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Monday 24 October 2022
Stockton Resident Sentenced for Attempted Sexual Coercion and Enticement of a MinorRead the Press Release
FRESNO, Calif. – Daniel Peralta 31, was sentenced today to 10 years in prison to be followed by 20 years of supervised release for attempted coercion and enticement of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Peralta used the messaging application Skout to engage in sexually explicit chats with a person he believed to be a 13-year-old female. On July 26, 2020, he traveled from Stockton to Fresno to meet the purported minor for sexual activity.
This case was the product of an investigation by the Central California Internet Crimes Against Children Task Force and Homeland Security Investigations, with assistance from the Fresno County Sheriff’s Office and the Clovis Police Department. Assistant U.S. Attorney David L. Gappa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
South Bay Man Sentenced to 9 Years in Federal Prison for Role in Scam Involving Fake Open Houses at Not-for-Sale HomesRead the Press Release
LOS ANGELES – A South Bay man, who along with his sister and other co-conspirators participated in a $6 million real estate scam that listed homes for sale without owners’ consent and collected money from multiple would-be buyers, was sentenced today to 108 months in federal prison.
Adolfo Schoneke, 45, of Torrance, who pleaded guilty in May to one count of conspiracy to commit wire fraud, was sentenced by United States District Judge R. Gary Klausner. A restitution hearing was scheduled for December 12.
Schoneke’s sister, Bianca Gonzalez, 39, pleaded guilty in April, admitting her role in the wire fraud scheme, and is scheduled to be sentenced on May 22, 2023.
Schoneke and his sister, along with co-conspirators, operated real estate and escrow companies based in Cerritos, La Palma and Long Beach under a variety of names, including MCR and West Coast Realty Services. Schoneke and the other members of the conspiracy located properties to list for sale – even though they did not intend to sell the properties to anyone, and in many instances the properties were not for sale at all.
The properties were listed on real estate websites such as the Multiple Listing Service (MLS) and were marketed as short sale opportunities. In some cases, the homes were marketed through open houses arranged by tricking homeowners or occupants into allowing their homes to be used.
“The fraud scheme [Schoneke] invented, proposed to his co-conspirators, and carried out involved uniquely devious means designed to steal money from as many victims as possible,” according to a sentencing memorandum filed by prosecutors. “Playing on the dream of home ownership and seemingly out of reach home prices, [Schoneke] figured out a way to ‘sell’ homes that he did not own and had no business in listing for sale.”
Multiple offers were accepted for each of the not-for-sale properties, but the co-conspirators hid this fact from the victims and instead led victims to believe their offer was the only one accepted. The co-conspirators strung victims along – sometimes for years – by telling them closings were being delayed because lenders needed to approve the purported short sales.
Office workers opened bank accounts to hide the co-conspirators’ involvement in the fraud. Those accounts were used to receive down payments on the homes and other payments from victims who were convinced to transfer the full “purchase price” after receiving forged short sale approval letters. The co-conspirators directed the office workers to withdraw large amounts of cash from these accounts, which made the proceeds harder to trace.
Schoneke “and his co-conspirators used numerous properties to further the fraudulent scheme, and collected more than $11.7 million from victims as part of the scheme (involving more than 860 transfers from approximately 750 or more victims),” according to the sentencing memo. “Although some of the victims were paid back, the scheme caused more than $6 million in losses to nearly 400 victims.”
In a related case, Mario Gonzalez (no relation to Bianca Gonzalez), 51, of Garden Grove, pleaded guilty in 2019 to conspiracy to commit wire fraud and is scheduled to be sentenced on April 3, 2023.
The FBI and the Federal Deposit Insurance Corporation, Office of Inspector General investigated this matter. The investigation was initiated by numerous complaints to the Long Beach Police Department and the Los Angeles County Sheriff’s Department, both of which provided substantial assistance during the federal investigation.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting this case.
Sioux City Woman Pleads Guilty to Federal Meth ConspiracyRead the Press Release
A Sioux City woman who conspired with others to distribute methamphetamine pled guilty on October 21, 2022, in federal court.
Kimberly Hansen, 58, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine.
Evidence at the plea hearing showed that Hansen was involved in a conspiracy that distributed at least 15 kilograms of methamphetamine from June 2017 through August 2019. Via the mail, Hansen received multiple ounces to pounds of methamphetamine for a local conspiracy leader. Hansen also traveled to California at least six times to acquire pounds of methamphetamine which she brought back to Sioux City for redistribution.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Hansen was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Hansen faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the United States Postal Service, and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4086.
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Seven set to appear in court on violent crime chargesRead the Press Release
HOUSTON – Authorities have taken seven Houston area men into custody on allegations including conspiracy to commit interference with commerce by robbery, conspiracy to possess with intent to distribute and carrying a weapon in relation to a drug trafficking offense, announced U.S. Attorney Jennifer B. Lowery.
Travonte Ardoin, 25, Jcoi Naquon Barley, 23, Maurkael Brown, 27, Terrell Treyvon Davis, 25, Emery Jermaine Goodley, 23, and Jymonte McClendon, 24, all of Houston, and Terry Ardoin, 21, Richmond, are expected to make their initial appearances before U.S. Magistrate Judge Sam Sheldon at 2 p.m.
Law enforcement took all seven into custody Friday following the filing of a criminal complaint.
The charges allege all are believed members or associates of the Freemoney gang operating in Southeast Houston. The Freemoney gang is suspected of committing a number of violent acts in and around the community, according to the complaint.
On Aug. 14, the seven men planned to participate in a robbery at a residence of a known drug dealer who often advertised his marijuana on an open Instagram page, according to the complaint. Brown had allegedly confirmed with Barley they had people to help commit the robbery. The charges also allege Terry and Barley discussed recruiting or needing more people who could “hit licks, kill and do everything they needed to do.”
Law enforcement was able to intercede and prevent the robbery from occurring, according to the complaint. Authorities allegedly recovered various firearms the men were planning to use at the time of the robbery including three that had glock switches attached to them.
All are charged with conspiracy to commit interference with commerce by robbery, conspiracy to possess with intent to distribute and carrying a weapon in relation to a drug trafficking offense. The robbery charge carries a potential 20-year prison sentence, while a conviction of the drug conspiracy has a maximum of 40 years. If convicted of the weapons charge, each will receive a minimum of five years and up to life which must be served consecutively to any other prison term imposed. Maurkael Brown and Terrell Davis are also charged with possession of a machine gun in relation to a drug trafficking offense – a crime that carries a minimum of 30 years and up to life which must also be served consecutively.
The FBI and Houston Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Texas Department of Public Safety. Assistant U.S. Attorney Lisa Collins is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of lawSalisbury Woman Sentenced to 17 Years in Prison for Sexually Exploiting an Infant in Her CareRead the Press Release
BOSTON – A Salisbury woman was sentenced today to 17 years in prison for the sexual exploitation of an infant.
Desiree Daigle, 26, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 17 years in prison to be followed by five years of supervised release. On June 24, 2022, Daigle pleaded guilty to sexually exploiting a child.
“There are no words to adequately capture how truly reprehensible this conduct is. Ms. Daigle violated the trust placed in her by a friend and sexually abused a defenseless infant in her care. That she documented the abuse for the perverse gratification of herself and others is truly disgusting. Ms. Daigle is a danger to our communities and deserves every single day of this prison sentence,” said United States Attorney Rachael S. Rollins. “This case is a stark reminder that child predators come in all genders and that children of all ages can be victimized. While nothing will ever alleviate the pain and devastation Ms. Daigle inflicted upon the victim and their family, we hope today’s sentence provides some measure of accountability. My office and our law enforcement partners will never stop working to ensure the safety of our children by identifying, prosecuting and removing predators like Ms. Daigle from our communities.”
“The actions of Desiree Daigle were beyond heinous. She violated the trust placed in her by her friends and sexually exploited a baby in her care. No child should ever be subjected to this, and no sentence can erase the harm inflicted upon this child and her family,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Today’s sentence keeps Daigle exactly where she belongs, behind bars, being held to account for her depraved actions.”
In November 2018, Daigle was identified in online chats exchanging various child pornography files with another individual. Some of the images depicted an infant in Daigle’s care, taken in Daigle’s home. During the chats, Daigle discussed plans for the other individual to meet the child in person so that they could sexually abuse the child together. That individual is also facing federal charges.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. Valuable assistance was provided by the Amesbury, North Andover, Salisbury, Arlington, Billerica, Methuen and Haverhill Police Departments. Assistant U.S. Attorney Anne Paruti, Chief of Rollins’ Major Crimes Unit prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identity and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Sacramento Man Pleads Guilty to Possessing a Firearm as a FelonRead the Press Release
SACRAMENTO, Calif. — Derick Louangamath, 33, of Sacramento, pleaded guilty today to being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 23, 2019, law enforcement officers stopped a vehicle that Louangamath was driving and found a Glock 26, along with loaded 10-, 15-, and 33-round magazines. Louangamath has several prior felony convictions — including convictions for being a felon in possession of a firearm, which prohibit him from possessing a firearm.
This case is the product of an investigation by the Sacramento County District Attorney’s Office, the Sacramento Police Department, and the Federal Bureau of Investigation. Assistant U.S. Attorney Aaron D. Pennekamp is prosecuting the case.
Louangamath is scheduled to be sentenced on Jan. 23, 2023, by U.S. District Judge Kimberly J. Mueller. Louangamath faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Reagan Taylor Fondren Appointed as First Assistant United States AttorneyRead the Press Release
Memphis, TN – Kevin G. Ritz, United States Attorney for the Western District of Tennessee, is
pleased to announce the appointment of Reagan Taylor Fondren as First Assistant United States
Attorney for the district.Ms. Fondren, a native Memphian and graduate of Central High School, completed her undergraduate
studies at Spelman College and her law degree at the University of Tennessee College of Law. She
has worked in federal public service with the United States Department of Justice for her entire
career and has served as an Assistant United States Attorney for over 14 years.“As a federal prosecutor for over 14 years, and a career public servant, Reagan Taylor Fondren
brings a wealth of experience and absolute professionalism to a role that is vital to the success
of our office,” said United States Attorney Kevin G. Ritz. “I am confident that Ms. Fondren will
lead with skill and integrity in her new role as First Assistant. I look forward to working closely
with her to promote and defend the interests of the United States in our District.”Ms. Fondren began her legal career as a Presidential Management Fellow with the Drug Enforcement
Administration. There she servedin the Office of the Chief Counsel and was responsible for the
investigation and institution of charges against DEA registrants accused of violating federal
regulations. In 2008, she joined the United States Attorney’s Office for the District of Columbia,
where she gained significant trial and appellate experience as a violent crime and homicide
prosecutor.Ms. Fondren has served the Western District of Tennessee since 2014, where she has served as senior
and lead AUSA in the Civil Rights Unit of the Criminal Division. In this role she managed
complex investigations involving multiple law enforcement partners. Four years ago, Ms.
Fondren joined the Civil Division of the United States Attorney’s Office, where she has served as
Senior Litigation Counsel. She has defended the United States in an array of civil cases, such as
employment discrimination, medical malpractice, and prisoner litigation. As head of the Financial
Litigation and Bankruptcy Divisions, she has worked with government agencies to collect debts and
represent the interests of the United States in bankruptcy litigation. Additionally, Ms. Fondren
has served as the Chair of the Diversity Committee and Special Emphasis Program Manager for Black
Affairs.
Ms. Fondren is married to Rickey Fondren II and they have two children. Ms. Fondren is active in
community and legal organizations including the National Bar Association, the National Black
Prosecutors Association, and Girl Scouts Heart of the South.
###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.
Pittsburgh Woman Embezzled from Two Area EmployersRead the Press Release
PITTSBURGH, Pa - A resident of Pittsburgh, PA, pleaded guilty in federal court to violating federal fraud laws of embezzling funds, United States Attorney Cindy K. Chung announced today.
Tracey Smith, 54, of the City’s Lincoln Park area, pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that between 2014 and 2018 Smith embezzled funds from two separate employers, Pro Towels and Moderne Glass, when she held executive positions with the companies.
Judge Bissoon scheduled sentencing for Feb. 16, 2023. The law provides for a total sentence of 20 years in prison, a fine of $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.
Pending sentencing, the court continued Smith’s bond.
Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation that led to the prosecution of Smith.
Parkersburg Woman Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Ashley Kawczynski, 32, of Parkersburg, pleaded guilty today to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking offense.
According to court documents and statements made in court, on July 5, 2022, Kawczynski possessed approximately 328 grams of methamphetamine, 164 grams of fentanyl and two firearms, a Ruger Model LCP Max .380-caliber semi-automatic pistol and a Springfield model Hellcat 9mm semi-automatic pistol, at her Parkersburg residence. Kawczynski admitted that she intended to distribute the drugs to other people and that she possessed the firearms to protect herself, her drugs, and her drug proceeds. Kawczynski further admitted to conspiring with others between February 2022 and July 5, 2022, to distribute fentanyl and to selling fentanyl on four occasions to a confidential informant between April and May 2022.
Kawczynski is scheduled to be sentenced on February 8, 2023, and faces a mandatory minimum of 10 years and up to life in prison, at least four years of supervised release, and a $5,250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Parkersburg Narcotics Task Force, the Wood County Sheriff’s Office, and the West Virginia State Police.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-160.
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New York Lawyer Pleads Guilty to Participating in Trip-And-Fall Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MARC ELEFANT, a New York lawyer, pled guilty today to one count of conspiracy to commit wire fraud in connection with a scheme to obtain millions of dollars in fraudulent insurance reimbursements and other compensation from fraudulent trip-and-fall accidents. ELEFANT is the third defendant to plead guilty this year. Two other defendants — ADRIAN ALEXANDER, the owner of a litigation funding company, and SADY RIBEIRO, a New York-licensed pain management doctor and surgeon — pled guilty earlier this year. ALEXANDER pled guilty to one count of conspiracy to commit wire fraud on August 30, 2022. RIBEIRO pled guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit mail fraud on September 29, 2022. All defendants pled guilty before U.S. District Judge Sidney H. Stein.
U.S. Attorney Damian Williams said: “We expect lawyers to follow the rules and act ethically on behalf of their clients, but attorney Marc Elefant acted only for himself, abusing his professional license and position of trust to steal over a million dollars from New York City businesses and their insurance companies through a massive trip-and-fall fraud scheme. Elefant and his co-conspirators preyed upon the most vulnerable members of society in order to enrich themselves. Elefant now awaits sentencing for his reprehensible crime.”
According to the Indictment, the Superseding Information filed against ELEFANT, other documents filed in this case, and statements made in court:
MARC ELEFANT, among others, was involved in an extensive fraud scheme through which fraud scheme participants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents.
The fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the fraud scheme, scheme participants recruited more than 400 Patients. In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact, the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”
After the staged trip-and-fall accidents, Patients were referred to specific attorneys, including ELEFANT, who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31,000,000.
The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including RIBEIRO. The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery. As an incentive to getting surgery, the recruited Patients were offered a payment of typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”). Patients generally were told to undergo two surgeries. Doctors in the fraud scheme were expected to, and in fact did, conduct these surgeries regardless of the legitimate medical needs of the Patients.
Members of the fraud scheme often recruited individuals who were extremely poor as Patients — individuals desperate enough to submit to surgeries in exchange for the small Post-Surgery Payments. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes. Members of the fraud scheme also recruited Patients who were drug addicts. It was also common for scheme participants to recruit Patients from homeless shelters in New York City.
The Patients’ legal and medical fees were usually paid for by litigation funding companies (the “Funding Companies”), including a company owned by ALEXANDER. Funding Companies were used even if the Patient maintained medical coverage through an insurance company or a government-subsidized program. The Funding Companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement. In exchange for funding Patients’ medical and legal costs, the Funding Companies charged the Patients high interest rates, sometimes up to 50% on medical loans and up to 100% on personal loans. The interest rates were so high that oftentimes the majority (if not all) of the proceeds that were awarded in the Fraudulent Lawsuits were paid to the Funding Companies, lawyers, including ELEFANT, doctors, and others, with the Patients receiving a much smaller percentage of the remaining recovery.
* * *
ELEFANT, 51, of Long Island, New York, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. As part of his plea agreement, ELEFANT agreed to forfeit $955,281 to the United States and to make restitution in the amount of $1,486,000.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. ELEFANT is scheduled to be sentenced on January 25, 2023, by U.S. District Judge Sidney H. Stein.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicholas Chiuchiolo, Nicholas Folly, Danielle Kudla, and Alexandra Rothman are in charge of the prosecution.
New Haven Man Sentenced to 30 Months in Federal Prison for Distributing CrackRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that on October 21, 2022, ALEXIS VIERA, 34, of New Haven, was sentenced by U.S. District Judge Michael P. Shea in Hartford to 30 months of imprisonment, followed by three years of supervised release, for distributing crack cocaine.
According to court documents and statements made in court, in 2019, the DEA New Haven Task Force began investigating a New Haven-based drug trafficking network headed by Michael Smith, also known as “Head.” The investigation, which included court-authorized wiretaps, revealed that Smith and others were distributing heroin and crack cocaine throughout the New Haven area. Viera converted cocaine into crack cocaine, supplied the drug to Smith, and sold it to other customers. Viera also received crack cocaine from Smith to distribute to his customer base.
In December 2019, Smith was intercepted on a wiretap describing having shot at a rival drug dealer. New Haven Police collected 31 shell casings from a location in the Fair Haven neighborhood where the shooting occurred. Smith was arrested on December 23, 2019.
Viera has been detained since his arrest on September 16, 2020. On September 2, 2021, he pleaded guilty to one count of conspiracy to distribute, and to possess with intent to distribute, cocaine base (“crack”).
Smith pleaded guilty to drug, firearm and money laundering charges and, on August 26, 2022, was sentenced to 13 years of imprisonment.
This investigation has been conducted by the DEA New Haven Task Force, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, West Haven, Hamden, East Haven, North Haven, Ansonia, Meriden and Derby Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Elena L. Coronado through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Nevada Man Sentenced for Bringing 17-Year-Old Girl to San Diego to Engage in Commercial Sex ActsRead the Press Release
SAN DIEGO – Samaje Evans was sentenced in federal court today to 72 months in prison for transporting a 17-year-old girl from Arizona to Nevada to San Diego for the purpose of involving her in commercial sex acts. According to his plea agreement, Evans took all the money earned by the minor - about $1,500 a day. Evans also posted commercial sex advertisements for the girl online.
Evans pleaded guilty on February 2, 2022, to one count of Coercion and Enticement.
On April 22, 2021, the San Diego Human Trafficking Task Force (SDHTTF) received an alert from the National Center for Missing and Exploited Children (NCMEC) about a 17-year-old female runaway
believed to be involved in commercial sex in Texas, Arizona, Nevada and San Diego. The NCMEC alert identified a possible sex trafficker and provided social media photographs of that individual.
On April 22, 2021, Task Force Officers from the SDHTTF located the minor and Evans at a San Diego hotel. Evans had checked into the room and was in possession of a card key to the room. A search of the minor’s phone revealed messages from Evans in which he directed her to collect money from sex customers and informed the minor she would have to pay a “fee” for not following the rules. The phone also contained photographs that were used in the commercial sex advertisements. Task Force Officers also located recent videos of Evans and the minor together in the hotel room in San Diego.
“Our office will do everything we can to protect children from being exploited and harmed by sex traffickers,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and the San Diego Human Trafficking Task Force for their excellent work on this case.
“Evans’ exploitation of a minor is reprehensible,” said Special Agent in Charge Stacey Moy of the FBI’s San Diego Field Office. “The FBI will never stop fighting for minors who are victimized by criminals who care more about money than people. We appreciate the collaboration of our partners at the San Diego Human Trafficking Task Force and the National Center for Missing and Exploited Children for working closely with us to ensure justice is served and victims receive all the resources they need.”
DEFENDANT Case Number 22cr01513-CAB
Samaje Evans Age: 27 Las Vegas, NV
SUMMARY OF CHARGE
Coercion and Enticement – Title 18, U.S.C., Section 2422(a) Maximum penalty: Life in Prison; $250,000 fine
AGENCY
Federal Bureau of Investigation & The San Diego Human Trafficking Task Force
This case is the result of the ongoing efforts of the Violent Crime and Human Trafficking (VCHT) Section, which leads collaborations between federal and local law enforcement in the investigation and prosecution of cases involving violent crimes, firearms and gang cases; sex trafficking and child exploitation; civil rights, and labor trafficking. The VCHT Section oversees the Southern District of California Coordinators for Project Safe Neighborhoods, Human Trafficking, and Project Safe Childhood. The VCHT Section also provides federal prosecutors to the downtown San Diego Violent Crimes Task Force-Gang Group, the North County Gang Task Force, and the East County Gang Task Force.
Mineral County admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Brett Leonza Freeman, of Wiley Ford, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Freeman, 38, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Hydrochloride and Cocaine Base.” Freeman admitted to working with others to sell cocaine from July 2020 to August 2021 in Mineral County and elsewhere.
Freeman faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Miami-Area Man Pleads Guilty to Multi-District Methamphetamine Distribution ConspiracyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Hector Enrique Veliz Villeda (30, Hialeah) has pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine. Veliz Villeda faces a mandatory minimum penalty of 10 years, and up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in June and July 2022, Veliz Villeda and unknown co-conspirators were part of a methamphetamine distribution conspiracy that were moving kilogram quantities of the drug between several major cities located in the Middle and Southern Districts of Florida and the Northern District of Alabama. Veliz Villeda received shipments of methamphetamine from a co-conspirator in Birmingham, Alabama and subsequently transported the methamphetamine into the Miami and Tampa metropolitan areas for resale.
On June 14, 2022, Veliz Villeda obtained crystal methamphetamine from a co-conspirator in Alabama at his residence in Hialeah, and later sold it to a confidential source in Bradenton. The following month, Veliz Villeda again travelled from Hialeah to Bradenton and sold more crystal methamphetamine which he had received from co-conspirators.
This case was investigated by the Drug Enforcement Administration, the United States Postal Inspection Service, Homeland Security Investigations, the Bradenton Police Department and the Florida Highway Patrol. It is being prosecuted by Assistant United States Attorney David W.A. Chee.
Members of Violent Mac Ballers Gang Charged with Racketeering Conspiracy, Attempted Murder, Robbery, Narcotics, and Firearms OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York; Michael Alfonso, Acting Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”); John B. DeVito, Special Agent in Charge of the New York Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”); and Keechant Sewell, Commissioner of the New York City Police Department (“NYPD”), announced the unsealing today of a nine-count superseding indictment charging four members of the “Mac Ballers” subset of the national Bloods gang in the Bronx, New York. GLEN CARWELL, a/k/a “Tink,” a/k/a “Tinky,” SHAWNDALE LEWIS, a/k/a “Nore,” COREY BATCHELOR, a/k/a “Corey Balla,” and JORDAN TOWNSEND were charged with racketeering conspiracy, violent crimes in aid of racketeering, and firearms offenses. CARWELL and LEWIS were also charged with narcotics conspiracy. The case is assigned to U.S. District Judge Lewis J. Liman.
CARWELL was already in custody in connection with robbery and firearms charges contained in a previous indictment related to this prosecution. LEWIS was arrested this morning and presented in Manhattan federal court before U.S. Magistrate Judge Robert W. Lehrburger. BATCHELOR was also arrested this morning in North Carolina and presented before a Magistrate Judge in the Western District of North Carolina. TOWNSEND remains at large.
U.S. Attorney Damian Williams said: “We allege that for years, the Mac Baller set of the Bloods has terrorized the New York area, and especially the Bronx, by pouring addictive drugs into our community, committing robberies, and engaging in shootings. These charges reflect our commitment to keeping our community safe by targeting gang members who engage in violence, as we allege these defendants did.”
HSI New York Acting Special Agent in Charge Michael Alfonso said: “Today, we announce the arrests of multiple members of the ‘Mac Ballers’ street gang who, as alleged, have participated in escalating acts of violence, to include attempted homicide, in their efforts to protect and control their territory. HSI is committed to working with our federal, state, and local partners to disrupt and dismantle these dangerous street gangs who terrorize our neighborhoods in an effort to further their criminal enterprises.”
ATF Special Agent in Charge John B. DeVito said: “New York residents deserve to live, work, and thrive free of fear and trauma. This is yet another example of law enforcement’s commitment to ensure just that for our citizens. Thanks to the leadership of HSI and NYPD for their hard work to reduce violent crime. ATF is proud to support and work alongside our partners in the collective cause of public safety. Our neighborhoods deserve to flourish without fear or intimidation caused by violent criminal gangs.”
NYPD Commissioner Keechant L. Sewell said: “Gang violence threatens the safety of New Yorkers and puts communities in the crosshairs of drug trafficking and drug-related crimes. This case highlights the NYPD’s relentless pursuit of those few individuals who drive the violence and disorder in our city, and today’s indictment reflects our continued focus on removing them from our streets. I commend all of our partners in the U.S. Attorney’s Office for the Southern District, the New York Field Office of Homeland Security Investigations, and the New York Field Division of the ATF for their diligence on this important case.”
According to the allegations in the Superseding Indictment unsealed today in Manhattan federal court:[1]
From at least in or about late 2014 through 2022, the Mac Ballers was a criminal enterprise centered in the northeastern United States, including in the Bronx, New York, and in the jails and prisons of New York City and the State of New York. In order to make money for the gang, protect the gang’s territory, and promote the gang’s standing, members of the Mac Ballers engaged in, among other things, narcotics trafficking, fraud and identity theft, and acts of violence, including robberies and attempted murders. To that end, Mac Baller members sold heroin, cocaine, crack cocaine and marijuana, promoted their gang affiliation on social media, possessed firearms, and engaged in shootings as part of their gang membership and narcotics trafficking. As part of their membership in the gang, from 2017 to 2022, all four defendants participated in a conspiracy to commit murder in aid of racketeering, resulting in the attempted murder and assault with a dangerous weapon of a victim on October 19, 2021.
* * *
A chart containing the charges and minimum and maximum penalties each defendant faces is attached. The statutory minimum and maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by a judge.
Mr. Williams praised the outstanding investigative work of HSI, ATF, the NYPD, and the Special Agents of the United States Attorney’s Office.
The charges are the result of an ongoing Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation led by the United States Attorney’s Office for the Southern District of New York. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jacob R. Fiddelman, Peter J. Davis, Elizabeth A. Espinosa, and Frank J. Balsamello are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Defendant
Age
Charges
Minimum and Maximum Penalties
GLEN CARWELL, a/k/a “Tink,” a/k/a “Tinky”
37
Racketeering Conspiracy; Conspiracy to Commit Murder in Aid of Racketeering; Narcotics Conspiracy; Use and Brandishing of a Firearm in Furtherance of a Controlled Substance Offense; Hobbs Act Robbery; Conspiracy to Commit Hobbs Act Robbery; Use, Brandishing, and Discharge of a Firearm in Furtherance of a Crime of Violence and Controlled Substance Offense
Maximum of life in prison; mandatory minimum 17 years in prison (to run consecutive to any other sentence)
SHAWNDALE LEWIS, a/k/a “Nore”
36
Racketeering Conspiracy; Conspiracy to Commit Murder in Aid of Racketeering; Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering; Use and Discharge of a Firearm in Furtherance of a Crime of Violence; Narcotics Conspiracy; Use and Brandishing of a Firearm in Furtherance of a Controlled Substance Offense
Maximum of life in prison; mandatory minimum 17 years in prison (to run consecutive to any other sentence)
COREY BATCHELOR, a/k/a “Corey Balla”
24
Racketeering Conspiracy; Conspiracy to Commit Murder in Aid of Racketeering; Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering; Use and Discharge of a Firearm in Furtherance of a Crime of Violence
Maximum of life in prison; mandatory minimum 10 years in prison (to run consecutive to any other sentence)
JORDAN TOWNSEND
26
Racketeering Conspiracy; Conspiracy to Commit Murder in Aid of Racketeering; Attempted Murder and Assault with a Dangerous Weapon in Aid of Racketeering; Use and Discharge of a Firearm in Furtherance of a Crime of Violence
Maximum of life in prison; mandatory minimum 10 years in prison (to run consecutive to any other sentence)
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Martinsburg woman admits to role in drug distribution operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Farrah Doreen Fletcher, of Martinsburg, West Virginia, has admitted to her role in a methamphetamine distribution operation, United States Attorney William Ihlenfeld announced.
Fletcher, age 45, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine.” Fletcher admitted to working with others to sell methamphetamine from August to October 2021 in Hampshire County and elsewhere.
Fletcher faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated. The task force consists of the Federal Bureau of Investigation; the Drug Enforcement Administration; West Virginia State Police Bureau of Criminal Investigation; the Mineral County Sheriff's Office; the Hardy County Sheriff’s Office; the Grant County Sheriff’s Office; and the Keyser Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Man Who Sold Pistol Used in Synagogue Hostage Crisis Sentenced to 95 Months in Prison for Gun CrimeRead the Press Release
The man who sold Malik Faisal Akram the gun he used to kidnap hostages in a Texas synagogue was sentenced today to nearly eight years in prison for a firearm crime, announced United States Attorney for the Northern District of Texas Chad E. Meacham.
Henry “Michael” Dwight Williams, 33, was charged via criminal complaint in January and indicted the following month. He pleaded guilty to being a felon in possession of a firearm in June and was sentenced today by Chief U.S. District Judge David Godbey to 95 months in federal prison.
“This defendant, a convicted felon, had no business carrying – much less buying and selling – firearms. Whether he suspected his buyer would use the gun to menace a community of faith is legally irrelevant: In the U.S., convicted felons cannot possess firearms,” said U.S. Attorney Chad Meacham. “The Justice Department is committed to prosecuting those who violate our nation’s federal firearm laws, which are designed to keep guns from falling into the hands of dangerous offenders. We are grateful to the FBI, which sprang into action as soon as the synagogue hostage crisis began, and to the agents who worked tirelessly to track the weapon from Mr. Akram to the defendant.”
“Tireless days of nonstop investigation revealed the connection of Mr. Akram to Mr. Williams, we are grateful to the many law enforcement agencies and personnel that traced the weapon’s nefarious source,” said Dallas FBI Special Agent in Charge Matthew DeSarno. “We are fortunate to be able to celebrate the brave actions of the hostages and will continue to support Congregation Beth Israel and the Jewish community in their process of healing.”
According to the complaint, Mr. Williams – a felon previously convicted of aggravated assault with a deadly weapon and attempted possession of a controlled substance – sold Mr. Akram a semiautomatic Taurus G2C pistol on Jan. 13. In plea papers, Mr. Williams admitted to possession of that firearm despite his prior conviction.
According to the complaint, on Jan. 15, agents recovered the pistol from Colleyville’s Congregation Beth Israel synagogue, where Mr. Akram had held four individuals hostage for several hours before he was fatally shot by federal law enforcement.
As part of its intensive investigation into the hostage taking, the FBI tied Mr. Williams to Mr. Akram through an analysis of Mr. Akram’s cellphone records, which showed the pair exchanged a series of calls from Jan. 11 through Jan. 13.
When agents first interviewed Mr. Williams on Jan. 16, Mr. Williams stated that he recalled meeting a man with a British accent, but that he could not recall the man’s name. (Mr. Akram was a British citizen.) Agents interviewed the defendant again on Jan. 24, after he was arrested on an outstanding state warrant. After viewing a photo of Mr. Akram, Mr. Williams confirmed he sold Mr. Akram the handgun at an intersection in South Dallas. Analysis of both men’s cellphone records showed that the two phones were in close proximity on Jan. 13.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation with the assistance of the Dallas Police Department, the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division, Homeland Security Investigations’ Dallas Field Division, and the Colleyville Police Department. Assistant U.S. Attorney Joe Magliolo is prosecuting the case with the support of Assistant U.S. Attorneys Errin Martin, Jay Weimer, Alex Lewis, Nicole Dana, P.J. Meitl, and Lindsey Beran (fmr), along with Trial Attorneys David Smith and Michael Dittoe of the Justice Department’s National Security Division.
Man Pleads Guilty to Distributing Methamphetamine that Caused Death of Iowa WomanRead the Press Release
A man who distributed methamphetamine to a woman, which resulted in her death, pled guilty today.
Eric A. Young, age 42, from St. Ansgar, Iowa, was convicted of distribution of methamphetamine.
At the plea hearing, Young admitted to a stipulated version of facts that he provided methamphetamine to a woman from Nashua, Iowa on the night of her death. Young admitted to selling the methamphetamine to the woman in exchange for $90 and was present when the woman became unresponsive. The woman was pronounced dead at the scene.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Young remains in custody of the United States Marshal pending sentencing. Young faces the following maximum penalties: (1) not more than 20 years’ imprisonment, without the possibility of parole; (2) a fine of not more than $1 million; (3) a mandatory special assessment of $100; and (4) a term of supervised release of at least 3 years and up to life. The parties have agreed to a sentence between 168-210 months. The Court is not bound by this agreement.
This case was investigated by the Iowa Division of Criminal Investigation and is being prosecuted by Assistant United States Attorney Jason Dorval Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2024-CJW.
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Long Island Man Sentenced to 28 Years' Imprisonment for Creating and Distributing Child PornographyRead the Press Release
Earlier today, at the federal courthouse in Central Islip, United States District Judge Joanna Seybert sentenced Christopher Bertsch to 28 years in prison for sexual exploitation of a child. As part of his sentence, Bertsch must register as a sex offender upon his release from prison and not have unsupervised contact with minors. Bertsch pleaded guilty to the charge in November 2020.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant-Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence removes a dangerous predator who not only abused minors and created videos of it but, horrifically, also operated a chat room where he instructed adults on how to abuse minors and to create and share images of it,” stated United States Attorney Peace. “The outstanding undercover work of the FBI made this prosecution possible. I urge parents and caregivers to encourage their children to tell a trusted adult if anyone asks them to engage in inappropriate behavior. Protecting children and holding those who harm vulnerable victims accountable for their actions are priorities of our Office.”
As set forth in the government’s sentencing memorandum and other court filings as well as on the record in court proceedings, Bertsch sexually abused an 18-month-old toddler, created child pornography with that victim and others, and generated a large collection of child pornography, including what he created and what he received from members of the chat room he operated. Bertsch’s child pornography trove included dozens of videos and hundreds of images of child pornography depicting the defendant engaged in sexual conduct with children. An analysis of his chat room activity revealed that Bertsch sent the images of himself abusing children to others.
In addition, in the chat room he operated, Bertsch instructed other adults on how to initiate and carry out sexual abuse of children, while recording it at the same time. Admission to Bertsch’s chat room required photographic proof of the applicant with a minor under their control. Bertsch shared photos of his sexual abuse of children and encouraged others to engage in such abuse and record it for his viewing.
This prosecution is part of Project Safe Childhood, a nationwide initiative led by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ 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 to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Charles P. Kelly and Madeline O’Connor are in charge of the prosecution.
The Defendant:
CHRISTOPHER BERTSCH
Age: 38
Wantagh, New York
E.D.N.Y. Docket No. 20-CR-109 (JS)Local man sentenced for child exploitation on the dark webRead the Press Release
HOUSTON – A 61-year-old man residing in Houston has been ordered to federal prison following multiple child pornography convictions, announced U.S. Attorney Jennifer B. Lowery.
David Craig pleaded guilty May 24 to distribution and possession of child pornography.
Today, U.S. District Judge Andrew S. Hanen sentenced Craig to a total of 108 months in federal prison. He must also serve 10 years of supervised release following his incarceration, during which time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Craig will also be ordered to register as a sex offender.
Restitution will be determined at a later date.
Craig came to the attention of law enforcement for his presence on dark web chat sites dedicated to child exploitation and advertising the distribution of child pornography. Law enforcement downloaded several images of child pornography from a particular IP address that led them to Craig’s residence.
Authorities later executed a search warrant and seized various electronic devices including a Dell laptop. Further investigation of the laptop revealed child pornography of prepubescent minors engaging in sexually explicit conduct, sado-masochistic conduct with minors and the sexual assault and torture of infants and toddlers.
Craig possessed over 18,000 images and over 4,000 videos of child pornography at his residence.
He has been and will remain in custody pending transfer to a U.S Bureau of Prisons facility in the near future.
FBI - Houston conducted the investigation with the assistance of FBI – Violent Crimes Against Children Unit in Washington, D.C.
Assistant U.S. Attorneys Sherri L. Zack and Kimberly Ann Leo along with Trial Attorney James E. Burke IV of the Child Exploitation and Obscenity Section prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Lakeland Convicted Felon Indicted for Possessing A Firearm and AmmunitionRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the return of an indictment charging Eddie Winman Thomas (32, Lakeland) with possessing a firearm and ammunition as a convicted felon. If convicted, Thomas faces a maximum sentence of 10 years in federal prison. The indictment also notifies Thomas that the United States intends to forfeit the firearm and ammunition traceable to the offense.
According to the indictment, on April 28, 2022, Thomas was in possession of a firearm and ammunition. At the time of the incident, Thomas had previous felony convictions for Hobbs Act Robbery and conspiracy to obstruct commerce by robbery. As a previously convicted felon, Thomas is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Michael R. Kenneth. The forfeiture will be handled by Assistant United States Attorney Suzanne C. Nebesky.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Kentucky Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Melvin Theophilius Hill, 38, of Ashland, Kentucky, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on May 2, 2022, law enforcement officers conducted a traffic stop of a vehicle driven by Hill near 13th Street and Ninth Avenue in Huntington. Officers searched the vehicle and found a loaded FN 509 9mm handgun in the passenger seat rear pocket. Hill admitted to possessing the firearm and placing it where officers found it during the search.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Hill knew he was prohibited from possessing a firearm because of his prior felony convictions in Boyd County, Kentucky, Circuit Court for second-degree robbery on May 9, 2008, and first-degree possession of a controlled substance on January 12, 2011.
Hill is scheduled to be sentenced on January 23, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-134.
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Kentucky Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Trevor Dean Williams, 35, of Ashland, Kentucky, pleaded guilty today to being a felon in possession of a firearm.
According to court documents and statements made in court, on May 19, 2022, law enforcement officers responded to Williams’ Huntington residence after a home alarm system alerted 911. Officer observed suspected drug paraphernalia including a blender containing a powder substance, needles and torn plastic bags as well as ammunition and gun holsters in plain view in the residence. Officers obtained a search warrant for the residence and found three loaded firearms in Williams’ bedroom: a SCCY CPX-2 9mm pistol, a Glock 27 .40-caliber pistol, and a Hi-Point CF380 .380-caliber pistol.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Williams knew he was prohibited from possessing firearms because of his prior felony convictions in Boyd County, Kentucky, Circuit Court for first-degree trafficking in a controlled substance, methamphetamine, on October 31, 2018, and second-degree assault on May 21, 2008.
Williams is scheduled to be sentenced on January 23, 2023, and faces a maximum penalty of 10 years in prison, three years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-152.
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Judge Sentences South Bay Accountant to Life in Federal Prison for Producing Child Sexual Abuse Material of Filipino VictimsRead the Press Release
LOS ANGELES – A South Bay man was sentenced today to life without parole in federal prison after he admitted to producing thousands of sexually explicit images and videos of nearly three dozen children, one of whom was exploited over the course of at least two years and performed sex acts online in exchange for money.
Billy Edward Frederick, 52, of Redondo Beach, was sentenced by United States District Judge Dale S. Fischer, who said that “to say his conduct is despicable is an understatement.”
Judge Fischer added that “life in prison adequately reflects the seriousness of the offense” in which Frederick “targeted” victims in a “part of the world where children are known for being sexually exploited.”
Frederick pleaded guilty in September 2021 to two felony offenses: production of child pornography for transportation into the United States and enticement of a minor to engage in criminal sexual activity.
According to court documents, Frederick obtained and stored in his Google accounts various images and videos depicting child sex abuse material. In messages sent to Frederick, several victims call Frederick “master.” Prosecutors said in a sentencing memorandum that Frederick exploited “young boys in the Philippines in need of money for food and school.”
Frederick admitted to producing more than 5,000 images and videos of child pornography involving at least 35 different children by requesting these children engage in specified sexually explicit activity in exchange for money. Some of the videos and images depicted minor victims under the age of 12 being used for sexual acts.
“Using Google chat to bridge their geographical divide, [Frederick], while living in Los Angeles County, exploited numerous boys who lived in the Philippines,” according to the sentencing memorandum. Frederick’s “years-long conversations with these Philippine boys were not coded; they were explicit and lurid – brimming with details regarding what defendant liked, demanded, and expected from his victims, should they wish to be paid.”
In addition to the life sentence, Judge Fischer ordered Frederick to pay $5,000 to the Justice for Victims of Trafficking Act of 2015; $5,000 to the Amy, Vicky, and Andy Child Pornography Victim Assistance Act of 2018, and $8,000 in restitution to one of the victims.
Homeland Security Investigations investigated this matter.
Assistant United States Attorney Kathy Yu of the Violent and Organized Crime Section prosecuted this case.
Husband and Wife Are Sentenced to Prison for Stealing $200,000 from A High School Booster ClubRead the Press Release
CHARLOTTE, N.C. – The former president of a Charlotte high school Booster Club and his wife were sentenced to prison today for stealing more than $239,000 from the organization. The husband was also sentenced for obtaining over $236,000 in COVID-19 relief funds to cover up the theft, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Anthony Sharper, 42, was sentenced to 30 months in prison followed by two years of supervised release. He was also ordered to pay a money judgement of $310,832.80. Deana Sharper, 47, also of Charlotte, was ordered to serve 21 months in prison and two years of supervised release and was ordered to pay a money judgment of $239,742.80.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing between 2017 and June 2020, Anthony Sharper and Deana Sharper executed a scheme to defraud and embezzle at least $239,000 from a Charlotte-area high school Athletic Booster Club by writing checks to themselves for purported reimbursement, wiring funds directly to their personal bank account, and using the Booster Club’s debit cards and credit card to pay for personal expenditures. Court documents show that, Anthony Sharper, who is a certified public accountant, also committed tax fraud by failing to report any of the embezzled funds on the couple’s joint 2018 and 2019 tax returns filed with the IRS.
According to court records, to cover up the theft and to enrich himself, between March and May 2020, Anthony Sharper submitted three fraudulent applications for federal COVID-19 relief funds, including two fraudulent Paycheck Protection Program (PPP) loan applications, one in the name of the Booster Club and one in the name of his accounting firm, A. Sharper CPA, PLLC, and an Economic Injury Disaster Loan (EIDL) application to the Small Business Administration (SBA) on behalf of his CPA firm. All three applications contained false information, including fake revenues and fake payroll and employment data. As a result of the fraudulent applications, Anthony Sharper obtained more than $236,000 in COVID-19 relief funds intended for existing businesses harmed by the coronavirus pandemic. After receiving the loan proceeds, Anthony Sharper used the funds to pay for personal expenditures and to cover up the couple’s theft of the Booster Club’s funds.
Anthony Sharper previously pleaded guilty to wire fraud, making a false statement to a financial institution, engaging in monetary transactions in criminally derived property, and tax fraud. Deana Sharper pleaded guilty to wire fraud. Both defendants were released on bond and will be ordered to report to the federal Bureau of Prisons to begin serving their sentence upon designation of a federal facility.
The FBI, USPIS, and IRS-CI investigated the case. The prosecution is handled by Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Graves County Man Charged with Federal Firearms OffenseRead the Press Release
Paducah, KY –A federal grand jury returned an indictment last week charging a Graves County, KY man with federal firearms offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division made the announcement.
According to court records, Christian Carrico, 27, of Mayfield, KY was charged with two counts of illegal transfer and possession of a machinegun and one count of possession of an unregistered firearm.
The defendant made an initial court appearance on Friday, October 21, 2022 before a U. S. Magistrate Judge of the U. S. District Court for the Western District of Kentucky. If convicted, Carrico faces up to 30 years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the sentencing guidelines and other statutory factors.
The case is being investigated by the ATF Paducah Field Office.
Assistant United States Attorney Seth Hancock, Branch Chief of the U.S. Attorney’s Paducah Office, is 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.
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Galesburg Man Sentenced to over 15 Years for Distributing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that on October 21, 2022, Chad Kraft, 41, of Galesburg, was sentenced to 188 months in prison for distributing child pornography. U.S. District Judge Paul Maloney also imposed a 20-year period of supervised release to follow Kraft’s incarceration. Judge Maloney stated, “it would be an understatement to describe Kraft’s conduct as grotesque.”
“We take very seriously the crimes of viewing, receiving, and sharing images of children being sexually abused,” said U.S. Attorney Mark Totten. “My office will continue to aggressively pursue those who contribute to the serial abuse of children through the distribution of child pornography.”
Kraft’s conviction followed his 2011 state conviction for fourth-degree criminal sexual conduct and his 2015 federal conviction for failing to register as a sex offender. Kraft also had a history of using aliases, different dates of birth, and different Social Security numbers to avoid registration and evade detection. In March 2022, law enforcement received a tip that Kraft, who had not registered as a sex offender since May 2021, was residing in Galesburg and had sexually explicit images of children on his phone. Law enforcement seized Kraft’s phone and a forensic examination showed that Kraft used a messaging application to request and share child pornography, including videos of children under the age of five being sexually abused.
“This case highlights the important role our community members play in bringing predators like Kraft to justice,” said HSI Detroit Special Agent in Charge Angie Salazar. “By seeing something and speaking up, we can all work to end the victimization of innocent children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the U.S. Department of Homeland Security and the Kalamazoo County Sheriff’s Office. It was prosecuted by Assistant U.S. Attorney Adam Townshend.
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Former Tampa Postal Employee Sentenced to over Four Years in Federal Prison for Stealing Nearly $400,000 in Federal Tax Refund Checks from the MailRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew today sentenced Kevin Mark Streeter, Jr. (38, Tampa) to four years and six months in federal prison for conspiracy, receipt of stolen government property, and aggravated identity theft. Streeter had pleaded guilty on June 14, 2022.
According to court documents, Streeter was employed by the U.S. Postal Service at a mail processing center in Sarasota. He exploited his position by stealing approximately 40 federal tax refund checks from the U.S. mail that were enroute to the intended taxpayers living in the Middle District of Florida. Streeter and others then sold or attempted to sell the checks to third parties. The tax refund checks, issued by the U.S. Department of Treasury, ranged in amounts from $4,000 to over $100,000, with an aggregate value of over $398,000.
“As a postal employee, Mr. Streeter should have been delivering the mail, not stealing it,” said Brian Payne, IRS-CI Special Agent in Charge. “Today’s sentence demonstrates the consequences for individuals, especially those in a position of trust, who steal government funds and commit identity theft.”
This case was investigated by the Internal Revenue Service - Criminal Investigation and the U.S. Postal Service – Office of the Inspector General. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Former Raleigh Investment Advisor Found Guilty in Healthcare Fraud that Targeted the Elderly and DisabledRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Raleigh man on charges of Conspiracy to Commit Health Care Fraud, Healthcare Fraud, Wire Fraud, and Aggravated Identity Theft on October 19, 2022. According to court records and evidence presented at trial, Furman Alexander Ford, 52 years old, and his co-conspirator Jimmy Guess, who pled guilty on September 16, 2020 to healthcare fraud, conspired in a scheme to defraud Medicare by submitting false claims to Medicare for mental health services that were never provided to Medicare beneficiaries. According to witness testimony and evidence presented at trial, Ford and Guess submitted over 5,000 claims to Medicare, totaling approximately $534,438, for mental health services allegedly provided to approximately 145 beneficiaries between October 2018 and February 2020. Defendant executed several fraud schemes to obtain the beneficiaries’ Medicare information. In one scheme, Ford’s company offered Electronic Health Records conversion and teletherapy counseling to assisted living homes for the elderly and disabled. In another scheme, Ford’s company offered free food in exchange for the Medicare information of low-income elderly parishioners at churches in Bladen County, and by cold calling unsuspecting victims offering telehealth services.
U.S. Attorney Easley stated: “The defendant in this case preyed upon the most vulnerable in our society - the elderly, the poor, and the disabled. We will continue to work tirelessly to bring such offenders to justice.”
"It is disturbing when fraudsters exploit vulnerable Medicare enrollees and defraud federal health care programs for personal gain,” said Special Agent in Charge Tamala E. Miles of U.S. Department of Health and Human Services Office of Inspector General. “Today’s verdict in this case shows that our agency, working with our law enforcement partners, will continue to hold bad actors accountable and protect both Medicare and those served by this program.”
Ford faces up to 52 years in prison when sentenced during Judge Dever’s January 2023 term of court.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Federal Bureau of Investigation (FBI) and the Department of Health and Human Services – Office of Inspector General (HHS-OIG) are investigating the case and Assistant U.S. Attorneys William Gilmore and Ethan Ontjes are prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00448-D-1.
Former Department of State Employee Pleads Guilty to Engaging in Illicit Sexual Conduct with Minors in the PhilippinesRead the Press Release
ALEXANDRIA, Va. – A former Department of State employee pleaded guilty today to two counts of engaging in illicit sexual conduct in a foreign place.
According to court documents, Dean Edward Cheves, 63, was serving at the U.S. Embassy in the Philippines from 2017 to 2021, during which time he met multiple minors over the internet. From December 2020 to March 2021, Cheves communicated online with a then 15- to 16-year-old Philippine minor, who he paid to produce and send to him sexually explicit images of the minor. Additionally, in February 2021, Cheves engaged in sex acts on two separate occasions with a second 16-year-old Philippine minor who he met online, using his government-issued cell phone to film the sex acts on at least one occasion. The child sex abuse material Cheves produced and received of these minors was found on devices seized from Cheves’s embassy residence in the Philippines. Cheves knew the ages of both minors at the time he engaged in the conduct.
Cheves is scheduled to be sentenced on January 20, 2023. He faces a maximum penalty of up to 30 years in prison on each count. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
The U.S. Department of State’s Diplomatic Security Service (DSS) investigated the case with valuable assistance provided by the Homeland Security Investigations Attaché’s Office in the Philippines and the Philippine National Police.
Assistant U.S. Attorneys Lauren Pomerantz Halper and Zoe Bedell and Trial Attorney Gwendelynn Bills of the Justice Department’s Child Exploitation and Obscenity Section are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-177.
Former Department of State Employee Pleads Guilty to Engaging in Illicit Sexual Conduct in the PhilippinesRead the Press Release
A former U.S. Department of State employee pleaded guilty today to engaging in illicit sexual conduct in a foreign place.
According to court documents, Dean Edward Cheves, 63, was serving at the U.S. Embassy in the Philippines from 2017 to 2021, during which time he met multiple minors over the internet. From December 2020 to March 2021, Cheves communicated online with a then 15 to 16-year-old Philippine minor, who he paid to produce and send to him sexually explicit images of the minor. Additionally, in February 2021, Cheves engaged in sex acts on two separate occasions with a second 16-year-old Philippine minor who he met online, using his government-issued cell phone to film himself doing so on at least one of those occasions. The child sex abuse material that Cheves produced and received of these minors were found on devices seized from Cheves’s embassy residence in the Philippines. Cheves knew the ages of both minors at the time he engaged in the conduct.
Cheves is scheduled to be sentenced on Jan. 20, 2023 and faces a maximum penalty of up to 30 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.
The U.S. Department of State’s Diplomatic Security Service (DSS) Office of Special Investigations investigated the case with valuable assistance provided by the DSS Regional Security Office and the Homeland Security Investigations Attaché’s Office in the Philippines and the Philippine National Police.
Trial Attorney Gwendelynn Bills of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorneys Lauren Pomerantz Halper and Zoe Bedell for the Eastern District of Virginia are prosecuting the case.
This case is 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 http://www.justice.gov/psc.
Flexsteel Industries Agrees to Pay for the Cleanup of the Lane Street Ground Water Contamination Superfund Site in Elkhart, IndianaRead the Press Release
Flexsteel Industries Inc. has agreed to a consent decree that requires it to pay $9.8 million for the cleanup of contamination at the Lane Street Ground Water Contamination Superfund Site (Lane Street Site) in Elkhart, Indiana, and to reimburse the Environmental Protection Agency (EPA) for a portion of its past costs incurred at the Lane Street Site.
According to the complaint filed simultaneously with the proposed consent decree in the Northern District of Indiana, Flexsteel is liable for the cleanup because its former manufacturing operations contributed to contamination at the Lane Street Site. Previously, EPA entered into administrative settlements with two other potentially responsible parties for their alleged contributions to the contamination at the Lane Street Site.
“This settlement ensures that the responsible party and not the taxpayers fund the cleanup of the Lane Street Groundwater Contamination Superfund Site,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The cleanup funded by this agreement protects the environment and the health of the surrounding community.”
“This is an excellent settlement that funds necessary cleanup of a contaminated groundwater plume in Elkhart, Indiana,” said U.S. Attorney Clifford Johnson for the Northern District of Indiana. “This cleanup will protect the drinking water and health of Elkhart residents.”
“Groundwater is a drinking water source for wells and public water systems and it also flows to above-ground rivers and streams,” said EPA Regional Administrator Debra Shore. “Through this settlement and others like it, EPA is taking action to protect the health of communities and the environment by holding polluters accountable for groundwater contamination.”
“Indiana proudly works with our federal partners and industries across our state to make sure the health of Hoosiers and our environment is protected,” said Commissioner Brian Rockensuess of the Indiana Department of Environmental Management. “This settlement is great news for the people of Elkhart and will help ensure the cleanup of long-standing water contamination.”
The Lane Street Site consists of approximately 65 acres of residential and light industrial properties in Elkhart, Indiana, impacted by a groundwater plume contaminated primarily with solvents and degreasers such as trichloroethene and tetrachloroethene. In 2016, EPA issued its record of decision for the Lane Street Site that selected a remedy for treating the groundwater plume by breaking down the contamination into harmless compounds. The proposed consent decree funds implementation of the selected remedy.
The consent decree is subject to a 30-day public comment period and final court approval and will be available for public review on the Department of Justice website at www.usdoj.gov/enrd/Consent_Decrees.html.
More information about the Site is available on the Lane Street Ground Water Contamination website (https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0510229).
Flexsteel Industries Agrees to Pay for the Cleanup of the Lane Street Ground Water Contamination Superfund Site in Elkhart, IndianaRead the Press Release
WASHINGTON – Flexsteel Industries Inc. has agreed to a consent decree that requires it to pay $9.8 million for the cleanup of contamination at the Lane Street Ground Water Contamination Superfund Site (Lane Street Site) in Elkhart, Indiana, and to reimburse the Environmental Protection Agency (EPA) for a portion of its past costs incurred at the Lane Street Site.
According to the complaint filed simultaneously with the proposed consent decree in the Northern District of Indiana, Flexsteel is liable for the cleanup because its former manufacturing operations contributed to contamination at the Lane Street Site. Previously, EPA entered into administrative settlements with two other potentially responsible parties for their alleged contributions to the contamination at the Lane Street Site.
“This settlement ensures that the responsible party and not the taxpayers fund the cleanup of the Lane Street Groundwater Contamination Superfund Site,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The cleanup funded by this agreement protects the environment and the health of the surrounding community.”
“This is an excellent settlement that funds necessary cleanup of a contaminated groundwater plume in Elkhart, Indiana,” said U.S. Attorney Clifford Johnson for the Northern District of Indiana. “This cleanup will protect the drinking water and health of Elkhart residents.”
“Groundwater is a drinking water source for wells and public water systems and it also flows to above-ground rivers and streams,” said EPA Regional Administrator Debra Shore. “Through this settlement and others like it, EPA is taking action to protect the health of communities and the environment by holding polluters accountable for groundwater contamination.”
“Indiana proudly works with our federal partners and industries across our state to make sure the health of Hoosiers and our environment is protected,” said Brian Rockensuess, Commissioner of the Indiana Department of Environmental Management. “This settlement is great news for the people of Elkhart and will help ensure the cleanup of long-standing water contamination.”
The Lane Street Site consists of approximately 65 acres of residential and light industrial properties in Elkhart, Indiana, impacted by a groundwater plume contaminated primarily with solvents and degreasers such as trichloroethene and tetrachloroethene. In 2016, EPA issued its record of decision for the Lane Street Site that selected a remedy for treating the groundwater plume by breaking down the contamination into harmless compounds. The proposed consent decree funds implementation of the selected remedy.
The consent decree is subject to a 30-day public comment period and final court approval and will be available for public review on the Department of Justice website at www.usdoj.gov/enrd/Consent_Decrees.html.
More information about the Site is available on the Lane Street Ground Water Contamination website (https://cumulis.epa.gov/supercpad/cursites/csitinfo.cfm?id=0510229).
Final Defendant Sentenced to 6 Years in Prison for Defrauding the Social Security AdministrationRead the Press Release
SACRAMENTO, Calif. — Darron Dimitri Ross, 36, of Charlotte, North Carolina, was sentenced today to six years in prison and $696,912 in restitution for conspiracy to defraud the United States, wire fraud, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
“Ross and his co-defendants committed a brazen fraud scheme that targeted over 200 people receiving Social Security benefits,” said U.S. Attorney Talbert. “Today’s sentence sends a strong message that we will not tolerate exploitation of government benefit programs.”
“Mr. Ross conspired with a former Social Security Administration (SSA) employee and others to use personally identifiable information stolen from SSA records to commit identity theft against beneficiaries to obtain their funds. This was an egregious crime, and his role was unconscionable,” said Gail S. Ennis, Inspector General for SSA. “This sentence holds him accountable for his actions and for restitution to those harmed. We will continue to protect the integrity of SSA programs from those who seek to defraud taxpayers. I thank the Department of Homeland Security Office of the Inspector General and the FBI for their valuable assistance in this investigation and the U.S. Attorney’s Office for prosecuting this case.”
According to court documents, between November 2015 and October 2018, Ross and co‑defendants Eric Lemoyne Willis, 46, of West Sacramento, and Joshua Bilal George, 39, of San Diego, conspired to commit fraud and steal public money from the Social Security Administration (SSA). During the conspiracy and fraud scheme, Willis worked as an SSA Operations Supervisor in Sacramento and Lodi. George was a federal law enforcement officer with the Federal Protective Service and was responsible for coordinating security at various federal buildings in California including some used by the SSA. Ross resided in Charlotte, North Carolina, and knew George because they were childhood friends.
According to court documents, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, Social Security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis would seek out PII for beneficiaries who used direct deposit for payment of large benefits. Under the terms of the defendants’ conspiracy, Willis then transferred this PII to Ross who in turn transferred some of it to George for use in the fraud scheme.
Ross and George’s roles in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. Ross also opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. If Ross succeeded in convincing an SSA representative that he was the beneficiary, he would request that the beneficiary’s direct deposit account be changed to one of the conspirators’ fraudulent accounts. The SSA then deposited benefit payments into the fraudulent account. The defendants then withdrew the funds at ATMs and spent additional funds using debit cards associated with the accounts. Ross also transferred much of the stolen proceeds to co‑conspirators for their participation in these crimes. Once the SSA became aware that a particular victim was the target of this fraud, it stopped depositing benefit payments to the fraudulent account.
The SSA has identified more than 200 beneficiaries nationwide who were targeted by these crimes, and it suffered at least $696,912 in losses caused by the defendants’ offenses. The defendants spent the proceeds of their crimes on, among other things, vacation trips and luxury items.
This case was the product of an investigation by the Social Security Administration – Office of the Inspector General, the Department of Homeland Security – Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Robert J. Artuz prosecuted the case.
On July 6, 2022, Willis was sentenced to four years in prison, and on Aug. 22, 2022, George was sentenced to six months in prison to be followed by 12 months of home confinement.
Federal Grand Jury B Indictments Announced- October 2022Read the Press Release
United States Attorney Clint Johnson today announced the results of the October 2022 Federal Grand Jury B.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Damien Arevalo-Hernandez. Possession of a Firearm by an Alien Illegally in the United States; Unlawful Reentry of a Removed Alien. Arevalo-Hernandez, 34, a Mexican national, is charged with possessing an Astra .25 semi-auto pistol while unlawfully being in the United States. He is further charged with unlawfully reentering the United States after having been removed on April 4, 2016, at or near Laredo, Texas. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney Shakema M. Onias is prosecuting the case. 22-CR-363
Wayne Allen Baker. Wire Fraud; Aggravated Identity Theft (superseding). Baker, 53, of Bixby, allegedly devised a scheme to defraud a national commercial products distributor based in California. Prosecutors allege the purpose of his scheme was to obtain thousands of dollars-worth of commercial goods from the Company in order to enrich himself. Baker told the company that he was acting on behalf of a business described as EMI in the indictment. As part of his scheme, Baker altered the name of the legitimate EMI business by inserting a hyphen into the name, thus appearing to be legitimate. Baker set up online accounts with the Company where he falsely and fraudulently represented that he was acting on behalf of EMI and was associated with EMI’s chief executive officer. Using the fraudulently created EMI account at the Company, Baker ordered commercial goods worth a total of approximately $92,098.25. He directed the goods to be delivered to his residence in Bixby where he represented himself as EMI’s chief executive officer. Baker was not associated with the company EMI and had no authority to act on its behalf, and he had no association with nor the authority to act on behalf of EMI’s chief executive officer. Baker initially made the orders appear legitimate, in part, by making bogus partial online payments to the Company. Baker was allegedly able to enrich himself with the Company’s commercial goods in the amount of $29,000 before the Company discovered the scheme. Baker was originally indicted in December 2021 and was finally located and arrested in September 2022. The FBI, U.S. Secret Service, and Bixby Police Department are the investigative agencies. Assistant U.S. Attorney Richard M. Cella is prosecuting the case. 21-CR-557
Colton Lee Barnes. Possession of Fentanyl with Intent to Distribute. Barnes, 27, of Tulsa, is charged with possessing 40 grams or more of fentanyl with the intent to distribute on May 14, 2022. The Drug Enforcement Administration and Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Joel-lyn A. McCormick is prosecuting the case. 22-CR-352
Daniel Christopher Edwards. Possession of an Unregistered Destructive Device; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country; Attempt to Commit Arson in Indian Country; Conveying False and Misleading Information Concerning an Explosive Device. Edwards, 48, of Tulsa, is charged with possessing a destructive device on Oct. 5, 2022, that had not been registered to him in the National Firearms Registration and Transfer Record. The incendiary bomb, also called a Molotov cocktail, consisted of a glass jar filled with an ignitable liquid, having a wick constructed of a cloth like material. He is further alleged to have assaulted a Holy Family Cathedral employee when he slashed him with a machete multiple times, causing serious bodily injury. He then attempted to set fire to the church when he threw the incendiary bomb at the church. Finally, he is charged with conveying misleading information concerning an explosive device at a Tulsa Reasor’s grocery store. Edwards allegedly told several individuals that if he was approached, he would push a button that “would be worse than a bomb.” See the initial Complaint press release here. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Tulsa Police Department, and FBI are the investigative agencies. Assistant U.S. Attorney Robert T. Raley is prosecuting the case. 22-CR-362
Daniel Robert Frost; Jessica Dawn Morris. Drug Conspiracy; Possession of Fentanyl with Intent to Distribute; Possession of Methamphetamine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Frost, 25, of Gore, and Morris, 31, of Vian, are charged with conspiring to distribute methamphetamine and fentanyl. Both Frost and Morris allegedly possessed with the intent to distribute 40 grams or more of fentanyl. Frost is further charged with possessing with the intent to distribute 50 grams or more of methamphetamine. Finally, Frost and Morris are charged with possessing a firearm to further their drug trafficking crimes. The Drug Enforcement Administration and the Oklahoma Highway Patrol are the investigative agencies. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting the case. 22-CR-353
Alvaro Garcia-Mendez. Unlawful Reentry of a Removed Alien. Garcia-Mendez, 30, a Mexican national, is charged with unlawfully reentering the United States after having been deported at or near Del Rio, Texas, on Jan. 22, 2020. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case. 22-CR-354
Jacob Nolan Jessup. Felon in Possession of a Firearm and Ammunition(Counts 1,2) (superseding). Jessup, 33, of Tulsa, is charged with being a felon in possession of a Canik 9 mm caliber semi-automatic pistol on March 25, 2022, and being a felon in possession of Sturm, Ruger & Company .380 caliber pistol and three rounds of ammunition on Aug. 7, 2022. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Brandon A. Skates is prosecuting the case. 22-CR-276
Brandon CJ Palmer. Robbery in Indian Country (Count 1); Assault with Intent to Commit Murder in Indian Country (Count 2); Assault of a Spouse by Strangling, and Attempting to Strangle in Indian Country (Count 3); Obstruction of Justice by Threatening Physical Force Against a Witness (Count 4); Domestic Assault in Indian Country by a Habitual Offender (Count 5); Aggravated Sexual Abuse in Indian Country (Counts 6,7); Cyberstalking (Count 9); Assault Resulting in Serious Bodily Injury in Indian Country (Counts 8,11); Extortion (Count 10); Abusive Sexual Contact by Force or Threat in Indian Country (Counts 12). On Sept. 23, 2022, Palmer, 34, of Tulsa, allegedly strangled an intimate partner with intent to commit murder, beat her, took her purse and threatened to kill her if she called the police. He further is alleged to have sexually assaulted the victim on multiple occasions from November 2021 to January 2022 and from July 2022 to Sept. 22, 2022. He is further charged with assaulting the same victim from Sept. 1, 2022, to Sept. 22, 2022; with sending threatening and harassing electronic messages to the victim from Jan. 22, 2022, to Feb. 2, 2022; and with extorting the victim. Finally, Palmer is charged with abusive sexual contact with a different victim by using force, threats and fear on Sept. 21, 2022. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case. 22-CR-355
Miles Alan Parsons. Coercion and Enticement of a Minor. From Sept. 13, 2022, to Sept. 30, 2022, Parsons, 38, of Tulsa, allegedly used electronic means to attempt to coerce and entice an individual he believed to be a minor to engage in sexual activity. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney George Jiang is prosecuting the case. 22-CR-356
Josue Ramirez-Yanez. Unlawful Reentry of a Removed Alien. Ramirez-Yanez, 36, a Mexican national, is charged with unlawfully reentering the United States after having been removed at or near Laredo, Texas on Nov. 22, 2011. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case. 22-CR-357
Brock Anthony Edward Thompson. Felon in Possession of a Firearm and Ammunition; Possession of an Unregistered Rifle Having a Barrel of Less Than 16 Inches in Length; Transportation of Livestock. Thompson, 34, of Nowata, is charged with being a felon in possession of an Anderson Manufacturing AM-15 semi-automatic rifle on March 29, 2022. He is further charged with possessing the firearm, which had a barrel of less than 16 inches, that was not registered to him in the National Firearms Registration and Transfer Record. Finally, he is charged with transporting stolen livestock on July 28, 2022. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Bartlesville Police Department, Nowata County Sheriff’s Office, and the U.S. Department of Agriculture are the investigative agencies. Assistant U.S. Attorney Alex M. Scott is prosecuting the case. 22-CR-361
Jose Manuel Vazquez-Calderon. Unlawful Reentry of a Removed Alien. Vazquez-Caleron, 38, a Mexican national, is charged with unlawfully reentering the United States after having been removed at or near Hidalgo, Texas, on about March 11, 2015, to on or about March 14, 2015. U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations is the investigative agency. Assistant U.S. Attorney William Rubens is prosecuting the case. 22-CR-358
Gilberto Jessi Vazquez-Munoz. Possession of a Firearm by an Alien Illegally in the United States. Vazquez-Munoz, 28, a Mexican National, is charged with possessing a Phoenix Arms Co. .22 caliber pistol while knowing he was unlawfully residing in the United States. The Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and the Owasso Police Department are the investigative agencies. Assistant U.S. Attorney Brandon A. Skates is prosecuting the case. 22-CR-360
El Paso Man Sentenced to over 21 Years in Prison for Methamphetamine PossessionRead the Press Release
EL PASO – An El Paso man was sentenced last week to 262 months in prison for his role in methamphetamine importation and distribution.
According to court documents and testimony at trial, on April 12, 2020, Gilberto Lopez, 40, driving a 2003 GMC Yukon, applied for entry into the U.S. from Mexico at the Paso Del Norte Port of Entry. Lopez and his passenger were referred to secondary inspection where a Customs and Border Protection (CBP) canine alerted to the vehicle for narcotics. Subsequent inspection of the Yukon revealed two black bundles containing methamphetamine under the muffler’s shield.
On May 20, 2021, a federal jury in El Paso found Lopez guilty of one count of conspiracy to import 500 grams or more of methamphetamine; one count of importation of 500 grams of methamphetamine; one count of conspiracy to possess with intent to distribute 500 grams or more of methamphetamine; and one count of possession with intent to distribute 500 grams or more of methamphetamine. The Government’s evidence at trial included Lopez’s fingerprint on an inside layer of one of the bundles.
Lopez has remained in federal custody since his arrest on April 12, 2020.
“We frequently highlight fentanyl, but methamphetamine trafficking continues to contribute to violent crime and tragic overdose incidents in our communities,” said U.S. Attorney Ashley C. Hoff. “The dedicated efforts of our law enforcement partners and prosecutions like this help to protect our communities by disrupting the flow of methamphetamine and other dangerous drugs into the United States.”
“Collaborating with our federal partners is always a priority for Homeland Security Investigations (HSI) El Paso, and this sentence exemplifies the result of our unified effort to interdict, investigate and prosecute drug traffickers who continue to poison our citizens, and who are contributing to the narcotics epidemic that is ravaging our country,” said Francisco B. Burrola, Special Agent in Charge of HSI El Paso. “HSI will continue to aggressively target, disrupt and dismantle the highest levels of transnational criminal organizations with the goal of disrupting the flow of drugs into our communities.”
HSI and U.S. Customs and Border Protection investigated the case. Assistant U.S. Attorneys John Ganz and Stanley Serwatka prosecuted the case.
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Easton Resident Sentenced to 18 Years in Federal Prison for Posing as A Teenage Boy on Social Media to Entice Minor Females to Send Him Sexually Explicit Images and Videos of ThemselvesRead the Press Release
Baltimore, Maryland - Chief United States District Judge James K. Bredar sentenced Angel Gabriel Arroyo-Angelino (“Arroyo”), age 34, a Mexican citizen residing in Easton, Maryland, today to 18 years in federal prison, followed by lifetime supervised release, for coercion and enticement of a minor to engage in illegal sexual activity. Arroyo admitted that he pretended to be a teenage boy on social media accounts, in order to induce minor females to produce and send to him, sexually explicit images and videos of themselves. Chief Judge Bredar also ordered that, upon his release from prison, Arroyo will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Chief Alan Lowrey of the Easton Police Department; and Talbot County State’s Attorney Scott G. Patterson.
According to his guilty plea, from December 24, 2017 through September 11, 2018, Arroyo used the alias “Elias Garcia” to create a social media account. Arroyo used the social media account to persuade, induce, and coerce four minor victims to produce and send him sexually explicit images and videos of themselves. Arroyo initiated contact with each of the minor victims on social media and told the victims that he was 16 years old. Arroyo used a profile picture depicting a teenaged boy to manipulate the minors he met online. Arroyo complimented the minors, sent them images of flowers and money, and made other romantic overtures to the minor victims. From these communications, Arroyo knew that the victims were underage minors. Despite that knnowledge, Arroyo persuaded the victims to send him nude images, often sending them cash in the mail if they sent the sexually explicit images and videos he requested.
The social media platform became aware of Arroyo’s misconduct in May of 2018 and terminated his Elias Garcia account. The social media platform also submitted a Cybertip to the National Center for Missing and Exploited Children (“NCMEC”) detailing a sexually explicit online conversation that Arroyo had with one of the victims, a 15-year-old female (Victim #3), which culminated in the minor sending Arroyo a sexually explicit video of herself.
After receiving the Cybertip, investigators at the Easton Police Department obtained a series of search warrants for online and phone accounts associated with the “Elias Garcia” persona, and after gathering additional information, obtained a search warrant to search Arroyo’s residence in Easton, Maryland on September 11, 2018. While executing the search warrant, detectives discovered a white envelope in Arroyo’s bedroom that contained a $50.00 bill. The envelope was addressed to an individual later identified as a 12-year-old female and Victim #3’s name was handwritten in the area where “sender” information is customarily placed. Investigators discovered that Arroyo had been engaging in communications with the 12-year-old minor through social media, offering her money in exchange for sexually explicit photos.
In addition to the white envelope, investigators also discovered a black cell phone hidden in Arroyo’s bedroom. A subsequent review of the contents of the cell phone revealed sexually explicit images of several of the minor victims, as well as evidence linking Arroyo to the “Elias Garcia” communications and to another alias “Emiel Quiross” Arroyo used to create an additional social media account after the social media platform shut down his “Elias Garcia” account. Investigators obtained a search warrant and discovered that Arroyo used the “Emiel Quiross” account to coerce and entice two additional minor victims, Victim #5 and Victim #6, to produce and send him sexually explicit images of themselves. Arroyo employed a similar pattern to manipulate Victim #5 and Victim #6, by pretending to be a 16-year-old boy and offering the minor females cash in exchange for sending him close-up images of the victims’ genitals.
On September 11, 2018, after voluntarily waiving his Miranda rights, Arroyo agreed to speak with investigators. During the interview, Arroyo used another alias when identifying himself to investigators and did not provide his real name. Arroyo admitted that the cell phone and white envelope found in his bedroom belonged to him. Arroyo claimed that he was mailing the money to his “ex-girlfriend.” When asked why Victim #3’s name was handwritten on the top-left “sender” portion of the envelope, Arroyo denied knowing Victim #3, and claimed that he made up the name of a female to place on the envelope so his “ex-girlfriend’s” new boyfriend would not become suspicious regarding the source of the money she received in the envelope.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the “Resources” tab on the left of the page.
United States Attorney Erek L. Barron commended the FBI, the Easton Police Department and the Talbot County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Durango Business Owners Plead Guilty to Federal Income Tax EvasionRead the Press Release
Durango - The U.S. Attorney’s Office for the District of Colorado announced that Kenneth and Suzanne Fusco of Durango, Colorado pleaded guilty to federal income tax evasion on October 13, 2022.
According to the plea agreement, the defendants jointly operated a restaurant in downtown Durango, Colorado. During the tax years 2014 through 2019, the defendants willfully overstated their business expenses to reduce their tax liability. Specifically, the defendants categorized personal expenses as “customer supplies” on their accounting software, which was then transmitted to tax professionals to be filed with the Internal Revenue Service. The couple also provided a signed statement to their tax professionals indicating that the information they were providing was “complete and correct to the best of our knowledge,” when in fact the defendants knew they were not providing accurate information and had unreported business income totaling $933,586. This resulted in a tax loss to the government of $160,536.
The Fuscos face a prison sentence ranging from 12 to 41 months, restitution in the amount of $160,536, and a fine of $5,500 to $55,000, plus interest and penalties. A sentencing hearing is scheduled for February 6, 2023.
This case was investigated by the Internal Revenue Service Criminal Investigation. Assistant U.S. Attorneys Nikki Cassidy and Jeffrey Graves handled the prosecution.
Case Number: 22-cr-00311-REB-JMC
Dover Man Sentenced for Killing Bald EagleRead the Press Release
YOUNGSTOWN –A Dover, Ohio, man was sentenced today by U.S. Magistrate Judge Carmen E. Henderson to one year of probation and was ordered to pay a $4,000 fine and $1,500 in restitution to the United States Fish and Wildlife Service after he pleaded guilty to shooting and killing a bald eagle.
“The prosecution of crimes committed against our district’s wildlife and natural resources, including the national bird of the United States, are important duties of the U. S. Attorney’s Office,” said First Assistant U.S. Attorney Michelle M. Baeppler. “Individuals who senselessly kill bald eagles and other federally protected migratory birds can expect to be punished similarly.”
“There is no excuse for knowingly shooting and killing a bald eagle,” said Special Agent in Charge John Brooks of the Office of Law Enforcement with the U.S. Fish and Wildlife Service. “Working with our state partners in Ohio, our agents investigated this senseless killing. Thanks to their work, the defendant has lost his hunting rights and will now pay substantial fines.”
According to court documents, David B. Huff, 79, routinely conducted inspections of farmland and several fields that he owned in Tuscarawas County for the presence of pests and rodents. On October 7, 2021, during one of these inspections, Huff shot and killed a bald eagle with a scoped rifle at a distance of approximately 100 feet.
After shooting the eagle, Huff picked up the animal and discarded it in the tree line of a bordering field.
On June 21, 2022, Huff pleaded guilty to a violation of the Bald and Golden Eagle Protection Act. The Bald and Golden Eagle Protection Act of 1940 prohibits anyone, without a permit, from, among other actions, shooting bald or golden eagles.
As part of his sentence, Huff is banned from hunting for a five-year period and the rifle and ammunition seized during the investigation by the United States Fish and Wildlife Service will be destroyed.
This case was investigated by the United States Fish and Wildlife Service with assistance provided by the Ohio Department of Natural Resources, Division of Wildlife. This case was prosecuted by Assistant U.S. Attorney Brad J. Beeson.
District Man Sentenced to Nine-Year Prison Term for Fatally Shooting Man in Southeast WashingtonRead the Press Release
WASHINGTON – Lloyd Patterson-Ross, 21, of Washington, D.C., has been sentenced to a nine-year prison term for fatally shooting a man last year at a gas station in Southeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Patterson-Ross pleaded guilty in June 2022, in the Superior Court of the District of Columbia, to voluntary manslaughter while armed. The plea agreement, which was contingent upon the Court’s approval, called for an agreed-upon term of 7 ½-to-9 years in prison. The Honorable Marisa Demeo accepted the plea and sentenced Patterson-Ross accordingly on Oct. 21, 2022. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, on Nov. 22, 2021, at approximately 10:15 p.m., Patterson-Ross was at a gas station in the 4600 block of South Capitol Street SE along with the victim, Dawaan Saunders. Mr. Saunders, who was armed, along with another individual attempted to rob Patterson-Ross and his associates. The robbery attempt failed, and Mr. Saunders attempted to flee. He ran across the street to another gas station but dropped his firearm as he was running. He then attempted to enter a vehicle but was unsuccessful.
Patterson-Ross subsequently picked up the firearm on the ground and chased Mr. Saunders. He then shot Mr. Saunders, causing him to fall. Patterson-Ross then fled. But after seeing Mr. Saunders attempt to get back up, he came back and shot him multiple times at close range. Mr. Saunders, 30, was shot 14 times and subsequently died.
Patterson-Ross was arrested on Dec. 20, 2021. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuels and Victim/ Witness Specialist Karina Hernandez.
Finally, they commended the efforts of Assistant U.S. Attorneys Shehzad Akhtar who investigated and prosecuted the case.
Detroit Man Sentenced to over 15 Years for Methamphetamine Trafficking in Johnson and Magoffin CountiesRead the Press Release
PIKEVILLE, Ky. — A Detroit man, Jayshawn Robinson, 30, was sentenced on Friday to 185 months in prison, by U.S. District Judge Robert E. Wier, for his involvement in a conspiracy to distribute heroin and 500 grams or more of methamphetamine.
On August 12, 2021, a Johnson County Sheriff’s Deputy conducted a search of the residence of Charles Chandler in Johnson County. During the search, law enforcement seized over 500 grams of methamphetamine that Chandler had obtained from Jayshawn Robinson.
Robinson pleaded guilty to aggravated drug trafficking charges, in March 2022. According to Robinson’s plea agreement, between April of 2021 and August 12, 2021, he had been regularly importing drugs into Johnson and Magoffin Counties to supply drug dealers there, including Chandler.
Charles Chandler was sentenced to 90 months in prison, in June of 2022. Also charged in the conspiracy were Ashley and Cory Johnson of Magoffin County. For their roles in the conspiracy, Cory Johnson was sentenced to 46 months and Ashley Johnson was sentenced to 80 months.
Under federal law, the defendants must serve 85 percent of their prison sentences. Upon their release from prison, they will be under the supervision of the U.S. Probation Office.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; Col. Phillip Burnett, Commissioner of the Kentucky State Police; and Doug Saylor, Sheriff of Johnson County, jointly announced the sentences.
The investigation was conducted by the DEA, the Johnson County Sheriff’s Department, Operation UNITE, and the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Andrew Trimble.
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DEA’s National Prescription Drug Take Back Day set for Oct. 29, 2022Read the Press Release
BILLINGS – The U.S. Attorney’s Office for the District of Montana joins the Drug Enforcement Administration in support of the National Prescription Drug Take Back Day on Saturday, Oct. 29. The biannual event will be from 10 a.m. to 2 p.m. at sites across Montana, including two DEA sites in Billings. The event is an effort to rid homes of potentially dangerous, expired, unused and unwanted prescription drugs.
This initiative addresses a vital public safety and public health issue. Medicines that languish in homes are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses from these drugs.
“As we face an epidemic of opioid deaths, overdoses, and addictions, I urge Montanans to help protect their loved ones, friends, and community by disposing of unused or expired prescription drugs at collection sites across the state. The DEA’s Take Back Day is an important, safe, and convenient way to clean out your medicine cabinet,” U.S. Attorney Jesse Laslovich said.
“Opiate overdoses are occurring throughout the United States, and Montana is no different. But we can all pitch in to help stop this epidemic,” said DEA Montana Resident Agent in Charge Stacy Zinn-Brittain. “I encourage everyone to clean out their medicine cabinets and nightstands of expired or unneeded prescription medicine, especially opioids, and to bring them to DEA’s designated Take Back locations. Together, we can make a difference.”
The DEA will have two drop off locations in Billings. The locations are the Elks Lodge, 934 Lewis Ave., and the U.S. Navy Operational Support Center, 2917 Gabel Road.
More than 27 sheriff’s offices, police departments and federal agencies across Montana are participating in Take Back Day. Information about collection sites and more information about event is available here: https://takebackday.dea.gov/
During the last Take Back Day held on April 30, 2022, 4,427 law enforcement participants at 5,144 collection sites brought in a total weight of 721,093 pounds, or 360 tons, of drugs. This brings the total weight collected to 15.9 million pounds, or more than 7,995 tons, of prescription drugs collected in the history of the program. Collection results may include materials other than prescription drugs.
During the April 30, 2022 event, Montanans turned in 1,513 pounds of prescription drugs at 33 collection sites. Thirty-two law enforcement agencies participated.
In addition to DEA’s National Drug Take Back Day on Oct. 29, prescription drugs can be disposed of any day throughout the year at any of the 11,000 authorized collectors. For more information on collection sites, visit: https://apps2.deadiversion.usdoj.gov/pubdispsearch/spring/main?execution=e1s1
For more information about the disposal of prescription drugs or about the Oct. 29 Take Back Day event, go to www.DEATakeBack.com.
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Cordele Man Pleads Guilty to Robbing Planters First BankRead the Press Release
ALBANY, Ga. – A Cordele, Georgia, resident pleaded guilty today in federal court to robbing a local bank.
Donald Wellons, Jr., 26, pleaded guilty to one count of robbery before U.S. District Judge Leslie Abrams Gardner. Wellons faces a maximum of 20 years in prison to be followed by three years of supervised release and a $250,000 fine. A sentencing date will be scheduled by the Court.
“Bank robbery is a crime of violence and intimidation, affecting the victims and the larger community,” said U.S. Attorney Peter D. Leary. “The Cordele Police Department’s speedy apprehension of a dangerous individual in this case underscores their commitment to this community’s sense of peace and safety.”
“Thanks to the quick reaction of our local law enforcement partners, Wellons was arrested and unable to threaten any more innocent victims,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Wellons now faces serious prison time without the opportunity for parole, where he will no longer be able to wreak havoc in his community.”
“Officers with the Cordele Police Department did an outstanding job working this case, from the initial response to the investigation and—ultimately—the conviction,” said Cordele Police Chief Jalon J. Heard. “As officers, we take an oath to serve and protect the communities in which we work. I hope that with this conviction, the citizens of Cordele know that we take that oath very seriously and take pride in our community.”
According to court records, Wellons entered the Planters First Bank in Cordele on the morning of Sept. 28, 2021, and handed a bank teller a threatening note that read, “Do you want to make it home today?” The teller was slow to respond, so Wellons reached towards his waistband and indicated he had a weapon—believed to be a firearm at the time of the incident but later determined to be a knife—then demanded money from the teller drawer. The bank teller emptied a drawer of cash into a bag furnished by Wellons, who demanded more money. When Wellons saw the drawer was empty, he left the bank.
Cordele Police Department officers immediately recognized Wellons from crime scene images as the suspect and quickly located him at his residence. A family member consented to a search of the home. In Wellons’ bedroom, officers found the stolen cash, the bag, a knife and the threatening note he had passed to the bank teller. Wellons has a lengthy criminal history in the Cordele community to include identity theft fraud, unauthorized discharge of firearms and possession of a firearm by a felony first offender.
This case was investigated by the Cordele Police Department and FBI.
Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
Convicted Felon Indicted for Distribution of Methamphetamine and Illegal Possession of A FirearmRead the Press Release
Tampa, FL - United States Attorney Roger B. Handberg announces the return of an indictment charging Johnathan Anton Williams (38, Ruskin) with distribution of methamphetamine, possessing a firearm as a convicted felon, and possessing a firearm in furtherance of a drug trafficking crime. If convicted of the drug offense, Williams faces a maximum term of 20 years in federal prison. If convicted of the firearms offenses, he faces a minimum mandatory penalty of 5 years, up to life, in federal prison for carrying a firearm in furtherance of drug trafficking crime, and up to 10 years in federal prison for possessing a firearm as a convicted felon. The indictment also notifies Williams that the United States intends to forfeit the firearm and ammunition traceable to the offense.
According to the indictment, on May 4, 2022, Williams was selling methamphetamine, during which time he had a firearm and ammunition in his possession. At the time of the incident, Williams had previous felony convictions for robbery and possession of cocaine, possession of a controlled substance with intent to distribute, and being a felon in possession of a firearm. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hillsborough County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Michael R. Kenneth. The forfeiture will be handled by Assistant United States Attorney James A. Muench.
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 out 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 first place, setting focused and strategic enforcement priorities, and measuring the results.
Connecticut Man Faces Federal Drug Charge After Northfield ArrestRead the Press Release
The Office of the United States Attorney for the District of Vermont announced today that Raymond Rivera, 33, of Hartford, Connecticut, was arrested last Thursday and charged on Friday by criminal complaint. Rivera was charged with possessing with intent to distribute fentanyl and cocaine on October 20, 2022. Rivera appeared before United States Magistrate Judge Kevin J. Doyle this afternoon. He was detained pending a hearing scheduled for this Thursday.
According to court records, the Northfield Police Department initiated a drug trafficking investigation aimed at a residence in Northfield. Northfield Police coordinated with the Federal Bureau of Investigation to assist with the investigation. On the morning of October 20, 2022, law enforcement executed a state search warrant at the residence. Approximately 128 grams of suspected fentanyl and approximately 230 grams of suspected cocaine were seized during the search. Rivera, who was at the residence, was arrested at the time of the search.
The United States Attorney’s Office emphasizes that a criminal complaint contains allegations only and that Rivera is presumed innocent until and unless convicted of a crime. If convicted of the charge in the complaint, Rivera faces a maximum possible sentence of 20 years in prison. Any sentence imposed would be informed by the United States Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the coordinated investigatory efforts of the Northfield Police Department and the Federal Bureau of Investigation.
The prosecutor is Assistant United States Attorney Paul Van de Graaf. Rivera is represented by Allan Sullivan, Esq.
Chinese Intelligence Officers Charged with Using Academic Cover to Target Individuals in United StatesRead the Press Release
TRENTON, N.J. – A federal indictment was unsealed today charging four Chinese nationals, including three Ministry of State Security (MSS) intelligence officers, in connection with a long-running intelligence campaign targeting individuals in the United States to act as agents of the People’s Republic of China (PRC), U.S. Attorney Philip R. Sellinger and National Security Division Assistant Attorney General Matthew Olsen announced.
As alleged in the indictment, from at least 2008 to 2018, Wang Lin, Bi Hongwei, Dong Ting, aka Chelsea Dong, Wang Qiang, and others engaged in a wide-ranging and systematic effort to target and recruit individuals to act on behalf of the PRC in the United States with requests to provide information, materials, equipment, and assistance to the Chinese government in ways that would further China’s intelligence objectives. These recruitment efforts included targeting professors at universities, a former federal law enforcement and state homeland security official, and others to act on behalf of, and as agents of, the Chinese government.
As part of the conspiracy, MSS intelligence officers Wang Lin, Dong Ting, and others used a purported academic institute at Ocean University of China – referred to as the Institute for International Studies (IIS) – as cover for their clandestine intelligence activities. Acting under cover as the purported director of the IIS, Wang Lin, in coordination with other MSS operatives operating under the guise of academics at the IIS, targeted professors at American universities and others in the United States with access to sensitive information and equipment.
“This indictment drives home the fact that the intelligence risk posed by MSS continues to be real, ever-present, and significant,” U.S. Attorney Sellinger said. “Everyone in the United States – and especially those in academic, business, military, or government positions that have access to sensitive information or equipment – should take heed of the risk that the MSS poses to our democracy and way of life.”
“These defendants cloaked themselves and their motives in order to get access to our higher learning institutions and recruit others to betray this nation. All intended to give China a leg up,” Special Agent in Charge James Dennehy said. “The FBI would never let that happen. The safety of the citizens of the United States and the security of our nation are our top priorities. When foreign adversaries threaten either of those two things – whether on our soil or from another country; whether in-person or through cyber channels – we will use every resource at our disposal to uncover their espionage, thwart their malign influence, and bring them to justice.”
According to the indictment unsealed today:
The threat posed by the PRC’s ongoing, wide-ranging, and systematic effort to collect intelligence information from United States sources is significant and ongoing. China’s civilian intelligence agency, the MSS, is responsible for conducting counterintelligence and foreign intelligence activities, as well as political security for the PRC. The MSS and its regional bureaus focus on identifying and influencing the foreign policy of other countries, including the United States, by seeking to obtain information on political, economic, and security policies that might affect the PRC, along with military, scientific, and technical information of value to the PRC. The MSS and its regional bureaus are tasked with conducting clandestine and covert human source operations, of which the United States was and remains a principal target. Chinese intelligence services, including the MSS, utilize a variety of state ministries, societies, academic institutions, and the Chinese military-industrial complex to support intelligence activities, including by providing cover jobs to operatives. The investigation revealed that the defendants used one such purported academic institution – the IIS – as cover for their intelligence activities for the MSS.
MSS intelligence officers Wang Lin, Bi, Dong, and others, acting for and on behalf of the MSS and the Chinese government, systematically targeted United States persons, including but not limited to a coconspirator who was a resident of the state of New Jersey and a second individual who was a former federal law enforcement officer and state homeland security official and a professor at an American university.
Among other things, the conspiracy targeted the second individual by inviting the individual in 2008 and 2018 on all-expenses-paid trips to China sponsored by the IIS. During those trips, Wang Lin, Dong, and others sought to recruit this individual as a human source, requesting that the individual provide sensitive fingerprint technology, information, and assistance with stopping planned protests along the 2008 Olympic Games torch route in the United States, which the conspirators expressed would be “embarrassing” to China. The individual also was requested to sign a contract for purported consulting services with a Chinese company whose “core value” was the “national interest and national security” of China, with an objective to “protect the national interest and Chinese enterprises’ overseas interest[s]” and to “build sources and channels to collect security information.” Recognizing Wang Lin, Dong, and others as Chinese intelligence officers, the individual refused these requests and reported them to law enforcement.
The conspiracy also targeted the coconspirator in New Jersey by tasking the coconspirator to take specific action in the United States in furtherance of the MSS’ intelligence objective. Wang Qiang coordinated a meeting in 2016 between the coconspirator, Wang Lin, and Bi Hongwei in the Bahamas, at which time MSS intelligence officers Wang Lin and Bi directed the coconspirator to obtain United States currency and provide it to a designated individual in New Jersey. The coconspirator returned to New Jersey and did as Wang Lin and Bi instructed. Wang Qiang then visited the coconspirator in New Jersey, at which time Wang Qiang and the coconspirator discussed in detail their and others’ activities taken on behalf of the Chinese government in the United States.
Wang Lin, 59, Bi, age unknown, Dong 40, and Wang Qiang, 55, all are nationals and residents of the People’s Republic of China. They each are charged in the indictment with conspiracy to act in the United States as agents of a foreign government, namely, the People’s Republic of China, without prior notification to the Attorney General of the United States, as required by law, and to direct such unlawful action by others in the United States. The conspiracy charge carries a statutory maximum term of imprisonment of five years and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys J. Brendan Day, Attorney-in-Charge of the Trenton Branch Office, Joyce M. Malliet, Chief of the Office’s National Security Unit, and Trial Attorney David C. Recker of the Counterintelligence and Export Control Section of the National Security Division.
The charges and allegations contained in the indictment are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Chinatown Meat Distributor Required to Pay $250,000 Civil Penalty for Violating Food Safety Consent DecreeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, and Paul Kiecker, Administrator of the Food Safety and Inspection Service of the U.S. Department of Agriculture (“USDA-FSIS”), announced today that a federal district court has approved an agreement (“Agreement”) resolving violations by defendants CHUNG SHING MEATS, INC., a/k/a “New Chung Hing Meats, Inc,” WING HONG CHEUNG, MIAO HE FENG, YIU KWAN CHEUNG, and TIAN LUN FENG (collectively, the “defendants”) of a previously entered judicial consent decree requiring defendants to comply with food safety laws at their meat distributorship in Chinatown, Manhattan. Today’s Agreement imposes a $250,000 civil penalty on defendants, which equals the highest civil penalty ever imposed for such violations.
U.S. Attorney Damian Williams said: “This Office has zero tolerance for defendants who continue in their ways after entering into consent decrees in which they commit to come into compliance. Such conduct is all the worse where, as here, the consent decree was designed to protect the public health. The significant financial penalty should serve as notice to all defendants that they must live up to their commitments and comply with the law.”
FSIS Administrator Paul Kiecker said: “FSIS’s authority to enforce the Federal Meat Inspection Act and the Poultry Products Inspection Act is clear. Our inspection personnel and investigators are on the job daily, verifying that establishments are providing consumers with safe, wholesome, and accurately labeled food. We remain committed to public health, and this civil penalty shows that we will take swift action to protect American consumers.”
The Federal Meat Inspection Act (“FMIA”) and Poultry Products Inspection Act (“PPIA”) protect public health by ensuring the nation’s commercial supply of meat and poultry is safe, wholesome, and accurately labeled and packaged. These requirements allow consumers to have confidence in the safety of their meat and poultry products and permit public health officials to trace problems to their source.
In 2019, this Office filed a civil complaint against defendants, alleging that they routinely prepared and sold meat and poultry products at 19 Catherine Street, New York, New York, without meeting the federal inspection requirements of the FMIA and the PPIA, including by misbranding or repackaging meat and poultry products without the marks of federal inspection. USDA-FSIS had identified FMIA and PPIA violations by the defendants that included selling uninspected or misbranded roast pork, pork chops, roast ducks, beef brisket, chickens, and other beef, poultry, and pork products. In all, USDA-FSIS’s inspections had uncovered over 400 pounds of meat and poultry products sold or offered for sale in violation of the FMIA and PPIA.
Contemporaneously with the 2019 complaint, defendants agreed to resolve the violations by entering into a consent decree that required them to comply with the FMIA and PPIA. Among other things, the consent decree included a permanent injunction prohibiting defendants from “selling, transporting, offering for sale or transportation, or receiving for transportation, any meat, meat food products, poultry, or poultry products required to be inspected and passed by USDA-FSIS that have not been inspected and passed by USDA-FSIS federal inspectors,” and requiring defendants to “prepare and maintain, for each product containing meat, meat food products, poultry, or poultry products, ... business records of all transactions ...” The consent decree included financial penalties that would apply if defendants violated these obligations. On January 7, 2020, the federal district court approved the consent decree, making it a binding court order.
Defendants, however, have repeatedly violated the consent decree. As stated in the Agreement approved by the court today:
- “... Defendants [have] admitted to selling a total of 787.62 pounds of non-federally inspected and misbranded meat and poultry between August 3, 2020, and January 26, 2021, in violation of Paragraph 4(a) of the Consent Decree”
- “... Defendants [have] further admitted that New Chung Hing had generally failed to keep requisite purchase invoices post-dating the Consent Decree, in violation of Paragraph 5 of the Consent Decree”
The Agreement requires defendants to pay $250,000 as a civil penalty for these violations of the Consent Decree. This penalty equals the highest civil penalty ever imposed for violations of a USDA-FSIS consent decree under these food safety statutes, reflecting the gravity of defendants’ violations.
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Mr. Williams thanked the USDA-FSIS for its efforts on this matter.
This case is being handled by the Environmental Protection Unit of the Office’s Civil Division. Assistant U.S. Attorney Jessica F. Rosenbaum is in charge of the case.
Central New York Doctor Settles Improper Billing and Controlled Substance Act ClaimsRead the Press Release
SYRACUSE, NEW YORK – Ahmad M. Mehdi and his medical practice, Ahmad M. Mehdi, M.D., P.C. (“Mehdi”), agreed to pay a total of $900,000 to resolve civil claims for up-coding billings for some medical services, billing for smoking cessation counseling services that were not adequately documented, and allegedly improper prescribing of opioids, announced United States Attorney Carla B. Freedman.
Mehdi operates a general medical practice with offices in Groton and Tully, New York. According to the settlement agreement, between January 1, 2012, and September 17, 2018, Mehdi caused false claims to be submitted to federal healthcare programs by billing for some services at a higher rate of reimbursement than it would be entitled to for the service actually provided, a scheme commonly referred to as “upcoding.” Mehdi also submitted billing to federal healthcare programs for some smoking cessation counseling services that were not sufficiently documented. This settlement also resolves claims that Mehdi violated the Controlled Substances Act between April 1, 2018, and December 31, 2020, by prescribing opioids outside the usual course of professional practice to three patients. Mehdi has agreed to pay $331,250 to the United States to resolve all of these claims. Mehdi will also pay $568,750 to the State of New York pursuant to the terms of a separate agreement.
“Providers who increase their own profits by over-billing for medical care increase medical costs for all of us and drain critical funds from Medicare and other government health programs,” said U.S. Attorney Freedman. “We will continue to hold accountable medical professionals who undermine our healthcare system by over-billing for care.”
“Every dollar scammed from Medicaid is a dollar not spent caring for New Yorkers with actual medical needs,” said New York Attorney General Letitia James. “I am proud of the work my team did, together with the U.S. Attorney’s Office for the Northern District of New York, in uncovering these false claims and securing these funds. Let this settlement be a clear message: We have zero tolerance for lying to Medicaid, and we will hold those who do accountable.”
U.S. Attorney Freedman thanks the New York Attorney General’s Office for its collaboration in the investigation and resolution of this matter
The matter was investigated by the U.S. Department of Health and Human Services Office of Inspector General and the New York Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorneys Christopher R. Moran and John Hoggan handled this matter for the U.S. Attorney’s Office.
Canadian National Pleads Guilty to Tax FraudRead the Press Release
AUSTIN – A Canadian national pleaded guilty to making false statements on income tax returns.
According to court documents, William Henry Woo, 66, earned income in the United States from gambling at casinos that was subject to federal taxes Beginning in January 2007 through January 2011, Woo submitted to the Internal Revenue Service (IRS) fraudulent claims seeking approximately $5.4 million in tax refund monies by falsely over-reporting the tax withheld by the casinos and by duplicating his refund claims. Woo fraudulently obtained more than $1 million in tax refunds from the Department of Treasury.
Woo pleaded guilty to two counts of making false statements on income tax returns for tax year 2007. A sentencing date has not been set. For each count, Woo faces up to three years in prison, restitution and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and IRS-Criminal Investigations (IRS-CI) Special Agent in Charge Ramsey E. Covington, Houston Field Office, made the announcement.
The IRS-CI is investigating the case.
Assistant U.S. Attorney Daniel Castillo is prosecuting the case.
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Brooklyn Yeshiva Admits to Pervasive Program and Benefit Fraud ConspiracyRead the Press Release
Central United Talmudic Academy (“CUTA” or “the School”), a yeshiva in Williamsburg, Brooklyn, admitted today in federal court that it was involved in several overlapping frauds, including a multi-million dollar scheme to wrongfully obtain funds designated to feed needy schoolchildren. The proceeding was held before United States District Judge Nicholas G. Garaufis.
CUTA has entered into a three-year deferred prosecution agreement with the government in connection with a criminal information filed today in the Eastern District of New York charging the school with conspiring to commit wire fraud. As part of this agreement, the School has agreed to pay $5 million in penalties, in addition to more than $3 million in restitution it has already paid, to resolve the investigation into the school’s fraudulent conduct.
Elozer Porges, the former executive director of CUTA, and Joel Lowy, Porges’s assistant, both pleaded guilty in March 2018 for their roles in the conspiracy to defraud the government. Porges was sentenced to two-years’ imprisonment in October 2019, while Lowy was sentenced to five-years’ probation, 1000 hours of community service and $98,407.21 in restitution in April 2022.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), Bethanne M. Dinkins, Special Agent-in-Charge, United States Department of Agriculture, Office of Inspector General (USDA-OIG), and Jocelyn E. Strauber, Commissioner, New York City Department of Investigation (DOI), announced the agreement.
“The misconduct at CUTA was systemic and wide ranging, including stealing over $3 million allocated for schoolchildren in need of meals,” stated United States Attorney Peace. “Today’s resolution accounts for CUTA’s involvement in those crimes and provides a path forward to repay and repair the damage done to the community, while also allowing CUTA to continue to provide education for children in the community.”
“Today’s admission makes clear there was a pervasive culture of fraud and greed in place at CUTA. We expect schools to be places where students are taught how to do things properly. The leaders of CUTA went out of their way to do the opposite, creating multiple systems of fraud in order to cheat the government. The FBI and our law enforcement partners will continue to investigate these types of frauds and schemes to ensure government programs benefit those they were designed to help without being exploited,” stated Assistant Director-in-Charge Driscoll.
DOI Commissioner Jocelyn E. Strauber said, “As detailed in the prosecution agreement, CUTA engaged in an extensive scheme to steal millions of dollars in public funds, diverting money intended to feed schoolchildren and facilitating tax and benefit fraud by its employees. DOI and its law enforcement partners in the United States Attorney's Office for the Eastern District of New York, the FBI and the USDA are committed to the prevention of fraud that undermines public assistance programs. With this resolution, which includes a $5 million penalty, CUTA has acknowledged and will be held accountable for its misconduct.”
“USDA Office of Inspector General, Special Agent-in-Charge Bethanne M. Dinkins stated: The Child and Adult Care Food Program (CACFP) was created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent. Our joint investigation with the Federal Bureau of Investigation and the New York City Department of Investigation identified those who sought to profit from the CACFP through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs and bring to justice those who commit fraud.”
According to admissions in the statement of facts and other public documents, between 2014 and 2016, CUTA received more than $3.2 million in reimbursement for a meal program that purported to feed students of the yeshiva. The program was almost entirely fictitious. Rather than feed its children, the School diverted the funding, including to subsidize parties for adults. To commit the crime, the School fabricated records and made dozens of sworn misrepresentations to government agencies.
During the investigation into the fictitious meal program, the investigative team uncovered evidence of other fraudulent conduct by the School and its employees. In addition to the program fraud noted above, this included various payroll practices that enabled the School’s employees to commit benefit and tax fraud.
For example, the School paid its employees in a manner that grossly underrepresented their employees’ “on the books” income. The School accomplished this in several ways. In addition to paying its employees in cash, the School provided its employees with “coupons” that were redeemable at local stores for a specific cash value. Employees could use these coupons to make purchases, and the stores would then redeem the coupons back to the school for payment. These “coupons” thus facilitated the creation of an underground economy, in which employees obtained usable income unknown to the government. The school provided additional “off the books” income in other ways, such as through undisclosed investment accounts.
The investigation determined that the School engaged in these practices, in part, to facilitate additional frauds committed by its employees. By underrepresenting its employees’ income, CUTA enabled its employees to obtain various public benefits—including health care and childcare—that would not have been available if the employees honestly reported their income. The School further supported these efforts by providing letters to government agencies falsely stating that their employees only earned the “on the books” amount the School disclosed to the taxing authorities, thus enabling their employees to commit welfare and other benefits fraud. The School, in turn, also benefited from its employees misrepresentations, as it then accepted and cashed child care vouchers provided to its employees’ by the State, which its employees only qualified for as a result of the School’s own misrepresentations. Defendant Joel Lowy was among the many CUTA employees to avail themselves of this scheme.
In addition to the payroll fraud described above, the School also provided no-show jobs to non-employees, facilitated “parsonage” tax exemptions for individuals who did not provide parsonage services, sought and obtained technology funding for uses unrelated to the school’s educational purposes and provided child care services without proper licenses.
As outlined in the agreement, the Office reached this resolution with the School, in part, due to the School’s remedial efforts, many of which have been in effect for several years. In addition to recognizing and applying a zero-tolerance policy to the conduct described above, the School engaged in a series of significant structural changes. Among other things, it replaced its executive management team; developed a set of financial and procedural controls; instituted a compliance manual to guide ethical decision-making; created an oversight committee to oversee the implementation of the new standards; and conducted audits to ensure ongoing compliance. In addition to the fine and restitution referenced above, the School will be subject to the supervision of an independent Monitor for a three-year period. The Monitor will assess the School’s compliance with the deferred prosecution agreement and ensure that the School continues to follow its legal and ethical obligations.
The agreement announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI’s New York Field Office, USDA Office of Inspector General’s Office of Investigations’ Northeast Regional Office and the New York City Department of Investigation. The case is being handled by the Office’s Public Integrity Section. Assistant U.S. Attorney Erik Paulsen is in charge of the prosecution.
The Defendant:
CENTRAL UNITED TALMUDIC ACADEMY
Brooklyn, New York
E.D.N.Y. Docket No. 22-CR-328 (NGG)