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4 January 2023
Bristol Man Sentenced to More Than 6 Years in Federal Prison for Illegally Possessing FirearmsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ALEXANDER PATTERSON, 34, of Bristol, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 77 months of imprisonment, followed by three years of supervised release, for unlawfully possessing firearms.
According to court documents and statements made in court, on August 9, 2021, law enforcement conducted a court-authorized search of Tyrone Brown’s residence on Stevens Street in New Haven and seized a loaded 9mm semi-automatic pistol. Brown, who was a convicted felon and was prohibited by federal law from purchasing or possessing a firearm or ammunition, was arrested at that time. The investigation revealed that the firearm was registered to a family member of Leah Boucher, of Bristol, and that Boucher had purchased 10 other firearms at four different gun stores in Connecticut between March and July 2021.
When investigators interviewed Boucher on August 26, 2021, Boucher admitted that she had purchased firearms for other individuals, and that she was no longer in possession of any of the 10 firearms that were registered to her. A search of Boucher’s iPhone revealed photos, taken in July 2021, of Patterson and Brown. In some of the photos, Patterson is seen handling the handgun that was recovered from Brown’s residence on August 9, 2021, and another handgun that investigators determined was registered to Boucher’s family member.
Patterson’s criminal history includes felony convictions in Connecticut and Georgia for firearm, narcotics, home invasion and assault offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Patterson was on Georgia probation and Connecticut parole when he committed the firearm offense in this case.
Patterson has been detained since his arrest on January 12, 2022. On May 24, 2022, he pleaded guilty to unlawful possessions of firearms by a felon.
Brown and Boucher pleaded guilty to related charges. On August 3, 2022, Brown was sentenced to 60 months of imprisonment, and, on August 10, 2022, Boucher was sentenced to 12 months of imprisonment.
In September 2021, law enforcement recovered one of the 10 firearms that Boucher purchased from another felon. The other nine firearms have not been found.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the New Haven Police Department. The case was prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Attorney General Merrick B. Garland Statement on the Second Anniversary of the January 6 Attack on the CapitolRead the Press Release
Friday, Jan. 6, 2023, will mark 24 months since the attack on the U.S. Capitol that disrupted a joint session of the U.S. Congress in the process of affirming the presidential election results.
Under the continued leadership of the Justice Department, the U.S. Attorney’s Office for the District of Columbia and the FBI’s Washington Field Office, the investigation and prosecution of those responsible for the attack continues to move forward at an unprecedented speed and scale.
Attorney General Merrick B. Garland made the following statement:
“Two years ago, the United States Capitol was attacked as lawmakers met to affirm the results of a presidential election. Perpetrators attacked police officers, targeted and assaulted members of the media, and interfered with a fundamental element of our democracy: the peaceful transfer of power from one administration to the next.
“Since then, countless agents, investigators, prosecutors, analysts, and others across the Justice Department have participated in one of the largest, most complex, and most resource-intensive investigations in our history. I am extremely grateful for the dedication, professionalism, and integrity with which they have done this work. This investigation has resulted in the arrest of more than 950 defendants for their alleged roles in the attack. We have secured convictions for a wide range of criminal conduct on January 6 as well as in the days and weeks leading up to the attack. Our work is far from over.
“We will never forget the sacrifice of the law enforcement officers who defended the members of Congress and others inside the Capitol that day. And we will never forget the five officers who responded selflessly on January 6 and who have since lost their lives: Officer Brian Sicknick, Officer Howard Liebengood, Officer Jeffrey Smith, Officer Gunther Hashida, and Officer Kyle DeFreytag.
“The Justice Department remains committed to honoring them. We remain committed to ensuring accountability for those criminally responsible for the January 6 assault on our democracy. And we remain committed to doing everything in our power to prevent this from ever happening again.”
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Based on the public court documents, below is a snapshot of the investigation as of Wednesday, Jan. 4, 2023. Complete versions of most of the public court documents used to compile these statistics are available on the Capitol Breach Investigation Resource Page at https://www.justice.gov/usao-dc/capitol-breach-cases.
Arrests made: More than 950 defendants have been arrested in nearly all 50 states and the District of Columbia. (This includes those charged in both District and Superior Court).
Criminal charges:
- More than 284 defendants have been charged with assaulting, resisting, or impeding officers or employees, including approximately 99 individuals who have been charged with using a deadly or dangerous weapon or causing serious bodily injury to an officer.
- Approximately 140 police officers were assaulted Jan. 6 at the Capitol, including about 80 from the U.S. Capitol Police and about 60 from the Metropolitan Police Department.
- Approximately 11 individuals have been arrested on a series of charges that relate to assaulting a member of the media, or destroying their equipment, on January 6.
- Approximately 860 defendants have been charged with entering or remaining in a restricted federal building or grounds. Of those, 91 defendants have been charged with entering a restricted area with a dangerous or deadly weapon.
- Approximately 59 defendants have been charged with destruction of government property, and approximately 36 defendants have been charged with theft of government property.
- More than 295 defendants have been charged with corruptly obstructing, influencing, or impeding an official proceeding, or attempting to do so.
- Approximately 50 defendants have been charged with conspiracy, either: (a) conspiracy to obstruct a congressional proceeding, (b) conspiracy to obstruct law enforcement during a civil disorder, (c) conspiracy to injure an officer, (d) seditious conspiracy, or (e) some combination of the four.
Pleas:
- Approximately 484 individuals have pleaded guilty to a variety of federal charges, many of whom faced or will face incarceration at sentencing.
- Approximately 119 have pleaded guilty to felonies. Another 364 have pleaded guilty to misdemeanors.
- A total of 52 of those who have pleaded guilty to felonies have pleaded to federal charges of assaulting law enforcement officers. An additional 22 individuals have pleaded guilty to felony obstruction of law enforcement during a civil disorder. Of these 74 defendants, 41 have now been sentenced to prison terms of up to 90 months.
- Four of those who have pleaded guilty to felonies have pleaded guilty to the federal charge of seditious conspiracy.
Trials:
- 40 individuals have been found guilty at contested trials, including three who were found guilty in the Superior Court of the District of Columbia. Another 10 individuals have been convicted following an agreed-upon set of facts. 16 of these 50 defendants were found guilty of assaulting, resisting, or impeding officers, a felony, including one who has been sentenced to 10 years in prison.
Sentencings:
- Approximately 351 federal defendants have had their cases adjudicated and received sentences for their criminal activity on January 6. Approximately 192 have been sentenced to periods of incarceration. Approximately 87 defendants have been sentenced to a period of home detention, including approximately 14 who also were sentenced to a period of incarceration.
Public Assistance:
- Citizens from around the country have provided invaluable assistance in identifying individuals in connection with the January 6 attack. The FBI continues to seek the public’s help in identifying approximately 350 individuals believed to have committed violent acts on the Capitol grounds, including over 250 who assaulted police officers.
- Additionally, the FBI currently has 14 videos of suspects wanted for violent assaults on federal officers and one video of two suspects wanted for assaults on members of the media on Jan. 6 and is seeking the public’s help to identify them.
- Some of the violent offenders about whom the FBI is seeking public tips to identify and locate Evan Neumann, Jonathan Daniel Pollock, AFOs #91, #292, #371, and #383. AFO #91 uses what appears to be a stick to strike multiple officers numerous times while in the doorway of the Lower West Terrace, commonly referred to as the tunnel. AFOs #292, #371, and #383 are all shown on video charging at and assaulting officers, and they appear to grab and attempt to take possession of the officers’ batons.
- For images and video of the attackers, please visit https://www.fbi.gov/wanted/capitol-violence. Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
- More than 284 defendants have been charged with assaulting, resisting, or impeding officers or employees, including approximately 99 individuals who have been charged with using a deadly or dangerous weapon or causing serious bodily injury to an officer.
Attorney Derek Acree Sentenced to Prison for $1.6 Million COVID-19 Relief FraudRead the Press Release
MIAMI – Derek James Acree, 47, of Palm Beach County, Fla., was sentenced today to 41 months in prison for submitting fraudulent loan applications seeking more than $1.6 million in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. These loans are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act.
Acree obtained approximately $1.6 million by submitting fraudulent EIDL and PPP loan applications for companies he owned either in whole or in part. These companies included National Financial Holdings Inc., NFH Florida LLC, DBA Finova Financial LLC, and National Financial Holding Technology LLC. The loans misrepresented the number of employees, payroll expenses, and gross revenues.
After obtaining the fraudulent loan proceeds, Acree transferred some of it to others and a portion was used as a down payment for the purchase of his home, as well as used to purchase jewelry, travel, and make repairs on his boat/home.
Acree had entered a guilty plea to conspiracy to commit wire fraud in October 2022. In addition to prison, he was ordered to pay $1.26 million in restitution and $1.6 million in asset forfeiture.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; and Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
FBI West Palm Beach investigated the case. Assistant U.S. Attorney Robin W. Waugh prosecuted it and Assistant U.S. Attorney Joshua Pastor handled asset forfeiture.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
On September 15, 2022, the Attorney General selected the Southern District of Florida’s U.S. Attorney’s Office to head one of three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. For more information on the department’s response to the pandemic, please click here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Armed Domestic Abuser and Five-Time Felon Sentenced to over 3 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
INDIANAPOLIS- James Hoskins, 41, of Indianapolis, Indiana, was sentenced to 3 years and ten months in federal prison for illegally possessing a firearm as a previously convicted felon.
According to court documents, on June 20, 2022, Indianapolis Metropolitan Police Department (IMPD) officers responded to a domestic disturbance call involving a married couple with two children present. When officers arrived, Hoskins identified himself as a felon and stated that there was a firearm in the home that belonged to his wife. Hoskins also told IMPD that the dispute began because his wife would not let him leave the home.
Officers subsequently spoke with Hoskins’ wife. During the conversation, the wife informed officers that Hoskins turned violent after she told him she wanted to end their relationship. She stated that Hoskins smashed her glasses, held her against a mirror, strangled her, struck her multiple times, and took his gun out and cocked it in front of her.
In a follow-up interview, Hoskins admitted to officers that the firearm in the home belonged to him but claimed he did not hurt his wife, she fell and hurt herself. Officers interviewed Hoskins’ wife again and she stated that Hoskins threatened to kill her, confirmed that he possessed the firearm, and told officers where to find Hoskins’ gun. Officers found Hoskins’ 9mm pistol and arrested him. After the he was arrested, Hoskins admitted that he “tussled” with his wife in the bathroom and that he placed his forearm against her collarbone. At Hoskins’ sentencing hearing, the judge found that he illegally possessed the handgun in connection with a domestic violence felony against his wife.
Before his arrest, Hoskins had been convicted of five separate felony offenses, each of which prohibits him from ever owning a firearm under federal law.
“When a domestic abuser has a gun, the cycle of abuse can quickly turn deadly,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Our U.S. Attorney’s Office is prioritizing prosecutions of these criminals because of the extreme danger they pose, especially to those closest to them. Working together with IMPD and ATF, the LEATH initiative will continue to use our law enforcement resources to save the lives of those impacted by domestic violence.”
“Our homes should be the place where we feel most safe in the world. Unfortunately, domestic abusers use violence, and all too often firearms, to threaten and harm those closest to them and the first responders coming to render aid,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to investigate and prosecute domestic abusers who possess firearms to ensure our communities are safe from these offenders.”
ATF investigated the case. The sentenced was imposed by U.S. District Judge, Magnus Stinson. Judge Stinson also ordered that Hoskins be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant United States Attorney Jeremy Fugate, who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Arizona man arraigned in the District of New Mexico on mail and wire fraud indictmentRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, and Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office, announced today that John Lopez was arraigned on a 27-count indictment charging him with 16 counts of wire fraud and 11 counts of mail fraud. Lopez, 71, of Flagstaff, Arizona, will remain on conditions of release pending trial, which has not been scheduled.
A federal grand jury indicted Lopez on Dec. 20, 2022. According to the indictment and other court records, Lopez was the founder and president of Personal Money Management Company (PMMCO), which ostensibly provided financial management services to clients, many of whom were retired or near retirement. Beginning in 2014, Lopez held himself out as an investment advisor with considerable expertise who could consistently and substantially beat the market average return on investment.
Lopez allegedly communicated to clients and prospective clients various false promises and misrepresentations related to his investment ability and strategy. As alleged in the indictment, Lopez falsely told clients and prospective clients that he could guarantee annual returns of 10 percent on their principal investment no matter how volatile the stock market might be, and that he could make an annualized 19.2-percent return on a retirement investment, in which clients would keep their initial principal investment as well. Lopez allegedly claimed that he had developed a computer program or algorithm that resulted in consistent and substantial above-average market returns on investments. He allegedly told clients and prospective clients that he would invest their money primarily in stocks and bonds, moving their money between those two investment instruments when market indicators or his computer algorithm told him to move them between the two.
From February 2014 through November 2021, Lopez received approximately $19.4 million from clients. During that same period, rather than invest primarily in stocks and bonds, Lopez allegedly purchased $13.3 million in precious metals, such as gold and silver. Lopez disbursed approximately $6.1 million to clients, which he allegedly represented as investment gains.
After securing client money, Lopez allegedly generated periodic account statements, purportedly showing substantial investment gains. For example, in November 2021, a client received a purported account statement reflecting that an investment of $200,000 with Lopez and PMMCO in 2016 had grown to $3,289,273, a 1,544-percent increase over an approximate five-year period. This growth calculation excluded a $565,000 withdrawal during 2021. In October 2021, those statements represented that PMMCO client account values were collectively worth approximately $39 million.
On Nov. 9 and 10, 2021, government agents seized PMMCO assets, mostly comprising precious metals, which were valued at less than $15 million.
Lopez allegedly continued to generate deceptive PMMCO account statements after the government seized PMMCO’s assets. On May 31, 2022, those statements represented PMMCO client account values worth approximately $49 million.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Lopez faces up to 20 years in prison.
The FBI Albuquerque Field Office and the U.S. Marshals Service investigated this case. The U.S. Attorney’s Office is prosecuting the case.
The U.S. Attorney’s Office brought a separate civil forfeiture action on April 15, 2022, seeking to forfeit assets seized in November 2021. Litigation in the civil proceeding is ongoing.
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Architect of Nationwide College Admissions Scheme Sentenced to More Than Three Years in PrisonRead the Press Release
BOSTON – The orchestrator of a nationwide conspiracy that facilitated cheating on college entrance exams and the admission of students as fake athletic recruits to elite universities – including Georgetown, Stanford, the University of California, Los Angeles (UCLA), the University of Southern California (USC), the University of Texas, Wake Forest and Yale – was sentenced today in federal court in Boston.
William “Rick” Singer, 62, of St. Petersburg, Fla., formerly of Newport Beach, Calif., was sentenced by U.S. District Court Senior Judge Rya W. Zobel to 42 months in prison and three years of supervised release. Singer was also ordered to pay restitution in the amount of $10,668,841 to the Internal Revenue Service and to forfeit specific assets with a value in excess of $5.3 million and approximately $3.4 million in the form of a forfeiture money judgment. In March 2019, Singer pleaded guilty to racketeering conspiracy, money laundering conspiracy, conspiracy to defraud the United States and obstruction of justice.
“Rick Singer was the architect of a sprawling criminal enterprise that corrupted the admissions process at several of the nation’s most elite universities. His decade-long scheme resembled something out of a Hollywood movie. He courted the entitled, rich and famous, who were so desperate for their children to secure college admission, that they lied, cheated and bribed to get them in,” said United States Attorney Rachael S. Rollins. “While this historic case generated headlines around the globe with privilege, celebrity and entitlement at its core, it also exposed the profound failings in the college admissions process. There should not be a separate college admissions process for the rich, powerful and entitled. This case exposed that there is. But it also resulted in meaningful changes in the college admissions process and I am incredibly proud of that.”
“Rick Singer was the mastermind of a massive criminal enterprise that undermined the college admissions process at universities all across the country. Fueled by pure and simple greed, Mr. Singer raked in millions of dollars in his corrupt scheme in which he rigged the system, making it much easier for far less qualified students and their families to buy their way into some of this country’s most elite universities. With every bribe he paid, he sold out hardworking students a little more. There is no question the damage he has done is profound and today’s sentence shows that there are significant consequences for his criminal conduct,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Operation Varsity Blues uncovered a bold and shameless decade-long scheme that undercut hard-working students trying to get into these prestigious universities the right way. Everyone we’ve arrested, charged, and convicted to date were integral to the scheme’s success, but without Rick Singer, they never would have succeeded.”
“Access to a quality education is a key pillar of our society and the American institutions that are educating our future leaders are second to none. But maintaining fairness in the access to these great institutions is also a vital part of this system,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston. “Today’s sentence should send a clear message and serve as a deterrent to those who might contemplate similar fraudulent schemes.”
“Today’s action shows that Mr. Singer abused his position to help scores of parents cheat their way through the college admissions process. In doing so, he damaged the reputation of the schools and hurt legitimate students who sought admission to those schools. That is unacceptable,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office.
Singer owned and operated the Edge College & Career Network LLC (The Key) – a for-profit college counseling and preparation business – and served as the CEO of the Key Worldwide Foundation (KWF) – a non-profit corporation that he established as a purported charity to provide educational and self-enrichment programs for disadvantaged youth.
Between approximately 2011 and February 2019, Singer conspired with dozens of parents, athletic coaches, a university athletics administrator, and others, to use bribery and other forms of fraud to secure the admission of students to colleges and universities including Georgetown, Stanford, UCLA, USC, the University of Texas, Wake Forest and Yale. The conspiracy involved paying off test proctors and administrators to permit cheating on college entrance exams and bribing university athletic coaches and administrators to designate applicants as purported athletic recruits based on fabricated credentials.
Singer facilitated cheating on the SAT and ACT exams for his clients by instructing them to seek extended time for their children on college entrance exams, which often involved having the children purport to have learning disabilities in order to obtain the required medical documentation. Once the extended time was granted, Singer instructed the clients to change the location of the exams to a test center where corrupt test proctors took the exams in place of the students, gave the students the correct answers during the exams, or corrected the students’ answers after they completed the exams, and corrupt test administrators permitted the cheating to occur. In many instances, the students taking the exams were unaware that their parents had arranged for the cheating.
Singer also accepted payments from parents to bribe coaches and university athletics administrators to designate their children as purported athletic recruits, regardless of their athletic experience or abilities. As part of the scheme, Singer directed his associates to create falsified athletic “profiles” for the students, which were then submitted to the university admissions offices in support of the students’ applications. The profiles included fake athletic honors and, in some instances, staged or photoshopped photos purporting to show the students engaged in athletic activity.
To conceal the scheme, Singer used the Key Worldwide Foundation to disguise bribe payments as purported charitable contributions, thereby enabling clients to deduct the bribes from their federal income taxes. In total, Singer accepted more than $25 million from his clients as part of the scheme – of which he paid bribes totaling more than $7 million and transferred, spent, or otherwise used more than $15 million for his own benefit.
In total, 55 defendants [i] were charged for their involvement in Singer’s exam cheating and athletic recruitment conspiracy. Of those, 53 were convicted – either by guilty plea or jury conviction following trial. One defendant received a Presidential Pardon and one defendant entered into a deferred prosecution agreement with the government. To date, the government has collected $8,880,802 in forfeiture from seized bank accounts, real estate and voluntary payments, $5,682,954 in fines and $96,960 in restitution. For more information on defendants charged in the conspiracy, please visit: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme
U.S. Attorney Rollins, FBI SAC Bonavolonta, IRS SAC Simpson and DOE-OIG SAC Harris made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney, Ian J. Stearns and Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit and Assistant U.S. Attorney Carol Head, Chief of Rollins’ Asset Forfeiture Unit, prosecuted the case.
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[i] The Singer-led scheme involved 55 defendants (this number includes Singer). This number does not include two defendants, Amin Khoury and Robert Repella, who conspired separately with former Georgetown tennis coach Gordon Ernst, a defendant in the Singer scheme, but were not themselves involved in the Singer scheme.
Alleged Glock Switch Dealer ChargedRead the Press Release
A Dallas man who allegedly dealt Glock switches via Instagram has been charged with firearm crimes, announced U.S. Attorney for the Northern District of Texas Leigha Simonton.
Jeremiah Dwyen Ashley, 22, was indicted on two counts of possession of an unregistered firearm on December 28.
“Switches transform regular pistols into weapons of war, only suitable for use by soldiers on the battlefield,” said U.S. Attorney Leigha Simonton. “We cannot and will not allow switches to proliferate on the streets of north Texas.”
“Nothing keeps me up at night more than the thought of a machinegun in the wrong hands. If not promptly investigated and arrested, Mr. Ashley would have continued to put these tools of violence on our streets. Citizens of North Texas need to know that ATF and all our law enforcement partners are doing everything we can to prevent machinegun conversion devices from being used and sold unlawfully. These are not toys or souvenirs; these are terrifying,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
According to court documents, after spotting an advertisement for Glock switches – devices that convert ordinary semiautomatic pistols into fully automatic machineguns – on Instagram, law enforcement reached out to the owner of the account to arrange an undercover purchase.
On May 24, an undercover officer met an unidentified male, later identified as Mr. Ashley, at a gas station in Garland and purchased three Glock switches for $1,200. When the officer asked how the devices worked, Mr. Ashley allegedly showed him how to install a switch on a pistol.
After confirming Mr. Ashley’s identity, the officer reached out to the Instagram account to arrange a second undercover purchase. In response, the officer received a screenshot of UPS tracking information. UPS security personnel told law enforcement that the package, which was addressed to another individual, was a part of a three-parcel shipment that originated from a company in Taiwan.
Law enforcement seized all three packages from a UPS distribution center on June 10. Inside the packages, they found 30 Glock switches, all surrounded by metal screws, likely included to obscure the packages’ contents. An undercover agent, posing as a package delivery person, delivered the packages to Mr. Ashley on June 14. After giving him a few moments to open the packages, law enforcement executed a search warrant on his apartment.
During the search, Mr. Ashley allegedly admitted that he knew the packages contained Glock switches and confirmed that he understood the purpose of a switch. He claimed that someone else ordered the packages but said they were intended for him. He allegedly admitted that he was known around the neighborhood for selling switches on Instagram.
Glock switches are classified as machineguns under federal law. Unlike semiautomatic firearms, machineguns – weapons that can fire more than one round, without manual reloading, by single function of the trigger – are generally unlawful for non-licensed civilians under the National Firearms Act.
An indictment is merely an allegation of wrongdoing, not evidence. Like all defendants, Mr. Ashley is presumed innocent until proven guilty in a court of law.
If convicted, he faces up to 20 years in federal prison, 10 years per count.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Office and the Garland Police Department conducted the investigation with the assistance of the Texas Department of Public Safety. Assistant U.S. Attorney Blake Ellison is prosecuting the case.
3 January 2023
Wallingford Man Pleads Guilty to Child Exploitation and Drug Trafficking OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CHRISTOPHER LISCIO, 40, of Wallingford, pleaded guilty today in Bridgeport federal court to child sexual exploitation and drug trafficking offenses.
According to court documents and statements made in court, between January 2016 and February 2020, Liscio used Snapchat to entice two minor girls to take sexually explicit photographs and videos of themselves and send them to him via the social media application. The communication with one of the minor victims started when she was approximately 13 years old and continued until she was approximately 16 years old, and the communication with the second minor victim occurred when she was 15 and 16 years old. Liscio also engaged in sexual acts with the second minor victim on multiple occasions when she was 15 and 16 years old.
In February 2020. Liscio was arrested on state charges related to the sexual assault of a minor. Between February and April 2020, while he was released on bond in his state case, Liscio sold 2,000 30mg oxycodone pills.
Liscio has been detained since his federal arrest on May 26, 2021. On that date, a search of his Wallingford residence revealed approximately 500 grams of cocaine, items used to process and package narcotics, and $22,440 in cash.
Liscio pleaded guilty to one count of enticement of a minor to engage in illegal sexual activity, one count of conspiracy to distribute and to possess with intent to distribute oxycodone, and one count of possession with intent to distribute 500 grams or more of cocaine. At sentencing, Liscio faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life. A sentencing date is not scheduled.
This matter has been investigated by Homeland Security Investigations (HSI) and the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, with the assistance of the Wallingford Police Department, Middletown Police Department and Fremont (N.H.) Police Department. The Tactical Diversion Squad includes officers from the Bristol, East Windsor, Hamden, New Britain, West Haven, Newington, Manchester, Glastonbury and Watertown Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Amanda S. Oakes.
U.S. Attorney Avery thanked the State’s Attorney’s Offices for the Judicial Districts of New Haven and Middlesex for their close cooperation in investigating and prosecuting this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
U.S. Attorney’s Office Warns Residents About Scam Calls Demanding MoneyRead the Press Release
CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio is cautioning northern Ohio residents about a telephone spoofing campaign where the caller is portraying themselves as an attorney, representative, or law enforcement officer, and the phone number is showing as the Department of Justice or the U.S. Attorney’s Office.
During these calls, scammers may attempt to collect money from victims or threaten arrest or legal action. These calls are bogus and an attempt to use a legitimate law enforcement number to obtain money from victims.
Scammers use many tactics to sound and appear credible. They sometimes provide information like actual names of federal prosecutors and federal office addresses. They also spoof their phone numbers to appear on caller IDs as if they are calling from a government agency such as the U.S. Attorney’s Office.
The U.S. Attorney’s Office reminds the public to be vigilant and never share personal identifying information with a caller that you have not initiated contact with or have not verified as a legitimate business or organization.
The U.S. Attorney’s Office will never ask you to purchase a gift card or give out a credit card number to avoid arrest.
To report a call or message from someone portraying to be a representative of the U.S. Attorney’s Office or Department of Justice, please contact the Federal Trade Commission (FTC) at reportfraud.ftc.gov
U.S. Attorney’s Office Collects Nearly $3.8 Million in Civil and Criminal ActionsRead the Press Release
(PROVIDENCE) - U.S. Attorney Zachary A. Cunha announced today that the District of Rhode Island collected $3,769,390.83 in criminal and civil actions in Fiscal Year 2021, an approximately thirty-six percent increase over fiscal year 2020. Of this amount, $2,715,990.83 was collected in criminal cases and $1,053,400 was collected in civil actions.
Additionally, the District of Rhode Island worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect a further $6,998,789 in cases pursued jointly with these offices. Of this amount, $4,957.79 was collected in criminal cases and $6,993,831.56 was collected in civil actions.
These figures primarily represent criminal restitution collections, criminal fines, and civil judgments. The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Finally, the U.S. Attorney’s office in Rhode Island, working with partner agencies and divisions, collected $1,668,469 via asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Two charged with attacks on four Pierce County power substationsRead the Press Release
Tacoma – Two Puyallup, Washington, men will appear in U.S. District Court in Tacoma today charged with conspiracy to damage energy facilities and possession of an unregistered firearm, announced U.S. Attorney Nick Brown. Matthew Greenwood, 32, and Jeremy Crahan, 40, were arrested Saturday, December 31, 2022, following a fast-moving investigation by the FBI. Prosecutors will ask that both men remain detained at the Federal Detention Center at SeaTac pending future hearings.
“I commend the work by the FBI to quickly identify these suspects and disrupt any future attacks on the east Pierce County power grid,” said U.S. Attorney Nick Brown. “We have seen attacks such as these increase in Western Washington and throughout the country and must treat each incident seriously. The outages on Christmas left thousands in the dark and cold and put some who need power for medical devices at extreme risk.”
“I am so thankful for how quickly and diligently our investigators and partners worked to bring this to a resolution,” said Richard A. Collodi, Special Agent in Charge of the FBI's Seattle field office. “This case took many of them away from their families during the holidays but through their efforts, we have two men in custody we believe to be responsible for all four power station attacks. This demonstrates the commitment by all levels of law enforcement to protect our infrastructure and hold those accountable who put our community in danger.”
According to the criminal complaint filed with the court late Saturday, December 31, 2022, and unsealed today, the two men were identified as possible suspects through the analysis of cell phone records. At one of the substations, Tacoma Power captured images of one suspect and the image of a pick-up truck that appeared to be connected with the attack. A similar pick-up truck was connected to the defendants. When law enforcement served a search warrant on the home of the suspects, they recovered distinctive clothing pictured in the surveillance photos. Agents also seized two short-barreled firearms that had not been registered as required by law. One of the firearms was equipped with a make-shift silencer.
The four substations that were targeted were the Graham and Elk Plain substations operated by Tacoma Power and the Kapowsin and Hemlock substations operated by Puget Sound Energy. The damage to the Tacoma Power substations alone is estimated to be at least $3 million.
Conspiracy to attack energy facilities is punishable by up to 20 years in prison. Possession of an unregistered firearm is punishable by up to ten years in prison.
The charges contained in the criminal complaint 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 with assistance from the Pierce County Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Tacoma Police Department, the Washington State Department of Corrections and the Federal Protective Service.
Assistant United States Attorneys Will Dreher, Stephen Hobbs, and Todd Greenberg all worked around the clock over the last week to obtain search warrants and arrest warrants to assist the FBI investigation.
Two Northern Kentucky Men Sentenced for Armed Drug TraffickingRead the Press Release
COVINGTON, Ky.— A Covington man, Anthony Michaelis, 34, and an Alexandria, Ky., man, Blake Barnes, 23, were sentenced to 258 months and 60 months in federal prison, respectively, on Tuesday, by U.S. District Judge David Bunning, for possession of controlled substances, including fentanyl, methamphetamine, and cocaine, with intent to distribute them, and brandishing a firearm in furtherance of their drug trafficking.
According to Michaelis’ plea agreement, on January 16, 2022, individuals at a Circle K store in Dayton, Ky., approached police and told officers that two men, later identified as Michaelis and Barnes, had approached them at a gas pump and offered to sell them controlled substances. During this encounter, Michaelis pulled out a handgun and pointed it at the group. Law enforcement subsequently located Michaelis and Barnes and recovered the handgun. Barnes was wearing a backpack that contained over 12 grams of fentanyl and over 3 grams of actual methamphetamine. Officers located a bag of white powder containing over 23 grams of cocaine in the Michaelis’s pants pocket. In 2021, Michaelis had previously been found with over 70 grams of cocaine and 346 grams of marijuana that he intended to distribute, as well as $5,320.00 in currency.
Michaelis pleaded guilty to the charge in August 2022. Barnes pleaded guilty in September 2022. Michaelis has previous felony convictions for robbery, assaulting a police officer, and assaulting a prison inmate.
Under federal law, both must serve 85 percent of their prison sentences. Upon their release from prison, Michaelis will be under the supervision of the U.S. Probation Office for six years, and Barnes will be under supervision for five years.
Carlton S. Shier IV, United States Attorney for the Eastern District of Kentucky; Shawn Morrow, Special Agent in Charge, ATF, Louisville Field Division; Chief David Halfhill, Dayton Police Department; and Chief Brian Valeni, Covington Police Department, jointly announced the sentence.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Dayton Police Department; and the Covington Police Department. The United States was represented by Assistant U.S. Attorney Tony Bracke.
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Sunset Mesa Funeral Home Operators Sentenced to Federal Prison for Illegal Body Part SchemeRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announced today that the operators of Sunset Mesa Funeral Home in Montrose, Colorado, were sentenced to federal prison for illegally selling body parts or entire bodies without the consent of the family of the deceased.
Megan Hess, age 46, was sentenced to 20 years in prison after earlier pleading guilty to one count of mail fraud and aiding and abetting. According to the plea agreement, from 2010 through 2018, the defendant and others stole the bodies or body parts of hundreds of victims, and then sold those remains to victims purchasing the remains for body broker services. Under the auspices of Sunset Mesa Funeral Directors, the defendant would frequently meet with victims seeking cremation services for themselves or their loved ones who had died. During those meetings, the defendant and others would represent to the victims that Sunset Mesa Funeral Directors would cremate decedents and provide their cremated remains back to the families. Instead, the defendant and others would harvest body parts from, or prepare the entire bodies of, the decedents for sale in body broker services.
Shirley Koch, age 69, was sentenced to 15 years in prison after earlier pleading guilty to one count of mail fraud and aiding and abetting. According to the plea agreement, from 2010 through 2018, Koch was involved in meeting with families seeking cremation services for their loved ones who had died. In many instances, Koch and Hess neither discussed nor obtained authorization for donation of decedents’ bodies or body parts for body broker services. In other instances, the topic of donation was raised by Hess or Koch, and specifically rejected by the families. In such circumstances, despite lacking any authorization, Koch and Hess recovered body parts from, or otherwise prepared entire bodies of hundreds of decedents for body broker services. In the few instances where families agreed to donation, Hess and Koch sold the remains of those decedents beyond what was authorized by the family, which was often limited to small tissue samples, tumors, or portions of skin. Hess and Koch also delivered cremains to families with the representation that the cremains were that of the deceased when, frequently, that was not the case.
According to the plea agreements, Hess and Koch would also ship bodies and body parts that tested positive for, or belonging to people who had died from, infectious diseases, including Hepatitis B and C, and HIV, after certifying to buyers that the remains were disease free. These shipments would be through the mail or on commercial air flights in violation of Department of Transportation regulations regarding the transportation of hazardous materials.
Judge Christine M. Arguello sentenced Hess and Koch on January 3, 2023.
“The defendants’ conduct was horrific and morbid and driven by greed. They took advantage of numerous victims who were at their lowest point given the recent loss of a loved one. We hope these prison sentences will bring the victim’s family members some amount of peace as they move forward in the grieving process,” said U.S. Attorney Cole Finegan. “We sincerely hope this punishment deters like-minded fraudsters in the future.”
“These two women preyed on vulnerable victims who turned to them in a time of grief and sadness. But instead of offering guidance, these greedy women betrayed the trust of hundreds of victims and mutilated their loved ones,” said FBI Denver Acting Special Agent in Charge Leonard Carollo. “Without knowledge or consent, the women disrespected the wishes of the grieving victims and degraded the bodies of their family members to sell them for profit. These two criminals continued in their atrocities for years, showing no remorse or contrition even after they were exposed. Nothing can guarantee solace for the victims or repair the damage done, but perhaps this sentence can mark the end of a horrible chapter in their lives.”
“Together with our law enforcement and prosecutorial partners, we are committed to pursuing those who put the safety of the public at grave risk for personal gain,” said Cissy Tubbs, Special Agent-in-Charge, Western Region, U.S. Department of Transportation Office of Inspector General. “We hope today’s sentencing provides a sense of justice served for the families and loved ones of the victims of this callous scheme.”
This case was complex and involved a detailed forensic review of evidence. The investigation was led by the FBI Denver Division and the Department of Transportation Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorney Tim Neff, Assistant United States Attorney Rebecca Weber, Assistant United States Attorney Laura Hurd, with invaluable assistance from former Assistant United States Attorney Jeremy Chaffin and Victim Witness Coordinator Donna Summers.
CASE NUMBER: 20-cr-00098
Statement from United States Attorney Zachary A. Cunha on the Passing of Former United States Attorney Lincoln C. AlmondRead the Press Release
PROVIDENCE – The men and women of the United States Attorney’s Office for the District of Rhode Island mourn the passing of Lincoln Carter Almond, who led this Office with distinction for twenty-one years, over two terms.
“As United States Attorney, Lincoln C. Almond led by example: whether trying cases, or fearlessly pursuing investigations into organized crime and corruption, he set a standard for this Office that continues to resonate to this day,” remarked U.S. Attorney Zachary A. Cunha. “More than any other figure in recent memory, Lincoln Almond’s tenure set the bar for what it means to excel as a servant of justice. This Office mourns the passing of a legendary figure, and extends our heartfelt condolences to his family.”
First nominated as U.S. Attorney by President Richard M. Nixon, Almond was confirmed by the United States Senate on June 19, 1969, and served until 1978; he took up the post for the second time in November of 1981, following his nomination by President Ronald Reagan, and served with distinction until 1993. During his more than two decades as United States Attorney, believed to be the longest tenure in the State’s history, Mr. Almond was an exemplar of professionalism, the scourge of organized crime, and a prosecutor’s prosecutor. He served on the first committee of United States Attorneys formed to advise the Attorney General of the United States; led investigations and prosecutions of leading figures of the New England La Cosa Nostra and was a staunch and unremitting foe of corruption at every level of government.
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Registered Sex Offender Sentenced to 45 Years in Federal Prison for the Sexual Exploitation of Two Minor Girls to Produce Child PornographyRead the Press Release
Baltimore, Maryland - Chief U.S. District Judge James K. Bredar today sentenced Dennis James Harrison, age 40, of Rocky Ridge, Maryland, to 45 years in federal prison, followed by lifetime supervised release, for the sexual exploitation of children to produce child pornography, related to the sexual exploitation of two minors who were between the ages of 10 and 12 at the time of the abuse. Chief Judge Bredar also ordered that, upon his release from prison, defendant Harrison must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
Harrison also had a conviction from August 12, 2009, in the Court of Common Pleas of Adams County, Pennsylvania, for possession of child pornography and was a registered sex offender at the time of his arrest in this federal case.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith III.
According to his guilty plea, between 2018 and 2021, Harrison sexually exploited two minor girls beginning when the one victim was twelve years old and when the other victim was 10 to 11 years old, to produce child pornography. Specifically, from at least September 2020 through August 2021, Harrison engaged in sexual activity with Jane Doe 1, a 12-year-old girl who resided in Pennsylvania. Harrison picked-up Jane Doe 1 from her residence and drove her to various locations in Maryland, including Harrison’s residence, where he engaged in illegal sexual activity with Jane Doe 1. The defendant produced images and videos of his sexual abuse of Jane Doe 1 and enticed Jane Doe 1 to send him sexually explicit photographs of herself.
As detailed in his plea agreement, Harrison also used a hidden camera and a mobile phone in 2018 to produce a series of images depicting Jane Doe 2, a 10-to-11-year-old girl, nude and partially nude in a bedroom and bathroom in Pennsylvania and in a bathroom in Maryland. The images were taken without the knowledge of Jane Doe 2.
On August 12, 2021, investigators executed a search warrant at Harrison’s residence and recovered a cellphone used by Harrison to film his sexual abuse of Jane Doe 1, as well as several digital devices. A forensic examination of all the devices located files depicting the sexual abuse of children on each one, including depictions of infants and toddlers. In total, over 14,000 files of child pornography were found on Harrison’s devices.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended HSI, the Frederick County Sheriff’s Office, and the Frederick County State’s Attorney’s Office their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow and Special Assistant U.S. Attorney Joyce King, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Podiatrist pays $90,000 to settle false billing allegationsRead the Press Release
HOUSTON – A 39-year-old Cypress man has agreed to pay to resolve allegations he submitted false claims for the placement of electro-acupuncture devices, announced U.S. Attorney Alamdar S. Hamdani.
Dr. Amr El-Khashab is a podiatrist who practices in Cypress and whom podiatrist Dr. Judith Rubin previously employed. From March 1, 2018, to Nov. 30, 2019, El-Khashab and Rubin billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room. Medicare pays thousands of dollars per procedure.
However, neither Rubin nor El-Khashab performed these surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive.
Rubin previously entered into an $865,000 settlement to address these allegations.
To date, this is the ninth case the Southern District of Texas has resolved for similar conduct. The other matters included settlements with a Katy anesthesiologist, Houston pain doctor, Rockport chiropractor, Houston chiropractor, Laredo pain doctor, The Woodlands pain doctor and Cypress marketing representative.
The U.S. Attorney’s Office conducted the investigation with the Department of Health and Human Services – Office of Inspector General and Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
New York Man Sentenced to Seven Years in Prison for Transporting Child Pornography into New JerseyRead the Press Release
TRENTON, N.J. – A New York man was sentenced today to 84 months in prison for transporting multiple items of child sexual abuse into New Jersey, U.S. Attorney Philip R. Sellinger announced.
Jesus Modesto Sanchez, 31, of New York, previously pleaded guilty before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of transporting of child pornography. Judge Quraishi imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
In October 2020, Modesto Sanchez began communicating with an undercover officer who he believed was a minor on a web-based application. On Oct. 17, 2020, Modesto Sanchez was arrested after traveling from New York to New Jersey to meet the undercover officer. Law enforcement officers subsequently discovered a significant collection of child pornography on Modesto Sanchez’s cellular telephone, including 72 videos and one image depicting the sexual abuse of minors.
In addition to the prison sentence, Judge Quraishi sentenced Modesto Sanchez to five years of supervised release.
U.S. Attorney Sellinger credited special agents with the FBI, under the direction of Special Agent in Charge James Dennehy in Newark, and members of the Somerset County Prosecutor’s Office, under the direction of Prosecutor John P. McDonald, with the investigation leading to today’s sentence.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
New Haven Man Sentenced to More Than 8 Years for Possessing Stolen Gun, Violating Supervised ReleaseRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAVON MOORNING, 43, of New Haven, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 105 months of imprisonment, followed by three years of supervised release, for possessing a stolen firearm, and for violating the conditions of his supervised release from a prior federal conviction.
According to court documents and statements made in court, in July 2011, Moorning was sentenced in New Haven federal court to 100 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine. In December 2014, Moorning’s sentence was reduced to 84 months of imprisonment.
Moorning was released from federal prison in June 2018. Shortly after his release, and while on supervised release, he sold heroin and crack cocaine to an individual working with law enforcement. When Moorning was arrested on July 24, 2018, he possessed additional amounts of heroin and crack cocaine. Moorning pleaded guilty to possession with intent to distribute and distribution of heroin and cocaine base (“crack”), and he admitted that he had violated his supervised release. On January 9, 2019, he was sentenced to 24 months of imprisonment and three years of supervised release.
Moorning was released from prison in April 2020. On May 17, 2022, he was a passenger in a car that crashed into a tree behind a residence on Whitney Avenue in Hamden after he and an associate attempted to flee from state probation and Hamden Police officers who were serving probation violation warrants. Moorning ran from the vehicle, removed a 9mm handgun from his waistband and tossed it to the ground. State probation officers apprehended Moorning and found him in possession of approximately 20 individual-dose bags of suspected heroin, and quantities of crack cocaine and MDMA pills. A Hamden Police officer recovered the firearm that Moorning had discarded. The handgun, which was loaded, and had been reported stolen in South Carolina in 2020.
Moorning has been detained since June 3, 2022. He pleaded guilty on September 14, 2022.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hamden Police Department, the Connecticut Office of Adult Probation, and the New Haven State’s Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
Middle District of Florida U.S. Attorney’s Office Collects More Than $168 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
Tampa, FL ― U.S. Attorney Roger B. Handberg announced today that the Middle District of Florida (MDFL) collected $168,330,189 related to criminal and civil matters in the fiscal year ending September 30, 2022 (FY 2022). Of that amount, $103,089,821 represents total collections in criminal and civil actions. Included in this amount is $43,048,067 recovered in its locally handled cases; $17,769,638 in criminal cases and $25,278,429.11 in civil cases.
The MDFL’s Civil Division, led by Civil Chief Randy Harwell, recovered a total of $85,181,948 on behalf of federal agencies and programs in affirmative civil enforcement cases during the last fiscal year. This amount has two components. In addition to its efforts in local civil cases noted above, the district’s Civil Division also joins forces with other U.S. Attorney’s Offices and with the Department of Justice Civil Frauds Section to address fraud schemes and illegal practices extending beyond district boundaries. The MDFL’s Civil Division recovered an additional $59,903,519.32 in these jointly handled cases.
Additionally, the district’s Asset Recovery Division, led by Chief Anita Cream, working with partner agencies, forfeited $65,240,368 from criminal and civil asset forfeiture actions completed in fiscal year 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. For instance, in FY 2022, more than $14 million forfeited in the MDFL in this and prior years was returned to victims of the criminal offenses upon which the forfeitures were based, and approximately $3 million was shared with federal, state, and local law enforcement agencies. The district anticipates that the vast majority of the more than $65 million forfeited in FY 2022 will be returned to crime victims.
“Every day, we work alongside our law enforcement partners, federal, state, and local agencies to enforce our nation’s laws and recover illicit money from convicted criminals who have exploited government programs through fraud and abuse,” said U.S. Attorney Roger B. Handberg. “We will continue to coordinate our efforts to protect taxpayer resources, help victims recover from their losses, and restore public trust.”
U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights, or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Defense Health Agency, the Internal Revenue Service, the Small Business Administration, and the Department of Education. See below for MDFL significant civil case highlights.
Significant Affirmative Civil Enforcement Cases
United States ex rel. Haight v. Physician Partners of America, et al., Case No. 8:18-civ-267 (M.D. Fla.)
Four overlapping qui tam complaints were filed against a Tampa pain management practice and alleged that the practice paid physicians based on the volume or value of the physicians’ orders for urine drug testing in violation of the Stark Law and Anti-kickback Statute. The relators also alleged that practice group performed medically unnecessary urine drug testing because the orders were not based on the individual needs of each patient. In investigating these claims over the ensuing three years, we discovered that the practice group additionally had billed Medicare for fraudulent anesthesia claims at its surgery centers and had applied for a Paycheck Protection Program loan that it was not eligible to receive. Following extensive negotiations, we resolved all allegations in the qui tam complaints for $24.5 million. This settlement amount included a civil penalty in excess of $1 million imposed under FIRREA to address the PPP loan fraud allegations.
Press release: https://www.justice.gov/opa/pr/physician-partners-america-pay-245-million-settle-allegations-unnecessary-testing-improper
United States ex rel. Bomar v. Bayfront Medical Center, et al., Case no. 8:16-cv-3310-MSS-JSS (M.D. Fla.)
This qui tam case alleges that four area hospitals have defrauded Medicare through a complex scheme through bogus “paper” charitable contributions by the hospitals to local government organizations. These contributions are passed through the Florida Medicaid program which used them to seek matching funds from Medicare. The Medicare money was eventually paid to the hospitals and would have never been paid out, had the federal program realized the true nature of the contributions. In investigating this alleged scheme, we have discovered that many area hospitals could be engaged in the same conduct. We have settled our claims with two hospitals, finalizing a $5.5 million settlement with Naples Community Hospital in February 2022 and a $20 million settlement with the BayCare Hospital system in April 2022.
Press releases: https://www.justice.gov/opa/pr/florida-s-nch-healthcare-system-agrees-pay-55-million-settle-common-law-allegations
https://www.justice.gov/opa/pr/florida-s-baycare-health-system-and-hospital-affiliates-agree-pay-20-million-settle-false
United States ex rel. Cancel v. Central Medical Systems, LLC, Case No. 6:14-civ-512-Orl-28TBS (M.D. Fla.)
We intervened in this qui tam case in 2018 in order to pursue civil fraud claims against this central Florida supplier of durable medical equipment (DME) and its principals for, among other things, billing federal health programs for DME that was not provided. Early in the case, we secured a freeze of the defendants’ assets under the Federal Debt Collection Procedures Act in light of a concern over the defendants’ circumvention of an administrative claims review process. The individual owner of the provider then filed a bankruptcy petition, which prompted litigation under a variety of provisions of the Bankruptcy Code. Eventually, the principal owner of the defendant provider, Trent Harley, was indicted and pled guilty to health care fraud offenses that overlap with the civil claims alleged in the qui tam complaint. The civil claims in the qui tam complaint were ultimately settled in January 2022 for $600,000. In 2021, Mr. Harley was sentenced to serve fifteen months in federal prison for wire fraud offenses connected to the scheme.
Press release: https://www.justice.gov/usao-mdfl/pr/central-medical-systems-llc-alan-trent-harley-and-joan-harley-agree-pay-600k-settle
Little Rock Man Sentenced to 30 Years in Prison for Distributing Fentanyl That Resulted in DeathRead the Press Release
LITTLE ROCK—A Little Rock man who distributed the fentanyl that resulted in a person’s overdose death has been sentenced to 30 years in prison. Jemel Foster, 32, was sentenced today by United States District Judge Billy Roy Wilson, who considered Foster’s convictions of four federal drug and firearm crimes, including distribution of fentanyl that resulted in death.
Foster was also convicted in his July 2022 trial of possessing fentanyl with intent to distribute it, being a felon in possession of a firearm, and possessing a firearm in furtherance of a drug-trafficking crime. Judge Wilson sentenced Foster to 300 months for distribution of fentanyl resulting in death, the maximum sentenced allowed by law of 240 months and 120 months, respectively, for possession of fentanyl with intent to deliver and being a felon in possession of a firearm, and 60 months for possession of a firearm in furtherance of a drug-trafficking crime. The 60-month sentence is to run consecutively to the 300- month sentence, for a total of 360 months in prison. There is no parole in the federal system.
“Today’s lengthy sentence emphasizes the reality that drug crime is violent crime,” stated United States Attorney Jonathan D. Ross. “A young woman has needlessly lost her life because of the violence that accompanies drug crime. Illegal fentanyl distribution is a scourge in our community that needs to be stopped, and this sentence should make clear that there are severe consequences for anyone who chooses to illegally sell fentanyl. We are thankful this defendant will no longer be able to peddle this deadly substance in our community.”
On July 6, 2021, a grand jury charged Foster in a superseding indictment with the four counts he took to trial, all of which related to two January evenings in 2021.
The evidence at trial revealed that on the evening of January 11, 2021, a woman purchased fentanyl from Foster around 7:22 p.m. in the parking lot of a Little Rock Walgreens store. According to testimony from the medical examiner who conducted her autopsy, the woman died from a fatal dose of fentanyl around midnight that evening at her mother’s nearby home. After discovering her body the next morning, the woman’s family contacted the Little Rock Police Department, and eventually the Drug Enforcement Administration (DEA). At trial, the DEA agents involved in the case explained how they were able to identify Foster as the source of the fatal fentanyl from data in the victim’s phone.
The DEA, believing Foster would not be aware the woman had died, used the victim’s phone to contact Foster on January 12, 2021, and ask if he had any more fentanyl for sale. Foster agreed to meet at the same Walgreen’s parking lot the person he believed would be the woman who purchased fentanyl from him the night before. When Foster arrived at the parking lot, the DEA arrested him and located eight bags of fentanyl in his pants, totaling approximately four grams, and a firearm in his vehicle. The bags of fentanyl found on Foster’s person matched exactly two bags of fentanyl that were found on the victim’s body during her autopsy.
At trial, the medical examiner testified that there is no safe dosage of illicit fentanyl, and tiny amounts of the substance can kill a person nearly immediately. The medical examiner and state toxicologist testified that it was their opinion that fentanyl caused the victim’s death.
“Fentanyl is the deadliest drug threat we are facing today, killing Americans at record rates,” said DEA Assistant Special Agent in Charge Jarad Harper. “Last year alone, nearly 108,000 lives were lost to a drug poisoning, with fentanyl driving this record increase. Drug traffickers are mixing fentanyl in other illicit drugs in an effort to drive addiction and create repeat buyers. This investigation highlights the efforts of DEA, our law enforcement partners, and the United States Attorney’s Office who work tirelessly every day to bring dangerous drug dealers to justice.”
In addition to his sentence of imprisonment, Foster was sentenced to three years of supervised release on each count to run concurrently. The investigation was conducted by DEA, with assistance from the Little Rock Police Department and Arkansas State Police. The case was prosecuted by Assistant United States Attorneys Chris Givens and Benecia Moore.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
KC Man Involved in Shoot-out Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who was involved in a shoot-out at a local gas station was sentenced in federal court today for illegally possessing a firearm.
Tirrell M. Thompson, 31, was sentenced by U.S. District Judge Greg Kays to nine years in federal prison without parole.
On May 23, 2022, Thompson pleaded guilty to being a felon in possession of a firearm. Thompson admitted that he was involved in a shoot-out at a gas station near 45th and The Paseo on May 6, 2020. A federal marshal witnessed the shooting, in which Thompson pulled a Taurus .45-caliber semi-automatic handgun from his waistband, ducked behind his car, and shot back at another individual who was shooting at him. The marshal also saw Thompson flee from the gas station in a silver vehicle.
A police helicopter identified the fleeing car, which slowed down as Thompson tossed the handgun out of the car near 58th Terrace and Swope Parkway. Police officers arrested Thompson and found the handgun, which had blood on it, in the area where Thompson had tossed it.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Thompson has two prior felony convictions for resisting arrest and a prior felony conviction for unlawful use of a weapon.
This case was prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jefferson City Man Sentenced for Meth Trafficking, Illegal FirearmRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., man was sentenced in federal court today for illegally possessing a firearm and methamphetamine to distribute.
Clint Alexander Doll, 35, was sentenced by U.S. District Judge Roseann Ketchmark to 10 years in federal prison without parole.
On July 28, 2022, Doll pleaded guilty to one count of conspiracy to distribute methamphetamine and one count of possessing a firearm in furtherance of a drug-trafficking crime.
Jefferson City police officers executed a search warrant at Doll’s residence on June 3, 2021. Doll was found in a bedroom on the lower level of his residence, where he packaged methamphetamine for distribution. In that room, officers seized a bag that contained 534.34 grams of methamphetamine, approximately $39,536 in cash that was stashed inside a camera-style bag, a Remington 12-gauge shotgun, 25 shotgun shells, four cell phones, and drug paraphernalia.
Text messages retrieved from the cell phones showed that Doll coordinated the distribution of methamphetamine among several individuals. Under the terms of his plea agreement, Doll must forfeit to the government the $39,536 seized by law enforcement officers, which he admitted was proceeds from the distribution of methamphetamine.
This case was prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger. It was investigated by the Jefferson City, Mo., Police Department, the Cole County, Mo., Sheriff’s Department, and the Drug Enforcement Administration.
Jackson Man Pleads Guilty to Brandishing a Firearm in Relation to a RobberyRead the Press Release
Jackson, Miss. – A Jackson man pleaded guilty to brandishing a firearm in relation to a crime of violence, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Tyrese Antwon Linson, 23, brandished a pistol during a nighttime robbery of a motel in the Jackson metro area. Linson became angry with the motel clerks when his reservation did not appear in their computer. As a result, Linson pulled a pistol and demanded money from the clerks. Linson was taken into custody shortly after the robbery. Robbery is a crime of violence, and it is contrary to federal law to brandish a firearm in relation to a crime of violence.
Linson pleaded guilty on December 20, 2022 to a violation of Title 18, United States Code, Sections 924(c)(1)(A) which criminalizes the use or carrying of firearms in relation to crimes of violence or drug trafficking crimes.
Linson is scheduled to be sentenced on March 28, 2023, and faces a minimum penalty of 7 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Jackson Police Department and the FBI are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Illegal Alien Sentenced to Prison for Unlawful Possession of a FirearmRead the Press Release
A Guatemalan man who illegally possessed a firearm was sentenced today to ten months in federal prison.
Pablo Perez-Chavez, age 22, a citizen of Guatemala illegally present in the United States and residing in Cedar Rapids, Iowa, received the prison term after a July 25, 2022, guilty plea to one count of Possession of a Firearm by an Illegal Alien.
In a plea agreement, Perez-Chavez admitted that he unlawfully possessed a firearm in April 2022 while being illegally present in the United States. On April 30, 2022, Perez-Chavez was arrested by Cedar Rapids police officers after the officers were called to Perez-Chavez’s location by a 911 call. During the course of the investigation, officers found two .380 caliber bullets in Perez-Chavez’s pocket and a Walther PK380, .380 Auto caliber pistol on the ground where they first spotted Perez-Chavez that morning. Perez-Chavez admitted that he knowingly possessed the firearm.
Perez-Chavez was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Perez-Chavez was sentenced to ten months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Perez-Chavez is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Cedar Rapids Police Department and the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-46.
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Honduran Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Four TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to four months in federal prison.
Elder Moises Ramirez-Melgar, age 30, a citizen of Honduras illegally present in the United States and residing in Postville, Iowa, received the prison term after a November 1, 2022, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Ramirez-Melgar admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Ramirez-Melgar was previously deported in September 2014 and March 2016. In February 2017, Ramirez-Melgar was convicted in Arizona of illegal entry into the United States and again deported in March 2017. In March 2020, Ramirez-Melgar was again convicted in Arizona of illegal entry into the United States and again deported in May 2020. On October 3, 2022, immigration officials learned Ramirez-Melgar had illegally returned to the United States and found Ramirez-Melgar at the Allamakee County Jail following his arrest on state charges.
Ramirez-Melgar was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Ramirez-Melgar was sentenced to four months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Ramirez-Melgar is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1038.
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Hagerstown man admits to role in international drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hagerstown, Maryland man has admitted to his role in an expansive drug trafficking conspiracy that spanned several states.
According to court documents, Daniel Inoa-Rodriguez, also known as “Danny,” 23, was heard on wiretap phone calls, talking with other known defendants about drug deliveries. One of the conversations revolved around $30,000 in drug proceeds and what to do with the cash just before Inoa-Rodriguez planned to travel to the Dominican Republic to deliver the money. Because of the intercepted communications, agents were able to seize the cash before he successfully boarded the plane at JFK Airport in March 2021. Court documents also reveal that Inoa-Rodriguez was in the back area of Top 3 Sources, a business in Hagerstown and a target in this investigation, during multiple drug transactions. The crimes occurred from August 2020 to June 2021 in Berkeley County and elsewhere.
Inoa-Rodriguez pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Fentanyl, Cocaine Base, and Cocaine Hydrochloride.” Inoa-Rodriguez faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The FBI; U.S. Marshals Service, Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; The Drug Enforcement Administration; the West Virginia Air National Guard, the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative (agencies included are the West Virginia State Police, Berkeley County Sheriff’s Department, Jefferson County Sherriff’s Department, Ranson Police Department, Charles Town Police Department, and Martinsburg City Police Department); West Virginia State Police; Customs and Border Protection; the Hagerstown Police Department; the National Resources Police Department; FBI-New York Safe Streets Task Force; the New York Police Department; the New Jersey State Police; the Washington County (Maryland) Drug Task Force; the Maryland State Police; the U.S. Attorney’s Office for the District of Maryland; and the U.S. Attorney’s Office for the Middle District of Pennsylvania investigated.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/34-indicted-expansive-drug-trafficking-operation
Guatemalan Man Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to six months in federal prison.
Miguel Jose Lopez-Garcia, age 23, a citizen of Guatemala illegally present in the United States and residing in Postville, Iowa, received the prison term after a November 1, 2022, guilty plea to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Lopez-Garcia admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Lopez-Garcia was previously deported in March 2020. On June 13, 2022, immigration officials learned Lopez-Garcia had illegally returned to the United States and found Lopez-Garcia at the Allamakee County Jail following his arrest on state charges. On September 14, 2022, Lopez-Garcia went into federal custody following his conviction in Iowa District Court for Sexual Abuse, Third Degree, and Operating While Intoxicated, First Offense.
Lopez-Garcia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Lopez-Garcia was sentenced to six months’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Lopez-Garcia is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1032.
Follow us on Twitter @USAO_NDIA.
Gallatin County meth trafficker sentenced to four years in prisonRead the Press Release
MISSOULA — A Bozeman man who admitted to selling methamphetamine and cocaine to approximately 10 people in the Gallatin Valley for about a year was sentenced today to four years in prison, to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Gerardo Gutierrez, 21, pleaded guilty in November 2021 to possession with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents, the government alleged that in July 2020, Gutierrez sold meth twice to a confidential informant. When interviewed, Gutierrez told law enforcement he had been dealing meth for another person for approximately one year and estimated he dealt an average of one ounce a week of both meth and cocaine, which is about 3.25 pounds of each drug, and sold to 10 different people.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Missouri River Drug Task Force.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Frank James Pleads Guilty to Mass Shooting on New York SubwayRead the Press Release
Frank James, 63, of Milwaukee, Wisconsin, pleaded guilty today to 10 counts of committing a terrorist attack or other violence against a mass transportation vehicle – one count for each gunshot victim – and one count of discharging a firearm in furtherance of his attack. The charges relate to the defendant’s April 12, 2022, mass shooting on the New York City subway in Sunset Park, Brooklyn.
According to court documents, during rush hour on the morning of April 12, 2022, James used a Glock 17 pistol he legally purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn, New York. As part of his attack, James – disguised in an orange reflective jacket and yellow hard hat to look like a Metropolitan Transportation Authority (MTA) employee – set off a smoke-emitting device in a subway car before opening fire on his captive victims. The smoke-emitting device caused panicked passengers to scramble to one end of the subway car, allowing James to more easily shoot at his victims. In total, 10 victims were struck by the defendant’s bullets. Even more passengers suffered from smoke inhalation and other mental and physical injuries due to the defendant’s attack.
“As described in court filings, the defendant set off a smoke bomb in a New York City subway car and then fired a handgun more than 30 times, striking ten innocent passengers,” said Attorney General Merrick B. Garland. “Today’s guilty plea demonstrates that the Justice Department will work relentlessly to hold accountable those who engage in mass violence and terrorize our communities.”
“On the morning of April 12, 2022, Frank James cold-bloodedly shot innocent New Yorkers traveling on the subway in Brooklyn and brought terror to our great city. James’s crimes of violence have been met with swift justice,” said U.S. Attorney Breon Peace for the Eastern District of New York. “James’s admission of guilt to all eleven counts of the superseding indictment acknowledges the terror and pain he caused. This guilty plea is an important step towards holding James fully accountable and helping the victims of the defendant’s violence and our great city heal.”
“Frank James, as he admitted today, deliberately planned and carried out an attack of terror on everyday New Yorkers. The FBI's JTTF and our law enforcement partners remain ever vigilant in our efforts to protect our city, and we will ensure those willing to commit acts of terror face the consequences of their actions,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office.
“Today’s guilty plea is a distinct admission of the terror Mr. James inflicted on New Yorkers last April in Brooklyn, and he is being held accountable for his reprehensible actions that morning,” said Commissioner Keechant L. Sewell of New York City Police Department (NYPD). “Our nation’s largest transit system is the lifeblood of New York City. And its subway riders expect and deserve the brisk, coordinated, and meticulous work exhibited by everyone involved in bringing this terrible incident to a successful close. For their unwavering dedication to all the people we serve, I thank and commend the NYPD patrol officers who arrested Mr. James on the run, as well as each of the detectives and agents assigned to the Joint Terrorism Task Force who methodically shrunk his world until he had nowhere else to turn. Lastly, I also want to thank the public for their vigilance and their help in taking this violent criminal off of our streets.”
The investigation reflects that the attack was the culmination of substantial planning. Beginning as early as 2017, James began purchasing items he could use in an attack, including smoke grenades, ammunition, weapons, and his disguise. In the months leading up to his attack, James conducted web searches for “MTA,” “New York,” “transit,” “stops on the N train,” and “311 kings highway brooklyn ny,” which is near where James parked his rented U-Haul van before entering the subway. The defendant also recorded and posted videos online foreshadowing his plans, including stating that “if you hear the name Frank James on the news, if something happens to a Frank James that’s sixty-something years old, chances are that’s me.”
Following James’s attack, law enforcement officers searched James’s apartment and storage unit and uncovered a stockpile of weapons, including, among other items, 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached; .223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke cannister.
James faces up to life in prison on each of the 11 counts. A sentencing date has not yet been set.
The FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD are investigating the case. MTA and ATF provided valuable assistance.
Assistant U.S. Attorneys Ian C. Richardson, Sara K. Winik, and Ellen H. Sise for the Eastern District of New York are prosecuting the case, with valuable assistance provided by Paralegal Specialist Magdalena St. Surin and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
Frank James Pleads Guilty to Mass Shooting on New York City SubwayRead the Press Release
Earlier today, in federal court in Brooklyn, Frank James pleaded guilty to 10 counts of committing a terrorist attack or other violence against a mass transportation vehicle—one count for each gunshot victim—and one count of discharging a firearm in furtherance of his attack. The charges relate to the defendant’s April 12, 2022 mass shooting on the New York City subway in Sunset Park, Brooklyn. Today’s proceeding was held before United States District Judge William F. Kuntz, II. When sentenced, James faces up to life in prison on each of the 11 counts.
Merrick B. Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“On the morning of April 12, 2022, Frank James cold-bloodedly shot innocent New Yorkers traveling on the subway in Brooklyn, and brought terror to our great city. James’s crimes of violence have been met with swift justice,” stated United States Attorney Peace. “James’s admission of guilt to all eleven counts of the superseding indictment acknowledges the terror and pain he caused. This guilty plea is an important step towards holding James fully accountable and helping the victims of the defendant’s violence and our great city heal.”
Mr. Peace praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force, which principally consists of agents from the FBI and detectives from the NYPD in bringing the defendant to justice. Mr. Peace also thanked the Metropolitan Transportation Authority (MTA) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) for their substantial assistance.
“As described in court filings, the defendant set off a smoke bomb in a New York City subway car and then fired a handgun more than 30 times, striking ten innocent passengers,” said Attorney General Merrick B. Garland. “Today’s guilty plea demonstrates that the Justice Department will work relentlessly to hold accountable those who engage in mass violence and terrorize our communities.”
“Frank James, as he admitted today, deliberately planned and carried out an attack of terror on everyday New Yorkers. The FBI's JTTF and our law enforcement partners remain ever vigilant in our efforts to protect our city, and we will ensure those willing to commit acts of terror face the consequences of their actions,” stated FBI Assistant-Director in Charge Driscoll.
“Today’s guilty plea is a distinct admission of the terror Mr. James inflicted on New Yorkers last April in Brooklyn, and he is being held accountable for his reprehensible actions that morning,” stated NYPD Commissioner Keechant L. Sewell. “Our nation’s largest transit system is the lifeblood of New York City. And its subway riders expect and deserve the brisk, coordinated, and meticulous work exhibited by everyone involved in bringing this terrible incident to a successful close. For their unwavering dedication to all the people we serve, I thank and commend the NYPD patrol officers who arrested Mr. James on the run, as well as each of the detectives and agents assigned to the Joint Terrorism Task Force who methodically shrunk his world until he had nowhere else to turn. Lastly, I also want to thank the public for their vigilance and their help in taking this violent criminal off of our streets.”
According to court filings and facts presented at the plea proceeding, at approximately 8:26 a.m. on April 12, 2022, James used a Glock 17 handgun that he legally purchased in Ohio to conduct a mass shooting on an N subway train in Brooklyn. As part of his attack, James—disguised in an orange reflective jacket and yellow hardhat to look like an MTA employee—set off a smoke-emitting device in a subway car before opening fire on his captive victims. The smoke-emitting device caused panicked passengers to scramble to one end of the subway car, allowing James to more easily shoot at his victims. In total, 10 victims were struck by the defendant’s bullets. Even more passengers suffered from smoke inhalation and other emotional and physical injuries caused by the defendant’s attack.
The investigation reflects that the attack was the culmination of substantial planning. Beginning as early as 2017, James began purchasing items he could use in an attack, including smoke grenades, ammunition, weapons, and his disguise. In the months leading up to his attack, James conducted internet searches for “MTA,” “New York,” “transit,” “stops on the N train,” and “311 kings highway brooklyn ny,” which is near where James parked his rented U-Haul van before entering the subway. The defendant also recorded and posted videos online foreshadowing his plans, including stating that “if you hear the name Frank James on the news, if something happens to a Frank James that’s sixty-something years old, chances are that’s me.”
Following James’s attack, law enforcement officers searched James’s apartment and storage unit and uncovered a stockpile of weapons, including, among other items: 9mm ammunition; a threaded 9mm pistol barrel, which allows for a silencer or suppresser to be attached; .223 caliber ammunition, which is used with an AR-15 semi-automatic rifle; a taser; a high-capacity rifle magazine; and a blue smoke cannister.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Ian C. Richardson, Sara K. Winik and Ellen H. Sise are in charge of the prosecution, with assistance from Paralegal Specialist Magdalena St. Surin and Trial Attorney David Cora of the National Security Division’s Counterterrorism Section.
The Defendant:
FRANK JAMES
Age: 63
Milwaukee, WisconsinE.D.N.Y. Docket No. 22-CR-214 (WFK)
Four Muncie Public Officials, a Former Police Officer, Two Contractors, and a Private Citizen Convicted and Sentenced for more than $3 Million in “Pay to Play” SchemesRead the Press Release
INDIANAPOLIS – Four former City of Muncie public officials, including former Mayor Dennis Tyler, a former police officer, a private citizen, and two contractors have all been convicted and sentenced in the federal court following a years-long investigation and prosecutions of systemic corruption in the government of the City of Muncie. The final sentence in the six related cases was imposed earlier today, and the sentences are as follow
DEFENDANT
OFFENSES
SENTENCE
Dennis Tyler, 78, of Muncie, Former Mayor of Muncie
Theft of Government Funds
1 year and a day imprisonment
3 years’ supervised release
$15,250 in restitution
Craig Nichols, 40, of Muncie,
Former Muncie Building Commissioner.
Owner, Advanced Walls & Ceilings and Capitol Consulting and Property Management
Wire Fraud and Money Laundering
2 years’ imprisonment3 years’ supervised release $217,892 in restitution
Tracy Barton, 52, of Muncie, Former Superintendent of Sewer Maintenance and Engineering
Conspiracy to Commit Wire Fraud
1 year of probation
Debra Nicole Grigsby, 46, of Muncie,
Former District Administrator of Muncie Sanitary District
Conspiracy to Commit Wire Fraud
1 year and a day imprisonment
2 years’ supervised release
$370,556.99 in restitution
Jess Neal, 54, of Muncie, Former Muncie police officer
Conspiracy to Commit Wire Fraud
2 years’ imprisonment
2 years’ supervised release
$55,650 in restitution
Jeff Burke, 55, of Muncie,
Owner, Burke Rentals 1, and
McGalliard Guns & More
Bank Fraud
6 months imprisonment, and 6 months’ home confinement
2 and a half years’ supervised release.
$245,000 in restitution.
Rodney Barber, 53, of Muncie, Owner, Barber Contracting
Conspiracy to Commit Wire Fraud
2 years of probation
$104,250 in restitution
Tony Franklin, 62, of Muncie, Owner, Franklin Building and Design
Conspiracy to Commit Wire Fraud
1 year and 1 day
$279,806.99 in restitution
2 years supervised release
Phil Nichols, former chairman of a political party in Delaware County, was also charged with conspiring with Grigsby, Neal, and Franklin to commit wire fraud. Phil Nichols entered into an agreement to plead guilty, but died prior to the resolution of his case. All charges against him were dismissed, as required by law. As part of their guilty pleas, Grigsby, Neal, and Franklin admitted to conspiring with Phil Nichols as charged.
According to court documents, between 2014 and 2019, the City of Muncie engaged in a series of public works projects that were intended to benefit the City’s residents. They included the levee recertification project, which required Muncie Sanitary district to acquire parcels of property situated near the White River, demolish homes and businesses existing on the parcels, and construct levees or storage basins so that the entire levee system could be recertified. They also included the Walnut Commons project which was an $8.3 million housing development that was intended to house Veterans who were experiencing homelessness and removing blighted properties around Muncie to allow room for redevelopment such as brownfield site located on the east side of Muncie called Kitselman Pure Energy Park.
Public officials in Muncie were required by law on these projects to solicit bids from contractors and engage in a competitive bidding process designed to ensure that the City hired the most qualified contractors to complete the work at the lowest cost. Instead, Dennis Tyler, Craig Nichols, Tracy Barton, and Debra Nicole Grigsby, under the corrupt influence of charged, but now deceased, Phil Nichols, engaged in bid-rigging and kickback schemes in which they agreed to steer work to contractors who would “pay-to-play.” They also exploited Indiana’s Guaranteed Energy Savings Contract law to steer no-bid contacts to the same corrupt contractors
According to admissions by the sentenced defendants in their guilty pleas, Phil Nichols decided which contractors were “greenlighted.” meaning they were part of what some of the co-conspirators called the “Program” which was a bid-rigging scheme in which contracts were steered by public officials to kickback paying contractors.
As a result of the schemes, contractors did not engage in competitive bidding and were allowed to bill the taxpayers for work they didn’t do, or overbill for work that they completed. In total, the public officials awarded $3,230,737 in contracts to participating contractors, and as a result, the City and the Muncie Sanitary District lost approximately $1,568,324. Additionally, potential witnesses against these defendants lived in fear of retaliation because some of the defendants engaged in witness tampering and retaliation. Some defendants also destroyed evidence and altered documents in an unsuccessful attempt to prevent the Federal Bureau of Investigation from exposing their crimes.
Summary of Cases
United States v. Dennis Tyler: Former Mayor Tyler admitted to accepting a $5,000 gratuity in exchange for official acts, namely, steering work to a paying contractor who charged more than an honest competitor. The gratuity arose from a public works project for Walnut Commons, which was an approximately $8.3 million housing development that was intended to house Veterans who were experiencing homelessness. On December 15, 2015, Mr. Tyler accepted $5,000 from Tracy Barton, the head of Muncie Sanitary Maintenance and Engineering, who acted as a middleman between the Mayor and Person A, a local contractor. Person A’s bid for the Walnut Common’s job was not the lowest, most qualified, responsive bid, but Mr. Tyler agreed to steer the contract to him as a favor. He later accepted the $5,000 payment as a thank you. The Walnut Commons contract was for $218,489. Mr. Tyler was convicted of Theft of Government Funds.
United States v. Craig Nichols: Mr. Nichols was the son of Phil Nichols and served as Muncie’s Building Commissioner. Craig Nichols also owned Advanced Walls and Ceilings, a company that contracted with the City of Muncie. Craig Nichols used false documents to steal $81,500 from the city for demolition work that AWC never performed and used additional false documents in an attempt to cover up his crimes. Mr. Nichols also fraudulently concealed his ownership of Capitol Consulting and Property Management, a company that billed the City for asbestos inspection and abatement work that he either never performed, double billed, or performed at inflated prices. Mr. Nichols pled guilty to Wire Fraud and Money Laundering and admitted that he billed Muncie $454,400 in contracts for work he did not perform or obtained through fraud. His crimes resulted in a loss of $270,392 in taxpayer money.
United States v. Tracy Barton: Mr. Barton was the Superintendent of Sewer Maintenance and Engineering at the Muncie Sanitary District. He admitted to accepting bribes and kickbacks in exchange for steering work to a contractor, who was a close friend. He further admitted to participating in a scheme to defraud the Muncie Sanitary District, in which public works projects were steered, at Phil Nichols’ direction, toward paying contractors through public officials who collected bribes and kickbacks. In total, Mr. Barton admitted to participating in a conspiracy in which $2,053,873 in contracts were steered, at Phil Nichols’ direction, toward paying contractors through public officials. The scheme resulted in $2,053,873 in fraudulent contracts and a loss of $1,032,682.
United States v. Debra Nicole Grigsby, Jess Neal, and Tony Franklin: Ms. Grigsby was the District Administrator for Muncie Sanitary District. As the District Administrator for MSD, Ms. Grigsby was responsible for approving the selection of contractors to perform work on MSD Infrastructure Projects. She also signed maintenance contracts on MSD’s behalf. Ms. Grigsby admitted to accepting kickbacks from Jess Neal and Tony Franklin in exchange for steering Muncie Sanitary District work to Tony Franklin. She further admitted to knowing that her subordinate, Tracy Barton, was also steering work toward paying contractors and was accepting kickbacks. Ms. Grigsby was convicted of Conspiracy to Commit Wire Fraud.
Mr. Neal was a Sergeant for the Muncie Police Department and the owner of Red Carpet, Inc. and Express Properties, LLC. Mr. Neal admitted to arranging for Mr. Franklin to pay kickbacks to Phil Nichols and Debra Nicole Grigsby so that Mr. Nichols would greenlight Mr. Franklin. Ms. Grigsby then also agreed to steer work arising out of the Muncie Sanitary District’s infrastructure projects associated with levee recertification to Mr. Franklin. Mr. Neal was convicted of Conspiracy to Commit Wire Fraud.
Mr. Franklin was the owner of Franklin Building and Design, LLC. Mr. Franklin admitted to paying Phil Nichols and Debra Nicole Grigsby kickbacks in exchange for receiving $1,170,667 in fraudulently steered contracts. Mr. Franklin received $1,170,667 in fraudulently steered contracts, and Muncie Sanitary District overpaid Mr. Franklin more than $600,000. As a result, MSD overpaid Franklin more than $600,000. He was convicted of Conspiracy to Commit Wire Fraud.
United States v. Jeff Burke: Mr. Burke was the owner of Burke Rentals 1 and McGalliard Guns & More. He admitted to receiving an inside tip from former police officer Jess Neal that the Muncie Sanitary District had to purchase a property known as the Flea Market in order to recertify the levee. Acting on that insider tip, Mr. Burke defrauded a bank to receive a quick loan, quickly purchased the Flea Market property for $150,000 without disclosing it’s true value, and then sold it 41 days later to the City for an inflated cost of $395,000. Mr. Burke did so knowing that the City had no choice but to pay the exorbitant cost. Mr. Burke was convicted of Bank Fraud and making False Statements to FBI agents. His scheme resulted in a loss of $245,000 in taxpayer funds.
United States v. Rodney Barber: Mr. Barber was the owner of Barber Contracting, Inc. He admitted to paying kickbacks to Phil Nichols and Tracy Barton in exchange for receiving nearly $300,000 in public works projects associated with the Muncie Sanitary District recertification of the levee. He was convicted of Conspiracy to Commit Wire Fraud, Wire Fraud, and making False Statements. In total, Mr. Barber received nearly $300,000 in contracts, resulting in a loss of $104,250 to Muncie Sanitary District.
United States v. Phil Nichols: Prior to his death, Mr. Nichols admitted in his plea agreement to Conspiracy to Commit Wire Fraud. Mr. Nichols was a former chairman of a political party in Delaware County and was regularly involved in raising money and advising political candidates running for local office in Delaware County. According to his co-conspirators and other paying contractors, though he had no official role in Muncie City Government or Muncie Sanitary District, Mr. Nichols maintained a powerful political control over Muncie officials, including Mrs. Grigsby and Mr. Barton. During the conspiracy period, contractors who wished to do work for Muncie Sanitary District had to be “greenlighted” by Mr. Nichols. Only contractors who had agreed to pay bribes or kickbacks to public officials, or make contributions to certain political campaigns or parties were greenlighted. As set forth in their plea agreements, Tracy Barton and Debra Nicole Grigsby admitted that Mr. Nichols directed them to steer public works projects arising out of the Muncie Sanitary District infrastructure projects associated with levee recertification to contractors who were willing to pay bribes and kickbacks.
The entire scheme involving Ms. Grigsby, Mr. Barber, Mr. Franklin, Mr. Neal, and Phil Nichols resulted in $2,053,873 in fraudulent contracts and a total loss of $1,032,682.
“The citizens of Muncie placed their trust in a small group of government officials—many of whom were on a first-name basis with their constituents. This systemic public corruption not only resulted in more than $1.5 million of taxpayer money lost, but also caused immeasurable distrust in local government,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “These prosecutions and sentences demonstrate that ‘pay to play’ schemes will not be accepted as the way governments do business. The U.S. Attorney’s Office and our partners at the FBI will investigate and prosecute these violations of public trust and public funds—and ensure that the criminals responsible are held accountable.”
“Ultimately, greed caught up with these defendants and they were held accountable for it. The citizens of Muncie deserved better and hopefully the dedicated work of our agents to uncover this systemic corruption will help restore public trust,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Cases like this are the reason public corruption is a top criminal investigative priority for the FBI, and we encourage the public to report potential abuses of public office.”
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who prosecuted these cases.
Former Wayne County Employee Pleads Guilty to Stealing over $1.7 Million in County FundsRead the Press Release
DETROIT – A former Wayne County Roads Division employee pleaded guilty today to conspiring to steal over $1.7 million in county funds, United States Attorney Dawn N. Ison and Wayne County Prosecutor Kym Worthy announced.
Ison and Worthy were joined in the announcement by James A. Tarasca, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Wayne County Sheriff Raphael Washington.
Kevin Gunn, 64, of West Bloomfield, pleaded guilty to defrauding Wayne County out of nearly $2 million in taxpayer funds. Gunn, and fellow Wayne County employee John L. Gibson, 54, of Detroit engaged in a scheme to use taxpayer dollars to make unauthorized purchases of generators and other power equipment from retailers in southeast Michigan which they sold for personal profit. A federal grand jury indicted Gibson for these crimes in October 2022.
In March of 2021, the Wayne County Sheriff’s Department began an investigation into the misuse of taxpayer dollars. The Sheriff’s Department then solicited the assistance of the FBI to investigate the criminal actions of Gunn, Gibson, other employees of the Wayne County Roads Division, and vendors to Wayne County. At the beginning of the investigation, the Wayne County Prosecutor’s Office secured a search warrant which broke open the case and led to the uncovering of the embezzlement scheme. Investigators with the Wayne County Prosecutor’s Office have played an ongoing and important role in the investigation.
As part of the scheme to defraud, between January 2019, and August 2021, Gunn and Gibson solicited approved Wayne County vendors to purchase generators and other power equipment from local retailers on behalf of Wayne County. The vendors would then submit invoices for these items to Wayne County. In order to conceal the scheme to defraud, Gunn instructed the vendors to falsify the invoices they submitted to the Roads Division, and list items the vendors were authorized to sell to the county under their contracts, rather than the generators and power equipment they were unlawfully acquiring at Gunn’s and Gibson’s request. Roads Division employees would then approve and pay each vendor’s invoice with taxpayer funds. After these fraudulent purchases were verified and approved by Roads Division employees, Gibson took possession of the equipment, paid Gunn for the items, and resold the generators and other items for personal profit.
A review of invoices from Wayne County vendors revealed that between January 16, 2019, and August 3, 2021, Wayne County vendors purchased 596 generators, and a variety of other power equipment including lawnmowers, chainsaws, and backpack blowers. The purchase of these items was not authorized under any vendor contract with Wayne County nor were the items ever provided to or used by Wayne County. The total value of equipment purchased as part of the scheme was approximately $1.7 million in taxpayer funds. Gibson and Gunn were arrested in May by FBI agents, Wayne County Prosecutor’s Office Investigators, and Wayne County Sheriff’s Deputies.
Pursuant to the terms of his plea agreement, Gunn faces a sentencing guideline range of 57-71 months in prison. Sentencing has been set for May 31, 2023.
Conspiracy to commit federal program theft carries a maximum sentence of up to 5 years’ imprisonment and a fine of up to $250,000. Federal program theft carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.
United States Attorney Dawn Ison said, “Today’s guilty plea is the culmination of months of collaboration between our federal, state, and local law enforcement officers who worked together to seek justice for the citizens of the Eastern District of Michigan. We thank Wayne County Prosecutor Kym Worthy and her uncompromising efforts to eliminate corrupt public officials who abuse their power and steal from the hardworking taxpayers of Wayne County.”
“This is the one of the worst types of betrayal of the public trust. Wayne County remains committed to sussing out corruption where we find it - no matter who is involved. We continue this work today. I want to thank CEO Evans for his continued cooperation, my detectives, and especially the United States Attorney’s office for their successful prosecution of the defendant,” said Wayne County Prosecutor Kym L. Worthy.
"The actions of this individual are nothing short of disgraceful,” said Sheriff Raphael Washington. “To brazenly steal from hardworking taxpayers and fraudulently line his own pockets while holding positions of public trust make these crimes all the more deplorable.”
“Public officials are entrusted to use taxpayer money for its intended purpose, not for their personal benefit. Today, Mr. Gunn is being held accountable for violating that trust,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “I would like to thank the Michigan Attorney General's Office and the Wayne County Prosecutor, Wayne County Executive, and Wayne County Sheriff’s Office for their partnership on this investigation.”
The investigation of this case was conducted by the Wayne County Prosecutor’s Office, the Wayne County Sheriff’s Department, the Michigan Attorney General’s Office, and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown.
Former GE Power Engineer Sentenced for Conspiracy to Commit Economic EspionageRead the Press Release
ALBANY, NEW YORK – Xiaoqing Zheng, age 59, of Niskayuna, New York, was sentenced today to 24 months in prison for conspiring to steal General Electric trade secrets knowing or intending to benefit the People’s Republic of China.
The announcement was made by Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; United States Attorney Carla B. Freedman; Assistant Director Alan E. Kohler Jr. of the Federal Bureau of Investigation’s Counterintelligence Division; and Janeen DiGuiseppi, Special Agent in Charge of the FBI Albany Field Office.
Assistant Attorney General Matthew G. Olsen stated: “This is a case of textbook economic espionage. Zheng exploited his position of trust, betrayed his employer, and conspired with the government of China to steal innovative American technology. The Justice Department will hold accountable those who threaten our national security by conniving to steal valuable trade secrets on behalf of a foreign power.”
United States Attorney Carla B. Freedman stated: “Zheng sought to enrich himself, and benefit the People’s Republic of China, by stealing trade secrets developed and owned by his longtime employer, General Electric. We will continue to work with the FBI to hold criminals accountable when they seek to illegally exploit American ingenuity.”
Zheng was convicted of conspiracy to commit economic espionage, following a 4-week jury trial that ended on March 31, 2022. The jury either acquitted Zheng, or could not reach a unanimous verdict, as to 11 other charged counts.
Zheng was employed at GE Power in Schenectady, New York, as an engineer specializing in turbine sealing technology. He worked at GE from 2008 until the summer of 2018. The trial evidence demonstrated that Zheng and others in China conspired to steal GE’s trade secrets surrounding GE’s ground-based and aviation-based turbine technologies, knowing or intending to benefit the People’s Republic of China and one or more foreign instrumentalities, including China-based companies and universities that research, develop, and manufacture parts for turbines.
FBI Counterintelligence Assistant Director Alan E. Kohler, Jr. stated: “American ingenuity is an integral part of the United States’ economic security – it is what has guided the U.S. to become the global leader, even as China seeks to topple our status. Xiaoqing Zheng was a Thousand Talents Program member and willingly stole proprietary technology and sent it back to the PRC. Let today’s sentencing serve as a reminder that the FBI remains dedicated in our pursuit of those who collaborate with the People’s Republic of China (PRC) and steal American trade secrets.”
FBI-Albany Special Agent in Charge Janeen DiGuiseppi stated: “Dr. Zheng used a complicated process to deliberately steal trade secrets from General Electric to benefit the People’s Republic of China. Today’s prison sentence speaks to the severity of his actions and the danger economic espionage poses to the United States. Put simply, the FBI will not allow American research and development to be stolen and we will continue to work with our partners to ensure American technology and American jobs are protected.”
United States District Judge Mae A. D’Agostino also sentenced Zheng to pay a $7,500 fine and serve 1 year of post-imprisonment supervised release.
This case was investigated by the FBI, with assistance from the Buffalo Field Office of Homeland Security Investigations (HSI). The case was prosecuted by Assistant U.S. Attorney Rick Belliss, former Assistant U.S. Attorney Emily Powers, and Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Controls Section.
Former GE Power Engineer Sentenced for Conspiracy to Commit Economic EspionageRead the Press Release
A New York man was sentenced today to 24 months in prison for conspiring to steal General Electric (GE) trade secrets, knowing or intending to benefit the People’s Republic of China (PRC).
Xiaoqing Zheng, 59, of Niskayuna, New York, was convicted of conspiracy to commit economic espionage, following a four-week jury trial that ended on March 31, 2022. According to court documents, Zheng was employed at GE Power in Schenectady, New York, as an engineer specializing in turbine sealing technology. He worked at GE from 2008 until the summer of 2018. The trial evidence demonstrated that Zheng and others in China conspired to steal GE’s trade secrets surrounding GE’s ground-based and aviation-based turbine technologies, knowing or intending to benefit the PRC and one or more foreign instrumentalities, including China-based companies and universities that research, develop, and manufacture parts for turbines.
“This is a case of textbook economic espionage. Zheng exploited his position of trust, betrayed his employer and conspired with the government of China to steal innovative American technology,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The Justice Department will hold accountable those who threaten our national security by conniving to steal valuable trade secrets on behalf of a foreign power.”
“Zheng sought to enrich himself, and benefit the People’s Republic of China, by stealing trade secrets developed and owned by his longtime employer, General Electric," said U.S. Attorney Carla B. Freedman for the Northern District of New York. "We will continue to work with the FBI to hold criminals accountable when they seek to illegally exploit American ingenuity.”
“American ingenuity is an integral part of the United States economic security – it is what has guided the U.S. to become the global leader, even as China seeks to topple our status,” said Assistant Director Alan E. Kohler Jr. of the FBI Counterintelligence Division. “Xiaoqing Zheng was a Thousand Talents Program member and willingly stole proprietary technology and sent it back to the PRC. Let today’s sentencing serve as a reminder that the FBI remains dedicated in our pursuit of those who collaborate with the People’s Republic of China (PRC) and steal American trade secrets.”
U.S. District Judge Mae A. D’Agostino also sentenced Zheng to pay a $7,500 fine and serve one year of post-imprisonment supervised release.
This case was investigated by the FBI, with assistance from the Buffalo Field Office of Homeland Security Investigations (HSI).
The case was prosecuted by Assistant U.S. Attorney Rick Belliss and former Assistant U.S. Attorney Emily Powers for the Northern District of New York, and Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Control Section.
Former Children's Museum Director Sentenced to 66 Months in Prison for Distributing Child PornographyRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that ROBERT ECKERT, 56, of West Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 66 months of imprisonment, followed by five years of supervised release, for distributing child pornography.
According to court documents and statements made in court, Eckert used multiple internet platforms, including MeWe and Kik, to solicit, receive and distribute images of child sexual abuse and to communicate with others about the distribution of child pornography. He accessed the online platforms on his phone, at his residence, and at the Lutz Children’s Museum in Manchester where he was employed as its executive director.
On June 12, 2020, investigators seized Eckert’s cellphone. Analysis of the cellphone revealed 1,837 image files and 73 videos depicting child sex abuse, including the abuse of prepubescent minors.
Eckert was arrested on April 8, 2021. On September 1, 2022, he pleaded guilty to distribution of child pornography.
Eckert, who is released on a $100,000 bond, is required to report to prison on February 15.
This matter was investigated by Homeland Security Investigations (HSI), with the assistance of the Connecticut State Police and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorneys Nancy V. Gifford and Daniel Cummings.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Chief Financial Officer of Two SPACs Pleads Guilty to Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that COOPER MORGENTHAU, the former chief financial officer of two special purpose acquisition companies (“SPAC-1” and “SPAC-2”), pled guilty to one count of wire fraud in connection with a scheme to embezzle more than $5 million from the two companies. The defendant pled guilty before U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Damian Williams said: “Cooper Morgenthau, the former CFO of two SPACs, has admitted that he breached the trust that he owed to his public and private investors, stealing millions of dollars from them to trade meme stocks and cryptocurrencies. This Office remains committed to rooting out fraud in the SPAC market and to protecting Main Street investors from abuses on Wall Street.”
According to the allegations in the Information and statements made in public court proceedings:
Between in or about June 2021 and in or about August 2022, MORGENTHAU, who was the CFO of SPAC-1 and SPAC-2, embezzled more than $5 million from the two companies. SPAC-1 had recently had its initial public offering, while SPAC-2 was raising money from private investors in preparation for its anticipated IPO. MORGENTHAU used the embezzled funds to trade equities and options of so-called “meme stocks” and cryptocurrencies, losing almost all of the money that he stole. To conceal and facilitate his embezzlement from SPAC-1, MORGENTHAU fabricated bank statements, which he provided to SPAC-1’s accountant and auditor; made and caused to be made material misstatements in SPAC-1’s public filings with the Securities and Exchange Commission (“SEC”); and transferred some of SPAC-2’s funds to SPAC-1 to cover up the funds he had misappropriated from SPAC-1.
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MORGENTHAU, 35, of Fernandina Beach, Florida, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison. As part of his guilty plea, MORGENTHAU agreed to forfeit $5,111,335 and to pay restitution of $5,111,335.
The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. MORGENTHAU is scheduled to be sentenced by Judge Engelmayer on April 25, 2023.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams further thanked the SEC for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Anden Chow are in charge of the prosecution.
Florida Man with Ties to Mexican Drug Cartel Sentenced to Prison for Possession with Intent to Distribute Eight Kilos of MethamphetamineRead the Press Release
ALBANY, Ga. – A Haines City, Florida, resident with a lengthy criminal history and connections to a Mexican drug cartel was sentenced to prison for possession with intent to distribute approximately eight kilograms of methamphetamine resulting from an I-75 traffic stop in South Georgia.
James E. Freitas, 48, was sentenced to serve 360 months in prison to be followed by five years of supervised release by U.S. District Judge Louis Sands on Dec. 29, 2022, after he previously pleaded guilty to possession with intent to distribute methamphetamine. Co-defendant, Miguel L. Mora, 44, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 12, 2022, and is scheduled to be sentenced on Feb. 2. There is no parole in the federal system.
“Individuals tied to criminal organizations trafficking large quantities of the most lethal controlled substances into our communities will face steep federal consequences for crimes which are contributing to the addiction and death of many Americans,” said U.S. Attorney Peter D. Leary. “Local, state and federal law enforcement teams are working to dismantle these cartels and hold the people associated with them responsible.”
“The sentencing of this reoffender is the result of the collaborative efforts between DEA and its law enforcement partners who work tirelessly to eliminate the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This defendant will now face serious time in prison.”
According to court documents, a Lowndes County Sheriff’s Office deputy attempted to conduct a routine traffic stop for a driving violation as Freitas was traveling on I-75 on July 11, 2019. Freitas was unable to provide identification and gave conflicting information. As Freitas was standing outside the vehicle talking with the deputy, Mora climbed into the front seat and drove away in the car. Mora drove the vehicle into a field and then fled on foot into the woods carrying a large bag. Mora was quickly apprehended; the bag that he carried from the car was searched and found to contain 8,099 grams of 97% pure methamphetamine with an estimated street value of $748,000. On the floorboard of the car, officers found a loaded .40 caliber semi-automatic pistol with an obliterated serial number possessed by Freitas.
A search warrant subsequently executed on Freitas’ cell phone found photos of the gun, plus text and WhatsApp instant messages detailing both defendants’ travel to and from Nashville, Tennessee, to purchase and transport methamphetamine to a third party in Florida. The WhatsApp messages were between Freitas, a member of a Mexican drug cartel, and higher-ranking leaders within the organization concerning the distribution of methamphetamine.
Freitas has a lengthy criminal history with prior felony drug convictions for possession and trafficking of controlled substances in Florida. Mora has a lengthy criminal history, with convictions in Arkansas and Florida, including a prior felony conviction for trafficking amphetamine.
DEA and Lowndes County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Mike Morrison prosecuted this case.
Council Bluffs Man Sentenced to 121 Months in Federal Prison for Child Pornography OffenseRead the Press Release
COUNCIL BLUFFS, IA – James Matthew Hargens, age 37, of Council Bluffs, was sentenced on December 15, 2022, to 121 months in prison following his plea of guilty to Receipt of Child Pornography. Hargens will be required to register as a sex offender and serve five years of supervised release following his release from prison. Hargens was also ordered to pay restitution.
In November 2021 a social media application sent a cybertip to the National Center for Missing and Exploited Children regarding an account that uploaded several images and videos of child pornography. The cybertip was referred to Iowa Internet Crimes Against Children and the Council Bluffs Police Department initiated an investigation. The investigation led to a search warrant at Hargens residence. A forensic analysis identified that Hargens received, possessed, and downloaded numerous images and videos of child pornography.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The investigation was conducted by the Council Bluffs Police Department, the United States Secret Service National Computer Forensics Institute who provided training and equipment and was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon Sentenced for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon to more than seven years in prison for illegally possessing firearms, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Marcus Watson.
U.S. District Court Judge Madeline H. Haikala sentenced Audrey Jerome Pruitt, 39, of Birmingham, to 90 months in prison followed by three years of supervised release. Pruitt pleaded guilty to two counts of being a felon in possession of a firearm in September 2022.
According to court documents, in October and November 2020, Pruitt illegally possessed an American Tactical, Omni Hybrid, .223/.556 caliber pistol, and a Springfield .40 caliber pistol. Pruitt is prohibited from possessing a firearm because of prior felony convictions. In April 2008, Pruitt was convicted in the Circuit Court of Jefferson County for Robbery, First Degree and Receiving Stolen Property, and in March 2019, he was convicted of Domestic Violence, Second Degree.
ATF investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorneys Darius C. Greene and Michael Royster prosecuted the case.
Colorado Man Sentenced to 19 Years for Heroin Trafficking, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – An Aurora, Colorado, man was sentenced in federal court today for heroin trafficking and illegally possessing a firearm while traveling through Kansas City, Mo., on a bus bound for Virginia.
Izeall T. Collins, 44, was sentenced by U.S. District Judge Greg Kays to 19 years in federal prison without parole.
Collins was found guilty at trial on June 15, 2022, of one count of possessing a kilogram or more of heroin with the intent to distribute, and one count of possessing a firearm in furtherance of a drug-trafficking crime.
According to evidence introduced during the trial, law enforcement officers contacted Collins at a Kansas City, Mo., bus station on March 4, 2019, during a layover while Collins was traveling from Denver, Colo., to Norfolk, Va. Collins had been acting suspiciously, and admitted to officers that he had some marijuana in his possession. Officers searched Collins and found a large, hard, brick-shaped object in Collins’s pants.
Officers found 1.05 kilograms of heroin, which was packaged in a rectangular bag wrapped in silver duct tape, concealed in the waistband of his underwear. Officers also found a round of 9mm ammunition in his pocket.
Officers retrieved Collins’s backpack and soft-sided cooler from the bus and obtained a search warrant for them. Investigators later found a loaded Keltec 9mm semi-automatic handgun in the soft-sided cooler.
This case was prosecuted by Assistant U.S. Attorney Robert Smith and Special Assistant U.S. Attorney Stephanie Bradshaw. It was investigated by the MOWIN (Missouri Western Interdiction and Narcotics) Task Force and the Drug Enforcement Administration.
Canton Man Sentenced to over 21 Years in Prison for Conspiracy to Possess with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Canton man was sentenced to 260 months in federal prison for conspiracy to possess with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
Randy Moncreaise, 42, was sentenced on December 21, 2022, in U.S. District Court in Jackson.
According to court documents, Moncreaise conspired with others to distribute methamphetamine in and around the Neshoba County, Mississippi area. During the course of the conspiracy, it was determined that Moncreaise was responsible for conspiring to distribute nearly 4 pounds of methamphetamine.
The case is the result of an extensive investigation, dubbed “Orlando Land,” which began as an operation targeting illegal drug trafficking in the Neshoba and Kemper County, Mississippi areas. “Orlando Land” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, the U.S. Department of Homeland Security, the Mississippi Bureau of Narcotics, the Mississippi Attorney General’s Office, Kemper County Sheriff’s Office, Neshoba County Sheriff’s Office, Philadelphia Police Department and Mississippi Department of Wildlife, Fisheries and Parks.
The case was prosecuted by Assistant United States Attorney Keesha Middleton.
Butte man sentenced to seven years in prison for drug trafficking, firearms crimesRead the Press Release
MISSOULA —A Butte man who admitted to trafficking methamphetamine and fentanyl pills and to firearms crimes was sentenced today to seven years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Charles Warren Campbell, 52, pleaded guilty in August 2022 to conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, prohibited person in possession of a firearm, possession of a firearm with an obliterated serial number and possession of an unregistered firearm.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that in August 2021, the Butte Silver-Bow Police Department officers assisted in evicting a man from a Butte residence and when they arrived, another man fled before officers could identify the person. Officers located a firearm, five ounces of meth, a digital scale, heroin and two cell phones in a guest room. The individual being evicted advised law enforcement that Campbell had moved in about a month prior, was the man who fled the residence and that the drugs and gun were Campbell’s. A few weeks later, officers located Campbell, who had an active felony arrest warrant, driving a vehicle that had been reported stolen. In a search of the car, officers found three additional firearms, including a modified shotgun with a pistol grip and an obliterated serial number, a .25-caliber handgun and a 9mm pistol. Officers also located ammunition, meth, heroin and a fentanyl pill. Campbell told officers he was a ranking member of the Aryan Brotherhood in Arizona and had been receiving and distributing large quantities of meth and heroin over the past month. Campbell had a prior felony conviction and was prohibited from possessing firearms.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Butte Silver-Bow Law Enforcement and Montana Probation and Parole.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Albuquerque man pleads guilty to cyberstalking, child pornography offensesRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Zachary Dosch pleaded guilty on Dec. 20, 2022, to cyberstalking, receipt of child pornography, and distribution of child pornography. Dosch, 23, of Albuquerque, will remain in custody pending sentencing, which has not been scheduled.
According to court records, on Nov. 30, 2019, a Snapchat user reported to the National Center for Missing and Exploited Children (NCMEC) that the user had received threats through Snapchat, and that a friend had received possible child sexual abuse material (CSAM). Both the threat and the CSAM were sent from an account with the same username as a Kik profile used by Dosch. Additionally, from Oct. 29, 2019, through May 12, 2021, NCMEC received numerous Cybertips regarding CSAM related to a Discord username associated with Dosch.
In his plea agreement, Dosch admitted that beginning at least in October 2019 and continuing until his arrest on June 17, 2021, he targeted minors online for sexual extortion, and, using various social media platforms, received, uploaded and shared CSAM. He also acknowledged extorting sexually explicit material from minors and causing them significant emotional distress.
By the terms of the plea agreement, Dosch faces up to 50 years in prison and will be required to register as a sex offender.
The FBI Albuquerque Field Office investigated this case with assistance from the Bernalillo County Sheriff’s Office and the Regional Computer Forensics Laboratory as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
Assistant U.S. Attorney Sarah Mease is prosecuting the case as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
For more information on sextortion and how to get help, visit the FBI website.
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31 December 2022
Maryland Man Sentenced to Prison for Transporting over $300,000 of Stolen MoniesRead the Press Release
BECKLEY, W.Va. – Dhanraj Singh, 62, of Bowie, Maryland, was sentenced to two years and three months in prison, to be followed by three years of supervised release, for interstate transportation of stolen property. Singh also paid $382,449 in ordered restitution.
According to court documents and statements made in court, from 2017 until July 2020, Singh was the maintenance director at a resort in the Southern District of West Virginia. Singh admitted to embezzling $382,449 from the resort by submitting fake invoices that either requested reimbursement when no maintenance work occurred or inflated the cost of maintenance work performed. Singh further admitted to stealing approximately $2,400 to $,2500 from the resort’s petty cash each week. Singh sometimes directed resort employees to withdraw the petty cash on his behalf and deliver it to him. Singh admitted that he routinely transported money he stole from the resort from West Virginia to Maryland, where he would deposit it in his bank accounts.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Raleigh County Sheriff’s Office.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Kathleen E. Robeson prosecuted the case. Assistant United States Attorney Jessica Nathan of the U.S. Attorney Office’s Financial Litigation Unit secured restitution in the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-240.
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30 December 2022
U.S. Attorney’s Office Collects Nearly $7.7 Million in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
KANSAS CITY, Mo. – U.S. Attorney Teresa Moore announced today that the Western District of Missouri collected $7,691,991 in criminal and civil actions in Fiscal Year 2022. Of this amount, $5,422,014 was collected in criminal actions and $2,269,977 was collected in civil actions.
Additionally, the Western District of Missouri worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $5,580,483 in cases pursued jointly by these offices. Of this amount, $45,732 was collected in criminal actions and $5,534,751 was collected in civil actions.
In total, the Western District of Missouri and partner agencies collected a combined total of $13,272,474 in criminal and civil actions and forfeitures in fiscal year 2022.
“The attorneys and support staff in our district’s Monetary Penalties Unit worked diligently to collect millions of dollars in restitution for victims of crime, and to seize the assets of those who sought to profit from their illegal activities,” said U.S. Attorney Teresa Moore. “In our Civil Division, attorneys and staff successfully recovered considerable funds owed to the government as a result of numerous civil judgments.
“Our collections and asset recovery programs, in both the civil and criminal divisions, hold defendants financially accountable for their conduct,” Moore added. “We are committed to ensure that these debts, both to the government and to the victims of crime, are paid in full.”
For example, the Monetary Penalties Unit recovered over $550,000 in criminal penalties from Randall Halley, a Nixa physician who pleaded guilty to one count of making a false statement to Medicare to obtain insurance coverage for a fentanyl prescription and one count of conspiracy to use his DEA registration number for his employees to issue controlled substances to patients in his absence. Halley took bribes from a drug manufacturer in exchange for prescribing its fentanyl drug to his patients so often that he ranked highest in the state in net sales of the product. Numerous patients received dangerous fentanyl medication they did not need, nor did they qualify for under Medicare, and Medicare was defrauded out of hundreds of thousands of dollars.
The Monetary Penalties Unit also collected over $880,000 in a civil forfeiture action as part of a central Missouri case involving real and personal property that represented criminal proceeds from drug trafficking.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Western District of Missouri, working with partner agencies and divisions, collected $3,233,871 in asset forfeiture actions in FY 2022. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney’s Office Collects $41,562,706.60 in Civil and Criminal Actions in Fiscal Year 2022Read the Press Release
(DENVER) - U.S. Attorney Cole Finegan announced today that the District of Colorado collected $41,562,706.60 in criminal and civil actions in Fiscal Year 2022. Of this amount, $4,245,736.91 was collected in criminal actions and $37,316,969.69 was collected in civil actions.
The District of Colorado also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,855,053.04 in cases pursued jointly by these offices. Of this amount, $741,651.73 was collected in criminal actions and $1,113,401.31 was collected in civil actions.
The district’s Asset Recovery Division, led by Chief Tonya Andrews, working with partner agencies, also forfeited $23,307,938.73. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. In January and August, the District of Colorado recovered over $13 million in COVID-fraud related funds in the Folk and Citi Bank cases, involving individuals who fraudulently applied for and received COVID-relief funds from the Small Business Administration.
“As a result of exceptional work by the Asset Recovery Division and our Civil Division, in coordination with our law enforcement partners, more than $41 million was recovered this year,” said U.S. Attorney Cole Finegan. “These collected funds will assist victims in their recovery process and aid law enforcement as they continue to hold criminals accountable for their crimes.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Raleigh County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – Chadd E. Worley, 44, of Beckley, was sentenced today to three years and four months in prison, to be followed by three years of supervised release, for possession with intent to distribute heroin.
According to court documents and statements made in court, on March 8, 2020, Worley was a passenger in a vehicle pulled over by law enforcement in Beckley. Worley admitted to possessing approximately 23 grams of heroin found in the vehicle. Worley further admitted that he intended to distribute the heroin in and around Raleigh County.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit, the Raleigh County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA) in Michigan.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-112.
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Phoenix Man Sentenced for Importing Counterfeit N95 Masks from AsiaRead the Press Release
PHOENIX, Ariz. – Mark Forrest Cohn, 68, of Chandler, Arizona, was sentenced on December 21, 2022, by United States District Judge David G. Campbell to one year of probation and ordered to pay restitution, to include $8,028 in unpaid taxes and tariffs to U.S. Customs and Border Protection (CBP). Cohn pleaded guilty to one felony count of Entry of Goods by Means of False Statements.
On October 29, 2020, Cohn fraudulently imported counterfeit 3M manufactured N95 masks into the United States from China using shipping labels and papers that falsely represented the merchandise. The false representations disguised the merchandise as goods not subject to duties and inspection by the United States Food and Drug Administration. Once the shipment arrived at a Phoenix mail facility, a box imported by Custom Glass and Synthetic was targeted for inspection as part of an enforcement operation conducted by Homeland Security Investigations (HSI) and CBP’s Office of Field Operations officers. When the box was opened, HSI and CBP officers found masks branded as 3M with pixelated photos on the packaging. Working together, HSI and CBP officers scanned and transmitted images of the shipment of purported N95 masks to 3M. On November 3, 2020, 3M advised the N95 masks were in fact counterfeit. Counterfeits create risks to the user because the seals can be ill-fitting and the masks less effective.
On November 23, 2020, Department of Veterans Affairs Office of Inspector General agents and a 3M representative inspected the masks located at a Veterans Affairs Medical Center (VAMC) warehouse in Minneapolis, Minnesota. The counterfeit masks were identified and seized before they made their way to front line workers.
The N95 mask is designed for health care workers as the fit and seal minimize the transference of COVID. Cohn sold over 20,000 masks to a third-party vendor that supplied equipment to the VAMC warehouse in Minnesota. The third-party vendor did not know that the masks were counterfeit.
Homeland Security Investigations conducted the investigation in this case, with assistance from CBP’s Office of Field Operations and the Department of Veterans Affairs Office of Inspector General. Assistant U.S. Attorneys Kristen Brook and Peter Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-22-01308-PHX-DGC
RELEASE NUMBER: 2022-232_Cohn# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Mother, Associate of Federal Fugitive Charged with Aiding Escape from Cass County JailRead the Press Release
KANSAS CITY, Mo. – The mother and an associate of former fugitive Trevor Sparks of Kansas City, Mo., who was apprehended today, have been charged in federal court with assisting in his escape from the Cass County Jail earlier this month.
Dawn Branstietter, 54, of Blue Springs, Mo., the mother of Sparks, and Nicholas Parris, 38, of Kansas City, Mo., were charged with aiding or assisting an escape from confinement in a criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Sergio Perez Martinez, 43, of Panorama City, Calif., escaped from the jail with Sparks and remains a fugitive.
According to an affidavit filed in support of today’s federal criminal complaint, Sparks made several telephone calls to his mother from the jail in which they discussed his upcoming escape attempt. He told her to make sure there was gas in the car because “You are probably going to pick me up real soon. Real, real, real soon.” Sparks told her to “just be ready.”
Sparks made several calls to Branstietter but she was not answering the phone, so he contacted Steven Lydell Williams, Sr., 64, of Kansas City, Mo. Sparks asked Williams to get in touch with his mother, the affidavit says, but then recruited Williams to pick him up after the escape due to Branstietter not answering her phone for several days. Williams allegedly picked up Sparks at a local Casey’s store on Dec. 5, 2022, after he and Perez-Martinez escaped from the jail.
Williams was charged in a separate criminal complaint on Dec. 7, 2022, with aiding or assisting in the escape.
On Dec. 9, 2022, Branstietter was interviewed at her residence. Branstietter indicated she would not give up her son and would go to prison so he could be free. Branstietter’s husband was also at the residence and was not cooperative with law enforcement. No other individuals were found at the residence.
Investigators searched Branstietter’s Facebook account and found messages between her and Parris, who was the ex-boyfriend of Sparks’s sister. They discussed going to Texas, where Sparks’s sister lives. While there was minimal contact between Branstietter and Parris prior to the escape of Sparks and Perez Martinez, the affidavit says, within days of the escape, communication between these two accounts grew exponentially in frequency. The messages were cryptic, vague, or directed to voice or video communication.
At approximately 10:16 a.m. today, Sparks was seen leaving the back yard of a Blue Springs residence that Branstietter had been visiting frequently. Sparks got into a vehicle with Branstietter and drove to Parris’s residence, where Sparks, Branstietter, and Parris were arrested by Kansas City police officers.
Sparks was convicted on Nov. 7, 2022, by a federal trial jury, of leading a criminal conspiracy linked to two murders and multiple violent assaults, and which distributed at least a kilogram of methamphetamine every day for nearly a year in the Kansas City, Springfield, St. Joseph, and St. Louis, Mo., areas, as well as illegally possessing firearms. He was found guilty of one count of conspiracy to distribute methamphetamine, one count of participating in a money-laundering conspiracy, one count of possessing firearms in relation to a drug-trafficking crime, and one count of being a felon in possession of firearms and ammunition. Sparks was awaiting sentencing when he escaped.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Robert M. Smith. It was investigated by the FBI, the Kansas City, Mo., Police Department, the U.S. Marshals Service, the Cass County, Mo., Sheriff’s Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the FBI’s Violent Crimes Task Force, and the Kansas City Criminal Enterprise Task Force.
Missouri Man Sentenced for Bringing Firearms to 2020 Kenosha UnrestRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on December 29, 2022, United States District Judge J.P. Stadtmueller sentenced Michael Karmo (42), of Hartsville, Missouri, to 64 months in federal prison for unlawfully possessing firearms despite a prior felony conviction. Karmo, who had entered a guilty plea to the offense earlier this year, also will spend two years on supervised release following his prison term.
Court filings reflect the following. During the Summer of 2020, Karmo became intrigued by unrest taking place in various cities. On July 1, 2020, he texted a friend, “[A]ll I care about is f**king up antifas and black lives matters mother f**kers these days.” He indicated that he had been “driving back and forth across America going to where they be rioting the hardest.” On August 31, 2020, Karmo and a friend decided to drive from Missouri to the scene of unrest in Kenosha, Wisconsin. Before leaving, Karmo took a photo of himself and his friend holding long guns and sent the photo to a woman in Iowa. Karmo also sent the woman a photo of a firearm with a large drum that he called the “game changer.” After Karmo and his friend stopped to see the woman in Iowa, she became concerned and called the police. FBI agents later arrested Karmo and his friend in Pleasant Prairie, Wisconsin. At the time, Karmo and his friend were in possession of an AR-15 assault rifle, a 12-gauge shotgun, two 9mm handguns, 67 rounds of 9mm ammunition, 131 shotgun shells, what appeared to be a homemade silencer, multiple high-capacity magazines, a firearm muzzle attachment, a drone, body armor, tactical gear, a dagger, a confederate flag, and other items.
Court filings indicate that Karmo’s phone contained videos in which Karmo: (1) detailed the firearms he had brought to Kenosha; (2) talked about being on the streets “when the thugs come out”; (3) stated that he would be ready to act if the police and National Guard were not “handling business”; (4) referred to protestors as “a bunch of victims”; and (5) indicated a desire to “lay out” a protestor chanting “Justice for Jacob Blake.”
This case was investigated by the FBI, with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Kenosha Police Department, the Village of Pleasant Prairie Police Department, the Kenosha County Sheriff’s Office, the Kenosha County District Attorney’s Office, and the Waverly (Iowa) Police Department. It was prosecuted by Assistant United States Attorneys Richard G. Frohling and Margaret B. Honrath.
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(414) 297-1700
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