Fla.)
Four overlapping qui tam complaints were filed against a Tampa pain management practice and alleged that the practice paid physicians based on the volume or value of the physicians’ orders for urine drug testing in violation of the Stark Law and Anti-kickback Statute. The relators also alleged that practice group performed medically unnecessary urine drug testing because the orders were not based on the individual needs of each patient. In investigating these claims over the ensuing three years, we discovered that the practice group additionally had billed Medicare for fraudulent anesthesia claims at its surgery centers and had applied for a Paycheck Protection Program loan that it was not eligible to receive. Following extensive negotiations, we resolved all allegations in the qui tam complaints for $24.5 million. This settlement amount included a civil penalty in excess of $1 million imposed under FIRREA to address the PPP loan fraud allegations.
Press release: https://www.justice.gov/opa/pr/physician-partners-america-pay-245-million-settle-allegations-unnecessary-testing-improper
United States ex rel. Bomar v. Bayfront Medical Center, et al., Case no. 8:16-cv-3310-MSS-JSS (M.D. Fla.)
This qui tam case alleges that four area hospitals have defrauded Medicare through a complex scheme through bogus “paper” charitable contributions by the hospitals to local government organizations. These contributions are passed through the Florida Medicaid program which used them to seek matching funds from Medicare. The Medicare money was eventually paid to the hospitals and would have never been paid out, had the federal program realized the true nature of the contributions. In investigating this alleged scheme, we have discovered that many area hospitals could be engaged in the same conduct. We have settled our claims with two hospitals, finalizing a $5.5 million settlement with Naples Community Hospital in February 2022 and a $20 million settlement with the BayCare Hospital system in April 2022.
Press releases: https://www.justice.gov/opa/pr/florida-s-nch-healthcare-system-agrees-pay-55-million-settle-common-law-allegations
https://www.justice.gov/opa/pr/florida-s-baycare-health-system-and-hospital-affiliates-agree-pay-20-million-settle-false
United States ex rel. Cancel v. Central Medical Systems, LLC, Case No. 6:14-civ-512-Orl-28TBS (M.D. Fla.)
We intervened in this qui tam case in 2018 in order to pursue civil fraud claims against this central Florida supplier of durable medical equipment (DME) and its principals for, among other things, billing federal health programs for DME that was not provided. Early in the case, we secured a freeze of the defendants’ assets under the Federal Debt Collection Procedures Act in light of a concern over the defendants’ circumvention of an administrative claims review process. The individual owner of the provider then filed a bankruptcy petition, which prompted litigation under a variety of provisions of the Bankruptcy Code. Eventually, the principal owner of the defendant provider, Trent Harley, was indicted and pled guilty to health care fraud offenses that overlap with the civil claims alleged in the qui tam complaint. The civil claims in the qui tam complaint were ultimately settled in January 2022 for $600,000. In 2021, Mr. Harley was sentenced to serve fifteen months in federal prison for wire fraud offenses connected to the scheme.
Press release: https://www.justice.gov/usao-mdfl/pr/central-medical-systems-llc-alan-trent-harley-and-joan-harley-agree-pay-600k-settle
Little Rock Man Sentenced to 30 Years in Prison for Distributing Fentanyl That Resulted in DeathRead the Press Release
LITTLE ROCK—A Little Rock man who distributed the fentanyl that resulted in a person’s overdose death has been sentenced to 30 years in prison. Jemel Foster, 32, was sentenced today by United States District Judge Billy Roy Wilson, who considered Foster’s convictions of four federal drug and firearm crimes, including distribution of fentanyl that resulted in death.
Foster was also convicted in his July 2022 trial of possessing fentanyl with intent to distribute it, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug-trafficking crime. Judge Wilson sentenced Foster to 300 months for distribution of fentanyl resulting in death, the maximum sentenced allowed by law of 240 months and 120 months, respectively, for possession of fentanyl with intent to deliver and being a felon in possession of a firearm, and 60 months for possession of a firearm in furtherance of a drug-trafficking crime. The 60-month sentence is to run consecutively to the 300- month sentence, for a total of 360 months in prison. There is no parole in the federal system.
“Today’s lengthy sentence emphasizes the reality that drug crime is violent crime,” stated United States Attorney Jonathan D. Ross. “A young woman has needlessly lost her life because of the violence that accompanies drug crime. Illegal fentanyl distribution is a scourge in our community that needs to be stopped, and this sentence should make clear that there are severe consequences for anyone who chooses to illegally sell fentanyl. We are thankful this defendant will no longer be able to peddle this deadly substance in our community.”
On July 6, 2021, a grand jury charged Foster in a superseding indictment with the four counts he took to trial, all of which related to two January evenings in 2021.
The evidence at trial revealed that on the evening of January 11, 2021, a woman purchased fentanyl from Foster around 7:22 p.m. in the parking lot of a Little Rock Walgreens store. According to testimony from the medical examiner who conducted her autopsy, the woman died from a fatal dose of fentanyl around midnight that evening at her mother’s nearby home. After discovering her body the next morning, the woman’s family contacted the Little Rock Police Department, and eventually the Drug Enforcement Administration (DEA). At trial, the DEA agents involved in the case explained how they were able to identify Foster as the source of the fatal fentanyl from data in the victim’s phone.
The DEA, believing Foster would not be aware the woman had died, used the victim’s phone to contact Foster on January 12, 2021, and ask if he had any more fentanyl for sale. Foster agreed to meet at the same Walgreen’s parking lot the person he believed would be the woman who purchased fentanyl from him the night before. When Foster arrived at the parking lot, the DEA arrested him and located eight bags of fentanyl in his pants, totaling approximately four grams, and a firearm in his vehicle. The bags of fentanyl found on Foster’s person matched exactly two bags of fentanyl that were found on the victim’s body during her autopsy.
At trial, the medical examiner testified that there is no safe dosage of illicit fentanyl, and tiny amounts of the substance can kill a person nearly immediately. The medical examiner and state toxicologist testified that it was their opinion that fentanyl caused the victim’s death.
“Fentanyl is the deadliest drug threat we are facing today, killing Americans at record rates,” said DEA Assistant Special Agent in Charge Jarad Harper. “Last year alone, nearly 108,000 lives were lost to a drug poisoning, with fentanyl driving this record increase. Drug traffickers are mixing fentanyl in other illicit drugs in an effort to drive addiction and create repeat buyers. This investigation highlights the efforts of DEA, our law enforcement partners, and the United States Attorney’s Office who work tirelessly every day to bring dangerous drug dealers to justice.”
In addition to his sentence of imprisonment, Foster was sentenced to three years of supervised release on each count to run concurrently. The investigation was conducted by DEA, with assistance from the Little Rock Police Department and Arkansas State Police. The case was prosecuted by Assistant United States Attorneys Chris Givens and Benecia Moore.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
KC Man Involved in Shoot-out Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who was involved in a shoot-out at a local gas station was sentenced in federal court today for illegally possessing a firearm.
Tirrell M. Thompson, 31, was sentenced by U.S. District Judge Greg Kays to nine years in federal prison without parole.
On May 23, 2022, Thompson pleaded guilty to being a felon in possession of a firearm. Thompson admitted that he was involved in a shoot-out at a gas station near 45th and The Paseo on May 6, 2020. A federal marshal witnessed the shooting, in which Thompson pulled a Taurus .45-caliber semi-automatic handgun from his waistband, ducked behind his car, and shot back at another individual who was shooting at him. The marshal also saw Thompson flee from the gas station in a silver vehicle.
A police helicopter identified the fleeing car, which slowed down as Thompson tossed the handgun out of the car near 58th Terrace and Swope Parkway. Police officers arrested Thompson and found the handgun, which had blood on it, in the area where Thompson had tossed it.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Thompson has two prior felony convictions for resisting arrest and a prior felony conviction for unlawful use of a weapon.
This case was prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jefferson City Man Sentenced for Meth Trafficking, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., man was sentenced in federal court today for illegally possessing a firearm and methamphetamine to distribute.
Clint Alexander Doll, 35, was sentenced by U.S. District Judge Roseann Ketchmark to 10 years in federal prison without parole.
On July 28, 2022, Doll pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Jefferson City police officers executed a search warrant at Doll’s residence on June 3, 2021. Doll was found in a bedroom on the lower level of his residence, where he packaged methamphetamine for distribution. In that room, officers seized a bag that contained 534.34 grams of methamphetamine, approximately $39,536 in cash that was stashed inside a camera-style bag, a Remington 12-gauge shotgun, 25 shotgun shells, four cell phones, and drug paraphernalia.
Text messages retrieved from the cell phones showed that Doll coordinated the distribution of methamphetamine among several individuals. Under the terms of his plea agreement, Doll must forfeit to the government the $39,536 seized by law enforcement officers, which he admitted was proceeds from the distribution of methamphetamine.
This case was prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger. It was investigated by the Jefferson City, Mo., Police Department, the Cole County, Mo., Sheriff’s Department, and the Drug Enforcement Administration.
Jackson Man Pleads Guilty to Brandishing a Firearm in Relation to a RobberyRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty to brandishing a firearm in relation to a crime of violence, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Tyrese Antwon Linson, 23, brandished a pistol during a nighttime robbery of a motel in the Jackson metro area. Linson became angry with the motel clerks when his reservation did not appear in their computer. As a result, Linson pulled a pistol and demanded money from the clerks. Linson was taken into custody shortly after the robbery. Robbery is a crime of violence, and it is contrary to federal law to brandish a firearm in relation to a crime of violence.
Linson pleaded guilty on December 20, 2022 to a violation of Title 18, United States Code, Sections 924(c)(1)(A) which criminalizes the use or carrying of firearms in relation to crimes of violence or drug trafficking crimes.
Linson is scheduled to be sentenced on March 28, 2023, and faces a minimum penalty of 7 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Jackson Police Department and the FBI are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case is being 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.
Illegal Alien Sentenced to Prison for Unlawful Possession of a FirearmRead the Press Release
A Guatemalan man who illegally possessed a firearm was sentenced today to ten months in federal prison.
Pablo Perez-Chavez, age 22, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a July 25, 2022, guilty plea to one count of Possession of a Firearm by an Illegal Alien.
In a plea agreement, Perez-Chavez admitted that he unlawfully possessed a firearm in April 2022 while being illegally present in the United States. On April 30, 2022, Perez-Chavez was arrested by Cedar Rapids police officers after the officers were called to Perez-Chavez’s location by a 911 call. During the course of the investigation, officers found two .380 caliber bullets in Perez-Chavez’s pocket and a Walther PK380, .380 Auto caliber pistol on the ground where they first spotted Perez-Chavez that morning. Perez-Chavez admitted that he knowingly possessed the firearm.
Perez-Chavez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Perez-Chavez was sentenced to ten months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Perez-Chavez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Cedar Rapids Police Department and the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-46.
Follow us on Twitter @USAO_NDIA.
Honduran Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Four TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to four months in federal prison.
Elder Moises Ramirez-Melgar, age 30, a citizen of Honduras illegally present in the United States and residing in Postville, Iowa, received the prison term after a November 1, 2022, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Ramirez-Melgar admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Ramirez-Melgar was previously deported in September 2014 and March 2016. In February 2017, Ramirez-Melgar was convicted in Arizona of illegal entry into the United States and again deported in March 2017. In March 2020, Ramirez-Melgar was again convicted in Arizona of illegal entry into the United States and again deported in May 2020. On October 3, 2022, immigration officials learned Ramirez-Melgar had illegally returned to the United States and found Ramirez-Melgar at the Allamakee County Jail following his arrest on state charges.
Ramirez-Melgar was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ramirez-Melgar was sentenced to four months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Ramirez-Melgar is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1038.
Follow us on Twitter @USAO_NDIA.
Hagerstown man admits to role in international drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hagerstown, Maryland man has admitted to his role in an expansive drug trafficking conspiracy that spanned several states.
According to court documents, Daniel Inoa-Rodriguez, also known as “Danny,” 23, was heard on wiretap phone calls, talking with other known defendants about drug deliveries. One of the conversations revolved around $30,000 in drug proceeds and what to do with the cash just before Inoa-Rodriguez planned to travel to the Dominican Republic to deliver the money. Because of the intercepted communications, agents were able to seize the cash before he successfully boarded the plane at JFK Airport in March 2021. Court documents also reveal that Inoa-Rodriguez was in the back area of Top 3 Sources, a business in Hagerstown and a target in this investigation, during multiple drug transactions. The crimes occurred from August 2020 to June 2021 in Berkeley County and elsewhere.
Inoa-Rodriguez pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Inoa-Rodriguez faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The FBI; U.S. Marshals Service, Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; The Drug Enforcement Administration; the West Virginia Air National Guard, the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative (agencies included are the West Virginia State Police, Berkeley County Sheriff’s Department, Jefferson County Sherriff’s Department, Ranson Police Department, Charles Town Police Department, and Martinsburg City Police Department); West Virginia State Police; Customs and Border Protection; the Hagerstown Police Department; the National Resources Police Department; FBI-New York Safe Streets Task Force; the New York Police Department; the New Jersey State Police; the Washington County (Maryland) Drug Task Force; the Maryland State Police; the U.S. Attorney’s Office for the District of Maryland; and the U.S. Attorney’s Office for the Middle District of Pennsylvania investigated.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/34-indicted-expansive-drug-trafficking-operation
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to six months in federal prison.
Miguel Jose Lopez-Garcia, age 23, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a November 1, 2022, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Lopez-Garcia admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Lopez-Garcia was previously deported in March 2020. On June 13, 2022, immigration officials learned Lopez-Garcia had illegally returned to the United States and found Lopez-Garcia at the Allamakee County Jail following his arrest on state charges. On September 14, 2022, Lopez-Garcia went into federal custody following his conviction in Iowa District Court for Sexual Abuse, Third Degree, and Operating While Intoxicated, First Offense.
Lopez-Garcia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lopez-Garcia was sentenced to six months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez-Garcia is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1032.
Follow us on Twitter @USAO_NDIA.
Gallatin County meth trafficker sentenced to four years in prisonRead the Press Release
MISSOULA — A Bozeman man who admitted to selling methamphetamine and cocaine to approximately 10 people in the Gallatin Valley for about a year was sentenced today to four years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Gerardo Gutierrez, 21, pleaded guilty in November 2021 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in July 2020, Gutierrez sold meth twice to a confidential informant. When interviewed, Gutierrez told law enforcement he had been dealing meth for another person for approximately one year and estimated he dealt an average of one ounce a week of both meth and cocaine, which is about 3.25 pounds of each drug, and sold to 10 different people.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Missouri River Drug Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Frank James Pleads Guilty to Mass Shooting on New York SubwayRead the Press Release
Frank James, 63, of Milwaukee, Wisconsin, pleaded guilty today to 10 counts of committing a terrorist attack or other violence against a mass transportation vehicle – one count for each gunshot victim – and one count of discharging a firearm in furtherance of his attack. The charges relate to the defendant’s April 12, 2022, mass shooting on the New York City subway in Sunset Park, Brooklyn.
According to court documents, during rush hour on the morning of April 12, 2022, James used a Glock 17 pistol he legally purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn, New York. As part of his attack, James – disguised in an orange reflective jacket and yellow hard hat to look like a Metropolitan Transportation Authority (MTA) employee – set off a smoke-emitting device in a subway car before opening fire on his captive victims. The smoke-emitting device caused panicked passengers to scramble to one end of the subway car, allowing James to more easily shoot at his victims. In total, 10 victims were struck by the defendant’s bullets. Even more passengers suffered from smoke inhalation and other mental and physical injuries due to the defendant’s attack.
“As described in court filings, the defendant set off a smoke bomb in a New York City subway car and then fired a handgun more than 30 times, striking ten innocent passengers,” said Attorney General Merrick B. Garland. “Today’s guilty plea demonstrates that the Justice Department will work relentlessly to hold accountable those who engage in mass violence and terrorize our communities.”
“On the morning of April 12, 2022, Frank James cold-bloodedly shot innocent New Yorkers traveling on the subway in Brooklyn and brought terror to our great city. James’s crimes of violence have been met with swift justice,” said U.S. Attorney Breon Peace for the Eastern District of New York. “James’s admission of guilt to all eleven counts of the superseding indictment acknowledges the terror and pain he caused. This guilty plea is an important step towards holding James fully accountable and helping the victims of the defendant’s violence and our great city heal.”
“Frank James, as he admitted today, deliberately planned and carried out an attack of terror on everyday New Yorkers. The FBI's JTTF and our law enforcement partners remain ever vigilant in our efforts to protect our city, and we will ensure those willing to commit acts of terror face the consequences of their actions,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office.
“Today’s guilty plea is a distinct admission of the terror Mr. James inflicted on New Yorkers last April in Brooklyn, and he is being held accountable for his reprehensible actions that morning,” said Commissioner Keechant L. Sewell of New York City Police Department (NYPD). “Our nation’s largest transit system is the lifeblood of New York City. And its subway riders expect and deserve the brisk, coordinated, and meticulous work exhibited by everyone involved in bringing this terrible incident to a successful close. For their unwavering dedication to all the people we serve, I thank and commend the NYPD patrol officers who arrested Mr. James on the run, as well as each of the detectives and agents assigned to the Joint Terrorism Task Force who methodically shrunk his world until he had nowhere else to turn. Lastly, I also want to thank the public for their vigilance and their help in taking this violent criminal off of our streets.”
The investigation reflects that the attack was the culmination of substantial planning. Beginning as early as 2017, James began purchasing items he could use in an attack, including smoke grenades, ammunition, weapons, and his disguise. In the months leading up to his attack, James conducted web searches for “MTA,” “New York,” “transit,” “stops on the N train,” and “311 kings highway brooklyn ny,” which is near where James parked his rented U-Haul van before entering the subway. The defendant also recorded and posted videos online foreshadowing his plans, including stating that “if you hear the name Frank James on the news, if something happens to a Frank James that’s sixty-something years old, chances are that’s me.”
Following James’s attack, law enforcement officers searched James’s apartment and storage unit and uncovered a stockpile of weapons, including, among other items, 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached; .223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke cannister.
James faces up to life in prison on each of the 11 counts. A sentencing date has not yet been set.
The FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD are investigating the case. MTA and ATF provided valuable assistance.
Assistant U.S. Attorneys Ian C. Richardson, Sara K. Winik, and Ellen H. Sise for the Eastern District of New York are prosecuting the case, with valuable assistance provided by Paralegal Specialist Magdalena St. Surin and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Frank James Pleads Guilty to Mass Shooting on New York City SubwayRead the Press Release
Earlier today, in federal court in Brooklyn, Frank James pleaded guilty to 10 counts of committing a terrorist attack or other violence against a mass transportation vehicle—one count for each gunshot victim—and one count of discharging a firearm in furtherance of his attack. The charges relate to the defendant’s April 12, 2022 mass shooting on the New York City subway in Sunset Park, Brooklyn. Today’s proceeding was held before United States District Judge William F. Kuntz, II. When sentenced, James faces up to life in prison on each of the 11 counts.
Merrick B. Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“On the morning of April 12, 2022, Frank James cold-bloodedly shot innocent New Yorkers traveling on the subway in Brooklyn, and brought terror to our great city. James’s crimes of violence have been met with swift justice,” stated United States Attorney Peace. “James’s admission of guilt to all eleven counts of the superseding indictment acknowledges the terror and pain he caused. This guilty plea is an important step towards holding James fully accountable and helping the victims of the defendant’s violence and our great city heal.”
Mr. Peace praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD in bringing the defendant to justice. Mr. Peace also thanked the Metropolitan Transportation Authority (MTA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for their substantial assistance.
“As described in court filings, the defendant set off a smoke bomb in a New York City subway car and then fired a handgun more than 30 times, striking ten innocent passengers,” said Attorney General Merrick B. Garland. “Today’s guilty plea demonstrates that the Justice Department will work relentlessly to hold accountable those who engage in mass violence and terrorize our communities.”
“Frank James, as he admitted today, deliberately planned and carried out an attack of terror on everyday New Yorkers. The FBI's JTTF and our law enforcement partners remain ever vigilant in our efforts to protect our city, and we will ensure those willing to commit acts of terror face the consequences of their actions,” stated FBI Assistant-Director in Charge Driscoll.
“Today’s guilty plea is a distinct admission of the terror Mr. James inflicted on New Yorkers last April in Brooklyn, and he is being held accountable for his reprehensible actions that morning,” stated NYPD Commissioner Keechant L. Sewell. “Our nation’s largest transit system is the lifeblood of New York City. And its subway riders expect and deserve the brisk, coordinated, and meticulous work exhibited by everyone involved in bringing this terrible incident to a successful close. For their unwavering dedication to all the people we serve, I thank and commend the NYPD patrol officers who arrested Mr. James on the run, as well as each of the detectives and agents assigned to the Joint Terrorism Task Force who methodically shrunk his world until he had nowhere else to turn. Lastly, I also want to thank the public for their vigilance and their help in taking this violent criminal off of our streets.”
According to court filings and facts presented at the plea proceeding, at approximately 8:26 a.m. on April 12, 2022, James used a Glock 17 handgun that he legally purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn. As part of his attack, James—disguised in an orange reflective jacket and yellow hardhat to look like an MTA employee—set off a smoke-emitting device in a subway car before opening fire on his captive victims. The smoke-emitting device caused panicked passengers to scramble to one end of the subway car, allowing James to more easily shoot at his victims. In total, 10 victims were struck by the defendant’s bullets. Even more passengers suffered from smoke inhalation and other emotional and physical injuries caused by the defendant’s attack.
The investigation reflects that the attack was the culmination of substantial planning. Beginning as early as 2017, James began purchasing items he could use in an attack, including smoke grenades, ammunition, weapons, and his disguise. In the months leading up to his attack, James conducted internet searches for “MTA,” “New York,” “transit,” “stops on the N train,” and “311 kings highway brooklyn ny,” which is near where James parked his rented U-Haul van before entering the subway. The defendant also recorded and posted videos online foreshadowing his plans, including stating that “if you hear the name Frank James on the news, if something happens to a Frank James that’s sixty-something years old, chances are that’s me.”
Following James’s attack, law enforcement officers searched James’s apartment and storage unit and uncovered a stockpile of weapons, including, among other items: 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached; .223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke cannister.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Ian C. Richardson, Sara K. Winik and Ellen H. Sise are in charge of the prosecution, with assistance from Paralegal Specialist Magdalena St. Surin and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
The Defendant:
FRANK JAMES
Age: 63
Milwaukee, WisconsinE.D.N.Y. Docket No. 22-CR-214 (WFK)
Four Muncie Public Officials, a Former Police Officer, Two Contractors, and a Private Citizen Convicted and Sentenced for more than $3 Million in “Pay to Play” SchemesRead the Press Release
INDIANAPOLIS – Four former City of Muncie public officials, including former Mayor Dennis Tyler, a former police officer, a private citizen, and two contractors have all been convicted and sentenced in the federal court following a years-long investigation and prosecutions of systemic corruption in the government of the City of Muncie. The final sentence in the six related cases was imposed earlier today, and the sentences are as follow
DEFENDANT
OFFENSES
SENTENCE
Dennis Tyler, 78, of Muncie, Former Mayor of Muncie
Theft of Government Funds
1 year and a day imprisonment
3 years’ supervised release
$15,250 in restitution
Craig Nichols, 40, of Muncie,
Former Muncie Building Commissioner.
Owner, Advanced Walls & Ceilings and Capitol Consulting and Property Management
Wire Fraud and Money Laundering
2 years’ imprisonment3 years’ supervised release $217,892 in restitution
Tracy Barton, 52, of Muncie, Former Superintendent of Sewer Maintenance and Engineering
Conspiracy to Commit Wire Fraud
1 year of probation
Debra Nicole Grigsby, 46, of Muncie,
Former District Administrator of Muncie Sanitary District
Conspiracy to Commit Wire Fraud
1 year and a day imprisonment
2 years’ supervised release
$370,556.99 in restitution
Jess Neal, 54, of Muncie, Former Muncie police officer
Conspiracy to Commit Wire Fraud
2 years’ imprisonment
2 years’ supervised release
$55,650 in restitution
Jeff Burke, 55, of Muncie,
Owner, Burke Rentals 1, and
McGalliard Guns & More
Bank Fraud
6 months imprisonment, and 6 months’ home confinement
2 and a half years’ supervised release.
$245,000 in restitution.
Rodney Barber, 53, of Muncie, Owner, Barber Contracting
Conspiracy to Commit Wire Fraud
2 years of probation
$104,250 in restitution
Tony Franklin, 62, of Muncie, Owner, Franklin Building and Design
Conspiracy to Commit Wire Fraud
1 year and 1 day
$279,806.99 in restitution
2 years supervised release
Phil Nichols, former chairman of a political party in Delaware County, was also charged with conspiring with Grigsby, Neal, and Franklin to commit wire fraud. Phil Nichols entered into an agreement to plead guilty, but died prior to the resolution of his case. All charges against him were dismissed, as required by law. As part of their guilty pleas, Grigsby, Neal, and Franklin admitted to conspiring with Phil Nichols as charged.
According to court documents, between 2014 and 2019, the City of Muncie engaged in a series of public works projects that were intended to benefit the City’s residents. They included the levee recertification project, which required Muncie Sanitary district to acquire parcels of property situated near the White River, demolish homes and businesses existing on the parcels, and construct levees or storage basins so that the entire levee system could be recertified. They also included the Walnut Commons project which was an $8.3 million housing development that was intended to house Veterans who were experiencing homelessness and removing blighted properties around Muncie to allow room for redevelopment such as brownfield site located on the east side of Muncie called Kitselman Pure Energy Park.
Public officials in Muncie were required by law on these projects to solicit bids from contractors and engage in a competitive bidding process designed to ensure that the City hired the most qualified contractors to complete the work at the lowest cost. Instead, Dennis Tyler, Craig Nichols, Tracy Barton, and Debra Nicole Grigsby, under the corrupt influence of charged, but now deceased, Phil Nichols, engaged in bid-rigging and kickback schemes in which they agreed to steer work to contractors who would “pay-to-play.” They also exploited Indiana’s Guaranteed Energy Savings Contract law to steer no-bid contacts to the same corrupt contractors
According to admissions by the sentenced defendants in their guilty pleas, Phil Nichols decided which contractors were “greenlighted.” meaning they were part of what some of the co-conspirators called the “Program” which was a bid-rigging scheme in which contracts were steered by public officials to kickback paying contractors.
As a result of the schemes, contractors did not engage in competitive bidding and were allowed to bill the taxpayers for work they didn’t do, or overbill for work that they completed. In total, the public officials awarded $3,230,737 in contracts to participating contractors, and as a result, the City and the Muncie Sanitary District lost approximately $1,568,324. Additionally, potential witnesses against these defendants lived in fear of retaliation because some of the defendants engaged in witness tampering and retaliation. Some defendants also destroyed evidence and altered documents in an unsuccessful attempt to prevent the Federal Bureau of Investigation from exposing their crimes.
Summary of Cases
United States v. Dennis Tyler: Former Mayor Tyler admitted to accepting a $5,000 gratuity in exchange for official acts, namely, steering work to a paying contractor who charged more than an honest competitor. The gratuity arose from a public works project for Walnut Commons, which was an approximately $8.3 million housing development that was intended to house Veterans who were experiencing homelessness. On December 15, 2015, Mr. Tyler accepted $5,000 from Tracy Barton, the head of Muncie Sanitary Maintenance and Engineering, who acted as a middleman between the Mayor and Person A, a local contractor. Person A’s bid for the Walnut Common’s job was not the lowest, most qualified, responsive bid, but Mr. Tyler agreed to steer the contract to him as a favor. He later accepted the $5,000 payment as a thank you. The Walnut Commons contract was for $218,489. Mr. Tyler was convicted of Theft of Government Funds.
United States v. Craig Nichols: Mr. Nichols was the son of Phil Nichols and served as Muncie’s Building Commissioner. Craig Nichols also owned Advanced Walls and Ceilings, a company that contracted with the City of Muncie. Craig Nichols used false documents to steal $81,500 from the city for demolition work that AWC never performed and used additional false documents in an attempt to cover up his crimes. Mr. Nichols also fraudulently concealed his ownership of Capitol Consulting and Property Management, a company that billed the City for asbestos inspection and abatement work that he either never performed, double billed, or performed at inflated prices. Mr. Nichols pled guilty to Wire Fraud and Money Laundering and admitted that he billed Muncie $454,400 in contracts for work he did not perform or obtained through fraud. His crimes resulted in a loss of $270,392 in taxpayer money.
United States v. Tracy Barton: Mr. Barton was the Superintendent of Sewer Maintenance and Engineering at the Muncie Sanitary District. He admitted to accepting bribes and kickbacks in exchange for steering work to a contractor, who was a close friend. He further admitted to participating in a scheme to defraud the Muncie Sanitary District, in which public works projects were steered, at Phil Nichols’ direction, toward paying contractors through public officials who collected bribes and kickbacks. In total, Mr. Barton admitted to participating in a conspiracy in which $2,053,873 in contracts were steered, at Phil Nichols’ direction, toward paying contractors through public officials. The scheme resulted in $2,053,873 in fraudulent contracts and a loss of $1,032,682.
United States v. Debra Nicole Grigsby, Jess Neal, and Tony Franklin: Ms. Grigsby was the District Administrator for Muncie Sanitary District. As the District Administrator for MSD, Ms. Grigsby was responsible for approving the selection of contractors to perform work on MSD Infrastructure Projects. She also signed maintenance contracts on MSD’s behalf. Ms. Grigsby admitted to accepting kickbacks from Jess Neal and Tony Franklin in exchange for steering Muncie Sanitary District work to Tony Franklin. She further admitted to knowing that her subordinate, Tracy Barton, was also steering work toward paying contractors and was accepting kickbacks. Ms. Grigsby was convicted of Conspiracy to Commit Wire Fraud.
Mr. Neal was a Sergeant for the Muncie Police Department and the owner of Red Carpet, Inc. and Express Properties, LLC. Mr. Neal admitted to arranging for Mr. Franklin to pay kickbacks to Phil Nichols and Debra Nicole Grigsby so that Mr. Nichols would greenlight Mr. Franklin. Ms. Grigsby then also agreed to steer work arising out of the Muncie Sanitary District’s infrastructure projects associated with levee recertification to Mr. Franklin. Mr. Neal was convicted of Conspiracy to Commit Wire Fraud.
Mr. Franklin was the owner of Franklin Building and Design, LLC. Mr. Franklin admitted to paying Phil Nichols and Debra Nicole Grigsby kickbacks in exchange for receiving $1,170,667 in fraudulently steered contracts. Mr. Franklin received $1,170,667 in fraudulently steered contracts, and Muncie Sanitary District overpaid Mr. Franklin more than $600,000. As a result, MSD overpaid Franklin more than $600,000. He was convicted of Conspiracy to Commit Wire Fraud.
United States v. Jeff Burke: Mr. Burke was the owner of Burke Rentals 1 and McGalliard Guns & More. He admitted to receiving an inside tip from former police officer Jess Neal that the Muncie Sanitary District had to purchase a property known as the Flea Market in order to recertify the levee. Acting on that insider tip, Mr. Burke defrauded a bank to receive a quick loan, quickly purchased the Flea Market property for $150,000 without disclosing it’s true value, and then sold it 41 days later to the City for an inflated cost of $395,000. Mr. Burke did so knowing that the City had no choice but to pay the exorbitant cost. Mr. Burke was convicted of Bank Fraud and making False Statements to FBI agents. His scheme resulted in a loss of $245,000 in taxpayer funds.
United States v. Rodney Barber: Mr. Barber was the owner of Barber Contracting, Inc. He admitted to paying kickbacks to Phil Nichols and Tracy Barton in exchange for receiving nearly $300,000 in public works projects associated with the Muncie Sanitary District recertification of the levee. He was convicted of Conspiracy to Commit Wire Fraud, Wire Fraud, and making False Statements. In total, Mr. Barber received nearly $300,000 in contracts, resulting in a loss of $104,250 to Muncie Sanitary District.
United States v. Phil Nichols: Prior to his death, Mr. Nichols admitted in his plea agreement to Conspiracy to Commit Wire Fraud. Mr. Nichols was a former chairman of a political party in Delaware County and was regularly involved in raising money and advising political candidates running for local office in Delaware County. According to his co-conspirators and other paying contractors, though he had no official role in Muncie City Government or Muncie Sanitary District, Mr. Nichols maintained a powerful political control over Muncie officials, including Mrs. Grigsby and Mr. Barton. During the conspiracy period, contractors who wished to do work for Muncie Sanitary District had to be “greenlighted” by Mr. Nichols. Only contractors who had agreed to pay bribes or kickbacks to public officials, or make contributions to certain political campaigns or parties were greenlighted. As set forth in their plea agreements, Tracy Barton and Debra Nicole Grigsby admitted that Mr. Nichols directed them to steer public works projects arising out of the Muncie Sanitary District infrastructure projects associated with levee recertification to contractors who were willing to pay bribes and kickbacks.
The entire scheme involving Ms. Grigsby, Mr. Barber, Mr. Franklin, Mr. Neal, and Phil Nichols resulted in $2,053,873 in fraudulent contracts and a total loss of $1,032,682.
“The citizens of Muncie placed their trust in a small group of government officials—many of whom were on a first-name basis with their constituents. This systemic public corruption not only resulted in more than $1.5 million of taxpayer money lost, but also caused immeasurable distrust in local government,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “These prosecutions and sentences demonstrate that ‘pay to play’ schemes will not be accepted as the way governments do business. The U.S. Attorney’s Office and our partners at the FBI will investigate and prosecute these violations of public trust and public funds—and ensure that the criminals responsible are held accountable.”
“Ultimately, greed caught up with these defendants and they were held accountable for it. The citizens of Muncie deserved better and hopefully the dedicated work of our agents to uncover this systemic corruption will help restore public trust,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Cases like this are the reason public corruption is a top criminal investigative priority for the FBI, and we encourage the public to report potential abuses of public office.”
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted these cases.
Former Wayne County Employee Pleads Guilty to Stealing over $1.7 Million in County FundsRead the Press Release
DETROIT – A former Wayne County Roads Division employee pleaded guilty today to conspiring to steal over $1.7 million in county funds, United States Attorney Dawn N. Ison and Wayne County Prosecutor Kym Worthy announced.
Ison and Worthy were joined in the announcement by James A. Tarasca, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Wayne County Sheriff Raphael Washington.
Kevin Gunn, 64, of West Bloomfield, pleaded guilty to defrauding Wayne County out of nearly $2 million in taxpayer funds. Gunn, and fellow Wayne County employee John L. Gibson, 54, of Detroit engaged in a scheme to use taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in southeast Michigan which they sold for personal profit. A federal grand jury indicted Gibson for these crimes in October 2022.
In March of 2021, the Wayne County Sheriff’s Department began an investigation into the misuse of taxpayer dollars. The Sheriff’s Department then solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation.
As part of the scheme to defraud, between January 2019, and August 2021, Gunn and Gibson solicited approved Wayne County vendors to purchase generators and other power equipment from local retailers on behalf of Wayne County. The vendors would then submit invoices for these items to Wayne County. In order to conceal the scheme to defraud, Gunn instructed the vendors to falsify the invoices they submitted to the Roads Division, and list items the vendors were authorized to sell to the county under their contracts, rather than the generators and power equipment they were unlawfully acquiring at Gunn’s and Gibson’s request. Roads Division employees would then approve and pay each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson took possession of the equipment, paid Gunn for the items, and resold the generators and other items for personal profit.
A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors purchased 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment purchased as part of the scheme was approximately $1.7 million in taxpayer funds. Gibson and Gunn were arrested in May by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies.
Pursuant to the terms of his plea agreement, Gunn faces a sentencing guideline range of 57-71 months in prison. Sentencing has been set for May 31, 2023.
Conspiracy to commit federal program theft carries a maximum sentence of up to 5 years’ imprisonment and a fine of up to $250,000. Federal program theft carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.
United States Attorney Dawn Ison said, “Today’s guilty plea is the culmination of months of collaboration between our federal, state, and local law enforcement officers who worked together to seek justice for the citizens of the Eastern District of Michigan. We thank Wayne County Prosecutor Kym Worthy and her uncompromising efforts to eliminate corrupt public officials who abuse their power and steal from the hardworking taxpayers of Wayne County.”
“This is the one of the worst types of betrayal of the public trust. Wayne County remains committed to sussing out corruption where we find it - no matter who is involved. We continue this work today. I want to thank CEO Evans for his continued cooperation, my detectives, and especially the United States Attorney’s office for their successful prosecution of the defendant,” said Wayne County Prosecutor Kym L. Worthy.
"The actions of this individual are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line his own pockets while holding positions of public trust make these crimes all the more deplorable.”
“Public officials are entrusted to use taxpayer money for its intended purpose, not for their personal benefit. Today, Mr. Gunn is being held accountable for violating that trust,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “I would like to thank the Michigan Attorney General's Office and the Wayne County Prosecutor, Wayne County Executive, and Wayne County Sheriff’s Office for their partnership on this investigation.”
The investigation of this case was conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, the Michigan Attorney General’s Office, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Former GE Power Engineer Sentenced for Conspiracy to Commit Economic EspionageRead the Press Release
ALBANY, NEW YORK – Xiaoqing Zheng, age 59, of Niskayuna, New York, was sentenced today to 24 months in prison for conspiring to steal General Electric trade secrets knowing or intending to benefit the People’s Republic of China.
The announcement was made by Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; United States Attorney Carla B. Freedman; Assistant Director Alan E. Kohler Jr. of the Federal Bureau of Investigation’s Counterintelligence Division; and Janeen DiGuiseppi, Special Agent in Charge of the FBI Albany Field Office.
Assistant Attorney General Matthew G. Olsen stated: “This is a case of textbook economic espionage. Zheng exploited his position of trust, betrayed his employer, and conspired with the government of China to steal innovative American technology. The Justice Department will hold accountable those who threaten our national security by conniving to steal valuable trade secrets on behalf of a foreign power.”
United States Attorney Carla B. Freedman stated: “Zheng sought to enrich himself, and benefit the People’s Republic of China, by stealing trade secrets developed and owned by his longtime employer, General Electric. We will continue to work with the FBI to hold criminals accountable when they seek to illegally exploit American ingenuity.”
Zheng was convicted of conspiracy to commit economic espionage, following a 4-week jury trial that ended on March 31, 2022. The jury either acquitted Zheng, or could not reach a unanimous verdict, as to 11 other charged counts.
Zheng was employed at GE Power in Schenectady, New York, as an engineer specializing in turbine sealing technology. He worked at GE from 2008 until the summer of 2018. The trial evidence demonstrated that Zheng and others in China conspired to steal GE’s trade secrets surrounding GE’s ground-based and aviation-based turbine technologies, knowing or intending to benefit the People’s Republic of China and one or more foreign instrumentalities, including China-based companies and universities that research, develop, and manufacture parts for turbines.
FBI Counterintelligence Assistant Director Alan E. Kohler, Jr. stated: “American ingenuity is an integral part of the United States’ economic security – it is what has guided the U.S. to become the global leader, even as China seeks to topple our status. Xiaoqing Zheng was a Thousand Talents Program member and willingly stole proprietary technology and sent it back to the PRC. Let today’s sentencing serve as a reminder that the FBI remains dedicated in our pursuit of those who collaborate with the People’s Republic of China (PRC) and steal American trade secrets.”
FBI-Albany Special Agent in Charge Janeen DiGuiseppi stated: “Dr. Zheng used a complicated process to deliberately steal trade secrets from General Electric to benefit the People’s Republic of China. Today’s prison sentence speaks to the severity of his actions and the danger economic espionage poses to the United States. Put simply, the FBI will not allow American research and development to be stolen and we will continue to work with our partners to ensure American technology and American jobs are protected.”
United States District Judge Mae A. D’Agostino also sentenced Zheng to pay a $7,500 fine and serve 1 year of post-imprisonment supervised release.
This case was investigated by the FBI, with assistance from the Buffalo Field Office of Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Rick Belliss, former Assistant U.S. Attorney Emily Powers, and Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Controls Section.
Former GE Power Engineer Sentenced for Conspiracy to Commit Economic EspionageRead the Press Release
A New York man was sentenced today to 24 months in prison for conspiring to steal General Electric (GE) trade secrets, knowing or intending to benefit the People’s Republic of China (PRC).
Xiaoqing Zheng, 59, of Niskayuna, New York, was convicted of conspiracy to commit economic espionage, following a four-week jury trial that ended on March 31, 2022. According to court documents, Zheng was employed at GE Power in Schenectady, New York, as an engineer specializing in turbine sealing technology. He worked at GE from 2008 until the summer of 2018. The trial evidence demonstrated that Zheng and others in China conspired to steal GE’s trade secrets surrounding GE’s ground-based and aviation-based turbine technologies, knowing or intending to benefit the PRC and one or more foreign instrumentalities, including China-based companies and universities that research, develop, and manufacture parts for turbines.
“This is a case of textbook economic espionage. Zheng exploited his position of trust, betrayed his employer and conspired with the government of China to steal innovative American technology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will hold accountable those who threaten our national security by conniving to steal valuable trade secrets on behalf of a foreign power.”
“Zheng sought to enrich himself, and benefit the People’s Republic of China, by stealing trade secrets developed and owned by his longtime employer, General Electric," said U.S. Attorney Carla B. Freedman for the Northern District of New York. "We will continue to work with the FBI to hold criminals accountable when they seek to illegally exploit American ingenuity.”
“American ingenuity is an integral part of the United States economic security – it is what has guided the U.S. to become the global leader, even as China seeks to topple our status,” said Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division. “Xiaoqing Zheng was a Thousand Talents Program member and willingly stole proprietary technology and sent it back to the PRC. Let today’s sentencing serve as a reminder that the FBI remains dedicated in our pursuit of those who collaborate with the People’s Republic of China (PRC) and steal American trade secrets.”
U.S. District Judge Mae A. D’Agostino also sentenced Zheng to pay a $7,500 fine and serve one year of post-imprisonment supervised release.
This case was investigated by the FBI, with assistance from the Buffalo Field Office of Homeland Security Investigations (HSI).
The case was prosecuted by Assistant U.S. Attorney Rick Belliss and former Assistant U.S. Attorney Emily Powers for the Northern District of New York, and Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Control Section.
Former Children's Museum Director Sentenced to 66 Months in Prison for Distributing Child PornographyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT ECKERT, 56, of West Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by five years of supervised release, for distributing child pornography.
According to court documents and statements made in court, Eckert used multiple internet platforms, including MeWe and Kik, to solicit, receive and distribute images of child sexual abuse and to communicate with others about the distribution of child pornography. He accessed the online platforms on his phone, at his residence, and at the Lutz Children’s Museum in Manchester where he was employed as its executive director.
On June 12, 2020, investigators seized Eckert’s cellphone. Analysis of the cellphone revealed 1,837 image files and 73 videos depicting child sex abuse, including the abuse of prepubescent minors.
Eckert was arrested on April 8, 2021. On September 1, 2022, he pleaded guilty to distribution of child pornography.
Eckert, who is released on a $100,000 bond, is required to report to prison on February 15.
This matter was investigated by Homeland Security Investigations (HSI), with the assistance of the Connecticut State Police and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Daniel Cummings.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Chief Financial Officer of Two SPACs Pleads Guilty to Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that COOPER MORGENTHAU, the former chief financial officer of two special purpose acquisition companies (“SPAC-1” and “SPAC-2”), pled guilty to one count of wire fraud in connection with a scheme to embezzle more than $5 million from the two companies. The defendant pled guilty before U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Damian Williams said: “Cooper Morgenthau, the former CFO of two SPACs, has admitted that he breached the trust that he owed to his public and private investors, stealing millions of dollars from them to trade meme stocks and cryptocurrencies. This Office remains committed to rooting out fraud in the SPAC market and to protecting Main Street investors from abuses on Wall Street.”
According to the allegations in the Information and statements made in public court proceedings:
Between in or about June 2021 and in or about August 2022, MORGENTHAU, who was the CFO of SPAC-1 and SPAC-2, embezzled more than $5 million from the two companies. SPAC-1 had recently had its initial public offering, while SPAC-2 was raising money from private investors in preparation for its anticipated IPO. MORGENTHAU used the embezzled funds to trade equities and options of so-called “meme stocks” and cryptocurrencies, losing almost all of the money that he stole. To conceal and facilitate his embezzlement from SPAC-1, MORGENTHAU fabricated bank statements, which he provided to SPAC-1’s accountant and auditor; made and caused to be made material misstatements in SPAC-1’s public filings with the Securities and Exchange Commission (“SEC”); and transferred some of SPAC-2’s funds to SPAC-1 to cover up the funds he had misappropriated from SPAC-1.
* * *
MORGENTHAU, 35, of Fernandina Beach, Florida, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. As part of his guilty plea, MORGENTHAU agreed to forfeit $5,111,335 and to pay restitution of $5,111,335.
The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. MORGENTHAU is scheduled to be sentenced by Judge Engelmayer on April 25, 2023.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams further thanked the SEC for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Anden Chow are in charge of the prosecution.
Florida Man with Ties to Mexican Drug Cartel Sentenced to Prison for Possession with Intent to Distribute Eight Kilos of MethamphetamineRead the Press Release
ALBANY, Ga. – A Haines City, Florida, resident with a lengthy criminal history and connections to a Mexican drug cartel was sentenced to prison for possession with intent to distribute approximately eight kilograms of methamphetamine resulting from an I-75 traffic stop in South Georgia.
James E. Freitas, 48, was sentenced to serve 360 months in prison to be followed by five years of supervised release by U.S. District Judge Louis Sands on Dec. 29, 2022, after he previously pleaded guilty to possession with intent to distribute methamphetamine. Co-defendant, Miguel L. Mora, 44, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 12, 2022, and is scheduled to be sentenced on Feb. 2. There is no parole in the federal system.
“Individuals tied to criminal organizations trafficking large quantities of the most lethal controlled substances into our communities will face steep federal consequences for crimes which are contributing to the addiction and death of many Americans,” said U.S. Attorney Peter D. Leary. “Local, state and federal law enforcement teams are working to dismantle these cartels and hold the people associated with them responsible.”
“The sentencing of this reoffender is the result of the collaborative efforts between DEA and its law enforcement partners who work tirelessly to eliminate the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This defendant will now face serious time in prison.”
According to court documents, a Lowndes County Sheriff’s Office deputy attempted to conduct a routine traffic stop for a driving violation as Freitas was traveling on I-75 on July 11, 2019. Freitas was unable to provide identification and gave conflicting information. As Freitas was standing outside the vehicle talking with the deputy, Mora climbed into the front seat and drove away in the car. Mora drove the vehicle into a field and then fled on foot into the woods carrying a large bag. Mora was quickly apprehended; the bag that he carried from the car was searched and found to contain 8,099 grams of 97% pure methamphetamine with an estimated street value of $748,000. On the floorboard of the car, officers found a loaded .40 caliber semi-automatic pistol with an obliterated serial number possessed by Freitas.
A search warrant subsequently executed on Freitas’ cell phone found photos of the gun, plus text and WhatsApp instant messages detailing both defendants’ travel to and from Nashville, Tennessee, to purchase and transport methamphetamine to a third party in Florida. The WhatsApp messages were between Freitas, a member of a Mexican drug cartel, and higher-ranking leaders within the organization concerning the distribution of methamphetamine.
Freitas has a lengthy criminal history with prior felony drug convictions for possession and trafficking of controlled substances in Florida. Mora has a lengthy criminal history, with convictions in Arkansas and Florida, including a prior felony conviction for trafficking amphetamine.
DEA and Lowndes County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Mike Morrison prosecuted this case.
Council Bluffs Man Sentenced to 121 Months in Federal Prison for Child Pornography OffenseRead the Press Release
COUNCIL BLUFFS, IA – James Matthew Hargens, age 37, of Council Bluffs, was sentenced on December 15, 2022, to 121 months in prison following his plea of guilty to Receipt of Child Pornography. Hargens will be required to register as a sex offender and serve five years of supervised release following his release from prison. Hargens was also ordered to pay restitution.
In November 2021 a social media application sent a cybertip to the National Center for Missing and Exploited Children regarding an account that uploaded several images and videos of child pornography. The cybertip was referred to Iowa Internet Crimes Against Children and the Council Bluffs Police Department initiated an investigation. The investigation led to a search warrant at Hargens residence. A forensic analysis identified that Hargens received, possessed, and downloaded numerous images and videos of child pornography.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The investigation was conducted by the Council Bluffs Police Department, the United States Secret Service National Computer Forensics Institute who provided training and equipment and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Sentenced for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon to more than seven years in prison for illegally possessing firearms, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Madeline H. Haikala sentenced Audrey Jerome Pruitt, 39, of Birmingham, to 90 months in prison followed by three years of supervised release. Pruitt pleaded guilty to two counts of being a felon in possession of a firearm in September 2022.
According to court documents, in October and November 2020, Pruitt illegally possessed an American Tactical, Omni Hybrid, .223/.556 caliber pistol, and a Springfield .40 caliber pistol. Pruitt is prohibited from possessing a firearm because of prior felony convictions. In April 2008, Pruitt was convicted in the Circuit Court of Jefferson County for Robbery, First Degree and Receiving Stolen Property, and in March 2019, he was convicted of Domestic Violence, Second Degree.
ATF investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorneys Darius C. Greene and Michael Royster prosecuted the case.
Colorado Man Sentenced to 19 Years for Heroin Trafficking, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – An Aurora, Colorado, man was sentenced in federal court today for heroin trafficking and illegally possessing a firearm while traveling through Kansas City, Mo., on a bus bound for Virginia.
Izeall T. Collins, 44, was sentenced by U.S. District Judge Greg Kays to 19 years in federal prison without parole.
Collins was found guilty at trial on June 15, 2022, of one count of possessing a kilogram or more of heroin with the intent to distribute, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
According to evidence introduced during the trial, law enforcement officers contacted Collins at a Kansas City, Mo., bus station on March 4, 2019, during a layover while Collins was traveling from Denver, Colo., to Norfolk, Va. Collins had been acting suspiciously, and admitted to officers that he had some marijuana in his possession. Officers searched Collins and found a large, hard, brick-shaped object in Collins’s pants.
Officers found 1.05 kilograms of heroin, which was packaged in a rectangular bag wrapped in silver duct tape, concealed in the waistband of his underwear. Officers also found a round of 9mm ammunition in his pocket.
Officers retrieved Collins’s backpack and soft-sided cooler from the bus and obtained a search warrant for them. Investigators later found a loaded Keltec 9mm semi-automatic handgun in the soft-sided cooler.
This case was prosecuted by Assistant U.S. Attorney Robert Smith and Special Assistant U.S. Attorney Stephanie Bradshaw. It was investigated by the MOWIN (Missouri Western Interdiction and Narcotics) Task Force and the Drug Enforcement Administration.
Canton Man Sentenced to over 21 Years in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Canton man was sentenced to 260 months in federal prison for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Randy Moncreaise, 42, was sentenced on December 21, 2022, in U.S. District Court in Jackson.
According to court documents, Moncreaise conspired with others to distribute methamphetamine in and around the Neshoba County, Mississippi area. During the course of the conspiracy, it was determined that Moncreaise was responsible for conspiring to distribute nearly 4 pounds of methamphetamine.
The case is the result of an extensive investigation, dubbed “Orlando Land,” which began as an operation targeting illegal drug trafficking in the Neshoba and Kemper County, Mississippi areas. “Orlando Land” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, the U.S. Department of Homeland Security, the Mississippi Bureau of Narcotics, the Mississippi Attorney General’s Office, Kemper County Sheriff’s Office, Neshoba County Sheriff’s Office, Philadelphia Police Department and Mississippi Department of Wildlife, Fisheries and Parks.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
Butte man sentenced to seven years in prison for drug trafficking, firearms crimesRead the Press Release
MISSOULA —A Butte man who admitted to trafficking methamphetamine and fentanyl pills and to firearms crimes was sentenced today to seven years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Charles Warren Campbell, 52, pleaded guilty in August 2022 to conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, prohibited person in possession of a firearm, possession of a firearm with an obliterated serial number and possession of an unregistered firearm.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in August 2021, the Butte Silver-Bow Police Department officers assisted in evicting a man from a Butte residence and when they arrived, another man fled before officers could identify the person. Officers located a firearm, five ounces of meth, a digital scale, heroin and two cell phones in a guest room. The individual being evicted advised law enforcement that Campbell had moved in about a month prior, was the man who fled the residence and that the drugs and gun were Campbell’s. A few weeks later, officers located Campbell, who had an active felony arrest warrant, driving a vehicle that had been reported stolen. In a search of the car, officers found three additional firearms, including a modified shotgun with a pistol grip and an obliterated serial number, a .25-caliber handgun and a 9mm pistol. Officers also located ammunition, meth, heroin and a fentanyl pill. Campbell told officers he was a ranking member of the Aryan Brotherhood in Arizona and had been receiving and distributing large quantities of meth and heroin over the past month. Campbell had a prior felony conviction and was prohibited from possessing firearms.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Butte Silver-Bow Law Enforcement and Montana Probation and Parole.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Albuquerque man pleads guilty to cyberstalking, child pornography offensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Zachary Dosch pleaded guilty on Dec. 20, 2022, to cyberstalking, receipt of child pornography, and distribution of child pornography. Dosch, 23, of Albuquerque, will remain in custody pending sentencing, which has not been scheduled.
According to court records, on Nov. 30, 2019, a Snapchat user reported to the National Center for Missing and Exploited Children (NCMEC) that the user had received threats through Snapchat, and that a friend had received possible child sexual abuse material (CSAM). Both the threat and the CSAM were sent from an account with the same username as a Kik profile used by Dosch. Additionally, from Oct. 29, 2019, through May 12, 2021, NCMEC received numerous Cybertips regarding CSAM related to a Discord username associated with Dosch.
In his plea agreement, Dosch admitted that beginning at least in October 2019 and continuing until his arrest on June 17, 2021, he targeted minors online for sexual extortion, and, using various social media platforms, received, uploaded and shared CSAM. He also acknowledged extorting sexually explicit material from minors and causing them significant emotional distress.
By the terms of the plea agreement, Dosch faces up to 50 years in prison and will be required to register as a sex offender.
The FBI Albuquerque Field Office investigated this case with assistance from the Bernalillo County Sheriff’s Office and the Regional Computer Forensics Laboratory as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
For more information on sextortion and how to get help, visit the FBI website.
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Saturday 31 December 2022
Maryland Man Sentenced to Prison for Transporting over $300,000 of Stolen MoniesRead the Press Release
BECKLEY, W.Va. – Dhanraj Singh, 62, of Bowie, Maryland, was sentenced to two years and three months in prison, to be followed by three years of supervised release, for interstate transportation of stolen property. Singh also paid $382,449 in ordered restitution.
According to court documents and statements made in court, from 2017 until July 2020, Singh was the maintenance director at a resort in the Southern District of West Virginia. Singh admitted to embezzling $382,449 from the resort by submitting fake invoices that either requested reimbursement when no maintenance work occurred or inflated the cost of maintenance work performed. Singh further admitted to stealing approximately $2,400 to $,2500 from the resort’s petty cash each week. Singh sometimes directed resort employees to withdraw the petty cash on his behalf and deliver it to him. Singh admitted that he routinely transported money he stole from the resort from West Virginia to Maryland, where he would deposit it in his bank accounts.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Raleigh County Sheriff’s Office.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Kathleen E. Robeson prosecuted the case. Assistant United States Attorney Jessica Nathan of the U.S. Attorney Office’s Financial Litigation Unit secured restitution in the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-240.
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Friday 30 December 2022
U.S. Attorney’s Office Collects Nearly $7.7 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
KANSAS CITY, Mo. – U.S. Attorney Teresa Moore announced today that the Western District of Missouri collected $7,691,991 in criminal and civil actions in Fiscal Year 2022. Of this amount, $5,422,014 was collected in criminal actions and $2,269,977 was collected in civil actions.
Additionally, the Western District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $5,580,483 in cases pursued jointly by these offices. Of this amount, $45,732 was collected in criminal actions and $5,534,751 was collected in civil actions.
In total, the Western District of Missouri and partner agencies collected a combined total of $13,272,474 in criminal and civil actions and forfeitures in fiscal year 2022.
“The attorneys and support staff in our district’s Monetary Penalties Unit worked diligently to collect millions of dollars in restitution for victims of crime, and to seize the assets of those who sought to profit from their illegal activities,” said U.S. Attorney Teresa Moore. “In our Civil Division, attorneys and staff successfully recovered considerable funds owed to the government as a result of numerous civil judgments.
“Our collections and asset recovery programs, in both the civil and criminal divisions, hold defendants financially accountable for their conduct,” Moore added. “We are committed to ensure that these debts, both to the government and to the victims of crime, are paid in full.”
For example, the Monetary Penalties Unit recovered over $550,000 in criminal penalties from Randall Halley, a Nixa physician who pleaded guilty to one count of making a false statement to Medicare to obtain insurance coverage for a fentanyl prescription and one count of conspiracy to use his DEA registration number for his employees to issue controlled substances to patients in his absence. Halley took bribes from a drug manufacturer in exchange for prescribing its fentanyl drug to his patients so often that he ranked highest in the state in net sales of the product. Numerous patients received dangerous fentanyl medication they did not need, nor did they qualify for under Medicare, and Medicare was defrauded out of hundreds of thousands of dollars.
The Monetary Penalties Unit also collected over $880,000 in a civil forfeiture action as part of a central Missouri case involving real and personal property that represented criminal proceeds from drug trafficking.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Western District of Missouri, working with partner agencies and divisions, collected $3,233,871 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects $41,562,706.60 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
(DENVER) - U.S. Attorney Cole Finegan announced today that the District of Colorado collected $41,562,706.60 in criminal and civil actions in Fiscal Year 2022. Of this amount, $4,245,736.91 was collected in criminal actions and $37,316,969.69 was collected in civil actions.
The District of Colorado also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,855,053.04 in cases pursued jointly by these offices. Of this amount, $741,651.73 was collected in criminal actions and $1,113,401.31 was collected in civil actions.
The district’s Asset Recovery Division, led by Chief Tonya Andrews, working with partner agencies, also forfeited $23,307,938.73. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. In January and August, the District of Colorado recovered over $13 million in COVID-fraud related funds in the Folk and Citi Bank cases, involving individuals who fraudulently applied for and received COVID-relief funds from the Small Business Administration.
“As a result of exceptional work by the Asset Recovery Division and our Civil Division, in coordination with our law enforcement partners, more than $41 million was recovered this year,” said U.S. Attorney Cole Finegan. “These collected funds will assist victims in their recovery process and aid law enforcement as they continue to hold criminals accountable for their crimes.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Raleigh County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Chadd E. Worley, 44, of Beckley, was sentenced today to three years and four months in prison, to be followed by three years of supervised release, for possession with intent to distribute heroin.
According to court documents and statements made in court, on March 8, 2020, Worley was a passenger in a vehicle pulled over by law enforcement in Beckley. Worley admitted to possessing approximately 23 grams of heroin found in the vehicle. Worley further admitted that he intended to distribute the heroin in and around Raleigh County.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit, the Raleigh County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA) in Michigan.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-112.
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Phoenix Man Sentenced for Importing Counterfeit N95 Masks from AsiaRead the Press Release
PHOENIX, Ariz. – Mark Forrest Cohn, 68, of Chandler, Arizona, was sentenced on December 21, 2022, by United States District Judge David G. Campbell to one year of probation and ordered to pay restitution, to include $8,028 in unpaid taxes and tariffs to U.S. Customs and Border Protection (CBP). Cohn pleaded guilty to one felony count of Entry of Goods by Means of False Statements.
On October 29, 2020, Cohn fraudulently imported counterfeit 3M manufactured N95 masks into the United States from China using shipping labels and papers that falsely represented the merchandise. The false representations disguised the merchandise as goods not subject to duties and inspection by the United States Food and Drug Administration. Once the shipment arrived at a Phoenix mail facility, a box imported by Custom Glass and Synthetic was targeted for inspection as part of an enforcement operation conducted by Homeland Security Investigations (HSI) and CBP’s Office of Field Operations officers. When the box was opened, HSI and CBP officers found masks branded as 3M with pixelated photos on the packaging. Working together, HSI and CBP officers scanned and transmitted images of the shipment of purported N95 masks to 3M. On November 3, 2020, 3M advised the N95 masks were in fact counterfeit. Counterfeits create risks to the user because the seals can be ill-fitting and the masks less effective.
On November 23, 2020, Department of Veterans Affairs Office of Inspector General agents and a 3M representative inspected the masks located at a Veterans Affairs Medical Center (VAMC) warehouse in Minneapolis, Minnesota. The counterfeit masks were identified and seized before they made their way to front line workers.
The N95 mask is designed for health care workers as the fit and seal minimize the transference of COVID. Cohn sold over 20,000 masks to a third-party vendor that supplied equipment to the VAMC warehouse in Minnesota. The third-party vendor did not know that the masks were counterfeit.
Homeland Security Investigations conducted the investigation in this case, with assistance from CBP’s Office of Field Operations and the Department of Veterans Affairs Office of Inspector General. Assistant U.S. Attorneys Kristen Brook and Peter Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-01308-PHX-DGC
RELEASE NUMBER: 2022-232_Cohn# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Mother, Associate of Federal Fugitive Charged with Aiding Escape from Cass County JailRead the Press Release
KANSAS CITY, Mo. – The mother and an associate of former fugitive Trevor Sparks of Kansas City, Mo., who was apprehended today, have been charged in federal court with assisting in his escape from the Cass County Jail earlier this month.
Dawn Branstietter, 54, of Blue Springs, Mo., the mother of Sparks, and Nicholas Parris, 38, of Kansas City, Mo., were charged with aiding or assisting an escape from confinement in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Sergio Perez Martinez, 43, of Panorama City, Calif., escaped from the jail with Sparks and remains a fugitive.
According to an affidavit filed in support of today’s federal criminal complaint, Sparks made several telephone calls to his mother from the jail in which they discussed his upcoming escape attempt. He told her to make sure there was gas in the car because “You are probably going to pick me up real soon. Real, real, real soon.” Sparks told her to “just be ready.”
Sparks made several calls to Branstietter but she was not answering the phone, so he contacted Steven Lydell Williams, Sr., 64, of Kansas City, Mo. Sparks asked Williams to get in touch with his mother, the affidavit says, but then recruited Williams to pick him up after the escape due to Branstietter not answering her phone for several days. Williams allegedly picked up Sparks at a local Casey’s store on Dec. 5, 2022, after he and Perez-Martinez escaped from the jail.
Williams was charged in a separate criminal complaint on Dec. 7, 2022, with aiding or assisting in the escape.
On Dec. 9, 2022, Branstietter was interviewed at her residence. Branstietter indicated she would not give up her son and would go to prison so he could be free. Branstietter’s husband was also at the residence and was not cooperative with law enforcement. No other individuals were found at the residence.
Investigators searched Branstietter’s Facebook account and found messages between her and Parris, who was the ex-boyfriend of Sparks’s sister. They discussed going to Texas, where Sparks’s sister lives. While there was minimal contact between Branstietter and Parris prior to the escape of Sparks and Perez Martinez, the affidavit says, within days of the escape, communication between these two accounts grew exponentially in frequency. The messages were cryptic, vague, or directed to voice or video communication.
At approximately 10:16 a.m. today, Sparks was seen leaving the back yard of a Blue Springs residence that Branstietter had been visiting frequently. Sparks got into a vehicle with Branstietter and drove to Parris’s residence, where Sparks, Branstietter, and Parris were arrested by Kansas City police officers.
Sparks was convicted on Nov. 7, 2022, by a federal trial jury, of leading a criminal conspiracy linked to two murders and multiple violent assaults, and which distributed at least a kilogram of methamphetamine every day for nearly a year in the Kansas City, Springfield, St. Joseph, and St. Louis, Mo., areas, as well as illegally possessing firearms. He was found guilty of one count of conspiracy to distribute methamphetamine, one count of participating in a money-laundering conspiracy, one count of possessing firearms in relation to a drug-trafficking crime, and one count of being a felon in possession of firearms and ammunition. Sparks was awaiting sentencing when he escaped.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Robert M. Smith. It was investigated by the FBI, the Kansas City, Mo., Police Department, the U.S. Marshals Service, the Cass County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI’s Violent Crimes Task Force, and the Kansas City Criminal Enterprise Task Force.
Missouri Man Sentenced for Bringing Firearms to 2020 Kenosha UnrestRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 29, 2022, United States District Judge J.P. Stadtmueller sentenced Michael Karmo (42), of Hartsville, Missouri, to 64 months in federal prison for unlawfully possessing firearms despite a prior felony conviction. Karmo, who had entered a guilty plea to the offense earlier this year, also will spend two years on supervised release following his prison term.
Court filings reflect the following. During the Summer of 2020, Karmo became intrigued by unrest taking place in various cities. On July 1, 2020, he texted a friend, “[A]ll I care about is f**king up antifas and black lives matters mother f**kers these days.” He indicated that he had been “driving back and forth across America going to where they be rioting the hardest.” On August 31, 2020, Karmo and a friend decided to drive from Missouri to the scene of unrest in Kenosha, Wisconsin. Before leaving, Karmo took a photo of himself and his friend holding long guns and sent the photo to a woman in Iowa. Karmo also sent the woman a photo of a firearm with a large drum that he called the “game changer.” After Karmo and his friend stopped to see the woman in Iowa, she became concerned and called the police. FBI agents later arrested Karmo and his friend in Pleasant Prairie, Wisconsin. At the time, Karmo and his friend were in possession of an AR-15 assault rifle, a 12-gauge shotgun, two 9mm handguns, 67 rounds of 9mm ammunition, 131 shotgun shells, what appeared to be a homemade silencer, multiple high-capacity magazines, a firearm muzzle attachment, a drone, body armor, tactical gear, a dagger, a confederate flag, and other items.
Court filings indicate that Karmo’s phone contained videos in which Karmo: (1) detailed the firearms he had brought to Kenosha; (2) talked about being on the streets “when the thugs come out”; (3) stated that he would be ready to act if the police and National Guard were not “handling business”; (4) referred to protestors as “a bunch of victims”; and (5) indicated a desire to “lay out” a protestor chanting “Justice for Jacob Blake.”
This case was investigated by the FBI, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Kenosha Police Department, the Village of Pleasant Prairie Police Department, the Kenosha County Sheriff’s Office, the Kenosha County District Attorney’s Office, and the Waverly (Iowa) Police Department. It was prosecuted by Assistant United States Attorneys Richard G. Frohling and Margaret B. Honrath.
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For further information contact: Public Information Officer Kenneth Gales
(414) 297-1700
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Man Charged After Leaving a Threatening Voicemail and Possessing a Loaded Firearm, Zip Ties at a Tulsa VA Outpatient ClinicRead the Press Release
A Tulsa man has been charged in federal court for leaving a voicemail threatening to “murder people” at the Ernest Childers Outpatient Clinic in Tulsa then showing up to the clinic the same day with a loaded firearm, announced U.S. Attorney Clint Johnson. The facility serves veterans and is run by the Department of Veterans Affairs.
Zachariah Kade McGuire, 31, was charged by Criminal Complaint with possession of a firearm in a federal facility. McGuire made an initial appearance Thursday in federal court and is scheduled for preliminary and detention hearings on Jan. 5, 2023, at 2 pm.
According to court documents, on Nov. 14, 2022, the defendant’s mother called to schedule an appointment for him at the clinic, which was set for Dec. 13, 2022.
Shortly after, McGuire called back and allegedly left the threatening voicemail message, which was reported to the Veterans Affairs Police.
McGuire stated, in part, “You will make me an appointment and prescribe me my meds, or I will murder you. You have 30 minutes to do so, or I will be coming up there and start to murder people.” He also referenced a doctor he had a grievance with.
At approximately 12:30 pm the same day, McGuire showed up at the clinic. Soon after, officers made contact with McGuire and asked if he had a weapon. He responded yes, and officers retrieved a.357 magnum revolver from McGuire’s jacket pocket. The firearm was loaded with six rounds of ammunition. Officers also recovered seven plastic zip ties from McGuire.
During a later interview with special agents from the Veterans Affairs Office of Inspector General, McGuire claimed that he didn’t remember making the call but admitted that he did bring the firearm to the outpatient clinic. He explained that he looked for his primary care provider, but didn’t see him, then was taken into custody by officers.
The Department of Veterans Affairs Office of Inspector General, Department of Veterans Affairs Police, Tulsa Police Department, and FBI are the investigative agencies. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma.
This matter will proceed in United States District Court in Tulsa, where the Complaint is currently pending. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
Jacksonville Postal Employee Pleads Guilty to Stealing Parcels of MailRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Jonisha M. Williams (36, Jacksonville) has pleaded guilty to stealing deposits from the mail. Williams faces a maximum penalty of five years in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, from February 5 to March 4, 2021, Williams worked as a Mail Handler Assistant at the National Distribution Center in Jacksonville. During this time, the United States Postal Service Office of Inspector General received a complaint that Williams was stealing narcotics from the mail and taking them out of the facility. After investigating the complaint, agents captured Williams on video surveillance placing vacuumed sealed bags—similar to how narcotics are packaged—and other mail parcels into her backpack. During an interview with agents, Williams admitted her involvement and that she used her backpack to remove marijuana from the mailing facility.
This case was investigated by United States Postal Service, Office of Inspector General. It is being prosecuted by Assistant United States Attorney Kirwinn Mike.
Former United States Attorney Joseph H. Harrington Retires from the Department of Justice After More than Thirty Years of Federal ServiceRead the Press Release
Spokane, WA – Today marks the last day of federal service for one of Eastern Washington’s longest-tenured federal prosecutors. Over the past thirty-two years, Assistant United States Attorney Joseph H. Harrington served with distinction and held numerous leadership roles within the U.S. Attorney’s Office for the Eastern District of Washington.
From May 2018 through July 2019, Harrington served as the United States Attorney, leading the office after being appointed by the United States District Court for the Eastern District of Washington. Prior to that, Harrington served as Interim U.S. Attorney, Acting U.S. Attorney, the Office’s First Assistant U.S. Attorney, Criminal Chief, Deputy Criminal Chief, Anti-Terrorism Advisory Coordinator, and as the Office’s Health Care Fraud Coordinator.
Over his career as an Assistant United States Attorney (AUSA), Harrington handled nearly 50 civil and criminal trials as well as approximately 70 appellate cases. These included a number of important prosecutions. For example, Harrington prosecuted Kevin W. Harpham, an avowed white supremacist who planted a sophisticated remotely-controlled improvised explosive device along the route of the Martin Luther King, Jr. Day Unity March in Spokane. He handled the Phineas Priest domestic terrorism case, involving bank robberies and bombings of a Planned Parenthood office and a Spokane newspaper facility. Harrington also supervised the Karl F. Thompson / Otto Zehm civil rights case. In addition to this broad-ranging criminal practice, Harrington defended the United States in civil cases involving medical malpractice tort claims, employment discrimination allegations, and the like. For his service, Harrington has received the Department of Justice “Director’s Award” on two occasions in recognition of his performance as an AUSA.
“It’s been a great run for me, and I’ve been incredibly lucky,” Harrington stated. “I was humbled and honored to serve as the Chief Federal Law Enforcement Officer for our District – serving alongside the outstanding and dedicated Assistant United States Attorneys and staff in our office. Together with our federal, state, county, local, and tribal law enforcement partners, our Office has accomplished remarkable things in the Eastern District of Washington.”
United States Attorney Vanessa R. Waldref thanked Harrington for his leadership and sacrifices on behalf of the people of Eastern Washington: “Joe’s eloquence, tenacity, and advocacy on behalf of the United States serve as models for other lawyers both inside and outside the Office. Over his long and successful career, Joe has earned a gravitas that accrues not only to himself and the Office, but to his longtime and well-served clients: the people of the United States. Joe’s leadership, wisdom, and institutional knowledge will be missed as he moves on to other pursuits, but the legacy he leaves cannot be diminished.”
Harrington received his J.D. from Gonzaga University in 1986, where he was a Thomas Moore Scholar and served as the Editor-in-Chief of the Gonzaga Law Review. He also holds a B.A. in Mathematics and a B.S. in Engineering from Carroll College. After graduating with distinction from the Gonzaga, Harrington worked for the U.S. Securities and Exchange Commission in Washington D.C. before joining the U.S. Attorney’s Office in Spokane in 1990. Harrington is married and has three children.
Florida Man Sentenced to Two Years in Federal Prison for Pandemic-Related FraudRead the Press Release
Also Ordered to Pay $26,699.80 in Restitution to Oklahoma Employment Security Commission for Fraudulent Unemployment Insurance Benefits
OKLAHOMA CITY– ANDRICE VANEC SAINVIL, 20, of Margate, Florida, pleaded guilty and was sentenced today to two years in prison for his role in a Coronavirus Aid, Relief, and Economic Security ("CARES") Act fraud scheme, announced U.S. Attorney Robert J. Troester.
According to an indictment filed in September 2021, Sainvil conspired with others to steal the identities of dozens of Oklahomans, use their victims’ names and social security numbers to apply for fraudulent Unemployment Insurance ("UI") benefits with the Oklahoma Employment Security Commission ("OESC"), and cause OESC to mail prepaid debit cards containing those fraudulently obtained UI benefits to addresses to which the coconspirators had access throughout the Western District of Oklahoma. The indictment further alleges that Sainvil and others then retrieved those prepaid debit cards and used them to withdraw thousands of dollars in cash from ATMs throughout Oklahoma City and elsewhere.
At a hearing this morning, Sainvil pleaded guilty to count three of a six-count indictment against him, and admitted that he personally possessed four of those fraudulently obtained UI benefit debit cards, withdrawing more than $1,000.00 in cash from three of them. Sainvil was then sentenced to two years in prison, to be followed by three years of supervised release. He was further ordered to pay $26,699.80 in restitution to OESC, and to forfeit the $2,658.00 in proceeds that he obtained as a result of the scheme.
This case is a result of an investigation by the United States Department of Labor Office of Inspector General. It was prosecuted by Assistant United States Attorney Julia E. Barry.
Reference is made to court filings for further information.
Fall River Man Indicted for Four Bank RobberiesRead the Press Release
BOSTON – A Fall River man has been indicted by a federal grand jury for allegedly robbing four separate banks in Massachusetts within a five-day period and attempting to rob a fifth bank.
William Sequeira, 59, was indicted on four counts of bank robbery and one count of attempted bank robbery. Sequeira was previously charged by criminal complaint on Nov. 18, 2022 with one count of bank robbery and one count of attempted bank robbery.
According to the charging documents, between Sept. 26, 2022 and Sept. 30, 2022, Sequeira robbed four separate banks in the Fall River and Boston areas. Specifically, it is alleged that Sequeira robbed: a Citizens Bank branch in Fall River on Sept. 26, 2022; a Santander Bank branch in Boston on Sept. 27, 2022; a M&T Bank branch in Boston on Sept. 28, 2022; and a TD Bank branch in Boston on Sept. 30, 2022. During the TD Bank robbery on Sept. 30, 2022 in Boston, Sequeira allegedly approached a teller and stated, “give me all the $100s in the drawer,” and “give me all the money before I blow your brains out,” before fleeing on foot with money from the teller.
On Oct. 5, 2022, law enforcement surveilling the Back Bay area in an effort to locate Sequeira, spotted him entering a Citizens Bank branch on Boylston Street in Boston. There, it is alleged that Sequeira approached the teller, said “Give me hundreds,” and then threatened to shoot the teller if they did not move fast enough. Sequeira was immediately apprehended.
The charges of bank robbery each provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of attempted bank robbery 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Valuable assistance was provided by the Fall River Police Department and the Suffolk County District Attorney’s Office. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Colorado Springs Felon Charged with Firearm PossessionRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces a federal grand jury has indicted Leon Askew, age 50, of Colorado Springs, for firearm and ammunition possession by a convicted felon.
According to allegations in the indictment, the defendant possessed a firearm and ammunition on January 31, 2022, while knowing he had previously been convicted of a felony.
The defendant made his initial appearance before Judge N. Reid Neureiter on December 30, 2022.
“We appreciate the dogged determination of our law enforcement partners at the U.S. Marshals Service and the ATF. It took more than six months to track down this individual, and we are relieved he was finally taken into custody without incident,” said United States Attorney Cole Finegan.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case. The United States Marshals Service (USMS) took the defendant into custody, with assistance from U.S. Immigration and Customs Enforcement (ICE) and the Colorado Springs Police Department. Assistant United States Attorney Al Buchman is handling the prosecution.
The charges contained in the indictment are allegations and the defendant is presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
CASE NUMBER: 22-cr-145
Thursday 29 December 2022
Vandalia, Missouri Man Sentenced to 144 months in Prison for Bank RobberyRead the Press Release
ROCK ISLAND, Ill. – A Vandalia, Missouri man, Brian Cook, 59, of the 400 block of West McPike Street, was sentenced on December 21, 2022, to 144 months in the Bureau of Prisons, to be followed by three years supervised release, for bank robbery.
At the sentencing hearing before Chief U.S. District Judge Sara L. Darrow, the government presented evidence that Cook pointed what appeared to be a firearm directly at bank tellers to force them to comply with his demands, he then stole $193,000 from the bank vault. After reviewing the evidence, Judge Darrow found that Cook’s use of the weapon during the July 2021 robbery was an appropriate factor to enhance his sentence. At the hearing, Judge Darrow stated that Cook’s actions terrorized the bank employees, and he broke the trust and safety many find in a small-town bank. Judge Darrow also noted the premeditated nature of the offense, as the evidence showed that Cook was researching the Roseville, IL bank and the surrounding area for months prior to the robbery, and that he had an extensive criminal history that included twelve prior convictions for felony theft related offenses over nearly forty years.
Cook was indicted in May 2022 and pleaded guilty in August 2022. He has been in custody of the U.S. Marshals Service since May 2022.
The statutory penalties for bank robbery are up to twenty years imprisonment, not more than $250,000 fine, and not more than three years of supervised release.
The Federal Bureau of Investigation, Springfield Field Office, Illinois State Police, Hancock County Illinois Sheriff’s Office, Macomb Police Department, Missouri Department of Conservation, Montgomery County Missouri State’s Attorney, Montgomery County Missouri Sheriff’s Office, Warren County Illinois Sheriff’s Office, and the Warren County Illinois State’s Attorney investigated the case. Assistant United States Attorney Joel C. Brakken represented the government in the prosecution.
U.S. Attorney’s Office Collects More Than $22 Million in Criminal and Civil Actions in Fiscal Year 2022Read the Press Release
CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio collected $22,160,718.79 in criminal and civil actions in Fiscal Year 2022. Of this amount, $14,545,655.69 was collected in criminal actions, and $7,615,063.10 was collected in civil actions.
Additionally, the staff of the Northern District of Ohio worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $541,258.46 in cases pursued jointly by these offices. Of this amount, $29,391.47 was collected in criminal actions, and $511,866.99 was collected in civil actions.
“These figures represent monies returned to the United States through the hard work and outstanding effort of our employees and law enforcement partners,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Whether we are representing the United States in a criminal or a civil action, we will always seek to protect the financial interests of the U.S. and victims in resolving these cases.”
Notable collections and forfeitures in Fiscal Year 2022 include:
CRIMINAL
US v. John Lazuka: Lazuka offered his technical expertise in cryptocurrency to a death beneficiary who had inherited a significant amount of cryptocurrency but was unable to access it. Instead of recovering the cryptocurrency for the benefit of the decedent’s estate, Lazuka transferred the cryptocurrency to his own accounts. Lazuka pleaded guilty to wire fraud and restitution was ordered in the amount of $1,565,222.81 in February 2022. This amount was paid in full for the benefit of the victim.
US v. EO System Company, Ltd.: EO System Company Ltd. is a South Korean company in the business of developing high-quality electronic optical devices. EO System requested, and was denied, permission for an export license to ship an American rifle sight with an infrared detector. EO System obtained the rifle sights without the appropriate license and committed wire fraud in the process. EO System was fined $1,000,000 in November 2021. This amount was paid in full.
US v. Jorge A. Martinez, M.D.: Dr. Martinez was found guilty in 2006 of mail fraud, wire fraud, violations of the Controlled Substances Act, and health care fraud resulting in death. Martinez was sentenced to life imprisonment and was ordered to pay over $13,000,000 in restitution. In 2022, the United States collected $922,169.36 for the benefit of his victims through a garnishment proceeding.
CIVIL
Stein Hospice Service, Inc.: Stein Hospice Service, Inc., a Sandusky-based hospice provider, paid $479,796.25 to resolve allegations that it provided medically unnecessary hospice services to unqualified Medicare beneficiaries and billed Medicare at a higher level for hospice care than was medically necessary.
U.S. ex rel. Schmidt and Smith v. The Toledo Clinic, Inc., et al.: The Toledo Clinic, Inc. paid a total of $380,185.73 to resolve allegations that certain tests ordered for Medicare beneficiaries treated at the Cognitive Center at the Toledo Clinic were not reasonable and necessary because the tests were not ordered by either a physician or a non-physician practitioner.
U.S. ex rel. Higgins v. Tudor Therapies, Inc. dba Tudor Physical Therapy: Tu-Dor Home Therapies, Inc. paid $232,739.30 to resolve allegations that it billed Medicare and Ohio Medicaid for physical therapy services that were not provided by a licensed physical therapist or a physical therapy assistant acting under the supervision of a physical therapist.
The U.S. Attorneys’ Offices and the department’s litigating divisions are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.
While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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U.S. Attorney’s Office Collects $5,963,150.24 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
United States Attorney Steven Russell announced today that the District of Nebraska collected $5,963,150.24 in criminal and civil actions in Fiscal Year 2022. Of this amount, $4,934,420.69 was collected in criminal actions and $1,028,729.55 was collected in civil actions.
Additionally, the District of Nebraska worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $556,512.84 in cases pursued jointly by these offices. Of this amount, $1,912.00 was collected in criminal actions and $554,600.00 was collected in civil actions.
In United States of America v. Gilbert G. Lundstrom, the District of Nebraska recovered $2,324,505.93 in garnished funds that were due and payable to Lundstrom. With this garnishment, the restitution owed was paid in full. Also, an Omaha-based Food Processing Company was ordered to pay a $550,000 civil penalty and later in 2022 received a $200,000 criminal penalty.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office in Nebraska working with partner agencies and divisions, collected $3,033,892 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office for the Western District of Kentucky Collects over $13 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
Louisville, KY – U.S. Attorney Michael A. Bennett announced today that the Western District of Kentucky collected $13,202,835.42 in criminal and civil actions in fiscal year 2022. This total consists of $5,915,754.66 collected in criminal actions and $7,287,080.76 collected in civil actions.
Additionally, the District worked with other U.S. Attorneys’ Offices and components of the Department of Justice to collect an additional $413,509.07 in cases pursued jointly by these offices. Of this amount, $38,306.27 was collected in criminal actions and $375,202.80 was collected in civil actions.
“The United States Attorney’s Office for the Western District of Kentucky prioritizes restitution recovery, and we pursue all available means for the collection of criminal restitution and civil penalties to provide justice to victims, including individuals, businesses, and other federal agencies,” said U.S. Attorney Bennett.
The U.S. Attorneys’ Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Notable criminal restitution recoveries within the Western District of Kentucky include $875,339.99 as part of a plea agreement in United States v. Nitesh Patel, Case No. 3:19-cr-58, and $394,927.72 from the voluntary liquidation of real property in United States v. Steve Turner, Case No. 4:19-cr-26. Noteworthy civil recoveries include $220,000 paid to victims sexually harassed by their landlord in United States v. Chester Whitescarver, Case No. 1:20-cv-00054, and an initial $1.3 million payment in an $8 million False Claims Act settlement in United States, ex rel. v. Agendia, Inc., Case No. 5:15-cv-50. The United States received another $6 million payment in Agendia at the beginning of the 2023 Fiscal Year.
Working with partner agencies and divisions, the U.S. Attorney’s Office for the Western District of Kentucky also collected $5,966,650 in asset forfeiture actions in Fiscal Year 2022. This includes $2,256,665 forfeited to the Department of Justice Assets Forfeiture Fund, which will be used to restore funds to crime victims and for a variety of law enforcement purposes.
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Troy Man Pleads Guilty in Capital Region Cocaine ConspiracyRead the Press Release
ALBANY, NEW YORK – Jan Lopez-Colon, age 28, of Troy, New York, pled guilty today to a conspiracy to distribute more than 5 kilograms of cocaine in the Capital Region, announced United States Attorney Carla B. Freedman and Ketty Larco-Ward, Inspector in Charge of the Boston Division of the United States Postal Inspection Service (USPIS).
Lopez-Colon admitted that between June 2021 and December 2021, in Albany and Rensselaer Counties, he and three others conspired to ship more than 5 kilograms of cocaine from Puerto Rico to the Capital Region. The cocaine was shipped via U.S. mail in 1-kilogram bricks, and transported to a stash house maintained by a co-conspirator on Fifth Avenue in Troy, where the cocaine was processed for distribution.
Sentencing is scheduled for April 26, 2023 in front of Senior United States District Judge Gary L. Sharpe. Lopez-Colon faces a minimum sentence of 10 years in prison, a maximum sentence of life imprisonment, a fine of up to $10 million, and a term of supervised release of at least 5 years and up to life. Lopez-Colon also agreed to forfeit numerous items of jewelry seized from his residence, and agreed to abandon a Glock model 43 pistol.
The following three men were also charged for their roles in the conspiracy:
- Ilvin Batista-Figueroa, age 31, of Albany;
- Jesus Baez, age 32, of Loudonville, New York; and
- Sam Calderon, age 20, of Troy.
Baez and Calderon have previously pled guilty. The charges against Batista-Figueroa are pending, they are merely accusations, and he is presumed innocent unless and until proven guilty.
This case is being investigated by the USPIS and its Capital Region Task Force, led by the USPIS and including the Albany Police Department, the Albany County Sheriff’s Office, and the Schenectady Police Department, as well as the U.S. Drug Enforcement Administration, and is being prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Three Individuals Charged in Relation to Murder of Postal EmployeeRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin announced that on December 28, 2022, a federal criminal complaint had been issued charging three individuals with offenses related to the killing of an on-duty United States Postal Service letter carrier on December 9, 2022.
The complaint alleges that Kevin McCaa (age 36) and Charles Ducksworth Jr., (age 26), both of Milwaukee, murdered or aided and abetted the murder of a postal employee, in violation of Title 18, United States Code, Sections 1111, 1114, and 2(a). The complaint also alleges that McCaa and Ducksworth Jr. discharged a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Sections 924(c) and 2(a). If convicted of either offense as charged, each individual would face up to life in prison. Discharging a firearm in connection with a crime of violence also triggers a mandatory minimum sentence of ten years in prison.
The complaint also charges another Milwaukee resident, Shanelle McCoy (age 34), with providing materially false statements to law enforcement investigating the murder, in violation of Title 18, United States Code, Section 1001(a)(2), a charge that carries a sentence of up to five years, and committing misprision of a felony, in violation of Title 18, United States Code, Section 4, an offense which carries a sentence of up to three years.
The complaint also contains additional charges against McCaa and Ducksworth Jr. The complaint alleges that on or about December 27, 2022, Ducksworth Jr. possessed marijuana with the intent to distribute it, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(D), a charge which carries up to a five year sentence, and possessed a firearm during and in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c), which would result in a sentence of five years to life upon conviction.
Finally, the complaint alleges that on or about December 27, 2022, McCaa possessed ammunition despite being a convicted felon, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(8). The offense of unlawful possession of ammunition carries a maximum sentence of 15 years in prison.
“Today’s charges are the direct result of the tireless efforts of dedicated law enforcement professionals from the Milwaukee Police Department, the United States Postal Inspection Service, the FBI and other federal, state, and local partners,” stated U.S. Attorney Haanstad. “I commend the hard work and collaboration of all involved in seeking justice for the victim, his family, and his loved ones. This office remains fully committed to seeking to hold those responsible for acts of violence fully accountable for their actions.”
“The FBI sends our heartfelt condolences to the family, friends, and co-workers of U.S. Postal Service Letter Carrier Aundre Cross,” said FBI Special Agent in Charge Michael Hensle. “The FBI continues to work with our partners at the U.S. Postal Inspection Service and the Milwaukee Police Department to bring those responsible for this senseless crime to justice. The multiple arrests made yesterday represent the unrelenting efforts of these law enforcement partnerships to protect the people of Wisconsin and represents an opportunity for the loved ones of Mr. Cross to begin their healing process. Anyone responsible for crimes against federal employees who are doing their jobs in service of the American people will be investigated and held accountable to the full extent of the law.”
“These arrests should make very clear to criminals everywhere that the Postal Inspection Service will not rest when it comes to solving attacks like this,” said Chicago Division Acting Inspector in Charge Kai Pickens. “If you harm one of our employees, we will find you and put you behind bars. My thanks to everyone who contributed to identifying, locating, and apprehending these suspects. Though no words can ever undo this terrible crime, we can at least say that these arrests are another step toward securing justice for Aundre Cross.”
“The Milwaukee Police Department (MPD) appreciates the diligent work and effort of the FBI, the U.S. Postal Inspection Service, the U.S. Attorney’s Office, MPD members and other agencies that collaborated to bring charges against the individuals responsible for the murder of U.S. Postal Carrier Aundre Cross. I am proud of the hard work of all the agencies involved. We are one step closer to bringing these individuals to justice. I and the entire Milwaukee Police Department send our sincere condolences to the Cross family and to the USPS for their loss.” said Milwaukee Police Chief Jeffrey Norman.
The defendants were charged based on an investigation by the Milwaukee Police Department, The United States Postal Inspection Service, and the Federal Bureau of Investigation, with the assistance of the Milwaukee County Sheriff’s Office and the Wauwatosa Police Department. Assistant United States Attorneys Margaret Honrath and Abbey Marzick are prosecuting the case.
The public is cautioned that a complaint is merely a charge and the defendants are presumed innocent until and unless proven guilty.
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For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Spring Hill Man Sentenced to 30 Months in Federal Prison for Manufacturing and Aiding in the Passing of Counterfeit Currency Throughout North FloridaRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Derrick Kamran Collins (32, Spring Hill) to 30 months in federal prison for manufacturing counterfeit Federal Reserve notes, aiding and abetting the passing of counterfeit Federal Reserve notes, and possession of counterfeit Federal Reserve notes. The court also ordered Collins to forfeit computer equipment utilized for manufacturing counterfeit Federal Reserve notes and $2,846.18 in illicit proceeds from his counterfeiting activities. Collins had been found guilty on October 25, 2022, following a bench trial.
According to court documents, from 2017 to March 2019, Collins acted as the source of supply for counterfeit Federal Reserve notes for various individuals throughout the Middle District of Florida. Collins was part of a scheme to pass the counterfeit bills in order to defraud businesses. After successfully passing the counterfeit currency at businesses, individuals paid Collins a portion of the proceeds. On March 26, 2019, the Jacksonville Sheriff’s Office (JSO) conducted a traffic stop on a vehicle that contained multiple people, including Collins, at the River City Marketplace for suspicion of passing counterfeit Federal Reserve notes. During a search of the vehicle, the officers recovered multiple counterfeit $100 bills throughout the vehicle and in the glove box. Subsequently, law enforcement was able to determine Collins was the source of supply for the counterfeit Federal Reserve note that were passed by various individuals in the North Florida area, including at the River City Marketplace.
On November 21, 2019, the New Port Richey Police Department (NPRPD) conducted a traffic stop at approximately 1:00 a.m. on a vehicle driven by the registered owner, Collins. Upon making contact with Collins, law enforcement observed signs of impairment. During a subsequent DUI investigation, Collins refused to participate in field sobriety exercises and was arrested for DUI. During an inventory search pursuant to towing the vehicle from the area, the NPRPD located several sheets of counterfeit $100 bills in various stages of manufacturing in the trunk of the vehicle, and computer media. In the vehicle’s glove box, officers located completed counterfeit cash and illicit proceeds from the passing of counterfeit cash, bundled together.
This prosecution was part of a long-term investigation into counterfeit Federal Reserve notes being passed in the areas of New Port Richey and North Florida. To date, Collins is the fourth individual prosecuted in connection with this activity. In February 2020, Charles Alexander Coriaty, III (Tampa) was sentenced to 16 months in federal prison for passing counterfeit Federal Reserve notes supplied by Collins and was ordered to pay restitution to the businesses that he defrauded. In June 2020, Brett Lawrence Rozenburgh (Tampa) was sentenced to 13 months’ imprisonment for passing counterfeit Federal Reserve notes supplied by Collins and was ordered to pay restitution to the businesses that he defrauded. In September 2020, Samantha Jade Falcone (Tampa) was sentenced to 2 years’ federal supervision for passing counterfeit Federal Reserve notes supplied by Collins and was ordered to pay restitution to the businesses that she defrauded.
This case was investigated by the Jacksonville Sheriff’s Office, the New Port Richey Police Department and the United States Secret Service - Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein. The forfeiture was handled by Assistant United States Mai Tran.
Owner of Farm Labor Company Sentenced to 118 Months in Prison for Leading a Multi-State Conspiracy Involving Forced Labor of Mexican Farm WorkersRead the Press Release
Bladimir Moreno, 55, was sentenced for leading a federal racketeering and forced labor conspiracy that victimized Mexican H-2A agricultural workers in the United States between 2015 and 2017. U.S. District Court Judge Charlene Edward Honeywell of the Middle District of Florida sentenced Moreno to 118 months in prison with three years of supervised release and ordered him to pay over $175,000 in restitution to the victims.
Moreno, the owner of Los Villatoros Harvesting LLC (LVH), the labor contracting company that employed the workers, was charged in September 2021 and pleaded guilty earlier this year to conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to commit forced labor. Two of Moreno’s co-defendants previously pleaded guilty to conspiracy under RICO, and a third, Guadalupe Mendes, 45, pleaded guilty to conspiring to obstruct a federal investigation. They were sentenced in October 2022. Rodas, a citizen of Mexico, who worked for LVH as a recruiter, manager and supervisor, received 41 months in prison. Gamez, a U.S. citizen, who worked for LVH as a bookkeeper, manager and supervisor, received 37 months in prison. Mendes, a U.S. citizen, who worked for LVH as a manager and supervisor, received eight months of home detention and a $5,500 fine to be paid over 24 months of supervised release.
“Human trafficking, including forced labor campaigns that exploit vulnerable workers, is unlawful, immoral and inhumane,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant abused his power as a business owner to capitalize on the victims’ vulnerabilities and immigration status, luring those seeking a better quality of life with false promises of lawful work paying a fair wage. The defendant forced Mexican agricultural workers to labor under inhumane conditions, confiscated their passports, imposed exorbitant fees and debts, and threatened them with deportation or false arrest. The Department of Justice is committed to seeking justice for survivors of forced labor campaigns, holding perpetrators accountable and stripping wrongdoers of their illegal profits.”
“Forcing individuals to work against their will using abusive and coercive tactics is not only unconscionable but illegal,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our task force partners to combat human trafficking in all its forms, including prosecuting those who exploit vulnerable workers.”
According to court documents, Moreno owned, operated and managed LVH — a farm labor contracting company that brought large numbers of temporary, seasonal Mexican workers into the United States on H-2A agricultural visas — as a criminal enterprise. Moreno compelled victims to work in Florida, Kentucky, Indiana, Georgia and North Carolina, and he engaged in a pattern of other racketeering activity that included visa fraud and fraud in foreign labor contracting, among other things. In order to facilitate the enterprise, Moreno made false statements in applications to federal agencies for the company to be granted temporary, H-2A agricultural workers. Moreno and his co-conspirators also made false promises to the Mexican farm workers themselves to encourage them to work for LVH and then charged them inflated sums to come into the United States on H-2A visas.
Once the immigrants arrived in the United States, Moreno and his co-conspirators coerced over a dozen of them into providing long hours of physically demanding agricultural labor, six to seven days a week, for de minimis pay. Moreno and his co-conspirators used various forms of coercion, including imposing debts on the workers; confiscating their passports; subjecting them to crowded, unsanitary and degrading living conditions; harboring them in the United States after their visas had expired; and threatening them with arrest and deportation if they failed to comply with Moreno’s and his co-conspirators’ demands. Later, in an attempt to conceal the criminal enterprise from federal investigators, Moreno created and provided to investigators fraudulent records that contained falsified information about the workers’ pay and hours, and repeatedly made false statements to federal investigators.
Assistant Attorney General Clarke, U.S. Attorney Handberg and Acting Special Agent in Charge DeWitt announced the sentence.
The Palm Beach County Human Trafficking Task Force, which includes the FBI, Homeland Security Investigations and the Palm Beach County Sheriff’s Office investigated the case. The Task Force received assistance from the Department of Labor Office of the Inspector General, the Department of Labor Wage and Hour Division, the Department of State Diplomatic Security Service, the Coalition of Immokalee Workers, Colorado Legal Services Migrant Farm Worker Division, Legal Aid Services of Oregon Farmworker Program and Indiana Legal Services Worker Rights and Protection Project.
Assistant U.S. Attorney Ilyssa Spergel for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Civil Rights Division’s Criminal Section are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Owner of Farm Labor Company Sentenced to 118 Months in Prison for Leading a Multi-State Conspiracy Involving Forced Labor of Mexican Farm WorkersRead the Press Release
Tampa, FL - Bladimir Moreno, 55, was sentenced for leading a federal racketeering and forced labor conspiracy that victimized Mexican H-2A agricultural workers in the United States between 2015 and 2017. U.S. District Court Judge Charlene Edward Honeywell of the Middle District of Florida sentenced Moreno to 118 months in prison with three years of supervised release and ordered him to pay over $175,000 in restitution to the victims.
Moreno, the owner of Los Villatoros Harvesting LLC (LVH), the labor contracting company that employed the workers, was charged in September 2021 and pleaded guilty earlier this year to conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to commit forced labor. Two of Moreno’s co-defendants previously pleaded guilty to conspiracy under RICO, and a third, Guadalupe Mendes, 45, pleaded guilty to conspiring to obstruct a federal investigation. They were sentenced in October 2022. Rodas, a citizen of Mexico, who worked for LVH as a recruiter, manager and supervisor, received 41 months in prison. Gamez, a U.S. citizen, who worked for LVH as a bookkeeper, manager and supervisor, received 37 months in prison. Mendes, a U.S. citizen, who worked for LVH as a manager and supervisor, received eight months of home detention and a $5,500 fine to be paid over 24 months of supervised release.
“Human trafficking, including forced labor campaigns that exploit vulnerable workers, is unlawful, immoral and inhumane,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant abused his power as a business owner to capitalize on the victims’ vulnerabilities and immigration status, luring those seeking a better quality of life with false promises of lawful work paying a fair wage. The defendant forced Mexican agricultural workers to labor under inhumane conditions, confiscated their passports, imposed exorbitant fees and debts, and threatened them with deportation or false arrest. The Department of Justice is committed to seeking justice for survivors of forced labor campaigns, holding perpetrators accountable and stripping wrongdoers of their illegal profits.”
“Forcing individuals to work against their will using abusive and coercive tactics is not only unconscionable but illegal,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our task force partners to combat human trafficking in all its forms, including prosecuting those who exploit vulnerable workers.”
According to court documents, Moreno owned, operated and managed LVH — a farm labor contracting company that brought large numbers of temporary, seasonal Mexican workers into the United States on H-2A agricultural visas — as a criminal enterprise. Moreno compelled victims to work in Florida, Kentucky, Indiana, Georgia and North Carolina, and he engaged in a pattern of other racketeering activity that included visa fraud and fraud in foreign labor contracting, among other things. In order to facilitate the enterprise, Moreno made false statements in applications to federal agencies for the company to be granted temporary, H-2A agricultural workers. Moreno and his co-conspirators also made false promises to the Mexican farm workers themselves to encourage them to work for LVH and then charged them inflated sums to come into the United States on H-2A visas.
Once the immigrants arrived in the United States, Moreno and his co-conspirators coerced over a dozen of them into providing long hours of physically demanding agricultural labor, six to seven days a week, for de minimis pay. Moreno and his co-conspirators used various forms of coercion, including imposing debts on the workers; confiscating their passports; subjecting them to crowded, unsanitary and degrading living conditions; harboring them in the United States after their visas had expired; and threatening them with arrest and deportation if they failed to comply with Moreno’s and his co-conspirators’ demands. Later, in an attempt to conceal the criminal enterprise from federal investigators, Moreno created and provided to investigators fraudulent records that contained falsified information about the workers’ pay and hours, and repeatedly made false statements to federal investigators.
Assistant Attorney General Clarke, U.S. Attorney Handberg and Acting Special Agent in Charge DeWitt announced the sentence.
The Palm Beach County Human Trafficking Task Force, which includes the FBI, Homeland Security Investigations and the Palm Beach County Sheriff’s Office investigated the case. The Task Force received assistance from the Department of Labor Office of the Inspector General, the Department of Labor Wage and Hour Division, the Department of State Diplomatic Security Service, the Coalition of Immokalee Workers, Colorado Legal Services Migrant Farm Worker Division, Legal Aid Services of Oregon Farmworker Program and Indiana Legal Services Worker Rights and Protection Project.
Assistant U.S. Attorney Ilyssa Spergel for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Civil Rights Division’s Criminal Section are prosecuting the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Okaloosa County Man Sentenced to 25 Years in Federal Prison for Drug Trafficking and Firearm OffensesRead the Press Release
PENSACOLA, FLORIDA – Kendall Ivan Brown, 41, of Okaloosa County, Florida, was sentenced to twenty-five years in federal prison after pleading guilty to conspiracy to distribute 5 kilograms or more of cocaine, possession with intent to distribute 5 kilograms or more of cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The sentence was announced by Jason R. Coody, U.S. Attorney for the Northern District of Florida.
“I am proud of our federal, state, and local partners for their tireless efforts to keep us safe and serve a critical role in our efforts to remove addictive and deadly controlled substances from our communities,” said U.S. Attorney Coody. “We will continue to support the efforts our law enforcement partners as we work together to investigate and prosecute criminals bringing drugs into North Florida.”
In August 2021, U.S. Postal Inspectors identified multiple packages shipped from Puerto Rico to addresses in Okaloosa County, Florida, over several months, containing large quantities of cocaine. Working with the Okaloosa County Sheriff’s Office and the Drug Enforcement Administration, investigators were able to identify Brown as the recipient and determine that he was receiving the packages at several different addresses in Fort Walton Beach, Shalimar, and Crestview. On November 16, 2021, investigators executed search warrants at three locations associated with Brown and discovered over eight kilograms of cocaine. At one of the locations, the cocaine was concealed with a loaded Sig Sauer 9mm pistol.
This case resulted from a joint investigation by the U.S. Postal Inspection Service, Okaloosa County Sheriff’s Office, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Walter Narramore prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
As part of its PSN strategy, the United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
KC Man Charged with Illegal Firearm, Trafficking Crack CocaineRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who fired at a gas station clerk was charged in federal court today with illegally possessing a firearm and crack cocaine to distribute.
Reginald Lucas, 59, was charged in a three-count criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s complaint charges Lucas with one count of being a felon in possession of a firearm, one count of possessing crack cocaine with the intent to distribute, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
According to an affidavit filed in support of today’s criminal complaint, Lucas entered agas station near Prospect Avenue and East 35th Street at about 5:15 a.m. on Dec. 28, 2012. Lucas pointed a handgun at the store clerk and threatened him, then moved to the doorway and fired a shot in the direction of the clerk (who was not injured). Lucas fled from the store, got into a red Nissan Altima, and drove away.
Kansas City police officers who were called to the store found a bullet hole in the ceiling above where the clerk had been standing, and recovered a 9mm shell housing on the ground near the door. Gas station surveillance video provided images of Lucas firing the handgun and fleeing in the Altima.
Police officers were returning to the gas station at about 6:11 a.m. the same day when they saw the Altima, being driven by an unidentified woman with Lucas a passenger. Lucas got out of the vehicle and, when he saw the police officers approach, ran away on foot carrying a gray bag. Officers chased Lucas and took him into custody. Officers found a clear baggie of crack cocaine that contained 58 individually wrapped baggies that weighed a total of 20.95 grams and a smaller baggie that contained a total of 2.85 grams of crack cocaine in Lucas’s jacket pocket, and another 4.98 grams of crack cocaine in his pants pocket.
Officers asked Lucas if he had any identification, and he nodded towards the gray bag, which was hanging on a fence. Officers opened the bag and found a loaded CANIK Century Arms 9mm semi-automatic, individually wrapped baggies that contained a total of 92.81 grams of marijuana, and 22 loose prescription pills.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Lucas has prior convictions for murder with a deadly weapon and robbery.
The charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Sean Foley. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department Files Nationwide Lawsuit Against AmerisourceBergen Corp. and Subsidiaries for Controlled Substances Act ViolationsRead the Press Release
In a civil complaint filed today, the Department of Justice alleges that AmerisourceBergen Corporation and two of its subsidiaries, AmerisourceBergen Drug Corporation and Integrated Commercialization Solutions, LLC (together “AmerisourceBergen”), collectively one of the country’s largest wholesale pharmaceutical distributors, violated federal law in connection with the distribution of controlled substances to pharmacies and other customers across the country, contributing to the prescription opioid epidemic.
The complaint alleges that this unlawful conduct resulted in at least hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties and injunctive relief.
“The Department of Justice is committed to holding accountable those who fueled the opioid crisis by flouting the law,” said Associate Attorney General Vanita Gupta. “Companies distributing opioids are required to report suspicious orders to federal law enforcement. Our complaint alleges that AmerisourceBergen — which sold billions of units of prescription opioids over the past decade — repeatedly failed to comply with that requirement.”
“AmerisourceBergen, one of the largest wholesale distributors of opioids in the world, had a legal obligation to report suspicious orders to the Drug Enforcement Administration (DEA), and our complaint alleges that the company’s repeated and systemic failure to fulfill this simple obligation helped ignite an opioid epidemic that has resulted in hundreds of thousands of deaths over the past decade,” said DEA Administrator Anne Milgram. “The men and women of the DEA will stop at nothing to hold accountable registrants that fail to uphold their responsibility of saving American lives by filing suspicious order reports.”
Pharmaceutical distributors that sell controlled substances, including AmerisourceBergen, have a longstanding legal obligation to monitor the orders that they receive from pharmacies and other customers and must inform the DEA each and every time they receive a suspicious order.
The complaint filed in the U.S. District Court for the Eastern District of Pennsylvania alleges that over the course of nearly a decade, from 2014 through the present, AmerisourceBergen violated the CSA by failing to report at least hundreds of thousands of suspicious orders of controlled substances to the DEA as required by law. The alleged unlawful conduct includes filling and failing to report numerous orders from pharmacies that AmerisourceBergen knew were likely facilitating diversion of prescription opioids. Today’s filing is the result of a multi-year investigation by the DEA, the Civil Division’s Consumer Protection Branch and several U.S. Attorneys’ Offices.
“For years, AmerisourceBergen put its profits from opioid sales over the safety of Americans,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “According to the complaint, this was part of a brazen, blatant and systemic failure by one of the largest companies in America to comply with its obligations to report suspicious opioid orders, contributing to the epidemic of opioid abuse throughout this country.”
“Companies like AmerisourceBergen that sell controlled substances across the country have a significant responsibility to ensure that their product is handled appropriately and that they comply with their federal legal obligations,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “The allegations against AmerisourceBergen are disturbing, especially for a company that is headquartered only a few miles from neighborhoods in Philadelphia devastated by the opioid epidemic.”
“When drug distributors like AmerisourceBergen fail to alert the DEA of suspicious orders of prescription drugs by pharmacies, they shirk a key obligation in dealing with addictive drugs that can end lives,” said U.S. Attorney Cole Finegan for the District of Colorado. “This complaint makes clear that the Department of Justice will continue to hold accountable corporations that disregard the public’s safety for their own profit.”
“We allege that AmerisourceBergen, a wholesale drug distributor, flagrantly and repeatedly violated its obligation to notify DEA of suspicious orders for controlled substances, which directly contributed to the epidemic of prescription opioid abuse across the United States,” said U.S. Attorney Breon Peace for the Eastern District of New York.
The government’s complaint specifies several pharmacies for which AmerisourceBergen allegedly was aware of significant “red flags” suggesting the existence of diversion of prescription drugs to illicit markets. The complaint asserts that AmerisourceBergen nevertheless continued to distribute drugs to the pharmacies for years and reported few suspicious orders to the DEA. The five examples include: two pharmacies, one in Florida and one in West Virginia, for which AmerisourceBergen knew the drugs it distributed were likely being sold in parking lots for cash; a New Jersey pharmacy that has pleaded guilty to unlawfully selling controlled substances; another New Jersey pharmacy whose pharmacist-in-charge has been indicted for drug diversion; and a Colorado pharmacy that AmerisourceBergen knew was its largest purchaser of oxycodone 30mg tablets in all of Colorado. The government further alleges that for this Colorado pharmacy, AmerisourceBergen specifically identified eleven patients as potential “drug addicts” whose prescriptions likely were illegitimate. Two of those patients subsequently died of overdoses.
The complaint further alleges that AmerisourceBergen not only ignored red flags of diversion, but also relied on internal systems to monitor and identify suspicious orders that were deeply inadequate, both in design and implementation. These systems allegedly flagged only a tiny fraction of suspicious orders, thereby enabling diversion and AmerisourceBergen’s failure to report orders it was legally obligated to identify to the DEA. In fact, the complaint asserts that in the midst of the opioid epidemic, AmerisourceBergen intentionally altered its internal systems in a way that reduced the number of controlled substances reported as suspicious. Even for the small percentage of orders that AmerisourceBergen did identify as suspicious, the company routinely failed to report them to the DEA.
The government’s complaint alleges that for years AmerisourceBergen flouted its legal obligations and prioritized profits over the well-being of Americans.
If AmerisourceBergen is found liable, it could face escalating civil penalties depending on when each violation occurred and the type of controlled substance at issue, specifically, up to $10,000 for each reporting violation before November 2015, up to $16,864 for each violation between November 2015 and October 2018 and for each violation relating to a suspicious order for a non-opioid controlled substance not reported after October 2018, and up to $109,374 for each violation relating to a suspicious opioid order not reported after October 2018, potentially totaling billions of dollars in penalties. The court also may award injunctive relief to prevent AmerisourceBergen from committing future CSA violations.
The United States is represented in the filed action by Trial Attorneys Michael Wadden, Amy DeLine and Deborah Sohn of the Justice Department’s Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Hayden M. Brockett and Jordann R. Conaboy for the District of New Jersey, Assistant U.S. Attorneys Anthony D. Scicchitano and Landon Jones for the Eastern District of Pennsylvania, Assistant U.S. Attorneys Amanda Rocque and David Moskowitz for the District of Colorado, and Assistant U.S. Attorneys Elliot M. Schachner and Diane Leonardo for the Eastern District of New York. The DEA collaborated with the Civil Division’s Consumer Protection and the U.S. Attorneys’ Offices to investigate the case.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.