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Wednesday 28 September 2022
Justice Department Announces Total Distribution of over $4 Billion to Victims of Madoff Ponzi SchemeRead the Press Release
The Department of Justice announced today that the Madoff Victim Fund (MVF) began its eighth distribution of approximately $372 million in funds forfeited to the U.S. government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme.
In this distribution, payments will be sent to 27,219 victims across the globe, bringing their total recovery to 88.35%. The total amount distributed now exceeds $4 billion to more than 40,000 victims as compensation for losses they suffered from the collapse of BLMIS.
According to court documents and information presented in related proceedings, for decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded 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.
“The Criminal Division is proud to continue providing compensation to victims through the largest remission process the Department has overseen,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “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.”
“This Office continues its historic work seeking justice for the victims of Madoff’s heinous crimes,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s additional payments of $372 million by this Office and the 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.”
“The damage perpetrated by Bernard Madoff in history’s largest Ponzi scheme reverberates around the world, devastating thousands of victims,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The funds distributed today are approximately $372 million, alongside the funds distributed previously now totaling over $4 billion, showing our unwavering commitment to bringing justice to the victims of Madoff’s greedy crimes.”
On June 29, 2009, then-U.S. District Judge Denny Chin sentenced Madoff to serve 150 years in prison for running the largest fraudulent scheme in history. Of the over $4 billion that has been made available to victims, approximately $2.2 billion was collected as part of the historic 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. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff, and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of Madoff’s crimes and the recovery of assets supporting the forfeiture in this case.
Former Chairman Richard Breeden of the U.S. Securities and Exchange Commission oversees the MVF in his capacity as Special Master appointed by the Justice Department to assist with the victim remission proceedings. The Department also acknowledges the continued sacrifice of numerous individuals due to the COVID-19 pandemic, who worked in challenging conditions to ensure that this distribution occurred and remained on schedule.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].
Jury Finds Merced Man Guilty of Sexual Assault in Yosemite National ParkRead the Press Release
FRESNO, Calif. — After a six–day trial, a federal jury found Ramonchito Racion, 52, of Merced, guilty today of one count of attempted sexual abuse and one count of abusive sexual contact, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Racion, who was working as a cook in Yosemite in the summer of 2019, sexually assaulted his roommate while the roommate was sleeping.
This case is the product of an investigation by the National Park Service. Assistant United States Attorneys Michael G. Tierney and Justin J. Gilio are prosecuting the case.
Racion is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Jan. 20, 2023. Racion faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jury Convicts MS-13 Gang Member of Kidnapping and MurderRead the Press Release
FRESNO, Calif. — On Friday, Sept. 23, 2022, a jury found Israel Alberto Rivas Gomez, 27, a citizen of El Salvador unlawfully residing in Mendota, guilty of kidnapping and murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.
According to court documents and evidence presented at trial, Rivas Gomez was a member of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. On Dec. 18, 2017, Rivas Gomez and other MS-13 gang members kidnapped a 19-year-old man in Mendota, drove him to a remote location approximately 30 minutes away, and used a knife and machete to murder him, all in furtherance of MS-13’s criminal gang enterprise.
“This conviction is the culmination of years of incredible teamwork between our federal, state, and local law enforcement partners,” said U.S. Attorney Talbert. “In August 2018, we announced the arrest of 25 individuals, including Rivas Gomez, associated with the MS-13 gang after investigators found evidence of broad criminal activity centered in and around the Central Valley town of Mendota. This defendant murdered a young man and brought untold harm to the victim’s family. The U.S. Attorney’s Office is committed to dismantling criminal enterprises like MS-13, and, equally important, to vindicating the rights of victims and seeking justice for their family members and loved ones.”
“This case highlights the importance and advantage of employing a collaborative investigative approach to disrupt MS-13’s violent activity in California’s central valley,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation Sacramento Field Office. “The FBI is deeply committed to mitigating the threat of violent criminal organizations nationwide and, locally, we are proud of the strong relationships we have with our law enforcement partners. Together, we can ensure a safer future for central valley families that deserve to live, work, and play without fear.”
“This verdict represents another important victory in the ongoing effort to rid our neighborhoods of violent transnational street gangs like MS-13 who terrorize our communities and commit the most heinous violent acts against their victims,” said HSI San Francisco / NorCal Special Agent in Charge Tatum King. “Bringing this criminal to justice is a direct result of the strong partnerships between HSI agents/analysts, and local and federal law enforcement officers and prosecutors who are all in this fight together. We will remain diligent in our pursuit of transnational criminal organizations that show no regard for the law or human life.”
This case is the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the California Department of Justice and the California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson, Christopher D. Baker, and Kimberly Sanchez prosecuted the case.
Rivas Gomez is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Dec. 16, 2022. Rivas Gomez faces a mandatory statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Iowa City Man Sentenced to Federal Prison for Failure to RegisterRead the Press Release
DAVENPORT, IA – Stephen Claude Ramond Pickett, age 46 of Iowa City, was sentenced on Monday, September 26, 2022, to 30 months in prison following his guilty plea to a charge of Failure to Register. Pickett was also ordered to serve 10 years of supervised release following his prison term.
According to court documents, Pickett was convicted of a sex offense in Illinois, which required him to register as a sex offender annually and for life under state law. Pickett knowingly completed his annual registry update with a new address in Cook County, Illinois but was issued an Iowa driver’s license with an Iowa address the next day. Given the Illinois requirement, Pickett was required to register as a sex offender in Iowa, which he never did.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Marshals Service and the Iowa Department of Public Safety, Division of Criminal Investigation investigated the case.
Indianapolis Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND-Erasmo Martinez, 44, of Indianapolis, Indiana, was sentenced by United States District Court Chief Judge Jon DeGuilio on his plea of guilty to conspiracy to distribute more than 400 grams of fentanyl, announced United States Attorney Clifford D. Johnson.
Martinez was sentenced to 70 months in prison.
According to documents filed in the case, in March 2019, Martinez conspired with others to deliver almost four kilograms of fentanyl to an individual working with law enforcement. Martinez was also held responsible for coordinating three deliveries of ounce quantities of heroin in January 2019.
This case was investigated by the Drug Enforcement Administration Indiana High Intensity Drug Task Force Area. The case was prosecuted by Assistant United States Attorney Thomas M. McGrath.
Huntington Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – David Anthony Wellman, 38, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on December 7, 2021, Wellman sold approximately 4.8 grams of fentanyl to a confidential informant in a parking lot off of U.S. Route 60 in Huntington. Wellman admitted to selling the fentanyl and to possessing an additional 15.2 grams of fentanyl during the transaction that he also intended to sell.
Wellman is scheduled to be sentenced on January 9, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force and the West Virginia State Police.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that has sought to reduce the supply of deadly synthetic opioids in high impact areas.
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-102.
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Honolulu Man Receives Seven and a Half Years in Prison for Transportation of Child PornographyRead the Press Release
HONOLULU – Today, United States District Judge Jill A. Otake sentenced Kenneth Lim, 33, of Honolulu, to seven and a half years of imprisonment and 15 years of supervised release for transportation of child pornography. Lim previously pleaded guilty to the child pornography offense on March 2, 2022.
According to documents and information presented in court, Lim admitted that, on January 6, 2019, he arrived at the Honolulu International Airport aboard a flight from Japan with thousands of sexually explicit images and videos of minor girls ranging in age from approximately six to 13 years old stored on his electronic devices. After another flight to Honolulu in December 2019, law enforcement caught Lim at the airport with additional images of child pornography on his electronic devices. Further, in his plea agreement, Lim admitted that he told federal agents he previously had been arrested in Japan in 2016, for conduct related to his online contact with over one hundred minor girls around the ages of 10 to 12 years old. He used social media applications to engage these minors and admitted to having exchanged nude images with some of them.
“Lim’s conduct demonstrates the way predators utilize social media to exploit children, as well as the fact they store the pornographic images of their victims on their electronic media,” said U.S. Attorney Clare E. Connors. “The law provides substantial prison terms for sexual exploitation of children, and it was appropriate that Lim received one in this case.”
“Child sex abuse is one of the most serious crimes HSI investigates,” said John F. Tobon, Special Agent in Charge, HSI Honolulu. “HSI is proud to work closely with our law enforcement partners to protect communities from egregious repeat offenders like Lim.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations conducted the investigation that resulted in the charge. Assistant U.S. Attorneys Christine Olson and Rebecca A. Perlmutter prosecuted the case.
Honolulu Man Pleads Guilty to Sabotaging Former Employer’s Computer NetworkRead the Press Release
HONOLULU – Casey K. Umetsu, Sr., age 40, of Honolulu, Hawaii, pled guilty today before United States District Judge Jill A. Otake to sabotaging his former employer’s computer network. Sentencing is set for January 19, 2023.
According to court documents and information presented in court, Umetsu worked as an information technology professional for a prominent Hawaii-based financial company between 2017 and 2019. In that role, Umetsu was responsible for administering the company’s computer network and assisting other employees with computer and technology problems. As part of his guilty plea, Umetsu admitted that, shortly after severing all ties with the company, he accessed a website the company used to manage its internet domain. After using his former employer’s credentials to access the company’s configuration settings on that website, Umetsu made numerous changes, including purposefully misdirecting web and email traffic to computers unaffiliated with the company, thereby incapacitating the company’s web presence and email. Umetsu then prolonged the outage for several days by taking a variety of steps to keep the company locked out of the website. Umetsu admitted he caused the damage as part of a scheme to convince the company it should hire him back at a higher salary.
“Umetsu criminally abused the special access privileges given to him by his employer to disrupt its network operations for personal gain,” said U.S. Attorney Clare E. Connors. “Those who compromise the security of a computer network – whether government, business, or personal – will be investigated and prosecuted, including technology personnel whose access was granted by the victim.”
“This is a great example of a company partnering, and working with the FBI, to catch a former employee who sabotaged their network for their own personal gain,” said FBI Special Agent in Charge Steven Merrill. “We encourage companies to include the FBI as part of their cybersecurity incident plan so we can assist when they have a cyber incident.”
Umetsu faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This conviction is the result of an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Rebecca A. Perlmutter and Wayne A. Myers are handling the prosecution.
High Ranking MS-13 Leader Sentenced to Life ImprisonmentRead the Press Release
ALEXANDRIA, Va. – A White Post man was sentenced yesterday to life imprisonment for his leadership role in multiple violent crimes, including a 2017 murder in Charlottesville and two 2019 attempted murders in Prince William County.
According to court documents and evidence presented during a three-week trial of his co-defendants, Andy Tovar, 33, was the First Word or leader of the Guanacos Lil Cycos Salvatruchas (GLCS) clique of MS-13. Tovar is considered to be one of the highest-ranking MS-13 members in the United States.
In July 2017, Tovar authorized members and associates of the GLCS clique to travel from Prince William County to Charlottesville to murder an individual the GLCS clique believed was a rival gang member (Victim-1). At Tovar’s direction, on or about July 3, 2017, four members of the GLCS clique stabbed Victim-1 to death over 140 times using a machete and knives before they dumped Victim-1’s body in a river, burned his car, and fled back to Prince William County. Victim-1 was struck so hard by the machete that the machete’s handle broke. The following day, Tovar celebrated the Fourth of July with two of his co-conspirators and congratulated them on what they had done for the clique.
In March 2019, Tovar’s co-defendant, Roberto Cruz Moreno, 22, aka “Solo,” of Woodbridge, who was a “chequeo” or soldier in the GLCS clique under Tovar, picked up three other members or associates of GLCS and Victim-2 and drove them to an isolated area in Bristow. There, one associate of GLCS, using a firearm supplied by Tovar, shot Victim-2 multiple times and another associate of GLCS attempted to slit Victim-2’s throat and stabbed him because members and associates of GLCS believed Victim-2 was disrespecting MS-13. Following the attempted murder, Cruz Moreno fled the scene with the three other GLCS participants and drove them to his residence. Tovar informed MS-13 leadership in El Salvador of this attempted murder and mocked the GLCS associate who shot Victim-2 for being unable to kill Victim-2.
In April 2019, local law enforcement officers in Fairfax County found Cruz Moreno in possession of the same firearm used to shoot Victim-2, and several grams of packaged cocaine in his vehicle with three other associates of GLCS. Cruz Moreno obtained the cocaine from Tovar and had been selling the cocaine on behalf of the clique.
In July 2019, Tovar’s co-defendant, Marvin Torres, 21, aka “Trance,” of Manassas, a chequeo in GLCS, identified Victim-3 as a rival gang member living in GLCS-controlled territory, and provided photographs of Victim-3 to GLCS members, including Tovar.
On August 3 and 4, 2019, Tovar’s co-defendant Jose Rosales Juarez, aka “Gears,” 27, of Manassas, a “paro,” an entry level member of the GLCS clique, surveilled Victim-3 at a restaurant in Manassas, and discussed plans to kill Victim-3 with Tovar.
On August 12, 2019, Tovar’s co-defendant, Kevin Perez Sandoval, 21, aka “Nocturno,” of Warrenton, an “observacion”, or lower level soldier in the GLCS clique, and two members or associates of GLCS observed Victim-3 at a laundromat in Manassas and sought Tovar’s permission to kill Victim-3 at the laundromat. After Tovar granted permission, Perez Sandoval drove the two members or associates of MS-13 to retrieve a firearm, and back to the laundromat area, where Victim-3 was shot twice before Perez Sandoval drove them from the scene of the shooting. Tovar then directed his co-conspirators in evading law enforcement detection by relaying information from Torres, who was watching law enforcement at the site of the shooting, and helping the co-conspirators find new transportation and a hotel room with the assistance of Rosales Juarez.
Tovar pleaded guilty to conspiracy to commit murder in aid of racketeering activity, attempted murder in aid of racketeering activity, assault with a dangerous weapon in aid of racketeering activity, and using and discharging a firearm during a crime of violence, all in relation to Victim-3. Tovar also pleaded guilty to conspiracy to distribute cocaine and marijuana.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek Gordon, Acting Special Agent in Charge of the Homeland Security Investigations Washington, D.C. field office; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Frank A. Tarentino III, Special Agent in Charge of the Drug Enforcement Administration, New York Division; Colonel Sean Reeves, Chief of Albemarle County Police; Douglas W. Keen, Chief of Manassas City Police; Peter Newsham, Chief of Prince William County Police; Amy Ashworth, Commonwealth Attorney for Prince William County; and Kevin Davis, Chief of Fairfax County Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Former Assistant U.S. Attorney Nicholas U. Murphy and Assistant U.S. Attorneys Nicholas J. Patterson, and Amanda Lowe prosecuted the case.
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. 1:20-cr-18.
Georgia Woman Indicted on Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Kiana Fiona Alphonse (28, Covington, Georgia) with conspiracy to commit bank fraud, seven counts of bank fraud, five counts of false representation of a Social Security number (SSN), and five counts of aggravated identity theft. If convicted, Alphonse faces up to 30 years in federal prison for each count of bank fraud and conspiracy to commit bank fraud, a consecutive mandatory minimum penalty of 2 years’ imprisonment for each aggravated identity theft count, and up to 5 years in prison on each false SSN representation count.
According to the indictment, Alphonse and her co-defendant, Anthony Jermaine Robinson, obtained the personally identifiable information (PII) of multiple victims. The co-defendants then obtained counterfeit driver licenses purportedly from Washington state and Delaware. The counterfeit driver licenses contained the PII of victims, but the picture of Alphonse. Using the PII, including the SSNs of victims, the counterfeit driver licenses, and documents created for fictitious businesses, Alphonse went into multiple banks and opened business bank accounts in the name of various victims. These bank accounts were then utilized, as part of a scheme to defraud multiple victims.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Columbia County Sheriff’s Office and the United States Secret Service Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Georgia Men Charged with Trafficking Dozens of Handguns into New YorkRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Patrick Polidore was arraigned by United States Magistrate Judge Steven I. Locke on charges that he and co-defendant Dennis Wolfolk conspired to purchase and illegally transport into New York more than two dozen handguns. Wolfolk is in federal custody at the Robert A. Deyton Detention Facility located in Lovejoy, Georgia, and will be removed to the Eastern District of New York for arraignment on the charges at a later date.
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 (ATF), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Anne T. Donnelly, Nassau District Attorney announced the charges.
“As alleged, these defendants illegally trafficked over two dozen guns across state lines, distributing them to street-level buyers in New York where at least 11 were then used in numerous violent crimes, including multiple shootings across Long Island,” stated United States Attorney Peace. “This office and our law enforcement partners will continue to vigorously investigate and prosecute those who exploit state and federal gun laws directly leading to deadly gun violence in our communities.”
Mr. Peace thanked the United States Attorney’s Office for the Northern District of Georgia, the ATF’s Atlanta Field Division, the Nassau County District Attorney’s Office, the Nassau County Police Department, and the Hempstead Police Department for their assistance in the investigation.
“Straw purchasers undermine federal laws and enable violent criminals to obtain firearms that destroy lives and devastate communities,” said ATF Special Agent in Charge DeVito. “This investigation was initiated by the ATF Long Island Firearms Task Force after a 2020 murder in Hempstead, NY. Evidence recovered by ATF led to Polidore. As alleged, further investigation revealed he conspired to illegally traffic approximately 27 firearms from Georgia to Long Island. ATF is on the frontline in the fight against firearms trafficking alongside our partners. We will use every resource to save lives and stop the flow of illegal guns into our communities. Thank you to our law enforcement partners, including: Nassau County Police Department’s Gang Investigation Squad, Nassau County District Attorney and Hempstead Police Department for all their work and effort.”
“The arraignment of defendant Patrick Polidore and continued investigation into defendant Dennis Wolfolk is a clear example how law enforcement working together continues to arrest and prosecute these criminals to ensure the safety of our neighborhoods. The defendants illegally transported dozens of handguns to Long Island and surrounding areas. Some of these weapons were used in the commission of multiple shootings and other violent crimes. We will continue to investigate all who break the law in order to reduce gun violence in all communities. Lastly, I would like to thank all of the investigators who assisted with this investigation for their commitment and dedication to suppressing crime,” stated NCPD Commissioner Ryder.
Nassau District Attorney Donnelly said: “Illegal firearms are flooding into Long Island every day and causing untold destruction. To date, our county law enforcement partners have seized 272 weapons in 2022. As of this date last year, that number was 193. Patrick Polidore and Dennis Wolfolk are part of that problem. These defendants allegedly conspired to purchase firearms in Georgia and trafficked those weapons to Long Island, where at least 11 of them have already been recovered at crime scenes. Stemming the flow of illegal weapons into Long Island requires great partners and I thank U.S. Attorney Breon Peace; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Nassau County Police Department for their work in bringing these alleged gun runners to justice.”
As alleged in an 11-count Indictment and detailed at Polidore’s arraignment, between October 2020 and January 2021, Polidore visited numerous federally licensed retailers and acted as the straw purchaser for approximately 27 handguns, many of which were purchased in rapid succession on the same date. For example, as alleged, on November 4, 2020, Polidore purchased six handguns at multiple locations in Georgia; on November 18, 2020, and November 23, 2020, he purchased a total of ten handguns. On federal records that document firearms transactions, Polidore falsely affirmed that he was the actual purchaser of the weapons when, in actuality, he had conspired with Wolfolk, who, as a convicted felon, was legally prohibited from possessing a firearm, to traffic the handguns to New York, where they were distributed to street-level buyers.
At least 11 of the handguns Wolfolk transported to New York have been recovered by law enforcement at crime scenes in and around Long Island. For example, shortly after Polidore’s November 4, 2020 purchase of six handguns from different retailers in Georgia, Wolfolk traveled to Long Island with the weapons. Within months, three of the firearms purchased by Polidore were recovered by police on Long Island:
- On January 13, 2021, during a traffic stop in Hempstead, New York—where Wolfolk had previously resided—three individuals, including a juvenile, were found in possession of a 9mm Ruger handgun purchased by Polidore. This gun was linked to an earlier shooting in Uniondale on November 25, 2020, in which unknown individuals fired shots at a vehicle. The shell casings from that shooting incident matched the firearm purchased by Polidore just two days earlier.
- On May 28, 2021, during a traffic stop in Patchogue, New York, police arrested an individual in possession of a .22-caliber Walther handgun purchased by Polidore.
- On October 3, 2021, police arrested an individual fleeing the scene of an armed robbery in Bethpage, New York, who was in possession of a .40-caliber Smith & Wessen handgun purchased by Polidore. This same firearm was subsequently linked to a shooting incident in Hempstead on December 16, 2020
Additionally, on December 22, 2020, police investigating the scene of a homicide in Hempstead, New York, located a gun box that had been purchased along with a .40-caliber Glock handgun by Polidore.
To date, the whereabouts of at least 16 firearms purchased by Polidore are still unknown.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Mark E. Misorek are in charge of the prosecution.
The Defendants:
PATRICK POLIDORE
Age: 32
Powder Springs, GeorgiaDENNIS WOLFOLK
Age: 29
Lovejoy, GeorgiaE.D.N.Y. Docket No. 22-CR-347 (JMA)
Franklin County Woman Admits Committing Pandemic Loan Fraud While Charged in Unrelated $727,000 EmbezzlementRead the Press Release
ST. LOUIS – A woman from Franklin County, Missouri on Wednesday admitted fraudulently applying for three Paycheck Protection Program loans while being prosecuted on an unrelated $727,000 embezzlement case.
On Aug. 3, 2020, Christen Diane Schulte pleaded guilty to two counts of wire fraud, two counts of bank fraud and one count of money laundering. She admitted embezzling funds from her employer and other individuals and entities associated with her employer. She then sought a series of delays in her sentencing.
On Wednesday, Schulte, 36, admitted that between March 22, 2021 and May 19, 2021, while awaiting that sentencing, she fraudulently applied for three PPP loans, designed to help save small businesses and jobs from economic losses due to the COVID-19 pandemic.
Schulte admitted lying on the loans when asked if she was facing or had been convicted of a felony, and when asked the same question about a felony involving fraud, bribery, embezzlement or a false statement in an application for a loan or for federal assistance.
She also lied about the gross income for the company, the “Mama Bear Cake Company.”
One application for a $13,691 loan was rejected due to her criminal history. A $13,566 loan was approved by a different financial institution. She then sought and received a “second draw” of $13,566 from that company, receiving the money on May 19, 2021.
Eight days later, Schulte was sentenced to six years and eight months in prison and ordered to pay $517,140 in the embezzlement case. She began serving that sentence on Aug. 30, 2021.
Schulte was indicted in the new case on Nov. 10, 2021. On Wednesday Schulte pleaded guilty in front of U.S. District Judge Matthew T. Schelp to three more counts of bank fraud.
She is scheduled to be sentenced December 28 and could face up to 30 years in prison on each count. She faces an additional penalty of up to ten years for committing her crimes while on pre-trial release in the embezzlement case.
The FBI investigated this case. Assistant U.S. Attorney Kyle T. Bateman is prosecuting the case.
Former prisoner transport officer convicted of civil rights offense for abusing detainees in his careRead the Press Release
WASHINGTON – Former prisoner transport officer Anthony Buntyn, 55, was convicted of a felony civil rights offense for abusing detainees in his care.
According to court documents and evidence presented at trial, Buntyn was a prisoner transport officer employed by Prisoner Transportation Services of America (PTS), a company hired by local jails and prisons throughout the country to transport people who had been arrested pursuant to out-of-state warrants and needed to be transported back to the states that had issued the warrants. Buntyn was the supervising officer on a March 2017 PTS transport that stopped in New Mexico during a cross-country trip.
“Prisoner transport officers, even those employed by private companies, must abide by our civil rights laws and protect the constitutional rights of people in their custody,” said Assistant Attorney General Clarke. “The Justice Department will continue to vigorously enforce our nation’s laws to ensure that the officers who break the law — including those who are driving the nation’s backroads in transport vans and may therefore wrongly believe they can act with impunity — are held accountable.”
“Detainees are entitled to basic human dignity,” said U.S. Attorney Uballez. “Those who are responsible for their detention, from transport personnel to law enforcement and corrections officers, have the same duty to protect the rights and safety of their charges. Any abuse of detainees or failure to provide basic necessities is a violation of that trust and a violation of the law, and it will be roundly prosecuted.”
Former PTS Agent Buntyn was convicted of depriving detainees on the transport of their constitutional right to be free from an officer’s deliberate indifference to serious health and safety risks to the detainees. Evidence at trial established that the defendant knowingly created, and otherwise subjected the detainees to, dangerous, painful, and unhealthy conditions on the transport van. Specifically, evidence at trial showed that the defendant would retaliate against detainees who complained, by handcuffing the detainees behind their backs and forcing them to remain for hours in a small segregation cage inside the van; by depriving detainees of meals and access to water while they remained in the cage; by cranking up the heat in the already-hot van in retaliation for detainees complaining that, as they passed through the southwestern desert, they were in danger of overheating; and by failing to provide the detainees with required restroom breaks, until the detainees were left with no choice but to urinate in empty bottles or on the floor.
Buntyn was acquitted of a use of force and an obstruction of justice charge.
A date for the sentencing hearing has not yet been announced.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Alexander M.M. Uballez of the District of New Mexico made the announcement.
This case was investigated by the FBI Kansas City Field Office and was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley of the District of New Mexico and Trial Attorney Laura Gilson of the Justice Department’s Civil Rights Division, with assistance from Special Litigation Counsel Samantha Trepel.
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Former bookkeeper of federally funded domestic violence shelter sentenced to prison for misusing shelter funds on personal expensesRead the Press Release
CINCINNATI – The former bookkeeper of My Sister’s House, a now-shuttered domestic violence shelter in Washington Court House, Ohio, was sentenced in U.S. District Court today to 12 months in prison for crimes related to stealing funds from the shelter.
Jaime Cardinal, 46, of Washington Court House, was arrested in July 2020.
Cardinal spent tens of thousands of dollars intended for the operation of the shelter on personal expenses, including food, a trip to Disney World and Universal Studios for her daughter, and thousands of dollars in purchases from Avon, Thirty-One and iTunes.
Between January 2014 and October 2016, Cardinal and a coconspirator misused debit cards connected to the shelter’s bank accounts to make hundreds of personal purchases at restaurants, auctions, craft stores and bowling alleys, among other places – including purchases made when few, if any, victims were living at the shelter.
For example, in March and April 2016, when no victims were in the shelter, Cardinal and the coconspirator charged more than $6,000 to the shelter’s debit cards for food at restaurants and grocery stores, car repair and fuel for personal cars, weight-loss supplements, and other personal expenses.
Due to the thefts, which totaled more than $50,000, My Sister’s House fell behind on payroll and on paying taxes. In November 2016, the shelter’s board placed all employees on administrative leave pending further investigation. The domestic violence shelter—the only such shelter in Washington Court House—never reopened.
As part of her conviction, Cardinal will pay $25,000 in restitution. She was also sentenced to two years of supervised release following her term of imprisonment.
My Sister’s House received more than $10,000 annually in federal grant funds, including grants under the Violence Against Women Act, the Family Violence Prevention and Services Act and the Victims of Crime Act. The grants are intended to be used to pay for salaries and benefits of staff and for shelter operations, including supplies and shelter maintenance.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and the Department of Justice Office of the Inspector General announced the sentence imposed today by U.S. District Judge Matthew W. McFarland. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
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Former Prisoner Transport Officer Convicted of Civil Rights Offense for Abusing Detainees in His CareRead the Press Release
Former prisoner transport officer Anthony Buntyn, 55, was convicted of a felony civil rights offense for abusing detainees in his care.
According to court documents and evidence presented at trial, Buntyn was a prisoner transport officer employed by Prisoner Transportation Services of America (PTS), a company hired by local jails and prisons throughout the country to transport people who had been arrested pursuant to out-of-state warrants and needed to be transported back to the states that had issued the warrants. Buntyn was the supervising officer on a March 2017 PTS transport that stopped in New Mexico during a cross-country trip.
“Prisoner transport officers, even those employed by private companies, must abide by our civil rights laws and protect the constitutional rights of people in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce our nation’s laws to ensure that the officers who break the law — including those who are driving the nation’s backroads in transport vans and may therefore wrongly believe they can act with impunity — are held accountable.”
“Detainees are entitled to basic human dignity,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Those who are responsible for their detention, from transport personnel to law enforcement and corrections officers, have the same duty to protect the rights and safety of their charges. Any abuse of detainees or failure to provide basic necessities is a violation of that trust and a violation of the law, and it will be roundly prosecuted.”
Former PTS Agent Buntyn was convicted of depriving detainees on the transport of their constitutional right to be free from an officer’s deliberate indifference to serious health and safety risks to the detainees. Evidence at trial established that the defendant knowingly created, and otherwise subjected the detainees to, dangerous, painful, and unhealthy conditions on the transport van. Specifically, evidence at trial showed that the defendant would retaliate against detainees who complained, by handcuffing the detainees behind their backs and forcing them to remain for hours in a small segregation cage inside the van; by depriving detainees of meals and access to water while they remained in the cage; by cranking up the heat in the already-hot van in retaliation for detainees complaining that, as they passed through the southwestern desert, they were in danger of overheating; and by failing to provide the detainees with required restroom breaks, until the detainees were left with no choice but to urinate in empty bottles or on the floor.
Buntyn was acquitted of a use of force and an obstruction of justice charge.
A date for the sentencing hearing has not yet been announced.
Assistant Attorney General Clarke and U.S. Attorney Uballez for the District of New Mexico made the announcement.
This case was investigated by the FBI Kansas City Field Office and was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley for the District of New Mexico and Trial Attorney Laura Gilson of the Justice Department’s Civil Rights Division, with assistance from Special Litigation Counsel Samantha Trepel.
Former President of International Aircraft Parts Distributor Convicted of Multi-Million Dollar Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of STEFAN GILLIER, a/k/a “Stephan Gillier,” a/k/a “Stefan R.R. Gillier,” a/k/a “Roland Gillier,” a/k/a “Roland Van Gorp,” a Belgian citizen, for engaging in a conspiracy to fraudulently obtain over $6 million dollars’ worth of aircraft parts through the use of stopped check payments. The jury convicted GILLIER today following a one-week trial before U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Damian Williams said: “Today’s guilty verdict by a unanimous jury on all counts brings an end to Stefan Gillier’s long con, which began in 2004 and ultimately resulted in his arrest and extradition from Italy in 2019. Gillier defrauded aerospace manufacturers out of millions of dollars’ worth of aircraft parts through front companies, fake identities, and hundreds of stopped checks. He will now face sentencing for his crimes.”
According to the Indictment, documents previously filed in the case, and evidence introduced at trial:
GILLIER was president and ran the day-to-day business activities of RTF International Inc. (“RTF), a broker of aircraft parts. RTF began obtaining aircraft parts from Honeywell International, Inc. (“Honeywell”) in June 2004. Starting in 2005, RTF began increasing the number of parts it ordered from Honeywell, paying for them by check. RTF paid with checks written in foreign currency and for amounts well above the cost of the parts, which created an apparent credit balance in RTF’s favor in Honeywell’s accounting system. RTF wrote approximately $17 million worth of checks to Honeywell but stopped payment on approximately $15 million worth of checks. In total, RTF was able to obtain over $6 million worth of aircraft parts without paying for them. In June 2006, Honeywell executed a civil attachment order and recovered some of the stolen aircraft parts.
To execute the scheme, GILLIER signed checks to Honeywell on behalf of RTF but repeatedly caused stop payment orders to be placed after Honeywell shipped the parts to RTF. When questioned by Honeywell’s employees about these stop payment orders, GILLIER, using the alias “Roland Van Gorp,” falsely represented that the stop payment orders were the result of a misunderstanding with the bank and that he would check with RTF’s finance department. In fact, as GILLIER knew, he had issued the stop payment orders, and RTF did not have a finance department.
In June 2006, following the execution of the civil attachment order by Honeywell, GILLIER caused various large transfers of fraudulent proceeds into bank accounts controlled by him, his relatives, and a co-conspirator (“CC-1”). The very next day, on June 15, 2006, GILLIER left the United States for Canada.
After Honeywell discovered that it was being victimized by RTF, GILLIER and CC-1 continued their fraud scheme through a new corporate entity, “UN Air Services, Inc.” (“UAS”) (which had no relation to the United Nations). In 2006, UAS began obtaining aircraft parts from Pratt & Whitney Component Solutions, Inc. (“Pratt & Whitney”). Like RTF, UAS began stopping payment on checks it had written to Pratt & Whitney for the aircraft parts after Pratt & Whitney delivered the aircraft parts.
GILLIER was arrested and extradited from Italy in 2019.
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GILLIER, 49, a citizen of Belgium, was convicted of eight counts: (1) one count of conspiracy to commit mail fraud, wire fraud, interstate transportation of stolen property, and money laundering, which carries a maximum potential penalty of five years in prison; (2) one count of mail fraud, which carries a maximum potential penalty of 20 years in prison; (3) one count of wire fraud, which carries a maximum potential penalty of 20 years in prison; (4) one count of interstate transportation of stolen property, which carries a maximum potential penalty of 10 years in prison; and (5) four counts of money laundering, each of which carries a maximum potential penalty of 10 years 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 the judge. GILLIER is scheduled to appear for sentencing before Judge Engelmayer on January 26, 2023.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the U.S. Department of Defense, Defense Criminal Investigative Service. He also thanked the Federal Bureau of Investigation, the U.S. Marshals Service, the U.S. Department of Commerce, law enforcement and prosecutorial authorities in Italy, including the Italian Ministry of Justice and Interpol Rome, Honeywell, and Pratt & Whitney for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Italy.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Dina McLeod, Micah Fergenson, Michael McGinnis, and Michael Neff are in charge of the prosecution.
Former NHA Director of Information Technology Sentenced to Two Years in Prison for Embezzling over $590,000 Worth of Electronic DevicesRead the Press Release
NEWARK, N.J. – Newark Housing Authority (NHA)’s former director of information technology was sentenced today to 24 months in prison for using his position to embezzle NHA funds to purchase cellular telephones and other electronic devices, U.S. Attorney Philip R. Sellinger announced.
Venancio Diaz, 57, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with committing theft from an agency receiving federal funds. Judge Martinotti imposed sentence today by videoconference.
According to documents filed in this case and statements made in court:
From December 2013 to Aug. 10, 2021, Diaz bought, on behalf of NHA and using NHA funds, 1,509 electronic devices, primarily cellular telephones and tablets, from a telecommunications company. Diaz then caused those devices to be activated on NHA’s account on the company’s network for a short period of time – often only days or weeks. After the brief period of activation ended, Diaz posed as the owner of the devices and sold them to two different online electronics resale marketplaces. Diaz directed all the proceeds of the sales – a total of $594,425 – to his own bank accounts and kept the money for his own personal use.
In addition to the prison term, Judge Martinotti sentenced Diaz to three years of supervised release and ordered him to pay $594,425 in restitution to the NHA. Diaz also previously consented to a $594,425 money judgment, forfeiting the monies he obtained as a result of his illegal scheme, and also agreed to forfeit electronic devices belonging to NHA that were seized by law enforcement or otherwise in his possession, including 27 cellular telephones.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Christina D. Scaringi in Newark; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the IRS-Criminal Investigations for its assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Former Jacksonville Second-Grade Teacher Sentenced to More Than 7 Years in Federal Prison for Distributing Child Sexual Abuse Videos Using Social Media AppRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Thomas Lester Hazouri, Jr. (42, Jacksonville) to 7 years and 3 months in federal prison for distributing child sexual abuse videos over the internet using a social media messaging application (app). The court also ordered Hazouri to serve a 15-year term of supervised release, register as a sex offender, and pay child victims a total of $18,000 in restitution. Hazouri had pleaded guilty on August 24, 2021, and has been in custody since his arrest on September 4, 2020.
According to court documents and information offered in open court, the company that owns and hosts a particular online social media messaging app notified the National Center for Missing and Exploited Children that on March 26, 2020, one of its app users, later identified as Hazouri, had uploaded and distributed videos depicting children being sexually abused into a public chat room with 46 other users in it. Further investigation by the Jacksonville Sheriff’s Office (JSO) traced the internet protocol address used to distribute these videos to Hazouri’s residence. At that time, Hazouri was employed as a second-grade teacher at Mayport Elementary School in Jacksonville.
The search warrants for the social messaging app account used by Hazouri, as well as for another email account used by Hazouri. Hazouri’s online social media account, contained 19 images and 45 videos depicting minor children engaged in sexually explicit conduct. On August 6, 2020, JSO detectives and other personnel executed a search warrant at Hazouri’s residence and seized Hazouri’s Apple iPhone and other computer media. A forensic examination of this iPhone revealed that it contained 123 images and three videos depicting children being sexually abused. Seven of these images each depicted either an infant or a toddler-aged child.
This case was investigated by the Jacksonville Sheriff’s Office, the Duval County School Police Department, and the Federal Bureau of Investigation, with assistance from the National Center for Missing and Exploited Children. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Iowa State Patrol Trooper Pleads Guilty to Civil Rights ViolationRead the Press Release
CEDAR RAPIDS, IA – A former Iowa State Patrol trooper, Robert James Smith, age 58, pleaded guilty on Monday, September 26, 2022, to Deprivation of Rights Under Color of Law.
According to court documents, on September 25, 2017, while Smith was on patrol, he observed an individual traveling on Interstate 80 at a speed above the posted speed limit. Smith attempted to catch up to the motorcycle. The motorcyclist exited Interstate 80 in Cedar County, Iowa, stopped the motorcycle and dismounted. In his marked squad car, Smith exited behind the motorcycle, engaged the overhead lights and siren on his patrol vehicle, parked near and quickly approached the victim. As the victim was standing next to the motorcycle with hands in the air, Smith delivered an open palm strike to the victim’s chin area. The force of the strike caused the victim to fall back over the motorcycle, after which Smith knelt on and handcuffed the victim, then stood the victim up. In his plea agreement, Smith admitted that this intentional open hand palm strike was with a bad purpose or improper motive to disregard the law and was an unreasonable use of force.
In July 2022, this matter preceded to jury trial, but the jury was unable to reach a verdict.
Sentencing in this matter has not been scheduled. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation is investigating this case.
Former IRS Employee Pleads Guilty to Fraudulently Obtaining $62,300 in CARES Act FundsRead the Press Release
CONCORD – Charles Clark, 64, of Merrimack, New Hampshire, pleaded guilty in federal court to making false statements, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in July 2020, Clark fraudulently applied for a loan under the Economic Injury Disaster Loan (EIDL) program. Congress had authorized multiple relief programs, including EIDL, to help the millions of Americans and many small businesses adversely affected by the early stages of the COVID pandemic. EIDL funds were issued by the Small Business Administration and were to be used for limited purposes such as payroll expenses, sick leave, and production costs.
In his EIDL application, Clark falsely claimed to have been an independent contractor working in the “Hair & Nail Salon” industry when he was working as a full-time IRS employee. He obtained $62,300 in funds which he then misused by spending them on renovating an investment property he owned.
Clark is scheduled to be sentenced on January 5, 2023.
The case was investigated by the Treasury Inspector General for Tax Administration. It is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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Former Financial Advisor Agrees to Plead Guilty to Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Tyler Rigsbee, 32, of Folsom, has signed a plea agreement admitting to committing aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
Rigsbee was charged in a criminal information filed Tuesday in U.S. District Court. In a plea agreement, filed today, Rigsbee agreed to plead guilty to one count of aggravated identity theft. Rigsbee is scheduled for an initial appearance on Oct. 5, 2022, before Magistrate Judge Kendall J. Newman.
According to court documents, from 2016 to 2021, Rigsbee worked as a financial advisor at a major bank in Sacramento. During his employment, Rigsbee stole over $158,000 from the accounts of two bank customers. Rigsbee stole this money by transferring it from customer accounts to brokerage accounts he created at E-Trade, a third-party financial institution. He then transferred the money from these brokerage accounts to his own personal bank account. Rigsbee also attempted to conceal his scheme by partially replacing some of what he stole from one of these bank customers with money he took from the account of a third bank customer.
After the death of one bank customer in August 2018, Rigsbee created a fraudulent request for distribution of eligible assets from a transfer-on-death account by falsely pretending that he was the deceased customer’s beneficiary. On March 15, 2019, Rigsbee submitted this request for distribution of eligible assets to the bank’s estate processing department, which caused the liquidation of the customer’s account and transfer of these funds to a brokerage account Rigsbee created and controlled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
Rigsbee faces a mandatory term of two years in prison and a statutory maximum fine of up to $250,000 fine or twice the gross gain or gross loss. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Detroit Resident Sentenced for Role in Drug Trafficking NetworkRead the Press Release
PITTSBURGH, PA – A former resident of Detroit, Michigan, was sentenced on a charge of violating federal narcotics trafficking laws, United States Attorney Cindy K. Chung announced today.
Hasani James, 51, currently incarcerated at Northeast Ohio Correctional Center, was sentenced to 60 months imprisonment, followed by 4 years’ supervised release by District Judge Robert J. Colville.
In conjunction with the sentencing hearing, the Court was informed that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking activity occurring in the Western District of Pennsylvania. Law enforcement identified several individuals, suspected at the time, of illegally distributing controlled substances, including methamphetamine in Allegheny, Westmoreland, Erie, Fayette, and Washington Counties.
Investigators identified James, who resided in Detroit at the time of the conspiracy, as a cocaine source of supply for among others, co-defendant Bill Rana, who was a “fully patched” member of the Pagans Motorcycle Club and Sergeant of Arms for the Pittsburgh Chapter. Over the course of the conspiracy, James was responsible for or could otherwise reasonably foresee the distribution of at least, 500 grams but less than 2 kilograms of cocaine.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation, the United States Postal Inspection Service, Drug Enforcement Administration, Allegheny County Sheriff’s Office, Pennsylvania State Police, and Pennsylvania Office of Attorney General Bureau of Narcotics Investigations, for the investigation leading to the successful prosecution of James.
This sentencing was the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Clarksville School Nurse Pleads Guilty to Child Pornography ChargesRead the Press Release
NASHVILLE – A former Clarksville, Tennessee, school nurse pleaded guilty today in U.S. District Court to 25 counts of attempting to produce child pornography, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Leon B. Hensley, 41, pleaded guilty prior to the start of a bench trial which was scheduled to begin today.
Hensley, a former nurse at North East High School (NEHS) in Clarksville, was initially charged and arrested in May 2021, following an investigation into allegations that he sent a digital image, via text message, of a nude adult female to a minor female in the Clarksville area. Hensley had been communicating with the minor female via text and asked her to help him with a photo shoot by posing for photos.
Subsequent investigation and a search of Hensley’s phone revealed several images depicting the sexual exploitation of children. During a subsequent search of Hensley’s house, numerous electronic devices were seized, including a small covert video camera. The initial examination of Hensley’s phone led to the discovery of nude images which were identified as minor female students at NEHS. The devices also contained image files depicting unidentified females in hospital rooms, airports, and tanning beds, plus video files that appeared to be upskirt videos of adult and minor females.
Several hundred images were also discovered of minor females using the facilities of a particular bathroom. The images appear to have been taken by a hidden or concealed camera, which was positioned in front of the toilet seat at seat level, in an apparent attempt to capture the lewd and lascivious display of the genitalia. Further investigation determined that the bathroom depicted in the images was the private student bathroom in the nurse’s station at NEHS. Geolocation data on other images showed some that were taken at Tennova Hospital in Clarksville, where Hensley was employed prior to his employment at NEHS.
A superseding indictment returned in June charged Hensley with 25 counts of attempting to produce child pornography and enticing or coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
Hensley faces a mandatory minimum of 15 years in prison on each count, and up to life, when he is sentenced on February 3, 2023.
This case was investigated by Homeland Security Investigations; the U.S. Secret Service; the FBI; and the Clarksville Police Department. Assistant U.S. Attorney Monica Morrison is prosecuting the case.
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Former Chicago Police Officer Charged with Federal Civil Rights ViolationRead the Press Release
A former Chicago Police Officer has been indicted on a federal civil rights charge for allegedly kidnapping and sexually abusing an individual while on duty.
James Sajdak, 64, of Chicago, was charged with one count of deprivation of rights under color of law, according to an indictment unsealed today in the U.S. District Court for the Northern District of Illinois. Sajdak is alleged to have kidnapped and sexually abused the victim in Chicago on March 5, 2019.
The charge in the indictment is punishable by a maximum sentence of life in federal prison. Sajdak pleaded not guilty today during his arraignment before U.S. Magistrate Judge Susan E. Cox. A status hearing was scheduled for Oct. 12 before U.S. District Judge John J. Tharp Jr. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois and Special Agent in Charge Ashley T. Johnson for the FBI Chicago Field Office made the announcement.
Assistant U.S. Attorney Alexandra Morgan for the Northern District of Illinois is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Chicago Police Officer Charged with Federal Civil Rights ViolationRead the Press Release
CHICAGO — A former Chicago Police Officer has been indicted on a federal civil rights charge for the alleged kidnapping and aggravated sexual abuse of an individual while on duty.
JAMES SAJDAK, 64, of Chicago, is charged with one count of deprivation of rights under color of law, according to an indictment unsealed today in U.S. District Court in Chicago. Sajdak is alleged to have kidnapped and sexually abused the victim in Chicago on March 5, 2019.
The charge in the indictment is punishable by a maximum sentence of life in federal prison. Sajdak pleaded not guilty today during his arraignment before U.S. Magistrate Judge Susan E. Cox. A status hearing was scheduled for Oct. 12, 2022, at 9:00 a.m. before U.S. District Judge John J. Tharp, Jr.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Alexandra Morgan.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Former Cargill Employee Is Sentenced to More Than Four Years in Prison for Bribery and Kickback SchemeRead the Press Release
CHARLOTTE, N.C. – Yesterday, Michael A. Kennedy, 56, of Wichita, Kansas, was sentenced to 50 months in prison for his role in an extensive bribery and kickback scheme that defrauded Cargill, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Kennedy was ordered to serve a year under court supervision and to pay restitution in the amount of $33.7 million.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, Kennedy was a senior Cargill employee within the Strategic Sourcing Function. Choung “Shawn” Nguyen was a Cargill procurement manager within the same division and reported to Kennedy. Brian Ewert was co-owner and primary sales representative of WDS, Inc., also known as Women’s Distribution Services, Inc. (WDS), a South Carolina-based company that provided non-raw materials and services to Cargill and its affiliates.
According to filed court documents and court proceedings, from 2009 to 2016, Kennedy conspired with Ewert, Nguyen, and others to carry out a fraudulent bribery and kickback scheme. During the course of the scheme, Ewert provided Kennedy and Nguyen and other Cargill employees with more than a $1 million in cash, gifts, and vacations, in exchange for putting the interests of WDS, and other companies Ewert controlled ahead of Cargill’s, including by helping to conceal the fact that WDS was overcharging Cargill. For example, as part of the conspiracy, Ewert provided Kennedy and his family with lavish trips that cost hundreds of thousands of dollars, including trips to the Caribbean on Ewert’s private jet and luxury yacht rentals to entertain Kennedy and his family. Ewert also paid for Kennedy and his family to go to Disney World and took them on ski trips. Kennedy and others concealed from Cargill the fact that they had received from Ewert the illicit bribes and kickbacks, in breach of their fiduciary duties to Cargill.
According to court records, in early 2016, after others within Cargill began questioning the relationship between WDS and Cargill, Kennedy, Ewert, and others took numerous steps to conceal from Cargill significant overcharging of Cargill by WDS. Cargill eventually discovered the scheme and terminated its relationship with WDS and Ewert and fired Kennedy and Nguyen.
In December 2021, Kennedy pleaded guilty to conspiracy to commit honest services wire fraud. He will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
Ewert and Nguyen were previously sentenced to 60 months and 41 months in prison, respectively. They were each also ordered to serve two years of supervised release and to pay $40.4 million in restitution. Jennifer Maier, the co-owner and Chief Executive Officer of WDS, was sentenced 24 months in prison followed by a year of supervised release and was ordered to pay $3.2 million as restitution.
The FBI and USPIS investigated the case. Assistant U.S. Attorneys Daniel Ryan and Graham Billings, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Florida man convicted of manslaughter, assault on the Laguna PuebloRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that a federal jury convicted Alexis Riego, 50, of Merritt Island, Florida, of four counts of involuntary manslaughter and two counts of assault resulting in serious bodily injury committed in 2019.
A grand jury indicted Riego in April of 2021. According to the indictment and other court records, on Sept. 7, 2019, Riego, a commercial motor vehicle driver, recklessly crashed into a line of stationary traffic in a construction zone on Interstate 40 within the Laguna Pueblo. At the time of the crash, Mr. Riego was speeding and using his cellular telephone. The crash caused a six-car pile-up that killed four people and seriously injured two. The crash caused the closure of interstate 40 for several hours.
“When we take the wheel, we take on a collective responsibility for the families who share our highways,” said U.S. Attorney Uballez. “The consequences for failing in that responsibility are grave and irrevocable. This conviction is a sobering reminder that a moment on video chat can forever change your life, and end the lives of others.”
Riego will remain in custody pending sentencing, which has not been scheduled.
The FBI Albuquerque Field Office investigated this case with assistance from the Laguna Police Department and the New Mexico State Police. Assistant United States Attorneys Joseph M. Spindle, Elisa Dimas and Matthew Nelson are prosecuting the case.
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Florida Man Pleads Guilty to Distributing Eight Kilograms of Meth Resulting from I-75 Traffic Stop in Lowndes CountyRead the Press Release
ALBANY, Ga. – A Florida resident with multiple prior state felony convictions for distributing methamphetamine pleaded guilty to a federal controlled substance charge after being caught with approximately eight kilograms of the illegal drug during a routine traffic stop when his co-defendant attempted to escape from authorities with the bag of drugs.
James E. Freitas, 48, of Winter Haven, Florida, pleaded guilty to possession with intent to distribute methamphetamine before U.S. District Judge Louis Sands today. Co-defendant, Miguel L. Mora, 43, of Hanes City, Florida, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 12. Both defendants face a mandatory minimum of ten years up to a maximum of life imprisonment to be followed by at least five years of supervised release and a maximum $10,000,000 fine. Their sentencings will occur within 90 days as determined by the Court.
There is no parole in the federal system.
“I-75 is a known corridor for drug traffickers moving fentanyl, methamphetamine and other deadly drugs into communities across the southeast and beyond,” said U.S. Attorney Peter D. Leary. “Individuals caught distributing large quantities of these types of controlled substances will face federal prosecution for their crimes, which are contributing to the death and addiction of many Americans.”
“The guilty plea of this reoffender is the result of the collaborative efforts between DEA and its law enforcement partners who work tirelessly to eliminate the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This defendant will now face serious time in prison.”
According to court documents, a Lowndes County Sheriff’s Office deputy attempted to conduct a routine traffic stop for a driving violation as Freitas was traveling on I-75 on July 11, 2019. Freitas was unable to provide identification and gave conflicting information. As Frietas was standing outside the vehicle talking with the deputy, Mora climbed into the front seat and drove away in the car. Mora drove the vehicle into a field and then fled on foot into adjacent woods carrying a large bag. Mora was quickly apprehended; the bag that he carried from the car was searched and found to contain 8,099 grams of 97% pure methamphetamine with an estimated street value of $748,000. Officers found a loaded .40 caliber semi-automatic pistol with an obliterated serial number on the floorboard of the car belonging to Freitas. A search warrant executed on Freitas’ cell phone found photos of the gun, plus text and instant messages detailing both defendants travel to and from Tennessee to purchase and transport methamphetamine to a third party in Florida.
Freitas has three prior felony drug convictions for trafficking methamphetamine in Polk County, Florida, Circuit Court.
DEA and Lowndes County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Mike Morrison is prosecuting this case.
Firearms Straw Purchaser Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – A Charlotte man convicted of straw purchasing firearms for two individuals was sentenced to two years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Thomas Evans Kelly, 29, was also ordered to serve two years under court supervision after he is released from prison.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to court records and today’s sentencing hearing, in August 2019, Kelly purchased three firearms from a licensed firearms dealer in Charlotte. Over the course of the transaction, Kelly made false and fictitious statements to the firearms dealer and falsely certified on federal forms associated with the purchase of the firearms that he was the actual buyer/transferee of the firearms. Court records show that, contrary to Kelly’s statements, he purchased the firearms for two other individuals, Walter Jackson and Jalen Jackson. Kelly then filed false police reports alleging that the firearms were stolen. In total, law enforcement seized eight firearms that were originally purchased by Kelly during criminal activity committed by Walter and Jalen Jackson.
Kelly is currently released on bond and will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
Walter Jackson previously pleaded guilty to dealing in firearms without a license and possession of a firearm by a convicted felon and was sentenced to 90 months in prison. Jalen Jackson was sentenced to 72 months in prison, after pleading guilty to dealing in firearms without a license and transfer of a firearm in violation of the National Firearms Act.
The ATF led the investigation. Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Federal Prison Inmate Pleads Guilty to Attempting to Obtain ContrabandRead the Press Release
MINNEAPOLIS – An inmate at the Federal Correctional Institution (“FCI”) in Sandstone has pleaded guilty to attempting to obtain contraband in prison, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on two separate dates in February and March 2022, Nickolas William Mihelic, 39, an inmate at FCI Sandstone, attempted to obtain methamphetamine, a Schedule II controlled substance. In order to bypass security protocols, Mihelic conspired with an unindicted co-conspirator to mail pieces of paper to him at FCI Sandstone that were saturated with liquid methamphetamine. When the methamphetamine-saturated papers arrived at FCI Sandstone, Bureau of Prisons officials seized the contraband.
Mihelic pleaded guilty on September 26, 2022, before U.S. District Judge Nancy E. Brasel to two counts of attempting to obtain contraband in prison. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by Federal Bureau of Prisons and the FBI.
Special Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Extradited UK Citizen Pleads Guilty to Defrauding VCU in Business Email Compromise SchemeRead the Press Release
RICHMOND, Va. –A United Kingdom citizen pleaded guilty today to conspiracy to commit wire fraud, after being extradited from the United Kingdom at the request of the United States.
According to court documents, Olabanji Egbinola, 43, of London, England, participated in a cyber-enabled business email compromise (BEC) fraud scheme that targeted Virginia Commonwealth University (VCU). A BEC scheme, also known as “cyber-enabled financial fraud,” is a sophisticated scam that typically targets employees with access to the finances of a business or organization that regularly perform large wire transfer payments. Using technological means and social engineering techniques, BEC conspirators impersonate an employee with a company that has ongoing contracts with the targeted victim. BEC conspirators then trick employees of the victim organization to change bank accounts for upcoming transaction to a bank account that the conspirators control or have access to.
As part of his guilty plea, Egbinola admitted that he impersonated an employee named “Rachel Moore” of the Kjellstrom + Lee Construction Company of Richmond, which had an ongoing construction project with VCU. From September 2018 through December 2018, over the course of multiple emails, Egbinola tricked VCU to change bank accounts for an upcoming payment to Kjellstrom + Lee. On December 20, 2018, a payment intended for Kjellstrom + Lee in the amount of $469,819.44 was transferred from a bank account controlled by VCU to a Bank of Hope account in Los Angeles, California, that the conspirators controlled. Very little of that money was recovered.
Egbinola is scheduled to be sentenced on February 13, 2023. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge, FBI Richmond Division, made the announcement after U.S. District Judge David J. Novak accepted the plea.
The Richmond FBI Cyber Task Force conducted the investigation with the assistance of the FBI Cyber Division, FBI Criminal Division, Department of Justice’s Office of International Affairs, and the FBI Legal Attaché London office. United Kingdom authorities also provided substantial assistance.
The Justice Department’s Office of International Affairs worked with law enforcement partners in UK to secure the arrest and extradition of Egbinola to the United States.
Assistant U.S. Attorney Brian Hood is prosecuting the case.
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. 3:22-cr-124.
El Departamento de Justicia llega a un acuerdo con Lakeland Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticioRead the Press Release
El Departamento de Justicia anunció el día de hoy un acuerdo para resolver alegaciones de que Lakeland Bank (Lakeland) participó en un patrón o práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (conocido como “redlining” en inglés) en la zona metropolitana de Newark, incluyendo en vecindarios en los condados de Essex, Somerset y Union en New Jersey. Esta resolución es parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia y representa el tercer acuerdo más grande contra la exclusión financiera en la historia del Departamento.
"Las instituciones financieras que se niegan a proveer servicios de préstamos hipotecarios a las comunidades de color no solo contribuyen a la persistente disparidad racial de riqueza que existe en este país, sino que violan las leyes federales", dijo el Fiscal General Merrick B. Garland. “El acuerdo con Lakeland anunciado el día de hoy representa el compromiso continuo del Departamento de Justicia para abordar la exclusión financiera moderna y garantizar que todos los estadounidenses tengan igualdad de oportunidades crediticias, independientemente de su raza u origen nacional”.
“Poner fin a la exclusión financiera es un paso crítico en nuestra labor para cerrar las disparidades de riqueza cada vez más amplias entre las comunidades de color y otras”, dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo demuestra nuestro firme compromiso con combatir la exclusión financiera moderna y responsabilizar a los bancos y otros prestamistas cuando les niegan a las personas de color acceso parejo a oportunidades crediticias. Por medio de este acuerdo, enviamos un mensaje firme a la industria financiera de que no soportaremos las barreras discriminatorias e ilegales a los préstamos hipotecarios residenciales”.
“La exclusión financiera crea una desigualdad de las condiciones de juego que injustamente impide que muchas personas de color logren el sueño de ser propietarios de viviendas y este tipo de discriminación sistemática e intencional no puede y no será tolerado”, dijo el Fiscal Federal Philip R. Sellinger del Distrito de New Jersey. “Es completamente inaceptable que la exclusión financiera persista en el siglo XXI y este caso demuestra nuestro compromiso con combatir la exclusión financiera y responsabilizar a los bancos y a otros cuando participen en discriminación ilícita. Por medio de este acuerdo, damos un gran paso adelante al remover las barreras ilegales y discriminatorias a los préstamos hipotecarios residenciales”.
La exclusión financiera es una práctica ilegal en la que prestamistas evitan la prestación de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color u origen nacional de los residentes de tales comunidades. La demanda que se presentó en el tribunal federal hoy alega que, desde al menos el 2015 hasta el 2021, Lakeland no prestó servicios de préstamos hipotecarios en vecindarios negros e hispanos en la zona metropolitana de Newark, New Jersey, que todas sus sucursales estaban ubicadas en vecindarios de mayoría blanca y que sus oficiales de crédito no atendían las necesidades de crédito de los vecindarios negros e hispanos en y alrededor de Newark.
Conforme a la orden de consentimiento propuesta, la cual queda sujeta a la aprobación del tribunal y fue presentada hoy ante el Tribunal Federal de Distrito para el Distrito de New Jersey junto con una demanda, Lakeland ha acordado hacer lo siguiente:
Invertir al menos $12 millones en un fondo de préstamos subvencionados para los residentes de vecindarios negros e hispanos en el área de Newark; $750,000 en anuncios, proyección comunitaria y educación financiera para el consumidor; y $400,000 para desarrollar asociaciones comunitarias con el fin de prestar servicios que mejoren el acceso a los préstamos hipotecarios residenciales.
Abrir dos sucursales nuevas en vecindarios de color, incluyendo al menos una en la ciudad de Newark; garantizar que al menos cuatro oficiales de crédito hipotecario estén dedicados a servir a todos los vecindarios en y alrededor de Newark; y emplear a un oficial de desarrollo comunitario que supervisará el desarrollo continuo del crédito en vecindarios de color en el área de Newark.
Mantener un área de evaluación de la Ley de Reinversión Comunitaria (Community Reinvestment Act en inglés) que incluya a los condados de Essex, Somerset y Union.
Lakeland ha acordado resolver este asunto sin litigios de disputa y trabajó de manera cooperativa con el Departamento para remediar las inquietudes de exclusión financiera que fueron identificadas.
En octubre de 2021, el Fiscal General Merrick B. Garland anunció la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley cuyo objetivo es abordar esta forma persistente de discriminación contra comunidades de color. La iniciativa está expandiendo el alcance del Departamento al fortalecer las asociaciones con Fiscalías Federales por todo el país, socios regulatorios y nuestros socios en las Fiscalías Generales Estatales. Desde que se emprendió la iniciativa, el Departamento ha anunciado cuatro casos de exclusión financiera y acuerdos por un total combinado de $38 millones en indemnización a las comunidades que han sido víctimas de discriminación en el ámbito crediticio. Eso incluye el acuerdo de $20 millones con Trident Mortgage Company – el segundo acuerdo más grande en la historia del Departamento de Justicia.
Se puede encontrar información adicional sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos en www.justice.gov/fairhousing. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea. Los individuos también pueden reportar violaciones de los derechos civiles en https://www.justice.gov/usao-nj/civil-rights-enforcement o llamando a la Línea Directa de Derechos Civiles del Fiscal General al (855) 281-3339.
- El Departamento de Justicia llega a un acuerdo con Lakeland Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticio
El Departamento de Justicia llega a un acuerdo con Lakeland Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticioRead the Press Release
El Departamento de Justicia anunció el día de hoy un acuerdo para resolver alegaciones de que Lakeland Bank (Lakeland) participó en un patrón o práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (conocido como “redlining” en inglés) en la zona metropolitana de Newark, incluyendo en vecindarios en los condados de Essex, Somerset y Union en New Jersey. Esta resolución es parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia y representa el tercer acuerdo más grande contra la exclusión financiera en la historia del Departamento.
"Las instituciones financieras que se niegan a proveer servicios de préstamos hipotecarios a las comunidades de color no solo contribuyen a la persistente disparidad racial de riqueza que existe en este país, sino que violan las leyes federales", dijo el Fiscal General Merrick B. Garland. “El acuerdo con Lakeland anunciado el día de hoy representa el compromiso continuo del Departamento de Justicia para abordar la exclusión financiera moderna y garantizar que todos los estadounidenses tengan igualdad de oportunidades crediticias, independientemente de su raza u origen nacional”.
“Poner fin a la exclusión financiera es un paso crítico en nuestra labor para cerrar las disparidades de riqueza cada vez más amplias entre las comunidades de color y otras”, dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo demuestra nuestro firme compromiso con combatir la exclusión financiera moderna y responsabilizar a los bancos y otros prestamistas cuando les niegan a las personas de color acceso parejo a oportunidades crediticias. Por medio de este acuerdo, enviamos un mensaje firme a la industria financiera de que no soportaremos las barreras discriminatorias e ilegales a los préstamos hipotecarios residenciales”.
“La exclusión financiera crea una desigualdad de las condiciones de juego que injustamente impide que muchas personas de color logren el sueño de ser propietarios de viviendas y este tipo de discriminación sistemática e intencional no puede y no será tolerado”, dijo el Fiscal Federal Philip R. Sellinger del Distrito de New Jersey. “Es completamente inaceptable que la exclusión financiera persista en el siglo XXI y este caso demuestra nuestro compromiso con combatir la exclusión financiera y responsabilizar a los bancos y a otros cuando participen en discriminación ilícita. Por medio de este acuerdo, damos un gran paso adelante al remover las barreras ilegales y discriminatorias a los préstamos hipotecarios residenciales”.
La exclusión financiera es una práctica ilegal en la que prestamistas evitan la prestación de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color u origen nacional de los residentes de tales comunidades. La demanda que se presentó en el tribunal federal hoy alega que, desde al menos el 2015 hasta el 2021, Lakeland no prestó servicios de préstamos hipotecarios en vecindarios negros e hispanos en la zona metropolitana de Newark, New Jersey, que todas sus sucursales estaban ubicadas en vecindarios de mayoría blanca y que sus oficiales de crédito no atendían las necesidades de crédito de los vecindarios negros e hispanos en y alrededor de Newark.
Conforme a la orden de consentimiento propuesta, la cual queda sujeta a la aprobación del tribunal y fue presentada hoy ante el Tribunal Federal de Distrito para el Distrito de New Jersey junto con una demanda, Lakeland ha acordado hacer lo siguiente:
Invertir al menos $12 millones en un fondo de préstamos subvencionados para los residentes de vecindarios negros e hispanos en el área de Newark; $750,000 en anuncios, proyección comunitaria y educación financiera para el consumidor; y $400,000 para desarrollar asociaciones comunitarias con el fin de prestar servicios que mejoren el acceso a los préstamos hipotecarios residenciales.
Abrir dos sucursales nuevas en vecindarios de color, incluyendo al menos una en la ciudad de Newark; garantizar que al menos cuatro oficiales de crédito hipotecario estén dedicados a servir a todos los vecindarios en y alrededor de Newark; y emplear a un oficial de desarrollo comunitario que supervisará el desarrollo continuo del crédito en vecindarios de color en el área de Newark.
Mantener un área de evaluación de la Ley de Reinversión Comunitaria (Community Reinvestment Act en inglés) que incluya a los condados de Essex, Somerset y Union.
Lakeland ha acordado resolver este asunto sin litigios de disputa y trabajó de manera cooperativa con el Departamento para remediar las inquietudes de exclusión financiera que fueron identificadas.
En octubre de 2021, el Fiscal General Merrick B. Garland anunció la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley cuyo objetivo es abordar esta forma persistente de discriminación contra comunidades de color. La iniciativa está expandiendo el alcance del Departamento al fortalecer las asociaciones con Fiscalías Federales por todo el país, socios regulatorios y nuestros socios en las Fiscalías Generales Estatales. Desde que se emprendió la iniciativa, el Departamento ha anunciado cuatro casos de exclusión financiera y acuerdos por un total combinado de $38 millones en indemnización a las comunidades que han sido víctimas de discriminación en el ámbito crediticio. Eso incluye el acuerdo de $20 millones con Trident Mortgage Company – el segundo acuerdo más grande en la historia del Departamento de Justicia.
Se puede encontrar información adicional sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos en www.justice.gov/fairhousing. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea. Los individuos también pueden reportar violaciones de los derechos civiles en https://www.justice.gov/usao-nj/civil-rights-enforcement o llamando a la Línea Directa de Derechos Civiles del Fiscal General al (855) 281-3339.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – Virgil Montell-Denzel Watkins, 29, of Detroit, Michigan, pleaded guilty today to the distribution of 5 grams or more of methamphetamine.
According to court documents and statements made in court, Watkins admitted to selling approximately one ounce of methamphetamine to a confidential informant at a Marcum Terrace apartment in Huntington on February 3, 2022. Watkins further admitted to selling an additional 6 ounces of methamphetamine to the informant between February 17 to April 18, 2022.
On April 22, 2022, law enforcement officers arrested Watkins and executed a search warrant at the Marcum Terrace apartment. Watkins admitted that the officers found a Glock, Model 30, .45-caliber pistol and approximately 10 grams of fentanyl during the search.
Watkins is scheduled to be sentenced on January 9, 2023, and faces a mandatory minimum of five to 40 years in prison as well as up to four years of supervised release and a $5 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams 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-74.
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Denham Springs Woman Pleads Guilty to Making and Subscribing False Tax ReturnsRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Lakeisha Grayer, age 41, of Denham Springs, Louisiana, pled guilty before U.S. District Judge John W. deGravelles to making and subscribing false tax returns.
According to admissions made during her plea, Grayer owned and operated a tax preparation business, Genesis Tax Service, in Baton Rouge, Louisiana. For tax years 2015, 2016, and 2017 identified in the indictment, Grayer prepared and electronically filed federal income tax returns for over 950 taxpayers. She charged her clients a fee for preparing and filing their tax returns.
Grayer reported her income from Genesis Tax Service on a Schedule C form attached to her personal income tax return, on which she reported her business's gross receipts. For each year listed in the indictment, the amount of gross receipts Grayer reported to the IRS on her returns using the Schedule C was substantially lower than the actual amount. In addition to the counts charged in the indictment, Grayer knowingly underreported her gross receipts for tax years 2018, 2019, and 2020.
The aggregate amount of all known tax loss, for tax years 2015 through 2020, is over $180,000.
This matter was investigated by the Internal Revenue Service and is being prosecuted by Assistant United States Attorney Harley Ferguson.
Defendant Convicted of Distributing Fentanyl that Resulted in U.S. Marine’s DeathRead the Press Release
Assistant U. S. Attorneys Owen Roth and J’me K. Forrest
NEWS RELEASE SUMMARY—September 28, 2022
SAN DIEGO— A jury convicted Nameer Mohammad Atta yesterday in federal court of distributing the fentanyl that led to the fatal overdose of an active-duty lance corporal in the United States Marine Corps on May 21, 2020.
According to evidence presented at trial, Atta sold counterfeit “M30” pills in April and May 2020 to the Marine, identified in court records as C.M.R., knowing that these pills are counterfeit oxycodone pills that contain illicit fentanyl. Atta used social media to market and arrange sales of these pills, referring to them as the “most trusted” in San Diego, and in text messages as the “most trusted” and “most potent” in the area. Atta referred to these pills as “M30s,” “Percs” and “Perc30s,” nicknames for fentanyl-laced pills. Atta’s final sale to C.M.R. occurred on May 20, 2020. C.M.R. died from an overdose the next day.
“This verdict again demonstrates the resolve of this office to hold to account those whose callous actions result in overdose deaths,” said U.S. Attorney Randy Grossman. “Fentanyl kills indiscriminately, and tragically here it took the life of a Marine. We will continue to seek justice on behalf of victims.” Grossman thanked the prosecution team and investigators of the Naval Criminal Investigative Service for their efforts leading the investigation that led to the verdict, as well as the Drug Enforcement Administration and Homeland Security Investigations for their invaluable support.
“The illicit distribution and use of fentanyl in the United States poses a critical threat to our local communities, our nation’s service members, and ultimately our national security,” said Special Agent in Charge Todd Battaglia of the NCIS Marine West Field Office. “NCIS extends gratitude to our law enforcement partners and the U.S. Attorney’s Office for their efforts to bring Mr. Atta to justice for his role in the death of a U.S. Marine. We will continue to work aggressively with our partners to eliminate this threat to the Department of the Navy.”
“Once again, we’ve seen a life cut short by fentanyl in fake pills. DEA and its Overdose Response Team will continue to pursue the dealers and manufacturers who sell this poison,” said Special Agent in Charge Shelly Howe. “The only safe pill is one that comes from your doctor or a legitimate pharmacy.”
“This conviction is the result of painstaking work carried out by brave law enforcement officers in an effort to continue to keep these dangerous and deadly drugs out of our communities,” said Chad Plantz, special agent in charge for HSI San Diego. “HSI, alongside our partners, will continue to identify and investigate those who seek to introduce lethal drugs into our communities.”
Atta is scheduled to be sentenced on February 10, 2023, before U.S. District Court Judge Todd W. Robinson.
DEFENDANT Case Number 21CR1289
Nameer Mohammad Atta Age: 22 San Diego, CA
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S. Code, Sections 841(a)(1) & (b)(1)(C)
Maximum Penalty: Life in prison, with mandatory minimum 20 years in custody
AGENCIES
Naval Criminal Investigative Service
Drug Enforcement Administration
Homeland Security Investigations
Dallas Man Sentenced to Life over Meth Concealed in CauliflowerRead the Press Release
A Dallas man who accepted a delivery of $3.7 million worth of methamphetamine concealed in boxes of cauliflower was sentenced Tuesday to life in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Joaquin Salinas, 48, pleaded guilty in March to conspiracy to possess with intent to distribute methamphetamine. He was sentenced Tuesday by U.S. District Judge Barbara M.G. Lynn.
“Methamphetamine is a dangerous drug that affects tens of thousands of lives every year,” said Eduardo A. Chavez, Special Agent in Charge of DEA Dallas. “Mr. Salinas chose to engage in this illicit activity and now can spend the rest of his life with the consequences of those actions. Lives were saved by keeping these drugs off the street and DEA Dallas will continue to put the health and safety of our North Texas communities first.”According to plea papers, on Aug. 29, 2021, Mr. Salinas received a shipment of approximately 247 kilograms of methamphetamine concealed inside boxes of cauliflower. Agents put the street value of the methamphetamine at approximately $3.7 million.
At Tuesday’s sentencing hearing, agents testified that their investigation revealed the methamphetamine was imported from Mexico. Further testimony revealed that the defendant had ties to the Sureños XIII criminal street gang and the Puro Tango Blast street and prison gang, both of which have ties to Mexican drug cartels.
Agents also testified that Mr. Salinas had four firearms in his home to protect the drugs and any illegal proceeds.
One of Mr. Salinas’ codefendants, Angel Cabrera, pleaded guilty in June to one count of conspiracy to possess with intent to distribute methamphetamine and one count of possession with intent to distribute methamphetamine and is currently awaiting sentencing. His other codefendant, Omar Jorge Valle Estrada, has entered a plea of not guilty and is currently awaiting trial. (Mr. Estrada is presumed innocent until proven guilty in a court of law.)
The Drug Enforcement Administration’s Dallas Field Division conducted the investigation with the assistance of the Dallas Police Department, the Hickory Creek Police Department, the Fort Worth Police Department, and the Dallas County District Attorney’s Office. Assistant U.S. Attorney George Leal prosecuted the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Cuban National Sentenced for Gas Pump Skimmer SchemeRead the Press Release
BEAUMONT, Texas – A Cuban national residing in Groves, Texas has been sentenced for federal violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Orlando Enrique Quesada-Oliva, 25, pleaded guilty on Feb. 10, 2022 to conspiracy to commit access device fraud and aiding and abetting aggravated identity theft and was sentenced to 30 months in federal prison today by U.S. District Judge Michael Truncale.
According to information presented in court, on Jan. 27, 2017, an officer with the Nacogdoches Police Department conducted a traffic stop on a vehicle driven by Victor Entenza, 30, and occupied by Ricardo Chavez-Travieso, 29, and Oliva, all Cuban nationals. After the officer discovered a discarded credit card on the ground, near where the driver had been, a search of the vehicle was conducted. A notepad was found that listed various gas stations in Texas, Tennessee, and Alabama. The search also produced numerous cell phones, a laptop computer and tape used as a security seal/tamper indicator for gas station fuel pumps. The officer also located a card skimmer, an encoder, a key used to open gas pumps and credit cards located in hidden compartments within the vehicle. Credit card information for a total of nine individuals, other than the occupants of the vehicle, was found either on the computer or in the vehicle. Oliva was indicted on Oct. 8, 2020. Oliva is the last of the three defendants to be sentenced. Entenza and Travieso, were both previously sentenced to 30 months on the same counts.
“Typically, a skimmer, such as the one found in this case, is placed inside a gas pump and used by criminals to collect credit card information from victims using the pump,” said U.S. Attorney Brit Featherston. “The intended gas purchase will proceed without interruption of any kind or any notification to the victim or third party,” Featherston added. “A single gas station skimmer is capable of storing credit card information for hundreds of victims.”
This case was investigated by the Nacogdoches Police Department and Homeland Security Investigations and prosecuted by Special Assistant U.S. Attorney Tommy Coleman.
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Convicted Felon Sentenced to 20 Years in Prison for Illegal Firearms PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge yesterday sentenced a Northport man for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Acting Special Agent in Charge Mickey French.
Chief United States District Court Judge L. Scott Coogler sentenced Dedrick Dawon McDowell, 24, of Northport, to 240 months in prison on two counts of being a felon in possession of a firearm.
“This young defendant continued to engage in dangerous and illegal activities even after being convicted of a felony. The result is that he must now spend many years in prison,” said U.S. Attorney Escalona. “We are grateful for the work of the Tuscaloosa and Northport Police Departments, in cooperation with the ATF, in bringing this repeat offender to justice.”
“ATF’s top priority is to reduce violent crime.” SAC French said. “This individual continuously ignored the law in several ways that cause harm to the community. Narcotics distribution and the prevalence of guns on our streets continue to plague our community at alarming rates. Individuals who illegally possess firearms and distribute narcotics will be held accountable for their actions. The ATF will continue to work together with our law enforcement partners to aggressively investigate and apprehend those individuals.”
According to the plea agreement, on November 18, 2020, Northport Police officers responded to a 911 call at mobile home park on Hunter Creek Road in Northport, Alabama. An agent with the West Alabama Narcotics Task Force heard the police radio traffic and advised the responding officers that McDowell had numerous outstanding felony warrants. Officers observed McDowell lying down in the back seat of a vehicle. McDowell was ordered out of the vehicle and was arrested on the outstanding warrants. Officers found two small bags of marijuana and $3,700 cash in McDowell’s pockets. The officers recovered a digital scale with cocaine residue, four bottles of Promethazine, most often mixed with a controlled substance to form the popular drug known as “lean”, from a backpack in the front passenger’s seat, orange pills that were confirmed to be Adderall, and a Smith and Wesson .40 caliber pistol on the back floorboard where McDowell had been hiding. The pistol was fully loaded with a round in the chamber.
On June 8, 2021, Tuscaloosa Police officers conducted a traffic stop on McDowell for speeding and failing to signal a lane change. Officers found hydrocodone pills, alprazolam pills, a small bag of marijuana, and $2,000 in McDowell’s possession. Officers then searched the vehicle and found a large bag of marijuana and a Glock .45 caliber pistol under the driver’s seat. The pistol was loaded with a high-capacity extended magazine. The pistol had been reported stolen to the Tuscaloosa Police Department in 2017.
ATF investigated the case along with the Northport Police Department and Tuscaloosa Police Department. Assistant U.S. Attorney Kristy Peoples prosecuted the case.
Containerboard Manufacturer Will Pay $2.5M for Violating Clean Air Act at its Louisiana MillRead the Press Release
WASHINGTON – Packaging Corporation of America (PCA), headquartered in Illinois, has agreed to pay $2.5 million in civil penalties to resolve allegations that it violated the Clean Air Act’s General Duty Clause and Risk Management Program Regulations at its containerboard production mill in DeRidder, Louisiana.
In the complaint, filed today with the proposed settlement, the United States and the Louisiana Department of Environmental Quality (LDEQ) allege nine Clean Air Act violations that stem, in part, from a fatal explosion and accidental release at the DeRidder mill on February 8, 2017. The explosion – which killed three workers and injured seven others – launched a 100,000-gallon storage tank into the air and over a six-story building before it landed on mill equipment approximately 400 feet away. The blast also caused property damage and released extremely hazardous substances into the environment. The Environmental Protection Agency (EPA) inspected the DeRidder mill after the explosion and uncovered additional Clean Air Act violations.
“PCA violated the Clean Air Act and accompanying regulations at its DeRidder mill, resulting in an explosion that caused the senseless deaths of three workers, while placing other workers and the surrounding community in danger,” said Assistant Attorney General Todd Kim of the Justice Department’s Environmental and Natural Resources Division. “The Department will continue enforcing environmental mandates to save lives and protect air quality — especially against companies with a history of misconduct, like PCA.”
“The Clean Air Act was created to provide guidelines for companies such as PCA to adhere to in order to keep our communities safe from hazardous substances,” said U.S. Attorney Brandon Brown for the Western District of Louisiana. “Sadly, it took an explosion and the loss of lives to highlight PCA’s failure to adhere to some of these guidelines. The Civil Division in the Western District of Louisiana has an important job and welcomes the opportunity to continue to work alongside our federal and local partners to ensure these laws are abided by.”
“This case demonstrates the tragic impacts to human life and the environment that can result from failures to follow appropriate chemical accident prevention and preparation requirements,” said Larry Starfield, Acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “This settlement both holds the Packaging Corporation of America accountable for failures that contributed to this accident and sends a clear message to corporations across the country on the importance of implementing appropriate chemical safety measures.”
“This settlement holds Packaging Corporation of America accountable for the harm it has caused to the environment and to the individuals who lost their lives on Feb. 8, 2017,” said Dr. Earthea Nance, EPA Region 6 Administrator. “Legal action will be pursued for companies who fail to safeguard their workers’ well-being. We offer our condolences for all individuals affected by this tragedy.”
“We join with our federal partners in taking action to ensure that this tragic occurrence is properly addressed,” said Dr. Chuck Carr Brown, LDEQ Secretary. “Those responsible must be held accountable.”
Section 112(r) of the Clean Air Act and its accompanying regulations are designed to prevent the accidental release of hazardous substances, like those at the DeRidder mill. Congress added section 112(r) in response to the 1984 catastrophic release of methyl isocyanate in Bhopal, India, that killed more than 3,400 people and injured more than 200,000 others. Under the Clean Air Act, facilities like PCA’s are required to identify hazards, design and maintain a safe facility, minimize the consequences of accidental releases that do occur, and comply with regulatory prevention measures. Failing to comply with these requirements increases the risk of accidents and threatens surrounding communities.
Reducing the risk to human health and the environment by decreasing the likelihood of chemical accidents at chemical facilities is a top priority for EPA’s enforcement and compliance assurance program.
The proposed stipulation of settlement is subject to a 45-day public comment period and court review and approval. A copy of the stipulation of settlement is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
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Containerboard Manufacturer Will Pay $2.5 Million for Violating Clean Air Act at its Louisiana MillRead the Press Release
Packaging Corporation of America (PCA), headquartered in Illinois, has agreed to pay $2.5 million in civil penalties to resolve allegations that it violated the Clean Air Act’s General Duty Clause and Risk Management Program Regulations at its containerboard production mill in DeRidder, Louisiana.
In the complaint, filed today with the proposed settlement, the United States and the Louisiana Department of Environmental Quality (LDEQ) allege nine Clean Air Act violations that stem, in part, from a fatal explosion and accidental release at the DeRidder mill on Feb. 8, 2017. The explosion – which killed three workers and injured seven others – launched a 100,000-gallon storage tank into the air and over a six-story building before it landed on mill equipment approximately 400 feet away. The blast also caused property damage and released extremely hazardous substances into the environment. The Environmental Protection Agency (EPA) inspected the DeRidder mill after the explosion, and uncovered additional Clean Air Act violations.
“PCA violated the Clean Air Act and accompanying regulations at its DeRidder mill, resulting in an explosion that caused the senseless deaths of three workers, while placing other workers and the surrounding community in danger,” said Assistant Attorney General Todd Kim of the Justice Department’s Environmental and Natural Resources Division. “The department will continue enforcing environmental mandates to save lives and protect air quality — especially against companies with a history of misconduct, like PCA.”
“The Clean Air Act was created to provide guidelines for companies such as PCA to adhere to in order to keep our communities safe from hazardous substances,” said U.S. Attorney Brandon Brown for the Western District of Louisiana. “Sadly, it took an explosion and the loss of lives to highlight PCA’s failure to adhere to some of these guidelines. The Civil Division in the Western District of Louisiana has an important job and welcomes the opportunity to continue to work alongside our federal and local partners to ensure these laws are abided by.”
“This case demonstrates the tragic impacts to human life and the environment that can result from failures to follow appropriate chemical accident prevention and preparation requirements,” said Larry Starfield, Acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “This settlement both holds the Packaging Corporation of America accountable for failures that contributed to this accident and sends a clear message to corporations across the country on the importance of implementing appropriate chemical safety measures.”
“This settlement holds Packaging Corporation of America accountable for the harm it has caused to the environment and to the individuals who lost their lives on Feb. 8, 2017,” said Dr. Earthea Nance, EPA Region 6 Administrator. “Legal action will be pursued for companies who fail to safeguard their workers’ well-being. We offer our condolences for all individuals affected by this tragedy.”
“We join with our federal partners in taking action to ensure that this tragic occurrence is properly addressed,” said Dr. Chuck Carr Brown, LDEQ Secretary. “Those responsible must be held accountable.”
Section 112(r) of the Clean Air Act and its accompanying regulations are designed to prevent the accidental release of hazardous substances, like those at the DeRidder mill. Congress added section 112(r) in response to the 1984 catastrophic release of methyl isocyanate in Bhopal, India, that killed more than 3,400 people and injured more than 200,000 others. Under the Clean Air Act, facilities like PCA’s are required to identify hazards, design and maintain a safe facility, minimize the consequences of accidental releases that do occur, and comply with regulatory prevention measures. Failing to comply with these requirements increases the risk of accidents and threatens surrounding communities.
Reducing the risk to human health and the environment by decreasing the likelihood of chemical accidents at chemical facilities is a top priority for EPA’s enforcement and compliance assurance program.
The proposed stipulation of settlement is subject to a 45-day public comment period and court review and approval. A copy of the stipulation of settlement is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Charlotte Man Is Sentenced to 22 Years in Prison for the Armed Robbery of Two Cell Phone Retail StoresRead the Press Release
CHARLOTTE, N.C. – On Tuesday, U.S. District Judge Frank D. Whitney sentenced Rashawn William Coleman, 24, of Charlotte, to 22 years in prison followed by three years of supervised release for the armed robbery of two cell phone retail stores, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation in North Carolina, Chief Chad Hawkins of the Belmont Police Department, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to court documents and the sentencing hearing, on June 27, 2020, the Belmont Police Department responded to a service call for an armed robbery at the Cricket Wireless store located at 617 Park Street, in Belmont, North Carolina. Upon arriving at the location, a store employee told law enforcement that an individual, later identified as Coleman, entered the store posing as a customer and inquired about purchasing a cell phone. Over the course of their exchange, Coleman asked if there were any lower priced phones available. While the employee was in the back of the store looking through the cell phone inventory, he saw Coleman standing in the doorway pointing a gun at him. Coleman then ordered the employee to hand over all of the iPhones and other high valued cell phones. Court records show that Coleman also ordered the employee to load the store’s safe in Coleman’s vehicle before fleeing the scene.
On July 29, 2020, the Belmont Police Department responded to a service call regarding the armed robbery of an AT&T Wireless store located at 6509 Wilkinson Boulevard in Belmont. Responding officers investigating the robbery interviewed a store employee who said she had been robbed at gun point. The employee explained that at approximately 7:37 p.m., an individual later identified as Coleman entered the store and began to inquire about purchasing a cell phone. While the employee was at the computer looking through available inventory, Coleman came around the counter and pointed a firearm at her. Coleman then ordered the store employee to place all the cell phones from the safe in his bag. Coleman then fled the scene in his vehicle.
Following the robbery, CMPD officers located Coleman driving his vehicle and attempted to conduct a traffic stop. Coleman did not obey and attempted to evade the police before he was arrested. Inside Coleman’s vehicle, law enforcement located the stolen cell phones, a firearm, and a magazine that contained 15 bullets.
On December 13, 2021, Coleman pleaded guilty to two counts of possession and brandishing of a firearm during, in relation to, and in furtherance of a crime of violence. He is currently in custody and will be transferred to the custody of the Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the FBI, the Belmont Police Department, and CMPD for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Asheville prosecuted the case.
Career Criminal Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A career criminal pleaded guilty today in federal court in Boston to trafficking fentanyl while still on supervised release for a previous federal conviction.
Ozair Pereira, 34, of Brockton, pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and four counts of distribution of fentanyl. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 10, 2022. Earlier this afternoon, Pereira was sentenced by U.S. District Court Judge Nathaniel M. Gorton to two years in prison for violating the terms of his supervised release.
“Today, Mr. Pereira admitted to his role in a conspiracy that sought to profit off addiction and harm,” said United States Attorney Rachael S. Rollins. “Even more troubling, Mr. Pereira engaged in this criminal conduct while on federal supervised release for a prior drug trafficking conviction. Opioids continue to cause irreversible destruction and chaos in communities across our Commonwealth and the nation. Two thousand lives were lost last year in Massachusetts, people stolen from us that will never return. We will attack this problem with every resource we have. The goal is to cut the flow of deadly narcotics onto our streets. Drug traffickers, especially repeat offenders, be warned – you will be identified and prosecuted to the fullest extent of the law.”
On four occasions in February and March 2021, Pereira worked with co-defendant Robert Roscoe and others to distribute over 40 grams of fentanyl. At the time of the offense, Pereira was on supervised release for a prior federal drug trafficking offense. Specifically, in 2018, Pereira and several other defendants were arrested as part of a wide-ranging investigation targeting drug trafficking and violence in Brockton. Pereira was intercepted on a court-authorized wiretap ordering heroin from a drug supplier. He was sentenced to 30 months in prison and three years of supervised release after pleading guilty to conspiracy to distribute heroin.
On June 30, 2022, Roscoe pleaded guilty to conspiracy to distribute fentanyl and distribution of fentanyl and is scheduled to be sentenced on Oct. 24, 2022.
Because of his prior federal conviction, on the charge of conspiracy to distribute 40 grams or more of fentanyl, Pereira faces a mandatory minimum sentence of 10 years and up to life in prison, at least eight years of supervised release and a fine of $8 million. The charge of distribution of fentanyl provides for a sentence of up to 30 years in prison, at least six years of supervised release and a fine of up to $2 million. 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.
U.S. Attorney Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Brenda Perez; and New Bedford Police Chief Paul Oliveira made the announcement today. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
Byram Man Sentenced to over Nine Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Jackson, Miss. – A Byram man was sentenced to 115 months in federal prison, followed by five years of supervised release, for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
Dave Venard Thompson, 41, was sentenced in U.S. District Court in Jackson.
The case is the result of an extensive investigation targeting illegal narcotics distribution in central Mississippi that involved the distribution of methamphetamine, heroin, marijuana and cocaine. On March 9, 2018, the FBI learned that two men from California driving a black Dodge Ram truck were in the tri-county area of Hinds, Madison and Rankin Counties of Central Mississippi to pick up narcotics. Agents placed the truck under surveillance and saw an occupant of the truck deliver a package to the Post Office in Jackson. On March 12, 2018, local law enforcement conducted a traffic stop of the truck and found $19,770 in cash hidden in the truck. The postal package that was seized by the Postal Inspector contained almost 1 kilogram of heroin and 1 kilogram of fentanyl.
Thompson was indicted by a federal grand jury and subsequently pled guilty to possession with intent to distribute methamphetamine.
The case is the result of an extensive investigation, dubbed “Fire and Ice,” which began as an operation targeting illegal drug trafficking in the Hattiesburg, Mississippi area. “Fire and Ice” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics and the Madison County Police Department. It was prosecuted by Assistant United States Attorney Keesha Middleton.
Brockton Man Sentenced in Sophisticated Drug Trafficking Conspiracy that Operated Using the Dark WebRead the Press Release
BOSTON – A Brockton man was sentenced today in federal court in Boston for his role in a highly sophisticated drug trafficking operation that manufactured and distributed a multitude of controlled substances using the Dark Web.
Steven McCall, 26, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 28 months in prison and three years of supervised release. McCall was also ordered to forfeit his vehicle, a 2012 BMW 535 sedan. The government recommended a sentence of 70 months in prison. On June 28, 2022, McCall pleaded guilty to conspiracy to manufacture, distribute and possess with intent to distribute MDMA, commonly known as ecstasy, Ketamine and Alprazolam (Xanax).
McCall was indicted in June 2019 along with co-conspirators Binh Thanh Le and Allante Pires. Le, who was the ringleader of the drug-trafficking operation, created and operated a vendor site called “EastSideHigh” in marketplaces on the Dark Network, more commonly known as the Dark Web. The Dark Web is any portion of the internet that can only be accessed with specific software, configurations or authorization that anonymize internet traffic. Le used these Dark Web markets to advertise various drugs for sale, including cocaine, MDMA, Ketamine and Xanax. Le ordered and received wholesale quantities of the drugs he and the others were distributing in the mail, principally from foreign sources in Canada and Europe. McCall and Pires then processed and manufactured those controlled substances at an office space Le rented in Stoughton. After receiving the orders and payment via Bitcoin, the men mailed the drugs to customers throughout the United States.
At the time of his arrest, McCall had been manufacturing and packaging controlled substances at the co-conspirators’ stash location in Stoughton and was wearing latex gloves and a respirator.
Over 19 kilograms of MDMA, almost seven kilograms of Ketamine, nearly one kilogram of cocaine, more than 10,000 counterfeit Xanax pills and over $114,000 in cash were seized by authorities during the investigation. Investigators also recovered a computer with the “EastSideHigh” vendor page open, numerous packages containing MDMA and Ketamine, various shipping and packaging materials and a pill press from the office space in Stoughton.
McCall is the final defendant in this case to be sentenced. On March 10, 2022, Le was sentenced to eight years in prison and three years of supervised release. Le was also ordered to forfeit more than 59 Bitcoin (representing a forfeiture in excess of $1.1 million), $114,680 in cash, $42,390 representing the proceeds from the sale of a 2018 BMW M3, along with other items including a pill press and currency counter. On Sept. 8, 2022, Pires was sentenced to 28 months in prison and three years of supervised release. The government recommended a sentence of 70 months in prison. Pires was also ordered to forfeit a 2013 Mercedes E sedan.
United States Attorney Rachael S. Rollins; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service’s Boston Division; Matthew B. Millhollin, Special Agent in Charge for the Homeland Security Investigations in New England; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Norfolk County District Attorney Michael W. Morrissey; and Jennifer De La O, Director of Field Operations of U.S. Customs and Border Protection, Boston Field Office made the announcement. Special assistance with the investigation was provided by the Homeland Security Investigations in Colorado; Postal Inspectors from around the country; and the Stoughton, Norwood and Brockton Police Departments. Assistant U.S. Attorney James E. Arnold of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Box Elder woman sentenced to 10 years in prison in fatal shooting on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder woman who admitted to a firearms crime after fatally shooting a man while she was in his car on the Rocky Boy’s Indian Reservation, was sentenced today to 10 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Shaide Jo Demontiney, 19, pleaded guilty in June to use of a firearm during and in relation to a crime of violence.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $3,474 restitution.
The government alleged in court documents that on Aug. 16, 2021, tribal police officers responded to a report of a shooting in Box Elder and found a deceased man. Officers learned that Demontiney had shot the man and driven away. Officers arrested Demontiney a short time later after the car she was driving broke down on the highway. Demontiney had a .380-caliber handgun and the victim’s cell phone. Demontiney told investigators that she had been in the car with the victim and had grabbed a handgun from her purse after he had offered her money and drugs for sex and touched her inappropriately. After the victim made another remark, Demontiney shot him in the chest.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case, which was investigated by the FBI and Rocky Boy’s Police Department.
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Boston Man Sentenced for Role in Armed Robbery of Brockton Cell Phone StoreRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for his role in the January 2019 robbery of a T-Mobile store in Brockton and shooting at police officers as he and his co-defendants fled the scene.
Dennis Martin, 27, of Brockton, was sentenced by U.S. Senior District Court Douglas P. Woodlock to eight years in prison and three years of supervised release. In August 2019, Martin pleaded guilty to conspiracy to interfere with commerce by robbery; interference with commerce by robbery; brandishing, using and carrying a firearm in relation to a crime of violence; and being a felon in possession of a firearm and ammunition.
Martin was charged in 2019 along with co-conspirators Stephan Rosser-Stewart, Darius Carter and Diovanni Carter.
On the evening of Jan. 26, 2019, Martin, Rosser-Stewart and Darius Carter entered a T-Mobile store in Brockton, carrying semi-automatic firearms, which they pointed at the store manager as they demanded cash and electronics. Darius Carter struck the store manager in the head with a firearm. The men stole approximately $25,000 in cash and electronics and then fled in a vehicle driven by Diovanni Carter.
Police located the getaway vehicle and a high-speed chase ensued, reaching speeds of over 70 mph in residential neighborhoods. During the chase, Diovanni Carter ordered the other men in the car to fire at pursuing police cruisers. Rosser-Stewart and Darius Carter fired a total of eight rounds at the pursuing police cruisers. Law enforcement apprehended Martin, Rosser-Stewart and Darius Carter after an object on the road disabled their vehicle and recovered the stolen phones, cash and the three firearms used in robbery. Diovanni Carter fled the scene when the car was stopped and was later apprehended in March 2019. Martin, Rosser-Stewart, Darius Carter and Diovanni Carter were each prohibited from possessing firearms and ammunition due to prior criminal convictions. Martin was previously convicted of armed robbery.
On Sept. 8, 2022, Rosser-Stewart, was sentenced to 16 years in prison and two years of supervised release. In March 2021, Darius Carter pleaded guilty and was sentenced to 14 years in prison and three years of supervised release after pleading guilty to his role in the robbery. In March 2020, Diovanni Carter was convicted by a federal jury and sentenced to over 22 years in prison.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Douglas Bartlett, Acting U.S. Marshal of the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Plymouth County District Attorney Timothy J. Cruz; Plymouth County Sheriff Joseph D. McDonald Jr.; and Brockton Police Chief Brenda Perez made the announcement. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime & Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Bayard man sentenced to 10 years in prison for child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that Timothy Andrew Marquez was sentenced on Sept. 27 to 10 years and one month in prison. Marquez, 27, of Bayard, New Mexico, pleaded guilty on Dec. 19, 2018, to receiving child pornography.
According to court records, on Dec. 18, 2017, Dropbox Inc. submitted a cyber tip to the National Center for Missing and Exploited Children regarding child pornography being downloaded into a Dropbox account associated with Marquez’s email address. The IP address associated with the uploaded photos came back to Marquez’s residence in Bayard.
In his plea agreement, Marquez admitted to receiving child pornography in his Dropbox account on Nov. 6, 2017, and that he knew the material depicted a child engaging in sexual activity with an adult.
Upon his release from prison, Marquez will be subject to five years of supervised release and must register as a sex offender.
Homeland Security Investigations, the New Mexico State Police and the Las Cruces Police Department investigated this case as part of the New Mexico Internet Crimes Against Children (ICAC) Task Force. Assistant United States Attorneys Eliot Neal and Marissa A. Ong prosecuted the case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
The ICAC Task Force Program is a nation-wide network of task forces including over 90 federal, state, local and tribal law enforcement agencies in New Mexico dedicated to investigating, prosecuting and developing effective responses to Internet crimes against children.
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Arizona meth conspiracy results in second local federal convictionRead the Press Release
CORPUS CHRISTI, Texas - A 55-year-old Corpus Christi resident has pleaded guilty to conspiring to possess with intent to distribute meth, announced U.S. Attorney Jennifer B. Lowery.
As part of his plea, Antonio Montes admitted to being involved in a conspiracy to distribute meth which spanned from March 1 to Oct. 22, 2021. He had agreed to receive packages of meth shipped from Arizona and would receive approximately $200 per box he accepted.
The investigation began in September 2021. At that time, law enforcement had discovered Montes was receiving parcels containing meth from Phoenix, Arizona, to then be distributed in the Corpus Christi area.
On Oct. 21, 2021, authorities executed a search warrant at a co-conspirator’s residence. There, they found a box containing meth residue. The address written on that box was traced to the residence of Montes which had been delivered there Oct. 5, 2021.
Law enforcement later learned that UPS delivered three packages to Montes. Each contained five pounds of meth and hydroponic marijuana. The delivery service had left the packages on the porch.
U.S. District Judge David S. Morales will impose sentencing on Dec. 21. At that time, Montes faces up to life in prison and a possible $10 million maximum fine.
He was permitted to remain on bond pending that hearing.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney J. Parker Gochenour is prosecuting the case.