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Tuesday 20 September 2022
KC Man Sentenced to 18 Years for Meth Conspiracy, Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for his role in a nearly $10 million conspiracy to distribute almost 1,000 kilograms of methamphetamine.
Jesus Banuelos, 23, was sentenced by U.S. District Judge Greg Kays to 18 years and nine months in federal prison without parole.
On Aug. 23, 2021, Banuelos pleaded guilty to one count of conspiracy to distribute methamphetamine, one count of distributing methamphetamine, and one count of being an unlawful user of a controlled substance in possession of a firearm.
Banuelos admitted that he was responsible for the distribution of at least 436.19 grams of pure methamphetamine. Banuelos was involved in the sale of approximately half a pound of methamphetamine to a confidential human source on two occasions in April and May 2019. When Banuelos was arrested during a traffic stop on May 8, 2019, Kansas City police officers could smell the odor of marijuana emanating from the driver’s side window of his vehicle and saw marijuana roaches in the ash tray in plain view. Officers searched his vehicle and found a Glock 9mm handgun. Banuelos told officers he used marijuana three or four days a week.
The court also ordered Banuelos to forfeit to the government $23,974, which represents the proceeds of illegal drug trafficking. Banuelos admitted that he sold 436.19 grams of pure methamphetamine at a price of $2,300 per half pound. The court also held Banuelos responsible for trafficking an additional approximately 1.9 kilograms of methamphetamine, for a total of almost 2.4 kilograms (about 5.2 pounds) of methamphetamine. At $2,300 per half pound, this results in a total amount of $23,974.
At the time of this federal offense, Banuelos was on state probation for stealing an Olympic Arms AR-15 from a pawn shop.
Banuelos admitted he was part of the drug-trafficking organization led by Mirza Alihodzic, 36, of Kansas City, Mo., who pleaded guilty on July 18, 2022, and awaits sentencing. Alihodzic acknowledged that he was responsible for the distribution of at least 45 kilograms of methamphetamine during the conspiracy, which lasted from Sept. 1, 2018, to Nov. 5, 2019.
Banuelos is among five defendants who have been sentenced in this case. Additionally, 13 co-defendants have pleaded guilty, and await sentencing, in two separate indictments that resulted from this investigation.
This case is being prosecuted by Assistant U.S. Attorneys Bradley K. Kavanaugh and Sean T. Foley and Special Assistant U.S. Attorney Stephanie Bradshaw. It was investigated by the Kansas City, Mo., Police Department, the FBI, the Missouri State Highway Patrol, and the Mid-Missouri Drug Task Force.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
KC Man Sentenced to 17 Years for Secretly Recording Child VictimRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for secretly video recording a 14-year-old victim in the victim’s bedroom.
Jonathan Rodger Nelson, 42, was sentenced by U.S. District Judge Stephen R. Bough to 17 years and six months in federal prison without parole.
On Nov. 2, 2021, Nelson pleaded guilty to one count of the attempted production of child pornography. Nelson admitted that he placed a camera, hidden in an alarm clock, in the child victim’s bedroom to secretly record the victim.
The investigation began on March 30, 2018, when a reporting party told police officers she looked at Nelson’s cell phone and saw what appeared to be video footage of the child victim’s bedroom. The reporting party then found a camera hidden in an alarm clock that Nelson had purchased online and placed in the bedroom several weeks before.
During a forensic examination of Nelson’s computer hard drive, investigators found more than 400 video and graphics files from the hidden camera. Investigators also found approximately 85 files from various livestream apps in which Nelson asked females of various ages, including children, to perform certain acts while on camera. For example, Nelson recorded his interaction with a minor female in which he promised her a phone and makeup to undress and engage in sexually explicit behavior.
Additionally, other images or videos of child pornography were found on Nelson’s devices. Nelson admitted using peer-to-peer software to download child pornography, including children as young as seven or eight years old. He admitted to looking for chat groups sharing child pornography.
This case was prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Awards over $3.5 Million to State of Louisiana to Prevent and Control CrimeRead the Press Release
U.S. Attorney Ronald C. Gathe, Jr. announced that the State of Louisiana has received $3,514,042 from the Department of Justice’s Office of Justice Programs and its component, the Bureau of Justice Assistance, to support a broad range of activities to prevent and control crime based on state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice or civil proceedings.
The recipient of this award, the Louisiana Commission on Law Enforcement, is a foundation located in Baton Rouge dedicated to improving the operations of the criminal justice and juvenile justice systems and to promoting public safety by providing progressive leadership and coordination within the criminal justice community.
Jury returns guilty verdict in local deed fraud schemeRead the Press Release
HOUSTON – A federal jury sitting in Houston has convicted a 61-year-old Dallas man for money laundering, conspiracy to commit and committing wire fraud, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for half a day before convicting Clarence Roland III on all charges following a eight-day trial.
In 2009, Roland began working with co-conspirator Arlando Jacobs, 57, Oakland, California, in a deed fraud scheme to cancel and challenge mortgage loans held in the name of Jacobs or others. During this time, Roland frequently used the alias Joshua Stein, while Jacobs used Caleb Wright or Dexter Ponzey.
According to testimony, they solicited and received the help of other co-conspirators to establish over 11 business entities or shell companies and office spaces with mailing addresses in Houston, The Woodlands and Katy to carry out the scheme.
The jury heard that Roland and co-conspirators fraudulently acquired real property by manipulating and filing fraudulent deeds and other documents. Roland sold the properties and received profits from the sales. The original mortgage liens were not paid off and the mortgage holders were ultimately defrauded. Some title insurance companies were forced to pay buyer claims who had acquired the title when purchasing the real property Roland sold to them.
The co-conspirators fabricated a series of documents to falsely create the appearance of transferred ownership of real property to the shell companies. In order to do so, they signed documents claiming to represent one of the many entities in the transactions. The same names were used as signors on many documents and purported to represent different entities. They were also fraudulently notarized by using fake notary stamps.
The defense attempted to convince the jury the law allowed him to file fraudulent documents in the real property records to transfer title of houses on which there were mortgages so he could then sell them free of those mortgages. They did not believe those claims and found Roland guilty as charged.
Jacobs pleaded guilty in advance of trial in an unrelated fraud case in the Northern District of Texas and was sentenced to 51 months in prison and ordered to pay restitution of $7.6 million.
U.S. District Judge Lee H. Rosenthal presided over the trial and set sentencing for Jan. 25, 2023. At that time, Roland faces up to 30 years for conspiracy to commit wire fraud affecting a financial institution and 20 years for wire fraud. They also carry potential fines of up to $1 million. For money laundering, he faces another 10 years as well as a fine of $250,000.
Previously released on bond, Roland was taken into custody following the conviction today where he will remain pending sentencing.
The FBI, Federal Housing Finance Agency - Office of Inspector General (OIG) and Housing and Urban Development - OIG conducted the investigation. Assistant U.S. Attorneys John Braddock and John Wakefield are prosecuting the case.
Jury Convicts Man of Bankruptcy Fraud and Tax EvasionRead the Press Release
LAKE CHARLES, La. - United States Attorney Brandon B. Brown announced that a federal jury in Lake Charles returned a guilty verdict late yesterday against Joseph Randall Boswell, Sr., 53, of Elizabeth, Louisiana, following a week-long trial. Boswell was convicted of one count of bankruptcy fraud and one count of tax evasion. United States District Judge James D. Cain, Jr. presided over the trial.
According to evidence presented during the trial, Boswell knowingly and fraudulently concealed property from the United States Bankruptcy Trustee and his creditors through his Chapter 7 Bankruptcy case which he filed in September 2011. Specifically, Boswell concealed monies earned from nominee business and service contracts that could have been paid to his creditors. Boswell attempted to defraud the government by withholding information from the Bankruptcy Court regarding the amount of income he was actually making and property he had an interest in. Boswell was self-employed and withheld information from the court as to companies that he had control of through other family members. Evidence introduced at trial showed that these companies were established in the names of other family members in an attempt to hide the fact that Boswell was controlling and manipulating the business activities for these companies and earning income through contracts negotiated by him.
Boswell was also convicted of attempting to evade and defeat payment of income taxes due and owing by him for the tax years 2001 through 2009. The jury determined that Boswell concealed assets from the Internal Revenue Service by putting them in the names of other family members in order to avoid paying income taxes owed by him of over $597,000.
“This was a complicated case that involved countless hours of work by both attorneys from this office, agents with the Internal Revenue Service-Criminal Investigation, and employees with the U.S. Trustee’s Office,” stated U.S. Attorney Brandon B. Brown. “Those who defraud the government through bankruptcy proceedings and attempt to avoid paying the income tax they owe are a burden to citizens who obey these laws. We will not back down from prosecuting cases involving this type of fraud and are committed to ensuring that these laws are not violated.”
“Yesterday’s guilty verdict is a direct result of the excellent partnership IRS-CI and the U.S. Attorney’s office has in combating violations of Federal law," said Demetrius D. Hardeman, Assistant Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. "This guilty verdict should serve as a deterrent to those who might contemplate similar fraudulent actions and who willfully violate their known legal duty of paying their fair share of taxes.”
Boswell faces a sentence of up to 5 years in prison and three years of supervised release on each count, and a fine of up to $250,000. Sentencing has been set for January 23, 2023 at 1:30 p.m.
The case was investigated by the Internal Revenue Service-Criminal Investigation, and the United States Trustee’s Office and is being prosecuted by Assistant U.S. Attorneys Cytheria D. Jernigan and Earl M. Campbell.
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Iowa Woman Sentenced to Federal Prison for COVID-19 Related Benefit Fraud and Money LaunderingRead the Press Release
A Rockford, Iowa woman who received unemployment benefits in other people’s names, and laundered most of those funds through cryptocurrency transactions, was sentenced September 20, 2022, to more than a year in federal prison.
Stephanie Mendenhall, age 53, from Rockford, Iowa, received the prison term after a March 24, 2022, guilty plea to four counts of theft of government funds and one count of money laundering conspiracy. At the plea hearing, Mendenhall admitted to facilitating false claims for unemployment insurance benefits, which were intended for those in need due to the COVID-19 pandemic, in the names of other people and allowing those funds to be deposited into bank accounts she owned or controlled. Mendenhall received fraudulent unemployment benefits paid through the states of Maine, Michigan, Washington, Arizona, Colorado, Texas, Kansas, and Illinois, including benefits related to COVID-19 relief funds, to which she was not entitled. Mendenhall received at least $35,985 in false unemployment benefits. Mendenhall spent some of the money on herself, but laundered the majority of it by purchasing cryptocurrency and sending it to a co-conspirator. After being indicted in this case, while on pretrial release, Mendenhall attempted to deposit counterfeit checks into other bank accounts she owned.
Mendenhall was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Mendenhall was sentenced to 15 months’ imprisonment. She was also ordered to make $46,378.31 in restitution to the states of Maine, Michigan, Washington, Arizona, Colorado, Texas, Kansas, and Illinois. She must also serve a 2-year term of supervised release after the prison term. There is no parole in the federal system.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Mendenhall is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorneys Ron Timmons and Tim Vavricek and was investigated by the Federal Bureau of Investigation and the Department of Labor’s Office of Inspector General.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3028.
Follow us on Twitter @USAO_NDIA.
Indianapolis Man Sentenced to 115 Months in Federal Prison for Four Robbery Offenses Committed While on Supervised Release for 2016 RobberiesRead the Press Release
INDIANAPOLIS – Marvin Smith, 37, of Indianapolis, was sentenced to 115 months in federal prison after pleading guilty to two counts of attempted interference with commerce by robbery and two counts of bank robbery.
According to court documents, on April 2, 2022, Smith entered a CVS on East Washington Street in Indianapolis. Smith approached a CVS pharmacy employee and handed her a note demanding 30mg of Oxycodone. The CVS employee entered a code into the lock safe and told Smith it’d take a predetermined amount of time before the safe would open. Smith left without obtaining the Oxycodone.
On that same day, Smith entered a Walgreens on East Eppler Avenue in Indianapolis. Smith approached a Walgreens pharmacy employee and handed her a note demanding 30mg of Oxycodone and demanded she hurry up. The Walgreens employee entered a code into the safe and told Smith the safe would not open for several minutes. Smith again left the pharmacy without obtaining Oxycodone. Smith was observed leaving the parking lot of the pharmacy in black four-door sedan with body damage to the vehicle.
On April 2, 2022, Smith entered a PNC bank on South East Street in Indianapolis. Smith reached over the top of the teller’s window and handed her a plastic grocery style bag. Smith told the teller to fill it and to hurry up. The teller complied and handed the bag of money to Smith. Smith ran out of the bank. An audit of the teller’s drawer indicated a loss of $529.00.
On April 4, 2022, an IMPD officer spotted a black sedan with damage to the front driver’s side fender and a license plate matching the black sedan seen leaving Walgreens at a hotel on the west side of Indianapolis. A record check of the license plate on the black sedan revealed that the plate was registered to Smith.
On April 5, 2022, Smith drove to the area of a Fifth Third bank on East Southport Road in Indianapolis. Smith parked in a parking lot near the Fifth Third bank, walked across an adjoining park lot and entered the bank. Smith threw a robbery note over the counter to the teller demanding $10,000.00 Smith then threw a plastic bag over the counter and told the teller to hurry up. The teller placed the bag with the cash from her teller drawer onto the counter. Smith grabbed the bag, exited
the bank, began running toward his vehicle and drove away from the bank. After Smith turned onto Emerson Avenue, IMPD SWAT initiated a felony car stop disabling Smith’s vehicle. Smith fled the vehicle and ran for a short distance before giving up and lying face down on the ground. Officers approached Smith and confirmed his identity. Smith had $10,000 banded and stacked sitting in plain view on the front passenger floorboard of his vehicle. The stacks of money each had a Fifth Third bank stamp and were dated April 5, 2022. The money was seized by officers while Smith’s vehicle was secured and towed to IMPD facilities. An audit performed later by the bank of the Fifth Third teller’s drawer indicated a loss of $10,000.00.
During Smith’s arrest, an officer observed that Smith’s cell phone was connected to the car’s stereo and IMPD’s dispatch radio traffic was playing through a scanner app over the car’s speakers. Smith was transported to IMPD for an interview where he admitted to the officers that he robbed the Fifth Third bank.
Smith was previously arrested and prosecuted in federal court, in 2016, for two counts of pharmacy robbery. Smith was under federal supervised release at the time of the new offenses.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office; and Police Chief Randal Taylor of the Indianapolis Metropolitan Police Department; made the announcement.
FBI investigated the case in conjunction with IMPD. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Smith be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Peter A. Blackett who prosecuted this case.
Hocking County man admits to sexually exploiting children as young as 3 years oldRead the Press Release
COLUMBUS, Ohio – A Logan, Ohio, man pleaded guilty in federal court here today to producing child pornography of a three-year-old child and possessing thousands of images of child sexual abuse, some of which depicted other minor children to whom the defendant had access.
Robert Gemienhardt, 37, was charged federally in April 2022, along with his significant other Carrie Daniels, 41 for their child exploitation offenses. Daniels is set to plead guilty on Oct. 5 to two counts of sexual exploitation of a minor and one count of possession of child pornography.
Gemienhardt pleaded guilty to sexually exploiting a minor – a crime punishable by 15 to 30 years in prison – and possessing child pornography. Gemienhardt also admitted to possessing child pornography of a prepubescent minor, which carries a potential penalty of 10 to 20 years in prison.
More than 1,000 images and 350 videos depicting child sexual abuse were ultimately recovered from Gemienhardt’s digital media devices, some of which depicted minors as young as toddler age engaged in oral sex, masturbation, bestiality and sexual acts with adults.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Gemienhardt and Daniels were acting together and produced child pornography through the grooming and sexual abuse of minor victims they had access to between April and June of 2020.
Gemienhardt and Daniels exchanged thousands of illicit text messages detailing their sexual fantasies about the minor victims. Those text messages further revealed both Gemienhardt and Daniels had plans to act out some of the detailed fantasies by sexually abusing the minors. Daniels also distributed images she created of the sexual abuse of minors to Gemienhardt.
Gemienhardt is a registered sex offender from a prior Franklin County conviction in July 2021.
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; and Hocking County Sheriff Lanny E. North announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Hocking County man admits to sexually exploiting children as young as 3 years oldRead the Press Release
COLUMBUS, Ohio – A Logan, Ohio, man pleaded guilty in federal court here today to producing child pornography of a three-year-old child and possessing thousands of images of child sexual abuse, some of which depicted other minor children to whom the defendant had access.
Robert Gemienhardt, 37, was charged federally in April 2022, along with his significant other Carrie Daniels, 41 for their child exploitation offenses. Daniels is set to plead guilty on Oct. 5 to two counts of sexual exploitation of a minor and one count of possession of child pornography.
Gemienhardt pleaded guilty to sexually exploiting a minor – a crime punishable by 15 to 30 years in prison – and possessing child pornography. Gemienhardt also admitted to possessing child pornography of a prepubescent minor, which carries a potential penalty of 10 to 20 years in prison.
More than 1,000 images and 350 videos depicting child sexual abuse were ultimately recovered from Gemienhardt’s digital media devices, some of which depicted minors as young as toddler age engaged in oral sex, masturbation, bestiality and sexual acts with adults.
According to court documents, the National Center for Missing and Exploited Children (NCMEC) received a tip from Kik messenger regarding Gemienhardt’s online child exploitation activities. The Ohio Internet Crimes Against Children (ICAC) Task Force and the Hocking County Sheriff’s Office then began investigating the allegations.
Subsequent search warrants executed by the Hocking County Sherriff’s Office, in conjunction with the FBI, revealed that Gemienhardt and Daniels were acting together and produced child pornography through the grooming and sexual abuse of minor victims they had access to between April and June of 2020.
Gemienhardt and Daniels exchanged thousands of illicit text messages detailing their sexual fantasies about the minor victims. Those text messages further revealed both Gemienhardt and Daniels had plans to act out some of the detailed fantasies by sexually abusing the minors. Daniels also distributed images she created of the sexual abuse of minors to Gemienhardt.
Gemienhardt is a registered sex offender from a prior Franklin County conviction in July 2021.
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; and Hocking County Sheriff Lanny E. North announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Emily Czerniejewski is representing the United States in this case.
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Hastings Man Sentenced to 10 Years in Prison for Distribution of MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Zachary D. Ellis, 28, of Hastings, Nebraska, was sentenced today in federal court in Lincoln. United States District Judge John M. Gerrard sentenced Ellis to 120 months in prison for distribution of 50 grams or more of methamphetamine (actual) and 50 grams or more of methamphetamine mixture. After serving his sentence, Ellis will be placed on supervised release for 5 years. There is no parole in the federal system.
On June 3, 2021, under the direction of law enforcement, a confidential informant purchased about an ounce of methamphetamine from Ellis at his residence in Hastings. A lab confirmed that the methamphetamine was about 28 grams of methamphetamine mixture. On June 7, 2021, the same informant, again under law enforcement supervision, purchased two ounces of methamphetamine from Ellis at the same residence. A lab confirmed that the methamphetamine purchased on June 7, 2021 was 55.94 grams of methamphetamine mixture, of which at least 53 grams was actual methamphetamine.
This case was investigated by the Tri-City Drug Enforcement Team (TRIDENT).
Galveston man sentenced for receiving and possessing nearly 100 child pornography filesRead the Press Release
GALVESTON, Texas – A 53-year-old local man has been ordered to prison following his conviction of receiving and possessing child pornography, announced U.S. Attorney Jennifer B. Lowery.
Cedric Robert Cox pleaded guilty July 21, 2021.
Today, U.S. District Judge Jeffery Brown sentenced Cox to 84 months for each of the receiving and possessing convictions, respectively. They will run concurrently for a total 84-month term of imprisonment. Cox was further ordered to pay $9,000 in restitution to known victims and will serve 10 years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Cox will also be ordered to register as a sex offender.
In 2016, authorities discovered Cox using peer-to-peer file sharing software to obtain child pornography images and videos. They executed a search warrant at his residence and seized numerous devices. Further examination revealed the devices contained 32 images and 62 videos containing child pornography as well as search terms indicative of a sexual interest in children. Some of the videos depict a pre-pubescent minor female with her genitals exposed and engaging in various sex acts.
Cox was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations, Webster Police Department and Houston Metro Internet Crimes Against Children Task Force conducted the investigation.
Assistant U.S. Attorney Sherri L. Zack prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Former soldiers sentenced for transporting undocumented citizensRead the Press Release
LAREDO, Texas – Two former soldiers stationed at Fort Hood have been ordered to federal prison for conspiring to transport undocumented aliens within the United States, announced U.S. Attorney Jennifer B. Lowery.
Emmanuel Oppongagyare, 22, pleaded guilty Aug. 11, 2021, while Ralph Gregory Saint-Joie, 19, pleaded guilty the following day.
Today, U.S. District Judge Diana Saldaña imposed a 21-month-term of imprisonment for Oppongagyare, while Saint-Joie received 13 months. Both must also serve three years of supervised release following their sentences. At the hearing, the court heard additional testimony from both men. Oppongagyare remarked that, “On June 13, I made one of the worst mistakes of my life,” while Saint-Joie stated he was ashamed of what he did. In handing down the prison terms, Judge Saldaña commented, “you made a horrible mistake and you’re going to get punished for it. You’re going to go to prison,” and that the defendants were “really vested in trying to make this successful.”
Saint-Joie has been identified as an active duty member of the U.S. Army while Oppongagyare is from the Pennsylvania National Guard. At the time of arrest, each noted they were stationed at Fort Hood.
On June 13, 2021, Oppongagyare and Saint-Joie attempted to go through the Border Patrol (BP) Checkpoint in Hebbronville wearing their army-issued uniforms. Upon inspection, authorities discovered two individuals hidden in the trunk who were determined to be in the country illegally. Authorities promptly took them and the soldiers into custody. At the time of arrest, both Oppongagyare and Saint-Joie were wearing their Army-issued uniforms.
At the time of his plea, Oppongagyare admitted a person he met through Saint-Joie recruited him to pick up the aliens from McAllen and drive them to San Antonio. They expected to be paid once they arrived the destination but did not know the exact amount.
The two Mexican nationals hidden in the vehicle admitted to paying Oppongagyare and Saint-Joie a fee in exchange for passage into the United States. They also identified Oppongagyare and Saint-Joie as the driver and the passenger, respectively, of that vehicle.
The investigation determined Isaiah Gore had hired them and instructed them to wear their uniforms to possibly avoid questioning. Authorities also identified Denerio Williams and Ivory Palmer as being involved in human smuggling. Gore, Williams and Palmer were also indicted, pleaded guilty and later sentenced before U.S. District Judge Marina Garcia Marmolejo.
Both Oppongagyare and Saint-Joie were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Department of the Army – Criminal Investigations Division conducted the investigation with the assistance of BP conducted the investigation. Assistant U.S. Attorneys Brian Bajew and Mark Hicks prosecuted the case.
Former U.S. Department of Housing and Urban Development Assistant Inspector General Convicted of Falsifying Financial Disclosure FormsRead the Press Release
A federal jury convicted a former Assistant Inspector General for the Department of Housing and Urban Development (HUD) yesterday for engaging in a scheme to conceal his financial indebtedness to a personal friend and government contractor to whom he steered tens of millions of dollars in government business.
According to court documents and evidence presented at trial, Eghbal “Eddie” Saffarinia, 62, of Alexandria, Virginia, engaged in a scheme to conceal material facts, including the nature and extent of his financial relationship with a personal friend who was the owner and chief executive officer of an information technology company. During a period in which Saffarinia received payments and loans from his friend totaling $80,000, Saffarinia disclosed confidential internal government information to his friend and undertook efforts to steer government contracts and provide competitive advantages and preferential treatment to his friend’s company. Saffarinia also failed to disclose this financial relationship and another large promissory note on his public financial disclosure forms.
Saffarinia was convicted of one count of concealing material facts, three counts of making false statements, and three counts of falsifying a record or document. He is scheduled to be sentenced on Dec. 19 and faces a maximum penalty of 80 years in prison. 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; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office; and Inspector General Thomas A. Monheim of the Intelligence Community made the announcement.
The FBI Washington Field Office and the Office of the Inspector General of the Intelligence Community investigated the case.
Senior Litigation Counsel Edward P. Sullivan and Trial Attorneys Rosaleen T. O’Gara and John P. Taddei of the Criminal Division’s Public Integrity Section prosecuted the case.
Former St. Louis County High School Counselor Admits Sex, Inappropriate Conduct with StudentsRead the Press Release
ST. LOUIS – A former high school counselor in St. Louis County, Missouri on Tuesday admitted having sexual contact with one student and having inappropriate contact with nine others.
James Q. Jenkins, 38, pleaded guilty in front of U.S. District Judge Ronnie L. White to two felonies: coercion and enticement of a minor and transfer of obscene material to minors.
Between Oct. 1, 2020 to Sept. 1, 2021, while a high school counselor, Jenkins engaged in a pattern of inappropriate activity with multiple students.
Jenkins admitted approaching one 15-year-old student at school and telling her he wanted to get to know her better. The student began to go to Jenkins’ office, where they would paint or play board games. Jenkins began to contact the teen on her personal cell phone and via social media. Jenkins told the victim that he was very sexual, requested nude pictures and sent her nude pictures. He claimed he loved her and told her not to tell anyone about their communications while telling the victim that he wanted to have sex with her.
Jenkins approached another teen in the lunchroom and asked her to come see him. He soon began to compliment her body and told her that he wanted to engage in phone sex with her.
A third teen began meeting with Jenkins because of challenges at home. He started communicating with her in a sexual manner, sent her nude pictures of himself and requested pictures in return. He also engaged in sexual conduct with the teen while she was a student, on occasion leaving school early to do so. In his plea agreement, Jenkins disputed the teen’s claim that the first sexual encounter was non-consensual.
Jenkins told a fourth student that another teacher had recommended counseling. Jenkins brought up inappropriate topics, arranged to smoke marijuana with her and asked her to teach him a “sensual” dance.
About six more students reported inappropriate behavior. They told authorities that Jenkins made comments about their bodies, communicated with them on their personal cellular telephones and social media accounts, tried to make plans with them outside of school, showed them sexual videos, took his shirt off, called them by pet names and touched them in a manner that was inappropriate and uncomfortable, Jenkins’ plea agreement says.
Jenkins was counseled by school officials about concerns that he put off seeing male students in need of counseling while demonstrating alarming familiarity and frequency of contact with certain female students, his plea says.
After Jenkins quit in the summer of 2021, claiming his mother was ill, he tried to get work as an elementary school counselor. The investigation also revealed that Jenkins had been counseled and put on administrative leave by the St. Joseph School District in Missouri due to inappropriate behavior with female students, his plea says.
Jenkins is scheduled to be sentenced December 20. He faces a penalty of 10 years to life in prison and a $250,000 fine.
The St. Louis County Police Department investigated this case. Assistant U.S. Attorney Jillian Anderson 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 U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former South Georgia pastor, tax preparer sentenced to federal prison for COVID-19 relief fraudRead the Press Release
BRUNSWICK, GA: A three-time convicted felon who held himself out as a pastor, mortician, restaurateur, and tax preparer has admitted lying to receive COVID-19 small business assistance.
Mack Devon Knight, 45, of Stonecrest, Ga., formerly of Kingsland, Ga., was sentenced to 29 months in prison followed by three years of supervised release after previously pleading guilty to two counts of Wire Fraud, said David H. Estes, U.S. Attorney for the Southern District of Georgia. In pleading guilty to the charges, Knight also agreed to pay $149,000 in restitution to the Small Business Administration.
“When Congress provided more than $6.5 billion through the Coronavirus Aid, Relief and Security (CARES) Act to help small businesses struggling financially during the pandemic, fraudsters like Mack Knight came out of the woodwork” said U.S. Attorney Estes. “With our law enforcement partners, we are identifying and holding accountable these scam artists attempting to steal taxpayer funds.”
As described in court documents and testimony, in February and March 2021, Knight applied for Economic Injury Disaster Loans (EIDLs) from the Small Business Administration (SBA) on behalf of multiple Camden County, Ga., businesses. Those EIDL applications falsely claimed that Knight had a series of businesses with hundreds of thousands of dollars of gross revenue prior to the COVID-19 pandemic. Knight admitted that those applications were fraudulent, and he admitted sending fictious documents to the SBA, including a fake tax document and an altered bank record.
As a result of those fraudulent filings, Knight received $149,900 from the SBA on behalf of a claimed tax business, and he used a large portion of the funds to buy a Mercedes-Benz S-Class sedan. As part of his plea agreement, Knight is forfeiting the vehicle to the United States.
Knight has at least three prior felony convictions for other acts of fraud.
“So many businesses needed federal emergency assistance to stay afloat during the pandemic, and this defendant misdirected hundreds of thousands of dollars of that money to his own pockets,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Mack Knight’s actions affected every tax paying citizen, in particular those who needed help the most. The FBI will continue to make every effort to ensure federal funds are used as intended.”
The FBI investigated the case. Knight was prosecuted for the United States by Assistant U.S. Attorneys Jonathan A. Porter and E. Greg Gilluly Jr.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Sacramento Man Pleads Guilty to Failing to File Report of Foreign Bank and Financial AccountsRead the Press Release
SACRAMENTO, Calif. — Virgil Sever Santa, 49, formerly of Sacramento, pleaded guilty today to failing to file a report of foreign bank and financial accounts (FBAR) with the Department of the Treasury, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Virgil Santa’s wife, Maria Santa, was convicted of mail fraud in 2013 and was ordered to surrender in early 2014 for service of her prison sentence. In February 2014, Virgil Santa reported to local law enforcement that his wife was missing and had left a note suggesting that she had committed suicide. Despite search efforts, Maria Santa was not found. It was later determined that she had faked her purported suicide and fled the country to avoid going to prison. Documents obtained from the Romanian government confirmed that Maria Santa eventually made her way to Romania.
According to court documents, in December 2014, Virgil Santa opened a foreign bank account at Banca Comerciala Romana S.A., in Romania, over which he had signatory authority. In April 2015, he caused over $50,000 to be wired from the United States to this foreign bank account. Bank records show that, in June 2015, Virgil Santa added his wife to the account so that she was permitted to make withdrawals in Romania. While Maria Santa was hiding in Romania from United States authorities, the couple made significant withdrawals from the account between April and August 2015.
Because Virgil Santa’s Romanian bank account had a value of over $10,000 in the 2015 calendar year, he was required by law to file an FBAR, in the form of FinCEN Form 114, with the Treasury Department by June 30, 2016. Knowing that he had a duty to file such a report, Santa willfully failed to file an FBAR by the deadline. In 2016, Virgil Santa also filed a U.S. tax return for the 2015 tax year, which also failed to disclose the existence of this foreign account.
In August 2016, federal agents found Maria Santa living as a fugitive with her husband back in Sacramento. She was arrested and eventually pleaded guilty to failing to surrender for service of her prison sentence. On Jan. 24, 2018, she was sentenced to serve a year and a day in prison consecutive to her original 20-month sentence.
This case is the product of an investigation by IRS Criminal Investigation. Assistant U.S. Attorneys Robert J. Artuz and Matthew Thuesen are prosecuting the case.
Virgil Santa is scheduled to be sentenced on Nov. 29, 2022, by U.S. District Judge Dale A. Drozd. Santa faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Macomb County Public Works Commissioner Anthony Marrocco Pleads Guilty to ExtortionRead the Press Release
DETROIT – Former Macomb County Commissioner of Public Works Anthony Marrocco pleaded guilty to extortion by withholding county permits from businessmen who refused to contribute to Marrocco’s campaign accounts, United States Attorney Dawn N. Ison announced today.
Ison was joined in the announcement by James Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Sarah L. Kull, Special Agent in Charge of the Detroit Field Office of IRS Criminal Investigations.
Marrocco, 73, of Ray Township, Michigan, pleaded guilty before United States District Judge Robert H. Cleland at the Port Huron, Michigan Federal Courthouse.According to the plea agreement, Marrocco served as the Commissioner of Public Works from 1993 through 2016. Marrocco pleaded guilty to Count Three of the Indictment charging him with attempted extortion of a Macomb County developer in April 2016. Marrocco admitted that he pressured the developer to spend thousands of dollars to purchase tickets to one of Marrocco’s fundraisers. Marrocco threatened to delay or withhold approval of county permits sought by the developer if he did not purchase additional tickets to Marrocco’s political fundraiser.
The extortion conviction of Marrocco is the final and most significant development in federal law enforcement’s years-long effort to aggressively investigate and prosecute corruption in suburban Detroit, and Macomb County in particular. Thus far in this effort, some twenty-three public officials and bribe-paying businessmen have been charged and convicted in connection with the Macomb County corruption probe, including two defendants convicted after jury trials, as well as the conviction and imprisonment of elected Macomb County Prosecutor Eric Smith.
United States Attorney Ison said: “The conviction of Marrocco for extortion sends a clear signal that public officials cannot use their governmental power to coerce individuals to contribute to their political campaigns. This conviction symbolizes our years-long crackdown on corruption in Macomb County that has helped to further the rule of law and good government for the county’s citizens.”
“Public officials, whether elected or appointed, hold positions of trust in the eyes of the public and that trust is broken when these officials commit crimes,” said Special Agent in Charge Sarah Kull, Internal Revenue Service – Criminal Investigation, Detroit Field Office. “If you commit a crime, status as a political leader will not protect you from federal prosecution.”
This investigation was conducted by the Federal Bureau of Investigation's Detroit Area Corruption Task Force and the Internal Revenue Service. The Detroit Area Corruption Task Force member agencies include the FBI, State of Michigan Attorney General's Office, Michigan State Police, Detroit Police Department, U.S. Customs and Border Patrol-Office of Professional Responsibility, Internal Revenue Service, and U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorneys Steven Cares and Robert Moran.
Former Donora Man Sentenced for His Involvement in Two Drug ConspiraciesRead the Press Release
PITTSBURGH - A former resident of Donora, Pennsylvania, has been sentenced in federal court to 66-1/2 months on his conviction of federal narcotics charges, United States Attorney Cindy K. Chung announced today.
Chief United States District Judge Mark R. Hornak imposed the sentence on Jamie Lightfoot, Sr., 51, currently incarcerated at the Northeast Ohio Correctional Center.
According to information presented to the court, Lightfoot Sr., even though incarcerated, remained involved in a drug conspiracy involving his son, Jamie Lightfoot, Sr., and other co-defendants. Lightfoot Sr. was also involved in a conspiracy to smuggle steroids into prison during his incarceration.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police, with assistance from the South Strabane Police Department, the Elizabeth Borough Police Department, the Penn Hills Police Department, and the Perryopolis Police Department, for the investigation leading to the successful prosecution of Lightfoot Sr.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former Disaster Relief Consultant and Retired NYPD Inspector Pleads Guilty to Conspiring to Commit Federal Program Fraud in Connection with New York City’s Hurricane Sandy Recovery EffortsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Jocelyn Strauber, Commissioner of the New York City Department of Investigation (“DOI”), announced that WALTER MELNICK, a retired Inspector of the New York City Police Department and a disaster relief consultant, pled guilty to conspiring to commit federal program fraud in connection with his work for an Illinois-based consulting firm (“Company-1”) that provided Hurricane Sandy-related recovery services to the City of New York. MELNICK surrendered today and pled guilty before U.S. Magistrate Judge Valerie Figueredo in federal court in Manhattan. The case has been assigned to U.S. District Judge Victor Marrero.
U.S. Attorney Damian Williams said: “As New York City worked to recover from the devastation of Hurricane Sandy, Walter Melnick conspired to misuse funds that were allocated to heal the city in the wake of this disaster, instead attempting to use the funds for his own benefit. I commend the Department of Investigation and this Office for holding to account those who conspire to defraud invaluable federal programs.”
DOI Commissioner Jocelyn Strauber said: “This defendant was hired to help New York City with Hurricane Sandy relief efforts; instead, he conspired to defraud the City’s Office of Management and Budget of almost three hundred and ninety thousand dollars in federal disaster recovery funds. Today, he plead guilty to that conduct, and agreed to pay back those funds to the City. DOI thanks the Office of Management and Budget for its assistance. We will continue to work with our local and federal law enforcement partners to hold accountable those who would seek to defraud the public and to ensure that public funds are used for their intended purpose.”
According to the allegations in the Information, court filings, and statements made in court:[1]
Beginning in or about 2013, in the aftermath of Hurricane Sandy, the City of New York received billions of dollars in federal money to fund Hurricane Sandy-related recovery efforts. The City used certain of these funds to hire Company-1 to assist with Hurricane Sandy relief (the “Sandy Project”). Company-1 hired MELNICK as an independent contractor to work on the Sandy Project.
Between in or about 2013 and in or about 2019, while working on the Sandy Project for Company-1, MELNICK participated in two schemes to defraud the New York City Office of Management and Budget (“NYC-OMB”). First, between in or about January 2013 and in or about October 2017, MELNICK conspired with at least one other individual (“CC-1”) and submitted fraudulent documentation to NYC-OMB via Company-1, falsely claiming that he was renting and living in an apartment in New York in order to obtain lodging and travel reimbursements. Upon learning that this first fraudulent scheme was under investigation, MELNICK told CC-1 to lie to law enforcement. Second, between in or about 2017 and in or about 2019, while working on the Sandy Project, MELNICK conspired with at least two individuals, including another employee of Company-1 (“CC-2”) and a family member (“CC-3”), to purchase a property that CC-2 used to submit fraudulent reimbursement requests to NYC-OMB via Company-1 for lodging expenses to which CC-2 was not entitled. CC-2 transferred the proceeds from this fraudulent scheme to CC-3, who used part of the proceeds to pay the mortgage and maintenance for the property and retained the rest. In or about March 2022, MELNICK made false statements to the Government in connection with this second fraudulent scheme.
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WALTER MELNICK, 77, of Treasure Island, Florida, pled guilty to one count of conspiring to commit federal program fraud, which carries a maximum sentence of five years in prison. Under the terms of his plea agreement, MELNICK agreed to forfeit $387,749 and to pay restitution to NYC-OMB in the amount of $387,749.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge. MELNICK is scheduled to be sentenced by Judge Marrero on January 20, 2023, at 10 a.m.
Mr. Williams praised the outstanding investigative work of DOI.
This matter is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Jane Kim and Catherine Ghosh are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Information constitutes only allegations, and every fact described herein should be treated as an allegation.
Former Broadcom Engineer Sentenced to Eight Months in Prison for Theft of Trade SecretsRead the Press Release
SAN JOSE – Peter Kisang Kim, a former Broadcom Inc. engineer, was sentenced today to eight months in prison for trade secret theft involving Broadcom trade secrets, announced United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Sean Ragan. The sentence was handed down by the Hon. Beth Labson Freeman, United States District Judge.
Kim, 51, a resident of Ben Lomond, pleaded guilty to the crimes on May 10, 2022. According to documents filed in the case, Broadcom is headquarted in San Jose and its products include networking chips used in equipment sold worldwide, including for enterprise and data center networking. In July 2020, Kim had been employed by Broadcom for over twenty years and worked as a principal design engineer at the company. He worked on various Broadcom products during his time at the company, including the Trident family of chips frequently used in high-volume data centers.
Kim resigned from Broadcom effective July 17, 2020, and in the days before he left Broadcom, Kim copied more than 500 Broadcom files from its document repository system. In pleading to trade secret theft, he admitted to possessing Broadcom trade secrets related to the Trident family of chips, including those contained in test plans, design verification environment files, and design specifications. He admitted that he knowingly possessed the Broadcom trade secrets knowing that he took them from Broadcom. He also acknowledged that Broadcom took reasonable measures to keep the Broadcom trade secrets secret, including by storing the trade secrets on non-public document repositories in which the access permissions were restricted, requiring appropriate nondisclosure agreements to be executed before the trade secrets could be shared outside Broadcom, and in view of the confidentiality agreements Kim signed with Broadcom and the annual trainings he received, among other things.
Less than two weeks after he left Broadcom, Kim began working as IC Design Verification Director for a startup company based in the People’s Republic of China (“PRC”). Kim acknowledged in his plea agreement that the company was seeking to become a leading chip designer focused on the PRC’s domestic market for networking chips at the time. During Kim’s employment at his new company, Kim repeatedly accessed and referenced the Broadcom trade secrets on his personal electronic devices as well as the laptop issued by his new employer, as he admitted in his plea agreement. Further, Kim reviewed the Broadcom trade secrets on his company-issued laptop while also working on verification, test plan, and architecture documents for his new employer.
Kim admitted in his plea agreement that, having taken the Broadcom trade secrets for reference purposes, he knew that having them could advance the quality of his work as an employee for his new employer and therefore economically benefit the company. Kim also admitted that he knew that his actions could injure Broadcom, including because his new employer was seeking to become a competitor to Broadcom by developing competing products abroad.
On November 4, 2021, a federal grand jury indicted Kim charging him with eighteen counts of trade secret theft associated with Broadcom. Pursuant to his plea agreement, Kim pleaded guilty to three counts. In accordance with the terms of his plea agreement, the remaining counts were dismissed today in connection with his sentencing.
In addition to the prison term, Judge Freeman imposed a three-year term of supervised release on Kim following incarceration, restitution to the victim Broadcom, and a fine.
The cases were prosecuted by Assistant U.S. Attorneys Eric Cheng and Kyle Waldinger from the Special Prosecutions Section of the U.S. Attorney’s Office for the Northern District of California, with the assistance of Margoth Turcios, Kathy Tat, and Megan Pagaduan. The prosecutions are the result of investigations by the Federal Bureau of Investigation.
Former Bakersfield DMV Employee Pleads Guilty to Issuing Commercial Driver’s Licenses to Unqualified Drivers in Exchange for BribesRead the Press Release
FRESNO, Calif. — Ulises Pena, 39, a former California Department of Motor Vehicles employee in Bakersfield, pleaded guilty Monday to illegally producing California commercial driver’s licenses (CDL) in exchange for bribes, U.S. Attorney Phillip A. Talbert announced.
According to court records, Pena was a Motor Vehicle Representative at the DMV and was responsible for processing driver’s license applications. From January 2015 through August 2016, he arranged for the passage of written tests for students from co-defendant Bikramjit Singh Pannu’s truck driving school who were having trouble passing the tests in exchange for payments from Pannu. Pena improperly accessed the students’ DMV records and altered them to show that the students had passed the tests when that was not true. His alterations caused the fraudulent issuance of CDLs to the unqualified students.
This case is the product of an investigation by Homeland Security Investigations and the California DMV’s Internal Affairs Division. Assistant U.S. Attorneys Joseph Barton and David Gappa are prosecuting the case.
Charges are pending against Pannu. He is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pena has agreed to cooperate with the government in its ongoing case against Pannu. Pena is scheduled to be sentenced by U.S. District Judge Ana de Alba on Dec. 12, 2022. Pena faces a maximum penalty of 15 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Food Drive Makes a difference for Those on a Fixed IncomeRead the Press Release
Staff from the United States Attorney’s Office for the Southern District of Florida (USAO-SDFL) served hundreds of locals this morning during a Farm Share Food Distribution at Gwen Cherry Park in Miami.
Staff was at it bright and early, setting up tents and tables to get food and pet supplies ready to distribute.
The line of cars stretched around the park’s main building long before 9 a.m. event kick-off. On today’s menu was whole chicken, milk, an assortment of bread, canned vegetables and pasta, as well as dog and cat food.
“I think it helps the community because we have food deserts throughout this district that we live in,” said J.D. Smith, Chief of Law Enforcement Coordination and Community Outreach Section, USAO-SDFL. “People are disabled, they’re unemployed, they’re senior citizens on a fixed income and it’s important for them to have a resource to add to whatever budget they have for food each month.”
Several people in line echoed this sentiment as they waited for their supplies.
“It helps me out a lot because it helps my social security check go a bit further,” one said. “I try to be here every time they hold one of these … if I can get up early enough. Everyone you see in line has been here for several hours.”
Another person waiting in line said, “These food drives are very important to me because I am disabled and on a fixed income.”
Department of Justice staff members hold these drives four times per month by partnering with Farm Share, Miami-Dade County Parks and Recreation, and Miami-Dade Police Department—South District. Click here for times and locations as they do change.
Anyone interested in volunteering for these events may call (305) 961-9134 to speak with someone at the U.S. Attorney’s Office.
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Federal Jury Convicts Repeat Offender of Drug Trafficking and Firearms ChargesRead the Press Release
CHARLOTTE, N.C. – A Charlotte federal jury has convicted Josue Aldana, 28, of Charlotte, of two counts of possession of a firearm by a convicted felon and one count of possession with intent to distribute marijuana, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Frank D. Whitney presided over the two-day trial, which ended today.
According to filed court documents and evidence presented at trial, on the evening of April 19, 2021, officers with the Charlotte Mecklenburg Police Department (CMPD) responded to a service call that an individual, later identified as Aldana, was causing a domestic disturbance. Trial evidence established that officers responding to the service call recovered from Aldana’s vehicle his cell phone, a pistol, and ammunition for a different caliber firearm. Aldana is a convicted felon, and he is not permitted to possess firearms.
According to evidence presented at trial, two days later, on April 21, 2021, investigators searched Aldana’s residence in Matthews, N.C. Investigators found a revolver in Aldana’s bedroom, which was loaded with the same type of ammunition found in Aldana’s vehicle two days prior. Law enforcement identified Aldana’s fingerprint on the revolver. Investigators also seized nearly a quarter kilogram of marijuana and a digital scale inside a backpack located in Aldana’s bedroom. On Aldana’s cell phone, investigators found photographs of marijuana being weighed on digital scales for distribution.
According to statements made in court during a related proceeding in August 2021, when the aforementioned events occurred, Aldana was on federal supervised release after serving a prison sentence for murder in aid of racketeering and conspiracy to commit the same from the U.S. District Court for the Eastern District of New York. Judge Whitney revoked Aldana’s supervised release based on the above-described events and ordered Aldana serve three years in federal prison.
Aldana now faces a separate sentencing hearing for today’s trial convictions, which will be set at a later date. Aldana currently remains in custody.
In making today’s announcement, U.S. Attorney King commended CMPD, the U.S. Marshals Service, and the U.S. Probation Office for their investigation of the case, and thanked the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration for their assistance.
Assistant U.S. Attorney Taylor G. Stout, of the U.S. Attorney’s Office for the Western District of North Carolina in Charlotte, is prosecuting the case.
Dual Resident Doctor Indicted for Tax EvasionRead the Press Release
A federal grand jury recently returned a one-count indictment charging Melissa Rose Barrett, age 48, of Baton Rouge, Louisiana, and Clive, Iowa, with tax evasion. Barrett appeared for her arraignment and pled not guilty to the pending charges.
Barrett, a physician, owned and operated an urgent care clinic known as Stat Care Clinics, L.L.C. d/b/a Central Stat Care. According to the indictment, for tax years 2007 through 2017, Barrett owed significant taxes totaling approximately $1.6 million, excluding interest and penalties. While not paying her taxes, Barrett made millions of dollars in purchases, including a boat, a personal residence, real property, an airplane, and other items totaling at least $6.7 million.
This matter is being investigated by the Internal Revenue Service, Criminal Investigations Unit and is being prosecuted by Assistant United States Attorney Edward H. Warner.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Denver Felon Pleads Guilty to Weapons and Drug ChargesRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces Brian Shamar Thompson, age 35, of Denver, pleaded guilty to one count of possession of a firearm by a convicted felon and possession of cocaine with intent to distribute.
According to the plea agreement, on March 31, 2022, at 9:23 p.m., officers were dispatched to the 3300 block of North Cherry Street in Denver regarding a report of multiple shots fired. When officers arrived, they observed Brian Shamar Thompson, who matched the subject description, along with a white SUV which had an expired registration in his name.
While looking into the vehicle from the outside, officers observed a black pistol with an extended magazine wedged between the driver’s seat and the center console. The handle was sticking out with the barrel toward the floor. After seizure, the firearm was determined to be a Glock, model 22, .40 caliber pistol. Inserted into the semi-automatic pistol was a high-capacity magazine which was capable of holding more than 15 rounds of ammunition. The firearm was loaded with one round of .40 caliber ammunition in the chamber and twelve rounds of .40 caliber ammunition in the magazine. Multiple expended shell casings (both .40 cal. and 9mm) were located at the scene. Subsequent investigation tied seized 9mm shell cases to additional unlawful discharge investigations occurring over the preceding weeks.
Thompson was detained and placed in the back of a patrol car. When officers checked his criminal history, they found that he had been convicted of multiple felonies. Thus, he was a prohibited possessor of firearms. Notably, on June 8, 2017, Thompson was previously arrested for possession of a weapon by previous offender. Thompson pleaded guilty in United States District Court of Colorado (case #2017CR218) and was sentenced on December 1, 2017. He was on federal supervised release when he was again arrested on March 31, 2022.
When officers checked on Thompson in the back seat of the patrol car, they noticed a large amount of white powder (later determined to be cocaine) on the floor and seat of the vehicle under Thompson and on his clothing. Thompson also had a bag of cocaine in his hands behind his back.
Judge Daniel D. Domenico presided over the change of plea hearing on September 20, 2022. The defendant is scheduled to be sentenced on January 12, 2023. The defendant is in custody pending sentencing.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Denver Police Department. It is being prosecuted by Assistant United States Attorney Bradley Giles.
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.
D.C. Man Sentenced to 10 Years in Prison for Attempting to Steal More than $31 Million in COVID-19 FundsRead the Press Release
WASHINGTON – Elias Eldabbagh, 31, of Washington, D.C., was sentenced today to 10 years in prison for carrying out a scheme to steal more than $31 million under the CARES Act and laundering the proceeds of the crime. Eldabbagh succeeded in stealing $2,385,000 under the Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loan (EIDL) program.
The announcement was made by U.S. Attorney Matthew M. Graves, Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General.
“This defendant shamelessly took advantage of a global health crisis to create his own get-rich scheme at the expense of the government’s COVID relief programs,” said U.S. Attorney Graves. “He stole more than $2.3 million – and tried to collect many millions more – that was targeted for small businesses and employees struggling to get by. While others were suffering, this defendant was draining government money to purchase a Tesla, invest in speculative stock options and cryptocurrency, and cover rent, hotels, dog boarding, and other personal expenses. Today’s sentence holds him accountable for these crimes and demonstrates our resolve to prosecuting those who cheat government programs.”
“Elias Eldabbagh is facing the consequences of shamelessly stealing an identity and trying to steal tens of millions of dollars of taxpayer money that the CARES Act provided for legitimate business owners and employees during a time of national crisis,” said IRS-Criminal Investigation Special Agent in Charge Waldon. “Although he succeeded in fraudulently receiving nearly $2.4 million to pursue an extravagant lifestyle, it was short lived due to the efforts of our IRS-CI special agents and law enforcement partners. IRS-CI will continue to root out and pursue COVID-19-related and other financial fraudsters to hold these criminals accountable.”
“OIG relentlessly will pursue fraudsters that seek selfish gain from SBA programs intended to support American small business,” said SBA OIG’s Eastern Region Special Agent in Charge McCall-Brathwaite. “OIG is focused on rooting out bad actors in these vital SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and commitment to seeing justice served.”
Eldabbagh pleaded guilty on April 8, 2022, in the U.S. District Court for the District of Columbia, to wire fraud and laundering the proceeds of the wire fraud scheme. He was sentenced by the Honorable Trevor N. McFadden. Following his prison term, Eldabbagh will be placed on three years of supervised release. He also must pay $2,452,050 in restitution. The judge also ordered the forfeiture of a Tesla and seized bank accounts, as well as a money judgment in the amount of $2,385,000.
From July 2020 through May 2021, Eldabbagh used his company, Alias Systems, LLC, to fraudulently apply for at least 25 PPP loans totaling more than $30 million. He also submitted at least four false EIDL applications totaling $950,000. During the course of his scheme, Eldabbagh used a stolen identity to disguise the ownership of Alias Systems, LLC, and used the same stolen identity to submit the vast majority of the applications. In support of his fraudulent applications, Eldabbagh used stolen identities, stolen tax returns and stolen financial records from a Washington, D.C. consulting company. Eldabbagh fraudulently doctored the stolen documents to appear to be tax returns and payroll records of his company, Alias Systems, LLC. Eldabbagh successfully stole $2,385,000 from the PPP and EIDL programs.
Eldabbagh wired the proceeds of his scheme to at least 13 separate bank and brokerage accounts and to purchase a Tesla Model 3. Eldabbagh then converted at least $288,000 of proceeds from fiat currency into multiple cryptocurrencies. Using fraud proceeds, Eldabbagh conducted over 2,000 transactions involving at least 43 different cryptocurrencies.
Eldabbagh also used the money he stole to pay for rent, hotels, dog boarding, attorney fees, ride shares, electronics, and various personal expenses.
In May 2021, IRS-CI executed seizure warrants on Eldabbagh’s bank accounts and investment accounts. Eldabbagh proceeded to make multiple attempts to transfer seized funds prior to being thwarted by federal agents. As part of his plea agreement, Eldabbagh had agreed to forfeit the Tesla Model 3, the contents of 21 bank accounts, and he had agreed to liquidate his interest in the cryptocurrency obtained with proceeds and to remit the funds to the United States government.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in or around March 2020 and was designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief that had been provided by the CARES Act was the authorization of billions in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP).
An Economic Injury Disaster Loan (“EIDL”) is a Small Business Administration administered loan designed to provide assistance to small businesses that suffer substantial economic injury as a result of a declared disaster. An EIDL helped businesses meet necessary financial obligations that could have been met had the disaster not occurred. It provided relief from economic injury that the disaster caused and permitted businesses to maintain a reasonable working capital position during the period that the disaster affected.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Waldon, and Special Agent in Charge McCall-Brathwaite commended the work of those who investigated the case from IRS-CI and the SBA Office of the Inspector General. This case was prosecuted by Assistant U.S. Attorney Leslie A. Goemaat of the Fraud, Public Corruption, and Civil Rights Section, supported by Paralegal Specialist Mariela Andrade.
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On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Court of Appeals Upholds Conviction and 17½-Year Sentence for East Stroudsburg Financial Planner Who Defrauded ClientsRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 19, 2022, the United States Court of Appeals for the Third Circuit affirmed both the conviction and 210-month sentence of Anthony Diaz, age 54, formerly of East Stroudsburg, Pennsylvania. That sentence was imposed by United States District Court Judge Malachy E. Mannion on March 26, 2021, after Diaz was convicted by a jury on multiple counts of wire fraud and mail fraud.
According to United States Attorney Gerard M. Karam, from approximately 2008 through April 2015, Diaz owned and operated Financial Planners Group of America, a financial planning business in East Stroudsburg and Scotrun, Pennsylvania. Diaz persuaded his clients to invest in high risk, illiquid “alternative investment products,” including real estate investment trusts, business development companies, oil and gas drilling companies, and equipment leasing companies. Diaz convinced clients to invest their life savings in the alternative investments through a series of false representations, including that the investments were low-risk, with guaranteed protection of principle and guaranteed rates of return, and that the investments were liquid, giving investors access to their funds in an emergency.
On appeal, Diaz asserted a litany of challenges to his conviction and sentence, prompting the Court of Appeals to remark, “On appeal, parties sometimes throw everything against the wall to see what sticks. Here, nothing does.” The Court of Appeals found that the government properly presented evidence of the full scope of Diaz’s scheme to defraud, including conduct occurring after the wires and mailings that were specifically charged in the indictment. For instance, evidence showed that Diaz was terminated by five broker-dealers and permitted to resign by a sixth broker-dealer. Diaz’s former employees testified that they were ordered to conceal his firings and lie to the clients about his changes between broker-dealers. Diaz also was suspended by the Certified Financial Planners Board of Standards in 2013, and under investigation by the Financial Industry Regulatory Authority and the Pennsylvania Department of Banking, both of whom ultimately barred Diaz from the securities industry in 2015. Diaz’s clients testified that he failed to disclose and concealed the true nature of his firings, suspension, and regulatory investigations.
The Court of Appeals upheld the admission of that evidence, finding the concealment of such information from clients to be intrinsic to Diaz’s offenses. Likewise, testimony that Diaz and a former employee destroyed documentation to stymy a regulatory investigation was deemed properly admitted, despite coming to light for the first time mid-trial.
In affirming Diaz’s sentence, the Court of Appeals upheld a sentencing enhancement imposed by the District Court for defrauding at least 25 victims, holding that although the District Court did not specifically identify each victim at sentencing, it was entitled to draw reasonable inferences from the record in support of the enhancement. The Court of Appeals likewise upheld four other sentencing enhancements for engaging in a scheme that involved sophisticated means, violating securities laws (even though no securities law charge was included in the indictment), having an aggravating role in directing others to engage in criminal activity, and obstruction of justice for committing perjury when testifying during trial. Overall, the Court of Appeals found Diaz’s sentence substantively reasonable, noting that the District Court sentenced him more than four years below his advisory guidelines.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Phillip Caraballo and Robert O’Hara prosecuted the case.
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Clothing Wholesaler Agrees to Plead Guilty to Violating U.S. Drug Trafficking Sanctions and Committing $6.4 Million Customs FraudRead the Press Release
LOS ANGELES – A Paramount-based clothing wholesale company has agreed to plead guilty to federal criminal charges for undervaluing imported garments in a scheme to avoid paying almost $6.4 million in customs duties and for doing business with a woman in Mexico who has ties to the Sinaloa drug cartel, the Justice Department announced today.
Ghacham Inc., which does business under the “Platini” brand name, is charged in a two-count information with conspiracy to pass false and fraudulent papers through a customhouse and conspiracy to engage in any transaction or dealing in properties of a specially designated narcotics trafficker under a statute known as the Foreign Narcotics Kingpin Designation Act.
Also charged today is Mohamed Daoud Ghacham, 38, of Bell, a Ghacham Inc. executive who is charged with one count of conspiracy to pass false and fraudulent papers through a customhouse. Both defendants also signed plea agreements filed today in United States District Court and are expected to make their initial court appearances on November 18.
According to court documents, Ghacham Inc. imported clothing from China and submitted fraudulent invoices to United States Customs and Border Protection (CBP) that undervalued the shipments, allowing it to avoid paying the full amount of tariffs owed on the imports.
At Mohamed Ghacham’s direction, the Chinese suppliers prepared two invoices for the clothing ordered by Ghacham Inc. – a true invoice, which reflected the actual price paid for the goods, and a fraudulent “customs invoice,” which reflected an understated price. Ghacham Inc. submitted the customs invoices to CBP and customs brokers to fraudulently reduce the tariffs owed on the imports, while it maintained the true invoices in its accounting records.
Ghacham Inc. and Mohamed Ghacham admitted that, between July 2011 and February 2021, they undervalued imported garments by more than $32 million and failed to pay customs duties approximately $6,390,792.
Ghacham Inc. also illegally conducted business with Maria Tiburcia Cazarez Perez in violation of the Kingpin Act, which prohibits people and businesses in the United States from doing business with her. Cazarez Perez was previously designated a “Specially Designated Narcotics Traffickers” under the Kingpin Act for her participation in the financial network of Ismael “El Mayo” Zambada Garcia and Victor Emilio Cazares Salazar, two leaders of the Mexico-based Sinaloa Cartel. Cazares Salazar was sentenced to 15 years in federal prison for drug trafficking activities in federal cases out of San Diego and New York City.
Upon entering guilty pleas, Ghacham Inc. will face a statutory maximum penalty of a $10.5 million fine and five years’ probation – during which time it will be required to implement an effective anti-money laundering compliance and ethics program with an outside compliance monitor, and Mohamed Ghacham will face up to five years in federal prison.
Homeland Security Investigations and CBP investigated this matter. The U.S. Department of Commerce Office of Export Enforcement, Treasury Department’s Office of Foreign Assets Control, and IRS Criminal Investigation provided significant assistance.
Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Diana L. Pauli of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Cleveland Heights Man Charged with Stealing Packages from the Mail and Cash from the United States Postal ServiceRead the Press Release
CLEVELAND - A federal grand jury has returned a two-count indictment charging Brandon Monteal Williams, 32, of Cleveland Heights, Ohio, with theft of mail by a postal employee and misappropriation of postal funds.
According to the indictment, from January to March 2022, Williams, a former mail processing clerk with the United States Postal Service and assigned to the Brooklyn, Ohio, branch, allegedly stole numerous parcels from the U.S. mail, including 10 cell phones and five pairs of high-valued sneakers totaling over $8,700.
Additionally, the indictment alleges that Williams stole not more than $1,000 in money and property from the Postal Service while employed with the agency.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offenses and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum; in most cases, it will be less than the maximum.
This case was investigated by the U.S. Postal Service Office of Inspector General (USPS OIG) and is being prosecuted by Assistant U.S. Attorney Andrea Isabella.
Clarksville Man Sentenced to 9 Months in Federal Prison for $1.1 Million Tax Fraud SchemeRead the Press Release
NEW ALBANY – Tracy E. Leonard, 53, of Clarksville, Indiana, was sentenced to nine months in federal prison after pleading guilty to subscribing to a false federal income tax return.
According to court documents, Leonard operated a private investigation business in Clarksville. From 2015 to 2019, Leonard hid his income from the IRS by cashing 186 business income related checks, at a Clarksville check cashing business, rather than depositing the checks into a bank account. The check cashing business charged Leonard a fee of up to 10% to cash each check. During 2018 and 2019, Leonard cashed checks weekly that were typically over $25,000 and often over $50,000.
There was a significant discrepancy between the amount of the checks received and cashed by Leonard and what he reported as income on his federal income tax returns for 2015 through 2019. Leonard’s unreported income for the 5 years exceeded $1.1 million. Leonard also owes the IRS $300,339 for taxes lost due to his filing of false tax returns.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Justin Campbell, Special Agent in Charge, Chicago Field Office, IRS-Criminal Investigation, made the announcement.
U.S. Attorney Myers thanked Assistant United States Attorney James M. Warden, who is prosecuting this case.
IRS-Criminal Investigation investigated the case. The sentence was imposed by U.S. District Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Leonard be supervised by the U.S. Probation Office for two years following his release from federal prison. Restitution will be set in a future court order.
Child Sex Trafficker Sentenced to 20 Years in PrisonRead the Press Release
ANCHORAGE – An Anchorage man was sentenced by Chief U.S. District Judge Sharon L. Gleason to 20 years in prison followed by 20 years of supervised release for sex trafficking a minor and production and possession of child pornography. He was also ordered to pay $23,070 in restitution.
According to court documents, Jayshon Moore, aka “China,” 39 began having sexual encounters with the minor victim when she was 15 years old. In 2018, he created numerous sexually explicit videos of the minor which were saved on social media. Moore possessed two videos of child pornography in his Snapchat account. In the spring of 2019, Moore sex trafficked the minor victim – then 16 – setting prices, arranging transactions, and taking the money she earned from commercial sex acts.
Moore was previously convicted of drug trafficking and firearms offenses, and he was arrested in June 2019 after violating terms of his supervised release. Law enforcement executed a search of Moore’s residence and found additional evidence of sex trafficking. Moore was convicted by a federal jury in April 2022.
U.S. Attorney S. Lane Tucker of the District of Alaska and Special Agent in Charge Antony Jung of the FBI Anchorage Field Office made the announcement.
The Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force and the Anchorage Police Department investigated the case. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
Assistant U.S. Attorneys Jennifer Ivers and Michael Ebell prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines 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.
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For more information about the myths and facts of human trafficking and how to get help:
National Human Trafficking Hotline
1-888-373-7888 or Text 233733
https://humantraffickinghotline.org/what-human-trafficking/myths-misconceptions
Office on Trafficking in Persons
https://www.acf.hhs.gov/otip/about/myths-facts-human-trafficking
Polaris Project
https://polarisproject.org/myths-facts-and-statistics/
Career Offender Is Sentenced to More Than 19 Years in Federal Prison for Drug TraffickingRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Robert J. Conrad Jr. sentenced Timothy Herron, 48, of Charlotte, to 235 months in prison and six years of supervised release for drug trafficking, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and court proceedings, on January 7, 2021, the Charlotte-Mecklenburg Police Department (CMPD) received information through its Crime Stoppers system that an individual was storing firearms and selling narcotics from his hotel room near the Charlotte Douglas International Airport. Officers investigating the complaint determined that the individual was Herron. Subsequently, CMPD officers conducted a search of Herron’s hotel room, seizing heroin, cocaine, crack cocaine, and digital scales. The officers also seized two handguns, one of which had been reported stolen, and approximately $5,000 in cash.
On July 9, 2021, Herron pleaded guilty to possession with intent to distribute heroin, cocaine, and crack cocaine. At today’s sentencing hearing, Herron’s sentence was enhanced due to his classification as a “Career Offender” based on multiple prior convictions, including Possession with Intent to Sell/Deliver Cocaine in 1994, three charges of Robbery with Dangerous Weapon in 2000, federal Hobbs Act robbery in 2012, and Possession with Intent to Sell/Deliver Cocaine in 2018.
This case is the result of Organized Crime Drug Enforcement Task Force (OCDETF) operation which has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 27 kilograms of cocaine, 3.5 kilograms of heroin, 29 kilograms of fentanyl, 49 kilograms of methamphetamine, 70 firearms, more than $385,000 in cash, and over $800,000 in other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, CMPD, the Huntersville Police Department, and the Gastonia Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Bowling Green Drug Trafficker Sentenced to 16 Years and 8 Months in Federal PrisonRead the Press Release
Bowling Green, KY – A Bowling Green man was sentenced today to 16 years and 8 months in prison for conspiracy to possess with intent to distribute methamphetamine and other drug trafficking related offenses.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Special Agent in Charge R. Shawn Morrow of the ATF Louisville Field Division, Task Force Director Tommy Loving of the Bowling Green/Warren County Drug Task Force, and Commissioner Phillip Burnett, Jr. of the Kentucky State Police made the announcement.
According to court documents, from October 1, 2019, to November 18, 2020, Dimitri Hill, 30, conspired to possess with intent to distribute over 4.5 kilograms of methamphetamine. Hill was also charged with aiding and abetting the possession with intent to distribute methamphetamine. These charges include aiding and abetting the possession of 107.98 grams of methamphetamine on March 10, 2020, 1,205.64 grams of methamphetamine on October 13, 2020, and 11.57 grams of methamphetamine on March 17, 2020. Hill, a convicted felon, also knowingly possessed a Ruger LC9S, nine-millimeter semiautomatic pistol, on August 19, 2019. Hill had previously been convicted of second-degree robbery and second-degree burglary on or about March 16, 2012, in Warren Circuit Court under case number 11-CR-00655-02.
Hill was also sentenced to 5 years of supervised release upon completion of his term of imprisonment. There is no parole in the federal system.
“This case resulted from the outstanding work and combined efforts of our local, state, and federal law enforcement agencies,” said Michael A. Bennett, U.S. Attorney for the Western District of Kentucky. “The citizens of the Western District are fortunate to have the dedicated professionals of the Bowling Green/Warren County Drug Task Force, Kentucky State Police, and ATF on duty every day, working tirelessly, to keep our communities safe from the scourge of illegal drug activity and the violent crime which accompanies it.”
“Too many families have endured pain and suffering resulting from the drug epidemic,” said Special Agent in Charge Shawn Morrow of the Louisville Division. “Often, the drug problem we see in our region directly contributes to violence on our streets. As this case shows, ATF is committed to working with our partners to pursue armed drug dealers who use guns and violence to harm our communities. I commend the Warren County Drug Task Force, Kentucky State Police, ATF’s Bowling Green Field Office, and the prosecution team for their hard work in bringing this offender to justice.”
The ATF, the Bowling Green/Warren County Drug Task Force, and the Kentucky State Police investigated the case.
Assistant U.S. Attorney Mark J. Yurchisin II of the U.S. Attorney’s Bowling Green Branch Office prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Beech Grove Arsonist Sentenced to 8 Years in Federal Prison for Amtrak and Greenwood Apartment Building Fires Causing over $1 Million in DamageRead the Press Release
INDIANAPOLIS – Casey Sage, 35, of Beech Grove, Indiana, was sentenced to eight years in federal prison after pleading guilty to arson of a federal property and arson of property of an organization receiving federal financial assistance.
According to court documents, on May 1, 2021, Sage, without permission, entered the Amtrak facility located at 202 Garstang Street in Beech Grove. Amtrak, a federally owned corporation, uses that facility for repair and servicing of locomotives and passenger rail cars. A little after midnight, Sage ignited a railroad flare and threw it into a building used to store acetone, paint, denatured alcohol, varnish, spray paint, degreaser, engine starting fluid, and paint remover. This quickly started a fire, which spread to another building close by that was also used to store flammable material. Both buildings were destroyed because of the fire. In total, Sage caused more than $1.1 million in damages to the Amtrak facility.
Investigators also discovered that, a few weeks before the Amtrak fire, Sage entered his ex-girlfriend’s apartment in Greenwood, Indiana, at an apartment complex receiving Section 8 funding through the Department of Housing and Urban Development. Sage intentionally started a fire in the master bedroom of the apartment. The fire eventually spread to most of the apartment before it was successfully extinguished. This arson caused more than $100,000 in damages to the apartment building and approximately $10,000 in property loss to the apartment tenant.
“The arsons committed by the defendant were an outrageous course of conduct that endangered apartment complex residents and emergency personnel,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “I appreciate the hard work of investigators and prosecutors who came together across agencies to identify and vigorously prosecute the defendant, and the first responders who risk themselves to keep the public safe. The serious sentence imposed today demonstrates that those who commit arsons with utter disregard for the lives and safety of the public will be held accountable.”
“Today’s sentencing brings a successful end to a fast-paced, complex, and highly collaborative investigation that brought several agencies together with a common goal of safeguarding the community by taking a dangerous criminal off the streets,” said Basil Demczak, Special Agent in Charge of the Amtrak Office of Inspector General Central Field Office. “We not only appreciate the dedication of the U.S. Attorney’s Office and all of the agencies involved, but we are grateful for the support of members of the Beech Grove community in helping our team solve this crime.”
“The defendant risked the lives and safety of numerous people, at both the Amtrak facility and at a public housing development, in addition to causing over a million dollars in damages to federal and personal property,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our local, state, and federal partners to ensure that individuals who use violence to endanger our community pay the price for those actions.”
“After the Beech Grove Fire Department successfully extinguished the arson fire, our department worked with local, state and federal authorities to develop evidence to lead to this guilty plea,” said Amtrak Police Chief Sam Dotson. “Our Heavy Maintenance Facility employs almost 500 Amtrak employees and is a critical element to our national network, so protecting it and assisting in prosecution of those who would damage it is an important part of the department’s mission.”
The cases were investigated by the Amtrak Office of the Inspector General, Amtrak Police, Beech Grove Police Department, Greenwood Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Homeland Security Investigation, and the FBI Joint Terrorism Task Force. The sentence was imposed by U.S. District Judge James Patrick Hanlon. As part of the sentence, Judge Hanlon ordered that Sage 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. Attorneys William McCoskey and Adam Eakman who prosecuted this case.
Army National Guardsman ordered to prison for trafficking cocaineRead the Press Release
BROWNSVILLE, Texas – A 28-year-old Austin resident and active duty Army National Guardsman has been sent to prison for possession with intent to distribute kilogram quantities of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Jonathan Zarazua pleaded guilty Jan. 13.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Zarazua to serve 50 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted Zarazua was responsible for trafficking numerous loads of illegal narcotics.
On Sept. 11, 2021, Jonathan Zarazua attempted to enter the United States through the Brownsville and Matamoros Bridge in Brownsville. He claimed he was returning after visiting his father in Mexico. At secondary inspection, an x-ray scan of his vehicle revealed anomalies and officers ultimately discovered 6.62 kilograms of cocaine hidden in a false compartment under the center console.
At the time of his arrest, Zarazua was an active duty Army National Guardsman employed as a Petroleum Supply Specialist. He also served on active duty with the United States Army from 2016 to 2020.
Zarazua admitted to smuggling the cocaine for individuals in Mexico and to having smuggled drugs into the United States on at least 30 other occasions. He further admitted he was specifically recruited because he could use his military status to facilitate crossing the border with illegal narcotics.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Edgardo J. Rodriguez prosecuted the case.
21-Year-Old Man Pleads Guilty to Assaulting a Customs and Border Protection OfficerRead the Press Release
TUCSON, Ariz. – Cesar Alejandro Avendano-Soto, 21, of Mexico, pleaded guilty to one count of Assault on a Federal Officer Resulting in Bodily Injury on September 16, 2022. Sentencing is scheduled for January 6, 2023, before United States District Judge Scott H. Rash.
On March 24, 2020, at the DeConcini Port of Entry, Avendano-Soto struggled with a U.S. Customs and Border Protection officer. During the struggle, Avendano-Soto intentionally threw the officer to the ground resulting in physical injury to the officer.
A conviction for assault on a federal officer resulting in bodily injury carries a maximum penalty of 20 years in prison, a fine of up to $250,000, or both.
Homeland Security Investigations conducted the investigation in this case. Assistant U.S. Attorney Sarah B. Houston, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR21-01527-TUC-SHR(DTF)
RELEASE NUMBER: 2022-158_Avendano-Soto# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Monday 19 September 2022
“The Breadman” sentenced for trafficking narcoticsRead the Press Release
HOUSTON – A 43 year-old Houston rapper has been ordered to federal prison following his conviction of conspiracy to distribute and distributing meth, cocaine and opioids, announced U.S. Attorney B. Lowery.
Jermaine West aka The Breadman pleaded guilty April 6 to 10 counts of drug trafficking in the Houston area.
Today, U.S. District Judge George Hanks ordered West to serve 280 months in federal prison to be immediately followed by six years of supervised release. At the hearing, the court heard additional argument that West had engaged in gang activity beyond his drug trafficking. In handing down the sentence, Judge Hanks noted that West “destroyed people’s lives.” The court further noted that “for 20 years [West] played a dangerous game,” and that he had “played the game and lost.”
West was part of the Hood Kat Music Group rap studio based in southeast Houston.
The investigation began in 2019 when law enforcement learned West was trafficking narcotics. The information regarding drug trafficking as well as West’s known position as an influential gang member in southeast Houston triggered the multi-agency investigation.
West has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI and Drug Enforcement Administration conducted the investigation with assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Houston Police Department.
The plea is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation dubbed Operation Bullet Trap. OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States. It uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorney Jason Corley and Department of Justice Trial Attorney Devon Helfmeyer prosecuted the case.
Willowbrook Man Pleads Guilty to Bank Robbery Spree He Committed While on Supervised Release for Prior Bank Robbery ConvictionRead the Press Release
LOS ANGELES – A Willowbrook man pleaded guilty today to federal criminal charges for robbing three banks during a six-day crime spree while he was on supervised release for bank robbery convictions over a decade ago.
Rickey Lewis, 53, pleaded guilty to three counts of bank robbery and one count of attempted bank robbery.
According to his plea agreement, from January 22 to January 28, 2019, Lewis stole a total of $4,035 in cash by robbing two JPMorgan Chase bank branches in Gardena and an International City Bank branch in Long Beach. Lewis also attempted to rob a Bank of America branch in Downey.
During the robberies, Lewis threatened to shoot bank tellers – though it was not apparent that he was carrying a firearm – and he had clear tape on his fingers. In fear for their lives, the bank tellers handed over the cash.
According to an affidavit filed with a criminal complaint in this case, law enforcement recovered a partial palm print recovered from the Long Beach bank robbery that matched Lewis’ palm print.
While he committed the January 2019 bank robbery spree, Lewis was on supervised release for bank robbery convictions he sustained after he pleaded guilty in February 2006 to a month-long spree in which he robbed six banks in South Los Angeles and Inglewood.
United States District Judge Christina A. Snyder scheduled a January 23, 2023 sentencing hearing, at which time he will face a statutory maximum sentence of 20 years in federal prison for each count.
The FBI investigated this matter with the assistance of the Long Beach Police Department, the Downey Police Department, the Gardena Police Department, and the Los Angeles County Sheriff’s Department.
Assistant United States Attorneys Patrick Castañeda of the International Narcotics, Money Laundering, and Racketeering Section and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.
Vista Man Sentenced to Almost Five Years in Prison for Fraudulently Obtaining More than $300,000 in Benefits Related to Coronavirus PandemicRead the Press Release
NEWS RELEASE SUMMARY—September 19, 2022SAN DIEGO—Darris Cotton of Vista was sentenced in federal court today to 57 months in custody for submitting false applications for unemployment benefits to California’s Employment Development Department (EDD).
As early as July and August of 2020, Cotton submitted at least sixteen fraudulent applications for unemployment using other people’s names, dates of birth, and social security numbers.
The United States Department of Labor funds unemployment benefits, but the administration of the benefits is overseen by EDD. To qualify for benefits, an individual must submit an application with his or her name, date of birth, social security number, and other personal information. If the information is approved, EDD sends a debit card to the address provided in the application via U.S. Mail. In March 2020, the United States Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which included an economic relief package of more than $2 trillion designed to help the American people during the public health and economic crises that resulted from the COVID-19 pandemic. The CARES Act expanded the population of persons eligible for benefits, the time period during which persons are eligible for benefits, and/or the amount of benefits.
In this case, Cotton used a relative’s address to submit the fraudulent applications. Once Cotton received the debit cards in the mail from EDD, he used the debit cards to purchase postal money orders and to purchase luxury items such as Gucci backpacks. Cotton admitted that his criminal conduct caused a loss of $312,640 and that he submitted additional fraudulent applications for benefits in other states such as Arizona, Maryland, and Pennsylvania. Law enforcement seized $112,539 in currency and money orders from Cotton during the investigation and he agreed to forfeit that money as proceeds of his fraud.
“This defendant exploited an unemployment insurance program that was intended to be a safety net for workers who suffered financial hardship during a global pandemic,” said U.S. Attorney Randy Grossman. “Crimes like this took money away from those who truly needed it.” Grossman thanked the prosecution team and the investigating agencies for their excellent work on this case.
“This sentencing sends a strong message that CARES Act fraud will be punished to the fullest extent by federal law enforcement,” said Special Agent in Charge Jason Reynolds, San Diego Field Office, U.S. Secret Service. “This has been the culmination of hard work by numerous law enforcement agencies in the San Diego area working together, and we are committed to continuing our efforts and pursuing justice, putting an end to more fraudsters and criminal networks.”
“Homeland Security Investigations is committed to investigating all criminal organizations and individuals who commit financial fraud, and seek to exploit and profit from government programs that were created to benefit the American people,” said HSI San Diego Special Agent in Charge Chad Plantz. “This sentencing affirms HSI’s, and the government’s commitment to bringing these individuals to justice.”
DEFENDANT Case Number 21cr1108-TWRDarris Cotton
SUMMARY OF CHARGESConspiracy to Commit Mail Fraud—Title 18, U.S.C., Section 1349 Criminal Forfeiture—Title 18, U.S.C., Section 981
Maximum penalty: Twenty years in prison; $250,000 fine or twice the gross gain or loss from the offense, whichever is greater; criminal forfeiture of all proceeds derived from the offense.
AGENCYUnited States Secret Service Homeland Security Investigations
Department of Labor Office of Inspector General (OIG) San Diego Police Department
Carlsbad Police Department
Vallejo Man Pleads Guilty to Possessing Methamphetamine with Intent to DistributeRead the Press Release
SACRAMENTO, Calif. — Christopher Matthew Rougeau, 38, of Vallejo, pleaded guilty today to possessing methamphetamine with intent to distribute, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 20, 2022, law enforcement officers found Rougeau in his car and searched him pursuant to a search warrant. They found a pistol in a holster on his hip. On the passenger seat, officers found 159 grams of methamphetamine, which was 94% pure, and a digital scale. In the backseat, officers found another pistol. Rougeau has been previously convicted in California state court of multiple firearm and drug offenses.
This case is the product of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Marin County Sheriff’s Office. Assistant U.S. Attorney Nicholas M. Fogg is prosecuting the case.
Rougeau is scheduled to be sentenced on Dec. 5, 2022, by U.S. District Judge William B. Shubb. Rougeau faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Two North Carolina Tax Preparers Plead Guilty to $5 Million Tax ConspiracyRead the Press Release
Two North Carolina women pleaded guilty today to conspiring to defraud the United States by preparing false tax returns for clients and causing them to be filed with the IRS. Hawkins, Ricks, and their co-conspirators caused more than 1,000 false tax returns to be filed with the IRS that claimed a total of approximately $5 million in fraudulent refunds.
According to court documents and statements made in court, from approximately 2009 through 2018 Betty Hawkins, 51, and Phyllis Ricks, 63, both of Rocky Mount, conspired with others to file false tax returns for clients of the tax preparation businesses where they both worked. These returns included fictitious federal income tax withholding figures as well as other fraudulent items that generated fraudulent refunds the clients were not entitled to receive.
Hawkins and Ricks are scheduled to be sentenced on Dec. 16. Both women face a maximum penalty of five years in prison for conspiring to defraud the United States. They also face a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael F. Easley for the Eastern District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Michael Jones and Mary Frances Richardson of the Tax Division and Assistant U.S. Attorney Susan Menzer are prosecuting the case.
Two North Carolina Tax Preparers Plead Guilty to $5 Million Tax ConspiracyRead the Press Release
WASHINGTON – Two North Carolina women pleaded guilty today to conspiring to defraud the United States by preparing false tax returns for clients and causing them to be filed with the IRS. In total, Hawkins, Ricks, and their co-conspirators caused more than 1,000 false tax returns to be filed with the IRS that claimed a total of approximately $5 million in fraudulent refunds.
According to court documents and statements made in court, from approximately 2009 through 2018 Betty Hawkins, 51, and Phyllis Ricks, 63, both of Rocky Mount, conspired with others to file false tax returns for clients of the tax preparation businesses where they both worked. These returns included fictitious federal income tax withholding figures as well as other fraudulent items that generated fraudulent refunds the clients were not entitled to receive.
Hawkins and Ricks are scheduled to be sentenced on December 16, 2022. Both women face a maximum penalty of five years in prison for conspiring to defraud the United States. They also face a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael F. Easley for the Eastern District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Michael Jones and Mary Frances Richardson of the Tax Division and Assistant U.S. Attorney Susan Menzer are prosecuting the case.
Statement from Assistant Attorney General Jonathan Kanter on the District Court’s Decision in U.S. v. UnitedHealth Group and Change HealthcareRead the Press Release
Assistant Attorney General Jonathan Kanter for the Antitrust Division issued the following statement regarding the District Court’s decision in U.S. v. UnitedHealth Group and Change Healthcare.
“We respectfully disagree with the court’s decision and are reviewing the opinion closely to evaluate next steps. Protecting competition and access to affordable healthcare is of the utmost importance to the Antitrust Division and the Department of Justice. We are grateful to the Antitrust Division staff – the attorneys, economists, paralegals, and administrative professionals – who work tirelessly to uphold the value of competition.”
St. Louis Woman entenced to 45 Months Imprisonment for Theft from Metro East Charity, Identity TheftRead the Press Release
East St. Louis, Ill – Kenesha Burlison, 40, of St. Louis, Missouri, was sentenced to 45 months in
prison in connection with her theft from her former employer, an East St. Louis charity, and
aggravated identity theft.
Burlison served as the Director of Human Relations for Call for Help, Inc. from 2016 until her
termination in 2020. Call for Help is a longstanding charitable organization in East St. Louis,
Illinois, that helps people overcome a variety of personal crises, ranging from sexual assault and
poverty to homelessness and mental health issues. The organization receives federal funds annually
to assist in carrying out its mission.At the time of her guilty plea, Burlison admitted that she fraudulently obtained a cashier’s check
from Call for Help in the amount of $69,788.62, which she used to pay the down payment for a home
she was purchasing. Burlison told Call for Help that she needed a cashier’s check to provide to the
title company and claimed that she couldn’t get one from her bank because it was closed. In
exchange for the cashier’s check, Burlison provided Call for Help with a personal check in the
amount of $70,000. That check, as well as two others provided by Burlison in the coming months,
bounced for insufficient funds.Following her termination from the organization, Call for Help discovered that Burlison had also
fraudulently submitted requests for reimbursements that she was not entitled to. Burlison abused
her access to the company’s payroll system to fraudulently submit and approve mileage
reimbursements and costs for diversity and inclusion trainings that she did not attend. In all,
Burlison was paid more than $115,000 from these fraudulent reimbursements.“Kenesha Burlison’s theft from Call for Help is particularly egregious in light of the essential,
life- saving services that the organization provides to communities in Southern Illinois,” said
United States Attorney Rachelle Aud Crowe. “We are proud to have organizations like Call for Help
in our District and will continue to hold those who steal from them accountable for their actions.”“Nonprofits elect a board of directors to provide oversight regarding fiduciary, legal and ethical
responsibilities for the organization,” said FBI Springfield Field Office Special Agent in Charge
David Nanz. “In this case, Call for Help’s board of directors did exactly what they were put in
place to do.
Their oversight enabled the FBI to pursue an investigation into the criminal actions of Kenesha Burlison and prevent further harm to the organization’s reputation and financial resources. The FBI is
committed to investigating public corruption in any form and at all levels.”
Burlison was also sentenced for aggravated identity theft. In 2020, Burlison submitted an inflated
income verification as part of an application for a home mortgage. Because the verification
required a signature on behalf of Call for Help, Burlison forged the signature of the
organization’s Director of Quality Assurance. Aggravated identity theft carries a mandatory
sentence of two years in prison, which must run consecutive to any other sentence imposed.In total, Burlison was sentenced to 45 months in prison. She was also ordered to pay over $185,000
in restitution to Call for Help, a $200 special assessment, and will spend three years on
supervised release following her term of imprisonment.The investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office.
Assistant United States Attorney Zoe J. Gross prosecuted the case.Six Mongols Motorcycle Club Members Found Guilty of Racketeering Conspiracy, Including MurderRead the Press Release
A federal jury convicted six Tennessee men Friday for racketeering conspiracy and other charges involving murder, kidnapping, drug trafficking, and other crimes, all stemming from their involvement with the Clarksville chapter of the Mongols Motorcycle Club (Clarksville Mongols).
A seventh man from Kentucky, who was not a member of the Mongols, was also convicted by the same jury of participating in a drug trafficking conspiracy with the Clarksville Mongols.
A federal jury convicted James Wesley Frazier, 34; Aelix Santiago, 34; Michael Forrester, 34; Jamie Hern, 43; William Boylston, 32; and Jason Meyerholz, 48, all of Clarksville, Tennessee, for charges including racketeering conspiracy. Also convicted was Derek Leighton Stanley, 48, of Owensboro, Kentucky, for engaging in a drug trafficking conspiracy.
“The Clarksville Mongols terrorized communities in Tennessee and Kentucky for far too long,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “These convictions underscore the Justice Department’s dedication to disrupting and dismantling violent criminal enterprises.”
According to court documents and evidence presented at trial, the Clarksville Mongols were a violent motorcycle gang operating in and around the city of Clarksville. The Clarksville Mongols were a self-described “outlaw” motorcycle club with ties to Mongols chapters nationwide. Members and associates of the Clarksville Mongols engaged in a host of violent criminal activities, including murder, attempted murder, assault, kidnapping, robbery, extortion, witness tampering, money laundering, interstate travel in aid of racketeering, and large-scale drug trafficking.
In addition, the Clarksville Mongols engaged in widespread violence and, from spring 2015 to spring 2017, they distributed more than 50 pounds of nearly 100% pure methamphetamine, worth approximately $1 million, through their drug trafficking enterprise, in an effort to establish themselves as the area’s dominant motorcycle club.
Evidence at trial demonstrated that the Clarksville Mongols were responsible for the kidnapping and murder of Stephanie Bradley, as well as the separate kidnapping and murder of Stephen Cole. Prior to Bradley’s kidnapping and murder in May 2015, the Clarksville Mongols believed that she had information relating to stolen drugs, money, and guns, and had been disparaging the Clarksville Mongols. Members and associates of the Clarksville Mongols interrogated Bradley, threatening her and demanding that she should not mention the Mongols again. When the Clarksville Mongols learned that Bradley had failed to accede to their demands, she was kidnapped and murdered in the woods behind a cemetery in Bumpus Mills, Tennessee.
Then, in November 2017, Stephen Cole was kidnapped, brutally beaten, and murdered by the Clarksville Mongols. Cole, who had been a member of the Clarksville Mongols, was believed to have stolen motorcycles belonging to William Boylston, a fellow gang member. Boylston felt disrespected by Cole and was concerned about maintaining his standing and reputation among the Clarksville Mongols. Cole was kidnapped and transported to a shed in Trenton, Kentucky, where he was interrogated, tortured, and beaten for hours prior to being murdered.
“This verdict officially ends an era of drug-trafficking, violence, and intimidation inflicted on the people of Clarksville by the Clarksville Mongols,” said U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. “I commend the investigation and prosecution teams for the enormous amount of time and resources they dedicated during the past seven years to bring every member and associate of this ruthless gang to justice. We look forward to the sentencing phase and seeking lengthy and life sentences for these defendants convicted today.”
“The criminal activities and horrendous acts of violence are dangerous and damaging to everyone involved,” said Special Agent in Carge Mickey French of the ATF’s Nashville Field Division. “We will use all of ATF’s resources to disrupt the illegal possession of firearms, distribution of narcotics, and other violent crimes. We will continue to work tirelessly with our local, state, and federal partners to combat violent crime and maintain public safety within our communities.”
Those convicted were:
Name
Age
Charges
Max Penalty
James Wesley Frazier
34
Racketeering conspiracy; conspiracy to distribute methamphetamine; money laundering conspiracy; kidnapping; kidnapping in aid of racketeering; the murder of Stephanie Bradley in aid of racketeering; firearm offenses; and interstate travel in aid of racketeering.
Life in prison, with a mandatory minimum sentence of: life in prison for murder; 10 years for drug conspiracy; and up to 10 years for the firearms offense to be served consecutive to all other sentences.
Aelix Santiago
34
Racketeering conspiracy; conspiracy to distribute methamphetamine; money laundering conspiracy; firearm offenses; and kidnapping.
Life in prison, with a mandatory minimum sentence of: life in prison for murder; and 10 years for the drug and firearm offenses to be served consecutive to all other sentences.
Michael Forrester
34
Racketeering conspiracy; conspiracy to distribute methamphetamine; money laundering conspiracy; assault with a dangerous weapon in aid of racketeering; conspiracy to commit robbery affecting interstate commerce and robbery affecting interstate commerce; kidnapping; and firearm offenses.
Life in prison, and up to seven years for the firearms offense to be served consecutive to all other sentences.
Jamie Hern
43
Racketeering conspiracy; conspiracy to distribute methamphetamine; money laundering conspiracy; assault with a dangerous weapon in aid of racketeering; firearm offenses; conspiracy to tamper with a witness and witness tampering; and kidnapping.
Life in prison with a mandatory minimum sentence of 10 years for the drug offense and seven years for the firearms offense to be served consecutive to all other sentences
William Boylston
32
Racketeering conspiracy; assault with a dangerous weapon in aid of racketeering; kidnapping resulting in the death of Stephen Cole; kidnapping of Stephen Cole in aid of racketeering; and the murder of Stephen Cole in aid of racketeering.
Life in prison with a mandatory minimum sentence of life for kidnapping and murder, and seven years for the firearms offense to be served consecutive to all other sentences.
Jason Meyerholz
48
Racketeering conspiracy; assault with a dangerous weapon in aid of racketeering; kidnapping resulting in death of Stephen Cole.; kidnapping of Stephen Cole in aid of racketeering; and the murder of Stephen Cole in aid of racketeering
Life in prison with a mandatory minimum sentence of life for kidnapping and murder, and seven years for the firearms offense to be served consecutive to all other sentences.
Derek Leighton Stanley
48
Conspiracy to distribute methamphetamine; money laundering conspiracy; distribution of, or possession with intent to distribute methamphetamine; and interstate travel in aid of racketeering.
Life in prison with a mandatory minimum sentence of 10 years for the drug offenses to be served consecutive to all other sentences.
A federal district court judge will separately determine each defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Clarksville Police Department, the Tennessee Bureau of Investigation, and the Kentucky State Police investigated the case.
Trial Attorney Matthew P. Mattis of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorneys Kathryn Risinger and Chris Suedekum for the Middle District of Tennessee are prosecuting the case.
Six Members of Clarksville Mongols Motorcycle Gang Found Guilty of Racketeering Conspiracy, Including MurderRead the Press Release
NASHVILLE –A federal jury convicted six Clarksville, Tennessee, men on Friday for racketeering conspiracy and other charges involving murder, kidnapping, drug trafficking, and other crimes, all stemming from their involvement with the Clarksville chapter of the Mongols Motorcycle Club (Clarksville Mongols).
A seventh man, from Kentucky, who was not a member of the Mongols, was also convicted by the same jury of participating in a drug trafficking conspiracy with the Clarksville Mongols.
After a three-and-a-half-month trial, the jury convicted James Wesley Frazier, 34, Aelix Santiago, 34, Michael Forrester, 34, Jamie Hern, 43, William Boylston, 32, and Jason Meyerholz, 48, all of Clarksville, Tennessee, for charges including racketeering conspiracy. Also convicted was Derek Leighton Stanley, 48, of Owensboro, Kentucky, for engaging in a drug trafficking conspiracy.
“Friday’s verdict officially ends an era of drug-trafficking, violence, and intimidation inflicted on the people of Clarksville by the Clarksville Mongols,” said U.S. Attorney Wildasin. “I commend the investigation and prosecution teams for the enormous amount of time and resources they dedicated during the past seven years to bring every member and associate of this ruthless gang to justice. We look forward to the sentencing phase and seeking appropriate sentences, including life, for these defendants.”
According to court documents and evidence presented at trial, the Clarksville Mongols were a violent motorcycle gang operating in and around the City of Clarksville. The Clarksville Mongols were a self-described “outlaw” motorcycle club with ties to Mongols chapters nationwide and internationally. Members and associates of the Clarksville Mongols engaged in a host of violent criminal activities, including murder, attempted murder, assault, kidnapping, robbery, extortion, witness tampering, money laundering, interstate travel in aid of racketeering, and large-scale drug trafficking.
In addition, the Clarksville Mongols engaged in widespread violence and terrorized the Clarksville area while distributing more than 50 pounds of nearly 100% pure methamphetamine, worth approximately $1 million, through their drug trafficking enterprise, in an effort to establish themselves as the area’s dominant motorcycle club. Violent acts included the kidnapping and murder of Stephanie Bradley, as well as the separate kidnapping and murder of Stephen Cole.
Evidence showed that, prior to Bradley’s kidnapping and murder in May 2015, the Clarksville Mongols believed that she had information relating to stolen drugs, money, and guns, and had been speaking negatively to others about the Clarksville Mongols. Members and associates of the Clarksville Mongols then interrogated Bradley, warning her not to speak about the Mongols again or tell anyone about the interrogation. When the Clarksville Mongols learned that Bradley had failed to accede to their demands, she was kidnapped and driven to a cemetery in Bumpus Mills, Tennessee. Despite begging for her life, Bradley was walked into the woods behind the cemetery and shot numerous times and killed.
Then, in November 2017, Stephen Cole was kidnapped, brutally beaten, and murdered by the Clarksville Mongols. Cole, who had been a member of the Clarksville Mongols, was believed to have stolen motorcycles belonging to defendant, and fellow gang member, William Boylston. Boylston felt disrespected by Cole and was concerned about maintaining his standing and reputation among the Clarksville Mongols. Cole was kidnapped from a house in Clarksville, Tennessee, and transported by defendants Boylston and Meyerholz to a shed in Trenton, Kentucky, where they interrogated, tortured, and beat him for hours, and then murdered Cole by driving a 10-inch tent stake through his head.
Other evidence elicited at trial included allegations regarding:
Setting fire to and destroying the Sin City Motorcycle Clubhouse in Clarksville on May 17, 2015;
Conducting a home invasion in Hopkinsville, Kentucky on July 4, 2015, and pistol whipping the resident and stealing his belongings while holding the victim at knifepoint;
Assaulting two individuals at a residence in Clarksville and holding them at gunpoint while they interrogated one of the victims and searched the residence for drug proceeds on January 17, 2016; and
From Oct. 26, 2016, through on or about Nov. 9, 2016, kidnapping a woman from a hotel in Nashville, and physically assaulting her and threatening her while interrogating her about the death of a co-conspirator member of the Mongols Harbor Chapter in California.
“The Clarksville Mongols terrorized communities in Tennessee and Kentucky for far too long,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s convictions underscore the Justice Department’s dedication to disrupting and dismantling violent criminal enterprises.”
“The criminal activities and horrendous acts of violence are dangerous and damaging to everyone involved,” said Special Agent in Charge Mickey French of the ATF’s Nashville Field Division. “We will use all of ATF’s resources to disrupt the illegal possession of firearms, distribution of narcotics, and other violent crimes. We will continue to work tirelessly with our local, state, and federal partners to combat violent crime and maintain public safety within our communities.”
The convictions are as follows:
Name
Age
Charges
Maximum Penalty
James Wesley Frazier
34
racketeering conspiracy; conspiracy to distribute methamphetamine; money laundering conspiracy; kidnapping; kidnapping in aid of racketeering; the murder of Stephanie Bradley in aid of racketeering; firearm offenses; and interstate travel in aid of racketeering.
Mandatory life in prison
Aelix Santiago
34
racketeering conspiracy; conspiracy to distribute methamphetamine; money laundering conspiracy; firearm offenses; and kidnapping.
Up to life in prison
Michael Forrester
34
racketeering conspiracy; conspiracy to distribute methamphetamine; money laundering conspiracy; conspiracy to commit robbery affecting interstate commerce and robbery affecting interstate commerce; kidnapping; and firearms offenses.
Up to life in prison
Jamie Hern
43
racketeering conspiracy; conspiracy to distribute methamphetamine; money laundering conspiracy; assault with a dangerous weapon in aid of racketeering; firearm offenses; conspiracy to tamper with a witness and witness tampering; and kidnapping.
Up to life in prison
William Boylston
32
racketeering conspiracy; assault with a dangerous weapon in aid of racketeering; kidnapping resulting in the death of Stephen Cole; kidnapping of Stephen Cole in aid of racketeering; and the murder of Stephen Cole in aid of racketeering.
Mandatory life in prison
Jason Meyerholz
48
racketeering conspiracy; assault with a dangerous weapon in aid of racketeering; kidnapping resulting in death of Stephen Cole; kidnapping of Stephen Cole in aid of racketeering; and the murder of Stephen Cole in aid of racketeering
Mandatory life in prison
Derek Leighton Stanley
48
conspiracy to distribute methamphetamine; money laundering conspiracy; distribution of, or possession with intent to distribute methamphetamine; and interstate travel in aid of racketeering.
Up to life in prison
As a result of this seven-year investigation, 21 Clarksville Mongols members and associates were charged with federal offenses. In addition to the seven defendants convicted Friday, 13 previously pleaded guilty and two, including Stephen Cole, are deceased.
Chief U.S. District Judge Waverly D. Crenshaw, Jr., will separately determine each defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), the Clarksville Police Department, the Tennessee Bureau of Investigation, and the Kentucky State Police investigated the case.
Assistant U.S. Attorneys Kathryn Risinger and Chris Suedekum for the Middle District of Tennessee and Trial Attorney Matthew P. Mattis of the Justice Department’s Organized Crime & Gang Section are prosecuting the case.
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Sherri Papini Sentenced to 18 Months in Prison for Lying to Federal Agents About Being Kidnapped and Defrauding the California Victim Compensation BoardRead the Press Release
SACRAMENTO, Calif. — Sherri Papini, 39, of Redding, was sentenced today to 18 months in prison to be followed by 36 months of supervised release for making materially false statements to FBI agents about the circumstances of her own hoax kidnapping and committing mail fraud based on her being a kidnapping victim, U.S. Attorney Phillip A. Talbert announced today.
Papini was ordered to pay $309,902 in restitution for losses incurred by the California Victim Compensation Board, the Social Security Administration, the Shasta County Sheriff’s Office, and the Federal Bureau of Investigation.
On April 12, 2022, Papini was charged in a criminal information with 34 counts of mail fraud and one count of making false statements. On April 18, 2022, Papini pleaded guilty to a single count of mail fraud and one count of making false statements.
According to the criminal complaint and Papini’s plea agreement, on Nov. 2, 2016, Papini was reported missing and was believed to be kidnapped. Extensive searches were conducted for her in Shasta County, throughout California, as well as other states. Twenty-two days later, on Nov. 24, 2016, Papini reappeared with various bindings on her body and injuries, including a “brand” on her right shoulder, and claimed that she had been abducted by two Hispanic women at gunpoint, held against her will, and that she had been abused by her captors. At that point, law enforcement efforts focused on finding her abductors. For over four years, Papini repeated her false story about her kidnapping, while law enforcement continued its investigation to identify Papini’s kidnappers.
Eventually, the evidence showed that Papini’s story was a carefully planned, false story. DNA, cellphone, and car rental evidence proved she had been voluntarily staying with a former boyfriend and that she had harmed herself to support her false statements. On Aug. 13, 2020, an FBI special agent and a detective with the Shasta County Sheriff’s Office met with Papini. At the outset of the meeting, they told Papini it was a crime to lie to federal agents. Papini continued to claim she was kidnapped. Later in the interview, Papini was again warned that it was a crime to lie to federal agents and was told about the DNA and telephone evidence showing that she had been with her former boyfriend. Yet, even after this second warning and evidence, Papini continued to make false statements.
Not only did Papini lie to law enforcement, her friends, and her family, she also made false statements to the California Victim Compensation Board and the Social Security Administration in order to receive benefits as a result of her alleged “post-traumatic stress” from being abducted.
This case was the product of an investigation by the FBI and the Shasta County Sheriff’s Office with assistance from the California Department of Justice’s Bureau of Forensic Services and Bureau of Investigation, and the California Highway Patrol. Assistant U.S. Attorneys Veronica M.A. Alegría and Shelley D. Weger prosecuted the case.
San Antonio Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
SAN ANTONIO – Bobby Dominguez, 35, of San Antonio was sentenced today by U.S. District Judge David A. Ezra to 30 years in prison for production of child sexual abuse material. According to court documents, Dominguez produced images of a six-year-old child performing sexual acts and sent those images over the internet.
On November 19, 2020, Dominguez pleaded guilty to one count of production of child pornography. He has been in federal custody since his arrest on December 27, 2018.
“Judge Ezra sentenced Dominguez to the statutory maximum sentence in this case, 30 years without parole” said U.S. Attorney Ashley C. Hoff. “The judge’s comments on how life-altering Dominguez’s callous actions are for the young victim are true. I am thankful this predator is behind bars and the healing process can begin for this child.”
“The FBI is committed to protecting children from sexual abuse and exploitation,” said FBI San Antonio Special Agent in Charge Oliver E. Rich Jr. “This is a horrific crime and we will do everything in our power to hold perpetrators accountable for these heinous acts. Thanks to the hard work of our law enforcement partners and the FBI Child Exploitation Task Force, this individual is now off the streets.”
The FBI investigated the case.
Assistant U.S. Attorney Tracy Thompson 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 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 www.justice.gov/psc.
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Oshkosh Sex Offender Sentenced to Ten Years in Federal Prison for Distribution of Child PornographyRead the Press Release
United States Attorney Richard G. Frohling announced that on September 16, 2022, Matheau P. Martinez (age: 38) of Oshkosh, Wisconsin, was sentenced to 120 months in federal prison by Senior District Judge William C. Griesbach.
Between March and May of 2022, the Winnebago County Sheriff’s Office and the Milwaukee Office of the FBI investigated the receipt and distribution of child pornography via BitTorrent file sharing networks. That investigation led to the arrest of Martinez for possessing and distributing images and videos of child pornography. At the time of his arrest, Martinez was a registrant with the Wisconsin Sex Offender Registry Program based on a 2014 conviction for causing mental harm to a child.
At sentencing, Judge Griesbach noted the serious nature of the charge, the effect such crimes have on their victims, and the need for just punishment. Following his release from prison, Martinez will spend the remainder of his life on supervised release. He will continue to be required to register as a sexual offender.
This case was investigated by the Winnebago County Sheriff’s Office and the Milwaukee office of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
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 U.S. Department of Justice. 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.projectsafechildhood.gov.
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Oregon Man Pleads Guilty to Federal Charges After Twice Breaking Windows and Destroying Property at a Planned Parenthood ClinicRead the Press Release
EUGENE, Ore.—An Oregon man pleaded guilty today after twice breaking windows and destroying property at a Planned Parenthood clinic in Grants Pass, Oregon because the clinic provides reproductive health services.
Devin Friedrick Kruse, 27, pleaded guilty to two counts of violating the Freedom of Access to Clinic Entrances (FACE) Act.
“The Justice Department will not tolerate unlawful and violent conduct that interferes with the work of reproductive health clinics,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This conviction should send a strong message that we will use federal civil rights law to protect clinics and staff that provide reproductive health services while safeguarding the rights of their patients.”
“The First Amendment does not allow individuals to violate the civils rights of others. In this case, Mr. Kruse’s destructive and intimidating acts prevented women from accessing vital reproductive and pregnancy health services,” said Natalie Wight, U.S. Attorney for the District of Oregon.
“Citizens have a legal right to peacefully protest, but Mr. Kruse’s actions of repeated violence toward a Planned Parenthood clinic crossed a line,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “The FBI will continue to work with our federal, state, and local law enforcement partners to ensure the safety of our communities while respecting individuals' First Amendment rights.”
According to court documents, on November 23, 2021, Kruse broke five security cameras, a window, and a sign at a Planned Parenthood clinic in Grants Pass. Three days later, on November 26, 2021, Kruse returned and threw a concrete block through the clinic’s window, tore down an intercom system, and broke several light bulbs. Kruse later admitted to damaging the facility because he was angry at Planned Parenthood for providing abortion services.
On February 24, 2022, Kruse was charged by misdemeanor criminal information with two counts of violating the FACE Act.
Under the FACE Act, first offenses involving property destruction are charged as misdemeanors punishable by up to one year in federal prison. Subsequent violations are charged as felony offenses.
Kruse will be sentenced on January 5, 2023, by U.S. District Court Judge Ann L. Aiken.
As part of his plea agreement, Kruse has agreed to pay restitution in full to Planned Parenthood as identified by the government prior to sentencing and ordered by the court.
This case was investigated by the FBI with assistance from the Grants Pass Police Department. It is being prosecuted by Gavin W. Bruce and John C. Brassell, Assistant U.S. Attorneys for the District of Oregon, and Cameron A. Bell, Trial Attorney for the U.S. Department of Justice’s Civil Rights Division.
In 1994, Congress passed the FACE Act in response to an increase in violence toward patients and providers of reproductive health services. The FACE Act prohibits violent, threatening, damaging and obstructive conduct intended to injure, intimidate, or interfere with an individual’s right to seek, obtain, or provide reproductive health services.
If you or someone you know is in danger, please call 911.
Suspected violations of the FACE Act can be reported to the FBI by calling (503) 224-4181 or by visiting tips.fbi.gov.