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Thursday 29 September 2022
Beaumont Men Indicted on Federal Violations in Animal Cruelty CaseRead the Press Release
BEAUMONT, Texas – Two Beaumont men have been indicted for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Decorius Mire, 23, and Donaldvan Williams, 28, were named in an indictment returned by a federal grand jury on Sep. 7, 2022, charging them with animal crushing, and aiding and abetting. Mire made his initial appearance today before U.S. Magistrate Judge Zack Hawthorn. Williams did the same last week.
Animal crushing is defined under federal criminal law as, “actual conduct in which one or more living non-human mammals, birds, reptiles, or amphibians, is purposely crushed, burned, drowned, suffocated, impaled, or otherwise subjected to serious bodily injury.”
If convicted, Mire and Williams face up to seven years in federal prison.
This case is being investigated by the Federal Bureau of Investigation and the Beaumont Police Department and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Barbour County man sentenced to 50 years for child pornographyRead the Press Release
ELKINS, WEST VIRGINIA – A Philippi, West Virginia man was sentenced to 50 years in prison today for using young children to produce sexually explicit videos, United States Attorney William Ihlenfeld announced.
Jon Travis Yost, 28, victimized multiple children in the process of producing pornographic films and did so while still on probation for a sex crime from state court.
“Mr. Yost won’t be able to harm any children in the jail cell where he will be living for the next 50 years,” said U.S. Attorney Ihlenfeld. “Sadly, his victims will continue to suffer from the damage he has done, and some may never fully recover.”
Yost was sentenced today as a result of his conviction of “Production of Child Pornography – Previous Conviction.” His prior conviction was for Third Degree Sexual Assault in the Circuit Court of Barbour County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The FBI and the Harrison County Sheriff’s Office investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Attempted coercion of minor for sex in undercover investigation sends Billings man to prison for eight yearsRead the Press Release
BILLINGS — A Billings man who was convicted in an undercover investigation after he showed up at a residence believing he was going to meet a minor girl for sex was sentenced today to eight years in prison, to be followed by a lifetime of supervised release, U.S. Attorney Jesse Laslovich said.
Jason Robert Kroepelin, 33, pleaded guilty in April to attempted coercion and enticement.
U.S. District Judge Susan P. Watters presided.
In court documents, the government alleged that on Oct. 27, 2021, Kroepelin walked up to a residence in Billings where he believed he was going to meet a 13-year-old girl for sex. Kroepelin was previously talking online to a person he believed was the girl’s dad but who actually was an undercover FBI agent. Kroepelin had posted an ad titled “young naughty girl to use” on a website and the agent responded to it. Kroepelin described to the undercover agent graphic sexual activity he was planning to engage in with the girl and talked about recording the encounter. Law enforcement arrested Kroepelin when he arrived at an agreed upon location, where he thought he was meeting the girl for sex. After Kroepelin’s arrest, law enforcement searched his phone and found numerous photographs and two videos depicting child pornography.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the FBI, Homeland Security Investigations, Billings Police Department, Yellowstone County Sheriff’s Office and the Eastern Montana High Intensity Drug Trafficking Area Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Trini E. Ross for the Western District of New York Launch United Against Hate Program in Buffalo, New YorkRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division joined U.S. Attorney Trini E. Ross for the Western District of New York to announce a new initiative to combat unlawful acts of hate in the Western District of New York. The United Against Hate initiative seeks to directly connect federal, state and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents. Attorney General Merrick B. Garland recently announced the nationwide launch of the initiative and its expansion to all 94 U.S. Attorneys’ Offices over the next year.
“The Justice Department is committed to marshaling all resources at its disposal to hold people who engage in unlawful acts of hate accountable,” said Assistant Attorney General Clarke. “Through United Against Hate, we are bringing together community groups, local leaders and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate. Our communities, schools, workplaces, houses of worship and homes are all safer when we stand unified in the fight against hate.”
“The horrific events of May 14 took the lives of 10 members of our community because of their race, just because they were Black,” said U.S. Attorney Ross. “This type of race-based hate is unacceptable and will not be tolerated in this community or in our society. This community has shown that hate will not be accepted, through our actions in the days, weeks and months that followed, when our entire community stood together to send the message that hate will not win. The United Against Hate initiative will bring federal, state and local law enforcement together with those communities that are most vulnerable to becoming victims of hate crimes or hate incidents, while at the same time holding those who commit these acts accountable for their behavior. Together, we will continue to send the message that every person deserves to feel safe in their own community and that hate will not be tolerated.”
Community Relations Service Director Paul Monteiro, FBI Acting Special Agent in Charge Darren Cox and Buffalo Police Department Deputy Commissioner Al Wright also joined the event. After they spoke to an audience of community leaders, civil rights advocates and community members, subject matter experts from their offices engaged in a presentation and direct discussions with community leaders and advocates about taking steps to identify, report and prevent hate crimes and incidents. Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, the presenters emphasized the importance of reporting unlawful acts of hate. They also highlighted differences between hate crimes versus hate incidents, and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
As part of its United Against Hate programming, the U.S. Attorney’s Office will engage with communities across the Western District of New York to deepen connections with those communities, further hate crimes prevention efforts and encourage more people to report hate crimes and hate incidents.
The nationwide launch of United Against Hate follows a successful pilot of the program last spring by three U.S. Attorneys’ Offices — New Jersey, Massachusetts and the Eastern District of Washington. Attorney General Merrick B. Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of his memorandum on improving the department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.
Assistant Attorney General for Civil Rights Clarke and U.S. Attorney Ross Launch United Against Hate Program in BuffaloRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division joined U.S. Attorney Trini E. Ross for the Western District of New York to announce a new initiative to combat unlawful acts of hate in the Western District of New York. The United Against Hate initiative seeks to directly connect federal, state, and local law enforcement with traditionally marginalized communities in order to build trust and encourage the reporting of hate crimes and hate incidents. Attorney General Merrick B. Garland recently announced the nationwide launch of the initiative and its expansion to all 94 U.S. Attorneys’ Offices over the next year.
“The Justice Department is committed to marshaling all resources at its disposal to hold people who engage in unlawful acts of hate accountable,” said Assistant Attorney General Clarke. “Through United Against Hate, we are bringing together community groups, local leaders and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate. Our communities, schools, workplaces, houses of worship and homes are all safer when we stand unified in the fight against hate.”
“The horrific events of May 14 took the lives of 10 members of our community because of their race, just because they were Black,” said U.S. Attorney Ross. “This type of race-based hate is unacceptable and will not be tolerated in this community or in our society. This community has shown that hate will not be accepted, through our actions in the days, weeks and months that followed, when our entire community stood together to send the message that hate will not win. The United Against Hate initiative will bring federal, state and local law enforcement together with those communities that are most vulnerable to becoming victims of hate crimes or hate incidents, while at the same time holding those who commit these acts accountable for their behavior. Together, we will continue to send the message that every person deserves to feel safe in their own community and that hate will not be tolerated.”
Community Relations Service Director Paul Monteiro, FBI Acting Special Agent in Charge Darren Cox and Buffalo Police Department Deputy Commissioner Al Wright also joined the event. After they spoke to an audience of community leaders, civil rights advocates, and community members, subject matter experts from their offices engaged in a presentation and direct discussions with community leaders and advocates about taking steps to identify, report, and prevent hate crimes and incidents. Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, the presenters emphasized the importance of reporting unlawful acts of hate. They also highlighted differences between hate crimes versus hate incidents and provided options for responding to hate incidents when situations do not constitute a federal or state crime. Presenters also distinguished unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
As part of its United Against Hate programming, the U.S. Attorney’s Office will engage with communities across the Western District of New York to deepen connections with those communities, further hate crimes prevention efforts, and encourage more people to report hate crimes and hate incidents.
The nationwide launch of United Against Hate follows a successful pilot of the program last spring by three U.S. Attorneys’ Offices — New Jersey, Massachusetts, and the Eastern District of Washington. Attorney General Merrick B. Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of his memorandum on improving the department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.
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Andrew P. Manibusan and James Bernard Ada Mafnas Sentenced to Federal Prison for Trafficking MethamphetamineRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Andrew P. Manibusan, age 38, from Antioch, California, and James Bernard Ada Mafnas, age 51, from Barrigada, Guam, were sentenced in the United States District Court of Guam to federal imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)(viii). Manibusan was sentenced to 168 months, while Mafnas received 121 months. The Court also ordered each defendant to serve five years of supervised release following imprisonment and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From April to June 2021, Manibusan agreed with co-conspirators to distribute over 50 grams of methamphetamine to Guam from Antioch, California. Manibusan received over $51,000 from co-conspirators J.A. and James Ada Mafnas before he mailed 3,617 grams of methamphetamine to Guam. The package was later intercepted by law enforcement. The Court found that Manibusan acted as an organizer or leader in the drug conspiracy and that the conspiracy involved eight pounds of methamphetamine. Law enforcement also recovered $143,000.00 from the co-conspirators’ residence.
“This case involved a substantial quantity of drugs, in addition to money,” stated United States Attorney Anderson. “Law enforcement uncovered an organization that was deeply involved in drug trafficking. This is reflected in the number of conspirators and the geographical span of their unlawful activity. Our office looks forward to future enforcement operations as we continue to combat drug crime.”
“HSI will do everything in our power to investigate and bring to justice those who distribute meth,” said John. F. Tobon, Special Agent in Charge HSI Honolulu. “These sentences hold Manibusan and Mafnas accountable for their crimes but serve as a warning that HSI and its federal partners will work to keep the scourge of meth out of our communities.”
"These sentences are another demonstration that we do not tolerate using the U.S. Mail to traffic-controlled substances or launder drug money. Postal Inspectors will continue to pursue anyone who tries to take advantage of the post office and harm our communities," said Kevin Rho, Acting Inspector in Charge, USPIS, San Francisco Division. "As always, I would like to thank Guam Customs and Quarantine Agency, Guam Police Department, members of our Guam Interagency Anti-Narcotics Task Force (GIANT), and our federal law enforcement partners for their teamwork."
This joint investigation was conducted by the Homeland Security Investigations, United States Postal Inspection Service, and assistance from the Guam Police Department and Guam Customs and Quarantine Agency. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Additional Defendant Pleads Guilty in Staged Automobile Collision SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that LARRY PICOU (“PICOU”), age 56, of Gibson, La.; has agreed to plead guilty on September 28, 2022 to count one (1) in his indictment, charging him with Conspiracy to Commit Mail Fraud in violation of Title 18, United States Code, Section 371. In exchange, the government has agreed to dismiss two counts of Mail Fraud in violation of Title 18, United States Code, Sections 1341 and 2. In pleading guilty to count 1, the defendant faces a maximum penalty of five (5) years’ imprisonment; a term of supervised release of up to three (3) years; and a fine up to $250,000.00, as well as a mandatory special assessment fee of $100.00.
According to court documents, PICOU falsely claimed that he was a passenger in a car that was struck by a tractor-trailer on May 11, 2017. In fact, the defendant conspired with Damian Labeaud (“Labeaud”), Mario Solomon (“Solomon”), and others to intentionally collide with a tractor-trailer in the area of Chef Menteur Highway and Downman Road in New Orleans. After the intentional collision, PICOU and his co-conspirators made a false police report, lied in depositions, and filed fraudulent lawsuits claiming that the tractor-trailer was at fault. Through this scheme, PICOU and his co-conspirators caused the insurance company for the tractor-trailer to pay over $140,000.00 in settlement funds. The Honorable Jane Triche Milazzo set sentencing in this matter for January 18, 2023.
The U.S. Attorney’s Office would like to acknowledge the assistance of the Federal Bureau of Investigation with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Maria M. Carboni; Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; and Assistant U.S. Attorney Brandon S. Long.
Wednesday 28 September 2022
Willamette Country Music Concerts President Pleads Guilty to Wire Fraud and Money LaunderingRead the Press Release
EUGENE, Ore.—The former president and minority owner of Willamette Country Music Concerts, LLC, who planned, managed, and promoted the annual Willamette Country Music Festival in Linn County, Oregon, pleaded guilty today after she falsified bank statements and financial summaries to influence the sale of her stake in the company.
Anne Hankins, 53, a resident of Springfield, Oregon, pleaded guilty to one count each of wire fraud and money laundering.
“With today’s guilty plea, Ms. Hankins has proven herself to be a serial fraudster,” said Craig Gabriel, Criminal Chief for the U.S. Attorney’s Office. “Falsifying bank statements and laundering money to fraudulently inflate the value of a company are serious federal crimes.”
“Ms. Hankins blatantly deceived her business associate and stole money that never belonged to her. However, today the curtains have come down and Ms. Hankins is facing the music for her fraud,” said Special Agent in Charge Bret Kressin, IRS Criminal Investigation (IRS:CI), Seattle Field Office.
According to court documents, as former minority owner of Willamette Country Music Concerts (WCMC), Hankins owned 49% of the company. As president of WCMC, Hankins was responsible for preparing monthly financial statements which she provided by email to the company’s majority owner who was based in Beverley Hills, California.
Beginning in September 2016 and continuing until March 2018, Hankins provided altered banks statements and false financial summaries to the majority owner to conceal WCMC’s true financial condition. In November 2017, the majority owner approached Hankins about purchasing her stake in the company and having Hankins continue to serve as the company’s president.
On or about February 7, 2018, Hankins sent an updated financial summary to the majority owner falsely reporting that the company had approximately $1.1 million in its operating account. In reality, there was only $16,000 in the company’s account. Based on these false financial statements, on March 1, 2018, the majority owner purchased Hankins’ stake in the company for $1.5 million.
After receiving the majority owner’s payment, Hankins directed her credit union to issue a cashier’s check from her account to the Clerk of the Court for the District of Oregon to satisfy a restitution order on a previous bank fraud conviction from 2001. Hankins thereby laundered the proceeds from one crime to pay her restitution on another.
On September 12, 2022, Hankins was charged by criminal information with one count each of wire fraud and money laundering.
Wire fraud is punishable by up to 20 years in federal prison and money laundering by up to 10 years in federal prison. Both charges also may result in fines of up to $250,000, or twice the gross gains or losses resulting from the offense, and three years’ supervised release.
Hankins will be sentenced on January 5, 2023, by U.S. District Court Judge Michael J. McShane.
As part of her plea agreement, Hankins has agreed to pay restitution as identified by the government and ordered by the court.
This case was investigated by IRS:CI and the FBI, and is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon.
Wilkinsburg Felon Pleads Guilty to Possessing Crack Cocaine, Gun and AmmunitionRead the Press Release
PITTSBURGH, PA – A former resident of Wilkinsburg, Pennsylvania, pleaded guilty yesterday in federal court to a charge of violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
Keenan Young, 28, pleaded guilty to possession with intent to distribute cocaine and possession of a firearm and ammunition by a convicted felon before Chief United States District Judge Mark R. Hornak on Sept. 27, 2022.
In connection with the guilty plea, the court was advised that on April 16, 2021, a federal search warrant was executed on Young’s residence located in Wilkinsburg, PA. Agents with the DEA and members of the Pittsburgh Bureau of Police located a loaded KelTec .380 caliber handgun and multiple baggies of crack cocaine inside of a bedroom. Young admitted to possession of the recovered firearm and crack cocaine. Young is prohibited from possessing any firearms based upon his multiple felony convictions. Federal law prohibits anyone who has been convicted of a crime punishable by a term of imprisonment exceeding one year from possessing a firearm or ammunition.
Chief Judge Hornak scheduled sentencing for Feb. 2, 2023, at 1:30 pm. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,00,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Young remains detained pending sentencing.
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the City of Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in 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.
Westlake Man Sentenced to Prison and Ordered to Pay More than $500,000 in Restitution for Evading Income TaxRead the Press Release
CLEVELAND - Yaser Najjar, age 60, of Westlake, Ohio, was sentenced on Tuesday, September 7, 2022, by U.S. District Judge Donald C. Nugent to two years in prison and was ordered to pay a $100,000 fine and at least $503,398 in restitution to the IRS after he pleaded guilty to four counts of attempt to evade and defeat income tax.
According to court documents, from 2009 to 2017, Najjar failed to report the total amount of income earned from his ownership and the operations of a gas station on East 152nd Street in Cleveland. In addition, court records state that, as part of the scheme to evade income tax, Najjar used cash from the business to make personal purchases and maintained a second, secret handwritten ledger documenting the gas station’s daily gross receipts, gasoline and convenience store sales.
Court records show that Najjar used an accountant to prepare his taxes for the calendar years 2009 through 2016 and deliberately concealed and misrepresented a substantial portion of the gas station’s gross receipts from the accountant. Najjar provided the accountant with the markup (profit) per gallon of gasoline and convenience store sales, which figures substantially underreported actual gross receipts as reflected in the handwritten ledger. Additionally, Najjar failed to provide the accountant with certain information related to actual gasoline and convenience store sales and concealed other sources of income, including ATM fees, vacuum machine receipts and air machine receipts.
In total, Najjar defrauded the IRS of more than $1.5 million in income taxes owed as a result of concealed or underreported income earned from the gas station operations.
The investigation preceding the indictment was conducted by the IRS - Criminal Investigations (CI). This case was prosecuted by Assistant U.S. Attorneys Elliot Morrison and Megan Miller.
Westlake Financial to Pay over $225,000 to Resolve Servicemembers Civil Relief Act ClaimsRead the Press Release
The Justice Department today announced that Westlake Financial has agreed to pay over $225,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to provide qualified servicemembers with interest rate benefits for the entire period required under the SCRA and by improperly delaying approval of interest rate benefit requests.
“The Servicemembers Civil Relief Act makes clear that those serving in our nation’s military are entitled to receive interest rate benefits as soon as they are called to service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement sends the message that we will hold companies accountable when they deny servicemembers the important interest rate benefits they are entitled to under federal civil rights law.”
“Servicemembers make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law,” said U.S. Attorney Martin Estrada for the Central District of California. “The settlement with Westlake Financial reflects the Justice Department’s firm commitment to protecting the rights of servicemembers – and to defending civil rights for everyone.”
The SCRA provides that interest on any debt incurred by a servicemember before entering military service is limited to six percent per year. In order to take advantage of the interest rate cap, a servicemember must provide the creditor with written notice and a copy of their military orders or other documentation of their military service no later than 180 days after leaving service. After receiving notice, a creditor must forgive any interest in excess of 6% retroactively back to the date orders are issued calling the servicemember to active duty.
Westlake Financial is a Los Angeles-based auto finance company that specializes in subprime and near-subprime loans. In 2017, the Justice Department filed a complaint in the U.S. District Court for the Central District of California alleging that Westlake and its subsidiary, Wilshire Commercial Capital, violated the SCRA by unlawfully repossessing at least 70 vehicles owned by SCRA-protected servicemembers. In order to resolve those allegations, Westlake entered into a settlement requiring the company to pay over $700,000 to servicemembers and a $60,788 civil penalty and to be subject to monitoring by the department.
While monitoring Westlake’s compliance with the SCRA, the Justice Department discovered problems with the company’s handling of interest rate benefit requests. The department determined that Westlake was failing to apply interest rate benefits back to the date orders were issued calling the servicemember to active duty. The department also determined that Westlake had improperly delayed the approval of interest rate benefits to some servicemembers.
Under the amended settlement agreement, Westlake has agreed to pay an additional $185,460 to 250 servicemembers who did not receive interest rate benefits back to the date their orders were issued or who had to wait more than 60 days to receive their benefits. Each servicemember who did not receive interest rate benefits back to the date their orders were issued will receive a refund of any excess interest they paid, as well as an additional payment of three times the overpayment or $100, whichever is higher. Servicemembers whose interest rate approvals were delayed more than 60 days will each receive $500. Westlake will also be required to pay an additional $40,000 civil penalty to the United States. The amended agreement also requires Westlake to revise its SCRA policies and procedures and training to ensure that interest rate benefits are timely and appropriately applied to servicemember accounts.
This case was handled by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Central District of California. Since 2011, the Justice Department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Westlake Financial to Pay More Than $225,000 to Resolve Servicemembers Civil Relief Act ClaimsRead the Press Release
LOS ANGELES – The Justice Department today announced that Westlake Financial has agreed to pay more than $225,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to provide qualified servicemembers with interest rate benefits for the entire period required under the SCRA and by improperly delaying approval of interest rate benefit requests.
“Servicemembers make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law,” said United States Attorney Martin Estrada. “The settlement with Westlake Financial reflects the Justice Department’s firm commitment to protecting the rights of servicemembers – and to defending civil rights for everyone.”
“The Servicemembers Civil Relief Act makes clear that those serving in our nation’s military are entitled to receive interest rate benefits as soon as they are called to service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement sends the message that we will hold companies accountable when they deny servicemembers the important interest rate benefits they are entitled to under federal civil rights law.”
The SCRA provides that interest on any debt incurred by a servicemember before entering military service is limited to 6 percent per year. To take advantage of the interest rate cap, a servicemember must provide the creditor with written notice and a copy of their military orders or other documentation of their military service no later than 180 days after leaving service. After receiving notice, a creditor must forgive any interest in excess of 6 percent retroactively back to the date orders are issued calling the servicemember to active duty.
Westlake Financial is a Los Angeles-based auto finance company that specializes in subprime and near-subprime loans. In 2017, the Justice Department filed a complaint in United States District Court in Los Angeles alleging that Westlake and its subsidiary, Wilshire Commercial Capital, violated the SCRA by unlawfully repossessing at least 70 vehicles owned by SCRA-protected servicemembers. To resolve those allegations, Westlake entered into a settlement requiring the company to pay over $700,000 to servicemembers and a $60,788 civil penalty and to be subject to monitoring by the department.
While monitoring Westlake’s compliance with the SCRA, the Justice Department discovered problems with the company’s handling of interest rate benefit requests. The department determined that Westlake was failing to apply interest rate benefits back to the date orders were issued calling the servicemember to active duty. The department also determined that Westlake had improperly delayed the approval of interest rate benefits to some servicemembers.
Under an amended settlement agreement, Westlake has agreed to pay an additional $185,460 to 250 servicemembers who did not receive interest rate benefits back to the date their orders were issued or who had to wait more than 60 days to receive their benefits. Each servicemember who did not receive interest rate benefits back to the date their orders were issued will receive a refund of any excess interest they paid, as well as an additional payment of three times the overpayment or $100, whichever is higher. Servicemembers whose interest rate approvals were delayed more than 60 days will each receive $500. Westlake will also be required to pay an additional $40,000 civil penalty to the United States. The amended agreement also requires Westlake to revise its SCRA policies and procedures and training to ensure that interest rate benefits are timely and appropriately applied to servicemember accounts.
Assistant United States Attorney Matthew E. Nickell of the Civil Division’s Civil Rights Section, and Trial Attorneys Audrey M. Yap and Alan A. Martinson of the Justice Department’s Civil Rights Division’s Housing and Civil Enforcement Section worked on this case.
Since 2011, the Justice Department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Wayne County Woman Pleads Guilty to Federal Gun CrimesRead the Press Release
HUNTINGTON, W.Va. – Jotesa Ruth Porter, 33, of Kenova, pleaded guilty today to making false statements in the acquisition of firearms and disposing of firearms to a person convicted of a felony.
According to court documents and statements made in court, on June 30, 2020, Porter straw purchased four firearms at a Huntington pawn shop: a Rock Island M1-1911 FS, .45-caliber pistol; a Taurus 1911, .45-caliber pistol; an Anderson AM-15, multi-caliber rifle; and a Spikes ST-15, .300-caliber rifle. Porter admitted to lying on the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Federal Firearms Transaction Records Form 4473 for the purchase. Porter falsely certified that she was the buyer of the firearms when she knew she was purchasing them for someone else.
Porter admitted that she provided the firearms to Corey Michael Perkins, 33, of Huntington. Perkins had picked out the firearms in advance, directed Porter to purchase them, provided her with the necessary money, and induced her to falsify the ATF form. Perkins knew he could not purchase the firearms himself because of his prior felony conviction for possession with intent to deliver a controlled substance in Cabell County Circuit Court on January 10, 2013. Perkins was sentenced to three years and one month in prison for aiding and abetting the illegal straw purchase of firearms on August 22, 2022.
Porter is scheduled to be sentenced on January 9, 2023, and faces a maximum penalty of 15 years in prison, three years of supervised release and a $250,000 fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the ATF and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Courtney L. Cremeans is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-55.
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Umatilla County Drug Dealer Faces Federal ChargesRead the Press Release
PORTLAND, Ore.—A federal grand jury in Portland has returned an indictment charging an Eastern Oregon man with distributing large quantities of fentanyl and methamphetamine in and around Umatilla County, Oregon.
Edain Laurel Lozano, 35, of Umatilla County, Oregon has been charged with possessing with intent to distribute fentanyl and methamphetamine and possessing a firearm in furtherance of a drug trafficking crime.
According to court documents, between May and September 2022, special agents from the FBI and officers from the Blue Mountain Enforcement Narcotics Team (BENT) set up, conducted, and surveilled multiple controlled purchases of methamphetamine and fentanyl-laced pills from Lozano. Each subsequent controlled purchase involved requesting and purchasing increasing quantities of the narcotics from Lozano. By the final controlled purchase, Lozano had agreed to sell multiple pounds of methamphetamine and several thousand counterfeit pills containing fentanyl.
On September 7, 2022, Lozano was arrested and consented to a search of his vehicle. Investigators located and seized over four pounds of methamphetamine, more than 5,000 counterfeit pills containing fentanyl, drug packaging materials, a digital scale, and a stolen handgun.
On September 23, 2022, Lozano was arraigned on the indictment and pleaded not guilty. Over the government’s objection, he was released on conditions pending a three-day jury trial scheduled to begin on November 8, 2022.
If convicted, Lozano faces a maximum sentence of life in prison with a 15-year mandatory minimum, five years’ supervised release, and a $10 million fine.
This case was investigated by the FBI and BENT. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
BENT is a regional drug task force founded in 1986 by the Pendleton Police Department and Oregon State Police. In 2005, BENT was designated as a High Intensity Drug Trafficking (HIDTA) task force by the White House Office of National Drug Control Policy (ONDCP). Current BENT member agencies include the Pendleton Police Department, Oregon State Police, FBI, Morrow County Sheriff’s Office, Oregon National Guard, Boardman Police Department, Milton-Freewater Police Department, Hermiston Police Department, and Umatilla Tribal Police Department.
U.S. Attorney’s Office and Department of Justice Announce Results of Efforts to Reduce Fentanyl Supply and Prosecute Fentanyl TraffickersRead the Press Release
INDIANAPOLIS – Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and the Justice Department, announced today the results of an enforcement operation that spanned from May to September and resulted in significant fentanyl seizures across the United States.
As part of the One Pill Can Kill initiative, the DEA and its law enforcement partners seized more than 10.2 million fentanyl pills and approximately 980 pounds of fentanyl powder during the period of May 23 through Sept. 8, 2022. The amount of fentanyl taken off the streets nationwide during this surge is equivalent to more than 36 million lethal doses removed from the illegal drug supply. Additionally, 338 weapons were seized, including rifles, shotguns, pistols, and hand grenades.
Of the 390 cases investigated during this period nationwide, 51 cases are linked to overdose poisonings and 35 cases link directly to one or both of the primary Mexican cartels responsible for the majority of fentanyl in the United States – the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG). In addition, 129 investigations are linked to social media platforms, including Snapchat, Facebook Messenger, Instagram, and TikTok. These results build upon the One Pill Can Kill Phase II results announced by DEA Administrator Anne Milgram in December 2021.
“Drug overdose deaths touch every Hoosier—our families, our friends, our children. These tragedies are overwhelmingly driven by trafficking of fentanyl and other deadly opioids,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “Fentanyl is concealed in everything from fake pharmaceuticals to rainbow candy-colored pills, and even within other controlled substances. The cartels and drug traffickers push these poisonous chemicals into our communities with utter disregard for human life. The U.S. Attorney’s Office will work with our partners in the DEA and throughout federal, state, and local law enforcement, to reduce the supply of these deadly drugs and hold fentanyl traffickers accountable.”
“Far too many lives have been lost across Indiana from drug overdoses and poisonings involving fake pills laced with fentanyl,” said Assistant Special Agent in Charge Michael Gannon, DEA Indianapolis. “DEA is committed to working hand-in-hand with our state, local and federal partners to bring drug cartels to justice. We will also continue raising awareness about the dangers of fake pills through the ‘One Pill Can Kill’ campaign.”
“Across the country, fentanyl is devastating families and communities, and we know that violent, criminal drug cartels bear responsibility for this crisis,” said Attorney General Merrick B. Garland. “The Justice Department, including the extraordinary professionals of the DEA, is working to disrupt and dismantle the operations of these cartels, remove deadly fentanyl from our communities, and save Americans’ lives.”
“For the past year, confronting the fentanyl crisis has been the top priority for DEA. The most urgent threat to our communities, our kids, and our families are the Sinaloa Cartel and CJNG who are mass producing and supplying the fentanyl that is poisoning and killing Americans,” said DEA Administrator Anne Milgram. “The Sinaloa Cartel and CJNG are ruthless, criminal organizations that use deception and treachery to drive addiction with complete disregard for human life. To save American lives, the DEA is relentlessly focused on defeating the Sinaloa Cartel and CJNG by degrading their operations to make it impossible for them to do business.”
The U.S. Attorney’s Office for the Southern District of Indiana has led the prosecution of numerous individuals charged with or convicted of fentanyl trafficking, including:
- Nyron Harmon, 31, of Indianapolis, was sentenced to 12 years in federal prison on September 27, 2022, for possession with intent to distribute fentanyl and carrying a firearm during and in relation to a drug trafficking crime.
- Arcinial Montreal Watt, 34, and Jazmynn Alaina Brown, 24, both of Evansville, Indiana, were charged by superseding indictment on September 22, 2022, for conspiring to distribute fentanyl resulting in the death of a three-year-old girl and causing a one-year-old to be hospitalized and administered NARCAN, both due to fentanyl overdoses.
- Julius Johnson, 44, of Indianapolis, was sentenced to 10 years in federal prison on August 16, 2022, for possession with intent to distribute fentanyl, carrying a firearm during and in relation to a drug trafficking crime and possession of a firearm by a convicted felon.
- Keith Jones, a/k/a “Keybo,” 56, of Indianapolis, was indicted by a federal grand jury on July 7, 2022, for allegedly leading a drug trafficking organization that conspired to distribute large amounts of fentanyl and other controlled substances. Twenty other individuals are also charged in relation to the drug trafficking conspiracy.
- Ethan Parker, 29, and Joshua Harvey, 30, both of Evansville, Indiana, were indicted by a federal grand jury on June 24, 2022, for manufacturing fentanyl-laced counterfeit pills using a pill press and conspiring to distribute fentanyl-laced pills.
Fentanyl remains the deadliest drug threat facing this nation. In 2021, a record number of Americans – 107,622 – died from a drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl. According to the Indiana Department of Health, 2,554 Hoosiers died of drug overdoses in 2021 and over 70% of the deaths were caused by fentanyl and other synthetic opioids. Between January 1 and August 1, 2022, over 2,500 Hoosiers have been lost to drug overdoses, the vast majority from fentanyl and similar drugs.
Drug traffickers have expanded their inventory to sell fentanyl in a variety of bright colors, shapes, and sizes. Rainbow fentanyl was first reported to DEA in February 2022, and it has now been seized in 21 states, including in the Southern District of Indiana.
Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose.
As part of DEA’s ongoing efforts to educate the public and encourage parents and caregivers to talk to teens and young adults about the dangers of fake pills and illicit drugs, DEA has also created a new resource, “What Every Parent and Caregiver Needs to Know About Fake Pills.”
In September 2021, DEA launched the One Pill Can Kill enforcement effort and public awareness campaign to combat the fake pill threat and educate the public about the dangers of fentanyl pills being disguised and sold as prescription medications, despite these pills not containing any of the actual medications advertised. The only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. All other pills are unsafe and potentially deadly.
Additional resources for parents and the community can be found on the DEA’s Fentanyl Awareness page.
U.S. Attorney Nick Brown names both Civil and Criminal Division attorneys to focus on Environmental JusticeRead the Press Release
Seattle – U.S. Attorney Nick Brown has named two veteran Assistant United States Attorneys to lead the Western District of Washington Environmental Justice Initiative. Criminal AUSA Seth Wilkinson and Civil AUSA Kayla Stahman will lead the district efforts on environmental prosecutions and civil enforcement.
“Both these attorneys have deep experience not only with investigating and prosecuting environmental crimes, but with the Affirmative Civil Enforcement the Justice Department uses to hold companies accountable for their conduct,” said U.S. Attorney Nick Brown. “As we look at issues surrounding Environmental Justice in disadvantaged communities, it will take all our tools, civil and criminal, to make positive change and protect our fragile Northwest environment.”
For example, AUSA Wilkinson previously prosecuted the CEOs of Total Reclaim, the Northwest’s largest electronics recycler, for secretly exporting mercury-laden electronics to Hong Kong, potentially exposing local workers and residents to toxic material. AUSA Wilkinson is currently prosecuting the owners of a Washington company for removing federally-required emissions control devices from diesel vehicles in violation of the Clean Air Act.
AUSA Stahman has handled a variety of affirmative civil litigation from protecting the elderly from financial scams to holding medical labs accountable for overbilling government programs and accepting kickbacks.
AUSAs Wilkinson and Stahman recently coordinated the civil and criminal prosecution related to steel that did not meet military requirements being sold to the Navy. Coordinating the civil settlement as well as the criminal case required the close coordination that will now be brought to the environmental justice work of the U.S. Attorney’s Office.
The district’s Environmental Justice Coordinators will lead efforts to enforce environmental laws, including the Clean Air Act, Clean Water Act, and hazardous waste laws. An intentional decision to violate these laws may be a federal crime. For example, intentionally discharging pollutants into a river without a permit, or bypassing a required pollution control device, is a criminal act that carries the possibility of incarceration and monetary fines.
The district’s Environmental Justice Coordinators also will lead efforts to remedy environmental violations and contaminations by pursuing actions under the civil rights laws, worker safety and consumer protection statutes, and the False Claims Act. For example, a federal contractor who violates a contractual provision mandating the proper disposal of hazardous waste may be subject to liability under the False Claims Act; a landlord who leases a home without disclosing known information about lead-based paint may violate federal lead disclosure rules.
Other examples of civil or criminal environmental misconduct include:
- Air emissions of toxic pollutants resulting from inadequate or nonexistent pollution control
- Illegal asbestos removals that expose and create health risks for workers and the public
- Illegal discharges into waters or sewer systems that threaten public safety and cause damage to our water infrastructure
- Illegal handling, transportation, and disposal of hazardous wastes and pesticides
- Oil spills or other incidents that compromise the fishing rights or practices of indigenous or disadvantaged communities
- False statements to the EPA or other regulatory agencies that threaten the integrity of environmental protection programs
If you suspect an environmental violation report it to the Environmental Protection Agency.
U.S. Attorney Announces Total Distributions of over $4 Billion to Victims of Madoff Ponzi SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Attorney General Merrick Garland, and Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division, announced today that the Madoff Victim Fund established by the Department of Justice began its eighth distribution to victims of funds forfeited to the United States Government in connection with the Bernard L. Madoff Investment Securities LLC (“BLMIS”) fraud scheme. The distribution will include approximately $372 million in additional funds, bringing the total distributed to date to over $4 billion. The funds will be sent to 40,000 victims worldwide, the eighth payment to victims that will bring their total recovery from all sources of compensation to 88.35% of their losses. The Madoff Victim Fund will ultimately return to victims more than $4 billion in assets that have been recovered as compensation for losses suffered by the collapse of BLMIS, following the largest fraud in history, announced by this Office in 2013. Another $5 billion in assets recovered by the U.S. Attorney’s Office are being separately paid to Madoff victims through the BLMIS Customer Fund administered by the Securities Investor Protection Act Trustee.
U.S. Attorney Damian Williams said: “This Office continues its historic work seeking justice for the victims of Madoff’s heinous crimes. Today’s additional payments of $372 million by this Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section represents the eighth in a series of distributions that will leave victims with compensation for more than 88 percent of their losses—a truly remarkable result. But our work is not fully complete, and this Office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s crimes continues.”
Assistant Attorney General Kenneth A. Polite said: “The Criminal Division is proud to continue providing compensation to victims through the largest remission process the Department has overseen. The billions distributed worldwide is a testament to the Department’s sustained efforts to ensure justice for the victims of Bernard Madoff’s massive fraud.”
Since the early 1970s, BERNARD L. MADOFF (“MADOFF”) used his position as Chairman of BLMIS, the investment advisory business he founded, to steal billions from his clients. On March 12, 2009, MADOFF pled guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle. On June 29, 2009, United States District Judge Denny Chin sentenced MADOFF to 150 years in prison for running the largest fraudulent scheme in history. Judge Chin ordered MADOFF to forfeit $170,799,000,000 as part of MADOFF’s sentence.
The Madoff Victim Fund is funded through recoveries by the U.S. Attorney’s Office in various criminal and civil forfeiture actions and is overseen by Richard Breeden, the former Chairman of the United States Securities and Exchange Commission, in his capacity as Special Master appointed by the Department of Justice to assist in connection with the victim remission proceedings.
Of the approximately $4.05 billion that will be made available to victims through the Madoff Victim Fund, approximately $2.2 billion was collected as part of the civil forfeiture recovery from the estate of deceased MADOFF investor Jeffry Picower. An additional $1.7 billion was collected as part of a Deferred Prosecution Agreement with JPMorgan Chase Bank N.A. for MADOFF-related Bank Secrecy Act violations. Additional funds were collected through criminal and civil forfeiture actions against MADOFF and his co-conspirators, and certain MADOFF investors.
Mr. Williams praised the work of the FBI and the Madoff Victim Fund and thanked the Money Laundering and Asset Recovery Section of the Department of Justice’s Criminal Division for their assistance.
For more information about the Madoff Victim Fund, compensation to victims of BLMIS, eligibility criteria, and payment information, please visit www.madoffvictimfund.com.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Louis A. Pellegrino is in charge of the case. The remission of these forfeited funds is being handled by the Office and the U.S. Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section.
U.S. Attorney Announces New Reporting Procedure for Environmental Justice Issues & Environmental ViolationsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, U.S. Attorney for the Western District of Wisconsin, announced today that the U.S. Attorney’s Office has implemented new public reporting procedures for environmental violations and issues relating to environmental justice. Environmental justice is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies.
The Office is implementing this public reporting procedure under the Department of Justice’s Comprehensive Environmental Justice Enforcement Strategy. This Strategy seeks to provide “timely and effective remedies for systemic environmental violations and contaminations and for injury to natural resources in underserved communities that have been historically marginalized and overburdened, including low-income communities, communities of color, and Tribal and Indigenous communities.”
“Advancing environmental justice through civil and criminal enforcement efforts, along with EPA and our other federal partners, will enhance environmental justice for all Americans,” said U.S. Attorney O’Shea. “We hope that concerned individuals, organizations, and community groups in this district will work with us to address and fix environmental injuries to public health or the environment, or injuries to natural resources. Together, we will work to reduce public health and environmental harms caused by violations of our federal laws and regulations—especially to underserved communities that often suffer from a disproportionate share of adverse health effects.”
Members of the public in the who have concerns about environmental violations and justice in the Western District of Wisconsin can now report them to the U.S. Attorney’s office by email to [email protected]. The Office’s public reporting procedures are in addition to other methods of reporting environmental concerns to the federal government, such as the online portal maintained by the Environmental Protection Agency (EPA), https://echo.epa.gov/report-environmental-violations. Other information regarding environmental reporting information may also be found on the district’s website at USAO-WDWI/Environmental-Justice-and-Enforcement.
Consistent with the Department’s comprehensive strategy, the U.S. Attorney also designated an Environmental Justice Coordinator for the district to coordinate its environmental justice efforts.
Two Brooklyn Men Charged with Armed Robbery at ChurchRead the Press Release
Earlier today, in federal court in Brooklyn, an indictment was unsealed charging Juwan Anderson and Say-Quan Pollack for their roles in an armed robbery at a church in Brooklyn (the “Church”) on July 24, 2022. The defendants were arrested today and will be arraigned this afternoon before United States Magistrate Judge Ramon E. Reyes, Jr. A third defendant remains at large.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the arrests and charges.
“As alleged, the defendants brought guns into a place of worship, stealing from two members of the clergy, and terrifying the congregation in the process,” stated United States Attorney Peace. “I commend the Special Agents and Detectives for their outstanding efforts in identifying the perpetrators who committed a crime that shocks the conscience for its brazenness. This Office will always work with our law enforcement partners to protect our houses of worship, prosecute those who engage in gun violence and and ensure the safety of all members of our community.”
“Armed robbery is an intolerable crime, but to commit such an act during a religious service is incomprehensible,” stated ATF Special Agent-in-Charge DeVito. “The men and woman of ATF stand side by side with all of our partners to identify, investigate and apprehend those that commit such brazen acts of violence within our communities. These arrests are due to the excellent investigative work by ATF/NYPD’s Strategic Pattern Armed Robbery Technical Apprehension (SPARTA) Group. I would like to thank the United States Attorney’s Office for their work in prosecuting this case.”
“The indictment unsealed today affirms the NYPD’s unwavering commitment to working collaboratively, across several law enforcement agencies, to focus on those few individuals charged with wreaking violence in our city,” stated NYPD Commissioner Sewell. “I commend the U.S. Attorney’s Office for the Eastern District of New York, the New York Field Division of the Bureau of Alcohol, Tobacco, and Firearms, and all of our NYPD officers and detectives who have investigated this important case and removed these defendants from our streets."
As alleged in the indictment and court filings, Anderson, Pollack and a co-conspirator—masked and clad all in black—entered the Church brandishing firearms, while parishioners attended Church services in person and via a live-stream. The lead pastor (“Individual 1” in the Indictment) dove to the floor, while his wife (“Individual 2” in the Indictment) shielded their infant daughter who was sitting on her lap. Pollack stood guard at the doorway, pointing a firearm in the direction of the parishioners and the pulpit. The co-conspirator, wielding a gun, approached Individual 2 and pulled jewelry off her person. Pollack then approached Individual 1 as he lay on the floor and made sure that all of his jewelry had been removed by Anderson and the co-conspirator.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each defendant faces a maximum sentence of life imprisonment.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Rebecca M. Schuman is prosecuting the case.
The Defendants:
JUWAN ANDERSON
Age: 23
Brooklyn, New YorkSAY-QUAN POLLACK (also known as “Say-Quan Pollock”)
Age: 23
Brooklyn, New YorkE.D.N.Y. Docket No. 22-CR-428 (WFK)
Two Bronx Men Arrested for Multiple Kidnappings, Carjackings, and RobberiesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that DIANTE FERNANDES and MARK FRANCIS, both of the Bronx, were arrested in connection with a series of recent carjackings in the Bronx and Yonkers, New York. FERNANDES and FRANCIS had their initial appearance today before United States Magistrate Judge Judith C. McCarthy and were ordered detained.
According to the allegations in the Complaint, and statements made in court:[1]
Between September 26 and 27, 2022, DIANTE FERNANDES and MARK FRANCIS, the defendants, carjacked, robbed, and kidnapped multiple victims, in the Bronx and Yonkers, New York. Once on September 26 and again on September 27, the defendants lured victims to a location in Yonkers using an ad for a used car posted on Facebook Marketplace. When the victims arrived, hoping to buy the car, FERNANDES and FRANCIS forced the victims, at gunpoint, into the car they were considering buying. FERNANDES and FRANCIS then drove around the New York City area, forcing the victims to withdraw money from bank accounts and threatening to kill them if they did not comply. FERNANDES and FRANCIS stole the victims’ money, wallets, and phones. On at least one occasion, FERNANDES and FRANCIS held a victim captive in the car for several hours. FERNANDES and FRANCIS then left the victims on the street and stole the cars the victims had driven to the meeting place.
* * *
FERNANDES, 19, and FRANCIS, 18, both of the Bronx, New York, are charged with carjacking, Hobbs Act robbery, kidnapping, and conspiracy to commit these offenses, as well as possessing a firearm during the offenses. If convicted of these offenses, the defendants face a maximum sentence of life in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation’s Westchester County Safe Streets Task Force and also thanked the Yonkers Police Department, Westchester County Police Department, Westchester County Real Time Crime Center, and the New York City Police Department.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Kingdar Prussien and Josiah Pertz are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described herein should be treated as an allegation.
Tucker Man Sentenced to 50 Years for Sexual Assault of ChildRead the Press Release
Jackson, Miss. – A Tucker man was sentenced to 600 months in prison followed by a lifetime of supervised release for the sexual assault of child less than 12 years of age, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Cameron Hickman, 34, of the Tucker Community of the Choctaw Indian Reservation, sexually assault a 12-year-old female child.
In August of 2019, a federal grand jury indicted Hickman on the charge of aggravated sexual abuse of a child less than 12 years of age. Hickman was found guilty at the conclusion of his jury trial in June of 2022.
United States Attorney LaMarca commended the work of the Choctaw Police Department of the Mississippi Band of Choctaw Indians, and the Federal Bureau of Investigation who investigated the case.
The case was prosecuted by Assistant United States Attorney Kevin J. Payne and Special Assistant United States Attorney Brian Burns.
Three Remaining Defendants Sentenced for Their Roles in Extensive Health Care Fraud Conspiracy to Defraud Medicaid Home Care ProgramRead the Press Release
PITTSBURGH, Pa. – Three residents of the Pittsburgh area were sentenced in federal court for conspiracy to defraud the Pennsylvania Medicaid program and related offenses, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon sentenced Arlinda Moriarty, 53, of Cranberry, to 84 months’ imprisonment; her sister, Daynelle Dickens, of Pittsburgh, 48, to 24 months’ imprisonment; and their uncle, Tony Brown, 65, to 36 months of probation, including 3 months of home confinement. Moriarty, Dickens, and Brown were also ordered to pay restitution to the Pennsylvania Medicaid program totaling $8,700,000, $1,000,000, and $43,113.02, respectively. All three defendants previously pleaded guilty to conspiracy to commit health care fraud and health care fraud. Moriarty pleaded guilty to additional counts of engaging in a scheme to conceal material facts in a health care matter and aggravated identity theft.
A total of 16 defendants were charged in connection with the health care fraud conspiracy and scheme, and 15 have now been convicted. The remaining defendant died during the pendency of the case.
“During this elaborate, years-long scheme, Arlinda Moriarty, her sister, and 13 of their co-conspirators stole millions of dollars from a critical government health care program by billing for in-home services that were never rendered,” said U.S. Attorney Chung. “I commend our law enforcement partners for their extraordinary efforts to investigate this massive health care fraud scheme, as well as the prosecutors who held the perpetrators accountable.”
“Ms. Moriarty sought to profit by defrauding the Medicaid program,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “She undermined the integrity of federal health care programs and patient trust. Now, she faces the consequences of her actions. Today’s sentencing is a strong reminder that anyone who commits fraud will be held accountable. The FBI will continue to work with our law enforcement partners to expose fraud and protect the public from illegal schemes.”
“When someone commits Medicaid fraud they are stealing from hard working Pennsylvanians,” said Attorney General Josh Shapiro. “These defendants made millions of dollars by defrauding Pennsylvanians and will now face the consequences for their actions. I am grateful for the work that my office, the Federal Bureau of Investigation, the Internal Revenue Service, the U.S. Department of Health and Human Services, and the United States Postal Inspection Service have done to bring justice in this case.”
“Defrauding federal and state health care programs wastes valuable taxpayer dollars and takes resources away from vulnerable populations in need of care and assistance,” said Maureen R. Dixon, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our law enforcement partners to hold accountable perpetrators of health care fraud.”
“Postal Inspectors value the partnerships with other federal and state agencies that helped identify and dismantle an intricate false billing scheme,” said Inspector In Charge Lesley Allison for the U.S. Postal Inspection Service. “Arlinda Moriarty and her co-conspirators took advantage of the Medicaid waiver program that was devised to allow qualified individuals to receive assistance in their own homes. Today’s sentencing confirms that anyone who uses the U.S. Mail for criminal activity will be brought to justice and held accountable.”
According to admissions made in connection with the defendants’ guilty pleas, between January 2011 and April 2017, Moriarty, Dickens, and Brown were associated with four related entities controlled by Moriarty—Moriarty Consultants, Inc. (MCI), Activity Daily Living Services, Inc. (ADL), Everyday People Staffing, Inc. (EPS), and Coordination Care, Inc. (CCI). Dickens owned CCI, and Brown was an employee of MCI. MCI, ADL, and CCI were approved under the Pennsylvania Medicaid program to offer certain services to qualifying Medicaid recipients (“consumers”), including personal assistance services (PAS), service coordination, and non-medical transportation, among other services. EPS nominally performed back-office functions for MCI, ADL, and CCI.
Between January 2011 and April 2017, MCI, ADL, and CCI, collectively, received more than $87,000,000 in Medicaid payments based on claims submitted for home health services, with PAS payments accounting for more than $80,000,000 of the total amount. During that time, Moriarty admitted orchestrating a wide-ranging conspiracy to defraud Medicaid for the purpose of obtaining millions of dollars in illegal Medicaid payments through the submission of fraudulent claims for services that were never provided to the consumers identified on the claims, or for which there was insufficient or fabricated documentation to support the claims.
The defendants admitted that the conspiracy and fraud scheme were carried out in a variety of ways. For example, co-conspirators fabricated timesheets to reflect the provision of in-home PAS care that, in fact, they never provided to the consumers identified on timesheets. Members of the conspiracy also paid kickbacks to consumers in exchange for their participation in the scheme. Indeed, Brown admitted paying kickbacks to his then-son-in-law in connection with the submission of fraudulent Medicaid claims stating that Brown had provided in-home care for the son-in-law, when, in fact, he had not. Brown, the son-in-law, and Brown’s daughter, Tamika Adams, who previously was sentenced to 65 months’ incarceration, would then split the fraud proceeds. As part of the conspiracy, co-conspirators also caused the submission of Medicaid claims in the name of “ghost” employees for PAS care that never occurred.
During the conspiracy, Moriarty and Dickens also admitted causing the periodic bulk submission of fraudulent Medicaid claims for so-called “unused” hours—i.e., excess hours of care that consumers had not needed and therefore should not have been billed. Finally, Moriarty admitted that during the course of audits of MCI, ADL, and CCI, she directed the fabrication of various documents for submission to state authorities in an effort to conceal the Medicaid fraud scheme. Among other things, co-conspirators fabricated PAS timesheets, criminal history checks for attendants, child-abuse clearance forms for attendants, and certain consumer affidavits to ensure that files requested as part of the audits appeared complete. During the conspiracy, Moriarty and Dickens received payments from the Moriarty-related companies totaling approximately $1.6 million and $1 million, respectively.
Assistant United States Attorney Eric G. Olshan and Special Assistant United States Attorney Edward Song are prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Pennsylvania Office of the Attorney General – Medicaid Fraud Control Unit, Internal Revenue Service – Criminal Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and United States Postal Inspection Service conducted the investigation of the defendants, with assistance from the Pennsylvania Bureau of Financial Operations.
Texas Man Sentenced to 14 Years in Prison for Transporting 286 Pounds of Methampthemine and 60 Pounds of FentanylRead the Press Release
DETROIT – A Texas man was sentenced today to 14 years in prison after being caught transporting 286 pounds of methamphetamine, 60 pounds of Fentanyl, and 60 pounds of cocaine hidden in a truck carrying a load of wine, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge Orville O. Greene, Drug Enforcement Administration.
Roque Carranza-Alvarado, 28, formerly of Dallas, Texas, was sentenced in federal court in Port Huron by the Hon. Robert H. Cleland, Untied States District Judge.
Carranza-Alvarado had previously pleaded guilty in March 2022 to three counts of possession with intent to distribute controlled substances. Court records show that Carranza-Alvarado was stopped in his truck by the Michigan State Police and arrested on June 13, 2021, near Marma, Michigan, while headed to the Detroit area. Using a drug-sniffing dog, law enforcement agents discovered and seized 286 pounds of methamphetamine, 60 pounds of a fentanyl analogue, 60 pounds of cocaine, and 800 grams of crack cocaine from the cab of Carranza-Alvarado’s truck. The defendant’s truck was loaded with 1,100 cases of wine from California to be delivered in Roseville, Michigan. The State Police also seized $11,000 in cash from the defendant. In total, the drugs from the defendant had a street value of between $3 and $4 million.
“Fentanyl and methamphetamine are poisoning our communities and killing our citizens. We will aggressively pursue and prosecute those who are harming our communities with dangerous drugs,” stated U.S. Attorney Dawn N. Ison.
“This defendant was caught transporting a very significant amount of drugs that could have done untold damage to Michigan communities. DEA and our state, local and federal partners, will employ every resource available to hold individuals and organizations, who peddle poisons-for-profit, accountable,” said Special Agent Greene.
This case was the result of an ongoing investigation by the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant United States Attorney John O’Brien.
Swansea Man Agrees to Plead Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A Swansea man agreed to plead guilty yesterday in federal court in Boston to possession of child pornography.
Todd Miozza, 52, pleaded guilty to one count of possession of child pornography. The Court deferred acceptance of the proposed plea agreement until sentencing, which U.S. Senior District Judge William G. Young scheduled for Jan 19, 2023. Miozza was arrested and charged on June 29, 2022.
As stated during the hearing, Miozza admitted that he had obtained child pornography over the internet using a social media platform. During a search of Miozza’ s residence in June, his iPhone and laptop were seized and found to contain child sexual abuse material – including videos depicting infants.
Miozza was previously convicted of possession of child pornography in the District of Massachusetts in 2002.
The charge of possession of child pornography by a person previously convicted of a child pornography offense carries a mandatory minimum sentence of 10 years and up to 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Matthew Millhollin, Special Agent in Charge for Homeland Security Investigations, New England made the announcement. The Swansea Police Department provided valuable assistance to the investigation. Assistant U.S. Attorney Elianna J. Nuzum of Rollins’ Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Sells Man Found Guilty of Aggravated Sexual AbuseRead the Press Release
PHOENIX, Ariz. – On September 22, 2022, Emmett Miguel, of Sells, Arizona, an enrolled member of the Gila River Indian Community, was found guilty by a jury of Aggravated Sexual Abuse and Abusive Sexual Contact. In January 2012, Miguel sexually assaulted the 17-year-old victim at a dance in Sacaton, Arizona. Sentencing is scheduled for December 14, 2022, before United States District Court Judge Susan M. Brnovich.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan and Alanna Kennedy, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-21-00301-PHX-SMB
RELEASE NUMBER: 2022-163_Miguel
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Sauk Rapids Man Pleads Guilty to Manufacturing, Selling Ghost GunsRead the Press Release
ST. PAUL, Minn. – A Sauk Rapids man has pleaded guilty to willfully manufacturing firearms without a license, announced U.S. Attorney Andrew M. Luger.
According to court documents, between the fall of 2021 through April 2022, Jay James Olson, 21, willfully engaged in the business of manufacturing firearms for profit, despite the fact that he is not and has never been a federally licensed manufacturer of firearms. In the spring of 2022, Olson offered to sell unserialized firearms, commonly referred to as “ghost guns,” and various firearms-related accessories, including a silencer, an auto sear, and high-capacity magazines, to an individual for $20,000. Unbeknownst to Olson, the individual was working with law enforcement as a confidential source. During their conversations, Olson told the confidential source that the price for each firearm would be going up because of the federal government’s recent initiative targeting ghost guns.
On April 26, 2022, at a residence in Waite Park, Olson sold the confidential source 16 ghost guns, nine high-capacity magazines, one firearms silencer, an auto-sear, and other firearms accessories. Immediately after the transaction, law enforcement arrested Olson and executed a search warrant at the residence. During the search, investigators recovered firearm assembly kits, unserialized lower receivers, and multiple miscellaneous firearms parts and accessories. On May 4, 2022, investigators executed a search warrant at Olson’s Sauk Rapids residence, and recovered from the basement manufacturing tools, various firearm assembly kits, and a Glock firearm assembly diagram.
Olson pleaded guilty today before U.S. District Judge Eric C. Tostrud to one count of willfully engaging in the business of manufacturing firearms without a license. A sentencing hearing will be scheduled at a later time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Hennepin County Sheriff’s Office, the Hennepin County Violent Offender Task Force, and the Stearns County Sheriff’s Office.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Sentencings in the United States Attorney's OfficeRead the Press Release
United Stated District Court Alan B. Johnson sentenced JOSE ALEJANDRO ROJAS-MARTINEZ, 37, on August 24, 2022, for illegal re-entry of previously deported alien into the United States to 10 months’ imprisonment with two years of supervised release and a $100 special assessment, remitted upon deportation.
United States District Court Judge Alan B. Johnson sentenced RAY LAVON ROBINSON, 26, of Casper, Wyoming, on August 30, 2022, to 45 months’ imprisonment with three years of supervised release and a $100 special assessment for being an unlawful user of a controlled substance in possession of a firearm by a person convicted of domestic violence.
United States District Court Judge Nancy D. Freudenthal sentenced JOSHUA TAYLOR, 53, of Gillette, Wyoming, on September 13, 2022, for possession with intent to distribute 500 grams or more of methamphetamine. He received a sentence of 292 months’ imprisonment, five years of supervised release, and was ordered to pay $500 in community restitution and a $100 special assessment.
United States District Court Judge Nancy D. Freudenthal sentenced KARL DENNIS VONGETTROST, 29, of Wheatland, Wyoming, on September 13, 2022, for possession with intent to distribute 50 grams or more of methamphetamine. He received a sentence of 120 months’ imprisonment, five years of supervised release, and was ordered to pay $500 in community restitution and a $100 special assessment.
Chief United States District Court Judge Scott W. Skavdahl sentenced KEVIN OHLBERG, 35, of Cheyenne, Wyoming, on September 13, 2022, for possession with intent to distribute 50 grams or more of methamphetamine. He received a sentence of 60 months’ imprisonment, four years of supervised release, and was ordered to pay $500 in community restitution and a $100 special assessment.
Rhode Island Man Convicted of Defrauding Investors and Tax EvasionRead the Press Release
PROVIDENCE – A West Warwick man who conducted a decade-long Ponzi scheme that left some investors empty-handed and the Government seeking tax payments due to the Internal Revenue Service pleaded guilty this afternoon in federal court in Providence to wire fraud and tax evasion.
According to court documents, between 2008 and 2018, Thomas Huling, 58, orchestrated a scheme that raised approximately $14 million, and caused losses of more than $6 million to his victims. Huling defrauded investors by promoting several investment projects, including high-yielding bond trading platforms; a car emissions reduction technology; and an online advertising and marketing company. He solicited funds for these investments by representing, among other things, that the money would be used for the particular project he was promoting, and that the investments would achieve substantial returns with little or no risk within a short period of time. To enhance his credibility and build trust, Huling incorporated religion, the possibility of charitable good works, and association with well-known individuals into his sales pitches.
In truth, and contrary to his promises, Huling diverted investor money to fund a lavish lifestyle that included high-end vehicles, membership and golf fees at multiple country clubs, gambling, clothing, restaurants, vacations and travel, as well as improvements to his residence. He created and used multiple shell companies; opened over 50 bank accounts; and he engaged in convoluted financial transactions between various accounts before ultimately using the funds personally. When investors contacted Huling with concern about the status of their investments, Huling lulled them with false excuses and promises, and at other times avoided their calls. To appease certain investors, Huling used money raised from new investors to pay off earlier investors.
According to court documents, at the same time that Huling was defrauding his investors, he was also committing tax evasion. Between 2009 and April 2018, Huling reported no taxable income, paid no income taxes, and for certain years filed false and fraudulent individual and corporate income tax returns. To further hide his income, Huling used nominee bank accounts, and paid for personal expenses using cash and corporate debit cards. He also manipulated the books and records of his companies to record sham loans, titled personal assets in the name of shell companies, and made false statements to IRS special agents as to his income, expenses, and business activities.
Huling’s guilty plea is announced by United States Attorney Zachary A. Cunha and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
Huling is scheduled to be sentenced on December 19, 2022, and faces a maximum penalty of twenty years in prison for committing wire fraud, and five years in prison for committing tax evasion. He also faces a period of supervised release, restitution, forfeiture, and other monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Sandra Hebert of the District of Rhode Island are prosecuting the case.
IRS-Criminal Investigation and Federal Bureau of Investigation investigated the matter.
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Retired Law Enforcement Officer Receives 46 Months in Prison for Cruise Ship AssaultRead the Press Release
HONOLULU – United States District Judge Jill A. Otake sentenced John McAvay, 78, of Henderson, Nevada, on September 26, 2022, to 46 months of imprisonment and one year of supervised release for assault resulting in serious bodily injury. Judge Otake found McAvay guilty of the assault after a non-jury trial in May 2022.
Clare E. Connors, United States Attorney, said that according to court documents and information presented in court, on October 23, 2018, McAvay—a retired law enforcement officer—committed an unprovoked assault on an elderly passenger on a cruise ship, resulting in life-threatening and protracted injuries. McAvay then fled the scene of the assault and failed to render aid, call for help, or report the incident. The victim was airlifted from the cruise ship to the Hilo Medical Center in critical condition on October 25, 2018, and then to the Queen’s Medical Center, where he remained hospitalized for approximately one month. The victim was later transported to a hospital in California and then to a rehabilitation facility. As a result of the assault, the victim suffered from serious cognitive and physical impairments—including confusion, memory loss, and immobility—until his death on February 6, 2019. McAvay was arrested on October 28, 2018, after he was identified by another cruise ship passenger.
In finding McAvay guilty, Judge Otake stated that although McAvay “could have simply walked away,” he instead “sucker-punched” the victim in the head out of anger. The victim, Judge Otake found, posed “no threat” to McAvay. Judge Otake added: “There is also no doubt that Defendant McAvay acted cowardly, reprehensibly, and despicably.”
McAvay also was charged with involuntary manslaughter. The court found him not guilty of this count because it could not conclude beyond a reasonable doubt that a pre-existing cancer alone would not have caused his death.
The Federal Bureau of Investigation and the Coast Guard Investigative Service conducted the investigation that resulted in the prosecution. Assistant U.S. Attorneys Sara D. Ayabe and Chris A. Thomas handled the prosecution.
Repeat Felon Sentenced to 78 Months in Federal Prison for Illegal Possession of a Firearm While on Home Detention for Firearms OffensesRead the Press Release
INDIANAPOLIS – Donahvon Troutman, 33, of Indianapolis, was sentenced to 78 months in federal prison after pleading guilty to possession of a firearm by a convicted felon.
According to court documents, in February 2021, Troutman was serving the first of two consecutive home detention sentences for felony handgun convictions in Marion County, Indiana. On February 24, 2021, officers arrived at Troutman’s residence to conduct a community corrections compliance check. Troutman answered the door after officers knocked several times. Officers proceeded to search Troutman’s person and found marijuana in his pocket. Officers searched Troutman’s residence and found a loaded 9mm semiautomatic handgun in a bedroom closet. Troutman denied the firearm was his, but his fingerprint was found on the magazine inserted in the gun. Troutman was arrested and later released to home detention following a Community Corrections violation hearing.
Nine days after his home detention, Troutman removed his monitoring device and absconded from Community Corrections. On May 4, 2021, a federal grand jury returned an indictment against Troutman and a federal warrant was issued his arrest. Troutman also had four pending state arrest warrants issued by Marion County courts.
On September 2, 2021, officers located and attempted to apprehend Troutman. Troutman fled from the officers, struck a police car with his vehicle, and drove on the sidewalk at Eskenazi Hospital in broad daylight, successfully evading arrest. While fleeing, Troutman threw a handgun out of the vehicle, which was later recovered by police.
Troutman has five prior felony state court convictions for carrying a handgun without a license. Troutman is prohibited from possessing a firearm under federal and state law due to these felony convictions.
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 in conjunction with the Indianapolis Metropolitan Police Department. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Troutman 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 Jayson McGrath 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.
Renton Doctor Pleads Guilty to Conspiring to Accept Kickbacks in Connection with Fraudulent Genetic Testing SchemeRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Christopher B. Bjarke, M.D., age 61, of Renton, Washington, pled guilty to conspiring to accept kickbacks in connection with a fraudulent genetic testing scheme that targeted elderly Medicare beneficiaries throughout Washington and in other states. Senior District Judge Rosanna Malouf Peterson accepted Dr. Bjarke’s guilty plea, and set sentencing for January 10, 2023 at 1:30 p.m. in Spokane, Washington.
The Medicare program provides health insurance coverage for elderly and disabled Americans. Medicare generally provides coverage for diagnostic laboratory testing only if the test is ordered by a physician who is treating the beneficiary for a specific medical problem, and uses the test results to treat the patient for that specific problem. According to the Plea Agreement and information disclosed in court proceedings, Dr. Bjarke engaged in a conspiracy and scheme through which he placed orders for Medicare for genetic testing for Medicare beneficiaries in the Eastern District of Washington and elsewhere that he was not treating and with whom he had no physician-patient relationship. According to the Plea Agreement and other court documents, Dr. Bjarke’s sole contact with these patients was when he was connected with the beneficiaries for a telephone call for a few minutes through telemarketers. After Dr. Bjarke had ordered the tests, the laboratories then billed Medicare for the test, while another company billed Medicare for a purported “telemedicine” visit, sometimes for as much as tens of thousands of dollars.
According to the Plea Agreement, through this scheme and conspiracy, Dr. Bjarke’s orders were responsible for more than $18.6 million paid by Medicare. In return for his participation in the scheme, between December 2020 and September 2021, Dr. Bjarke received $167,996.73 from his co-conspirators, which Dr. Bjarke admitted were kickbacks because they constituted payment in return for ordering medically unnecessary genetic testing and other services for patients that he was not treating and with whom he had no physician-patient relationship.
“Health care fraud and kickback schemes are serious public health and safety problems,” said U.S. Attorney Waldref. “They divert precious public funds away from treating patients, drive up the cost of health care services, and undermine trust in our health care system, often putting quality health care beyond the reach of those who need it the most. Telemarketing schemes that target and exploit the elderly are especially pernicious because they prey on those who are often most in need of a doctor’s independent judgment that is not tainted or biased by the doctor’s own personal financial interest.”
“Dr. Bjarke placed making money above the welfare of patients and preyed upon elderly and vulnerable members of the community,” said Richard A. Collodi, Special Agent in Charge of the FBI’s Seattle Field Office. “This conspiracy not only victimized taxpayers via Medicare, but also impacted the patients, who underwent unnecessary medical screenings, thereby affecting their peace of mind. Medicare ultimately paid over $18 million for medically unnecessary testing, a fact that should outrage every law-abiding taxpayer.”
“I am grateful for, and commend, the stellar investigative work on this case performed by HHS OIG and the FBI,” said U.S. Attorney Waldref. “We will continue to work with our law enforcement partners to make our communities safer and stronger, by aggressively pursuing telemedicine kickback schemes, healthcare fraud, and elder abuse.”
The conspiracy offense carries a maximum sentence of up to five years in federal prison. The case was investigated by HHS OIG and the FBI. Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Quincy Real Estate Broker Sentenced for Real Estate Deposit ScamRead the Press Release
BOSTON – A Quincy real estate broker was sentenced in federal court in Boston today for operating a scheme in which he falsely marketed properties that were not for sale, or had already been sold, and then stole the buyers’ real estate deposits.
Michael P. Flavin, 39, was sentenced by U.S. District Court Judge Allison D. Burroughs to 30 months in prison and three years of supervised release. The Court reserved imposing a restitution order until a later date. On Dec. 17, 2021, Flavin pleaded guilty to two counts of wire fraud and two counts of aggravated identity theft.
Between 2017 and April 2020, Flavin solicited deposits on real estate transactions by marketing numerous real estate properties that were not actually for sale. In each case, Flavin executed purchase and sale agreements and received deposit checks from or on behalf of the potential buyers, even though the actual owners of the properties had not agreed to sell their properties or to sell them to those buyers. Flavin forged the signatures of the sellers on the purported purchase and sale agreements. Over this period of approximately three years, Flavin cashed more than 60 deposit checks totaling approximately $1.8 million.
United States Attorney Rachael S. Rollins and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Victor A. Wild of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Pleasant Hills Man Pleads Guilty to Social Security FraudRead the Press Release
PITTSBURGH - One resident of Pleasant Hills, Pennsylvania, pleaded guilty in federal court to a charge of Social Security fraud, United States Attorney Cindy K. Chung announced today.
Michael T. Onder, 53, of Pleasant Hills, Pennsylvania pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that from in and around July 2010 and continuing thereafter to in and around February 2016, Onder was the representative payee designated to receive Supplemental Security Income (SSI) benefits totaling $30,854.68 for the use and benefit of another person, but instead knowingly and willfully converted the benefits for his own use.
Judge Colville scheduled sentencing for February 7, 2022, at 11:00 a.m. The law provides for a total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Michael T. Onder.
Pittsburgh Felon Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment, returned yesterday, named Cecil Lee Pinnix, 53, formerly of the City’s Upper Hill District neighborhood, as the sole defendant.
According to the Indictment, Pinnix is alleged to have possessed with the intent to distribute 5 kilograms or more of cocaine, 40 grams or more of fentanyl, and 28 grams or more of cocaine base on or about July 29, 2022. Pinnix is also alleged to have possessed a firearm as a convicted felon on or about July 29, 2022.
The law provides for a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Admits Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A manager for a drug trafficking organization that purchased over 100 kilograms of cocaine in Puerto Rico and shipped the kilograms to residences in Philadelphia, Pennsylvania, and southern New Jersey today admitted his role in the conspiracy, U.S. Attorney Philip R. Sellinger announced.
Jose Gonzalez, 50, Philadelphia, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiring to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From March 2019 to August 2020, Gonzalez and other conspirators traveled on commercial flights from Philadelphia International Airport to San Juan, Puerto Rico, on numerous occasions. They purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Gonzalez and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to addresses in Philadelphia and southern New Jersey. Gonzalez resold the kilograms to other drug dealers in the Philadelphia area for a profit. Gonzalez admitted that he had a management role in the conspiracy, and that he and the other conspirators purchased and shipped over 100 kilograms of cocaine.
When Gonzalez was arrested in August 2020, agents seized over $120,000 in cash during a search of his residence in Philadelphia and a 9mm handgun from an auto garage that Gonzalez operated in Philadelphia. As part of his plea agreement, Gonzalez agreed to the forfeiture of the U.S. currency and the 9mm handgun, as well as the forfeiture of a Dodge Ram pickup truck that was used in connection with the drug trafficking conspiracy.
The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for Jan. 30, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Daniel Outlaw, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Oneida County Man Pleads Guilty to Mailing a Threatening LetterRead the Press Release
ALBANY, NEW YORK – Richard Hileman, age 39, of Marcy, New York, pled guilty today to mailing a threatening communication. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Hileman admitted that on September 3, 2021, he mailed a letter to a woman who lived in Ballston Spa, New York. In the letter, Hileman threatened the woman not to end her personal relationship with him. Hileman wrote, in part, “i have 2 different guns and a vest . . .” and “i told you before if you left me someone will pay people dont really know me once I set my mind it’s set if you contact anyone it will not be nice.” Hileman further wrote, in part, “. . . if you contact the jail or police your lovely kids wont have a mother i swear on my dead son they cant keep me forever I’ll get out one day.”
Hileman faces a maximum term of 5 years in prison, as well as post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and the New York State Department of Corrections and Community Supervision’s Office of Special Investigation, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Ocean View Woman Sentenced to 51 Months Imprisonment in Federal Fraud CaseRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Joan Donald, 55, of Ocean View, was sentenced today to 51 months in federal prison on federal wire fraud and tax evasion charges. Chief U.S. District Judge Colm F. Connolly pronounced sentence.
According to court documents and statements made in open court, Donald worked as an administrative assistant and quasi-bookkeeper for Dovetail, Inc., a high-end interior design and construction business located in Bethany Beach. Beginning in at least 2014, the defendant began defrauding Dovetail and its owner by paying herself a shadow salary, paying her personal credit card bills using the business’s bank account, and funneling money to her husband in various ways, including by fraudulent checks and Square payments. In total, the defendant embezzled more than $1.1 million from Dovetail and its owner.
U.S. Attorney Weiss commented on the sentence, “The owner of Dovetail, Connie Britell, was a force of nature who built her business from the ground up. Over the years, Ms. Britell placed more and more trust in the defendant, eventually giving the defendant control over company finances. The defendant abused that trust. Month after month for at least seven years, defendant Donald drained Dovetail’s accounts until there was nothing left. In doing so, the defendant exploited an elderly woman in declining health who had placed full faith in her. The defendant’s conduct was not only criminal, it was also cruel. Today’s sentence stands as a stark warning to those who prey on the elderly.”
"Justice has been served today and this defendant is on her way to federal prison for stealing from her employer, the American public, and the government,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Would-be criminals should take notice. A similar fate awaits anyone thinking about engaging in this type of criminal conduct.”
“Today’s sentence has put an end to Joan Donald’s flagrant actions and complete disrespect of the law. For years Donald was a trusted insider who preyed on her employer by stealing funds to financially enrich herself” stated Baltimore FBI Special Agent in Charge, Thomas J. Sobocinski. “Those who abuse their position of trust for their own financial greed will not be tolerated. The FBI and our partners will continue to uncover those committing fraud and causing harm to businesses and individuals for personal gain.”
Assistant U.S. Attorney Christopher R. Howland prosecuted the case, which was investigated by the FBI and IRS Criminal Investigation.
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 by searching for Case No. 22-cr-18-RGA.
New Haven Man Pleads Guilty to Fentanyl Trafficking ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ROY REID, also known as “Jama,” 34, of New Haven, pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to a fentanyl trafficking offense.
According to court documents and statements made in court, in the fall of 2021, the New Haven Safe Streets/Gang Task Force and New Haven Police Department began investigating a drug trafficking ring that was distributing fentanyl, heroin crack and cocaine in and around the West Hills neighborhood, including the McConaughy Terrace housing complex, in New Haven. The investigation included court-authorized wiretaps, fixed video surveillance and controlled purchases of narcotics. Between June 2021 and January 2022, investigators made five controlled purchases of fentanyl from Reid.
Reid pleaded guilty to one count of possession with intent to distribute, and distribution, of fentanyl, which carries a maximum term of imprisonment of 20 years. Judge Nagala scheduled sentencing for December 20.
Reid was arrested on a federal criminal complaint on April 5, 2022. He is released on a $150,000 bond pending sentencing.
In November 2013, Reid was sentenced in New Haven federal court to 26 months of imprisonment for a heroin trafficking offense.
This investigation is being conducted by the FBI’s New Haven Safe Streets/Gang Task Force with the assistance of the U.S. Postal Inspection Service. The Task Force includes participants from the New Haven Police Department, Milford Police Department, East Haven Police Department, West Haven Police Department, Connecticut State Police and the Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Kenneth L. Gresham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Nacogdoches Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Nacogdoches man has been sentenced for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Travis Lane Favro, 47, pleaded guilty on Nov. 4, 2021, to being a felon in possession of a firearm and was sentenced to 80 months in federal prison today by U.S. District Judge Michael Truncale.
According to information presented in court, on Oct. 16, 2019, law enforcement officers responded to a home in Nacogdoches where Favro had reportedly threatened to kill his parents. The officers went next door to Favro’s residence and found him barricaded inside. After a brief standoff, Favro surrendered and was arrested. Officers searched the residence and found a rifle and a shotgun as well as two homemade silencers. One of the silencers was attached to the rifle, which found near two large capacity magazines: one 60-round drum magazine and one 30-round magazine. The officers also discovered that one interior wall of the house was fortified with concrete blocks and gunports that opened to the outside. There was also a large television nearby that monitored multiple cameras placed outside the residence. Further investigation revealed Favro was a convicted felon having been previously found guilty in state court of felon in possession of a firearm and possession of a controlled substance. As a convicted felon, Favro is prohibited by federal law from owning or possessing firearms or ammunition. Favro was indicted on federal firearms violations on Nov. 6, 2019.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Nacogdoches Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.
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Moorhead Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS– A Moorhead man has pleaded guilty to illegally possessing a firearm, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on March 13, 2022, Martin Torres, Jr., 37, was arrested by the Clay County Sheriff’s Office after attempting to flee a traffic stop and resisting arrest. Following his arrest, officers conducted a search and found a loaded Hi-Point Model C-9, 9mm caliber pistol in Torres’s jacket. Because Torres has prior felony convictions in Clay County, Minnesota, Cass County, North Dakota, and U.S. District Court, he is prohibited under federal law from possessing firearms or ammunition at any time.
Torres pleaded guilty yesterday before Senior Judge Michael J. Davis to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clay County Sheriff’s Office.
Special Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Monongalia County man sentenced for role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Harry Anderson Sprouse, III, of Maidsville, West Virginia, was sentenced today to 12 months of incarceration for his role in a firearms conspiracy, United States Attorney William Ihlenfeld announced.
Sprouse, 53, pleaded guilty in May 2022 to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of Firearms.” Sprouse admitted to working with another to illegally purchase two pistols from a licensed dealer in December 2020 in Marion County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Michigan Farmer Agrees to $1.2 Million Settlement to Resolve Allegations of Federal Crop Insurance and Farm Benefit Program FraudRead the Press Release
GRAND RAPIDS – Gaylord D. Lincoln and G. Lincoln Farms, LLC, located in Springport, Michigan, have agreed to pay $1,200,000 to resolve allegations that they violated the False Claims Act by causing the submission of fraudulent claims for federal crop insurance and federal farm benefit payments. The settlement amount was negotiated based on the defendants’ ability to pay.
U.S. Attorney Mark Totten stated, “Michigan farmers depend on federal programs to provide economic security, and these agricultural programs are essential to the national wellbeing. But, in turn, USDA relies on farmers to tell the truth and play by the rules. My office is committed to working with our law enforcement partners to root out fraud on these programs.”
This settlement resolves civil claims the United States brought against the defendants in a December 2021 lawsuit. In its complaint, the United States alleged that the defendants defrauded the U.S. Department of Agriculture’s (“USDA”) Farm Service Agency (“FSA”) by operating a scheme to avoid benefit program payment limitations. Specifically, the United States alleged that the defendants placed their farmland and crops in the names of their employees, who served as a facade for defendants but had no financial risk or interest in the crops and had them enroll in FSA benefit programs. These individuals then provided the FSA benefit payments to the defendants. The United States further alleged that defendants caused these individuals to take out fraudulent federal crop insurance policies for these crops, even though they had no insurable interest in these crops, and that the proceeds of the policies went to the defendants.
Shantel R. Robinson, Special Agent-In-Charge, United States Department of Agriculture-Office of Inspector General (“USDA-OIG”), said, “The United States Department of Agriculture is committed to combatting crop insurance fraud through civil enforcement under the False Claims Act. Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer dollars from where they were intended. The United States Department of Agriculture, Office of Inspector General will continue its mission to investigate allegations of waste, fraud, and abuse in USDA programs.”
This settlement follows a related March 2022 civil settlement with the insurance agent and insurance agency that worked with the defendants.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan, USDA-OIG, and USDA’s Risk Management Agency. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The complaint and other filings in this case can be found on the Court’s online docket under United States v. Lincoln, No. 1:21-cv-1089 (W.D. Mich.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Leader of Oxycodone Distribution Network Sentenced for Decade-Long ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Front Royal woman was sentenced today to seven years in prison for being the ringleader of a decade-long oxycodone distribution network, sourcing high-dosage oxycodone pills from a doctor in Arlington.
According to court documents, Candie Marie Calix, 40, nominally worked as an office manager for a physician in Arlington, referred to in court records as Doctor-1. Between 2012 and 2022, Doctor-1 prescribed Calix nearly 40,000 oxycodone 30-mg pills and more than 9,000 oxycodone 15-mg pills. Doctor-1 also prescribed similar quantities of oxycodone 30-mg and 15-mg pills to Calix’s relatives, including her mother, grandparents, great-grandmother, brother, and husband. These quantities were far in excess of therapeutic doses, and Calix personally distributed or directed others to distribute most of the pills that Doctor-1 prescribed to Calix and her family members.
Calix functioned as the gatekeeper to Doctor-1; she recruited individuals she knew from around Front Royal to be “patients” of Doctor-1 and obtain large quantities of oxycodone. These “patients,” in turn, typically kicked back the oxycodone 30-mg pills they were prescribed to Calix to redistribute, and kept the oxycodone 15-mg pills for their own use. Calix recruited at least 12 individuals to be “patients” of Doctor-1—even though she knew them to be addicted to opiates already.
Calix and her co-conspirators used coded language to refer to the pills they distributed, for example, referring to oxycodone 30-mg pills as “tickets,” “blueberries,” or “muffins.” The co-conspirators typically sold oxycodone 30-mg pills at a cost of $25 per pill, and over the course of the conspiracy, generated at least $5,000 per month in profits. Calix agreed to entry of a money judgment of more than half a million dollars representing the proceeds of the conspiracy that she realized.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to the federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principle mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-115.
Lawrence Man Sentenced for Identity Theft and Social Security OffenseRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for misusing a Social Security number to fraudulently obtain a Massachusetts ID and driver’s license as well as MassHealth benefits.
Manuel Alejandro Pujols Diaz, 37, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 25 months in prison. On May 16, 2022, Pujols pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft.
Pujols used the name and Social Security number of another individual to submit fraudulent applications to the Massachusetts Registry of Motor Vehicles in July 2016, August 2016 and September 2016. As a result, Pujols obtained a Massachusetts ID and driver’s license under the victim’s identity as well as MassHealth benefits.
United States Attorney Rachael S. Rollins; Matthew Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Christopher A. Scharf, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, made the announcement today. The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit, prosecuted the case.
Kidnappers get huge sentences for three-day hostage ordealRead the Press Release
LAREDO, Texas – Two men have been ordered to federal prison following their convictions of kidnapping and holding four victims for ransom, announced U.S. Attorney Jennifer B. Lowery.
Jesus Ochoa, 27, Laredo, pleaded guilty March 2, while Luis Armando Garcia, 29, a Mexican citizen illegally residing in Laredo, pleaded guilty Feb. 28.
Today, U.S. District Judge Diana Saldana imposed a 186-month-term of imprisonment for Ochoa, while Garcia received 192 months. Garcia is expected to face removal proceedings following his sentence. At the hearing, the court heard from four victims who described what the two men put them through and the psychological impact the kidnapping had on them. In handing down the prison terms, Judge Saldana noted the violent nature of the offense and the defendants’ general lack of respect for the lives of others.
On Nov. 19, 2020, Ochoa and Garcia encountered four individuals who crossed the Rio Grande in Laredo and offered them a ride to San Antonio in exchange for payment.
They traveled to Garcia’s residence in Laredo, but actually told the group they were in San Antonio. They then forced all four individuals to call their family members and ask them to send $4,000 each for their release.
They held the group hostage at the residence for three days. During that time, they threatened each person with a firearm and repeatedly forced them to record videos and voice messages, make video calls, send text messages and call family members to beg for ransom money. On several occasions, Ochoa and Garcia directly spoke to the family members and told them if payment was not made, something would happen to the hostages.
Ultimately, family members contacted authorities who were able to obtain the general location from where the phone calls originated.
After noticing law enforcement, Ochoa and Garcia loaded the group back into a vehicle and transported them to an industrial park in Laredo. They dropped off the group and said they would return at a later time.
The victims were able to borrow a phone from a nearby truck driver and called for help. Authorities found all four individuals and transported them to safety.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Laredo Police Department conducted the investigation. Assistant U.S. Attorney Michael Makens prosecuted the case.
Kevin Ritz Sworn in as United States AttorneyRead the Press Release
Kevin Ritz United States Attorney Western District of TennesseeMemphis, TN – Kevin G. Ritz was sworn in September 28, 2022, as United States Attorney for the
Western District of Tennessee. In a brief ceremony at the federal courthouse in Memphis, Chief
U.S. District Court Judge S. Thomas Anderson administered the oath of office, in front of
Ritz’s family and U.S. Attorney’s Office colleagues. Ritz was nominated by President Joe Biden on
July 29, 2022, and he was unanimously confirmed by the United States Senate on September 22, 2022.
As United States Attorney, Kevin is the chief federal law enforcement officer in West Tennessee.Ritz stated: “It is an honor to lead the office where I have worked for 17 years. I’ve dedicated
my career to serving the United States, and I can’t wait to start this next chapter. I want to
thank President Biden for nominating me, the Senate for confirming me, and Congressman Cohen for
recommending me for this position.”“I look forward to working with my colleagues and our partners to promote and defend the interests
of our country throughout the 22 counties of West Tennessee. We have a lot of work to do, and I’m
ready to get going.”Kevin G. Ritz is a Memphian who has dedicated his entire career to federal public service. He has
been an Assistant United States Attorney in the United States Attorney’s Office for the Western
District of Tennessee since 2005. He started in the narcotics unit prosecuting drug, firearm,
robbery, carjacking, and other offenses. He later held various leadership positions in the office,
including serving as Appellate Chief and Special Counsel for over a decade. He has written more
than 200 appellate briefs and argued 37 cases in the federal courts of appeals.Ritz has twice served on the Department of Justice’s Appellate Chiefs Working Group. From 2020 to
2021, he was the Chair of the Tennessee Bar Association’s Appellate Practice Section, and in 2017
Ritz was the President of the Federal Bar Association’s Memphis Chapter. From 2008 to 2016, Ritz
was an Adjunct Professor at the University of Memphis Cecil C. Humphreys School of Law.Before his tenure in the U.S. Attorney’s Office, Ritz clerked for Judge Julia S. Gibbons of the
United States Court of Appeals for the Sixth Circuit. Between college and law school, Mr. Ritz
worked for the United States Department of State.Mr. Ritz received his J.D. from the University of Virginia, his M.S. in Foreign Service from
Georgetown University, and his B.A. with High Distinction from the University of Virginia, where he
was a Jefferson Scholar. He is a product of Memphis City Schools and graduated from White Station
High School. He and his family live in midtown Memphis.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or
[email protected]. Follow @WDTNNews on Twitter for office news
and updates.
Kenton County Woman Sentenced to 28 Months for Wire FraudRead the Press Release
COVINGTON, Ky. —An Independence, Ky., woman, Hachelle Alsip, 42, was sentenced on Wednesday to 28 months in federal prison, by U.S. District Judge David Bunning, for wire fraud.
According to Alsip’s plea agreement, in 2016, Victory Mortgage hired her as a loan funding representative to assist, in part, with distribution of funds with loans provided by the lending company to its borrowers. In 2021, Alsip caused two wire transfers totaling $507,000 to be made from one of Victory Mortgage’s business checking accounts, into a personal bank account belonging to her and her husband.
Alsip pleaded guilty in June 2022.
Under federal law, Alsip must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Michael Helmig, Boone County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI and the Boone County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Kyle Winslow.
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Justice Department Will Award $57 Million to Support Justice System Reforms and Racial EquityRead the Press Release
The Department of Justice today announced that it will award almost $57 million to support criminal justice reform and advance racial equity in the criminal justice system. The grants will advance the department’s goal to promote fairness in the nation’s courts and corrections systems and align criminal justice practices with the latest science.
“Equal justice is not a self-executing proposition — it takes work to make it real — and it will take a collective commitment from all of us at the federal, state and local levels to bring that ideal to life,” said Associate Attorney General Vanita Gupta. “These investments make good on a pledge by the Justice Department to promote public safety and realize the promise of a just society that recognizes the dignity and humanity of everyone.”
Funding will support efforts at the state, territory, local and Tribal levels to institute more effective and equitable criminal justice policies and practices. Funding will also support strategies to ensure the protection of defendants’ and incarcerated individuals’ constitutional rights and safety and efforts to address wrongful convictions. The grants are administered by the department’s Office of Justice Programs.
The Department of Justice, through OJP, is working to advance equity and effectiveness in the justice system. Below is a summary of awards that support justice system reforms and advance racial equity:
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OJP’s Bureau of Justice Assistance is awarding eight million dollars under the Field Initiated: Encouraging Innovation program, designed to support new and innovative strategies that better enable criminal justice systems to prevent and respond to emerging and chronic challenges, including strategies that will increase opportunities for diversion, reform pretrial processes, build police-community trust and promote restorative justice and racial equity.
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BJA is awarding five million dollars under the National Initiatives - Justice for All: Effective Administration of Criminal Justice Training and Technical Assistance Program, which assists state, local and Tribal jurisdictions in reducing crime and improving the functioning of the criminal justice system, specifically through support for statewide strategic planning and protection of constitutional rights under the Sixth Amendment.
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BJA is awarding $9.8 million under the Justice Counts Implementation Program, which helps states adopt a core set of criminal justice metrics so that policymakers have access to actionable data to make policy and budgetary decisions.
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BJA is awarding three million dollars under its Reimagining Justice: Testing a New Model of Community Safety initiative, which will fund the development and testing of a new or innovative approach to improving community safety and trust that is an alternative to traditional enforcement mechanisms for neighborhoods experiencing high rates of less serious and low-level criminal offenses.
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OJP’s Office for Victims of Crime is awarding nearly $300,000 under the Developing Greater Understanding of the Needs of and Resources for Victims of Criminal Justice System-Related Harm program to better understand the service needs of persons affected by a criminal justice system error or failure, develop best practices to identify these victims, determine whether services currently exist that can meet the needs of this victim population and offer recommendations for appropriate service delivery, resources, partnerships and tools.
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OVC is awarding five million dollars under the Bridging Inequities - Legal Services and Victims' Rights Enforcement for Underserved Communities program to increase access to legal assistance for victims of crime in underserved communities by building and training a cadre of 20 legal fellows to be hosted by organizations across the nation and located in underserved communities.
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OVC is awarding $4.9 million under the Enhancing Access to Victim Services program to improve and expand the availability of accessible victim-centered, trauma-informed services for crime victims who are disabled, deaf, hard-of-hearing, limited English proficient, blind and/or visually impaired; fund accessible direct services for these victims; provide dedicated training and technical assistance to assist victim-serving organizations with the development and implementation of accessibility plans; and identify innovative approaches to serving these victims for replication within the field.
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OVC is awarding two million dollars to Ujima to support the National Center on Violence Against Women in the Black Community, which will provide microgrants to victim-serving organizations run by/for the communities they serve with the overarching goal of increasing the number of victims accessing services in historically marginalized and underserved communities.
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OJP’s National Institute of Justice is awarding almost $800,000 under its Racial and Ethnic Disparities in the Justice System: A Study of Existing Evidence and Public Policy Implications program, which will support a comprehensive evidence-based analysis of existing evidence to examine how observed racial and ethnic disparities in the justice system might be reduced through public policy.
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BJA is awarding $2.9 million under the National Training and Technical Assistance: Capital Case Litigation Initiative, which helps states minimize the potential for error in the trial of capital cases, improve the quality of legal representation provided to indigent defendants in state capital cases and support state prosecutors in developing and implementing appropriate standards of practice and qualifications.
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BJA is awarding $7.6 million under its Upholding the Rule of Law and Preventing Wrongful Convictions Program, which supports efforts by wrongful conviction review entities that represent individuals with post-conviction claims of innocence to review individual cases.
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BJA is awarding $6.5 million under the Postconviction Testing of DNA Evidence program, which helps defrays costs associated with postconviction case review, evidence location and DNA testing in violent felony cases (as defined by state law) where the results of such testing might show actual innocence.
In addition to the awards described above, Atlanta’s Clark University received $1.2 million under NIJ’s Research and Evaluation on Violence Against Women portfolio to conduct a campus climate survey at three Historically Black Colleges and Universities. NIJ has also awarded $2.7 million in grants under the W.E.B. Du Bois Program of Research on Reducing Racial and Ethnic Disparities in the Justice System to perform rigorous research that will help build knowledge about the connections between race, crime, violence and the administration of justice in the United States. Those grants were announced earlier and are not included in the total for this announcement.
More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Justice Department Secures Agreement with Lakeland Bank to Address Discriminatory RedliningRead the Press Release
The Justice Department announced today an agreement to resolve allegations that Lakeland Bank (Lakeland) engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey. This resolution is part of the Justice Department’s nationwide Combating Redlining Initiative and represents the third-largest redlining settlement in department history.
“Financial institutions that refuse to provide mortgage lending services to communities of color not only contribute to the persistent racial wealth gap that exists in this country, but also violate federal law,” said Attorney General Merrick B. Garland. “The agreement with Lakeland announced today represents the Justice Department’s continued commitment to addressing modern-day redlining, and to ensuring that all Americans have equal opportunity to obtain credit, no matter their race or national origin.”
“Ending redlining is a critical step in our work to close the widening gaps in wealth between communities of color and others,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement demonstrates our firm commitment to combating modern day redlining and holding banks and other lenders accountable when they deny people of color equal access to lending opportunities. Through this agreement, we are sending a strong message to the financial industry that we will not stand for discriminatory and unlawful barriers in residential mortgage lending.”
“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “It is wholly unacceptable that redlining persists into the 21st Century, and this case demonstrates our commitment to combating redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending.”
Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities. The complaint filed in federal court today alleges that from at least 2015 to 2021, Lakeland failed to provide mortgage lending services to Black and Hispanic neighborhoods in the Newark, New Jersey, metropolitan area, that all its branches were located in majority-white neighborhoods and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Newark.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the District of New Jersey along with a complaint, Lakeland has agreed to do the following:
- Invest at least $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area; $750,000 for advertising, outreach and consumer education; and $400,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
- Open two new branches in neighborhoods of color, including at least one in the city of Newark; ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark; and employ a full-time Community Development Officer who will oversee the continued development of lending in neighborhoods of color in the Newark area.
- Maintain an expanded Community Reinvestment Act Assessment Area that includes Essex, Somerset and Union counties.
Lakeland has agreed to settle this matter without contested litigation and worked cooperatively with the department to remedy the redlining concerns that were identified.
In October 2021, Attorney General Merrick B. Garland launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state Attorneys General offices. Since the initiative was launched, the department has announced four redlining cases and settlements with a combined $38 million in relief for communities that have been the victims of lending discrimination. This includes the $20 million settlement with Trident Mortgage Company — the second largest settlement in Justice Department history.
Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. 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. Individuals may also report civil rights violations through https://www.justice.gov/usao-nj/civil-rights-enforcement or call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339. View the Spanish translation of this press release here.
Justice Department Secures Agreement with Lakeland Bank to Address Discriminatory RedliningRead the Press Release
To view press conference, click here.
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and Justice Department announced today an agreement to resolve allegations that Lakeland Bank engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey. This resolution is part of the Justice Department’s Combatting Redlining Initiative and represents the third-largest redlining settlement in department history.
“Financial institutions that refuse to provide mortgage lending services to communities of color not only contribute to the persistent racial wealth gap that exists in this country, but also violate federal law,” Attorney General Merrick B. Garland said. “The agreement with Lakeland announced today represents the Justice Department’s continued commitment to addressing modern-day redlining, and to ensuring that all Americans have equal opportunity to obtain credit, no matter their race or national origin.”
“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated,” U.S. Attorney Philip R. Sellinger said. “It is wholly unacceptable that redlining persists into the 21st Century, and this case demonstrates our commitment to combatting redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending.”
“Ending redlining is a critical step in our work to close the widening gaps in wealth between communities of color and others,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This settlement demonstrates our firm commitment to combatting modern day redlining and holding banks and other lenders accountable when they deny people of color equal access to lending opportunities. Through this agreement, we are sending a strong message to the financial industry that we will not stand for discriminatory and unlawful barriers in residential mortgage lending.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. The complaint filed in federal court today alleges that, from at least 2015 to 2021, Lakeland failed to provide mortgage lending services to Black and Hispanic neighborhoods in the Newark metropolitan area, that all its branches were located in majority-white neighborhoods, and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Newark.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the District of New Jersey along with a complaint, Lakeland has agreed to do the following:
- Invest at least $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area; $750,000 for advertising, outreach and consumer education; and $400,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
- Open two new branches in neighborhoods of color, including at least one in the city of Newark; ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark; and employ a full-time Community Development Officer who will oversee the continued development of lending in neighborhoods of color in the Newark area.
- Maintain an expanded Community Reinvestment Act Assessment Area that includes Essex, Somerset and Union counties.
Lakeland has agreed to settle this matter without contested litigation and worked cooperatively with the department to remedy the redlining concerns that were identified.
In October 2021, Attorney General Merrick B. Garland launched the Justice Department’s Combatting Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state attorneys general offices. Since the initiative was launched, the department has announced four redlining cases and settlements with a combined $38 million in relief for communities that have been the victims of lending discrimination. This includes the $20 million settlement with Trident Mortgage Company—the second largest settlement in Justice Department history.
Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. 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. Individuals may also report civil rights violations through the https://www.justice.gov/usao-nj/civil-rights-enforcement or may call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Civil Rights Division, Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division, and Trial Attorney Jennifer Slagle Peck, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.