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Monday 21 November 2022
U.S. Attorney’s Office Resolves Kennewick Restaurant’s Violation of the Americans with Disabilities Act (ADA)Read the Press Release
Owners of restaurant agree to pay damages for denying service to a disabled customer and to take remedial measures at multiple restaurants state-wide
Kennewick, WA – Today, United States Attorney Vanessa R. Waldref announced that the owners of the Rock Wood Fired Pizza, located in Kennewick, (“The Rock Kennewick”) have agreed to take remedial measures over the next three years and pay thousands in compensatory damages to resolve violations of Title III of the Americans with Disability Act (ADA). In today’s settlement, the owners of The Rock Kennewick admitted that in November of 2021 they denied service to the disabled individual, because that individual required the use of a service animal, in direct violation of the ADA. The Rock Kennewick fully and promptly cooperated with the investigation and agreed to take concrete remedial measures to comply with the ADA.
According to the settlement, the owners of the Rock Kennewick admitted that at the time of the violation they did not have any written Title III ADA policy or formal ADA training for employees at any of their restaurants. Consequently, the settlement requires the owners of The Rock Kennewick to pay $11,000 in compensatory damages to the disabled individual. The settlement further requires The Rock Kennewick, and the three other “The Rock Wood Fired Pizza” restaurants under the same ownership, to undertake the following:
- implement and utilize a written Title III ADA and service animal policy;
- require annual employee training addressing the requirements of the ADA;
- institute a grievance procedure for customers, potential customers, or employees regarding any alleged ADA violations;
- conspicuously post notices to customers and employees, both online and at their restaurants, that service animals are welcome; and
- submit reports to the United States Attorney’s office every six months for the next three years certifying full compliance with all remedial terms of the agreement and self-reporting any allegations of violations of the ADA so they can be fully investigated.
If the owners fail to fully and promptly institute and comply with all of these measures, the United States Attorney’s Office can file an ADA complaint against the owners for their admitted ADA violation, and any additional ADA violations, seeking up to $75,000 in penalties per violation (in addition to the $11,000 in compensatory damages paid to the aggrieved disabled person). The United States Attorney Office also would be able to seek additional and court ordered remedial measures.
“Persons with disabilities have every right under the law to enjoy the same freedoms and accommodations as everyone,” stated U.S. Attorney Vanessa Waldref. “The ADA ensures those rights for persons with disabilities in our communities, and, as today’s settlement shows, my office is committed to vigorous enforcement of the ADA. Today’s settlement sends an important message that compliance with the ADA is essential to making Eastern Washington safe and strong for all.” U.S. Attorney Waldref continued, “we want to thank the owners of the Rock Wood Fired Pizza for their cooperation with our investigation, for fully admitting to their conduct, compensating the disabled person they wronged, and for their genuine commitment to ensuring that going forward discrimination against disabled individuals, including those with service animals, will not occur at any of their restaurants state-wide.”
The family of the aggrieved disabled customer filed an ADA complaint online at ADA.gov. The complaint was forwarded to the United States Attorney’s Office for the Eastern District of Washington, which investigated and, upon confirming the allegations, reached today’s settlement with the owners of The Rock Kennewick, requiring the owners to take remedial action not only in their Kennewick store but in their three other stores located throughout Washington.
“We are so thankful that this individual and their family had the courage and tenacity to come forward, report this discrimination, and assist in our investigation – we could not investigate and address these sorts of ADA violations without people coming forward when they see or experience discrimination,” stated U.S. Attorney Waldref. “We encourage people to report suspected ADA violations at ADA.gov, just as this individual did. For all suspected civil rights violations – including unlawful discrimination of any kind as well as ADA violations in Eastern Washington – we further encourage people to email my office at [email protected] or call our Civil Rights Complaint Line at (509) 835-6306,” said U.S. Attorney Waldref.
The settlement was the result of a complaint filed on ADA.gov and the resulting investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington. The full settlement agreement, including the required Service Animal Policy, is available at the bottom of this page. Assistant United States Attorney Tyler H.L. Tornabene of the Eastern District of Washington handled this matter on behalf of the United States.
U.S. Attorney's Office and Federal Partners Receive National Investigation of the Year Award from the National Health Care Anti-Fraud AssociationRead the Press Release
KNOXVILLE, Tenn.– The United States Attorney’s Office for the Eastern District of Tennessee announces that members of its staff and participating federal partners received a national commendation for their work in Operation HealthWrong, a long-term, multi-defendant health care fraud prosecution. At its annual conference, the National Health Care Anti-Fraud Association (“NHCAA”) selected Operation HealthWrong as its nationwide Investigation of the Year.
NHCAA’s mission is to protect and serve the public interest by increasing awareness and improving the detection, investigation, civil and criminal prosecution, and prevention of health care fraud and abuse. Each year, the organization issues a national award for the Investigation of the Year and recognizes award recipients at its annual training conference. This year, the successful investigation and prosecutions of multiple defendants arising from Operation HealthWrong received the award.
Operation HealthWrong, a long-term investigation of a telemarketing and pharmacy scheme, resulted in the indictment of seven individuals (including a medical doctor and two pharmacists) and related organizations they controlled. All but one of the individuals entered guilty pleas to offenses related to the investigation, and a jury found the remaining defendant, Peter Bolos, guilty of conspiracy to commit health care fraud, mail fraud, and criminal misbranding following a month-long trial last year in the United States District Court in Greeneville, Tennessee.
In May 2022, the Honorable J. Ronnie Greer imposed sentences in the case that ranged from 14 years in federal prison to probation. The Court also ordered over $100 million in restitution and forfeiture, and the United States recovered over $26 million at or prior to the completion of sentencings. Additional details about individuals prosecuted, and the sentences imposed, can be found in the following press releases: Bolos sentencing and Bolos defendants sentencing.
NHCAA recognized the following members of the United States Attorney’s Office for the Eastern District of Tennessee for their work on the case: former Assistant United States Attorney T.J. Harker, Assistant United States Attorney Mac D. Heavener, Legal Assistants Barbra Pemberton and April Denard, and IT Specialist Bryan Brandenburg.
Federal partners receiving recognition included the Department of Justice Consumer Protection Branch (former Assistant Director John Claud and Trial Attorney David Gunn), the United States Department of Health and Hunan Services, Office of Inspector General (Supervisory Special Agent Robert Turner), the United States Department of Homeland Security, Homeland Security Investigations (Special Agent John Lyons), the Federal Bureau of Investigation (Special Agent Reanna O’Hare and Financial Analyst LeAnn Lanz), the United States Food and Drug Administration, Office of Criminal Investigations (Special Agent Brian Kriplean), the United States Office of Personnel Management, Office of Inspector General (Supervisory Special Agent Wayne VanVarick), and the United States Postal Service, Office of Inspector General (Special Agent Timothy Jones).
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Tổng Chưởng Lý Merrick Garland đưa ra bản ghi nhớ nhằm cải thiện việc tiếp cận các dịch vụ cho những người có trình độ Anh ngữ hạn chếRead the Press Release
Ghi Chú: Thông cáo báo chí này đã được dịch sang nhiều ngôn ngữ khác nhau. Xem những bản đính kèm dưới đây.
Bộ Tư pháp hôm nay đã đưa ra một bản ghi nhớ yêu cầu các cơ quan liên bang xem lại việc thực hành và các chính sách tiếp cận ngôn ngữ của họ để tăng cường sự tương tác của chính phủ liên bang với những người có trình độ Anh ngữ hạn chế (LEP).
"Tất cả mọi người trên đất nước này, dù nói bất kỳ ngôn ngữ nào, đều được hưởng sự tiếp cận có ý nghĩa đối với các chương trình và hoạt động được thực hiện hoặc hỗ trợ bởi các cơ quan liên bang," Tổng chưởng lý Merrick B. Garland cho biết. “Bộ Tư pháp cam kết sẽ cùng làm việc với các đối tác liên bang để giải quyết những rào cản ngôn ngữ trong các dịch vụ của chính phủ đã không cho mọi người đủ cơ hội để tham gia vào đời sống kinh tế, xã hội và dân sự.”
Bản ghi nhớ này phác thảo một phương hướng hành động để các cơ quan liên bang cải tiến, hiện đại hóa và thực hiện trách nhiệm của mình trong vấn đề tiếp cận ngôn ngữ theo Sắc Lệnh Hành Pháp 13166, "Cải Thiện Khả Năng Tiếp Cận Các Dịch Vụ dành cho Những Người Có Trình Độ Anh Ngữ Hạn Chế." Như đã nêu trong bản ghi nhớ, Ban Dân quyền, với sự hỗ trợ của Văn Phòng Tiếp Cận Công Lý, sẽ đi đầu trong nỗ lực hợp tác để xác định: (1) liệu các cơ quan có thể cập nhật thêm các chính sách và kế hoạch về tiếp cận ngôn ngữ hay không; (2) liệu các cơ quan có đang tiếp cận các cá nhân LEP một cách hữu hiệu khi phổ biến thông tin về tài nguyên, chương trình và các dịch vụ của liên bang hay không; (3) về mặt nghĩa vụ cung cấp sự tiếp cận ngôn ngữ có ý nghĩa, theo những yêu cầu trong Tiêu đề VI của Đạo Luật Dân Quyền năm 1964 và các quy định thực hiện, liệu các cơ quan đã suy xét đến việc cập nhật hoặc sửa đổi hướng dẫn dành cho những người nhận hỗ trợ tài chính của liên bang hay không; và (4) liệu các cơ quan có thể thay đổi truyền thông kỹ thuật số của họ cho phù hợp với việc chào đón các cá nhân LEP hay không.
Bản ghi nhớ này được soạn thảo dựa trên những nỗ lực hiện tại của Bộ Tư Pháp để tương tác với các cá nhân LEP, bao gồm mục tiêu mới là tăng cường hỗ trợ cho việc tiếp cận ngôn ngữ trong Kế Hoạch Chiến Lược 2022-2026 của Bộ. Vào tháng Năm năm 2022, Tổng Chưởng Lý Garland đã bổ nhiệm Ana Paula Noguez Mercado làm Điều Phối Viên Tiếp Cận Ngôn Ngữ của Bộ tại Văn Phòng Tiếp Cận Công Lý, để đảm bảo rằng Bộ đang nêu gương dẫn đầu. Văn phòng Tiếp Cận Công Lý từ đó đã mở rộng thêm nhóm tiếp cận ngôn ngữ và đang hướng dẫn Nhóm Công Tác về Tiếp Cận Ngôn Ngữ của Bộ để cung cấp hỗ trợ kỹ thuật và huấn luyện cho các thành phần trong khi họ vẫn tiếp tục cải thiện khả năng tiếp cận ngôn ngữ cho tất cả mọi người. Ban Dân Quyền vẫn tiếp tục duy trì trang www.LEP.gov, là trang mạng cung cấp các tài nguyên và thông tin để giúp mở rộng và cải thiện những dịch vụ hỗ trợ ngôn ngữ cho các cá nhân LEP, theo đúng luật liên bang.
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Memorandum
Two Maryland Men Convicted After a Two-Week Trial for Federal Charges Related to an Armed Heroin and Fentanyl Distribution Conspiracy Operating in Washington CountyRead the Press Release
Baltimore – A federal jury convicted Jarvis Antonio Coleman-Fuller, age 35, of Hagerstown, Maryland and Eric Tyrell Johnson, a/k/a E, age 38, of Owings Mills, Maryland, late on November 17, 2022, on federal charges related to a conspiracy to distribute controlled substances, specifically fentanyl and heroin in Washington County, Maryland.
The guilty verdict was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Washington County Sheriff Douglas Mullendore; Chief Paul “Joey” Kifer of the Hagerstown Police Department; and Washington County States’ Attorney Charles P. Strong.
According to the evidence presented at their two-week trial, beginning in about April 2019 and continuing to about November 2019, the defendants and their co-conspirators conspired to distribute heroin and fentanyl in the Washington County area. During the investigation, law enforcement seized narcotics, including at least 1.3 kilograms of fentanyl, five firearms, hundreds of rounds of ammunition, and more than $12,534 in cash. Witnesses testified that Johnson and Coleman-Fuller distributed fentanyl and illegally possessed firearms. Johnson and Coleman-Fuller both had previous felony convictions and were prohibited from possessing firearms and ammunition. The trial evidence also proved that Coleman-Fuller possessed a firearm in furtherance of his drug trafficking crimes.
Eight co-defendants have previously pleaded guilty to their roles in the conspiracy and are awaiting sentencing.
Coleman-Fuller and Johnson each face a mandatory minimum sentence of at least five years in federal prison and up to 40 years in prison for the drug charges and up to 10 years in federal prison and up to life in prison for being a felon in possession of a firearm. Coleman-Fuller also faces a mandatory minimum of five years in federal prison, consecutive to any other sentence, and up to life in federal prison for possession of a firearm in furtherance of a drug trafficking crime. Actual sentences for federal crimes are typically less than the maximum penalties, after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for Coleman-Fuller and Johnson for March 10, 2023 at 9:30 a.m.
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.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the DEA, HSI, the Washington County Sheriff’s Office, the Washington County Narcotics Task Force, and the Washington County State’s Attorney’s Office for their work in the investigation and prosecution Mr. Barron also thanked the Baltimore County Police Department and the Baltimore County State’s Attorney’s Office for their assistance in the case. Mr. Barron commended Assistant U.S. Attorneys Christina A. Hoffman, Joan C. Mathias, and Adeyemi Adenrele, who are prosecuting this 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 and https://www.justice.gov/usao-md/project-safe-neighborhoods-psn.
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Two Kankakee County Men Convicted of Carjacking and Firearms OffensesRead the Press Release
URBANA, Ill. – A federal jury returned guilty verdicts on November 18, 2022, against Anycco M. Rivers, 24, of the 1100th block of E. Merchant Street in Kankakee, and Ladonta A. Tucker, 30, of the 7400th block of E. Second Street in Sun River Terrace, for carjacking and carrying a firearm during and in relation to a crime of violence. Rivers was further convicted of discharging a firearm during and in relation to a crime of violence. Sentencing for Rivers and Tucker has been scheduled for April 17, 2023, at the U.S. Courthouse in Urbana, Illinois.
Over four days of testimony, the government presented evidence to establish that, on March 17, 2022, in Kankakee County, Illinois, Rivers and Tucker stole a vehicle at gunpoint, with Rivers discharging the firearm at nearby bystanders as the men fled the scene. Following a car and foot pursuit through Bourbonnais, Bradley, and Kankakee, Illinois, police apprehended Rivers and Tucker.
Rivers and Tucker remain in the custody of Jerome Combs Detention Center in Kankakee. At sentencing, Rivers and Tucker both face statutory penalties of up to 15 years in prison for carjacking. Tucker faces an additional five years in prison for carrying a firearm during a crime of violence, and Rivers faces an additional ten years in prison for discharging a firearm during a crime of violence. The firearm penalties run consecutive to the carjacking penalties.
The case investigation was conducted by Bourbonnais Police Department, Bradley Police Department, Kankakee Police Department, Kankakee County Sheriff’s Office, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Rachel Ritzer and William Lynch represented the government at trial.
The 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.
Two Estonian citizens arrested in $575 million cryptocurrency fraud and money laundering schemeRead the Press Release
Seattle – Two Estonian citizens were arrested in Tallinn, Estonia November 20, 2022, on an 18-count indictment charging conspiracy, wire fraud, and conspiracy to commit money laundering. The indictment was returned by a grand jury sitting in the Western District of Washington on October 27 and unsealed today following the arrests.
According to the indictment, Sergei Potapenko and Ivan Turõgin, both 37, are alleged to have induced hundreds of thousands of victims to purchase contracts in a cryptocurrency mining service called HashFlare and to invest in a virtual currency bank called Polybius Bank. Victims paid more than $575 million to the defendants’ companies. The defendants then used shell companies to launder the fraud proceeds and to purchase real estate and luxury cars.
“New technology has made it easier for bad actors to take advantage of innocent victims—both in the U.S. and abroad—in increasingly complex scams,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department is committed to preventing the public from losing more of their hard-earned money to these scams and will not allow these defendants, or others like them, to keep the fruits of their crimes.”
“The size and scope of the alleged scheme is truly astounding. These defendants capitalized on both the allure of cryptocurrency, and the mystery surrounding cryptocurrency mining, to commit an enormous Ponzi scheme,” said U.S. Attorney Nick Brown of the Western District of Washington. “They lured investors with false representations and then paid early investors off with money from those who invested later. They tried to hide their ill-gotten gain in Estonian properties, luxury cars, and bank accounts and virtual currency wallets around the world. U.S. and Estonian authorities are working to seize and restrain these assets and take the profit out of these crimes.”
“Mr. Potapenko and Mr. Turõgin are charged with defrauding investors out of more than half a billion dollars” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle field office. “Ultimately, their elaborate Ponzi scheme fell apart and they conspired to conceal and launder the money which they took from the victims of their scheme. Thanks to our partnership with the Estonian authorities, the two defendants will answer for the massive fraud they are accused of perpetrating.”
According to the indictment, Potapenko and Turõgin claimed that their business, HashFlare, operated a massive cryptocurrency mining operation. Cryptocurrency mining is the process of using computers to generate cryptocurrency, such as Bitcoin, for profit. The defendants offered contracts under which customers could pay a fee to rent a percentage of HashFlare’s mining operations in exchange for the virtual currency produced by their portion of the operation. HashFlare’s website enabled customers to see the amount of virtual currency their mining activity had supposedly generated. Customers from around the world, including from western Washington, bought more than $550 million worth of HashFlare contracts between 2015 and 2019.
HashFlare allegedly did not have the virtual currency mining equipment it claimed to have. In fact, according to the indictment, HashFlare’s equipment performed Bitcoin mining at a rate of less than one percent of the computing power it purported to have. When investors asked to withdraw their mining proceeds, the defendants were not able to pay with the mined currency as promised. Instead, the defendants either resisted making the payments, or paid off the investors using virtual currency the defendants had purchased on the open market—not currency they had mined. HashFlare closed its operations in 2019.
In May 2017, Potapenko and Turõgin offered investments in a company called Polybius, which they said would form a bank specializing in virtual currency. The defendants promised to pay investors dividends from Polybius’ profits. The men raised at least $25 million in this scheme and transferred most of the money to other bank accounts and virtual currency wallets they controlled. Polybius never formed a bank or paid any dividends.
The indictment also charges the defendants with conspiring to launder their criminal proceeds by using shell companies and phony contracts and invoices. The indictment alleges that the money laundering conspiracy involved at least 75 real properties, six luxury vehicles, cryptocurrency wallets, and thousands of cryptocurrency mining machines.
Both defendants appeared in court in Tallin, and are being held pending extradition to the U.S.
The men are charged with conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiracy to commit money laundering. Each of these crimes is punishable by up to 20 years in prison.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating the case.
The United States thanks the Cybercrime Bureau of the National Criminal Police of the Estonian Police and Border Guard for its support with this investigation. The U.S. Department of Justice’s Office of International Affairs (OIA) provided extensive assistance to the investigation.
This investigation and arrests demonstrate the great coordination and cooperation between U.S. and Estonian law enforcement. Estonia has been a crucial ally to disrupt this cyber-enabled crime, and the United States thanks the Estonians for their continued assistance and coordination.
Assistant United States Attorneys Seth Wilkinson and Jehiel I. Baer of the Western District of Washington, and Trial Attorneys Adrienne E. Rosen and Olivia Zhu of DOJ’s Money Laundering and Asset Recovery Section are prosecuting the case.
Individuals who believe they may have been a victim in this case should visit www.fbi.gov/hashflare for more information.
1hashflare_indictment.pdfTwo Estonian Citizens Arrested in $575 Million Cryptocurrency Fraud and Money Laundering SchemeRead the Press Release
Two Estonian citizens were arrested in Tallinn, Estonia, yesterday on an 18-count indictment for their alleged involvement in a $575 million cryptocurrency fraud and money laundering conspiracy.
The indictment was returned by a grand jury in the Western District of Washington on Oct. 27 and unsealed today.
According to court documents, Sergei Potapenko and Ivan Turõgin, both 37, allegedly defrauded hundreds of thousands of victims through a multi-faceted scheme. They induced victims to enter into fraudulent equipment rental contracts with the defendants’ cryptocurrency mining service called HashFlare. They also caused victims to invest in a virtual currency bank called Polybius Bank. In reality, Polybius was never actually a bank, and never paid out the promised dividends. Victims paid more than $575 million to Potapenko and Turõgin’s companies. Potapenko and Turõgin then used shell companies to launder the fraud proceeds and to purchase real estate and luxury cars.
“New technology has made it easier for bad actors to take advantage of innocent victims – both in the U.S. and abroad – in increasingly complex scams,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The department is committed to preventing the public from losing more of their hard-earned money to these scams and will not allow these defendants, or others like them, to keep the fruits of their crimes.”
“The size and scope of the alleged scheme is truly astounding. These defendants capitalized on both the allure of cryptocurrency, and the mystery surrounding cryptocurrency mining, to commit an enormous Ponzi scheme,” said U.S. Attorney Nick Brown for the Western District of Washington. “They lured investors with false representations and then paid early investors off with money from those who invested later. They tried to hide their ill-gotten gain in Estonian properties, luxury cars, and bank accounts and virtual currency wallets around the world. U.S. and Estonian authorities are working to seize and restrain these assets and take the profit out of these crimes.”
"The FBI is committed to pursuing subjects across international boundaries who are utilizing increasingly complex schemes to defraud investors,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Victims in the U.S. and abroad invested into what they believed were sophisticated virtual asset ventures, but it was all part of a fraudulent scheme and thousands of victims were harmed as a result. The FBI thanks our national and international partners for their efforts throughout the investigation to help bring justice for the victims.”
According to the indictment, Potapenko and Turõgin claimed that HashFlare was a massive cryptocurrency mining operation. Cryptocurrency mining is the process of using computers to generate cryptocurrency, such as Bitcoin, for profit. Potapenk and Turõgin offered contracts which, for a fee, purported to allow customers to rent a percentage of HashFlare’s mining operations in exchange for the virtual currency produced by their portion of the operation. HashFlare’s website enabled customers to see the amount of virtual currency their mining activity had supposedly generated. Customers from around the world, including western Washington, entered into more than $550 million worth of HashFlare contracts between 2015 and 2019.
According to the indictment, these contracts were fraudulent. HashFlare allegedly did not have the virtual currency mining equipment it claimed to have. HashFlare’s equipment allegedly performed Bitcoin mining at a rate of less than one percent of the computing power it purported to have. When investors asked to withdraw their mining proceeds, Potapenko and Turõgin were not able to pay the mined currency as promised. Instead, they either resisted making the payments, or paid off the investors using virtual currency the defendants had purchased on the open market—not currency they had mined. HashFlare closed its operations in 2019.
In May 2017, Potapenko and Turõgin offered investments in a company called Polybius, which they promised would form a bank specializing in virtual currency. They promised to pay investors dividends from Polybius’s profits. The men raised at least $25 million in this scheme and transferred most of the money to other bank accounts and virtual currency wallets they controlled. Polybius never formed a bank or paid any dividends.
The indictment also charges Potapenko and Turõgin with conspiring to launder their criminal proceeds by using shell companies and phony contracts and invoices. The money laundering conspiracy allegedly involved at least 75 real properties, six luxury vehicles, cryptocurrency wallets, and thousands of cryptocurrency mining machines.
Potapenko and Turõgin are both charged with conspiracy to commit wire fraud, 16 counts of wire fraud, and one count of conspiracy to commit money laundering. If convicted, Potapenko and Turõgin each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case.
The United States thanks the Cybercrime Bureau of the National Criminal Police of the Estonian Police and Border Guard for its support with this investigation. The U.S. Department of Justice’s Office of International Affairs provided extensive assistance to the investigation.
This investigation and today’s arrest demonstrate the great coordination and cooperation between U.S. and Estonian law enforcement. Estonia has been a crucial ally to disrupt this cyber-enabled crime, and the United States thanks the Estonians for their continued assistance and coordination.
Trial Attorneys Adrienne E. Rosen and Olivia Zhu of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Seth Wilkinson and Jehiel I. Baer for the Western District of Washington are prosecuting the case.
Individuals who believe they may have been a victim in this case should visit www.fbi.gov/hashflare for more information.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Des Moines Men Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DES MOINES, IOWA – Michael Allen James, age 39, of Des Moines, was sentenced to 240 months in prison for distributing a controlled substance which resulted in death on Friday, November 18, 2022. On August 5, 2022, Gregory Michael Williams, age 38, was sentenced to 168 months in prison for distributing a controlled substance which resulted in death. Both men were sentenced by Chief United States District Court Judge Stephanie Rose after pleading guilty.
On November 8, 2020, Williams purchased two Oxycodone pills from James. Williams then distributed the pills to C.C.. Later, C.C. and his fiancée, K.F., ingested the pills, and both overdosed. C.C. was revived on scene and survived. K.F. was brought to the hospital and later pronounced dead. The Oxycodone pills were counterfeit and contained fentanyl.
Investigators with the Des Moines Police Department Vice-Narcotics Unit reviewed phone records and conducted interviews, including of the victims’ friends and family, which led officers to identify Williams and James. In November 2020, Williams was arrested in possession of a firearm after he held his children at gunpoint. In December 2020, officers executed a search warrant at James’ house and located marijuana, cash, and 100 rounds of ammunition. James was prohibited for possessing ammunition because he is a felon.
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The investigation was conducted by the Des Moines Police Department. The case was prosecuted by Assistant U.S. Attorney Mallory E. Weiser, with assistance from Victim Witness Specialist Charlotte Kovacs.
Twelve Defendants Charged in 5 Indictments with Trafficking Fentanyl and Methamphetamine in the Central ValleyRead the Press Release
FRESNO, Calif. — Due to the efforts of federal and local law enforcement agencies working together over the course of the past 18 months on an investigation targeting local criminal street gangs in Bakersfield, 12 defendants were indicted for drug trafficking and firearms offenses, U.S. Attorney Phillip A. Talbert announced.
On Nov. 17, 2022, a federal grand jury returned an 11-count indictment against William Arthur Poush, 43, of Bakersfield; Rosa Fernandez, 43, of Bakersfield; Timothy Robert Hingston, 39, of North Hollywood; Spencer Matthew Hopper, 35, of Montrose; and Dale Vincent Perez, 39, of Bakersfield. According to court documents, on Jan. 20, 2022, and Feb. 24, 2022, Poush and Fernandez sold over 50 grams of methamphetamine to a confidential informant. On May 11, 2022, Poush sold over 50 grams of methamphetamine and a quantity of fentanyl pills to a confidential informant. On Aug. 13, 2022, Hingston and Hopper distributed over 500 grams of methamphetamine and over 400 grams of fentanyl to Poush, and Poush possessed that same quantity with intent to distribute. On Aug. 19, 2022, Poush and Perez conspired to possess with intent to distribute over 50 grams of methamphetamine, and Perez possessed that same quantity with intent to distribute. And on Sept. 1, 2022, Poush possessed over 50 grams of methamphetamine with intent to distribute.
A federal grand jury returned a three-count indictment against Bakersfield residents Dale Wesley Hubbard, 49, and Darlene Crystal Viera, 40, charging them with conspiring and distributing methamphetamine and fentanyl. According to court documents, Hubbard and Viera sold over 50 grams of methamphetamine and over 40 grams of fentanyl to a confidential informant on May 3, 2022; and sold over 50 grams of methamphetamine to a confidential informant on May 25, 2022.
A federal grand jury returned a three-count indictment against Bakersfield residents Manuel Yanes, 25, and Jorge Luis Yanes, 28, charging them with conspiracy to distribute methamphetamine and distribution of methamphetamine. According to court documents, on June 29, 2022, and on July 22, 2022, Manuel Yanes agreed to sell over 50 grams of methamphetamine to a confidential informant and Jorge Yanes delivered that same amount of methamphetamine to a confidential informant.
A federal grand jury returned a four-count indictment against Bakersfield residents Luis Mauricio Castenon, 33, and Bryan Steven Reyes, 28, charging them with conspiracy to distribute and distribution of methamphetamine. According to court documents, on July 16, 2020, Castenon sold over 50 grams of methamphetamine to a confidential informant. On Dec. 10, 2021, Castenon and Reyes conspired to distribute and did distribute over 50 grams of methamphetamine to a confidential informant, and on April 15, 2022, Reyes sold over 50 grams of methamphetamine to a confidential informant.
A federal grand jury returned a two-count indictment against David Garcia, 35, of Bakersfield, charging him with being a felon in possession of a firearm and possession with intent to distribute methamphetamine. According to court documents, during a traffic stop, officers learned that Garcia was on parole and subject to search terms. A search of his vehicle yielded a stolen, loaded firearm and over 50 grams of methamphetamine.
These cases are the product of an investigation conducted by Homeland Security Investigations, the Bakersfield Police Department, the Kern County Probation Department, the Kern County District Attorney’s Office, and the Kern County Sheriff’s Office, with assistance from the Drug Enforcement Administration, the Federal Bureau of Investigation, the California Department of Corrections and Rehabilitation (CDCR), and the California Highway Patrol. Assistant U.S. Attorney Jessica A. Massey is prosecuting the cases.
If convicted, the defendants face various maximum sentences between 10 years and life in prison and $250,000 to $10 million in fines. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This effort is part of an Organized Crime Drug Enforcement Task Forces (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.
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.
Tucson Couple Sentenced to 5 Years for Stealing $5 Million from InvestorsRead the Press Release
TUCSON, Ariz. – On November 15, 2022, Michael Feinberg, 73, and Betsy Feinberg, 80, both of Tucson, Arizona, were sentenced by United States District Judge James A. Soto to 60 months in prison, followed by three years of supervised release. In April 2022, a jury found the Feinbergs guilty of multiple counts of securities and wire fraud.
Michael and Betsy Feinberg operated Catharon Software Corporation as husband and wife. The Feinbergs claimed they had produced revolutionary software called VDelta that would generate enormous returns for investors and philanthropists. For almost 15 years, the Feinbergs lured investors with false promises about the software’s completion, release date, and capabilities. Their victims included friends and associates recruited through various community organizations in Sedona, Arizona, where the Feinbergs resided at the time. In addition to paying themselves salaries, the Feinbergs used investor money for a wide variety of personal expenses, including their home mortgage.
A restitution hearing to address the approximately $5 million in victim losses is scheduled for December 13, 2022.
The Federal Bureau of Investigation conducted the investigation in this case with assistance from the Arizona Corporation Commission. The Financial Crimes and Public Corruption Section of the U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-18-01786-JAS-DTF
RELEASE NUMBER: 2022-216_Feinbergs# # #
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.
Television personalities sentenced to years in federal prison for fraud and tax evasionRead the Press Release
ATLANTA – Todd and Julie Chrisley have been sentenced to 12 and seven years, respectively, in federal prison after a jury convicted them of bank and tax fraud offenses following a nearly three-week jury trial.
“Over the course of a decade, the defendants defrauded banks out of tens of millions of dollars while evading payment of their federal income taxes” said U.S. Attorney Ryan K. Buchanan. “Their lengthy sentences reflect the magnitude of their criminal scheme and should serve as a warning to others tempted to exploit our nation’s community banking system for unlawful personal gain.”
“As this sentencing proves, when you lie, cheat, and steal, justice is blind to your fame, fortune, and position,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The FBI is proud to work with our law enforcement partners at the IRS and the U.S. Attorney's office to pursue and prosecute individuals that are driven by greed to evade the law.”
“The Chrisleys defrauded financial institutions and the Federal Government through tax evasion and other fraudulent means in an effort to minimize their tax liability, but project an image of wealth,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “This sentencing serves notice that no matter a person’s celebrity status, there are severe consequences for defrauding the American tax system.”
According to U.S. Attorney Buchanan, the charges and other information presented in court: Todd and Julie Chrisley conspired to defraud community banks in the Atlanta area to obtain more than $36 million in personal loans. The Chrisleys, with the help of their former business partner, submitted false bank statements, audit reports, and personal financial statements to Georgia community banks to obtain the loans. The Chrisleys spent the money on luxury cars, designer clothes, real estate, and travel – and used new fraudulent loans to pay back old ones. After spending all the money, Todd Chrisley filed for bankruptcy and walked away from more than $20 million of these fraudulently obtained loans.
Later, while earning millions from their TV show, Todd and Julie Chrisley, along with their accountant, Peter Tarantino, conspired to defraud the Internal Revenue Service. Throughout the conspiracy, the Chrisleys operated a loan-out company. To evade collection of half a million dollars in delinquent taxes owed by Todd Chrisley, the Chrisleys opened and kept the corporate bank accounts only in Julie Chrisley’s name. But after the IRS requested information about bank accounts in Julie Chrisley’s name, the Chrisleys transferred ownership of the corporate bank account to a relative to further conceal their income from the IRS.
In addition, the Chrisleys failed to file tax returns or pay any taxes for the 2013, 2014, 2015, or 2016 tax years. As a part of the tax evasion scheme, Tarantino was convicted of filing two false corporate tax returns for the loan-out company, which falsely claimed that the company earned no money and made no distributions in 2015 and 2016.
The Chrisleys also attempted to obstruct justice before being charged as well as during the trial. After learning of the grand jury investigation, Julie Chrisley submitted a fraudulent document in response to a grand jury subpoena to make it appear that the Chrisleys had not lied to the bank when they transferred ownership of the loan-out company’s bank account to their relative.
On June 7, 2022, a jury convicted the Chrisleys on all counts of a superseding indictment, including conspiracy to commit bank fraud, bank fraud, wire fraud, and conspiracy to commit tax evasion. The jury convicted Julie Chrisley of an additional charge of obstruction of justice. Tarantino was also convicted of multiple tax-related violations.
U.S. District Judge Eleanor L. Ross sentenced the defendants as follows:
- Todd Chrisley, 54, of Brentwood, Tennessee, has been sentenced to 12 years in prison to be followed by three years of supervised release.
- Julie Chrisley, 49, of Brentwood, Tennessee, has been sentenced to seven years in prison to be followed by three years of supervised release.
- Peter Tarantino, 60, of Alpharetta, Georgia, has been sentenced to three years in prison to be followed by three years of supervised release.
As part of sentencing, the Court ordered both Todd and Julie Chrisley to pay restitution and will determine the exact amount at a later date.
This case was investigated by the FBI and IRS Criminal Investigations.
Assistant U.S. Attorneys Thomas J. Krepp, Annalise K. Peters, Alex R. Sistla, Sekret T. Sneed, Vivieon K. Jones, and Amy Palumbo prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Statement on Shooting at Club Q in Colorado SpringsRead the Press Release
Colorado Springs - The Denver FBI Field Office, the ATF Denver Field Division, the Justice Department’s Civil Rights Division, National Security Division, and the U.S. Attorney’s Office for the District of Colorado are aware of the situation regarding the shooting in Colorado Springs at Club Q, and we will review all available facts of the incident to determine what federal response is warranted. The FBI is providing assistance to the Colorado Springs Police Department.
“On behalf of the U.S. Attorney’s Office and the Department of Justice, we offer our deepest condolences to the victims and their families, and our sorrow for the tragedy that has unfolded here. We will work closely with District Attorney Michael Allen, with local law enforcement, Mayor Suthers, and the Colorado Springs community to ensure the person who did this is brought to justice,” said U.S. Attorney Cole Finegan.
St. Louis County Man Admits $740,000 Pandemic FraudRead the Press Release
ST. LOUIS – A man from Blackjack, in St. Louis County, Missouri on Monday admitted submitting a series of fraudulent applications totaling nearly $980,000 to a pandemic relief loan program.
Terrell Alexander, 46, admitted submitting 10 fraudulent applications to obtain Economic Injury Disaster Loans and advances from the Small Business Administration seeking nearly $980,000. The loans were designed to help the owners of businesses that had been negatively affected by the pandemic. Alexander was able to collect over $740,000 in EIDL funding.
Alexander submitted applications with fraudulent information about the size and ownership of the businesses, the number of employees and revenue. Some of the businesses existed but others were fictional or inactive. He used Social Security numbers belonging to others on applications, including one belonging to a child. He also used a fake name and fraudulent driver’s license on other applications and real people’s names and information, sometimes with their knowledge.
Alexander pleaded guilty in front of U.S. District Judge John A. Ross to ten counts of wire fraud, five counts of aggravated identity theft, two counts of unlawful transfer of an identification document and one count of theft of government property.
At his sentencing, set for March 3, Alexander could face up to 30 years in prison. He will also be ordered to repay the money.
The case was investigated by the Social Security Administration Office of Inspector General and the FBI. Assistant U.S. Attorney Diane Klocke is prosecuting the case.
Sexual Predator Sentenced to 151 Months in Federal Prison for Sending Child Sexual Abuse Material to Undercover Agent Acting as a 13-Year-Old GirlRead the Press Release
INDIANAPOLIS – Coenraad Cromhoudt, 48, of Cayuga, Indiana, was sentenced to 151 months in federal prison after pleading guilty to distribution and receipt of child sexual abuse material.
According to court documents, on July 24, 2021, Homeland Security Investigations (HSI) special agents were conducting undercover chat operations on the social media application Kik, in a chatroom known to be used by adult men looking for underage girls to exchange child sexual abuse material. An adult male later identified as Cromhoudt initiated a short conversation with a special agent posing as a 13-year-old girl living in Arizona.
On August 1, 2021, Cromhoudt sent another message inquiring about age and other information. Knowing that the “girl” was thirteen, the chat quickly turned sexual in nature. During this chat, Cromhoudt sent the “girl” naked pictures of himself, videos of pre-pubescent girls being sexually abused by adult men, and adult pornography. Cromhoudt said some of the videos depicted him abusing the children. In court, Cromhoudt admitted he sent the sexually explicit videos to the “girl,” in part, to convince “her” that he had had previously had sex with children and they enjoyed it.
Over the next two months, Cromhoudt routinely sent sexually explicit messages, videos, and photos during chats with the “girl.” Cromhoudt even tried planning to meet in Arizona to have sex with the “13-year-old girl.”
On October 28, 2021, agents executed a search warrant at Cromhoudt’s residence in Cayuga, Indiana. Cromhoudt was interviewed by investigators and admitted to receiving sexually explicit files using Kik and said he shared the files with others. He also acknowledged that he was the person chatting with the undercover special agent. In addition to the numerous videos Cromhoudt sent to the undercover agent in the Kik chat, Cromhoudt also possessed child sexual abuse material in a Google account, including a video of an adult male raping an infant girl.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, R. Sean Fitzgerald, Special Agent in Charge of the HSI Chicago Field Office, and Superintendent Douglas G. Carter, Indiana State Police made the announcement.
HSI and the Indiana State Police investigated the case. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Cromhoudt be supervised by the U.S. Probation Office for 15 years following his release from federal prison and must also register as a sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristina M. Korobov who prosecuted this case.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
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
Seffner Man Pleads Guilty to Aggravated Identity TheftRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Raul Gonzalez (63, Seffner) has pleaded guilty to one count of aggravated identity theft. Gonzalez faces a mandatory sentence of two years in federal prison.
According to the plea agreement, Gonzalez applied for a United States passport on January 31, 2019. He used the identity of his deceased twin brother, Miguel Angel Gonzalez Rodriguez, in his passport application. Gonzalez also presented a driver license in his brother’s name and a baptism certificate bearing his deceased brother’s name and identity. United States Department of State investigators became aware of the possibility of fraud in this application and began an investigation. Their investigation revealed that Miguel Gonzalez was born on the same date as Raul Gonzalez but that Miguel had died a few days later due to dehydration and gastroenteritis. Further investigation revealed that this same “Miguel Gonzalez,” with the same date of birth and other similar identifiers, had applied over different points in time for Social Security, SNAP, and Medicaid/Medicare benefits. This purported “Miguel Gonzalez” then obtained over $145,000 from those various federal benefits programs using that false identity. As part of his plea agreement with the United States, the defendant has agreed to pay restitution to those agencies for those losses.
This case was investigated by the U.S. Department of State Diplomatic Security Service, with assistance from the U.S. Department of Agriculture – Office of Inspector General, the U.S. Health and Human Services – Office of Inspector General, Social Security – Office of Inspector General, and further assistance from the Florida Highway Patrol and the Florida Department of Highway Safety and Motor Vehicles. It is being prosecuted by Assistant United States Attorney Jay L. Hoffer.
Santa Clarita Man Sentenced to Nearly 6½ Years in Prison for Stealing $1.7 Million from Investors via His Real Estate ‘Coupon Bond’ ScamRead the Press Release
LOS ANGELES – A Santa Clarita resident who invested in real estate and sold “coupon bonds” that promised regular interest payments on top of principal repayment was sentenced today to 77 months in federal prison for defrauding investors out of more than $1.7 million.
Matthew Skinner, 45, was sentenced by United States District Judge Percy Anderson, who also ordered him to pay $1,744,946 in restitution.
Skinner pleaded guilty on June 1 to one count of securities fraud.
In 2014, Skinner founded a company called Empire West Equity Inc. and later established another business named Simple Growth LLC. Skinner used social media platforms such as Facebook and YouTube to promote himself, falsely claiming to be an experienced and successful real estate investor with more than $200 million in deals under his belt.
After Empire West experienced financial troubles – Skinner was unable to pay his staff and investors – he established Simple Growth in 2018 and falsely told investors who purchased Simple Growth coupon bonds “that their money would be used to purchase real estate that [Skinner] and Empire West would develop and resell at a profit,” according to court documents.
Skinner did not intend to purchase, develop or resell real estate, and that he instead used investor funds to pay older investors, his employees and himself. Instead, Skinner used investor funds from those entities and accounts to pay for personal trips, his mortgage, his utility bills, cosmetic surgery, and alimony payments to his ex-wife.
Simple Growth raised approximately $1,744,946 from more than 20 investors – none of whom received any of their money back.
“Several of the victims were elderly and were seeking safe investment opportunities,” prosecutors argued in a sentencing memorandum. “Several of the victims described how [Skinner} repeatedly lied to them and made-up excuses of why he was unable to make the quarterly interest payments.”
The FBI investigated this case.
Assistant United States Attorney Jeff Mitchell of the Major Frauds Section prosecuted this case.
San Francisco Man Sentenced to Thirteen Years for Transporting DrugsRead the Press Release
Acting United States Attorney Steven Russell announced that Ricardo Jiminez-Noveno, 29, of San Francisco, California, was sentenced today in Lincoln, Nebraska, by United States District Court Judge John M. Gerrard to a term of 156 months’ imprisonment following his conviction for possession of 500 grams or more of methamphetamine, as well as cocaine and marijuana, with the intent to distribute. After he completes his prison sentence, Jiminez-Noveno will also serve five years on supervised release. There is no parole in the federal system.
On November 4, 2021, Esteban Dejesus Huerta Rocha, along with Jose Alfredo Ek-Poot and Jiminez-Noveno, were traveling east on Interstate 80 near Grand Island when they were stopped by a trooper with the Nebraska State Patrol for driving at 87 mph in a 75-mph zone. Rocha was the driver, Jiminez-Noveno was the front seat passenger, and Ek-Poot was seated in the back. When the trooper approached the car, he could smell the odor of marijuana coming from the car and he saw a bag of marijuana inside the car. When troopers searched the car, a mason jar containing marijuana was located in the front passenger door compartment. A backpack containing a methamphetamine pipe was discovered on the front passenger floorboard. Rocha was searched and he had a small bag of cocaine in his pocket. In the trunk, troopers found approximately 8.5 pounds of methamphetamine, 5.5 pounds of marijuana, and 10.8 ounces of cocaine.
Jiminez-Noveno pleaded guilty on August 30, 2022. Rocha pleaded guilty on July 6, 2022. On October 7, 2022, Rocha was sentenced to a 135-month term of imprisonment, and five years of supervised release. Ek-Poot is set for a trial beginning on January 23, 2023.
This case was investigated by the Nebraska State Patrol.
Rochester Man Sentenced to More Than 14 Years in Prison for Fentanyl Trafficking and Fatal OverdoseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Julio A. Rodriguez, 31, of Rochester, NY, who was convicted of conspiracy to possess with intent to distribute, and to distribute, 40 grams or more of fentanyl, was sentenced to serve 174 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that stated that Rodriguez was part of a group of individuals that ran a drug house at 192 Weaver Street in Rochester, selling fentanyl from the house in 2019 and 2020. On February 25, 2020, investigators executed a search warrant at the Weaver Street residence. During the search, they recovered approximately 11 grams of fentanyl, materials used to process and package controlled substances for street-level distribution, two digital scales, a strainer, five bags of new and unused small Ziploc bags, a bag of small black rubber bands, medical masks and latex gloves, and $10,445 in cash, all of which consisted of proceeds from the distribution of fentanyl.
Rodriguez admitted selling a quantity of fentanyl that caused an 18-year-old female to suffer a fatal overdose in 2018. The victim and a group of her friends obtained fentanyl from Rodriguez at the Weaver Street drug house. The victim returned to her home in Ontario County, used the fentanyl, and died in her bedroom from a fentanyl overdose.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Rochester Police Department, under the direction of Chief David M. Smith.
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Robins Air Force Base Service Member Pleads Guilty to Possessing Child Sexual Abuse MaterialRead the Press Release
MACON, Ga. – A Robins Air Force Base service member pleaded guilty to possessing child sexual abuse material (CSAM) in federal court today resulting from a Project Safe Childhood (PSC) investigation instigated by a parent who reported sexually explicit Snapchat communications between the defendant and her middle schooler.
Justin Wayne Pallett, 28, of Warner Robins, pleaded guilty to possession of child sexual abuse material today before U.S. District Judge Tilman E. “Tripp” Self III. Pallett faces a maximum of 20 years of imprisonment to be followed by five years to life of supervised release and a maximum $250,000 fine. In addition, Pallett will have to register as a sex offender upon his release from federal prison. Sentencing is scheduled for March 7, 2023.
According to court documents, the mother of a 13-year-old female alerted authorities in Nov. 2020 that her daughter had exchanged sexually explicit messages and images with a 26-year-old male, later determined to be Pallett. Pallett was an active-duty service member assigned to Robins Air Force Base at the time of the offense. Pallett and the girl communicated via Snapchat and Facebook Messenger. Pallett was engaged in similar sexually explicit communication with numerous other underage females on Snapchat.
On March 25, 2021, agents with the U.S. Air Force, Office of Special Investigations, executed a search warrant at Pallett’s home in Warner Robins, seizing numerous electronic devices belonging to the defendant. A forensic analysis of Pallett’s devices found 178 images and six videos of child sexual abuse material; 14 of the images matched images from the National Center for Missing and Exploited Children (NCMEC) database. Some of the images contained prepubescent minors under the age of 12 years old.
The case was investigated by the U.S. Air Force, Office of Special Investigations.
Assistant U.S. Attorney Will R. Keyes is prosecuting the case.
Raleigh County Man Sentenced to Prison for Witness RetaliationRead the Press Release
CHARLESTON, W.Va. – David Stanley, 46, of Bolt, was sentenced today to three years and five months in prison, to be followed by three years of supervised release, for retaliation against a government witness.
According to court documents and statements made in court, from July 2021 through August 11, 2021, Stanley sent multiple intimidating and threatening messages through Facebook Messenger to a witness in the federal criminal case of Stanley’s brother.
The brother, Charles Stanley, 52, of Shady Spring, pleaded guilty to aiding and abetting the destruction of an energy facility and was sentenced to two years and six months in prison on June 22, 2022. According to court documents and statements made in court, Charles Stanley admitted to working with others to steal multiple pieces of specialized mining equipment in May and June, 2019, from the energy facility, located in Boone and Lincoln counties, resulting in more than $5,000 in damage.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Federal Bureau of Investigation (FBI).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Kathleen Robeson, John File and Negar Kordestani 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-144.
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Providence Brothers Charged in Federal Court as ATF, Postal Service Agents Seize Five Firearms, Including Four “Ghost Guns”Read the Press Release
PROVIDENCE – Two Providence brothers previously convicted in New York state court on violent crime charges are facing federal charges following the seizure of five firearms, including four “ghost guns,” and ammunition during searches of their residences as part of a Project Safe Neighborhoods (PSN) investigation, announced United States Attorney Zachary A. Cunha.
Both Lucas Soriano, 41, and Rafael Soriano, 44, are charged by way of a federal criminal complaint with possession of firearms and ammunition after having been previously convicted of a crime punishable by a term of imprisonment exceeding one year; Lucas Soriano is also charged with making false statements to a federally licensed firearms dealer when attempting to purchase a firearm and with causing false records to be kept by a federally licensed firearms dealer.
Since July 2022, agents from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and United States Postal Inspection Service (USPIS) Postal Inspectors have been investigating individuals who are believed to be using the United States mail in furtherance of violating federal firearm laws. Additionally, ATF Agents have been focusing on individuals who are prohibited from possessing firearms, as well as individuals who are engaging in firearm-trafficking activities by illegally manufacturing and distributing guns.
According to court documents, a number of retailers that specialize in the advertising and sale of firearm parts, ammunition and firearm accessories allegedly shipped orders through the U.S. Postal Service to both Lucas and Rafael Soriano at their mother’s address, located in the same dwelling where Rafael also resides. These orders contained items that are commonly used to manufacture privately made firearms that lack serial numbers and other manufacturer or importer markings, rendering them difficult for law enforcement to trace.
During the course of this PSN investigation, ATF also learned that in June 2022, a federally licensed firearm dealer in Rhode Island denied Lucas Soriano application to purchase a firearm after he allegedly falsely claimed on ATF forms that he had not been previously convicted of a crime, when in fact he had.
On Friday, ATF agents and Postal inspectors executed court-authorized search warrants at the residences of both men. Law enforcement seized three “ghost guns,” an additional 9mm firearm, and assorted ammunition from Lucas Soriano’s apartment, and seized one “ghost gun,” two ammunition magazines with 37 rounds of 9mm ammunition, and a bag containing various loose ammunition from Rafael Soriano’s residence.
Both men made initial appearances in U.S. District Court on Friday. A criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
According to court records, Rafael Soriano was previously convicted in New York state court on robbery charges and in federal court in Rhode Island on drug-trafficking charges; Lucas Soriano was convicted in New York state court on armed robbery and a firearm charge.
The cases in federal court are being prosecuted by Assistant United States Attorney Ronald R. Gendron.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Prior Felon Pleads Guilty to Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Francis C. Bynoe, 35, of Rochester, NY, pleaded guilty to possession with intent to distribute 500 grams or more of cocaine and being a felon in possession of a firearm before U.S. District Judge Frank P. Geraci, Jr. The charges carry a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Cassie M. Kocher, who is handling the case, stated that on September 29, 2021, law enforcement executed a search warrant at Bynoe’s Rochester residence, seizing four firearms, ammunition, quantities of cocaine and a substance containing fentanyl, heroin, and para-fluorofentanyl (a fentanyl analogue), and items commonly used to cook cocaine into cocaine crack. In April 2012, Bynoe was convicted of Criminal Possession of a Weapon in the Second Degree and as a result is legally prohibited from possessing a firearm.
The plea is the result of an investigation by the Rochester Police Department, under the direction of Chief David Smith and Homeland Security Investigations, under the direction of Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for April 6, 2023, at 9:30 a.m. before Judge Geraci.# # # #
Prior Felon Arrested on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Robert Bibbins, 50, of Rochester, NY, was arrested and charged by criminal complaint with receipt and possession of child pornography after having previously been convicted of a child pornography offense. The charges carry a minimum penalty of 10 years in prison, a maximum of 40 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that according to the complaint, in 2015, Bibbins was convicted of a child pornography offense in New York State Court and sentenced to a jail term and 10 years probation. In 2020, Bibbins violated probation and was sentenced to serve one to three years. On September 19, 2022, he was released after having served two years. Three days later, during a routine search, parole officers discovered an internet-capable cellular phone secreted in a trash can at the half-way house where Bibbins was living. An initial review recovered images of children in sexually explicit poses, as well as naked children. A full forensic examination uncovered multiple images of child pornography.
The criminal complaint is the result of an investigation by the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci and the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Acting Special Agent-in-Charge Michael Stansbury.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pinon Man Sentenced to 202 Months for Second Degree MurderRead the Press Release
PHOENIX, Ariz. – On November 14, 2022, Kelly Joyce, 38, of Pinon, Arizona, was sentenced by United States District Judge Dominic W. Lanza to 202 months in prison, followed by five years of supervised release. Joyce previously pleaded guilty to Second Degree Murder.
On March 2, 2020, Joyce, an enrolled member of the Navajo Nation, shot and killed the victim. The crime occurred in Pinon.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorney Jillian Besancon, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-08093-PCT-DWL
RELEASE NUMBER: 2022-215_Joyce# # #
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.
Peoria Man Sentenced to Forty Months in Prison for Possession of a Firearm as a FelonRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Datreon Linwood, 25, of the 1400 block of West Covington Court, was sentenced on November 17, 2022, to serve 40 months in federal prison for possessing a firearm as a felon. Linwood is required to serve a three-year term of supervised release following his imprisonment.
At the sentencing hearing before U.S. District Judge James E. Shadid, the government presented evidence that in March 2022 officers conducted a traffic stop of Linwood to investigate a hit and run accident that occurred a month prior. During the traffic stop, officers located a semi-automatic handgun in the front pocket of the hooded sweatshirt Linwood was wearing. The .40 caliber pistol was loaded with a live round of ammunition in the chamber and was equipped with a high-capacity extended magazine loaded with an additional 28 rounds of live ammunition. The firearm was previously reported as stolen in November 2016.
A federal complaint was filed against Linwood in March 2022, and he was indicted a week later. Linwood entered a guilty plea in July 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for possession of a firearm by a felon at the time of Linwood’s offense were up to 10 years’ imprisonment, up to three years of supervised release, and a possible fine of up to $250,000.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, in conjunction with the Peoria Police Department investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
The case against Linwood 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
Pennsylvania man who received more than $1 million via mail through government imposter scheme sentenced to prisonRead the Press Release
COLUMBUS, Ohio – A Bristol, Pennsylvania, man was sentenced in U.S. District Court today to 36 months in prison for multiple counts of mail fraud and mail fraud conspiracy. He was also ordered to pay more than $1.1 million in restitution.
Sagarkumar Suresh Patel, 29, conspired with others to cause victims to mail bulk amounts of cash by pretending to be federal government officials.
According to court documents, co-conspirators would call victims and identify themselves as law enforcement officers or attorneys working with the federal government. They would threaten victims by falsely informing them they had active warrants for their arrest, and that their bank accounts and social security numbers had been compromised.
Co-conspirators would tell the victims that to avoid losing money from their bank accounts they needed to withdraw large sums of cash from their bank.
The victims were told to insert the cash between the pages of several reading magazines and then place each magazine in a bubble-wrapped envelope before placing the wrapped magazines in a cardboard box. Victims mailed packages to Walgreens and other mail depositories to aliases used by Patel.
In June 2021, Dublin police officers intercepted a package mailed to Patel at the Walgreens on Hospital Drive that contained $22,000 in cash inserted into magazines. When officers searched Patel’s vehicle, they discovered another magazine package containing $25,000 in cash, $30,000 in a white plastic bag that was wrapped in bubble wrap, a plastic Donatos pizza bag that contained $31,500 and a Southern First bank bag that contained $22,500.
“I listened to three of the victims who participated in today’s sentencing hearing, said U.S. Attorney Kenneth L. Parker. “As each of them made clear, the defendant’s illegal actions nearly wiped out all of their life savings. The defendant’s actions caused so much pain and despair to numerous people. A sentence of imprisonment was definitely warranted in this case. This office will continue to work with our federal, state and local law enforcement partners to aggressively pursue and prosecute those who engage in this type of criminal activity.”
Patel was charged federally in June 2021 and pleaded guilty in November 2021.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Dublin Police Chief Justin Paez announced the sentence imposed today by Chief U.S. District Court Judge Algenon L. Marbley. Assistant United States Attorney Kenneth F. Affeldt is representing the United States in this case.
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North Texas Couple Charged with $684,000 Paycheck Protection Program FraudRead the Press Release
A North Texas couple has been charged with defrauding the Paycheck Protection Program out of more than $684,000, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Patrick Kasong Muyej, 48, and Chisanga Mable Scot, 43, were indicted on one count each of conspiracy to commit conspiracy to commit wire fraud. Mr. Muyej was also charged with eight counts of money laundering and one count of theft of government funds while Ms. Scott was charged with one count of false use of a passport.
According to the indictment, the pair allegedly submitted fraudulent applications for $1.85 million in Paycheck Protection Program loans on behalf of businesses that did not qualify for the loans.
In application paperwork, they allegedly falsified the business’s number of employees – listing individuals who they did not employ – and manufacturing the businesses’ monthly payroll.
They allegedly used the same bank statement in support of multiple loan applications but doctored the name of the account holder on each one to match the name of the PPP loan applicant.
In total, they received two PPP loans totaling $684,158.33. Mr. Muyej is also alleged to have laundered that money.
In addition, Mr. Muyej also took advantage of Covid relief by fraudulently obtaining unemployment insurance benefits from the State of Nevada in August 2020.
An indictment is merely an allegation of criminal conduct, not evidence. Both defendants are presumed innocent until proven guilty in a court of law.
If convicted, Mr. Muyej and Ms. Scott face up to 20 years in federal prison on the count of conspiracy to commit wire fraud. Mr. Muyej also faces up to 20 years in prison on each count of money laundering and up to ten years for the count of theft of government funds. Ms. Scott faces up to 10 additional years on the count of false use of a passport.
The Federal Bureau of Investigation’s Dallas Field Office and the State Department’s Diplomatic Security Service conducted the investigation. Assistant U.S. Attorney Marty Basu is prosecuting the case.
The Paycheck Protection Program (PPP) was authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted on March 29, 2020, to provide emergency financial assistance to Americans suffering economic hardship due to the COVID-19 pandemic. The PPP provided forgivable loans to small businesses to cover payroll, rent, and certain other expenses.
New York Man Sentenced by Federal Court in Rhode Island Fraud Scheme Targeting SeniorsRead the Press Release
PROVIDENCE – Jason Hatcher, 40, of New York, NY, was sentenced today to nearly three years in federal prison for his participation in a conspiracy that defrauded more than a dozen Rhode Island seniors who unknowingly fell victim to a so-called “grandparent scam,” announced United States Attorney Zachary A. Cunha.
Fourteen known victims, who ranged from seventy-nine to ninety-four years of age, were contacted by telephone by callers impersonating family members or attorneys. These callers falsely told the victims that a loved one, generally a grandchild, had been arrested after being involved in a motor vehicle accident, and needed cash bail. The victims were directed to gather cash for these fake bail payments and told to provide the money to a courier who would be sent to their home. Different members of the conspiracy played various roles to carry out the scam; Hatcher travelled around Rhode Island and met face-to-face with many of the victims to collect the cash payments.
Rhode Island victims were scammed out of approximately $394,033.
Hatcher pleaded guilty on July 5, 2020, to conspiracy to commit wire fraud and aggravated identity theft. He was sentenced today by U.S. District Court Judge William E. Smith to thirty-three months in federal prison to be followed by three years of federal supervised release. Hatcher was ordered to pay restitution in the amount of $394,033.
Two co-defendants in this matter, Bryan Valdez-Espinosa, 22, and Diego A. Alarcon, 22, of Union City, NJ, pleaded guilty in July to conspiracy to commit wire fraud and are awaiting sentencing in U.S. District Court in Providence.
The cases are being prosecuted by Assistant United States Attorneys G. Michael Seaman, Christine D. Lowell, and Lee H. Vilker.
The matter was investigated by Homeland Security Investigations. United States Attorney Cunha thanks the Warwick, Cranston, East Providence, Johnston, Hopkinton, Cumberland, Coventry, North Kingstown, Barrington, and Smithfield Police Departments for their assistance with the investigation.
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New Jersey Man Pleads Guilty to Trafficking CocaineRead the Press Release
ALBANY, NEW YORK – Robert “Bobby” Ingrao, age 75, of Lodi, New Jersey, pled guilty today to conspiring to distribute cocaine, and to possessing 9 kilograms of cocaine and intending to deliver it to co-conspirators in Schenectady, New York.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
Ingrao admitted that on March 31, 2021, he and co-conspirators drove to Schenectady in two cars in order to take possession of a third vehicle, a blue Jeep Grand Cherokee. The blue Jeep contained a hidden compartment, or “trap,” in its trunk area.
One of Ingrao’s co-conspirators then drove the blue Jeep from Schenectady to the New York City/northern New Jersey area. At some point between the evening of March 31 and the morning of April 2, Ingrao’s co-conspirators placed 9 kilograms of cocaine in the blue Jeep’s hidden compartment.
On the morning of April 2, 2021, Ingrao drove the blue Jeep north from the New York City/northern New Jersey area, knowing that its hidden compartment contained 9 kilograms of cocaine, and intending to deliver that cocaine to other co-conspirators in Schenectady.
New York State Police conducted a traffic stop of Ingrao in Greene County, as he was driving the blue Jeep alone, north on Interstate 87. Troopers then discovered 9 kilograms of cocaine in the blue Jeep’s hidden compartment.
Sentencing is scheduled for March 22, 2023. Ingrao faces at least 10 years and up to life in prison, as well as at least 5 years of post-imprisonment supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Three defendants still face charges in this case:
- Richard “Richie” Sinde, age 57, of Fort Lee, New Jersey;
- Jeffrey C. Civitello Sr., age 51, of Schenectady; and
- Jeffrey C. Civitello Jr., age 23 of Schenectady.
They are scheduled to go on trial on April 17, 2023, before United States District Judge Mae A. D’Agostino. As to these remaining defendants, the charges in the indictment are merely accusations. These defendants are presumed innocent unless and until proven guilty.
This case is being investigated by the DEA’s Capital District Drug Enforcement Task Force, which includes DEA Special Agents and investigators from state and local police agencies, including the Saratoga Springs Police Department, the Saratoga County Sheriff’s Office, the Washington County Sheriff’s Office, and the New York State Police. The case is being prosecuted by Assistant U.S. Attorney Michael Barnett.
Missouri Man Pleads Guilty to Using Violence Against Witnesses with Knowledge of the Disappearance, Murder of a Joplin WomanRead the Press Release
TULSA, Okla. – Another defendant has pleaded guilty to using physical force against two individuals to stop them from communicating with law enforcement about the kidnapping and murder of a Joplin, Missouri, woman, announced U.S. Attorney Clint Johnson of the Northern District of Oklahoma.
Lane Ryan Bronson, 29, pleaded guilty to tampering with a witness, victim, and informant by using and threatening physical force. If a federal judge approves the stipulated sentence, Bronson will serve 19 years in federal prison. The judge will make the final determination at a sentencing hearing to be held at a later date.
Bronson admitted that on Aug. 13, 2020, he directed Chloe Stith, 22, to lure the two victims to her car where she restrained them and blindfolded them with duct tape. Stith and Bronson then drove the victims to a secluded location. They uncovered the victims’ eyes, and Bronson told one victim that he heard she had been talking about Jolene Walker Campbell’s disappearance. Bronson then assaulted the male victim while he was still restrained and defenseless.
Bronson’s brother Tre Ackerson, 28, is alleged to have kidnapped Walker Campbell in Joplin, traveled into Oklahoma, and murdered the woman between July 4 and July 5, 2020. Ackerson and Breanna Sloan, 23, then allegedly left her body in a rural Mayes County, Oklahoma, field. Sloan drove the vehicle and initially lured the victim by offering her a ride. On Nov. 17, 2022, Sloan pleaded guilty to aiding and abetting Ackerson to kidnap the victim, ultimately leading to her murder. Ackerson is set for trial in January and is innocent until proven guilty.
Bronson and Ackerson’s mother Kimberly Grissom, 48, and Jacob Scribner, 35, are also awaiting further proceedings in federal court. They are charged with conspiracy to retaliate against a witness, victim, and informant.
In total, seven defendants have now pleaded guilty to various charges from kidnapping to witness tampering.
The defendants are from the Joplin, Missouri, area.
The FBI led the investigation with the support of the Muscogee Nation Lighthorse Police Department, Mayes County Sheriff’s Office, and Joplin Police Department. Assistant U.S. Attorneys Justin G. Bish and George Jiang are prosecuting the case.
Milwaukee Man Sentenced to Federal Prison for Conspiracy to Defraud Medicare and Medicaid.Read the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 18, 2022, David Guerrero, Jr., was sentenced to 32 months’ imprisonment for conspiracy to defraud Medicare and Medicaid. Guerrero was also ordered to pay over $1 million in restitution to Medicare and Medicaid.
Court records in the case established the following. Guerrero worked at two Milwaukee-area medical clinics. Beginning in 2016, Guerrero engaged in a years’ long scheme to refer patients to pharmacies owned by his co-defendant, Alexander Shister, for expensive compound pain creams in exchange for illegal kickback payments. Although he is not a licensed medical provider, Guerrero used his access to private medical records at the clinics to identify patients who could plausibly need the pain creams and then ordered the pain creams from Shister’s pharmacies without the patients’ knowledge or consent. As a result of the scheme, Medicare and Medicaid paid Shister’s pharmacies about $1 million for medically unnecessary pain creams, including creams not even received by patients. Guerrero received over $100,000 in kickbacks from Shister for his role in the scheme. In addition, Guerrero engaged in another kickback scheme with a medical laboratory company, receiving over $150,000 in kickbacks in exchange for ordering urine drug tests that doctors at the clinics generally did not approve or review. In August 2022, Guerrero pleaded guilty to one count of conspiracy. Shister has previously plead guilty for his role. His sentencing is set for January 13, 2023.
At sentencing, United States District Judge J.P. Stadtmueller emphasized the seriousness of Guerrero’s crime, including the length of the fraudulent scheme and the significant losses suffered by the Medicare and Medicaid programs. Judge Stadtmueller further noted that Guerrero violated the trust of patients by using their private medical information without their knowledge or consent in order to implement the scheme and earn his kickback payments.
“Medicare and Medicaid only pay for medications and services that are actually needed to treat patients, not items ordered by individuals working in the medical field to line their own pockets,” said United States Attorney Haanstad. “Guerrero took advantage of his access to patients’ private medical information to order millions of dollars of unnecessary pain creams and drug tests, all so that he could earn hundreds of thousands of dollars of illegal kickbacks. This office is committed to working with our federal, state, and local partners to prevent kickback schemes and other frauds against the Medicare and Medicaid programs.”
“The billing of medically unnecessary medications and tests, as well as the payment of kickbacks to induce those referrals to a federal health care program is illegal,” said Mario M. Pinto, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General. “The OIG is committed to working with our law enforcement partners to hold those who seek to defraud federally funded health care programs accountable.”
"The defendant thought he could get away with criminal activity, accessing patient’s medical records without their knowledge and using that information for personal financial gain,” said FBI Special Agent in Charge Michael E. Hensle. “Working with his co-defendant, they conspired to receive significant payments of nearly $1 million from Medicare and Medicaid for unnecessary medical products. They also received over $150,000 in kickbacks from a medical lab. The FBI continues to stand with our local, state, and federal partners to identify, investigate, and bring these offenders to face justice.”
The Federal Bureau of Investigation and the Office of the Inspector General for the Department of Health and Human Services investigated the case. Assistant United States Attorneys Benjamin Proctor and Michael Carter handled the prosecution.
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Michigan City Man Sentenced to 87 Months in PrisonRead the Press Release
SOUTH BEND –Santana Miller, 37 years old, of Michigan City, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Miller was sentenced to 87 months in prison followed by 3 years of supervised release.
According to documents in the case, in April 2022, Miller possessed a handgun and a rifle while in Michigan City. At that time, he was on federal supervised release for a controlled substance conviction. Miller’s criminal history revealed he has four prior felony convictions and is therefore prohibited from possessing these firearms.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Michigan City Police Department. The case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Methamphetamine Dealer Sentenced to over 21 Years in Federal PrisonRead the Press Release
INDIANAPOLIS – Bradley Gulledge, 42, of Indianapolis, was sentenced to a total of 262 months in federal prison after pleading guilty to possession with the intent to distribute methamphetamine in two federal cases
According to court documents, on August 29, 2018, Gulledge was arrested in Indianapolis when officers executed a search warrant at his residence and located over 280 grams of pure methamphetamine, digital scales, and multiple firearms. On September 10, 2018, after Gulledge posted bond in Marion County, Gulledge was located by law enforcement officers during the execution of another search warrant and found to be in possession of over 150 grams of pure methamphetamine and a firearm.
Gulledge has multiple prior felony convictions in Indiana, including convictions for dealing in cocaine or narcotic drugs and for unlawful firearm possession by a serious violent felon.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Superintendent Douglas Carter, Indiana State Police, R. Sean Fitzgerald, Special Agent in Charge of HSI Chicago, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The Indiana State Police, Homeland Security Investigations, and the FBI investigated the cases. The sentence was imposed by Chief U.S. District Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that the defendant be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash who prosecuted this 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 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.
McNary Man Sentenced to 180 Months for Abusive Sexual Contact of a ChildRead the Press Release
PHOENIX, Ariz. – On November 7, 2022, Keenan Sherman Johnson, 26, of McNary, Arizona, was sentenced by United States District Judge Steven P. Logan to 180 months in prison, followed by lifetime supervised release. Johnson, an enrolled member of the White Mountain Apache Tribe, previously pleaded guilty to Abusive Sexual Contact of a Child.
In October 2018, the victim disclosed to her school counselor that Johnson had repeatedly sexually abused her several years before. When interviewed, Johnson admitted committing some of the acts, and apologized.
The Federal Bureau of Investigation conducted the investigation in this case. Assistant U.S. Attorney Jennifer E. LaGrange, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08128-PCT-SPL
RELEASE NUMBER: 2022-214_Johnson# # #
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.Mason County Man Pleads Guilty to Child Pornography CrimeRead the Press Release
HUNTINGTON, W.Va. – Matthew Ryan Harper, 22, of Point Pleasant, pleaded guilty today to distribution of child pornography.
According to court documents and statements made in court, on June 9, 2021, Harper used the Snapchat social media platform to distribute a video of a prepubescent minor female engaged in sexually explicit conduct.
Harper admitted to distributing videos containing child pornography on three additional occasions in June 2021. Harper communicated with others on Snapchat and the Omegle online chat website about obtaining and trading child pornography during this time.
Harper further admitted to possessing 100 images and 38 videos of child pornography on January 25, 2022. Some of the images depicted toddlers.
Harper is scheduled to be sentenced on February 27, 2023, and faces a mandatory minimum of five years and up to 20 years in prison, at least years and up to a lifetime of supervised release, and a $250,000 fine. Harper must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the United States Department of Homeland Security, Homeland Security Investigations (“HSI”).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Julie White is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-60.
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Maryland Livestock Brokers Sentenced to 30 Months’ Imprisonment for Exporting Dairy Cattle Through Fraudulent Health CertificatesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 17, 2022, Daniel Gutman, age 40, and Benjamin Gutman, age 40. both residents of Maryland, were each sentenced by United States District Court Judge Jennifer P. Wilson to 30 months in prison for a conspiracy to defraud and commit offenses against the United States. Collectively, they were ordered to pay $1,938,646.42 in fines and forfeiture.
According to United States Attorney Gerard M. Karam, Daniel Gutman and Benjamin Gutman are brothers who own and operate a livestock exporting business known as Gutman Brothers Dairy Cattle (“Gutman Brothers”), with operations in Maryland and Pennsylvania. Federal law requires cattle transported in interstate and foreign commerce to be tested for certain diseases prior to shipment, including Tuberculosis, Brucellosis, Leucosis, and Bovine Viral Diarrhea. The United States Department of Agriculture certifies that U.S. agricultural and food products shipped to international markets meet both U.S. and foreign requirements. When it comes to dairy cattle, this process relies upon the services of USDA-accredited veterinarians and the animal exporters to whom these veterinarians provide services.
The USDA’s investigation revealed that Daniel Gutman and Benjamin Gutman, with the assistance of Dr. Donald Yorlets, a USDA-accredited veterinarian, conspired to carry out a scheme to defraud foreign customers and the USDA. They did so by submitting non-authentic, bovine blood samples for the detection of disease to a USDA-accredited testing laboratory located in Harrisburg, Pennsylvania and by issuing false and fraudulent health certificates for the untested animals. In addition, Yorlets also falsely claimed in health certificates that cattle had tested negative for Bovine Tuberculosis when, in fact, the required caudal skin fold test had not been administered. Furthermore, Yorlets submitted these false and fraudulent health certificates to a USDA Veterinary Services Endorsement Office. The USDA’s endorsement of these health certificates permitted dairy cattle to be shipped in interstate and foreign commerce.
Yorlets signed international health certificates for Gutman Brothers dating back to 2014. With his assistance, Daniel and Benjamin Gutman shipped close to 20,000 head of dairy cattle to buyers in foreign countries, making millions of dollars in profits.
Previously, Daniel and Benjamin Gutman pleaded guilty conspiracy to defraud the United States in connection with the scheme. Likewise, on August 31, 2020, Yorlets pleaded guilty to a one-count criminal information charging him with conspiracy to defraud the United States. Yorlets currently awaits sentencing.
“Trade and commerce with our foreign and domestic partners require that all parties conduct themselves in a fair, legal, and transparent manner. Without trust in the system, there can be no trade. The Gutman brothers have broken this trust and damaged relations with our partners," said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “Thankfully, special agents with HSI and the USDA who focus on trade-based investigations were able to uncover this criminal conspiracy that impacted both the United States and our partner nations.”
“We appreciate the ongoing commitment and concerted efforts of our law enforcement partners at the U.S. Attorney’s Office and the Department of Homeland Security, U.S. Immigration and Customs Enforcement, Homeland Security Investigations, as well as the U.S. Department of Agriculture’s Animal and Plant Health Inspection Service, Investigative and Enforcement Services to investigate a long running scheme affecting the exportation of healthy animals from the U.S. and the illegitimate issuance of required health certificates based on fraudulent test results” said Special Agent-in-Charge Bethanne M. Dinkins of the U.S. Department of Agriculture (USDA), Office of Inspector General (OIG). “In order to ensure integrity in international commerce, USDA, OIG will continue to dedicate resources and prioritize work that disincentivizes those who seek to take short cuts in order to increase their own profit margins while at the same time demeaning the value and safety of American agricultural products.”
The case was investigated by the United States Department of Agriculture, Office of Inspector General and Homeland Security Investigations. Assistant U.S. Attorneys Ravi Romel Sharma and Philip J. Caraballo prosecuted the case. Now retired Assistant U.S. Attorney Kim Douglas Daniel previously worked on the case. Assistance was provided by the Department of Justice’s Office of International Affairs and the FBI Legal Attaché for Qatar and Kuwait.
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Kalamazoo Armed Drug Dealer Sentenced to over A Decade in Federal PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN —U.S. Attorney Mark Totten announced today that U.S. District Court Judge Robert J. Jonker sentenced Treshawn Kalian Bible, age 23, of Kalamazoo, Michigan, to 125 months in federal prison for illegally possessing a firearm as a convicted felon. This is the third time in four years that Bible has been convicted of being a felon in possession of a firearm, and today’s sentence was enhanced because Bible possessed his firearm in connection with drug trafficking. Judge Jonker observed that Bible is “enmeshed in gang culture” and “needs to stop.” Addressing the broader community, Judge Jonker said that a “message needs to go out: there really is a serious cost” to this type of behavior.
“Bible had an opportunity to reject a life of violence, but instead treated his federal firearms conviction as a badge of merit,” said U.S. Attorney Mark Totten. “He chose the path of guns and drugs, which led him directly back to prison, this time for more than a decade. Let today’s sentence serve as a reminder that my office has no tolerance for armed drug dealers.”
Bible is known to law enforcement as a member of the “Belmont Gangsters” in Kalamazoo, Michigan, and refers to himself as “FedBaby,” a moniker he had tattooed on his arm as an apparent homage to his 2019 federal gun conviction.
In late 2021, just weeks after Bible was released from prison in that case, police received reports of his involvement in multiple shootings in the Kalamazoo area—two resulting in injuries, and one resulting in death. During a traffic stop in December 2019, police found him with a stolen, loaded revolver, and two digital scales with drug residue on them. On Bible’s phone, police found drug dealing text messages, along with a video showing that he’d been illegally handling firearms since the day after he left from prison.
“The Kalamazoo Valley Enforcement Team is committed to stopping violent offenders from continuing to endanger the public through outreach, enforcement, and partnerships with city, county, state, and federal partners,” said Captain Rafael Diaz of the Kalamazoo Department of Public Safety. “The sentence imposed in this case represents the culmination of many hours of work and collaboration to keep the community safe.”
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. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Kalamazoo Valley Enforcement Team, and the Kalamazoo Department of Public Safety, and prosecuted by Assistant U.S. Attorneys Patrick J. Castle and Davin Reust.
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Justice Department Seeks to Shut Down Houston Area Tax Return PreparerRead the Press Release
The United States filed a complaint in the U.S. District Court for the Southern District of Texas today seeking to bar a Houston area tax return preparer from preparing federal income tax returns for others.
The complaint alleges that Hollins Ray Alexander prepared over 5,200 federal income tax returns during 2020-2022 at a business called “Speedy Title & Tax Service” or “Tax Firm.” According to the complaint, in a number of these tax returns, the defendants significantly overstated the customers’ tax refunds by fabricating or inflating business losses and/or by falsely claiming education credits to which the customers were not entitled.
By repeatedly understating his customers’ tax liabilities, the complaint alleges, Alexander caused harm to the United States of more than an estimated $2.5 million in tax revenue from 2020 to 2022.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Secures Settlement with Firearm Manufacturer to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with Aero Precision LLC, a Washington state firearm manufacturer. The settlement resolves the department’s determination that Aero Precision had a policy of unlawfully screening out certain non-U.S. citizen job candidates, including asylees and refugees, in violation of the Immigration and Nationality Act (INA). Under governing law, asylees and refugees have the same eligibility to work in jobs involving access to sensitive defense-related information as U.S. citizens and lawful permanent residents, and would have to pass the same background check as other employees if an employer requires one.
“Asylees and refugees in the United States are authorized to work and are entitled to fair access to employment opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that all employers, regardless of their industry, have a fair hiring process that does not subject workers to unlawful discrimination.”
The department’s investigation determined that from at least April 2020 until September 2020, Aero Precision routinely implemented a hiring policy that screened out eligible candidates who were not U.S. citizens or lawful permanent residents. Firearm manufacturers in the United States are subject to the International Traffic in Arms Regulations (ITAR), which regulate specific exports of defense articles and services. Absent State Department authorization, employers subject to these regulations must limit access to certain sensitive information to “U.S. persons,” which are defined as U.S. citizens, U.S. nationals, lawful permanent residents, asylees and refugees. The ITAR thus does not authorize or require employers to exclude asylees and refugees from consideration and hire only U.S. citizens and lawful permanent residents. By limiting hiring to just U.S. citizens and lawful permanent residents, Aero Precision placed unnecessary hiring restrictions on its workforce.
Under the settlement, Aero Precision must train staff on the requirements of the INA’s anti-discrimination provision, review its policies to ensure compliance with relevant law and be subject to departmental monitoring and reporting requirements.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Justice Department Secures Agreement with University of California, Berkeley to Make Online Content Accessible to People with DisabilitiesRead the Press Release
The Justice Department announced today that it has filed a proposed consent decree in federal court to resolve allegations that the Regents of the University of California on behalf of the University of California, Berkeley (collectively, UC Berkeley) violated Title II of the Americans with Disabilities Act (ADA) because much of UC Berkeley’s free online content is inaccessible to individuals with hearing, vision, and manual disabilities. The proposed consent decree was filed together with a complaint setting forth the allegations of discrimination.
“By entering into this consent decree, UC Berkeley will make its content accessible to the many people with disabilities who want to participate in and access the same online educational opportunities provided to people without disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This decree will provide people with disabilities access to the numerous free online courses, conferences, lectures, performances and other programming offered by UC Berkeley and its faculty, providing lifelong learning opportunities to millions of people.”
UC Berkeley makes conferences, lectures, sporting events, graduation ceremonies and other university events available to the public on its websites and on other online platforms, including its YouTube and Apple Podcasts channels. It also makes courses available on its UC BerkeleyX platform. Much of this online content is not accessible to people with disabilities because it lacks captions and transcripts for individuals who are deaf and alternative text describing visual images for individuals who are blind. It is also formatted in a way that does not allow individuals with disabilities to access the content using screen readers or other assistive technology.
Under the three-and-a-half-year long consent decree, which requires court approval, UC Berkeley will make all future and the vast majority of its existing online content accessible to people with disabilities. This includes BerkeleyX courses, university websites and video and podcast content on its YouTube, Apple Podcasts and other third-party platforms. UC Berkeley will also revise its policies, train relevant personnel, designate a web accessibility coordinator, conduct accessibility testing of its online content and hire an independent auditor to evaluate the accessibility of its content.
“Through this consent decree, the Department of Justice demonstrates its commitment to ensuring compliance with the ADA by providing individuals with disabilities a full and equal opportunity to participate in and enjoy the benefits of UC Berkeley’s services, programs and activities in equal measure with people without disabilities,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California.
For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Secures Agreement with University of California, Berkeley to Make Online Content Accessible to People with DisabilitiesRead the Press Release
SAN FRANCISCO –The Justice Department announced today that it has filed a proposed consent decree in federal court to resolve allegations that the Regents of the University of California on behalf of the University of California, Berkeley (collectively, UC Berkeley) violated Title II of the Americans with Disabilities Act (ADA) because much of UC Berkeley’s free online content is inaccessible to individuals with hearing, vision, and manual disabilities. The proposed consent decree was filed together with a complaint setting forth the allegations of discrimination.
“By entering into this consent decree, UC Berkeley will make its content accessible to the many people with disabilities who want to participate in and access the same online educational opportunities provided to people without disabilities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This decree will provide people with disabilities access to the numerous free online courses, conferences, lectures, performances, and other programming offered by UC Berkeley and its faculty, providing lifelong learning opportunities to millions of people.”
“Through this consent decree, the Department of Justice demonstrates its commitment to ensuring compliance with the ADA by providing individuals with disabilities a full and equal opportunity to participate in and enjoy the benefits of UC Berkeley’s services, programs, and activities in equal measure with people without disabilities,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California.
UC Berkeley makes conferences, lectures, sporting events, graduation ceremonies, and other University events available to the public on its websites and on other online platforms, including its YouTube and Apple Podcasts channels. It also makes courses available on its UC BerkeleyX platform. Much of this online content is not accessible to people with disabilities because it lacks captions and transcripts for individuals who are deaf and alternative text describing visual images for individuals who are blind. It is also formatted in a way that does not allow individuals with disabilities to access the content using screen readers or other assistive technology.Under the three-and-a-half-year long consent decree, which requires court approval, UC Berkeley will make all future and the vast majority of its existing online content accessible to people with disabilities. This includes BerkeleyX courses, university websites, and video and podcast content on its YouTube, Apple Podcasts, and other third-party platforms. UC Berkeley will also revise its policies, train relevant personnel, designate a web accessibility coordinator, conduct accessibility testing of its online content, and hire an independent auditor to evaluate the accessibility of its content.
For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Grant Establishes New Center to Improve Conditions and Environments in JailsRead the Press Release
The Office of Justice Programs (OJP)’s Bureau of Justice Assistance (BJA) and the National Institute of Corrections (NIC) announced today a grant award of almost $2 million to establish the Department of Justice Jails and Justice Support Center to help create and maintain safe environments for people in the custody of the nation’s jails and those who work in jail facilities.
“It is the responsibility of our corrections systems — jails and prisons alike — to keep individuals in their custody safe and to treat them with dignity and respect,” said Associate Attorney General Vanita Gupta. “We are pleased to work with our partners to ensure that the professionals operating our nation’s jails have the tools and training they need to safeguard the rights and well-being of individuals incarcerated in their facilities.”
More than 3,000 jails are in operation across the United States, with 10.3 million admissions in 2019 and an average daily census of 734,500. Jail administrators face a multitude of challenges, including high population turnover, limited resources and a broad mix of sentenced and unsentenced individuals. Of particular concern is mortality in jails. OJP’s Bureau of Justice Statistics found that 1,200 people died in local jails in 2019.
This award aims to establish a center that will be a centralized hub for providing resources and technical assistance support to help jails maintain safe and humane environments for people who are detained, for their visitors and for those who work there. It will also provide jail staff with specialized trainings, core competency development, expert assessments and consultation on issues related to jail administration, and other professional development resources. The center will be the first of its kind to maximize the core missions, resources and capabilities of both BJA and NIC to expand Justice Department support for jail administrators who identify and seek to address challenges in their systems.
“Millions of people cycle through America’s jails each year, bringing with them a host of challenges, but also presenting opportunities to address the health and well-being of those who enter and leave the system,” said BJA Director Karhlton F. Moore. “This new resource will help jail professionals address the urgent problems they face daily and ensure that conditions inside their facilities are safe, humane and constitutionally sound.”
Shaina Vanek, who served as NIC Acting Director for over five years before leaving recently for a detail at the Consumer Financial Protection Bureau, was instrumental in conceptualizing and designing the center. The award to establish the center is being made to CNA. The National Sheriffs’ Association, the Major County Sheriffs of America, the American Jail Association and the National Association of Counties are partners in the effort. These organizations represent jail administrators and sheriffs’ departments across the country and will use their combined talent and expertise to support the center’s mission.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
The National Institute of Corrections advances public safety by shaping and enhancing correctional policies and practices through leadership, learning and innovation. More information about NIC can be found at www.nicic.gov.
Justice Department Awards Almost $160 Million to Support Forensic ScienceRead the Press Release
The Department of Justice’s Office of Justice Programs (OJP) announced today almost $160 million in grant awards to support crime laboratories, fund forensics research, decrease DNA backlogs and help investigators locate missing persons and identify human remains. The funding is administered by OJP’s Bureau of Justice Assistance (BJA) and National Institute of Justice (NIJ).
“Forensic science can play an indispensable role in solving crimes, absolving the innocent and finding the missing — all of which helps deliver justice to victims and their families,” said Associate Attorney General Vanita Gupta. “The Justice Department is pleased to support the thousands of dedicated professionals who investigate cases, staff our nation’s crime labs and work so hard to help ensure the fair and effective operation of our criminal justice system.”
The awards announced today will support DNA analysis, build the capacity of the nation’s crime labs to examine forensic evidence, help solve cold cases and enable coroners, medical examiners and law enforcement officials to locate missing persons and identify human remains. Grants will also expand the base of knowledge about the utility of forensic tools employed by investigators.
“One of the most urgent challenges facing criminal justice professionals today is earning and retaining the confidence of the communities they serve, a goal that forensic science, with all its untapped potential, can help us achieve,” said BJA Director Karhlton F. Moore. “These investments will give our state, local and Tribal partners the resources they need to solve crimes, improve the clearance rate for serious offenses like murder and sexual assault and bring long-awaited answers to victims and their families.”
“Building a strong forensic science infrastructure is a critical first step in the pursuit of justice and it is vital to ensuring the integrity of our justice system,” said NIJ Director Dr. Nancy La Vigne. “The National Institute of Justice is proud to help strengthen our nation’s forensic network by widening our understanding of the application of scientific methods and techniques to public safety.”
BJA and NIJ are distributing millions of dollars in awards to state and local jurisdictions throughout the United States and territories. Below is a list of funded grants. Descriptions of individual awards can be found by clicking on the links.
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BJA is awarding $25 million under the Paul Coverdell Forensic Science Improvement Grants Program (Formula) and Paul Coverdell Forensic Science Improvement Program (Competitive) to improve forensic science and medical examiner/coroner services, including services provided by laboratories operated by states and units of local government.
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BJA is awarding $7.5 million under the Prosecuting Cold Cases Using DNA Program to increase the capacity of state and local prosecution offices to address and close violent crime cold cases.
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BJA is awarding $2 million under the Strengthening the Medical Examiner-Coroner System Program to strengthen the medical examiner-coroner system in the United States by supporting forensic pathology fellowships and providing resources necessary for medical examiner and coroner offices to achieve and maintain accreditation.
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BJA is awarding $100 million under the DNA Capacity Enhancement for Backlog Reduction Program to increase the capacity of publicly funded forensic DNA and DNA database laboratories to process more DNA samples, thereby helping to reduce the number of forensic DNA and DNA database samples awaiting analysis and/or prevent a backlog of forensic and database DNA samples.
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BJA is awarding $4.5 million under the Missing and Unidentified Human Remains Program to provide funding to eligible applicants for services focused on reporting and identifying missing persons and unidentified human remains cases in the United States.
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BJA is awarding $2.8 million under the Forensics Training and Technical Assistance Program to provide support to the forensic science grant programs administered by the BJA (an estimated 500-plus grantees). These programs provide states and localities with resources and tools to improve the quality of their forensic science services in order to meet the challenges of crime and justice and to improve overall public safety.
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NIJ is awarding $11.7 million under the Research and Development in Forensic Science for Criminal Justice Purposes to support projects that will increase the body of knowledge to guide and inform forensic science policy and practice, or lead to the production of useful materials, devices, systems or methods that have the potential for forensic application.
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NIJ is awarding $1.3 million under the Research and Evaluation for the Testing and Interpretation of Physical Evidence in Publicly Funded Forensic Laboratories to produce practical knowledge that has the potential to improve the examination and interpretation of physical evidence in forensic science laboratories.
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Jury convicts out of state woman in murder for hire caseRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has convicted a 52-year-old woman for conspiracy to commit murder for hire, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for less than two hours before convicting Viola Elizabeth Garcia, Oxnard, California, following a four-day trial.
During trial, the jury heard that in 2018, Mexican Mafia gang members arranged for the murder of an individual residing in Mission. An inmate who was serving a sentence for an attempted murder in 1999 contracted a Colonia Chiques gang member on parole in Oxnard, California, to execute the murder in exchange for $20,000.The gang member recruited and conspired with three additional individuals including Garcia who was his mother. Testimony revealed she agreed to travel from California to Texas to commit the murder in exchange for payment.
On Aug. 30, 2018, Garcia and co-conspirators forcibly entered the victim’s residence in
Mission and attempted to execute the murder. Their attempt was unsuccessful and they tried to flee from the scene. At that time, Garcia led responding law enforcement officers on a high speed chase until she crashed the vehicle.
The jury also heard that in July 2018, they attempted to murder the same victim.
At trial, Garcia admitted she traveled to Texas in July and August 2018 with the co-conspirators while they were in possession of firearms. She also admitted to being present and witnessing gunshots fired in the July 2018 murder attempt.Garcia attempted to convince the jury that she was unaware of any agreement or attempt to commit murder and claimed the purpose of the trip was to transport co-conspirators to visit family members and to look at potential real estate for her daughter who resided in Arizona.
They did not believe those claims and found her guilty as charged.
U.S. District Judge Ricardo H. Hinojosa presided over trial and set sentencing for Jan. 30, 2023. At that time, Garcia faces up to 10 years in federal prison and a possible $??? maximum fine.
Garcia will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the California Department of Corrections and Rehabilitation and police departments in Mission and Oxnard, California. Assistant U.S. Attorneys Roberto Lopez Jr., Cahal P. McColgan and Sarina S. DiPiazza are prosecuting the case.Jury convicts out of state woman in murder for hire caseRead the Press Release
McALLEN, Texas – A federal jury sitting in McAllen has convicted a 52-year-old woman for conspiracy to commit murder for hire, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for less than two hours before convicting Viola Elizabeth Garcia, Oxnard, California, following a four-day trial.
During trial, the jury heard that in 2018, Mexican Mafia gang members arranged for the murder of an individual residing in Mission. An inmate who was serving a sentence for an attempted murder in 1999 contracted a Colonia Chiques gang member on parole in Oxnard, California, to execute the murder in exchange for $20,000.
The gang member recruited and conspired with three additional individuals including Garcia who was his mother. Testimony revealed she agreed to travel from California to Texas to commit the murder in exchange for payment.
On Aug. 30, 2018, Garcia and co-conspirators forcibly entered the victim’s residence in
Mission and attempted to execute the murder. Their attempt was unsuccessful and they tried to flee from the scene. At that time, Garcia led responding law enforcement officers on a high speed chase until she crashed the vehicle.The jury also heard that in July 2018, they attempted to murder the same victim.
At trial, Garcia admitted she traveled to Texas in July and August 2018 with the co-conspirators while they were in possession of firearms. She also admitted to being present and witnessing gunshots fired in the July 2018 murder attempt.
Garcia attempted to convince the jury that she was unaware of any agreement or attempt to commit murder and claimed the purpose of the trip was to transport co-conspirators to visit family members and to look at potential real estate for her daughter who resided in Arizona.
They did not believe those claims and found her guilty as charged.
U.S. District Judge Ricardo H. Hinojosa presided over trial and set sentencing for Jan. 30, 2023. At that time, Garcia faces up to 10 years in federal prison.
Garcia will remain in custody pending that hearing.
The FBI conducted the investigation with the assistance of the California Department of Corrections and Rehabilitation and police departments in Mission and Oxnard, California. Assistant U.S. Attorneys Roberto Lopez Jr., Cahal P. McColgan and Sarina S. DiPiazza are prosecuting the case.
Jamestown Man Pleads Guilty to Selling Drugs Which Cuased Serious Bodily InjuryRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Bradley D. Knapp, 43, of Jamestown, NY, pleaded guilty to conspiracy to possess with intent to distribute, and to distribute, heroin, fentanyl, and methamphetamine before U.S. District Judge Richard J. Arcara. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that during the conspiracy, Knapp bought and sold heroin, fentanyl, and methamphetamine for profit and his own use, utilizing Facebook to conduct his drug trafficking activities. Knapp also used a West 9th Street residence in Jamestown to facilitate the manufacture, packaging, and distribution of the illegal drugs. On August 12, 2020, Knapp sold approximately a gram of heroin/fentanyl to an individual identified as M.H. The next day, on August 13, 2020, M.H. took approximately .5 grams of the heroin/fentanyl, overdosed, and stopped breathing. M.H. received multiple doses of Narcan and was revived.
This effort is part of an Organized Crime Drug Enforcement Task Forces (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 https://www.justice.gov/OCDETF.
The plea is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
Sentencing is scheduled for March 28, 2023, before Judge Arcara.
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International Drug Trafficker Sentenced to 30 Years in Federal Prison for Transporting Thousands of Kilograms of Cocaine to United StatesRead the Press Release
CHICAGO — An international drug trafficker who partnered with Mexican drug cartels to purchase and transport thousands of kilograms of cocaine to Chicago and other parts of the United States has been sentenced to 30 years in federal prison.
LUIS EDUARDO GONZALEZ GARCIA established a sophisticated network of warehouses and front companies posing as legitimate businesses to distribute the cocaine and launder millions of dollars in proceeds. The warehouses were located in Chicago and the nearby suburbs of Naperville, Arlington Heights, and Plainfield, as well as in Texas and Georgia. At Gonzalez Garcia’s direction, the warehouse operators set up front companies and registered them with local governments as if they were legitimate businesses. The companies, which claimed to sell furniture, snack food, laundry detergent, or other items, often operated their own websites and hired employees to conceal the distribution of cocaine through the warehouses. The drugs and cash were primarily concealed in box pallets containing the types of goods the front companies purported to sell and then transported from Mexico on semi-trailer trucks driven by unwitting drivers. A “dirty” pallet in a typical shipment could contain up to 100 kilograms of cocaine or up to $1.5 million in cash.
From 2012 to 2017, Gonzalez Garcia was responsible for the distribution of thousands of kilograms of cocaine throughout the U.S. and the laundering of more than $50 million in narcotics proceeds.
Gonzalez Garcia, 55, of Monterey, Mexico, pleaded guilty earlier this year to federal drug conspiracy and money laundering charges. In addition to the prison sentence, U.S. District Judge Ronald A. Guzman on Nov. 16, 2022, fined Gonzalez Garcia $1.5 million.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Division of the U.S. Drug Enforcement Administration.
This case was part of an Organized Crime Drug Enforcement Task Force operation. OCDETF identifies, disrupts, and dismantles the highest-level drug trafficking organizations and other criminal networks that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies.
“By successfully laundering tens of millions of drug proceeds back down to himself and his cartel partners in Mexico, defendant not only undoubtedly enriched himself but also enriched the Mexican drug cartels – some of the most dangerous criminal organizations in the world,” Assistant U.S. Attorney Sean J.B. Franzblau argued in the government’s sentencing memorandum. “Anyone who is considering partnering with the cartels to move their products from Mexico to the streets of this country must know that they will face the severest of consequences.”
Indianapolis Drug Dealer Sentenced to 130 Months in Federal Prison for Armed Methamphetamine TraffickingRead the Press Release
INDIANAPOLIS – Jacob Wall, 29, of Indianapolis, was sentenced to 130 months in federal prison after pleading guilty to possession with intent to distribute methamphetamine and carrying a firearm during and in relation to a drug trafficking crime.
According to court documents, on January 14, 2020, Indianapolis Metropolitan Police Department (IMPD) officers saw a vehicle driven by an individual, later identified as the Wall, engage in a narcotics transaction at a gas station near Lynhurst Avenue, in Indianapolis. Officers stopped the vehicle after witnessing Wall commit several traffic infractions.
When officers approached the vehicle, they saw plastic baggies sticking out of a backpack in the back seat. A K9 officer arrived and indicated there were drugs in the vehicle. Officers searched and found two baggies containing 893 grams of methamphetamine, marijuana, pills, a .45 caliber Glock M30 semiautomatic handgun, ammunition, and a digital scale. Officers also found several baggies of marijuana in a box inside the vehicle, which they later learned were the drugs Wall was selling at the gas station. Wall was arrested at the scene of the traffic stop.
Wall was previously convicted in Marion County, Indiana, of multiple felony offenses, including burglary, criminal gang activity, and battery. Wall is prohibited under federal law from prohibiting firearms due to these felony offenses.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, made the announcement.
DEA investigated the case. The Indianapolis Metropolitan Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Wall be supervised by the U.S. Probation Office for two years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Abhishek S. Kambli who prosecuted this 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.
Huntington Woman Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Melissa Dawn Lockhart, 49, of Huntington, pleaded guilty today to distribution of a quantity of a mixture and substance containing methamphetamine.
According to court documents and statements made in court, on February 25, 2021, Lockhart sold approximately 5 grams of methamphetamine to a confidential informant at her Huntington residence.
Lockhart is scheduled to be sentenced on February 21, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-73.
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Huntington Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Kilan Nicks, also known as “Low,” 26, of Huntington, pleaded guilty today to distribution of 5 grams or more of methamphetamine and a quantity of fentanyl, and to possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, on May 6, 2022, Nicks sold approximately 4 grams of fentanyl and 29 grams of methamphetamine to a confidential informant at a Roby Road apartment in Huntington. On June 7, 2022, law enforcement officers executed a search warrant at a McVeigh Avenue residence in Huntington while Nicks was present. Nicks admitted to possessing a Taurus 9mm pistol and approximately $3,635 found during the search. Nicks further admitted that the firearm was for his protection and the cash was proceeds from his distribution of drugs.
Nicks also admitted to conspiring with other individuals to distribute methamphetamine and fentanyl in the Huntington area from February 2022 until around June 2022. Nicks traveled to California and Arizona and acquired methamphetamine and fentanyl that he transported back to the Southern District of West Virginia for distribution as part of the conspiracy. Nicks maintained the Roby Road apartment and an 18th Street residence to store and distribute the drugs. Nicks further admitted to selling a total of 37.5 grams of fentanyl and 200 grams of methamphetamine to a confidential informant in the Huntington area over 10 separate transactions during the conspiracy.
On June 7, 2022, law enforcement officers executed search warrants at the 18th Street residence and a residence in Chesapeake, Ohio. Nicks admitted to possessing 690.71 grams of fentanyl and a Radical Firearms, M4 5.56mm rifle seized at the 18th Street residence, and to possessing a Masterpiece Arms, Defender 9mm pistol, and a blender containing fentanyl residue seized at the Chesapeake residence.
Nicks is scheduled to be sentenced on February 2, 2023, and faces a mandatory minimum of 10 years and up to life in prison, five years of supervised release, and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Office.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-118.
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