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13 October 2022
Justice Department files race discrimination and retaliation lawsuit against Bartow CountyRead the Press Release
ATLANTA - The Justice Department announced that it has filed a lawsuit against Bartow County, Georgia, alleging that the County violated Title VII of the Civil Rights Act of 1964 when it subjected former employee Carlen Loyal to a racially hostile work environment, retaliated against former employee Bobby Turner, and fired both men, who are Black. Title VII is a federal statute that prohibits employers from discriminating on the basis of sex, race, color, national origin and religion. Title VII also forbids employers from retaliating against employees for complaining about discrimination in the workplace or otherwise asserting their rights under Title VII.
“No one should be forced to labor in an environment where employers condone racial slurs and employees are expected to tolerate them,” said U.S. Attorney Ryan K. Buchanan. “It is also unacceptable for an employer to foster a work environment where employees with the courage to report such abhorrent behavior experience retaliation from supervisors and face termination of their jobs. Our office will vigorously and continuously leverage our resources to address this type of illegal discrimination in the workplace.”
“No employee should have to endure racial harassment or retaliation in the workplace, especially racial slurs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Punishing employees for reporting harassment and discrimination to their supervisors is illegal and undermines the basic statutory protections designed to identify and root out racial harassment in workplaces across the country.”
According to U.S. Attorney Buchanan, the charges, and other information presented in court: Loyal was employed at the County’s Road Department for almost 10 years. Loyal’s brother-in-law, Turner, was also employed by the Road Department for several years. In 2019, Loyal complained to his supervisor that a white co-worker sent him a text message referring to him as an “n-word.”
After Loyal’s complaint, the human resources (HR) director called Loyal into his office, where he subjected Loyal to additional, severe racial harassment in front of the employee who sent the racist text message. The HR director also demanded to know whether Loyal had informed anyone else of the text message, and Loyal responded that he had informed Turner. Just over two weeks later, the County accused Loyal and Turner of misconduct and terminated their employment. The complaint alleges that Loyal and Turner, each of whom had been promoted several times, had no prior history of discipline with the County before Loyal complained about race discrimination.
Loyal and Turner filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Atlanta District Office investigated the charges and found reasonable cause that the County violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The United States, through this lawsuit, seeks to require the County to develop and implement policies that would prevent discrimination and retaliation. The United States also seeks monetary relief for Loyal and Turner to compensate them for damages that they sustained as a result of the alleged discrimination and retaliation.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
This case is being handled by Assistant U.S. Attorney Trishanda Treadwell and Senior Trial Attorney Jeremy Monteiro of the DOJ Civil Rights Division’s Employment Litigation Section.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Justice Department Secures Settlement with Maryland Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice today announced that it has secured a settlement agreement with Professional Maintenance Management (PMM), a cleaning and janitorial services company based in Maryland. The settlement resolves the department’s determination that PMM discriminated against its non-U.S. citizen workers when checking their permission to work in the United States, in violation of the Immigration and Nationality Act (INA).
“Employers cannot treat employees differently because of citizenship, immigration status, or national origin when verifying their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce the law to ensure that workers do not face discrimination when proving their permission to work in the United States.”
The department’s investigation determined that PMM routinely required specific documents from newly-hired non-U.S. citizens to prove they had permission to work in the United States. Specifically, the department found that PMM asked lawful permanent residents to show their permanent resident cards (sometimes known as “green cards”), and asylees and refugees to show their employment authorization documents (sometimes known as “work permits”), to prove their permission to work. At the same time, PMM allowed U.S. citizens to choose from among various acceptable document types.
Under the terms of the settlement, PMM will pay a civil penalty of $300,000 to the United States. Additionally, PMM will train staff on the INA’s anti-discrimination provision, change its policies, and be subject to departmental monitoring for a three-year period.
Federal law allows workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status, or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific documents because of a worker’s citizenship, immigration status or national origin. Indeed, many non-U.S. citizens, including lawful permanent residents, refugees and asylees, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens (such as driver’s licenses and unrestricted social security cards). Employers should allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid discrimination when verifying permission to work on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Finds Civil Rights Violations by Orange County, California, District Attorney’s Office and Sheriff’s Department in Use of Jailhouse InformantsRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division announced today, based upon a thorough investigation focused on custodial informant activity from 2007 through 2016, that the Orange County District Attorney’s Office and the Orange County Sheriff’s Department operated a custodial informant program that systematically violated criminal defendants’ Sixth Amendment right to counsel and Fourteenth Amendment right to due process of law.
Specifically, the department found reasonable cause to believe that Orange County prosecutors and Sheriff deputies violated the Sixth Amendment by using jailhouse informants to elicit incriminating statements from people who had been arrested, after those individuals had been charged with a crime. The department also found that Orange County prosecutors violated the Fourteenth Amendment by failing to disclose exculpatory evidence about those custodial informants to criminal defendants. The department believes that OCDA and OCSD stopped using informants as agents of law enforcement to obtain statements from charged defendants in the Orange County Jail in 2016.
The Justice Department provided a comprehensive, written report of its investigative findings to the Orange County District Attorney and Sheriff. The report explicitly acknowledges the reforms that the District Attorney’s Office and the Sheriff’s Department have implemented already, and identifies the additional remedial measures that the department believes are necessary to fully address its findings.
“All persons who are accused of a crime are guaranteed basic constitutional protections that are intended to ensure fairness in criminal proceedings and due process of law,” said Assistant Attorney General Kristen Clarke. “Prosecutors and law enforcement officers have an obligation to uphold these rights in their fight against crime and in their pursuit of justice, including in the way that they use custodial informants against criminal defendants. The failure to protect these basic constitutional guarantees not only deprives individual defendants of their rights, it undermines the public’s confidence in the fundamental fairness of criminal justice systems across the county.”
The evidence uncovered by the department reveals that custodial informants in the Orange County Jail system acted as agents of law enforcement to elicit incriminating statements from defendants represented by counsel, and that for years Orange County Sheriff deputies maintained and concealed systems to track, manage, and reward those custodial informants. The evidence also reveals that Orange County prosecutors failed to seek out and disclose exculpatory information regarding custodial informants to defense counsel.
The department opened this investigation in 2016. The department reviewed thousands of pages of documents, conducted numerous site visits and interviewed dozens of witnesses, including Orange County prosecutors. The department also monitored developments in criminal cases, including those that culminated recently. Orange County officials cooperated throughout the investigation.
The Special Litigation Section of the Department of Justice Civil Rights Division in Washington, D.C., conducted the investigation pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The statute allows the department to remedy such misconduct through civil litigation.
The Special Litigation Section will be contacting members of the Orange County community for input on reforms to address the department’s findings. Individuals may also submit recommendations by email at [email protected].
Information specific to the Civil Rights Division’s Police Reform Work can be found here: /media/872116/dl?inline.
Justice Department Files Race Discrimination and Retaliation Lawsuit Against Bartow County, GeorgiaRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Bartow County, Georgia, alleging that the County violated Title VII of the Civil Rights Act of 1964 when it subjected former employee Carlen Loyal to a racially hostile work environment, retaliated against former employee Bobby Turner, and fired both men, who are Black. Title VII is a federal statute that prohibits employers from discriminating on the basis of sex, race, color, national origin and religion. Title VII also forbids employers from retaliating against employees for complaining about discrimination in the workplace or otherwise asserting their rights under Title VII.
According to the complaint, filed in the U.S. District Court for the Northern District of Georgia, Loyal was employed at the County’s Road Department for almost 10 years. Loyal’s brother-in-law, Turner, was also employed by the Road Department for several years. In 2019, Loyal complained to his supervisor that a white co-worker sent him a text message referring to him as an “n-word.” After Loyal’s complaint, the human resources (HR) director called Loyal into his office, where he subjected Loyal to additional, severe racial harassment in front of the employee who sent the racist text message. The HR director also demanded to know whether Loyal had informed anyone else of the text message, and Loyal responded that he had informed Turner. Just over two weeks later, the County accused Loyal and Turner of misconduct and terminated their employment. The complaint alleges that Loyal and Turner, each of whom had been promoted several times, had no prior history of discipline with the County before Loyal complained about race discrimination.
“No employee should have to endure racial harassment or retaliation in the workplace, especially racial slurs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Punishing employees for reporting harassment and discrimination to their supervisors is illegal and undermines the basic statutory protections designed to identify and root out racial harassment in workplaces across the country.”
“No one should be forced to labor in an environment where employers condone racial slurs and employees are expected to tolerate them,” said U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia. “It is also unacceptable for an employer to foster a work environment where employees with the courage to report such abhorrent behavior experience retaliation from supervisors and face termination of their jobs. Our office will vigorously and continuously leverage our resources to address this type of illegal discrimination in the workplace.”
Loyal and Turner filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Atlanta District Office investigated the charges and found reasonable cause that the County violated Title VII. After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.
The United States, through this lawsuit, seeks to require the County to develop and implement policies that would prevent discrimination and retaliation. The United States also seeks monetary relief for Loyal and Turner to compensate them for damages that they sustained as a result of the alleged discrimination and retaliation.
The full and fair enforcement of Title VII is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
This case is being handled by Senior Trial Attorney Jeremy Monteiro of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Trishanda L. Treadwell for the Northern District of Georgia.
Justice Department Awards $17.5 Million to Support Project Safe NeighborhoodsRead the Press Release
The Department of Justice announced today that it has awarded almost $17.5 million in grants to support the Project Safe Neighborhoods Program. Funding will support efforts in jurisdictions across the country to address the epidemic of gun crime and serious violence.
The Bureau of Justice Assistance (BJA), part of the department’s Office of Justice Programs (OJP), will administer the grant awards, which are being made to state and local agencies in partnership with U.S. Attorneys’ Offices.
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 180 law enforcement agencies across the nation, allowing those agencies to hire 973 additional full-time law enforcement professionals.
“As law enforcement agencies across the nation continue to experience recruitment and retention challenges, we are proud to provide these resources to help alleviate those challenges confronting the profession,” said COPS Office Acting Director Robert Chapman.
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers and deputies to enhance their community policing capacity and crime prevention efforts. Of the 180 agencies awarded grants today, nearly half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 30 agencies will seek to address high rates of gun violence; 26 will focus on other areas of violence; and 28 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 136,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY22, COPS received 711 applications requesting more than 2,800 law enforcement positions.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Jury Convicts Philomath Man of Failing to Register as a Sex OffenderRead the Press Release
PORTLAND, Ore.—On October 12, 2022, a federal jury in Portland found a Philomath, Oregon man guilty for failing to register as a sex offender.
Daniel Lynn Goering-Runyan, 37, was found guilty of one count of failing to register as a sex offender in violation of the Sex Offender Registration and Notification Act (SORNA).
“The Sex Offender Registration and Notification Act is an important law enforcement tool that helps break cycles of victimization in our communities. This case is a great example of the incredible work the U.S. Marshals Service does every day to locate and apprehend sex offenders who fail to register. Our communities are safer because of their dedication,” said Natalie Wight, U.S. Attorney for the District of Oregon.
According to court documents, in September 2014, Goering-Runyan was sentenced to 12 to 15 years in Nebraska state prison after he was convicted of sexually assaulting a five-year-old girl. At his sentencing hearing, Goering-Runyan acknowledged, on the record, that his conviction would require him to register as a sex offender. He reviewed and signed five more notices of his sex-offender registration obligations while in prison. Upon his release from prison in September 2021, Goering-Runyan signed a certificate of service acknowledging his receipt of a letter from the Nebraska State Patrol advising him of his lifetime requirement to register as a sex offender.
Upon his release from prison, Goering-Runyan properly registered as a sex offender in Nebraska. Two months later, in late November 2021, he told Nebraska officials he was relocating to Houston, Texas. A Nebraska official told him to register as a sex offender with the sheriff in Houston within three days of his arrival. Goering-Runyan never registered. Three weeks later, he traveled by bus to Corvallis, Oregon, arriving on December 25, 2021.
Over the next four months, Goering-Runyan lived in several places in and around Corvallis. He properly obtained an Oregon Identification from the Department of Motor Vehicles in early May, declaring himself an Oregon resident, but never registered as a sex offender as required under Oregon and federal law.
On May 3, 2022, a federal grand jury in Portland returned an indictment charging Goering-Runyan with one count of failing to register as a sex offender. The following day, on May 4, 2022, he was arrested by the Corvallis Police Department.
Failing to register as a sex offender is punishable by up to 10 years in federal prison. Goering-Runyan will be sentenced on November 30, 2022, by U.S. District Court Chief Judge Marco A. Hernández.
This case was investigated by the U.S. Marshals Service in Portland and Omaha, Nebraska with assistance from the Oregon State Police, the Corvallis and Philomath Police Departments, the Benton County Sheriff’s Office, and the Lancaster County (Nebraska) Sheriff’s Office. It was prosecuted by Bryan Chinwuba, Assistant U.S. Attorney for the District of Oregon.
The Sex Offender Registration and Notification Act (SORNA) is Title I of the Adam Walsh Child Protection and Safety Act of 2006. The act provides a comprehensive set of minimum standards for sex offender registration and notification in the United States. The U.S. Marshals Service is the federal government’s lead law enforcement agency for sex offender and fugitive investigations.
Jessup Felon Is Sentenced to 13 Years in Federal Prison for Possessing Fentanyl with Intent to Distribute and for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – U.S. District Judge Julie R. Rubin sentenced Edward Burton, age 38, of Jessup, Maryland, yesterday to 13 years in federal prison, followed by four years of supervised release, after Burton pleaded guilty to federal charges of possession of more than 400 grams of fentanyl with intent to distribute and to being a felon in possession of a firearm.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Anne Arundel County Police Chief Amal E. Awad; Chief Melissa R. Hyatt of the Baltimore County Police Department; Anne Arundel County State’s Attorney Anne Colt Leitess; and Baltimore County State’s Attorney Scott Shellenberger.
According to his guilty plea, the DEA investigated a drug-trafficking organization operating in Baltimore, including Burton. On December 15, 2021, law enforcement searched a stash house used by Burton and his co-conspirators and recovered approximately 431.25 grams of mixtures or substances containing fentanyl, including a bag containing 6,450 gelatin capsules containing 231.67 gram of fentanyl and another bag containing 644 gelatin capsules containing 113 grams of fentanyl, as well as narcotics packaging materials and other drug paraphernalia. The search of the stash house also recovered seven firearms and ammunition, including three 9mm handguns; an AR-15 style rifle; a .45-caliber handgun; a 7.62 x 39mm caliber pistol; a .40-caliber rifle; .45-caliber magazines; and 7.62 x 39mm and 9mm ammunition. Law enforcement also recovered $4,376 in cash and jewelry valued at $13,550, which constituted proceeds of drug trafficking.
That same day, search warrants were executed at Burton’s home and at a storage unit that he rented. From the residence, law enforcement recovered: a .380 semi-automation handgun, loaded with eight rounds of ammunition; a .38-caliber revolver; $14,920 in cash; and jewelry valued at $447,950. From the storage unit investigators recovered: a 9mm handgun loaded with 13 rounds of ammunition; two .40-caliber handguns, one loaded with 13 rounds of ammunition, and the other with a large extended magazine loaded with 20 rounds of ammunition; and a 2019 Mercedes Benz AMG GT 63S, with Maryland registration listing Burton as the owner of the vehicle.
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 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 priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through relationships 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 specific mission of the Baltimore OCDETF Strike Force is to reduce violent, drug-related, and gang crime in the Baltimore area and surrounding region.
United States Attorney Erek L. Barron commended the DEA, the ATF the Anne Arundel County Police Department, the Baltimore Police Department, the Anne Arundel County State’s Attorney’s Office, and the Baltimore County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Joan C. Mathias and Ariel Evans, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Iowa Man Pleads Guilty to Methamphetamine ChargesRead the Press Release
A man who conspired to distribute methamphetamine and distributed methamphetamine pled guilty October 12, 2022, in federal court in Sioux City.
Jose Duenas-Topete, 29, from Hawarden, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and one count of distributing methamphetamine.
At the plea hearing, Duenas-Topete admitted that from January 2020 and April 2, 2022, he and others in the conspiracy distributed at least 4.5 kilograms of pure methamphetamine in the Sioux City, Iowa area. On April 2, 2022, law enforcement conducted a controlled drug buy operation from defendant and his co-conspirators. Duenas-Topete distributed over 3 kilograms of pure methamphetamine in exchange for $5,000. Law enforcement conducted a traffic stop of the vehicle Duenas-Topete was a passenger and seized approximately one pound of methamphetamine near where defendant was sitting. Duenas-Topete further admitted that he received four shipments, each containing 5-6 pounds of methamphetamine from sources in Mexico to distribute to persons in the Sioux City and Plymouth County, Iowa areas.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Duenas-Topete remains in custody of the United States Marshal pending sentencing. On each conviction, Duenas-Topete faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4026.
Follow us on Twitter @USAO_NDIA.
Investiture Ceremony Held for United States Attorney William S. ThompsonRead the Press Release
CHARLESTON, W.Va. – William S. Thompson was formally sworn in today as the United States Attorney for the Southern District of West Virginia, and he pledged to continue the office’s mission of promoting justice and fighting crime throughout the district.
“My focus is on making our communities safer and more secure, and to hold people accountable for their actions,” Thompson told the members of the federal judiciary, distinguished guests, family and other well-wishers at his investiture ceremony.
Thompson affirmed his commitment to targeting the mid- and upper-level distributors of illegal drugs while supporting and working with recovery and prevention groups. Thompson noted that the epidemic of fatal drug overdoses remains all too real in the district: the latest casualties include a former baseball teammate of his son who died the previous evening.
“A priority of this office is to go after the drugs that are actually killing our communities, such as fentanyl, other opiates and meth,” Thompson said. “This is where a lot of the violence in our communities is actually coming from.”
Combating white-collar crime is also a priority, as the U.S. Attorney’s Office is best equipped to tackle such cases, Thompson said. He cited the office’s recent successful prosecution of foreign nationals, internet-based romance fraud schemes, and COVID-19 relief fraud.
As United States Attorney, Thompson is the chief law enforcement officer in the southern half of the state. Thompson leads an office of 34 attorneys and 41 non-attorney personnel located in offices in Charleston, Huntington, and Beckley. The office is responsible for prosecuting federal crimes in the district including crimes related to terrorism, public corruption, child exploitation, firearms, and narcotics. The office also defends the United States in civil cases and collects debts owed to the United States.
Thompson praised the ability and professionalism of the people in his office, citing their achievement in the past year. Thompson noted that after taking the helm, he assigned training duties to three of the office’s attorneys and had a fourth detailed to the January 6 prosecutions.
“I fully expected our caseload numbers to take a significant hit this year as a result, and I was going to be okay with that,” Thompson said. “However, the opposite was true. Our number of cases filed in my first year actually rose 48 percent, while nationwide cases in U.S. Attorney Offices went down by over 9 percent.”
Thompson recalled that he was approached about serving as U.S. Attorney on January 6, 2021, and explained that the events that day “solidified my resolve to be the best United States Attorney I could be.” Alongside drugs and white-collar crime, domestic terrorism is also a top priority of his office, Thompson said.
“Fortunately, this district has not been touched by this significantly yet, but that is a phone call I dread every day,” Thompson said.
United States Senator Joe Manchin spoke during the ceremony and hailed the selection of Thompson as U.S. Attorney.
“Today, we had the honor of celebrating Will Thompson’s dedication to the great state of West Virginia and the rule of law,” Manchin said. “Will’s work speaks for itself, and I’m pleased to be able to celebrate my friend today at his investiture ceremony. Congratulations to Will and Keri on this new endeavor and thank you for your continued service to the Mountain State.”
United States Senator Shelley Moore Capito also lauded Thompson’s selection.
“U.S. Attorney Thompson’s professional experience make him uniquely qualified to serve West Virginians in this capacity,” said Capito. “He has shown great leadership and professionalism throughout his career, and I am confident in his ability to uphold the rule of law and protect our communities here at home. I congratulate U.S. Attorney Thompson on his investiture today, and know he will continue to serve West Virginia honorably.”
Thompson was nominated by President Joseph R. Biden, Jr., on August 10, 2021. The United States Senate confirmed Thompson by voice vote on October 5, 2021. Today’s ceremony follows a private swearing-in conducted on October 13, 2021.
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.
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High-Ranking Ventura County Gang Member Linked to Mexican Mafia Sentenced to 13½ Years in Prison for Drug Trafficking OffensesRead the Press Release
LOS ANGELES – A high-ranking member of the Oxnard-based Surtown Chiques street gang was sentenced today to 162 months in federal prison for attempting to secure control of drug trafficking in Ventura County and extorting “taxes” on behalf of the Mexican Mafia prison gang.
Armando “Criminal” Molina, 39, of Ventura, was sentenced by United States District Judge John A. Kronstadt.
At the conclusion of a four-day trial in September 2019, a federal jury found Molina guilty of one count of conspiracy to distribute methamphetamine and five counts of distribution of methamphetamine.
Molina was arrested in November 2013 as part of Operation “SuperNova,” a multi-agency task force investigation that targeted Mexican Mafia-affiliated street gangs in Ventura County.
The federal criminal complaint on which Molina was arrested targeting “shotcallers” of Ventura County street gangs. The criminal complaint details a year-long undercover investigation and outlines a series of narcotics transactions that led to the seizure of more than two pounds of methamphetamine and quantities of heroin that were being sold on the streets of Ventura County.
The drugs were supplied by a drug trafficking organization controlled by Mexican Mafia member Martin Madrigal-Cazares. Local street gangs communicated with the head of the organization in Mexico, while controlling narcotics sales and collecting “taxes” on behalf of the Mexican Mafia in Ventura County.
From October 2012 and March 2013, Molina and his co-conspirators sold approximately 267 grams of pure methamphetamine to a confidential informant working for an FBI task force.
“[Molina] was more than some street dealer doling out methamphetamine to addicts to make a buck,” prosecutors argued in a sentencing memorandum. “Rather, he was a key member in a broader, more dangerous criminal enterprise that sought to dominate profitable criminal conduct over the Ventura County region.”
On the eve of Molina’s trial in 2019, a co-defendant, Frank Joshua “Villain” Ruiz, 40, of Ventura County, pleaded guilty to one count of conspiracy to distribute methamphetamine. In February 2020, Judge Kronstadt sentenced Ruiz to 135 months in federal prison.
The investigation was conducted jointly by the FBI, the Ventura Police Department, and the Oxnard Police Department. The Ventura County-Multi-Agency Gang Task Force is one of many FBI Safe Streets Task Forces throughout the United States, funded for the purpose of assisting local police in identifying and addressing violent crime in America.
Assistant United States Attorney Mack E. Jenkins, Chief of the Public Corruption and Civil Rights Section, prosecuted this case.
Greensburg Man Sentenced to 30 Years in Federal Prison for Sexual Exploitation of a ChildRead the Press Release
INDIANAPOLIS – Anthony Laquinn Thomas, 53, of Greensburg, Indiana, was sentenced late yesterday to 30 years in federal prison after pleading guilty to sexual exploitation of a child.
According to court documents, on April 24, 2019, police went to the residence of Minor Victim 1 to check her welfare because Minor Victim 1’s mother was concerned when she learned Minor Victim 1 was not in school. Minor Victim 1 was under thirteen years old at the time. Law enforcement officers located Minor Victim 1. Minor Victim 1 spoke to police and was later interviewed at a at a Children’s Advocacy Center. Minor Victim 1 disclosed that Thomas sexually abused her and used his cell phone to take naked pictures of her and show her pornographic images.
A probation search of Thomas’s residence was conducted, and Thomas was placed under arrest after police found evidence of methamphetamine use in the home. Thomas’s two cell phones were seized by police and searched after police obtained a search warrant. Police were able to lawfully access the information stored on Thomas’s cell phones and found numerous images of Minor Victim 1 engaged in sexually explicit conduct. Thomas’s Google account was also searched by police, and it revealed nine images of Minor Victim 1 engaged in sexually explicit conduct.
Thomas was on probation at the time of these offenses and had failed a recent drug screen. Thomas has a lengthy criminal history with convictions including drug dealing, drug possession, and battery of a child.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Jeffrey Adams, Special Agent in Charge of the U.S. Secret Service; Superintendent Douglas G. Carter of the Indiana State Police; and Mike McNealy, Chief of the Greensburg Police Department; made the announcement.
The U.S. Secret Service, Indiana State Police and Greensburg Police Department investigated the case. The Decatur County Probation Office and Decatur County Prosecutor’s Office provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Thomas be supervised by the U.S. Probation Office for 10 years following his release from federal prison and ordered Thomas to pay $10,000 in restitution to Minor Victim 1. Thomas must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristina M. Korobov who prosecuted this case.
In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted. This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Grand Jury Indicts Rochester Man on Bank Robbery ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal grand jury has returned an indictment charging Christopher M. Mancuso, 50, of Rochester, NY, with bank robbery and entering a bank with intent to commit a larceny. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Katelyn M. Hartford, who is handling the case, stated that according to the indictment and a previously filed complaint, on December 22, 2021, co-defendant Robert D. Postlethwaite, entered the M&T Bank on Long Pond Road in Greece, NY, approached a commercial teller station, and passed a demand note which read something to the effect of, “Don’t be alarmed. This is a robbery. Put bills $50 and up in the paper. I’ll be gone in 30 seconds.” After receiving $977, Postlethwaite fled the bank and got into the passenger seat of a red truck. The following evening, on December 23, 2021, the red truck was located by law enforcement with two occupants in Rochester. The driver was identified as Mancuso, and the passenger was identified as Postlethwaite. The defendants were taken into custody. On December 28, 2021, Greece Police executed a search warrant on the red truck and recovered $120 in cash, clothing consistent with descriptions of the two defendants, and two cell phones. Mancuso had just been released from Federal Probation supervision after being convicted of robbing four banks between November 2012 and January 2014, including the M&T Long Pond Road branch.
Robert Postlethwaite was previously convicted and is awaiting sentencing.
The indictment is the result of an investigation by the Greece Police Department, under the direction of Chief Michael Wood, the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Jeremy Bell, the New York State Police, under the direction of Major Brian J. Ratajczak, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, and the Livingston County Sheriff’s Office, under the direction of Sheriff Thomas J. Dougherty.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Gloucester City Business Owner Admits Payroll Tax Fraud and Pandemic Loan FraudRead the Press Release
CAMDEN, N.J. – The owner of a business in Gloucester City, New Jersey, today admitted failing to pay over payroll taxes to the IRS, failing to file personal income tax returns, and fraudulently obtaining a Paycheck Protection Program (PPP) loan, U.S. Attorney Philip R. Sellinger announced.
John Degan, 69, of Philadelphia, Pennsylvania, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of failing to collect, account for, and pay over payroll taxes, one count of failure to file income tax returns with the IRS, and one count of bank fraud.
According to documents filed in this case and statements made in court:
Degan was the owner and operator of Companion Services Group Inc., a building maintenance and restoration service company in Gloucester City. Companion provided architectural maintenance and restoration services, which includes restroom maintenance, glass restoration, and graffiti removal.
Degan admitted that for tax years 2016 through 2020, he willfully failed to file payroll tax returns and failed to pay over $600,629 in withheld employment taxes on behalf of his employees. Degan attempted to conceal from the IRS over $4.4 million in wages that he paid to himself and his employees by not filing and submitting Forms W-2 or Form W-3 to the Social Security Administration (SSA).
Degan admitted that he received a yearly salary that ranged from $140,000 to $170,000 from Companion, willfully failed to file his federal income tax returns for tax years 2016 through 2020, and has not filed a tax return since 2003. He also failed to file the corporate tax returns for Companion, a business that generated more than $1.4 million in gross receipts yearly.
Degan also submitted a fraudulent application to a lender to obtain a PPP loan.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted in March 2020 and was designed to provide emergency financial assistance from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses through the PPP program.
In April 2020, Degan submitted a PPP application for Companion in which he falsely represented to the lender that Companion had employees and payroll expenses. In further support of his application, Degan submitted various IRS Forms to establish that he was paying compensation to his employees. Those forms were never actually submitted to the IRS; instead, they were false forms that were only created and used for the purpose of securing the loan.
Based on Degan’s misrepresentations, the lender approved the PPP loan and disbursed $193,407 in federal COVID-19 emergency relief funds.
The charge of failing to collect, account for and pay over payroll taxes carries a maximum penalty of five years in prison and a fine of $250,000, or twice the gross gain or loss from the offense, whichever is greatest. The charge of failing to file income tax returns with the IRS carries a maximum penalty of one year in prison and a fine of $100,000, or twice the gross gain or loss from the offense, whichever is greatest. The bank fraud count carries a maximum penalty of 30 years in prison and a fine of $1 million. As part of his guilty plea, Degan agreed to make restitution to the IRS in the full amount of the taxes that he owes, and he agreed to make restitution to the lender in the full amount of the PPP loan. Sentencing is scheduled for Feb. 14, 2023.
U.S. Attorney Sellinger credited special agents of the IRS – Criminal Investigation, under the direction of Acting Special Agent in Charge Tammy Tomlins in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Jason M. Richardson, Attorney in Charge of the U.S. Attorney’s Office in Camden.
Glendive woman admits stealing more than $119,000 from man whose finances she managedRead the Press Release
BILLINGS — A Glendive woman today admitted to defrauding a man of more than $119,000 in a scheme in which she managed his finances and used his money for her personal expenses, U.S. Attorney Jesse Laslovich said.
Gina Larae Mann, aka Gina Larae Neva, 53, pleaded guilty to wire fraud, aggravated identity theft and money laundering. Mann faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the wire fraud crime and a mandatory minimum two years in prison, consecutive to any other sentence, on the aggravated identity theft crime.
U.S. Magistrate Judge Timothy J. Cavan presided. Sentencing was set for Feb. 16, 2023 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Mann was detained pending further proceedings.
The government alleged in court documents that Mann met the victim, identified as John Doe, after Doe’s wife died. Doe’s wife had been responsible for the household’s finances, and Mann volunteered to fulfill that role for Doe. Mann convinced Doe, who preferred to write paper checks, to obtain a debit card and register for online banking at Glendive BN Federal Credit Union. Mann then, without Doe’s knowledge or permission, used Doe’s personal identifying information to open several new credit card accounts in his name. Mann proceeded to use those accounts for her own personal expenses. In addition, Mann made several transfers from the credit union account to pay down outstanding balances on the credit cards. Mann’s scheme began in early 2018 and continued until late 2019 when Doe discovered the fraud after receiving overdraft notices from the credit union. Mann misappropriated approximately $119,269 in Doe’s name.
Assistant U.S. Attorney Karla E. Painter is prosecuting the case, which was investigated by the IRS Criminal Investigation.
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Four Defendants Sentenced for COVID-19 Relief FraudRead the Press Release
Memphis, TN – Four defendants have been sentenced for conspiracy to defraud the Small Business
Administration’s Economic Injury Disaster Loan (EIDL) program. The EIDL program provided grants and low-interest loans to small businesses affected by the COVID-19 pandemic, among other disasters.
Between April 2020 and June 2020, the defendants submitted more than 400 fraudulent EIDL applications and attempted to get over $7 million in funding. Kevin G. Ritz, United States
Attorney, announced the sentences today.United States Attorney Ritz commented: “These aid programs were meant to lift hardworking citizens and small businesses. But these individuals illicitly used the funds for their own benefit. I thank our federal law enforcement partners for uncovering and investigating these crimes. We will continue to prosecute those who abuse and misuse COVID-19 relief funds.”
“During a global pandemic, the defendants took advantage of aid programs intended to provide critical relief for hardworking members of our communities impacted by the COVID-19 outbreak,” said
Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service – Criminal
Investigation (IRS-CI) Memphis Field Office. “We will continue to prioritize COVID-19 fraud investigations on those who fraudulently take intended funds for struggling businesses that truly needed assistance.”“Conspiring to fraudulently obtain federal funds that are meant to provide assistance to nation’s small businesses is unacceptable,” said SBA Office of Inspector General’s Special Agent in Charge
Amaleka McCall-Brathwaite. “Our office will aggressively pursue evidence of wrongdoing and bring those responsible to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”Sharika L. Carpenter, 43, of Memphis, Tennessee, pled guilty on January 13, 2022, to one count of conspiracy to defraud the EIDL program, one count of wire fraud, two counts
of theft of government property, and one count of preparing a false tax return. According to information presented in court, Carpenter owned a tax-preparation business, Better Days Tax
Services, in Memphis, Tennessee. She recruited and trained at least five people to work for her preparing fraudulent tax returns and fraudulent applications to COVID- 19 relief programs for clients. Operating out of that business in 2020, Carpenter and her co-conspirators obtained more than $745,000 in fraudulent EIDL funds. Carpenter charged her clients up to 50 percent of the fraudulent EIDL proceeds, and she also submitted fraudulent EIDL applications in her own name. She paid her employees a flat fee for each fraudulent EIDL application that received funding. In addition to the EIDL fraud, Carpenter prepared false income tax returns for clients, resulting in fraudulent tax refunds and lost tax revenue. Carpenter also defrauded the Small Business
Administration’s (SBA) Paycheck Protection Program (PPP) by obtaining a fraudulent PPP loan of
$3,548. And Carpenter defrauded the Department of Labor’s Pandemic Unemployment Assistance program by claiming more than $33,000 in unemployment- assistance payments to which she was not entitled.On October 5, 2022, United States District Judge Thomas L. Parker sentenced Carpenter to a total of four years in federal prison, to be followed by three years of supervised release. Carpenter may not own or operate a tax preparation business or engage in tax preparation services during her supervised release. Carpenter also was ordered to pay restitution of
$38,756 and a fine of $20,000. There is no parole in the federal system.Co-defendant Kevin Maclin, 45, of Memphis, Tennessee, pled guilty on January 18, 2022, to one count of conspiracy to defraud the EIDL program for his role in the fraud scheme. Maclin recruited additional clients to Better Days Tax Services, where Carpenter and her employees submitted fraudulent EIDL applications on the recruits’ behalf. Maclin received a percentage of those clients’ EIDL funds. Carpenter also prepared fraudulent EIDL applications for Maclin, for which
Maclin received $31,000 in his own name. On May 16, 2022, United States District Judge Thomas L.
Parker sentenced Maclin to 18 months in federal prison, to be followed by two years of supervised release. Maclin also was ordered to pay restitution of $31,000 and a fine of $10,000.Co-defendants Brandy D. Scaife, 44, and Stephanie Johnson, 43, both of Memphis, Tennessee, each pled guilty on January 12, 2022, to one count of conspiracy to defraud the EIDL program for their roles in the fraud scheme. Scaife and Johnson both worked for Carpenter preparing fraudulent EIDL applications for Better Days Tax Services clients. Carpenter paid Scaife and Johnson a flat fee for each fraudulent application that received funding. Scaife also obtained a fraudulent EIDL loan in her own name. On April 29, 2022, United States District Judge Thomas L. Parker sentenced Scaife to time served, to be followed by one year of supervised release, and ordered her to pay restitution of $17,900. On May 18, 2022, United States District Judge Thomas L. Parker sentenced Johnson to two years of federal probation.
This case was investigated by IRS-CI, the Treasury Inspector General for Tax Administration, the SBA Office of Inspector General, and the Department of Labor Office of Inspector General.
Assistant United States Attorney Murre Foster prosecuted this case on behalf of the government.Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Former lawyer for Mexico’s attorney general sentenced for drug traffickingRead the Press Release
McALLEN, Texas – A 56-year-old man who illegally resided in Mission has been ordered to federal prison for his role in conspiring to possess with intent to distribute 32 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Rogelio Alberto Velasco pleaded guilty June 3.
Today, U.S. District Judge Randy Crane sentenced Velasco to 70 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard evidence that Velasco received his law degree in 1995 and worked for the attorney general of the Republic in Mexico for nearly 30 years. In handing down the sentence, the court noted that Velasco was educated and knew the consequences of his actions yet still engaged in drug trafficking.
On Jan. 27, Velasco provided a kilogram of cocaine to undercover authorities as a sample of the product he had available for purchase. The next day, undercover authorities again meet with Velasco to buy an additional two kilograms of cocaine. Law enforcement subsequently executed a search warrant at his residence in Mission that resulted in the discovery of an additional 29 kilograms of cocaine. Additional search warrants of Velasco’s telephones revealed he was in direct communication with the source of supply.
The cocaine has an estimated street value of $800,000.
Velasco will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted the investigation with the assistance of Hidalgo County Precinct 1 Constable’s Office. Assistant U.S. Attorney Laura Garcia prosecuted the case.
Former Yale Med School Employee Who Stole $40 Million in Electronics Sentenced to 9 Years in PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAMIE PETRONE, 43, of Lithia Springs, Georgia, formerly of Naugatuck, Connecticut, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 109 months of imprisonment, followed by three years of supervised release, for fraud and tax offenses related to her theft of $40 million in computer and electronic hardware from the Yale University School of Medicine where she was employed.
According to court documents and statements made in court, beginning in approximately 2008, Petrone was employed by the Yale University School of Medicine (“Yale Med”), Department of Emergency Medicine, ultimately serving as the Director of Finance and Administration for the Department of Emergency Medicine. As part of her job responsibilities, Petrone had authority to make and authorize certain purchases for departmental needs as long as the purchase amount was below $10,000. Beginning at least as early as 2013, Petrone engaged in a scheme whereby she ordered, or caused others working for her to order, millions of dollars of electronic hardware from Yale vendors using Yale Med funds, and she arranged to ship the stolen hardware to an out-of-state business in exchange for money.
As part of the scheme, Petrone falsely represented on Yale internal forms and in electronic communications that the hardware was for specified Yale Med needs, such as particular medical studies, and she broke up the fraudulent purchases into orders below the $10,000 threshold that would require additional approval. The out-of-state business, which resold the electronic equipment to customers, paid Petrone by wiring funds into an account of a company in which she is a principal, Maziv Entertainment LLC.
In total, Petrone caused a loss of approximately $40,504,200 to Yale. Petrone used the proceeds of the sales of the stolen equipment for various personal expenses, including expensive cars, real estate and travel.
Petrone also failed to pay taxes on the money she received from selling the stolen equipment. She filed false federal tax returns for the 2013 through 2016 tax years, in which she falsely claimed as business expenses the costs of the stolen equipment, and failed to file any federal tax returns for the 2017 through 2020 tax years. This caused a loss of $6,416,618 to the U.S. Treasury.
Petrone was arrested on September 3, 2021. On March 28, 2022, she pleaded guilty to one count of wire fraud and one count of filing a false tax return.
Judge Bryant ordered Petrone to make full restitution. Petrone has agreed to forfeit $560,421.14 that was seized from the Maziv Entertainment LLC bank account as part of the investigation, a 2014 Mercedes-Benz G550, a 2017 Land Rover/Range Rover Sv Autobiography, a 2015 Cadillac Escalade Premium, a 2020 Mercedes Benz Model E450A, a 2016 Cadillac Escalade (4 Door Sport), and a 2018 Dodge Charger. She also has agreed to the liquidation of three Connecticut properties that she owns or co-owns to help satisfy her restitution obligation. A property she owns in Georgia is also subject to seizure and liquidation.
Petrone was remanded into custody following the sentencing proceeding.
This matter was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, with the assistance of the Yale Police Department. The case was prosecuted by Assistant U.S. Attorney David E. Novick.
Former Philadelphia City Treasurer Pleads Guilty to Naturalization Fraud and Failure to File Taxes ChargesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Christian Dunbar, 42, of Philadelphia, PA, the former Philadelphia City Treasurer, pleaded guilty in front of United States District Court Judge Cynthia M. Rufe to procurement of citizenship unlawfully and through multiple false statements; submitting false citizenship papers; and failure to file tax returns, all in connection with false statements and altered documents he submitted as part of his application to become a U.S. citizen, and failing to file his federal tax returns in three separate years.
In May 2021, the defendant was charged by Superseding Indictment with multiple counts of filing a false income tax return and failure to file tax returns. Earlier, in September 2020, Dunbar was charged in a 14-count Indictment, charging embezzlement by a bank employee, procurement of naturalization through a false statement, procurement of naturalization unlawfully, obtaining false citizenship papers, and making false statements in support of naturalization.
During the hearing, the defendant admitted to procuring U.S. citizenship fraudulently by providing false information about where and with whom he was living, where his child was residing, and submitting a false lease and a false W-2 tax form to U.S. Citizenship and Immigration Services. Further, Dunbar admitted to not filing his personal income tax returns for tax years 2015, 2016, and 2019 (during the last of which he was serving as the Philadelphia City Treasurer).
“Christian Dunbar’s conduct in this case demonstrates a shocking level of misconduct for anyone, let alone a senior official with the City of Philadelphia whose job it was to oversee the City’s fiscal stability,” said U.S. Attorney Romero. “Our Office will continue to work with our law enforcement partners to investigate these types of complicated public corruption cases, and hold public officials accountable.”
“Christian Dunbar fraudulently obtained U.S. citizenship, building his life and career here on a foundation of lies,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It’s a sad irony that such a dishonest person wound up City Treasurer, a key position of public trust. Corruption like this corrodes people’s faith in government, which is why the FBI works so hard to hold crooked public officials accountable.”
“Christian Dunbar violated federal tax laws when he failed to file his tax returns, even though he was required, by law, to file,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Tax crimes like this will not go undetected thanks to the tireless hard work of IRS-CI Special Agents. We will continue to focus our investigative efforts on individuals who choose to ignore their legal duty to accurately file and pay their taxes.”
“HSI Philadelphia special agents worked diligently with our partners in the FBI and IRS to ensure Mr. Dunbar is held responsible for his actions,” said William S. Walker, Special Agent in Charge of HSI’s Philadelphia office. “HSI’s mission is to investigate crimes regardless of the perpetrator’s position, official title or economic status. This investigation underscores the importance of how collaboration and teamwork among federal agencies leads to accountability for crimes committed by those who seek to exploit vulnerabilities in our systems.”
The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigations, and Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Josh A. Davison.
Former Pembroke Township Supervisor Charged with Filing False Tax ReturnsRead the Press Release
URBANA, Ill. – A federal grand jury returned an indictment on October 4, 2022, charging the former elected Township Supervisor of Pembroke Township in Kankakee County, Illinois, Larry Dean Gibbs, 61, also known as Mulumbua Humraukn El Taikaem Bey, of St. Anne, Illinois, with three counts of filing false income tax returns. The indictment was unsealed on October 12, 2022.
The indictment alleges that Gibbs filed false income tax returns in 2017 for calendar years 2012, 2013, and 2014. In those years, Gibbs filed a Form 1040 U.S. Individual Income Tax Return in the name of Larry Dean Gibbs claiming that he had adjusted gross income of $10 million, that millions of dollars in federal income tax had been withheld by the Internal Revenue Service, and that he was entitled to refunds in excess of $2 million for each tax year, respectively. According to the indictment, the IRS did not withhold any federal income tax from Gibbs, and he was not entitled to the requested refunds.
Gibbs was arrested on October12, 2022, and appeared before U.S. Magistrate Judge Eric I. Long in Urbana that same day.
If convicted, each count of filing a false income tax return carries a penalty of up to three years in prison, up to one year of supervised release, and up to a $100,000 fine plus the costs of prosecution.
The charges are the result of an investigation by the Criminal Investigation Division of the Internal Revenue Service. Supervisory Assistant U.S. Attorney Eugene L. Miller is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Owner and Chief Financial Officer of Perry County Business Convicted of Wire Fraud and Money Laundering ChargesRead the Press Release
LEXINGTON, Ky.- The owner and chief financial officer of a former business in Perry County were both convicted on Thursday, by a federal jury in Lexington, of conspiracy to commit wire fraud, multiple counts of wire fraud, and conspiracy to commit money laundering.
Following a six-day trial, the jury convicted 53-year-old Douglas William Vance of Richlands, Virginia, and 59-year-old Molly Irene McKinnon of Acworth, Georgia, of four counts of wire fraud, one count of conspiracy to commit wire fraud, and one count of money laundering.
According to evidence at trial, from August 2016 through December 2018, Vance and McKinnon used falsified bank statements, financial reports, purchase orders, sales and production figures, and other fabrications, to convince different investors that each owned a controlling stake in a company called “Nex-Gen.” The company purported to produce “calcined coal” and other carbon-based products, in Chavies, Kentucky. The false and fabricated documents also convinced two companies to lend money to Nex-Gen, and it concealed the fact that Vance and McKinnon were misappropriating both investor and lender funds. The evidence presented at trial established that Vance and McKinnon worked together to defraud multiple investors and lenders out of more than $2 million.
Vance and McKinnon were indicted in June 2020.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the jury’s verdict.
The investigation was conducted by the FBI. The United States was represented in the case by Assistant U.S. Attorneys Gregory Rosenburg and James Chapman.
Vance and McKinnon will appear for sentencing on February 3, 2023. They face a maximum of 20 years in prison for each of the counts of conviction, plus any applicable restitution. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Former Nashua, New Hampshire Man Sentenced to 68 Months for Conspiracy to Distribute Crack CocaineRead the Press Release
CONCORD – Antron Hughes, 60, formerly of Nashua, New Hampshire was sentenced to 68 months in federal prison for conspiracy to distribute controlled substances, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, from approximately December 2022 through March 2021, Hughes conspired with another individual on five occasions to distribute quantities of cocaine base (“crack”) to an individual who was cooperating with the Federal Bureau of Investigation and the Nashua, New Hampshire Police Department during their investigation into increased drug trafficking in the “Tree Streets” area of the city.
The case was investigated by the Federal Bureau of Investigation’s New Hampshire Major Offender Task Force and the Nashua, New Hampshire Police Department. The case was prosecuted by Assistant United States Attorney Jennifer C. Davis.
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Former Islamic center director pleads guilty to embezzling funds, committing fraudRead the Press Release
COLUMBUS, Ohio – The former director of a local Islamic center pleaded guilty in U.S. District Court today to embezzling funds from the mosque, defrauding public housing, and filing for fraudulent COVID assistance funds.
Ahmed A. Sh. Ahmed, 43, of Gahanna, admitted in federal court today to committing wire fraud, submitting a false statement and making a false statement.
According to court documents, from at least 2009 until March 2019, Ahmed was employed as the Director of the Ibn Taymiyah Masjid and Islamic Center (ITMIC) on Mock Road in Columbus.
During his tenure as director, Ahmed used his position of trust to embezzle funds from the religious organization. Specifically, Ahmed wrote unauthorized checks from ITMIC’s accounts to himself. Each year from 2015 through 2018, Ahmed increased the amount he embezzled, writing himself $4,500 in checks in 2015; approximately $11,000 in checks in 2016; $12,900 in checks in 2017; and approximately $21,000 in checks in 2018.
Ahmed spent thousands of dollars of ITMIC funds to pay his own personal credit card bill and towards the purchase of his own personal vehicle.
Ahmed also defrauded the Columbus Metropolitan Housing Authority’s housing choice voucher program. From 2014 until at least 2020, Ahmed submitted false claims to obtain housing subsidies he would not otherwise qualify for given his true income and assets.
The defendant falsely claimed his personal income was $18,000 annually and did not report any household assets. In reality, Ahmed and his wife deposited more than $235,000 into their bank accounts from 2014 through 2018.
Finally, Ahmed fraudulently applied for Pandemic Unemployment Assistance nine times from August until October 2020. During that same time frame, Ahmed generated at least $4,000 in revenue by producing and posting approximately 126 YouTube videos to his YouTube channel.
As part of his plea, Ahmed will pay more than $37,400 in restitution to the Islamic center.
Wire fraud is punishable by up to 20 years in prison. Making and submitting false claims are federal crimes that carry a potential maximum sentence of up to five years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati division; and Jerome Winkle II, Acting Special Agent in Charge, HUD-OIG, announced the plea entered today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorney Jessica W. Knight is representing the United States in this case.
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Former Honduran Congressman Sentenced to 30 Years in Prison for Conspiring to Import Cocaine into the United States and Possessing Machine Guns and Destructive DevicesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that FREDY RENAN NAJERA MONTOYA was sentenced to 30 years in prison for conspiring to import cocaine into the United States and possessing machine guns and destructive devices during the course of that conspiracy. NAJERA previously pled guilty before U.S. District Judge Paul G. Gardephe, who sentenced Najera today.
U.S. Attorney Damian Williams said: “Fredy Najera, a former Honduran congressman, abused his high-powered position by operating a large-scale narcotics trafficking organization that imported tons of cocaine to the United States. Najera oversaw the construction of airfields in Honduras and the use of militia-style tactics and weaponry to protect the illicit shipments. Najera has now been sentenced to 30 years in U.S. federal prison for his conduct in connection to importing over 30 tons of cocaine, which continues to contribute to the devastating cycle of addiction and abuse that affects so many Americans.”
According to the Superseding Indictment, other court filings, and statements made during other court proceedings:
From approximately 2008 through 2015, NAJERA abused his position as a Honduran congressman to lead large-scale and violent drug-trafficking activities in the same part of Honduras that he represented in his government position. NAJERA’s crimes involved the distribution of more than 30 tons of cocaine, which was ultimately imported into the United States. In connection with these activities, NAJERA used, and employed security teams who used military-grade weapons including machine guns and rocket-propelled grenade launchers.
During that same time period, NAJERA constructed, maintained, and staffed clandestine airstrips in Olancho, Honduras, that were used to receive multi-hundred-kilogram shipments of cocaine sent from Venezuela to Honduras. NAJERA facilitated the receipt of cocaine-laden planes and helicopters at his airstrips and coordinated the transportation of the cocaine westward in Honduras so that it could be imported into the United States. Heavily armed security personnel employed by NAJERA participated in the receipt and transportation of these shipments. NAJERA also cultivated criminal relationships with members of the Honduran National Police and the Honduran military in order to support his drug-trafficking activities by obtaining sensitive law enforcement information used by traffickers to avoid arrests and to plan transportation routes for U.S.-bound cocaine.
In 2012, NAJERA introduced members of the Sinaloa Cartel to Honduran officials who provided nearly unfettered access to a major commercial shipping hub in Puerto Cortés, Honduras. The Sinaloa Cartel relied on NAJERA’s connections to transport approximately 10 tons of cocaine through Puerto Cortés.
* * *
In addition to his prison sentence, NAJERA, 46, of Honduras, was sentenced to five supervised release, ordered to forfeit $39,000,000, and ordered to pay a fine of $10,000,000.
Mr. Williams praised the outstanding efforts of the Bilateral Investigations Unit of the Special Operations Division of the Drug Enforcement Administration (“DEA”), New York Strike Force, and DEA Tegucigalpa Country Office, as well as the Department of Justice’s Office of International Affairs.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (“OCDETF”) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case is being handled by the Office’s National Security and International Narcotics Unit. Assistant U.S. Attorneys Jacob H. Gutwillig, Michael D. Lockard, Jason A. Richman, and Elinor L. Tarlow are in charge of the prosecution.
Former FBI Analyst Pleads Guilty to Retaining National Defense DocumentsRead the Press Release
KANSAS CITY, Mo. – A former analyst with the Kansas City Division of the FBI pleaded guilty in federal court today before U.S. District Judge Stephen R. Bough to two counts of unlawfully retaining documents related to the national defense in her North Kansas City, Mo., residence.
According to court documents, Kendra Kingsbury, 50, of Kansas City, Missouri, was an intelligence analyst for the FBI for more than 12 years, from 2004 to Dec. 15, 2017. Kingsbury was assigned to a sequence of different FBI squads, each of which had a particular focus, such as illegal drug trafficking, violent crime, violent gangs, and counterintelligence. Kingsbury held a TOP SECRET//SCI security clearance and had access to national defense and classified information.
Training presentations and materials specifically warned Kingsbury that she was prohibited from retaining classified information at her personal residence. Such information could only be stored in an approved facility and container.
By pleading guilty today, Kingsbury admitted that, over the course of her FBI employment, she repeatedly removed from the FBI and retained in her personal residence an abundance of sensitive government materials, including classified documents related to the national defense. In total, Kingsbury improperly removed and unlawfully and willfully retained approximately 386 classified documents in her personal residence. The documents retained by Kingsbury in her personal residence included documents in electronic format on hard drives, compact discs, and other storage media.
The national defense information that Kingsbury unlawfully retained included numerous documents classified at the SECRET level from the FBI that describe intelligence sources and methods related to U.S. government efforts related to counterterrorism, counterintelligence, and defending against cyber threats. These documents included details on the FBI’s nationwide objectives and priorities, including specific investigations across multiple field offices that were open at the time Kingsbury unlawfully retained the documents. In addition, Kingsbury retained documents relating to sensitive human-source operations in national security investigations, intelligence gaps regarding hostile foreign intelligence services and terrorist organizations, and the technical capabilities of the FBI against counterintelligence and counterterrorism targets.
The national defense information that Kingsbury unlawfully retained also included numerous documents classified at the SECRET level from another government agency. These documents described intelligence sources and methods related to U.S. government efforts to collect intelligence on terrorist groups. The documents included information about al Qaeda members on the African continent, including a suspected associate of Usama bin Laden. In addition, there were documents regarding the activities of emerging terrorists and their efforts to establish themselves in support of al Qaeda in Africa.
Kingsbury specifically admitted that she knew 20 of these documents were classified, contained national defense information, and that she did not have a “need to know” the information contained in the documents. Kingsbury knew that information in these documents could be used to the injury of the United States or to the advantage of foreign nations. Kingsbury was not authorized to possess these documents in her personal residence and her personal residence was not a location authorized to store classified information.
Kingsbury faces a maximum statutory penalty of up to 10 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Teresa A. Moore for the Western District of Missouri and Assistant Director Alan E. Kohler of the FBI’s Counterintelligence Division made the announcement.
The FBI Omaha Field Office is investigating the case.
Assistant U.S. Attorneys Patrick Edwards and David Raskin for the Western District of Missouri and Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Former Employee of Beaver County Health Care Facility Pleads Guilty to Federal Hate Crime Charges Related to Assaults Against Disabled ResidentsRead the Press Release
PITTSBURGH, PA – A former resident of Beaver County, Pennsylvania, pleaded guilty in federal court to federal hate crime charges, United States Attorney Cindy K. Chung announced today.
Zachary Dinell, 28, formerly of Freedom, Pennsylvania, pleaded guilty to one count of conspiracy, ten counts of violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, and one count of concealing material facts in a health care matter before United States District Judge J. Nicholas Ranjan
According to admissions made during Dinell’s plea hearing, he and co-defendant Tyler Smith were employees of an in-patient health care facility located in New Brighton, Pennsylvania. Residents of the facility suffered from a range of severe physical, intellectual, and emotional disabilities, and required assistance with all activities of daily life, including bathing, using the bathroom, oral hygiene, feeding, and dressing. As members of the facility’s Direct Care Staff, Dinell admitted that he and Smith were responsible for providing this daily assistance to residents.
From approximately June 2016 to September 2017, Dinell further admitted that he and Smith engaged in a conspiracy to commit hate crimes against residents of the facility because of the residents’ actual or perceived disabilities. Dinell and Smith carried out assaults in a variety of ways, including by punching and kicking residents, jumping on residents, rubbing liquid irritants in their eyes, spraying liquid irritants in their eyes and mouths, and in one instance removing a resident’s compression stocking in a manner intended to inflict pain. Several of these assaults were recorded on Dinell’s cell phone. As part of the conspiracy, Dinell acknowledged that he and Smith exchanged text messages in which they expressed their animus toward the disabled residents, shared pictures and videos of residents, described their assaults, and encouraged each other’s continued abuse of residents.
Dinell further admitted that he and Smith were able to avoid detection by, among other things, exploiting their one-on-one access to residents of the facility and the fact that the victims were non-verbal and could not report the defendant’s alleged abuse. Due to their physical disabilities, the residents also were not able to defend themselves against the alleged assaults.
The maximum penalty for the conspiracy charge is a term of imprisonment of five years and a $250,000 fine. The maximum penalty for each of the ten hate crime charges is a term of imprisonment of ten years and a $250,000 fine. The scheme to conceal material facts likewise is punishable by up to five years of imprisonment and a $250,000 fine.
As part of his plea agreement, and subject to the approval of Judge Ranjan, Dinell has agreed to a term of imprisonment of between 168 and 204 months.
The case against Smith remains pending, and he is presumed innocent unless and until proven guilty.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the
Indictment in this case.Florida Medical Clinic Owners and Staff Charged with Falsifying Clinical Trial DataRead the Press Release
In an indictment unsealed yesterday, a Miami grand jury charged three defendants for their roles in an alleged scheme to fabricate and falsify clinical drug trial data, the Department of Justice announced.
Miguel Montalvo, 52, Bernardo Garmendia, 58, and Ivette Portela, 52, all of Miami, were charged in a three-count indictment returned by a federal grand jury on Sept. 13. Each defendant was charged with conspiracy to commit wire fraud and one substantive count of wire fraud. In addition, Montalvo was charged with making a false statement to a regulatory investigator with the Food and Drug Administration (FDA).
According to the indictment, from at least September 2015 through at least March 2018, the defendants fabricated clinical trial data for profit while working at AMB Research Center Inc., a medical clinic based in Miami. The indictment alleges that the defendants knowingly enrolled subjects in a clinical trial even though those subjects failed to meet eligibility criteria, falsified subject laboratory results, falsified subject medical records, and falsely represented that subjects were taking the drug being studied when, in fact, they were not. Montalvo and Garmendia were co-owners of AMB Research Center, where Montalvo also served as a lead study coordinator and Garmendia served as a study coordinator. Portela worked at AMB Research Center and was a pharmacy technician.
Trial Attorneys Karla-Dee Clark and Jessica C. Harvey of the Justice Department’s Consumer Protection Branch are prosecuting the case. The U.S. Food and Drug Administration’s Office of Criminal Investigations, Miami Field Office, investigated the case, and the U.S. Attorney’s Office of the Southern District of Florida has provided critical assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Five Arrested in Attempted Human Smuggling Event Near Morses LineRead the Press Release
The United States Attorney for the District of Vermont announced that five persons were arrested near Morses Line on October 9, 2022 in connection with what is believed to be an attempt to smuggle individuals without legal status into the United States. Angel Hernandez-Pineda, 32, a Honduran national who has no immigration status in the United States, and Jhony Cantarero-Vasquez, 29, of Worcester, MA, appeared yesterday in United States District Court in Burlington on a charge that they attempted to transport individuals without legal status within the United States. Federico Rincon-Ramirez, Leydi Rincon-Sosa, and Jairo Alberto Ortiz-Acevedo, who are all citizens of Mexico and without legal status in the United States, also appeared in court yesterday on charges that they unlawfully entered the country. U.S. Magistrate Judge Kevin Doyle released Cantarero-Vasquez on conditions; ordered that Hernandez-Pineda be detained pending a further hearing on October 14; and ordered detention of the three individuals without legal status pending trial.
The United States Attorney emphasizes that the charges in the criminal complaints are merely accusations, and that the defendants are presumed innocent unless and until they are proven guilty.
The attempted transportation charge is punishable by up to ten years of imprisonment and a fine of up to $250,000. The unlawful entry charge is a misdemeanor punishable by up to six months of imprisonment. The actual sentences would be determined with reference to federal sentencing guidelines.
U.S. Attorney Nikolas P. Kerest credited the agents of the United States Border Patrol for their continued efforts to prevent the exploitation of foreign nationals by human smuggling organizations.
Hernandez-Pineda is represented by Assistant Federal Public Defender Mary Nerino. Cantarero-Vasquez is represented by John-Claude Charbonneau, Esq. Rincon-Ramirez is represented by Chandler Matson, Esq. Rincon-Sosa is represented by Lisa Shelkrot, Esq. Ortiz-Acevedo is represented by Jordana Levine, Esq. The prosecutor in this case is Assistant U.S. Attorney Gregory Waples.
Fishers Man Sentenced to 35 Years in Federal Prison for Sexual Exploitation of Two ChildrenRead the Press Release
INDIANAPOLIS – Steven Danford, 51, of Fishers, Indiana, was sentenced late yesterday to 35 years in federal prison after pleading guilty to two counts of sexual exploitation of a minor and attempted sexual exploitation of a minor.
According to court documents, on June 16, 2020, the Fishers Police Department responded to a report of child molestation. The report indicated that Minor Victim 1, age 5, was playing with a friend at Danford’s home when the child was molested by Danford. Minor Victim 1 was forensically interviewed by investigators and the child disclosed being sexually abused by Danford on multiple occasions.
On September 14, 2020, police were contacted and advised that Danford had moved out of his residence. After Danford moved out, the landlord was cleaning the property and found cable equipment and a 16GB Gorilla flash drive. Police took custody of the flash drive, and it was examined. The flash drive contained three video and audio files of Danford sexually abusing Minor Victim 1. The files also corroborated the statements Minor Victim 1 made during the forensic interview.
In June 2022, two additional files were identified on the flash drive. Those files depicted Danford sexually abusing Minor Victim 2 when she was between the ages of 9 and 11. After Minor Victim 2 was identified by the child’s mother, Minor Victim 2 was forensically interviewed. Minor Victim 2 disclosed being sexually abused by Danford on multiple occasions. Minor Victim 2 explained that Danford told the child not to tell anyone and the child didn’t for fear of being yelled at.
Danford was previously convicted of a misdemeanor third-degree assault of a child.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and R. Sean Fitzgerald, acting Special Agent in Charge of Homeland Security Investigations’ Chicago Field Office, made the announcement.
Homeland Security Investigations investigated the case. The Fishers Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Danford be supervised by the U.S. Probation Office for 25 years following his release from federal prison. Danford must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kathryn E. Olivier who prosecuted this case.
This investigation was conducted by the Indiana Internet Crimes Against Children (ICAC) Task Force, a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
Española man indicted for child’s deathRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that a federal grand jury on Oct. 12 returned a four-count superseding indictment against Malcolm Torres charging him with first degree felony murder, second degree murder of a child, assault resulting in serious bodily injury of a child under the age of 18, and tampering with a victim, witness, or informant. Torres, 29, of Española, New Mexico, is scheduled for arraignment on Oct. 20, and will remain in custody pending trial.
According to the indictment and other court records, on Sept. 7, 2019, Torres, who is not an enrolled member of any federally recognized Tribe, allegedly abused the victim, identified as Jane Doe, at his home in Española on the Santa Clara Pueblo. Jane Doe, who is Indian by federal law, and was five years old at the time, died as the result of the abuse.
On Sept. 8, 2019, Torres allegedly disposed of Jane Doe’s body in an attempt to avoid detection of his crimes.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Torres faces up to life in prison.
The Santa Fe Resident Agency of the FBI investigated this case with assistance from the Espanola Police Department, Santa Clara Pueblo Tribal Police Department, Rio Arriba County Sheriff’s Office, New Mexico State Police, Bureau of Indian Affairs, Albuquerque Police Department Open Space Search and Rescue Team, Espanola Fire Department and Ohkay Owingeh Pueblo Tribal Police Department. Assistant United States Attorneys Jack Burkhead and Letitia Carroll Simms are prosecuting the case.
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Eleven Defendants Arrested for Investment Fraud, Money Laundering and Unlicensed Money Transmitting Business SchemesRead the Press Release
An indictment was unsealed today in federal court in Brooklyn charging Jin Hua Zhang, Gregory Armand, Chen Chen, Yanbin Chen, Yanbing Chen, Changgui Huang, Xin Jin, Jiahui Miao, Lingming Zeng, Jin Fu Zhang and Hua Zhou with various offenses, including money laundering conspiracy, wire fraud conspiracy, bank fraud conspiracy, passport fraud conspiracy, aggravated identity theft and conspiring to operate an unlicensed money transmitting business. The defendants were arrested and arraigned today, in federal court in Brooklyn before United States Magistrate Judge Peggy Kuo. One defendant remains at large.
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 Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD) announced the indictment.
“As alleged, nearly $18 million was swindled from over 200 victims throughout the country and laundered through the defendants’ sophisticated money laundering scheme,” stated United States Attorney Peace. “These 11 arrests demonstrate the seriousness of financial fraud and the commitment of this Office and our law enforcement partners to rooting out bad actors and protecting victims.”
“For once the name of a scam - pig butchering - reflects the grotesque nature of the harm it causes victims. We allege these fraudsters bled dry each of their victims and then used the money to set up fake cryptocurrency accounts. We know there are many more victims of these types of scams, and we urge those people to report it to the FBI. We will do all we can to bring each and every criminal to justice,” stated FBI Assistant Director-in-Charge Driscoll.
“Drug trafficking is often linked with other criminal activities like money laundering, fraud and conspiracy,” said DEA Special Agent In Charge Frank Tarentino. “DEA’s partnership with the FBI and the U.S. Attorney’s Office for the Eastern District of New York has resulted in shutting down a multi-million dollar investment fraud and money laundering scheme operating in our backyard. I commend the agents, officers, and attorneys for their diligence throughout this investigation.”
“These defendants betrayed the trust of hundreds of people for profit, stealing millions of dollars through their brazenly callous investment scheme,” said NYPD Commissioner Sewell. “The NYPD and our law enforcement partners will continue to aggressively pursue anyone who seeks to defraud and victimize others, holding them fully accountable for their actions. I want to thank and commend the U.S. Attorney for the Eastern District, the New York Field Office of the FBI, the DEA’s New York Division, and our NYPD investigators for their tireless work on this case.”
According to the indictment and a memorandum filed in connection with the defendants’ bail hearings, the defendants engaged in a money laundering conspiracy dating back to May 2021 in which they laundered proceeds from an investment fraud scheme referred to as “Sha Zu Pan” or the “pig butchering” scam. Through this scam, more than 200 victims were contacted through messaging applications and convinced to invest almost $18 million in trading platforms by sending funds to purported money manager bank accounts that were later stolen. The defendants also operated an unlicensed money transmitting business in which they converted approximately $52 million in cash into cashier’s checks on behalf of customers. As payment for their services, the defendants received a fee, which was generally a portion of the fee that the business received. As part of these criminal schemes, the defendants opened bank and cryptocurrency accounts under false names, using forged passports and identification documents of real people.
This case is part of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the FBI. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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 charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity section. Assistant United States Attorneys Benjamin Weintraub and Miranda Gonzalez are in charge of the prosecution. Assistant United States Attorney Brian Morris of the Office’s Asset Recovery section is handling forfeiture matters.
The Defendants:
JIN HUA ZHANG
Age: 35
Staten Island, New YorkGREGORY ARMAND
Age: 44
Belleville, New JerseyCHEN CHEN
Age: 33
Queens, New YorkYANBIN CHEN
Age: 24
Queens, New YorkYANBING CHEN
Age: 28
Brooklyn, New YorkCHANGGUI HUANG
Age: 30
Brooklyn, New YorkXIN JIN
Age: 33
Brooklyn, New YorkJIAHUI MIAO
Age: 24
Cliffside, New JerseyLINGMING ZENG
Age: 37
Brooklyn, New YorkJIN FU ZHANG
Age: 39
Staten Island, New YorkHUA ZHOU
Age: 33
Queens, New YorkE.D.N.Y. Docket No. 22-CR-458 (LDH)
Eleven Charged in International Money Laundering and Drug Trafficking ConspiracyRead the Press Release
BOSTON – Eleven individuals from Massachusetts, Rhode Island, New York and California have been charged in connection with their alleged involvement in a sophisticated international money laundering and drug trafficking organization involving cocaine and MDMA (ecstasy).
This morning, five defendants were arrested in Massachusetts and Rhode Island and will appear in federal court in Boston later today. Three defendants were arrested in Brooklyn, N.Y. and are expected to appear today in the Eastern District of New York. Three defendants remain at large.
“We allege that this group of individuals conspired to sell deadly narcotics in Massachusetts communities then laundered millions of dollars’ worth of their drug proceeds through a global network to conceal their illegal activity. Thanks to the incredible collaboration between federal, state and local law enforcement, this alleged large-scale criminal enterprise has been stopped in its tracks,” said United States Attorney Rachael S. Rollins. “Money is the lifeblood to drug trafficking activity and those who launder directly contribute to the ongoing drug crisis. Dirty money always leaves a trace, and no amount of laundering – whether through financial institutions or digital currency exchanges – will allow perpetrators to evade detection by law enforcement. That is a promise.”
“Today’s arrests by FBI Boston’s Organized Crime Task Force have disrupted a sophisticated transnational criminal organization that is accused of trafficking kilos of cocaine and laundering at least $25 million in illicit proceeds from their illegal businesses all over the world,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Now, these individuals know the FBI is just as committed to eradicating organized crime as this group was to allegedly embracing it. This investigation should be a warning to others engaged in similar conduct: we will infiltrate your network, shut you down, and bring you to justice, no matter where you are.”
According to the charging documents, following a months-long undercover operation, investigators identified Jin Hua Zhang as the leader of a criminal organization whose members laundered millions of dollars, conspired to distribute multiple kilograms of cocaine in Massachusetts and operated throughout the United States, including the greater Boston area, as well as overseas. It is alleged that Zhang directed his co-defendants and others to deliver hundreds of thousands of dollars in cash and millions of dollars in wire transfers and bank deposits to undercover agents in exchange for cryptocurrency. The funds were proceeds of drug trafficking and various fraud schemes that were based in the United States and abroad. Zhang allegedly believed cryptocurrency would enable his organization to transfer illicit funds without detection by banks’ security teams or law enforcement. In total, it is alleged that Zhang and his co-conspirators laundered more than $25 million
According to court documents, to date, funds have been traced from Zhang’s organization to Hong Kong and elsewhere in China, India, Cambodia and Brazil, among other locations.
Additionally, the investigation also revealed that Zhang and members of his organization allegedly conspired to distribute kilogram-sized quantities of cocaine and MDMA to undercover agents and cooperating witnesses. For example, it is alleged that on May 25, 2022, Zhang directed a co-defendant to deliver more than one kilogram of cocaine to an undercover agent in New Jersey. On Aug. 12, 2022, Zhang and co-defendant Yanbing Chen allegedly worked together to deliver more than three kilograms of cocaine to an undercover agent in Boston.
The charge of conspiracy to distribute five kilograms or more of cocaine provides for a mandatory minimum sentence of 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. The charge of conspiracy to distribute 500 grams or more of cocaine provides for a mandatory minimum sentence of five years and up to 40 years in prison, at least four years of supervised release and a fine of up to $5 million. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $500,000, or twice the amount involved, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins and FBI SAC Bonavolonta made the announcement today. The investigation was conducted by the FBI’s Boston Organized Crime Task Force. Valuable assistance was provided by the Massachusetts State Police and the Quincy and Altamonte Springs (Fla.) Police Departments. Assistant U.S. Attorneys Christopher Pohl and Brian A. Fogerty of Rollins’ Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Addendum
The following defendants have been charged:
(1) Jin Hua Zhang, 35, of Staten Island, N.Y.;
(2) Licheng Huang, 39, of Braintree, Mass.;
(3) Feng Chen, 38, of Canton, Mass.;
(4) Roger Luo, 35, of Winthrop, Mass.;
(5) Thong Nguyen, 28, of Saugus, Mass.;
(6) Augustin Villa, 59, of Cranston, R.I.;
(7) FUGITIVE;
(8) Rongjian Li, 35, of Staten Island, N.Y.;
(9) FUGITIVE;
(10) Yanbing Chen, 28, of Staten Island, N.Y.; and
(11) FUGITIVE.
El Dorado Arkansas Group Sentenced to 47 Years Combined in Federal Prison for Drug TraffickingRead the Press Release
EL DORADO – The final member of a South Arkansas drug trafficking organization was sentenced yesterday to federal prison for the Distribution of Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearings for the United States District Court in El Dorado.
According to court documents, beginning in February of 2019, investigators with the 13th Judicial District Drug Task Force, the Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) initiated an investigation into a drug trafficking organization operating out of the El Dorado Division of the Western District of Arkansas. During the course of that investigation, Pharell Jackson and his drug trafficking organization were identified by investigators to be responsible for distributing large quantities of methamphetamine from Magnolia, Arkansas, to other locales in the Western District of Arkansas and the Eastern District of Arkansas.
Those members of the drug trafficking organization indicted federally have been sentenced as follows:
Pharell Bronse Jackson: age 32, El Dorado, Arkansas - Conspiracy to Distribute Methamphetamine – 168 months imprisonment and 3-year term of supervised release.
Michael Fitzgerald Williams Jr.: age 31, North Little Rock, Arkansas - Conspiracy to Distribute Methamphetamine - 120 months imprisonment and 3-year term of supervised release.
Gary Bernard Green II: age 33, Camden, Arkansas - Distribution of Methamphetamine -168 months imprisonment and 3-year term of supervised release.
Jacovas Deonta Mitchell: age 32, El Dorado, Arkansas – Knowing and Intentionally Distributing Methamphetamine – 108 months imprisonment and 3-year term of supervised release.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The 13th Judicial District Drug Task Force, the Drug Enforcement Administration Little Rock, and the FBI investigated the case.
Assistant U.S. Attorneys Benjamin Wulff, Graham Jones, and Steven Mohlhenrich prosecuted the case for the United States.
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.
El Departamento de Justicia llega a un acuerdo con una empresa de Maryland para resolver acusaciones de discriminación relacionadas con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Professional Maintenance Management («PMM»), una empresa de servicios de limpieza y conserjería con sede en Maryland. El acuerdo resuelve la determinación del Departamento de que PMM discriminó a sus trabajadores no ciudadanos estadounidenses mientras verificaba su permiso para trabajar en los Estados Unidos, lo que va en contra de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).
«Los empleadores no pueden tratar a los empleados de manera diferente al verificar su permiso para trabajar por motivo de su ciudadanía, estatus migratorio o nacionalidad de origen», manifestó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá haciendo cumplir con firmeza la ley con el fin de garantizar que los trabajadores no se enfrenten a discriminación a la forma de probar su permiso para trabajar en los Estados Unidos».
La investigación del Departamento determinó que PMM, de manera rutinaria, requería documentos específicos de los no ciudadanos estadounidenses recién contratados a fin de probar que tenían permiso para trabajar en los Estados Unidos. En concreto, el Departamento encontró que PMM solicitaba que los residentes permanentes legales mostraran sus Tarjetas de Residente Permanente (conocidas algunas veces como «tarjetas verdes») y que los asilados y refugiados mostraran sus Documentos de Autorización para Trabajar (conocidos algunas veces como “permisos de trabajo”), a fin de probar que tenían permiso para trabajar. A la misma vez, PMM permitía que los ciudadanos estadounidenses eligieran entre varios tipos de documentos aceptables.
Según los términos del acuerdo, PMM pagará una sanción civil de $300,000 a los Estados Unidos. Además, PMM capacitará al personal sobre los requisitos de la disposición antidiscriminatoria de la INA, cambiará sus políticas y se someterá a supervisión por el Departamento por un período de tres años.
La ley federal permite que los trabajadores elijan la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminatoria de la INA prohíbe que los empleadores soliciten documentos específicos debido a la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. De hecho, muchos no ciudadanos estadounidenses, entre ellos los residentes permanentes legales, refugiados y asilados, califican para presentar varios de los mismos tipos de documentos que presentan los ciudadanos estadounidenses (tales como licencias de conducir y tarjetas de Seguro Social sin restricciones) para demostrar que tienen permiso para trabajar. Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores elijan y no pueden rechazar documentación válida que razonablemente parezca ser genuina.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Encuentre más información en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación durante el proceso de verificación de su permiso para trabajar. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Dominican National Involved in New Haven Drug Ring Sentenced to 10 Years in Federal PrisonRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that NEFTALI FERNANDEZ, 42, a citizen of the Dominican Republic last residing in the Bronx, New York, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 120 months of imprisonment for trafficking cocaine.
This matter stems from a joint investigation headed by the DEA New Haven Task Force, FBI and New Haven Police Department that included the use of court-authorized wiretaps, controlled purchases of heroin and cocaine, and seizures of bulk heroin and cocaine. The investigation revealed that Duane Filyaw, of New Haven, operated a heroin and cocaine trafficking ring in which he conspired with others to purchase narcotics from suppliers and then distribute the drugs to other suppliers of street-level dealers in and around New Haven. Fernandez worked with his associate, Gabriel Romero Escalera-Romero, to supply Filyaw and others with bulk quantities of cocaine.
During the investigation, law enforcement officers seized more than 500 grams of heroin, more than 300 grams of fentanyl, more than one kilogram of cocaine, three firearms, over $90,000 in cash, vehicles, jewelry and precious metals.
On April 19, 2018, a grand jury in New Haven returned an indictment charging Fernandez, Escalera-Romero, Filyaw and 16 other individuals with narcotics trafficking offenses.
Fernandez and several other members of the conspiracy were arrested on April 25, 2018. Fernandez possessed a firearm on the date of his arrest.
Fernandez has been detained since his arrest. In February 2020, he pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute one kilogram or more of heroin and five kilograms or more of cocaine, one count of possession with intent to distribute 500 grams or more of cocaine, and one count of possession of a firearm by a felon.
Fernandez faces deportation proceedings when he completes his prison term.
Filyaw and Escalera-Romero have pleaded guilty. On May 26, 2020, he was sentenced to 60 months of imprisonment. Filyaw awaits sentencing.
The DEA New Haven Task Force includes personnel from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments. The Connecticut Department of Correction, Milford Police Department and East Haven Police Department have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Patrick F. Caruso through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
District Man Indicted for Two Home Invasion Sexual Assaults of Children That Occurred in September and October of 2011Read the Press Release
WASHINGTON – Alphonso Owens, 42, formerly of Washington, D.C., has been indicted by grand juries in the District of Columbia and Prince George’s County, Maryland for two separate home invasion sexual assaults of children that occurred in September and October of 2011.
The indictments were announced today by Matthew M. Graves, U.S. Attorney for the District of Columbia, Robert J. Contee III, Chief of the Metropolitan Police Department (MPD), Aisha N. Braveboy, State’s Attorney for Prince George’s County, and Malik Aziz, Chief of the Prince George’s County, Maryland Police Department.
On July 27, 2022, Owens was indicted by a grand jury in the Superior Court of the District of Columbia for sexually assaulting an 11-year-old child in a home invasion attack that occurred on Oct. 29, 2011. Earlier this week, on Oct. 11, 2022, he was indicted by a grand jury in the Circuit Court for Prince George’s County for sexually assaulting a 10-year-old child in a home invasion attack that occurred on Sept. 26, 2011.
Owens was indicted on multiple felony charges for both attacks. In the District of Columbia, Owens was charged with three counts of first-degree sexual abuse with aggravating circumstances, and three counts of first-degree child sexual abuse with aggravating circumstances. In Prince George’s County, he was charged with first-degree rape, second-degree assault, second-degree sex offense, third-degree sex offense, fourth-degree sex offense, and first-degree burglary.
Owens was linked to both attacks after an analysis of DNA evidence.
He was arraigned earlier today on the D.C. indictment in the Superior Court for the District of Columbia.
The charges in the D.C. indictment carry a statutory maximum sentence of life without possibility of release. If found guilty, Owens would also be required to register as a Class A sex offender for up to the remainder of his lifetime.
The charges in the Prince George’s County indictment carry a statutory maximum sentence of life, with a mandatory minimum of 25 years, and lifetime sex offender registration.
According to the government’s evidence in the D.C. case, in the early morning hours of on Oct. 29, 2011, the 11-year-old child was sleeping in her family’s ground floor apartment in the Fort Stanton area of Southeast Washington when Owens entered through the victim’s bedroom window. He threatened to kill her if she yelled or screamed. As alleged, Owens sexually assaulted her and then fled back out the window. The victim immediately woke up her mother and reported the assault, and her mother called police.
Police believed that the offenses in the District of Columbia and Maryland may potentially have been related. Detectives with MPD’s Cold Case Sexual Assault Unit submitted the D.C. evidence for new DNA testing in 2020. DNA ultimately linked the defendant to both offenses. Owens was a stranger to both juvenile victims and their families.
Owens was convicted in 2016 of first-degree rape for a home invasion sexual assault that he committed in Baltimore in 2015 for which he is currently serving a sentence of 2x life + 25 years in Maryland.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
The District of Columbia case is being investigated by detectives of the Metropolitan Police Department’s Sexual Assault Unit, Cold Case Sexual Assault Unit, Youth Investigations Division, and detectives and officers from the Seventh Police District. Those working on the case from the U.S. Attorney’s Office include Paralegal Specialist Cynthia Muhammad, Victim/Witness Advocate Lezlie Richardson, and Forensic Child Interviewer Tracy Owusu. Assistant U.S. Attorney Lindsay Suttenberg investigated the D.C. case in 2011, and Assistant U.S. Amy Zubrensky, is investigating and prosecuting the D.C. case.
The Maryland case is being investigated by the Sexual Assault Unit of the Prince George’s County Police Department. It is being prosecuted by Assistant State’s Attorney Monica Meyers of the State’s Attorney’s Office for Prince George’s County.
Dallas Man Sentenced to 30 years in Federal Prison for Supplying Heroin in Plano OverdoseRead the Press Release
PLANO, Texas – A Dallas man has been sentenced to federal prison for drug violations related to a 2019 overdose in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jose Antonio Carreto, 31, was convicted by a jury on June 1, 2021, of conspiracy and distribution of heroin resulting in seriously bodily injury, conspiracy to possess with intent to distribute and distribution of methamphetamine, and possession with intent to distribute and distribution of heroin resulting in serious bodily injury aiding and abetting. Carreto was sentenced to 360 months in federal prison by U.S. District Judge Sean D. Jordan on Oct. 13, 2022.
According to information presented in court, on Sep. 25, 2019, law enforcement authorities responded to a heroin overdose on a Plano highway. The victim was administered Narcan and survived the overdose. An investigation revealed that Carreto and his brother, Isauro Carreto-Cruz, had supplied the heroin used in the overdose.
“This case highlights the dangers of illegal drug use,” said U.S. Attorney Brit Featherston. “Although dangerous alone, street heroin often contains chemicals that can cause death or serious bodily injury. We are seeing a drastic increase in illegal drugs poisoned with illegal fentanyl that are causing many deaths around the country. We will take all action within our power to investigate and prosecute those who spread this poison in our communities. We appreciate the great work by the investigators and prosecutor in this case.”
Jose Antonio Carreto and Isauro Carreto-Cruz were indicted by a federal grand jury on Nov. 13, 2019 and both were convicted at trial in June 2021. Isauro Carreto-Cruz was sentenced to 78 months in federal prison on March 11, 2022.
This case was investigated by the Plano Police Department, the Texas Department of Public Safety and the Plano Fire Department and prosecuted by Assistant U.S. Attorney Ernest Gonzalez.
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DOJ sends more than $268,000 to Western Washington to combat gun violenceRead the Press Release
Seattle – U.S. Attorney Nick Brown announced today that the Department of Justice has awarded $268,192 to support the Project Safe Neighborhoods Program in the Western District of Washington. Funding will support community efforts to address the epidemic of gun crime and serious violence in the district. The grant is one of a number of awards being made to state and local agencies across the country. Funds are administered by the Bureau of Justice Assistance, part of the Department’s Office of Justice Programs.
Launched two decades ago as an evidence-based and community-oriented response to serious gun crime, Project Safe Neighborhoods, known as PSN, is a key component of the Department’s Comprehensive Strategy for Reducing Violent Crime, outlined by Deputy Attorney General Monaco in May 2021. The PSN approach is guided by four key 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 of our efforts. The fundamental goal is to reduce violent crime, not simply to increase the number of arrests or prosecutions.
“This year we are expanding the reach of our district’s PSN program by adding partnerships in Clark, Pierce, and Snohomish Counties,” said U.S. Attorney Nick Brown for the Western District of Washington. “We will also partner with the state Office of Firearm Safety and Violence Prevention and our state Attorney General’s Office to identify and fund community strategies that work to prevent gun violence in high-risk populations.”
“Reducing violence and sustaining those reductions will require strong partnerships between criminal justice agencies and community stakeholders and a shared commitment to the safety and well-being of every community member,” said OJP Deputy Assistant Attorney General Maureen Henneberg. “The investments we are making through Project Safe Neighborhoods will enable every stakeholder to play a part in building safer and healthier communities.”
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies and community organizations. The programs’ emphasis on community engagement, prevention and intervention measures, focused and strategic enforcement, and measurement and accountability has helped achieve overall reductions in violent crime, including gun homicides, in neighborhoods where PSN strategies have been implemented.
“Over its two-decade history, Project Safe Neighborhoods has evolved to meet the complex challenges of community violence by enlisting the insights and expertise of local partners and by relying on the latest evidence,” said BJA Director Karhlton F. Moore. “We are proud to support our U.S. Attorneys and their allies in their critical work to curb violent crime and build the mutual trust necessary to ensure lasting success.”
The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about awards under PSN and other OJP grants can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Colorado Woman Sentenced to 22 Years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
ROCK ISLAND, Ill. – A Colorado Springs, Colorado, woman, Monica Renee Wright, 39, of the 1600 block of Auburn Drive, was sentenced on October 12, 2022, to 22 years in prison for conspiracy to distribute and possess with intent to distribute at least 50 grams of actual methamphetamine and at least 500 grams of a mixture and substance containing a detectable amount of methamphetamine.
At the sentencing hearing, Chief U.S. District Judge Sara L. Darrow commented on Wright’s role as the interstate source of supply for kilogram quantities of methamphetamine being transported to and resold in the Central District of Illinois.
Wright was convicted following a three-day jury trial in June 2022. The statutory penalties for conspiracy to distribute and possess with intent to distribute at least 50 grams of actual methamphetamine and at least 500 grams of a mixture and substance containing a detectable amount of methamphetamine are ten years to life imprisonment.
“The distribution of methamphetamine brings blight to our community,” said United States Attorney Gregory K. Harris. “Our office appreciates the work of our federal and local law enforcement partners – both within Illinois and in Colorado – in helping stem the flow of illegal narcotics into our area.”
The investigation was conducted by the Drug Enforcement Administration, Quad City Metropolitan Enforcement Group (QCMEG), Rock Island County Sheriff’s Department, Scott County Sheriff’s Department, and Colorado Springs Police Department. Assistant U.S. Attorneys Alyssa Raya and Jennifer Mathew represented the government at trial.
Clay County Man Pleads Guilty to Federal Child Pornography CrimeRead the Press Release
CHARLESTON, W.Va. – Robert Owen Johnson, 55, of Procious, pleaded guilty today to distribution of child pornography.
According to court documents and statements made in court, on February 20, 2021, Johnson used Facebook and his cell phone to distribute a video of child pornography to another Facebook user during a conversation. Johnson further admitted that between 2020 and 2021, he used this Facebook account to chat with individuals and to possess and distribute child pornography.
Johnson is scheduled to be sentenced on January 11, 2023, and faces a mandatory minimum of five years and up to 20 years in prison, five years up to a lifetime of supervised release, and a $250,000 fine. Johnson must also register as a sex offender.
United States Attorney Will Thompson made the announcement and commended the investigative work of the U.S. Department of Homeland Security-Homeland Security Investigations (HSI).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Kristin F. Scott is prosecuting the case.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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.justice.gov/psc.
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-155.
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Cheektowaga Man Charged with Possession of More Than 200,000 Images of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Michael P. Daly, 47, of Cheektowaga, NY, was charged by criminal complaint with possession of child pornography. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, in June 2019, the New York State Police (NYSP) received a National Center for Missing and Exploited Children (NCMEC) Cybertipline report indicating that an image of child pornography was uploaded to their network. Subsequent investigation traced the image to Daly. On October 22, 2020, NYSP executed a search warrant at Daly’s residence in Cheektowaga, seizing a laptop computer, a flash drive, and an iPhone. A forensic search of all three items recovered over 230,000 images and 95 videos of child pornography. Some of the images include prepubescent minors and depictions of violence.
Daly made an initial appearance before U.S. Magistrate Judge H. Kenneth Schroeder, Jr., and was released on conditions.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Acting Special Agent-in-Charge Jeremy Bell, the New York State Police, under the direction of Major Eugene Staniszewski, and the Cheektowaga Police Department, under the direction of Chief Brian Gould.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.# # # #
Charleston Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Colin Webb, 33, of Charleston, was sentenced today to six years in prison, to be followed by four years of supervised release, for distribution of 5 or more grams of methamphetamine.
According to court documents and statements made in court, on February 13, 2020, Webb sold approximately 2 ounces of methamphetamine to a confidential informant for $760 in a Kanawha City parking lot. Webb admitted that he sold more than 150 grams of methamphetamine to confidential informants in a series of four controlled buys between February 13, 2020, and July 28, 2020. Webb further admitted that a large-scale drug trafficking organization supplied him with the methamphetamine over a series of years.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Negar M. Kordestani 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. 2:22-cr-53.
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Caswell Woman Faces 10 Years to Life and up to a $10M Fine Following Seizure of 92 lbs. of Methamphetamine and 5 HandgunsRead the Press Release
BANGOR, Maine: A Caswell woman pleaded guilty in U.S. District Court in Bangor today to possession of more than 500 grams of methamphetamine with the intent to distribute and possession of firearms by an unlawful user of controlled substances, U.S. Attorney Darcie N. McElwee announced.
According to court records, on May 5, 2022, Nicole McLaughlin, 41, was in a single-vehicle car accident in Presque Isle. Responding officers from the Presque Isle Police Department discovered methamphetamine, drug paraphernalia and a handgun in her vehicle. Agents with the Maine Drug Enforcement Agency responded and investigated further. A search of McLaughlin’s residence resulted in the seizure of a large safe containing approximately 92 pounds of methamphetamine, four handguns, including one with an obliterated serial number, and documents bearing her name.
McLaughlin faces a mandatory minimum of 10 years and up to life imprisonment and a $10 million fine on the drug charge, and up to 10 years imprisonment and a $250,000 fine on the firearm charge. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Maine Drug Enforcement Agency and the U.S. Drug Enforcement Administration investigated the case, with assistance from the Presque Isle Police Department and the Maine State Police. U.S. Attorney McElwee thanked the Aroostook County District Attorney’s Office for the consultation and coordination it provided.
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Canal Winchester man sentenced to 5 years in prison for romance scam money laundering conspiracyRead the Press Release
COLUMBUS, Ohio – A Canal Winchester man who was found guilty of 35 counts of money laundering crimes following a jury trial in May was sentenced today in federal court to 60 months in prison.
Seth Nyamekye, 40, was also ordered to pay more than $1.3 million in restitution to the victims of the romance fraud.
Nyamekye was convicted for his role in laundering the proceeds of online romance scams.
“This defendant helped fraudsters prey on vulnerable peoples’ desires for love and connection,” said U.S. Attorney Kenneth L. Parker. “Nyamekye conducted financial transactions to conceal that money was generated by fraud and to get the money to co-conspirators in Ghana. He deserves the sentence he received today.”
According to court documents and trial testimony, the perpetrators of the romance scams created several profiles on online dating sites and then contacted men and women throughout the United States and elsewhere. The scammers cultivated a sense of affection and, often, romance, with the victims they met online before requesting money for investment or need-based reasons. The romance scam perpetrators then provided victims with bank account information where the money should be sent. Nyamekye controlled one of these accounts and received more than $1.3 million in romance fraud proceeds from victims. Nyamekye was not charged with defrauding the victims himself, but instead was charged with laundering the proceeds of the romance fraud.
The government proved beyond a reasonable doubt at trial that Nyamekye laundered the victims’ money on behalf of the conspiracy. The defendant conspired with others from at least June 2016 until February 2018 to commit money laundering in multiple transactions of more than $10,000 with the purpose of concealing the fraudulent nature of the proceeds.
At least eight victims sent their money directly to Nyamekye’s bank account, which was in the name of Gloseth Ventures LLC. For example, one victim was defrauded by a purported member of the military and sent a $170,000 wire transfer to Nyamekye’s bank account. Another victim fell in love with a man he met online who also claimed to be in the military overseas and sent two wire transfers to Nyamekye totaling $73,000. A separate victim believed she was engaged to the man who was scamming her and sent $50,000 to the defendant’s bank account.
After the funds were deposited into Nyamekye’s bank account, Nyamekye took a cut of the victims’ money and then conducted financial transactions to move the funds where the perpetrators of the romance fraud could enjoy the criminal proceeds.
Nyamekye was charged by a criminal complaint in October 2020 and was later indicted in May 2021.
If you believe you are the victim of an online romance scam, you can file a complaint at ic3.gov.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; and Bryant Jackson, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS-CI), Cincinnati Field Office, announced the verdict. Assistant United States Attorneys Peter K. Glenn-Applegate and David J. Twombly represented the United States in this case.
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Butte nurse sentenced to prison for stealing opiates from area medical centersRead the Press Release
MISSOULA — A Butte nurse who admitted to stealing opiates while working at area medical centers was sentenced today to one year and one day in prison, to be followed by one year of supervised release, U.S. Attorney Jesse Laslovich said.
Shantyl Marie Giacoletto, 30, pleaded guilty in June to unlawfully obtaining controlled substances.
U.S. District Judge Dana L. Christensen presided. Giacoletto was remanded into custody.
The government alleged in court documents that Giacoletto diverted opiates in 2021 while working at medical centers in Anaconda, Butte and Deer Lodge. In June 2021, a Community Hospital of Anaconda manager discovered that Giacoletto, for at least the previous three months, routinely obtained oxycodone from the hospital’s pharmacy but did not administer that drug to the intended patients. A total of 392 oxycodone pills were unaccounted for. When confronted by management, Giacoletto denied diverting drugs, claimed she always administered them to patients and that “nobody scans things.” Other employees discredited Giacoletto’s assertion and indicated it would be “extremely rare” for someone to not record the administration of a drug to a patient. The hospital terminated Giacoletto’s employment.
The government further alleged that Giacoletto began working at Copper Ridge Health and Rehabilitation Center in Butte 11 days later. Copper Ridge subsequently discovered diversions of hydrocodone, and that Giacoletto had worked shifts at Copper Ridge within days of management discerning the diversions.
Another diversion occurred in October 2021 at Continental Care and Rehabilitation Center in Butte, where Giacoletto worked as a traveling nurse. Dozens of hydrocodone and oxycodone tables were unaccounted for and patient log sheets had been manipulated and destroyed in violation of record-keeping policies. Because of the diversion, a patient had to go without oxycodone for several days until a new supply arrived. Management then announced a drug screening, and most nurses provided urine samples, which were all negative for the diverted drugs. Giacoletto did not submit to the drug test and did not return to work at that facility.
A subsequent diversion occurred in November 2021 at The Ivy in Deer Lodge. The Ivy experienced a significant drug diversion while Giacoletto was working there as a nurse. The director then requested urine samples from the staff. All complied and tested negative except for Giacoletto, who refused and left the facility. Giacoletto’s employer then contacted her and instructed her to provide a sample. Giacoletto returned to the facility several hours later and requested a specific bathroom for the drug test. When she provided the sample, it was cold, which yielded an inconclusive result.
When interviewed by a DEA agent, Giacoletto denied diverting drugs and blamed the medication discrepancies on the poor record keeping practices at the facilities.
Assistant U.S. Attorney Karla E. Painter prosecuted the case, which was investigated by the Drug Enforcement Administration, the Anaconda Police Department, Powell County Sheriff’s Office and Montana Division of Criminal Investigation.
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Box Elder man sentenced to prison for fentanyl trafficking on Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS — A Box Elder man who admitted trafficking fentanyl on the Rocky Boy’s Indian Reservation after fleeing law enforcement in a vehicle in which officers found a firearm and fentanyl pills was sentenced today to one year and eight months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Paul Joseph The Boy, 33, pleaded guilty in July to possession with intent to distribute fentanyl.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Oct. 6, 2021, The Boy got into a high-speed chase with a Rocky Boy’s police officer. As The Boy fled while driving more than 100 mph, officers saw The Boy in possession of a firearm. The Boy then drove into an embankment and fled. Officers searched the abandoned vehicle and found 74 fentanyl pills, $1,171 in cash and a semi-automatic pistol. The Boy later acknowledged that he led law enforcement on a pursuit because he didn’t want to go to jail and that the pistol and fentanyl belonged to him.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case, which was investigated by the FBI, Rocky Boy’s Police Department, Chippewa Cree Tribal Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives and Drug Enforcement Administration.
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Billings man sentenced to more than seven years in prison for trafficking meth, fentanyl on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS — A Billings man who admitted trafficking methamphetamine and fentanyl pills on the Fort Peck Indian Reservation after he tried to flee law enforcement on a dirt bike and discarded a backpack containing drugs and a loaded handgun was sentenced today to seven years and four months in prison to be followed by four years of supervised release, U.S. Attorney Jesse Laslovich said.
Dominique Kendall Brown, 29, pleaded guilty in July to possession with intent to distribute controlled substances.
Chief U.S. District Judge Brian M. Morris presided.
In court documents, the government alleged that on Aug. 6, 2021, Fort Peck Law Enforcement officers tried to stop Brown for a traffic infraction on a dirt bike near Wolf Point. Brown sped away, initiating a 10-minute pursuit in which he drove at high speeds on a walking path near pedestrians. During the pursuit, Brown discarded a backpack with a loaded hand gun inside. Brown eventually crashed and his dirt bike started a fire, which law enforcement extinguished. The backpack also contained $1,131 cash, a scale, 109 grams of meth and 146 fentanyl pills.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the FBI, Montana Highway Patrol, Fort Peck Police Department and Roosevelt County Sheriff’s Office.
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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Beverly Farms Man Indicted for Multi-Million-Dollar Payroll SchemeRead the Press Release
BOSTON – A Beverly Farms man was charged today in a 13-count indictment in connection with a payroll scheme involving underreporting of overtime hours for his union employees and failing to collect and pay payroll taxes.
Frank Loconte, 61, was indicted on four counts of mail fraud, one count of theft or embezzlement from an employee benefit plan, four counts of making false statements pertaining to the Employee Retirement Income Security Act (ERISA) and four counts of willful failure to collect and pay taxes. Loconte will appear in federal court in Boston today at 3:30 p.m.
According to the indictment, from 2009 to 2022, Loconte was the president of NER Construction Management Corporation, a Wilmington-based construction company that employed union workers. Loconte was also the president of the company’s employment management company, NER Management LLC. Loconte was responsible for collective bargaining with multiple unions, including the Bricklayers and Allied Craftsmen Local Union No. 3 and various local unions affiliated with the Massachusetts and Northern New England Laborers’ District Council of the Laborers International Union of North America. On behalf of NER, Loconte was bound by collective bargaining agreements with the unions which governed the transfer of worker benefit contributions to employee welfare and pension benefit plans, each of which was subject to ERISA provisions. As a result, NER was required to make periodic contributions to the benefit funds each hour worked by covered employees at rates prescribed and to deduct dues from the pay of each union worker which was also to be forwarded to the benefit funds.
It is alleged that from approximately January 2014 and May 2022, Loconte engaged in a scheme to defraud the union benefit funds and the IRS by paying certain of its union workers for overtime hours worked without reporting these hours to the union benefit funds and without making the required payroll tax withholdings and payments. At times, it is alleged that some NER employees were paid entirely in cash for overtime hours worked and, at other times, the employees were paid by check without the required withholdings. Loconte also allegedly caused NER to file false and fraudulent remittance reports with the benefit funds and the unions which underreported the overtime hours worked by these employees thereby depriving the benefit funds and unions of contributions owed to their members. It is further alleged that Loconte caused NER to file false and fraudulent IRS payroll taxes that underreported the amount of wages paid. Instead of paying employment taxes, Loconte used NER business accounts to pay for personal expenses, including vehicles, personal property taxes, household improvements, and golf memberships, and failed to report these benefits to the IRS, as required by the IRS. As a result, Loconte allegedly defrauded union workers of more than $l million dollars for overtime work covered by the collective bargaining agreements and defrauded the IRS of more than $3 million by not making the required payroll tax and union dues withholdings and payments.
The charges of mail fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charges of embezzlement from an employee benefit plan, making false statements and willful failure to collect and pay over taxes each provide for a sentence of up to five years in prison, two 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 Rachael S. Rollins; Carol S. Hamilton, Regional Director, U.S. Department of Labor, Employee Benefits Security Administration, Boston Regional Office; Jonathan Russo, District Director, U.S. Department of Labor, Office of Labor-Management Standards; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigations; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistant U.S. Attorney Laura J. Kaplan of Rollins’ Criminal Division is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ashland Man Sentenced to 10 Years for Second Child Pornography ConvictionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Adam M. Smith, 35, of Ashland, Wisconsin, pleaded guilty and was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 10 years in prison for possessing child pornography. Judge Peterson gave the defendant credit for the approximately one year he has spent in custody already. The term of imprisonment will be followed by 10 years of supervised release.
On August 11, 2020, Smith was released from state custody after serving three years in prison for possessing child pornography. On September 20, 2021, the defendant’s probation officer searched his phone and found a reference to a tablet. Smith’s conditions of probation required him to notify his probation officer of any electronic devices that he possessed, and he failed to disclose the tablet. The probation officer then found a tablet in Smith’s car. Law enforcement officers searched the tablet and found numerous child pornography images and videos.
The charge against Smith was the result of an investigation conducted by the Ashland Police Department and the Wisconsin Department of Justice Division of Criminal Investigation. Assistant U.S. Attorney Elizabeth Altman prosecuted this case.
Arkansas Mother and Daughter Sentenced to Seven Years Combined in Federal Prison for Bank Fraud, Identity Theft and Theft of Government FundsRead the Press Release
FORT SMITH – A Fort Smith mother and daughter were sentenced today to a combined sentencing of seven years in federal prison and ordered to pay $53,000.00 in restitution for Bank Fraud, Identity Theft and Theft of Government Funds. Amanda Komp, 39, was sentenced to 4 years in prison while Tammy McCullough, 58, was sentenced to 3 years in prison. The Honorable Judge P.K. Holmes, III presided over the sentencing hearing in the U.S. District Court in Fort Smith.
According to court documents and evidence presented at trial, Komp worked as Housing Manager at Fort Chaffee from approximately 2014 to September 2019. Komp’s duties included processing payments from funds belonging to the United States government held in the Fort Chaffee billeting fund checking account at Regions Bank. The approval process for expenditures from this account required Komp to obtain the signatures of two members of the Fort Chaffee Lodging Advisory Council on purchase requests and checks payable from the billeting fund account.
From on or about December 26, 2017, to on or about September 3, 2019, sixty-eight checks totaling $53,000 were issued and paid from the Fort Chaffee billeting fund account at Regions Bank for furniture moving services claimed to have been provided to Fort Chaffee by Triple M Enterprises, a company owned by Komp’s mother, Tammy McCullough. Several of the checks and purchase orders contained forged signatures and the furniture moving services for which the checks were issued were not provided as claimed in invoices submitted by Triple M Enterprises.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The FBI investigated the case.
Assistant U.S. Attorney’s Kenneth Elser and Bryan Achorn prosecuted the case.