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Thursday 15 September 2022
San Mateo-Based Driving School Instructor Charged with Coercion and Enticement to Produce Child PornographyRead the Press Release
SAN FRANCISCO – San Mateo-based driving instructor Johnnatan Zelaya Izaguirre (Zelaya) appeared in federal court to face charges that he coerced and enticed minor teenaged girls to produce child pornography and related offenses, announced U.S. Attorney Stephanie M. Hinds and FBI Special Agent in Charge Sean Ragan. Chief U.S. Magistrate Judge Joseph C. Spero presided over yesterday’s proceedings at the conclusion of which the magistrate judge ordered Zelaya to be detained pending further proceedings.
A federal grand jury handed down an indictment on September 1, 2022, charging Zelaya, 39, of Redwood City with the crimes. According to the indictment, Zelaya used social media to entice and coerce minor teenaged girls to produce child pornography for his personal use and for sale. The indictment alleges Zelaya offered to manage the minor victims’ sale of their sexually explicit content, offered monetary rewards for selling the victim’ content, and bought the victims sex toys to use in videos they were encouraged to create.
Additional details of the alleged scheme are set out in documents filed by the government in the federal court proceedings. According to government’s filings, Zelaya is both a graduate of a local police academy and the owner and operator of a driving school in San Mateo County. The government alleged that Zelaya used his “position of authority and the powers of social media” to prey on teenage girls. Specifically, Zelaya allegedly used social media to identify underage girls, ranging from ages 14 to 17—three of which are identified by their initials in the indictment—to entice and coerce them to produce child pornography. Further, the government alleges Zelaya persuaded his teenage victims, some of whom were his students, to create child pornography in part by falsely claiming he was in law enforcement; the government alleges that although Zelaya graduated from a police academy, he never joined a police department. In addition, the government’s papers describe how Zelaya groomed his victims at times by complimenting their appearance, developing sexualized friendships with them, offering to manage their explicit content online, and offering them financial rewards for the creation of explicit content. Zelaya allegedly provided a victim a list of the amounts of money she could earn by producing videos depending upon whether the content included nude vs. non-nude videos, videos of masturbation, or videos of “toy play.” On one occasion, Zelaya allegedly threatened to leak explicit content to everyone his victim knew if she stopped creating content for him.
Zelaya was arrested on January 4, 2022, after communicating with an undercover police officer he thought was 17 years old. The government’s court filings describe multiple communications between the undercover officer, who had posed as a driving student, and Zelaya that included highly sexualized conversations with instructions on how to masturbate, discussions of future interactions in which he would orally copulate and have sexual intercourse with her, and a request to have the officer perform a photo shoot with him. The conversations culminated with Zelaya’s arrest on January 4, 2022, during a planned meet-up with the undercover agent.
Zelaya is charged with two counts of coercion and enticement of a minor, in violation of 18 U.S.C. § 2422(b); one count of receipt of child pornography, in violation of 18 U.S.C. § 2252(a)(2); and one count of possession of child pornography, in violation of 18 U.S.C. § 2252(a)(4)(B) and (b)(2).
Zelaya is next scheduled to appear on October 6, 2022, before United States District Court Judge William H. Orrick for an initial appearance before a district judge.
The charges contained in the criminal indictment are only allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by Assistant United States Attorney Lauren Harding with assistance from Patricia Mahoney and Amala James. The prosecution is the result of an investigation by the FBI, the Redwood City Police Department, the Atherton Police Department, the Burlingame Police Department, and the California Department of Motor Vehicles Investigations Division.
Anyone with information should contact the FBI at 415-553-7400.
San Antonio Man Sentenced to over 15 Years in Prison for Distribution of Child Sexual Abuse MaterialRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced last week to 190 months in prison for distribution of child sexual abuse material.
According to court documents, on July 30, 2020, a federal search warrant was executed on the residence of Juan Rafael Benavidez, 64. Benavidez’s cellphone was seized and after forensic analysis, approximately 37,657 images and four videos of child sexual abuse material were found.
On January 13, 2022, Benavidez pleaded guilty to one count of distribution of child pornography. Benavidez has remained in federal custody since his arrest on July 30, 2020.
“Predators do not care about the damage they do to the innocent victims of these reprehensible crimes,” said U.S. Attorney Ashley C. Hoff. “Holding these offenders accountable for the harm they cause and protecting our communities is a top priority for our office. I am proud of the work we do, and the work of our law enforcement partners to combat these crimes.”
“The FBI will continue to work tirelessly with all our law enforcement partners to protect vulnerable children from abuse and exploitation,” said Oliver E. Rich Jr., Special Agent in Charge, FBI San Antonio. “Juan Benavides will now be held accountable for his heinous crimes and will spend the next 15 years of his life in prison.”
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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Rupert Man Convicted of Unlawful Possession of a FirearmRead the Press Release
POCATELLO – Ryan Arthur Burton, 43, of Rupert was sentenced to 13 months in federal prison for unlawful possession of a firearm, U.S. Attorney Josh Hurwit announced today.
According to court records, Burton was arrested April 10, 2021, after deputies with the Cassia County Sheriff's Office responded to a report of a possible domestic violence incident in the City of Burley. Deputies contacted the Defendant and found that he was in possession of a loaded firearm. Defendant was prohibited from possessing firearms due to a prior felony conviction. Defendant was originally indicted by a federal grand jury in June of 2021. Defendant entered a guilty plea on May 5, 2022.
Burton was sentenced by the Honorable B. Lynn Winmill, District Court Judge, to federal prison on September 14, 2022 and was ordered to complete three years of supervised release after his prison sentence is finished.
U.S. Attorney Hurwit, of the District of Idaho made the announcement and commended the cooperative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Cassia County Sheriff's Office, which led to charges.
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.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 199 defendants have been indicted by the EIP SAUSA. Of these defendants, 26 have been indicted for unlawful possession of a firearm. The defendants indicted under the program have been sentenced to 8,650 months (approximately 721 years) in federal prison, representing an average prison sentence of 53.7 months (4.47 years). Defendants indicted for unlawfully possessing a firearm serve, on average, approximately 40.7 months (3.4 years) in federal prison.
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Round Rock Man Arrested for Traveling to Republic of Colombia to Have Sex with MinorsRead the Press Release
AUSTIN – A Round Rock man was arrested today in Round Rock on criminal charges related to his alleged involvement in engaging in illicit sexual conduct in a foreign place.
According to court documents, Michael Roberts, 40, traveled from the United States to the Republic of Colombia to engage in illegal sexual conduct with minors.
Roberts is charged by a federal indictment with three counts of engaging in illicit sexual conduct in a foreign place. If convicted, Roberts faces up to 30 years in prison on each of the three counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and Homeland Security Investigations (HSI) Acting Special Agent in Charge Craig Larrabee, San Antonio Division, made the announcement.
HSI is investigating the case. HSI would like to acknowledge and thank the Government of Colombia and the Colombian National Police for their cooperation with HSI’s investigation. If you have any information on this case, you can contact the Department of Homeland Security (DHS) Tip Line at 866-347-2423.
Assistant U.S. Attorney Keith M. Henneke is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Ri komon rech Q’atb’altzij ke’opan pa jun chomanik ruk’ ri tijob’al rech Massachusetts are che qas junam kab’an chech kilik ri tijoxelab’, xuquje’ ri kech’aw pa ri k’iche’ tzijRead the Press Release
Play audio in K'iche' below:
Audio file Translation in K'iche'Ri komon rech Taqanem kamik xuya ub’ixik che kab’an jun tzijonem kuk’ taq ri tijob’al rech New Bedford, jawije’ kach’ob’ ri usolik uxe’ ub’anom ri Wokaj rech ri tijob’al jawije’ xb’an wi tzijonem kuk’ ri e tat nan xuquje’ chajinelab’ che man qas ta kekowinik ketzijon pa ri inglés, xuquje’ kuk’ taq ri winaq kech’aw pa ri k’iche’ tzij, che are’ jun ch’ab’al kech aj mayab’ winaq.
Chi’l nik’aj chik, ri Wokaj kukoj nik’aj taq taqanik qas utz chech rilik taq ri ch’ab’al kech’aw wi ri tijoxelab’, xuquje’ ri ch’ab’al kech’aw ri kitat kinan on chajinelab’, are che ri ajchakib’ rech ri tijob’al man xaq ta ke’kit’uyub’a apan ri tijoxelab’ ri kech’aw pa k’iche’ tzij xane rajawaxik ke’ilixik pacha’ ri nik’aj chi ajwaralik winaq, are tzij ri tinamit e petinaq wi. Xuquje’, ri Wokaj uya’om ub’ixik che kub’an ub’anik ri tijonem xuquje’ ri eta’manem kuk’ ri ajsaqwachom chech rilik taq ri kirajawaxik ri tijoxelab’ kech’aw pa k’iche’ tzij xuquje’ ktajin kketa’maj inglés are che kekowinik ke’ok pa taq ri pataninem rech tijonem pacha’ ya’om chi kech e nik’aj chi tijoxelab’ rech ri Wokaj.
«Tijoxelab’ xuquje’ achalaxik chi e petinaq pa taq komon kech aj waralik winaq sib’alaj k’o taq k’axk’olil kakiriqo are taq kkaj ke’ok pa nik’aj taq pataninem rech tijob’al. We k’amuq’ab’ pa junamam kuya’ q’alb’al k’u’xaj chech ri Wokaj karilo xuquje’ kareta’maj kirajawaxik ri tijoxelab’ kech’aw pa ri k’iche’ tzij xuquje’ chi kech ri e tat nan kek’oji’ pa ri tijonem kech ri kalk’u’al », xusuk’ub’a’ ub’ixik ri Kristen Clarke, ri Fiscal General Auxiliar rech ri wokaj rech taq Ya’talil kech Winaq rech ri Wokaj rech Q’atb’altzij. «Ri Wokaj rech Ya’talil kech Winaq qas kuchajij kiya’talil chi kijujunal ri ak’alab’ are che man ke’tzelax taj xuquje’ kek’oji’ pa ri tijob’al ».
Ri k’amuq’ab’ are’ uwachinem ri usolik uxe’ ub’anom ri Wokaj rech To’b’al tzij rech ri Taqanel tzij rech Uya’ik Junamalil Tijonem rech ri junab’ 1974 che xmajix pa ri junab’ 2020. Ri Wokaj xuya utob’anik pa ri usolik uxe’ b’anom xuquje’ xuya q’alb’al k’u’xaj che kub’an ub’anik taq ri tijonem kaya’ik ruk’ jun upajik rij taq ri b’anoj. Pa jun chik, Ri Wokaj rech Q’atb’altzij karilo we qas tzij kab’an ri chomatal pa ri riqoj ib’ rumal ri Wokaj ruk’ oxib’ junab’ chech rilik we qas tzij kub’ano ri uya’om ub’ixik.
Ri ukojik ri taqanik rech ri Uya’ik Junamalil Tijonem rech ri junab’ 1974 are wa’ jun chech ri kaya uq’ij pa ri Wokaj rech Ya’talil kech Winaq rech ri Wokaj rech Q’atb’altzij. Chech uriqik nik’aj usaqil tzij chi rij ri Wokaj rech Ya’talil kech Winaq, chawila’ ri wokk’olib’al web’ pa www.justice.gov/crt-espanol.
Rhode Island Man Pleads Guilty to Role in Violent KidnappingRead the Press Release
BOSTON – A Pawtucket, Rhode Island man pleaded guilty yesterday in federal court in Boston to charges related to a violent kidnapping tied to a Cape Cod heroin trafficking ring.
Albert Lee, also known as “Mook,” 32, pleaded guilty to one count of conspiracy to commit kidnapping. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Dec. 14, 2022. Lee was charged along with four co-conspirators in March 2020.
This case arose from an investigation into a wide-ranging heroin trafficking conspiracy in the Cape Cod area. According to court documents, in April 2019, Lee and his co-conspirators lured a known victim from Massachusetts to Rhode Island, where they kidnapped and held him, stripped him naked, assaulted and threatened to rape him, and then took his clothing and cellular telephone. The purpose of this kidnapping and assault was to retaliate against the victim because Lee and allegedly his co-conspirators erroneously believed the victim was cooperating with law enforcement. A video of the kidnapping and assault was filmed and maintained by Lee’s co-conspirators.
The charge of conspiracy to commit kidnapping provides for a sentence of up to life in prison, up to five years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
On Aug. 11, 2022, one of Lee’s co-conspirators, Anthony Basilici, pleaded guilty to his role in the violent kidnapping as well as drug trafficking, witness retaliation and intimidation charges. Three remaining defendants – Cameron Cartier, Edwin Otero, Justin Joseph and Tony Johnson – have pleaded not guilty and are presumed innocent.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Barnstable Police Chief Matthew K. Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Rollins’ Criminal Division are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Queens Man Sentenced to Prison and to Pay $842,000 Restitution for Foreign Exchange Fraud and Money LaunderingRead the Press Release
Earlier today, in federal court in Brooklyn, John Won was sentenced by United States District Judge Raymond J. Dearie to a year and a day in prison following his November 2021 conviction at trial on all counts, including securities fraud, wire fraud and money laundering conspiracy, as well as substantive securities fraud. Won was also ordered to pay $842,076.81 in restitution to the victims of his crimes. Won’s do-defendant Tae Hung (Kevin) Kang pleaded guilty to securities fraud conspiracy and was sentenced to two years’ imprisonment in December 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“John Won and Kevin Kang shamelessly defrauded members of the Korean-American community in our district out of their nest eggs and life savings,” said United States Attorney Peace. “This sentence shows what fraudsters and con men should expect when they target innocent victims—they will be caught, punished and ordered to return their ill-gotten gains.”
Mr. Peace thanked the United States Commodities and Futures Trading Commission (CFTC) and National Futures Association (NFA) for their significant cooperation and assistance in this case.
Between October 2010 and December 2013, Won conspired with co-defendant Tae Hung Kang and others in a scheme to defraud victims, who were largely members of New York’s Korean-American community, into investing in foreign exchange trading accounts and in their company, called ForexNPower. In furtherance of this scheme, the conspirators issued advertisements in Korean-language newspapers and on Korean-language radio stations claiming that ForexNPower had a secret algorithmic trading method used to trade in the foreign exchange market that guaranteed investors 10% monthly returns at no risk of loss. In reality, ForexNPower had no successful trading method and their customer accounts suffered substantial losses.
The conspirators also induced investors to purchase stock issued by ForexNPower, by falsely claiming that the invested funds would be used to expand the business to a new location in New Jersey or pooled and used to trade foreign currencies. In truth, the defendant and his co-conspirators misappropriated a substantial portion of the funds, spending the remainder on, among other things, the fraudulent advertisements described above.
In July 2022, Mr. Peace was selected as the Chairperson of the White Collar Fraud subcommittee for the Attorney General’s Advisory Committee (AGAC). As the leader of the subcommittee, Mr. Peace will play a key role in making recommendations to the AGAC to facilitate the prevention, investigation and prosecution of various financially motivated, non-violent crimes including mail and wire fraud, bank fraud, health care fraud, tax fraud, securities and commodities fraud, and identity theft.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Sarah M. Evans, Nicholas J. Moscow and Assistant Chief Gerald M. Moody, Jr. of the Department of Justice’s Fraud Section are in charge of the prosecution.
The Defendants:
JOHN WON
Age: 53
Whitestone, New YorkTAE HUNG KANG (also known as Kevin Kang)
Age: 57
Bayside, New YorkE.D.N.Y. Docket No. 18-CR-184 (RJD)
Purvis Man Sentenced to over 12 Years in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Purvis man was sentenced to 151 months in federal prison for possession with intent to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
According to court documents, on or about January 10, 2020, Arsenio Tatum, 31, of Purvis, Mississippi, sold approximately a pound of methamphetamine at a residence located in Hattiesburg, Mississippi.
In addition to the prison sentence, Tatum was ordered to pay a $5,000 fine.
The case is the result of an extensive investigation, dubbed “Don’t Tell On Me Bro,” which began as an operation targeting illegal drug trafficking in the Hattiesburg, Mississippi area. “Don’t Tell On Me Bro” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, Lamar County Sheriff’s Office, Forrest County Sheriff’s Office, Hattiesburg Police Department, Columbia Police Department and Marion County Sheriff’s Department. The case was prosecuted by Assistant United States Attorney Keesha Middleton.
President of Sham United Nations Affiliate Sentenced to 42 Months in Prison for Cryptocurrency SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ASA SAINT CLAIR, a/k/a “Asa Williams,” a/k/a “Asa Sinclair,” was sentenced today to 42 months in prison for devising a fraudulent investment scheme in which he tricked at least 60 victims into providing loans to his organization, the World Sports Alliance, tied to a purported digital coin offering called IGObit. SAINT CLAIR falsely represented to investors that the World Sports Alliance was a close affiliate of the United Nations and that they would receive guaranteed returns on their investment, but instead diverted the investors’ funds for his personal expenses and benefit. SAINT CLAIR was found guilty of wire fraud in March 2022, following a two-week jury trial before U.S. District Court Judge P. Kevin Castel, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Asa Saint Clair deceived everyday investors by taking advantage of their desire to invest in a better world while also getting a guaranteed financial return. Saint Clair promised his victims all this and more if they invested in IGObit, a digital currency he claimed the World Sports Alliance was developing in support of its work with the UN to promote sports and peace in developing countries. These promises were false, and Saint Clair’s victims lost the entirety of their hard-earned money. Today’s sentence holds Saint Clair accountable for brazenly lying to investors while lining his own pockets.”
According to the evidence presented at trial, SAINT CLAIR solicited investors for the launch of IGObit through promised investment returns, representations that the World Sports Alliance, a purported intergovernmental organization, was a close affiliate and partner with the United Nations, and representations about the World Sport Alliance’s development projects around the world. World Sports Alliance did not in fact have any relationship with the United Nations and did not, and had not, participated in any international development projects.
SAINT CLAIR also represented to investors that their money would be used for the development of IGObit, when he in fact diverted those funds to other entities controlled by him and members of his family, as well as to pay his personal expenses, including dinners at Manhattan restaurants, travel, and online shopping.
SAINT CLAIR defrauded more than 60 victims of more than $600,000 dollars.
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SAINT CLAIR, 50, of Washington, was convicted of one count of wire fraud. In addition to the prison term, SAINT CLAIR was sentenced to three years of supervised release and ordered to pay forfeiture of $618,417 and restitution of $613,417.
Mr. Williams praised the outstanding work of Homeland Security Investigations.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Emily Deininger, Tara LaMorte, and Kiersten Fletcher are in charge of the prosecution.
Placer County Couple Sentenced for Tax-Related OffensesRead the Press Release
SACRAMENTO, Calif. — A Foresthill couple was sentenced today for tax-related offenses, and have agreed to pay over $605,000 in restitution, U.S. Attorney Phillip A. Talbert announced.
Virendra (Vic) Maharaj, 55, was sentenced to 364 days in prison for willfully failing to file tax return information with the U.S. Treasury related to his receipt of cash while engaged in trade or business. Maharaj’s wife, Rosalin R. Prasad, was sentenced to 24 months’ probation for a conspiracy to defraud the United States with respect to the Internal Revenue Service’s assessment of income taxes. They pleaded guilty on Dec. 9, 2021.
According to court documents, Prasad conspired with Maharaj to defraud the IRS in the IRS’s attempts to assess the couple’s tax obligations for the years 2005, 2006, and 2007. Maharaj worked at car dealerships in Sacramento and Woodland in those years and earned substantial income. Several actions were taken to further the conspiracy to thwart the proper assessment of income taxes. Among other things, part of Maharaj’s wages were paid directly to Prasad; part of Maharaj’s compensation was paid directly to Prasad and Maharaj’s creditors through indirect payments; Maharaj took compensation in the form of currency; Prasad improperly deferred around $270,000 in capital gains related to her purchase of a $1.9 million residence; Prasad caused false tax returns to be filed in each of those years; and Prasad made false statements during an IRS audit. Prasad conspired to underreport over $819,000 in income and, in turn, underpay over $184,000 in federal income taxes. She received substantial tax refunds in 2005, 2006, and 2007.
According to court documents, Maharaj was an owner, general manager, and salesperson of Maharaja Motors LLC, which operated a used car lot in Woodland, from approximately 2007 through 2016. In 2015, Maharaj sold a vehicle to a customer and, in turn, received a cash payment of over $10,000. Maharaj willfully failed to file information with the U.S. Treasury, specifically an IRS Form 8300, which is required to be filed by a person engaged in certain trades or businesses, including an automobile sales business, who receives a cash payment exceeding $10,000.
These cases were the product of an investigation by IRS-Criminal Investigation. Assistant U.S. Attorneys Nirav Desai and Audrey Hemesath prosecuted the cases.
Philadelphia Pharmacy Pays $200,000 to Resolve Allegations of Failing to Maintain Proper Inventory and Documentation of Its Controlled SubstancesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Northeast Discount Pharmacy will pay $200,000 to resolve allegations that it failed to comply with various record-keeping requirements for controlled substances.
Northeast Discount Pharmacy, a Philadelphia pharmacy wholly owned by pharmacist Patrick Assifuah, is a registered retail pharmacy authorized to purchase and dispense Schedule II-V controlled substances. The settlement announced today resolves allegations that between April 2018 and January 2021, Northeast Discount Pharmacy failed to maintain complete and accurate electronic records of controlled substances, and to prepare appropriate Drug Enforcement Administration forms. For example, the settlement resolves allegations that Northeast Discount Pharmacy failed to maintain appropriate inventories of controlled substances including Endocet 10/235mg (Percocet 10/325mg and Oxycodone 10/325mg), Oxycodone 5mg, Oxycodone 15 mg, and Oxycodone 30mg.
In addition to the $200,000 penalty, Northeast Discount Pharmacy is also now subject to a number of monitoring requirements, including reporting of controlled substance purchasing, dispensing, and prescribing to the Drug Enforcement Administration, as well as sharing Standard Operating Procedures pertaining to all aspects of purchasing, storing, and distributing controlled substances.
“Controlled substances, especially opioids, pose extraordinary risks to our communities in this district,” said U.S. Attorney Romero. “When pharmacies are granted the privilege of purchasing controlled substances, they also accept the significant responsibility of ensuring that controlled substances are used for a legitimate medical purpose and generating the records necessary for accountability and transparency. When this does not happen, we will work with our law enforcement partners, use all available enforcement tools, and hold these pharmacies responsible.”
“Pharmacies are entrusted with the dispensing of powerful prescription painkillers such as oxycodone and Percocet. With that responsibility comes the obligation to properly safeguard and account for these same drugs,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “Civil settlements and the monitoring requirements imposed against Northeast Discount Pharmacy help to ensure that these safeguards are met.”
This investigation was conducted by the Drug Enforcement Administration’s Philadelphia Field Division. For the United States Attorney’s Office, Assistant United States Attorney Deborah W. Frey and former Assistant United States Attorney P.J. Koob handled the investigation and settlement.
The claims resolved by the settlement are allegations only; there has been no determination of liability.
Pharmaceutical Company Akorn Agrees to Pay $7.9 Million for Allegedly Causing Medicare to Pay for Invalid Prescription DrugsRead the Press Release
Pharmaceutical company Akorn Operating Company LLC (Akorn) has agreed to pay $7.9 million to resolve allegations that it caused the submission of false claims to Medicare Part D, in violation of the False Claims Act, for three generic drugs that were no longer eligible for Medicare coverage.
FDA-approved “prescription only” (Rx-only) drugs may be dispensed only upon a prescription and are reimbursed by Medicare Part D, whereas “over the counter” (OTC) drugs may be purchased by retail customers without a prescription and are not reimbursed by Medicare Part D. Subject to FDA approval, companies may seek to fully convert a brand-name Rx-only drug to an OTC drug. After FDA’s approval of a drug’s full conversion to OTC status, the drug is no longer considered an Rx-only product and makers of generic equivalents are then required either to seek FDA approval for their own OTC switch or to seek withdrawal of their generic’s Rx-only approval and cease marketing it.
Akorn is a pharmaceutical manufacturer with a principal place of business in Illinois, which sold, among other products, the following generic drugs: (1) Diclofenac Sodium 1%, a generic nonsteroidal anti-inflammatory cream (Diclofenac), (2) Olopatadine Hydrocholoride 0.1% and 0.2%, a generic antihistamine eyedrop (Olopatadine), and (3) Azelastine Hydrochloride 0.15%, a generic antihistamine nasal spray (Azelastine) (collectively Akorn Generics) during the relevant time period. The FDA approved a full Rx-to-OTC conversion of the brand names of Diclofenac and Olopatadine in February 2020 and for Azelastine in June 2021.
The United States alleged that Akorn submitted or caused to be submitted false claims to Medicare Part D, in violation of the False Claims Act, by continuing to sell the Akorn Generics under obsolete Rx-only labeling after the brand-name drugs were converted to OTC products. As part of the settlement, Akorn admitted and accepted responsibility for the following facts:
Akorn delayed seeking the required OTC conversions for the Akorn Generics, even after learning that the brand-name drugs for each had converted to OTC status. In particular, Akorn delayed the Akorn Generics losing their Rx-only labeling because it believed that continuing to sell each as purportedly Rx-only would be more profitable for the company. Accordingly, Akorn continued to sell newly manufactured units of the Akorn Generics under their obsolete Rx-only labeling rather than beginning the process of converting these products to OTC or withdrawing their approval and ceasing their distribution. Akorn did not apply to FDA for an OTC conversion of Diclofenac until March 2021 or for Olopatadine until January 2021. Akorn eventually sought to withdraw its FDA approval for Azelastine, rather than convert it to OTC use, but did not do so until January 2022. FDA implemented this withdrawal in February 2022.
Akorn has been credited in this settlement under the Department of Justice’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases, Justice Manual §4-4.112.
The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned U.S. ex rel. Albermarle, LLC v. Akorn Operating Company LLC. (D. Mass.). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did partially in this case, The whistleblower will receive approximately $946,000 from the recovery.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
This matter is being handled by Senior Trial Counsel Augustine Ripa and Assistant U.S. Attorney Abraham George, with investigative support from the FBI. The Department of Health and Human Services Office of Inspector General assisted with this matter.
The claims resolved by the United States are allegations only and there has been no determination of liability.
Odessa Man Sentenced to over Three Years in Federal Prison for Bomb HoaxRead the Press Release
MIDLAND – An Odessa man was sentenced Tuesday to 41 months in prison for his involvement in a bomb hoax at the Ector County Courthouse.
According to court documents, on April 7, 2022, David Paul Finnegan, 37, left a suspicious device at the front steps of the Ector County Courthouse. The device consisted of a large PVC pipe containing miscellaneous objects. It was held together with black tape and had a wristwatch taped to it. The Odessa Police Department Explosives Ordinance Disposal (EOD) team was called out to examine the device. After the EOD technicians rendered it safe, they determined the device did not contain explosives.
Further investigation revealed Finnegan was scheduled to have hearings on various matters at the courthouse the day he planted the device. As a result of its discovery, the courthouse was evacuated and shut down to the public for much of the day, causing various court proceedings to be postponed, including Finnegan’s.
On June 13, 2022, Finnegan pleaded guilty to one count of perpetrating a hoax. Finnegan has remained in federal custody since his arrest on April 14, 2022.
“Not only did this bomb hoax cause the Ector County courthouse and multiple local businesses to be shut down, but the event also required federal and local law enforcement agencies to expend significant time, resources, and taxpayer dollars to render the area safe and identify the perpetrator,” said U.S. Attorney Ashley C. Hoff. “Let this prosecution send a strong message that such behavior will not be tolerated in our communities.”
“Hoax threats are dangerous to first responders and to the victims because it is not always immediately clear whether it is a hoax and the motivation behind the threat,” said Jeffrey R. Downey, Special Agent in Charge of the FBI El Paso Field Office. “Public safety is paramount, and the FBI and our state and local law enforcement partners always respond to each threat. Anyone who issues a hoax threat will be held accountable. Due to the collaborative work with our local, state and federal partners, we were able to locate Mr. Finnegan and bring him to justice for the fear he instilled into the residents of Odessa .”
The FBI, with valuable assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the Ector County Sheriff’s Office; Odessa Police Department; and the Texas Department of Public Safety, investigated the case.
Assistant U.S. Attorney John Fedock prosecuted the case.
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Ocala Convicted Felon Sentenced to More Than 5 Years in Federal Prison for Possessing A Loaded FirearmRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Ronrico Lionel Farmer (33, Ocala) to five years and four months in federal prison for possessing a firearm as a convicted felon. Farmer had pleaded guilty on June 16, 2022.
According to court documents, on April 17, 2021, a City of Ocala police officer conducted a traffic stop of a vehicle driven by Farmer. Farmer gave the officer a false name to conceal his suspended license. A subsequent search of the vehicle revealed a powdery substance (fentanyl), which Farmer referred to as “his children’s candy,” on the driver’s door and floorboard. Also on the floorboard, the officer discovered a loaded 9mm handgun with an extended magazine. The FBI conducted a DNA analysis of the recovered firearm and determined, with a likelihood ratio of 190 sextillion, that Farmer’s DNA was on the weapon. As a multi-convicted felon, Farmer is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Federal Bureau of Investigation and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
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.
Oahu Man Pleads Guilty Robbing Multiple Banks and Attempting to Rob a RestaurantRead the Press Release
HONOLULU – Micah Roman-Santos, 23, of Oahu, pleaded guilty today before U.S. Magistrate Judge Kenneth J. Mansfield to two counts of bank robbery, one count of armed bank robbery, and one count of attempted Hobbs Act robbery. Sentencing is set for January 25, 2023, before U.S. District Judge Leslie E. Kobayashi.
According to information presented in court, Roman-Santos committed a series of robberies in October 2021. On October 1, he robbed a bank in Aiea. In that robbery, he threatened to shoot the teller and stole $348. The next day, Roman-Santos attempted to rob a restaurant in Kapolei and threatened to kill the restaurant manager. When the manager refused to give him any money, Roman-Santos punched the manager and fled the restaurant. On October 4, Roman-Santos robbed a second bank in Waianae. In that robbery, Roman-Santos again threatened to shoot the teller, but also displayed what appeared to be a firearm tucked into his waistband. He stole $900 from the Waianae bank. On October 7, 2021, Roman-Santos robbed a third bank in Kapolei. During that robbery, Roman-Santos again claimed to have a gun and stole $1,100.
“Roman-Santos callously victimized multiple people and businesses, violently disrupting what should have been an ordinary workday,” said U.S. Attorney Clare E. Connors. “Protecting our community from such violence and threats of violence remains a high priority of the Department of Justice and this office.”
“The FBI is committed to protecting Hawaii from violent crimes such as this, and preventing putting innocent civilians at risk,” said FBI Special Agent in Charge Steven Merrill. “The FBI is committed to working with the Honolulu Police Department to bring this case to the federal level with stiffer penalties and no opportunity for parole.”
The charges of bank robbery and Hobbs Act robbery provide for a maximum sentence of 20 years, a fine of up to $250,000, and a term of supervised release of up to three years. The charge of armed bank robbery provides for a maximum sentence of 25 years, a fine of up to $250,000, and a term of supervised release of up to five years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This conviction is the result of a multi-agency investigation conducted by the Federal Bureau of Investigation and the Honolulu Police Department. Assistant U.S. Attorney Mohammad Khatib is prosecuting the case.
Nicholas County Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – David Keith Nutter, 55, of Summersville, was sentenced today to one year in prison, to be followed by three years of supervised release, for possession of firearms by a person previously convicted of misdemeanor crimes of domestic violence.
According to court documents and statements made in court, on July 6, 2019, a law enforcement officer executed a search warrant at Nutter’s residence and found four firearms: a Rexio, SRL, .22-caliber revolver; a Harrington and Richardson 20-gauge shotgun; a Marlin, Model 25MN, .22-caliber rifle; and an Ithaca 20-gauge shotgun. Assorted ammunition was also recovered. Nutter admitted to possessing the firearms.
Federal law prohibits a person with a prior conviction for a misdemeanor crime of domestic violence from possessing a firearm or ammunition. Nutter knew he was prohibited from possessing firearms because of prior convictions for domestic violence in Canton, Ohio, Municipal Court on July 14, 1998, and endangering children and domestic violence on a family or household member in the Stark County, Ohio, Court of Common Pleas on August 19, 2002.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Nicholas County Sheriff’s Department.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Andrew J. Tessman prosecuted the case with assistance from third-year law student intern Eric McLain.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-142.
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New Orleans Man Charged in Federal Court for Hobbs Act Robberies, Armed Bank Robbery, Brandishing a Firearm During Crimes of Violence and Possession with Intent to Distribute a Controlled Dangerous SubstanceRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DEVIN CHANEY, age 32, was charged in an eleven-count superseding indictment by a federal grand jury on Friday, September 9, 2022.
According to the superseding indictment, CHANEY is charged with four counts of Hobbs Act Robbery in violation of 18 U.S.C. § 1951(a). If convicted of the Hobbs Act Robbery violations, CHANEY faces a maximum term of imprisonment of 20 years, a fine of up to $250,000, a period of five years of supervised release and a mandatory special assessment fee of $100.00 for each count. CHANEY is also charged with five counts of Brandishing a Firearm During a Crime of Violence in violation of 18 U.S.C. § 924(c)(1)(a)(ii). If convicted of Brandishing a Firearm During a Crime of Violence, CHANEY faces a mandatory consecutive sentence of 7 years to life imprisonment, up to a $250,000 fine, up to 5 years supervised release and a $100 mandatory special assessment fee for each count.
CHANEY is also charged with armed bank robbery of the Capital One Bank located in New Orleans on December 24, 2021. If convicted of bank robbery, CHANEY faces a maximum term of imprisonment of 25 years, a fine of up to $250,000.00, up to three years supervised release after imprisonment, and a mandatory $100 special assessment fee. CHANEY is also charged with possession with intent to distribute cocaine hydrochloride, in violation of 21 U.S.C. §841(a)(1) and §841(b)(1)(C). If convicted, CHANEY faces a maximum term of imprisonment of 20 years, up to a $1,000,000 fine, at least three years of supervised release, and a mandatory special assessment fee of $100.00.
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.
U. S. Attorney Evans reiterated that the superseding indictment contains merely charges and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation Violent Crimes Task Force and New Orleans Police Department in investigating this matter. This case is being prosecuted by Assistant United States Attorneys Julia Evans, Brandon Long, and Charles Strauss.
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New Haven Man Admits Stealing More Than $160K from Retired Woman's Bank AccountRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that GREGORY IVY, 23, of New Haven, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to one count of bank fraud.
According to court documents and statements made in court, in 2018, Ivy began working for a retired woman (“the victim”), doing odd jobs for her. In October 2018, Ivy began to steal checks from the victim’s checkbook while in her home. He then wrote checks payable to himself, forged the victim’s signature on the checks, and deposited the checks into his personal credit union account. Ivy also gave stolen blank checks on which he had forged the victim’s signature to another individual, who then cashed or deposited the checks. That individual then recruited other individuals, including Lamont Bethea, to cash or deposit stolen checks on which Ivy had forged the victim’s signature.
Bethea used the information on the stolen checks, including the bank routing number and the victim’s bank account number, to arrange electronic funds transfers (EFTs) from the victim’s bank account to make payments for himself, his family members, and other friends or acquaintances. Bethea used these EFTs to pay credit cards bills, rent, car insurance, student loans, cell phone bills, and other payments for himself and others. Bethea also provided the victim’s routing and bank account numbers to other individuals so they could arrange similar EFTs for themselves and others from the victim’s account.
Ivy, Bethea and other participants attempted to obtain a total of $624,818.28 from the victim’s bank account. Because the victim’s bank account became overdrawn, some attempted check deposits or EFTs were reversed, resulting in a loss to the victim of $479,569.08. Ivy personally stole $162,942 from the victim during his involvement in the scheme, which lasted until May 2021.
Judge Dooley scheduled sentencing for December 21, at which time Ivy faces a maximum term of imprisonment of 30 years.
Ivy was arrested on a federal criminal complaint on November 8, 2021. He is released on a $50,000 bond pending sentencing.
Bethea and his family members and friends stole more than $131,000 from the victim. On September 1, 2022, Bethea pleaded guilty to fraud offenses stemming from this scheme and a separate, unrelated scheme. He awaits sentencing.
This ongoing investigation is being conducted by the Federal Bureau of Investigation with the assistance of Bank of America. The case is being prosecuted by Assistant U.S. Attorney David J. Sheldon.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll free number is 833-FRAUD-11 (833-372-8311). For more information, please visit. https://ovc.ojp.gov/program/stop-elder-fraud/providing-help-restoring-hope.
Modesto Man Sentenced to 45 Years in Prison for Production of Child PornographyRead the Press Release
FRESNO, Calif. — Anthony Rodriguez, aka Anthony Rito Lara, 34, of Modesto, was sentenced today to 45 years in prison for sexual exploitation of a minor, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in September and October 2020, Rodriguez used a cellphone to create approximately 49 videos and 51 images of a child under 12 years old engaged in sexually explicit conduct. Rodriguez distributed some of these videos over the internet, including one video in which he engages in a sex act with the child.
This case was the product of an investigation by the Federal Bureau of Investigation and the Modesto Police Department with assistance from the Stanislaus County District Attorney’s Office. Assistant U.S. Attorney Alexandre M. Dempsey 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 the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Michigan City Man Sentenced to 210 Months in PrisonRead the Press Release
SOUTH BEND – Ashley D. Harper, 49 years old, of Michigan City, Indiana, was sentenced by United States District Court Chief Judge Jon E. DeGuilio on his plea of guilty to production of child pornography, announced United States Attorney Clifford D. Johnson.
Harper was sentenced to 210 months in prison followed by 5 years of supervised release.
According to documents in the case, in July of 2021, Harper produced child pornography involving a minor under the age of 12.
This case was investigated by Homeland Security Investigations with the assistance of the Indiana State Police and Michigan City Police Department. This case was prosecuted by Assistant United States Attorney John M. Maciejczyk.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
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Mexican National Sentenced to 25 Years in Prison for Distributing MethamphetamineRead the Press Release
SAN ANTONIO – A Mexican national was sentenced last week to 300 months in prison for his role in distributing methamphetamine in the San Antonio area.
According to court documents, on April 7, 2020, a search warrant was executed at the residence of Roberto Ignacio Sanchez Benitez, 51. During the search, commercial amounts of methamphetamine were located to include an ice chest with about 25 pounds of methamphetamine. Agents also recovered a firearm and over $30,000 in cash. Law enforcement officers learned that Benitez claimed to be a “witch doctor” and allegedly sacrificed goats for protection.
On January 19, 2022, Benitez pleaded guilty to one count of possession with intent to distribute 500 grams or more of methamphetamine. By pleading guilty, Benitez admitted he illegally distributed methamphetamine. Benitez has remained in federal custody since his arrest on April 7, 2020.
“Benitez peddled poison on a large scale in our San Antonio community,” said U.S. Attorney Ashley C. Hoff. “I am proud of the federal prosecution of this case and I want to thank our law enforcement partners for their hard work and dedication to public safety.”
“The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) is steadfast in our commitment to take individuals who illegally possess firearms off our streets,” said ATF Special Agent in Charge Fred J. Milanowski, Houston Field Division. “We will continue to diligently work to hold those who violate federal firearms laws accountable.”
“The arrest, and subsequent conviction, of this offender is the culmination of months of hard work by the San Antonio Police Department (SAPD), South Texas High Intensity Drug Trafficking Area (HIDTA) and the ATF. Our commitment to keeping San Antonio safe is unwavering,” said SAPD Chief William McManus. “Every day, our officers remain dedicated to our community and its safety.”
The ATF, SAPD and HIDTA investigated the case. Assistant U.S. Attorney Sarah Ella Spears 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. Anonymous tips involving gang crime and wanted fugitives can be submitted at www.stopsanantoniogangs.org.
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Mexican Man Pleads Guilty to Unlawful Return to the United States After RemovalRead the Press Release
Gulfport, Miss. – A Mexican national pled guilty to the federal crime of unlawful return of an alien after removal, announced U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi, and Jason E. Schneider, Chief Patrol Agent of the U.S. Border Patrol’s New Orleans Sector.
According to court documents, Arce Manuel Gomez-Salazar, 30, of Mexico, was arrested on July 8, 2022, on U.S. Highway 90, in Harrison County. A State Trooper of the Mississippi Highway Safety Patrol was conducting a vehicle safety checkpoint when he encountered a vehicle driven by Gomez-Salazar. The Trooper asked Gomez-Salazar for his driver’s license, and neither Gomez-Salazar nor his three passengers had a valid driver’s license. None of the vehicle occupants were citizens of the U.S. and all were determined to be unlawfully present in the U.S.
Records revealed that Gomez-Salazar had been arrested by the Border Patrol in Texas, in 2018, and ordered removed to his home nation of Mexico by a U.S. Immigration Judge
Gomez-Salazar is scheduled to be sentenced on December 8, 2022 at 1:30 p.m., and faces a maximum penalty of two years in prison, a $250,000 fine and 1 year of Supervised Release. After completing any sentence of incarceration, he also is subject to Homeland Security proceedings to remove him again from the United States. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Gomez-Salazar’s passengers were administratively processed since none of the passengers had been previously removed from the U.S.
The case was investigated by the Mississippi Highway Patrol and the U.S. Border Patrol.
Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Mexican Man Pleads Guilty to Transporting an Illegal Alien within the U.S.Read the Press Release
Gulfport, Miss. – A Mexican national pled guilty to the federal felony offense of unlawful transportation of an illegal alien within the United States, announced U.S. Attorney Darren J. LaMarca, Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector, and Special Agent in Charge David L. Denton of Homeland Security Investigations in New Orleans.
According to court documents, Jesus Salgado-Perez, 31, was arrested on June 1, 2022, following a vehicle stop on Interstate 10 in Jackson County by a U.S. Border Patrol Agent assigned to the South Mississippi Metro Enforcement Team (MET). Salgado-Perez, the driver of the vehicle, did not have a driver’s license and was found, along with his passenger, to be illegally present in the U.S.
Salgado-Perez will be sentenced on December 14, 2022, and faces a maximum penalty of 5 years in prison, a $250,000 fine, and $5,100 in special assessments. After completing any prison sentence, he also is subject to Department of Homeland Security proceedings to remove him from the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the U.S. Border Patrol, Homeland Security Investigations, and the Jackson County Sheriff’s Department.
The prosecutor for the case is Assistant U.S. Attorney Stan Harris.
Member of Brockton Drug Crew Pleads Guilty to Fentanyl Distribution and Gun ChargesRead the Press Release
BOSTON – A member of a Brockton drug crew pleaded guilty yesterday to fentanyl distribution and firearm charges.
Jason Miranda, 27, of Brockton, pleaded guilty to one count of conspiracy to distribute fentanyl, three counts of distribution of fentanyl and one count of being a felon in possession of a firearm and ammunition. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 18, 2023. Jason Miranda was indicted along with three alleged co-conspirators in November 2019.
According to court documents, law enforcement began investigating a violent Brockton-area drug crew that distributed large quantities of fentanyl throughout southeastern Massachusetts. The drug crew ran a fentanyl delivery service that encompassed all of Brockton as well as neighboring cities. Specifically, it is alleged that drug users/customers placed orders for fentanyl by contacting a cellphone maintained and shared by crew members, which included Jason Miranda, his brother Natalio Miranda, Placido Pereira and Djoy Defrancesco, who worked together to deliver the fentanyl order. Beginning in September 2019, agents succeeded in using an undercover law enforcement officer to make six purchases of fentanyl from members of the crew.
On Oct. 16, 2019, a search was conducted at an address in Taunton where Jason Miranda had been staying. Agents seized a black Glock .40 caliber semiautomatic pistol with a defaced serial number; two different ammunition clips containing 9 millimeter ammunition; a money counter; a safe containing $28,000 in cash; and a painting of Miranda holding up a large stack of cash.
Because of Miranda’s criminal record, the charge of conspiracy to distribute fentanyl and distribution of fentanyl provides for up to 30 years in prison, at least six years of supervised release and a fine of up to $2 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rollins; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Brockton Police Chief Brenda Perez; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; and Plymouth County District Attorney Timothy J. Cruz made the announcement. Assistance was provided by the East Bridgewater, West Bridgewater, Whitman and Bridgewater State University Police Departments as well as the Plymouth County Sheriff’s Office. Assistant U.S. Attorney Christopher Pohl of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Massachusetts man sentenced to 40 years in prison on child pornography chargesRead the Press Release
CAMDEN, N.J. – A Massachusetts man was sentenced today to 480 months in prison for trafficking in thousands of images and videos of child sexual abuse while incarcerated at Federal Correctional Institution Fort Dix for a previous offense transporting and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
William H. Noble, 57, of Lowell, Massachusetts, was convicted in November 2021 after a three-day jury trial before Senior U.S. District Judge Joseph H. Rodriguez of conspiring to receive and distribute child pornography, receiving child pornography, distributing child pornography, possessing child pornography, and accessing with intent to view child pornography on federal property. Judge Rodriguez imposed today’s sentence in Camden federal court. In addition to the prison term, Judge Rodriguez sentenced Noble to five years of supervised release. Noble was also ordered to pay $63,415 in restitution to the victims.
According to documents filed in this case and the evidence at trial:
From Nov. 1, 2016, to April 26, 2017, while an inmate at FCI-Fort Dix, Noble participated in a conspiracy with other inmates to receive and distribute images of child sexual abuse. Noble was serving an 81-month sentence following his guilty plea in the District of Massachusetts to transportation and possession of child pornography. He was scheduled to be released on March 8, 2018.
While in prison, Noble and his conspirators accessed images of child sexual abuse on the “dark web” using cell phones that had been smuggled into the prison. They then stored the images on micro SD cards, which they shared amongst the conspirators.
On April 19, 2017, Noble transferred a micro SD card containing over 2,400 images and nearly 100 videos of child sexual abuse to a government informant. Many of the images and videos depicted the sexual abuse of prepubescent children, including infants and toddlers. At the time of the transfer, Noble was recorded describing the child sexual abuse images and videos to the informant. Noble’s conspirators were also recorded describing Noble’s role and conduct in furtherance of the conspiracy. When Noble was arrested on Feb. 5, 2018, he confessed to the FBI.
The charges against Noble stem from a long-term investigation by the FBI, which led to similar charges against seven other FCI-Fort Dix inmates. All of the other defendants have already pleaded guilty for their roles in the scheme.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation. He also thanked officials of the Bureau of Prisons, FCI-Fort Dix, and the New Jersey Regional Computer Forensic Laboratory for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Andrew B. Johns and David E. Malagold of the Criminal Division.
Massachusetts Man Sentenced to 40 Years in Prison on Child Pornography ChargesRead the Press Release
CAMDEN, N.J. – A Massachusetts man was sentenced today to 480 months in prison for trafficking in thousands of images and videos of child sexual abuse while incarcerated at Federal Correctional Institution Fort Dix for a previous offense transporting and possessing child pornography, U.S. Attorney Philip R. Sellinger announced.
William H. Noble, 57, of Lowell, Massachusetts, was convicted in November 2021 after a three-day jury trial before Senior U.S. District Judge Joseph H. Rodriguez of conspiring to receive and distribute child pornography, receiving child pornography, distributing child pornography, possessing child pornography, and accessing with intent to view child pornography on federal property. Judge Rodriguez imposed today’s sentence in Camden federal court. In addition to the prison term, Judge Rodriguez sentenced Noble to five years of supervised release. Noble was also ordered to pay $63,415 in restitution to the victims.
According to documents filed in this case and the evidence at trial:
From Nov. 1, 2016, to April 26, 2017, while an inmate at FCI-Fort Dix, Noble participated in a conspiracy with other inmates to receive and distribute images of child sexual abuse. Noble was serving an 81-month sentence following his guilty plea in the District of Massachusetts to transportation and possession of child pornography. He was scheduled to be released on March 8, 2018.
While in prison, Noble and his conspirators accessed images of child sexual abuse on the “dark web” using cell phones that had been smuggled into the prison. They then stored the images on micro SD cards, which they shared amongst the conspirators.
On April 19, 2017, Noble transferred a micro SD card containing over 2,400 images and nearly 100 videos of child sexual abuse to a government informant. Many of the images and videos depicted the sexual abuse of prepubescent children, including infants and toddlers. At the time of the transfer, Noble was recorded describing the child sexual abuse images and videos to the informant. Noble’s conspirators were also recorded describing Noble’s role and conduct in furtherance of the conspiracy. When Noble was arrested on Feb. 5, 2018, he confessed to the FBI.
The charges against Noble stem from a long-term investigation by the FBI, which led to similar charges against seven other FCI-Fort Dix inmates. All of the other defendants have already pleaded guilty for their roles in the scheme.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy, with the investigation. He also thanked officials of the Bureau of Prisons and FCI-Fort Dix for their assistance with the investigation.
The government is represented by Assistant U.S. Attorneys Andrew B. Johns and David E. Malagold of the Criminal Division.
Marion Man Convicted after Trial on Federal Kidnapping, Carjacking, and Murder ChargesRead the Press Release
FLORENCE, SOUTH CAROLINA — Dominique Devonah Brand, 30, of Marion, was convicted following a multi-day bench trial on all three counts charged: Kidnapping Resulting in Death, Carjacking Resulting in Death, and Using or Carrying a Firearm During and in Relation to a Crime of Violence in a Manner Constituting Murder.
Evidence presented by the Government at trial established that on Sunday, March 28, 2021, Brand entered Mary Ann Elvington’s home in Nichols, South Carolina. While inside the house, he fired a 12-gauge shotgun into the hallway floor at close range. Mr. Brand’s DNA was later found on multiple items inside Ms. Elvington’s home, including the spent, 12-gauge shotgun shell he fired, a pizza slice he apparently ate from while there, a water bottle he drank from, and a jewelry box he touched. Across the street from Ms. Elvington’s home, investigators found Mr. Brand’s blood and touch DNA inside a stolen church van that was stuck in the mud.
At about 6:11 p.m. that Sunday, Brand forced Ms. Elvington to drive him from her house to Lake Waccamaw, North Carolina, and back into South Carolina. During this trip, Mr. Brand sat behind Ms. Elvington with the shotgun. Ms. Elvington’s cell site location information showed her car was initially headed back toward her home in Nichols. But in Lake View, South Carolina, surveillance video from the Lake View Police Department captured Brand directing Ms. Elvington into the back seat of her car, moving a gun to the front seat, getting in the driver’s seat, and making a U-turn, heading away from Ms. Elvington’s home. The surveillance video showed Brand was alone with Ms. Elvington—carrying a gun—shortly before she was murdered. After leaving Lake View, Brand drove Ms. Elvington to a remote crossroads in Marion County and walked her behind the abandoned Zion Grocery store. He held the shotgun to the back of her head and pulled the trigger, executing her.
Brand then drove Ms. Elvington’s car to Marion, where he hid it behind an abandoned club. Investigators found Brand’s blood on a wooden block sitting in the driver’s seat and on a fuse puller on the ground outside the car. Ms. Elvington’s body was located the following evening, March 29, 2021. After learning he was a suspect, Brand turned himself in to authorities on March 31, 2021.
United States District Judge Sherri A. Lydon presided over the trial and will sentence Brand after receiving and reviewing a pre-sentence report that will be prepared by the United States Probation Office. Brand faces a penalty of life imprisonment on each count
The case was investigated by the Federal Bureau of Investigation (FBI) with significant assistance from the South Carolina Law Enforcement Division (SLED), Horry County Police Department, Marion County Sheriff’s Office, Marion Police Department, Lake View Police Department, and Nichols Police Department. Assistant U.S. Attorneys Everett McMillian and Katie Stoughton prosecuted the case along with Special Assistant U.S. Attorney Scott Hixson, who also serves as the Deputy Solicitor for the 15th Judicial Circuit.
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Manchester Man Sentenced for Possession of Child Sex Abuse MaterialRead the Press Release
CONCORD, N.H. – Michael Dukette, 31, of Manchester, was sentenced to 78 months in federal prison for possession of child sex abuse material, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in June 2018 an individual reported potential child exploitation images to the Hudson Police Department. The individual had lent an iPhone to another person and after it was returned, the individual found an email containing four videos that showed Dukette sexually exploiting a sleeping child. Dukette subsequently admitted to police during voluntary interviews that he made and kept the videos. Further investigation revealed the child in the videos was five years old at the time the videos were made.
Dukette, who pleaded guilty on April 5, 2022, will be on supervised release for 5 years after serving his prison sentence.
“The production of child sex abuse materials victimizes the most vulnerable members of our communities,” said U.S. Attorney Young. “Protecting children from harm is a paramount obligation of the law enforcement community, and the United States Attorney’s Office will aggressively investigate and prosecute these crimes. I am grateful for the hard work of our law enforcement partners who assisted us in holding this defendant accountable.”
“This case shows that when members of the public come forward when they see something wrong, it can help put offenders like Dukette behind bars. To possess child sexual abuse material is to possess the permanent documentation of the sexual exploitation of a child. HSI is committed to pursuing anyone who participates in these crimes and bringing them to justice,” said Special Agent in Charge Matthew Millhollin for Homeland Security Investigations in New England.
This matter was investigated by the Hudson Police Department, the Nashua Police Department, and Homeland Security Investigations.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Man Pleads Guilty to Distributing Heroin and Fentanyl Near a Local Park in DubuqueRead the Press Release
A man who distributed heroin and fentanyl in Dubuque, Iowa, plead guilty in federal court on September 14, 2022.
Deandre P. Davis, age 32, formerly of Dubuque, Iowa, was convicted of conspiracy to distribute heroin and fentanyl and distribution of heroin and fentanyl within 1,000 feet of Hilltop Park in Dubuque, Iowa.
At his plea hearing, Davis admitted to engaging in a drug-related conspiracy to distribute heroin and fentanyl. In the fall of 2020, Davis coordinated with another person and personally distributed heroin and fentanyl throughout the city of Dubuque, including near a park.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Davis remains in custody of the United States Marshal pending sentencing. Davis faces a possible maximum sentence of 60 years’ imprisonment, a fine of not more than $4 million, and up to six years of supervised release following any term of imprisonment.
This case was investigated by the Dubuque Drug Task Force and is being prosecuted by Assistant United States Attorney Jason D. Norwood.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 21-CR-1033-CJW.
Follow us on Twitter @USAO_NDIA.
MS-13 Gang Member Pleads Guilty to 2015 Murder in Babylon, Attempted Murder in Bay Shore, and Other CrimesRead the Press Release
Earlier today, in federal court in Central Islip, Reynaldo Lopez-Alvarado, also known as “Mente,” a member of the Brentwood Locos Salvatruchas clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, pleaded guilty to racketeering charges in connection with his participation in the November 19, 2015 murder of Cesar Rivera-Vasquez, an attempted murder that occurred on April 9, 2013 in Bay Shore, and conspiracy to commit obstruction of justice. The proceeding was held before United States Magistrate Judge Steven I. Locke. When sentenced, Lopez-Alvarado faces up to life in prison.
Breon Peace, United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Rodney K. Harrison, Commissioner, Suffolk County Police Department (SCPD), announced the guilty plea.
“In a twisted desire to enhance his status within the MS-13 gang and without any regard for human life, the defendant admittedly participated in extremely violent crimes, including murder and a shooting,” stated United States Attorney Peace. “Lopez-Alvarado faces very serious consequences for his senseless actions which I hope will be of some relief to the community, including the family and friends of his victims. This Office, together with the Long Island Gang Task Force, is working tirelessly to bring MS-13 gang members to justice for the havoc they have wrought on Long Island.”
“This case is a grim reminder of the inhumane acts individuals are willing to commit just to elevate their status within a gang,” stated SCPD Commissioner Harrison. “Let this guilty plea be a testament of our commitment to hold gang members accountable for their heinous crimes. We will continue to work with our law enforcement partners to ensure public safety on our streets.”
According to court filings and statements by the defendant at the guilty plea proceeding, Lopez-Alvarado participated in the April 9, 2013 attempted murder of a man on Benton Place in Bay Shore. Lopez-Alvarado, who was a new member of the MS-13 at the time, and another MS-13 member went out looking to kill a rival gang member in order for Lopez-Alvarado to gain full status in the gang. When they observed a group of men who they assumed were members of the rival Bloods street gang, Lopez-Alvarado and his co-conspirator retrieved a .25 caliber handgun and 20-gauge shotgun, drove back to Benton Place, approached the group of men and opened fire. One victim was struck and was subsequently transported to a local hospital, where he was treated and survived the shooting.
Approximately one month after that, Lopez-Alvarado conspired to obstruct justice by assisting fellow gang members after they had committed two murders. Specifically, on May 28, 2013, Lopez-Alvarado came to the aid of fellow gang members, who had just shot and killed Kennan Russell at a house party in Central Islip, when the minivan they had stolen and subsequently used in not only the Russell murder but also the May 26, 2013 murder of Derrick Mayes, ran out of gas and broke down. In addition to helping his fellow gang members get gas and hide the firearms used in the Russell murder, Lopez-Alvarado and other MS-13 members, who had learned that the minivan had been linked to the murders, agreed to destroy it. Lopez-Alvarado and his fellow MS-13 gang members then cleaned the minivan to remove any fingerprints, drove it to a wooded area in Ronkonkoma, doused it with gas, and set it on fire.
In addition, Lopez-Alvarado admitted during his guilty plea to participating in the murder of Rivera-Vasquez on November 19, 2015, in Babylon. Rivera-Vasquez was murdered by Lopez-Alvarado and other MS-13 members because the gang suspected him of belonging to a rival Mexican gang, Raza Loca. On the night of the murder, Lopez-Alvarado and his co-conspirators saw Rivera-Vasquez at a deli located near the Babylon Long Island Railroad train station. Lopez-Alvarado and the other MS-13 members convinced the victim to leave with them to smoke marijuana and brought him to an isolated area behind a nearby baseball field. The gang members, who were armed with knives and a baseball bat, told the victim to take off his shirt so they could observe a tattoo they believed signified the victim’s membership in the rival gang. After observing the tattoo, Lopez-Alvarado and the other MS-13 members attacked Rivera-Vasquez, beating him with the bat and stabbing him repeatedly with knives before one of the co-conspirators cut the victim’s throat. The MS-13 members buried Rivera-Vasquez’s body near a large mound of dirt. The body was discovered in April 2018.
Today’s conviction is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York, resulting in the convictions of dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
REYNALDO LOPEZ-ALVARADO
Age: 30
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (GRB)
Los Angeles Man Sentenced to More Than 24 Years in Federal Prison for Producing Sexually Explicit Images of a Teenage Girl He KidnappedRead the Press Release
LOS ANGELES – A man from the Westlake neighborhood of Los Angeles was sentenced today to 292 months in federal prison for producing child pornography of him raping a then 15-year-old girl he had kidnapped from her home in Oregon.
Travis Smith, 28, was sentenced by United States District Judge John A. Kronstadt, who said at today’s hearing that Smith’s “inexcusable” conduct was “beyond comprehension” that it had a “profound effect” on the victim. Smith pleaded guilty on January 20 to one count of production of child pornography.
In early 2020, Smith – then a 26-year-old married father of two living with his estranged wife – impersonated a 16-year-old boy to chat online with the victim about a popular online game. Their messages soon turned sexual and abusive, however, with Smith demanding the victim perform painful sex acts on herself as punishment for behavior such as speaking with boys or not answering him quickly enough.
The victim tried to end her communication with Smith, but he threatened to release to her family and friends the sexually explicit images he had enticed her to produce. In July 2020, several months after he initially contacted the victim, Smith drove from California to Oregon to the victim’s home.
Under threat of shooting the victim and her family, Smith kidnapped the victim. He attempted to hide the victim’s whereabouts by having her destroy her cellphone. On the drive and thereafter, Smith repeatedly raped the victim. Once in Los Angeles, he hid the victim in his Westlake apartment for several days. While there, he filmed himself raping her. After days of captivity, the FBI located and rescued the victim.
The FBI investigated this matter.
Assistant United States Attorney Catharine A. Richmond of the Violent and Organized Crime Section prosecuted this case.
Lawton Man Sentenced to 5 Years for Defrauding U.S. Department of Veteran AffairsRead the Press Release
GRAND RAPIDS, MICHIGAN — Joseph Scott Gray, 53, of Lawton, Michigan was sentenced to five years in federal prison for lying to the Department of Veterans Affairs to obtain over $250,000 in benefits to which he was not entitled. To obtain those benefits, Gray repeatedly told the VA he could not walk or stand, when in fact, he could.
On October 26, 2017, Gray went to the Battle Creek VA Medical Center for an exam, and he arrived in a wheelchair:
During the exam, Gray told VA employees he had not walked in 10 years and could not use his left hand. Minutes later, Gray went to a local restaurant, where he was observed freely walking in and out of the building and carrying his leftovers in his left hand:
Gray was convicted by a federal jury of four counts: engaging in a conspiracy to defraud the government; providing false statements to the VA; theft of government funds; and presenting a false, fictitious, or fraudulent claim for benefits. After trial, the Court found that Gray committed perjury by falsely testifying that his medication caused him lie to VA employees and that his medication caused him to go from being unable to walk one minute to able to walk the next. The Court also found that Gray falsely testified that it was his brother, not him, in videos from a local feed store in which Gray was seen walking freely and carrying a 40 - 50 lb. bag of cat food.
In sentencing Gray to five years in prison, U.S. District Court Judge Robert J. Jonker explained that a significant sentence of incarceration was necessary because Gray’s fraud spanned 15 years and involved blatant lies to both the VA and the jury. Judge Jonker also noted Gray obstructed justice in this case by committing perjury, and he obstructed justice in a previous federal case by threatening a witness. In 2011, Gray was sentenced to 27 months in prison after a jury convicted him of engaging in the unlicensed sale of firearms.
U.S. Attorney Mark Totten stated, “Our nation has an obligation to care for our veterans and we must ensure they receive the medical care and disability benefits they need and deserve. Those who lie and fraudulently obtain VA benefits they are not entitled to receive not only steal from American taxpayers but from the veterans who served in defense of our country. My office will fight to protect VA benefits for those in genuine need of treatment and support.”
“Misrepresenting symptoms to the VA to fraudulently obtain benefits takes resources from deserving veterans and will not be tolerated,” said Special Agent in Charge Gregory Billingsley with the Department of Veterans Affairs Office of Inspector General’s Central Field Office. “The VA OIG will continue to vigorously investigate those who would steal from VA benefits programs and taxpayers.”
Assistant U.S. Attorneys Davin Reust and Lauren Biksacky prosecuted the case.
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Las Vegas Store Owner Indicted for Trafficking in Counterfeit Designer MerchandiseRead the Press Release
LAS VEGAS – A Las Vegas woman made her initial court appearance yesterday before U.S. Magistrate Judge Brenda Weksler for allegedly trafficking in more than 3,000 counterfeit designer handbags, clothes, and other merchandise which she offered for sale at her beauty supply store.
Amie Kamara (31) is charged with two counts of trafficking in counterfeit goods. A jury trial has been scheduled for November 14, 2022 before U.S. District Judge Cristina D. Silva.
According to allegations made in the indictment, Kamara owned and operated Aminic Beauty Supply in Las Vegas. At the store, she possessed and intended to sell items bearing counterfeit marks that were identical to the genuine trademarks from Louis Vuitton, Chanel, Gucci, and other designer brands.
If convicted, the statutory maximum penalty is 20 years in prison, a term of supervised release, and a monetary fine.
U.S. Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Chris Watkins for Homeland Security Investigations (HSI) Las Vegas made the announcement.
The case was investigated by HSI. Assistant U.S. Attorney Jim Fang is prosecuting the case.
The charges contained in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty.
To report possible violations of intellectual property rights, including counterfeiting, IP Theft and piracy, contact the National IPR Coordination Center, at www.iprcenter.gov/referral/report-ip-theft-form.
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Kern County Man Charged with Firearms OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Damien Torres, 22, of Wasco, charging him with illegal possession of firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 5, 2021, Torres was found in possession of ammunition after officers contacted him in response to a disturbance call. On Nov. 29, 2021, Torres was found in possession of a firearm after he failed to yield to officers as they were trying to stop him for a traffic violation. On March 18, 2022, Torres was found to be in possession of a firearm during a search of his residence, and on May 2, 2022, a firearm was found at Torres’ residence during a search after reports of a confrontation involving Torres striking a male with a firearm the day before. Torres is prohibited from possessing firearms and ammunition based on his prior convictions for taking a vehicle without consent and possession of a loaded a firearm by a gang member.
This case is the product of an investigation by the Kern County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Torres faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case 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.
Justice Department and Albuquerque Police Department Provide Policing Reform Progress ReportRead the Press Release
The Justice Department and the City of Albuquerque (City) today agreed that because the City has sustained compliance with significant provisions of the consent decree for the last two years, covering the Albuquerque Police Department (APD), the City now will self-assess compliance with those provisions. The announcement was made by filing a joint notice of the parties’ agreement with the U.S. District Court for the District of New Mexico, which oversees the City’s implementation of the consent decree.
The City will analyze and publicly report on its compliance every six months, pursuant to a self-assessment plan also filed with the court. This transition to self-assessment is a significant accomplishment, and represents significant progress toward compliance and termination of the consent decree.
“The Albuquerque Police Department has made real progress toward compliance with this Consent Decree,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The progress that we have seen in the City of Albuquerque has yielded reform and is moving the city in the right direction when it comes to constitutional policing. We look forward to working with officials to achieve full compliance with the consent decree. The residents of Albuquerque deserve nothing less.”
“Today, we come before the court to recognize important and sustained advances made by the Albuquerque Police Department toward the goal of constitutional, effective policing,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Successful self-assessment is the cornerstone of true reform, and the Albuquerque community should expect no less. I want to commend the hard work put in by the men and women of APD, as well as the persistence of community stakeholders, that went into this accomplishment. Together, we will realize the goals set out by this community, through mutual agreement, seven years ago.”
As detailed in today’s joint notice, the City has achieved sustained substantial compliance with and will self-assess the portions of the consent decree covering:
- The Multi-Agency Task Force that investigates shootings by APD officers;
- Specialized units (except tactical units);
- Training on behavioral health and field training;
- Filing of complaints by the public;
- Officer support programs;
- Recruitment, hiring, performance evaluations, and promotions; and more.
For example, APD has achieved full compliance with the consent decree’s requirement that it “develop a comprehensive recruitment and hiring program that successfully attracts and hires qualified individuals.” In its most recent report, the independent monitor found that APD has “set new standards in police recruiting,” and increased interest in joining APD at a time when police recruiting has become more difficult nationwide. In addition, APD has also developed and maintained a robust and effective public information program to facilitate misconduct reporting and ensure that civilian complaints are accepted and investigated.
The parties’ agreement reflects the strides APD has made in important areas of reform, while also recognizing that APD has put in place the necessary staff and systems to accurately and credibly assess its own continued compliance with these portions of the consent decree. This agreement will allow APD to focus even more on critical areas where it has made substantial improvements, as recognized by the independent monitor in its most recent report. These areas include force investigations, for which the monitoring team found that APD had improved both timeliness and quality, and discipline, where the monitoring team noted that APD continues to make “marked improvements.”
The Justice Department initiated an investigation of APD in November 2012 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the District of New Mexico. The Justice Department announced the findings of the investigation in April 2014. The consent decree was approved by the U.S. District Court for the District of New Mexico in June 2015.
The findings report and the settlement agreement, as well as additional information about the Civil Rights Division, are available on its website at Special Litigation Section Cases and Matters (justice.gov). Additional information about implementation of the consent decree is also available on the website of the U.S. Attorney’s Office at Investigation into Albuquerque Police Department (justice.gov).
Justice Department and Albuquerque Police Department Provide Policing Reform Progress ReportRead the Press Release
WASHINGTON – Today, the Justice Department and the City of Albuquerque (City) agreed that because the City has sustained compliance with significant provisions of the consent decree for the last two years, covering the Albuquerque Police Department (APD), the City now will self-assess compliance with those provisions. The announcement was made by filing a Joint Notice of the parties’ agreement with the United States District Court for the District of New Mexico, which oversees the City’s implementation of the consent decree.
The City will analyze and publicly report on its compliance every six months, pursuant to a self-assessment plan also filed with the Court. This transition to self-assessment is a significant accomplishment, and represents significant progress toward compliance and termination of the consent decree.
“The Albuquerque Police Department has made real progress toward compliance with this Consent Decree,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The progress that we have seen in the City of Albuquerque has yielded reform and is moving the city in the right direction when it comes to constitutional policing. We look forward to working with officials to achieve full compliance with the consent decree. The residents of Albuquerque deserve nothing less.”
“Today, we come before the Court to recognize important and sustained advances made by the Albuquerque Police Department toward the goal of constitutional, effective policing,” said United States Attorney Alexander M.M. Uballez for the District of New Mexico. “Successful self-assessment is the cornerstone of true reform, and the Albuquerque community should expect no less. I want to commend the hard work put in by the men and women of APD, as well as the persistence of community stakeholders, that went into this accomplishment. Together, we will realize the goals set out by this community, through mutual agreement, seven years ago.”
As detailed in today’s Joint Notice, the City has achieved sustained substantial compliance with and will self-assess the portions of the consent decree covering:
- The Multi-Agency Task Force that investigates shootings by APD officers;
- Specialized units (except tactical units);
- Training on behavioral health and field training;
- Filing of complaints by the public;
- Officer support programs;
- Recruitment, hiring, performance evaluations, and promotions; and more.
For example, APD has achieved full compliance with the consent decree’s requirement that it “develop a comprehensive recruitment and hiring program that successfully attracts and hires qualified individuals.” In its most recent report, the Independent Monitor found that APD has “set[] new standards in police recruiting,” and increased interest in joining APD at a time when police recruiting has become more difficult nationwide. In addition, APD has also developed and maintained a robust and effective public information program to facilitate misconduct reporting and ensure that civilian complaints are accepted and investigated.The parties’ agreement reflects the strides APD has made in important areas of reform, while also recognizing that APD has put in place the necessary staff and systems to accurately and credibly assess its own continued compliance with these portions of the consent decree. This agreement will allow APD to focus even more on critical areas where it has made substantial improvements, as recognized by the Independent Monitor in its most recent report. These areas include force investigations, for which the monitoring team found that APD had improved both timeliness and quality, and discipline, where the monitoring team noted that APD continues to make “marked improvements.”
The Justice Department initiated an investigation of APD in November 2012 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the District of New Mexico. The Justice Department announced the findings of the investigation in April 2014. The consent decree was approved by the United States District Court for the District of New Mexico in June 2015.
The Findings Report and the Settlement Agreement, as well as additional information about the Civil Rights Division, are available on its website at Special Litigation Section Cases and Matters (justice.gov). Additional information about implementation of the consent decree is also available on the website of the U.S. Attorney’s Office at Investigation into Albuquerque Police Department (justice.gov).
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(866) 544-5309 TTYJustice Department Sues to Block ASSA ABLOY’s Proposed Acquisition of Spectrum Brands’ Hardware and Home Improvement DivisionRead the Press Release
The U.S. Department of Justice filed a civil antitrust lawsuit today to block ASSA ABLOY AB’s (ASSA ABLOY) proposed $4.3 billion acquisition of the Hardware and Home Improvement division of its rival, Spectrum Brands Holdings Inc (Spectrum). ASSA ABLOY and Spectrum are two of the three largest producers of residential door hardware in the concentrated, $2.4 billion U.S. industry.
The complaint, filed in the U.S. District Court for the District of Columbia, alleges that the merger would eliminate important head-to-head competition between ASSA ABLOY and Spectrum, risking higher prices, lower quality, reduced innovation and poorer service in the sale of at least two types of residential door hardware: premium mechanical door hardware and smart locks.
“Millions of Americans rely on these companies’ door hardware products every day to meet their most basic privacy and security needs,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Competition between these two companies, which are two of the three largest companies in an already concentrated industry, has benefitted American consumers in the form of lower prices and better quality. That important competition would be extinguished if this merger were allowed to proceed to the detriment of Americans.”
The complaint, which seeks to enjoin the transaction under Section 7 of the Clayton Act, alleges that ASSA ABLOY and Spectrum have competed for years to be leaders in the U.S. markets for premium mechanical door hardware and for smart locks. The proposed transaction would transform these markets, giving ASSA ABLOY a near-monopoly in premium mechanical door hardware and more than a 50% share in smart locks, leaving only one significant competitor. More broadly, a combined ASSA ABLOY/Spectrum would control approximately 50% of the overall residential door hardware market. Hundreds of millions of dollars’ worth of premium mechanical door hardware and smart locks are sold each year in the United States. Premium mechanical door hardware is made of high-quality, durable metals (primarily forged brass and cast bronze), and is highly customizable, design-driven, and constructed with superior craftsmanship. Smart locks are an increasingly popular type of digital door lock that can be remotely operated and monitored through a wireless connection to another electronic device, such as a smart phone or smart speaker.
ASSA ABLOY AB is a publicly traded Swedish stock company headquartered in Stockholm, Sweden. It sells its residential door hardware products in the United States under the August, EMTEK, and Yale brands. ASSA ABLOY’s revenues were approximately $9.1 billion in 2021.
Spectrum Brands Holdings Inc. is a publicly traded Delaware corporation headquartered in Middleton, Wisconsin. It sells its residential hardware products in the United States under the Baldwin and Kwikset brands. Spectrum’s revenues were approximately $4.6 billion in 2021.
Justice Department Secures Agreement with Massachusetts School District to Ensure Equal Educational Opportunities for All Students, Including K’iche’ SpeakersRead the Press Release
The Justice Department today announced a settlement agreement with New Bedford Public Schools to resolve the department’s investigation into the school district’s practices for communicating with limited English proficient parents and guardians, including speakers of K’iche’, an Indigenous Mayan language.
Among other steps, the district will implement effective measures to correctly identify the languages spoken by students, as well as parents and guardians, so that school staff do not assume K’iche’ speakers are native Spanish speakers based on their country of origin. The district has also agreed to improve its practices and professional development to address the specific needs of English learner students who speak K’iche’ so that they can access the same educational opportunities as other students in the district.
“Students and families from Indigenous Maya communities often face unique barriers to accessing educational opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This comprehensive agreement ensures that the district recognizes and addresses the needs of its substantial population of K’iche’-speaking students, and empowers parents to participate fully in their children’s education. The Civil Rights Division is committed to protecting every child’s right to equally participate in school.”
The agreement results from the department’s investigation under the Equal Educational Opportunities Act of 1974, opened in 2020. The district cooperated at every stage of the investigation and committed to improving its programs through revised practices and professional development. The Justice Department will monitor the district’s implementation of the settlement agreement for at least three full school years to ensure that the district complies with its obligations.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. View the Spanish translation of this press release here.
Play audio in K'iche' below:
Audio file
Translation in K'iche'Justice Department Secures Agreement Resolving HIV Discrimination Lawsuit in IndianaRead the Press Release
The Justice Department today filed a proposed consent decree with the U.S. District Court for the Southern District of Indiana to resolve its lawsuit against the Town of Clarksville, Indiana, for violating Title I of the Americans with Disabilities Act (ADA).
The lawsuit alleged that the town’s police department unlawfully revoked a job offer to a qualified police officer because of his human immunodeficiency virus (HIV) diagnosis. The officer had been successfully working for the Town’s police department as a volunteer reserve officer for over a year and was fully qualified to work as a police officer. Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.
“No individual should be subject to employment discrimination based on their HIV status,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The complainant’s dream job was taken away because of unfounded assumptions that his HIV diagnosis would impact his ability to safely do the job. This settlement reflects the Justice Department’s firm commitment to enforcing the rights of job applicants and employees who experience unlawful discrimination based on disability.”
“Workers living with HIV, including those in law enforcement, deserve to be free from unlawful discrimination,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “This settlement will ensure that qualified individuals who seek to serve their communities won’t be excluded as a result of unfounded stereotypes and misinformation about HIV. This office will continue to work closely with our partners in the Civil Rights Division to protect the civil rights of employees and continue the fight to uphold the hard-fought protections of the Americans with Disabilities Act.”
Under the terms of the consent decree, which must be approved by the court, Clarksville will revise its policies and procedures regarding employment-related medical examinations and will train relevant personnel on the requirements of Title I of the ADA. The town will also pay $150,000 in compensatory damages to the complainant and provide the complainant with an affidavit that makes clear to future employers that his termination by the town was through no fault of his own.
Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.
This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana based on a referral from the Indianapolis District Office of the Equal Employment Opportunity Commission. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. The complaint can be viewed here.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. Individuals who believe they may have been victims of discrimination may file a complaint at https://civilrights.justice.gov/.
Justice Department Secures Agreement Resolving HIV Discrimination Lawsuit in IndianaRead the Press Release
INDIANAPOLIS – Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and the Justice Department, today filed a proposed consent decree with the U.S. District Court for the Southern District of Indiana to resolve its lawsuit against the Town of Clarksville, Indiana, for violating Title I of the Americans with Disabilities Act (ADA).
The lawsuit alleged that the town’s police department unlawfully revoked a job offer to a qualified police officer because of his human immunodeficiency virus (HIV) diagnosis. The officer had been successfully working for the Town’s police department as a volunteer reserve officer for over a year and was fully qualified to work as a police officer. Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.
“Workers living with HIV, including those in law enforcement, deserve to be free from unlawful discrimination,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “This settlement will ensure that qualified individuals who seek to serve their communities won’t be excluded as a result of unfounded stereotypes and misinformation about HIV. This office will continue to work closely with our partners in the Civil Rights Division to protect the civil rights of employees and continue the fight to uphold the hard-fought protections of the Americans with Disabilities Act.”
“No individual should be subject to employment discrimination based on their HIV status,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The complainant’s dream job was taken away because of unfounded assumptions that his HIV diagnosis would impact his ability to safely do the job. This settlement reflects the Justice Department’s firm commitment to enforcing the rights of job applicants and employees who experience unlawful discrimination based on disability.”
Under the terms of the consent decree, which must be approved by the court, Clarksville will revise its policies and procedures regarding employment-related medical examinations and will train relevant personnel on the requirements of Title I of the ADA. The town will also pay $150,000 in compensatory damages to the complainant and provide the complainant with an affidavit that makes clear to future employers that his termination by the town was through no fault of his own.
Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.
This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana based on a referral from the Indianapolis District Office of the Equal Employment Opportunity Commission. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. The complaint can be viewed here.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. Individuals who believe they may have been victims of discrimination may file a complaint at https://civilrights.justice.gov/.
Justice Department Launches Nationwide Initiative to Combat Unlawful Acts of HateRead the Press Release
Attorney General Merrick B. Garland announced today during the White House United We Stand Summit that over the next year, all 94 U.S. Attorneys’ Offices (USAOs) will host a new nationwide initiative to combat unlawful acts of hate. The United Against Hate program is convening local forums that connect community groups to federal, state, and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate.
“The Justice Department remains committed to enforcing federal hate crime laws,” said Attorney General Merrick B. Garland. “That is why the Justice Department has launched its new United Against Hate program. This initiative brings together community groups, community leaders, and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate.”
The first cohort of 16 USAOs rolling out United Against Hate programs this fall includes the following districts: Arizona, Central District of California, Eastern District of California, Connecticut, Idaho, Middle District of Louisiana, Southern District of New York, Western District of New York, Southern District of Ohio, Middle District of Pennsylvania, South Dakota, Southern District of Texas, Eastern District of Virginia, Vermont, Western District of Washington, and Western District of Wisconsin. The Department will expand the United Against Hate program to all 94 U.S. Attorneys’ Offices next year.
“U.S. Attorneys are critical partners in the Justice Department’s efforts to respond to hate crimes in communities across our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The stronger the ties between communities and law enforcement, the more faith that communities will have that their allegations will be investigated and taken seriously. This moment requires an all-hands-on-deck strategy to fully confront unlawful acts of hate. The United Against Hate program brings together the vast network of civil rights, government, faith, and community-based leaders needed to improve reporting, promote prevention strategies and build the resilience needed to confront hate crimes and incidents.”
“To effectively reduce hate crimes at the local level, it’s important to garner community buy-in,” said Director Monty Wilkinson of the Justice Department’s Executive Office for U.S. Attorneys (EOUSA). “That means building relationships with community leaders and residents, listening to their description of their community’s needs and priorities, and then effectively communicating how USAOs and other Justice Department efforts can address those issues and help to increase public safety. This program will build bridges among community members and law enforcement, helping them to work together to combat unlawful acts of hate.”
Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, United Against Hate promotes robust interaction between community members and law enforcement participants. Program topics include: defining hate crimes versus hate incidents; the importance of reporting unlawful acts of hate; providing options for responding to hate incidents when situations do not constitute a federal or state crime; and distinguishing unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
The launch follows a successful pilot of the program last spring by three USAOs — New Jersey, Massachusetts, and the Eastern District of Washington. Attorney General Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of the Attorney General’s memorandum on improving the Department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.
Development of the United Against Hate program was led by the Civil Rights Division. EOUSA and other components in the Department’s Hate Crimes Enforcement and Prevention Initiative, including the Community Relations Service, the Community Oriented Policing Services Office, the FBI, and the Office of Justice Programs, provided critical assistance in developing the program.
Justice Department Launches Nationwide Initiative to Combat Unlawful Acts of HateRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland announced today during the White House United We Stand Summit that over the next year, all 94 U.S. Attorneys’ Offices (USAOs) will host a new nationwide initiative to combat unlawful acts of hate. The United Against Hate program is convening local forums that connect community groups to federal, state, and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate.
“The Justice Department remains committed to enforcing federal hate crime laws,” said Attorney General Merrick B. Garland. “That is why the Justice Department has launched its new United Against Hate program. This initiative brings together community groups, community leaders, and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate.”
The first cohort of 16 USAOs rolling out United Against Hate programs this fall includes the following districts: Arizona, Central District of California, Eastern District of California, Connecticut, Idaho, Middle District of Louisiana, Southern District of New York, Western District of New York, Southern District of Ohio, Middle District of Pennsylvania, South Dakota, Southern District of Texas, Eastern District of Virginia, Vermont, Western District of Washington, and Western District of Wisconsin. The Department will expand the United Against Hate program to all 94 U.S. Attorneys’ Offices next year.
“It is my hope that this program will help connect our office and federal partners to cities and communities throughout Western Washington, where we can increase awareness and reporting of bias crimes and race-based threats,” said U.S. Attorney Nick Brown. “We all have a role to play in reporting acts of hate or hate speech that may be an early indicator of the troubling violence we are seeing too often in our communities.”
“U.S. Attorneys are critical partners in the Justice Department’s efforts to respond to hate crimes in communities across our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The stronger the ties between communities and law enforcement, the more faith that communities will have that their allegations will be investigated and taken seriously. This moment requires an all-hands-on-deck strategy to fully confront unlawful acts of hate. The United Against Hate program brings together the vast network of civil rights, government, faith, and community-based leaders needed to improve reporting, promote prevention strategies and build the resilience needed to confront hate crimes and incidents.”
“To effectively reduce hate crimes at the local level, it’s important to garner community buy-in,” said Director Monty Wilkinson of the Justice Department’s Executive Office for U.S. Attorneys (EOUSA). “That means building relationships with community leaders and residents, listening to their description of their community’s needs and priorities, and then effectively communicating how USAOs and other Justice Department efforts can address those issues and help to increase public safety. This program will build bridges among community members and law enforcement, helping them to work together to combat unlawful acts of hate.”
Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, United Against Hate promotes robust interaction between community members and law enforcement participants. Program topics include: defining hate crimes versus hate incidents; the importance of reporting unlawful acts of hate; providing options for responding to hate incidents when situations do not constitute a federal or state crime; and distinguishing unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
The launch follows a successful pilot of the program last spring by three USAOs — New Jersey, Massachusetts, and the Eastern District of Washington. Attorney General Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of the Attorney General’s memorandum on improving the Department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.
Development of the United Against Hate program was led by the Civil Rights Division. EOUSA and other components in the Department’s Hate Crimes Enforcement and Prevention Initiative, including the Community Relations Service, the Community Oriented Policing Services Office, the FBI, and the Office of Justice Programs, provided critical assistance in developing the program.
Jury Convicts Four Members of KC Street Gang of Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Four Kansas City, Mo., men who were part of 246, a violent street gang, were convicted by a federal jury for their roles in a drug-trafficking conspiracy.
Ladele D. Smith, also known as “Dellio” and “Dog,” 35; David J. Duncan, IV, also known as “Deej” or “DJ,” 33; Roy Franklin, Jr., 31; and Gary O. Toombs, 42, were found guilty of participating in a conspiracy to distribute heroin, cocaine, oxycodone, and marijuana from Jan. 1, 2011, to Oct. 1, 2019. Smith, Duncan, and Franklin were also convicted of multiple counts that charged them with various drug-trafficking and firearms crimes, to include drive-by shooting and discharging a firearm during a crime of violence. Toombs was convicted of multiple counts that charged him with various drug-trafficking and firearms crimes as well.
The investigation into the 246 street gang, operating in the Kansas City metropolitan area, began in June 2017. The gang is an alliance of gang members from the 24th, 43rd, and 68th streets of Kansas City, Mo. Smith was identified as a leader of the gang, and Duncan, Franklin and Toombs as members of the gang.
Smith and Duncan are local rap artists who often posted to social media platforms, such as YouTube, with references to the 246 gang. In some of the videos, Smith and others show firearms and large amounts of cash. The social media posts also portrayed Smith and others wearing expensive jewelry, watches, hats, clothing and plate carrying vests that depicted 246 gang affiliation.
Members of the 246 gang used a residence in the 4400 block of Kensington, which is within 1,000 feet of George Washington Carver Dual Language School, a public elementary school, for gang and drug-trafficking business. No one utilized the house as a primary or permanent residence. On Oct. 2, 2019, law enforcement officers executed a search warrant at the house and seized heroin as well as two assault rifles and a stolen vehicle that had been used in a drive-by shooting. Officers also found a Glock 9mm semi-automatic pistol and a Century Arms International 7.62x39mm pistol under the couch in the living room and a Glock .40-caliber semi-automatic pistol on the kitchen cabinet.
Smith was arrested at his apartment on Oct 2, 2019. Officers searched his residence and found codeine, $31,601 in cash, and jewelry valued at over $40,000.
Duncan was also arrested at his apartment on Oct. 2, 2019. Officers searched his residence and found a Zastava 7.62 x 39mm rifle, a Norinco 7.62 x 39mm rifle, a Glock 9mm semi-automatic pistol, two loaded rifle magazines, and a loaded handgun magazine under the bed in a bedroom. Officers found $7,100 in cash and four bags of pills that contained oxycodone in the living room.
Smith, Franklin and Toombs also were found guilty of participating in a conspiracy to possess firearms in furtherance of a drug-trafficking crime.
Smith also was found guilty of possessing firearms in furtherance of a drug-trafficking crime, one count of distributing marijuana, one count of distributing marijuana near a school (within 1,000 feet of George Washington Carver Dual Language School), four counts of distributing heroin, and four counts of distributing heroin near a school (within 1,000 feet of George Washington Carver Dual Language School).
Franklin also was found guilty of two counts of distributing marijuana and two counts of distributing marijuana near a school (within 1,000 feet of George Washington Carver Dual Language School).
Duncan also was found guilty of possessing oxycodone the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and five counts of money laundering related to the purchases of money orders with drug-trafficking proceeds.
Toombs also was found guilty of maintaining a residence for the purpose of manufacturing, distributing, and using controlled substances.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about six hours over two days before returning guilty verdicts to U.S. District Judge Greg Kays, ending a trial that began Aug. 29, 2022.
Eleven co-defendants in this case have pleaded guilty and been sentenced.
Sirrico L. Franklin, 31, of Raytown, Mo., was sentenced on May 31, 2022, to five years and eight months in federal prison without parole. Terrance Garner, 36, of Kansas City, Mo., was sentenced on June 21, 2022, to 10 years in federal prison without parole. Joshua Marchbanks, 32, of Kansas City, Mo., was sentenced on May 24, 2022, to three years and 10 months in federal prison without parole. Carleeon D. Lockett, 30, of Kansas City, Mo., was sentenced on May 31, 2022, to six years and eight months in federal prison without parole. Kenneth D. Scott, 26, of Kansas City, Mo., was sentenced on March 24, 2021, to three years and six months in federal prison without parole. Cordell Edwards, 34, of Kansas City, Mo., was sentenced on March 7, 2022, to five years in federal prison without parole. Michael E. Sims, 36, of Kansas City, Mo., was sentenced on June 28, 2022, to five years and five months in federal prison without parole. Cordarrel L. Scott, 36, of Kansas City, Mo., was sentenced on Dec. 15, 2020, to 18 months in federal prison without parole. Marco R. Maddox, 38, of Kansas City, Mo., was sentenced on May 27, 2022, to three years and five months in federal prison without parole. Cornelius Phelps, 36, of Lee’s Summit, Mo., was sentenced on April 27, 2022, to three years and 10 months in federal prison without parole. Herman G. Bell, 67, of Kansas City, Mo., was sentenced on June 22, 2022, to three years of probation.
Co-defendant Martin C. Garner, 35, of St. Louis, Mo., pleaded guilty on May 26, 2022, to his role in the drug-trafficking conspiracy and awaits sentencing.
Under federal statutes, Smith, Duncan, Franklin and Toombs each are subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh Ragner, Mary Kate Butterfield and Ben Hurst. It was investigated by the FBI, the Kansas City, Mo., Police Department, IRS-Criminal Investigation, and the Missouri State Highway Patrol.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Jefferson City Man Indicted in $27.1 Million Dollar Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City man has been indicted by a federal grand jury for a more than $27.1 million fraud scheme that included more than $12.4 million in PPP loans for four businesses, as well as a fraudulent loan for a development in Indiana.
Tod Ray Keilholz, 59, was charged in a 52-count indictment returned under seal by a federal grand jury in Jefferson City on Wednesday, Sept. 14. That indictment was unsealed and made public today after Keilholz was arrested without incident at his home.
Keilholz remains in federal custody pending a detention hearing on Sept. 20, 2022. The court granted the government’s motion for a detention hearing, which cited evidence that Keilholz posed serious risks of flight and obstruction of justice, as well as a threat to the safety of other persons and the community.
The federal indictment charges Keilholz with eight counts of bank fraud, six counts of making false statements to a financial institution, and four counts of making false statements to the Small Business Administration. These charges are related to four fraudulent Paycheck Protection Program loans and a multi-million-dollar fraud scheme related to a development in Valparaiso, Indiana.
The indictment also charges Keilholz with 24 counts of money laundering related to financial transactions of funds derived from his bank fraud scheme, and with 10 counts of aggravated identity theft related to the use of other people’s identities during the commission of his bank fraud scheme.
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments.
Keilholz was the sole owner of TRK Construction, LLC, TRK Valpo, LLC, TL Builders, LLC, and Project Design, LLC.
According to the indictment, Keilholz received a total of $12,430,932 in PPP loans for his four businesses. In each of those loan applications, the indictment says, Keilholz failed to disclose his ownership in the other three businesses, and made materially false and fraudulent claims in the loan applications and supporting documentation. Keilholz allegedly inflated the income of those businesses and claimed payrolls for employees who did not exist or no longer worked for him. Additionally, the indictment says, Keilholz applied for a $7,818,705 PPP loan for TRK Valpo but the loan was denied by the bank.
Keilholz received a $1,706,260 PPP loan for TRK Construction, a $3,618,815 PPP loan for TL Builders, a $3,903,857 PPP loan for Project Design, and a $3,202,000 PPP loan for TRK Valpo.
Keilholz also applied for second round PPP loans for TRK Construction, TL Builders, and Project Design. Each loan was rejected by the bank. Each loan would have been limited to $2 million based on each application.
Keilholz allegedly used PPP loan proceeds for unauthorized purposes other than legitimate payroll, lease and mortgage interest, and utilities as required by the PPP. Keilholz, through TRK Construction, had accrued substantial and delinquent indebtedness to a number of lenders, the indictment says, and all or part of these debts were satisfied by PPP loan proceeds.
The indictment also alleges that Keilholz identified his wife as an employee of TRK Construction, TRK Valpo, and Project Design, while she worked as a full-time employee of the state of Missouri as a budget analyst. Between May and December 2020, Keilholz’s wife received a total of $325,000 from TRK Construction, TRK Valpo, and Project Design funded with PPP loan proceeds.
In addition to the four fraudulent PPP loans, the indictment alleges that the fraud scheme included $3,526,771 in a loan and line of credit related to a development in Valparaiso.
According to the indictment, Keilholz signed a promissory note with Hawthorn Bank in 2017 for $550,000 for TRK Valpo, which financed the purchase of and was secured by the real property in Valparaiso. Keilholz signed another promissory note, for more than $1 million, in 2018 for TRK Construction as a line of credit secured by the Valparaiso property. This line of credit was ultimately increased to $2 million. Keilholz signed another promissory note for $976,771 for TRK Construction as a line of credit in 2018, which was secured by the Valparaiso property and two properties in Jefferson City.
On Feb. 7, 2020, the Hawthorn Bank loan officer responsible for those loans wrote a memorandum to those loan files that stated, in part, that Keilholz “needed to bring the loans current and demonstrate that the project remains viable or the bank would move forward with aggressive collection or liquidation of collateral.” Hawthorn Bank entered into a forbearance agreement with TRK Construction and TRK Valpo, and with Keilholz and his wife as guarantors of the three of those loans, on April 28, 2020.
On July 3, 2020, Keilholz allegedly used PPP loan funds to purchase a $3,302,830 cashier’s check, which was applied to the outstanding balances on the Hawthorn Bank loans.
The indictment alleges that Keilholz provided materially false information to Hawthorn Bank to obtain loans, loan extensions, loan renewals, and loan forbearance. Keilholz allegedly provided Hawthorn Bank with an insufficient funds check for payment of interest on loans.
The indictment also contains a forfeiture allegation, which would require Keilholz to forfeit to the government any property involved in, or derived from the proceeds of, the alleged offenses, including five properties in Jefferson City, one property in Valparaiso, one property in La Porte, Ind., six vehicles (a 2020 Chevrolet Silverado, a 2021 Chevrolet Tahoe, two 2021 Chevrolet Silverados, a 2019 BMW X5, and a 2017 Ford F250 Lariat), a 2020 John Deer ZTrak, a 2020 John Deere Tractor, a Kubota Compact Track Loader, two utility trailers and two enclosed cargo trailers.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General; the Small Business Administration, Office of Inspector General; the Treasury Inspector General for Tax Administration; the FBI; and IRS-Criminal Investigation.
Indiana Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Steven Loren Mandrell, 44, of Indianapolis, Indiana, was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on April 20, 2021, law enforcement officers in Parkersburg pulled over a vehicle driven by Mandrell because it displayed a license plate for a different vehicle. As an officer approached the vehicle, Mandrell was seen leaning toward the steering wheel as if he was concealing something underneath the driver’s seat. Officers searched the vehicle and recovered two firearms under Mandrell’s seat, a Smith and Wesson .40-caliber pistol and a Bul Transmark 9mm pistol. Mandrell admitted to possessing the firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Mandrell knew he was prohibited from possessing a firearm because of his prior felony convictions: for delivery of a controlled substance and unlawful entry of a building in Wood County Circuit Court on January 27, 2010; and for unauthorized use of a motor vehicle and failure to appear in Washington County, Ohio, Common Pleas Court on November 28, 2017.
Mandrell has a long criminal history across four states that totals 26 criminal convictions. His numerous misdemeanor convictions include battery, domestic battery, assault, prohibited possession of a firearm, fleeing from an officer, destruction of property, receiving or transferring stolen goods, contempt of court, and larceny.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-231.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments yesterday. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Tomah Man Charged with Wire Fraud & False Statements
Jonathan Walker, 44, Tomah, Wisconsin, is charged in a 12-count indictment that alleges he engaged in a scheme to defraud the United States and to obtain money by making false representations. Specifically, Walker is charged with 10 counts of wire fraud and 2 counts of making false statements.
The indictment alleges that Walker was the owner and operator of Walker Investment Properties, LLC (WIP) located in Tomah, a mechanical contracting business that offered electrical services and heating, ventilation, and air conditioning (HVAC) services, and that from July 2015 to June 2019, he sought and obtained federal contracts by alleging that WIP was a Service-Disabled Veteran-Owned Small Business (SDVOSB). Federal contracting officers may restrict competition for government contracts to SDVOSBs if the owner of a business is a veteran and has a service-connected disability. The indictment alleges that Walker was neither a veteran, meaning he did not serve in the active U.S. military, naval, air, or space service, nor did he suffer a disability incurred in the line of duty while in active US military, naval, air or space service.
The indictment alleges that the Department of Defense awarded two contracts to WIP totaling $1,927,536.79 for HVAC services and fire alarm installation at Fort McCoy, a U.S. Army installation located in Monroe County, Wisconsin, and that Walker caused WIP to issue invoices for services provided under these contracts that resulted in payments to WIP totaling $482,577.
If convicted, Walker faces a maximum penalty of 20 years in federal prison on each wire fraud charge and a maximum of 5 years on each false statement charge. The charges against him are the result of an investigation by the Department of Defense, Office of Inspector General; the Defense Criminal Investigative Service; and the General Services Administration, Office of Inspector General. Assistant U.S. Attorney Daniel Graber is handling the prosecution.
Three Dane County Residents Charged with Making False Statements During Firearm Purchases
Kassidy Garrett, 21, Tyler Seaton, 20, both of Fitchburg, Wisconsin, and Isaiah Phillips, 18, Madison, Wisconsin, are charged with making false statements during the purchase of firearms. The indictment charges Garrett with 4 counts of making a false statement on a Firearms Transaction Record form required by federal law during the purchase of firearms on four occasions in February, March, and April 2022. The indictment alleges that she indicated on the forms she was the actual buyer of the firearms, but in fact she was not the actual buyer. Making such a false statement during the purchase of a firearm is commonly known as a “straw purchase.”
The indictment also charges Seaton with 4 counts of making false statements by allegedly inducing and causing Garrett to falsely state that she was the actual buyer of the firearms, whereas both Seaton and Garrett knew she was not the actual buyer. Phillips is charged with 2 counts of making false statements by allegedly inducing and causing Garrett to falsely state that she was the actual buyer of the firearms during two of the purchases, whereas both Phillips and Garrett knew she was not the actual buyer.
If convicted, Garrett, Seaton, and Phillips face a maximum penalty of 5 years in federal prison on each count. The charges against them are the result of an investigation by the Fitchburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Monroe Police Department. Assistant U.S. Attorneys Corey Stephan and Kathryn Ginsberg are handling the prosecution.
La Crosse Man Charged with Drug & Gun Crimes
Jade Deeny, 26, La Crosse, Wisconsin, is charged with distributing cocaine, possessing cocaine with the intent to distribute, possessing 50 grams or more of methamphetamine with the intent to distribute, and using and maintaining a place for the distribution of cocaine. The indictment also charges him with possessing loaded firearms in furtherance of a drug trafficking crime and with being a felon in possession of a firearm. The indictment alleges that these offenses occurred in June 2022.
If convicted, Deeny faces a maximum penalty of 20 years of the charges of distributing cocaine and possessing cocaine for distribution, a mandatory minimum of 5 years and a maximum of 40 years on the charge of possessing 50 grams or more of methamphetamine for distribution, and a maximum of 20 years on the charge of maintaining a drug house. The charge of possessing loaded firearms in furtherance of a drug trafficking crime carries a mandatory minimum penalty of 5 years and a maximum of life. Any sentence imposed on this charge must be served consecutively to any other prison sentence imposed. The maximum penalty on the charge of being a felon in possession of a firearm is 10 years.
The charges against Deeny are the result of an investigation by the La Crosse Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
The charges against Garrett, Seaton, Phillips, and Deeny are brought as 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. Justice 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.
North Carolina Man Charged with Receiving Child Pornography
Christopher Bell, 37, Lumberton, North Carolina, formerly of Fond du Lac, Wisconsin, is charged with receiving child pornography. The indictment alleges that on April 18, 2022, Bell received an image sent via Snapchat of a minor engaging in sexually explicit conduct.
If convicted, Bell faces a mandatory minimum penalty of 5 years and a maximum of 20 years in federal prison. The charge against him is the result of an investigation by the Wisconsin Rapids Police Department and the Fayetteville, North Carolina office of the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Washburn County Woman Charged with Tax Crimes
Deborah Brown, 67, Birchwood, Wisconsin, is charged with 13 counts of failing to pay over to the Internal Revenue Service taxes due to the United States on behalf of Omni Designs International, Inc. (Omni), located in Birchwood. The indictment alleges that Brown, as the co-owner and operator of the business, was responsible for bookkeeping and made the financial decisions for the company, including the payment of employment taxes.
The indictment alleges that from July 1, 2016 to September 30, 2019, Brown failed to pay over to the Internal Revenue Service payroll taxes due to the United States on behalf of Omni and its employees for 13 consecutive quarters. The indictment alleges that Brown failed to pay approximately $239,000 in income, Social Security, and Medicare taxes withheld from wages paid to Omni’s employees.
If convicted, Brown faces a maximum penalty of 5 years in federal prison on each count. The charges against her are the result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Daniel Graber is handling the prosecution.
Georgia Pair Plead Guilty to Conspiracy to Use False or Counterfeit PassportsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DANIELLE DORSETT, age 54, and her brother, BYRON J. LAFOREST, age 50, both residents of Atlanta, Georgia, pleaded guilty before U.S. District Judge Carl J. Barbier to conspiracy to use false or counterfeit passports. Judge Barbier scheduled their sentencings for January 5, 2023.
According to court records, beginning in November 2021, DORSETT and LAFOREST obtained counterfeit passport cards with the names and other details of victims whose personal identifying information they stole. While these cards had victims’ personal information, they had DORSETT’s or LAFOREST’s photograph. DORSETT and LAFOREST then used these cards to withdraw money from their victims’ bank accounts. Over the course of the conspiracy, DORSETT and LAFOREST used the personal information of at least six individuals to withdraw (or attempted to withdraw) funds from these individuals’ accounts. They withdrew money from bank branches in Florida, Louisiana, and Texas.
The scheme drew to a close in early 2022. On January 28, 2022, DORSETT was arrested by Jefferson Parish Sheriff’s Office deputies while attempting to obtain a victim’s bank statement at an IberiaBank branch in Harvey, Louisiana. DORSETT was released on bond after her arrest. Approximately two weeks later, on February 14, 2022, she and LAFOREST were arrested together at a hotel in New Orleans East by federal agents. In the hotel room, agents recovered several additional false passport cards that portrayed LAFOREST’s photograph, but provided the victims’ personal identifying information instead.
DORSETT and LAFOREST each face a sentence of up to five years in prison, a up to a $250,000 fine, up to three years of supervised release after imprisonment and a mandatory $100 special assessment fee, pursuant to Title 18, United States Code, Section 1029(a)(2).
U.S. Attorney Evans praised the work of the Diplomatic Security Service’s New Orleans Field Office in investigating this matter. U.S. Attorney Evans thanked the Jefferson Parish Sheriff’s Office and the District Attorney’s Office for the 24th Judicial District for their assistance in this prosecution. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.
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GOL Linhas Aéreas Inteligentes S.A. Will Pay over $41 Million in Resolution of Foreign Bribery Investigations in the United States and BrazilRead the Press Release
GOL Linhas Aéreas Inteligentes S.A. (GOL), an airline headquartered in São Paulo, Brazil, will pay more than $41 million to resolve parallel bribery investigations by criminal and civil authorities in the United States and Brazil. According to court documents, GOL entered into a three-year deferred prosecution agreement (DPA) with the Department of Justice in connection with a criminal information filed in the District of Maryland charging the company with conspiracy to violate the anti-bribery and books and records provisions of the Foreign Corrupt Practices Act (FCPA).
Pursuant to the DPA, GOL will pay a criminal penalty of $17 million. The department has agreed to credit up to $1.7 million of that criminal penalty against an approximately $3.4 million fine the company has agreed to pay to authorities in Brazil in connection with related proceedings to resolve an investigation by the Controladoria-Geral da União (CGU) and the Advocacia-Geral de União (Attorney General’s Office). In addition, GOL will give up approximately $24.5 million over two years as part of the resolution of a parallel investigation by the U.S. Securities and Exchange Commission (SEC).
“GOL paid millions of dollars in bribes to foreign officials in Brazil in exchange for the passage of legislation that was beneficial to the airline,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The company entered into fraudulent contracts with third-party vendors for the purpose of generating and concealing the funds necessary to perpetrate this criminal conduct, and then falsely recorded the sham payments in their own books. Today’s resolution demonstrates the Department of Justice’s commitment to holding accountable companies that corrupt the functions of government for their own financial gain.”
“Our office’s strong working relationship with the Department of Justice’s Fraud Section demonstrates our commitment to weed out corruption by companies that operate throughout Maryland,” said U.S. Attorney Erek Barron for the District of Maryland. “I am committed to ensuring that any company operating in this District does so lawfully and ethically without corrupt conduct.”
“Companies bribing their way to profits will ultimately pay the price for their crimes,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “GOL paid off foreign officials to pass favorable legislation and then tried to conceal its bribes as legitimate transactions. Today’s settlement is proof that the FBI and our law enforcement partners will work to eliminate corruption anywhere it occurs, whether at home or abroad.”
According to the company’s admissions and court documents, between 2012 and 2013, GOL conspired to offer and pay approximately $3.8 million in bribes to foreign officials in Brazil. Specifically, GOL caused multiple bribe payments to be made to various officials in Brazil to secure the passage of two pieces of legislation favorable to GOL. The legislation involved certain payroll tax and fuel tax reductions that financially benefitted GOL, along with other Brazilian airlines.
According to court documents, in order to effectuate the bribery scheme, a member of GOL’s Board of Directors caused GOL to enter into sham contracts with, and make payments to, various entities connected to the relevant Brazilian officials. GOL maintained books and records that falsely listed the corrupt payments as legitimate expenses, including as advertising expenses and other services.
As part of the DPA, GOL has agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, under the agreement, GOL agreed to continue to enhance its compliance program and provide reports to the department regarding remediation and the implementation of compliance measures for the term of the DPA.
The government reached this resolution with GOL based on a number of factors, including, among others, the nature, seriousness, and pervasiveness of the offense. GOL received full credit for its cooperation with the department’s investigation, which included, among other things, timely providing the facts obtained through the company’s internal investigation – which included reviewing voluminous documents, interviewing witnesses, conducting background checks, and testing over two thousand transactions. The company promptly engaged in remedial measures by, among other things, redesigning its entire anti-corruption program. Accordingly, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the bottom of the applicable guidelines fine range. Due to GOL’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, however, GOL and the department agreed, consistent with the department’s inability to pay guidance, that the appropriate criminal penalty is $17 million.
The FBI’s Los Angeles Field Office is investigating the case. Assistant Chief Derek J. Ettinger and Trial Attorney Joseph McFarlane of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorney David I. Salem of the District of Maryland, are prosecuting the case. Authorities in Brazil provided assistance in this matter, as did the Criminal Division’s Office of International Affairs.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Fort Wayne Man Convicted of Firearm OffenseRead the Press Release
FORT WAYNE – Henry Underwood, 28 years old, of Fort Wayne, Indiana, was found guilty following a three-day jury trial presided over by United States District Court Judge Holly A. Brady, announced United States Attorney Clifford D. Johnson.
Underwood was found guilty of the single-count Indictment charging him with being a convicted felon in possession of a firearm and ammunition, for conduct occurring in Fort Wayne, Indiana, in December of 2019.
Underwood will be scheduled for sentencing by separate order of the Court. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and the Indiana State Police laboratory. This case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Anthony W. Geller.
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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Former head of Gulf Cartel receives life sentence for importing kilos of drugsRead the Press Release
BROWNSVILLE, Texas – A 51-year-old Mexican national who was head of Cartel del Golfo (CDG) from 2003 to 2012 has been ordered to prison and to pay millions for his role in conspiring to distribute cocaine and marijuana from Mexico into the United States, announced U.S. Attorney Jennifer B. Lowery.
Jorge Costilla-Sanchez pleaded guilty Sept. 26, 2017.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Costilla-Sanchez to serve the rest of his life in federal prison. At the hearing, the court heard additional information detailing how Costilla-Sanchez profited $5 million from drug trafficking. He was ordered to pay a money judgment in that amount. In handing down the sentence, Judge Rodriguez noted Costilla-Sanchez’s extensive involvement in trafficking illegal drugs into the country. The court commented that during the 10 years Costilla-Sanchez was the head of the CDG, he lead a violent criminal organization, using guns and intimidation to maintain control of their illegal drug trafficking enterprise and resorting to violence and killing to maintain power.
“This was a long, but very important case to the district and especially our partners in Brownsville," said Lowery. "The life sentence speaks for itself. Justice has now been served.”
“Today’s sentencing is the culmination of years of relentless work by Homeland Security Investigations (HSI) and its partners targeting the Cartel del Gulfo,” said Acting Special Agent in Charge Craig Larrabee of HSI - San Antonio. “This investigation highlights HSI’s dedication to go after cartel members importing dangerous drugs into our communities. This sentence will send a resounding message that transnational criminal organizations are being continuously investigated and their leaders will be brought to justice.”
“High-ranking drug trafficking leaders like Costilla-Sanchez are not immune from facing stiff punishments,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA) - Houston Division. “Costilla-Sanchez brought poison to our communities, and our collaborative efforts with our local and federal partners brought him to prison. We will continue to aggressively go after any drug trafficking organization wanting to profit from our communities.”
“This sentencing sends a clear message that organized drug trafficking organizations and threats against law enforcement will not be tolerated,” said FBI Special Agent in Charge Oliver E. Rich Jr. “The FBI continues to work alongside our partners to pursue and prosecute the leadership of drug trafficking cartels and dismantle their organizations. We thank the Organized Crime Drug Enforcement Task Force (OCDETF) for their collective efforts to bring this high-level criminal to justice.”
Costilla-Sanchez aka El Cos, Doble X and Dos Equis became head of CDG after the arrest of former CDG leader Osiel Cardenas in 2003. Prior to joining the cartel, Costilla-Sanchez was a municipal police officer in Matamoros, Tamaulipas, Mexico.
He was arrested in 2012 in Mexico at the request of the United States and in 2015. Costilla-Sanchez also previously pleaded guilty to threatening two federal agents from the FBI and while he was being investigated for drug trafficking in 1999.
CDG is a Mexican transnational criminal organization operating in Tamaulipas, Mexico. During the time Costilla-Sanchez was the leader, he was responsible for importing over 10,000 kilograms of cocaine and 140,000 kilograms of marijuana to the United States.
Costilla-Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI, DEA and FBI conducted the OCDETF operation with the assistance of the U.S. Marshals Service and IRS-Criminal Investigation.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Jody Young and Karen Betancourt prosecuted the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Costilla-Sanchez to the United States.