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13 December 2022
Middle District of Louisiana Takes Part in Department of Justice’s Outreach Program Educating Communities on Hate CrimesRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced the Middle District of Louisiana’s completion of its first “United Against Hate” program. The District was selected as one of the first to pilot the national phasing of this initiative, which is a series of programs designed to help community leaders and the community-at-large to have a better understanding of hate crimes and how to report them to law enforcement. One of the many goals of the United Against Hate Campaign is to proactively engage with members of the community to build trust and increase the likelihood that community members will report acts of hate when they occur.
In May of 2021, Attorney General Merrick Garland announced steps towards the Department of Justice’s enhanced efforts to combat and confront hate crimes. He stated, “Hate crimes and other bias-related incidents instill fear across entire communities and undermine the principles upon which our democracy stands. All people in this country should be able to live without fear of being attacked or harassed because of where they are from, what they look like, whom they love, or how they worship.”
On December 7, 2022, Mr. Gathe, along with members of his office and law enforcement partners who investigate hate crimes, hosted a presentation called “United Against Hate: Identifying, Reporting and Preventing Acts of Hate” at Iglesia Aposento Alto in the Gardere neighborhood of Baton Rouge. Throughout the presentation, members of the Gardere community were provided with informational tools for identifying hate crimes and incidents, instructed on how to prevent and respond to hate crimes and incidents, and introduced to law enforcement professionals to whom they can direct questions and report hate crimes and hate incidents.
U.S. Attorney Gathe stated, “It is a privilege to have been selected by the Department of Justice to participate in the United Against Hate program. Through the United Against Hate program we have the opportunity to collaborate with members of the community to effect positive change, while earning their trust. I must thank our local and federal partners for making our first United Against Hate program a success.”
Through candid conversation, hypothetical examples, and information on defining hate crimes and hate incidents, the United Against Hate program promotes interaction and offers engagement with law enforcement to communities that have unfortunately been subject to discriminatory acts. Program topics include defining hate crimes versus hate incidents; the importance of reporting unlawful acts of hate no matter whether a crime occurred; providing options for responding to hate incidents when situations do not constitute a federal or state crime; and the federal support offered by DOJ as well as state, local, and community resources. The ultimate objective of the program is to foster collaboration in hate crime prevention so that participants leave with a renewed trust that their allegations will be taken seriously, thus increasing the likelihood of reporting hate crimes and incidents.
The role of the numerous U.S. Attorneys’ Offices across the country is to be the nationwide leader in violent crime reduction, including efforts to combat hate crimes. Mr. Gathe assured participants that although every incident may not rise to the level of a prosecutable hate crime, reporting hate crimes and hate incidents allows him and his office to connect incidents across the region and the nation. This interaction also strengthens our alliance with the most targeted communities and enables us to prosecute incidents that do rise to the level of a hate crime. The next United Against Hate program will take place on January 18, 2023.
Michigan Man Pleads Guilty to Hate Crimes for Death Threats Targeting Black Lives Matter SupportersRead the Press Release
The Justice Department announced that Kenneth Pilon, 61, has pleaded guilty in federal district court to willfully intimidating and attempting to intimidate citizens from engaging in lawful speech and protests in support of Black Lives Matter. Pilon will be sentenced on March 23, 2023.
Pilon pleaded guilty to two hate crime charges. Specifically, he pleaded guilty to count 1 of the filed information, which charged him with violating the law by calling nine Starbucks stores in Michigan and telling the employees answering his calls to relay specifically racial threats to Starbucks employees wearing Black Lives Matter T-shirts. Pilon threatened to kill Black people, using a racial slur to refer to his intended victims.
Pilon also pleaded guilty to count 4 of the filed information, which charged him with violating the law by placing a noose inside a vehicle owned by R.S. and D.S. Attached to the noose was a handwritten note, reading: “An accessory to be worn with your ‘BLM’ t-shirt. Happy protesting!”
“The defendant levied racially-motivated death threats against multiple Black people wearing Black Lives Matter t-shirts,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant also used a noose, a vile symbol of hatred and violence that harkens back to the Jim Crow era, to convey a threat of racial violence. Racially-driven threats of violence simply have no place in our society today, and the Department of Justice will continue to prosecute any individual who engages in this type of threatening conduct.”
“The actions of this defendant were threatening to an entire community,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “We hope this conviction sends the message that this type of activity is criminal, and that we will take the necessary action to protect the people of our district.”
“Hate crimes of this nature are meant to not only threaten the victim, but to intimidate an entire community. Because of this wide-ranging impact, hate crime investigations are among the FBI’s highest priorities,” said Special Agent in Charge James A. Tarasca of the FBI Detroit Field Office. “We will continue to work with our law enforcement partners to investigate these crimes and to seek justice for the victims and their communities.”
The FBI investigated the case.
Assistant U.S. Attorney Timothy Turkelson for the Eastern District of Michigan and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.
Michigan Man Pleads Guilty to Hate Crimes for Death Threats Targeting Black Lives Matter SupportersRead the Press Release
WASHINGTON – The Justice Department announced that Kenneth Pilon, 61, has pleaded guilty in federal district court to willfully intimidating and attempting to intimidate citizens from engaging in lawful speech and protests in support of Black Lives Matter. Pilon will be sentenced on March 23, 2023.
Pilon pleaded guilty to two hate crime charges. Specifically, he pleaded guilty to count 1 of the filed information, which charged him with violating the law by calling nine Starbucks stores in Michigan and telling the employees answering his calls to relay specifically racial threats to Starbucks employees wearing Black Lives Matter T-shirts. Pilon threatened to kill Black people, using a racial slur to refer to his intended victims.
Pilon also pleaded guilty to count 4 of the filed information, which charged him with violating the law by placing a noose inside a vehicle owned by R.S. and D.S. Attached to the noose was a handwritten note, reading: “An accessory to be worn with your ‘BLM’ t-shirt. Happy protesting!”
“The defendant levied racially-motivated death threats against multiple Black people wearing Black Lives Matter t-shirts,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The defendant also used a noose, a vile symbol of hatred and violence that harkens back to the Jim Crow era, to convey a threat of racial violence. Racially-driven threats of violence simply have no place in our society today, and the Department of Justice will continue to prosecute any individual who engages in this type of threatening conduct.”
“The actions of this defendant were threatening to an entire community,” said U.S. Attorney Dawn N. Ison for the Eastern District of Michigan. “We hope this conviction sends the message that this type of activity is criminal, and that we will take the necessary action to protect the people of our district.”
“Hate crimes of this nature are meant to not only threaten the victim, but to intimidate an entire community. Because of this wide-ranging impact, hate crime investigations are among the FBI’s highest priorities,” said Special Agent in Charge James A. Tarasca of the FBI Detroit Field Office. “We will continue to work with our law enforcement partners to investigate these crimes and to seek justice for the victims and their communities.”
The FBI investigated the case.
Assistant U.S. Attorney Timothy Turkelson for the Eastern District of Michigan and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.
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Michigan Man Charged with Operating Check-Kiting Scheme that Caused Loss of Nearly $150 MillionRead the Press Release
CLEVELAND – Najeeb Khan, 69, of Edwardsburg, Michigan, was charged in a Bill of Information today with operating a long-running check-kiting scheme that caused a financial loss of nearly $150 million to businesses around the country and KeyBank in the Northern District of Ohio.
The Bill of Information charges Khan with one count of bank fraud and one count of attempted tax evasion.
According to court documents, Khan owned and operated Interlogic Outsourcing Inc. (IOI), a payroll processing company that, at one point, provided services to approximately 6,000 clients.
Beginning in 2014, Khan operated a check-kiting scheme using his company’s business bank accounts to fraudulently obtain funds from various financial institutions, including KeyBank. Khan is accused of using these funds to support the growth of his payroll processing business and fund his lifestyle, which included the purchase of automobiles, aircraft, and vacation homes.
As part of his scheme, Khan wrote checks and made wire transfers between accounts under his control at various banks, a type of fraud commonly known as check-kiting. In a check-kiting scheme, checks are continually written back and forth to fraudulently inflate account balances deceiving banks into honoring checks written with insufficient funds.
According to the Bill of Information, Khan wrote checks from IOI accounts at Lake City Bank for deposit into IOI accounts at KeyBank and then wrote checks from IOI accounts at Berkshire Bank for deposit into IOI accounts at Lake City Bank. To cover the check funds issued from Berkshire Bank, Khan is accused of wiring funds from IOI accounts at KeyBank to IOI accounts at Berkshire Bank.
As part of the scheme, Khan is accused of diverting money from the check-kite to personal and other business accounts.
As a result, Khan caused a total financial loss of nearly $150 million.
Khan was also charged with failure to report income gained from the check-kiting scheme on his annual tax return for the tax years 2014-2017.
This case was investigated by the Cleveland FBI and IRS Criminal Investigations (CI). This case is being prosecuted by Assistant U.S. Attorneys Alejandro A. Abreu and Chelsea S. Rice.
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Miami Woman Arrested on Fentanyl Charges Following Traffic Stop in JamestownRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Elina Martinez, 64, of Miami, FL, was arrested and charged by criminal complaint with possession with intent to distribute, and distribute, 400 grams or more of fentanyl. The charge carries a mandatory minimum penalty of 10 years in prison, and a maximum of life in prison.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on December 7, 2022, a Jamestown Police Detective requested a uniformed patrol officer to conduct a traffic stop of a vehicle that had committed a number of traffic violations. The vehicle was being driven by Martinez, who produced a Florida driver license, as well as the car rental paperwork for the vehicle. After being stopped, the officer observed Martinez make furtive movements, so he requested that she exit the vehicle. With permission, the officer searched the vehicle and discovered a suspicious powder residue in a suitcase. Two K9 dogs were brought to the scene and each alerted to the presence of “drugs” in the area of the driver’s side and officers found a plastic bag of pills secreted in battery of the car. Following a more extensive search, officers recovered approximately 9 lbs. 13 oz. of blue pills, which field tested positive for the presence of fentanyl.
The seized blue pills labeled “m” “30,” which have an approximate value of approximately $1,300,000, are a counterfeit replica of the authentic M30 Oxycodone tablet. Due to the rash of fatalities attributed to fentanyl overdoses, the DEA has issued a “counterfeit pills fact sheet” attempting to warn the community regarding the dangers of using/abusing these counterfeit drugs.
Martinez was ordered held following a detention hearing before U.S. Magistrate Judge H. Kenneth Schroeder, Jr.
The complaint is the result of an investigation by the Jamestown Police Department, under the direction of Chief Timothy Jackson, the Chautauqua County Sheriff Office, under the direction of Sheriff James Quattrone, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Frank A. Tarentino III, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Methuen Man Sentenced to More Than Seven Years in Prison for Armed Bank RobberyRead the Press Release
BOSTON – A Methuen man was sentenced today in federal court in Boston for armed bank robbery.
Caio Costa, 26, was sentenced by U.S. District Court Judge Leo T. Sorokin to 90 months in prison and five years of supervised release. On July 26, 2022, Costa pleaded guilty to one count of armed bank robbery and one count of using and carrying a firearm during the commission of a crime of violence.
On Sept. 25, 2020, Costa, armed with a loaded revolver and donning a black motorcycle helmet, entered a branch of the Salem Five Bank in Tewksbury. Inside the bank, Costa brandished a black revolver and stole over $7,000. Costa then fled on a motorcycle leading to a high-speed chase with law enforcement, reaching speeds up to 100 m.p.h. Costa eventually crashed the motorcycle in Lawrence and escaped on foot. Law enforcement later located the motorcycle helmet and clothing consistent with that worn by Costa during the robbery. The next day, Costa was arrested at a Salem, N.H. motel at which time he was in possession of a large sum of cash.
During an interview with law enforcement, Costa admitted to robbing the Salem Five Bank three days earlier and committing other armed bank robberies between August and September 2020. He also directed law enforcement to a dumpster where a loaded black revolver, black gloves, a black backpack and other items of clothing used during the robbery were recovered.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Middlesex District Attorney Marian Ryan; Tewksbury Police Chief Ryan M. Columbus; Barry Golner, Interim Superintendent of the Lowell Police Department; Wilmington Police Chief Joseph Desmond; and Chelmsford Police Chief James M. Spinney made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Rollins’ Major Crimes Unit prosecuted the case.
Meraux Woman Pleads Guilty to Aiding in Filing False TaxesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CYNTHIA BOWLEY, age 68, of Meraux, pled guilty today to aiding and assisting in the filing of false tax returns, a violation of Title 26, United States Code, Section 7206(2).
According to court documents, in June 2017, BOWLEY assisted in preparing a false tax return for a taxpayer in which BOWLEY included false business losses and false charitable deductions. The resulting refund was over $18,000.00 in excess of the amount of the legitimate taxpayer refund.
BOWLEY faces a maximum sentence of three (3) years of imprisonment, a fine of up to $250,000.00, up to one (1) year of supervised release, and a $100 mandatory special assessment fee. U.S. District Judge Jay C. Zainey set her sentencing for February 28, 2022.
U.S. Attorney Evans praised the work of the Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Maryland Man Indicted in Firearms Trafficking ConspiracyRead the Press Release
Defendant Allegedly Trafficked Firearms to Family Member in the District of Columbia
WASHINGTON – Two men were indicted today on federal charges stemming from a firearms trafficking investigation focused on the summer of 2021.
Demetrius Minor, 31, of Maryland and Donald Willis, 50, of Washington, D.C. were indicted by a grand jury in the U.S. District Court for the District of Columbia on federal charges related to the illegal transfer of firearms. Minor was indicted on a total of four charges including: engaging in the business of dealing in firearms without a license; illegal interstate transfer of firearms; sale of a firearm to a convicted felon; and conspiracy to commit an offense or defraud the United States. Willis was indicted on the charge of conspiracy.
The announcement was made by U.S. Attorney Matthew M. Graves and Christopher Amon, Acting Special Agent in Charge of the Washington Field Division, U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
According to the indictment, the defendants conspired to traffic more than 30 firearms between April and October of 2021. Defendant Minor acted as the straw-purchaser of firearms from licensed gun stores (FFL’s) in the state of Maryland. After purchasing the firearms, Minor would transfer the guns to Willis in Washington, D.C., where Willis would pay Minor before reselling the guns.
The investigation began when two firearms purchased by Minor were recovered in a ten-day span within the District of Columbia. One of those firearms was recovered in November 2021, when Willis was arrested in an unrelated domestic violence incident. In that incident a handgun recovered from Willis had been reported stolen the same day by Minor, which triggered ATF to investigate Minor’s firearms purchases. The investigation revealed that Minor and Willis are related, and that Minor would legally purchase firearms in bulk from multiple gun stores in Maryland before transferring them to Willis, a prohibited person due to previous convictions, in exchange for cash.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilty. Every defendant is presumed innocent until, and unless, proven guilty.
The charge of sale of a firearm to a convicted felon carries a statutory maximum sentence of 10 years in prison. Each of the other charges carries a statutory maximum sentence of five years in prison. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the ATF’s Washington Field Office.
The case is being prosecuted by Assistant United States Attorney’s Samuel Frey and Paul V. Courtney, of the Federal Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia.
Maryland Man Indicted in Firearms Trafficking ConspiracyRead the Press Release
Defendant Allegedly Trafficked Firearms to Family Member in the District of Columbia
WASHINGTON – Two men were indicted today on federal charges stemming from a firearms trafficking investigation focused on the summer of 2021.
Demetrius Minor, 31, of Maryland and Donald Willis, 50, of Washington, D.C. were indicted by a grand jury in the U.S. District Court for the District of Columbia on federal charges related to the illegal transfer of firearms. Minor was indicted on a total of four charges including: engaging in the business of dealing in firearms without a license; illegal interstate transfer of firearms; sale of a firearm to a convicted felon; and conspiracy to commit an offense or defraud the United States. Willis was indicted on the charge of conspiracy.
The announcement was made by U.S. Attorney Matthew M. Graves, Christopher Amon, Acting Special Agent in Charge of the Washington Field Division, U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Robert J. Contee, III, of the Metropolitan Police Department.
According to the indictment, the defendants conspired to traffic more than 30 firearms between April and October of 2021. Defendant Minor acted as the straw-purchaser of firearms from licensed gun stores (FFL’s) in the state of Maryland. After purchasing the firearms, Minor would transfer the guns to Willis in Washington, D.C., where Willis would pay Minor before reselling the guns.
The investigation began when two firearms purchased by Minor were recovered in a ten-day span within the District of Columbia. One of those firearms was recovered in November 2021, when Willis was arrested in an unrelated domestic violence incident. In that incident a handgun recovered from Willis had been reported stolen the same day by Minor, which triggered ATF to investigate Minor’s firearms purchases. The investigation revealed that Minor and Willis are related, and that Minor would legally purchase firearms in bulk from multiple gun stores in Maryland before transferring them to Willis, a prohibited person due to previous convictions, in exchange for cash.
An indictment is merely a formal charge that a defendant has committed a violation of criminal law and is not evidence of guilt. Every defendant is presumed innocent until, and unless, proven guilty.
The charge of sale of a firearm to a convicted felon carries a statutory maximum sentence of 10 years in prison. Each of the other charges carries a statutory maximum sentence of five years in prison. The maximum statutory sentence for federal offenses is prescribed by Congress and is provided here for informational purposes. The sentencing will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
This case is being investigated by the ATF’s Washington Field Office.
The case is being prosecuted by Assistant United States Attorney’s Samuel Frey and Paul V. Courtney, of the Federal Major Crimes Section of the U.S. Attorney’s Office for the District of Columbia.
Man Admits Molotov Cocktail Attack on St. Charles RestaurantRead the Press Release
ST. LOUIS – A disgruntled former employee on Tuesday admitted attacking a St. Charles restaurant with a Molotov cocktail in 2021.
Rashaad Cotton, 25, of St. Louis County, pleaded guilty in U.S. District Court in St. Louis to a felony charge of attempting to commit arson. Cotton admitted that on April 30, 2021 at approximately 6:20 p.m., he threw a Molotov cocktail on a residential street in a suburban area in St. Charles.
Twenty minutes later, Cotton threw a Molotov cocktail on the northeast side of the Sauce on the Side restaurant on Beale Street in St. Charles, Assistant U.S. Attorney John Ware said in court Tuesday. He threw another near the front door. A juvenile female with Cotton threw a Molotov cocktail at a patio area, Cotton’s plea agreement says. The restaurant was open and serving customers. The pair then ran back to Cotton’s vehicle and sped away, but crashed into a curb and were arrested.
Cotton told police that he had been fired from the restaurant the night before and wanted to scare people.
At his sentencing, scheduled for April 19, Cotton could face five to 20 years in prison for the crime.
The case was investigated by the St. Charles Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney John Ware is prosecuting the case.
Madison Man Sentenced for Postal TheftRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Steven Rosa, 29, Madison, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 2 years of probation for theft of mail matter by a postal employee. Judge Conley also imposed a $2,000 fine as part of Rosa’s sentence.
Rosa’s theft was uncovered after a service technician for a portable toilet company found opened U.S. First Class mail in a portable toilet in Sun Prairie, Wisconsin, on December 28, 2020. On January 4, 2021, additional pieces of opened mail were found in the same location, as well as in a second portable toilet. The U.S. Postal Service determined this mail was assigned for delivery to Rosa, who was a mail carrier with the Postal Service at the time.
Rosa ultimately admitted to stealing mail from his route for a period of two weeks, and that he was looking for cash and Amazon gift cards. In total, the Postal Service determined the defendant stole pieces of mail from 39 separate individuals, and approximately $245 in cash and gift cards. This mail included several holiday greeting cards.
In sentencing Rosa, Judge Conley stated that the crime committed by the defendant was a sad offense because of its impact on the community. Judge Conley also stated that the defendant’s conduct was incredibly damaging to the “already suffering” U.S. Postal Service, and that the defendant violated the trust of the public.
The charge against Rosa was the result of an investigation conducted by the U.S. Postal Service, Office of Inspector General. Assistant U.S. Attorney Taylor L. Kraus prosecuted this case.
Long Island Man Convicted of Drug Trafficking and Firearms OffensesRead the Press Release
Earlier today, at the federal courthouse in Central Islip, a federal jury convicted Marlon Thompson on all four counts of an indictment charging him with conspiracy to distribute fentanyl, heroin and cocaine base, the distribution of fentanyl that caused the death of the victim Fredrick Koenig, 36, on Christmas Day 2018, and illegal possession of firearms. The verdict followed a six-day trial before United States District Judge Joan M. Azrack. When sentenced, Thompson faces a mandatory minimum sentence of 20 years’ imprisonment and up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Frank A. Tarentino, Special Agent-in-Charge, Drug Enforcement Administration (DEA); and Rodney J. Harrison, Commissioner, Suffolk County Police Commissioner (SCPD), and Raymond A. Tierney, Suffolk County District Attorney, announced the verdict.
“Today, the defendant was held accountable for trafficking fentanyl that caused the tragic overdose death of a young man on Long Island,” stated United States Attorney Peace. “The large quantities of fentanyl the defendant distributed all over Suffolk County had a devastating impact on the community, including by taking this young man away from his family too soon. This Office, together with our federal and local partners, will continue to work tirelessly to prosecute those who contribute to this serious problem.”
“The overwhelming number of drug poisonings throughout the United States is a driving force for DEA to bring those responsible to justice,” stated DEA Special Agent-in-Charge Tarentino. “Today’s conviction emphasizes the rippling effect of this crisis and its devastation of so many lives. This investigation is one example of our commitment to families who have lost loved ones and how we work every day to stop drug traffickers like Marlon Thompson.”
“This defendant was responsible for fueling addiction by trafficking powerful narcotics that led to the death of a Selden man,” stated SCPD Commissioner Harrison said. “We will never stop working together with our law enforcement partners to hold these dealers accountable as well as community groups to help the addicted get the assistance they need.”
“This case is a stark reminder of the tragic devastation that the opioid epidemic has inflicted regionally, and specifically upon Suffolk County,” said Suffolk County District Attorney Raymond A. Tierney. “My office will continue to work collaboratively with our State and Federal law enforcement partners to aggressively pursue and prosecute dealers whose illicit drugs have caused harm or death to others.”
The evidence proved that, from January 2017 through May 2019, the defendant conspired to distribute fentanyl, heroin and cocaine base throughout Suffolk County. On Christmas Day in 2018, the defendant supplied fentanyl to the victim, who suffered a fatal overdose at his parents’ home in Selden, New York. The defendant continued supplying fentanyl, heroin, and crack in Suffolk County for months after Koenig’s death. When Thompson was arrested, law enforcement recovered fentanyl and drug packaging materials from his basement bedroom, and also seized three illegal guns and ammunition from Thompson’s storage unit. The government’s evidence included testimony from Thompson’s co-conspirators, text messages between the defendant and drug dealers discussing their illicit business, drug paraphernalia, and thousands of dollars of bundled U.S. currency derived from the drug sales seized from the defendant’s residence.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Samantha Alessi, Gabriel Park and Catherine M. Mirabile are in charge of the prosecution with assistance from Paralegal Specialist Adam Bernard.
The Defendant:
MARLON THOMPSON
Age: 41
Selden, New YorkE.D.N.Y. Docket No. 19-CR-596 (S-1) (JMA)
Little Eagle Woman Sentenced for Distribution of Methamphetamine Resulting in DeathRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Little Eagle, South Dakota, woman convicted of Distribution of a Controlled Substance Resulting in Death. The sentencing took place on December 12, 2022.
Samantha Lee Uses Arrow, age 29, was sentenced to 10 years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Uses Arrow was indicted for Distribution of a Controlled Substance Resulting in Death by a federal grand jury in October of 2021. She pleaded guilty on September 26, 2022.
In January 2021, in Little Eagle, within the Standing Rock Sioux Indian Reservation, Uses Arrow injected methamphetamine into another person, who died from methamphetamine toxicity.
This case was investigated by Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency and Division of Drug Enforcement, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Mobridge Police Department. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Uses Arrow was immediately remanded to the custody of the U.S. Marshals Service.
Little Eagle Man Sentenced for BurglaryRead the Press Release
ABERDEEN - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Charles B. Kornmann has sentenced a Little Eagle, South Dakota, man convicted of First Degree Burglary. The sentencing took place on December 12, 2022.
Dustin Jade Red Fox, age 30, was sentenced to 27 months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Red Fox was indicted for First Degree Burglary by a federal grand jury in July of 2022. He pleaded guilty on September 26, 2022.
In June 2022, in Little Eagle, within the Standing Rock Sioux Indian Reservation, Red Fox entered the residence of his former dating partner without permission and assaulted her. Red Fox then attempted to start the residence on fire by burning a blanket on a stove.
This case was investigated by Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency, and the Bureau of Alcohol, Firearms, Tobacco and Explosives. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Red Fox was immediately remanded to the custody of the U.S. Marshals Service.
Lisbon Woman Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A woman who distributed methamphetamine out of her home was sentenced on December 12, 2022, to more than 10 years in federal prison.
Alberta Lynnette Batchelder, age 44, from Lisbon, Iowa, received the prison term after a July 20, 2022 guilty plea to conspiracy to distribute a controlled substance.
Evidence at the plea and sentencing hearings showed that, between January 2021 and June 2021, Batchelder conspired with others to distribute methamphetamine. Specifically, Batchelder was distributing at least an ounce of methamphetamine every week from her home between March 2021 and to June 2021. In addition, on June 9, 2021, during a search of Batchelder’s home, officers found approximately 428.22 grams of ice methamphetamine.
Batchelder was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Batchelder was sentenced to 127 months’ imprisonment. She must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Batchelder is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorneys Adam J. Vander Stoep and Devra Hake and was investigated by the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Linn County Sheriff's Office; the Cedar Rapids Police Department; the Marion Police Department; and the Iowa Division of Narcotics Enforcement, and the Mount Vernon-Lisbon Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-30.
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Las Vegas Woman Pleads Guilty in $7.1 Million Wire Fraud Scheme to Defraud Federal Pandemic ProgramsRead the Press Release
ST. PAUL, Minn. – A Las Vegas woman pleaded guilty today to one count of wire fraud, announced United States Attorney Andrew M. Luger.
According to court documents, from June 2020 through January 2022, Tequisha Solomon, 39, executed a scheme to fraudulently obtain pandemic assistance money from various states, including Minnesota’s Department of Employment and Economic Development (DEED) and California’s Employment Development Department (EDD).
As part of the fraud scheme, Solomon sought Unemployment benefits (UI) from states where she had no lawful basis to receive them. For example, while Solomon resided in Minnesota and Nevada, she falsely claimed to California’s EDD that she worked and resided in Los Angeles, California. As a result, California’s EDD paid Solomon at least $37,000 in periodic UI payments between approximately in 2020 and 2021, during which time she actually resided in Minnesota or Nevada.
Solomon also unlawfully sought to obtain UI benefits from multiple states simultaneously. For instance, in October 2020, Solomon fraudulently claimed UI benefits from the Illinois Department of Employment Security when she was actually residing in Minnesota and was already fraudulently receiving UI benefits from California’s EDD. In March 2021, Solomon fraudulently applied for UI from Minnesota’s DEED, and concealed her fraudulent receipt of UI benefits from California and Illinois.
In addition to fraudulently obtaining pandemic-related benefits for herself, Solomon also assisted others to obtain pandemic-related funds in exchange for a fee, as much as $2,000. Solomon submitted over 200 false and fraudulent applications for UI benefits on behalf of others.
In total, Solomon fraudulently applied for $7,149,032 in pandemic-related funds and caused the United States and multiple state agencies to pay out at least $4,708,191 in the form of fraudulent UI benefits and small business loan proceeds.
Solomon pleaded guilty today to one count of wire fraud in U.S. District Court before Judge Eric C. Tostrud. A sentencing hearing has not been scheduled yet.
This case is the result of an investigation conducted by the FBI, the U.S. Department of Labor-Office of Inspector General, and the U.S. Postal Inspection Service, with assistance from the St. Paul Police Department and the California Employment Development Department.
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
La Crosse Man Sentenced to 6 Years for Receiving Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Kristopher L. Halverson, 32, of La Crosse, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to six years in prison for receiving child pornography. This term of imprisonment will be followed by 20 years of supervised release. Halverson pleaded guilty to this charge on August 10, 2022.
In January 2021, the Grand Ledge Police Department in Grand Ledge, Michigan responded to a report of inappropriate communication between a 12-year-old female and a male, later identified as Kristopher Halverson. Based on this complaint, the FBI obtained a search warrant for Halverson’s home in La Crosse County, Wisconsin, and searched a car where Halverson was found. During the search of the car, officers found an iPhone on the passenger floorboard. The iPhone had an active Google Duo phone call running with a different girl’s contact name.
After further analysis of the phone, agents were able to identify the Google Duo contact as a 15-year-old girl from Texas. The girl was interviewed and disclosed that she met Halverson while gaming and he began sending her gifts. The defendant repeatedly asked the girl to send explicit images to him and she ultimately did so.
The charge against Halverson was the result of an investigation conducted by the FBI, the Grand Ledge (Michigan) Police Department, and the Coulee Region Internet Crimes Against Children Task Force, that includes the La Crosse Police Department, La Crosse County Sheriff’s Department, Village of Holmen Police Department, Onalaska Police Department, West Salem Police Department and Town of Campbell Police Department.
Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Kansas Veteran Sentenced for Defrauding the VARead the Press Release
KANSAS CITY, KAN.– A Kansas man was sentenced today to 37 months in prison and ordered to pay more than $537,000 in restitution for defrauding the U.S. Department of Veterans Affairs (VA) out of disability benefits.
In August 2022, a federal jury convicted Bruce Hay, 54, of Greeley, a U.S. Army veteran, of six counts of wire fraud and 10 counts of theft of government funds. Hay misrepresented and exaggerated the extent of symptoms related to a purported conversion disorder diagnosis to receive more than $500,000 in VA disability benefits to which he was not entitled.
“Misrepresenting symptoms to the VA to fraudulently obtain benefits takes resources from deserving veterans and will not be tolerated,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG will continue to vigorously investigate those who would steal from VA benefits programs and taxpayers.”
The Department of Veterans Affairs – Office of the Inspector General and the Social Security Administration – Office of the Inspector General investigated the case.
Assistant U.S. Attorneys Ryan J. Huschka and D. Christopher Oakley prosecuted the case.
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Justice Department Secures Settlement with Trucking Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Justice Department announced that it has secured a settlement agreement with Navajo Express, a Colorado-based trucking company that operates nationwide. The settlement resolves the department’s determination that Navajo Express violated the Immigration and Nationality Act (INA) by discriminating against non-U.S. citizen workers when checking their permission to work in the United States.
“When employers reject workers’ valid documentation proving their permission to work and demand other types of documentation, they construct unnecessary hurdles that can mean the difference between a worker getting a job or not,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold employers accountable for discriminating against workers because of citizenship, immigration status or national origin.”
The department’s investigation began after a non-U.S. citizen complained that Navajo Express refused to accept valid documentation proving his permission to work and demanded a different document from him. The department’s investigation determined that Navajo Express routinely required lawful permanent residents to show their permanent resident cards (known as “green cards”) to prove their permission to work, even when they had already presented other valid documentation. The investigation also revealed that Navajo Express had a policy of unlawfully requiring permanent residents to provide new permanent resident cards when their old permanent resident cards expired, even though such documentation is unnecessary.
Under the terms of the settlement, Navajo Express will pay more than $40,000 in civil penalties to the United States, train staff on the INA’s anti-discrimination provision, review and revise their employment policies, and be subject to departmental monitoring for a two-year period.
Federal law allows all workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific documents because of a worker’s citizenship, immigration status or national origin. Indeed, many non-U.S. citizens, including lawful permanent residents, refugees and asylees, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens (such as driver’s licenses and unrestricted Social Security cards). Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine. In addition, if a lawful permanent resident provides an unexpired permanent resident card to prove their permission to work, employers must not request new documentation if the permanent resident card later expires.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Find more information on how employers can avoid discrimination when verifying permission to work on IER’s website. Learn more about how IER protects workers’ rights in this video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Secures Award Against Tennessee Landlord for Sexually Harassing Female TenantsRead the Press Release
Following a four-day trial, a federal jury awarded $70,500 in damages to six women who rented homes in Lexington, Tennessee, from defendant Chad David Ables. The jury found that Ables sexually harassed these women at his properties, located in or near his trailer park known as Pop’s Cove, in violation of the Fair Housing Act.
The Justice Department’s lawsuit, filed in December 2018, alleged that since 2012, Ables subjected female tenants to a continued barrage of vulgar sexual comments, unwelcome physical touches, propositions for sex and offers to reduce rent in exchange for sex. Trial was originally scheduled for May 2020, but was postponed several times because of the COVID-19 pandemic.
“The Justice Department will continue to take action against landlords who sexually harass and exploit vulnerable tenants,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This verdict recognizes the significant sexual abuse that female tenants were subjected to by the defendant.”
“No one should have to endure sexual harassment in order to have a safe and secure living situation,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I am gratified the jury held this landlord accountable for these unlawful acts.”
“It is illegal for landlords to subject their tenants to any form of sexual harassment,” said Principal Deputy Assistant Secretary Demetria L. McCain of the Office of Fair Housing and Equal Opportunity at the Department of Housing and Urban Development (HUD). “HUD is pleased that the Department of Justice took appropriate action to put a halt to this unlawful behavior and applauds the decision by the jury.”
The case began when two women filed a sexual harassment complaint about Ables with HUD. HUD investigated the matter and referred it to the Justice Department, which filed this lawsuit. The women intervened in the lawsuit and were represented by West Tennessee Legal Services. The Justice Department later sought relief on behalf of five additional women, and one of the intervenors dropped out of the lawsuit.
The jury award includes compensatory damages for the emotional harms the women have suffered as a result of Ables’ conduct and punitive damages to punish the defendant. The Justice Department also informed the District Court Judge that it intends to seek a civil penalty against Ables to vindicate the public interest and a court order prohibiting Ables from managing the rental properties or having contact with residents or prospective tenants.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The initiative, which is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country, seeks to raise awareness about and address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative, the department has filed 26 lawsuits alleging sexual harassment in housing and recovered over $9.6 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, property manager or rental agent, you may contact the Justice Department at 1-844-380-6178, or submit an online report at https://civilrights.justice.gov/. Reports also may be made by contacting HUD at 1-800-669-9777, or by filing an online complaint at https://www.hud.gov/fairhousing/fileacomplaint%20.
The Fair Housing Act prohibits discrimination in housing based on sex, race, color, national origin, religion, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Justice Department Secures Award Against Tennessee Landlord for Sexually Harassing Female TenantsRead the Press Release
Memphis, TN – Following a four-day trial, a federal jury awarded $70,500 in damages to six women who rented homes in Lexington, Tennessee, from defendant Chad David Ables. The jury found that Ables sexually harassed these women at his properties, located in or near his trailer park known as Pop’s Cove, in violation of the Fair Housing Act.
The Justice Department’s lawsuit, filed in December 2018, alleged that since 2012, Ables subjected female tenants to a continued barrage of vulgar sexual comments, unwelcome physical touches, propositions for sex and offers to reduce rent in exchange for sex. Trial was originally scheduled for May 2020, but was postponed several times because of the COVID-19 pandemic.
“The Justice Department will continue to take action against landlords who sexually harass and exploit vulnerable tenants,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This verdict recognizes the significant sexual abuse that female tenants were subjected to by the defendant.”
“No one should have to endure sexual harassment in order to have a safe and secure living situation,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I am gratified the jury held this landlord accountable for these unlawful acts.”
“It is illegal for landlords to subject their tenants to any form of sexual harassment,” said Principal Deputy Assistant Secretary Demetria L. McCain of HUD’s Office of Fair Housing and Equal Opportunity. “HUD is pleased that the Department of Justice took appropriate action to put a halt to this unlawful behavior and applauds today's decision by the jury.”
The case began when two women filed a sexual harassment complaint about Ables with the Department of Housing and Urban Development (HUD). HUD investigated the matter and referred it to the Justice Department, which filed this lawsuit. The women
intervened in the lawsuit and were represented by West Tennessee Legal Services. The Justice Department later sought relief on behalf of five additional women, and one of the intervenors dropped out of the lawsuit.
The jury award includes compensatory damages for the emotional harms the women have suffered as a result of Ables’s conduct and punitive damages to punish the defendant. The Justice Department also informed the District Court Judge that it intends to seek a civil penalty against Ables to vindicate the public interest and a court order prohibiting Ables from managing the rental properties or having contact with residents or prospective tenants.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The initiative, which is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country, seeks to raise awareness about and address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative, the department has filed 26 lawsuits alleging sexual harassment in housing and recovered over $9.6 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, property manager, or rental agent, you may contact the Justice Department at 1-844-380-6178, or submit an online report at https://civilrights.justice.gov/. Reports also may be made by contacting HUD at 1-800-669-9777, or by filing an online complaint at https://www.hud.gov/fairhousing/fileacomplaint%20.
The Fair Housing Act prohibits discrimination in housing based on sex, race, color, national origin, religion, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
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For more information, please contact Public Information Officer Cherri Green at 901- 544-4231 or [email protected]. Follow@WDTNNews on Twitter for office news and updates.
Jacksonville Man Pleads Guilty to Possessing Images of Young Children Being Sexually AbusedRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Reece Christopher Depew (24, Jacksonville) has pleaded guilty to possessing images depicting young children being sexually abused. Depew faces a maximum penalty of 20 years’ imprisonment and a potential lifetime of supervised release. Depew was arrested on January 17, 2020, and has been detained since that time.
According to court documents, the National Center for Missing and Exploited Children received a CyberTip report from a company that operates an online social messaging application (“App”). This report stated that a particular user named “Android 18,” later identified as Depew, had uploaded a number of child sexual abuse images over the internet to an online chat platform on the App. Further investigation revealed that the internet protocol address used to upload this material traced back to Depew’s residence in Jacksonville.
On January 17, 2020, FBI agents executed a federal search warrant at Depew’s residence. During an interview, Depew admitted that he used private messaging apps to talk to others online about sex, he had viewed and traded child sexual abuse images during 2019, and that he had downloaded these images from the internet using his laptop computer. Depew was shown a particular image depicting an infant being sexually abused, and admitted that he had posted this image in a chat room on the App. A review of Depew’s laptop computer revealed that it contained one image depicting a young child being sexually abused and at least 200 images of cartoon or “anime” pornography, some featuring cartoon-stylized children.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children in person and online, and to identify and rescue child victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Illinois Man Sentenced for Conspiring to Transport Stolen Merchandise Across State LinesRead the Press Release
ERIE, Pa. - A former resident of Maple Park, Illinois, has been sentenced in federal court to 37 months in jail and ordered to pay restitution in the amount of $5,787 on his conviction of conspiracy to transport stolen goods across state lines, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Shawn Ashley Pena, 40.
According to information presented to the court, from March 2018 to May 2018, Pena and a co-defendant conspired to steal merchandise from business and retail establishments in multiple states and transport the stolen items across state lines. As part of the scheme, Pena admitted that he and his co-defendant stole jewelry from the former K-Mart in Millcreek Township and transported the stolen merchandise to New York as they continued their multi-state theft spree.
Prior to imposing sentence, Judge Baxter noted that Pena had nineteen prior convictions and had failed to give any indication that he was interested in working hard and avoiding future criminal activity.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Pena.
Illinois Attorney Charged with Scheming to Take Control of Medical Device Company Through FraudRead the Press Release
CHICAGO — An Illinois attorney has been indicted on federal criminal charges for allegedly waging a multi-year campaign to take control of a medical device company through fraud.
MARK ALAN SCHWARTZ, 61, of Dorado, Puerto Rico, is charged with six counts of wire fraud and two counts of aggravated identity theft, according to an indictment returned in U.S. District Court in Chicago. Each count of wire fraud is punishable by up to 20 years in federal prison, while each count of aggravated identity theft is punishable by a mandatory two-year sentence. Schwartz pleaded not guilty Tuesday at his arraignment before U.S. Magistrate Judge Young B. Kim.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and John S. Morales, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the U.S. Trustee Program and the U.S. Secret Service. The government is represented by Assistant U.S. Attorney Brian Havey.
According to the charges, Schwartz in 2012 partnered with a doctor to form a company to develop, market, and sell a surgical product the doctor had invented. The doctor served as chairman of the company’s board of directors, while Schwartz was its chief executive officer and secretary. Schwartz and the doctor later split the company into two entities, incorporating them in Puerto Rico, and embarked on a funding drive that raised more than $10 million from outside investors, including family members, friends, and colleagues in Illinois.
According to the indictment, a dispute arose between Schwartz and the doctor, resulting in Schwartz’s termination. Schwartz refused to accept his termination and relinquish control of assets, records, and bank accounts to which he had access, the indictment states. Schwartz sought to take over the companies through various fraudulent methods, including making misrepresentations to banks, using the doctor’s identity to open bank accounts without his knowledge, fabricating company records, arbitrarily issuing valuable shares of stock to himself, filing false civil lawsuits, and intimidating the doctor and his family through belligerent and threatening confrontations.
The indictment alleges that after Schwartz’s termination, he transferred more than $3.9 million from a corporate bank account to accounts he controlled in an effort to coerce the doctor to reinstate Schwartz as CEO and surrender control of the company to Schwartz.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
Greenwich Psychologist Admits Defrauding Medicaid, Medicare and Private InsurersRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that MICHAEL LONSKI, 71, of Greenwich, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to health care fraud.
According to court documents and statements made in court, Lonski is a licensed psychologist who, along with another licensed psychologist (“Individual 1”), has operated a practice out of his home office in Old Greenwich. Lonski and Individual 1 were authorized providers for the Connecticut Medicaid program (“Medicaid”), Medicare and other health care benefit programs. Lonski assumed responsibility for submitting claims for reimbursement for services allegedly provided by himself and by Individual 1, both at their home office and at various skilled nursing facilities within Connecticut.
In pleading guilty, Lonski admitted that he billed insurers for services that he knew were not rendered, including by billing for patients who were deceased, for dates of service when he was out of the country, for dates of service when Individual 1 was out of the country, and for dates of service when he was hospitalized. These fraudulent claims resulted in a loss of over $2,651,296, including a loss of $1,157,292 to the Connecticut Medicaid program and a loss of $119,092 Medicare.
Health care fraud carries a maximum term of imprisonment of 10 years. Judge Nagala scheduled sentencing for March 10. As part of his plea, Lonski has agreed to pay full restitution.
Lonski is released on bond pending sentencing.
In 2002, Lonski settled a federal lawsuit alleging health care fraud offenses, which was brought by the government in the Southern District of New York. Lonski agreed to pay $4 million in restitution and was excluded from participating in the Medicare program from April 2003 to November 2007. He was reinstated to the Medicare program in approximately December 2008.
This investigation has been conducted by the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Greenwich Man Charged with Child Pornography OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Matthew B. Millhollin, Special Agent in Charge, Homeland Security Investigations (HSI), Boston, announced that CHRISTOPHER BATES JR., 36, of Greenwich, was arrested today on a federal criminal complaint charging him with child pornography offenses.
Bates appeared before U.S. Magistrate Judge S. Dave Vatti in Bridgeport and was released on a $300,000 bond under electronic monitoring.
As alleged in court documents, an international law investigation revealed that an IP address at Bates’ residence was being used to access the dark web to view images and videos depicting the sexual abuse of children. On November 30, 2022, HSI agents interviewed Bates, who consented to a search of his electronic devices. A forensic preview of one of his laptops revealed approximately 1,000 images depicting the sexual abuse of children, including infants. A full forensic examination of his electronic devices is ongoing.
The complaint charges Bates with receipt of child pornography, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years, and possession of child pornography, an offense that carries a maximum term of imprisonment of 20 years.
U.S. Attorney Avery stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI) with the assistance of the Greenwich Police Department. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
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.
Fort Totten, ND, Men Sentenced to Federal Prison for Sexual Abuse of an Incapacitated PersonRead the Press Release
Fargo – United States Attorney Mac Schneider announced Reese Anthony Ironshield, age 34 and Kyle Jordan Langstaff, Sr., age 32, both from Fort Totten, ND, appeared before Chief Judge Peter D. Welte, U.S. District Court, Fargo, ND, and were sentenced to federal prison. On August 26, 2022, Ironshield plead guilty to Sexual Abuse of an Incapacitated Victim and Tampering with a Witness and Langstaff plead guilty to two counts of Sexual Abuse of an Incapacitated Victim. Judge Welte sentenced Ironshield to serve 87 months in prison with five years of supervised release to follow for both offenses. Langstaff was sentenced to serve 58 months in prison with five years of supervised release to follow for both offenses.
On November 7, 2021, while on the Spirit Lake Reservation in Fort Totten, ND, Ironshield and Langstaff engaged in sexual acts with a victim who was unresponsive and unaware. When they were interrupted by three juveniles, they ran away but returned a short time later to get personal items they left behind. One juvenile asked what they were doing and Ironshield pulled a black handgun from his waistband and threatened the juvenile never speak about what he had witnessed.
This case was investigated the Federal Bureau of Investigation and prosecuted by the United States Attorney’s Office, with United States Attorney Lori H. Conroy assigned to the case.
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Former corrections officer sentenced for distributing drugs inside jailRead the Press Release
CLARKSBURG, WEST VIRGINIA – Joshua Quinn, a former corrections officer at the North Central Regional Jail (NCRJ) in Greenwood, West Virginia, was sentenced today to 12 months and one day of incarceration for selling drugs to inmates, United States Attorney William Ihlenfeld announced.
Quinn, of Marietta, Ohio, 28, pleaded guilty in October 2022 to one count of “Possession with Intent to Distribute Methamphetamine and Buprenorphine.” Quinn admitted to delivering methamphetamine and buprenorphine, as well as other contraband, to inmates at the NCRJ from September 2020 to February 2021.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Harrison County Sheriff’s Office investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Former Roswell Park Nurse Sentenced for Tampering with Medications Intended for PatientsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Kelsey A. Mulvey, 30, of Grand Island, NY, who was convicted of tampering with a consumer product, was sentenced to serve 37 months in prison by Chief U.S. District Judge Elizabeth A. Wolford.
Assistant U.S. Attorney Misha A. Coulson, who handled the case, stated that between February and June 2018, Mulvey, who worked as a registered nurse at Roswell Park Comprehensive Center, tampered with and stole controlled medications, including Dilaudid, from various medication dispensing machines located throughout the hospital, which tracked and held controlled substances meant for Rowell Park patients. She did so to satisfy her addiction. Mulvey utilized the patient medical record database to search for patients specifically prescribed hydromorphone, because to access the dispensing machine, she had to first access patient profiles. At times, Mulvey would divert vials of controlled medications from the dispensing machine and not administer the medication to any patient.
On June 27, 2018, a scheduled vacation day, Mulvey was observed accessing a dispensing machine, carrying a backpack, and exiting a medication room in which she was not assigned. It was later determined that Mulvey had accessed the drawer for hydromorphone. She was subsequently placed on administrative leave and resigned in lieu of termination.
From June to July 2018, there was a spate of waterborne infections at Roswell Park, during which six patients became ill. An investigation by the hospital concluded that tampering of compounded hydromorphone vials was the cause.
The sentencing is the culmination of an investigation by the Food and Drug Administration, Office of Criminal Investigations, under the direction of Special Agent in Charge Fernando McMillan, the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Michael Stansbury, the New York State Department of Education, Office of Professional Discipline, and the New York State Attorney General’s Office, under the direction of Attorney General Letitia James.
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Former Police Chief Admits Stealing and Using Heroin Seized in Two Federal InvestigationsRead the Press Release
PITTSBURGH, PA – A former Elizabeth Borough Police Chief pleaded guilty in federal court to a charge of theft of government property, United States Attorney Cindy K. Chung announced today.
Timothy L. Butler, Jr., 46, of Finleyville, PA, pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that from June 2017 until December 2018, Butler, the former Chief of Police, stole hundreds of bricks and bundles of heroin from the Elizabeth Borough Police Department for his own personal use. The heroin was evidence that had been seized in two federal drug trafficking investigations and stored in the evidence locker at the police station.
Judge Horan scheduled sentencing for April 4, 2023, at 9:00 a.m. The law provides for a maximum total sentence of not more than 10 years in prison, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Butler.
Former Gymnastics Coach Sentenced to 10 Years in Prison for Knowing Possession of Material Involving the Sexual Exploitation of MinorsRead the Press Release
SACRAMENTO, Calif. — Keith Willette, 59, of Cameron Park, was sentenced today to 10 years in prison and a lifetime of supervised release for knowing possession of material involving the sexual exploitation of minors, U.S. Attorney Phillip A. Talbert announced.
According to court documents, for decades, Willette was a gymnastics coach to young girls in multiple states throughout the country. In the mid-1980s, he met Juvenile Victim 2 and began spending significant amounts of time with her under the auspices of high-level gymnastics training. Willette began continually sexually abusing Juvenile Victim 2 from a young age, and used her to produce child pornography while he lived in the state of Washington. When Willette moved to El Dorado County in the late 1990s, he brought the sexually explicit videos and photographs he took of Juvenile Victim 2 to his home, and kept them until about May of 2004.
In the early 2000s, Willette became the gymnastics coach for Juvenile Victim 1, who was a talented 15-year-old athlete at the time. When Juvenile Victim 1 was 16 or 17 years old, Willette began taking sexually explicit photographs of her, which he continued to knowingly possess until about April of 2004.
A restitution hearing to determine how much Willette owes Juvenile Victims 1 and 2 will be held on Feb. 28, 2023.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Rosanne L. Rust and Christina McCall and Trial Attorneys Alicia Bove and Jessica L. Urban with the Child Exploitation and Obscenity Section of the Department of Justice, Criminal Division, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Five Russian Nationals, Including Suspected FSB Officer, and Two U.S. Nationals Charged with Helping the Russian Military and Intelligence Agencies Evade SanctionsRead the Press Release
A 16-count superseding indictment was unsealed yesterday in Brooklyn charging five Russian nationals, Yevgeniy Grinin, Aleksey Ippolitov, Boris Livshits, Svetlana Skvortsova and Vadim Konoshchenok with conspiracy and other charges related to a global procurement and money laundering network on behalf of the Russian government. Konoshchenok, a suspected officer with Russia’s Federal Security Service (FSB), was arrested in Estonia on December 6, 2022 and will undergo extradition proceedings to the United States. Grinin, Ippolitov, Livshits and Skvortsova remain at large. Estonian authorities searched a warehouse used by Konoshchenok and recovered approximately 375 pounds worth of U.S.-origin ammunition. Alexey Brayman, a lawful permanent resident of the United States residing in New Hampshire, and Vadim Yermolenko, a U.S. citizen residing in New Jersey, were also arrested and charged as part of scheme.
As alleged, the defendants were affiliated with Serniya Engineering and Sertal LLC, Moscow-based companies that operate under the direction of Russian intelligence services to procure advanced electronics and sophisticated testing equipment for Russia’s military industrial complex and research and development sector. Serniya and Sertal operated a vast network of shell companies and bank accounts throughout the world, including the United States, that were used in furtherance of the scheme to conceal the involvement of the Russian government and the true Russian end users of U.S.-origin equipment. The defendants unlawfully purchased and exported highly sensitive and heavily regulated electronic components, some of which can be used in the development of nuclear and hypersonic weapons, quantum computing and other military applications.
Following Russia’s invasion of Ukraine in February 2022, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) and the Department of Commerce (DOC) Bureau of Industry and Security (BIS) levied sanctions against Serniya, Sertal, Yevgeniy Grinin and several companies used in the scheme, as well as multiple individuals affiliated with the network, including defendant Yevgeniy Grinin, calling them “instrumental to the Russian Federation’s war machine.”
As alleged in the indictment, Sertal was licensed to conduct highly sensitive and classified procurement activities by Russia’s Federal Security Service (FSB), Russia’s principal security agency and the main successor agency to the Soviet Union’s KGB. The Serniya network’s clients included State Corporation Rostec, the state-owned defense conglomerate; State Atomic Energy Corporation Rosatom (Rosatom); the Ministry of Defense; the Foreign Intelligence Service (SVR); and various components of the FSB, including the Department of Military Counterintelligence and the Directorate for Scientific and Technological Intelligence, commonly known as “Directorate T.”
Merrick B. Garland, United States Attorney General, Breon Peace, United States Attorney for the Eastern District of New York, Lisa O. Monaco, Deputy Attorney General for the Department of Justice, Christopher A. Wray, Director, Federal Bureau of Investigation (FBI), Michael J. Driscoll, Assistant Director-in-Charge, FBI, New York Field Office, Matthew Axelrod, Assistant Secretary of Commerce for Export Enforcement, U.S. Department of Commerce, and Andrew Adams, Director, Task Force KleptoCapture, announced the charges.
“The Department of Justice and our international partners will not tolerate criminal schemes to bolster the Russian military’s war efforts,” said Attorney General Merrick B. Garland. “With three of the defendants now in custody, we have disrupted the procurement network allegedly used by the defendants and Russian intelligence services to smuggle sniper rifle ammunition and sensitive electronic components into Russia. The Justice Department will continue to vigorously enforce our economic sanctions and export controls against those who enable the Russian government to continue its unjust war in Ukraine. I am grateful for the tireless efforts of the Department’s Task Force KleptoCapture, the National Security Division, the Office of International Affairs, the U.S. Attorney’s Office for the Eastern District of New York, and the FBI on this case.”
“As alleged, the defendants perpetrated a sophisticated procurement network that illegally obtained sensitive U.S. technology to facilitate the Russian war machine,” stated United States Attorney Peace. “Our Office will not rest in its vigorous pursuit of persons who unlawfully procure U.S. technology to be used in furtherance of Russia’s brutal war on democracy.”
“Today the Department of Justice proves once again that we will relentlessly pursue those who support the Russian war machine by evading sanctions and export controls,” stated Deputy Attorney General Monaco. “By exposing the defendants’ smuggling of ammunition and transfer of sensitive U.S. technologies — from quantum computing to hypersonic weapons development —the Department of Justice is holding accountable those who are fueling Russia’s unlawful and unprovoked aggression in Ukraine.”
“The FBI’s work, with our partners, to identify and stop illegal transfers of weapons and dual use-technology to Russia shows that we can and will reach around the world to keep Americans safe,” said FBI Director Christopher Wray. “The industries that these illegal transfers could support – quantum computing, hypersonic weapons – pose great danger in the hands of our adversaries. The FBI will remain relentless against illegal transfers that support such industries in hostile nations, while we also continue to focus on protecting strategic technology innovation here at home.”
“We continue to protect military and dual-use technologies from adversaries seeking to undermine the United States or bring harm to our allies. Russia has shown it will use any means necessary to skirt our laws, including illegally procuring sensitive electronic components, for the purpose of bolstering its intelligence services and military wartime capabilities. Today’s actions represent outstanding collaborative work by FBI New York and our partners who have relentlessly disrupted these illicit activities, a mission that has become increasingly more critical following Russia's invasion of Ukraine, and sends a strong message to those who jeopardize the national security of the United States,” stated FBI Special Agent-in-Charge Driscoll.
“The powerful export controls we’ve put in place have been successful in isolating Russia from the global economy,” said Assistant Secretary of Commerce for Export Enforcement Axelrod. “Today’s coordinated DOJ and Commerce enforcement actions demonstrate our vigilance in uncovering Russian tactics to illicitly acquire the items they need to keep their brutal war going.”
“From the outset of the Task Force, robust enforcement of U.S. export controls and restrictions on the transfer of sensitive technology has been a key strategic priority,” said Task Force KleptoCapture Director Adams. “Today’s indictment demonstrates the reach of those controls and the United States’ commitment to choking off access to military grade equipment by the Russian regime. We will continue the steady pace of seizures, indictments and arrests, while the Kremlin continues shopping for spare parts in North Korea.”
As alleged in the indictment, Ippolitov received requests from Russian end users and relayed them to Grinin and Skvortsova, who were both employees of Sertal. Grinin and Skvortsova secured funding and shipping routes for the transactions, and tasked Livshits with procuring the items from U.S. companies. Livshits, a former resident of Brooklyn, New York, opened and controlled a variety of shell companies and associated bank accounts in the New York City area, which he used to route shipments and layer financial transactions in furtherance of the scheme. Livshits also interfaced directly with U.S. companies—often using the alias “David Wetzky”—and made materially false statements about how the items would be used and the ultimate end user.
Based in the United States, Brayman and Yermolenko would fabricate shipping documents and invoices, repackaging and reshipping items to intermediate destinations around the world—including to Konoshchenok in Estonia—before eventually arriving in Russia. Yermolenko and Brayman also helped Livshits set up and manage dozens of shell companies and corresponding bank accounts throughout the U.S. that were used in the scheme.
Konoshchenok—a self identified “Colonel” in the FSB—would ship or physically smuggle U.S.-origin items from Estonia to Russia, including dual-use electronics, military-grade tactical ammunition and other export-controlled items. As alleged in the indictment, on October 27, 2022, Konoshchenok was stopped at the Estonian border with 35 different types of semiconductors and other electronic components ordered by Livshits, as well as thousands of U.S.-made 6.5mm bullets, which are used in military sniper rifles. On November 24, 2022, Konoshchenok was again stopped attempting to cross into Russia with approximately twenty cases containing thousands of U.S.-origin bullets, including tactical rounds and .338 military sniper rounds. Konoshchenok discussed “fabricating” business records with Livshits to conceal the ammunition shipments, on one occasion describing them as “auto parts.” Incident to Konoshchenok’s arrest, Estonian authorities searched a warehouse used by Konoshchenok and recovered approximately 375 pounds worth of ammunition.
If convicted, the defendants face a maximum of 30 years’ imprisonment. The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Artie McConnell and Craig Heeren are in charge of the prosecution, along with Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section, with assistance from Litigation Analyst Ben Richmond. The United States thanks the Estonian Internal Security Service and the Prosecutor’s Office for their valuable support.
The Defendants:
Alexey Ippolitov
AGE: 57
Moscow, RussiaYEVGENIY GRININ age: 44
Moscow, RussiaBORIS LIVSHITS
Age: 52
St. Petersburg, RussiaSVETLANA SKVORTSOVA
AGE: 41
Moscow, RussiaVADIM KONOSHCHENOK
AGE: 48
Tallin, EstoniaALEXEY BRAYMAN
AGE: 35
Merrimack, New HampshireVADIM YERMOLENKO
AGE: 41
Upper Saddle River, New JerseyE.D.N.Y. Docket No. 22-CR-409 (HG)
Fentanyl Traffickers Sentenced to Almost 22 Years and Almost 17 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT SHANNON, a/k/a “Tank,” was sentenced to 260 months in prison today for his participation in a large-scale narcotics trafficking operation that sold kilogram quantities of fentanyl, heroin, and cocaine and for possessing firearms to protect the drug operation. SHANNON was convicted following a week-long jury trial in August 2022 before U.S. District Judge John P. Cronan, who imposed today’s sentence. On November 9, 2022, Judge Cronan sentenced co-defendant KAREEM RODERIQUE, a/k/a “Ernest Tucker,” to 200 months in prison.
U.S. Attorney Damian Williams said: “The sentence today reaffirms our judicial system’s unflinching commitment to hold narcotics traffickers accountable. Fentanyl, heroin, and cocaine promote violence, ruin lives, and destroy communities. These defendants sought to profit from trafficking significant quantities of these horrific drugs, using firearms to protect their operation, and were justly punished for their crimes.”
According to court documents and the evidence presented at the trial of SHANNON:
SHANNON, RODERIQUE, co-defendant NIKIA KING, and others ran a large-scale narcotics operation out of a narcotics mill and stash house in East Orange, New Jersey, while obtaining drug supplies and conducting a narcotics deal in the Southern District of New York. The defendants obtained large quantities of fentanyl, heroin, and cocaine and utilized their stash house to mix, bag up, and prepare the drugs to sell to other drug dealers, who sold the drugs in the community. The defendants also obtained and kept two loaded firearms in the stash house to protect their drugs and supplies.
On October 27, 2020, law enforcement agents arrested RODERIQUE in the Bronx as he was attempting to purchase five kilograms of cocaine for the drug trafficking operation. Later that night, law enforcement agents arrived at the East Orange stash house as SHANNON and KING were exiting the residence. Shannon was carrying a weighted black bag from the residence to his car, where he was arrested. Inside of the vehicle, law enforcement agents recovered the weighted bag, which Shannon had attempted to hide behind the car’s dashboard. The black bag contained over 1,000 individual glassines envelopes of fentanyl and an additional bag contained over 1,000 doses of powdered fentanyl. Law enforcement agents searched the East Orange stash house — which was protected by security cameras and a reinforced door. Inside the stash house, law enforcement agents found approximately three kilograms of fentanyl, heroin, black tar heroin, narcotics cutting agent, cash, and two loaded firearms. Agents also discovered narcotics trafficking supplies and equipment used to weigh, package, and sell fentanyl, heroin, and cocaine on the street, such as a large freestanding kilogram press, numerous grinders and blenders, and worktables.
* * *
SHANNON was convicted after trial of narcotics conspiracy and using and carrying firearms during and in relation to, or possessing firearms in furtherance of, the narcotics conspiracy. As part of the same case, RODERIQUE previously pled guilty in March 2022 before Judge Cronan to narcotics conspiracy, and co-defendant KING previously pled guilty in May 2022 before Judge Cronan to narcotics conspiracy. KING was sentenced by Judge Cronan to 60 months in prison in October 2022.
In addition to the prison terms, Judge Cronan sentenced SHANNON, 46, of Jersey City, New Jersey, to five years of supervised release; RODERIQUE, 39, of Raleigh, North Carolina, to five years of supervised release; and KING, 44, of Newark, New Jersey, to five years of supervised release.
Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration.
The prosecution of this case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorneys Michael R. Herman, Brandon D. Harper, and Jared Lenow, with the assistance of Paralegal Specialist Samuel Dobro, are in charge of the prosecution.
Federal Jury Finds President of Yacht Charter Brokerage Company Guilty of Obstruction of A Federal Agency ProceedingRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces that a federal jury has found Patrick Dines (74, St. Petersburg) guilty of endeavoring to obstruct a proceeding pending before the United States Coast Guard (USCG). Dines faces a maximum penalty of five years in federal prison. His sentencing hearing has not yet been set. Dines had been indicted on March 1, 2022.
According to evidence presented at trial, Dines was the president of “FYC Yachts,” a yacht charter brokerage company in St. Petersburg. In August 2016, in response to reports that FYC Yachts had been overcrowding charters in violation of federal boating safety laws, a USCG investigating officer met with Dines to discuss the reports and FYC Yachts’ operations. Dines assured the investigating officer that his company was operating in compliance with the law.
On the afternoon of March 14, 2017, an overcrowded FYC-chartered yacht, named the “JAGUAR,” set sail from Maximo Marina in St. Petersburg and anchored in Pass-a-Grille Channel to allow the passengers to go swimming. There were strong currents outgoing in the channel that day, which pulled the swimmers away from the JAGUAR. Two swimmers were unable to make it back to the boat. While the other passengers assisted one of the swimmers, the only crew member on board besides the captain jumped into the water to save the other passenger. Both the crew member and the passenger were overcome by the current and swept out to sea. Search and rescue efforts by the JAGUAR, the USCG, and state and local partner agencies were unsuccessful.
Upon the JAGUAR’s return to Maximo Marina later that evening, Dines approached the remaining passengers and encouraged one of them to pretend to be a crew member in order to mislead Coast Guard investigators about the number of passengers onboard. This request was consistent with past instructions Dines had given to other charter boat captains to misidentify passengers as crew members during USCG boardings. Dines also attempted to have the remaining passengers sign a charter contract in order to absolve himself of any responsibility for the incident. The passengers refused, noting that the contract had the wrong yacht name, time of voyage, and number of passengers.
This case was investigated by United States Coast Guard Sector (St. Petersburg) and the United States Coast Guard Investigative Service. It is being prosecuted by Special Assistant United States Attorneys Matthew Del Mastro and Ben Krebs.
Federal Jury Convicts Baton Rouge Doctor of Distribution of Controlled Substances by a PhysicianRead the Press Release
United States Attorney Ronald C. Gathe, Jr., announced the conviction of Dr. Randy J. Lamartiniere, age 64, of Baton Rouge, Louisiana. Lamartiniere was indicted by a federal grand jury on October 27, 2021 and charged with distribution of controlled substances by a physician.
After a five-day trial before District Judge Brian A. Jackson, on December 9, 2022, the jury unanimously convicted Lamartiniere of 20 counts of distribution of controlled substances. As the evidence at trial demonstrated, from in or about March 2015 through January 2016, Lamartiniere, in exchange for cash, wrote medically unnecessary prescriptions for large quantities of Adderall, fentanyl, hydrocodone, methadone, oxycodone, and oxymorphone. Lamartiniere’s fee typically ranged from $100 to $300 per visit, and he accepted no form of health insurance for “doctor visits.” At the end of these “visits,” Lamartiniere routinely issued prescriptions for Adderall and opioids, therefore, distributing and dispensing controlled substances that were not for a legitimate medical purpose and outside the usual course of a legitimate medical practice.
As a result of his convictions, Dr. Lamartiniere now faces a maximum sentence in federal prison of twenty years for each of the twenty counts of conviction, as well as significant fines, forfeiture, restitution, and supervised release.
This case was investigated by the Drug Enforcement Administration, with assistance from the East Baton Rouge, West Baton Rouge, and Iberville Parish Sheriff’s Offices, along with the Baton Rouge Police Department. The case was prosecuted by Assistant United States Attorneys Paul L. Pugliese, who also serves as Opioid Coordinator; Alan A. Stevens, who also serves as Senior Litigation Counsel; and Harley W. Ferguson.
Federal Judge Sentences South Beloit Man to 14 Years in Prison on Child Pornography ChargesRead the Press Release
ROCKFORD — A South Beloit, Ill., man was sentenced today to 14 years in federal prison for possessing and transporting child pornography.
DAVID WITTWER, 52, pleaded guilty earlier this year to possessing a computer and cell phone containing more than 600 images and videos of child pornography, including images of prepubescent minors engaged in sexually explicit conduct. Wittwer also posted images of child pornography to a website.
U.S. District Judge Iain D. Johnston imposed the sentence and ordered that it be followed by 15 years of court-supervised release.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and R. Sean Fitzgerald, Acting Special Agent-in-Charge of the Chicago office of Homeland Security Investigations. The South Beloit Police Department and the Winnebago County Sheriff’s Office provided valuable assistance. The government was represented by Assistant U.S. Attorney Michael D. Love.
FTX Founder Indicted for Fraud, Money Laundering, and Campaign Finance OffensesRead the Press Release
A federal grand jury in Manhattan returned an indictment today charging Samuel Bankman-Fried, aka SBF, 30, of Stanford, California, with conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to defraud the Federal Election Commission and commit campaign finance violations.
The charges in the indictment arise from an alleged wide-ranging scheme by Bankman-Fried to misappropriate billions of dollars of customer funds deposited with FTX, the international cryptocurrency exchange founded by Bankman-Fried, and mislead investors and lenders to FTX and to Alameda Research, the cryptocurrency hedge fund also founded by Bankman-Fried. Bankman-Fried was arrested yesterday in the Bahamas on these charges and will be presented before a Bahamian magistrate judge today.
“The Justice Department has filed charges alleging that Samuel Bankman-Fried perpetrated a range of offenses in a global scheme to deceive and defraud customers and lenders of FTX and Alameda, the defendant’s crypto hedge fund, as well as a conspiracy to defraud the United States government,” said Attorney General Merrick B. Garland. “We allege that the defendant conspired to defraud customers by misappropriating their deposits; to defraud lenders; to commit securities fraud and money laundering; and to violate campaign finance laws. As this indictment demonstrates, the U.S. Department of Justice will aggressively investigate and prosecute alleged criminal wrongdoing in the financial system and violations of federal elections laws. We will continue to work to ensure U.S. capital markets operate honestly and with the integrity that investors, lenders, and the American people are entitled to.”
“One month ago, FTX collapsed, causing billions of dollars in losses to its customers, lenders, and investors,” said U.S. Attorney Damian Williams for the Southern District of New York. “Now, a federal grand jury in New York has indicted the former founder and chief executive officer of FTX and charged him with crimes related to the phenomenal downfall of that one-time cryptocurrency exchange, including fraud on customers, investors, lenders, and our campaign finance system. As today’s charges make clear, this was not a case of mismanagement or poor oversight, but of intentional fraud, plain and simple.”
“As the indictment today alleges, Bankman-Fried knowingly defrauded the customers of FTX.com through the misappropriation of the customer deposits to pay expenses and debts of a different company he also owned as well as make other investments,” said Assistant Director Michael J. Driscoll of the FBI New York Field Office. “If you deceive and defraud your customers, the FBI will be persistent in our efforts to bring you to justice.”
According to the indictment, Bankman-Fried was the founder and chief executive officer of FTX, an international cryptocurrency exchange. Since 2019, Bankman-Fried and his co-conspirators perpetrated a scheme to defraud customers of FTX by misappropriating billions of dollars of those customers’ funds. Bankman-Fried allegedly used billions of dollars of FTX customer funds for his personal use, to make investments and millions of dollars of political contributions to federal political candidates and committees, and to repay billions of dollars in loans owed by Alameda Research, a cryptocurrency hedge fund also founded by the Bankman-Fried. Bankman-Fried also allegedly defrauded lenders to Alameda Research and equity investors in FTX by concealing his misuse of customer deposits in financial information that was provided to them.
Bankman-Fried and his co-conspirators made millions of dollars in political contributions funded by Alameda Research to federal political candidates and committees in advance of the 2022 election. To conceal the fact that those contributions were paid for using funds from a corporation and to evade contribution limits and reporting requirements, Bankman-Fried caused contributions to be reported in the names of co-conspirators rather than in the name of the true source of the funds.
Bankman-Fried is charged with two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years in prison. He is also charged with conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to defraud the United States and commit campaign finance violations, each of which carries a maximum sentence of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney General Merrick B. Garland, U.S. Attorney Damian Williams for the Southern District of New York, and Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office made the announcement.
The FBI is investigating the case with the assistance of the Justice Department’s Office of International Affairs, National Cryptocurrency Enforcement Team, Public Integrity Section, and the DEA, as well as that of the Securities and Exchange Commission and the Commodity Futures Trading Commission, both of which separately initiated civil proceedings against Bankman-Fried today. The Bahamas Office of the Attorney-General & Ministry of Legal Affairs as well as the Royal Bahamas Police Force also provided assistance. The Money Laundering and Transnational Criminal Enterprises Unit and Assistant U.S. Attorneys Samuel Raymond and Thane Rehn for the Southern District of New York also contributed to the investigation.
The U.S. Attorney’s Office for the Southern District of New York’s Securities and Commodities Fraud Task Force is handling the case. Assistant U.S. Attorneys Nicolas Roos and Danielle Sassoon for the Southern District of New York are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
El Departamento de Justicia llega a un acuerdo con una empresa de transporte por carretera que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Navajo Express, una empresa de transporte por carretera que opera por todo el país. El acuerdo resuelve la determinación del Departamento que Navajo Express vulneró la Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a trabajadores no ciudadanos de los EE. UU. a la hora de comprobar su permiso para trabajar en los Estados Unidos.
«Cuando los empleadores rechazan la documentación válida de un trabajador que demuestra su permiso para trabajar y, en su lugar, exigen otros tipos de documentación, están creando barreras innecesarias que pueden marcar la diferencia para un trabajador entre conseguir un trabajo o no», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles. «El Departamento de Justicia seguirá haciendo a los empleadores rendir cuentas de los actos discriminatorios que cometen contra trabajadores por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen».
La investigación del Departamento comenzó después de que un no ciudadano de los EE. UU. se quejó de que Navajo Express se había negado a aceptar su documentación válida que demostraba su permiso para trabajar y exigía que les facilitara otro documento. En concreto, el Departamento determinó que Navajo Express requería que residentes permanentes legales presentaran sus tarjetas de residente permanente (conocidas como «tarjetas verdes») para probar su permiso para trabajar, incluso cuando ya habían presentado otra documentación válida. Asimismo, la investigación reveló que Navajo Express tenía una política de requerir, ilegalmente, que residentes permanentes legales presentaran nuevas tarjetas de residente permanente cuando sus antiguas tarjetas de residente permanente vencían, aunque tal documentación es innecesaria.
Conforme los términos del acuerdo, Navajo Express pagará una sanción civil a los Estados Unidos que asciende a más de $40,000, capacitará a su personal en cuanto a la disposición antidiscriminatoria de la INA, revisará sus políticas de empleo y se someterá a la supervisión del Departamento durante un período de dos años.
Las leyes federales permiten a todo trabajador elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su identidad y permiso para trabajar, independientemente de su ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminatoria de la INA prohíbe que los empleadores soliciten documentos específicos por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. En efecto, muchos no ciudadanos de los EE. UU., incluyendo a residentes permanentes legales, refugiados y asilados, son elegibles para varios de los mismos tipos de documentos como lo son los ciudadanos de los EE. UU. para demostrar su permiso para trabajar (tales como licencias de conducir y tarjetas de Seguro Social sin restricciones). Los empleadores deben permitir que sus trabajadores presenten cualquier documentación aceptable que dichos trabajadores quieran y no pueden rechazar documentación válida que parece ser genuina. Además, si un residente permanente legal proporciona una tarjeta de residente permanente para demostrar que tiene permiso para trabajar, los empleadores no deben pedir nuevos documentos si la tarjeta de residente permanente llega a vencerse.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación.
Hay información disponible en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación a la hora de verificar el permiso para trabajar. Aprenda más sobre cómo la IER protege los derechos de los trabajadores en este video. Para más información sobre protecciones contra la discriminación en el empleo al amparo de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe en correo electrónico a [email protected]; o visite los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Dupree Man Sentenced for Illegal Possession of FirearmRead the Press Release
RAPID CITY - United States Attorney Alison J. Ramsdell announced today that U.S. District Judge Jeffrey L. Viken has sentenced a Dupree, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person. The sentencing took place on December 12, 2022.
Joseph Bowker, 31, was sentenced to two years and five months in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bowker was indicted for Possession of a Firearm by a Prohibited Person by a federal grand jury in December of 2021. He pleaded guilty on June 21, 2022.
In August 2021, in Rapid City, Bowker, a previously convicted felon who is prohibited from possessing firearms, knowingly possessed a Taurus, model PT111, Millenium Pro G2, 9x19mm Luger caliber, semi-automatic pistol, which was found after Bowker came into contact with law enforcement.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Bowker was immediately remanded to the custody of the U.S. Marshals Service.
Drug Trafficker from Monroe Sentenced to Lengthy Prison TermRead the Press Release
MONROE, La. - United States Attorney Brandon B. Brown announced the sentencing of a Monroe man for his role in the trafficking of narcotics in the Monroe area. United States District Judge Terry A. Doughty sentenced Oterrance Jackson, 46, of Monroe, Louisiana, to 168 months (14 years) in prison, followed by 5 years of supervised release, on drug trafficking charges. Jackson pleaded guilty on September 9, 2022, to charges in a federal indictment charging him with possession with intent to distribute methamphetamine and possession of a firearm during a drug trafficking offense.
Law enforcement agents with the Metro Narcotics Unit in Monroe and task force officers with the U.S. Drug Enforcement Agency (DEA) became aware in the fall of 2020 that Jackson was selling large amounts of narcotics out of his residence on Dawnview Street in Monroe. Agents began surveillance of the residence and were able to determine that Jackson was living at the residence. On December 15, 2020, agents obtained a search warrant for Jackson’s residence and during the search found approximately 19 pounds of marijuana located in large Ziploc bags, 1,710 ecstasy pills, 64 grams of powder cocaine, 54 grams of crack cocaine, 610 pills of suspected Viagra, and approximately $20,000 in cash. Agents also found a loaded Glock Model 17 9mm firearm with an extended magazine and a Smith & Wesson .38 revolver in the master bedroom. The narcotics were taken to the criminalistics laboratory for testing and the suspected ecstasy pills were confirmed to contain over 28 grams of methamphetamine and the suspected Viagra pills were found to have over 28 grams of fentanyl. Jackson is a convicted felon and has prior felony convictions for possession of cocaine in 1998 and possession of a firearm by a convicted felon in 2014.
“Agents recovered a smorgasbord of drugs from Mr. Jackson’s home, including fentanyl, the most dangerous drug we’re dealing with right now,” said U.S. Attorney Brandon B. Brown. “This lethal substance has indeed reared its ugly head in northeast Louisiana and those with substance abuse issues or abuse narcotics illegally are at grave risk indicated by recent overdose deaths in the Monroe area and across the south. Given Jackson’s criminal history, this sentence is appropriate, and we will continue to be aggressive in prosecuting these types of offenders.”
This case was investigated by the U.S. Drug Enforcement Administration and Monroe Police Department and prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Dominican Man Indicted for Illegal ReentryRead the Press Release
BOSTON – A Dominican man has been indicted by a federal grand jury in Boston for illegally reentering the United States after deportation.
Jonathan Alcequiez-Sanchez, 35, was indicted on one count of unlawful reentry of a deported alien. Alcequiez-Sanchez was remanded into federal custody after previously being charged by criminal complaint on Nov. 25, 2022. He will appear in federal court in Boston on Dec. 14, 2022.
According to the charging documents, Alcequiez-Sanchez was deported from the United States on Sept. 18, 2018, after being arrested in the Bronx, N.Y. for unlawful entry. It is alleged that sometime after his September 2018 removal, Alcequiez-Sanchez illegally reentered the United States.On or about Dec. 27, 2021, Alcequiez-Sanchez was convicted in Lawrence District Court of drug distribution and weapons charges for which he was sentenced to serve jail time at the Essex County House of Corrections. Alcequiez-Sanchez was taken into federal custody upon his release on Nov. 15, 2022.
The charge of unlawful reentry of a deported alien provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Todd Lyons, Boston’s Field Office Director of the U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations made the announcement today. Assistant U.S. Attorney Luke A. Goldworm of Rollins’ Major Crimes Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Danske Bank Pleads Guilty to Fraud on U.S. Banks in Multi-Billion Dollar Scheme to Access the U.S. Financial SystemRead the Press Release
Danske Bank A/S (Danske Bank), a global financial institution headquartered in Denmark, pleaded guilty today and agreed to forfeit $2 billion to resolve the United States’ investigation into Danske Bank’s fraud on U.S. banks.
According to court documents, Danske Bank defrauded U.S. banks regarding Danske Bank Estonia’s customers and anti-money laundering controls to facilitate access to the U.S. financial system for Danske Bank Estonia’s high-risk customers, who resided outside of Estonia – including in Russia. The Justice Department will credit nearly $850 million in payments that Danske Bank makes to resolve related parallel investigations by other domestic and foreign authorities.
“Today’s guilty plea by Danske Bank and two-billion-dollar penalty demonstrate that the Department of Justice will fiercely guard the integrity of the U.S. financial system from tainted foreign money – Russian or otherwise,” said Deputy Attorney General Lisa O. Monaco. “Whether you are a U.S. or foreign bank, if you use the U.S. financial system, you must comply with our laws. We expect companies to invest in robust compliance programs – including at newly acquired or far-flung subsidiaries – and to step up and own up to misconduct when it occurs. Failure to do so may well be a one-way ticket to a multi-billion-dollar guilty plea.”
“Danske Bank lied to U.S. banks about its deficient anti-money laundering systems, inadequate transaction monitoring capabilities, and its high-risk, offshore customer base in order to gain unlawful access to the U.S. financial system,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today, Danske Bank accepted responsibility for defrauding U.S. financial institutions and funneling billions of dollars in suspicious and criminal transactions through the United States. As part of its guilty plea, Danske Bank will forfeit over $2 billion and implement significant changes to its compliance program and AML controls. This coordinated resolution with the Securities and Exchange Commission (SEC) and Danish authorities sends a clear message that the Department of Justice stands ready to work with our partners around the world to investigate corporate wrongdoing and hold bad actors accountable for their criminal conduct.”
“For years, Danske Bank lied and deceived U.S. banks to pump billions of dollars of suspicious and criminal funds through the U.S. financial system,” said U.S. Attorney Damian Williams for the Southern District of New York. “In doing so, Danske Bank, the largest bank in Denmark, deliberately disregarded U.S. law of which it is well aware, facilitated the laundering of criminal and suspicious proceeds through the United States, and placed the U.S. financial network at risk, all in the name of its bottom line. The bank is now being held to account. For its years-long criminal conduct, today Danske Bank pleaded guilty to conspiring to commit bank fraud, will forfeit over $2 billion, and will implement and maintain a revamped compliance program and AML controls. Banks and other financial institutions around the world should heed this message: If you want to use the U.S. financial system, you must play by the rules. If you don’t, we will hold you accountable.”
“Danske Bank’s guilty plea for defrauding U.S. banks should serve as a stark warning to others that we will uncover the truth and deliver accountability,” said FBI Deputy Director Paul Abbate. “The FBI, working with international partners, will vigorously investigate any institution, wherever based, which is engaged in manipulating U.S. financial systems to enable money laundering. The FBI remains committed to safeguarding our national and economic security from threats which could cause harm to American institutions.”
According to admissions and court documents, between 2008 and 2016, Danske Bank offered banking services through its branch in Estonia, Danske Bank Estonia. Danske Bank Estonia had a lucrative business line serving non-resident customers known as the NRP. Danske Bank Estonia attracted NRP customers by ensuring that they could transfer large amounts of money through Danske Bank Estonia with little, if any, oversight. Danske Bank Estonia employees conspired with NRP customers to shield the true nature of their transactions, including by using shell companies that obscured actual ownership of the funds. Access to the U.S. financial system via the U.S. banks was critical to Danske Bank and its NRP customers, who relied on access to U.S. banks to process U.S. dollar transactions. Danske Bank Estonia processed $160 billion through U.S. banks on behalf of the NRP.
U.S. banks required Danske Bank and Danske Bank Estonia to provide information to open and maintain accounts, including information related to anti-money laundering (AML) controls, transaction monitoring, and customers. Danske Bank knew that the U.S. banks expected honest, complete, and accurate responses and that the U.S. banks would not maintain, or open, U.S. dollar accounts for Danske Bank Estonia without the required information.
By at least February 2014, as a result of internal audits, information from regulators, and an internal whistleblower, Danske Bank knew that some NRP customers were engaged in highly suspicious and potentially criminal transactions, including transactions through U.S. banks. Danske Bank also knew that Danske Bank Estonia’s anti-money laundering program and procedures did not meet Danske Bank’s standards and were not appropriate to meet the risks associated with the NRP. Instead of providing the U.S. banks with truthful information, Danske Bank lied about the state of Danske Bank Estonia’s AML compliance program, transaction monitoring capabilities, and information regarding Danske Bank Estonia’s customers and their risk profile.
Today, Danske Bank pleaded guilty to one count of conspiracy to commit bank fraud. Under the terms of the plea agreement, the company has agreed to criminal forfeiture of $2.059 billion. Danske Bank will also enter into separate criminal or civil resolutions with domestic and foreign authorities and the department will credit approximately $850 million in payments the bank makes to the SEC and the Danish authorities.
The department reached its resolution with Danske Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offense conduct. This included a bank fraud conspiracy in which Danske Bank misled U.S. banks in order to maintain and in one case open U.S. dollar accounts through which Danske Bank processed $160 billion for its non-resident customers; the bank’s failure to voluntarily and timely disclose the conduct to the department; the state of Danske Bank’s compliance program and the progress of its remediation; the bank’s resolutions with other domestic and foreign authorities, including the imposition of an independent expert by Danish authorities; and the bank’s continued cooperation with the department’s ongoing investigation. Danske Bank received full credit for cooperation and remediation because it provided full cooperation with the investigation and demonstrated recognition and affirmative acceptance of responsibility for its criminal conduct, including by, among other things, providing substantial information from its internal investigation, voluntarily and expediently producing a significant amount of documents located outside the United States in ways that did not implicate foreign data privacy laws, making foreign witnesses available for interviews, collecting and producing voluminous evidence and information including with translations where necessary, and providing detailed analysis of complex, cross-border transactions. Danske Bank has also enhanced and committed to continue improving its compliance programs and has agreed to the appointment of an independent expert selected by its regulator.
Additionally, the SEC announced a separate settlement with Danske Bank today in connection with a related, parallel proceeding. Under the terms of that resolution, Danske Bank agreed to pay approximately $413 million, which includes a civil monetary penalty of $178.6 million, as well as disgorgement that will be credited to any such payments made to the Danish authorities or the department in connection with Danske Bank’s guilty plea.
The FBI is investigating the case.
Trial Attorneys Margaret A. Moeser and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorneys Tara M. La Morte and Sheb Swett for the Southern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs provided critical assistance in this case.
The department appreciates the significant assistance provided by the SEC and the authorities in Denmark. The department further appreciates the assistance provided by authorities in Estonia in response to multiple Mutual Legal Assistance requests.
MLARS’ Bank Integrity Unit investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Danske Bank Pleads Guilty to Fraud on U.S. Banks in Multi-Billion Dollar Scheme to Access the U.S. Financial SystemRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Lisa O. Monaco, the Deputy Attorney General of the United States, Kenneth A. Polite Jr., the Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, the Assistant Director in Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that Danske Bank A/S (“Danske Bank”), a global financial institution headquartered in Denmark, pled guilty today and agreed to forfeit $2 billion to resolve the United States’ investigation into Danske Bank’s fraud on U.S. banks.
According to court documents, Danske Bank defrauded U.S. banks regarding Danske Bank Estonia’s customers and anti-money laundering controls to facilitate access to the U.S. financial system for Danske Bank Estonia’s high-risk customers, who resided outside of Estonia – including in Russia. The Justice Department will credit nearly $850 million in payments that Danske Bank makes to resolve related parallel investigations by other domestic and foreign authorities.
U.S. Attorney Damian Williams said: “For years, Danske Bank lied and deceived U.S. banks to pump billions of dollars of suspicious and criminal funds through the U.S. financial system. In doing so, Danske Bank, the largest bank in Denmark, deliberately disregarded U.S. law, of which it is well aware, facilitated the laundering of criminal and suspicious proceeds through the United States, and placed the U.S. financial network at risk, all in the name of its bottom line. The Bank is now being held to account. For its years-long criminal conduct, today Danske Bank pled guilty to conspiring to commit bank fraud, will forfeit over $2 billion, and will implement and maintain a revamped compliance program and AML controls. Banks and other financial institutions around the world should heed this message: If you want to use the U.S. financial system, you must play by the rules. If you don’t, we will hold you accountable.”
Deputy Attorney General Lisa O. Monaco said: “Today’s guilty plea by Danske Bank and two-billion-dollar penalty demonstrate that the Department of Justice will fiercely guard the integrity of the U.S. financial system from tainted foreign money—Russian or otherwise. Whether you are a U.S. or foreign bank, if you use the U.S. financial system, you must comply with our laws. We expect companies to invest in robust compliance programs—including at newly acquired or far-flung subsidiaries—and to step up and own up to misconduct when it occurs. Failure to do so may well be a one-way ticket to a multi-billion-dollar guilty plea.”
Assistant Attorney General Kenneth A. Polite Jr. said: “Danske Bank lied to U.S. banks about its deficient anti-money laundering systems, inadequate transaction monitoring capabilities, and its high-risk, offshore customer base in order to gain unlawful access to the U.S. financial system. Today, Danske Bank accepted responsibility for defrauding U.S. financial institutions and funneling billions of dollars in suspicious and criminal transactions through the United States. As part of its guilty plea, Danske Bank will forfeit over $2 billion and implement significant changes to its compliance program and AML controls. This coordinated resolution with the Securities and Exchange Commission (SEC) and Danish authorities sends a clear message that the Department of Justice stands ready to work with our partners around the world to investigate corporate wrongdoing and hold bad actors accountable for their criminal conduct.”
FBI Assistant Director in Charge Michael J. Driscoll said: “As the guilty plea today demonstrates, Danske knowingly defrauded United States based banks as part of an elaborate scheme to enable money laundering from Russia. Despite knowing that transactions of their customers were suspicious and possibly criminal, Danske initially concealed and lied to the U.S. banks. The FBI and our law enforcement partners are committed to ensuring that foreign financial institutions wishing to do business in our system maintain compliance with the rules and regulations of the United States financial system. Those institutions who try to evade these regulations will be held accountable in the criminal justice system.”
According to admissions and court documents:
Between 2008 and 2016, Danske Bank offered banking services through its branch in Estonia, Danske Bank Estonia. Danske Bank Estonia had a lucrative business line serving non-resident customers known as the NRP. Danske Bank Estonia attracted NRP customers by ensuring that they could transfer large amounts of money through Danske Bank Estonia with little, if any, oversight. Danske Bank Estonia employees conspired with NRP customers to shield the true nature of their transactions, including by using shell companies that obscured actual ownership of the funds. Access to the U.S. financial system via the U.S. banks was critical to Danske Bank and its NRP customers, who relied on access to U.S. banks to process U.S. dollar transactions. Danske Bank Estonia processed $160 billion through U.S. banks on behalf of the NRP.
U.S. banks required Danske Bank and Danske Bank Estonia to provide information to open and maintain accounts, including information related to anti-money laundering (“AML”) controls, transaction monitoring, and customers. Danske Bank knew that the U.S. banks expected honest, complete, and accurate responses and that the U.S. banks would not maintain, or open, U.S. dollar accounts for Danske Bank Estonia without the required information.
By at least February 2014, as a result of internal audits, information from regulators, and an internal whistleblower, Danske Bank knew that some NRP customers were engaged in highly suspicious and potentially criminal transactions, including transactions through U.S. banks. Danske Bank also knew that Danske Bank Estonia’s anti-money laundering program and procedures did not meet Danske Bank’s standards and were not appropriate to meet the risks associated with the NRP. Instead of providing the U.S. banks with truthful information, Danske Bank lied about the state of Danske Bank Estonia’s AML compliance program, transaction monitoring capabilities, and information regarding Danske Bank Estonia’s customers and their risk profile.
To resolve the investigation, Danske Bank pled guilty to one count of conspiracy to commit bank fraud. Under the terms of the plea agreement, the company has agreed to criminal forfeiture of $2.059 billion. Danske Bank will also enter into separate criminal or civil resolutions with domestic and foreign authorities, and the Department will credit approximately $850 million in payments the bank makes to the Securities and Exchange Commission (“SEC”) and the Danish authorities.
The Department reached its resolution with Danske Bank based on a number of factors, including the nature, seriousness, and pervasiveness of the offense conduct. This included a bank fraud conspiracy in which Danske Bank misled U.S. banks in order to maintain, and in one case open, U.S. dollar accounts through which Danske Bank processed $160 billion for its non-resident customers; the bank’s failure to voluntarily and timely disclose the conduct to the Department; the state of Danske Bank’s compliance program and the progress of its remediation; the bank’s resolutions with other domestic and foreign authorities; and the bank’s continued cooperation with the Department’s ongoing investigation. Danske Bank received full credit for cooperation and remediation because it provided full cooperation with the investigation and demonstrated recognition and affirmative acceptance of responsibility for its criminal conduct, including by, among other things, providing substantial information from its internal investigation, voluntarily and expediently producing a significant amount of documents located outside the United States in ways that did not implicate foreign data privacy laws, making foreign witnesses available for interviews, collecting and producing voluminous evidence and information, including with translations where necessary, and providing detailed analysis of complex, cross-border transactions. Danske Bank has also enhanced and committed to continue improving its compliance programs and has agreed to the appointment of an independent expert selected by its regulator.
Additionally, the SEC announced a separate settlement with Danske Bank today in connection with a related, parallel proceeding. Under the terms of that resolution, Danske Bank agreed to pay approximately $413 million, which includes a civil monetary penalty of $178.6 million, as well as disgorgement that will be credited to any such payments made to the Danish authorities or the department in connection with Danske Bank’s guilty plea.
* * *
The case is being handled by the Office’s Money Laundering & Transnational Criminal Enterprises Unit in partnership with the Criminal Division’s Money Laundering and Asset Recovery Section. Assistant U.S. Attorneys Tara M. La Morte and Sheb Swett and Trial Attorneys Margaret A. Moeser and Patrick B. Gushue are prosecuting this case.
Mr. Williams praised the investigative work of the FBI and the significant assistance provided by the Criminal Division’s Office of International Affairs, the SEC, and the authorities in Denmark. Mr. Williams also expressed his gratitude for the assistance provided by authorities in Estonia in response to Mutual Legal Assistance requests.
Court Orders Remedy in Clean Water Act Case, Directs Individual and Company to Restore Sensitive Tidal Channels and MarshRead the Press Release
In a decision issued on December 9, the U.S. District Court for the Eastern District of California granted the request of the Justice Department to direct John Sweeney and his company, Point Buckler Club LLC, to restore sensitive tidal channels and marsh they unlawfully harmed. The court’s decision follows an earlier order dated Sept. 1, 2020, when the court found defendants committed “very serious” violations of the Clean Water Act associated with the construction of a nearly mile-long levee without a permit.
The defendants’ violations occurred on Point Buckler Island, an island in the greater San Francisco Bay that Sweeney had purchased in 2011. The Island’s tidal channels and marsh are part of the Suisun Marsh, the largest contiguous brackish water marsh remaining on the west coast of North America. The Island is located in a heavily utilized fish corridor and is critical habitat for several species of federally protected fish.
When Sweeney acquired the Island, nearly all of it functioned as a tidal channel and tidal marsh wetlands system. Beginning in 2014, without a permit, Sweeney excavated and dumped thousands of cubic yards of soil directly into the Island’s tidal channels and marsh. This unlawful conduct, the court found, eliminated tidal exchange, harmed aquatic habitat and adversely impacted water quality.
In its detailed remedial decision, the court concluded that restoration is the appropriate goal, and an injunction is necessary to achieve it.
“Point Buckler Island is part of a vital tidal ecosystem, and we are pleased that the court agreed that defendants must undo the damage they caused,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.
“This decision is a victory for the health of the San Francisco Bay and Sacramento Delta,” said Amy Miller, EPA’s Enforcement and Compliance Assurance Division Director for the Pacific Southwest Region. “We will remain diligent in ensuring vital local wetlands are protected from illegal dredging and filling activities.”
The case is styled United States of America v. John Donnelly Sweeney and Point Buckler Club, LLC, No. 2:17-cv-00112-KJM-KJN (E.D. Cal.). The court’s orders are available through the court’s website, www.caed.uscourts.gov.
Connecticut Man Sentenced to 7 ½ years for Firearm ChargeRead the Press Release
PORTLAND, Maine: A Connecticut man was sentenced today in U.S. District Court in Portland today for possessing a stolen firearm.
U.S. District Judge John A. Woodcock, Jr. sentenced Henry Brackett, 60, to 92 months in prison followed by three years of supervised release. He pleaded guilty on March 30, 2022.
According to court records, in January 2020, Brackett was pulled over while driving on I-95 southbound in York. During the traffic stop, he was arrested for an outstanding fugitive-from-justice warrant after absconding from parole in Connecticut. A loaded 9mm pistol was recovered from the vehicle’s center console, and an additional 43 rounds of boxed ammunition were recovered from the back seat. It was later determined that Brackett had stolen the handgun and ammunition from a Maine resident.
In sentencing Brackett, Judge Woodcock noted his “chilling” and “disturbing” criminal history, which included five prior sexual assault convictions and a prior kidnapping conviction for which Brackett received a 25-year prison sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Maine State Police and U.S. Marshals Service investigated the case.
Project Safe Neighborhoods: This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. To learn more information about Project Safe Neighborhood, visit www.justice.gov/psn.
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Colorado Man Sentenced to 8-Year Prison Term for Distributing Child PornographyRead the Press Release
Defendant Distributed Multiple Images of Child Pornography and Possessed Over 25,000 Images of Child Pornography
WASHINGTON –Shaun Marvin, 43, of Colorado, was sentenced today to an 8-year prison term on distribution of child pornography charges, announced U.S. Attorney Matthew M. Graves, Robert J. Contee III, Chief of the Metropolitan Police Department (MPD) and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office’s Criminal Division.
Marvin pled guilty on Dec. 9, 2021, in the U.S. District Court of the District of Columbia to one count of distribution of child pornography.
He was sentenced today by the Honorable Timothy J. Kelly. Following completion of his prison term, he will be placed on 10 years of supervised release.
According to the government’s evidence, the defendant joined a chat group dedicated to trading child pornography. Marvin distributed multiple images depicting the sexual abuse of children to members of that group. After law enforcement agents seized Marvin’s digital devices, they discovered over 25,000 images of child pornography on his devices, including images depicting the rape and torture of infants and toddlers.
This case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force. The task force is composed of FBI agents, along with other federal agents and detectives from northern Virginia and the District of Columbia. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children and those engaged in human trafficking.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
In announcing the sentence, U.S. Attorney Graves commended the work of those who investigated the case from the FBI’s Child Exploitation and Human Trafficking Task Force. He also thanked the FBI's Denver Field Office - Colorado Springs RA. He acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alexis Spencer-Anderson, and Victim/Witness Advocate Yvonne Bryant.
Finally, he commended the work of Assistant U.S. Attorney Janani Iyengar, who investigated and prosecuted the case.
California Man Charged with Smuggling Marijuana Onboard American Airlines Flight to St. ThomasRead the Press Release
St. Thomas, VI – United States Attorney Delia L. Smith announced today that a Christophe Alain Foisy, age 27, of California, appeared before United States Magistrate Judge Ruth Miller for his initial appearing hearing after being charged with possession with intent to distribute marijuana.
According to court documents, Foisy arrived in St. Thomas on a Delta Airlines flight from Atlanta, GA, with thirty-two vacuum sealed packages containing a green leafy substance in his checked suitcases. After Foisy confirmed to U.S. Customs and Border Protection officers that the suitcases were indeed his, the officers field tested the green leafy substance which yielded a positive reaction for the presence of marijuana and weighed approximately 18 kilograms.
The Department of Homeland Security Investigations and U.S. Customs and Border Protection are investigating this case and is being prosecuted by Assistant United States Attorney Meredith Edwards. This investigation 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.
Ava Man Indicted for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – An Ava, Mo., man has been indicted by a federal grand jury for producing child pornography after photos of the child victim’s sexual assault were discovered in his former residence while it was being torn down.
Harold Lloyd Blair, Jr., 66, was charged in an indictment returned by a federal grand jury in Springfield on Dec. 6, 2022, with one count of using a minor to produce child pornography.
The federal indictment alleges that Blair used a minor to produce child pornography from Jan. 1, 2012, to Dec. 31, 2013.
The investigation began on Dec. 2, 2022, when workers employed by Douglas County, Mo., discovered a filing cabinet that contained images of child pornography in a house they were tearing down. Workers using heavy equipment tore into a wall and found the filing cabinet, then contacted the Douglas County, Mo., Sheriff’s Department. Investigators learned that Blair had sold the house to the county.
State charges were originally filed against Blair in Douglas County but will be dismissed by the Douglas County Prosecuting Attorney in lieu of the federal indictment.
The charge contained in this indictment 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. Attorney Stephanie L. Wan. It was investigated by the Douglas County, Mo., Sheriff’s Department, Homeland Security Investigations, the Southwest Missouri Cyber Crimes Task Force, and the West Plains, Mo., Police Department, with assistance from the Douglas County, Mo., Prosecuting Attorney.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Armed Waterbury Drug Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that CARLTON FOX, 37, of Waterbury, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by five years of supervised release, for possessing a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, in June 2021, Waterbury Police made two controlled purchases of heroin and one controlled purchase of fentanyl from Fox. On June 18, 2021, investigators conducted a court-authorized search of a Waterbury hotel room where Fox was staying and seized a loaded .22 caliber handgun; distribution quantities of heroin, fentanyl and crack cocaine; items used to process and package narcotics for street sale; and $3,980 in cash.
Fox has been detained in federal custody since October 14, 2021. On April 19, 2022, he pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Waterbury Police Department. The case was being prosecuted by Assistant U.S. Attorney Marc H. Silverman.
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.
Armed Drug Dealer Sentenced to 14 Years in Federal Prison After Fleeing Police at 80 Miles per Hour High on PCP and Seriously Injuring Two PeopleRead the Press Release
INDIANAPOLIS – Carl Young Jr., 41, of Indianapolis was sentenced to 14 years in federal prison after pleading guilty to cocaine and marijuana trafficking charges, possession of a firearm in furtherance of drug trafficking, and being a felon in possession of a firearm.
According to court documents, on February 16, 2022, just after midnight, Indianapolis Metropolitan Police Department (IMPD) officers were dispatched to Thaddeus Street in Indianapolis, Indiana in response to a domestic disturbance. Upon their arrival, a woman reported that Young had stolen her Jeep and pointed officers to the vehicle in a nearby alley. Young fled from the approaching officers at a high speed. Young ran a stop sign at the intersection of Minnesota St. and State St., striking a Buick at nearly 80 miles per hour. Both the driver and passenger of the Buick were ejected from the vehicle. The driver was trapped under the vehicle, but officers were able to lift the vehicle to free the driver. The passenger was ejected from the vehicle onto the sidewalk several feet away. Both victims were transported to Eskenazi Hospital in critical condition.
Young attempted to flee the scene again after the crash, and purposefully backed into a police vehicle. Officers surrounded Young’s vehicle with police vehicles, removed him from the driver’s seat, and placed him under arrest. Young was under the influence of Phencyclidine (PCP) and had two shotgun shells on her person at the time of his arrest. IMPD officers recovered a loaded shotgun from the front passenger seat of the stolen vehicle, and a backpack containing approximately 26 grams of crack cocaine and approximately 6 pounds of marijuana. In his guilty plea, Young admitted he intended to distribute the illegal drugs.
At the time of his arrest, Young was prohibited from legally possessing a firearm because he had five prior felony convictions, including convictions for dealing illegal drugs and multiple convictions for operating a vehicle while intoxicated endangering a person.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division, and IMPD Chief Randal Taylor made the announcement.
“This armed drug trafficker severely injured two innocent people as he sped away from police with utter disregard for human life,” said U.S. Attorney Myers “I commend the outstanding first responders who undoubtably saved lives at the scene of the crash and protected the public by arresting a dangerous criminal. The serious sentence imposed today will protect the public from further crimes by Mr. Young, and demonstrates that our office will work closely with our local and federal partners to make our communities safer.”
The Indianapolis Metropolitan Police Department and ATF investigated the case. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that the defendant be supervised by the U.S. Probation Office for 3 years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Pamela S. Domash who prosecuted this case.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.