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Tuesday 18 October 2022
Arizona Man Sentenced to 16 Years for Methamphetamine Trafficking & Money LaunderingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Levi Bagne, 31, Buckeye, Arizona, was sentenced today by Chief U.S. District Judge James D. Peterson to 16 years in federal prison for conspiracy to distribute 50 grams or more of methamphetamine and money laundering. Bagne pleaded guilty to these charges on May 24, 2022.
The government’s investigation revealed that Bagne was the undisputed leader of a large-scale drug trafficking organization that was responsible for bringing over 20 pounds of methamphetamine into central Wisconsin from Arizona. As a result of his lucrative operation, Bagne used drug funds to make mortgage payments on his house, buy a trailer, ATVs, and a motorcycle, as well as build a swimming pool.
On November 12, 2019, and again on February 15, 2020, Bagne and co-defendant Krista Sparks mailed packages containing methamphetamine from Arizona to co-defendant Cory Freyermuth’s residence in Oshkosh, Wisconsin. The packages were seized by law enforcement and subsequent searches of the packages revealed a total of six pounds of methamphetamine.
On September 2, 2020, agents executed a search warrant on a storage unit belonging to Bagne and Freyermuth in Stevens Point, Wisconsin. During the search, agents recovered 10 pounds of methamphetamine.
The investigation also revealed that Bagne and Sparks used multiple bank accounts to launder drug proceeds. After selling methamphetamine in Wisconsin, Freyermuth returned the drug proceeds to Bagne in Arizona. Bagne devised a plan that allowed Freyermuth to deposit cashier’s checks into Sparks’ bank accounts. The investigation revealed that Bagne and Sparks played an active role in setting up the bank accounts and withdrawing the proceeds.
On May 26, 2021, agents arrested Bagne and executed a search warrant at his house in Buckeye, Arizona. During the search, agents found a safe containing $40,050 in cash, nine firearms, and hundreds of rounds of ammunition. As part of his plea agreement, Bagne agreed to forfeit his residence in Buckeye, $40,050 in cash, a 2021 PJ 22-foot trailer, and a 2019 Honda CBR1000RR motorcycle.
At the sentencing hearing, Judge Peterson concluded that a significant sentence was warranted because Bagne’s organization was responsible for bringing a tremendous amount of methamphetamine into Wisconsin for a significant period of time. Judge Peterson stated that Bagne exercised tight control over members of the organization and helped finance local dealers by fronting them large amounts of methamphetamine. Judge Peterson noted that Bagne had multiple prior drug trafficking felony convictions and prior prison sentences had not deterred him from dealing drugs. Judge Peterson also found that Bagne’s history demonstrated a “lack of self-control” and a “propensity for violence.” Judge Peterson also expressed concern regarding the “arsenal” of weapons found at Bagne’s home in close proximity to a large amount of cash.
A total of six individuals have been charged for participating in this methamphetamine distribution scheme. All six individuals have pleaded guilty.
The charges against Bagne are the result of an investigation by the Federal Bureau of Investigation’s Central Wisconsin Narcotics Task Force comprised of investigators from the FBI, Marathon County Sheriff's Office, Wausau Police Department, Wisconsin Department of Justice Division of Criminal Investigation, Lincoln County Sheriff's Office, Wisconsin State Patrol, Everest Metro Police Department, and Wisconsin's National Guard Counterdrug program; and the Drug Enforcement Administration, Lake Winnebago Area Metropolitan Unit, and Merrill Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Activity in the United States Attorney's OfficeRead the Press Release
United States District Court Judge Alan B. Johnson sentenced JOSHUA MICHAEL ARCHULETA, age 34, of Cheyenne, Wyoming, on October 11, 2022, for distribution of fentanyl. He received a sentence of 39 months’ imprisonment with five years of supervised release and was ordered to pay $500 in community restitution and a $100 special assessment. The crime was investigated by the Cheyenne Police Department and the Drug Enforcement Administration and prosecuted by Assistant United States Attorney Michael J. Elmore.
United States District Court Judge Nancy D. Freudenthal sentenced JARVIS JEFFERSON, age 50, of Cheyenne, Wyoming, on October 11, 2022, for being a felon in possession of a firearm. He received a sentence of 33 months’ imprisonment with five years of supervised release, and was ordered to pay a $100 special assessment. Jefferson was arrested during a traffic stop on March 29, 2022, because he had an active arrest warrant out of Laramie County for failing to appear. Two firearms were found in his vehicle during the traffic stop and arrest. This crime was investigated by the Cheyenne Police Department and the Bureau of Alcohol, Firearms, Tobacco, and Explosives and prosecuted by Assistant United States Attorney Michael J. Elmore.
United States District Court Judge Alan B. Johnson sentenced CHAD ALLEN KEMPER, age 50, of Cheyenne, Wyoming, on October 11, 2022, for failing to register as a sex offender. He received a sentence of 30 months’ imprisonment with five years of supervised release, and was ordered to pay a $100 special assessment. Kemper was arrested in Cheyenne for failure to register as a sex offender. He has a lifetime registration requirement due to a conviction from December 2003 out of Iowa. This crime was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Jonathan C. Coppom.
United States District Court Judge Alan B. Johnson sentenced GEORGE MANZANARES, age 35, of Cheyenne, Wyoming, on October 5, 2022, for possessing a firearm after being convicted of a misdemeanor crime of domestic violence. He received two years of supervised release and was ordered to pay a $100 special assessment. This crime was investigated by the Cheyenne Police Department and the Federal Bureau of Investigation and prosecuted by Assistant United States Attorney Timothy J. Forwood.
Monday 17 October 2022
Worcester Man Sentenced in Heroin and Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Worcester man was sentenced today for his role in a drug trafficking conspiracy involving fentanyl and heroin.
Jector Torres, 33, was sentenced by U.S. Senior District Court Judge Timothy S. Hillman to 63 months in prison and three years of supervised release. On June 7, 2022, Torres pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute fentanyl and heroin. Torres was charged in October 2019 along with co-conspirators John Robles, Cintia Franco and Amauris Antonio Rosario Garcia, all of whom have since pleaded guilty and are awaiting sentencing.
In early 2019, Robles was identified by investigators selling purported oxycodone pills, which were later determined to be counterfeit pills containing fentanyl, at Albino’s Market in Worcester. Intercepted communications from Robles’ phone identified that Garcia was the supply source and that Garcia was distributing pills through Robles and Torres. The investigation also revealed that Garcia and Franco were distributing heroin, fentanyl pills and powdered fentanyl directly to users in Worcester.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Valuable assistance was provided by the Worcester Police Department, Massachusetts State Police and Connecticut State Police. Assistant U.S. Attorneys Kristen M. Noto and Danial E. Bennett of Rollins’ Worcester Branch Office prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Vancleave Man Sentenced to over 33 Years in Prison for Trafficking Methamphetamine While Possessing a FirearmRead the Press Release
Gulfport, Miss. – A Vancleave man was sentenced to a total of 404 months in federal prison for possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Jeremy Green, 37, was sentenced on October 13, 2022, in U.S. District Court in Gulfport.
According to court documents, on October 20, 2021, police were called to the residence of Jeremy Green for a domestic dispute. Green’s wife had suffered a fractured nose and had to receive 3 staples to the back of her head, among other injuries. Law enforcement officers were able to arrest Green after a brief stand-off. At the time of his arrest, Green possessed 80 grams of methamphetamine and a stolen .45 caliber pistol. A subsequent investigation revealed that Green possessed the firearm for protection due to his drug trafficking activities and sold a total of 20 pounds of methamphetamine in the month leading up to his arrest.
Green was indicted by a federal grand jury on February 23, 2022. He pled guilty on June 27, 2022, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
The case was prosecuted by Assistant U.S. Attorney Erica Rose.
Vallejo Man Sentenced to 30 years in Prison for Sexual Exploitation of ChildrenRead the Press Release
SACRAMENTO, Calif. — Tariq Arrhamann Majid, 44, of Vallejo, was sentenced today to 30 years in prison for two counts of sexual exploitation of children, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Majid was arrested in late 2018, following an investigation involving online sharing of child pornography. Investigators discovered images and videos of Majid sexually abusing two minors, one of whom was 9 years old at the time of the offense. Investigators eventually identified the two child victims depicted in the videos, and Majid admitted that he was the abuser depicted in the videos. During the investigation, it was discovered that Majid had contact with many other minors, many of whom came from economically-disadvantaged backgrounds. Majid sought out opportunities to work with children, both in formal and informal settings, and he would purport to be their mentor while grooming them for sexual abuse. Several additional victims of Majid’s abuse have come forward since the investigation began, and Majid has been charged in Solano County Superior Court with his crimes against these victims. That case is pending.
“The lengthy sentence imposed today reflects the abhorrent crimes that this defendant committed against multiple children,” said U.S. Attorney Talbert. “My office will continue to work in partnership with state, federal, and local law enforcement to pursue predators such as this defendant and ensure the safety of our community’s most vulnerable members.”
This case was the product of an investigation by the California Highway Patrol Computer Crimes Investigation Unit, the Golden Gate Special Investigations Unit, and the Federal Bureau of Investigation. Assistant U.S. Attorney Michele Beckwith 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.
United States Files Civil Fraud Lawsuit Against Cigna for Artificially Inflating Its Medicare Advantage PaymentsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that the United States has filed a civil healthcare fraud lawsuit against CIGNA CORPORATION and its subsidiary Medicare Advantage Organizations (collectively, “CIGNA”). The lawsuit seeks damages and penalties under the False Claims Act for CIGNA’s submissions to the Government of false and invalid patient diagnosis codes to artificially inflate the payments CIGNA received for providing insurance coverage to its Medicare Advantage plan members. The Government is intervening in a lawsuit filed by a whistleblower, which was originally filed in the United States District Court for the Southern District of New York and later transferred to the Middle District of Tennessee.
The Government’s complaint alleges that the reported diagnoses codes were based solely on forms completed by vendors retained and paid by CIGNA to conduct in-home assessments of plan members. The healthcare providers (typically nurse practitioners) who conducted these home visits did not perform or order the testing or imaging that would have been necessary to reliably diagnose the serious, complex conditions reported and were prohibited by CIGNA from providing any treatment during the home visit for the medical conditions they purportedly found. The diagnoses at issue were not supported by the information documented on the form completed by the vendor and were not reported to CIGNA by any other healthcare provider who saw the patient during the year in which the home visit occurred. Nevertheless, CIGNA submitted these diagnoses to the Government to claim increased payments and falsely certified on an annual basis that its diagnosis data submissions were “accurate, complete, and truthful.”
U.S. Attorney Damian Williams said: “As alleged, CIGNA obtained tens of millions of dollars in Medicare funding by submitting to the Government false and invalid diagnoses for its Medicare Advantage plan members. CIGNA knew that, under the Medicare Advantage reimbursement system, it would be paid more if its plan members appeared to be sicker. This Office is dedicated to holding insurers accountable if they seek to manipulate the system and boost their profits by submitting false information to the Government.”
Medicare Advantage, also known as the Medicare Part C program, provides health insurance coverage for tens of millions of Americans who opt out of traditional Medicare. Under Medicare Part C, Medicare Advantage Organizations (“MAOs”), typically operated by private insurers like CIGNA, provide coverage for Medicare beneficiaries. In return, MAOs receive capitated payments from the Centers for Medicare and Medicaid Services (“CMS”) based on demographic information and the diagnoses of each plan beneficiary. MAOs submit diagnosis data, typically passed along from beneficiaries’ healthcare providers, to CMS. CMS then uses that diagnosis data, in conjunction with demographic factors, to calculate a “risk score” for each beneficiary and, in turn, the amount of the monthly capitated payment that the MAO will receive for covering that beneficiary. The Medicare Advantage payment model is intended to pay MAOs more to provide healthcare for sicker enrollees (expected to incur higher healthcare costs) and less for healthier enrollees (expected to incur lower costs).
The following allegations are based on the Complaint that was filed in federal court:
CIGNA, through its subsidiaries and affiliates, owns and operates numerous MAOs that administer Medicare Advantage Plans. CIGNA contracted with several vendors to conduct home visits of Medicare Advantage plan members across the country as part of its broader so-called “360 comprehensive assessment” program. The home visits were typically conducted by nurse practitioners, and on occasion by other non-physician healthcare providers such as registered nurses and physician assistants (the “Vendor HCPs”). Based on the visit, the Vendor HCPs completed a CIGNA-created form (“360 form”) that included a check-the-box multi-page list of a wide range of medical conditions. CIGNA had its coding teams identify diagnosis codes that corresponded to the recorded medical conditions and then submitted those to CMS for risk adjustment payment purposes.
CIGNA structured the 360 home visits for the primary purpose of capturing and recording lucrative diagnosis codes that would significantly increase the monthly capitated payments it received from CMS. The purpose of the visits was not to treat patients’ medical conditions, and CIGNA explicitly prohibited the Vendor HCPs from providing actual patient treatment or care. As CIGNA acknowledged in an internal document discussing the program, “[t]the primary goal of a 360 visit is administrative code capture and not chronic care or acute care management.” But this was not disclosed to CIGNA’s plan members when the home visit was scheduled or during the actual visit. When identifying plan members to receive home visits, CIGNA targeted individuals who were likely to yield the greatest risk score increases and thus the greatest increased payment.
The Vendor HCPs spent limited time with the patients and did not conduct a comprehensive physical examination. When completing the assessments and recording the diagnoses, the Vendor HCPs relied largely on the patient’s own self-assessment and their responses to various basic screening questions. Vendor HCPs did not have access to the patient’s full medical history and typically did not obtain or review relevant records from the patient’s primary care physician in advance of the visit.
CIGNA’s 360 home visit program regularly generated false and invalid diagnosis codes for certain serious, complex conditions that cannot be reliably diagnosed in a home setting and without extensive diagnostic testing or imaging. In tens of thousands of instances, CIGNA submitted diagnosis codes that represent serious, complex medical conditions that (a) were based only on the home visits conducted by the Vendor HCPs; (b) required specific testing or imaging to be reliably diagnosed, which was not performed; (c) were not supported by the information documented on the 360 form completed by the Vendor HCPs; and (d) were not reported by any other healthcare provider who saw the plan member during the year in which the home visit occurred (the “Invalid Diagnoses”). The Invalid Diagnoses included, but are not limited to, diagnoses for complex medical conditions such as chronic kidney disease, congestive heart failure, rheumatoid arthritis, and diabetes with renal complications. According to CIGNA’s own clinical guidelines, accurately diagnosing these conditions requires specialized testing.
CIGNA exerted pressure on Vendor HCPs to record high-value diagnoses that significantly increased risk adjustment payments. CIGNA management identified at least twelve classes of generic chronic diagnoses that they thought were “often underdiagnosed” among its Plan members and, through trainings and seminars, encouraged the Vendor HCPs to make these diagnoses during the home visits. CIGNA also closely tracked the volume and nature of the diagnoses generated by each vendor’s home visits, as well as how the diagnoses affected risk-adjusted payments. CIGNA provided trainings to vendors to improve their “performance” when they failed to deliver the expected level of high-value diagnosis codes.
Indeed, CIGNA tracked the return on investment of the 360 home visit program by comparing the costs of the in-home visits (i.e., payments to vendors) against the additional Part C payments generated by increased risk scores. For example, according to an internal report, CIGNA determined that, during the first nine months of 2014, one vendor’s 6,658 in-home visits resulted in more than an additional $14 million in Medicare payments, which dwarfed the approximately $2.13 million that CIGNA paid to the vendor. When specific providers were found to have captured fewer diagnoses than expected, CIGNA asked the vendor to prepare a “performance improvement plan” for the provider.
The Invalid Diagnoses generated by the 360 home visits also did not conform with the International Classification of Diseases (“ICD”) Office Guidelines for Coding and Reporting (the “ICD Guidelines”), as required by applicable federal regulations. The Invalid Diagnoses did not affect patient care, treatment, or management during the home visit, as required under the ICD Guidelines, and thus were ineligible for risk adjustment. In addition, the Invalid Diagnoses were not supported by the minimal information recorded on the 360 forms, in violation of the ICD Guidelines’ medical record documentation requirement. In fact, in some cases, the 360 forms include clinical exam findings that contradict the supposed diagnosis. For example, one patient received a congestive heart failure diagnosis from a home visit even though the 360 form explicitly noted that physical exam results found her heart to be “regular” and “normal” and stated, “cardiac reviewed and unremarkable.”
Through its 360 home visit program, CIGNA submitted diagnosis codes for tens of thousands of Invalid Diagnoses to CMS that constituted false claims for payment. Based on these unlawful false claims, CIGNA improperly received tens of millions of dollars in risk adjustment payments from CMS, in violation of both the False Claims Act and the common law.
Mr. Williams thanked HHS-OIG and the U.S. Attorney’s Office for the Middle District of Tennessee for their assistance with this case.
This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Peter Aronoff is in charge of this case.
United States Attorney Damian Williams Announces the Formation of New Conviction Integrity CommitteeRead the Press Release
“The Conviction Integrity Committee of the Southern District of New York will strive to ensure justice is done in every case both by evaluating claims of factual innocence in our own cases, as well as providing assistance and access to information from SDNY cases that may bear on claims of factual innocence of defendants convicted in other jurisdictions. This committee will be the first of its kind in this Office and only the second formal federal conviction integrity body nationally.
The formation of the committee builds on work the Office has done historically to support credible claims of factual innocence in other jurisdictions, both as a resource for defendants and their counsel and as a liaison to the conviction integrity processes in other prosecutors’ offices. The committee institutionalizes that practice and also aims to bring the same level of rigor to review of our own convictions. Our solemn obligation as prosecutors to protect the community and seek justice for victims of crimes requires that we take every step to ensure that the guilty are held responsible and the innocent are set free.
Though infrequent, wrongful convictions engender mistrust of law enforcement and erode the public’s faith in the fundamental fairness of the criminal justice system. If the committee’s comprehensive review yields but one remedy of an unjust conviction or results in the freedom of even one wrongly incarcerated, innocent individual, we will consider it a successful endeavor to further the cause of justice for all. We also hope to leverage the Committee’s work and leadership to ensure the Office’s practices on investigative techniques and disclosure are designed to prevent wrongful convictions.”
Conviction Integrity Committee
U.S. Attorney’s Office Announces More Than $20 Million in Justice Department Grant Funding Awarded to Support Local InitiativesRead the Press Release
CLEVELAND – The U.S. Attorney’s Office for the Northern District of Ohio announced today that the Department of Justice has awarded more than $20 million in grant funding in Fiscal Year 2022 to various entities, organizations and programs in the Northern District of Ohio to support law enforcement and public safety initiatives, assist victims of crime, provide training and technical assistance, conduct research and to implement programs that improve the criminal, civil and juvenile justice systems.
“We are grateful for the Department’s continued support of law enforcement initiatives and public safety organizations in this district,” said First Assistant U.S. Attorney Michelle M. Baeppler. “These investments will continue to fund and support the work our office, our partners and community members do to address the most pressing issues facing our communities.”
Significant grant funding awards announced include:
Cuyahoga County Prosecutor’s Office (CCPO), Cuyahoga County Sexual Assault Kit Taskforce. $2,500,000.00.
Cleveland, Ohio.
The CCPO was awarded grant funding to continue work on the county’s Sexual Assault Kit (SAK) Taskforce. Funding will be directed towards utilizing advanced DNA methodologies to identify and prosecute sexual offenders, investigate and prosecute leads and leverage experiences to inform practices locally and nationally.
City of Cleveland. $1,994,908.00
Cleveland, Ohio.
The City of Cleveland was awarded grant funding to support city-led, collaborative community violence intervention (CVI) planning and strategies administered through the mayor’s Office of Prevention, Intervention, and Opportunity in partnership with non-profits and community-based organizations in Cleveland.
Hancock County Alcohol, Drug Addiction and Mental Health Services Board (ADAMHS). $1,000,000.
Findlay, Ohio.
The Hancock County ADAMHS Board was awarded grant funding to support a collaborative approach to address and prevent the illicit use of opioids, stimulants, and other substances within a predominantly rural county.
Summit County Court of Common Pleas, SCORR Program. $792,701.
Akron, Ohio.
The Summit County Court of Common Pleas was awarded grant funding to support the development, implementation and evaluation of an expansion to the Summit County Offender Recidivism Reduction (SCORR) program. This program provides an increased level of accountability and structure to promote long-term offender behavior change and to improve offender outcomes for an overall reduction in substance abuse, recidivism and incarceration.
Mahoning County Common Pleas Honor Court (MCCPHC). $750,000.
Youngstown, Ohio.
The MCCPHC was awarded grant funding to serve Veterans charged with non-violent, low-level felony offenses in an effort to divert them from the traditional criminal justice system by providing the tools needed to lead a productive and law-abiding lifestyle while holding them accountable.
To view a full list of grant awards for this fiscal year, visit Justice.gov/grants
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Department of Justice Grant Agencies includes the Office of Community Oriented Policing Services (COPS), Office of Justice Programs (OJP) and the Office on Violence Against Women (OVW).
These agencies support law-enforcement initiatives and programs such as advancing the practice of community policing, disseminating state-of-the-art knowledge and best practices, administering grants for the implementation of crime-fighting strategies and providing federal leadership in developing the national capacity to reduce violence against women and strengthening services to victims of domestic violence, dating violence, sexual assault and stalking.
U.S. Attorney W. Stephen Muldrow Announces More than 23 Million Dollars in Justice Department GrantsRead the Press Release
SAN JUAN, Puerto Rico – U.S. Attorney W. Stephen Muldrow announced today that the Department of Justice has awarded $ 143,935 to support the Project Safe Neighborhoods Program in the District of Puerto Rico. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant, to the Puerto Rico Department of Housing, is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“The U.S. Attorney’s Office, together with our federal, state and local law enforcement and community partners will continue to develop tailored solutions to the unique violent crime problems we face in Puerto Rico,” said U.S. Attorney Muldrow. “Our partnerships are the most powerful tool to protect our communities from violent crime.”
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
In addition to the grant listed above, in recent weeks the Department of Justice has awarded the following additional grants to entities and organizations in Puerto Rico:
Date
Recipient Agency
Grant
Amount
8/12/22
PR Department of Corrections and Rehabilitation
Residential Substance Abuse Treatment for State Prisoners
$ 288,426
8/25/22
PR Department of Justice
Sex Offender and Registration Notification Act (SORNA) Reallocation Program
$ 251,001
8/25/22
PR Department of Justice
VOCA Victim Compensation Formula Grant
$ 385,000
8/25/22
PR Department of Justice
VOCA Victim Assistance Formula Grant
$13,684,986
8/31/22
PR Department of Justice
Prison Rape Elimination Act (PREA) Reallocation Funds Program
$ 125,500
9/6/22
PR Department of Justice
Support for Adam Walsh Act Implementation Grant Program
$ 400,000
9/6/22
University of Puerto Rico
Postconviction Testing of DNA Evidence
$ 550,000
9/8/22
Oficina para el Desarrollo Socioeconómico y Comunitario
Title II Formula Grants Program
$ 608,772
9/16/22
PR Department of Justice
Edward Byrne Memorial Justice Assistance Grant Program
$ 2,134,687
9/22/22
PR Department of Justice
John R. Justice (JRJ) Formula Grant Program
$ 78,115
9/27/22
Instituto de Ciencias Forenses
Paul Coverdell Forensic Science Improvement Grants Program
$ 293,954
9/27/22
Administración de Servicios de Salud Mental y Contra la Adicción
Harold Rogers Prescription Drug Monitoring Program
$ 1,400,000
9/27/22
PR Department of Justice
Building State Technology Capacity and Jabara-Heyer No HATE Act State-Run Hate Crime Reporting
$ 500,000
9/29/22
Taller Salud, Inc.
Office of Justice Programs Community Based Violence Intervention and Prevention Initiative
$ 2,000,000
9/29/22
Instituto de Ciencias Forenses
DNA Capacity Enhancement for Backlog Reduction (CEBR) Program
$ 621,890
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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U.S. Attorney Stephanie M. Hinds Announces $399,000 in Justice Department Grants to Support Project Safe NeighborhoodsRead the Press Release
SAN FRANCISCO – U.S. Attorney Stephanie M. Hinds announced today that the Department of Justice has awarded $399,193 to support the Project Safe Neighborhoods Program in the Northern District of California. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney Hairston Announces $177,090 in Justice Department Grants to Support Project Safe NeighborhoodsRead the Press Release
GREENSBORO, NC – United States Attorney Sandra J. Hairston announced today that the Department of Justice has awarded $177,090 to support the Project Safe Neighborhoods Program in the Middle District of North Carolina. Funding will support comprehensive efforts to address the epidemic of gun crime and serious violence in the district. The grant, to be administered by the NC Department of Public Safety Governor’s Crime Commission for the benefit of the district’s 12 PSN sites, is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime in a comprehensive manner, not simply to increase the number of arrests or prosecutions.
“Project Safe Neighborhoods (PSN) is a cornerstone of the crime prevention effort in the Middle District of North Carolina, and we are thrilled to receive this grant in support of such an important strategy,” said U. S. Attorney Sandra Hairston. “The grant will support 12 PSN sites around the district as they continue to grow and assist law enforcement and community groups in their efforts to reduce crime and protect not only the citizens of the Middle District, but those in neighboring districts as well.”
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN partnerships are convened by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. PSN places emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability. The PSN model has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Two Rochester Men Arrested, Charged with Defrauding Two Victims Out of Tens of Thousands of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Timothy Siverd, 34, of Rochester, NY, was arrested and charged by criminal complaint with wire fraud and money laundering, which carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Meghan K. McGuire, who is handling the case, stated that in November 2021, Siverd was a vice president at Tompkins Community Bank. According to the complaint, Siverd defrauded a person that he knew (Victim 1) through multiple schemes, including:
• In November 2021, Siverd convinced Victim 1 to invest in $25,000 in a group of four residential duplexes in Rochester. A few weeks later in December 2021, Siverd contacted Victim 1 and stated that the real estate investment had been called off, purportedly due to a mold issue. Victim 1 requested his investment of $25,000 be returned to him, but Siverd encouraged Victim 1 to instead commit an additional $10,000 to open a savings account at Tompkins bank that was getting a higher-than-average rate of return. Siverd never opened the account for Victim 1.
• Also in December 2021, Siverd encouraged Victim 1 to invest in a complex of townhomes on Cedar Rock Road in Webster, NY, known as “The Carriages at Cedar Rock.” Siverd convinced Victim 1 to make payments totaling $48,429 for the alleged purchase.
• In January 2022, Victim 1 agreed to purchase a house on Keuka Lake house with Siverd and in February 2022, Victim 1 wired $40,000 to an account controlled by Siverd.
• Also in January 2022, Siverd encouraged Victim 1 to invest $35,000 to purchase “Creek Crossing Townhomes” in Hilton, NY.In March 2022, Siverd approached Victim 2, another person that he knew, with a series of investment opportunities. Siverd again convinced Victim 2 to invest in multiple fraudulent schemes, including:
• Victim 2 invested $169,191.55 for the purchase of “Greenwood Townhomes” in Rochester.
• Siverd also convinced Victim 2 to invest $52,200 towards the acquisition of a company.
• Siverd stated to Victim 2 that he was experiencing cash flow problems, which resulted in a $25,000 loan from Victim 2 to Siverd.
• Victim 2 also invested $100,000 in the Dunwood Green Apartments.None of the properties that Siverd convinced his victims to “invest” in were actually for sale and Siverd used the Victims’ money to pay a co-conspirator and for gambling and personal expenses.
In total, Victim 1 paid Siverd approximately $158,429, believing that Siverd was investing the funds in various real estate transactions. Eventually realizing that the transactions were fraudulent, Victim 1 demanded repayment. Siverd returned $108,429 of Victim 1’s funds, using funds fraudulently obtained from Victim 2. In total, Victim 2 paid Siverd $346,511.55, also believing the funds would be invested in various real estate and financial transactions. Siverd never returned any of Victim 2’s funds.
The complaints are the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Two Fresno Men Plead Guilty to Illegal Possession of a Firearm and AmmunitionRead the Press Release
FRESNO, Calif. — Edward Page, 33, and Trayvon Smith, 32, both of Fresno, pleaded guilty today to being felons in possession of a firearm and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on June 24, 2021, law enforcement officers received a report of two individuals possessing a firearm in a hotel parking lot. When the officers responded to the parking lot, they located the suspected car and activated their emergency lights. Page and Smith exited a car, Smith initially fled, but both were eventually detained. The officers then searched the car and found two loaded firearms. Page and Smith are both prohibited from possessing firearms or ammunition because of their criminal history.
Page and Smith are scheduled to be sentenced on Jan. 17, 2023, by U.S. District Judge Ana de Alba. Page and Smith face a maximum sentence of 10 years in prison and a fine up to $250,000. 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 the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio 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 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.
Three York Men Sentenced for Trafficking CocaineRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Luis Manuel Quesada Rodriguez, age 32, Alex Rivera Ramos, age 30, and Pedro Diaz, age 27, all from York, Pennsylvania, were each sentenced by United States District Court Judge Jennifer P. Wilson to 120 months’ imprisonment for trafficking cocaine.
According to U.S. Attorney Gerard M. Karam, between December 2015 and March 2020, the defendants coordinated and received parcels containing kilogram quantities of cocaine sent from Puerto Rico through the U.S. Mail, and then distributed the cocaine in and around York. Each of the three defendants, along with a fourth co-defendant, Carlos Joel Nieves Ortega, pleaded guilty to conspiracy to distribute and possess with intent to distribute between 5 and 15 kilograms of cocaine hydrochloride. As part of the investigation, the government disrupted the organization’s cocaine shipments and seized 7.5 kilograms of cocaine along with $16,895 in drug proceeds.
Co-defendant Carlos Joel Nieves Ortega, age 37, of York, was previously sentenced to 120 months’ imprisonment for his involvement in the cocaine trafficking conspiracy, and co-defendant Jose Colon Declet, age 36, of York, was sentenced to 30 months’ imprisonment.
The case was investigated by the Drug Enforcement Administration, the Pennsylvania State Police, and the United States Postal Inspection Service. Assistant U.S. Attorneys Samuel S. Dalke and Daryl F. Bloom prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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The Organized Crime Drug Enforcement Task Forces Celebrates 40th AnniversaryRead the Press Release
The Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) was created by Presidential Order four decades ago. On Oct. 14, 1982, in the Great Hall of the Department of Justice building, President Ronald Reagan announced a new coordinated federal government effort bringing together prosecutors and law enforcement agencies to attack the command and control elements of the drug trafficking organizations responsible for moving massive quantities of illicit narcotics into the country.
The White House directed that the OCDETF’s top priority would be to disrupt the sales and distribution networks of the traffickers. Some of the department’s most notable successes against drug cartels have resulted from OCDETF coordinated investigations and prosecutions. OCDETF was instrumental in taking down the powerful Colombian cartels of the 1980s; the notorious and violent Mexican cartels such as the Tijuana, Juarez and Gulf Cartels in the 1990s; and the methamphetamine, heroin, fentanyl and opioid threats from all over the world in the last two decades.
As criminal networks have grown more sophisticated in the last 40 years — branching out to more varied types of criminal activity — OCDETF has responded by expanding its mission beyond drug trafficking organizations and money laundering networks to all forms of transnational organized crime. OCDETF is fully engaged in all manner of investigations into criminal networks involved in human smuggling, sophisticated financial fraud, cyber-enabled crime, illicit finance, arms trafficking, government benefits theft, business e-mail compromise and U.S. sanctions evasion. OCDETF is uniquely and ideally structured to support the fight against transnational organized crime through operational integration, collaboration and law enforcement information sharing.
“Since its founding, OCDETF has been a synchronizer and our role is to incentivize prosecutors to lead smart, creative law enforcement agents in investigations focused on priority targets of organized criminal groups and the illicit financial networks that support them,” said OCDETF Director Adam W. Cohen. “Today, OCDETF provides a forward leaning structure for our partners to work together and leverage each other’s strengths, capabilities and legal authorities resulting in continued positive impacts to the nation.”
OCDETF’s successes over the last 40 years have been made possible by strong collaboration and coordination with its member agencies. OCDETF is partnered with the 93 U.S. Attorneys’ Offices, the department’s Criminal Division and 11 federal law enforcement agencies from the Department of Justice (Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Investigation; U.S. Marshals Service), Homeland Security (Immigration and Customs Enforcement/Homeland Security Investigations; U.S. Coast Guard; U.S. Secret Service), Treasury (Internal Revenue Service/Criminal Investigation), Postal (U.S. Postal Inspection Service), Labor (Office of the Inspector General), and State (Bureau of Diplomatic Security).
OCDETF’s governance, bringing leadership to the multi-agency transnational organized crime mission and focus on joint priority targets has generated genuine measurable accomplishments — over 34,000 multi-agency cases against priority targets, over 124,000 indictments of almost 360,000 defendants, and incredibly, over 15,690 of those resulted in impactful disruption, or even dismantlement of criminal organizations.
“As OCDETF begins our 41st year, we will continue to provide a coordination platform for comprehensive investigations and prosecutions of the most dangerous transnational criminal organizations, the successful result of which is to make our nation safer,” said OCDETF Director Cohen.
Sutter Health Agrees to Pay $13 Million to Settle False Claims Act Allegations of Improper Billing for Lab TestsRead the Press Release
SAN FRANCISCO – Sutter Health, a Sacramento-based health care services provider, and its affiliate Sutter Bay Hospitals, the successor to Sutter East Bay Hospitals dba Alta Bates Summit Medical Center (collectively Sutter Health), agreed to pay more than $13 million to settle allegations that it violated the False Claims Act by billing the United States for toxicology screening tests performed by outside labs, announced United States Attorney Stephanie M. Hinds; Federal Bureau of Investigation San Francisco Special Agent in Charge Robert K. Tripp; Office of Personnel Management Office of Inspector General (OPM OIG) Special Agent in Charge Amy K. Parker; Department of Health and Human Services Office of Inspector General (HHS-OIG) Special Agent in Charge Steven J. Ryan; Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) Western Field Office Special Agent in Charge Bryan D. Denny; and the Defense Health Agency (DHA).
“Sutter Health agreed to pay $13 million to settle allegations that it billed government health programs for lab tests performed by others,” said U.S. Attorney Stephanie M. Hinds. “Government health care programs must be protected, and this office will investigate and pursue health care providers that fail to provide the services paid for by public health care programs.”
“Investigating health care fraud and abuse is a priority for the FBI,” said FBI San Francisco Special Agent in Charge Robert K. Tripp. “These cases are often worked in conjunction with our federal law enforcement partners, and this settlement is a great example of the multi-agency investigative team’s hard work to protect the integrity of the Federal Employees Health Benefits Program.”
“The OPM OIG is committed to protecting the Federal Employees Health Benefits Program from fraudulent claims,” said OPM OIG Special Agent in Charge Amy K. Parker. “I applaud the dedicated team for their effort in securing today’s settlement.”
“When medical providers charge federal health care programs for services that other providers actually performed, the integrity of these programs is undermined,” said HHS-OIG Special Agent in Charge Steven J. Ryan. “Working with our law enforcement partners, we will continue to uproot and investigate such schemes.”
“Today’s announced outcome concludes a collaborative effort to hold Sutter Health accountable for its improper billing practices that harmed our health care system, including the Department of Defense’s TRICARE program,” said DCIS Western Field Office Special Agent in Charge Bryan D. Denny. “DCIS will continue to work closely with our law enforcement partners to protect the integrity of the health care system.”
“We commend the Department of Justice, the U.S. Attorney’s office, and the other state and federal agencies for their commitment to justice,” stated the Defense Health Agency. “Their efforts protect taxpayer dollars to ensure our service members, veterans and their families continue to receive the highest level of medical care.”
The United States contends in the civil settlement agreement signed by Sutter Health that under the terms of a contract which the Sutter Health hospital Alta Bates Summit Medical Center entered into with Navigant Network Alliance, LLC, Navigant referred urine toxicology specimens obtained from physicians and laboratories across the country to Sutter. Sutter submitted bills, or caused bills to be submitted, for reimbursement of the qualitative and quantitative testing it performed on the specimens. The United States asserts that Sutter did not perform the quantitative testing on thousands of specimens referred under the agreement and that these quantitative tests were instead performed by third-party labs. The United States alleges that Sutter nevertheless sought reimbursement for the tests. In the settlement agreement, the United States contends that between August 1, 2016, and June 30, 2017, Sutter billed for urine toxicology tests it did not perform and was paid for the testing by the Federal Employees Health Benefits Program, Medicare, Medicaid, and Tricare.
Sutter agrees in the settlement agreement to pay $13,091,452 to settle the false claims allegations. Of that amount, Sutter has already paid more than $6.5 million to the United States. Sutter agrees to pay the remaining amount of approximately $6.5 million to the United States within 30 days. The settlement agreement resolves the civil law claims that the United States might have brought based upon these allegations.
This matter is being handled by Assistant United States Attorney David DeVito, with assistance from Garland He, Jonathan Birch, Lillian Do, and Alan Lopez. The matter is the result of a coordinated investigation between the U.S. Attorney’s Office for the Northern District of California and the FBI, OPM OIG, HHS-OIG, DCIS, and the DHA.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The civil settlement agreement is neither an admission of liability by Sutter Health nor a concession by the United States that its claims are not well founded.
Sumter County Man Sentenced to Three Years in Federal Prison for Illegally Possessing Destructive Devices, Firearms, and SilencersRead the Press Release
Ocala, Florida – Senior United States District Judge Gregory A. Presnell has sentenced James Clay Bexley (35, Center Hill) to three years in federal prison for possessing unregistered destructive devices and firearm silencers and for possessing firearms in violation of a domestic violence injunction. Bexley had pleaded guilty on July 28, 2022.
According to court records, Bexley was arrested at his home after contacting his wife in violation of an injunction. Deputies from the Sumter County Sheriff’s Office located six firearms, two silencers, and two small explosive devices in Bexley’s vehicle. The Lake County Sheriff’s Office bomb squad then responded and discovered two destructive devices (pipe bombs) on Bexley’s front porch. After obtaining a search warrant, federal agents recovered approximately 35 pounds of explosive materials and bomb-making equipment from within the residence, along with an additional 12 firearms and two silencers.
Firearm silencers and destructive devices, such as pipe bombs, are illegal to possess unless registered in the National Firearms Registration and Transfer Record. None of Bexley’s silencers or destructive devices had been registered as required under federal law. Furthermore, it is also a federal crime to possess firearms while subject to a domestic violence injunction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sumter County Sheriff’s Office, and the Lake County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Tyrie K. Boyer.
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.
Statement of Attorney General Merrick B. Garland on the Passing of Former Attorney General Benjamin Richard CivilettiRead the Press Release
The Justice Department released the following statement from Attorney General Merrick B. Garland:
“I am saddened to learn of the passing of former Attorney General Benjamin Civiletti and extend my deepest condolences to his loved ones.
“Attorney General Civiletti was my first boss at the Justice Department in 1979. As one of his Special Assistants, I had the great honor to witness firsthand the skill, integrity, and dedication with which he led the Department.
“Among many other achievements during his tenure, Attorney General Civiletti continued the work begun by his predecessors, Attorneys General Edward Levi and Griffin Bell, in the wake of Watergate to restore public trust in the Department of Justice. Attorney General Civiletti wrote into policy the norms established to ensure the Department's independence, fair application of our laws, and adherence to the Rule of Law. Today, thanks in large part to him, those norms continue to guide the work of every Justice Department employee, every single day.
“Attorney General Civiletti's portrait hangs outside my office, and I am reminded each time I see it of the kind of Attorney General I strive to be. Attorney General Civiletti's dedication to the Justice Department, his work, and his life will continue to be an inspiration for generations of public servants to come.”
Springfield Man Sentenced to 15 Years for Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Roderick E. Hebert, 54, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole. Hebert was sentenced as an armed career criminal due to his prior felony convictions.
On Feb. 10, 2022, Hebert pleaded guilty to being a felon in possession of a firearm.
Hebert was stopped for speeding by a Springfield police officer on Nov. 16, 2019. At the time, Hebert had active warrants for his arrest. When he got out of his vehicle, a magazine containing .40-caliber ammunition fell out of the vehicle. Officers then searched Hebert’s vehicle and found a .40-caliber Hi Point pistol.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Hebert has 11 felony convictions, including multiple convictions for burglary and drug-related offenses. At the time of his arrest, Hebert was on state parole from convictions for forgery and possession of a controlled substance with the intent to distribute.
This case was prosecuted by Assistant U.S. Attorneys Casey Clark and Shannon Kempf. It was investigated by the Springfield, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Siskiyou County Man Sentenced to 1 Year in Prison for Major Fraud Against the United States for Taking FEMA Grant FundsRead the Press Release
SACRAMENTO, Calif. — Samuel Thomas Lanier, 40, of Dunsmuir, was sentenced today to 12 months and one day in prison for seven counts of major fraud against the United States, U.S. Attorney Phillip A. Talbert announced. A restitution hearing is set for Dec. 12, 2022.
According to court documents, from approximately June 2013 to March 2018, Lanier engaged in a scheme to defraud the United States by submitting, or causing to be submitted, false reimbursement requests to the Federal Emergency Management Agency (FEMA) in connection with federal grants awarded to Siskiyou and Shasta County Fire Chiefs Associations to assist them in recruiting and training new firefighters.
In June 2013 and June 2014, respectively, the Siskiyou and Shasta County Fire Chiefs Associations were awarded grants as part of the Staffing for Adequate Fire and Emergency Response (SAFER) program. Each grant was over $1 million. The purpose of these grants was to assure that communities have adequate protection from fire-related hazards, and to help the recipients attain and maintain 24-hour staffing.
Lanier, as an owner or executive of two companies located in Dunsmuir, was hired by the Fire Chiefs Associations to administer these grants. In this capacity, Lanier knowingly submitted to FEMA false and fraudulent reimbursement requests, seeking and obtaining reimbursement for goods and services that were not, in fact, actually obtained on behalf of the fire associations. According to court documents, Lanier misappropriated over $1.2 million by both submitting false reimbursement requests to FEMA and diverting additional funds that should have been used to support the firefighters.
“This fraud scheme siphoned vital federal funds from fire departments supporting communities devastated by wildfires. This sentencing sends a clear message that the theft of federal funds meant to support our front line firefighters and first responders will not be tolerated,” stated Dr. Joseph V. Cuffari, Inspector General of the Department of Homeland Security.
This case was the product of an investigation by the Major Frauds & Corruption Unit of the Department of Homeland Security, Office of Inspector General. Assistant U.S. Attorney Veronica M.A. Alegría prosecuted the case.
Seven Arrested in Human Smuggling Event Near Morses LineRead the Press Release
The United States Attorney for the District of Vermont announced that seven persons were arrested near Morses Line on October 12, 2022 in connection with what is believed to be an attempt to smuggle individuals without legal status into the United States. Manuel Molina-Romero, 29, a Honduran national who has been living in Texas since 2019 while awaiting an immigration hearing, and Estefany Arreaga-Herrera, 23, a Guatemalan national who has been living in Texas since 2016 while also awaiting an immigration hearing, appeared today in United States District Court in Burlington on a charge that they transported individuals without legal status within the United States. Two of the five individuals being transported, Carlos Aguiar-Ovando, 23, a Mexican national, and Anvar Ataev, 36, a native of Uzbekistan, both of whom have no legal status in the United States, also appeared in court today on a charge that they unlawfully entered the country. United States Magistrate Judge Kevin J. Doyle ordered that all four defendants be detained pending further court proceedings. The other three individuals arrested on October 12, all without legal status in the United States, were taken into immigration custody for expedited removal from the United States.
The United States Attorney emphasizes that the charges in the criminal complaints are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty. The transportation charge is punishable by up to ten years of imprisonment and a fine of up to $250,000. The unlawful entry charge is a misdemeanor punishable by up to six months of imprisonment. The actual sentences on the felony charges would be determined with reference to United States Sentencing Guidelines.
U.S. Attorney Nikolas P. Kerest credited the agents of the United States Border Patrol for their continued efforts to prevent the exploitation of foreign nationals by human smuggling organizations.
Molina-Romero is represented by the Office of the Federal Public Defender. Arreaga-Herrera is represented by Devin McLaughlin, Esq. Aguiar-Ovando is represented by Bob Behrens, Esq., and Ataev is represented by William Kraham, Esq. The prosecutor is Assistant U.S. Attorney Gregory Waples.
Second Florida Man Pleads Guilty to Federal Hate Crime for Racially-Motivated Attack on a Black Man Using Axe HandleRead the Press Release
Roy Lashley, 55, pleaded guilty today to a federal hate crime for attacking a Black man because of his actual and perceived race.
According to the plea agreement, on Nov. 17, 2021, Lashley traveled to the Family Dollar in Citrus Springs, Florida, where the victim, a Black man, was shopping inside. Lashley repeatedly used racial slurs inside the store in reference to the victim and then followed the victim into the parking lot. There, Lashley retrieved an axe handle from the bed of his truck and struck the victim multiple times with it. Lashley directed racial slurs towards the victim before, during and after the attack. The victim sustained painful injuries to his face and legs, including a laceration to the inside of his mouth.
“Racially motivated and hate-fueled attacks on Black people have no place in this country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “As we mark 13 years since passage of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, we renew our commitment to using all the tools in our law enforcement arsenal to prosecute unlawful acts of hate.”
“The defendant in this case deliberately and brutally attacked the victim because of his race,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “There is no place in our country for this type of abhorrent behavior, and we will prosecute those who commit these heinous crimes to the fullest extent of the law.
“Civil rights investigations are at the heart of what we do at the FBI,” Special Agent in Charge Sherri E. Onks for the FBI Jacksonville Field Division. “Hate crimes are not only an attack on the victim; they are meant to threaten and intimidate an entire community. Because of their wide-ranging impact, investigating hate crimes is among the FBI's highest priorities, and we will continue to work with our law enforcement partners to seek justice for victims and their communities.”
A sentencing hearing has not yet been set. Lashley faces a maximum term of 10 years imprisonment, three years of mandatory supervised release and a $250,000 fine.
Lashley was charged in an indictment that was unsealed on June 17. The indictment charged Lashley and co-defendant Robert Dewayne Lashley, each aiding and abetting one another, with willfully causing bodily injury to the victim because of the victim’s actual and perceived race. Robert Dewayne Lashley pleaded guilty on Oct. 4.
Assistant Attorney General Clarke, U.S. Attorney Handberg and Special Agent in Charge Onks made the announcement.
The FBI and the Citrus County Sheriff’s Office investigated the matter. Trial Attorneys Maura White and Matthew Tannenbaum of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney William Hamilton for the Middle District of Florida are prosecuting the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Second Florida Man Pleads Guilty to Federal Hate Crime for Racially-Motivated Attack on a Black Man Using Axe HandleRead the Press Release
Ocala, FL – Roy Lashley, 55, pleaded guilty today to a federal hate crime for attacking a Black man because of his actual and perceived race.
According to the plea agreement, on Nov. 17, 2021, Lashley traveled to the Family Dollar in Citrus Springs, Florida, where the victim, a Black man, was shopping inside. Lashley repeatedly used racial slurs inside the store in reference to the victim and then followed the victim into the parking lot. There, Lashley retrieved an axe handle from the bed of his truck and struck the victim multiple times with it. Lashley directed racial slurs towards the victim before, during and after the attack. The victim sustained painful injuries to his face and legs, including a laceration to the inside of his mouth.
“Racially motivated and hate-fueled attacks on Black people have no place in this country,” said Assistant Attorney General Kristen Clarke of the Department’s Civil Rights Division. “As we mark 13 years since passage of the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, we renew our commitment to using all the tools in our law enforcement arsenal to prosecute unlawful acts of hate.”
“The defendant in this case deliberately and brutally attacked the victim because of his race,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “There is no place in our country for this type of abhorrent behavior, and we will prosecute those who commit these heinous crimes to the fullest extent of the law.
“Civil rights investigations are at the heart of what we do at the FBI,” Special Agent in Charge Sherri E. Onks for the FBI Jacksonville Field Division. “Hate crimes are not only an attack on the victim; they are meant to threaten and intimidate an entire community. Because of their wide-ranging impact, investigating hate crimes is among the FBI's highest priorities, and we will continue to work with our law enforcement partners to seek justice for victims and their communities.”
A sentencing hearing has not yet been set. Lashley faces a maximum term of 10 years imprisonment, three years of mandatory supervised release and a $250,000 fine.
Lashley was charged in an indictment that was unsealed on June 17. The indictment charged Lashley and co-defendant Robert Dewayne Lashley, each aiding and abetting one another, with willfully causing bodily injury to the victim because of the victim’s actual and perceived race. Robert Dewayne Lashley pleaded guilty on Oct. 4.
Assistant Attorney General Clarke, U.S. Attorney Handberg and Special Agent in Charge Onks made the announcement.
The FBI and the Citrus County Sheriff’s Office investigated the matter. Trial Attorneys Maura White and Matthew Tannenbaum of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney William Hamilton for the Middle District of Florida are prosecuting the case.
For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.
Schuylkill County Man Pleads Guilty to Possession of A Firearm in Furtherance of Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Alnaldo Perez-Rodriguez, age 36, of Shenandoah, Schuylkill County, pleaded guilty on October 13, 2022, before U.S. District Court Judge Malachy E. Mannion, to possession of a firearm in furtherance of a drug trafficking offense.
According to United States Attorney Gerard M. Karam, Perez-Rodriguez admitted to possessing a loaded Walther .380 caliber pistol in furtherance of a drug trafficking crime. The charge stems from an incident on December 3, 2021, in Shenandoah, in which State Parole Agents, members of the United States Marshals Fugitive Task Force and members of the Schuylkill County Drug Task Force arrested Perez-Rodriguez for a violation of the conditions of his state parole. Perez-Rodriguez was found in possession of a loaded Walther .380 caliber pistol, an additional 35 rounds of .380 caliber ammunition, packets of fentanyl for distribution, packages of methamphetamine for distribution, and $875 in U.S. currency.
The investigation was conducted by the FBI Safe Streets Task Force, the Schuylkill County Drug Task Force, State Parole Agents, and the United States Marshals Fugitive Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles:
fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Under federal law, Perez-Rodriguez faces a mandatory minimum sentence of five years in prison, a maximum sentence of life, a term of supervised release and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
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Sacramento Man Pleads Guilty to Assaulting a Court Security OfficerRead the Press Release
SACRAMENTO, Calif. — Adam Fuller, 36, of Sacramento, pleaded guilty today to assault on a federal employee or officer, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 27, 2019, Fuller approached a Federal Court Security Officer outside the federal courthouse in Sacramento and punched him in the face. The punch knocked the officer to the ground and split open his forehead, requiring five stitches.
This case is the product of an investigation by the Federal Protective Services, the U.S. Marshals Service, and the Sacramento Police Department. Assistant U.S. Attorney Cameron L. Desmond is prosecuting the case.
Fuller is set to be sentenced on Jan. 9, 2023, by U.S. District Judge Kimberly J. Mueller. Fuller faces a maximum statutory penalty of 20 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.
Romance Scammer Pleads Guilty to Federal Charges, Admitting He Stole Hundreds of Thousands of Dollars from Nearly 20 VictimsRead the Press Release
LOS ANGELES – An Orange County man pleaded guilty today to federal criminal charges for defrauding 19 victims – some of whom he developed romantic relationships with – and then laundering the proceeds of his scheme.
Ze’Shawn Stanley Campbell, 35, of Irvine, pleaded guilty to one count of wire fraud and one count of money laundering.
According to his plea agreement, from April 2014 to April 2020, Campbell convinced his victims that he was reliable by befriending them and starting romantic relationships with them. To enhance his purported creditworthiness in their eyes, he told them lies, such as falsely saying that he had millions of dollars and operated successful businesses, including McDonald’s franchises, a security company and a chain of gyms in Texas. Campbell also boosted his stature with the victims by falsely telling them he was a successful investor in real estate and Bitcoin, as well as claiming he had served as a Navy SEAL in the Iraq and Afghanistan wars.
Having convinced his victims of his bona fides, Campbell induced them to provide money and property to him, claiming that he would use the victims’ money and property to support his businesses, fund investments made on the victims’ behalf and pay his purported medical bills. Rather than use the victims’ money as he promised, however, Campbell used it to pay personal expenses and to buy luxury items for himself.
For example, in December 2017, one victim wrote Campbell a check for $61,452, which Campbell deposited via interstate wires into a Wells Fargo bank account he controlled. Campbell promised the victim that the money would be used for an investment in Bitcoin on the victim’s behalf. In fact, Campbell spent the money on himself, including by making payments on a BMW and a Mercedes-Benz that he had leased in a different victim’s name.
In total, Campbell admitted to causing losses of at least $250,000 and up to $1.5 million to 19 different victims, including 10 individuals and nine companies.
United States District Judge Mark C. Scarsi scheduled a January 9 sentencing hearing, at which time Campbell will face a statutory maximum sentence of 30 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section, is prosecuting this case.
Rhode Island Law Enforcement Nets More Than $1.2 Million in Justice Department GrantsRead the Press Release
PROVIDENCE – United States Attorney Zachary A. Cunha today announced that the City of Central Falls has been awarded nearly $1.2 in grant funding through the Justice Department’s Office of Community Policing Services (COPS Office) Cops Hiring Program (CHP), and that the Rhode Island Department of Public Safety has been awarded $84,187 in support of the Department of Justice’s Project Safe Neighborhoods (PSN) Program.
Central Falls is one of just 180 law enforcement agencies across the country selected to share in $139 million in direct funding from the COPS Program to hire additional law enforcement professionals. The Department of Justice’s Bureau of Justice Assistance award of $84,187 in support of the PSN Program to the Rhode Island Department of Public Safety is in support of community efforts to address the epidemic of gun crime and serious violence in the district.
“As law enforcement agencies across the nation continue to experience recruitment and retention challenges, we are proud to provide these resources to help alleviate those challenges confronting the profession,” said COPS Office Acting Director Robert Chapman in announcing the CHP grants to bolster the number of officers on the street.
In announcing the PSN grants, Office of Justice Programs Deputy Assistant Attorney General Maureen Henneberg commented , “Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
“These grant awards support two critical aspects of the Justice Department’s efforts to ensure safety and effective law enforcement in our community, by funding targeted efforts to address gun crimes, and by promoting effective, responsive policing that responds to community needs and conditions,” said U.S. Attorney Cunha. “The Department is proud to partner with local law enforcement in these critical efforts.”
COPS Hiring Program
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers and deputies to enhance their community policing capacity and crime prevention efforts. Of the 180 agencies awarded grants today, nearly half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 30 agencies will seek to address high rates of gun violence; 26 will focus on other areas of violence; and 28 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Project Safe Neighborhoods
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Repeat Sacramento Sex Offender Indicted for Possessing Child PornographyRead the Press Release
SACRAMENTO, Calif. — Joshua Klomp, 47, of Sacramento, was arrested today after a federal grand jury returned a one-count indictment charging him with possession of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, during a probation visit in 2018, Klomp was found to be in possession of two cellphones that contained thousands of images and video files of child pornography. In 2006, Klomp was convicted for possession of child pornography and was sentenced to 10 years in prison and 20 years of supervised release. A condition of his release is that he could not possess or use computers or devices with access to the internet. Prior to the 2006 federal conviction, Klomp was convicted in Butte County of committing lewd and lascivious acts with a minor under the age of fourteen.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Sam Stefanki is prosecuting the case.
If convicted, Klomp faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Pittsburgh Man Admits Lying on a Federal Firearms Purchase FormRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has pled guilty on a charge of making a false statement in connection with the acquisition of a firearm, United States Attorney Cindy K. Chung announced today.
Jaylin Banks, age 34, of the City’s Lincoln-Lemington-Belmar neighborhood, pleaded guilty before Judge Christy Criswell Wiegand.
In connection with the guilty plea, the court was advised that between August 2020 and August 2021, Banks purchased four firearms. On Nov. 22, 2021, the Pittsburgh Bureau of Police recovered two of those firearms at the scene of a shooting. Due to the brief period of time between the purchase of one of those firearms and its use in crime, in addition to the recovery of multiple firearms in the possession of others, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) opened a straw purchase investigation into Banks. As part of the investigation, the ATF flagged Banks’ identifiers so that in the event he attempted to purchase another firearm, the federal firearm licensee would notify the ATF.
On Nov. 23, 2021, a federal firearm licensee notified the ATF that Banks was attempting to purchase a firearm at its store in Monroeville, PA. Agents with the ATF and a Pittsburgh Police detective traveled to the federal firearm licensee in order to interview Banks. During the interview, Banks admitted to buying a firearm for another person. Banks recalled that the individual drove Banks to Dunham’s Sports in Monroeville, PA, provided Banks cash, and identified for Banks the specific handgun that he wanted. Banks admitted to falsely stating at the time of the purchase that Banks was the actual purchaser of the firearm.
Judge Wiegand scheduled sentencing for Feb. 16, 2023. The law provides for a term of imprisonment of not more than ten years, a $250,000 fine, a term of supervised release of not more than three years and/or a special assessment of $100. 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 Banks on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Pittsburgh Bureau of Police conducted the investigation that led to the prosecution of Jaylin Banks.
Pharmacist Convicted for Health Care Fraud and Black-Market Prescription Drug Diversion SchemeRead the Press Release
A federal jury convicted a California woman last Friday, Oct. 14 for a health care fraud and prescription drug diversion scheme involving two Southern California pharmacies.
According to court documents and evidence presented at trial, Irina Sadovsky, 53, of Calabasas, the owner and pharmacist-in-charge of Five Star RX doing business as Five Star Pharmacy (Five Star Pharmacy) and Ultimate Pharmacy Inc. (Ultimate Pharmacy), engaged in a health care fraud and black market prescription drug diversion conspiracy that began in or around September 2016, and continued through in or around April 2017. Sadovsky submitted claims to Medicaid of California (Medi-Cal) and Medicare for prescription drugs that were never dispensed to beneficiaries but rather were provided to co-conspirators to sell on the black market.
Sadovsky’s co-conspirators created fraudulent prescriptions, either by writing the prescriptions themselves or by paying kickbacks to marketers with access to patients and prescribers. Sadovsky recommended the combinations of prescription drugs to be written, checked the eligibility of the patients for reimbursement, and fraudulently submitted claims to Medi-Cal and Medicare.
Sadovsky was convicted of conspiracy to commit health care fraud and conspiracy to engage in the unlicensed wholesale distribution of prescription drugs. She is scheduled to be sentenced on Feb. 3, 2023 and faces a maximum penalty of 10 years in prison for the health care fraud conspiracy, and five years in prison for the unlicensed distribution conspiracy. 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; U.S. Attorney Martin Estrada for the Central District of California; Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office; and Special Agent in Charge Timothy B. DeFrancesca of the Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG investigated the case, which was brought as part of the Los Angeles Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The California Department of Justice provided valuable assistance.
Assistant Chief Alexis Gregorian and Trial Attorneys Justin Givens and Alex Michael of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Ivan Lee Burton, 47, of Columbus, Ohio, pleaded guilty today to distribution of methamphetamine.
According to court documents and statements made in court, on August 3, 2022, Burton sold approximately 24 grams of methamphetamine to a confidential informant in Parkersburg. Burton admitted to conspiring with others to complete numerous drug transactions in the Parkersburg area between April 2022 and September 2022. Burton further admitted to using other individuals to sell drugs, including methamphetamine and cocaine base, also known as “crack,” during this time.
Burton is scheduled to be sentenced on January 12, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Parkersburg Narcotics Task Force (PNTF).
United States District Judge Joseph R. Goodwin 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-190.
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Nicholas County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Lester Taylor Barnhouse, 43, of Craigsville, pleaded guilty today to possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents and statements made in court, on March 13, 2022, Barnhouse fled from law enforcement officers trying to arrest him. During the pursuit, Barnhouse hid a backpack under a waterfall in the woods near Nallen, Nicholas County. An officer following Barnhouse’s tracks in the snow found the backpack, which contained approximately 646.6 grams of methamphetamine, 129 grams of fentanyl, a loaded Taurus Millennium G2 pistol, and $6,740. Barnhouse admitted that he intended to sell the methamphetamine and fentanyl, and that the cash was proceeds from drug transactions.
Barnhouse is scheduled to be sentenced on January 23, 2023, and faces a mandatory minimum of 10 years and up to life in prison, five years of supervised release, and a $10 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Nicholas County Sheriff’s Department.
Chief United States District Judge Thomas E. Johnston presided over the hearing. Assistant United States Attorney R. Gregory McVey 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-85.
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Montgomery Tax Preparer Sentenced to 16 Months in Prison for Filing False ReturnRead the Press Release
Montgomery, Alabama – Today, United States Attorney Sandra J. Stewart and Internal Revenue Service (IRS) Criminal Investigation Special Agent in Charge James E. Dorsey announced that a Montgomery tax preparer was sentenced for aiding and assisting in the preparation of a false income tax return. On Friday, October 14, 2022, Lashunda Deann Crittenden, 43, received a 16-month sentence to be followed by one year of supervised release. There is no parole in the federal system. In addition to her prison sentence, Crittenden was also ordered to pay a fine of $20,000.00 and $11.993.00 in restitution to the IRS.
According to her plea agreement and other court records, Crittenden operated a tax preparation service located on South Court Street in Montgomery. At her business, Crittenden prepared federal income tax returns for customers. During her plea hearing in September of 2021, Crittenden admitted that on February 26, 2018, she prepared and electronically transmitted a tax return that claimed a client incurred $8,726.00 in qualified solar electric property costs, $6,358.00 in medical and dental expenses, and $8,364.00 in gifts to charity, despite knowing that the client was not entitled to claim these items for calendar year 2017. The IRS subsequently paid a larger refund to the taxpayer based on these misrepresentations and Crittenden profited from the falsely inflated amount.
U.S. Attorney Stewart applauds the IRS for its efforts to identify tax fraud like this and to hold offenders accountable. U.S. Attorney Stewart also encourages all taxpayers to review their returns and to confirm that they recognize the items to be reported to the IRS. If a tax preparer refuses to let a customer examine his or her tax return before the return is filed, or if a customer reviews a tax return and sees a deduction or an expense that the customer does not recognize, the customer should ask for clarification or seek a second opinion from a different return preparer. For additional guidance, see the IRS fact sheet on its website at https://www.irs.gov/pub/irs-news/fs-08-10.pdf.
“Return preparer fraud is like a contagious disease; it affects not only the preparer, but the individuals who have filed false information with the Internal Revenue Service.” said Special Agent in Charge Dorsey with the Atlanta Field Office. “It is our hope that this sentence sends the strong message that tampering with the integrity of our nation's tax system will result in jail time.”
This case was investigated by the IRS’s Criminal Investigation Division. Assistant United States Attorneys Megan A. Kirkpatrick and Russell T. Duraski prosecuted the case.
Mexican Mafia narcotics supplier and local gang member sent to prisonRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old man has been ordered to prison following his conviction of possessing a firearm as a felon and possession with intent to distribute cocaine, announced U.S. Attorney Jennifer B. Lowery.
Manuel Moya pleaded guilty July 27.
Today, U.S. District Judge David S. Morales ordered Moya to serve 300 months in federal prison to be immediately followed by five years of supervised release.
On April 22, authorities executed a search warrant at Moya’s residence, at which time they discovered approximately 11.2 kilograms of cocaine, 1.5 kilograms of meth, three kilograms of marijuana and over $120,000. They also found other controlled substances such as psilocybin mushrooms, crack cocaine, synthetic cannabinoid, THC oil/wax and MDMA. He was the only one present at the location.
The value of the cocaine and meth retrieved exceeded $774,000 and $72,000, respectively.
Law enforcement also found a Century Arms Inc. pistol, Ruger rifle, two Taurus pistols, three Glock pistols, a JTS Group shotgun, body armor, high-capacity magazines and several rounds of ammunition. Two of the firearms contained chambered rounds. Moya took responsibility of the weapons and ammunition.
In addition, they discovered several ledgers that documented Moya’s controlled substance distribution activities and a notebook with instructions on how to make drugs. Other supplies were found in the search including glassware with residue of controlled substances, bags, equipment for vacuum sealing, weight scales, small sandwich bags, money counters and razor blades.
The investigation revealed Moya was a local gang member and a drug supplier to the Mexican Mafia. He distributed narcotics on both an individual and large-scale basis.
Moya has been previously convicted of possession of a controlled substance, unlawful possession of cocaine and unlawful possession of a firearm by a felon. As such, he is prohibited from possessing firearms or ammunition per federal law.
He has been will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Corpus Christi Police Department conducted the investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney J. Parker Gochenour prosecuted the case.
Meridian Man Sentenced to Prison for Possession of a Firearm by Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man was sentenced to 52 months in federal prison for possession of a firearm by a convicted felon, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, on February 3, 2020, Eric Wayne Washington, 50, was found to be in possession of a firearm during the execution of a search warrant at his residence. Washington was found in the residence and taken into custody. After Washington identified which bedroom belonged to him, the officers continued their search. A 9mm pistol was found in the bedroom along with methamphetamine. Washington has multiple prior felony convictions. As a convicted felon, it is contrary to federal law for Washington to possess any firearms or ammunition.
The Meridian Police Department and the FBI investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mason County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Rowdy Lee Randolph, 39, of Leon, pleaded guilty today to possession with intent to distribute marijuana.
According to court documents and statements made in court, on August 4, 2020, law enforcement officers searched Randolph’s property in Leon and seized six marijuana plants from his yard and approximately 1.5 pounds of marijuana from his residence. Randolph admitted to growing marijuana on his property and selling it for money.
Randolph is scheduled to be sentenced on January 24, 2023, and faces a maximum penalty of five years in prison, two years of supervised release, and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Violent Crime and Drug Task Force West.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-150.
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Maryland man sentenced for role in drug trafficking and firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marcus Purnell, of Oxon Hill, Maryland, was sentenced today to 15 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Purnell, also known as “Mo,” 35, pleaded guilty in May 2022 to one count of “Unlawful Use of Communication Facility.” Purnell admitted to using a phone to help distribute Eutylone, also known as “Boot,” in November 2020 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms, & Explosives; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Harpers Ferry Police Department; and the Metropolitan Police Department of Washington, D.C. investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, the Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. District Judge Gina M. Groh presided.
Marion Man Pleads Guilty to Receiving Child PornographyRead the Press Release
A former volunteer Linn County reserve deputy sheriff pled guilty today in federal court to receiving child pornography.
Gordon Grabau, age 51, from Marion, Iowa, was convicted of one count of receiving child pornography.
In a plea agreement, Grabau admitted that, between December 2014 and June 2021, he knowingly received and attempted to receive visual depictions of minors engaged in sexually explicit conduct. Grabau further admitted that, on July 1, 2021, law enforcement officers searched his home in Marion. Officers seized numerous digital storage devices, such as hard drives and thumb drives, from the home. Those devices were examined, and officers discovered Grabau had over 160,000 files containing child pornography spread over five devices. Grabau admitted that those files included material involving children under the age of 12, including children as young as infants and toddlers. The material also included images portraying both sadistic and masochistic conduct.
Evidence at a prior hearing showed that Grabau had served as a volunteer reserve deputy sheriff in Linn County since 2000. The Linn County Sheriff’s Office suspended him and Grabau later resigned his position on July 17, 2021.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Grabau remains in custody of the United States Marshal pending sentencing. Grabau faces a mandatory minimum sentence of 5 years’ imprisonment and the following maximum penalties: (1) not more than 20 years’ imprisonment without the possibility of parole; (2) a fine of not more than $250,000; (3) a mandatory special assessment of $100; and (4) a term of supervised release of at least 5 years to life.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Federal Bureau of Investigation with the assistance of the Iowa Division of Criminal Investigation and the Marion Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-53.
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Marion County Man Who Pretended to Be A Federal Agent Convicted of Producing and Receiving Child Sex Abuse MaterialRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Eddie Joe Oglesby, Jr. (52, Fort McCoy) guilty of two counts of production of child sex abuse material and one count of receipt of child sex abuse material. Oglesby faces a minimum mandatory penalty of 15 years, up to 30 years in federal prison on each of the two production counts. He faces a minimum mandatory of 5 years, up to 20 years, on the receipt count. His sentencing hearing is scheduled for February 16, 2023, before Senior United States District Judge John Antoon II. A superseding indictment was returned against Oglesby on September 13, 2022.
According to testimony and evidence presented at trial, Oglesby created an elaborate false identity that he used to impersonate a federal agent. He used this false identity to coerce underaged female victims to produce and send him sexually explicit images over the internet. Posing as the false agent, Oglesby threatened to have the victims arrested, imprisoned, institutionalized, or killed if they did not comply with his demands.
When the FBI searched Oglesby’s home on September 27, 2021, they found him with an underaged female runaway. A search of Oglesby’s cellphone showed him logged into multiple social media applications under both his real and false identity. Agents ultimately found 473 pages of electronic communications between Oglesby and one of his victims on that cellphone.
This case was investigated by the Federal Bureau of Investigation, the Marion County Sheriff’s Office, the Weatherford (Texas) Police Department, and the Cobb County (Georgia) Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys William S. Hamilton and Hannah J. Nowalk.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), 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.
Man from Mescalero sentenced to two years in prison for domestic violenceRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Lance Marion Cojo was sentenced on Oct. 11 to two years in prison. Cojo, 36, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, pleaded guilty on April 26 to one count of assault of an intimate or dating partner resulting in substantial bodily injury and one count of assault of an intimate or dating partner by strangling.
On Dec. 31, 2021, on the Mescalero Apache Reservation, in Otero County, New Mexico, Cojo assaulted a victim, identified in court records as Jane Doe. Over the course of two days, the victim was severely beaten by Cojo. Cojo’s assault resulted in serious injuries to Jane Doe, who is also a member of the Mescalero Apache Tribe. Jane Doe was taken to a medical center for her injuries where she was treated for a collapsed lung, fractured ribs, and bruising to both eyes, face, neck and ribs.
Upon his release from prison, Cojo will be subject to three years of supervised release.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Matilda McCarthy Villalobos prosecuted the case.
Anyone experiencing domestic violence or who knows someone experiencing domestic violence can reach an advocate at the National Domestic Violence Hotline at 1-800-799-SAFE (7233) or 1-800-787-3224 (TTY).
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Man Who Received Depictions of Child Sexual Abuse Sentenced to Federal PrisonRead the Press Release
A man who possessed depictions of child sexual abuse was sentenced today to six years in federal prison.
Mychal Olson, age 32, from Dubuque, Iowa, received the prison term after an April 22, 2022 guilty plea to receipt of child pornography.
At the guilty plea, Olson admitted that between May 2019 and December 2020 he knowingly received depictions of minors engaging in sexually explicit conduct on his cell phone.
Olson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Olson was sentenced to 72 months’ imprisonment and fined $100. He was ordered to make restitution. He must also serve a ten-year term of supervised release after the prison term and will be required to register on the sex offender registry. There is no parole in the federal system.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Olson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Liz Dupuich and investigated by Homeland Security Investigations, the Iowa Division of Criminal Investigation, the Waterloo Police Department with assistance from the South Australian Police.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-2075.
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Man Previously Convicted of Second-Degree Murder in State Court Sentenced to Federal Prison for Unlawful Gun PossessionRead the Press Release
A man who was previously convicted of second-degree murder in state court and who violently assaulted another inmate in the Linn County jail was sentenced today to five years in federal prison.
Johnny Blahnik Church, f/k/a Drew Blahnik, age 35, from Cedar Rapids, Iowa, received the prison term after a June 6, 2022 guilty plea to being a prohibited person in possession of a firearm and ammunition.
At the plea hearing, Church admitted that, in February 2019, he possessed a Glock .40 caliber handgun and multiple rounds of .40 caliber ammunition. Church also admitted that at the time he possessed this gun and ammunition, he was prohibited from doing so because he was a knowing user of both cocaine and methamphetamine.
In July 2021, Church, then known as Drew Blahnik, was convicted after a trial in the Iowa District Court for Linn County of second-degree murder, obstruction of justice, and abuse of a corpse related to the December 2018 death of Chris Bagley. In December 2021, Church was sentenced to 57 years in Iowa state prison as a result of these convictions.
Evidence at sentencing showed that, in May 2022, while confined in the Linn County Jail awaiting trial on his federal gun charge, Church, along with another inmate, assaulted a third inmate. The assault, which lasted for several minutes, included Church and the other inmate assaulting the victim by punching him, kicking him, and hitting him with a metal tray, causing multiple serious injuries. Church has been charged with assault causing serious injury and tampering with a witness in the Iowa District Court for Linn County. As with any criminal case, a charge is merely an accusation, and a defendant is presumed innocent unless and until proven guilty.
Church was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Church was sentenced to 60 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by the Linn County Sheriff’s Office, the Federal Bureau of Investigation, the Iowa Division of Criminal Investigation, and the Drug Enforcement Administration.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-30.
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Louisiana Tax Preparer Pleads Guilty to Making and Subscribing a False Tax ReturnRead the Press Release
CLEVELAND - Jamika Raymond, 38, of Slidell, Louisiana, pleaded guilty today to one count of making and subscribing a false tax return.
According to court documents, Raymond was a tax preparer and operated a tax preparation business where she prepared tax returns on behalf of others. Court documents state that in February 2016, Raymond knowingly underreported business income earned for the calendar year 2015 on her tax return. Court documents also state that Raymond’s actual income was substantially more than what was reported on her individual tax return.
Raymond is scheduled to be sentenced on February 7, 2023 and faces a maximum possible sentence of three years in prison.
The investigation preceding the indictment was conducted by IRS Criminal Investigations (CI) and is being prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Robert J. Patton.
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Local Paving Company Owner Sentenced for Tax EvasionRead the Press Release
BOSTON – The owner of a local paving company was sentenced today for tax evasion in connection with a seven-year scheme to underreport income on his tax returns.
Robert Brainard, 52, of Weymouth, was sentenced by U.S. District Court Judge Leo T. Sorokin to one year and one day in prison and one year of supervised release. Brainard was also ordered to pay $784,799 in restitution to the Internal Revenue Service for unpaid income and employment taxes. On July 25, 2022, Brainard pleaded guilty to one count of tax evasion.
Brainard, the former owner of Got Pavement Needs, Inc., underreported income on his personal tax returns for tax years 2014 through 2021, resulting in an income tax loss of more than $593,993. In addition, to hide his control of the business, Brainard transferred ownership of his company in a straw sale, while maintaining control over the company’s operations and income. Brainard used his illicit tax savings to fund an off-the-books, cash payroll, for which he also did not pay employment taxes.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement today. Assistant U.S. Attorney Kriss Basil of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Lebanon Man Sentenced to 20 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Lebanon, Mo., man who crashed his vehicle and resisted arrest was sentenced in federal court today for his role in a methamphetamine conspiracy in Newton and Greene counties.
Douglas S. Ward, 34, was sentenced by U.S. District Judge M. Douglas Harpool to 20 years in federal prison without parole.
On March 3, 2022, Ward pleaded guilty to participating in a conspiracy to distribute methamphetamine. Co-defendants William D. Johnson, 47, address unknown, and Joshua T. Davenport, 41, of Miami, Oklahoma, have also pleaded guilty and await sentencing.
Ward admitted that he received methamphetamine and distributed it to others during the conspiracy, which lasted from May 20 to Sept. 28, 2019. Johnson obtained large amounts of methamphetamine from a source in California and distributed it to others, including Davenport.
Ward was arrested after he crashed the car he was driving on June 18, 2019. A Jasper County, Mo., Sheriff’s Department transport officer was traveling eastbound on Missouri 96 near Route UU in Lawrence County, Mo., when Ward’s vehicle passed him, forcing another vehicle in the opposite lane off the roadway. As the officer attempted to catch up to him, Ward turned right onto County Road 1085 but missed the intersection. Ward’s vehicle traveled off the roadway and overturned.
Ward punched out the driver’s side window and crawled out of the vehicle. A man and a woman crawled out from the passenger’s side, and the officer ordered all three of them to stay down. Ward, however, reached into his pocket and pulled out a large plastic bag that contained 88.01 grams of methamphetamine, which he threw on the ground, then took off running.
The officer caught up to Ward but Ward resisted arrest. Ward was able to get away when the woman from his vehicle came up behind the officer and grabbed him. A Missouri State Highway Patrol trooper who came to assist the officer eventually apprehended Ward, who was hiding in the grass.
According to court documents, Ward told officers in June 2019 that he had been getting one pound of methamphetamine per day from his source since getting out of prison in December 2018. He also admitted that, for four weeks prior to his arrest, he had obtained two pounds of methamphetamine per week for $4,000 per pound.
Ward has a prior state felony conviction for drug trafficking. Ward also has a prior conviction for domestic violence for an incident in which he picked up his girlfriend, slammed her on the floor, picked her up again, and threw her on the couch. When the victim’s 2-year-old daughter came into the room, he yelled at the child. The victim told him not to yell at her daughter, at which point he grabbed the victim from behind and began to choke her and hit her in the face. Ward has another assault conviction for an incident that occurred while he was incarcerated and attacked another inmate.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Eatmon. It was investigated by the Missouri State Highway Patrol, the Newton County, Mo., Sheriff’s Department, the Joplin, Mo., Police Department, the Jasper County, Mo., Sheriff’s Department, the Springfield, Mo., Police Department, the Apache County, Arizona, Sheriff’s Department, the Ozarks Drug Enforcement Team, the Drug Enforcement Administration, and the FBI.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Lame Deer woman admits strangling victimRead the Press Release
BILLINGS — A Lame Deer woman on Oct. 14 admitted to strangling another woman in 2021 on the Northern Cheyenne Indian Reservation, U.S. Attorney Jesse Laslovich said today.
Shaydel Alissa Spang, 25, pleaded guilty to strangulation. Spang faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Sentencing was set for Feb. 15, 2023. Spang was released pending further proceedings.
The government alleged in court documents that Spang and the victim, identified as Jane Doe, had lived together. On Oct. 22, 2021, Doe was driving in Lame Deer, saw Spang walking and offered to give Spang a ride. Spang got in the car, but when Spang asked to be taken to a certain location, Doe refused. Spang began assaulting Doe and strangled her. Spang eventually let go. Doe drove them to the police station because she wanted to get a restraining order against Spang. Spang told a Bureau of Indian Affairs officer that Doe needed to learn to respect and listen to her.
The U.S. Attorney’s Office is prosecuting the case, which was investigated by the FBI.
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Kanawha County Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Jamie Edward Smith, 35, of Montgomery, pleaded guilty today to distribution of methamphetamine.
According to court documents and statements made in court, on February 22, 2022, Smith sold approximately 18 grams of methamphetamine to a confidential informant on Third Avenue in Montgomery for $350. Smith admitted to selling additional quantities of methamphetamine totaling approximately 51 grams to the confidential informant in Montgomery on two other occasions in February 2022. Smith further admitted to possessing a pistol and showing it to the confidential informant during one of the transactions.
Smith is scheduled to be sentenced on January 18, 2023, and faces a maximum penalty of 20 years in prison, at least three years of supervised release, and up to a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
Senior United States District Judge John T. Copenhaver Jr. presided over the hearing. Assistant United States Attorney Nowles Heinrich 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-195.
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Justice Department Resolves Race Discrimination Lawsuit Against Mississippi Property Owners and Rental AgentRead the Press Release
The Justice Department announced today that SSM Properties LLC, and Steven and Sheila Maulding, the owners of several apartment complexes in Pearl, Mississippi, and their former rental agent, James Roe, have agreed to pay $123,000 to resolve a racial discrimination lawsuit. The U.S. District Court for the Southern District of Mississippi ruled in August that the defendants had violated the Fair Housing Act by discriminating against Black prospective residents.
“Housing discrimination has no place in our society and a person’s race should never determine where that person can live,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The Justice Department will continue to vigorously pursue and hold accountable those who would deny equal housing opportunities because of the color of one’s skin.”
“We will not tolerate discrimination in housing,” said U.S. Attorney Darren LaMarca for the Southern District of Mississippi. “Those who choose to deny equal housing opportunities will be held to atone for their conduct.”
“Prospective residents should not be subjected to housing discrimination on the basis of race. It is clear that fair housing testing remains an important tool in identifying those who violate the Fair Housing Act,” said Demetria L. McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD applauds today’s action and remains committed to working with the Justice Department to vigorously enforce our nation’s fair housing laws.”
The case began when the Louisiana Fair Housing Action Center conducted fair-housing testing at the properties. Testing is a simulation of a housing transaction that compares responses given by housing providers to different types of home-seekers to determine whether or not illegal discrimination is occurring. Based on the results of these tests, which showed that Roe treated Black and white testers differently and made discriminatory statements to the Black testers, the center filed a complaint with HUD. HUD conducted an investigation and determined that there was reasonable cause to believe that discrimination occurred, and referred the matter to the department, which filed this lawsuit. The testers subsequently intervened in the lawsuit as plaintiffs. The court found that Roe’s conduct violated the Fair Housing Act and held the owners legally responsible because Roe was acting as their agent.
Under the terms of the consent decree, which must still be approved by the court, the owner-defendants will pay $110,000 in monetary damages and attorneys’ fees to four Black testers and all the defendants will pay civil penalties to the federal government to vindicate the public interest. The consent decree also prohibits Roe from working at any residential rental properties and requires the owner-defendants to hire an independent leasing manager, implement nondiscriminatory standards and procedures, undergo fair housing training and provide periodic reports to the department.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. Individuals may report housing discrimination by calling the Justice Department at 1-833-591-0291, emailing [email protected], or submitting a report online. Individuals also may report discrimination by contacting HUD at 1-800-669-9777, or by filing a complaint online.
Jury convicts North Carolina man of methamphetamine traffickingRead the Press Release
ATLANTA. – Rodney Dwayne Brendle has been convicted by a jury on two methamphetamine trafficking charges. Just after his initial trial date was set in 2021, Brendle removed his geolocation ankle monitor and became a fugitive from justice. He was later arrested in Oregon.
“Brendle and his co-defendants traveled several hours from North Carolina to Lilburn, Georgia, to purchase a large amount of methamphetamine,” said U.S. Attorney Ryan K. Buchanan. “His conviction following a jury trial serves as a reminder to those residing inside and outside of our district that prosecutions of narcotics traffickers remain a priority for this office and for our federal, state, and local law enforcement partners.”
“The cocktail of deadly chemicals used to manufacture methamphetamine is a recipe for disaster,” said Robert J. Murphy Special Agent in Charge of the DEA Atlanta Field Division. “‘Meth’ not only is volatile and toxic, but it destroys families, communities, and lives. Because of the collective effort between DEA and its law enforcement counterparts, the prosecution of this case and the subsequent guilty verdict were made possible.”
According to U.S. Attorney Buchanan, the charges and other information presented at trial: On June 14, 2019, Drug Enforcement Administration (DEA) agents and other law enforcement officers conducted surveillance of an apartment complex associated with Alexis Figueroa, a narcotics trafficker in Doraville, Georgia. The investigators saw Figueroa complete multiple narcotics transactions that day.
The investigators continued to surveil Figueroa as he drove from the apartment complex to a store in Lilburn. The investigators watched as Figueroa arrived in the store’s parking lot and picked up Rodney Dwayne Brendle’s co-defendant, James Cantley. Cantley entered Figueroa’s vehicle and obtained approximately two kilograms of methamphetamine from Figueroa for $10,000. Brendle and a second co-defendant, Adam Henderson, watched from the front of the store as the transaction occurred. The evidence presented at trial revealed that Brendle, Cantley, and Henderson drove from North Carolina to Georgia to purchase the drugs. Georgia State Patrol officers, working in conjunction with DEA, arrested Brendle, Cantley, and Henderson after the three men departed the parking lot of the store in Brendle’s vehicle.
Brendle was indicted by a federal grand jury on August 27, 2019, on one count of conspiracy to possess with intent to distribute a controlled substance and one count of possession of a controlled substance with intent to distribute. He was already on probation at that time as result of a state court felony guilty plea for possession of methamphetamine in North Carolina.
In addition, while on pretrial supervision awaiting the start of his trial, Brendle removed a geolocation ankle monitor and became a fugitive from justice. He was later arrested in Oregon and returned to the Northern District of Georgia to stand trial. Following a five-day trial, but after deliberating under only two hours, a jury returned guilty verdicts on both counts of the indictment on October 12, 2022. Brendle’s sentencing hearing is scheduled before U.S. District Judge Amy Totenberg in January 2023.
The charges against the co-defendants have also been resolved as follows:
- James Kristoffer Cantley, 40, of Newton, North Carolina, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, and was sentenced to 10 years, one month in prison to be followed by five years of supervised release;
- Adam Shane Henderson, 47, of Hickory, North Carolina, pleaded guilty to conspiracy to possess with intent to distribute a controlled substance, and is awaiting sentencing; and
- Alexis Figueroa-Lozano, 23, of Doraville, Georgia, pleaded guilty to trafficking in illegal drugs, and was sentenced to 15 years of confinement in Georgia state court.
This case was investigated by the Drug Enforcement Administration with assistance from the Georgia State Patrol.
Assistant U.S. Attorneys Miguel R. Acosta and Sandy Strippoli are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Intertech Trading Corp. Sentenced to Pay $140,000 on 14 Felony Counts of Failure to File Export Information on Shipments of Lab Equipment to Russia and UkraineRead the Press Release
CONCORD – Intertech Trading Corporation, an Atkinson, New Hampshire-based laboratory equipment distributor, was sentenced today in federal court after pleading guilty to 14 felony counts of failure to file export information on shipments to Russia and Ukraine, United States Attorney Jane E. Young announced. Judge Paul Barbadoro ordered that Intertech pay the maximum allowable fine of $10,000 per count, for a total of $140,000, and be subject to a two-year term of corporate probation and monitoring.
According to court documents and statements made in court, between 2015 and 2019, Intertech exported laboratory equipment to Russia, Ukraine, and elsewhere, falsely describing the nature and value of the exported items on commercial invoices and shipping forms. In its plea agreement, Intertech admitted that it used false, innocuous descriptions such as “lamp for aquarium” or “spares for welding system,” rather than accurately identifying the sophisticated scientific equipment actually contained in the shipments. Intertech admitted that it drastically undervalued the shipments, thereby evading the requirement to file Electronic Export Information, which would have been reported to the Departments of Commerce and Homeland Security.
“Evasion of export control requirements is a serious felony and undermines the government’s ability to ensure that sensitive equipment does not end up in the wrong hands,” said U.S. Attorney Young. “Our office works closely with our law enforcement partners to detect, deter, and punish companies and individuals that violate export control laws.”
“Through lies and deceit, Intertech Trading Corporation evaded U.S. export laws to illegally send sophisticated scientific equipment to Russia and Ukraine, jeopardizing our national security,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case demonstrates how the FBI and our law enforcement partners will use all the resources at our disposal to ensure that sensitive technology doesn’t end up in the wrong hands, and those who try and circumvent U.S. law will be held accountable.”
This matter was investigated by the Federal Bureau of Investigation, Boston Division, and the Department of Commerce, Office of Export Enforcement. The case was prosecuted by Assistant U.S. Attorney Jarad Hodes and Trial Attorney David Lim of the National Security Division’s Counterintelligence and Export Control Section.
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