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Friday 16 December 2022
Pennsylvania Inmate Sentenced to 11 Months in Prison for Pandemic Unemployment FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jeovanny Shultz, age 28, an inmate at the State Correctional Institution at Mercer, was sentenced by United States District Court Judge Christopher C. Conner to 11 months in prison for conspiring to steal pandemic funds.
According to United States Attorney Gerard M. Karam, Shultz pleaded guilty to conspiring with five others to file false claims for unemployment assistance during the pandemic. These defendants gathered personal identification information from inmates housed within the Pennsylvania Department of Corrections system and filed unemployment claims. The payments were mailed to particular addresses in New Cumberland, Pennsylvania, where the funds were accessed. Shultz arranged for the payment of approximately $11,000 in benefits which he was not entitled to obtain.
Andrew Marszalek, age 24, of New Cumberland, entered a guilty plea to the fraud conspiracy and was sentenced to 18 months in prison. Nicholas Baggio, age 32, an inmate at the State Correctional Institution at Mahanoy, entered a guilty plea to conspiracy to commit mail fraud and was sentenced to one year and a day in prison. Alexis Figueroa, age 32, of Philadelphia, entered a guilty plea to the fraud conspiracy and was sentenced to 18 months in prison. Oscar Martinez, age 30, an inmate at State Correctional Institution at Rockview, pleaded guilty and is awaiting sentencing. Joseph Powles, age 33, of Philadelphia, is wanted as a fugitive.
The case was investigated by the U.S. Postal Inspection Service and the United States Department of Labor Office of Inspector General. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies
across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
All persons charged are presumed to be innocent unless and until found guilty in court.
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Parties Agree to Pay $150 Million Toward Clean up of the Lower Passaic River in New JerseyRead the Press Release
The Department of Justice and the Environmental Protection Agency (EPA) announced today a proposed consent decree with 85 potentially responsible parties, requiring them to pay a total of $150 million to support the cleanup work and resolve their liability for discharging hazardous substances into the Lower Passaic River, which is part of the Diamond Alkali Superfund Site in Newark, New Jersey.
The Justice Department and EPA alleged that these 85 parties are responsible for releases of hazardous substances into the Lower Passaic River, contaminating the 17-mile tidal stretch, including the lower 8.3 miles. The proposed consent decree seeks to hold the parties accountable for their share of the total cost of cleaning up this stretch of the river.
“This agreement holds responsible parties financially accountable for the legacy of pollution in the Lower Passaic River,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The settlement will advance the cleanup of the river for the benefit of those communities living alongside it who have been historically overburdened by pollution.”
“Newark, Harrison, and many other vibrant communities have borne the brunt of pollution along the Lower Passaic River for too long,” said First Assistant U.S. Attorney Vikas Khanna for the District of New Jersey. “This agreement is an important step forward. It will support significant cleanup efforts that restore this historic waterway, advance a new chapter of responsible land use, and return the river to the people of New Jersey.
“This agreement continues our work of ensuring responsible parties pay for or conduct the cleanup of the Passaic River,” said Regional Administrator Lisa F. Garcia for the EPA Region 2. “Today's agreement requires those responsible for the contamination to pay their fair share for releasing hazardous substances into the Lower Passaic. This work brings us closer to a cleaner healthier river that can be enjoyed by those who live near its banks.”
On behalf of EPA, the Justice Department lodged the consent decree with the U.S. District Court for the District of New Jersey. If and when the settlement becomes final, EPA expects to use the settlement funds to support ongoing efforts to clean up the site, specifically the lower 8.3 miles and the upper 9 miles which make up the entire 17-mile Lower Passaic River Study Area. In addition to the proposed consent decree, EPA has reached several related agreements, including one whereby many parties investigated the 17-mile Lower Passaic River, another whereby Occidental Chemical Corporation, a potentially responsible party, is designing the cleanup chosen for the lower 8.3 miles, and several cost recovery agreements that resulted in payments to EPA of millions of dollars.
This consent decree is subject to a 45-day public comment period and is available for public review on the Justice Department website here.
After the close of the comment period, Justice Department and EPA will evaluate any comments received and prepare a response to the comments. If the government still considers the settlement appropriate, it will seek approval of the consent decree by the court.
For additional information and site background, visit Diamond Alkali Superfund Profile Page.
Follow EPA Region 2 on Twitter and Facebook page. For more information about EPA Region 2, visit their website.
Parties Agree to Pay $150 Million Toward Clean up of Lower Passaic River in New JerseyRead the Press Release
NEWARK, N.J. – The Department of Justice and the Environmental Protection Agency (EPA) announced today a proposed consent decree with 85 potentially responsible parties, requiring them to pay a total of $150 million to support the cleanup work and resolve their liability for discharging hazardous substances into the Lower Passaic River, which is part of the Diamond Alkali Superfund Site.
The Justice Department and EPA alleged that these 85 parties are responsible for releases of hazardous substances into the Lower Passaic River, contaminating the 17-mile tidal stretch, including the lower 8.3 miles. The proposed consent decree seeks to hold the parties accountable for their share of the total cost of cleaning up this stretch of the river.
“Newark, Harrison, and many other vibrant communities have borne the brunt of pollution along the Lower Passaic River for too long,” First Assistant U.S. Attorney Vikas Khanna for the District of New Jersey said. “This agreement is an important step forward. It will support significant cleanup efforts that restore this historic waterway, advance a new chapter of responsible land use, and return the river to the people of New Jersey.
“This agreement holds responsible parties financially accountable for the legacy of pollution in the Lower Passaic River,” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division said. “The settlement will advance the cleanup of the river for the benefit of those communities living alongside it who have been historically overburdened by pollution.”
“Today's agreement requires those responsible, no matter the extent, to pay their fair share for releasing hazardous substances into the Lower Passaic,” Regional Administrator Lisa F. Garcia for the EPA Region 2 said. “This agreement adds to the work we are already doing and will continue to do to get responsible parties to pay for or conduct this cleanup, and it brings us closer to a cleaner healthier river that can be enjoyed by those who live near its banks, no matter what their economic status.”
On behalf of EPA, the Justice Department lodged the consent decree with the U.S. District Court for the District of New Jersey. If and when the settlement becomes final, EPA expects to use the settlement funds to support ongoing efforts to clean up the site, specifically the lower 8.3 miles and the upper 9 miles which make up the entire 17-mile Lower Passaic River Study Area. In addition to the proposed consent decree, EPA has reached several related agreements, including one whereby many parties investigated the 17-mile Lower Passaic River, another whereby Occidental Chemical Corporation, a potentially responsible party, is designing the cleanup chosen for the lower 8.3 miles, and several cost recovery agreements that resulted in payments to EPA of millions of dollars.
This consent decree is subject to a 30-day public comment period and is available for public review here.
After the close of the comment period, Justice Department and EPA will evaluate any comments received and prepare a response to the comments. If the government still considers the settlement appropriate, it will seek approval of the consent decree by the court.
For additional information and site background, visit Diamond Alkali Superfund Profile Page.
Follow EPA Region 2 on Twitter and Facebook page. For more information about EPA Region 2, visit the website.
Partes concordam em pagar US$ 150 milhões para limpar o rio Lower Passaic em Nova JerseyRead the Press Release
A Agência de Proteção Ambiental dos EUA (EPA) e o Departamento de Justiça dos EUA (DOJ) anunciaram hoje uma proposta de decreto de consentimento com 85 partes potencialmente responsáveis, exigindo que paguem um total de US$ 150 milhões para apoiar o trabalho de limpeza e resolver sua responsabilidade por descarregar resíduos perigosos substâncias no Lower Passaic River, que faz parte do Diamond Alkali Superfund Site em Newark, Nova Jersey.
A EPA e o DOJ alegaram que essas 85 partes são responsáveis por lançamentos de substâncias perigosas no rio Lower Passaic, contaminando o trecho de maré de cerca de 27 KM, incluindo as 13.35 KM inferiores. O decreto de consentimento proposto visa responsabilizar as partes por sua parcela no custo total da limpeza desse trecho do rio.
“Este acordo responsabiliza financeiramente as partes responsáveis pelo legado de poluição no rio Lower Passaic”, disse o procurador-geral adjunto Todd Kim, da Divisão de Meio Ambiente e Recursos Naturais do Departamento de Justiça. “O assentamento promoverá a limpeza do rio em benefício das comunidades que vivem ao longo dele e que foram historicamente sobrecarregadas pela poluição.”
“Este acordo continua nosso trabalho de assegurar que as partes responsáveis paguem ou conduzam a limpeza do rio Passaic. O acordo de hoje exige que os responsáveis pela contaminação paguem sua parte justa pela liberação de substâncias perigosas no Lower Passaic", disse a Administradora Regional Lisa F. Garcia, “Este trabalho nos aproxima de um rio mais limpo e saudável que pode ser usufruído por quem mora perto de suas margens.”
“Newark, Harrison e muitas outras comunidades vibrantes suportaram o impacto da poluição ao longo do rio Lower Passaic por muito tempo”, disse o primeiro procurador-assistente dos Estados Unidos, Vikas Khanna, para o distrito de Nova Jersey. “Este acordo é um passo importante. Ele apoiará esforços significativos de limpeza que restauram esta hidrovia histórica, avançam em um novo capítulo de uso responsável da terra e devolvem o rio ao povo de Nova Jersey.
Em nome da EPA, o DOJ apresentou o decreto de consentimento ao Tribunal Distrital dos EUA para o Distrito de Nova Jersey. Se e quando o acordo se tornar definitivo, a EPA espera usar os fundos do acordo para apoiar os esforços contínuos para limpar o local, especificamente as 13.35 KM inferiores e as 14.48 KM superiores que compõem toda a Área de Estudo do Rio Passaic de cerca de 27 KM. Além do decreto de consentimento proposto, a EPA chegou a vários acordos relacionados, incluindo um em que muitas partes investigaram os cerca de 27 KM do Lower Passaic River, outro em que a Occidental Chemical Corporation, uma parte potencialmente responsável, está projetando a limpeza escolhida para os 813.35 KM mais baixos, e vários acordos de recuperação de custos que resultaram em pagamentos à EPA de milhões de dólares.
Este decreto de consentimento está sujeito a um período de comentários públicos de 45 dias e está disponível para revisão pública no site do Departamento de Justiça.
Após o encerramento do período de comentários, o DOJ e a EPA avaliarão quaisquer comentários recebidos e prepararão uma resposta aos comentários. Se o governo ainda considerar o acordo apropriado, ele buscará a aprovação do decreto de consentimento pelo tribunal.
Para saber informações adicionais e histórico do site, visite a página do Perfil do Diamond Alkali Superfund.
Siga a Região 2 da EPA no Twitter e a página do Facebook. Para saber mais informações da Região 2 da EPA, visite nosso site.
Opa-Locka Man Sentenced to 30 Years in Prison for Producing Child Sexual Abuse MaterialRead the Press Release
MIAMI – Oscar Williams Jr., 30, of Opa-Locka, Fla., has been sentenced to 30 years in prison for extorting four girls into producing child sexual abuse material. He previously had been convicted on four counts of production of child sexual abuse material and one count of extortion.
Between November 2019 and September 2020, Williams extorted four minor girls into creating sexually explicit photos and videos of themselves and sending it to him over a social media application. Williams threatened to post the material on social media and pornography websites if they did not continue to send him said material. He demanded upward of 50 photos a day from some of the victims.
Williams was apprehended after the Federal Bureau of Investigation (FBI) executed a search warrant on his home after following the social media application Williams used to commit the crimes.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M. DeWitt, FBI, Miami Field Office, announced the sentence.
FBI, Miami Field Office, investigated the case. Assistant U.S. Attorneys Lacee Elizabeth Monk and Jessica Kahn Obenauf prosecuted it.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov under case number 20-cr-20087.
Omaha Man Sentenced for Firearm and Drug Trafficking CrimesRead the Press Release
Acting United States Attorney Steven A. Russell announced that Christian Genchi, 29, was sentenced today in federal court in Omaha, Nebraska, for possessing with intent to distribute methamphetamine and possessing a firearm during a drug trafficking crime. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Genchi to 120 months imprisonment on the drug charge and 60 months on the firearms charge, consecutive for a total sentence of 180 months. There is no parole in the federal system. After his release from prison, he will begin two, 5-year terms of supervised release, concurrent.
On August 9, 2021, Omaha Police searched a residence on the 38th block of Gordon Street, in Omaha. Officers located a safe inside the garage of the residence that contained approximately 3 pounds of methamphetamine and a H&R Model 733 revolver. The safe belonged to Genchi who acknowledged the presence of methamphetamine and the firearm in the safe.
This case was investigated by the Omaha Police Department.
Norfolk Woman Convicted of Two Counts of Embezzlement and Theft from Indian Tribal OrganizationRead the Press Release
Acting United States Attorney Steve Russell announced that Andrea Rodriguez, 42, of Norfolk, Nebraska, was sentenced today in Lincoln, Nebraska, by Judge John M. Gerrard for two counts of embezzlement and theft from Indian tribal organization less than $1,000. Rodriguez was sentenced to 4 years’ probation, a fine of $10,000 and $100 for special assessment fees. There is no parole in the federal system. Rodriguez was additionally ordered to pay $19,431.57 in restitution.
From at least July 2019 until the end of October 2020, Andrea Rodriguez was employed by the Ponca Tribe of Nebraska as the Director of the Ponca Tribe’s Domestic Violence Department. In this role, Rodriguez was responsible for handling and providing final authorizations for the allocation of monies which the Ponca tribe received as part of the 2018 Victims of Crime Act (“VOCA”) Assistance Grant. These monies were intended to be used to support Ponca tribal members who were dealing with domestic-violence related issues.
Andrea Rodriguez created false reimbursement requests indicating they were intended to pay for medical bills, grocery bills, and home furnishing and décor-related expenses for certain tribal domestic violence victims. She then signed the final authorization for the reimbursement of these bills from tribal grant funds. In truth, the bills being reimbursed were not expenses incurred by tribal domestic violence victims. Instead, they were for Rodriguez’s own personal bills.
In total, Rodriguez received approximately $19,431.57 in tribal funds as a result of this scheme.
“HHS-OIG will not tolerate any attempts to defraud federal programs, especially those involving vulnerable populations,” said Curt L. Muller, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General. “We are proud to work alongside our law enforcement partners to hold accountable any perpetrator of fraud.”
This case was jointly investigated by the U.S. Department of Justice Office of the Inspector General
and U.S. Department of Health and Human Services Office of the Inspector General,.
Newport Man Sentenced to Ten Years in Prison for Possession of Pipe BombsRead the Press Release
LITTLE ROCK—A Newport man has been sentenced to ten years in prison for possession of an unregistered firearm after attempting to sell pipe bombs. Darius Balentine, 28, was sentenced yesterday afternoon by United States District Judge Lee P. Rudofsky. His codefendant, Wayne Riley, 27, of Pleasant Plains, was sentenced in November and also received the statutory maximum sentence of ten years.
In September 2020, officers conducted a home visit at Balentine’s residence. Balentine was a convicted felon on active parole supervision with a search waiver on file, and officers had learned that he was in possession of a firearm. While searching the home, officers located a .380-caliber pistol and two CO2 bottles containing gun powder and roofing nails, equipped with fuses and designed as explosive devices.
Multiple witnesses confirmed the explosives belonged to Riley, who had dropped them off at Balentine’s home a few days prior. Investigators obtained text messages in which Riley stated he had ten pipe bombs and wanted to sell them for $100 each or $800 for all ten.
Balentine and Riley were indicted for possession of the pipe bombs in July 2021. Balentine was also charged with being a felon in possession of the .380-caliber pistol. Riley pleaded guilty in June 2022, and Balentine pleaded guilty two months later. In addition to the sentence of ten years imprisonment, which is the maximum allowed by law, both Balentine and Riley will serve three years of supervised release after their terms of incarceration.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Newport Police Department; Jackson County Sheriff’s Office; Arkansas State Police; and Arkansas Department of Community Corrections. The case was prosecuted by Assistant United States Attorney Jordan Crews.
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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
New York Attorney and Doctor Convicted of Defrauding New York City-Area Businesses and Their Insurance Companies of More Than $31 Million Through Massive Trip-And-Fall Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the convictions today in Manhattan federal court of GEORGE CONSTANTINE, a New York lawyer, and ANDREW DOWD, a New York orthopedic surgeon, for their participation in a massive trip-and-fall fraud scheme between 2013 and 2018. The jury convicted CONSTANTINE and DOWD following a three-week trial before U.S. District Judge Sidney H. Stein. Co-conspirators Marc Elefant, Sady Ribeiro, Adrian Alexander, Kerry Gordon, and Peter Kalkanis previously pled guilty before Judge Stein for their involvement in the same trip-and-fall fraud scheme. Co-conspirators Bryan Duncan, Ryan Rainford, and Robert Locust were convicted at trial in May 2019 before Judge Stein for their participation in the same trip-and-fall fraud scheme. Sentencing of CONSTANTINE and DOWD is scheduled for March 21, 2023.
U.S. Attorney Damian Williams said: “Today’s unanimous jury verdict holds George Constantine, a lawyer, and Andrew Dowd, a doctor, accountable for their participation in a widespread fraud scheme that preyed upon poor, vulnerable, and at-times homeless individuals. These individuals were recruited to stage trip-and-fall accidents and undergo medically unnecessary surgeries performed by Dowd that were designed to increase the value of fraudulent personal injury lawsuits filed by Constantine. Constantine and Dowd abused their professional licenses, degrees, and titles to line their own pockets with millions of dollars, and they now face the prospect of lengthy prison sentences for their crimes.”
According to the allegations contained in the Superseding Indictment and the evidence presented in Court during the trial:
Between 2013 and 2018, CONSTANTINE and DOWD, among others, engaged in an extensive fraud scheme, in which individuals (the “Patients”) were recruited to stage trip-and-fall accidents and then undergo medically unnecessary surgeries in order to increase the value of the fraudulent personal injury lawsuits that were filed on their behalf against the owners of the accident sites and/or insurance companies of the owners of the accident sites (the “Victims”). During the course of the fraud scheme, CONSTANTINE and DOWD, together with others known and unknown, attempted to defraud the Victims of more than $31 million.
CONSTANTINE and DOWD relied upon a team of “runners” who were paid cash kickbacks by CONSTANTINE to recruit the Patients to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area. Common accident sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes” in front of commercial establishments, such as gas stations, diners, and other businesses.
After their staged accidents, the Patients were directed to go to the hospital to obtain discharge papers and then were brought to CONSTANTINE’s office, by the carloads, where they met with CONSTANTINE briefly, after which CONSTANTINE would uniformly accept their case. CONSTANTINE failed to ask even the most basic questions during the intake process, including the locations of the purported accidents, and yet, would file fraudulent lawsuits, under penalty of perjury, on behalf of the Patients against the Victims. During the course of the scheme, CONSTANTINE filed nearly 200 fraudulent lawsuits and earned more than $5 million dollars in settlement fees from these fraudulent cases.
Following the Patients’ meeting with CONSTANTINE, the Patients were driven to various medical appointments, including visits with chiropractors, physical therapists, and to obtain MRIs, all of which was designed to justify the surgical procedures on their knees, shoulders, and backs that Patients were required to have as part of the scheme.
The Patients were then driven to meet with DOWD, an orthopedic surgeon, who would perform arthroscopic knee and shoulder surgeries on Patients within one to two weeks of first meeting the Patients. DOWD paid hundreds of thousands of dollars in kickbacks for these Patient referrals. DOWD performed no physical exams on the Patients and fabricated his medical reports to make it seem like the Patients were injured, when in reality they were not. To incentivize the Patients to get surgery, the Patients were paid approximately $1,000 after each surgery. During the course of the scheme, DOWD performed nearly 300 medically unnecessary surgeries and earned more than $3.2 million dollars. DOWD received approximately $10,000 per surgery.
The surgeries, as well as the other medical procedures, were funded by litigation funding companies, including a funding company owned by co-conspirator Adrian Alexander, even when the Patient maintained medical coverage through an insurance company or a government-subsidized program. The funding companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement. In exchange for funding Patients’ medical and legal costs, the funding companies charged the Patients high interest rates. The interest rates were so high that oftentimes the majority of the proceeds that were awarded in the fraudulent lawsuits were paid to the Funding Companies, CONSTANTINE, and other scheme participants, with the Patients receiving a much smaller percentage of the remaining recovery.
The Patients were overwhelmingly poor – individuals desperate enough to submit to surgeries in exchange for the small payments they would receive after surgery. It was common for the Patients to ask for food or money when they would appear for their intake meetings with CONSTANTINE. Patients were recruited from homeless shelters and often suffered from drug and alcohol addiction as well.
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CONSTANTINE, 60, of Plainview, New York, and DOWD, 67, of Miller Place, New York, were found guilty of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud, each of which carries a maximum term of 20 years in prison. DOWD was also found guilty of additional counts of conspiracy to commit mail and wire fraud, mail fraud, and wire fraud.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the New York Field Office of the Federal Bureau of Investigation. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Nicholas Folly, Danielle Kudla, Alexandra Rothman, and Nicholas Chiuchiolo are in charge of the prosecution.
Mississippi Man Sentenced to 150 Months in Federal Prison for Scheme to Fraudulently Obtain Off-Road Vehicles Valued at More Than $750,000 and Other Federal OffensesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge John W. deGravelles sentenced Christopher Jackson, age 37, of Ridgeland, Mississippi, to 150 months in federal prison following his convictions for conspiracy to transport stolen motor vehicles in interstate commerce and to sell stolen motor vehicles, and interstate transportation of a stolen motor vehicle. The Court further sentenced Jackson to serve three years of supervised release following his term of imprisonment, ordered Jackson to pay restitution in the amount of $712,280.30, and ordered Jackson to forfeit an additional $375,146 representing the proceeds of his crime.
The sentencing of Jackson stems from a lengthy federal investigation that began in 2019 based on a string of reported thefts all across the Southeast involving late model, high-end recreational vehicles, including those commonly referred to as ATVs or side-by-sides. The investigation spanned numerous jurisdictions across a dozen different states, and ultimately revealed that Jackson was responsible for defrauding forty-nine (49) victims out of their vehicles. Through his fraudulent scheme, Jackson illegally obtained possession of more than four dozen vehicles worth more than $780,000.
According to admissions made as a part of his guilty plea, Jackson would search online ads for used ATVs being offered for sale. He would contact the seller, using an alias, and generally using a different phone number each time, and negotiate to buy the vehicle, indicating that he would pay off the seller’s remaining balance on the loan associated with the ATV. During his communications with the seller, Jackson would learn the name of the bank where the seller had financed the vehicle and the seller’s loan number. Then, using the loan number and other identifying information, Jackson would send fraudulent payment information to the seller’s bank (e.g., a purported payment with the bank’s actual routing number but a fraudulent account number), intending to temporarily signal to the bank’s automated payment system that he had successfully paid the seller’s remaining loan balance.
Before the bank realized that Jackson’s purported payment had not cleared, Jackson would convince the seller that he had paid the seller’s loan and persuade the seller to release the ATV to a driver. Jackson would typically avoid meeting the victims face-to-face and instead relied on other individuals, many of whom he would hire over the internet, to meet the victims, take possession of the vehicles, and transport them pursuant to Jackson’s directions. As he quickly re-sold the stolen vehicles, for cash, Jackson caused the vehicles to be transported across state lines, in furtherance of the scheme.
In a related case, Jackson was also sentenced to federal prison for possession of a firearm by a convicted felon. The federal firearms case arose from his June 23, 2021 arrest in Ridgeland, Mississippi, pursuant to a warrant that was issued for his arrest in the fraud case. At the time he was arrested, Jackson knowingly possessed a Smith & Wesson 9mm pistol, which had previously been reported stolen, despite the fact that Jackson had previously been convicted of a felony offense and was therefore prohibited from possessing a firearm.
This investigation was led by the United States Secret Service, with substantial assistance from the Livingston Parish Sheriff’s Office, the Louisiana State Police, the Tuscaloosa County (Alabama) Sheriff’s Office, the Mississippi Bureau of Investigation, the Ridgeland (Mississippi) Police Department, and the Madison County (Mississippi) District Attorney’s Office, among other agencies.
This matter was prosecuted by Assistant United States Attorney Alan A. Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office, and Assistant United States Attorney Caroline B. Gardner.
Marion County Convicted Felon Indicted for Possession of AmmunitionRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Mario Jerard Delancy (33, Ocala) with possession of ammunition by a convicted felon. If convicted, Delancy faces up to 10 years in federal prison.
According to the indictment, on June 4, 2022, Delancy knowingly possessed Federal ammunition, Sellier and Bellot ammunition, and Blazer ammunition. At time, Delancy had a previous conviction for felony battery. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Ocala Police Department. It will be prosecuted by Assistant United States Attorney Sarah Janette Swartzberg.
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.
Man Who Sparked St. Louis Police Chase Charged with Gun CrimeRead the Press Release
ST. LOUIS – A man who led St. Louis police on a high-speed chase Thursday was charged Friday with a federal gun crime.
Anthony L. Rogers, 35, of St. Louis, was charged by complaint in U.S. District Court in St. Louis with being a felon in possession of a firearm.
The criminal complaint says the St. Louis Metropolitan Police Department was looking for Rogers, and a GMC Yukon SUV that he was driving, in connection with a November 30 homicide in St. Louis. Police spotted the Yukon Thursday in St. Louis and officers attempted to conduct a traffic stop, the complaint says. Rogers refused to pull over and instead drove away, the complaint says.
Police followed Rogers into St. Louis County, where he threw a Glock 9mm pistol out of the window, and then north on Interstate 55 into St. Louis, where he discarded the pistol’s magazine, the complaint says. The pursuit continued through downtown St. Louis and onto westbound Interstate 70. Rogers exited the interstate at Riverview Boulevard and pulled to the curb, where he was arrested, the complaint says
The firearm charge carries a penalty of up to 15 years in prison, a $250,000 fine, or both.
Charges set forth in a complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Ryan Finlen is prosecuting the case.
Lynnwood, Washington man sentenced to prison for making multiple threatening phone calls to businesses in four states espousing racial hatredRead the Press Release
Seattle – A 37-year-old Lynnwood, Washington, man was sentenced today in U.S. District Court in Seattle to two years in prison for making interstate threats and for a hate crime: interference with a Federally Protected Activity, announced U.S. Attorney Nick Brown. Joey David George has been in federal custody since his arrest on July 22, 2022. George made threatening telephone calls from his home in Lynnwood, to grocery stores in Buffalo, New York, restaurants in California and Connecticut, and a marijuana dispensary in Maryland. At the sentencing hearing U.S. District Judge Ricardo S. Martinez said “In today’s day and age, words are the weapons in the arsenal of the bully, the bigot, the racist and the homophobe…These words seep into the psyche of the victims and cause incredible pain that might never go away.”
“While Mr. George suffers from some mental health impairments, his conduct in this case was deliberate and motivated by racial hatred,” said U.S. Attorney Nick Brown. “He wanted people to feel the terror that they would be targeted because of the color of their skin. Mr. George used the tragedy of the Buffalo grocery store shooting to make his threats even more searing. We take these matters very seriously.”
According to records in the case, on July 19, 20, and 21, 2022, George telephoned multiple grocery stores in Buffalo, New York and threatened to shoot Black people in the stores. George told the staff at the store to “take him seriously” and ordered the store to clear out the customers as he was “nearby” and “preparing to shoot all Black customers.” One store closed. The threats followed a racially motivated shooting at another Buffalo grocery store in May 2022. Law enforcement traced the phone number and identified George as the person who made the calls.
In addition to the calls to Buffalo, George admits that in May 2022, he called a restaurant in San Bruno, California. In that call George allegedly threatened to shoot Black and Hispanic patrons in the restaurant. He told law enforcement that he made the threat to strike fear in the Bay Area Black community.
On September 11, 2021, George called a cannabis dispensary in Rockville, Maryland, and used racial slurs as he threatened to shoot and kill Black people at the business. George admitted his racial hate to local law enforcement who used caller ID to trace the call. The dispensary shut down and hired extra security, causing a loss of over $50,000. On that same day George also called a Denny’s restaurant in Enfield, Connecticut and threatened Black patrons at the restaurant.
In asking for a sentence at the top of the guidelines range prosecutors noted that the calls had an impact beyond just a day of business disruption. “For about a year, George had been calling other businesses around the country and threatening to kill Blacks and others. His calls caused terror. They caused police to rush to respond to the threats, leaving them unavailable to attend to emergencies and other law enforcement matters. And they disrupted business, and left employees shaken about the prospect of returning to work.”
George has agreed to pay $13,088 in restitution to the impacted businesses. He will be on three years of supervised release when he finishes his prison sentence.
The case was investigated by the FBI with the assistance of multiple local police departments. The case is being prosecuted by Assistant United States Attorneys Thomas Woods and Rebecca Cohen in consultation with the Department of Justice Civil Rights Division.
Lino Lakes Felon Sentenced to 24 years in Prison for Methamphetamine Trafficking and Firearms Violations in Connection to Kidnapping, Torture CaseRead the Press Release
MINNEAPOLIS – A Lino Lakes man has been sentenced to 289 months in prison followed by 10 years of supervised release for drug trafficking and firearms violations in connection to the December 2021 kidnapping and torture of a man, announced U.S. Attorney Andrew M. Luger.
According to court documents, on April 11, 2021, officers with the Worthington Police Department conducted a traffic stop of a vehicle driven by Jose Angel Chapa-Aguilera, 24. The traffic stop led to a search of the vehicle. Officers located a bag containing a loaded 9 mm semi-automatic pistol and more than two pounds of methamphetamine sealed inside four zip-lock bags in the spare tire compartment.
According to court documents, on December 20, 2021, at his Brooklyn Park residence, Chapa-Aguilera confronted a man about a drug debt. During the confrontation, Chapa-Aguilera brandished a handgun, ordered the man to the ground, tied his hands behind his back, and proceeded to beat and torture the victim for hours using a heated knife and a pipe, due to a perceived drug debt. During the torture, Chapa-Aguilera demanded money from the victim. Before leaving the residence, Chapa-Aguilera barricaded the victim in a crawlspace under the house. The victim was later able to escape and contact law enforcement. The victim suffered extensive injuries, including numerous burns, broken ribs, a large laceration above his eye and required a blood transfusion. Law enforcement seized approximately three pounds of methamphetamine from Chapa-Aguilera’s residence during a search warrant executed shortly thereafter.
According to court documents, on January 7, 2022, law enforcement located Chapa-Aguilera driving a purple-camouflage Humvee in the Twin Cities. After a high-speed pursuit, officers disabled the vehicle and pulled Chapa-Aguilera from the Humvee. Officers also recovered from the vehicle a 9mm semi-automatic handgun and several 9mm rounds of ammunition.
Chapa-Aguilera was sentenced yesterday in U.S. District Court by Judge Joan N. Ericksen. Chapa-Aguilera pleaded guilty on September 6, 2022, to one count of possession of a firearm in furtherance of a drug trafficking crime and one count of possession with the intent to distribute methamphetamine.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Hennepin County Violent Offender Task Force (VOTF), the Brooklyn Park Police Department, and the Worthington Police Department.
Assistant U.S. Attorney Allen A. Slaughter prosecuted the case.
Las partes acuerdan pagar $150 millones para la limpieza de la cuenca inferior del río Passaic en Nueva JerseyRead the Press Release
La Agencia de Protección Ambiental (EPA) de Estados Unidos y el Departamento de Justicia (DOJ) de Estados Unidos han anunciado hoy una propuesta de decreto de consentimiento con 85 partes potencialmente responsables, exigiéndoles el pago de un total de $150 millones para apoyar los trabajos de limpieza y resolver su responsabilidad por el vertido de sustancias peligrosas en la cuenca inferior del río Passaic, que forma parte del sitio Superfund Diamond Alkali en Newark, Nueva Jersey.
La EPA y el DOJ alegaron que estas 85 partes son responsables del vertido de sustancias peligrosas en la cuenca inferior del río Passaic, que ha contaminado un tramo de marea de 17 millas, incluyendo las 8,3 millas inferiores. El decreto de consentimiento propuesto pretende hacer responsables a las partes de su participación en el costo total de la limpieza de este tramo del río.
"Este acuerdo hace que las partes responsables respondan financieramente por el legado de contaminación en la cuenca inferior del río Passaic," dijo el fiscal general adjunto Todd Kim de la División de Medio Ambiente y Recursos Naturales del Departamento de Justicia. "El acuerdo hará avanzar la limpieza del río en beneficio de las comunidades que viven junto a él y que históricamente se han visto perjudicadas por la contaminación."
"Este acuerdo continúa nuestra labor de asegurar que las partes responsables paguen o lleven a cabo la limpieza del río Passaic. El acuerdo de hoy exige a los responsables de la contaminación que paguen la parte que les corresponde por el vertido de sustancias peligrosas en la cuenca inferior del río Passaic," declaró la administradora regional Lisa F. García. "Este trabajo nos acerca a un río más limpio y sano que puedan disfrutar quienes viven cerca de sus orillas."
"Newark, Harrison y muchas otras pujantes comunidades han soportado durante demasiado tiempo el peso de la contaminación a lo largo de la cuenca inferior del río Passaic," declaró el primer fiscal federal adjunto del distrito de Nueva Jersey, Vikas Khanna. "Este acuerdo es un importante paso adelante. Apoyará los esfuerzos de limpieza necesarios para recuperar este cauce histórico, impulsará un nuevo capítulo de uso responsable del suelo y devolverá el río a la población de Nueva Jersey."
En nombre de la EPA, el DOJ presentó el decreto de consentimiento ante el Tribunal de Distrito de Estados Unidos para el Distrito de Nueva Jersey. En caso de que el acuerdo sea definitivo, la EPA espera utilizar los fondos del acuerdo para apoyar los esfuerzos en curso para limpiar el sitio, concretamente las 8,3 millas inferiores y las 9 millas superiores que conforman el área de estudio de 17 millas de la cuenca inferior del río Passaic. Además del decreto de consentimiento propuesto, la EPA ha celebrado varios acuerdos relacionados, incluido uno por el que muchas partes investigaron las 17 millas de la cuenca inferior del río Passaic, otro por el que Occidental Chemical Corporation, una parte potencialmente responsable, está diseñando la limpieza elegida para las 8,3 millas inferiores, y varios acuerdos de recuperación de costos que resultaron en pagos de millones de dólares a la EPA.
Este decreto de consentimiento está sujeto a un periodo de comentarios del público de 45 días y se encuentra a disposición para revisión pública en el sitio web del Departamento de Justicia.
Una vez finalizado el periodo de comentarios, el DOJ y la EPA evaluarán los comentarios recibidos y elaborarán una respuesta. Si el gobierno sigue considerando adecuado el acuerdo, solicitará la aprobación del decreto de consentimiento por parte del tribunal.
Para más información y antecedentes del sitio, visite la página de perfil del Superfund Diamond Alkali.
Siga a la Región 2 de la EPA en Twitter y en Facebook. Para obtener más información sobre la Región 2 de la EPA, visite nuestro sitio web.
Kings County Man Indicted for Submitting over $8,000,000 in Fraudulent Sleep Study Claims One Year After His Brother was Indicted for Similar MisconductRead the Press Release
FRESNO, Calif. — A federal grand jury returned an 11-count indictment today against Jeremy Gober, 42, of Hanford, charging him with health care fraud and aggravated identity theft, United States Attorney Phillip A. Talbert announced.
According to court documents, Jeremy Gober owned and operated the Got Sleep center, which was a sleep clinic in Fresno and Orange County, California. Sleep clinics perform diagnostic sleep studies to identify disorders like sleep apnea and narcolepsy. From August 2016 through July 2020, Jeremy Gober caused Got Sleep to bill Medicare and Medi-Cal for thousands of sleep studies, totaling over $8,000,000, that the company did not actually perform on patients. This included sleep studies where the patients had died before the dates on which the studies were purportedly performed.
This case is the product of an investigation by the United States Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, and the California Department of Health Care Services. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If convicted, Jeremy Gober faces a maximum statutory penalty of 10 years in prison and $250,000 fine for the health care fraud and an additional, mandatory two years in prison for the identity theft. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations. Jeremy Gober is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jeremy Gober’s brother, Travis Gober, was previously charged with health care fraud and identity theft related to other sleep clinics in the Central Valley in October 2021: https://www.justice.gov/usao-edca/pr/kings-county-man-indicted-submitting-over-10-million-fraudulent-claims-diagnostic-sleep.
gober_jeremy_robert_indictment.pdfKanawha County Man Pleads Guilty to Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Jamon L. Woodson, 39, of Dunbar, pleaded guilty today to being a felon in possession of ammunition in connection with a shooting outside a Charleston business.
According to court documents and statements made in court, on June 30, 2022, Woodson had stopped his vehicle outside Jet Life Apparel on Leon Sullivan Way in Charleston and fired a pistol in the direction of the store. Following the shooting, law enforcement officers recovered a 9mm shell casing from the street and found a bullet hole at the entrance to Jet Life Apparel.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Woodson knew he was prohibited from possessing ammunition because of his felony conviction for conspiracy to distribute more than 500 grams of cocaine and a quantity of marijuana in United States District Court for the Northern District of West Virginia on January 7, 2011.
Following the shooting, officers obtained a search warrant for Jet Life Apparel’s video surveillance system. The video surveillance footage showed Kevin Gerard Denson, 36, of Charleston, carrying a Smith & Wesson, model M&P 15, 5.56-caliber rifle and Jonathan Kennedy, 41, of St. Albans, carrying a Dickinson, model XXPA, 12-gauge shotgun at the time of the altercation with Woodson. Officers recovered both firearms from a vehicle in an alley near Jet Life Apparel. Each firearm was loaded with a high-capacity drum magazine. Denson and Kennedy previously pleaded guilty to being a felon in possession of a firearm and await sentencing.
Woodson is scheduled to be sentenced on April 12, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Nowles Heinrich is prosecuting 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-183.
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Justice Department Secures Settlement with San Bernardino City School District to Protect the Rights of English Learner StudentsRead the Press Release
The Justice Department announced today it has secured a settlement agreement with the San Bernardino City Unified School District to resolve the department’s investigation into the district’s educational program for English learners. The department investigation, conducted jointly by the Civil Rights Division and the U.S. Attorney’s Office for the Central District of California, concluded that the district was not providing English learners with the necessary services and supports to become fluent in English, or to meaningfully participate in core content classes like math, science or social studies. The district has agreed to improve its services so that English learners have access to the same crucial educational opportunities as their peers.
“Education is a fundamental part of achieving the American dream, but for many students learning English across the country, their school districts do not provide the services and support they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will fight to hold districts to their obligations under federal law to provide all their students, regardless of language ability, with a full and meaningful education.”
“Federal laws protect the rights of English learners to fully participate in the classroom,” said U.S. Attorney Martin Estrada for the Central District of California. “Today’s agreement is an important step in ensuring that students learning English receive the programming they need to progress towards fluency and to participate in school on an equal basis with their peers. This agreement will improve the services and support offered to English learners.”
The department’s investigation identified failures to ensure that all teachers providing English language instruction were qualified. In addition, teachers of core subjects like math, science and social studies were often not trained and qualified to provide the supports that English learner students need to learn grade-level material, among other concerns.
Under the settlement, the district will provide language instruction to English learners to help them develop fluency in English, and will ensure that its teachers are trained and certified to provide that instruction. The district will also provide training to teachers of core classes, such as math, science and social studies, on the use of tools that help English learners understand the content of those courses. And The district will also effectively monitor student progress and identify whether students need additional services or supports to guarantee that English learners have access to gifted and talented programs and advanced courses, including Advanced Placement classes. The department will monitor the district’s compliance with the settlement for three years.
The Spanish version of the press release is available here. The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.
Justice Department Secures Settlement with San Bernardino City School District to Protect the Rights of English Learner StudentsRead the Press Release
LOS ANGELES – The Justice Department announced today it has secured a settlement agreement with the San Bernardino City Unified School District to resolve the department’s investigation into the district’s educational program for English learners.
The department investigation, conducted jointly by the United States Attorney’s Office and the Justice Department’s Civil Rights Division, concluded that the district was not providing English learners with the necessary services and supports to become fluent in English, or to meaningfully participate in core content classes like math, science or social studies.
The district has agreed to improve its services so that English learners have access to the same crucial educational opportunities as their peers.
“Federal laws protect the rights of English learners to fully participate in the classroom,” said United States Attorney Martin Estrada. “Today’s agreement is an important step in ensuring that students learning English receive the programming they need to progress towards fluency and to participate in school on an equal basis with their peers. This agreement will improve the services and support offered to English learners.”
“Education is a fundamental part of achieving the American dream, but for many students learning English across the country, their school districts do not provide the services and support they need,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will fight to hold districts to their obligations under federal law to provide all their students, regardless of language ability, with a full and meaningful education.”
The department’s investigation identified failures to ensure that all teachers providing English language instruction were qualified. In addition, teachers of core subjects like math, science and social studies were often not trained and qualified to provide the supports that English learner students need to learn grade-level material, among other concerns.
Under the settlement, the district will provide language instruction to English learners to help them develop fluency in English, and it will ensure that its teachers are trained and certified to provide that instruction. The district will also provide training to teachers of core classes – such as math, science and social studies – on the use of tools that help English learners understand the content of those courses. And the district will effectively monitor student progress and identify whether students need additional services or supports to guarantee that English learners have access to gifted and talented programs and advanced courses, including Advanced Placement classes. The department will monitor the district’s compliance with the settlement for three years.
Assistant United States Attorney Katherine Hikida of the Civil Division’s Civil Rights Section and attorneys from the Educational Opportunities Section of the Justice Department’s Civil Rights Division handled this matter.
Information about the Civil Division’s Civil Rights Section is available on its website at https://www.justice.gov/usao-cdca/civil-division/civil-rights. Individuals in the seven counties of the Central District of California may report possible civil rights violations to the United States Attorney’s Office by calling (213) 894-2879 or emailing [email protected].
Judge Sentences Heroin Distributor to More Than 8 Years in PrisonRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 100 months’ imprisonment followed by four years of supervised release on his conviction for conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Sean McHenry, 30, of Pittsburgh, Pennsylvania.
According to information presented to the court, in 2018, the Federal Bureau of Investigation began investigating a heroin trafficking organization that operated throughout the greater Pittsburgh area. Beginning in February of 2019 and continuing through September of 2019, the FBI received authorization to conduct a Title III wiretap investigation into the organization. McHenry, as one of the leaders of this multi-member drug trafficking organization, was intercepted orchestrating and directing the distribution of heroin throughout Pittsburgh by various members of the organization. In addition to the intercepted communications, agents seized heroin, firearms, and bulk United States Currency from members of the organization, including McHenry. In sentencing, Judge Stickman referenced the seriousness of the offense as well as McHenry’s criminal history.
Assistant United States Attorney Mark V. Gurzo prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation, Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police for the investigation leading to the successful prosecution of McHenry.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Iowa Man Sentenced to 41 Months for Threatening United States District JudgeRead the Press Release
PHOENIX, Ariz. – Ted Earl Severeid, III, 40, of Des Moines, Iowa, was sentenced on December 5, 2022, by United States District Judge Douglas L. Rayes to 41 months in prison, to run consecutively with previously imposed prison terms in other criminal cases. Severeid previously pleaded guilty to Threatening to Assault a United States Judge.
While incarcerated on other charges, Severeid mailed a threatening letter to a United States Judge, wherein he threatened to violently assault the victim. In sentencing Severeid, Judge Rayes noted that Severeid’s communication was “not an empty threat” and that Severeid’s history, combined with his decision to commit new offenses while incarcerated, required the imposition of a consecutive prison sentence in order to protect the public from future crimes.
Upon completion of his sentence, Severeid will be placed on supervised release for three years. During his term of supervision, Severeid will be prohibited from contacting the victim.
The United States Marshals Service conducted the investigation in this case. Assistant U.S. Attorneys Joseph E. Koehler and Christine D. Keller, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-02308-PHX-DLR
RELEASE NUMBER: 2022-223_Severeid# # #
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.
Illegal Firearm Possession Lands Convicted Felon from Norman in Federal Prison for a DecadeRead the Press Release
OKLAHOMA CITY – Earlier this week, OCTAVIO JUAN SANCHEZ, 36, of Norman, was sentenced to serve ten years, the statutory maximum sentence, in federal prison for illegal possession of a firearm by a convicted felon, announced U.S. Attorney Robert J. Troester.
On July 22, 2021, a federal grand jury returned a one-count Indictment that alleged illegal possession of a firearm. Federal law prohibits a person who has previously been convicted of felony from possessing a firearm or ammunition. On November 16, 2021, Sanchez was tried by a jury and found guilty.
Public records reflect that, on May 14, 2021, as part of an investigation stemming from a claim of domestic violence, Norman Police Department officers executed a search warrant at Sanchez’s residence. While searching the residence, officers found a firearm hidden in a trash can in the kitchen along with a loaded 16-round magazine. Officers also located more than eight pounds of marijuana, scales, and several vacuum baggies containing marijuana residue. Prior to being found in possession of the firearm, Sanchez had been convicted of multiple felony offenses.
On December 14, 2022, U.S. District Judge Bernard M. Jones sentenced Sanchez to serve 120 months in federal prison, followed by three years of supervised release. In support of this sentence, Judge Jones cited Sanchez’s previous criminal history which includes convictions for assault with a deadly weapon, possession of a deadly weapon, possession of controlled substances, and burglary. Sanchez is currently charged with murder in the first degree and unlawful removal of a dead body, in Cleveland County case number CF-2022-860.
In a separate case, public records further reflect that, on June 8, 2022, a federal grand jury returned a multi-count Indictment against Sanchez alleging conspiracy, fraud, and identity theft related to his misuse of Social Security benefits and tax stimulus payments for the benefit of a deceased relative. A jury trial in this case is currently scheduled to begin in February 2023. The public is reminded that the charges contained in this Indictment are merely accusations, and that Sanchez is presumed innocent until and unless proven guilty.
The firearm case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Norman Police Department. Assistant U.S. Attorneys Mary E. Walters and David R. Nichols, Jr. prosecuted the case.
This case is part of “Operation 922,” the Western District of Oklahoma’s local implementation of the national Project Safe Neighborhoods and Project Guardian initiatives to reduce gun violence and enforce federal firearms laws. “Operation 922” prioritizes prosecution of federal gun crimes connected to domestic violence.
Reference is made to public filings for more information.
Holdrege, Nebraska Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Steven A. Russell announced that Josiah Negley, 35, was sentenced today in federal court in Omaha, Nebraska, for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine. United States District Judge Robert F. Rossiter Jr. sentenced Negley to 120 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a five-year term of supervised release.
On March 30, 2019, law enforcement obtained a search warrant for a building in Kearney, Nebraska. Negley was inside the building during the search, which resulted in the seizure of 117 grams of methamphetamine. In addition, the co-defendants indicated they all went to Colorado to get pounds of methamphetamine to bring back to Kearney, Nebraska, to distribute.
Co-defendant Rodney Randolph has pled guilty and is scheduled for sentencing on December 21, 2022. Nicole Peterson was sentenced to 120 months imprisonment followed by 5 years of supervised release.
This case was investigated by the Nebraska State Patrol and the Kearney Police Department.
Harrisburg Man Sentenced to 18 Years in Prison for Cocaine TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ricardo Soto-Delgado, age 48, of Harrisburg, Pennsylvania, was sentenced on December 15, 2022, to 18 years’ imprisonment by United States District Court Judge Christopher C. Conner for cocaine trafficking.
According to United States Attorney Gerard M. Karam, Soto-Delgado entered a guilty plea for his role in a conspiracy to have kilograms of cocaine shipped into Harrisburg, Pennsylvania through the United States Postal Service. Between April 2018 and November 2019, Soto-Delgado had approximately 35 kilos of cocaine shipped from Puerto Rico to various addresses in Cumberland and Dauphin Counties. Postal Inspectors uncovered the drug trafficking operation after they intercepted parcels destined for the addresses.
His codefendant, Becky Cro, pleaded guilty to assisting Soto-Delgado. She was sentenced to six months in prison.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The case was investigated by the U.S. Postal Inspection Service and the Pennsylvania State Police. Assistant U.S. Attorney Michael A. Consiglio prosecuted the case.
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Guatemalan Man Sentenced for Harmful Marijuana Cultivation Operation in Sequoia National ForestRead the Press Release
FRESNO, Calif. — Oscar Alfredo Castanaza-Ortega (“Castanaza”), 37, a Guatemalan national, was sentenced today to 90 months in prison for conspiring to manufacture, distribute, and possess with intent to distribute 2,864 marijuana plants in the Twin Springs area of the Sequoia National Forest, United States Attorney Phillip A. Talbert announced. The court also ordered Castanaza-Ortega to pay $7,819 in restitution to the Forest Service for the damage caused by his marijuana cultivation activities and ordered the forfeiture of his firearm and ammunition.
According to court documents, when law enforcement officers arrived in the grow site, Castanaza was in possession of a loaded .38 caliber firearm with the firing hammer cocked back in its firing position and a box of .38 caliber ammunition. Castanaza admitted that he was getting paid $100 a day to water and trim the plants.
The marijuana cultivation operation caused extensive damage to the public land and natural resources. Native trees, brush and other vegetation were cut down to make room for the marijuana plants and large amounts of fertilizers and pesticides were found in the area. Thousands of pounds of trash, irrigation hose, and camping equipment were found at the site. A helicopter will be needed to remove all of the trash, irrigation lines, and other debris. Castanaza was ordered to pay $7,819.17 in restitution to the U.S. Forest Service for the environmental damage.
This case was the product of an investigation by the U.S. Forest Service with assistance from the California Department of Justice’s Campaign Against Marijuana Planting (CAMP), and Tulare County Sheriff’s Office. Assistant United States Attorney Karen A. Escobar prosecuted the case.
Georgia man pleads guilty to federal hate crimeRead the Press Release
ATLANTA - Larry Edward Foxworth has pleaded guilty in federal court to shooting into multiple Clayton County convenience stores to kill those inside based upon their race and ethnicity.
Foxworth used a firearm to commit a heinous hate crime that traumatized his victims as well as the communities who rely on these businesses,” said U.S. Attorney Ryan K. Buchanan. “The vigorous prosecution of such abhorrent acts of violence and intimidation with the assistance of our federal partners is a top priority for this office.”
“No one should have to live in fear of being targeted for deadly violence because they are Black or Arab American,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This defendant, who professed support for a white supremacist organization, is being held accountable for an abhorrent act of violence motivated by race and national origin. This conviction should make clear that the Justice Department stands ready to prosecute any individual who carries out a violent hate-motivated crime in our country.”
“Hate-fueled violent crimes ripple through communities, making entire groups feel unsafe and unwelcome, spawning fear and anger”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Prosecuting hate crimes is a top priority of the FBI. We will not back down from obtaining justice for victims of hate-based violence.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: At approximately 2:35 a.m. on July 30, 2021, Foxworth fired numerous rounds from a Glock pistol through a window and door of a gas station convenience store located in Jonesboro, Georgia. Just minutes later, at approximately 2:57 a.m., he again fired multiple rounds from the same handgun through the windows and door of a different gas station convenience store located nearby. Both stores were open and occupied when Foxworth shot into the businesses. Thankfully no one was injured during either shooting.
Clayton County Police Department officers arrested Foxworth shortly after the second attack. Foxworth admitted that he intended to kill people inside and outside the stores. He also made multiple statements to law enforcement officers that he was targeting African American individuals and others whom he perceived to be Arab. Foxworth expressed hope that he had killed his targets and professed beliefs in white supremacist ideology and an allegiance to a white supremacist organization.
Sentencing for Larry Edward Foxworth, 48, of Jonesboro, Georgia, is scheduled for March 16, 2023, at 10:00 a.m. Foxworth pleaded guilty to a federal hate crime and use of a firearm during the commission of that crime of violence before U.S. District Judge Mark H. Cohen on December 15, 2023.
This case is being investigated by the Federal Bureau of Investigation and Clayton County Police Department.
Assistant U.S. Attorney Brent Alan Gray and Trial Attorney Alec C. Ward of the Department of Justice’s Civil Rights Division are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Georgia Man with Ties to White Supremacist Organization Pleads Guilty to Federal Hate Crime for Racially Motivated ShootingsRead the Press Release
A Georgia man pleaded guilty today to a federal hate crime and a firearms violation for shooting into two Clayton County convenience stores in an attempt to kill those inside because of their race and ethnicity.
According to information presented in court, on July 30, 2021, Larry Edward Foxworth, 48, of Jonesboro, fired numerous rounds from a Glock pistol through a window and door of a Shell gas station convenience store on Tara Boulevard in Jonesboro. Just minutes later, Foxworth again fired multiple rounds from the same handgun through the windows and door of a nearby BP gas station convenience store. Both stores were open for business and occupied when Foxworth fired the shots. No one was injured in either shooting, but Foxworth admitted that he intended to kill people inside the stores and on the premises.
Clayton County Police Department officers arrested Foxworth shortly after the second attack. While in police custody at the scene, Foxworth made multiple statements explaining that he was targeting Black people and others who he perceived to be Arab. Foxworth expressed hope that he had killed his targets and professed belief in white supremacist ideology and an allegiance to a white supremacist organization.
“No one should have to live in fear of being targeted for deadly violence because they are Black or Arab American,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant, who professed support for a white supremacist organization, is being held accountable for an abhorrent act of violence motivated by race and national origin. This conviction should make clear that the Justice Department stands ready to prosecute any individual who carries out a violent hate-motivated crime in our country.”
“Foxworth used a firearm to commit a heinous hate crime that traumatized his victims as well as the communities who rely on these businesses,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “The vigorous prosecution of such abhorrent acts of violence and intimidation with the assistance of our federal partners is a top priority for this office.”
“Hate-fueled violent crimes ripple through communities, making entire groups feel unsafe and unwelcome, spawning fear and anger,” said Special Agent in Charge Keri Farley of the FBI Atlanta Field Office. “Prosecuting hate crimes is a top priority of the FBI. We will not back down from obtaining justice for victims of hate-based violence.”
The plea agreement filed in court calls for a sentence of between 20 and 25 years in prison. Sentencing is scheduled for March 16, 2023.
The FBI and Clayton County Police Department investigated the case.
Assistant U.S. Attorney Brent Alan Gray for the Northern District of Georgia and Trial Attorney Alec C. Ward of the Civil Rights Division’s Criminal Section are prosecuting the case.
Former supervisor in local tax office charged with committing fraud while waiting to report to federal prison on bribery and blackmail chargesRead the Press Release
ATLANTA - Gerald D. Harris, a former supervisor in DeKalb County’s Tax Commissioner’s Office, has been charged with wire fraud for falsely claiming that he could register a stolen vehicle by bribing an employee in the tax office.
“In 2020, Harris pleaded guilty to bribery and blackmail for accepting cash to unlawfully register vehicles and for extorting one of the individuals who had paid him bribe money,” said U.S. Attorney Ryan K. Buchanan. “Based on the COVID-19 pandemic, the sentencing judge compassionately gave Harris almost six months to report to prison. Rather than use that time to arrange his affairs – in a brazen display of audacity, Harris allegedly executed a separate wire fraud scheme.”
“Harris clearly had no remorse after his bribery and blackmail conviction, as he didn’t skip a beat in allegedly implementing a separate wire fraud scheme immediately after he was sentenced,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully, this charge will send the message that the FBI takes fraud schemes very seriously and just because you have been convicted of one crime does not mean that you are immune from further charges.”
“Unfortunately, Harris did not learn from his previous bad conduct. Instead of using the court's grace to better his situation, he brazenly used that time to steal money. Hopefully, this indictment will send a clear message that this conduct will not be tolerated,” DeKalb County District Attorney Sherry Boston.
“The Georgia Department of Revenue maintains a close working partnership with all the county Tax Commissioners offices as they serve as title and registration agents for the state. We find it unacceptable and unfortunate that any individual would violate the trust provided them to perform their official duties. The Agency is committed to assisting with any investigation into reported violations of this trust,” said Frank O'Connell, Commissioner, Georgia Department of Revenue.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: The DeKalb County Tax Commissioner’s Office (the “Tax Commissioner’s Office”) is responsible for the billing and collection of property taxes. The Motor Vehicle Division of the Tax Commissioner’s Office handles all aspects of motor vehicle registrations, including: (a) managing the collection of motor vehicle taxes; (b) issuing vehicle tags and titles; and (c) processing vehicle registration renewals for citizens and businesses located in the county.
From July 2017 to November 2019, Harris served as the Supervisor of Tax Tag Clerks for the Tax Commissioner’s Office. Harris unlawfully exploited his position by accepting more than $35,000 bribe payments from customers to unlawfully register vehicles or renew vehicle registrations.
After being fired from the Tax Commissioner’s Office, Harris also attempted to blackmail one of the individuals who had been paying him bribe money. In December 2019, Harris sent a series of text messages to the individual stating that he was under investigation by the FBI; that the FBI had a video of Harris with the individual; that “[a]ll of us can be in trouble”; that Harris needed to know “how much” money he would receive to not share this information to the FBI; and that Harris was “not going to prison empty handed. It’s that simple.”
Based on this conduct, the U.S. Attorney charged Harris with bribery and blackmail via a criminal information. Harris pleaded guilty to both charges and, on November 10, 2020, received a sentence of two years in prison. The Court gave Harris approximately six months to report to prison in consideration of safety protocols resulting from the COVID-19 pandemic.
In early March 2021, while awaiting his report to federal prison, Harris met an individual (“Person 1”). Even though Harris had been terminated from his position with the Tax Commissioner’s Office, Harris claimed that he had the key to the office and that he ran the office. Harris also falsely claimed to Person 1 that in exchange for a payment of between $1,200 and $1,500 per vehicle Harris could obtain vehicle tags for stolen vehicles, and that for a payment of $4,000 Harris could obtain a Commercial Driver’s License for Person 1.
On March 22, 2021, Person 1 asked Harris about obtaining a tag for a vehicle, even though Person 1 did not have the vehicle’s title or any other documentation required to register the vehicle. In response, Harris falsely stated that he knew a woman who could register the vehicle if Person 1 paid the woman a $1,000 bribe payment.
On March 23, 2021, Harris again falsely claimed to Person 1 that the woman wanted a $1,000 bribe payment to register the vehicle. As a result, Person 1 gave Harris $1,000 in cash. But Harris then kept the $1,000 in cash, stopped all communications with Person 1, and never obtained a vehicle tag for Person 1.
Based on this conduct, on December 13, 2022, a federal grand jury charged Harris, 54, of Union City, Georgia, with three counts of wire fraud. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the United States’ burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
The Federal Bureau of Investigation, DeKalb County District Attorney’s Office, and Georgia Department of Revenue are investigating this case.
Assistant U.S. Attorney Jeffrey W. Davis is prosecuting the case. Assistant U.S. Attorney Nicholas Hartigan previously prosecuted this case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Registered Nurse Charged with Tampering with Medical Grade FentanylRead the Press Release
MIAMI – A South Florida federal grand jury has charged Martin County resident Catherine Shannon Dunton, 54, with tampering with vials of liquid fentanyl at an outpatient surgery center where she worked as a licensed registered nurse.
Medical providers use a liquid form of fentanyl -- fentanyl citrate -- to keep patients from moving during surgery and relieve their pain. According to the indictment, while working as a nurse at a Martin County outpatient surgery center, Dunton removed liquid fentanyl from vials, refilled them with saline, and returned the adulterated vials to their location for use during surgeries.
If convicted, Dunton faces up to 10 years in prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Justin Fielder, Special Agent in Charge, Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) Miami Field Office, announced the charges.
FDA Office of Criminal Investigations, Miami Field Office investigated this matter, with assistance from United States Postal Inspection Service, Miami Field Office. Assistant U.S. Attorney Diana M. Acosta is prosecuting the case.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
You may find related court documents and information on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14073-Cannon.
Former Philadelphia Police Officer Sentenced to Nearly Six Years in Prison for Child Pornography OffensesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that William Watts, Sr., 56, of Philadelphia, PA, was sentenced to five years and ten months in prison, five years of supervised release and ordered to pay $12,000 in special assessments by United States District Court Judge Joel H. Slomsky after being convicted of receiving and possessing child pornography.
In July 2022, the defendant pleaded guilty to these charges, which stemmed from an FBI investigation into a CyberTip from the National Center for Missing and Exploited Children. At the time of his arrest in October 2021, the defendant was a police officer in Philadelphia’s First Police District and had amassed a collection of hundreds of images of child pornography between his online accounts and electronic devices. Watts has since resigned his position with the Department.
“Watts admitted to seeking out videos of children being abused for his own gratification – and for that crime he will now spend years behind bars,” said U.S. Attorney Romero. “Our Office and our law enforcement partners are committed to doing the difficult work of investigating and prosecuting these heinous crimes in order to hold people like this defendant accountable, no matter their position in the community or occupation.”
“As a police officer, William Watts was sworn to protect and serve,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “Not only did he break the law by continually seeking out these disgusting images, his actions put child victims at further risk of sexual exploitation. Justice demands, and this sentence ensures, that he is held accountable.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the FBI and is being prosecuted by Assistant United States Attorney Kelly Harrell.
Former Federal Detention Officer sentenced to prison for illegal firearm possession and obstruction of justiceRead the Press Release
Seattle – An employee at the Federal Bureau of Prisons, Federal Detention Center (FDC) at SeaTac, Washington, was sentenced today in U.S. District Court in Seattle for two federal felonies related to his conduct outside of his employment, announced U.S. Attorney Nick Brown. Joshua Adam Shuemake, 37, was sentenced to one year and one day in prison for illegal firearm possession, and obstruction of justice. Shuemake was convicted in September 2022 following a four-day jury trial. At today’s sentencing hearing U.S. District Judge Richard A. Jones said the victim of Shumake’s conduct was the justice system. “It’s not just the illegal possession of a firearm, it’s that you chose to ignore a judge’s order and you encouraged people lie… You can’t have a firearm and can’t come to court and lie,” Judge Jones said.
“Mr. Shuemake made relentless and deliberate efforts to undermine the administration of justice,” said U.S. Attorney Nick Brown. “He lied in King County court, to federal investigators, and to his employer. Mr. Shuemake encouraged witnesses to lie under oath in federal proceedings. Such conduct by a federal law enforcement officer is particularly egregious.”
According to records filed in the case and testimony at trial, following a domestic violence incident in April 2021, a King County judge barred Shuemake from possessing dangerous weapons, including firearms, and ordered him to surrender all firearms. Shuemake signed a statement under oath saying he had no firearms. However, evidence at trial showed Shuemake working as a restaurant and bar security guard, and despite the court order, he was seen on surveillance video multiple times with a firearm in a holster on his hip. When law enforcement searched the apartment where they observed Shuemake living, they found a handgun in the closet. The gun had Shuemake’s DNA on the grip. Shuemake tried to claim he lived at a different address, and then pressured friends to lie to investigators about how the gun came to be in the apartment.
At the time of the FBI investigation into Shuemake’s gun possession, the Bureau of Prisons was investigating him for a sexual relationship with a female inmate. Shumake was also being scrutinized for sharing information about inmates that resulted in assaults on some of those housed at the FDC.
Even after his conviction, Shuemake continued to violate court orders by wearing clothing identifying himself as law enforcement while working private security jobs. Judge Jones ordered Shuemake to serve 72 hours in King County Jail for violating his bond.
Prosecutors wrote in the sentencing memo Shumake “attempted to exploit the implicit trust within the judicial system that is conferred upon sworn law enforcement officers. And yet, Shuemake not only failed to meet the basic minimum standard of being a law-abiding citizen, but he also fell woefully short of the ethical standards of a federal law enforcement officer by undermining the administration of justice at every turn.”
Shuemake was on unpaid leave from the Bureau of Prisons pending the outcome of this case. His employment has now been terminated.
The case was investigated by the FBI.
The case was prosecuted by Assistant United States Attorneys Jessica Manca, Cindy Chang, and Ye-Ting Woo.
Former Cumberland County Solid Waste Director Convicted of Civil Rights OffensesRead the Press Release
NASHVILLE – The former Cumberland County, Tennessee Solid Waste Director was convicted yesterday of nine counts of civil rights violations, including kidnapping and sexually assaulting women that he supervised. Michael Harvel, 61, of Crossville, Tennessee, was convicted by a federal jury after an eight-day trial, which included testimony from 13 women who testified about Harvel’s abuse. The jury acquitted Harvel of one misdemeanor count.
Harvel was initially indicted in July 2021 for civil rights violations, and a superseding indictment returned in November 2021 charged him with additional civil rights violations which occurred between 2014 and 2018.
“The defendant raped and assaulted women who were in extremely vulnerable positions,” said U.S. Attorney Mark H. Wildasin. “Those in positions of authority cannot abuse their positions with impunity, and we look forward to seeking a prison sentence for Mr. Harvel that reflects the seriousness of this offense. I commend the victims, investigators, and the prosecution team for holding Mr. Harvel accountable for his crimes and for obtaining justice in this matter.”
Evidence introduced at trial established that Harvel was the Director of Solid Waste for Cumberland County, with an office located in the Cumberland County Recycling Center. Harvel’s official duties included supervising workers at the recycling center and at other satellite locations and county landfills, where he supervised dozens of women who served their court-ordered community service time or worked as paid employees. Many of these were vulnerable women who were recovering drug addicts, convicted felons, and poor, single moms. What each of the victims had in common was that Harvel was their boss, while they were working for a low wage or to work off court fees, in a dirty recycling center.
Harvel was found guilty of four counts that charged him with kidnapping and sexually assaulting women whom he supervised. He was also convicted on three counts that charged him with committing aggravated sexual abuse, including one for forcibly raping a woman in an office at a county facility. Finally, Harvel was found guilty on charges for incidents in which he fondled the breasts and genitals of women against their will.
“The defendant abused his power as a public official in order to sexually assault women under his supervision at a county facility,” said Assistant Attorney General Kristen Clarke for the Civil Rights Division. “This guilty verdict was made possible by the thirteen brave women who testified about the defendant’s abuse, and by the tireless work of the federal investigators and prosecutors who pursued justice in this matter. The Justice Department will continue working hard to protect women from exploitation by government officials who wield authority over them.”
"The FBI Memphis Field Office is proud of the role that it played in bringing this man to justice and will continue to work with our law enforcement partners to remove those whose criminal acts result in targeting individuals in extremely vulnerable positions," said Special Agent in Charge Douglas Korneski of the FBI Memphis Field Office. “The FBI will always work to bring to justice those who violate the civil rights of others.”
Harvel faces a maximum sentence of life in prison. A sentencing date has not yet been set by the court.
This case was investigated by the FBI. Assistant U.S. Attorney Brooke Schiferle of the Middle District of Tennessee and Trial Attorneys Michael J. Songer and Laura-Kate Bernstein of the Justice Department’s Civil Rights Division are prosecuting the case.
In 2021, in a separate civil action, the Department of Justice settled a sexual harassment lawsuit against Cumberland County for $1.1 million. The lawsuit alleged, among other things, that Cumberland County failed to take adequate precautions to prevent Harvel, as the director of the county’s Solid Waste Department, from sexually harassing women he supervised. According to the complaint, Harvel regularly subjected the women to unwanted sexual contact, including kissing and groping, and to unwelcome sexual advances.
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Former Chairman of Riviera Beach Housing Authority Pleads Guilty to Extortion for Kickback PaymentsRead the Press Release
MIAMI – Delvin Thomas, 44, of West Palm Beach, Fla., has pled guilty to one count of extortion after using his chairman position to receive a kickback from a real-estate transaction. Thomas will be sentenced March 3, 2023, before Judge Kenneth Marra.
Around April 2019, Thomas was the chairman of the Riviera Beach Housing Authority, during which time the authority sought to purchase real-estate located in Riviera Beach for a low-income rental property. Thomas introduced a real estate broker to the person at Riviera Beach Housing Authority responsible for purchasing the property and Riviera Beach Housing Authority entered into a contract with the broker to purchase the property.
The broker was to receive a three percent commission from the property’s purchase. Once the contract to purchase the property was entered, Thomas told the broker that he, Thomas, was to receive 50 percent of the commission for its sale. At closing, the broker’s company was paid a commission of $18,930. In order to hide the unlawful payment of Thomas’ 50 percent share, Thomas contacted a straw party to act as a front for this illicit activity.
The straw party (or front) agreed to deposit two checks issued to the front’s business bank account and then issue checks from said account to Sire Development Group LLC, a company Thomas owned. Two checks in the amounts of $6,400 and $3,065 were issued to the front’s company account. This represented 50 percent of the commission received by the broker. The checks falsely stated in the memo section that the payments were for “company branding” and “marketing services.” The front then issued two checks to Thomas’ company, Sire Development Group LLC, in the amounts of $6,400 and $3,000—falsely stating in the check’s memo section that the payments were for “consulting services.”
Thomas faces a statutory maximum term of imprisonment of 20 years and a fine of $250,000.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and acting Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
The FBI investigated this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former CEO of Subprime Auto Lender Indicted in $54.5 Million Bank Fraud SchemeRead the Press Release
CHICAGO — The former chief executive officer of a suburban Chicago subprime auto lending company has been charged in federal court with orchestrating a scheme that defrauded a bank of approximately $54.5 million.
JAMES COLLINS was the CEO of Evanston, Ill.-based Honor Finance LLC. From 2015 to 2018, Collins schemed with another top Honor executive to submit false information to the bank about a portfolio of loans made to subprime borrowers, in an effort to maintain a certain level of funding from a line of credit provided to Honor by the bank, according to an indictment returned in U.S. District Court in Chicago. The false information also allowed Collins and his co-schemer to increase the amount of funding they received from a trust established by Honor and the bank to securitize thousands of loans in Honor’s portfolio and sell them as bonds to investors, the indictment states. The indictment alleges that Collins selected delinquent vehicle loans for the trust that he knew were not eligible to be included in the portfolio because Honor and its affiliates had previously advanced money to the borrowers through the use of improper accounting entries. Collins hid the ineligibility of these loans from the bank, bond investors, and rating agencies, the indictment states.
As a result of Collins’s false representations and material omissions regarding the line of credit and the trust, the bank lost approximately $54.5 million, the indictment states.
The indictment charges Collins, 53, of Evanston, Ill., with 15 counts of bank fraud and two counts of securities fraud. Arraignment is scheduled for Dec. 19, 2022, at 10:00 a.m., before U.S. Magistrate Judge Beth W. Jantz.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorneys Matthew Getter and Paige Nutini.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of bank fraud is punishable by up to 30 years in federal prison, while each securities fraud count carries a maximum of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Five Individuals Sentenced in $12 Million Federal Financial Aid Fraud SchemeRead the Press Release
Five individuals were sentenced yesterday for conspiring to defraud the U.S. Department of Education’s financial aid programs of over $12 million in federal funds.
According to court documents, from around August 2010 through May 2018, the defendants created and ran an elaborate sham university – the Columbus, Georgia, satellite campus of Apex School of Theology (Apex Columbus). Anderson, the former Director of Apex Columbus, enrolled hundreds of individuals who were not qualified and who had no desire to obtain a theological education to pose as students. The defendants and their co-conspirators then worked together to fraudulently complete financial aid applications in students’ names and to complete students’ homework and exams. After falsely ensuring that the sham students would receive federal financial aid, the defendants either stole student financial aid refund checks or required students to cash their aid checks and provide a portion to the co-conspirators. During the course of the conspiracy, the Department of Education issued approximately $12 million in fraudulently procured financial aid.
Name, Age
Residence
Sentence
Sandra Anderson, 63
Hampton, Georgia
108 months in prison
Three years of supervised release
Yolanda Brown Thomas, 51
Columbus, Georgia
63 months in prison
Three years of supervised release
Kristina Parker, 35
Stone Mountain, Georgia
Four years in prison
Three years of supervised release
Erica Montgomery, 49
Fort Mitchell, Alabama
51 months in prison
Three years of supervised release
Leo Frank Thomas, 56
Phenix City, Alabama
Three years in prison
Three years of supervised release
All five defendants were also ordered to pay, jointly and severally, $11,821,022 in restitution to the Department of Education.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Peter D. Leary for the Middle District of Georgia; Special Agent in Charge Keri E. Farley of the FBI Atlanta Field Office; Special Agent in Charge Reginald J. France of the Department of Education Office of Inspector General (ED-OIG), Southeastern Regional Office; and Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) made the announcement.
The FBI, ED-OIG, and IRS-CI investigated the case.
Assistant Chief Leslie S. Garthwaite and Trial Attorneys Siji Moore, Spencer Ryan, and Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case, with valuable assistance from the U.S. Attorney’s Office for the Middle District of Georgia.
Final Defendant Sentenced to Life in Prison for Role in Deadly Lexington KidnappingsRead the Press Release
LEXINGTON, Ky. — A Lexington man, Ramon Camacho Zepeda, 54, was sentenced to life in in federal prison, on Friday, by U.S. District Judge Karen Caldwell, after previously being convicted of conspiracy to commit kidnapping and interstate transportation of stolen automobiles.
According to evidence presented at trial, the charges stemmed from the kidnappings of two individuals, identified in court records as J.O. and M.A.T.O. Both victims were killed during the commission of the kidnappings. Their bodies were discovered in the trunk of a Volkswagen Jetta, on September 11, 2017, at 430 Blue Sky Parkway, in Lexington. That location was an automotive repair business owned by J.O. Two vehicles belonging to J.O. were stolen during the offenses and transported to Wilkes-Barre, Pennsylvania. Evidence presented at trial revealed that Camacho Zepeda and Diaz Barraza were distributing kilogram quantities of cocaine and heroin in Lexington, and that J.O. had incurred a debt to them, based on his involvement in the drug trafficking. Testimony by a pathologist from the Kentucky Medical Examiner’s Office established that J.O.’s cause of death was attributed to “chop wounds” to the head and asphyxiation. The second victim, M.A.T.O., died from asphyxiation.
Zepeda, Rosario Diaz Barraza, 32, of Phoenix, and John Carlos Betancourt, 27, of Penuelas, Puerto Rico, were convicted at trial in April 2022. Diaz Barraza was sentenced in September 2022 to 35 years in prison, followed by five years of supervised release. Betancourt was sentenced in July 2022 to 84 months in prison, followed by three years of supervised release.
Additionally, Serrano-Jimenez pled guilty as charged to conspiracy to commit kidnapping in the case. On October 6, 2022, he received 168 months in prison, followed by five years of supervised release. Finally, Jose Felix Tlatenchi, of Wilkes- Barre, pled guilty to an information as an accessory after the fact to the kidnapping. He was sentenced to 120 months and a term of SR
Under federal law, Zepeda must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
“This sentence brings to close the prosecution of a horrific crime,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Unfortunately, in addition to the severe damage of abuse and addition, the illegal drug trade often brings with it dramatic violence. Here, two people brutally lost their lives, and the sentences imposed are unquestionably warranted. Bringing those responsible for this awful crime to justice involved tireless, dedicated, and remarkable work, by both our trial team and our law enforcement partners, across several states. Those who continue to engage in this dangerous trade should know that we are committed and will continue to use all the resources available to us to combat it.”
“This case perfectly illustrates the brutal nature of drug trafficking; two individuals suffered a violent end because they got mixed up with the wrong crowd,” said Special Agent in Charge J. Todd Scott, head of the Drug Enforcement Administration’s Louisville Division. “Lexington is a safer community today, with one more violent offender sentenced to prison for committing these barbaric acts.”
United States Attorney Shier; DEA Special Agent in Charge Scott; Colonel Phillip Burnett, Commissioner, Kentucky State Police; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentencing.
The lengthy investigation was conducted primarily by the Lexington Police Department, the Drug Enforcement Administration, and the Kentucky State Police. Multiple additional law enforcement agencies also provided valuable assistance, including the Wilkes-Barre, Pennsylvania Police Department, the Reading, Pennsylvania Police Department, the Pennsylvania State Police, the New York City Police Department, the Harlingen, Texas Police Department, and the U.S. Department of Homeland Security Investigations. The United States was represented in the case by Assistant U.S. Attorneys Todd Bradbury and Francisco Villalobos.
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Federal Grand Jury Indicts Louisville Man and Woman for Conspiring to Distribute MethamphetamineRead the Press Release
Louisville, KY – A federal grand jury in Louisville, Kentucky returned an indictment on December 6, 2022, charging a local man and woman with conspiring to possess with the intent to distribute methamphetamine and distributing methamphetamine.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, and Chief Erika Shields of the Louisville Metro Police Department made the announcement.
According to court documents, between August 31, 2022, and November 3, 2022, Malik Abdullah, 22, and Kayla Scott, 21, conspired together to distribute 50 grams or more of methamphetamine in the Louisville area. Abdullah is charged with one count of conspiracy to possess with the intent to distribute methamphetamine and eight counts of distribution of methamphetamine. Scott is charged with one count of conspiracy to possess with the intent to distribute methamphetamine and seven counts of distribution of methamphetamine.
Scott made her initial court appearance yesterday before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. Abdullah was taken into state custody and will make his initial court appearance at later date. If convicted, they each face a mandatory minimum sentence of 10 years and a maximum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The ATF and Louisville Metro Police Department are investigating the case.
Special Assistant U.S. Attorney (SAUSA) Emily Lantz is prosecuting 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.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts Allen County Man for Drug Trafficking and Illegal Possession of a FirearmRead the Press Release
Bowling Green, KY – On December 14, 2022, a federal grand jury returned an indictment charging an Allen County man with possession with the intent to distribute methamphetamine and possession of a firearm by a convicted felon.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge J. Todd Scott of the DEA Louisville Field Division made the announcement.
According to court documents, Timothy E. Austin, 49, of Scottsville, Kentucky, possessed with the intent to distribute 50 grams or more of methamphetamine on August 15, 2022, in Allen County, Kentucky. Austin is also charged with possessing a Raven Arms, model MP25, .25 caliber semiautomatic pistol after having been convicted of a felony. His prior felony convictions include first-degree possession of a controlled substance and tampering with physical evidence.
Austin is currently in state custody and will be scheduled for his initial appearance before a United States Magistrate Judge of the United States District Court for the Western District of Kentucky once he is transferred to federal custody. If convicted, Austin faces a minimum of 10 years and a maximum of life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. There is no parole in the federal system.
The DEA and the Allen County/Scottsville Crime Task Force are investigating the case.
The case is being prosecuted by Assistant U.S. Attorney Mark J. Yurchisin II.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Grand Jury Indicts 2 on Charges of Selling Fentanyl, Other Narcotics through Darknet and Encrypted Messaging ApplicationsRead the Press Release
LOS ANGELES – A federal grand jury has indicted two men who allegedly used the darknet and encrypted messaging applications to sell over 120,000 fentanyl-laced pills and other drugs to thousands of customers across the country.
The 19-count indictment charges Rajiv Srinivasan, 37, of Houston, and Michael Ta, 24, of Westminster, in a conspiracy to distribute and to possess with the intent to distribute fentanyl and methamphetamine. Both defendants are also named in various counts alleging the distribution and possession with the intent to distribute both drugs.
According to the indictment, Srinivasan operated the account “redlightlabs” on the darknet, including the site “Dark0de.” He allegedly used the redlightlabs account to advertise and sell counterfeit M30 oxycodone pills containing fentanyl.
Srinivasan also allegedly used the encrypted messaging application Wickr to communicate with and sell drugs to customers. Srinivasan allegedly received virtual currency as payment for the drugs and then routed that virtual currency through cryptocurrency exchanges.
The indictment alleges that Ta communicated with Srinivasan about drug orders, obtained fentanyl-laced pills and methamphetamine from sources of supply, stored those drugs in his residence, and mailed out packages with drugs to customers who had ordered them from Srinivasan.
The indictment alleges that between February and November 2022, Srinivasan and Ta sold over 7,000 pills to a person they believed was a drug customer, but who was in fact an undercover law enforcement agent. Srinivasan and Ta allegedly maintained a shared electronic document that detailed approximately 3,800 drug transactions to approximately 1,500 unique customers. That database documented sales between May and November 2022 totaling approximately 123,188 fentanyl pills, over 143 kilograms of methamphetamine, and smaller amounts of fentanyl powder, black tar heroin and cocaine, according to the indictment.
FBI agents arrested both defendants last month pursuant to a criminal complaint. Srinivasan was ordered jailed without bond and is being transported to the Central District of California from Houston. Ta was released on bond and is scheduled to be arraigned on the indictment on December 22.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The statutory maximum sentence for the conspiracy charge alleged in the indictment is life in federal prison.
The FBI investigated this matter. The United States Postal Inspection Service and the United States Attorney’s Office for the Southern District of Texas provided substantial assistance.
The investigation in this matter was conducted under the auspices of the FBI-led Joint Criminal Opioid Darknet Enforcement Team (JCODE), which targets darknet vendors by using sophisticated, high-tech techniques to identify drug traffickers who wrongly believe the dark web allows them to engage in criminal conduct with anonymity. Since its inception in 2018, JCODE investigations have resulted in the arrest of more than 300 darknet drug traffickers, as well as the seizure of more than $42 million in drug-tainted proceeds, over 800 kilograms of narcotics, and approximately 145 firearms.
Assistant United States Attorney Gregg E. Marmaro of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
El Departamento de Justicia llega a un acuerdo con un distrito escolar de la Ciudad de San Bernardino para proteger los derechos civiles de estudiantes que están aprendiendo inglésRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con el Distrito Escolar Unificado de la Ciudad de San Bernardino, el cual resuelve la investigación del Departamento del programa del distrito escolar para sus estudiantes que están aprendiendo inglés. La investigación del Departamento, que se llevó a cabo entre la División de Derechos Civiles y la Fiscalía Federal para el Distrito Centro de California, concluyó que el distrito no estaba proveyendo a estudiantes que están aprendiendo inglés con los servicios y apoyos necesarios como para llegar a dominar el inglés, ni tampoco para poder participar, de manera significativa, en clases de contenido básico, como matemáticas, ciencias o estudios sociales. El distrito ha acordado mejorar sus servicios para que estudiantes que están aprendiendo inglés tengan acceso a las mismas oportunidades educativas esenciales que sus compañeros de clase.
«La educación es una parte fundamental del logro del sueño americano, pero para muchos estudiantes que están aprendiendo inglés por todo el país, sus distritos escolares no proporcionan los servicios y apoyo que necesitan», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles luchará por garantizar que los distritos cumplan con sus obligaciones en virtud de las leyes federales a brindar a todos sus estudiantes, independientemente de sus habilidades lingüísticas, una educación completa y significativa».
«Las leyes federales protegen los derechos de estudiantes que están aprendiendo inglés a participar plenamente en el aula», declaró Martin Estrada, el Fiscal Federal para el Distrito Centro de California. «El acuerdo de hoy representa un paso importante hacia garantizar que los estudiantes que están aprendiendo inglés reciban la enseñanza que necesitan para avanzar y dominar el inglés y para participar en la escuela de la misma forma que sus compañeros de clase. El acuerdo mejorará los servicios y el apoyo que se ofrecen a los estudiantes que están aprendiendo inglés».
La investigación del Departamento identificó que no se garantizó que todos los maestros que enseñan el idioma inglés estuvieran debidamente calificados. Además, en muchos casos, los maestros de asignaturas básicas como matemáticas, ciencias y estudios sociales no estaban capacitados o calificados como para proporcionar los apoyos que estudiantes que están aprendiendo inglés necesitan para aprender materias apropiadas para su grado, entre otras preocupaciones.
Conforme el acuerdo, el distrito ofrecerá enseñanza lingüística a estudiantes que están aprendiendo inglés para ayudarles a dominar el inglés y asegurará que sus maestros sean capacitados y certificados en la provisión de tal enseñanza. Por otra parte, el distrito ofrecerá capacitación a los maestros de asignaturas básicas, tales como matemáticas, ciencias y estudios sociales, en lo que se refiere al uso de herramientas que ayudan a estudiantes que están aprendiendo inglés a entender el contenido de tales asignaturas. Además, el distrito supervisará, de manera eficaz, el progreso de los estudiantes e identificará si los estudiantes necesitan servicios o apoyos adicionales para garantizar que los estudiantes que están aprendiendo inglés tengan acceso a programas de estudiantes dotados y cursos avanzados, incluyendo las asignaturas de Advanced Placement [clases avanzadas con crédito universitario]. El Departamento supervisará el cumplimiento del distrito con el acuerdo durante un período de tres años.
La versión en inglés del comunicado de prensa está disponible aquí: https://www.justice.gov/opa/pr/justice-department-secures-settlement-san-bernardino-city-school-district-protect-rights La ejecución de la ley de Igualdad de Oportunidades Educativas de 1974 es una de las prioridades principales de la División de Derechos Civiles. Para más información sobre la División de Derechos Civiles, puede visitar su sitio web en www.justice.gov/crt. Para más información sobre la labor de la Sección de Oportunidades Educativas, vaya a https://www.justice.gov/crt/educational-opportunities-section. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.
El Departamento de Justicia llega a un acuerdo con un distrito escolar de la Ciudad de San Bernardino para proteger los derechos civiles de estudiantes que están aprendiendo inglésRead the Press Release
LOS ANGELES – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con el Distrito Escolar Unificado de la Ciudad de San Bernardino, el cual resuelve la investigación del Departamento del programa del distrito escolar para sus estudiantes que están aprendiendo inglés. La investigación del Departamento, que se llevó a cabo entre la División de Derechos Civiles y la Fiscalía Federal para el Distrito Centro de California, concluyó que el distrito no estaba proveyendo a estudiantes que están aprendiendo inglés con los servicios y apoyos necesarios como para llegar a dominar el inglés, ni tampoco para poder participar, de manera significativa, en clases de contenido básico, como matemáticas, ciencias o estudios sociales. El distrito ha acordado mejorar sus servicios para que estudiantes que están aprendiendo inglés tengan acceso a las mismas oportunidades educativas esenciales que sus compañeros de clase.
«Las leyes federales protegen los derechos de estudiantes que están aprendiendo inglés a participar plenamente en el aula», declaró Martin Estrada, el Fiscal Federal para el Distrito Centro de California. «El acuerdo de hoy representa un paso importante hacia garantizar que los estudiantes que están aprendiendo inglés reciban la enseñanza que necesitan para avanzar y dominar el inglés y para participar en la escuela de la misma forma que sus compañeros de clase. El acuerdo mejorará los servicios y el apoyo que se ofrecen a los estudiantes que están aprendiendo inglés».
«La educación es una parte fundamental del logro del sueño americano, pero para muchos estudiantes que están aprendiendo inglés por todo el país, sus distritos escolares no proporcionan los servicios y apoyo que necesitan», comentó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles luchará por garantizar que los distritos cumplan con sus obligaciones en virtud de las leyes federales a brindar a todos sus estudiantes, independientemente de sus habilidades lingüísticas, una educación completa y significativa».
La investigación del Departamento identificó que no se garantizó que todos los maestros que enseñan el idioma inglés estuvieran debidamente calificados. Además, en muchos casos, los maestros de asignaturas básicas como matemáticas, ciencias y estudios sociales no estaban capacitados o calificados como para proporcionar los apoyos que estudiantes que están aprendiendo inglés necesitan para aprender materias apropiadas para su grado, entre otras preocupaciones.
Conforme el acuerdo, el distrito ofrecerá enseñanza lingüística a estudiantes que están aprendiendo inglés para ayudarles a dominar el inglés y asegurará que sus maestros sean capacitados y certificados en la provisión de tal enseñanza. Por otra parte, el distrito ofrecerá capacitación a los maestros de asignaturas básicas, tales como matemáticas, ciencias y estudios sociales, en lo que se refiere al uso de herramientas que ayudan a estudiantes que están aprendiendo inglés a entender el contenido de tales asignaturas. Además, el distrito supervisará, de manera eficaz, el progreso de los estudiantes e identificará si los estudiantes necesitan servicios o apoyos adicionales para garantizar que los estudiantes que están aprendiendo inglés tengan acceso a programas de estudiantes dotados y cursos avanzados, incluyendo las asignaturas de Advanced Placement [clases avanzadas con crédito universitario]. El Departamento supervisará el cumplimiento del distrito con el acuerdo durante un período de tres años.
Eight Burlington Individuals Charged by Federal Criminal Complaint with Drug ChargesRead the Press Release
DAVENPORT, IA – Eight Burlington individuals were charged by criminal complaint in federal court as a result of a joint federal and state investigation of a drug trafficking organization that operated out of Burlington.
Six individuals made their initial appearances in federal court at the United States Courthouse in Davenport on Thursday, December 15, 2022: Gilbert Lee Ellis, Christopher Jerome Ellis, Honesty Knotts, Hardy Pegues, Joshua Adam Townsen, and Michael Demetrius Brown. Theodis Bagby and Larry Keith Knotts were also charged with this offense but have not yet made their initial appearance.
This investigation was conducted by the Federal Bureau of Investigation and the Southeast Iowa Narcotics Taskforce with assistance from the Drug Enforcement Administration, Burlington Police Department, Des Moines County Sheriff’s Office, West Burlington Police Department, Henry County Sheriff’s Office, Iowa State Patrol, Iowa Division of Narcotics Enforcement, Lee County Task Force, Muscatine Task Force, Quad City Metropolitan Enforcement Group, Johnson County Drug Task Force, Ottumwa Drug Task Force, and the Tri-County Drug Enforcement Team in Illinois.
On December 15, 2022, federal search warrants were executed at the following locations:
• 200 block of Ballard Street, West Burlington;
• 300 block of Locust Street, Burlington;
• 3200 block of Division Street, Burlington;
• 900 block of Locust Street, Burlington;
• 1400 block of Lucas Street, Burlington;
• 1500 block of Gnahn Street, Burlington;
• 1600 block of South 14th Street, Burlington;
• 1300 block of Aetna Street, Burlington.
United States Attorney Richard D. Westphal of the Southern District of Iowa; and the Federal Bureau of Investigation and Burlington Police Department made the announcement.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
East Bay Convenience Store Owner Sentenced to More Than Three Years in Prison for Role in Food Stamp Fraud ConspiraciesRead the Press Release
OAKLAND –Ali Mugalli Hassan was sentenced to 37 months in prison for his role in multiple schemes to defraud government benefits programs, announced United States Attorney Stephanie M. Hinds and United States Department of Agriculture Office of Inspector General (USDA-OIG) Western Region Special Agent in Charge Shawn Dionida. The sentence was handed down by United States District Judge Phyllis J. Hamilton following a week-long jury trial resulting in Hassan’s conviction of the crimes.
At trial, the government presented evidence that Ali Mugalli Hassan, 32, of Alameda, defrauded the United States Department of Agriculture (USDA) by unlawfully trafficking federal food stamp benefits from 2014 through 2017. According to evidence presented at trial, Hassan owned and operated a convenience store on International Boulevard in Oakland. Members of Hassan’s family, including his father Mugalli Ahmed Hassan, 50, of Alameda, served as cashiers at the store. The convenience store was an authorized vendor for the USDA’s Supplemental Nutritional Assistance Program (SNAP) (formerly known as the Food Stamp Program) which helps economically disadvantaged persons pay for essential food items for themselves and their families. Trial evidence showed that Hassan and his family members conducted fraudulent SNAP transactions through his convenience store by charging purchases on the customers’ EBT cards when, in reality, the customers received few or no SNAP-eligible products. In addition, the evidence demonstrated Hassan kept approximately half the value of the fraudulent transactions and returned the remainder in cash to the customers. As part of the scheme, Hassan engaged in transactions in which he kept customers’ EBT cards and used the federal benefits assigned to those cards at other stores to purchase items to sell at his convenience store. At sentencing, Judge Hamilton found the loss amount from the conspiracy to be over $1 million.
On March 14, 2019, a federal grand jury indicted Ali Hassan and Mugalli Hassan, charging both with various crimes in accordance with their roles in the scheme. On June 14, 2022, Mugalli Hassan pleaded guilty to nine counts of wire fraud, in violation of 18 U.S.C. § 1343, and proceeded to trial along with Ali Hassan on several of the remaining counts pending against them. On June 29, 2022, a jury convicted both Ali Hassan and Mugalli Hassan of one count of conspiracy to commit benefits fraud and to defraud the United States, in violation of 18 U.S.C. § 371; one count of benefits fraud greater than $5,000, in violation of 7 U.S.C. § 2024(b); one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349; and one count of wire fraud, in violation of 18 U.S.C. § 1343.
In addition to the prison term, Chief Judge Hamilton ordered Ali Hassan to serve three years of supervised release, to begin after his release from prison, and to pay a fine of $15,000.
Judge Hamilton scheduled Mugalli Hassan’s sentencing hearing for February 2, 2023.
Assistant U.S. Attorneys Abraham Fine and Molly Priedeman prosecuted the case at trial with the assistance of Patricia Mahoney, Kay Konopaske, and Leeya Kekona. The prosecution is the result of an investigation by the USDA-OIG with the assistance of the Oakland Police Department, U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Drug Trafficker Sentenced to Seven Years in Prison for Operating Cocaine Delivery Service in Chicago AreaRead the Press Release
CHICAGO — A drug trafficker who conspired with his father and several others to operate a cocaine delivery service in the Chicago area has been sentenced to seven years in federal prison.
TONY J. CAYUELA, also known as “Tone Kapone,” 43, of Chicago, operated a drug trafficking organization that in 2018 distributed cocaine to hundreds of customers in the Chicago area. Tony J. Cayuela packaged wholesale quantities of cocaine into one-gram bags for retail sale and dispatched drivers to complete deliveries to customers. One of the drivers was Tony Cayuela’s father, TONY F. CAYUELA, 68, of Chicago.
Federal law enforcement shut down the drug trafficking organization during a multi-year investigation known as “Operation Flawed Deal.” During the probe, authorities seized multiple bank accounts, more than a kilogram of cocaine, a Mercedes G63 sport-utility vehicle, and two handguns. All 18 defendants charged in the investigation, including the Cayuelas, pleaded guilty and admitted their roles in the trafficking operation. In addition to the drug conspiracy, Tony J. Cayuela also pleaded guilty to a money laundering charge.
U.S. District Judge Jorge L. Alonso sentenced Tony J. Cayuela on Dec. 6, 2022. The other 17 defendants were previously sentenced, including ANEES USMANI, also known as “Ace,” of Chicago, who received eight years in prison.
The case was part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles the highest-level drug trafficking organizations and other criminal networks 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.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the U.S. Drug Enforcement Administration; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Valuable assistance was provided by the Chicago Police Department, Evanston, Ill., Police Department, Skokie, Ill., Police Department, Lincolnwood, Ill., Police Department, Palatine, Ill., Police Department, and Des Plaines, Ill., Police Department. Assistant U.S. Attorney Charles W. Mulaney represented the government.
“The convictions and federal prison sentences in this operation should serve as a warning to those who distribute poison in our communities: We will prosecute you to the fullest extent of the law,” said U.S. Attorney Lausch. “Our federal and local law enforcement partners in this operation performed exemplary work to dismantle a significant drug trafficking organization.”
“Operation Flawed Deal should serve as a beacon of hope to our community, a message that we won't tolerate drugs in our neighborhoods, and those who disobey the law will be brought to justice,” said FBI Acting SAC Morales. “The FBI is honored to work with our state, local, and federal partners to protect the American people every day.”
“This sentencing signals an important victory for the American public,” said IRS-CI SAC Campbell. “The role of IRS Criminal Investigation in narcotics investigations is to follow the money and financially disrupt and dismantle major drug trafficking organizations. One of the government's most powerful weapons is the ability to seize the assets associated with narcotics-related crime. We are proud to work hand-in-hand with our law enforcement partners to bring these criminals to justice.”
District Man Sentenced to Nine Years for ManslaughterRead the Press Release
Defendant Shot the Victim as the Victim Ran Away
WASHINGTON – John Philogene, 24, of Washington, DC, was sentenced to nine years in prison, followed by five years of supervised release after pleading guilty to voluntary manslaughter while armed for shooting and killing a man in Southeast Washington following a fight, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Philogene pleaded guilty and was sentenced in the Superior Court of the District of Columbia by the Honorable Marisa J. Demeo.
According to the government’s evidence, on March 27, 2021, the decedent, Evan Shawntez Wood, and a friend entered an apartment building in the Cascade Park Apartments at 4281 6th Street, Southeast, Washington, DC, and were immediately confronted by the defendant with a gun. The victim, who friends said had been in the military, lunged at the defendant and they got into a fight that sprawled from the apartment building out into the courtyard. There, the victim broke free and ran from the courtyard. As the victim ran away, Philogene stood up, chambered a round in his handgun, and shot the victim in the back of the leg. Mr. Wood kept running, making it a couple of blocks to a yard alongside a house on Forrester Street, Southeast, Washington, DC, where he sat down and died.
Philogene and another subject then warned the victim’s friend not to talk, both at the scene and again the next day by Facetime. Philogene also went to the building where the victim’s friend usually bought drugs, kicked in an apartment door, and pointed a gun at the people inside while asking where the victim and his friend were.
Philogene was arrested almost exactly a month later on April 27, 2021. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocates Latrice Washington-Williams and Jenn Allen. Finally, they commended the work of Assistant U.S. Attorney Peter V. Roman and Deputy Chief Laura Bach, who investigated and prosecuted the case.
District Man Sentenced to 10 Years for Aiding and Abetting Murder in Online Robbery SchemeRead the Press Release
Defendant’s Co-conspirator Shot Victim After They Stole $225
WASHINGTON – Deandre Houston, 21, of Washington, DC, was sentenced today to 10 years in prison, followed by five years of supervised release, for second-degree murder while armed for aiding and abetting the killing of a man in Southeast Washington as part of an online robbery scheme, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Houston pleaded guilty and was sentenced in the Superior Court of the District of Columbia by the Honorable Maribeth Raffinan.
According to the government’s evidence, Houston set up accounts on OfferUp, an online marketplace service similar to eBay, which targets local buyers and sellers and allows them to post items for sale and arrange for the sales transaction through the app. Through the app, Houston offered a non-existent 2012 MacBook Pro for sale. The decedent, Roderick Joseph Thomas, agreed to meet Houston and buy the laptop from him.
On October 11, 2018, Mr. Thomas waited in his car in the 3200 block of 12th St SE, Washington, DC to buy the laptop from Mr. Houston. Houston and an unknown co-conspirator went to meet Mr. Thomas. The co-conspirator brought a gun, which Houston knew about and had reason to believe would be used in the robbery. At the scene, Houston walked around Mr. Thomas’ car and got in the passenger seat while his co-conspirator approached the driver’s side door. They told Mr. Thomas to give them the cash, presumably intended for the laptop purchase. Houston stole the $225 from Mr. Thomas and then his co-conspirator told Mr. Thomas to get out of the car so that he could steal that too. Mr. Thomas got out of the car and fought back, but when he got back into the car, Houston’s co-conspirator shot Mr. Thomas and killed him. Houston and his co-conspirator then fled the scene with the cash.
Houston was arrested less than three weeks later, on October 31, 2018. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Stephanie Siegerist and Victim/Witness Advocate Karina Hernandez. Finally, they commended the work of former Assistant U.S. Attorney Emile Thompson, Assistant U.S. Attorney Peter V. Roman, and Deputy Chief Laura Bach, who investigated and prosecuted the case.
District Man Pleads Guilty Mid-Trial to Hate Crimes ChargesRead the Press Release
WASHINGTON – Norman Wilson, 40, of Washington, D.C., pleaded guilty today, mid-trial, to charges stemming from two assaults in which he targeted Hispanic individuals based on their race and/or national origin, announced United States Attorney Matthew M. Graves.
Wilson pleaded guilty to two counts of simple assault with a bias-related enhancement for each count. The guilty plea followed a day and half of trial in the Superior Court of the District of Columbia. The Honorable Peter Krauthamer immediately sentenced Wilson to 270 days of suspended time with time served for one charge, and 200 days of suspended time with time served for the second charge. The judge also imposed 1 year of supervised probation for each count.
Mr. Wilson assaulted the first victim on May 15, 2022, at the Dupont Circle Metro Station. During this assault, Mr. Wilson targeted the victim, hit the victim with a metal object, and then made derogatory statements directed at the victim being Hispanic. The second assault took place on May 22, 2022, when Mr. Wilson targeted a Hispanic victim inside of the Friendship Heights Metro Station, kicked the victim in the back while descending the escalator, followed the victim throughout the station, and assaulted the victim a second time, all the while making derogatory comments directed at the victim’s race and/or national origin. After Mr. Wilson was arrested, he was interviewed by detectives from the Metropolitan Transit Police Department. During this interview, Mr. Wilson stated his beliefs that there are too many foreigners in America, they are not humble enough, and other similar xenophobic statements.
In announcing the sentence, U.S. Attorney Graves and Chief Michael Anzallo, of the Metro Transit Police Department, commended the work of those who investigated the case from the Metro Transit Police Department. He also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Christopher Lionette, Daphne Teresa Nelson, and Wanda Trice, as well as Victim/Witness Coordinator Maria Sanchez-Garcia.
Finally, he commended the efforts of Special Assistant U.S. Attorney Matthew Goldstein and Assistant U.S. Attorney Thomas Derbish, who prosecuted the case, and AUSA Bonnie Lindemann, who investigated the case.
Defendant Sentenced for Role in Sophisticated International Scheme to Steal Money from American Consumers’ Bank AccountsRead the Press Release
A U.S. citizen who previously resided in Ukraine was sentenced to 42 months in prison and five years of supervised release for conspiracy to commit bank fraud.
According to court documents, Harold Sobel, 69, was a member of an international criminal enterprise that unlawfully debited money from the bank accounts of unknowing U.S. victims. Members of the criminal enterprise created shell companies for the purpose of receiving victim funds and created fake websites for the shell companies that claimed to offer products or services, such as cloud storage. Members then executed unauthorized debits against victims’ bank accounts, while falsely representing to banks that the debits were authorized by the victims.
“The department will vigorously pursue and prosecute individuals who steal from American consumers’ bank accounts and deceive U.S. banks to conceal and continue their schemes,” said Principal Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s sentence demonstrates our commitment to bringing fraudsters to justice, even when they commit their crimes from foreign countries.”
“The Justice Department and our law enforcement partners will investigate and prosecute offenders who defraud Americans and U.S. financial institutions,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Our office will diligently work with the Department’s Consumer Protection Branch and law enforcement to use every tool at our disposal to hold fraudsters accountable regardless of where they reside and to bring justice for victims.”
“Global criminal enterprises that span multi-continent distances and operate from beyond our borders might feel they are safe from the reach of U.S. Postal Inspectors. But they are wrong,” said Postal Inspector in Charge Eric Shen of Criminal Investigations. “Scammers who defraud American citizens and banks are in our sights. Working with our partners in the Department of Justice, we will track them down and bring them to justice.”
Unauthorized debits against victim accounts, caused by the conspirators, resulted in returned transactions and high return rates that often generated scrutiny from the banks. To both conceal and continue making these unauthorized debits, members of the criminal enterprise made misrepresentations to the financial institutions about the transactions, claiming that they were authorized. In some cases, members of the criminal enterprise caused the accounts used by the criminal enterprise to also make “micro debits” against other bank accounts controlled and funded by or for the criminal enterprise. The “micro debits” were used to artificially lower the return rates to levels that conspirators believed would reduce bank scrutiny and thereby lessen the likelihood of closure of the accounts used by the criminal enterprise. The criminal enterprise also operated a call center that fielded complaints from victims of the unauthorized debits. The call center sought to dissuade victims from making reports to the victims’ banks and to government agencies.
As part of the enterprise, Sobel opened bank accounts in the United States at the direction of a co-conspirator who organized and conducted the affairs of the enterprise from outside the United States. For example, on or about Oct. 16, 2019, Sobel opened four business deposit accounts at a bank branch in Las Vegas, Nevada. Sobel opened the accounts for a shell company called “Silver Safe Box” and listed himself as the sole member and authorized signer in the account opening documentation. The criminal enterprise then funded “micro debits,” designed to lower return rates through the Silver Safe Box accounts. Between approximately December 2019 and January 2021, the Silver Safe Box accounts funded over 800,000 “micro debits” in amounts ranging from $0.99 to $1.85. Sobel also recruited at least two associates in the United States to help the foreign co-conspirator, among other things, open additional bank accounts and register shell companies.
Sobel’s participation also involved providing support for the activities of the criminal enterprise’s call center in Ukraine. Sobel devised a script to be used in response to complaints from victims by the call center’s personnel to retain as much of the criminal enterprise’s proceeds as possible and – only on those occasions where those efforts failed – to then issue full refunds, in order to dissuade victims from making reports to the victims’ banks and government agencies. Sobel also devised a metric by which he and the foreign co-conspirator could evaluate the effectiveness of the call center’s personnel. As part of his guilty plea, Sobel admitted that more than $1.5 million in victim debits were reasonably foreseeable to him.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Meredith Healy and Wei Xiang of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Mina Chang of the District of Nevada prosecuted the case. The U.S. Attorney’s Office for the Southern District of Texas provided substantial assistance.
Defendant Sentenced for Role in Sophisticated International Scheme to Steal Money from American Consumers' Bank AccountsRead the Press Release
LAS VEGAS – A U.S. citizen who previously resided in Ukraine was sentenced to 42 months in prison and five years of supervised release for conspiracy to commit bank fraud.
According to court documents, Harold Sobel, 69, was a member of an international criminal enterprise that unlawfully debited money from the bank accounts of unknowing U.S. victims. Members of the criminal enterprise created shell companies for the purpose of receiving victim funds and created fake websites for the shell companies that claimed to offer products or services, such as cloud storage. Members then executed unauthorized debits against victims’ bank accounts, while falsely representing to banks that the debits were authorized by the victims.
“The department will vigorously pursue and prosecute individuals who steal from American consumers’ bank accounts and deceive U.S. banks to conceal and continue their schemes,” said Principal Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s sentence demonstrates our commitment to bringing fraudsters to justice, even when they commit their crimes from foreign countries.”
“The Justice Department and our law enforcement partners will investigate and prosecute offenders who defraud Americans and U.S. financial institutions,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “Our office will diligently work with the Department’s Consumer Protection Branch and law enforcement to use every tool at our disposal to hold fraudsters accountable regardless of where they reside and to bring justice for victims.”
“Global criminal enterprises that span multi-continent distances and operate from beyond our borders might feel they are safe from the reach of U.S. Postal Inspectors. But they are wrong,” said Postal Inspector in Charge Eric Shen of Criminal Investigations. “Scammers who defraud American citizens and banks are in our sights. Working with our partners in the Department of Justice, we will track them down and bring them to justice.”
Unauthorized debits against victim accounts, caused by the conspirators, resulted in returned transactions and high return rates that often generated scrutiny from the banks. To both conceal and continue making these unauthorized debits, members of the criminal enterprise made misrepresentations to the financial institutions about the transactions, claiming that they were authorized. In some cases, members of the criminal enterprise caused the accounts used by the criminal enterprise to also make “micro debits” against other bank accounts controlled and funded by or for the criminal enterprise. The “micro debits” were used to artificially lower the return rates to levels that conspirators believed would reduce bank scrutiny and thereby lessen the likelihood of closure of the accounts used by the criminal enterprise. The criminal enterprise also operated a call center that fielded complaints from victims of the unauthorized debits. The call center sought to dissuade victims from making reports to the victims’ banks and to government agencies.
As part of the enterprise, Sobel opened bank accounts in the United States at the direction of a co-conspirator who organized and conducted the affairs of the enterprise from outside the United States. For example, on or about Oct. 16, 2019, Sobel opened four business deposit accounts at a bank branch in Las Vegas, Nevada. Sobel opened the accounts for a shell company called “Silver Safe Box” and listed himself as the sole member and authorized signer in the account opening documentation. The criminal enterprise then funded “micro debits,” designed to lower return rates through the Silver Safe Box accounts. Between approximately December 2019 and January 2021, the Silver Safe Box accounts funded over 800,000 “micro debits” in amounts ranging from $0.99 to $1.85. Sobel also recruited at least two associates in the United States to help the foreign co-conspirator, among other things, open additional bank accounts and register shell companies.
Sobel’s participation also involved providing support for the activities of the criminal enterprise’s call center in Ukraine. Sobel devised a script to be used in response to complaints from victims by the call center’s personnel to retain as much of the criminal enterprise’s proceeds as possible and – only on those occasions where those efforts failed – to then issue full refunds, in order to dissuade victims from making reports to the victims’ banks and government agencies. Sobel also devised a metric by which he and the foreign co-conspirator could evaluate the effectiveness of the call center’s personnel. As part of his guilty plea, Sobel admitted that more than $1.5 million in victim debits were reasonably foreseeable to him.
The U.S. Postal Inspection Service investigated the case.
Trial Attorneys Meredith Healy and Wei Xiang of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Mina Chang of the District of Nevada prosecuted the case. The U.S. Attorney’s Office for the Southern District of Texas provided substantial assistance.
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Defendant Charged with Attempted Enticement of Nine-Year-Old BoyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced charges against EFREM ZELONY-MINDELL for attempted enticement of one minor boy in Manhattan, New York, and possession and distribution of child pornography. ZELONY-MINDELL was arrested this morning and will be presented in Manhattan federal court today before U.S. Chief Magistrate Judge James L. Cott.
U.S. Attorney Damian Williams said: “Zelony-Mindell allegedly attempted to engage in sexual activity with a nine-year-old boy. The protection of children from predation remains of critical importance to this Office, and we will continue to use our resources and work with our law enforcement partners to bring offenders to justice.”
FBI Assistant Director Michael J. Driscoll said: “As alleged, Mr. Zelony-Mindell’s actions are nearly unfathomable. Through a series of conversations with undercover FBI agents conducted on encrypted messaging platforms, he stated his desire to have sex with minor children, and he ultimately met with one of the agents who he believed would provide him an opportunity to do so. Today’s action should serve as a reminder to anyone who seeks to prey on children - the FBI Human Trafficking and Child Exploitation Task Force and our law enforcement partners will continue to aggressively pursue you and hold you accountable.”
According to the allegations in the Complaint charging ZELONY-MINDELL:[1]
On or about April 29, 2022, an individual identified to be ZELONY-MINDELL initiated a series of conversations with an undercover FBI Special Agent (“UC-1”) on an encrypted messaging service. In these conversations, ZELONY-MINDELL repeatedly expressed, in graphic and unambiguous terms, his desire to engage in sexual activity with minor children and sent UC-1 numerous images and videos containing child pornography.
On or about May 9, 2022, UC-1 sent ZELONY-MINDELL, over the encrypted messaging service, the username of a second undercover FBI Special Agent (“UC-2”), posing as the father of a nine-year-old boy. ZELONY-MINDELL contacted UC-2 over the encrypted messaging service the same day and made clear that he was interested in having sex with the nine-year-old child. Subsequently, ZELONY-MINDELL and UC-2 had numerous communications, including over the encrypted messaging service, by text message, and over the phone. During these conversations, ZELONY-MINDELL made clear that he wanted to engage in sexual activity, including specifically anal sex, with UC-2’s purported child. When told by UC-2 that the child would be “knocked out a little bit” on sleep medication during the planned sexual activity, ZELONY-MINDELL agreed to have sex with the drugged child.
UC-2 and ZELONY-MINDELL arranged to meet at on a street corner in lower Manhattan on the morning of December 16, 2022, with the understanding that they would return to UC-2’s apartment afterward and ZELONY-MINDELL would then engage in sexual activity with the child. On the morning in question, ZELONY-MINDELL met a third FBI Special Agent (“UC-3”) at the agreed-upon location, at which time law enforcement arrested ZELONY-MINDELL.
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ZELONY-MINDELL, 35, of Fayetteville, Arkansas, is charged with one count of attempted enticement of a minor to engage in illegal sexual activity, which carries a mandatory minimum sentence of 10 years in prison and a maximum sentence of life in prison; one count of distribution of child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison; and one count of possession of child pornography, which carries a maximum sentence of 20 years in prison.
The minimum and maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI, and, in particular, the members of the Human Trafficking and Child Exploitation Task Force.
The prosecution of this case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorney Lisa Daniels is in charge of the prosecution.
The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.