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Thursday 29 September 2022
Melbourne man sentenced to 20 years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DES MOINES, Iowa – Martin Leon Morales, age 40 of Melboure, was sentenced on Friday, September 23, 2022, to 240 months in prison following his guilty plea to Conspiracy to Distribute 50 grams or more of Methamphetamine.
According to court documents, Leon Morales was under investigation for drug distribution. Investigators from the Mid-Iowa Drug Task Force had information that Leon Morales was traveling to and from California. On June 7, 2020, Leon Morales’ vehicle was stopped by officers with the Cass County Sheriff’s Office. During a search of Leon Morales’ vehicle, approximately 24 pounds of methamphetamine was found. Leon Morales admitted he intended to distribute the methamphetamine.
In January 2022, co-defendant Aimee Kathleen Smith, age 32 of Marshalltown, was sentenced to 120-month in prison following her guilty plea to Conspiracy to Distribute 50 grams or more of Methamphetamine.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Mid-Iowa Drug Task Force, Tri-County Drug Task Force, Iowa Division of Narcotics Enforcement, and Cass County Sheriff’s Office investigated the case.
Man Extradited from Germany Appears in Federal Court on Charge of International Parental KidnappingRead the Press Release
HUNTSVILLE, Ala. – A former Madison County resident charged with international parental kidnapping was arraigned today in federal court, announced U.S. Attorney Prim F. Escalona and FBI Acting Special Agent in Charge Felix Rivera-Esparra.
Igor Slobodskyi, 51, a non-U.S. Citizen, formerly of Huntsville, was extradited from Germany to the United States to answer federal charges of international parental kidnapping. U.S. Magistrate Judge Herman N. Johnson, Jr. arraigned Slobodskyi on a one-count indictment charging him with removing two children under the age of 16 years old from the United States and retaining those children outside the United States with the intent to obstruct the lawful exercise of another’s parental rights.
The maximum penalty for international parental kidnapping is three years in prison and a maximum fine of $250,000.
The FBI investigated the case, along with the Huntsville Police Department. Assistant U.S. Attorney R. Leann White is prosecuting the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Germany to secure the arrest and extradition of Slobodskyi to the United States.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Man Charged in Federal Court with Chicago CarjackingRead the Press Release
CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly violently stealing a vehicle from a woman in Chicago earlier this year.
MONTE HANDLEY, 18, of Chicago, stole a Nissan Sentra on Jan. 17, 2022, according to an indictment returned in U.S. District Court in Chicago. The carjacking allegedly occurred in the 5000 block of South Kolin Avenue in the Archer Heights neighborhood on Chicago’s Southwest Side. In addition to the driver, another woman and a one-year-old child were passengers in the vehicle at the time of the alleged carjacking.
The indictment charges Handley with carjacking and using, carrying, and brandishing a firearm during a crime of violence. The carjacking count is punishable by up to 15 years in federal prison. The firearm count carries a minimum prison term of seven years and a maximum of life, which must be served consecutively to any sentence imposed for the alleged carjacking.
Handley is currently in law enforcement custody. Arraignment in federal court is set for Oct. 5, 2022, at 1:30 p.m. before U.S. Magistrate Judge Sunil R. Harjani.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. The Illinois State Police provided valuable assistance in the investigation. The government is represented by Assistant U.S. Attorneys Emily Vermylen and Prashant Kolluri.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Major in the United States Army and a Maryland Doctor Facing Federal Indictment for Allegedly Providing Confidential Health Information to a Purported Russian Representative to Assist Russia Related to the Conflict in UkraineRead the Press Release
UPDATE
All charges against the defendants in this case, Anna Gabrielian and Jamie Lee Henry, were dismissed with prejudice on May 22, 2024, following the Court’s granting of the defendants’ motion to dismiss on Speedy Trial Act grounds.
Baltimore, Maryland – A federal grand jury has returned an indictment charging Anna Gabrielian, age 36, and her husband, Jamie Lee Henry, age 39, both of Rockville, Maryland, with conspiracy and for the disclosure of individually identifiable health information (“IIHI”), related to their efforts to assist Russia in connection with the conflict in Ukraine. The indictment was returned on September 28, 2022 and unsealed today upon the arrest of the defendants.
Gabrielian is scheduled to have initial appearance at 11:30 a.m. today, in U.S. District Court in Baltimore before U.S. Magistrate Judge Brendan A. Hurson. Henry is also expected to have an initial appearance today, although a time has not yet been set.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
As stated in the indictment, Gabrielian is an anesthesiologist and worked at Medical Institution 1, located in Baltimore, Maryland. Henry, a Major in the United States Army, who held a Secret-level security clearance, is Gabrielian’s husband and a doctor. During the time of the alleged conspiracy, Henry worked as a staff internist stationed at Fort Bragg, the home of the Army’s XVIII Airborne Corps, headquarters of the United States Army Special Operations Command, and the Womack Army Medical Center.
According to the eight-count indictment, Gabrielian and Henry conspired to cause harm to the United States by providing confidential health information of Americans associated with the United States government and military to Russia. Specifically, the indictment alleges that beginning on August 17, 2022, Gabrielian and Henry conspired to provide IIHI related to patients at Medical Institution 1 and at Fort Bragg to an individual they believed to be working for the Russian government in order to demonstrate the level of Gabrielian’s and Henry’s access to IIHI of Americans; their willingness to provide IIHI to the Russian government; and the potential for the Russian government to gain insights into the medical conditions of individuals associated with the United States government and military in order to exploit this information.
Gabrielian and Henry met with an individual they believed to be associated with the Russian government, but who was, in fact, a Federal Bureau of Investigation Undercover Agent (“UC”), in order to convey to the UC their commitment to aid Russia, and to discuss ways in which they could help the Russian government. Gabrielian told the UC that she had previously reached out to the Russian embassy by email and phone, offering Russia her and her husband’s assistance. Gabrielian told the UC that, although Henry knew of Gabrielian’s interaction with the Russian Embassy, she never mentioned Henry’s name to the Russian Embassy. Gabrielian wanted to make sure Henry could deny any knowledge of her actions. On August 17, 2022, Gabrielian met with the UC at a hotel in Baltimore. During that meeting, Gabrielian told the UC she was motivated by patriotism toward Russia to provide any assistance she could to Russia, even if it meant being fired or going to jail. Gabrielian proposed potential cover stories for meeting the UC and stressed the need for “plausible deniability” in the event she was confronted by American authorities about meeting with the UC. Gabrielian also told the UC that, as a military officer, Henry was currently a more important source for Russia than she was, because he had more helpful information, including how the United States military establishes an army hospital in war conditions and information about previous training provided by the United States military to Ukrainian military personnel. Gabrielian arranged to meet with the UC and Henry later that evening.
At about 8:10 p.m. that evening, the indictment alleges that Gabrielian and Henry met with the UC in the UC’s hotel room. During the meeting, Henry explained to the UC he was committed to assisting Russia and had looked into volunteering to join the Russian Army after the conflict in Ukraine began, but Russia wanted people with “combat experience” and he did not have any. Henry further stated, “the way I am viewing what is going on in Ukraine now, is that the United States is using Ukrainians as a proxy for their own hatred toward Russia.” Henry and Gabrielian allegedly offered to provide the UC with private medical records from the United States Army and Medical Institution 1 in order to help the Russian government. During the same meeting, Gabrielian demanded that if she were put at significant risk of arrest, she wanted her and Henry’s children to, “have a nice flight to Turkey to go on vacation because I don’t want to end in jail here with my kids being hostages over my head.” Henry also indicated that he was concerned about passing a background check for his security clearance, telling the UC, “I don’t want to know your name . . . because I want plausible deniability too. In a security clearance situation they want to know names and people and all this stuff.”
As detailed in the indictment, a few days later Gabrielian and the UC again met at the hotel in Baltimore to discuss providing Army medical records to the UC. Gabrielian told the UC that Henry was concerned about violating HIPAA, but Gabrielian had no such concerns. Gabrielian stated that she would check with Henry about providing medical records from Fort Bragg patients and get back in touch. The next day, Gabrielian sent a text to the UC, using coded language, to advise that Henry would provide Army medical records to the UC. On August 31, 2022, Gabrielian and Henry allegedly met the UC at a hotel room in Gaithersburg, Maryland. According to the indictment, Gabrielian provided the UC with IIHI related to two individuals, including the spouse of an employee of the Office of Naval Intelligence, whom Gabrielian pointed out had a medical condition Russia could “exploit.” Henry also allegedly provided IIHI related to five individuals who were military veterans or related to military veterans.
If convicted, the defendants face a maximum sentence of five years in federal prison for the conspiracy, and a maximum of 10 years in federal prison for each count of disclosing IIHI. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation and thanked the U.S. Army Counterintelligence for its collaboration Mr. Barron thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, and its efforts to protect national security, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/anti-terrorism.
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Louisiana Man Pleads Guilty to Kidnapping a Gay Man as Part of Scheme to Kidnap and Murder Grindr UsersRead the Press Release
Chance Seneca, 21, of Lafayette, Louisiana, pleaded guilty today before U.S. District Judge Robert Summerhays to one count of kidnapping.
According to his plea agreement, Seneca admitted that on June 20, 2020, he used Grindr, a dating application for gay and bisexual men, to kidnap and attempt to murder H.W., a gay man. Specifically, Seneca acknowledged that he used Grindr to propose a meeting with H.W., and that he drove H.W. to an isolated house, took out a handgun and told him to put on handcuffs. Seneca then attempted to murder and dismember H.W. Seneca acknowledged that he intended to murder and dismember H.W. for the purpose of satisfying his homicidal urges, and that he had planned to continue murdering until he was caught or killed.
“The actions and intentions of the defendant in this case were shocking,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The internet should be accessible and safe for all Americans, regardless of their gender or sexual orientation. The Justice Department will continue to identify and hold accountable anyone who uses online spaces as a means to terrorize or abuse others.”
“The facts surrounding the events that took place in this case are very disturbing,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “It is nothing short of miraculous that the victims who endured the vicious attacks from this defendant survived. We will continue to fight to seek justice for victims who suffer at the hands of defendants such as this.”
The statutory maximum for the kidnapping offense is life imprisonment. Seneca faces additional exposure under the U.S. Sentencing Guidelines if the sentencing court finds beyond a reasonable doubt that he intentionally selected the victim because of the victim’s actual or perceived gender or sexual orientation. Sentencing is scheduled for Jan. 25, 2023.
Assistant Attorney General Clarke, U.S. Attorney Brown and Special Agent in Charge Douglas A. Williams Jr. for the FBI New Orleans Field Office made the announcement.
The FBI and the Lafayette Police Department conducted the investigation. This case is being prosecuted by Deputy Criminal Chief Myers Namie of the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division.
Lebanon Man Sentenced to 90 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jorge Roque, Jr., age 35, of Lebanon, Pennsylvania, was sentenced on September 27, 2022, to 90 months’ imprisonment to be followed by three years of supervised release by United States District Court Judge Jennifer P. Wilson for drug trafficking and possession of a firearm during and in furtherance of drug trafficking.
According to United States Attorney Gerard M. Karam, Roque was arrested in Lebanon, Pennsylvania in December 2021, in connection with a shooting investigation. At the time of his arrest, Roque was found in possession of methamphetamine, drug-trafficking paraphernalia, a loaded 9-millimeter handgun, and an additional loaded magazine. Roque pleaded guilty to the charges underlying the sentence imposed by Judge Wilson.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christian Haugsby prosecuted 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.
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Lafayette Man Pleads Guilty to Kidnapping a Gay Man as Part of Scheme to Kidnap and Murder Grindr UsersRead the Press Release
LAFAYETTE, La. – Chance Seneca, 21, of Lafayette, Louisiana, pleaded guilty today before U.S. District Judge Robert Summerhays, to one count of kidnapping.
According to his plea agreement, Seneca admitted that on June 20, 2020, he used Grindr, a dating application for gay and bisexual men, to kidnap and attempt to murder H.W., a gay man. Specifically, Seneca acknowledged that he used Grindr to propose a meeting with H.W., and that he drove H.W. to an isolated house, took out a handgun and told him to put on handcuffs. Seneca then attempted to murder and dismember H.W. Seneca acknowledged that he intended to murder and dismember H.W. for the purpose of satisfying his homicidal urges, and that he had planned to continue murdering until he was caught or killed.
“The actions and intentions of the defendant in this case were shocking,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The internet should be accessible and safe for all Americans, regardless of their gender or sexual orientation. The Justice Department will continue to identify and hold accountable anyone who uses online spaces as a means to terrorize or abuse others.”
“The facts surrounding the events that took place in this case are very disturbing,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “It is nothing short of miraculous that the victims who endured the vicious attacks from this defendant survived. We will continue to fight to seek justice for victims who suffer at the hands of defendants such as this.”
The statutory maximum for the kidnapping offense is life imprisonment. Seneca faces additional exposure under the U.S. Sentencing Guidelines if the sentencing court finds beyond a reasonable doubt that he intentionally selected the victim because of the victim’s actual or perceived gender or sexual orientation. Sentencing is scheduled for January 25, 2023.
Assistant Attorney General Clarke, U.S. Attorney Brown and Special Agent in Charge Douglas A. Williams Jr. for the FBI New Orleans Field Office made the announcement.
The FBI and the Lafayette Police Department conducted the investigation. This case is being prosecuted by Deputy Criminal Chief Myers Namie of the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division.
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La Cañada Flintridge Man Charged in Federal Grand Jury Indictment Alleging Murder-for-Hire Plots Against His Ex-Lawyer and a LitigantRead the Press Release
LOS ANGELES – A federal grand jury today charged a La Cañada Flintridge man who allegedly conspired with a San Fernando Valley resident to hire a hitman to kill two men involved in litigation against him.
Arthur Raffy Aslanian, 53, is charged in a three-count indictment with one count of conspiracy to use interstate commerce facilities in the commission of murder-for-hire. Also facing this charge in the indictment is Sesar Rivera, 40, of North Hollywood, Aslanian’s employee and alleged co-conspirator.
Both defendants were arrested earlier this month on a federal criminal complaint alleging the murder-for-hire plot. Today’s indictment adds an additional charge to each defendant, charging Aslanian and Rivera each with one count of use of interstate commerce facilities in the commission of murder-for-hire.
Aslanian was ordered jailed without bond after his arrest on September 15. His arraignment is scheduled for October 6 in United States District Court in downtown Los Angeles. Rivera made his initial court appearance on September 19 and is free on $20,000 bond. His arraignment is scheduled for October 25.
According to the indictment returned today, in April 2022, Rivera met with an individual and said that a real estate businessman named “Arthur” wanted to pay this individual to kill two people – identified in the indictment as “S.E.” and “M.Y.” – who were involved in litigation against him.
M.Y. was a lawyer who represented Aslanian in a bankruptcy proceeding in which Aslanian had prevailed but then refused to pay approximately $220,000 in legal fees and expenses to M.Y.’s law firm, according to court documents. In early 2022, M.Y.’s law firm filed paperwork to mediate the dispute and prepared to sue Aslanian if the mediation failed.
S.E. had defeated Aslanian in court, after Aslanian tried to take possession of the Brentwood home in which S.E.’s parents lived, court documents state.
In July 2022, Rivera again allegedly met with the individual and said “Arthur” wanted the killing done as soon as possible. Rivera showed the individual information about M.Y. The individual secretly recorded a portion of this July 2022 in-person meeting on his phone and provided a copy of the recording to law enforcement, according to an affidavit filed with the criminal complaint in this case.
Rivera allegedly also promised the individual that Aslanian would pay $20,000 for the murder once Rivera had photographic proof that the murder had been committed.
On August 10, Rivera allegedly again met with the individual and told him to focus on murdering S.E. before murdering M.Y. On August 19, Rivera allegedly used the Facebook Messenger application to send the individual a multi-media message with a screenshot of victim S.E.’s Facebook profile, including S.E.’s picture and business name, to assist the CI in locating and murdering S.E.
Law enforcement contacted and warned M.Y. and S.E. of the murder plots against them, court papers state.
On September 7, law enforcement detained and questioned Rivera, who later agreed to cooperate with them, according to court documents.
Aslanian was arrested shortly after a September 15 meeting in which Rivera showed him a staged murder photograph of S.E.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, each defendant would face a statutory maximum sentence of 20 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Los Angeles Police Department investigated this matter.
Assistant United States Attorneys Kevin B. Reidy and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.
Justice Department Settles Discrimination Claims Against Architect of Pennsylvania Senior Living FacilitiesRead the Press Release
The Justice Department announced that J. Randolph Parry Architects P.C. (Parry) has agreed to settle a federal lawsuit alleging that it violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to design and construct senior living facilities to be accessible to people with disabilities.
Under the consent order that was approved by the U.S. District Court for the Eastern District of Pennsylvania, Parry will pay $350,000 to fund retrofits at eight Pennsylvania properties, $75,000 into a settlement fund to compensate individuals harmed by the inaccessible housing and $25,000 to the government as a civil penalty to vindicate the public interest. The retrofits will, among other things, make the kitchens and bathrooms at these properties more accessible and useable. The department previously resolved its claims against defendant LifeQuest Nursing Center, the developer and owner of one of the properties. The department’s lawsuit against the owners of other properties will continue and is unaffected by these settlements.
“The Justice Department is committed to vigorously enforcing the federal laws guaranteeing people with disabilities equal access to housing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. This settlement should serve as a reminder to architects and developers across the country that they cannot ignore federally-mandated accessibility requirements, including those that apply to housing for seniors.”
The consent order requires Parry to contribute funds toward retrofits and to compensate persons who have been harmed as a result of the inaccessible conditions at these properties:
- Traditions of Hanover, Bethlehem, Pennsylvania
- Chestnut Knoll, Boyertown, Pennsylvania
- Keystone Villa, Douglasville, Pennsylvania
- Arbour Square, Harleysville, Pennsylvania
- Traditions of Hershey, Hershey, Pennsylvania
- The Birches, Newtown, Pennsylvania
- Cedar Views Apartments, Philadelphia, Pennsylvania
- Lifequest Nursing Center Addition, Quakertown, Pennsylvania
Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should send an e-mail to the Justice Department at [email protected] or leave a message at 1-833-591-0291 and select option numbers (1-4-1).
The Justice Department’s Civil Rights Division enforces the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, e-mailing the Justice Department at [email protected], or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Awards $100 Million to Reduce Community ViolenceRead the Press Release
The Department of Justice announced today grant awards totaling $100 million to help communities across the U.S. reduce gun crime and other serious violence. The announcement was made during a visit by Department officials to Baltimore, Maryland, home to three community-based organizations receiving funding under the Department’s Office of Justice Programs (OJP) Community Violence Intervention and Prevention Initiative.
OJP Principal Deputy Assistant Attorney General Amy L. Solomon announced the awards during a roundtable meeting with Baltimore youth hosted by Roca Inc., one of three organizations in the city receiving funding. The grants are jointly administered by OJP’s Bureau of Justice Assistance, Office of Juvenile Justice and Delinquency Prevention and Office for Victims of Crime. OJP’s National Institute of Justice will also support evaluations of projects funded under this initiative, contributing to the growing body of evidence regarding the effectiveness of violence intervention strategies.
“The grants announced today, which will go directly to supporting community violence intervention efforts, are an important part of our strategy to leverage the full force of the Department – including all 94 U.S. Attorney's offices, our law enforcement agencies, and grant-making components – to combat violent crime and keep communities safe,” said Attorney General Merrick B. Garland.
The Black Mental Health Alliance for Education and Consultation Inc., and the Living Classrooms Foundation, Inc., also received grants. BJA Director Karhlton F. Moore and Baltimore Deputy Mayor Anthony Barksdale joined in the announcement, as did Kurt Palermo, Executive Vice President of Maryland Roca; Cheryl Riviere, Program Director of Living Classrooms Foundation; and Andrea Brown, Executive Director of Black Mental Health Alliance Education and Consultation Inc. Kunle Adeyemo, Executive Director of the Governor's Office of Crime Prevention, Youth, and Victim Services, also joined the event. The roundtable was facilitated by Eddie Bocanegra, a veteran of Chicago’s community violence intervention movement and now the Senior Advisor for Community Violence Intervention at OJP.
Based on a Bureau of Justice Statistics analysis of data from the FBI’s Supplementary Homicide Reports, of the more than 21,500 murders known to law enforcement in 2020, more than half—56%—of the victims were between the ages of 15 and 34. Research has shown that social factors such as income inequality, the level of trust in institutions and a lack of economic opportunities are associated with firearm-related homicide rates. Evidence also shows that fear and the desire for physical safety, more than any criminal inclination, drive young people to carry and use firearms in the most violence-torn sections of our cities. Community violence interventions are grounded in research and have shown a promising track record of curbing gun traffic, reducing shootings, and saving lives.
The awards announced today, funded in part through the Bipartisan Safer Communities Act, mark a historic investment in community violence intervention programs from the Department of Justice.
“For too long, we have undervalued the wealth of resources available through community organizations and those with lived experience,” said Principal Deputy Assistant Attorney Solomon. “We know there's a better way, one that builds on what we have learned about violence and its causes. If we hope to achieve sustainable reductions in violence, we must embrace our community assets as a central ingredient in violence reduction strategies.”
The resources made available under the Community Violence Intervention and Prevention Initiative will develop and expand the infrastructure needed to build community safety and strengthen neighborhoods. They will support holistic, cross-agency collaborations, seed new efforts, and fund expansion plans in both community-based organizations and local government agencies, provide funding and assistance through intermediaries to build the capacity of smaller organizations, offer technical aid to jurisdictions that do not receive federal funding and invest in research and evaluation to better understand what works to reduce violence.
Awards are made to the following organizations and agencies:
- Acenda Inc. $1,500,000
- Black Mental Health Alliance for Education & Consultation Inc. $1,497,989
- Connie Rice Institute for Urban Peace $1,500,000
- Community Network Services Inc. $1,450,800
- Centro C.H.A. Inc. $1,500,000
- New Kensington Community Development Corporation $1,500,051
- Nonviolent Peaceforce $1,500,000
- Reclamation & Restoration Ministries $1,498,637
- County of Buncombe $1,496,756
- County of Dekalb $1,500,000
- County of Leon $1,495,663
- City of Tampa $1,500,000
- County of Alameda $1,500,000
- City of Syracuse $1,484,887
- County of Contra Costa $1,500,000
- City of Flint $1,500,000
- Lake County State’s Attorney’s Office $1,500,000
- Building Opportunities for Self-Sufficiency $ 641,050
- Metropolitan Family Services $2,000,000
- Newark Community Street Team Inc. $2,000,000
- The Osborne Association Inc. $2,000,000
- Prevention Education Inc. $1,564,024
- Roca, Inc. $1,998,807
- Circle of Brotherhood $2,000,000
- Alliance of Concerned Men $2,000,000
- Children and Youth Justice Center $2,000,000
- Exodus Transitional Community Inc. $2,000,000
- Getting Out & Staying Out Inc. $2,000,000
- HMH Hospitals Corporation $1,999,403
- Taller Salud Inc. $2,000,000
- The Living Classrooms Foundation, Inc. $1,950,000
- The North Carolina Youth Violence Prevention Center $2,000,000
- City of Baton Rouge $2,000,000
- City of Tucson $2,000,000
- City of Cleveland $1,994,908
- County of Fulton $2,000,000
- City of Greensboro $2,000,000
- City of Hartford $1,999,567
- City of Jacksonville $2,000,000
- City of Kansas City, Missouri $2,000,000
- City of Omaha $1,890,251
- City of Rapid City $2,000,000
- City of Richmond $1,966,278
- City of Los Angeles $2,000,000
- County of Salt Lake $2,000,000
- County of Harris $1,999,715
- Local Initiatives Support Corporation $2,000,000
- Metropolitan Family Services $2,000,000
- Latino Coalition for Community Leadership $2,000,000
- The Community Based Public Safety Collective $3,029,009
Training and Technical Assistance Awards:
- Local Initiatives Support Corporation $1,750,000
- Travelers & Immigrants Aid’s Heartland Alliance for Human Needs & Human Rights $1,750,000
The awards announced above are being made as part of the regular end-of-fiscal year cycle. For more information about grants under the Community Violence Intervention and Prevention Initiative, and for information about other OJP grant awards, please visit 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.
Justice Department Announces Actions to Resolve Lending Discrimination Claims Against Evolve Bank and TrustRead the Press Release
The Justice Department today announced it has secured an agreement to resolve allegations that Evolve Bank & Trust, which is headquartered in Memphis, engaged in lending discrimination on the basis of race, sex and national origin in the pricing of its residential mortgage loans from at least 2014 through 2019.
Evolve Bank maintains mortgage lending offices and provides mortgage lending services in 15 states throughout the country. Under the department’s settlement, which is subject to the approval of the District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected borrowers. Evolve Bank will also pay a $50,000 civil penalty.
“This settlement will provide deserved relief to thousands of borrowers who suffered discrimination due to Evolve Bank’s pricing policies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This case marks the Justice Department’s latest step to protect Americans from illegal lending practices, and shows that we will hold lenders accountable for the effects of their discriminatory practices.”
“This settlement provides some measure of justice to those wronged by Evolve Bank’s discriminatory acts,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I also hope it sends a strong message to banks and other lenders that the Department of Justice won’t stand for unlawful barriers in residential mortgage lending. It’s past time for these practices to stop.”
The department opened its investigation after the Board of Governors of the Federal Reserve System referred the matter. Consistent with federal law, the Board has long referred matters involving potential fair lending violations to the Department of Justice.
According to the complaint, the Justice Department alleges that Evolve Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, sex or national origin in their mortgage lending services. Specifically, the complaint alleges that, from at least 2014 through 2019, Evolve Bank’s loan pricing practices resulted in Black, Hispanic and female borrowers paying more in the “discretionary pricing” components of home loans than white or male borrowers for reasons unrelated to their creditworthiness. “Discretionary pricing” means the parts of a loan price that are left up to Evolve’s loan officers and managers, including fees, charges or rate discounts that don’t relate to the borrowers’ credit qualifications or loan characteristics.
Since being notified of the department’s investigation of this matter, Evolve has taken steps to revise its policies and practices that resulted in Black, Hispanic and female borrowers paying more for home loans than white or male borrowers. During the four-year term of the proposed consent order, Evolve will maintain policies that reduce loan officer discretion, employ a fair lending officer who will work in close consultation with the bank’s leadership and provide fair lending training to its personnel.
The department’s Civil Rights Division has long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race, sex or national origin. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.”
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at the Justice Department webpage. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, or submitting a report online. View the Spanish translation of this press release here.
Justice Department Announces Actions to Resolve Lending Discrimination Claims Against Evolve Bank & Trust Settlement Provides $1.3 Million to Compensate Affected BorrowersRead the Press Release
Memphis, TN – The Justice Department today announced it has secured an agreement to resolve
allegations that Evolve Bank & Trust, which is headquartered in Memphis, engaged in lending
discrimination on the basis of race, sex and national origin in the pricing of its residential
mortgage loans from at least 2014 through 2019.Evolve Bank maintains mortgage lending offices and provides mortgage lending services in 15 states
throughout the country. Under the department’s settlement, which is subject to the approval of the
District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected
borrowers. Evolve Bank will also pay a $50,000 civil penalty.“This settlement will provide deserved relief to thousands of borrowers who suffered discrimination
due to Evolve Bank’s pricing policies,” said Assistant Attorney General Kristen Clarke of the
Justice Department’s Civil Rights Division. “This case marks the Justice Department’s latest step
to protect Americans from illegal lending practices and shows that we will hold lenders accountable
for the effects of their discriminatory practices.”“This settlement provides some measure of justice to those wronged by Evolve Bank’s discriminatory
acts,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I also hope it
sends a strong message to banks and other lenders that the Department of Justice won’t stand for
unlawful barriers in residential mortgage lending. It’s past time for these practices to stop.”The department opened its investigation after the Board of Governors of the Federal Reserve System
referred the matter. Consistent with federal law, the Board has long
referred matters involving potential fair lending violations to the Department of Justice.According to the complaint, the Justice Department alleges that Evolve Bank violated the Fair
Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from
discriminating on the basis of race, sex or national origin in their mortgage lending services.
Specifically, the complaint alleges that, from at least 2014 through 2019, Evolve Bank’s loan
pricing practices resulted in Black, Hispanic, and female borrowers paying more in the
“discretionary pricing” components of home loans than white or male borrowers for reasons
unrelated to their creditworthiness. “Discretionary pricing” means the parts of a loan price that
are left up to Evolve’s loan officers and managers, including fees, charges or rate discounts that
don’t relate to the borrowers’ credit qualifications or loan characteristics.Since being notified of the department’s investigation of this matter, Evolve has taken steps to
revise its policies and practices that resulted in Black, Hispanic and female borrowers paying more
for home loans than white or male borrowers. During the four- year term of the proposed consent
order, Evolve will maintain policies that reduce loan officer discretion, employ a fair lending
officer who will work in close consultation with the bank’s leadership and provide fair lending
training to its personnel.The department’s Civil Rights Division has long been engaged in work that seeks to make mortgage
credit and homeownership accessible to all Americans on the same terms, regardless of race, sex or
national origin. In January 2021, President Biden reaffirmed the critical role of the federal
government in addressing legacies of housing segregation and discrimination, declaring that it is
the policy of this Administration to eliminate “racial bias and other forms of discrimination in
all stages of home-buying and renting.”The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights
Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair
lending enforcement can be found at the Justice Department webpage. Individuals may report lending
discrimination by calling the Justice Department’s Housing Discrimination tip line at
1-833-591-0291 or submitting a report online.
###
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or
[email protected]. Follow @WDTNNews on Twitter for office news and updates.
Janesville Man Sentenced to 10 Years for Receiving Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Mark Spengler, 57, Janesville, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 10 years in federal prison, followed by 15 years of supervised release for receipt of child pornography. Judge Conley also ordered Spengler to pay $47,000 in restitution. Spengler pleaded guilty to this charge on June 7, 2022.
On May 31, 2019, law enforcement officers executed a search warrant at Spengler’s residence. While examining Spengler’s computer equipment, a forensic analyst from the Federal Bureau of Investigation (FBI) found multiple videos showing prepubescent children engaged in sexually explicit conduct. Law enforcement officers also interviewed Spengler, who admitted that he used a file sharing program to search for and obtain child sexual assault material.
In sentencing Spengler, Judge Conley expressed concern for Spengler’s deep rooted sexual attraction to children. Judge Conley also noted that many files found on Spengler’s computer involved violent sexual acts directed towards minors.
The charge against Spengler was the result of an investigation conducted by the FBI. Assistant U.S. Attorneys Elizabeth Altman and Julie Pfluger prosecuted this case.
Iowa Sex Offender Pleads Guilty to Online Harassment of MO TeenRead the Press Release
JEFFERSON CITY, Mo. – A Corydon, Iowa, man pleaded guilty in federal court today to attempting to produce child pornography following his online harassment of a Calloway County, Mo., teenager over five years.
David Jonathon Dodds, 60, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to one count of attempting to produce child pornography. Dodds is a registered sex offender due to his conviction for the exhibition of obscene materials to minors. His sex offense conviction occurred after the conduct in this federal case.
By pleading guilty today, Dodds admitted that he initially contacted the child victim through her Instagram account when she was 13 years old, and continued contacting her through Facebook Messenger and her cell phone until she was 18 years old. Her father contacted the Calloway County Sheriff’s Department in February 2020 to report that his 18-year-old daughter had been the victim of harassment and sexual enticement for several years.
After Dodds contacted the child victim through Instagram, his behavior escalated to messaging her numerous times a day and sending her pornographic images of himself. Dodds also asked her to send nude photographs of herself, and the child victim sent several nude photos of herself in 2015, when she was 14 years old.
The child victim told investigators she became uncomfortable with the ongoing conversations with Dodds and attempted to cut off communications. He became agitated with her and he began threatening to text her parents or friends if she didn’t communicate with him. Dodds messaged her parents and left three voicemail messages on her boyfriend’s phone telling him she had been cheating on both of them. The child victim told investigators she began hiding in photos taken with friends or family that may end up on social media to avoid being seen. She began receiving contact on Facebook Messenger and her cell phone. She turned off her cell phone for durations to avoid any contact.
The child victim reported this continued harassment led to significant anxiety and caused her to quit several jobs. It became apparent that Dodds was monitoring her parents’ public posts on Facebook, harassing her about going to prom or noting how they had been at Wal-Mart looking for her. His behavior caused her to trade cell phones and delete Instagram and Facebook accounts.
The child victim eventually disclosed the harassment to her family, who contacted law enforcement.
Under the terms of today’s plea agreement, the government and Dodds will jointly recommend a sentence of 15 years in federal prison without parole. The sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Boone County, Mo., Sheriff’s Department, and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indianapolis Man Sentenced to 12 Years in Federal Prison After Four Armed Robberies of Victims Lured Using Dating AppRead the Press Release
INDIANAPOLIS – Demetrius Banks, 25, of Indianapolis, was sentenced to 12 years in federal prison after pleading guilty to robbery and brandishing a firearm in furtherance of a crime of violence.
According to court documents, between May 15, 2021, and May 21, 2021, Banks used an online dating application, Grindr, to arrange to meet four different men at their residences. Banks contacted Victim 1 on May 15, 2021, through Grindr and arranged to meet Victim 1 at his apartment in Indianapolis. Shortly thereafter, Banks arrived at Victim 1’s apartment. Victim 1 opened the door and Banks entered the apartment. Victim 1 left Banks in the living room for a few minutes and when he returned Banks brandished a semiautomatic pistol. Banks utilized Victim 1’s cellular telephone to wire himself $500 through an online Cash App account. Banks also stole a television, two laptops, an iWatch, an iPad, and approximately 30 pieces of jewelry. Banks threatened Victim 1 before fleeing in his vehicle. Banks pleaded guilty to the charges pertaining to this robbery.
Banks committed very similar robberies of three additional victims. On May 15, 2021, Banks met Victim 2 at the victim’s apartment, brandished a pistol, and pushed his way into the apartment. Banks demanded money from Victim 2 and stole his cellular telephone.
On May 16, 2021, Banks met Victim 3 at the victim’s residence. Banks wore a mask over the lower portion of his face and brandished a pistol. Banks entered Victim 3’s home, demanded money from him and led him to the bedroom at gunpoint. A struggle over the firearm ensued and during the fight the pistol discharged twice. One round struck the wall and the other hit Victim 3’s television. Banks fled the residence with his firearm. Officers responded to the scene and immediately noticed Victim 3’s injuries. Officers identified at least two bullet holes in Victim 3’s residence and recovered a .380 caliber shell casing.
On May 21, 2021, Banks arranged to meet with Victim 4 at his residence. When Victim 4 answered, Banks brandished a semiautomatic pistol and pushed his way into the residence. Banks ordered Victim 4 at gunpoint to lay face down on the bed. Victim 4 complied while Banks stole his cellular telephone, a laptop, several pieces of jewelry, and Apple AirPods. Banks threatened to kill Victim 4 before leaving the residence.
Law enforcement officers identified Banks as the robber through investigation. Banks was arrested and transported to the Indianapolis Metropolitan Police Department for questioning. Banks admitted to using Grindr to meet Victims 1-4. Banks initially denied he committed the robberies, but later admitted to committing all four.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The FBI investigated the case. The Indianapolis Metropolitan Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Banks be supervised by the U.S. Probation Office for two years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Indianapolis Man Sentenced to 111 Months in Federal Prison for Armed Robbery of a Lebanon AT&T StoreRead the Press Release
INDIANAPOLIS – Javentay Chapman, 21, of Indianapolis, was sentenced to 111 months in federal prison after pleading guilty to robbery and brandishing a firearm in furtherance of a crime of violence.
According to court documents, On February 25, 2021, Chapman and a juvenile male entered the AT&T store located at 1602 N. Lebanon Street in Lebanon, Indiana. Upon entering the store, the two robbers each brandished firearms at the store employee. The employee, with a gun pointed at him, was ordered to open the store’s safe and get on the floor. The robbers grabbed several phones and electronic items from the safe and placed them in a bag. One of the robbers asked the store employee if the phones had trackers on them, to which the employee stated he did not know. The robbers instructed the employee to stay on ground and then fled the business.
At least one of the cellular phones taken by the robbers had a GPS tracking device on it. Law enforcement was able to track the device and officers with the Indianapolis Metropolitan Police Department were able to locate the vehicle driving south on I-65. A traffic stop was initiated near the intersection of Michigan and 38th Streets in Indianapolis. Chapman was one of the vehicle’s occupants.
Located within the vehicle were multiple cellular phones, accessories and the tracking devices that accompanied at least one of the phones. Investigators also located 2 firearms in the vehicle. Surveillance footage obtained from the AT&T store shows Chapman wearing the same clothing he was arrested in during the robbery.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The FBI investigated the case. The Fishers Police Department, Indianapolis Metropolitan Police Department and Lebanon Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Sarah Evans Barker. As part of the sentence, Judge Barker ordered that Chapman be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Indianapolis Man Out on Bond Sentenced to 231 Months in Federal Prison After Robbing OfferUp and Facebook Marketplace Buyers at GunpointRead the Press Release
INDIANAPOLIS – Dujuan Lucas, 22, of Indianapolis, was sentenced to 231 months in federal prison after pleading guilty to two robberies and brandishing a firearm in furtherance of both crimes of violence.
According to court documents, on August 8, 2020, Victim 1 contacted Lucas, who had listed a vehicle for sale under a fictious name, on the internet-based marketplace OfferUp. Victim 1 arranged to meet Lucas at an address on Redskin Lane in Indianapolis and arrived at the location with her three children, Victims 2-4.
Victim 1 texted Lucas when she arrived at the location. The vehicle was not present when Victim 1 arrived. Lucas told Victim 1 that his child’s mother had the vehicle, and that Victim 1 would have to wait. Lucas then pointed a pistol at Victim 1’s head, demanded money and told Victim 1 not to resist. Lucas removed $1,000 in U.S. currency from Victim 1’s person and ran off. The police were contacted, and they soon arrived at the scene to investigate the robbery. Through investigation, officers determined that it was Lucas who placed the advertisement on OfferUp and robbed Victim 1 and her three children at gunpoint.
On August 23, 2020, Victim 5 communicated over Facebook Marketplace with Lucas who had listed an iPhone 11 and several other electronics for sale through the website. Victim 5 arranged to meet Lucas, who was portraying himself as a female, at another address on Redskin Lane. Lucas explained to Victim 5 that it would be her “brother” that would be meeting Victim 5. Later that day, Victim 5 and four friends, Victims 6-9, arrived at the Redskin Lane address and messaged Lucas over Facebook that they had arrived.
Lucas approached Victim 5’s vehicle and Victim 5 exited the vehicle to meet Lucas. Lucas asked to see the money first. The victims showed Lucas the money and Lucas handed a box to Victim 5. While Victim 5 was looking at the box, Lucas grabbed Victim 5 from behind, held a gun against Victim 5’s neck, and demanded cash from the group. Victim 5 gave Lucas money. Lucas ordered Victim 6 to exit the vehicle and demanded all the victims’ cell phones. Victims 6 and 7 gave Lucas their cell phones. All the victims were eventually able to return to their vehicle while Lucas was distracted, and they fled the scene with Lucas running behind them for a short time. The police were called to respond to the robbery. Lucas was identified by police as the perpetrator of this armed robbery also. Lucas was found at a residence on Redskin Lane on September 8, 2020 and was subsequently arrested.
A search warrant was executed at Lucas’s residence. Police recovered a 9mm semiautomatic handgun, two handgun magazines and other items used during the robberies. Lucas admitted that the handgun and magazines belonged to him.
In 2016, Lucas was convicted of armed robbery as a juvenile in Marion County, Indiana. Lucas was out on bond awaiting trial for narcotics charges in Marion County at the time he committed the two marketplace robberies.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The FBI investigated the case. The Indianapolis Metropolitan Police Department provided valuable assistance. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Lucas be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Lawrence D. Hilton and Kathryn E. Olivier who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Hammond Man Sentenced to 57 Months in PrisonRead the Press Release
HAMMOND- Travoy Smith, 40 years old, of Hammond, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Smith was sentenced to 57 months in prison followed by 2 years of supervised release.
According to documents in the case, on February 17, 2021, law enforcement searched Smith’s residence pursuant to a search warrant and recovered a firearm with an extended magazine. Smith’s criminal history revealed he has a prior felony conviction in Lake County, Indiana for dealing in cocaine, and as such, is prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Hammond Police Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
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.
Guatemalan Man Pleads Guilty to Transporting Illegal AliensRead the Press Release
Gulfport, Miss. – A Guatemalan national pled guilty to unlawful transportation of an illegal alien within the United States.
U.S. Attorney Darren J. LaMarca, Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector, and Special Agent in Charge David L. Denton of Homeland Security Investigations made the announcement.
According to court documents, Yobany Macario-Morales, a citizen of Guatemala who had been living in Texas, was stopped on May 1, 2022, on Interstate 10 in Harrison County by a Harrison County Sheriff’s Deputy who is a member of the Harrison County Criminal Interdiction Team. The deputy requested assistance from the U.S. Border Patrol, and agents arrested Macario-Morales and his two passengers, both of whom were citizens of Mexico who were unlawfully present in the United States.
Macario-Morales is scheduled to be sentenced at 1:30 p.m. on Thursday, January 5, 2023, and faces a maximum penalty of 5 years in prison, a $250,000 fine, 3 years of supervised release and $5,100 in special assessments. After completing any prison sentence, he also is subject to Homeland Security proceedings to remove him from the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Guam Resident Sentenced to 70 Months in Federal Prison for Bank Robbery and Failure to Update Sex Offender RegistrationRead the Press Release
Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Vicente Guerrero Perez, age 57, from Guam was sentenced to 70 months in federal prison for Bank Robbery, in violation of 18 U.S.C. § 2113(a), and Failure to Update Sex Offender Registration, in violation of 18 U.S.C. § 2250(a). The Court also ordered five years of supervised release following imprisonment, restitution of $1,560.00, 100 hours of community service, and a mandatory $200.00 special assessment fee.
On August 13, 2021, Perez entered the Dededo branch of the First Hawaiian Bank in Guam. He waited in line and then handed the teller a plastic bag and a note. The note announced a robbery and for the teller to put money in the bag. The teller was terrified and placed approximately $1,560.00 into the plastic bag before returning it to Perez. The teller triggered a silent alarm after Perez left the bank. Perez’ actions were captured on surveillance cameras. Still images from the videos were distributed to the public. FBI agents received a tip identifying Perez. Once agents located Perez, he waived his rights, consented to an interview, and admitted robbing the First Hawaiian Bank.
Perez was also required to register as a sex offender due to a conviction in 1992 for Third Degree Criminal Sexual Conduct. This included updating his registration in person every six months. According to the Guam Sex Offender Registry, he failed to do so since April 2021. Perez previously served 21 months in prison for failing to register.
“The lengthy sentence imposed by the Court demonstrates the seriousness of these crimes,” stated United States Attorney Anderson. “Our communities deserve protection from Perez’s continuing criminal activity. I applaud our law enforcement partners, and the assistance of the public, for bringing him to justice.”
"The FBI is committed to protecting Guam from violent crimes and working with the Guam Police Department on these types of cases," said FBI Special Agent in Charge Steven Merrill. "The FBI also thanks the U.S. Attorney's Office for prosecuting this case at the federal level which has stiffer penalties and no opportunity for parole, especially for someone who is a registered sex offender."
The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.
Guam Drug Dealer Sentenced to 136 Months in Federal Prison for Drug Trafficking, Felon in Possession of Firearm and AmmunitionRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Nathan Earl McCord Borja, age 38, from Guam, was sentenced in the United States District Court of Guam to 136 months imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and Possession of a Firearm and Ammunition by a Convicted Felon, in violation of 18 U.S.C. §§922(g)(1). The Court also ordered five years of supervised release following imprisonment and a mandatory $200 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
In February 2021, Guam Police Department officers received information that the Nathan Earl McCord Borja was selling methamphetamine in Guam. Law enforcement surveilled and arrested Borja as he sold 29.10 grams of methamphetamine to an individual in Tumon. A search of Borja’s vehicle revealed a Rossi revolver, 16 rounds of ammunition, $7,128 in cash, 8.23 grams of methamphetamine in his pocket, and an additional 12.99 grams of methamphetamine hidden in his vehicle. A search of Borja’s phone revealed his participation in a drug distribution conspiracy since 2020. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives noted that the serial numbers on the firearm were obliterated. In addition, Borja had a prior felony conviction that prohibited him from possessing any firearm or ammunition.
“Drugs and firearms are a dangerous combination for community safety,” stated United States Attorney Anderson. “Unfortunately, we often see this in organized criminal activity. These cases are a high priority for our office. Those engaging in this type of crime should expect federal prosecution and stiff sentences.”
“By trafficking drugs and illegally possessing firearms as a convicted felon, Mr. Borja clearly did not learn from his previous actions,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “Hopefully with this sentence he will be able to reflect on the harm he has brought to the people of Guam.”
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.
This was a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Guam Police Department. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Grand Island Man Sentenced for Methamphetamine PossessionRead the Press Release
Acting United States Attorney Steven Russell announced that Michael Eugene West, 39, of Grand Island, Nebraska, was sentenced on September 28, 2022, in federal court in Lincoln, Nebraska, for possession with intent to distribute methamphetamine. United States District Judge John M. Gerrard sentenced West to 112 months’ imprisonment. There is no parole in the federal system. After his release from prison, West will begin a 4-year term of supervised release.
On July 26, 2021, West was driving a vehicle in Grand Island when a police officer attempted to stop him. West continued driving for several blocks before stopping. He was arrested on an outstanding warrant. Later that evening, the police received a phone call from a resident who found a bag of suspected drugs on the sidewalk, which they left there for police to retrieve. During a phone call from the jail, West admitted that he threw the drugs out of the window. The police officer reviewed his cruiser video and also found that, before West stopped his vehicle, a small white item can be seen coming out of the vehicle and hitting the mailbox right where the methamphetamine was found. The substance was sent to the lab for testing where it was confirmed to be 24 grams of actual or pure methamphetamine.
This case was investigated by the Grand Island Police Department and TRIDENT, Tri Cities Drug Enforcement Team.
Fourth Defendant Sentenced in Farmington Tax Fraud ConspiracyRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Thursday ordered the fourth of four defendants involved in a tax fraud conspiracy to pay $26,558 to the IRS.
Tammy Flanagan, 56, was also sentenced to five years of probation.
All four defendants pleaded guilty to a charge of conspiracy to defraud the United States, and admitted participating in a scheme to underreport money paid to contractors who performed work at apartment complexes.
Patricia Jane Tucker, 73, of Fredericktown, was the manager of the MACO Management Company office in Farmington, Missouri, and Flanagan, Robin McWilliams, 53, and Billie McFadden,46, of Fredericktown, were property managers. All were responsible for hiring contractors to work on the properties. They hired their spouses as contractors, then manipulated computer records to prevent the submission of 1099 forms to the IRS that would have reflected the money paid to those contractors.
McWilliams triggered a failure to report about $398,250 in taxable income in 2013 and 2014, resulting in a $124,175 in tax loss to the IRS.
Flanagan failed to report about $41,770 in taxable income in 2013 and $39,640 in 2014, causing a tax loss of $26,558.
McFadden caused the failure to report $28,442 in 2013 and $19,194 in 2014 for a total tax loss of $46,636.
On Sept. 20, Judge White sentenced Robin McWilliams to four years of probation and ordered her to repay $124,175. In July, Patricia Jane Tucker was placed on probation for four years and ordered to repay $357,917. In March, Billie McFadden also received four years of probation and was ordered to repay $47,636.
“Tax evasion is not a victimless crime. When people scheme to evade paying taxes, it’s local communities and honest taxpayers who end up paying,” said IRS-CI Acting Special Agent in Charge, Charles Miller, St. Louis Field Office. “Ms. Flanagan and her co-conspirators knowingly took part in a scheme to cheat the IRS. We take such violations of the nation’s tax laws very seriously.”
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Gwendolyn Carroll prosecuted the case.
Four Individuals Plead Guilty in Multimillion-Dollar Scheme to Defraud U.S. Department of Education Federal Financial Aid ProgramsRead the Press Release
Four individuals pleaded guilty today to conspiring to defraud the Department of Education’s financial aid programs of millions of dollars in federal funds.
According to court documents and statements made in connection with their guilty pleas, Sandra Anderson, 63, of Palmetto, Georgia; Yolanda Thomas, 51, of Columbus, Georgia; Leo Thomas, 56, of Phenix City, Alabama; Kristina Parker, 35, of Stone Mountain, Georgia; and their co-conspirators fraudulently obtained millions of dollars in federal financial aid funds that they misused for their personal benefit. They did so by creating an elaborate sham university – the Columbus, Georgia, satellite campus of the Apex School of Theology.
As part of their guilty pleas, the co-conspirators admitted that, at Anderson’s direction, they enrolled individuals at Apex who agreed to pose as students, knowing that those individuals did not qualify to enroll in college or graduate school. The co-conspirators then fraudulently completed financial aid applications in students’ names and completed students’ homework and exams. The co-conspirators also served as teachers and manipulated student grades to ensure that the purported students could meet the minimum grade requirements to continue to qualify for federal financial aid. Then, the co-conspirators either stole student financial aid refund checks outright or required students to cash their aid checks and provide a portion to the co-conspirators.
Anderson, Yolanda Thomas, and Parker each pleaded guilty to one count of conspiracy to commit wire fraud, five counts of wire fraud, and four counts of financial aid fraud. They each face a maximum penalty of 20 years in prison on each of the conspiracy and wire fraud charges, and five years in prison on each of the financial aid fraud charges. Leo Thomas pleaded guilty to one count of conspiracy to commit wire fraud and faces a maximum penalty of 20 years in prison. All defendants are scheduled to be sentenced on Dec. 15. 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 Peter D. Leary for the Middle District of Georgia; Special Agent in Charge Keri E. Farley of the FBI Atlanta Field Office; Special Agent in Charge Reginald J. France of the Department of Education Office of Inspector General (ED-OIG), Southeastern Regional Office; and Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) made the announcement.
The FBI, ED-OIG, and IRS-CI are investigating the case.
Assistant Chief Leslie S. Garthwaite and Trial Attorneys Matt Kahn, Siji Moore, and Spencer Ryan of the Criminal Division’s Fraud Section are prosecuting the case, with valuable assistance from the U.S. Attorney’s Office for the Middle District of Georgia.
Former youth pastor sentenced to 13+ years for sexual abuse of Missouri teenRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Thursday sentenced a former youth pastor from New York to 13 years and four months in prison for the sexual abuse of a Missouri 15-year-old in 2013.
Judge White also ordered Jesse E. Vargas, 38, to pay $146,594 in restitution to his victim.
Vargas originally met the then 11-year-old girl at a religious camp in Michigan where he worked.
“Over the course of the next four years Jesse played with my family and I like frogs in a pot,” the victim said in court during Thursday’s hearing. “Slowly increasing the temperature of his manipulation until we each were unaware of the water we had been submerged in, let alone its suddenly scalding temperature. By age thirteen I abandoned most of my spiritual leaders and friendships at his suggestion. By fourteen he even guided me to push away my two closest friends,” she said.
In January of 2013, Vargas traveled from New York to the St. Louis area home of the teen. He stayed in her family’s house and preached a sermon at her church. During the visit, he also sexually abused her.
“I was assured by him throughout my formative young teenage years that ‘The World’ wouldn’t understand the illicit affair of ours he was suggesting, but God had provided us a path that we should follow together in secret. Tell no one. Trust no one else,” the victim said.
He returned in March of 2013 and abused her again. In June of that year, he arranged for her to travel to New York, where he abused her again. He exchanged images and videos containing nude images with the teen via social media apps and text messages.
The victim also spoke about the effects of Vargas’ abuse, including PTSD. “As a lifelong honors student with high career hopes entering high school, I instead dropped out because I was simply too exhausted to care about anything.”
Vargas, of Nassau County, pleaded guilty March 22 to two felony counts: travel with the intent to engage in illicit sexual contact and coercion and enticement of a minor.
The case was investigated by the FBI and the Hazelwood Police Department. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
“The way Jesse Vargas used the guise of spiritual instruction is repugnant. He manipulated not only his victim, but the adults who tried to protect her,” said Acting Special Agent in Charge Mark Dargis of the FBI St. Louis Division. “I commend the victim’s bravery for coming forward, in spite of having to relive her trauma, to prevent others from becoming a victim.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Washington state resident indicted for defrauding investors and marijuana businessesRead the Press Release
Seattle – A 42-year-old Las Vegas man, who previously lived in Bellevue, Washington, is facing a 25-count indictment charging him with wire fraud and securities fraud, announced U.S. Attorney Nick Brown. Justin Costello allegedly victimized marijuana business owners, private investors and investors who purchased stock over-the-counter. The Securities and Exchange Commission also filed a civil suit against Costello today.
“Mr. Costello allegedly told many tall tales to convince victims to invest millions of dollars -- money he then used for his own benefit,” said U.S. Attorney Nick Brown. “In a complex scheme involving shell companies, penny stocks, and financial services for marijuana businesses, Mr. Costello used Twitter, press releases, securities filings, and claims of great wealth to paint a picture of fabulous financial success. In truth that picture was a mirage.”
According to the indictment, in 2017 Costello owned and operated a company called Pacific Banking Corp that provided banking services to marijuana businesses in Washington, Colorado, California, Illinois, and Alaska. Between 2019 and 2021, Costello allegedly diverted money from three marijuana business to benefit himself and his companies. The diversions were contrary to the promises he had made to the marijuana businesses. The three marijuana businesses lost about $3.7 million.
As part of his scheme, Costello purchased two companies that were trading for pennies on the over-the-counter market and renamed them GRN Holding Corporation and Hempstract Inc. Costello also recruited investors in these companies, allegedly making numerous false statements about the size and success of his marijuana banking business. Costello told potential private investors several falsehoods – that he had an MBA from Harvard, that he had served in the military and had done two tours in Iraq and had been wounded twice, that he was a billionaire, that he had 14 years of experience on Wall Street and that GRN Funds LLC, a private equity and hedge fund he owned, had over $1 billion in assets under management. None of that is true.
With these falsehoods, Costello convinced various investors across the country to invest in his companies. One deceived couple provided Costello with more than $2 million for shares in companies that he controlled. Additionally, they opened a $4 million TD Ameritrade account at Costello’s direction and provided him with the passwords that allowed him to trade in their account. Costello allegedly used the account to purchase the penny stock of companies he controlled driving up the share price to enrich himself.
Costello used the same lies with other investors and allegedly used investor funds for his own expenses. For example, Costello used at least $42,000 of investor money for personal expenses include costs associated with his wedding. In all, some 29 investors invested directly with Costello and lost $6 million because they relied on Costello’s false representations.
In 2019, Costello’s entity GRN Funds, LLC purchased the outstanding shares of Discovery Gold Corp., changing the name to GRN Holding Corp. In SEC filings about the purchase Costello lied repeatedly about his background, education, and the financial success of the LLC. In various filings with the SEC, and in press releases, Costello lied about GRN Holding Corp’s possible acquisition of other companies and revenue – causing the share price to increase. From December 2019 and into January and February 2020, Costello directed others to issue ten press releases about acquiring other companies. None of the acquisitions occurred even though Costello controlled these other companies. Between July 2019 and May 2021, 7,500 investors lost about $25 million after purchasing and selling GRN Holding Corp stock.
Finally, between October 2019, and January 2021, Costello hired an unindicted coconspirator to use Twitter in a pump and dump stock scheme. Costello would acquire the penny stock of a company and then instruct his prolific Twitter user to tweet falsehoods about the company that would drive up the stock price. The coconspirator would tweet about the stock as often as 90 times a day. In one instance Costello didn’t just use Twitter, he also instructed some of his “investors” to purchase stock in the company, driving the share price from a nickel to $2 per share. After driving the share price up, Costello sold the shares for a profit of more than $355,000. The prolific Twitter user was given a share of Costello’s profits from the pump and dump scheme. In all Costello made $576,466 in the pump and dump scheme.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Wire fraud is punishable by up to 20 years in prison and fine of $250,000 or twice the gain the Costello or the loss to the victims of his offenses. Securities Fraud is punishable by up to 20 years in prison and a $5,000,000 fine.
The case was investigated by the FBI. If you have information, or believe you were a victim in this fraud, please email: [email protected].
The SEC conducted their own separate investigation.
The case is being prosecuted by Assistant United States Attorney Justin Arnold and Michael Dion.
costello_indictment.pdfFormer Olanta Resident Pleads Guilty to Drug Trafficking and Guns Possession ChargesRead the Press Release
PITTSBURGH, PA – A former resident of Olanta, Pennsylvania pleaded guilty in federal court to violation of federal narcotics and firearms laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Brent Shaffer, age 38, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and one count of possession of a firearm by a convicted felon before United States District Judge Christy Criswell Wiegand. Shaffer was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Shaffer received parcels that were shipped from California to the Western District of California containing a total of between 1.5 kilograms and 5 kilograms of methamphetamine. Investigators searched Shaffer’s residence on August 31, 2021, pursuant to a federal search warrant and seized over 200 grams of methamphetamine and three firearms.
Judge Wiegand scheduled sentencing for Shaffer on February 7, 2023, at 10:00 a.m. The law provides for a sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain detained pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services,
Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former NSA Employee Arrested on Espionage-Related ChargesRead the Press Release
DENVER – A Colorado Springs man will make his initial appearance in federal court today on charges that he attempted to transmit classified National Defense Information (NDI) to a representative of a foreign government.
Jareh Sebastian Dalke, 30, was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer from June 6, 2022, to July 1, 2022. According to the affidavit in support of the criminal complaint, between August and September 2022, Dalke used an encrypted email account to transmit excerpts of three classified documents he had obtained during his employment to an individual Dalke believed to be working for a foreign government. In actuality, that person was an undercover FBI agent. Dalke subsequently arranged to transfer additional classified information in his possession to the undercover FBI agent at a location in Denver, Colorado. The FBI arrested Dalke on Sept. 28, after Dalke arrived at the specified location.
According to the affidavit in support of the criminal complaint, Dalke began communicating on or about July 29, 2022, via encrypted email with an individual he believed to be associated with a foreign government. Dalke told that individual that he had taken highly sensitive information relating to foreign targeting of U.S. systems, and information on U.S. cyber operations, among other topics. Dalke represented to the undercover FBI agent that he was still employed by the U.S. government but said he was on a temporary assignment at a field location. Dalke requested compensation via a specific type of cryptocurrency in exchange for the information he possessed and stated that he was in financial need.
To prove he had access to sensitive information, Dalke transmitted excerpts of three classified documents to the undercover FBI agent. Each excerpt contained classification markings. One excerpt was classified at the Secret level, and two excerpts were classified at the Top Secret level. In return for this information, the FBI undercover agent provided the requested cryptocurrency to an address Dalke provided.
On or about Aug. 26, 2022, Dalke requested $85,000 in return for additional information in his possession. Dalke also told the FBI undercover that he would share additional information in the future, once he returned to the Washington, D.C., area. Although he was not employed by the NSA while communicating with the FBI, Dalke re-applied to the NSA in August 2022.
Dalke agreed to transmit additional information using a secure connection set up by the FBI at a public location in Denver. On Sept. 28, at that location, the FBI arrested Dalke based on a signed criminal complaint.
Dalke is charged by criminal complaint alleging three violations of the Espionage Act, which makes it a crime to transmit or attempt to transmit NDI to a representative of a foreign nation with intent or reason to believe that information could be used to the injury of the United States or to the advantage of a foreign nation. The Espionage Act carries a potential sentence of death or any term of years up to life.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Cole Finegan for the District of Colorado; and Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division made the announcement.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler of the District of Colorado, and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting on behalf of the government. The case is being investigated by the FBI Denver Field Office and the FBI Washington Field Office.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former NSA Employee Arrested on Espionage-Related ChargesRead the Press Release
A Colorado Springs man will make his initial appearance in federal court today on charges that he attempted to transmit classified National Defense Information (NDI) to a representative of a foreign government.
Jareh Sebastian Dalke, 30, was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer from June 6, 2022, to July 1, 2022. According to the affidavit in support of the criminal complaint, between August and September 2022, Dalke used an encrypted email account to transmit excerpts of three classified documents he had obtained during his employment to an individual Dalke believed to be working for a foreign government. In actuality, that person was an undercover FBI agent. Dalke subsequently arranged to transfer additional classified information in his possession to the undercover FBI agent at a location in Denver, Colorado. The FBI arrested Dalke on Sept. 28, after Dalke arrived at the specified location.
According to the affidavit in support of the criminal complaint, Dalke began communicating on or about July 29, 2022, via encrypted email with an individual he believed to be associated with a foreign government. Dalke told that individual that he had taken highly sensitive information relating to foreign targeting of U.S. systems and information on U.S. cyber operations, among other topics. Dalke represented to the undercover FBI agent that he was still employed by the U.S. government but said he was on a temporary assignment at a field location. Dalke requested compensation via a specific type of cryptocurrency in exchange for the information he possessed and stated that he was in financial need.
To prove he had access to sensitive information, Dalke transmitted excerpts of three classified documents to the undercover FBI agent. Each excerpt contained classification markings. One excerpt was classified at the Secret level, and two excerpts were classified at the Top Secret level. In return for this information, the FBI undercover agent provided the requested cryptocurrency to an address Dalke provided.
On or about Aug. 26, 2022, Dalke requested $85,000 in return for additional information in his possession. Dalke also told the FBI undercover agent that he would share additional information in the future, once he returned to the Washington, D.C., area. Although he was not employed by the NSA while communicating with the FBI, Dalke re-applied to the NSA in August 2022.
Dalke agreed to transmit additional information using a secure connection set up by the FBI at a public location in Denver. On Sept. 28, at that location, the FBI arrested Dalke based on a signed criminal complaint.
Dalke is charged by criminal complaint alleging three violations of the Espionage Act, which makes it a crime to transmit or attempt to transmit NDI to a representative of a foreign nation with intent or reason to believe that information could be used to the injury of the United States or to the advantage of a foreign nation. The Espionage Act carries a potential sentence of death or any term of years up to life.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Cole Finegan for the District of Colorado; Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office and Acting Special Agent in Charge Cheryl Mimura of the FBI Denver Field Office made the announcement.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler for the District of Colorado, and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting on behalf of the government. The case is being investigated by the FBI Denver Field Office and the FBI Washington Field Office.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Missouri Health Care Charity Executives Plead Guilty to Multimillion-Dollar Bribery and Embezzlement SchemeRead the Press Release
Two former executives of a Springfield, Missouri-based charity pleaded guilty yesterday to their roles in a multimillion-dollar public corruption scheme that involved embezzlement and bribes paid to multiple elected public officials in the state of Arkansas.
According to court documents, Bontiea Bernedette Goss, 63, and her husband, Tommy “Tom” Ray Goss, 66, were high-level executives at Preferred Family Healthcare Inc., a charity that provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma, and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. In exchange for the bribes and kickbacks offered and paid by the Gosses and other co-conspirators, elected state officials in Arkansas provided favorable legislative and official action for the charity, including, but not limited to, directing funds from the state’s General Improvement Fund (GIF).
Under the terms of their respective plea agreements, the Gosses must forfeit to the government up to $4.3 million as determined by the court at their sentencing.
Bontiea Goss pleaded guilty to conspiracy to pay bribes and kickbacks to elected public officials in Arkansas. Tom Goss pleaded guilty to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return. Bontiea Goss faces up to five years in federal prison without parole. Tom Goss faces up to eight years in federal prison without parole. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Earlier this year, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, which acknowledges the criminal conduct of its former officers and employees.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction, federal investigation including the following:
- Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison without parole after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Senator Jeremy Hutchinson, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit federal program bribery.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV pleaded guilty to conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; and Assistant U.S. Attorney Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases.
IRS Criminal Investigation, FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC) investigated the cases.
This is a combined prosecution with the Criminal Division’s Public Integrity Section, the Western District of Missouri, the Eastern District of Arkansas, and the Western District of Arkansas.
Former FIFA Official Sentenced to 16 Months in Prison for Accepting Hundreds of Thousands of Dollars in BribesRead the Press Release
Earlier today, in federal court in Brooklyn, Reynaldo Vasquez, the former president of the El Salvadorean soccer federation (“the Federation”) was sentenced by United States District Judge Pamela K. Chen to 16 months’ imprisonment in connection with over $350,000 in bribes that he and other soccer officials from El Salvador received from an American company in exchange for the sale of broadcast rights to the El Salvador soccer team’s World Cup qualifier and friendly matches. Vasquez pleaded guilty to racketeering conspiracy in August 2021. The defendant was indicted in November 2015 and extradited to the United States from El Salvador in 2021. As part of his plea agreement, Vasquez had previously agreed to forfeit $360,000 to the government.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant and his co-conspirators, motivated by greed, disgraced themselves by lining their pockets with hundreds of thousands of dollars in bribes, at the expense of a beautiful sport, El Salvador’s soccer federation, and the community it served,” stated United States Attorney Peace. “Vasquez has now been held to account, like the many other corrupt soccer officials who have been exposed by the government’s investigation.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office (FBI), and the Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), for their exceptional investigative work, and the Department of Justice’s Office of International Affairs for its assistance with extradition of the defendant in this matter.
From approximately 2009 through 2011, Vasquez served as the President of the Federación Salvadoreña de Fútbol. Vasquez and his co-conspirators participated in and corrupted an enterprise comprising soccer organizing bodies and sports marketing companies. As part of his association with that enterprise, Vasquez and others solicited and received bribes and kickbacks in exchange for awarding lucrative media and marketing contracts. In 2012, Vasquez, together with other current and former officials of the federation, received approximately $350,000 in bribes in connection with the sale of media and marketing rights to El Salvador World Cup qualifying matches to be played in advance of the 2018 World Cup. This bribe payment was wired from a sports marketing company’s bank account in the United States. Vasquez ultimately received a portion of his bribe money through a wire transfer sent through the United States. In 2014 and 2015, Vasquez and others agreed to receive tens of thousands of dollars in bribes in connection with the participation of the Salvadorean national team in friendly matches to be played in the United States.
The sentence announced today is part of a long-running investigation into corruption in international soccer led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. To date, the prosecution has resulted in 27 individual guilty pleas, 4 corporate guilty pleas, and 2 convictions at trial, among other resolutions. The prosecutors in Brooklyn have received considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Money Laundering and Asset Recovery Section, and the Fraud Section, as well as from INTERPOL Washington, and various foreign governments.
Assistant United States Attorneys Kaitlin T. Farrell, Victor Zapana, Eric Silverberg, and Brian D. Morris are in charge of the prosecution.
The Defendant:
REYNALDO VASQUEZ
Age: 66
El SalvadorE.D.N.Y. Docket No. 15-CR-252 (PKC)
Former DSP Trooper Pleads Guilty to Civil Rights ViolationRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Jamal Merrell, 32, of Newark, pled guilty in federal court today after an FBI investigation revealed that Merrell, under the ruse of conducting an active fraud investigation, stole various electronic items from an international reshipping company in New Castle. Chief Magistrate Judge Mary Pat Thynge accepted the plea.
According to court documents, Merrell, a former Delaware State Police trooper, pleaded guilty to Deprivation of Rights Under Color of Law and faces a maximum penalty of 1 year in prison when sentenced on January 5, 2023. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss commented on the plea, “The defendant betrayed the public trust for personal gain. His conduct undermines the honorable law enforcement officers who protect and serve our communities every day. I commend the Delaware State Police Internal Investigations Unit for their cooperation with the FBI during this investigation.”
“Every Trooper within the Delaware State Police takes an oath to faithfully serve and protect the citizens of this great state. We are an organization that recognizes while fulfilling our sacred mission to protect and serve the public, we must also hold our own members accountable for any actions that jeopardize public trust,” said Delaware State Police Superintendent Colonel Melissa Zebley. The Delaware State Police consistently responds to and investigates all complaints of misconduct. Since the onset of this federal investigation, the Delaware State Police has worked in partnership with federal investigators. We would like to thank the community for their continued trust and patience as this investigation unfolded. We will continue to provide the professional, competent, and compassionate law enforcement services that our communities deserve.”
"Today’s guilty plea represents FBI's commitment to investigating these cases" stated Baltimore FBI Special Agent in Charge, Thomas J. Sobocinski. "Our partnership, shared expertise, intelligence, and investigative practices will help dissuade police misconduct more effectively and reinforce public confidence in the great work done by our law enforcement officers."
The FBI and the Delaware State Police Internal Investigations Unit investigated the case. Assistant U.S. Attorney Kevin P. Pierce is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
Folsom Man Sentenced to a Year in Prison for Making False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. — Zarko Danilov, 67, of Folsom, was sentenced today to 12 months and one day in prison for two counts of making and subscribing a false tax return, U.S. Attorney Phillip A. Talbert announced. Danilov was also ordered to pay a $10,000 fine and $283,359 in restitution.
According to court documents, Danilov owned and operated a dental laboratory business called Danilov’s Dental Lab. Danilov hid the true amount of gross receipts received from his business from his tax return preparers. For the tax years 2015 and 2016, Danilov failed to provide his return preparer the bank statements for one additional business bank account and one personal bank account. For the tax year 2017, Danilov failed to provide his return preparer the bank statements for that same business bank account and a different personal bank account. During a civil audit by the IRS, Danilov lied to a tax examiner about only having one bank account for business and personal matters. On May 19, 2022, Danilov pleaded guilty to two counts of making and subscribing a false tax return.
In total, Danilov’s income for tax years 2015, 2016, and 2017 was underreported by at least $1,271,694. The total amount lost by the IRS as a result of defendant’s criminal conduct for those tax years was approximately $283,359, which is the amount of restitution ordered.
This case was the product of an investigation by the IRS-Criminal Investigation. Assistant U.S. Attorney Denise N. Yasinow prosecuted the case.
Five "New Aryan Empire" Associates Sentenced to PrisonRead the Press Release
LITTLE ROCK—Five defendants were sentenced yesterday for their involvement in crimes carried out on behalf of a white supremacist gang. Each defendant previously pleaded guilty to various crimes associated with the New Aryan Empire (NAE), a white supremacist organization that began as a prison gang and functioned as a drug trafficking organization.
Russell Robinson, 35, of Dover, Arkansas, was sentenced to 204 months imprisonment for kidnapping in aid of racketeering, assault with a dangerous weapon in aid of racketeering, and maiming in aid of racketeering. The remaining four defendants were sentenced for conspiracy to distribute and possess with intent to distribute methamphetamine: Jeffrey Howell, 38, of Russellville, was sentenced to 188 months imprisonment, Richard Hampton, 42, of Pottsville, and Tiffany Parker, 42, of Russellville, were both sentenced to 96 months imprisonment, and April Teeter, 40, of Russellville, was sentenced to 90 months imprisonment. In addition to prison time, United States District Judge Brian S. Miller also sentenced each defendant to five years of supervised release following their terms of imprisonment.
The investigation began in 2016, when local and federal agencies initiated a joint investigation to identify, infiltrate, and dismantle drug trafficking organizations in Russellville. Agents identified multiple individuals who were trafficking methamphetamine in the Pope County area.
In June 2017, NAE members and associates kidnapped two individuals that they suspected of cooperating with law enforcement, which violated the rules of NAE. One victim was held against their will and subsequently beaten and stabbed multiple times. While the victim was held to the ground, another NAE member heated a knife with a torch and burned the victim’s cheek, leading to permanent disfigurement. Another victim was kidnapped at the same time and restrained and repeatedly beaten.
The overall indictment in this case charged more than 50 people from the Pope County area with violations of the Racketeer Influenced and Corrupt Organizations Act, Violent Crimes in Aid of Racketeering, and numerous gun and drug violations. The case is named “To The Dirt,” a reference to the NAE slogan referring to the rule that members must remain in the NAE until they die. The charges allege acts involving attempted murder, kidnapping, maiming, and conspiracy to distribute methamphetamine. Of the 55 total defendants charged in “Operation ‘To The Dirt,’” 53 defendants have pleaded guilty, 1 defendant was found guilty at trial, and 35 of those defendants have already been sentenced to prison terms: Courtney Talley 94 months; Corey A. Ford 45 months, Henri T. Keener, II 84 months, Jared Dale, 84 months; Britanny Conner, 120 months; Keith Savage, 120 months; Joseph Pridmore, 150 months; Daniel Adame, 262 months; Justin Howell, 155 months; James George, 70 months; Amos Adame, 121 months; and Skippy Don Sanders, 262 months; Andrew Syverson 151 months; Amanda Rapp 262 months; Jayme Short 90 months; Cory S. Donnelly 188 months; Wesley Pierson 120 months; Ralph Ross 36 months; Jeffrey L. Knox 180 months; Robert Chandler 65 months; Timothy Ferguson 180 months; Paula S. Enos 180 months; Heath Kizer 96 months; Christopher S. Helms 102 months; David D. Singleton 131 months; Kathrine R. Ross 60 months BOP; Courtney Talley 94 months; Corey A. Ford 45 months; Henri T. Keener, II 84 months; April Howell 198 months; Kevin M. Long 369 months; James Scott Oliver 327 months; and Wesley S. Gullett 420 months. The remaining defendant, Troy L. Loadholt, remains a fugitive.
The investigation was conducted by ATF, DEA, the United States Postal Inspection Service, the Pope County Sheriff’s Office, Fifth Judicial Drug Task Force, and the Russellville Police Department, with assistance from the FBI.
# # #
This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Federal Way, Washington man indicted for gun and drug crimesRead the Press Release
Seattle – A 31-year-old Federal Way, Washington resident was arrested this morning in Fife, Washington, following his indictment for possessing a controlled substance with intent to distribute, and possessing a firearm in furtherance of drug trafficking, announced U.S. Attorney Nick Brown. Donald “DJ” Watters came to the attention of Federal Way Police after they were called to the scene of a fatal shooting at an apartment complex on November 19, 2021. Watters appeared today and entered pleas of “Not Guilty.” He remains detained pending trial scheduled for December 5, 2022.
According to police reports at the time of the shooting, the shooting victim and others had gone to the apartment Watters shared with his girlfriend to purchase drugs. The shooting occurred in the parking lot of the apartment complex. After the shooting, investigators located drugs and guns in Watters’ apartment. The indictment charges Watters with possessing distribution amounts of methamphetamine and possession of a black Sig Sauer 9mm handgun, in furtherance of a drug trafficking crime.
Due to the drug quantities involved Watters faces a mandatory minimum five years in prison and up to 40 years in prison for possession of methamphetamine with intent to distribute. Possessing a firearm in furtherance of a drug trafficking crime is punishable by a mandatory minimum five years in prison to run consecutive to any other sentence imposed.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Federal Way Police Department and the FBI.
The case is being prosecuted by Assistant United States Attorneys William Dreher.
Federal Jury Convicts Man of Assaulting his Stepson with a MacheteRead the Press Release
A federal jury convicted a Bristow man of a May 21, 2022, machete attack on his adult stepson, which ultimately led to the loss of the victim’s right eye, announced U.S. Attorney Clint Johnson.
Millard Ray Laskey, 52, was found guilty Wednesday of Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country.
“Millard Laskey’s antagonistic behavior and harassment of the victim eventually led to a vicious attack ending with the loss of the victim’s eye,” said U.S. Attorney Clint Johnson. “I would like to thank the jury for fulfilling their civic duty this week in federal court and for holding Mr. Laskey accountable for his violent acts.”
Laskey’s relationship with his stepson had deteriorated through the years. The victim moved out to distance himself from Laskey, but he eventually moved into a family member’s apartment in Bristow—the same town where Laskey lived. Tensions between the two flared when Laskey made visits to the apartment.
Leading up to the assault, the defendant committed a series of antagonistic actions against his stepson. The victim had been sleeping on a couch with a pull-out mattress in the apartment. First, Laskey removed the couch from the apartment and placed it in his pickup truck so the victim would have nowhere to sleep. The victim responded by pulling the mattress from the couch and returning it to the apartment to sleep on it.
Then, in the early morning of May 21, 2022, Laskey woke the victim by pouring a hot sauce mixture in the victim’s eyes then threw water on him before driving away. In response, the victim punctured the defendant’s tire when Laskey returned to the neighborhood later that day.
When Laskey discovered the flat tire, he stormed into the apartment with a 12-inch machete. Laskey then seized a wireless Bluetooth speaker from the living room, located the victim in the bathroom, opened the bathroom door, and hurled the speaker at the victim’s face, striking him. The victim grabbed improvised metal knuckles in one hand in an attempt to defend himself when Laskey struck the victim multiple times with the machete. One blow struck the victim’s arm, cutting to the bone. A second blow struck the victim’s right eye and the bridge of his nose.
Soon after, first responders arrived. The victim was transported by ambulance to a hospital for care, where it was determined that he had suffered a globe rupture of the right eye. Despite efforts by a surgeon to save the eye, it was ultimately amputated.
In closing statements, the defense argued the Bluetooth speaker had not been hurled at the defendant and that the Laskey was only trying to defend himself with the machete in the bathroom because the victim confronted him with the improvised metal knuckles.
Federal prosecutors called the ongoing dispute and attack tragic and unnecessary. They reminded the Court that a family member recognized that Laskey was erratic the day of the incident and asked him to leave, knowing the argument had dramatically escalated. Prosecutors stated that the defendant, a kickboxer trainer who outweighed the victim by 90 pounds, was the aggressor—that he was armed with the machete when he cornered the victim in the bathroom, hurled the Bluetooth at him, and violently chopped the victim in the arm and face. Ultimately, they stated, Laskey took an eye for a tire.
The FBI, Bristow Police Department, and Muscogee Nation Lighthorse Tribal Police Department conducted the investigation. Assistant U.S. Attorneys George Jiang and Ryan H. Heatherman are prosecuting the case.
FCI Dublin Correctional Officer Faces Sexual Abuse Charges Against Two Additional Incarcerated VictimsRead the Press Release
OAKLAND–A grand jury handed down a superseding indictment today charging former FCI Dublin correctional officer John Russell Bellhouse with sexual abuse charges against two additional female inmates.
“The additional charges unsealed today demonstrate the priority the Department of Justice has placed on prosecuting cases of sexual misconduct by Bureau of Prison employees,” said Deputy Attorney General Lisa O. Monaco. “We have no tolerance for correction officers who betray the trust placed in them to safely and humanely care for those in their custody.”
“Individuals incarcerated in federal prison should never experience sexual abuse, and particularly not at the hands of correctional officers charged with maintaining safety and order within the institution’s walls,” said United States Attorney Stephanie M. Hinds. “The security of inmates is a vital priority within our prison system. This office will continue to pursue allegations of correctional officers abusing inmates and will seek accountability for those who engage in such conduct.”
“The safety, security, and integrity of federal prisons are of the utmost importance, and the Department of Justice Office of the Inspector General will continue to aggressively pursue allegations of abuse at FCI Dublin and across the BOP,” said Inspector General Michael E. Horowitz.
“The defendant had a fundamental responsibility to care for the welfare of inmates in his custody and maintain the good order of FCI Dublin,” said FBI San Francisco Special Agent in Charge Robert K. Tripp. “The additional charges allege the defendant did neither, but instead abused his powers and took advantage of the women for whose care he was responsible. Investigation of violations of the public trust, regardless of the status of the victims, will remain among the highest priorities of the FBI.”
The grand jury originally charged Bellhouse, 39, formerly of Pleasanton, California, on February 17, 2022, in an indictment that alleged Bellhouse committed sexual abuse against a female prison ward identified only as “Victim 1.” Bellhouse was employed as a correctional officer at the Federal Correctional Institute Dublin (FCI Dublin), an all-female correctional institution in Alameda County that houses federal prisoners and is operated by the Federal Bureau of Prisons (BOP). Victim 1 was an inmate at FCI Dublin and under the custodial authority of Bellhouse. The sexual abuse is alleged to have occurred between February and October 2020.
Today the grand jury handed down additional charges against Bellhouse in a superseding indictment. The superseding indictment expanded the charges against Bellhouse to a total of three sexual assault charges involving Victim 1. Two charges allege Bellhouse sexually abused Victim 1 and a third alleges Bellhouse engaged in abusive sexual contact with Victim 1. All three incidents occurred before October 2020, with two occurring as early as February 2020 and the third as early as December 2019. All three incidents are alleged to have occurred within FCI Dublin Prison Safety facilities.
The superseding indictment further added three additional charges that Bellhouse sexually abused two other female victims identified as “Victim 2” and “Victim 3.” Both Victims 2 and 3 are described as inmates serving their prison sentences at FCI Dublin at the time of the sexual abuse and were also under the custodial supervision of Bellhouse. The superseding indictment charges two counts of abusive sexual contact by Bellhouse against Victim 2. One of these contacts is alleged to have occurred between October and December 2020 and the other on October 22, 2020. The superseding indictment also charges one count of sexual abusive contact by Bellhouse against Victim 3 between May and December 2020. All of the charged acts involving Victim 2 and Victim 3 are alleged to have occurred in the FCI Dublin Camp Safety Office.
Bellhouse is next scheduled for a court appearance on October 13, 2022, in U.S. District Court in Oakland before United States District Judge Yvonne Gonzalez Rogers. A jury trial is currently set for June 5, 2023, in United States District Court in Oakland.
Bellhouse is charged in the superseding indictment with two counts of sexual abuse of a ward in violation of 18 U.S.C. § 2243(b). For each charge, Bellhouse faces a maximum statutory sentence of 15 years imprisonment, a minimum five year term of supervision following release from prison, and a $250,000 fine. He is also charged with four counts of sexually abusive contact in violation of 18 U.S.C. § 2244(a)(4). If convicted of the charge, Bellhouse faces a maximum statutory sentence of 2 years imprisonment, a minimum five term of supervised release, and a $250,000 fine. However, any sentence following a conviction would be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The charges contained in the superseding indictment are allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
Assistant U.S. Attorneys Molly K. Priedeman and Andrew Paulson are prosecuting the case with the assistance of Leeya Kekona. The prosecution is the result of an investigation by the Department of Justice Office of the Inspector General and the Federal Bureau of Investigation.
FCI Dublin Correctional Officer Faces Abuse Charges Against Two Additional Incarcerated VictimsRead the Press Release
A federal grand jury in Oakland, California, returned a superseding indictment today charging a former California correctional officer with sexual abuse charges against two female inmates.
John Russell Bellhouse, 39, formerly of Pleasanton, California, was originally charged by criminal complaint on Nov. 30, 2021, one count of sexual abuse of a prison ward.
“The additional charges unsealed today demonstrate the priority the Department of Justice has placed on prosecuting cases of sexual misconduct by Bureau of Prison employees,” said Deputy Attorney General Lisa O. Monaco. “We have no tolerance for correction officers who betray the trust placed in them to safely and humanely care for those in their custody.”
“The safety, security and integrity of federal prisons are of the utmost importance, and the Department of Justice Office of the Inspector General will continue to aggressively pursue allegations of abuse at FCI Dublin and across the BOP,” said Inspector General Michael E. Horowitz.
According to the superseding indictment, two charges allege Bellhouse, former correctional officer at an all-female correctional institution in Alameda County that houses federal prisoners and is operated by the Federal Bureau of Prisons, sexually abused Victim 1 and a third charge alleges Bellhouse engaged in abusive sexual contact with Victim 1. All three incidents occurred before October 2020, with two occurring as early as February 2020 and the third as early as December 2019. All three incidents are alleged to have occurred within FCI Dublin Prison Safety facilities.
The superseding indictment further added three additional charges that Bellhouse sexually abused two other female victims identified as “Victim 2” and “Victim 3.” Both Victims 2 and 3 are described as inmates who were serving their prison sentences at FCI Dublin at the time of the sexual abuse and were also under the custodial supervision of Bellhouse. The superseding indictment charges two counts of abusive sexual contact by Bellhouse against Victim 2. One of these contacts is alleged to have occurred between October and December 2020 and the other on Oct. 22, 2020. The superseding indictment also charges one count of sexual abusive contact by Bellhouse against Victim 3 between May and December 2020. All of the charged acts involving Victim 2 and Victim 3 are alleged to have occurred in the FCI Dublin Camp Safety Office.
“Individuals incarcerated in federal prisons should never experience sexual abuse, and particularly not at the hands of correctional officers charged with maintaining safety and order within the institution’s walls,” said U.S. Attorney Stephanie M. Hinds for the Northern District of California. “The security of inmates is a vital priority within our prison system. This office will continue to pursue allegations of correctional officers abusing inmates and will seek accountability for those who engage in such conduct.”
“The defendant had a fundamental responsibility to care for the welfare of inmates in his custody and maintain the good order of FCI Dublin,” said FBI Special Agent in Charge Robert K. Tripp of the San Francisco Field Office. “The additional charges allege the defendant did neither, but instead abused his powers and took advantage of the women for whose care he was responsible. Investigation of violations of the public trust, regardless of the status of the victims, will remain among the highest priorities of the FBI.”
Bellhouse is charged in the superseding indictment with two counts sexual abuse of a ward and four counts of sexually abusive contact. The defendant is scheduled for his initial court appearance on Oct. 13, 2022, and his jury trial is set for June 5, 2023, before U.S. Magistrate Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California. If convicted for sexual abuse, he faces a maximum statutory sentence of 15 years in prison for each count. If convicted for sexual abusive contact, he faces a maximum statutory sentence of two years in prison, a minimum five term of supervised release, and a $250,000 fine for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An investigation was conducted by the Justice Department’s Office of the Inspector General and the FBI. Assistant U.S. Attorneys Molly K. Priedeman and Andrew Paulson Attorney for the Northern District of California are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
El Dorado County Dog Agility Trainer Charged with Sexually Exploiting a Child OverseasRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Terry Francis Le Clair, 64, of Shingle Springs, charging him with sexual exploitation of a child, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Le Clair sexually exploited a minor in his care when in a foreign country in the summer of 2017. Le Clair used the camera on his tablet computer to create photos of the minor victim depicting sexually explicit conduct, which he then brought back to California. While executing a search warrant at Le Clair’s residence, investigators also found video recordings showing various teenagers changing into and out of their swimsuits and showering in Le Clair’s bathroom. Le Clair made these video recordings using hidden cameras he set up in the bathroom.
Anyone who has information related to this case can contact the FBI at 916-746-7000.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Hi-Tech Crimes Task Force, which is part of the Internet Crimes Against Children Task Force. Assistant U.S. Attorney Christina McCall is prosecuting the case.
If convicted, Le Clair faces a minimum of 15 years in prison up to a maximum statutory penalty of 30 years in prison, a $250,000 fine, a minimum of five years and up to a lifetime of supervised release, and restitution. 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. Click on the “resources” tab for information about internet-safety education.
El Departamento de Justicia anuncia acciones para resolver alegaciones de discriminación en el ámbito crediticio contra Evolve Bank and TrustRead the Press Release
El Departamento de Justicia anunció hoy que ha asegurado un acuerdo para resolver alegaciones de que Evolve Bank & Trust, con sede en Memphis, participó en discriminación en al ámbito crediticio sobre la base de la raza, el sexo y el origen nacional al establecer precios para sus precios de hipotecas residenciales, desde al menos el 2014 hasta el 2019.
Evolve Bank mantiene oficinas de préstamos hipotecarios y provee servicios de préstamos hipotecarios en 15 estados alrededor de todo el país. Conforme al acuerdo del Departamento, el cual queda sujeto a la aprobación del Tribunal de Distrito, Evolve Bank establecerá un fondo de conciliación de $1.3 millones para compensar a los prestatarios. Evolve Bank también pagará una multa civil de $50,000.
“Este acuerdo brindará un merecido alivio a miles de prestatarios que sufrieron discriminación debido a las prácticas de precios de Evolve Bank” dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Ese caso marca el más reciente paso del Departamento de Justicia para proteger a los estadounidenses ante prácticas crediticias ilegales, y muestra que responsabilizaremos a los prestamistas por los efectos de sus prácticas discriminatorias”.
“Este acuerdo brinda cierta medida de justicia a aquellos perjudicados por las acciones discriminatorias de Evolve Bank”, dijo el Fiscal Federal Kevin G. Ritz del Distrito Oeste de Tennessee. “También espero que envíe un mensaje firme a los bancos y a otros prestamistas de que el Departamento de Justicia no soportará las barreras ilegales a los préstamos hipotecarios residenciales. Ya es hora de que paren estas prácticas”.
El Departamento inició su investigación después de que la Junta de Gobierno del Sistema de la Reserva Federal refiriera el asunto. En conformidad con las leyes federales, la Junta desde hace tiempo ha referido al Departamento de Justicia los asuntos que implican posibles violaciones de violaciones crediticias.
Según la demanda, el Departamento de Justicia alega que Evolve Bank violó la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito, las cuales prohíben que las instituciones financieras discriminen sobre la base de la raza, el sexo o el origen nacional en sus servicios de préstamos hipotecarios. Específicamente, la demanda alega que, desde al menos el 2014 hasta el 2019, las prácticas de establecimiento de precios de préstamos de Evolve Bank resultaron en que los prestatarios negros, hispanos y femeninos pagaran más por los componentes de “precios discrecionales” de los préstamos hipotecarios que prestatarios blancos o masculinos, por motivos no relacionados con su calificación crediticia. “Precios discrecionales” significa las partes del precio de un préstamo que dependen de los oficiales de préstamo y gerentes de Evolve, incluidos cuotas, cargos o descuentos de la tasa, que no se relacionan con las calificaciones crediticias del prestatario o las características del préstamo.
Desde haber sido notificado de la investigación de este asunto por el Departamento, Evolve ha tomado medidas para revisar sus políticas y prácticas que resultaron en que los prestatarios negros, hispanos y femeninos pagaran más por préstamos hipotecarios que los prestatarios blancos o masculinos. Durante el término de cuatro años de la orden de consentimiento propuesta, Evolve mantendrá políticas que reducirán la discreción de los oficiales de préstamos, empleará a un oficial de crédito justo que trabajará en consulta estrecha con los directivos del banco y brindará capacitación a su personal sobre prácticas de crédito justo.
Desde hace tiempo, la División de Derechos Civiles del Departamento se ha dedicado a un trabajo que busca hacer que el crédito hipotecario y la propiedad de viviendas sea accesible para todos los estadounidenses bajo los mismos términos, independientemente de la raza, el sexo o el origen nacional. En enero de 2021, el Presidente Biden reafirmó el papel crítico del gobierno federal en abordar legados de segregación y discriminación en la vivienda, declarando que la política de su administración es eliminar “los prejuicios raciales y otras formas de discriminación en todas las etapas de la compra y el alquiler de viviendas”.
La Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia hace cumplir las leyes de vivienda justa. Se puede obtener información adicional sobre el cumplimiento del crédito justo en la página web del Departamento de Justicia. Los individuos pueden reportar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea.
Drug Supplier and Distributor for Two Boston-Area Cocaine Trafficking Rings Sentenced to Five Years in PrisonRead the Press Release
BOSTON – The main supplier and drug distributor of two Boston-area drug trafficking organizations (DTO) was sentenced yesterday for his role in a cocaine trafficking conspiracy.
Kenji Drayton, 42, of Boston, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison and four years of supervised release. On April 12, 2022, Drayton pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine.
Drayton was charged with 23 others in June 2020 as part of Operation Snowfall.
According to the charging documents, beginning in November 2018, law enforcement investigated a DTO – for which Drayton was a principal drug supplier – that was comprised of Boston-based street gang members and associates in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the DTO assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs – most of which was cocaine or cocaine base, which the DTO supplied to customers, wholesalers and distributors. The DTO’s destructive activity led to the blight of the Fidelis Way complex and reduced the quality of life of the many law-abiding people who live there.
The second part of the investigation targeted large-scale drug suppliers and their associates. It is alleged that the DTO continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Intercepted communications in spring 2020 revealed Drayton complained about drug supply shortages resulting from the pandemic. On one call, Drayton discussed a co-conspirator’s travels to California to obtain significant quantities of cocaine for the DTO.
Drayton served as one of the main drug suppliers and distributors within each of the identified DTOs. Drayton purchased, sold, and distributed wholesale quantities of cocaine as part of each DTO and is estimated to have distributed a total of over 3.5 kilograms of cocaine.
Drayton is the second defendant to be sentenced in the Fidelis-Way related drug conspiracy, and the 11th defendant to be sentenced in the other charged drug conspiracy case. The remaining defendants are either pending sentencing or have pleaded not guilty and are pending trial. One defendant, Derek Hart, remains at large.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Commissioner Michael Cox made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran of the Organized Crime & Gang Unit 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.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Drug Conspirators Are Sentenced to Prison for Trafficking Fentanyl and MethamphetamineRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jose Francisco Vasquez-Rico, 22, and Andrew Estiben Reyna-Rodriguez, 23, both of Charlotte, were sentenced to 168 months and 51 months in prison, respectively, for trafficking fentanyl and methamphetamine. U.S. District Judge Kenneth D. Bell also ordered the defendants to serve five years of supervised release upon completion of their prison terms.
According to filed court documents and court proceedings, between September 2020 and January 2021, Vasquez-Rico and Reyna-Rodriguez conspired with each other and other individuals to traffic narcotics, including fentanyl and methamphetamine, in Mecklenburg, Gaston, and Cleveland Counties. Court documents and information presented at the sentencing hearing showed that Vasquez-Rico was the head of the local drug ring. Over the course of the investigation, undercover agents posing as customers purchased fentanyl and methamphetamine on multiple occasions from Vasquez-Rico and Reyna-Rodriguez.
According to court documents and information presented at the sentencing hearing, on one occasion, Vasquez-Rico arranged to sell a kilogram of fentanyl to an undercover agent and agreed to meet the undercover agent in Asheville. While Vasquez-Rico and Reyna-Rodriguez were driving to Asheville to deliver the fentanyl, a North Carolina State Highway Patrol trooper conducted a traffic stop of their vehicle. The defendants initially stopped their car, but then sped off soon when the trooper exited his police vehicle. After speeding away, the pair briefly pulled over to the side of a country road and attempted to hide in the woods a bag and a loaded firearm, which law enforcement subsequently recovered.
According to court documents and information presented at the sentencing hearing, on January 8, 2021, Vasquez-Rico lured a courier who worked for another drug trafficker to a parking lot in Charlotte. The courier and his three small children arrived in a vehicle at the agreed-upon location. Vasquez-Rico and another individual proceeded to kidnap the courier and his children, demanding a vehicle and a kilogram press (which is a machine used to form narcotics into kilogram-sized “bricks”) in exchange for their release. Vasquez-Rico released the hostages after he took possession of the vehicle and the kilogram press.
Vasquez-Rico and Reyna-Rodriguez both pleaded guilty to conspiracy to distribute and to possess with intent to distribute fentanyl and methamphetamine, and distribution and possession with intent to distribute methamphetamine. Both defendants are currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, the Charlotte-Mecklenburg Police Department, the Gastonia Police Department, the Gaston County Police Department, the Lincolnton Police Department, and the North Carolina State Highway Patrol for their coordination and investigation of the case.
Assistant United States Attorney Taylor G. Stout, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Doctors to Pay Penalties for Allegedly Violating the Controlled Substances ActRead the Press Release
RICHMOND, Va. – Two physicians have agreed to pay $100,000 in civil penalties for allegedly issuing prescriptions in violation of the Controlled Substances Act.
The government alleged that, between March and July 2016, Dr. Steven Deschner, 67, and Dr. Bonnie Deschner, 67, who formerly practiced in Hanover County, issued five prescriptions for morphine, a Schedule II narcotic, to an undercover Drug Enforcement Administration (DEA) Task Force Officer over the course of four visits to the Deschners’ DeBoss Clinic. The government alleged that the Deschners issued the prescriptions outside the usual course of professional practice in Virginia, and not for a legitimate medical purpose.
The Controlled Substances Act regulates individuals and companies that manufacture, distribute, and dispense controlled substances. The law aims to protect public health and safety from the dangers posed by highly addictive or dangerous controlled substances, including the diversion or improper use of such substances, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the DEA’s Washington Division- Richmond District Office.
The matter was investigated by Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this agreement are allegations only; there has been no admission of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER.
Defendant pleads guilty during trial to conspiring to launder more than $4 million in online romance scam proceeds from United States to GhanaRead the Press Release
COLUMBUS, Ohio – On his third day of trial this week in federal court in Columbus, a Westerville man pleaded guilty to laundering the proceeds of online romance scams for at least two years.
Edward Amankwah, 45, admitted to conspiring to launder nearly $4.3 million through bank accounts in his control.
Amankwah and others were indicted by a federal grand jury in July 2021. Six other defendants charged with money laundering in the case have pleaded guilty and are awaiting sentencing. They are Robert K. Asante, Kwame O. Yeboah, Eric Ahiekpor, Mohamed Toure, Uriah Lamdul and Alexis Wellington. The total amount generated by romance fraud that these individuals laundered was more than $11.8 million.
The romance scams involved individuals who created several profiles on online dating sites. They then contacted men and women throughout the United States and elsewhere, with whom they cultivated a sense of affection, and often, romance.
After establishing relationships, perpetrators of the romance scams requested money, typically for investment or need-based reasons, and provided account information and directions for where money should be sent. In part, these accounts were in the names of Amankwah and the other defendants, their family members and their companies.
Funds were not used for the purposes claimed by the perpetrators of the romance scams. Instead, Amankwah and the other defendants conducted transactions designed to conceal, such as withdrawing cash, transferring funds to other accounts, buying official checks, sending wires to Ghana, China, and the United States, and more. Part of the conspiracy was for the defendants to move the romance fraud proceeds from the United States to Ghana.
Amankwah was not charged with defrauding the victims himself, but instead was charged with laundering the proceeds of the romance fraud.
Trial began on Sept. 26. On the first two days of trial, five victims testified about being defrauded.
As part of the romance fraud scheme, the victims were directed to send money to business bank accounts in the control of Amankwah. For example, one victim was defrauded by a purported member of the military who said he wanted to retire early and needed money to do so. The victim sent two wire transfers totaling $131,400 to Amankwah’s accounts.
Another victim fell in love with a person who claimed he owned a mine in Canada and needed help covering operating expenses. The victim sent $70,000 to one of Amankwah’s accounts.
Yet another victim began an online relationship with a man who claimed to be in the military in Afghanistan and sent four wires totaling more than half a million dollars to bank accounts in the control of Amankwah.
On the morning of the third day of trial, Amankwah pleaded guilty.
The public can report online romance scams and other internet crimes at ic3.gov.
Conspiring to commit money laundering is a federal crime punishable by up to 20 years in prison. As part of his plea, Amankwah has agreed to pay approximately $4.29 million in restitution.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service – Criminal Investigation (IRS-CI), announced the plea entered Sept. 28 before U.S. District Judge Sarah D. Morrison. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly are representing the United States in this case.
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Crown Point Man Sentenced to 24 Months in PrisonRead the Press Release
HAMMOND-Robert McMahon, 32, of Crown Point, Indiana was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to possession of child pornography, announced United States Attorney Clifford D. Johnson.
McMahon was sentenced to 24 months in prison followed by 3 years of supervised release.
According to documents filed in the case, between March 2019, and August 2021, McMahon possessed images of minors engaging in sexually explicit conduct including images of at least one minor under the age of 12.
This case was investigated by the Federal Bureau of Investigation with assistance from the Indiana State Police and the Winnebago County Sheriff’s office in Wisconsin. The case was prosecuted by Assistant United States Attorney Thomas M. McGrath.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
Company Pays $158,760 to Resolve Claims Related to Controlled Substance Thefts from Pharmacies During InventoryRead the Press Release
ALBANY, NEW YORK – RGIS LLC (RGIS) and its affiliated company, Retail Services WIS Corporation (WIS), agreed to pay $158,760 to resolve allegations that they caused violations of the Controlled Substances Act. RGIS and WIS employees were implicated in the theft of controlled substances from pharmacies in upstate New York and throughout the United States. As part of the settlement, RGIS and WIS are changing their policies to require more thorough vetting of employees assigned to inventory pharmacies nationwide.
The announcement was made by Carla B. Freedman, the United States Attorney for the Northern District of New York and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
“This settlement strengthens policies that previously provided opportunities for employees to steal while they inventoried controlled substances,” said United States Attorney Freedman. “We are committed to working with our DEA partners to eliminate sources of drug diversion in our communities.”
“Diversion prevention programs and the Controlled Substance Act are in place to safeguard the public from the perils of drug use and misuse,” said DEA Special Agent in Charge Frank Tarentino. “This is an example of the many investigative capabilities at DEA’s disposal to combat drug overdoses and poisonings, and I applaud our law enforcement partners, especially the U.S. Attorney’s Office Northern District of New York for their partnership and diligent efforts.”
RGIS and WIS provide inventory services to client-retail stores throughout the United States, including retail pharmacies. According to RGIS and WIS policies, only handpicked, high-caliber, well-respected employees are assigned to pharmacy inventory teams and they are required to undergo a drug test and criminal background check. RGIS and WIS maintain a “zero tolerance policy” for theft.
Despite these policies, RGIS and WIS employees were implicated in stealing controlled substances from several pharmacies. For example, in July 2017, an RGIS employee stole Vicodin pills while inventorying a retail pharmacy in Schenectady, New York. RGIS terminated the employee but later rehired him. In 2020, that same employee was implicated in stealing narcotics from three pharmacies in Fort Edward, Saratoga, and Glens Falls, New York. RGIS employees were also implicated in stealing narcotics from pharmacies in Kentucky, North Carolina, and Louisiana. In addition, WIS employees were implicated in stealing narcotics from pharmacies in Dallas, Duncanville, and Little Elm, Texas.
RGIS and WIS agreed to implement additional procedures to ensure the proper vetting of employees assigned to inventory pharmacies, and to make the results of the vetting available to their pharmacy-clients. The pharmacy-clients, as DEA registrants, are ultimately responsible for supervising all personnel on the premises and preventing the diversion of controlled substances.
DEA’s Albany Diversion Group led this investigation with assistance from the Tactical Diversion Squads in Albany, New York; Dallas, Texas; and Charleston, West Virginia. The New York State Police, Glens Falls Police Department, and the Little Elm (Texas) Police Department also provided assistance.
Assistant U.S. Attorney Christopher R. Moran represented the United States in this matter
Charlotte Man Is Sentenced to More Than Four Years in Prison for Bank Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – Dino Crnalic, 36, of Charlotte, was sentenced today to 51 months in prison for a bank and wire fraud scheme that defrauded the U.S. Small Business Administration (SBA) and others of more than $800,000, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn Jr. also ordered Crnalic to pay more than $910,000 as restitution and to serve two years under court supervision after he is released from prison.
According to information contained in filed documents and court proceedings, from July 2017 through November 2019, Crnalic executed multiple fraudulent schemes and obtained more than $800,000 in SBA-backed loans and attempted to obtain an additional loan from federally-insured financial institutions. Crnalic also fraudulently obtained other forms of financing through other entities. Crnalic claimed that the loans would be used to fund various businesses in Charlotte, including a restaurant, Suki Akor, and Surge Fitness Centers, LLC (Surge). Court records show that, to secure the SBA-backed loans and other financing, Crnalic submitted fraudulent loan documents and made various false statements regarding the purpose of the loans and financing and the involvement of other individuals. In reality, Crnalic lied about the involvement of other individuals in the businesses and, rather than using the loans to finance his business ventures, Crnalic used a significant portion of the proceeds to pay for personal expenses, including trips to various casinos.
On April 13, 2021, Crnalic pleaded guilty to two counts of financial institution fraud, concealment money laundering, making a false statement to a bank in connection with a loan, and wire fraud.
In making today’s announcement, U.S. Attorney King credited the Charlotte Division of the FBI and the SBA’s Office of the Inspector General for the investigation of this case.
Assistant U.S. Attorney Daniel Ryan, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Boise Man Sentenced to over 14.5 Years in Prison for Federal Gun and Drug ChargesRead the Press Release
BOISE – A Boise man was sentenced to 175 months in federal prison for possession with intent to distribute methamphetamine and the unlawful possession of a firearm, U.S. Attorney Josh Hurwit announced.
According to court records, on November 12, 2021, law enforcement attempted to conduct a traffic stop on a vehicle driven by Anthony James Wylie, 32, of Boise, for a traffic infraction. Wylie failed to pull over and led law enforcement on a high-speed chase. During the pursuit, Wylie threw a case from his vehicle containing hundreds of fentanyl pills and over $1,500. Wylie abandoned his vehicle and fled on foot. Inside the vehicle, investigators located a .32 caliber handgun. Wylie was eventually located and arrested hiding in a nearby residence. Investigators also recovered over two pounds of methamphetamine that Wylie possessed during the chase.
Wylie has lengthy criminal history that includes convictions for grand theft, possession of a controlled substance, and the unlawful possession of a firearm. Wylie was on federal supervision at the time of the instant offense.
Chief U.S. District Judge David C. Nye also ordered Wylie to serve five years of supervised release following his prison sentence. Wylie pleaded guilty to the charges on July 1, 2022.
U.S. Attorney Hurwit thanked the Drug Enforcement Administration, the Ada County Sheriff’s Office, and the Nampa Police Department for their work on the case.
This case was prosecuted as part of the Department of Justice’s Project Safe Neighborhoods (PSN) program. 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.
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Bloomington Felon Sentenced to 92 Months in Prison for Possession of a FirearmRead the Press Release
PEORIA, Ill. – A Bloomington, Illinois man, Lamel Johnson, 39, of the 600 block of East Walnut Street, has been sentenced to 92 months in prison, to be followed by a three-year term of supervised release, for unlawful possession of a firearm by a convicted felon, namely a Smith & Wesson 9mm.
At the September 28, 2022, sentencing hearing before U.S. District Judge Joe B. McDade, the United States presented evidence that Johnson acted as armed security when Johnson’s associate illegally sold a handgun to another person. Moments after the illegal transaction, law enforcement officers conducted a traffic stop of Johnson. After officers ordered Johnson out of the vehicle, they located a handgun in his waistband that was loaded with a large capacity magazine. Johnson had previously been convicted of numerous felony offenses, including armed robbery and drug trafficking crimes.
Johnson was indicted in January, 2021 and entered a guilty plea in June, 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for possession of a firearm by a felon at the time of Johnson’s offense were up to 10 years’ imprisonment, up to three years of supervised release, and a possible fine of up to $250,000.
The Normal Police Department and the Federal Bureau of Investigations, Springfield Field Office, investigated the case with the assistance of the McLean County State’s Attorney’s Office, McLean County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Illinois State Police Division of Forensic Services. Assistant U.S. Attorney Keith Hollingshead-Cook represented the United States in the prosecution.
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.
Berkeley Brothers Plead Guilty to Selling Fentanyl in San Francisco’s TenderloinRead the Press Release
SAN FRANCISCO –Juan Carlos Hernandez-Ordonez pleaded guilty today in United States District Court to a federal charge of distributing 40 grams or more of fentanyl in San Francisco’s Tenderloin District, announced United States Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Acting Special Agent in Charge Bob P. Beris. David Ordonez, the brother of Hernandez-Ordonez, pleaded guilty in the same case on September 15, 2022, to conspiring with Hernandez-Ordonez to distribute fentanyl and to charges involving distribution of fentanyl and methamphetamine.
In the plea agreement he entered today, Hernandez-Ordonez, 18, admitted to traveling time and again with his older brother David Ordonez, 20, from an apartment they shared in Berkeley to the Tenderloin District of San Francisco to sell narcotics. The Tenderloin contains an open-air illegal drug market which includes the 7th Street and Market Street area. Hernandez-Ordonez described in his plea agreement that on March 9, 2022, he and his brother David Ordonez travelled from their Berkeley apartment to the Tenderloin to sell fentanyl. At approximately 5:30 p.m., a buyer approached him on the southwest corner of 7th Street and Market Street and asked for “yellow.” Hernandez-Ordonez knew yellow as slang for fentanyl, and he sold the buyer just over two grams of fentanyl in exchange for $40 in cash. Unbeknownst to Hernandez-Ordonez, the buyer was an undercover law enforcement agent.
Hernandez-Ordonez further admitted in his plea agreement that on March 29, 2022, he exchanged text messages with the same undercover law enforcement agent and negotiated the sale of 2.5 ounces of fentanyl for $1000. That day, Hernandez-Ordonez again travelled with his brother David Ordonez from their Berkeley apartment to the Tenderloin. Hernandez-Ordonez described in his plea agreement that at about 8:30 p.m. he met with the undercover agent in the Tenderloin’s Stevenson Alley, near 7th Street and Market Street. The undercover agent again asked for yellow. Hernandez-Ordonez walked away to meet his brother and returned with fentanyl. In Stevenson Alley, Hernandez-Ordonez weighed out the drugs on a digital scale and admitted he then sold the undercover agent approximately 59 grams of fentanyl in exchange for $1000 in cash.
Earlier in this case’s proceedings, David Ordonez admitted to the narcotics trafficking charges against him. On September 15, he pleaded guilty to a conspiracy with Hernandez-Ordonez spanning from February 9 through April 19, 2022, to distribute and to possess with the intent to distribute at least 40 grams of fentanyl. David Ordonez also pleaded guilty to two counts of possessing with intent to distribute and distributing at least 40 grams of fentanyl, one count occurring on February 22, 2022, and the other on April 19, 2022. He further pleaded guilty to possessing and distributing at least 50 grams of a substance containing methamphetamine on March 10, 2022.
United States District Judge William H. Orrick scheduled a sentencing hearing for Hernandez-Ordonez on January 12, 2023, at 1:30 p.m. David Ordonez is scheduled for a sentencing hearing before the same judge on December 15, 2022, at 1:30 p.m. Both defendants remain in custody pending their sentencing hearings.
Each count to which Hernandez-Ordonez and David Ordonez pleaded guilty contains both maximum and mandatory minimum penalties. Both Hernandez-Ordonez and David Ordonez pleaded guilty to separate counts of distributing 40 or more grams of fentanyl in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(B)(vi). David Ordonez also pleaded guilty to one count of engaging in a conspiracy to distribute at least 40 grams of fentanyl in violation of 21 U.S.C. § 846 and 21 U.S.C. § 841(a)(1), (b)(1)(B)(vi) and to one count of distributing at least 50 grams of a substance containing methamphetamine in violation of 21 U.S.C. §§ 841(a)(1), (b)(1)(B)(viii). The statutory penalty for each one of these counts is a mandatory minimum of five years imprisonment (absent qualifying for statutory relief from the mandatory minimum) and a maximum of 40 years imprisonment, a maximum fine of $5,000,000, and a minimum of 4 years of supervision following release from prison, with a maximum of life. However, any sentence following a conviction will be imposed by a court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Lauren M. Harding is prosecuting the case with the assistance of Jasmine Sanders and Amala James. The prosecution is the result of an investigation by DEA and the San Francisco Police Department Narcotics Division.
One Pill Can Kill: Beware of pills bought on the street: One Pill Can Kill. Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs, but can be obtained at a lower cost. However, very small variations in the amount or quality of fentanyl creates huge effects on the potency of the counterfeit pills and can easily cause death. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are usually shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, counterfeit pills known as M30s mimic Oxycodone, but when sold on the street they routinely contain fentanyl. These tablets are round and often light blue in color, though they may be made in many colors, and have “M” and “30” imprinted on opposite sides of the pill.