Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
12 January 2023
Mitias to Pay $1.87 Million to Settle False Claims Act Allegations of Medicare and Medicaid OverbillingRead the Press Release
Mitias Orthopaedics, PLLC, it’s owner Dr. Hanna “Johnny” Mitias, and a subsidiary Champion Orthopedics, have agreed to pay $1,870,714.83 to resolve allegations the orthopedic health services providers knowingly submitted false claims to Medicare and Medicaid, the Department of Justice announced today.
“Taxpayers deserve to receive the products and services billed to their federal health insurance programs. The viability of Medicare and Medicaid is threatened by each wasted dollar. Our people come before profits,” said United States Attorney Clay Joyner. “This settlement sends a clear message that the Department of Justice will hold healthcare providers accountable if they knowingly overbill federal healthcare programs.”
Between Jan. 1, 2008, and Dec. 31, 2015, Mitias and his clinics allegedly submitted false claims to the Medicare and Medicaid programs for brand name viscosupplementation agents for knee injections that were not administered to the beneficiaries of those programs. Rather, a much cheaper, compounded viscosupplementation agent was alleged to have been used and, as a result, the defendants improperly claimed compensation for the higher priced products.
“We are committed to thoroughly investigating claims of fraud and holding health care providers accountable when they break the rules. The public should know we will devote the necessary time and effort to stamp out healthcare fraud in both civil and criminal matters,” said Joyner. “This settlement is an example of how whistleblowers and the government can work together to recoup and deter overbilling practices.”
The settlement resolves allegations in a 2015 lawsuit by a medical device sales representative filed under the whistleblower provisions of the False Claims Act. Those provisions permit private individuals to sue on behalf of the government for false claims and to share in any recovery.
The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the United States Attorney’s Office for the Northern District of Mississippi, the Department of Health & Human Services, Office of Inspector General, and the State of Mississippi Attorney General’s Office Medicaid Fraud Control Unit.
The case is captioned United States ex rel. Gray v. Mitias Orthopaedics, PLLC (3:15-cv-127). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Missoula pair sentenced to prison on drug trafficking, firearms crimes after law enforcement seize more than seven pounds of meth, fentanyl and multiple gunsRead the Press Release
MISSOULA — A Missoula pair convicted of drug trafficking and firearm crimes each were sentenced to prison terms today after law enforcement seized more than seven pounds of meth, fentanyl and firearms during the investigation, U.S. Attorney Jesse Laslovich said.
Carlos Guatimea Augirre, 36, was sentenced to 15 years in prison, to be followed by five years of supervised release. Aguirre pleaded guilty in May 2022 to possession with intent to distribute meth and fentanyl and to possession of a firearm in furtherance of a drug trafficking crime.
Co-defendant Savannah Shoshana Smith, 38, was sentenced to five years and six months in prison, to be followed by four years of supervised release. Smith pleaded guilty in May 2022 to possession with intent to distribute meth and fentanyl and to addict in possession of firearms and ammunition.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that law enforcement served a search warrant on the residence of Smith and Aguirre on Oct. 6, 2021. Officers also conducted a traffic stop of Aguirre to execute a search warrant on the car and found a quarter pound of meth packaged for sale and a 9mm handgun that Aguirre had removed from his body when he was stopped. Inside the residence, officers found approximately 6.9 pounds of meth and fentanyl pills. Seven pounds of meth is the equivalent of about 25,368 doses. Law enforcement also found 21 firearms throughout the residence. Records showed that Smith purchased 22 firearms between February 2020 and August 2021. Smith told officers that Aguirre would give her meth and she would trade the meth for opiate pills. The investigation showed that Aguirre made numerous wire transfers totaling about $22,000 from August 2019 to September 2021 to addresses in Billings; Fresno, California; Las Vegas, Nevada; and Albuquerque, New Mexico. In addition, Aguirre traveled multiple times to Fresno, where he also maintained a residence and had active links to gangs, and Sacramento, California, and to Spokane, Washington. Three of the firearms, all 9mm pistols, that Smith purchased in Montana were recovered in Fresno in three separate criminal investigations that had gang associations.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the Missoula Police Department.
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.
XXX
Mexican national heads to prison for harboring individuals and possessing firearmsRead the Press Release
BROWNSVILLE, Texas – A 22-year-old man illegally residing in San Benito has been ordered to federal prison following multiple convictions, announced U.S. Attorney Alamdar S. Hamdani.
Edgar Garcia-Torres pleaded guilty July 28, 2022, to harboring undocumented individuals within the United States for commercial advantage and private financial gain, being an alien in possession of a firearm and illegal re-entry into the United States.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Garcia-Torres to serve 48 months in federal prison. Not a U.S. citizen, Garcia-Torres is again expected to face removal proceedings following his imprisonment. In handing down the sentence, the court noted the multiple crimes to which Garcia-Torres pleaded guilty.
On June 13, 2022, law enforcement discovered two harbored aliens at a residence located on Palm Drive in San Benito. Shortly after, they arrested Garcia-Torres for harboring the undocumented individuals. A subsequent search of a second residence located on Bowie Street resulted in the seizure of two firearms, one of which was stolen, and $17,500 in U.S. currency. Authorities were able to link the items to Garcia-Torres.
He ultimately admitted to harboring 50-60 undocumented aliens at the location.
Garcia-Torres had been previously removed from the country and did not have lawful presence in the United States.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Border Patrol, Homeland Security Investigations and Cameron County Precinct 4 Constable’s Office conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Mexican Woman Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A woman who illegally returned to the United States after being deported was sentenced January 11, 2023, to more than two months in federal prison.
Lourdes Tetzoyotl-Quiahua, age 33, a citizen of Mexico illegally present in the United States and residing in Ridgeway, Iowa, received the prison term after a November 17, 2022, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Tetzoyotl-Quiahua admitted she had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Tetzoyotl-Quiahua was previously deported in November 2009 following her conviction in the United States District Court for the District of Arizona for illegal entry into the United States, a misdemeanor. She had also been returned to Mexico by immigration officials in September and October 2009. Employment records show that by early January 2010, Tetzoyotl-Quiahua was illegally working in Iowa. On October 20, 2022, immigration officials learned Tetzoyotl-Quiahua had illegally returned to the United States and found her at her residence in Ridgeway.
Tetzoyotl-Quiahua was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Tetzoyotl-Quiahua was sentenced to 79 days’ imprisonment. She must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Tetzoyotl-Quiahua, having completed her sentence, was released to begin serving her term of supervised release.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2061.
Follow us on Twitter @USAO_NDIA.
Methamphetamine Trafficker Sentenced to 5 YearsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Kou Yang, 27, Wausau, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 5 years in prison, to be followed by 3 years of supervised release, for distributing 50 grams or more of methamphetamine. Yang pleaded guilty to this charge on October 5, 2022.
In August 2021, an undercover police officer bought large quantities of methamphetamine from Yang on two separate occasions. After Yang’s arrest, he admitted to purchasing half pound and pound quantities of methamphetamine from local methamphetamine dealers for later distribution to customers.
In sentencing Yang, Judge Conley highlighted that Yang was under state supervision at the time of his arrest for drug trafficking and had learned very little from his prior conviction and prison sentence. He further stressed that, in addition to drug trafficking, the defendant had a significant criminal history involving domestic violence and firearm possession.
The charge against Yang was the result of an investigation conducted by the Central Wisconsin Narcotics Task Force. Assistant U.S. Attorney David J. Reinhard prosecuted this case.
Maryland Felon Sentenced to Statutory Maximum of Five Years in Federal Prison for Possession of a Firearm in a Baltimore School ZoneRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Lawrence Russoe, age 37, of Baltimore, Maryland, to the statutory maximum sentence of five years in federal prison, followed by three years of supervised release, for possession of a firearm within 1,000 feet of a school zone.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Commissioner Michael Harrison of the Baltimore Police Department (BPD).
“Schools should be sacred and free from fear. Felon or no felon, if you’re caught with a gun around a school, we’re seeking to prosecute you federally,” said United States Attorney Erek L. Barron.
According to Russoe’s guilty plea, on June 7, 2021, BPD Detectives received notice of a stolen gray Hyundai vehicle at a fast-food drive-thru in the 2800 block of Greenmount Avenue in Baltimore. Detectives attempted to stop the vehicle, but the driver, later identified as Russoe, refused to stop. A BPD helicopter maintained surveillance of the vehicle as it fled at a high speed, driving recklessly.
As detailed in the plea, Russoe briefly stopped the car to let out a passenger, then continued driving until entering the 3500 block of Parklawn Avenue, where he abandoned the car while it was still in motion. Russoe had a satchel draped across his body as he got out of the car and ran away, with BPD officers in pursuit. Russoe was arrested a short time later. Detectives searched the gray Hyundi and located an extended magazine, loaded with seven rounds of 9mm ammunition, on the rear driver’s side floorboard. In the satchel that Russoe was carrying, law enforcement recovered a privately made firearm (PMF), commonly known as a “ghost gun,” specifically, a Polymer 80, 9mm semi-automatic pistol without a serial number, a scale, seven baggies of marijuana, one clear gelcap containing a mixture of cocaine, heroin, and fentanyl, and a cell phone.
Russoe admitted that he had reasonable cause to believe he was within 1,000 feet of a school while he possessed the firearm, because he drove directly past the Belair-Edison Middle School and the firearm and ammunition were both found approximately 500 feet from the school.
As detailed in his plea agreement, Russo is currently serving a sentence of seven years for a conviction in Baltimore City Circuit Court for first degree assault and possession of a firearm with a felony conviction. Judge Bennett ordered that Russoe’s federal sentence will be served concurrent to his state sentence and that Russoe must forfeit the PMF, extended magazine, and seven rounds of 9mm ammunition.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Jacob Gordin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
# # #
Lorain Man Sentenced to 15 Years in Prison for Distributing Fentanyl that Led to Overdose DeathRead the Press Release
CLEVELAND – Kevin L. Walker Jr., 31, of Lorain, was sentenced on Wednesday, January 11, 2023, to 15 years in prison by U.S. District Judge Christopher A. Boyko after he pleaded guilty to possession of drugs and distribution of fentanyl that led to an overdose death.
“As this sentence demonstrates, our communities will not tolerate drug traffickers and fentanyl dealers who kill or harm our neighbors, friends, and family with their deadly product,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Thanks to the collaborative work of law enforcement, another fentanyl pusher will now spend a significant time behind bars for his actions.”
“Fentanyl continues to flood our nation at an alarming rate, and the citizens of Northern Ohio are not immune from its devastation,” said FBI Cleveland Special Agent in Charge Gregory Nelsen. “This case reflects our commitment to address not only fentanyl, but also the assortment of narcotics making their way into our communities. We will continue to work closely with our federal, state, and local partners to identify drug traffickers and their networks fueling the epidemic.”
According to court documents, Walker was arrested in July 2021 by law enforcement authorities following a warrant issued for corrupting another with drugs. Authorities then searched Walker, a vehicle, and a room he rented and found that Walker was in possession of fentanyl, methamphetamine, and crack cocaine.
Officers then began an investigation into Walker’s drug trafficking activities and learned that on July 28, 2021, Walker intentionally distributed a substance containing fentanyl to a victim who later ingested it, suffered an overdose, and died.
This case was investigated as part of Operation Synthetic Opioid Surge (S.O.S.)., a joint law enforcement initiative that seeks to reduce the supply of deadly synthetic opioids and to identify wholesale distribution networks and international and domestic suppliers in Lorain County.
This case was investigated by the Lorain Police Department, Westlake Police Department, and the Cleveland Division of the FBI. This case was prosecuted by Assistant United States Attorneys Robert F. Corts and Robert J. Kolansky.
Local Man Sentenced for Obstructing Pittsburgh Police during May 30, 2020 Pittsburgh ProtestRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, was sentenced in federal court on a charge of obstruction of law enforcement during civil disorder, United States Attorney Cindy K. Chung announced today.
Jordan Coyne, 26, was sentenced to 18 months of incarceration followed by three years of supervised release by United States District Judge Arthur J. Schwab. Judge Schwab permitted the defendant to remain on bond and self-report by March 10, 2023, to begin his sentence.
The court was previously advised that on May 30, 2020, Coyne did knowingly and willfully throw multiple pieces of concrete at a vehicle occupied by police officers. The defendant was caught on video throwing numerous items that struck police officers, including rocks, bricks, pieces of concrete, and a tear gas canister. The tear gas canister struck an officer in the hand, causing the officer’s thumb to bleed and swell. Coyne’s actions caused the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
Assistant United States Attorney Jonathan D. Lusty prosecuted this case on behalf of the government.
The Pittsburgh Bureau of Police and the Federal Bureau of Investigation conducted the investigation.
Lead defendant in Richmond County meth-trafficking conspiracy sentenced to more than 20 years in federal prisonRead the Press Release
AUGUSTA, GA: A Georgia prison inmate who led an Augusta-area methamphetamine-trafficking ring has been sentenced to more than two decades in federal prison.
Magnum Jelani Neely, 38, of Millen, Ga., an inmate at Dooly State Prison, was sentenced to 278 months in federal prison after previously pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Neely to pay a $2,500 fine and to serve five years of supervised release upon completion of his prison term. There is no parole in the federal system.
“Magnum Neely orchestrated a large-scale meth distribution operation from behind bars while serving a 10-year state sentence for violent crime,” said U.S. Attorney Estes. “This investigation dismantled that drug-trafficking operation, and substantial federal sentences hold these drug dealers accountable.”
As described in court documents and testimony, agents from the U.S. Drug Enforcement Administration in November 2021 joined investigators from the Richmond County Sheriff’s Office and the Burke County Sheriff’s Office in identifying Neely as coordinating a methamphetamine trafficking operation from inside prison. Neely used contraband cell phones to contact couriers outside prison to deliver drugs to buyers both inside and outside Georgia prisons. The Georgia Department of Corrections assisted in the investigation, and Neely and three co-conspirators were indicted in April 2022. All four defendants admitted guilt.
The three co-conspirators include:
- Patricia Gregory, 45, of Augusta, was sentenced to 87 months in prison and fined $2,000 after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine;
- Fanesia Smith, 39, of Augusta, was sentenced to 48 months in prison after pleading guilty to Conspiracy to Possess with Intent to Distribute, and to Distribute, 50 Grams or More of Methamphetamine; and,
- Yvonne Smith, 58, of Augusta – mother of Fanesia Smith – awaits sentencing after pleading guilty to Misprision of a Felony for knowing of, and helping to conceal, the criminal activity of the conspiracy.
“DEA is fully committed to tirelessly pursuing criminals who sell drugs, whether they’re selling them on the streets or from inside a prison,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy.
“We appreciate the support of our local and federal partners in ensuring that justice will be served on this individual for his role in jeopardizing the safe operations of our facilities, and most importantly, the safety of the public,” said Georgia Department of Corrections Commissioner Tyrone Oliver.
The case was investigated by the U.S. Drug Enforcement Administration, the Richmond County Sheriff’s Office, the Burke County Sheriff’s Office, and the Georgia Department of Corrections, and prosecuted for the United States by Assistant U.S. Attorney Jeremiah L. Johnson
Lawrence Man Sentenced to Five Years in Prison for Selling Firearms and NarcoticsRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in federal court in Boston for selling ghost guns, ammunition and fentanyl.
Miguel Mejia, 35, was sentenced by U.S. District Court Judge William G. Young to five years in prison and four years of supervised release. In September 2022, Mejia pleaded guilty to one count of dealing in firearms without a license and one count of possession with intent to distribute distribution of 40 grams of more fentanyl.
Between July 7, 2020 and Dec. 16, 2020, Mejia sold five privately made firearms (PMFs), more commonly known as ghost-guns along with ammunition. Specifically, Mejia sold two Glock 26 style PMF pistols, two Glock 17 style PMF pistols and 11 rounds of 9mm ammunition. Additionally, on July 31, 2020, Mejia sold approximately 50 grams of fentanyl. During a search of Mejia’s residence on Dec. 16, 2020, a Glock 43 style PMF pistol; 40 rounds of 9mm ammunition; three pistol magazines; a pill press and pill stamping set; and five baggies of narcotics cutting agents were recovered.
“Stopping the flow of illegal firearms into our communities is the most critical step in combatting violent crime. Ghost guns are particularly dangerous because in addition to being deadly, they are unlicensed and untraceable,” said United States Attorney Rachael S. Rollins. “Mr. Mejia profited off of bringing deadly guns and drugs into our communities. This sentence is just, and Lawrence residents are safer because of it."
“Illegally dealing firearms without a license, particularly privately manufactured firearms, will continue to remain an ATF priority and will be stopped in its tracks. The ripple effect of violence cannot be overstated and ATF will be vigilant about going after these violent criminals,” said James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division.
U.S. Attorney Rollins and James M. Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, & Explosives, Boston Field Division made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Rollins’ Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Kanawha County Man Sentenced to Prison for Fentanyl CrimeRead the Press Release
CHARLESTON, W.Va. – Samuel Manriquez, 37, of Cross Lanes, was sentenced today to four years and six months in prison, to be followed by three years of supervised release, for possession with intent to distribute fentanyl.
According to court documents and statements made in court, on February 17, 2021, law enforcement officers executed a search warrant at a Charleston residence where Manriquez was hiding to evade arrest. Manriquez refused to surrender, and after several hours, was removed from a crawl space beneath the residence’s basement floor. Officers found two bags of fentanyl totaling approximately 6.3 grams and $1,620 in Manriquez’s left pants pocket. Manriquez admitted that he intended to distribute some of the fentanyl found on his person.
On January 8, 2021, law enforcement officers responded to a 911 hang-up call at Manriquez’s residence. Manriquez admitted that he struck a female guest in the side of her head with his fist during an argument and then left the residence before officers arrived. The officers executed a search warrant at Manriquez’s residence and found a Walther HK MP5 .22-caliber rifle, a Ruger .22-caliber pistol, parts to a Hi-Point .45-caliber pistol, $4,680 and drug paraphernalia including a scale and aluminum foil with a white powder residue.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Manriquez was prohibited from possessing firearms because of his felony convictions for distribution of U-47700, an opioid, and distribution of U-47700, and furanyl fentanyl in United States District Court for the Southern District of West Virginia on November 1, 2019.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Metropolitan Drug Enforcement Network Team (MDENT), and the Kanawha County Sheriff’s Office.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Julie M. White prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-176.
###
Justice Department Secures over $31 Million from City National Bank to Address Lending Discrimination AllegationsRead the Press Release
LOS ANGELES – The Justice Department announced today an agreement to resolve allegations that City National Bank engaged in a pattern or practice of lending discrimination by “redlining” in Los Angeles County. This resolution will include over $31 million in relief to impacted individuals and communities.
The agreement, which is part of the Department’s nationwide Combating Redlining Initiative that Attorney General Merrick B. Garland launched in October 2021, represents the largest redlining settlement in its history. City National is the largest bank headquartered in Los Angeles and among the fifty largest banks in the United States.
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. A complaint filed in federal court today alleges that from 2017 through at least 2020, City National avoided providing mortgage lending services to majority-Black and Hispanic neighborhoods in Los Angeles County and discouraged residents in these neighborhoods from obtaining mortgage loans.
The complaint also alleges that during that time period other banks received more than six times as many applications in majority-Black and Hispanic neighborhoods in Los Angeles County than City National each year. In addition, City National only opened one branch in a majority-Black and Hispanic neighborhood in the past twenty years, despite having opened or acquired 11 branches during that time period. And unlike at its branches in majority-white areas, City National did not assign any employee to generate mortgage loan applications at that branch.
“Fifteen months after I vowed that the Justice Department would be aggressively stepping up our efforts to combat discriminatory practices in the housing market, we have today secured the largest redlining settlement in Department history,” said Attorney General Merrick B. Garland. “So far, the Combating Redlining Initiative has secured over $75 million dollars in relief for communities that have suffered from lending discrimination. The Justice Department will continue to build on our efforts to vigorously enforce federal fair lending laws and work to ensure that financial institutions provide equal opportunity for every American to obtain credit. In advance of what would have been Dr. Martin Luther King Jr.’s 94th birthday, it is a fitting time to reaffirm our commitment to that work, and to the pursuit of justice for all Americans.”
“In the words of Dr. Martin Luther King Jr., the issue of fair housing is a ‘moral issue.’ Thus, ending redlining is a critical step to closing the widening gaps in homeownership and wealth, especially in a city as large and diverse as Los Angeles,” said United States Attorney Martin Estrada. “It is unacceptable that redlining persists into the 21st century, and this case demonstrates our commitment to combat redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending, and meeting the credit needs in Los Angeles.”
“This settlement is historic, marking the largest settlement ever secured by the Justice Department against a bank engaged in unlawful redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement embodies Dr. Martin Luther King Jr.’s commitment to fighting economic injustice and ensuring that Black Americans and all communities of color are able to access the American dream and freely access the credit needed to purchase a home. Redlining is a practice from a bygone era, runs contrary to the principles of equity and justice, and has no place in our economy today. This settlement should send a strong message to the financial industry that we expect lenders to serve all members of the community and that they will be held accountable when they fail to do so.”
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court in Los Angeles along with the complaint, City National Bank has agreed to do the following:
• Invest at least $29.5 million in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in Los Angeles County; at least $500,000 for advertising and outreach targeted toward the residents of these neighborhoods; at least $500,000 for a consumer financial education program to help increase access to credit for residents; and at least $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
• Open one new branch in a majority-Black and Hispanic neighborhood and evaluate future opportunities for expansion within Los Angeles County; ensure at least four mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods; and employ a full-time Community Lending Manager who will oversee the continued development of lending in majority-Black and Hispanic neighborhoods.
• Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services for majority-Black and Hispanic census tracts within Los Angeles County.
City National worked cooperatively with the Department to remedy the redlining allegations. In conjunction with this settlement, City National has announced that it is proactively taking steps to expand its lending services in other markets around the country to provide greater access to credit in communities of color. Specifically, City National is working to facilitate additional homeownership opportunities in underserved communities, including by creating a residential mortgage special purpose credit program to cover geographic areas in various locations throughout the country, including New York, Georgia, Nevada, and Tennessee. Additionally, City National is planning to launch a small business lending program that will be aimed at assisting underserved business owners in operating and growing their business.
In October 2021, Attorney General Garland launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The Initiative is expanding the Department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state Attorneys General offices. Since the Initiative was launched, the Department has announced five redlining cases and settlements with a combined $75 million in relief for communities that have been the victims of lending discrimination, including a $20 million settlement with Trident Mortgage Company and a $13 million settlement with Lakeland Bank.
Assistant United States Attorney Katherine Hikida of the Civil Division’s Civil Rights Section and attorneys from the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division handled this matter.
Individuals in the seven counties of the Central District of California may report housing discrimination by contacting the United States Attorney’s Office at (213) 894-2879 or emailing [email protected].
city_national_-_complaint.pdf city_national_-_consent_order.pdfJustice Department Secures over $31 Million from City National Bank to Address Lending Discrimination AllegationsRead the Press Release
The Justice Department announced today an agreement to resolve allegations that City National Bank (City National) engaged in a pattern or practice of lending discrimination by “redlining” in Los Angeles County. City National is the largest bank headquartered in Los Angeles and among the 50largest banks in the United States. This resolution will include over $31 million in relief to impacted individuals and communities. The agreement, which is part of the Department’s nationwide Combating Redlining Initiative that Attorney General Merrick B. Garland launched in October 2021, represents the largest redlining settlement in its history.
“Fifteen months after I vowed that the Justice Department would be aggressively stepping up our efforts to combat discriminatory practices in the housing market, we have today secured the largest redlining settlement in Department history,” said Attorney General Merrick B. Garland. “So far, the Combating Redlining Initiative has secured over $75 million dollars in relief for communities that have suffered from lending discrimination. The Justice Department will continue to build on our efforts to vigorously enforce federal fair lending laws and work to ensure that financial institutions provide equal opportunity for every American to obtain credit. In advance of what would have been Dr. Martin Luther King Jr.’s 94th birthday, it is a fitting time to reaffirm our commitment to that work, and to the pursuit of justice for all Americans.”
“This settlement is historic, marking the largest settlement ever secured by the Justice Department against a bank engaged in unlawful redlining,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement embodies Dr. Martin Luther King Jr.’s commitment to fighting economic injustice and ensuring that Black Americans and all communities of color are able to access the American dream and freely access the credit needed to purchase a home. Redlining is a practice from a bygone era, runs contrary to the principles of equity and justice, and has no place in our economy today. This settlement should send a strong message to the financial industry that we expect lenders to serve all members of the community and that they will be held accountable when they fail to do so.”
“In the words of Dr. Martin Luther King Jr., the issue of fair housing is a ‘moral issue.’ Thus, ending redlining is a critical step to closing the widening gaps in homeownership and wealth, especially in a city as large and diverse as Los Angeles,” said U.S. Attorney Martin Estrada for the Central District of California. “It is unacceptable that redlining persists into the 21st century, and this case demonstrates our commitment to combat redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending, and meeting the credit needs in Los Angeles.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. The complaint filed in federal court today alleges that from 2017 through at least 2020, City National avoided providing mortgage lending services to majority-Black and Hispanic neighborhoods in Los Angeles County and discouraged residents in these neighborhoods from obtaining mortgage loans. The complaint also alleges that during that time period other banks received more than six times as many applications in majority-Black and Hispanic neighborhoods in Los Angeles County than City National each year. In addition, City National only opened one branch in a majority-Black and Hispanic neighborhood in the past 20 years, despite having opened or acquired 11 branches during that time period. And unlike at its branches in majority-white areas, City National did not assign any employee to generate mortgage loan applications at that branch.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the Central District of California along with a complaint, City National Bank has agreed to do the following:
- Invest at least $29.5 million in a loan subsidy fund for residents of majority-Black and Hispanic neighborhoods in Los Angeles County; at least $500,000 for advertising and outreach targeted toward the residents of these neighborhoods; at least $500,000 for a consumer financial education program to help increase access to credit for residents; and at least $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
- Open one new branch in a majority-Black and Hispanic neighborhood and evaluate future opportunities for expansion within Los Angeles County; ensure at least four mortgage loan officers are dedicated to serving majority-Black and Hispanic neighborhoods; and employ a full-time Community Lending Manager who will oversee the continued development of lending in majority-Black and Hispanic neighborhoods.
- Conduct a Community Credit Needs Assessment, a research-based market study, to help identify the needs for financial services for majority-Black and Hispanic census tracts within Los Angeles County.
City National worked cooperatively with the Department to remedy the redlining allegations. In conjunction with this settlement, City National has announced that it is proactively taking steps to expand its lending services in other markets around the country to provide greater access to credit in communities of color. Specifically, City National is working to facilitate additional homeownership opportunities in underserved communities, including by creating a residential mortgage special purpose credit program to cover geographic areas in various locations throughout the country, including New York, Georgia, Nevada, and Tennessee. Additionally, City National is planning to launch a small business lending program that will be aimed at assisting underserved business owners in operating and growing their business.
In October 2021, Attorney General Garland launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the Department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state Attorneys General offices. Since the initiative was launched, the Department has announced five redlining cases and settlements with a combined $75 million in relief for communities that have been the victims of lending discrimination, including a $20 million settlement with Trident Mortgage Company and a $13 million settlement with Lakeland Bank.
Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online.
Español
Justice Department Secures Agreement with Hotel in Kankakee, Illinois, to Ensure Access for People with DisabilitiesRead the Press Release
SPRINGFIELD, Ill. – The Department of Justice announced today it has reached a settlement agreement pursuant to the Americans with Disabilities Act (ADA) with the Economy Inn, located in Kankakee, Illinois, to resolve alleged violations of Title III of the Americans with Disabilities Act. The Department reached the agreement with Prakash Patel, who owns and operates the hotel. The agreement requires that the hotel rent rooms and provide equal service to customers with disabilities.
The settlement resolves an ADA complaint alleging that when an individual with a disability attempted to check in at the hotel, the hotel refused to rent a room to the individual. A hotel employee allegedly told the individual that it was the hotel’s policy not to rent rooms to “people on walkers and wheelchairs” because the hotel could not be “liable” for them. The complaint alleged the individual had nowhere else to stay at the time.
The complaint prompted an investigation by the United States Attorney’s Office for the Central District of Illinois. The ADA requires that hotels provide access to individuals with disabilities, including those who use wheelchairs, walkers, or other devices to assist with movement.
“It is illegal for people with disabilities to be treated differently because of their disability and that includes when renting a room from a hotel,” said Assistant U.S. Attorney Joshua I. Grant for the Central District of Illinois. “People with disabilities often face barriers that make living more difficult, but one barrier that should no longer exist is simply finding a place to stay. I encourage all hotels in the Central District of Illinois to review their policies and facilities to ensure they are accessible to all.”
Under the agreement, the hotel will establish written policies ensuring that individuals with disabilities can rent rooms from the hotel and enjoy equal access to its services. The hotel will also provide ADA training to its staff. Without admitting violating the ADA, the district also agreed to a monetary payment to the individual identified in the complaint to fully resolve the matter.
Assistant U.S. Attorney Grant represented the government during the investigation and settlement process. For more information about the ADA, please visit www.ada.gov, or call the Department of Justice’s toll-free information line at (800) 514-0301 or (800) 514-0383 (TDD). Information about filing a complaint, including instructions for filing a complaint online, can be found at https://www.justice.gov/crt/how-file-complaint.
Jersey City Attorney Charged with Wire Fraud and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A Jersey City attorney was charged with defrauding his clients of more than two million dollars, U.S. Attorney Philip R. Sellinger announced today.
James R. Lisa, 67, is charged by indictment with three counts of wire fraud and four counts of aggravated identity theft. He was arraigned today by videoconference before U.S. Magistrate Judge José R. Almonte, pleaded not guilty and was release on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
In 2014, Lisa was retained by a family to help repatriate millions of dollars that had been transferred by other family members to offshore bank accounts decades earlier. Lisa was also retained to help resolve the tax issues related to the repatriation of the funds. In 2015, Lisa successfully repatriated more than $6 million of the family’s funds, but proceeded to falsely advise the family that the funds remained offshore. In 2017, Lisa provided $4 million of the repatriated funds to the family but continued to falsely represent that the remaining $2 million remained beyond his control.
Lisa falsely told the family that he successfully resolved the tax implications of repatriating the funds. In 2016, Lisa sent the family a fraudulent IRS “closing agreement” reflecting an agreement with the IRS for the family to pay $3 million in taxes and penalties for the repatriated funds. In 2018, Lisa sent the family another fraudulent closing agreement reflecting an agreement with the IRS for the family to pay $2 million in taxes and penalties because only $4 million was purportedly repatriated. In fact, the IRS never entered into these agreements and the IRS employees who purportedly signed the documents never did so.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a fine not to exceed $250,000. Each count of aggravated identity theft carries a statutory mandatory penalty of two years in prison, which must run consecutively to any other term of imprisonment, and a fine not to exceed $250,000.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Sellinger credited special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), Mid Atlantic Field Division, under the direction of Special Agent in Charge Andrew McKay; and IRS - Criminal Investigation, Newark Field Office, under the direction of Acting Special Agent in Charge Tammy Tomlins, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
Jeremy Smallwood Sentenced to Life Imprisonment for Firearms and Drug OffensesRead the Press Release
GREENEVILLE, Tenn. – On January 12, 2023, Jeremy Smallwood, 38, of Kingsport, Tennessee, was sentenced to life imprisonment in federal prison, by the Honorable Clifton Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville.
Following a three-day trial, ending on August 25, 2022, Smallwood was convicted of possession with the intent to distribute heroin, in violation of 21 U.S.C. § 841(a)(1); possession with the intent to distribute marijuana, in violation of 21 U.S.C. § 841(a)(1); possession of a firearm in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c)(1)(A); and three counts of knowing possession of a firearm by a convicted felon, in violation of 18 U.S.C. § 922(g)(1).
The evidence presented at trial demonstrated that Smallwood, who had previously been convicted of multiple felony offenses, possessed firearms on three separate occasions. Additionally, at the time of his arrest by Sullivan County officers on August 17, 2020, he was in possession of not only two firearms but also heroin and marijuana that he intended to distribute.
The defendant qualified as an armed career criminal, which requires a minimum of 15 years up to life imprisonment, and was also designated a career offender under the federal sentencing guidelines. In determining the sentence, Judge Corker found that the defendant had obstructed justice by threatening witnesses with violence. The Court’s sentence reflected the defendant’s extensive criminal history, the seriousness of the offenses of conviction, and the need to protect the public from the dangers posed by this defendant.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of a joint investigation by the Sullivan County Sheriff’s Office, Kingsport Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant United States Attorneys J. Gregory Bowman and Thomas McCauley represented the United States.
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.
###
Jefferson County Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas - A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Edward Lee Simien, 43, pleaded guilty on Sep. 9, 2022, to possession of a firearm by a prohibited person and was sentenced to 41 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on April 24, 2022, local law enforcement officers were serving an arrest warrant on Simien, when they observed Simien enter a vehicle near the rear of his business. Officers attempted to conduct a traffic stop on Simien, however he fled from officers at a high rate of speed. Eventually Simien ran into the fence of a local business, disabling his vehicle. Simien then exited the vehicle with what officers observed was a firearm with an extended magazine in his hand. Simien fled on foot and threw the firearm nearby. Officers eventually took Simien into custody and recovered the firearm he discarded. Further investigation revealed Simien was a previously convicted felon and prohibited from owning or possessing firearms or ammunition. Simien was indicted by a federal grand jury on May 11, 2022.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Russell James.
# # #
Indictment Charges Eight Members of Alleged D.C. Drug Gang with ConspiracyRead the Press Release
Defendants Arrested for Allegedly Peddling Cocaine, Heroin, Fentanyl , and PCP
WASHINGTON – An indictment was unsealed today charging eight individuals in a drug conspiracy. Agents with the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), and officers with the Metropolitan Police and Prince George’s County Police Departments arrested seven of the defendants yesterday.
Melvin Grayson, 49, of District Heights, MD, Christopher Wells, 44, of Oxon Hill, MD, Jimmy Davis a/k/a “Fatz,” 41, of Bowie, MD, Terrell Washington a/k/a “Turk,” 43, of Hyattsville, MD, Kenneth Watts, 55, of Upper Marlboro, MD, James Kinard a/k/a/ “Fat Rat,” 45, of Temple Hills, MD, Charles Cunningham, 56, of the District of Columbia, made an initial appearance today in U.S. District Court for the District of Columbia. The defendants are each charged with conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine, 100 grams of more of heroin, 40 grams or more of fentanyl, and one kilogram or more of phencyclidine. Tyrone Ragland a/k/a “Tech,” 54, of the District of Columbia, is also charged.
During the arrests and related search warrants on multiple residences, law enforcement recovered at least 8 firearms (including a ghost gun and shotgun), ammunition, drugs (including fake pills containing fentanyl, crack cocaine, powder cocaine, and PCP), drug paraphernalia, and more than $60,000 cash.
“The organizations peddling poison on our streets and in our communities need to know that they are on the radar of law enforcement and we intend to put them out of business,” said U.S. Attorney Matthew M. Graves. “Neither the drugs these groups spread nor the violence their operations attract will be tolerated.”
“This investigation demonstrates the collective commitment of the FBI, DEA, and MPD’s Violent Crime Impact Team (VCIT) to dismantling street crews who are the purveyors of the illicit drugs that drive the violent crime in our communities,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office's Criminal and Cyber Division. “Together with our law enforcement partners, the FBI will continue to hold those accountable who traffic in the violence and narcotics responsible for causing the irreparable damage to the neighborhoods we all live and work in.”
“DEA’s top priority is combatting the current fentanyl crisis and the drug-related violence that is devastating the very foundation of our community and family structures,” said Jarod Forget, Special Agent in Charge of the DEA Washington Division. “Enforcement actions like this, along with our federal, state, and local partners, make a huge impact in our area and we will not stop working until we have rid our neighborhoods of these harms.”
“Each and every day, the men and women of the Metropolitan Police Department and our federal law enforcement partners continue to hold people accountable for committing crimes in the District of Columbia,” said Robert J. Contee III, Chief of the Metropolitan Police Department of the District of Columbia. “This investigation is yet another example of how local, regional, and federal law enforcement partners are making the region safer.”
The arrests followed a joint investigation by the FBI Washington Field Office Cross Border Task Force and the DEA Washington Field Office, with assistance from MPD’s Violent Crime Suppression Division and the Prince George’s County Police Department. The Cross Border Task Force is a part of the FBI’S Safe Streets Initiative and targets the most egregious and violent street crews operating in the District of Columbia.
This case is being investigated by the Washington Field Office of the FBI and DEA, the Metropolitan Police Department, and the Prince George’s County Police Department. Valuable assistance was provided by the U.S. Attorney’s Office for the District of Maryland and the Baltimore/Washington High Intensity Drug Trafficking Area (HIDTA) program.
This investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
It is being prosecuted by Assistant U.S. Attorneys Nihar Mohanty and George P. Eliopoulos of the U.S. Attorney’s Office for the District of Columbia.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Illinois Man Sentenced to 19 Years in Prison for Coercion and Enticement of a MinorRead the Press Release
BOSTON – An Illinois man was sentenced yesterday in federal court in Boston for coercing and enticing a minor to produce sexually explicit images and videos.
Domenique Dequon Hines, 25, of Crystal Lake, Ill., was sentenced by U.S. Senior District Court Judge William G. Young to 19 years in prison and five years of supervised release. In September 2022, Hines pleaded guilty to one count of coercion and enticement of a minor.
“Less than two months after being released from prison for a child pornography offense, Mr. Hines went right back to exploiting and sexualizing children. He used social media to target, coerce and threaten a 14-year-old victim for his own sexual gratification. Mr. Hines is a danger to our children and accordingly, he will be removed from our community for nearly two decades,” said United States Attorney Rachael S. Rollins. “Protecting the safety, innocence and wellbeing of our children, especially from the threat of online predators like Mr. Hines, is a top priority.”
“Domenique Dequon Hines is a calculating and manipulative predator who targeted, exploited, and harmed a vulnerable child for life. No sentence for this man will wipe away the scars he left on his 14-year-old victim, and our thoughts are with both her and her family today,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division. “It is the FBI’s sincere hope that his punishment—almost two decades behind bars—will deter others from engaging in this repulsive, criminal conduct.”
In October 2020, approximately six weeks after being released from serving a sentence in Illinois for a child pornography offense, Hines met a 14-year-old Massachusetts victim on Instagram. Hines and the victim exchanged phone numbers and profile pictures and began communicating online via iMessage and other forms of internet communication for a period of approximately 10 days. On the first day of communications, Hines confirmed with the victim that she was 14 years old and he informed the victim that he is 23 years old. After confirming her age, Hines knowingly persuaded, induced, enticed and coerced the victim to take and send him, sexually explicit images and videos of herself. Hines requested that the victim call him “daddy,” and explained that if her parents ever try to take her phone, she should delete all of their text messages.
Hines was previously convicted of a child pornography offense in the state of Illinois.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Norfolk County District Attorney Michael W. Morrissey made the announcement. Assistant U.S. Attorney Suzanne Sullivan Jacobus and Christopher R. Looney of Rollins’ Criminal Division prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Idaho Man Indicted for Federal Hate Crime Against LGBTQ Residents of BoiseRead the Press Release
BOISE — A federal grand jury in Boise returned an indictment on Jan. 10, charging an Idaho man with a hate crime.
The indictment alleges that on Oct. 12, 2022, Matthew Alan Lehigh, 31, attempted to cause bodily injury to two people in Boise by driving his car at them. This assault, the indictment alleges, was motivated by the actual and perceived sexual orientation of the victims.
Boise Police apprehended Lehigh, and the Ada County Prosecuting Attorney’s Office filed state charges against Lehigh.
If convicted of the federal charges, Lehigh faces a maximum penalty of ten years in federal prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Josh Hurwit for the District of Idaho and Special Agent in Charge Dennis W. Rice of the FBI’s Salt Lake City Field Office made the announcement. The Boise Police Department and FBI Salt Lake City Field Office investigated the case.
Assistant United States Attorney Katherine Horwitz for the District of Idaho and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If members of the public have information concerning hate crimes or wish to report a similar crime, they should contact the Federal Bureau of Investigation at (208) 344-7843 or the U.S. Attorney’s Office at (208) 334-1211.
###
Idaho Man Indicted for Federal Hate Crime Against LGBTQ Residents of BoiseRead the Press Release
A federal grand jury in Boise returned an indictment on Jan. 10, charging an Idaho man with a hate crime.
The indictment alleges that on Oct. 12, 2022, Matthew Alan Lehigh, 31, attempted to cause bodily injury to two people in Boise by driving his car at them. This assault, the indictment alleges, was motivated by the actual and perceived sexual orientation of the victims.
Boise Police apprehended Lehigh, and the Ada County Prosecuting Attorney’s Office filed state charges against Lehigh.
If convicted of the federal charges, Lehigh faces a maximum penalty of 10 years in federal prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Josh Hurwit for the District of Idaho and Special Agent in Charge Dennis W. Rice of the FBI’s Salt Lake City Field Office made the announcement. The Boise Police Department and FBI Salt Lake City Field Office investigated the case.
Assistant U.S. Attorney Katherine Horwitz for the District of Idaho and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section are prosecuting the case.
An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If members of the public have information concerning hate crimes or wish to report a similar crime, they should contact the FBI at (208) 344-7843 or the U.S. Attorney’s Office at (208) 334-1211.
Hyde Park Man Pleads Guilty to Armed Bank RobberyRead the Press Release
BOSTON – A Hyde Park man pleaded guilty today in federal court in Boston to the armed robbery of a Hyde Park bank.
Paul Whooten, 59, pleaded guilty to one count of armed bank robbery before U.S. District Court Judge Patti B. Saris who scheduled sentencing for April 12, 2023. Whooten was charged in February 2020.On Dec. 21, 2019, Whooten entered a branch of Rockland Trust Bank in Hyde Park, carrying something that appeared to be a rifle. Upon entering the bank, Whooten pointed it at the teller before stating, “Give me all of your money.” The teller filled Whooten’s bag with $13,603 in cash, and Whooten fled the bank on foot. Bank surveillance cameras captured images of the Whooten throughout the robbery.
Shortly after leaving the bank, Whooten was observed on the street wearing clothes consistent with those observed inside the bank and still holding what appeared to be a rifle in his hand. Law enforcement immediately apprehended Whooten and a black rifle-type BB gun and bag of cash were recovered from him.
The charge of armed bank robbery provides for a sentence of up to 25 years in prison, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the U.S. Federal Bureau of Investigation, Boston Division; and Boston Police Commissioner Michael Cox made the announcement. Assistant U.S. Attorney Adam W. Deitch of Rollins’ Criminal Division is prosecuting the case.High-Ranking Hyena Crips Gang Member Charged with the Murder of 15-Year-Old Samuel Joseph in BrooklynRead the Press Release
An indictment was partially unsealed this afternoon in federal court in Brooklyn charging Martial H. Amilcar, also known as “Drippy,” and a co-defendant with the murder of 15-year-old Samuel Joseph. The indictment charges Amilcar, a senior member of the Hyena Crips gang, with killing Joseph in front of his teenage sister on February 22, 2019 as Joseph was leaving his apartment building near the Little Haiti section of Brooklyn. Amilcar was taken into federal custody earlier today, and is scheduled to be arraigned tomorrow before United States Magistrate Judge Taryn A. Merkl. If convicted of murder during and through the use of a firearm in relation to murder in-aid-of racketeering, Amilcar faces a potential sentence of life imprisonment or the death penalty.
Breon Peace, United States Attorney for the Eastern District of New York, and Ivan J. Arvelo, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the arrest and charge.
“There is no crime more heinous than the killing of an innocent child. As alleged, Amilcar and his co-defendant brazenly murdered 15-year-old Samuel Joseph in retaliation for activities this young boy had nothing to do with,” stated United States Attorney Peace. “The brutal cycle of gang violence in this district, including the violence perpetrated by members of the Hyena Crips, must be stopped. We and our law enforcement partners are committed to that end. It is my hope that today’s indictment brings some measure of justice for the victim’s family.”
Mr. Peace expressed his appreciation to HSI’s Violent Gang Task Force and the New York City Police Department for their outstanding work in this investigation.
“While nothing can undo the pain that Martial Amilcar and his co-defendant allegedly inflicted upon the family of Samuel Joseph, it is my hope that by seeing him held accountable for his alleged crimes, they will be given some form of peace,” stated HSI Special Agent-in-Charge Arvelo. “HSI New York, along with our law enforcement partners, are dedicated to the eradication of gang violence in our communities, and we will continue to seek, apprehend, and hold accountable those who intend perpetuate such cruelty.”
As alleged in court documents, on February 22, 2019, Amilcar and a co-defendant drove to Samuel Joseph’s apartment building and waited outside until Joseph’s teenage sister arrived at the building’s entrance. While Joseph’s sister prepared to enter the building, Samuel Joseph was walking down an internal staircase towards the building’s exit. When Joseph’s sister opened the building door to enter, Amilcar walked into the building behind her, pulled out a gun and shot the 15-year-old boy three times at close range, killing him.
The shooting and events leading up to it were captured on security camera footage taken nearby.Amilcar and another individual allegedly killed Samuel Joseph in retaliation for an altercation earlier that day between Amilcar’s relative, a fellow gang member, and Joseph’s older brother, a rival gang member.
The charge in the indictment is an allegation and the defendant is presumed innocent unless and until proven guilty.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Devon Lash, Andrew Wenzel, Jessica Weigel, and Joshua Dugan are in charge of the prosecution.
The Defendant:
MARTIAL H. AMILCAR (also known as “Drippy”)
Age: 26
Brooklyn, New YorkE.D.N.Y. Docket No. 23-CR-18 (PKC)
Hattiesburg Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Hattiesburg, Miss.- A Hattiesburg, Mississippi man pled guilty to possession of child pornography, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Zane Michael Bonner, 44, pled guilty on January 10, 2023, in U.S. District Court in Hattiesburg.
According to court documents, Bonner was found to be in possession of a cellular telephone at his rehabilitation center residence in Hattiesburg on November 18, 2021, from which a forensic examination recovered over 2,500 visual depictions of minors engaging in sexually explicit conduct. Bonner has a previous conviction for possession of child pornography in the U.S. District Court for the Southern District of Alabama.
Bonner is scheduled to be sentenced on April 19, 2023, and faces a maximum penalty of 20 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation is investigating the case with the assistance of the Mississippi Attorney General’s Cyber Crimes Division and the Forest County Sheriff’s Office.
Assistant U.S. Attorney Andrea Jones is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Hamden Man Admits Attempting to Travel to Fight for ISISRead the Press Release
KEVIN IMAN McCORMICK, 29, of Hamden, pleaded guilty today in Bridgeport federal court to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
U.S. Attorney Vanessa Roberts Avery, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Acting Special Agent in Charge Jean Pierre Njock of the Federal Bureau of Investigation’s New Haven Division made the announcement.
According to court documents and statements made in court, between August and October 2019, McCormick made several statements to others expressing a desire to travel to Syria and to fight for ISIS. In one conversation in October 2019, McCormick stated “I gotta fight bro, because those people, Abu Masa and ISIL, they fought for me bro, I know it, I can feel it, in my heart. So it’s my time to fight . . . It just is what it is bro, it’s just my – it’s just my time to go bro.” When McCormick was asked to elaborate on where he would like to travel, McCormick responded, “I don’t know, I don’t know bro – it’s gotta be like Syria. Where ISIL is at….whichever place is easiest, whatever place I can get there the fastest, the quickest, the easiest, and where I can have a rifle and I can have some people bro. That’s what I need, I need a rifle and I need some people, I need Islamic law, I need, that’s what I need, because if I have these things, it’s gonna to be very hard to kill me.”
On October 12, 2019, McCormick attempted to board a flight from Connecticut to Jamaica, but was prevented by the U.S. Department of Homeland Security. McCormick subsequently told an individual that he wanted to travel to Jamaica, and then onward to Syria to join ISIS. He also indicated that he wanted to acquire weapons.
On October 19, 2019, McCormick made a video during which he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. Also on that date, he purchased a plane ticket from Toronto, Canada, to Amman, Jordan. On October 21, 2019, McCormick was arrested after he traveled to a small private airport in Connecticut where he expected to board a plane that would fly him to Canada.
McCormick has been detained since his arrest.
The charge of attempting to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years. McCormick is scheduled to be sentenced by U.S. District Judge Kari A. Dooley on April 6.
This matter has been investigated by Federal Bureau of Investigation’s Joint Terrorism Task Force (JTTF) with the assistance of the Transportation Security Administration (TSA).
The FBI’s JTTF includes participants from Homeland Security Investigations (HSI), Internal Revenue Service – Criminal Investigation Division, Naval Criminal Investigative Service, U.S. Marshals Service, U.S. Citizenship and Immigration Services, Connecticut State Police, Connecticut Department of Correction, Metropolitan Transportation Authority Police Department, Norwich Police Department, Hartford Police Department, Stamford Police Department, Norwalk Police Department, Town of Groton Police Department, UConn Police Department, Yale Police Department, and New York Police Department.
This case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed of the District of Connecticut and Trial Attorneys Justin Sher and John Cella from the Counterterrorism Section of the Justice Department’s National Security Division.
Haitian National Sentenced to Federal Prison for Firearms TraffickingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Peniel Olibris, age 32, of Denver, was sentenced to one year and one day in federal prison, plus one year of supervised release, for smuggling goods, specifically firearms, from the United States to Haiti.
According to the plea agreement, the defendant came to the attention of law enforcement in October 2019 when a manager at a firearms store in Arvada reported a suspicious customer. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) began investigating Mr. Olibris’ other recent firearm purchases and learned he had recently purchased a number of pistols from another firearms store. ATF agents also determined, after Mr. Olibris’ background check was delayed, he went in to purchase firearms with an associate. In total, between February 2019 and June 2020, the two purchased 77 firearms. Law enforcement agents spoke with Mr. Olibris in July 2020, at which time he admitted to shipping “a few” firearms to Haiti, where he is from and where some of his family members still live. He explained that he placed the firearms in boxes inside of cars, and had the drivers take the cars from Colorado to Florida. In Florida, one of Mr. Olibris’ associates coordinated with the shipping company to send the cars containing firearms to Haiti. Mr. Olibris explained that he was trying to obtain a federal firearms license that would enable him to sell firearms but had not yet done so. According to documentation from the shipping company located in Fort Lauderdale, Florida, Mr. Olibris shipped thirteen cars to Haiti between September 30, 2019, and May 29, 2020. The terms and conditions for each shipment required Mr. Olibris to affirm the vehicles did not contain firearms, which are “prohibited by law.”
United States District Court Judge Regina M. Rodriguez sentenced Peniel Olibris on January 12, 2023.
“Illegal firearms trafficking – whether within the United States or across international borders – poses a serious threat to the safety of our communities,” said United States Attorney Cole Finegan. “We will continue to work with our law enforcement partners to disrupt the flow of these firearms, which have the potential to contribute to the incidence of violent crime.”
“The illegal flow of firearms fuels violence and places innocent people in danger and is responsible for the loss of lives daily,” said ATF Acting Special Agent in Charge Kirk Howard. “In our continued partnerships with Homeland Security Investigations and other federal, state and local partners, we will continue to vigorously pursue illegal firearms traffickers and hold them accountable for their reckless and illegal trades.”
“This sentencing sends the very clear message that HSI and our partners will relentlessly investigate and prosecute those who try to transport weapons across state lines with the ultimate goal of smuggling them overseas,” said Ryan L. Spradlin, special agent in charge, HSI Denver. “Our dedicated special agents and intelligence professionals will stop at nothing to ensure that weapons never make it into the hands of dangerous criminal organizations.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorneys Laura Cramer-Babycz and Albert Buchman handled the prosecution of the case.
CASE NUMBER: 22-cr-00119
- Greene County Man Indicted for Possessing over 10,000 Fentanyl Pills and a Kilogram of Fentanyl Powder
Glenn County Man Sentenced to 3 Years in Prison for Being a Felon in Possession of AmmunitionRead the Press Release
SACRAMENTO, Calif. — Erick Perez, 35, of Orland, was sentenced today to 37 months in prison for being a felon in possession of ammunition and for violating his conditions of supervised release from a prior federal felon-in-possession conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in 2019, Perez pleaded guilty to being a felon in possession of a firearm. In January 2021, he was sentenced to time served and began serving a three-year term of supervised release. Less than three months later, on April 1, 2021, law enforcement lawfully searched Perez’s house and found two loaded, privately manufactured handguns also known as ghost guns. Perez is prohibited from possessing firearms or ammunition because he had previously been convicted of felonies.
This case was the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Orland Police Department; the Glenn County Investigations and Narcotics Task Force; and the Glenn County District Attorney’s Office. Assistant U.S. Attorney Emily G. Sauvageau prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Dana Green, 38 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after being found guilty of being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Green was sentenced to 180 months in prison followed by 4 years of supervised release.
According to documents in the case, in March 2022, while responding to a disturbance call, police located Green who was in possession of a handgun. Green’s criminal history revealed he has three prior felony offenses which prohibit him from possessing the firearm. His three prior felony convictions also qualified him as an armed career criminal for sentencing purposes.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE –Jonathan Cross, 35 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to enticing a minor to engage in prostitution, announced United States Attorney Clifford D. Johnson.
Cross was sentenced to 120 months in prison followed by 3 years of supervised release.
According to documents in the case, between January and March 2022, Cross was communicating on social media with an undercover officer posing as a minor female. During the online communications, Cross made arrangements to meet up for sex and advised he would purchase a contraceptive before they met. On March 30, 2022, Cross was arrested when he arrived to meet who he thought was the minor female. At the time of his arrest, Cross was in possession of the contraceptive.
This case was investigated by the Federal Bureau of Investigation with the assistance of Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
###
Former Fugitive Sentenced to over 11 Years in Federal Prison for Possessing Child Sexual Abuse Material, 14 Years After Fleeing the United StatesRead the Press Release
INDIANAPOLIS- Larry Shaw, 49, of Indianapolis, Indiana, was sentenced to 135 months in federal prison for possession of child sexual abuse materials.
According to court documents, in 2007, the Indiana State Police began an investigation into known videos and files of child sexual abuse material being traded via Gnutella. Gnutella was a peer-to-peer network that allowed users to share files across the internet without using a central server. Larry Shaw was identified as one of several targets of the investigation.
On March 19, 2007, law enforcement officers executed a search warrant at Shaw’s residence. During an interview with officers, Shaw admitted to downloading child sexual abuse materials using peer-to-peer networks and storing them on his computer. Forensic examination of the computer found 177 video files depicting prepubescent children engaging in sexually explicit conduct with adults, including violent masochistic conduct, and depictions of rapes of children.
On May 2, 2007, Shaw, his legal counsel, and federal prosecutors met to discuss a pre-indictment resolution of the case. Shaw requested to think about the offer over the weekend, and the government agreed. On May 5 or 6, 2007, Shaw had fled the United States on an AirChina flight to Beijing. Shaw was apprehended and arrested nearly 14 years later in October of 2021 after he attempted to re-enter the United States in Chicago.
“Not only did Mr. Shaw trade abhorrent images and videos of children being sexually violated and tortured, but he also sought to evade the consequences of his actions for over 14 years,” said U.S. Attorney for the Southern District of Indiana, Zachary A. Myers. “The successful arrest and prosecution of this defendant demonstrates that our Office, HSI, and IMPD will work to bring criminals to justice no matter how long it takes. The serious sentence imposed today demonstrates that those who seek gratification from the horrific abuse of the most vulnerable will be held accountable.”
“Possessing and viewing child exploitation material revictimizes children each time it is downloaded or shared. Our agents and partners are profoundly committed to investigating these crimes and going after the perpetrators,” said HSI Chicago Special Agent in Charge R. Sean Fitzgerald. “We will continue to work tirelessly to identify and investigate offenders like Shaw in our communities and ensure they pay for their crimes against children.”
Homeland Security Investigations investigated this case with the valuable assistance of IMPD. The sentence was imposed by U.S. District Court Judge, Richard L. Young. Judge Young also ordered that Shaw be supervised by the U.S. Probation office for 10 years following his release from federal prison. Shaw must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanks Assistant United States Attorney Kate E. Olivier, who prosecuted this case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Former Executive Director at Bedford Senior Living Center Sentenced to over 2 Years in Federal Prison for Embezzling over $419,000 over Five YearsRead the Press Release
NEW ALBANY- Dara Little, 35, of Mitchell, Indiana, was sentenced to 27 months in federal prison after pleading guilty to three counts of wire fraud.
According to court documents, in May of 2014, Dara Little was hired as the Executive Director of Nursing at a senior living facility in Bedford, Indiana. As part of her role, Little had access to a web-based platform used to submit business expense reimbursement requests. In January of 2016, Little was fired for timesheet fraud and theft of prescription medicine, however her access to the reimbursement request platform was not immediately disabled.
In January 2016, after she was fired, Little submitted 24 expense reimbursement requests totaling more than $58,770. The reimbursement requests contained forged and falsified receipts that had no connection to Little’s employment at the senior living facility. For example, Little submitted a receipt for $3,923.00 worth of “small furniture purchases” purportedly made at an Ashley Furniture location in Cincinnati that does not actually exist. Little continued to make reimbursement requests for expenses such as dishwasher maintenance, locksmith services, iPads, and baby strollers for five months after her termination. Little’s expense reimbursement request account was deactivated in September 2016.
The day after Little’s access to the expense reimbursement request was terminated, Little began using another employee’s account to submit more fraudulent reimbursement requests. As she did with her own account, Little submitted requests that contained forged and falsified receipts. Between September 2016 and March 2021, Little submitted 172 fraudulent reimbursement requests using the other employee’s account and, as a result, received more than $173,900 in payments from her former employer to which she was not entitled. The fraudulent requests she submitted included receipts from a Nando’s Chicken in England, a California Shoe Store, and for a cheerleading uniform. The receipt picture that Little used from Nando’s Chicken went viral in 2013 after it was posted online and was identified as belonging to the singer, Beyonce.
In October 2017, Little also began to use yet another employee’s account to submit fraudulent reimbursement requests to her former employer that contained forged and falsified receipts. Between October 2017 and March 2021, Little submitted 155 additional fraudulent reimbursement requests with the second employee’s account and, as a result, received more than $161,000 in payments to which she was not entitled. The fraudulent requests she submitted included the same receipt from Nando’s Chicken over 58 times, the Indiana Bureau of Motor Vehicles, Men’s Wearhouse, and for a Kid’s First Chemistry Set.
Investigators searched Little’s cell phone and found a note in which she admitted to stealing over $400,000 from her former employer over the course of five years, how the money was stolen, and what personal expenses the stolen funds paid for.
Little stole a total of more than $419,542 from her former employer.
“For over five years, the defendant repeatedly defrauded her former employer through lies and forged documents,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Our office will continue to prioritize prosecutions of fraud schemes that have lasting impacts on businesses and individuals. I commend the work of the FBI and prosecutors in our office to untangle this long string of embezzlement, proving once again that those who chose to violate the law in service of their greed will be held accountable for their crimes.”
“Ms. Little intentionally sought to personally benefit by diverting funds that were not her own to line her own pocket. This sentence should send a clear message to others who might consider doing the same,” said FBI Indianapolis Acting Special Agent in Charge Robert Middleton. “The FBI and our law enforcement partners will continue to work diligently to identify and investigate those who choose to enrich themselves at the expense of others.”
The FBI investigated this case. The sentence was imposed by U.S. District Court Judge Sarah Evans Barker. Judge Barker also ordered that Little be supervised by the U.S. Probation Office for 3 years following her release from federal prison. Little has also been ordered to pay the full amount of $419,542.45 in restitution.
U.S. Attorney Myers thanked Assistant United States Attorney Kate Olivier, who prosecuted this case.
Former Chief Financial Officer of Email Security Company Pleads Guilty to $50 Million Scheme to Defraud Investors and LendersRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that NIHAT CARDAK, the former Chief Financial Officer (“CFO”) of the Virginia-based email security company GigaMedia Access Corporation, d/b/a GigaTrust (“GigaTrust”), pled guilty today in Manhattan federal court in connection with a scheme to defraud investors and lenders of millions of dollars through false and misleading misrepresentations, including fabricated bank statements and audit reports, and by impersonating a purported customer, auditor, and GigaTrust lawyer. U.S. District Judge Paul G. Gardephe accepted the defendant’s guilty plea.
U.S. Attorney Damian Williams said: “Nihat Cardak, along with his co-defendants Robert Bernardi and Sunhil Chandra, chose to lie and mislead investors and lenders in order to keep GigaTrust afloat instead of owning up to the company’s financial reality. Their scheme came crashing down in 2019 as GigaTrust filed for bankruptcy, and Cardak and Bernardi have now accepted responsibility for their criminal actions.”
According to the allegations in the Indictment and other filings and statements made in court:[1]
From in or about 2016 through at least in or about 2019, GigaTrust was a private company headquartered in Virginia that purported to be a market-leading provider of cloud-based content security solutions. Robert Bernardi founded GigaTrust and served as its Chief Executive Officer, while CARDAK and Sunil Chandra were GigaTrust’s CFO and Vice President of Business Development, respectively. The defendants devised a scheme to defraud investors and lenders by (i) fabricating and disseminating false and misleading bank account statements that overstated GigaTrust’s cash deposits; (ii) fabricating and disseminating false and misleading audit materials that purported to have been issued by GigaTrust’s auditors and overstated GigaTrust’s performance; (iii) forging and disseminating a false and misleading letter purporting to be from GigaTrust’s New York-based counsel; and (iv) impersonating or causing others to impersonate a purported customer and auditor of GigaTrust on telephone calls with a prospective lender.
Specifically, Bernardi sent fabricated audit materials to a New York-based investment firm, and Bernardi and CARDAK used fabricated bank statements to obtain multiple rounds of loans and investments for GigaTrust worth millions of dollars. After a New York-based bank (“Bank-1”), which had loaned GigaTrust $25 million, declared that GigaTrust had defaulted on the terms of its loan agreement, Bernardi and CARDAK induced additional investments in GigaTrust through, among other things, forging a letter purporting to be from GigaTrust’s New-York based counsel. Shortly thereafter, while negotiating another $25 million deal with a lender (“Lender-1”), Bernardi and CARDAK devised a scheme to impersonate a GigaTrust customer and auditor on requested diligence calls, which induced Lender-1 to make a $25 million loan to GigaTrust. Bernardi recruited Chandra to pose as one of GigaTrust’s alleged customers on a call with Lender-1. Bernardi and CARDAK also fabricated bank statements and sent them to Lender-1 right before closing the $25 million deal.
GigaTrust filed for Chapter 7 bankruptcy protection in the District of Delaware on or about November 27, 2019.
On August 17, 2022, Bernardi pled guilty to conspiracy to commit securities fraud, bank fraud, and wire fraud before Judge Paul G. Gardephe.
* * *
CARDAK, 52, of Clifton, Virginia, pled guilty to one count of conspiracy to commit securities fraud, which carries a maximum sentence of five years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Sentencing for CARDAK is scheduled for May 16, 2023.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation in this case. Mr. Williams further thanked the Securities and Exchange Commission, which has filed a civil enforcement action against the defendants, for its cooperation and assistance in this investigation.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Peter J. Davis and Emily A. Johnson are in charge of the prosecution.
The charges contained in the Indictment against Sunil Chandra 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 Indictment constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Biddeford Middle School Ed Tech Sentenced to 3+ Years for Possession of Child Sexual Abuse MaterialRead the Press Release
PORTLAND, Maine: A Biddeford man was sentenced today in U.S. District Court in Portland for possessing child sexual abuse materials.
Chief U.S. District Judge Jon D. Levy sentenced Jesse Kiesel, 49, to 44 months in prison followed by five years of supervised release. He was also ordered to pay $7,500 in monetary assessments applicable to defendants in child sexual exploitation cases and $4,000 in restitution. He pleaded guilty on July 21, 2022.
According to court documents, in April 2021, Kiesel engaged in an internet chat with an undercover member of law enforcement posing as a 13-year-old girl. During the chat, Kiesel steered the conversation towards the topics of sex and sexual contact and ultimately transmitted images of his erect penis to the undercover officer. Following the execution of a search warrant at his residence, numerous sexually explicit images of minors were recovered from his computer. According to court documents, at the time of his arrest, Kiesel was employed as an Ed Tech II at Biddeford Middle School.
Homeland Security Investigations investigated the case with assistance from the Biddeford Police Department, the Newbury (MA) Police Department and the United States Marshals Service.
To report an incident involving the possession, distribution, receipt or production of child pornography: Child sexual abuse material – "child pornography" – captures the sexual abuse and exploitation of children. These images document victims’ exploitation and abuse, and they suffer re-victimization each time the images are viewed. File a report with the National Center for Missing & Exploited Children at https://report.cybertip.org/ or 1-800-843-5678. Your report will be forwarded to a law enforcement agency for investigation and action. If you have an emergency that requires an immediate law enforcement response, call 911 or contact your local police or sheriff’s department.
Project Safe Childhood: This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, visit www.justice.gov/psc.
# # #
Updated 01/23/23: reporting information added
Federal Inmate Indicted on Escape ChargeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Usbaldo Padilla, age 49, of Los Angeles, California, was indicted by a federal grand jury on an escape charge.
According to United States Attorney Gerard M. Karam, the indictment alleges that on October 11, 2022, Padilla escaped from the extended limits of his confinement from the United States Penitentiary Canaan, Waymart, Pennsylvania. Padilla had been furloughed to be transported by commercial bus to report to a halfway house in California to complete the term of his imprisonment. Padilla failed to report as required. Los Angeles police later arrested Padilla on November 11, 2022, while walking on a street, in Los Angeles, California.
The case was investigated by the United States Marshals and the Bureau of Prisons. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
# # #
Extradited Seminole County Man Sentenced to More Than Eight Years in Federal Prison for COVID Relief FraudRead the Press Release
Orlando, Florida – U.S. District Judge Wendy W. Berger has sentenced Don V. Cisternino (47, Chuluota) to eight years and six months in federal prison for wire fraud, aggravated identity theft, and illegal monetary transaction. The court also ordered Cisternino to forfeit a total of $1,071,923.98 seized from five different bank accounts, which are funds traceable to proceeds of the offense. In addition, the court entered an order of forfeiture in the amount of $7.21 million, which represents the total proceeds obtained by Cisternino from the wire fraud scheme. The court also ordered Cisternino to pay restitution to the U.S. Small Business Administration in the amount of $7,445,855.89. Cisternino had pleaded guilty on September 20, 2022, after being extradited from Croatia.
According to court documents, in May 2020, Cisternino fraudulently secured more than $7.2 million in emergency funds through a Paycheck Protection Program (“PPP”) loan. The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted March 2020. It was designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in potentially forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding. The PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses were required to use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities.
Cisternino’s PPP loan application falsely claimed that his business, MagnifiCo, had 441 employees and monthly payroll expenses in 2019 of more than $2.8 million. In truth, MagnifiCo had no employees other than Cisternino. In support of his PPP loan application, Cisternino submitted false W-2s for MagnifiCo’s purported employees, many of which listed the names and Social Security numbers of actual persons who were not MagnifiCo employees and who had not authorized Cisternino to use their identities.
Once he obtained the emergency loan of $7.2 million, Cisternino did not use these funds for qualifying expenses. Instead, he spent the funds for his own personal enrichment, including the purchase of Maserati and Mercedes-Benz vehicles, as well as the purchase of a 12-acre estate with a 12,579 sq. ft. residence in Seminole County, pictured below.
On January 22, 2021, after learning that he was under investigation for PPP loan fraud, Cisternino fled to Switzerland. He was arrested on April 11, 2021, pursuant to an Interpol Red Notice, as he attempted to enter Croatia from Slovenia by way of Italy.
“I would like to congratulate the dedicated prosecutors and agents, as well as our international partners, who brought this defendant to justice,” said Department of Justice Acting Director of COVID-19 Fraud Enforcement Michael Galdo. “This case demonstrates the Department of Justice’s ongoing commitment to prosecute those who defrauded our pandemic relief programs and bring them to justice no matter where in the world they try to hide.”
“The Paycheck Protection Program (PPP) was enacted to help businesses keep their workforce paid at the height of the pandemic. Unfortunately, Mr. Cisternino chose instead to use the funds he obtained as his personal pandemic piggyback,” said Ronald A. Loecker, IRS-CI Acting Special Agent in Charge. “This sentencing should serve as a warning to those who might have engaged in similar fraudulent activity that holding those accountable for these crimes remains a high priority for federal authorities.”
This case was investigated by the Internal Revenue Service – Criminal Investigation, Tampa Field Office. The Justice Department’s Office of International Affairs and Croatian authorities provided valuable assistance in securing Cisternino’s arrest and extradition. It was prosecuted by Assistant United States Attorney Chauncey A. Bratt, with assistance from Assistant United States Attorneys Nicole Andrejko and Jeremy Bloor.
El Departamento de Justicia obtiene más de $31 millones de City National Bank para resolver alegaciones de discriminación crediticiaRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo para resolver alegaciones de que City National Bank (City National) desarrolló un patrón o una práctica de discriminación crediticia a través de la exclusión financiera [“redlining” en inglés] en el Condado de Los Angeles. City National es el banco más importante con sede en Los Angeles y se cuenta entre los 50 bancos más grandes en los Estados Unidos. Esta resolución incluirá más de $31 millones en concepto de reparaciones para las personas y comunidades afectadas. El acuerdo, que forma parte de la Iniciativa para Combatir la Exclusión Financiera (solo en inglés) de nivel nacional del Departamento que lanzó el Fiscal General Merrick B. Garland en octubre de 2021, representa el acuerdo sobre exclusión financiera más importante de su historia.
"Quince meses después de que prometí que el Departamento de Justicia intensificaría agresivamente nuestros esfuerzos por combatir prácticas discriminatorias en el mercado de vivienda, hoy hemos conseguido el acuerdo sobre exclusión financiera más importante de la historia del Departamento”, dijo el Fiscal General Merrick B. Garland. “A la fecha, la Iniciativa para Combatir la Exclusión Financiera ha obtenido más de $75 millones en concepto de reparaciones para las comunidades que han sufrido discriminación crediticia. En el Departamento de Justicia seguiremos ampliando nuestros esfuerzos por hacer cumplir enérgicamente las leyes federales sobre equidad crediticia y nos esforzaremos para asegurar que las instituciones financieras ofrezcan a toda persona estadounidense igualdad de oportunidades para obtener crédito. En vísperas de la fecha en que el Dr. Martin Luther King Jr. hubiera cumplido 94 años, es un momento idóneo para reafirmar nuestro compromiso con su misión y para procurar la justicia para toda persona estadounidense”.
“Este acuerdo es histórico y marca la resolución más grande que jamás ha obtenido el Departamento de Justicia contra un banco que practicaba la exclusión financiera ilícita”, dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo personifica el compromiso del Dr. Martin Luther King con la lucha contra la injusticia económica y con asegurar que toda persona de ascendencia afroestadounidense y todas las comunidades de color puedan tener acceso al sueño estadounidense y acceso libre al crédito que necesitan para comprar una vivienda. La exclusión financiera es una práctica de época antigua, contraviene los principios de equidad y justicia, y no tiene cabida en nuestra economía de hoy. Este acuerdo debe servir para enviar un mensaje claro a la industria financiera: nuestra expectativa es que los prestamistas proveen servicios a todos los miembros de la comunidad, y se responsabilizará a quienes no lo hagan”.
“Aprovechando las palabras del Dr. Martin Luther King Jr., el asunto de la vivienda justa es un ‘asunto moral’. Por lo tanto, poner fin a la exclusión financiera es un paso necesario para cerrar las brechas cada vez más amplias en términos de vivienda propia y patrimonio, especialmente en una ciudad tan grande y diversa como Los Angeles”, dijo Martin Estrada, Fiscal de los EE. UU. para el Distrito Central de California. “Es inaceptable ver que persiste la exclusión financiera en el siglo XXI, y este caso demuestra nuestro compromiso con combatir la exclusión financiera y responsabilizar a los bancos y demás entidades cuando desarrollan prácticas de discriminación ilícita. A través de este acuerdo, estamos tomando un paso grande hacia adelante al eliminar las barreras ilícitas y discriminatorias en los préstamos hipotecarios residenciales, y al satisfacer las necesidades de crédito en Los Angeles”.
La exclusión financiera es una práctica ilegal mediante la cual los prestamistas evitan prestar servicios crediticios a personas que residen en comunidades de color debido a la raza, color de piel u origen nacional de los residentes de dichas comunidades. La demanda entablada este día en el tribunal federal alega que entre el 2017 y al menos el 2020, City National evadió prestar servicios de crédito hipotecario a los vecindarios de mayoría afroestadounidense e hispana en el Condado de Los Angeles, y puso obstáculos a la obtención de préstamos hipotecarios de parte de los residentes de dichos vecindarios. La demanda alega también que durante el mismo período, otros bancos recibieron más de seis veces el número de solicitudes de vecindarios de mayoría afroestadounidense e hispana en Los Angeles que lo que recibió City National cada año. Además, durante los últimos 20 años, City National abrió solamente una sucursal en un vecindario de mayoría afroestadounidense e hispana, a pesar de abrir o adquirir 11 sucursales durante el mismo período. Y en contraste con sus sucursales en zonas de mayoría blanca, City National no asignó a ningún empleado en dicha sucursal para generar solicitudes de préstamos hipotecarios.
Según la orden por consentimiento propuesta, la cual está sujeta a la aprobación del tribunal y fue presentada este día ante el Tribunal de Distrito de los EE. UU. para el Distrito Central de California, junto con una demanda, City National Bank ha aceptado las siguientes condiciones:
- Invertirá al menos $29.5 millones en un fondo de subsidios crediticios para residentes de vecindarios de mayoría afroestadounidense e hispana en el Condado de Los Angeles; al menos $500,000 en publicidad y alcance destinados a los residentes de dichos vecindarios; al menos $500,000 en un programa de educación financiera de consumidores para ayudar a mejorar el acceso al crédito por parte de los residentes; y al menos $750,000 en el desarrollo de alianzas comunitarias para prestar servicios que mejoren el acceso al crédito hipotecario residencial.
- Abrirá una nueva sucursal en un vecindario de mayoría afroestadounidense e hispana, y evaluará oportunidades de expansión futura dentro del Condado de Los Angeles; garantizará que se dediquen al menos cuatro ejecutivos de crédito hipotecario para atender a los vecindarios de mayoría afroestadounidense e hispana; y contratará a un Gerente de Crédito Comunitario a tiempo completo para supervisar el desarrollo continuo de servicios crediticios en los vecindarios de mayoría afroamericana e hispana.
- Desarrollará una Evaluación Comunitaria de Necesidades Crediticias, un estudio de mercado basado en la investigación, para ayudar a identificar las necesidades de servicios financieros en las secciones censales de mayoría afroestadounidense e hispana dentro del Condado de Los Angeles.
City National trabajó en cooperación con el Departamento para remediar los alegatos de exclusión financiera. Simultáneamente con este acuerdo, City National ha anunciado que está tomando medidas proactivas para ampliar sus servicios crediticios en otros mercados del país para ofrecer mayor acceso al crédito por parte de las comunidades de color. Específicamente, City National se está esforzando para facilitar mayores oportunidades de vivienda propia en comunidades desfavorecidas, incluso mediante la creación de un programa de crédito hipotecario residencial de propósito especial para atender zonas geográficas en varias partes del país, entre ellas New York, Georgia, Nevada y Tennessee. Además, City Nacional tiene proyectado el lanzamiento de un programa de crédito para pequeñas empresas a fin de ayudar a los empresarios desfavorecidos a manejar y hacer crecer sus negocios.
En octubre de 2021, el Fiscal General Garland lanzó la Iniciativa para Combatir la Exclusión Financiera (solo en inglés) del Departamento de Justicia, un esfuerzo coordinado de ejecución de la ley para abordar esta forma persistente de discriminación en contra de las comunidades de color. Esta iniciativa está ampliando el alcance del Departamento mediante el fortalecimiento de las alianzas entre las fiscalías de los EE. UU. en todo el país, sus socios regulatorios y sus aliados en las fiscalías generales estatales. Desde el lanzamiento de la iniciativa, el Departamento ha anunciado cinco casos de exclusión financiera y acuerdos por un valor combinado de $75 millones en concepto de reparaciones para las comunidades que han sido víctimas de discriminación crediticia, incluyendo un acuerdo por $20 millones con Trident Mortgage Company y un acuerdo por $13 millones con Lakeland Bank.
Se puede encontrar información adicional sobre la aplicación de las leyes sobre equidad crediticia en www.justice.gov/fairhousing. Las personas pueden denunciar la discriminación crediticia al llamar a la línea telefónica del Departamento de Justicia para informar sobre discriminación en la vivienda en 1-833-591-0291 o mediante la presentación de un informe en línea.
English
Decatur Man Sentenced to 46 Months for Sexual Abuse of a MinorRead the Press Release
United States Attorney Steven Russell announced that Juwan Grant, 24, of Decatur, Nebraska, was sentenced today in federal court in Omaha for sexual abuse of a minor. United States District Judge Brian C. Buescher sentenced Grant to imprisonment for 46 months. There is no parole in the federal system. After his release from prison, he will begin a 5-year term of supervised release and will be required to register as a sex offender.
Grant impregnated a minor victim in the early months of 2021 on the Omaha Nation Indian Reservation. The child was carried to term and was born in November of 2021. The minor victim was 12 years old at the time of the offense. Grant was 10 years older.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Federal Bureau of Investigation.
Crypto Fraud Victims Receive over $17 Million in Restitution from BitConnect SchemeRead the Press Release
A federal district court in San Diego ordered today that over $17 million in restitution be distributed to approximately 800 victims from over 40 different countries due to their investment losses in BitConnect, a massive cryptocurrency investment scheme, which defrauded thousands of investors worldwide.
On Sept. 16, 2021, Glenn Arcaro, 44, the top U.S.-based promoter for BitConnect, pleaded guilty to conspiracy to commit wire fraud. Separately, on Feb. 25, 2022, the founder of BitConnect, Satish Kumbhani, was indicted for his central role in the multibillion-dollar fraud.
As part of Arcaro’s plea, he admitted to conspiring with others to exploit investor interest in cryptocurrency by fraudulently marketing BitConnect’s initial coin offering and digital currency exchange as a lucrative investment. Arcaro and co-conspirators misled investors about BitConnect’s “Lending Program.” Under this program, Arcaro touted BitConnect’s purported proprietary technology, known as the “BitConnect Trading Bot” and “Volatility Software,” as being able to generate substantial profits and guaranteed returns by using investors’ money to trade on the volatility of cryptocurrency exchange markets.
In truth, however, BitConnect operated a textbook Ponzi scheme by paying earlier BitConnect investors with money from later investors. Arcaro and his co-conspirators ensured that up to 15% of the money invested into BitConnect went directly into a slush fund to be used for the benefit of its owner and promoters.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Randy Grossman for the Southern District of California, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Special Agent in Charge Tyler Hatcher of the IRS Criminal Investigation (IRS-CI) Los Angeles Field Office made the announcement.
The FBI Cleveland Field Office and IRS-CI Los Angeles Field Office investigated the case. The Justice Department’s Office of International Affairs and U.S. Postal Inspection Service provided indispensable assistance to the investigation.
Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Carl Brooker, Lisa Sanniti, and Mark W. Pletcher and Contract Attorney Mark McDonald for the Southern District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Council Bluffs Woman Sentenced for Wire FraudRead the Press Release
United States Attorney Steven Russell announced that Loretta L. Janssen, 58, of Council Bluffs, Iowa, was sentenced today by United States District Judge Brian C. Buescher to 12 months’ and one day imprisonment for wire fraud. After Janssen’s release from prison, she will begin a three-year term of supervised release. There is no parole in the federal system. Janssen was also ordered to pay restitution of $200,963.11.
During 2015 to 2021, Janssen paid her personal credit card using funds drawn from a business bank account of her former employer, for whom she had worked as a bookkeeper. The former employer did not authorize any of the payments. Each month from June 2015 to July 2021, Janssen initiated the payment of her personal credit card, using her online account, and selected the former employer’s bank account as the source for the payments. The cumulative total was $200,963.11.
This case was investigated by the United States Secret Service and the Sarpy County Sheriff’s Office.
Connecticut Man Admits to Attempting to Travel to Fight for ISISRead the Press Release
Kevin Iman McCormick, 29, of Hamden, pleaded guilty today in federal court to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.
According to court documents and statements made in court, between August and October 2019, McCormick made several statements to others expressing a desire to travel to Syria and to fight for ISIS. In one conversation in October 2019, McCormick stated, “I gotta fight bro, because those people, Abu Masa and ISIL, they fought for me bro, I know it, I can feel it, in my heart. So it’s my time to fight . . . It just is what it is bro, it’s just my – it’s just my time to go bro.” When McCormick was asked to elaborate on where he would like to travel, McCormick responded, “I don’t know, I don’t know bro – it’s gotta be like Syria. Where ISIL is at….whichever place is easiest, whatever place I can get there the fastest, the quickest, the easiest, and where I can have a rifle and I can have some people bro. That’s what I need, I need a rifle and I need some people, I need Islamic law, I need, that’s what I need, because if I have these things, it’s gonna to be very hard to kill me.”
On Oct. 12, 2019, McCormick attempted to board a flight from Connecticut to Jamaica but was prevented by the U.S. Department of Homeland Security. McCormick subsequently told an individual that he wanted to travel to Jamaica, and then onward to Syria to join ISIS. He also indicated that he wanted to acquire weapons.
On Oct. 19, 2019, McCormick made a video during which he pledged allegiance to ISIS and its leader, Abu Bakr Al-Baghdadi. Also on that date, he purchased a plane ticket from Toronto, Canada, to Amman, Jordan. On Oct. 21, 2019, McCormick was arrested after he traveled to a small private airport in Connecticut where he expected to board a plane that would fly him to Canada.
McCormick has been detained since his arrest.
The charge of attempting to provide material support to a designated foreign terrorist organization carries a maximum term of imprisonment of 20 years. McCormick is scheduled to be sentenced by U.S. District Judge Kari A. Dooley on April 6.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Vanessa Roberts Avery for the District of Connecticut, and Assistant Director Robert R. Wells of the FBI’s Counterterrorism Division made the announcement.
The FBI’s Joint Terrorism Task Force (JTTF) is investigating the case with assistance provided by the Transportation Security Administration (TSA).
Assistant U.S. Attorney Peter S. Jongbloed of the District of Connecticut and Trial Attorneys Justin Sher and John Cella of the National Security Division’s Counterterrorism Section are prosecuting the case.
Collin County Man Charged with Distributing Fentanyl in the Eastern District of TexasRead the Press Release
PLANO, Texas – A Plano has been charged with drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Eric William Mather, also known as “Truth”, 36, was named in a fourth superseding indictment returned by a federal grand jury on Nov. 9, 2022 in the Eastern District of Texas. The indictment charges Mather with multiple federal violations including conspiracy to distribute fentanyl and conspiracy to launder money. Mather made his initial appearance on Jan. 12, 2023, before U.S. Magistrate Judge Christine Nowak.
According to the indictment, in September of 2022, the North Texas North Texas OCDETF Strike Force 2 (SF2), with the assistance of the DEA Dallas Tactical Diversion Squad (TDS), identified Mather as a fentanyl source of supply selling raw powdered fentanyl, and counterfeit pharmaceutical pills laced with fentanyl. During his arrest, a search warrant was executed on his residence, resulting in the seizure of over 2 kilograms of raw powdered fentanyl, over a kilogram of fentanyl laced pills, a pill press, 30 firearms, and luxury vehicles. Mather is ultimately alleged to be responsible for multiple overdoses in the North Texas region.
If convicted, Mather faces up to life in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the U.S. Postal Inspection Service; Drug Enforcement Administration; U.S. Marshals Service; IRS-Criminal Investigations; Dallas Police Department; and the Collin County Sheriff's Office. The case is being prosecuted by Assistant U.S. Attorney Heather Rattan.
An indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
###
Cocaine Dealer Sentenced to More Than Six Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Leon Erick Williams (41, St. Petersburg) to 6 years and 9 months in federal prison for distributing cocaine. Williams had pleaded guilty on October 11, 2022.
According to court documents, Williams previously served a 12-year federal prison sentence for his involvement in a multi-kilogram cocaine distribution conspiracy in Hillsborough County. In February 2022, while on federal supervised release for that offense, Williams sold cocaine to undercover police officers at an adult entertainment club in Pinellas Park. Williams then coordinated another cocaine deal with the undercover officers via text message. A few days later, Williams sold the undercover officers more cocaine in the club’s restroom. Unbeknownst to the undercover officers, Williams had been arrested on unrelated drug charges on the night of February 9, 2022. He was released on bond from the Pinellas County Jail on February 10, 2022, and returned to the club later that day to sell more cocaine.
This case was investigated by the Pinellas County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney David W.A. Chee.
Clearwater Drug Dealer Sentenced to Fifteen Years in Federal Prison for Distributing FentanylRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Justin Roberson (34, Clearwater) to 15 years in federal prison for possession with the intent to distribute methamphetamine and fentanyl. Roberson had pleaded guilty on September 20, 2022.
According to court documents, the Clearwater Police Department (CPD) and the Drug Enforcement Administration (DEA) were involved in an investigation involving the distribution of methamphetamine, cocaine, and fentanyl in Clearwater. Law enforcement received information that Roberson was distributing cocaine and methamphetamine. Undercover operations conducted by CPD and DEA resulted in the arrest of Roberson for the distribution of methamphetamine and fentanyl. Additionally, law enforcement recovered several firearms used by Roberson during his distribution of the narcotics. The firearms included rifles and semi-automatic weapons.
This case was investigated by the Clearwater Police Department and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorneys Craig Gestring and Maria Guzman.
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.
Clay County Man Sentenced to Prison for Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Robert Owen Johnson, 56, of Procious, was sentenced today to six years in prison, to be followed by five years of supervised release, for distribution of child pornography. Johnson must also register as a sex offender.
According to court documents and statements made in court, on February 20, 2021, Johnson used Facebook and his cell phone to distribute a video of child pornography to another Facebook user during a conversation. Johnson further admitted that between 2020 and 2021, he used this Facebook account to chat with individuals and to possess and distribute child pornography.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Kristin F. Scott prosecuted the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-155.
###
Chandler Man Sentenced to 30 Months for Alien Smuggling in Southern ArizonaRead the Press Release
TUCSON, Ariz. – Michael Andrew Nelson, 30, of Chandler, Arizona, was sentenced Tuesday, January 10, 2023, by United States District Judge Scott H. Rash to 30 months in prison, followed by 36 months of supervised release. Nelson was convicted of Conspiracy to Transport Illegal Aliens for Profit and Transportation of Illegal Aliens for Profit following a bench trial held on August 10, 2022.
On November 14, 2021, U.S. Border Patrol agents, near Naco, Arizona, observed a heavily weighted down Jeep Patriot driving suspiciously in and out of a national park area. During a subsequent stop, five undocumented noncitizens were removed from the backseat and cargo areas of the SUV. Nelson was the front seat passenger, and co-defendant, Michelle Wilson, was the driver. The five undocumented noncitizens each indicated they paid substantial sums of money to smugglers in Mexico in exchange for transportation to various cities within the United States.
Co-defendant Michelle Wilson pleaded guilty in December 2021. She is scheduled for sentencing on April 10, 2023, before Judge Rash.
United States Border Patrol agents from Bisbee, Arizona, conducted the investigation in this case. Assistant United States Attorneys Micah Schmit and Kevin Schiff, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-21-3127-TUC-SHR (BGM)
RELEASE NUMBER: 2023-003_Nelson et al.# # #
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.
Camden Man Sentenced to 140 Months in Prison for Role as Supervisor in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 140 months in prison for his role as a shift supervisor of a drug trafficking organization and conspiring to distribute heroin, cocaine, and crack in the city of Camden, U.S. Attorney Philip R. Sellinger announced.
Christopher Vasquez, 32, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an indictment charging him with conspiracy to distribute more than one kilogram of heroin, more than 280 grams of crack cocaine, and unspecified quantities of cocaine and fentanyl.
According to documents filed in this case and statements made in court
Vazquez admitted that he was a “shift manager” in a drug-trafficking organization operating in the 400-500 block of Pine Street in Camden, supervising and directing the street-level sellers who were involved in distributing controlled substances to customers. From January 2018 to Nov. 28, 2018, he met with conspirators who were involved in the scheme and discussed the operations and management of the drug trafficking organization. He also provided drugs to street-level sellers.
All 19 of the charged defendants have previously entered guilty pleas on drug conspiracy charges before Judge Bumb.
In addition to the prison term, Judge Bumb sentenced Vazquez to seven years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire; the Camden County Police Department, under the direction of Chief Gabe Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Grace C. MacAulay; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty pleas. He also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Forces (OCDETF), which identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Bristol Man Sentenced to 20 Years in Prison for Meth and Firearms ConvictionsRead the Press Release
ABINGDON, Va. – A Bristol, Virginia, man, was sentenced this week to 20 years in federal prison for possessing with the intent to distribute crystal ice methamphetamine and for illegal possession of a firearm.
William Everett Himes, 38, was convicted after pleading guilty in June 2021 to one count of possessing with the intent to distribute 50 grams or more of crystal ice methamphetamine as well as one count of being a felon in possession of a firearm.
According to court documents, the charges stem from a Washington County Virginia Sheriff’s Office traffic stop in January 2020, where Himes fled from police and was later found to be in possession of crystal ice methamphetamine. A loaded .45 caliber firearm and more crystal ice methamphetamine were recovered from the front passenger seat of Himes’ vehicle. At the time of Himes’ arrest, he was prohibited from possession of a firearm due to prior felony drug and violent crime convictions, including two 2012 felony convictions in Bristol, Virginia related to methamphetamine.
United States Attorney Christopher R. Kavanaugh, Virginia Attorney General Jason Miyares, and Jarod Forget, Special Agent in Charge of the DEA’s Washington Division, made the announcement.
The investigation of this case was conducted by the Drug Enforcement Administration, the Washington County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, and Firearms.
Special Assistant United States Attorney M. Suzanne Kerney-Quillen, a Virginia Senior Assistant Attorney General assigned to the Attorney General’s Major Crimes and Emerging Threats Section, prosecuted the case for the United States.
Bloomington Man Sentenced to Federal Prison for Possessing a Full-Auto Glock “Switch”Read the Press Release
PEORIA, Ill. – A Bloomington, Illinois, man, Javares Hudson, 22, of the 600 block of West Monroe Street, was sentenced today to 33 months in federal prison for possessing a Glock “Switch”, an aftermarket attachment designed to convert Glock handguns into fully automatic machine guns. U.S. District Judge James E. Shadid also sentenced Hudson to a three-year term of supervised release to be served after his release from prison. There is no parole in the federal system.
Evidence presented during a court hearing showed that on January 23, 2022, Hudson went to the hospital for treatment following a gunshot wound he sustained outside a nightclub. Police officers arrived at the hospital at the same time as Hudson, seeking information from him and to perform a gunshot residue test. Before a responding officer obtained all of the information he sought, hospital staff began treating Hudson and discovered that he had something plastic in his mouth. After much protest, Hudson eventually spit out a small baggie containing an item that qualifies as a “machine gun” under federal law, also known as a “Glock Conversion Device.”
Hudson was arrested in McLean County in January 2022 and remained in state custody until a criminal complaint was filed in federal court. A federal grand jury subsequently returned an indictment against him in February 2022. He entered a guilty plea in September 2022. Hudson has remained in the custody of the U.S. Marshals Service since his federal indictment.
The statutory penalties for possession of a machinegun are up to 10 years’ imprisonment, to be followed by up to three years of supervised release. A fine of up to $250,000 is also possible.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Bloomington Police Department; and the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
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.
Bessemer Man Indicted on Drug and Gun Charges Appears in Federal CourtRead the Press Release
BIRMINGHAM, Ala. -- A Bessemer man arrested by the U.S. Marshals Gulf Coast Regional Fugitive Task Force, on January 4, 2023, appeared in federal court today, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
Tahji Alonzo Orr, 24, was arraigned before U.S. Magistrate Judge Staci G. Cornelius on charges of possession with the intent to distribute marijuana, possession with the intent to distribute a controlled substance containing a detectable amount of heroin and fentanyl, possession of a machine gun during and in relation to a drug trafficking crime, and illegally possessing a machine gun, that is, a Glock 9mm pistol equipped with a “Glock switch” – an after-market device designed to illegally convert a semiautomatic Glock pistol into a fully automatic machine gun. The charges stem from events that occurred in March 2022 in Jefferson County. Orr was ordered detained pending trial.
The maximum penalty for possession with the intent to distribute marijuana is five years in prison. The maximum penalty for possession with the intent to distribute a controlled substance containing a detectable amount of heroin and fentanyl is 20 years in prison. The minimum penalty for carrying a machine gun during and in relation to a drug trafficking crime is life in prison. The maximum penalty for possession of a machine gun is 10 years in prison.
The ATF investigated the case along with U.S. Marshals Gulf Coast Regional Fugitive Task Force, the Hoover Police Department and the Bessemer Police Department. Assistant U.S. Attorney Michael Royster is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.