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Thursday 22 September 2022
Peoria Man Sentenced to 28 Months in Federal Prison for Possessing a Firearm as a FelonRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Arnez J. Salazar, 26, of the 2800 block of Linn Street, was sentenced on September 21, 2022, to 28 months in federal prison for unlawful possession of a firearm by a convicted felon, to be followed by a three-year term of supervised release.
At the sentencing hearing before Senior U.S. District Judge Michael M. Mihm, the government presented evidence that on January 14, 2022, Peoria Police officers approached Salazar in a local pub in order to arrest him on an outstanding warrant. During the arrest, officers located a handgun inside the inner pocket of a coat Salazar wore into the pub and then hung on the back of his chair. The gun was a .380 caliber, semi-automatic pistol loaded with ammunition, including a round in the chamber. At the time, Salazar had multiple prior felony convictions prohibiting him from lawfully possessing a firearm.
A federal grand jury returned an indictment against Salazar in February 2022, following his arrest on a related federal criminal complaint in January 2022. Salazar pleaded guilty in May 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for possession of a firearm by a felon are up to 15 years’ imprisonment, up to five years of supervised release, and a possible fine of up to $250,000.
The Peoria Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Peoria Man Sentenced to 15 Years in Prison for Repeat Child Pornography OffenseRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, David Robertson II, 39, of the 500 block of Voris Street, was sentenced on September 9, 2022, to 15 years in prison for receipt of child pornography, to be followed by a lifetime term of supervised release.
At the sentencing hearing in front of U.S. District Judge James E. Shadid, the government presented evidence that in September 2021 Robertson was serving a term of supervised release for a prior federal conviction for receipt of child pornography. At that time, one of the conditions of Robertson’s supervised release allowed probation officers to conduct periodic, unannounced exams of computer equipment and/or communications devices, including phones, due to the nature of his prior conviction. During a routine probation home visit in September 2021, Robertson turned over a mobile phone and a tablet that he had not reported to either his probation officer or on his sex offender registry. Robertson indicated to authorities that the electronic devices would contain child pornography, which was confirmed by a preliminary examination. The U.S. Secret Service subsequently obtained and executed a search warrant for Robertson’s devices, which confirmed Robertson had downloaded child pornography. In addition, the investigation revealed that Robertson owned three unregistered email accounts and a previously unreported phone number, along with a browser history of websites indicative of child pornography. In total, the evidence showed that Robertson’s devices contained 52 videos and 1,680 images of child pornography.
As noted previously, at the time of this offense, Robertson was serving a term of supervised release related to his prior 2010 federal conviction for receipt of child pornography (for which he also served a ten-year sentence of imprisonment). Robertson had previously violated the terms of his supervised release in that 2010 federal case when he possessed obscene visual representations of the sexual abuse of children; his release was revoked in June 2020, and he was sentenced to a term of imprisonment of twelve months and a day, to be followed by a ten-year term of supervised release, for that first violation. For the instant second violation of the supervised release term, Robertson was sentenced to twenty-four months’ imprisonment, to run concurrently to the 15-year sentence imposed in this case.
Robertson was indicted in December 2021 and entered a guilty plea in March 2022. He has remained in the custody of the U.S. Marshals Service since his arrest.
The statutory penalties for receipt of child pornography after a previous conviction for production, possession, or receipt of child pornography are 15 to 40 years imprisonment, to be followed by a term of supervised release of five years up to life. Special assessments under the Justice for Victims of Trafficking Act are also possible.
The United States Secret Service and Peoria County Sheriff’s Office investigated the case. Assistant U.S. Attorney Katherine G. Legge represented the government in the prosecution.
The case against Robertson was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Passaic County Man Sentenced to 84 Months in Prison for Receiving and Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County man was sentenced to 84 months in prison for receiving and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
Vaughn Tiedeman, 49, of West Milford, New Jersey, previously pleaded guilty to receipt and possession of child pornography before U.S. District Judge Susan D. Wigenton in Newark federal court. Judge Wigenton imposed the sentence on Sept. 21, 2022, in Newark federal court.
According to documents filed in this case and statements made in court:
Between July 2018 and April 2019, Tiedeman downloaded and possessed more than 600 images of child sexual abuse, including images of young children and depictions of violence.
In addition to the prison term, Judge Wigenton sentenced Tiedeman to 10 years of supervised release and order him to pay restitution of $9,000 to the victims.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Acting Special Agent in Charge Richard W. Reinhold, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorneys Sarah A. Sulkowski of the Violent Crime Unit and Francesca Liquori, Chief of the Narcotics/Organized Crime and Drug Enforcement Task Force Unit, in Newark.
Defense counsel: Stephen Turano Esq., Newark
Parkville Man Sentenced for $335 Million Fraud, $615,000 Tax ViolationsRead the Press Release
KANSAS CITY, Mo. – A Parkville, Mo., man who was charged in two federal cases was sentenced in federal court today for his role in a $335 million scheme to defraud federal programs that award contracts to firms owned by minorities, veterans, and service-disabled veterans, and in a separate case to filing false tax returns that cheated the government out of more than $615,000 in taxes owed.
“This defendant pocketed millions of dollars in profits that should have gone to firms led by disabled veterans and minority owners,” said U.S. Attorney Teresa Moore. “He not only stole contracts from those firms, he cheated on his taxes and thus stole from honest citizens by not paying his fair share. Now he will go to prison and he will pay back every dollar gained through fraud and deception.”
Patrick Michael Dingle, 51, was sentenced by U.S. District Judge Roseann Ketchmark to eight years in federal prison without parole. The court also ordered Dingle to forfeit to the government $4,659,061, which represents his profit from the scheme. The court also ordered Dingle to pay $615,847 in restitution to the Internal Revenue Service and $82,704 in restitution to the Missouri Department of Revenue.
“The defendant’s actions impacted small business owners and veterans, hindered economic welfare and undermined the public’s faith in programs intended to help those who need them. The Department of Defense (DoD) Office of Inspector General, Defense Criminal Investigative Service and our law enforcement partners are dedicated to protecting the integrity of the procurement process and holding violators accountable,” said Special Agent in Charge Michael Mentavlos, DCIS Southwest Field Office. “We take these matters seriously and will continue to aggressively investigate fraud and corruption allegations that impact the DoD.”
“Conspiring to fraudulently obtain millions of dollars in government contracts from programs designed to benefit service-disabled veteran business owners steals opportunities from the deserving and lines the pockets of the greedy,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG thanks the Department of Justice and our law enforcement partners for their joint efforts to achieve justice in this case.”
“Defrauding the government is never acceptable, especially when taking advantage of programs designed to assist those minorities and veterans most in need,” said IRS Criminal Investigation Acting Special Agent in Charge Charles Miller. “IRS-CI is proud to partner in these investigations to keep egregious schemes like this at bay.”
On Sept. 13, 2021, Dingle pleaded guilty to the charges contained in both federal cases. Dingle pleaded guilty to one count of conspiracy to commit wire and major program fraud. Dingle also pleaded guilty, in a separate case, to one count of filing a false tax return.
$335 Million Fraud Conspiracy
Dingle admitted that he conspired with Matthew C. McPherson, 46, of Olathe, Kansas, to fraudulently obtain contracts set aside by the federal government for award to small businesses owned and controlled by veterans, service-disabled veterans and certified minorities.
Dingle was the operations manager for Zieson Construction Company located in North Kansas City, Mo. Dingle and his co-conspirators controlled and operated Zieson, which was originally formed in 2009 with Stephon Ziegler, 61, of Weatherby Lake – an African-American service-disabled veteran – as the nominal owner. Zieson’s primary business was obtaining federal construction contracts set aside for award to small businesses owned and controlled by service-disabled veterans or certified minorities. However, Ziegler did not control the day-to-day operations or the long-term decision making of Zieson. Dingle and his co-conspirators actually controlled and operated Zieson, and received most of the profits from Zieson.
Ziegler signed Zieson checks when requested to do so, signed bids for government jobs when requested to do so and served as a courier of checks and invoices when requested to do so. Ziegler did not participate in any way in the management and control of either day-to-day operations or long-term decision-making for Zieson.
Dingle and McPherson were not eligible for these set-aside contracts because they were not certified minorities or veterans. Although Zieson was not eligible, the firm received approximately 199 federal contracts set aside for award to minority-owned small businesses and veteran-owned small businesses between 2009 and 2018. The government paid Zieson approximately $335 million for those contracts, for which conspirators gained approximately $15 million in profit. Several of the set-aside contracts awarded to Zieson were valued in excess of $1 million, including a contract at Topeka, Kan., awarded on July 13, 2012, valued at approximately $4,125,800.
Dingle, McPherson, and others submitted false and fraudulent Past Performance Questionnaires in support of Zieson bids for set aside contracts.
McPherson was sentenced on Jan. 5, 2022, to two years and four months in federal prison without parole after pleading guilty to one count of conspiracy to commit wire fraud and major program fraud. He was ordered to forfeit to the government $5,516,786, which represents his share of the fraud proceeds.
Ziegler was sentenced on May 12, 2022, to 12 months in federal prison without parole after pleading guilty to making a false statement to the U.S. Department of Veterans Affairs.
False Tax Returns
Dingle also pleaded guilty, in a separate case, to filing a false tax return. Dingle admitted that he claimed $799,425 in fraudulent business expenses on his tax return for 2016. As a result of the false and fraudulent expenses offset on Dingle’s 2016 tax return, the government suffered a loss of approximately $349,784.
Dingle also admitted that he filed false tax returns over a four-year period from 2013 to 2016, which resulted in a total loss to the government of $615,847.
This case was prosecuted by Assistant U.S. Attorneys Paul S. Becker and Stacey Perkins Rock. It was investigated by the Department of Veterans Affairs, Office of Inspector General; the Department of Defense Criminal Investigative Service; the U.S. General Services Administration, Office of Inspector General; the U.S. Small Business Administration, Office of Inspector General; the Army Criminal Investigation Command, Major Procurement Fraud Unit; the Department of Agriculture, Office of Inspector General; IRS-Criminal Investigation; the U.S. Secret Service; the Air Force Office of Special Investigations, Procurement Fraud; the Naval Criminal Investigative Service; the Defense Contract Audit Agency - Operations Investigative Support (OIS); the U.S. Department of Labor, Office of Inspector General; and the Department of Labor, Employee Benefits Security Administration (EBSA).
Owner of Commercial Flooring Contractor Pleads Guilty to Participating in Kickback Scheme to Defraud a U.S. Army FacilityRead the Press Release
The owner of a Fairbanks, Alaska, commercial flooring company, pleaded guilty on Sept. 22 for his role in a conspiracy to provide kickbacks related to contracts for commercial flooring services at a U.S. Army Facility.
Benjamin W. McCulloch pleaded guilty to five-count felony charges filed on Aug. 25, 2022, in the U.S. District Court for the District of Alaska. According to the plea, from March 2016 to March 2021, McCulloch conspired to pay kickbacks to an employee of a prime contractor related to flooring construction contracts administered by the U.S. Army at Fort Wainwright. The charges state that McCulloch conspired to inflate the costs of four flooring construction subcontracts, and then provided the proceeds to his co-conspirator as kickbacks. During the five-year scheme, McCullough paid over $100,000 in kickbacks.
“When subcontractors and prime contractors at U.S. Army facilities collude, they undermine competition for government contracts and waste public funds intended to bolster our national defense,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The division and our law enforcement partners will bring to justice criminals who cheat on government contracts.”
“Those who engage in fraudulent kickback schemes undermine the government’s competitive contracting practices, and harm American taxpayers in the process,” said Special Agent in Charge Antony Jung of the FBI’s Anchorage Field Office. “Detecting and disrupting these schemes will always be a priority for the FBI, and together with our partners, we will hold offenders accountable.”
“Today’s plea is a fitting end for those who conspire to defraud the U.S. Army,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “The Army CID’s Major Procurement Fraud Field Office is proud to work with our federal law enforcement partners to protect the coffers of the U.S. government from those who break the law and threaten economic damage to the U.S. Army.”
“The government contracting process is supposed to be a healthy competition, not a rigged match with illegal kickbacks thrown in,” said Special Agent in Charge Bret Kressin of the IRS-Criminal Investigation, Seattle Field Office. “Mr. McCulloch’s greed not only undermined the U.S. Army, but it hurt our communities when the stolen funds went directly to line his coconspirators’ pockets.”
“Mr. McCulloch’s guilty plea is a crucial step forward in holding him, and potentially others, accountable for his illegal efforts to enrich himself and others by willfully committing a years-long fraud against the U.S. Army and American taxpayer,” said Special Agent in Charge Bryan D. Denny of the Department of Defense, Office of Inspector General (DOD-OIG), Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our partners will continually seek to identify and eliminate kickback schemes, such as those utilized by Mr. McCulloch, because they corrupt the DoD procurement system by unlawfully suppressing competition and increasing costs.”
The charges to which McCulloch pleaded guilty carry a maximum penalty of ten years in prison and a fine of $250,000. The fine for the anti-kickback conspiracy charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to his guilty plea, McCulloch has agreed to pay restitution.
The Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the District of Alaska, the FBI’s Anchorage Field Office, the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office, the DCIS’s Western Field Office in Seattle, and the IRS’s Criminal-Investigation Seattle Office are investigating this case.
Anyone with information in connection with this investigation is urged to contact the Antitrust Division’s San Francisco Office at 415-934-5300, the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or http://www.justice.gov/atr/contact/newcase.html, or the FBI’s Anchorage Field Office at 907-276-4441.
In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to federal government contracts, go to https://www.justice.gov/procurement-collusion-strike-force.
Organizer of Asheville Gun Store Burglary Is Sentenced to More Than 19 Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Jesse Lynn Williams, 34, of Asheville, was sentenced to 235 months in prison today for his role in the burglary of an Asheville gun store, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Chief U.S. District Judge Martin Reidinger also ordered Williams to serve three 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, and Chief David Zack of the Asheville Police Department (APD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Williams organized the burglary of Carolina Guns and Gear West, LLC (Carolina Guns and Gear), a Federal Firearms Licensee (FFL) located at 3106 Sweeten Creek Road, in Asheville. Williams recruited his two co-defendants, Lyron Deshawn Greenlee and Alexa Rae Basillo, to assist him with the burglary. Court records show that on January 7, 2022, Williams broke into the gun store and stole 33 firearms, while Greenlee and Bassillo served as lookouts or drivers during the burglary.
As part of the planning and preparation for the burglary, Williams and Bassillo customized satellite map imagery of the area surrounding the gun store, which diagrammed the location of the store and avenues of approach and escape near the store. The maps also identified where co-conspirators would be stationed as lookouts. Court records also show that Williams, assisted by Bassillo, acquired tools and equipment for the break-in, including two-way radios which co-conspirators used to communicate over the course of the burglary.
According to court documents, immediately after the burglary, Williams, Greenlee, and Bassillo traveled to Greenlee’s residence, where they divvied up the stolen firearms. Over the course of the investigation, law enforcement determined that Williams received 15 or 16 of the stolen firearms. To date, law enforcement have recovered eight of the 33 stolen firearms.
On January 10, 2022, law enforcement arrested Williams and Bassillo while the two were in Bassillo’s parked vehicle. At the time of the arrest, law enforcement recovered from the vehicle a firearm stolen from the gun store, a crowbar, bolt cutters, and other items used in the burglary, a homemade silencer, a loaded pistol, and a loaded SKS rifle that belonged to Williams.
On April 13, 2022, Williams pleaded guilty to theft of firearms from an FFL and aiding and abetting, and possession of a firearm by a convicted felon. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. Greenlee was sentenced last week to eight and a half years in prison. Bassillo is currently awaiting sentencing.
In making today’s announcement U.S. Attorney King thanked the ATF and APD for their investigation of the case.
The U.S. Attorney’s Office in Asheville is handling the prosecution.
Orange County Man Charged with Interfering with Flight Crew After Assault on Flight Attendant Was Captured on VideoRead the Press Release
LOS ANGELES – An Orange County man was charged today in a federal criminal complaint that alleges he punched a flight attendant in the back of the head during a flight from Mexico to Los Angeles – an assault that a fellow passenger recorded on video.
Alexander Tung Cuu Le, 33, of Westminster, is charged with one count of interference with flight crew members and attendants, a crime that carries a statutory maximum sentence of 20 years in federal prison.
Le is expected to make his initial appearance this afternoon in United States District Court in downtown Los Angeles.
According to an affidavit filed with the complaint, on September 21, Le flew on American Airlines flight 377 from San José del Cabo, Mexico to Los Angeles International Airport. Approximately 20 minutes after takeoff, Le exited his seat while flight attendants were conducting food and beverage service. Le grabbed one flight attendant’s left shoulder from behind and asked for coffee. Moments later, Le grabbed both of the flight attendant’s shoulders from behind. After the flight attendant stepped back and put up a defensive posture, Le walked to the front of the airplane.
Le then allegedly loitered near the first-class cabin and then sat in an unoccupied aisle near the wall dividing the first-class cabin and the main cabin of the aircraft. A different flight attendant approached Le and requested that Le return to his assigned seat. Le did not comply and allegedly stood up and assumed a fighting stance towards the flight attendant by making closed fists with both of his hands, which the flight attendant interpreted as a threat.
Around this time, Le allegedly swung his arm at the flight attendant and missed. The flight attendant decided to report Le’s behavior to the pilot, turned away from Le and walked towards the front of the airplane. At this time, Le rushed toward the flight attendant and punched him in the back of the head, which was witnessed by several passengers, including one who filmed the attack, according to the affidavit.
After assaulting the flight attendant, Le fled toward the back of the airplane. Several passengers apprehended Le near an exit row. Out of safety concerns, Le was moved to a different row, and his hands and legs were cuffed. Le continuously unbuckled his seatbelt, causing flight attendants to restrain him to the seat with seatbelt extenders.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI is investigating this matter.
Assistant United States Attorney Kellye Ng-McCullough of the General Crimes Section is prosecuting this case.
Nurse Sentenced to Prison for Tampering with Fentanyl VialsRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that BRYAN WILSON, 40, of Madison, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 24 months of imprisonment, followed by three years of supervised release, for tampering with fentanyl vials at the company where he was employed. Judge Shea also ordered Wilson to pay a $5,000 fine.
According to court documents and statements made in court, Wilson was employed as a nurse by The Vascular Experts, a Connecticut company that performs outpatient medical procedures. As part of his duties, Wilson was responsible for conducting sedations on patients and he had access to the secure area in his workplace that contained vials of drugs used as anesthetics, including fentanyl. In August and September 2021, Wilson took vials of fentanyl that were intended to be used to formulate infusion for patients. He used a syringe to withdraw the fentanyl from the vials and reinjected saline into the vials so that it would appear as if none of the narcotics were missing. When another nurse at the company noticed that vials had been tampered with, and Wilson was subsequently questioned by company officials, Wilson admitted that he stole the fentanyl and used it to treat a medical condition.
On February 10, 2022, Wilson pleaded guilty to one count of tampering with a consumer product.
Wilson, who is released on bond, is required to report to prison on January 9, 2023.
Wilson has surrendered his nursing license.
This matter was investigated by the Food and Drug Administration, Office of Criminal Investigations; the DEA’s Hartford Diversion Control Division; and the Connecticut Department of Consumer Protection, Drug Control Division. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
North Carolina Felon Sentenced to 52 Months for Illegally Possessing FirearmRead the Press Release
ALBANY, NEW YORK – Duquan McLeod, age 32, of Rockingham, North Carolina, was sentenced today to 52 months in prison for unlawfully possessing a loaded pistol as a felon.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his previously entered guilty plea, McLeod admitted that he possessed a 9mm semi-automatic pistol when Schenectady Police Department officers encountered him in downtown Schenectady on March 16, 2021. The patrol officers, who were responding to a call of individuals fighting, observed McLeod drop the pistol to the ground when they approached him. The pistol was equipped with a fully loaded 30-round magazine. A prior felony conviction for armed robbery prevented McLeod from legally possessing the firearm.
United States District Judge Glenn T. Suddaby also ordered McLeod to serve a 3-year term of supervised release following his release from prison.
This case was investigated by ATF and the Schenectady Police Department, with assistance from the Schenectady County District Attorney’s Office. This case was prosecuted by Assistant U.S. Attorney Emmet O’Hanlon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
North Alabama Law Enforcement Actions to Combat Fentanyl Distribution Leads to Five Men Charged in Federal IndictmentsRead the Press Release
BIRMINGHAM, Ala. – Federal grand jury indictments have been unsealed charging five men, in separate and unrelated incidents, for possessing and/or distributing fentanyl, announced U.S. Attorney Prim F. Escalona and Drug Enforcement Administration Special Agent in Charge Brad L. Byerley.
Working with state and local law enforcement, last month a federal grand jury indicted five individuals on federal charges related to possession or distribution of fentanyl, including distribution of fentanyl that resulted in death:
- A one-count indictment filed in U.S. District Court charges Theophylis Rayvon Pride aka OPI, 33, of Huntsville, with distribution of fentanyl resulting in death in July 2021 in Madison County.
- A two-count indictment filed in U.S. District Court charges JT Toombs, III, 37, of Alexander City, and Demarcus Leon Hill, 40, of Hoover, with conspiracy to possess with intent to distribute 40 grams or more of fentanyl in August 2021 in Talladega County.
- A six-count indictment filed in U.S. District Court charges Azarious Taron Williams, 25, and Darien Avante Arnold, 22, both of Florence, with conspiracy to distribute and possession with the intent to distribute methamphetamine and a substance containing fentanyl between November 2020 and June 2022 in Lauderdale County.
DEA investigated the cases along with Alabama Law Enforcement Agency, Huntsville Police Department, Lauderdale County Drug Task Force, and the Franklin County Sheriff’s Office. Assistant United States Attorneys Robert J. Becher, M. Blake Milner, and John M. Hundscheid are prosecuting the cases.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Nigerian National Residing in Cleveland Sentenced to Prison for Serving as “Money Mule” in Financial Fraud SchemesRead the Press Release
CLEVELAND – A Nigerian national residing in Cleveland was sentenced today by U.S. District Judge Donald C. Nugent to two and a half years in prison and ordered to pay $438,604.89 in restitution after she pleaded guilty to her role as a “money mule” for various financial fraud schemes that targeted individuals in the United States and elsewhere.
According to court documents, from June 2018 to August 2020, Deborah Anderson, 30, of Nigeria, was part of a financial fraud conspiracy that obtained money from victims through fraudulent investment opportunities, romance scams, fraudulent sales or rentals and other types of schemes.
Court documents show that Anderson served as a “money mule” or someone who transfers or moves illegally acquired money on behalf of someone else. As part of the conspiracy, victims transferred money to accounts controlled by Anderson, who, in turn, transferred the funds to various unknown individuals in Nigeria.
Additionally, court documents state that Anderson used victim funds to purchase personal items and later exported those items to Nigeria.
In total, victims suffered a combined loss of $438,604.89 as a result of the various scams.
Anderson pleaded guilty to one count of wire fraud in June 2022. As part of the sentencing, Anderson was ordered to surrender to the Bureau of Immigration and Customs Enforcement, U.S. Department of Homeland Security, at the conclusion of her sentence.
The investigation preceding the indictment was conducted by Homeland Security Investigations (HSI). This case was prosecuted by Assistant U.S. Attorneys Brian M. McDonough and Kathryn Gaughan Andrachik.
Nacogdoches Man Sentenced for Federal Drug Trafficking and Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Nacogdoches man has been sentenced for federal drug trafficking and firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Timothy Ray Hill, Jr., 28, pleaded guilty on Feb. 17, 2022, to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime and was sentenced to 130 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on March 20, 2021, law enforcement officers responded to a private party in San Augustine, Texas where a man was brandishing a firearm. Upon arrival, a sheriff’s deputy encountered Hill, who was walking toward him with his hand on the grip of a pistol that was protruding from his front pant pocket. After Hill ignored the deputy’s commands to take his hand off the gun, a police officer deployed his taser against Hill to end the standoff. The deputy then searched Hill and recovered the loaded pistol, 394 methamphetamine pills, and a large amount of cash.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the San Augustine Police Department, the San Augustine County Sheriff’s Office, and the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney John B. Ross.
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Mississippi Tax Preparer Sentenced to Prison for Filing False Client ReturnsRead the Press Release
A Mississippi man was sentenced today to 27 months in prison for preparing false tax returns for his clients.
According to court documents and statements made in court, Orland Reed worked at a Gulfport tax return preparation business. Between 2012 and 2014, Reed prepared tax returns for clients that included one or more false items, including false education credits, dependent information, federal income tax withholdings, and retirement contributions in an effort to generate larger refunds from the IRS than the clients were entitled to receive. At times, Reed also listed a different tax preparer even though he prepared the returns himself.
In addition to preparing false tax returns, on at least two occasions Reed misappropriated portions of his clients’ refunds that were sent by the IRS to the tax preparation business in the form of prepaid debit cards. Specifically, Reed withdrew some of the funds on the cards before delivering them to the clients.
In addition to the term of imprisonment, U.S. District Judge Taylor B. McNeel ordered Reed to serve one year of supervised release and to pay $69,185 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Darren J. LaMarca of the Southern District of Mississippi made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Stan Harris for the Southern District of Mississippi prosecuted the case.
Mississippi Tax Preparer Sentenced to Prison for Filing False Client ReturnsRead the Press Release
Jackson, Miss. - A Mississippi man was sentenced today to 27 months in prison for preparing false tax returns for his clients.
According to court documents and statements made in court, Orland Reed worked at a Gulfport tax return preparation business. Between 2012 and 2014, Reed prepared tax returns for clients that included one or more false items, including false education credits, dependent information, federal income tax withholdings, and retirement contributions in an effort to generate larger refunds from the IRS than the clients were entitled to receive. At times, Reed also listed a different tax preparer even though he prepared the returns himself.
In addition to preparing false tax returns, on at least two occasions Reed misappropriated portions of his clients’ refunds that were sent by the IRS to the tax preparation business in the form of prepaid debit cards. Specifically, Reed withdrew some of the funds on the cards before delivering them to the clients.
In addition to the term of imprisonment, U.S. District Judge Taylor B. McNeel ordered Reed to serve one year of supervised release and to pay $69,185 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Darren J. LaMarca of the Southern District of Mississippi made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Stan Harris for the Southern District of Mississippi prosecuted the case.
Minneapolis Man Pleads Guilty to Violent Carjacking Outside Northeast Minneapolis Restaurant, Admits to Two Additional Armed Carjackings in Golden ValleyRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has pleaded guilty to a violent carjacking of a woman outside her place of work in northeast Minneapolis and admitted his involvement in two additional armed carjackings, announced U.S. Attorney Andrew M. Luger.
According to court documents, on June 9, 2022, Shamir Nathann Black, 18, and an unidentified accomplice approached a woman outside of her place of work and demanded her car keys. Black proceeded to push the victim to the ground and hit her on the head with a firearm. A bystander attempted to assist the victim but was also assaulted by Black. During the struggle, Black discharged the firearm in the bystander’s direction. Black and an accomplice then got into the victim’s vehicle, but surrounding witnesses pulled Black from the driver’s seat and put him on the ground. Black and his accomplice fled the scene on foot.
After arriving at the scene, officers with the Minneapolis Police Department located a Shadow Systems 9mm semiautomatic pistol wrapped in a gray sweatshirt. The firearm had been reported stolen in Prior Lake in April 2022. Investigators reviewed a social media video that showed Black waving around a handgun that matched the firearm recovered at the crime scene. Further investigation revealed that a Volkswagen Jetta had been taken in a Prior Lake home burglary on the same night the firearm was stolen. Law enforcement later recovered the stolen Jetta from Black’s Minneapolis residence. On June 24, 2022, Black was taken into custody.
Black pleaded guilty on September 20, 2022, before U.S. District Judge Wilhelmina Wright to one count of carjacking. As part of the plea, Black also admitted to being involved in two additional armed carjackings in Golden Valley this past spring. Black faces up to 15 years’ imprisonment for the carjacking and will be sentenced at a later date.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, the Golden Valley Police Department, and the Hennepin County Sheriff’s Office.
Assistant U.S. Attorney Lauren Roso is prosecuting the case.
Mid-State Man Pleads Guilty to Federal Drug Distribution and Firearms ChargesRead the Press Release
NASHVILLE – Rodd Griffin, 42, of Cunningham, Tennessee, pleaded guilty today in U.S. District Court to possession with intent to distribute methamphetamine and heroin, and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
According to the plea agreement, law enforcement began investigating Griffin in January 2020, after receiving a tip that he was selling heroin from his home in Cunningham, Tenn. Law enforcement officers then made a series of controlled buys of heroin and methamphetamine from Griffin and also received information that Griffin travelled to Atlanta on a regular basis to pick up large amounts of heroin and methamphetamine.
On January 16, 2020, law enforcement officers executed a search warrant at Griffin’s home and recovered three handguns and two rifles, one of which was a FN M16A2 with a “burst” selector and a suppressor, and embossed with “Property of the U.S. Government.” Officers also seized $40,000 in $5,000 bundles; a total of 1300g of methamphetamine; 232.4g of heroin; and 400g of marijuana.
While officers were conducting the search, Griffin arrived home, and a search of his person and vehicle yielded digital scales and other paraphernalia associated with illegal substances, and more than $6,000 cash, which included some of the buy money from a previous controlled buy.
Griffin was also found to have been previously convicted of a felony and was prohibited from possessing firearms.
The plea agreement, if accepted by the Court, calls for Griffin to be sentenced to 23 years in prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives; the 19th Judicial District Drug Task Force; and the Montgomery County Sheriff’s Office. Special Assistant U.S. Attorney Steven T. Brantley is prosecuting the case.
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Mexican man convicted of smuggling over 8 kilos of narcotics in candy boxRead the Press Release
McALLEN, Texas – A federal jury has convicted a 35-year-old U.S. citizen residing in Monterrey, Mexico, for his part in smuggling two kilograms of cocaine and six kilograms of meth, announced U.S. Attorney Jennifer B. Lowery.
They deliberated for approximately 45 minutes following a four-day trial before returning a guilty verdict against Nestor Alan Garcia on all six counts as charged.
According to the testimony, Garcia attempted to enter the Hidalgo Port of Entry in a taxi on May 13. He claimed he was going to a party in McAllen and had a box of “pulparindo” candy, puppies and various meat products. Authorities referred Garcia to secondary inspection. There, a search of the box of candy revealed approximately 6.2 kilograms of meth and 2.08 kilograms of cocaine.
Law enforcement testified Garcia had attempted to hide the narcotics in a box of candy and later lied when he claimed he did not know how the drugs had been placed in the box or came into his custody. He coordinated the smuggling of the narcotics with his mother for days ahead of the smuggling event at the Hidalgo Port of Entry.
The defense attempted to convince the jury Garcia had no knowledge of the drugs and was simply doing a favor for his mother. The jury did not believe those claims and found him guilty as charged.
Sentencing has been set for Dec. 8 before U.S. District Judge Randy Crane. Garcia faces a mandatory minimum of 10 years and up to life in federal prison and a possible $10 million maximum fine.
He has been and will remain in custody pending sentencing.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Eliza Carmen Rodriguez and Lee Fry prosecuted the case.
Maryland Man Sentenced to Five Years in Prison for Firearms Trafficking ConspiracyRead the Press Release
WASHINGTON – James Hutchings Jr., 41, of Waldorf, Maryland, was sentenced today to five years in prison on a firearms trafficking conspiracy charge, announced U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. and Charlie J. Patterson, Special Agent in Charge of the Washington Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Hutchings was found guilty by a jury in May 2022, following a trial in the U.S. District Court for the District of Columbia. He was sentenced by the Honorable Chief Judge Beryl A. Howell. Following his prison term, he will be placed on three years of supervised release.
The conspiracy underpinning the verdict and sentence began in 2018, when Hutchings helped facilitate the transfer of multiple firearms into the hands of a convicted felon and narcotics trafficker, Linwood Douglas Thorne, 50, of Washington, D.C. Hutchings worked with his firearms supplier, a straw purchaser named Kofi Appiah, 33, of Temple Hills, Maryland, to help purchase the firearms in the state of Georgia and transport them into the District of Columbia.
At trial, the government presented a myriad of digital evidence, showcasing the defendant’s involvement in the conspiracy, to include his purchase orders of firearms, his online payment process, and his extensive connections with Thorne’s enterprise. The jury quickly returned a guilty verdict based on the evidence.
Appiah was previously sentenced to 37 months’ imprisonment as a result of his role in this conspiracy, and Thorne awaits sentencing after a jury convicted him of his narcotics trafficking enterprise. Thorne faces up to life in prison.
In announcing the sentence, U.S. Attorney Graves Special Agent in Charge Jacobs, and Special Agent in Charge Patterson commended the work of those who investigated the case, including those from the ATF and FBI. They also expressed appreciation for the assistance provided by the U.S. Marshals Service, Prince George’s County, Md. Police Department, and the U.S. Attorney’s Office for the District of Maryland. Additionally, they commended the work of the U.S. Attorney’s Office for the Middle District of Georgia, which assisted in the arrest of Appiah, in 2019.
Finally, they expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorney Gregory Rosen, who indicted and prosecuted the case, and Assistant U.S. Attorney Samuel Frey, who tried the case alongside Paralegal Specialist Alexis Spencer-Anderson. They also acknowledged the work of former Assistant U.S. Attorneys Brandon Regan and Andrea Duvall, who assisted in the case.
Marion County man admits to fentanyl chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Edward Bell, Jr., of Fairmont, West Virginia, has admitted to possessing fentanyl, United States Attorney William Ihlenfeld announced.
Bell, 25, pleaded guilty this week to one count of “Possession with Intent to Distribute Fentanyl.” Bell admitted to possessing fentanyl in Marion County in March of 2021.
Bell faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Three Rivers Drug Task Force and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Manchester Man Sentenced to 3 Years in Federal Prison for Distributing Fentanyl in HartfordRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that RAYMOND JURADO, 36, of Manchester, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 36 months of imprisonment, followed by three years of supervised release, for distributing fentanyl
According to court documents and statements made in court, in 2017, the FBI’s Northern Connecticut Gang Task Force and Hartford Police Department received information that Jurado’s associate, Randy Texidor, was distributing significant quantities of heroin. Between October and December 2017, investigators made eight controlled purchases of escalating quantities of heroin and/or fentanyl from Texidor, and on another four occasions purchased heroin/fentanyl from Jurado. The investigation revealed that Texidor and Jurado used an apartment on Wadsworth Street in Hartford to process, package and store heroin. On February 13, 2018, a court-authorized search of the apartment revealed approximately 92 grams of fentanyl, 23 grams of heroin, 500 dose bags of suspected heroin/fentanyl, items used to process and package narcotics, a .380 caliber pistol, and $5,981 in cash.
Jurado and Texidor were arrested on February 13, 2018. On April 28, 2022, Jurado pleaded guilty to conspiracy to possess with intent to distribute fentanyl.
Jurado, who is released on bond, is required to report to prison on November 9.
Texidor pleaded guilty to fentanyl distribution and gun possession offenses and, on March 18, 2021, was sentenced to 72 months of imprisonment.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The case was being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Madison County Man Sentenced to 240 Months for Production of Child PornographyRead the Press Release
FRANFORT, Ky. — A Richmond, Ky., man, Scotty Dale Johnson, 51, was sentenced on Thursday, to 240 months in federal prison, by U.S. District Judge Gregory Van Tatenhove, for production of child pornography.
According to Johnson’s plea agreement, he created a Snapchat account, where he purported to be a teenage female. Using that account, Johnson then friended teenage boys, some of who he knew in real life and some he met online and engaged in sexual chatting with the boys. One victim, known by Johnson, was persuaded, induced, enticed, or coerced to send sexually explicit images of himself, via Snapchat, believing he was corresponding with a teenage female. The victim became suspicious that the account was fraudulent and eventually reported it to law enforcement.
Law enforcement eventually obtained a warrant for the Snapchat account and discovered that Johnson was corresponding with over 1000 different individuals, including several minor males. Johnson admitted that he attempted to, or did, persuade, entice, or coerce at least eight additional minor victims to produce sexually explicit images.
Johnson pleaded guilty in March 2021.
“This disgraceful conduct involved both predatory deception and sexual exploitation of a minor,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “Sadly, this case serves as a stark reminder of the serious risks minors face when online. That means we must all be diligent in protecting them and demonstrating safe online activity. Due to the work of our enforcement partners, fortunately, this case can also serve as a warning to those who engage in this conduct: the consequences will likely be a significant prison sentence.”
"This case demonstrates the grave dangers that children face online, where predators can pretend to be anyone in order to target the most vulnerable among us,” said Special Agent in Charge Jodi Cohen, FBI Louisville. “With this sentencing, we have removed a dangerous child predator from our community, and a clear message has been sent that those who seek to exploit children will be held accountable.”
Under federal law, Johnson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
United States Attorney Shier; Special Agent in Charge Cohen; Col. Phillip Burnett, Commissioner, Kentucky State Police; and Chief Joe Monroe, University of Kentucky Police Department, jointly announced the sentence.
The investigation was conducted by the FBI, KSP, and the University of Kentucky Police Department. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Lebanon Man Sentenced to 10 Years in Federal Prison for Trafficking Methamphetamine in Parke, Clay, and Vigo CountiesRead the Press Release
TERRE HAUTE – Max W. Woodard II, 51, of Lebanon, Indiana, was sentenced to ten years in federal prison after pleading guilty to possession with intent to distribute methamphetamine.
According to court documents, on April 19, 2022, a law enforcement officer stopped Woodard’s vehicle for a traffic violation near U.S. 40 and North Miami Gardens Street in Vigo County, Indiana. The officer identified Woodard as the driver and sole occupant of the vehicle. Woodard appeared nervous when the officer approached his vehicle, and he did not comply with the officer’s commands. The officer asked Woodard to exit the vehicle, but Woodard refused. The officer attempted to open Woodard’s door, but it was locked. The officer continued to ask Woodard to exit the vehicle and he continued to refuse.
Another officer with a police K9 arrived on the scene and the K9 alerted to the presence of controlled substances inside the vehicle. Officers searched the vehicle and found a black bag containing 477 grams of methamphetamine. Woodward was traveling to Terre Haute, Indiana to sell the methamphetamine when he was stopped by police. Woodard was taken into custody and transported to jail.
The next day, on April 20, 2022, investigators went to Woodard’s residence in Lebanon, after Woodard consented to a search of his residence. The officers found two loaded firearms in Woodard’s couch: a black 9mm handgun and .22 caliber handgun. Two additional firearms were surrendered to law enforcement by a third-party who had removed the firearms from Woodard’s residence shortly before officers’ arrival. All four firearms belonged to Woodard.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, made the announcement.
This case was investigated by DEA. The Vigo County Sheriff’s Office, Boone County Sheriff’s Office and Terre Haute Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Woodard be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney M. Kendra Klump who prosecuted this case.
Las Vegas Man Sentenced to over Four Years in Prison for Damaging U.S. CourthouseRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced yesterday by U.S. District Judge Andrew P. Gordon to 51 months in prison followed by three years of supervised release for trying to burn down the Foley Federal Building and U.S. Courthouse in 2020.
In June 2022, Marty Clark (32) pleaded guilty to depredation against property of the United States.
According to court documents and admissions made in court, on November 7, 2020, Clark intended to set fire to the Foley Federal Building and U.S. Courthouse, located in downtown Las Vegas. At approximately 3:20 a.m., Clark poured gasoline on wood framing at the building’s front entrance and set fire to the framing. A security officer stationed inside the building attempted to stop Clark. Clark pushed the officer to escape and then fled the scene. Clark caused approximately $5,000 in damages to the building.
U.S. Attorney Jason M. Frierson for the District of Nevada, Special Agent in Charge Patrick Gorman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (San Francisco Field Division), and U.S. Marshal Gary Schofield made the announcement.
The case was investigated by ATF, Las Vegas Fire and Rescue, U.S. Marshals Service, FBI, Federal Protective Service, and the Las Vegas Metropolitan Police Department All-Hazard Regional Multi-Agency Response Section. Assistant U.S. Attorney Bianca Pucci prosecuted the case.
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Justice Department Announces $21.72 Million to Reduce Sexual and Domestic Violence on Campus, Support Children and Youth and Engage Men and Boys as AlliesRead the Press Release
The Justice Department announced today nearly $22 million in upcoming grant awards to address and prevent sexual assault, domestic violence, dating violence, and stalking on college campuses, provide services to youth victims and children exposed to such violence and engage men and boys as allies.
Specifically, the Office on Violence Against Women (OVW) will award $10,688,200 through 36 grants to address and prevent domestic violence and sexual assault on college campuses through the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence and Stalking on Campus Program (Campus). In addition, the Consolidated Youth and Engaging Men Grant Program (CYEM) will award $11,031,653 through 25 grants to implement programming that encourages men and boys to be role models and change agents in their communities working toward the goal of eliminating sexual and domestic violence.
“Studies show that approximately one in five women surveyed have been victimized by sexual assault while in college,” said Associate Attorney General Vanita Gupta. “We need to support college campuses with the resources to create a campus culture that is not tolerant of sexual assault or dating violence. These grants will help colleges and universities develop prevention policies, offer survivor-centered services, and train campus police to meet the needs of their students. These grants also provide critical intervention services to children and young adults, in addition to engaging them to be leaders in combatting violence.”
Of particular note, the Campus awards include support for historically Black colleges and universities (HBCUs), Hispanic serving institutions (HSIs), and Tribal colleges and universities (TCUs).
“One of OVW’s top priorities is to improve our outreach and services to underserved communities,” said OVW Acting Director Allison Randall. “We recognize that HBCUs, HSIs and TCUs face unique issues and challenges in preventing and responding to campus violence and we’re honored to work with grantees in 2023 and in the years to come to support survivors. We’re grateful to announce these awards during September when we are celebrating National Hispanic-Serving Institutions Week and in recognition of the National HBCU Week conference held by the White House.”
The Campus Program supports higher education institutions in developing services and programs that are designed to address and prevent sexual assault, domestic violence, dating violence and stalking on campus. Grantees are required to adopt a multidisciplinary response program that involves student affairs, student health, athletics, residence life, law enforcement and victim service providers. They also provide incoming students with prevention and educational programs about sexual and domestic violence, training for campus police and security and training for judicial and disciplinary board members.
The CYEM Program serves victims 24 and younger and promotes boys’ and men’s roles in combating violence against women and girls. Grantees provide services for youth who are victims of or exposed to sexual and domestic violence, youth victims of sex trafficking and commercial sexual exploitation, counseling, mentoring and support for non-abusing parents and caretakers. Grantees also provide training for programs on how to safely identify children and families who are experiencing domestic violence and refer them to programs that can provide services. Grantees also create public education campaigns to encourage men and boys to be allies to women and girls in preventing sexual and domestic violence.
OVW will announce FY23 grant solicitations for both grant programs at the in late fall. Please visit www.justice.gov/ovw for more information on upcoming grant opportunities.
Insurance Broker Charged in $4 Million Investment Fraud and Ponzi SchemeRead the Press Release
INDIANAPOLIS – A federal grand jury has charged Brian Simms, 44, of Lebanon, Indiana, with six counts of Wire Fraud. Simms was arrested yesterday and made his initial appearance in federal court in Indianapolis yesterday afternoon.
According to court documents, Simms was a licensed insurance broker with his company Brendanwood Financial Brokerage LLC. Simms was not licensed to sell securities nor registered to provide financial advising services. Nevertheless, beginning in 2013, Simms began inducing clients to cash out or liquidate their traditional and long-term insurance products and investments and reinvest the funds with Simms at Brendanwood. Simms allegedly made materially false and fraudulent pretenses, claims, representations, and promises to victim investors that he would invest their funds in investment products—when, in fact, he intended to use their funds for his own personal benefit. Rather than investing the victim investors’ in investment products as promised, Simms used the funds to pay business expenses related to Brendanwood such as payroll for its employees, or for his own personal expenditures, including payments to credit cards, Amazon, grocery stores, gasoline, restaurants, and utilities.
To conceal his scheme Simms created false financial statements. Simms also misappropriated victim investors’ money to make limited, Ponzi-type payments to other victim investors. Simms mislead the victim investors to believe that payments he made to them represented returns on proper investments, when they were in fact funds misappropriated from other victim investors. In total, Simms misappropriated approximately $3,995,535 from Victim Investors.
Simms made his initial court appearance today before U.S. Magistrate Tim A. Baker of the U.S. District Court for the Southern District of Indiana and was released on his own recognizance under pretrial supervision. If convicted, he faces a maximum penalty of 20 years in federal prison for each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Investment frauds and Ponzi schemes deprive victims of their hard-earned savings and financial security,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “The charges and ongoing investigation in this case demonstrate that our office and our federal and state law enforcement partners will work tirelessly to ensure that those who abuse positions of trust to satisfy their own greed will face the consequences. I encourage investors and any other members of the public who may have additional relevant information about the allegations against Brian Simms and Brendanwood Financial Brokerage to come forward to the FBI.”
“This indictment should serve as a reminder of the FBI’s commitment to aggressively investigate those who utilize their positions of trust to commit financial fraud,” said Robert Middleton, Acting Special Agent in Charge of the Federal Bureau of Investigation’s Indianapolis Field Office. “We will continue to work with our partners to protect the financial well-being of honest, hard-working Americans.”
“Regulating securities to protect your hard-earned money is one of the most vital roles under the office of Secretary of State,” said Indiana Secretary of State Holli Sullivan. “Hoosiers can check with our office to see if the business or individual seeking investment is properly registered, and you can contact us if anything seems suspicious.”
The case is being investigated by the Federal Bureau of Investigation and the Indiana Secretary of State’s Securities Division.
If you believe that you have information relating to allegations of fraud involving Brendanwood Financial Brokerage LLC or Brian Simms, contact the FBI’s Indianapolis Field Office at 317-595-4000.
U.S. Attorney Myers thanked Assistant United States Attorney Tiffany J. Preston, who is prosecuting this case.
Inmate Sentenced to 30 Months for Attempting to EscapeRead the Press Release
RALEIGH, N.C. – A federal inmate was sentenced today to 30 months for attempting to escape from the Federal Correctional Institution in Butner, North Carolina (“FCI Butner”).
According to court documents, Charles Asher, 62, an inmate at FCI Butner at the time of the offense, was found hiding in the bushes on the compound at approximately 9:00 p.m. on September 14, 2020, near the exit door of the institution. At the time he was discovered, Asher was required per FCI Butner orders and policy to be in his assigned housing unit. Asher was found with multiple unauthorized items that could be used to effectuate an escape, including: a homemade rope approximately 14 feet in length, grey gloves, a blue mattress cover, and a homemade cardboard replica handgun wrapped with black electrical tape.
Asher previously pled guilty to the sole count of attempted escape from prison pursuant to 18 U.S.C. § 751(a), on June 9, 2022.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after United States District Judge Terrence W. Boyle sentenced Asher. The Federal Bureau of Prisons investigated the case and Special Assistant U.S. Attorney Mallory Brooks Storus prosecuted the case.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-00120-BO.
Indianapolis Woman Sentenced to over Seven Years in Federal Prison for Armed Robbery and Carjacking of a Lyft DriverRead the Press Release
INDIANAPOLIS – Kenyasia Edmond, 20, of Indianapolis, was sentenced to eighty-five months in federal prison after pleading guilty to robbery, carjacking, and brandishing a firearm in furtherance of a crime of violence.
According to court documents, during October 2020, investigators with the Indianapolis Metropolitan Police Department and Federal Bureau of Investigation were investigating a string of armed robberies. The robberies were of Lyft drivers and were alleged to have been perpetrated by two young females. On October 22, 2020, Kenyasia Edmond, then 18 years old, and Taa’mya Alisa Womack, then 17 years old, of Indianapolis, hailed a Lyft to pick them up from the Glendale area of Indianapolis. When the Lyft arrived Edmond and Womack entered the back seat of the vehicle. During transit to their destination Edmond and Womack placed guns against the victim’s head and ordered her to stop the vehicle. Once the vehicle came to a stop, the victim and Edmond exited from the vehicle. Edmond pushed the victim to the ground, placed her foot on the victim’s back and ordered her not to move. Edmond and Womack then fled the area in the victim’s vehicle.
The victim ran to a nearby gas station and called the police. Later that evening investigators spotted a vehicle matching the description of the victim’s car. Investigators conducted a traffic stop on the vehicle, which was occupied by Edmond, Womack, and a juvenile who was not involved in the carjacking. After confirming that the vehicle was stolen, officers ordered the three occupants to exit the vehicle. While placing Edmond under arrest, investigators heard what they believed to be a metallic object fall to the ground. A subsequent search of the area revealed a 9mm semiautomatic pistol.
During a search of the vehicle, investigators located the victim’s cell phone and other items belonging to the victim. In addition to those items, investigators located clothing which matched the description of the clothing the victim said the robbers wore.
Edmond was taken to IMPD headquarters where she waived her rights and agreed to be interviewed. During the interview Edmond informed investigators that she hailed the Lyft for the purpose of robbing the driver. While Edmond admitted that a firearm was used during the commission of the robbery and carjacking, she stated that it was Womack who wielded the weapon. Womack was prosecuted as an adult in Marion County courts.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
FBI investigated the case and IMPD provided valuable assistance. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Edmond be supervised by the U.S. Probation Office for three years following her release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
IRS Obtains Court Order Authorizing Summons for Records Relating to U.S. Taxpayers Who Failed to Report and Pay Taxes on Cryptocurrency TransactionsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, David A. Hubbert, Deputy Assistant Attorney General for the Justice Department’s Tax Division, and Charles P. Rettig, Commissioner of the Internal Revenue Service (“IRS”), announced that U.S. District Judge Paul G. Gardephe entered an order on September 22, 2022, authorizing the IRS to issue a so-called John Doe summons requiring M.Y. Safra Bank to produce information about U.S. taxpayers who may have failed to report to the IRS, and pay taxes on, cryptocurrency transactions. Specifically, the IRS summons seeks information about customers of SFOX, a cryptocurrency prime broker, who used banking services that M.Y. Safra Bank offered to SFOX customers engaged in cryptocurrency transactions. As described further in the IRS’s petition in support of the summons, though taxpayers who transact in cryptocurrencies are required to report any associated profits and losses on their tax returns, the IRS’s experience has demonstrated significant tax compliance deficiencies relating to cryptocurrencies and other digital assets.
U.S. Attorney Damian Williams said: “Taxpayers are required to truthfully report their tax liabilities on their returns, and liabilities that arise from cryptocurrency transactions are not exempt. The government is committed to using all of the tools at its disposal, including John Doe summonses, to identify taxpayers who have understated their tax liabilities by not reporting cryptocurrency transactions, and to make sure that everyone pays their fair share.”
Deputy Assistant Attorney General David A. Hubbert said: “Taxpayers who transact with cryptocurrency should understand that income and gains from cryptocurrency transactions are taxable. The information sought by the summons approved today will help to ensure that cryptocurrency owners are following the tax laws.
IRS Commissioner Charles P. Rettig said: “The government’s ability to obtain third-party information on those failing to report their gains from digital assets remains a critical tool in catching tax cheats. The court’s granting of the John Doe summons reinforces our ongoing, significant efforts to ensure that everyone pays their fair share. Taxpayers earning income from digital asset transactions need to come into compliance with their filing and reporting responsibilities.”
According to the allegations in the documents filed in support of the petition to authorize the John Doe summons, and other information in the public record:
SFOX is a cryptocurrency prime dealer and trading platform that connects digital currency exchanges, over-the-counter virtual currency brokers, and liquidity providers globally. SFOX has over 175,000 registered users who have collectively undertaken more than $12 billion in transactions since 2015. Based on its recent experiences with cryptocurrencies, the IRS has strong reason to believe that many virtual currency transactions are not being properly reported on tax returns. Among other reasons, there is no third-party reporting to the IRS in connection with such transactions, and summonses served on other cryptocurrency dealers have revealed significant underreporting of such transactions. Further, IRS investigations have identified at least ten U.S. taxpayers who used SFOX’s services for cryptocurrency transactions but failed to report those transactions to the IRS as required by law.
SFOX has partnered with M.Y. Safra to offer SFOX users access to cash-deposit bank accounts. SFOX users were able to use their funds at M.Y. Safra to buy and sell positions in virtual currency from SFOX. Based on M.Y. Safra’s arrangement with SFOX, the IRS expects that in response to the John Doe summons, M.Y. Safra will be able to provide information about the identities and cryptocurrency transactions of SFOX users who also used M.Y. Safra’s services—which the IRS will then be able to use in conjunction with other information to examine whether these users complied with the internal revenue laws.
In this action, the district court granted the IRS permission to serve what is known as a John Doe summons on M.Y. Safra. There is no allegation in this action that M.Y. Safra engaged in any wrongdoing. Rather, the IRS utilizes John Doe summonses to obtain information about possible violations of the internal revenue laws by individuals whose identities are unknown. The John Doe summons directs M.Y. Safra to produce records that will enable the IRS to identify U.S. taxpayers who were customers of SFOX and who engaged in cryptocurrency transactions that may not have been properly reported on tax returns. In parallel, the IRS was authorized on August 15 by the U.S. District Court for the Central District of California to serve a John Doe summons on SFOX itself.
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This case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Jean-David Barnea is in charge of the case.
Harrison County woman admits to firearm chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Laken N. Swiger, of Clarksburg, West Virginia, has admitted to conspiring with another individual to violate federal firearms laws, United States Attorney William Ihlenfeld announced.
Swiger, 28, pleaded guilty this week to one count of “Conspiracy to Violate Federal Firearms Laws,” and one count of “False Statement During Purchase of Firearm.” She admitted to knowingly making a false and fictitious written statement to purchase a firearm.
She is facing up to 5 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Harrison County man admits to gun chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Neal Boram, II, of Clarksburg, West Virginia, has admitted to unlawfully possessing a firearm, United States Attorney William Ihlenfeld announced.
Boram, 35, pleaded guilty this week to one count of “Unlawful Possession of a Firearm.” Boram was previously convicted of “Delivery of a Controlled Substance” in March 2019 in Harrison County Circuit Court. As a result of that conviction, he is prohibited from possessing a firearm.
Boram faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Haitian National Pleads Guilty to Firearms TraffickingRead the Press Release
Denver – The United States Attorney’s Office for the District of Colorado announces Haitian national Peniel Olibris, age 32, has pleaded guilty to smuggling goods, specifically firearms, from the United States.
According to the plea agreement, the defendant came to the attention of law enforcement in October of 2019 when a firearms store manager in Arvada, Colorado, reported a suspicious customer. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began investigating and learned that between February 2019 and June 2020, Olibris and an associate purchased 77 firearms in the District of Colorado.
The plea agreement states in July 2020, Mr. Olibris admitted to law enforcement agents that he shipped “a few” firearms to Haiti, where he is from and where some of his family members still live. He explained that he placed the firearms in boxes inside cars and had the drivers take the cars from Colorado to Florida. In Florida, one of his associates coordinated with a shipping company to send the cars containing firearms to Haiti. The defendant explained he was trying to obtain a federal firearms license that would enable him to sell firearms, but had not yet done so.
According to the shipping company located in Fort Lauderdale, Florida, Olibris shipped 13 cars to Haiti between September 30, 2019 and May 29, 2020. This conduct violated of the Arms Export Control Act and the International Traffic in Arms Regulations.
The defendant entered his guilty plea on September 19, 2022, before Judge Regina M. Rodriguez. Sentencing is scheduled for January 12, 2023.
This case was investigated by Homeland Security Investigations (HSI) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorneys Laura Cramer-Babycz and Albert Buchman are handling the prosecution.
Case number: 22-cr-00238.
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For more information about the U.S. Attorney's Office for the District of Colorado, visit: https://www.justice.gov/usao-co/pr
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Guilty Verdict in Trial of Defendants Involved in Athens Drug Conspiracy Directed from a Georgia PrisonRead the Press Release
ATHENS, Ga. – Two individuals involved in a larger armed drug conspiracy operating in the Athens area were found guilty by a federal jury for their crimes late yesterday afternoon.
Brendan R. Gates, 37, of Commerce, Georgia, and Cindy Stamey, 49, of Danielsville, Georgia, were each convicted of one count of possession with intent to distribute methamphetamine; Gates was also convicted of one count of possession of a firearm in furtherance of a drug trafficking crime. The verdict was reached on Sept. 21 following a three-day trial that began on Sept. 19 before U.S. District C. Ashley Royal. Stamey faces a minimum mandatory term of ten years up to a maximum of life in prison; Gates faces a minimum mandatory term of 15 years up to a maximum of life in prison.
The following co-defendants have all pleaded guilty for their crimes and two have been sentenced:
Malcody Dinges aka Cody aka Yes, Sir Cody, 43, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on Dec. 16, 2021, and was sentenced to serve 240 months in prison (to run consecutive to any state-imposed sentence) to be followed by three years of supervised release;
Ervin Sales Temaj aka Milton Aguilar, 34, of Norcross, Georgia, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on April 13 and was sentenced to 121 months in prison to be followed by three years of supervised release;
Adonias Sales Temaj aka Alacran, 28, of Norcross, pleaded guilty to conspiracy to possess with intent to distribute methamphetamine on July 14 and faces a minimum mandatory term of ten years up to a maximum of life in prison;
Justin Maddox, 44, of Athens, pleaded guilty to possession of methamphetamine with intent to distribute on Aug. 3, 2021, and faces a maximum of twenty years in prison;
Christopher Wilson, 41, of Hull, Georgia, pleaded guilty to possession of methamphetamine with intent to distribute on April 13 and faces a maximum of twenty years in prison;
Carrie Kasper, 31, of Athens, pleaded guilty to possession of methamphetamine with intent to distribute on July 15, 2021, and faces a minimum mandatory term of ten years up to a maximum of life in prison; and,
Katlyn Lackey, 21, of Commerce, pleaded guilty to possession of methamphetamine with intent to distribute on May 12 and faces a minimum mandatory term of ten years up to a maximum of life in prison.
Sentencing for the defendants will occur at a date determined by the Court.
“This conviction concludes a lengthy criminal investigation into a methamphetamine drug trafficking organization operating in the Athens area with ties to a Georgia prison,” said U.S. Attorney Peter D. Leary. “Law enforcement at every level are working to dismantle these types of criminal networks which are plaguing our communities.”
“Drug dealing breeds violence and traffickers who engage in this dangerous lifestyle often protect their drug stash with firearms,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “Consequently, these defendants will spend well-deserved time in prison. DEA and its law enforcement partners are committed to making communities safer by removing such criminals from the streets.”
According to court documents and evidence presented at trial, federal agents learned in 2018 that co-defendant Dinges was conducting drug deals using contraband cell phones while in custody at Wheeler Correctional facility. During the course of the investigation, agents learned that Dinges was communicating with the co-defendants and others located in the Athens region about controlled substances; these individuals would travel to locations in Atlanta as directed by Dinges to receive methamphetamine and return to Athens to distribute the drugs. Dinges received a fee for brokering the deals. When federal agents executed a search warrant at Gates’ residence, they seized a handgun and methamphetamine.
The case was investigated by DEA, the Gwinnett County Sheriff’s Office, the Athens-Clarke Police Department, the Oconee County Sheriff’s Office, the Madison County Sheriff's Office and the Greene County Sheriff’s Office.
Assistant U.S. Attorney Tamara Jarrett is prosecuting the case.
Grant County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Austin Curtis Harman, of Petersburg, West Virginia, has admitted to a drug charge, United States Attorney William Ihlenfeld announced.
Harman, 23, pleaded guilty this week to one count of “Possession with Intent to Distribute a Controlled Substance.” He admitted to possessing Methamphetamine in Grant County in January of 2022.
Harman faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grant County man admits to child porn chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jasper E. Shook, of Petersburg, West Virginia, has admitted to child pornography charges, United States Attorney William Ihlenfeld announced.
Shook, 35, pleaded guilty last week to one count of “Distribution of Child Pornography,” one count of “Aiding and Abetting Possession of Child Pornography,” and one count of “Aiding and Abetting Production of Child Pornography.”
Shook faces not less than 5 years and not more than 20 years of incarceration and a fine of up to $250,000 for the distribution of child pornography charge; he faces up to 20 years incarceration and a fine of up to $250,000 for the aiding and abetting possession of child pornography charge; and he faces up to not less than 15 years and not more than 30 years of incarceration and up to $250,000 for the aiding and abetting production of child pornography charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand jury indicts 2 Cincinnati-area men of federal charges related to illegally flying drones over professional sporting eventsRead the Press Release
CINCINNATI – Two Cincinnati-area men have been charged with federal crimes alleging they illegally flew drones over professional sporting events in Cincinnati.
A federal grand jury has charged the men in separate incidents involving Cincinnati Bengals and Cincinnati Reds events.
NFL
The Cincinnati Bengals hosted an NFL playoff game at Paul Brown Stadium on Jan. 15. During the game, it is alleged that Dailon Dabney, 24, of Cincinnati, illegally flew his drone into the stadium and hovered over the players and portions of the stadium crowd. Dabney allegedly recorded his drone flight and posted the video to social media sites and YouTube.
MLB
April 12 was Opening Day for the Cincinnati Reds’ 2022 season and featured the first game of the season at Great American Ballpark. It is alleged that Travis Lenhoff, 38, of Northern Kentucky, flew a drone into the restricted flight area of Great American Ballpark during the Opening Day festivities.
“This is a growing problem that poses a direct risk to the players and the individuals in the stands,” said U.S. Attorney Kenneth L. Parker. “Even if the operator does not have an intent to harm, the operator could easily lose control and injure someone. Moreover, the sight of a drone flying overhead could lead to a panic in the crowd. If you attend these events like Reds games and Bengals games – leave the drones at home.”
“Flying a drone over a stadium full of fans is dangerous and illegal without the proper FAA training, licensing, and approved flight plan," stated FBI Cincinnati Special Agent in Charge J. William Rivers. “We will continue to work with the FAA and local police to investigate these incidents when proper FAA protocols and procedures are not followed.”
Any drone that weighs more than .55 pounds and less than 55 pounds must be registered with the Federal Aviation Administration (FAA). Dabney’s and Lenhoff’s drones are not registered with the FAA and they do not have a remote pilot certification.
Each defendant is charged with operating an unregistered drone, which is a federal crime punishable by up to three years in prison. Dabney is also charged with violating a temporary flight restriction (punishable by up to one year in prison).
Dabney and Lenhoff each have an initial appearance scheduled at 1:30pm on Oct. 12 in Cincinnati.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; the Federal Aviation Administration (FAA); Cincinnati Interim Police Chief Teresa A. Theetge and Hamilton County Sheriff Charmaine McGuffey announced the charges. Assistant United States Attorney Timothy S. Mangan is representing the United States in this case.
Indictments merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Gary Man Sentenced to 92 Months in PrisonRead the Press Release
HAMMOND- Schickell Best, 34 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Best was sentenced to 92 months in prison, 2 years of supervised release and ordered to pay $1200 in restitution.
According to documents in the case, on April 21, 2020, law enforcement located Best standing in front of a car. As officers approached him, Best dropped foil packets which later were determined to contain phencyclidine, commonly known as PCP or angel dust. A search of his vehicle resulted in the seizure of crack cocaine and a loaded revolver. Best’s criminal history revealed he has a prior federal felony conviction for being a felon in possession of a firearm as well as Indiana felony convictions for battery on law enforcement and battery by body waste, and as such, he is prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Indiana State Police, the Lake County Police Department, and the Gary Police Department. This case was prosecuted by Assistant United States Attorneys Caitlin M. Padula and Kevin F. Wolff.
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.
Former Teacher Sentenced for Producing Child Sexual Abuse MaterialRead the Press Release
A Kansas man was sentenced today to 30 years in prison for impersonating a minor female on social media and enticing dozens of minors in the Topeka area to record and send him sexually explicit images and videos of themselves.
According to court documents, Jeffrey D. Pierce, 42, of Topeka, was a former teacher and basketball coach at Seaman High School in Topeka who impersonated a minor female on various social media platforms and induced minor males in the Topeka area to create and send him images of themselves engaging in sexually explicit conduct. Evidence recovered from Pierce’s phones and other electronic devices shows that his exploitative scheme lasted for at least several years and that he targeted minors in his own community, including his own students at the high school where he formerly taught.
“Soliciting the production of child sexual abuse material is a particularly disturbing crime, made even more egregious when committed by someone entrusted to teach and coach our children,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentence reflects the unwavering commitment of our prosecutors and law enforcement partners to stand up for victims and to hold offenders accountable for their conduct.”
“Pierce, an educator and coach, used deception, manipulation and threats to exploit the most vulnerable victims and those he was entrusted to protect, our children” said Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office. “The investigation into his actions and today’s sentencing demonstrate the unwavering dedication of law enforcement to seek justice for our most innocent victims and those who are unable to defend themselves.”
Pierce was also sentenced to five years of supervised release and ordered to pay $55,100 in special assessments.
To date, the FBI has identified over 80 minors who were victimized by Pierce. Pierce’s online communications with these victims established that he coerced at least one minor to send him additional sexually explicit material by threatening to distribute that minor’s images to others, distributed sexually explicit images of other minors, and encouraged another minor to engage in in-person sexual conduct with him while he was still impersonating a minor female. In total, law enforcement recovered from Pierce’s electronic devices several thousand images and videos depicting minor males engaged in sexually explicit conduct, as well as hundreds of screenshots of social media accounts belonging to other users and multiple images of nude and undressing minors that appear to have been taken in locker rooms at two Topeka high schools.
The FBI investigated the case.
Trial Attorneys Kaylynn N. Shoop, Austin M. Berry, and William G. Clayman of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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 http://www.justice.gov/psc.
Former Postal Employee Sentenced to 13 Months in Prison for Fraud in Connection with Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service USPS employee was sentenced to 13 months in prison for conspiring to fraudulently obtain unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Ross Clayton, 31, of Irvington, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with conspiring to commit wire fraud. Judge Neals imposed the sentence on Sept. 21, 2022, in Newark federal court.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.
Clayton was a USPS employee and took unemployment insurance benefits-related mail, including debit cards, from a USPS location in New Jersey. He used that mail to obtain unemployment insurance benefits to which he was not entitled.
In addition to the prison term, Judge Neals sentenced Clayton to two years of supervised release and ordered him to pay restitution in the amount of $53,321.05 and forfeiture in the amount of $28,397.49.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Acting Inspector in Charge Raimundo Marrero, Philadelphia Division; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, and special agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to the sentencing.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Defense counsel: Robert M. Perry Esq., Mount Holly, New Jersey
Former Philadelphia VA Hospital Employee Sentenced to Two Years in Prison for Stealing Almost $500,000 in Government FundsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Bruce Minor, 46, of Philadelphia, PA, was sentenced to two years in prison, three years of supervised release, and ordered to pay $462,256 restitution and forfeit the same amount by United States District Court Judge Chad F. Kenney for his scheme to embezzle money from his former employer, the Philadelphia Veterans’ Affairs Medical Center (VAMC).
In May 2022, the defendant pleaded guilty to one count of theft of government funds. The charge arose from his theft of approximately $487,000 in Veterans Affairs travel reimbursement funds, which he helped administer as part of his official duties as a travel clerk. In order to perpetrate the theft, Minor created fraudulent travel reimbursement claims in the names of at least three other VAMC employees and then diverted the fraudulently obtained funds into bank accounts he controlled. According to court documents, in an email to VAMC management, the defendant admitted to stealing approximately $13,000 in travel funds, though subsequent investigation showed that he stole upwards of $487,000 between December 2015 and September 2019.
“Americans – and especially the men and women who have served in uniform – deserve public employees who do their jobs honestly and with integrity,” said U.S. Attorney Romero. “This defendant selfishly took advantage of his position with the VA to commit fraud, cheating both the veterans who rely on VA programs and the taxpayers who fund those services.”
“This defendant deceitfully used his position at VA to steal funds to which he was not entitled,” said Special Agent in Charge Christopher F. Algieri of the Department of Veterans Affairs Office of Inspector General’s Northeast Field Office. “This illegal conduct compromises the integrity of VA programs and wastes funds that could otherwise be used for the benefit of our nation’s veterans. The VA OIG thanks the US Attorney’s Office for its commitment throughout this investigation.”
The case was investigated by the Department of Veterans Affairs, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Christopher Diviny.
Former Newport News Police Officer Pleads Guilty to the Sexual Exploitation of ChildrenRead the Press Release
NEWPORT NEWS, Va. – A former sergeant with the Newport News Police Department pleaded guilty today to the sexual exploitation of children and receipt of child pornography.
According to court documents, Michael Nicholas Covey, 39, of Newport News, used a child to engage in sexually explicit conduct for the purposes of producing a visual depiction of such conduct and distributing those images to a sex offender in Ohio.
When child sexual assault images were found on the convicted sex offenders’ electronic devices, the images were submitted to the National Center for Missing and Exploited Children (NCMEC) in Alexandria. During the analysis of the images, NCMEC determined that the images may have been produced in Newport News. NCMEC forwarded the information to the Southern Virginia Internet Crimes Against Children Task Force (SOVA ICAC) who, in turn, contacted the FBI. Agents with the FBI were able to identify the child depicted in the images. Further investigation led the agents to Covey. He was arrested on a federal criminal complaint on Friday, June 10.
Covey pleaded guilty to two counts of the sexual exploitation of children and one count of receipt of child pornography and is scheduled to be sentenced on February 22, 2023. He faces a mandatory minimum sentence of 15 years in prison and a maximum penalty of 80 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 Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after U.S. Magistrate Judge Douglas Miller accepted the plea.
Assistant U.S. Attorney Lisa McKeel and Pete Osyf are prosecuting the case.
This case was investigated by the FBI’s Norfolk Child Exploitation Task Force (NCETF), as part of Project Safe Childhood. The NCETF is composed of FBI agents and detectives from the Chesapeake Police Department, Hampton Police Division, and Newport News Police Department. Assistance in this matter was also provided by federal agents from Homeland Security Investigations. The task force is charged with investigating and bringing federal charges against individuals engaged in the exploitation of children. Tips regarding child exploitation can be provided to the task force at 1-800-CALL-FBI or tips.fbi.gov.
Project Safe Childhood is a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
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. 4:22-cr-48.
Former New Orleans Police Officer Charged with Civil Rights Violation for Sexual AssaultRead the Press Release
The Justice Department filed a bill of information charging Rodney Vicknair, 55, a former police officer with the New Orleans Police Department, with sexually assaulting a victim in violation of that victim’s constitutional rights.
The bill of information alleges that on Sept. 23, 2020, the defendant while acting under color of law as a police officer, willfully deprived the victim of her right to bodily integrity when he engaged in sexual conduct without her consent and without a legitimate law enforcement purpose.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
The FBI New Orleans Field Office and the New Orleans Police Department Public Integrity Bureau investigated the case. Criminal Chief Tracey Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana and Special Litigation Counsel Fara Gold of the Criminal Section of the Department of Justice’s Civil Rights Division are prosecuting the case.
An information is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former New Orleans Police Officer Charged with Civil Rights Violation for Sexual AssaultRead the Press Release
WASHINGTON — The Justice Department filed a bill of information charging Rodney Vicknair, 55, a former police officer with the New Orleans Police Department, with sexually assaulting a victim in violation of that victim’s constitutional rights.
The bill of information alleges that on Sept. 23, 2020, the defendant while acting under color of law as a police officer, willfully deprived the victim of her right to bodily integrity when he engaged in sexual conduct without her consent and without a legitimate law enforcement purpose.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.
The FBI New Orleans Field Office and the New Orleans Police Department Public Integrity Bureau investigated the case. Criminal Chief Tracey Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana and Special Litigation Counsel Fara Gold of the Criminal Section of the Department of Justice’s Civil Rights Division are prosecuting the case.
An information is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Executive Director of Mississippi Department of Human Services Pleads Guilty for Conspiring to Defraud the State of MississippiRead the Press Release
Jackson, Miss. – A former Mississippi Department of Human Services (MDHS) official pleaded guilty today for conspiring to defraud the State of Mississippi of millions of dollars in federal funds.
According to court documents, John Davis, 54, of Jackson, Mississippi, and his co-conspirators fraudulently obtained and misused federal funds – including funds from two programs, Temporary Assistance for Needy Families (TANF) and The Emergency Food Assistance Program (TEFAP) – for their personal use and benefit. At Davis’s direction, MDHS provided federal funds to two nonprofit organizations and then directed the two nonprofit organizations to fraudulently award contracts to various entities and individuals for social services that were never provided. In addition, Davis caused the nonprofit organizations to disburse full or almost-full payments pursuant to those sham contracts at or near the beginning of the contract periods, regardless of whether any work had been performed and knowing that no significant services would be provided.
Davis pleaded guilty to one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds, and one count of theft concerning programs receiving federal funds. He is scheduled to be sentenced on Feb. 2, 2023, and faces a maximum penalty of five years in prison for the conspiracy count and 10 years in prison for the theft concerning programs receiving federal funds count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi; Special Agent in Charge Jermicha Fomby of the FBI Jackson Field Office; Special Agent in Charge Tamala Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Dax Roberson of the Department of Agriculture, Office of Inspector General (USDA-OIG) made the announcement.
The FBI, HHS-OIG, and USDA-OIG are investigating the case.
Trial Attorneys Adrienne E. Rosen and Della Sentilles of the Criminal Division’s Money Laundering and Asset Recovery Section and Fraud Section, respectively, and Assistant U.S. Attorneys Dave Fulcher and Andrew Eichner for the Southern District of Mississippi are prosecuting the case.
Former Executive Director of Mississippi Department of Human Services Pleads Guilty for Conspiring to Defraud the State of MississippiRead the Press Release
A former Mississippi Department of Human Services (MDHS) official pleaded guilty today for conspiring to defraud the State of Mississippi of millions of dollars in federal funds.
According to court documents, John Davis, 54, of Jackson, Mississippi, and his co-conspirators fraudulently obtained and misused federal funds – including funds from two programs, Temporary Assistance for Needy Families (TANF) and The Emergency Food Assistance Program (TEFAP) – for their personal use and benefit. At Davis’s direction, MDHS provided federal funds to two nonprofit organizations and then directed the two nonprofit organizations to fraudulently award contracts to various entities and individuals for social services that were never provided. In addition, Davis caused the nonprofit organizations to disburse full or almost-full payments pursuant to those sham contracts at or near the beginning of the contract periods, regardless of whether any work had been performed and knowing that no significant services would be provided.
Davis pleaded guilty to one count of conspiracy to commit wire fraud and to commit theft concerning programs receiving federal funds, and one count of theft concerning programs receiving federal funds. He is scheduled to be sentenced on Feb. 2, 2023, and faces a maximum penalty of five years in prison for the conspiracy count and 10 years in prison for the theft concerning programs receiving federal funds count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi; Special Agent in Charge Jermicha Fomby of the FBI Jackson Field Office; Special Agent in Charge Tamala Miles of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Dax Roberson of the Department of Agriculture, Office of Inspector General (USDA-OIG) made the announcement.
The FBI, HHS-OIG, and USDA-OIG are investigating the case.
Trial Attorneys Adrienne E. Rosen and Della Sentilles of the Criminal Division’s Money Laundering and Asset Recovery Section and Fraud Section, respectively, and Assistant U.S. Attorneys Dave Fulcher and Andrew Eichner for the Southern District of Mississippi are prosecuting the case
Former Denton Police Officer Sentenced for Child Exploitation ViolationsRead the Press Release
SHERMAN, Texas – An Argyle, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
David Schoolcraft, 39, pleaded guilty on Dec. 28, 2021, to possession of child pornography and was sentenced to 121 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, Schoolcraft came to the attention of law enforcement when it was discovered that he was distributing child pornography within a social media application between December 2020 and January 2021. An investigation revealed that he was engaged in this activity while at the Denton Police Department, where he served as a police officer, as well as at his home in Argyle. Federal agents served search warrants and met with Schoolcraft in February 2021, at which time Schoolcraft admitted to using a social media application and his cellular phone to trade child pornography. Schoolcraft admitted to possessing images and videos of prepubescent minors engaged in sexually explicit conduct, including children who were bound and sexually abused by adults. Schoolcraft was indicted by a federal grand jury on March 10, 2021.
“Children are the most precious and vulnerable members of our society, and justice and basic human decency demands that we do everything in our power to protect them from harm,” said U.S. Attorney Brit Featherston. “Schoolcraft violated his oath of office as a police officer and the trust of our community, and instead of protecting children he took pleasure in viewing children being sexually exploited and harmed. Although no sentence can make up for the pain he caused, this sentence should put everyone on notice that the Eastern District of Texas will not tolerate this behavior.”
“The details of this case are upsetting not only because it involves the distribution of material exploiting children, but also because the perpetrator was a police officer who was expected to serve and protect his community,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI and our law enforcement partners consistently work together to hold child predators accountable for their actions. We are also steadfast in our commitment to protect children from individuals who seek to exploit their innocence.”
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (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.
This case was investigated by the Federal Bureau of Investigation, Plano Police Department and Denton Police Department. This case was prosecuted by Assistant U.S. Attorney Marisa Miller.
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Former Boston Philharmonic Orchestra Artistic Advisor Sentenced to Five Years in Prison for Child Pornography OffenseRead the Press Release
BOSTON – A former employee of the Boston Philharmonic Orchestra and the Boston Philharmonic Youth Orchestra has been sentenced in federal court in Boston for possession of child pornography.
David St. George, 75, of Arlington, was sentenced on Sept. 14, 2022 by U.S. District Court Judge Richard G. Stearns to five years in prison and five years of supervised release. St. George was also ordered to pay a $5,100 special assessment and restitution of $3,000 to each of the victims in this case. On March 30, 2022, St. George pleaded guilty to one count of possession of child pornography.
“Child pornography is not a victimless crime. It depicts child abuse. Plain and simple. Every single image or video of the material entails unspeakable harm and trauma inflicted upon an innocent child, and those who possess, distribute or view it not only break the law but more importantly revictimize these children with each act that sexualizes them,” said United States Attorney Rachael S. Rollins. “As the chief federal law enforcement officer of our Commonwealth and a mother, I see it as my duty in this role to protect our children. And my office will dedicate every resource necessary to do so.”
“The child sexual abuse materials that St. George possessed captured the horrific abuse of children. Searches of his home and electronics revealed he possessed thousands of these images while he was employed by the Boston Philharmonic Orchestra and the Boston Philharmonic Youth Orchestra,” said Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in New England. “HSI is committed to pursuing those who possess and trade child sexual abuse material wherever they hide, even when they go to great lengths to anonymize their activity and conceal their identities.”
In May 2018, investigators received information regarding a shared secure online storage account containing child pornography. The IP address for this account ultimately was linked to St. George’s internet. The storage account contained over 5,000 files, including sexually explicit images and videos of children, many of which depicted child sexual abuse – including the depiction of an adult raping an infant of approximately one year of age.
In September 2018, a search of St. George’s residence revealed thousands of files of child pornography, including the depiction of sexual assaults of children between six-and-eight years old. Emails revealed that St. George continued to re-post child sexual abuse materials despite being repeatedly banned by an online service provider. During the search, St. George admitted that he had been receiving and downloading child pornography from the Dark Web while taking steps to conceal his identity, as well as receiving and downloading child pornography via email for upload to his shared secure storage account.
U.S. Attorney Rollins and HSI SAC Millhollin made the announcement. Valuable assistance was provided by the Arlington Police Department. Assistant U.S. Attorney James D. Herbert of Rollins’ Criminal Division prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
First-Ever Paycheck Protection Program False Claims Act Whistleblower Case in Which the United States Intervened Against the Borrower SettlesRead the Press Release
MIAMI – Pan African Interchange LLC and Stanley Damas have agreed to pay $21,583.31 to resolve False Claims Act allegations arising from their false certifications that Pan African Interchange LLC would not receive more than one Paycheck Protection Program (PPP) loan prior to December 31, 2020, announced U.S. Attorney Juan Antonio Gonzalez.
The Coronavirus Aid, Relief and Economic Security (CARES) Act authorized the issuance of PPP loans to eligible small businesses struggling to pay employees and other business expenses during the pandemic. Under the PPP, in 2020, eligible businesses could obtain one SBA guaranteed PPP loan. Businesses were required to spend loan proceeds for employee compensation, rent or mortgage, and other specified expenses and, depending on their use of the loan proceeds, could qualify for loan forgiveness up to the full amount of the loan if certain requirements were met.
The SBA delegated authority to third-party lenders to underwrite and approve the PPP loans. To obtain a PPP loan, a qualifying business (through its authorized representative) signed and submitted a PPP loan application online through the lender’s application platform. The PPP loan application required the business (through its authorized representative) to acknowledge the PPP program rules and make certain affirmative certifications in order to be eligible to obtain the loan. Borrowers were required to certify as true and accurate that the applicant had not and would not receive more than one loan under the PPP prior to December 31, 2020. A similar certification was required if a borrower applied for loan forgiveness.
On April 14, 2022, the United States intervened in, and on May 20, 2022, filed its Complaint in Intervention against Pan African Interchange LLC and its owner, Stanley Damas, in a whistleblower case filed against Pan African Interchange LLC pursuant to the qui tam provisions of the False Claims Act. This case is the first PPP False Claims Act whistleblower case in which the United States intervened. The United States alleged that after applying for a PPP loan on May 20, 2020, Pan African Interchange LLC, through Stanley Damas, applied for a second PPP loan on May 21, 2020, and having received a PPP loan on May 22, 2020 from its first application, falsely certified that Pan African Interchange had not and would not receive more than one loan prior to December 31, 2020, when on June 12, 2020, Pan African Interchange, LLC signed a promissory note for a second PPP loan that it received on June 24, 2020. The United States further charged in its Complaint in Intervention that, despite numerous demands, and in violation of the PPP rules and the FCA, Pan African Interchange LLC and Damas unlawfully refused to return the second PPP Loan.
After the United States filed and served its Complaint in Intervention, Damas and Pan African Interchange LLC paid back to the United States, $208,332.00 to satisfy the second Pan African Interchange PPP Loan. However, in the settlement announced today, Pan African Interchange LLC and Damas agreed to pay an additional $21,583.31.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Assistant U.S. Attorney James A. Weinkle handled the matter, and Department of Justice Civil Division Trial Attorney Jared Wiesner and the SBA’s Office of Litigation assisted.
The qui tam action in the United States District Court for the Southern District of Florida captioned United States of America ex rel. Bryan Quesenberry v. Pan African Interchange, LLC, et al., Case No. 9:20-cv-81717-DMM (S.D. Fla).
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Federal Jury Convicts Volusia County Man for Using His Missing Father’s Identity to Steal Social Security BenefitsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces that a federal jury has found Robert Butzlaff (57, Volusia County) guilty of four counts of fraudulent use of an unauthorized access device and aggravated identity theft. Butzlaff faces a maximum penalty of 10 years in federal prison on each of the fraudulent use of an unauthorized access device charges and a consecutive 2-year mandatory minimum on the aggravated identity theft charge. His sentencing hearing is scheduled for December 7, 2022.
According to evidence presented at trial, Social Security beneficiary M.B. was reported missing in October 2014 and has never been located. M.B.’s disappearance was not reported to the Social Security Administration (SSA) and SSA continued to make benefit payments on his behalf. M.B.’s SSA benefits were being deposited into an account held jointly with his son, Butzlaff, at the time of his disappearance. Following M.B.’s disappearance, Butzlaff opened a new bank account using M.B.’s personally identifiable information and redirected M.B.’s SSA benefits to the new account. The new account was solely in M.B.’s name. Butzlaff obtained, and used, two debit cards issued in the name of M.B. to withdraw the funds being deposited by SSA into the new account. Butzlaff used the SSA funds intended for M.B. for his own personal expenses.
This case was investigated by the Social Security Administration, Office of the Inspector General and the Ormond Beach Police Department. It is being prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Federal Jury Convicts Virginia Beach Man for Drug Trafficking and Firearm PossessionRead the Press Release
NORFOLK, Va. – A federal jury convicted a Virginia Beach man yesterday on charges of conspiracy to distribute controlled substances and possessing firearms in furtherance of drug trafficking.
According to court records and evidence presented at trial, Jerod Askew, 32, was involved in a conspiracy to distribute heroin, cocaine, crack cocaine and marijuana in the Hampton Roads area. His source of supply was located in Baltimore, Maryland, and he would rent vehicles to make frequent trips to Maryland to re-up his supply of drugs. He sent numerous text messages to his co-conspirators in the Hampton Roads area letting them know he had a supply of illegal narcotics for sale. A search warrant at his residence revealed approximately nine ounces of heroin, approximately two ounces cocaine, approximately one ounce of crack cocaine, marijuana, six loaded firearms and drug distribution paraphernalia. A search of his storage unit revealed over four pounds of marijuana, a loaded firearm, drug distribution paraphernalia, a kilo press, and empty kilo wrappers that once contained cocaine.
Askew faces a mandatory minimum of 15 years and a maximum life in prison when sentenced on March 17, 2023. 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 Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives Washington Field Division, made the announcement after Senior U.S. District Judge Rebecca Beach Smith accepted the verdict.
Assistant U.S. Attorneys Bill Muhr and Matthew Heck are 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. 2:21-cr-8.
Federal Jury Convicts Catoosa Man for Committing Sex Crimes Against Three ChildrenRead the Press Release
A federal jury convicted a Catoosa man Wednesday for engaging in criminal sexual conduct with three children, announced U.S. Attorney Clint Johnson. A fourth victim also came forward and testified at trial.
Garrin Michael Thompson, 48, of Catoosa, was found guilty of transportation of a minor with intent to engage in criminal sexual activity; aggravated sexual abuse of a child under 12 in Indian Country; and coercion and enticement of a minor.
“For more than 20 years, Garrin Thompson repeatedly preyed on children. This week, four victims testified in federal court, exposing his egregious crimes. I am thankful they found the courage to come forward to stop him from victimizing another child,” said U.S. Attorney Clint Johnson. “I also want to thank the entire prosecution team for their persistence in this case and commitment to justice. Law enforcement and prosecutors in northeastern Oklahoma will continue our relentless pursuit to hold accountable perpetrators of child sexual abuse.”
According to court documents, in March 2022, Thompson took a 10-year-old child from Catoosa to Tyler, Texas, where he sexually abused the girl at a hotel. The child was attending an athletic competition at the time. Thompson told the child that she should keep the incident a secret. Upon returning to Catoosa, the child began disclosing the abuse to friends, coaches and family members.
Two individuals contacted law enforcement to report the child’s allegations on April 14, 2022.
Forensic interviewers conducted interviews with the victim and others to whom Thompson had access. During the interviews, multiple other victims came forward.
Around that time, Thompson sent texts to the mother of several victims discussing the disclosures and had conversations where he offered to seek counseling and suggested that she encourage the victims to remain quiet about the allegations.
A second victim disclosed that she was between four and six years old when Thompson sexually abused her from 2007 and 2009. The victim also stated that Thompson would play a “tickle game,” frequently touching the victim on the inner thighs, lower stomach and near her pubic area while she was wearing clothes.
A third victim disclosed that from 2000 to 2001, Thompson attempted to coerce and entice the victim to engage in sexual activity on two occasions when the victim was between 10 and 12 years old. The victim stated that Thompson exposed the victim to pornography, masturbated in front of the victim, and attempted to get the victim to engage in oral sex.
Additionally, another victim was interviewed and also disclosed Thompson’s abuse.
FBI special agents became concerned when they learned Thompson had left his home, fearing he had the financial means to flee and the capability to destroy evidence because of his experience as a software engineer. The Catoosa Police Department searched for the defendant and located his car at a hotel the next morning. Thompson was arrested as he departed the hotel carrying a passport and various digital media storage devices.
Law enforcement seized the electronic devices, and later, seized more from his home. Evidence from the devices revealed that Thompson had a lascivious interest in children, including incest.
Agents found searches for videos related to incest involving minors and other sex crimes. They further learned that Thompson placed hidden video cameras in at least two homes where he could capture images of several of the victims and others without clothes.
In closing, Assistant U.S. Attorney Cheryl Baber described how our culture has become desensitized to sexualized language, images and actions but stated that it is society’s responsibility to maintain a sense of right and wrong, especially as it relates to the treatment of children. She then described the wrongs committed by Thompson- the inappropriate tickling games, the intentional exposure to pornography, the attempts to coerce a child to perform oral sex and engage in sodomy, and the aggravated sexual abuse of children. She explained that Thompson’s criminal acts ended the victims’ innocence. She then asked the jury to end Thompson’s claims of innocence by returning a guilty verdict.
The FBI and the Catoosa Police Department conducted the investigation. Assistant U.S. Attorneys Cheryl L. Baber and Edward Snow prosecuted the case.