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Thursday 25 August 2022
New Orleans Resident Pleads Guilty to Role in Interstate Car Theft RingRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JONATHAN BUSH, age 35, a resident of New Orleans, Louisiana, pleaded guilty on August 23, 2022 before Chief United States District Judge Nannette Jolivette Brown to conspiring to transport and sell stolen cars across state lines in violation of 18 U.S.C. § 371 (conspiracy).
According to the indictment, BUSH and his co-conspirators stole cars from car dealerships and rental car facilities in Louisiana, Mississippi, Alabama, and Georgia. After the cars were stolen, these defendants would retitle the cars under fraudulent Vehicle Identification Numbers (VINS) with the Louisiana Office of Motor Vehicles. After the cars were retitled and cloned with fraudulent VINS, the defendants would then resell the cars to buyers in the New Orleans metro area at discounted prices.
At sentencing, which is set for December 8, 2022, BUSH faces a maximum term of imprisonment of five years, a maximum fine of up to $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the Louisiana State Police in investigating this matter. Assistant U. S. Attorneys Spiro G. Latsis and Jon Maestri are in charge of the prosecution.
New Orleans Resident Pleads Guilty to Role in Interstate Car Theft RingRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that GREGORY BUTLER, age 38, a resident of New Orleans, Louisiana, pleaded guilty on August 24, 2022 before Chief U.S. District Judge Nannette Jolivette Brown to conspiring to transport and sell stolen cars across state lines in violation of 18 U.S.C. § 371 (conspiracy).
According to the indictment, BUTLER and his co-conspirators stole cars from car dealerships and rental car facilities in Louisiana, Mississippi, Alabama, and Georgia. After the cars were stolen, these defendants would retitle the cars under fraudulent Vehicle Identification Numbers (VINS) with the Louisiana Office of Motor Vehicles. After the cars were retitled and cloned with fraudulent VINS, the defendants would then resell the cars to buyers in the New Orleans metro area at discounted prices.
At sentencing, which is set for December 8, 2022, BUTLER faces a maximum term of imprisonment of five years, a maximum fine of up to $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the Louisiana State Police in investigating this matter. Assistant U. S. Attorneys Spiro G. Latsis and Jon Maestri are in charge of the prosecution.
New Haven Man Sentenced to 5 Years in Federal Prison for Distributing FentanylRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that VINCENT CLARK, also known as “Pudge,” 26, of New Haven, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, between March and May 2021, law enforcement made six controlled purchases of redistribution quantities of fentanyl and heroin from Clark in New Haven. As the time of the drug sales, Clark was on state parole for a 2019 narcotics conviction.
Clark has been detained since his arrest on June 7, 2021. On November 29, 2021, he pleaded guilty to possession with intent to distribute, and distribution of, fentanyl.
This investigation was conducted by the DEA’s New Haven Task Force, which 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.
This case was prosecuted by Assistant U.S. Attorney Tara E. Levens 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.
Mortgage Loan Officer and Real Estate Agents Charged in Mortgage Fraud Scheme in Central ValleyRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment against German Antonio Lopez-Velasquez, 55, of Modesto; Marko Antonio Lopez, 27, of Modesto; and Lisa Marie Santos, 48, of Long Beach, charging them with bank fraud and conspiracy to commit bank fraud, U.S. Attorney Phillip A. Talbert announced.
Lopez-Velasquez was also charged with witness tampering. He is alleged to have attempted to persuade an individual to make false statements to law enforcement officers regarding a mortgage loan under investigation.
According to court documents, Lopez-Velasquez and Lopez, who were both real estate agents, worked with Santos, a mortgage loan officer, to obtain fraudulent mortgage loans for properties based in Stanislaus County, San Joaquin County, Santa Clara County, and elsewhere. The three utilized false documents, fictional companies, and fictional individuals to obtain mortgage loans for borrowers who were not qualified to receive loans. In total, the defendants caused lenders to issue at least 30 loans based on false information with a total principal loan balance exceeding $10 million.
This case is the product of an investigation by the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), the U.S. Department of Housing and Urban Development – Office of Inspector General (HUD-OIG), and the U.S. Postal Inspection Service (USPIS). Assistant U.S. Attorney Jeffrey A. Spivak is prosecuting the case.
“The FHFA-OIG is committed to holding accountable those who waste, steal, or abuse the resources of the Government-Sponsored Enterprises regulated by FHFA, which the defendants have been charged with defrauding,” said Jay Johnson, Special Agent in Charge, FHFA-OIG, Western Regional Office. “We are proud to have worked with the U.S. Attorney’s Office and our law enforcement partners on this case and to demonstrate, once again, that FHFA-OIG will investigate and hold accountable those who seek to victimize the Government-Sponsored Enterprises supervised and regulated by FHFA.”
“This case demonstrates HUD OIG’s commitment to pursuing and bringing to justice those who put Federal programs, such as the FHA Mortgage Insurance Fund at risk for their own enrichment,” said Special Agent in Charge Mark T. Kaminsky with HUD OIG Office of Investigation. “HUD OIG remains committed to working with our law enforcement partners and the US Attorney’s Office, Eastern District of California to investigate and hold accountable those who perpetrate mortgage fraud in central California.”
If convicted, the defendants face a maximum statutory penalty of 30 years in prison and a $1 million fine for bank fraud and conspiracy to commit bank fraud. If convicted, Lopez‑Velasquez faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for witness tampering. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Montpelier Woman Sentenced to 21 Months in PrisonRead the Press Release
FORT WAYNE – Katina Miller, 50 years old, of Montpelier, Indiana, was sentenced by United States District Court Judge Holly A. Brady on her plea of guilty to wire fraud, announced United States Attorney Clifford D. Johnson.
Miller was sentenced to 21 months in prison followed by 2 years of supervised release and was ordered to pay $86,755.39 in restitution.
According to documents in the case, Miller was the Trustee of Bearcreek Township, located in Jay County, Bryant Indiana between January 2015 and December 2018. As the Trustee, Miller was responsible for the financial processes of the Township. Miller violated her fiduciary responsibility to the citizens of Bearcreek Township by converting public money for her own personal benefit. The investigation revealed Miller had embezzled $86,755.39 by using Bearcreek Township bank accounts to make cash withdrawals and purchases for personal and unauthorized transactions.
This case was investigated by Federal Bureau of Investigation with the assistance of the Indiana State Board of Accounts. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
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Missouri doctor sentenced to year in prison for healthcare fraud, he and wife ordered to repay $235,000Read the Press Release
ST. LOUIS – U.S. District Judge E. Richard Webber on Thursday sentenced a doctor from Town and Country, Missouri to a year in prison for a health care fraud scheme and ordered he and his wife to repay $235,977.
On over 1,000 occasions spanning nearly a decade, Dr. Abdul Naushad, 58, and Wajiha Naushad, 47, had their unwitting patients injected with cheaper, foreign Orthovisc that had not been approved by the Food and Drug Administration, Assistant U.S. Attorney Derek Wiseman said in court. The Naushads betrayed the trust of elderly and impoverished patients to fund a lavish lifestyle that included a $2 million mansion, two vacation houses and four luxury cars, Wiseman said.
FDA-approved Orthovisc, which is sold by authorized distributors in the United States, comes in a pre-filled syringe. It is injected into the knee to relieve osteoarthritis pain and is available only by prescription.
The Naushads concealed their actions from patients, employees and publicly-funded health insurance programs by, among other things, stonewalling questions from their chief of purchasing. After a shipment of foreign, unapproved injections was seized by the FDA, the Naushads had the next shipment sent to their home.
Wajiha Naushad lied to her compliance officer and friend by telling her the injections came from a distributor in the U.S., and fraudulently persuaded the compliance officer that the Orthovisc had a required National Drug Code number.
A jury in April convicted the couple of one conspiracy count and one count of health care fraud. Wajiha Naushad was sentenced Thursday to three years of probation.
“Injectable unapproved medical devices that are smuggled from unknown foreign sources and come from outside the secure supply chain can present a serious health risk to patients who receive them,” said Special Agent in Charge Charles L. Grinstead with the Kansas City Field Office of the Food and Drug Administration’s Office of Criminal Investigations. “Not only are the device components completely unknown, the conditions under which they are manufactured and held are outside the regulatory scrutiny of the legitimate supply chain. We will continue to investigate and bring to justice those who traffic in illegal unapproved medical products,” he said.
Special Agent in Charge Curt L. Muller with the U.S. Department of Health and Human Services Office of Inspector General said, “The Naushads went to significant lengths to conceal their repeated use of and billing for a medication that they did not actually provide to patients. In addition to the defendants misleading patients and staff about the substance used for these injections, the Naushads deceived federal health care programs into reimbursing for a more expensive medication than was used. For HHS-OIG and our law enforcement partners, ceasing fraudulent activity that targets these programs is a top priority.”
The Food and Drug Administration Office of Criminal Investigations, the Drug Enforcement Administration, the Department of Health and Human Services and the Missouri Medicaid Fraud Control Unit investigated the case. Assistant U.S. Attorneys Derek Wiseman and Dorothy McMurtry prosecuted the case.
Mexican national sent to prison for firearm chargeRead the Press Release
LAREDO, Texas – A 34-year-old Mexican national illegally residing in Zapata has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Jennifer B. Lowery.
Abelardo Javier Caballero-Zamora pleaded guilty Jan. 5.
Today, U.S. District Judge Diana Saldana ordered Caballero-Zamora to serve 63 months in federal prison. Not a U.S. citizen, Caballero-Zamora is expected to face removal proceedings following his imprisonment.
At the hearing, the court heard additional evidence that described how Caballero-Zamora admitted to relatives on recorded jail calls that he had been consuming drugs continuously for several days prior to the offense, but claimed to have no memory of it. Judge Saldana also noted his lengthy criminal record was an “absolute nightmare” and admonished him directly, telling him he needed to “grow up” and remain in Mexico.
On April 3, 2021, authorities responded to an emergency call reporting Caballero-Zamora was threatening people at a local motel. Law enforcement arrived to the location and found Caballero-Zamora illegally in possession of a loaded .44 caliber revolver. The Investigation revealed Caballero-Zamora had also pointed a handgun at a local Zapata store clerk earlier that same day.
As both an undocumented alien and a felon, he is prohibited from possessing a firearm or ammunition per federal law. Caballero-Zamora was previously convicted in 2020 of illegally re-entering the United States after a previous deportation, a felony.
Caballero-Zamora will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the Zapata County Sheriff’s Office. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Media Advisory – Press Conference AnnouncementRead the Press Release
FAYETTEVILLE, N.C. – United States Attorney Michael Easley, along with representatives from the Fayetteville Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) will hold a press conference on Friday, August 26 to announce the sentence of Reshod Everett, a convicted armed drug trafficker who ran his operation out of his home, which he also operated as a daycare center.
WHERE: Council Chambers in City Hall - 433 Hay Street, Fayetteville
WHEN: TOMORROW (FRIDAY) at 11:00 a.m.
Media, please arrive at by 10:30 a.m. for set up.
Credentialed members of the media are invited to attend. For additional information, please e-mail Don Connelly at [email protected]. Please RSVP your intentions to attend the event.
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McLaughlin Man Convicted for Aggravated Sexual Abuse of Children and Witness TamperingRead the Press Release
United States Attorney Alison J. Ramsdell announced that Jerome Moses Goodhouse, Jr., age 30, of McLaughlin, South Dakota, was found guilty of two counts of Aggravated Sexual Abuse of a Child and one count of Witness Tampering as a result of a federal jury trial in Aberdeen, South Dakota. The verdict was returned on August 24, 2022.
The charges carry a mandatory minimum of 30 years up to life in prison and/or a $250,000 fine, up to a lifetime of supervised release, and a $300 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Goodhouse was indicted by a federal grand jury in January of 2022.
In 2017, Goodhouse sexually abused two minor children in McLaughlin on the Standing Rock Sioux Indian Reservation. After abusing one minor, he threatened her and told her to remain quiet about what he did to her.
This case was investigated by the FBI and the Bureau of Indian Affairs, Office of Justice Services, Standing Rock Agency. Assistant U.S. Attorneys Cameron J. Cook and Carl Thunem prosecuted the case.
A presentence investigation was ordered, and a sentencing date was set for November 14, 2022. The defendant was immediately remanded to the custody of the U.S. Marshals Service.
Marrero Resident Pleads Guilty to Role in Interstate Car Theft RingRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that TAWUAN SYLVESTER, age 47, a resident of New Orleans, Louisiana, pleaded guilty on August 23, 2022 before Chief U.S. District Judge Nannette Jolivette Brown to conspiring to transport and sell stolen cars across state lines in violation of 18 U.S.C. § 371 (conspiracy).
According to the indictment, SYLVESTER and his co-conspirators stole cars from car dealerships and rental car facilities in Louisiana, Mississippi, Alabama, and Georgia. After the cars were stolen, these defendants would retitle the cars under fraudulent Vehicle Identification Numbers (VINS) with the Louisiana Office of Motor Vehicles. After the cars were retitled and cloned with fraudulent VINS, the defendants would then resell the cars to buyers in the New Orleans metro area at discounted prices.
At sentencing, which is set for December 8, 2022, SYLVESTER faces a maximum term of imprisonment of five years, a maximum fine of up to $250,000, a maximum term of supervised release of three years, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security and the Louisiana State Police in investigating this matter. Assistant U. S. Attorneys Spiro G. Latsis and Jon Maestri are in charge of the prosecution.
Man Who Trafficked 13-Year-Old Out of Irving Hotel Sentenced to 11+ Years in Federal PrisonRead the Press Release
A 36-year-old man who trafficked a 13-year-old girl out of a hotel room in Irving was sentenced Wednesday to more than 11 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Curtis Vance Mathis was indicted in December 2019 and pleaded guilty to sex trafficking of children in June 2021. He was sentenced yesterday by U.S. District Judge Ed Kinkeade to 135 months in prison.
“Those who exploit minors for the commercial sex industry have no regard for human decency. These predators are responsible for initiating a pattern of mental and physical abuse that is often hard for their victims to overcome ,” said Jesse Woods, Assistant Special Agent in Charge Homeland Security Investigations Dallas. “Anyone who engages in this type of criminal behavior should know that HSI and its law enforcement partners of the North Texas Trafficking Task Force will work endlessly to remove these predators from our communities.”
According to plea papers, Mr. Mathis admitted that he advertised a 13-year-old girl’s sexual services on numerous commercial sex websites, including CityXGuide, a site the feds seized in summer 2020. (CityXGuide’s owner, Wilhan Martono, subsequently pleaded guilty to reckless disregard of sex trafficking and conspiracy to engage in interstate transportation in aid of racketeering and is awaiting sentencing. The site remains out of commission.)
In Oct. 2019, Mr. Mathis met the child and began posting her for commercial sex on websites and thereafter took those proceeds. After a disagreement, the child left, but returned to him only a few weeks later.
On Nov. 4, 2019, Mr. Mathis brought the child to a hotel room in Irving, where she met with multiple customers, including, allegedly, Kention Johnson and Sergio Carvajal. (Mr. Johnson and Mr. Carvajal have both been charged with conspiracy to commit sex trafficking and sex trafficking of children; their cases are pending and they remain innocent until proven guilty in court.)
Meanwhile, law enforcement agents working the missing child case noticed her photograph on a CityXGuide advertisement. An undercover agent texted the associated phone number to arrange a meeting at the hotel. Posing as a commercial sex customer, he identified the room she used to meet customers and immediately recovered the child from the room.
Agents later reviewed surveillance video from the hotel and observed Mr. Mathis rent a room, escort the child upstairs, leave her there, and then return after her customers departed to retrieve cash.
Homeland Security Investigations’ Dallas Field Office conducted the investigation with assistance from the Fort Worth Police Department. Assistant U.S. Attorney Myria Boehm prosecuted the case with help from Assistant U.S. Attorneys Rebekah Ricketts (fmr.) and Cara Foos Pierce (fmr.).
Man Who Sexually Assaulted 13-Year-Old on Mission Trip Sentenced to 20+ YearsRead the Press Release
A 24-year-old man who sexually assaulted a child while on a mission trip in El Salvador was sentenced today to more than 20 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Bryce Rawson, of Liberty, South Carolina, pleaded guilty in April to engaging in illicit sexual conduct in a foreign place, that is, sex acts with a minor. He was sentenced Thursday by U.S. District Judge Mark Pittman to 250 months in prison.
According to court documents, Mr. Rawson applied and was accepted to participate in a mission trip to El Salvador.
On July 5, 2018, he flew from DFW to El Salvador, where he stayed at the “Hope Center,” a property maintained by the religious organization sponsoring the mission trip. There, he met a 13-year-old girl who was also participating in the mission.
On July 22, he sexually assaulted the child on a balcony at the center.
Homeland Security Investigations’ Dallas and Tampa Field Offices conducted the investigation with the Pinellas County Sheriff’s Office. Assistant U.S. Attorney Aisha Saleem, CEOS trial attorney Charles Schmitz, and Alex Lewis are prosecuting the case.
Lower Brule Woman Charged with Aiding and Abetting LarcenyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Lower Brule, South Dakota, woman has been indicted by a federal grand jury for Aiding and Abetting Larceny.
Stacey Flute, age 32, was indicted in May of 2022. She appeared before U.S. Magistrate Judge Mark A. Moreno on August 22, 2022, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
LaRoche was indicted by a federal grand jury on January 11, 2022.
The Indictment alleges that between March 1, 2018, and May 1, 2018, at Lower Brule, Flute did unlawfully take and carry away with intent to steal and purloin the personal property of another, and did aid and abet in the same. The Indictment further alleges that the property in question had a value in excess of $1,000.
The charge is merely an accusation and Flute is presumed innocent until and unless proven guilty.
The investigation is being conducted by the FBI and the Bureau of Indian Affairs – Office of Justice Services, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Flute was detained pending trial. A trial date has not been set.
Licensed Federal Firearm Dealer Pleads Guilty to Committing Firearm Violations with Unlicensed DealerRead the Press Release
SAN ANTONIO – A Liberty Hill man pleaded guilty yesterday for his role in facilitating the dealing of firearms by an unlicensed co-conspirator.
According to court documents, Michael Anthony Flynn, 46, is a federally licensed firearm dealer who aided a co-conspirator in a business arrangement akin to straw purchasing. From October 2019 to February 2022, Truett Shane Street, 56, of Lakeway, conspired with Flynn to purchase bulk quantities of firearms through various gun brokers and other online retailers. Street then provided the firearms to Flynn, who sold them through his business, Strategic Dynamic International. After selling the firearms Street purchased, Flynn repaid him in cash.
At least 212 firearms were purchased online by Street and sold through Flynn’s business, primarily at gun shows in the San Antonio area.
Flynn pleaded guilty to one count of aiding and abetting someone engaged in the firearms business without a license. A sentencing date has not been set. On July 21, 2022, Street pleaded guilty to one count of engaging in the firearms business without a license. Street is scheduled for sentencing on November 30, 2022. Both men face up to five years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Oliver E. Rich Jr.; and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski made the announcement.
The FBI and ATF are investigating the case.
Assistant U.S. Attorneys William F. Calve and Matthew Kinskey are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results. Anonymous tips involving gang crime and wanted fugitives can be submitted at www.stopsanantoniogangs.org.
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Lebanon Man Charged with Cocaine-Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Warionex Martinez-Medina, age 34, of Lebanon, Pennsylvania, was indicted yesterday by a federal grand jury for drug-trafficking and firearms offenses.
According to United States Attorney Gerard M. Karam, the indictment alleges that on March 24, 2022, Martinez-Medina attempted to possess with intent to distribute at least 500 grams of cocaine. The indictment also alleges that Martinez-Medina possessed a handgun in furtherance of that crime.
The case was investigated by the U.S. Postal Inspection Service and the Pennsylvania State Police. Assistant U.S. Attorney Carlo D. Marchioli is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The maximum penalty under federal law for these offenses is imprisonment for life, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Leader of Cocaine Trafficking and Money Laundering Organization Is Sentenced to 20 Years in Federal PrisonRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Kenneth D. Bell handed down a 20-year sentence to the leader and organizer of a cocaine trafficking and money laundering organization operating in the Carolinas and across the country, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Jervonta Antonio Walker, also known as Bruce Hudson and Stunna, 39, of Los Angeles, California, was ordered to serve five years of supervised release.
U.S. Attorney King is joined in making this announcement by Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Charlotte District Office; Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS), which oversees Charlotte; Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina; and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
According to filed documents and court proceedings, between 2014 and September 2020, Walker led a drug conspiracy responsible for trafficking approximately 1,000 kilograms of cocaine from California into North Carolina and South Carolina and laundered the criminal proceeds. During the investigation, law enforcement seized 30 kilograms of cocaine, one kilogram of heroin, and approximately $500,000 in cash. Walker previously pleaded guilty to conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute cocaine.
Judge Bell has previously sentenced Walker’s co-defendants as follows:
- Jared Shemaiah Jones, 39, of Alphaetta, Georgia, was sentenced to 360 months in prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine, conspiracy to commit money laundering, and possession with intent to distribute cocaine.
- Jasneko Marquell Wright, 35, of Newberry, S.C., was sentenced to 120 months in prison, followed by five years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy.
- Joel Mark Walker, 36, of Columbia, S.C., was sentenced to 84 months in prison, followed by two years of supervised release, for money laundering conspiracy.
- Jarmel Brownlee, 31, of Charlotte, N.C., was sentenced to 60 months in prison followed by four years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine and money laundering conspiracy.
- Nathasha Lawes, 33, of Clover, S.C., was sentenced to 36 months in prison, followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
- Phonesavanh Phonesavang, 39, of Charlotte, was sentenced to 36 months in prison, followed by three years of supervised release, conspiracy to distribute and to possess with intent to distribute cocaine and possession with intent to distribute cocaine.
- Marlaina Nashae Smoot, 27, of Newberry, S.C., was sentenced to 24 months in prison, followed by three years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine.
- Judiet Vontella Cooper, 36, of Charlotte, was sentenced to a year and a day in prison followed by two years of supervised release for conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, and possession with intent to distribute heroin.
- Marquita Andrea Hunter, 48, of Columbia, S.C., was sentenced to a year and a day in prison, followed by two years of supervised release, for conspiracy to distribute and to possess with intent to distribute cocaine.
An additional defendant indicted in this case, Yannick Anderson, 26, of New York, is charged with conspiracy to distribute and to possess with intent to distribute cocaine, money laundering conspiracy, three counts of possession with intent to distribute cocaine, possession of firearm in furtherance of drug trafficking, and possession of firearm by felon, and remains a fugitive.
Today’s lengthy sentence stems from an investigation led by one of the Western District of North Carolina’s Organized Crime Drug Enforcement Task Force (OCDETF) investigations. The OCDETF program identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King thanked the DEA, USPIS, HSI, and IRS, as well as the U.S. Bureau of Alcohol Tobacco and Firearms (ATF), the National Insurance Crime Bureau, the Charlotte-Mecklenburg Police Department, the Rowan County Sheriff’s Office, the Rock Hill Police Department, the North Carolina Department of Motor Vehicles, the South Carolina Law Enforcement Division (SLED), the Lexington County, S.C., Sheriff’s Department, the Richland County, S.C., Sheriff’s Department, the York County, S.C., Sheriff’s Office, and the City of Columbia, S.C., Police Department for their investigative efforts.
Assistant United States Attorney Steven Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Kentucky Woman Pleads Guilty to Spraying Pepper Spray at Officers During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — A Kentucky woman pleaded guilty today to resisting, impeding, and interfering with law enforcement officers with a dangerous weapon and other crimes related to the breach of the U.S. Capitol on Jan. 6, 2021. Her actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Shelly Stallings, 43, of Morganfield, Kentucky, pleaded guilty in the District of Columbia to all counts in a superseding indictment charging her with assaulting, resisting, or impeding law enforcement officers using a dangerous weapon, interfering with a law enforcement officer during a civil disorder, and entering and remaining in a restricted building or grounds with a deadly or dangerous weapon, among other charges.
According to court documents, Stallings and three co-defendants sprayed a chemical irritant, pepper spray, at a line of police officers attempting to secure the area of the Lower West Terrace of the Capitol Building. The co-defendants, including her husband Peter J. Schwartz, 49, have pleaded not guilty to all charges.
Stallings was arrested on Feb. 16, 2022, in Owensboro, Kentucky. She pleaded guilty to a total of seven charges. The charges include five felonies: assaulting, resisting, or impeding officers using a dangerous weapon; interfering with a law enforcement officer during a civil disorder; entering and remaining in a restricted building or grounds with a deadly or dangerous weapon; disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon, and engaging in physical violence in a restricted building or grounds with a deadly or dangerous weapon. She also pleaded guilty to two misdemeanor offenses: disorderly conduct in the Capitol Grounds of Buildings and committing an act of physical violence in the Capitol Grounds or Buildings. She is to be sentenced on Jan. 13, 2023. She faces a statutory maximum of 20 years in prison on the charge of assaulting officers with a dangerous weapon and statutory maximums totaling 36 additional years for the other offenses, as well as potential financial penalties.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Western District of Kentucky.
The case is being investigated by the FBI’s Washington and Louisville Field Offices. Valuable assistance was provided by the Metropolitan Police Department and the U.S. Capitol Police.
In the 19 months since Jan. 6, 2021, more than 860 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 260 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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Justice Department Recovers Fraudulent Transfer of Proceeds Arising from Kickback SchemeRead the Press Release
Carl “Casey” Estridge and Shannon Foster Estridge have agreed to pay $150,000 to resolve a civil lawsuit alleging that payments they received from an individual subsequently found liable for paying kickbacks violated the federal Debt Collection Procedures Act. Mr. and Mrs. Estridge had no involvement in the kickback violations.
Floyd Calhoun Dent III and two other individuals were found liable by a South Carolina jury in 2018 for submitting false claims to Medicare and TRICARE, in violation of the Anti-Kickback Statute and the False Claims Act. A judgment was subsequently entered against these defendants jointly for $114 million. Prior to the judgment, but after Mr. Dent had been served with a Department of Health and Human Services Inspector General subpoena, Mr. Dent and his wife, Christina Marie Dent, transferred $175,500 in cash and gold coins to Mr. and Mrs. Estridge. Mr. Estridge was a long-time employee of corporations owned by Mr. and Mrs. Dent. The government alleged that the Dents received nothing in return for the transferred assets.
“Individuals may not receive and retain gifts that are the proceeds of fraudulent activity,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Recovering ill-gotten gains that have been improperly transferred to third parties is an important component of the department’s commitment to combat fraud involving taxpayer funds.”
“This case demonstrates an important premise – fraudulently obtained money is not a gift,” said U.S. Attorney Adair Boroughs for the District of South Carolina.
The settlement resolves the United States’ allegations that Mr. and Mrs. Dent’s transfers to Mr. and Mrs. Estridge were fraudulent transfers. The settlement requires the Estridges to surrender $150,000 to the Department of Justice and the Liquidating Trustee for now bankrupt Health Diagnostic Laboratories Inc., which will split these assets pursuant to a bankruptcy court agreement.
The settlement was the result of a coordinated effort between the Civil Division’s Fraud and Corporate/Financial Litigation Sections, and the U.S. Attorney’s Office for the District of South Carolina. Senior Trial Counsel Alicia J. Bentley and Trial Attorney Andrew Warner of the Civil Division and Assistant U.S. Attorneys James Leventis, Johanna Valenzuela and Joanna Stroud handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Justice Department Announces $49.85 Million in Office on Violence Against Women Grants to Support Legal Services and Related Programs for SurvivorsRead the Press Release
The Department of Justice announced today nearly $50 million in Office on Violence Against Women (OVW) grants to provide survivors of gender-based violence with access to legal services and improve effective coordination of justice systems impacting victim and family safety. Specifically, OVW awarded a total of $35,659,296 to 59 grantees under the Legal Assistance for Victims Program, which addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. In addition, earlier this month, OVW’s Justice for Families Program awarded $14,191,208 to 26 projects that aim to improve the response of the civil and criminal justice systems to families with a history of domestic violence. The Justice for Families Program also supports supervised visitation and safe exchange of children.
“These grants will help expand access to the services and support that are essential to bringing justice within reach for survivors of gender-based violence,” said Attorney General Merrick B. Garland. “The Department’s Office on Violence Against Women will continue its important work to empower survivors with the resources they need to navigate our justice system, including by expanding access to legal representation, language assistance, and court-related programs.”
“Legal services and systems, including family courts, have a tremendous impact on survivors’ and their families’ livelihood, wellbeing, and freedom,” said OVW Acting Director Allison Randall. “Meaningful representation for survivors is vital, but can be difficult to attain in the aftermath of violence, or when someone is still trying to find safety. Grantees under OVW’s Legal Assistance for Victims and Justice for Families Programs help survivors navigate complicated processes and potentially dangerous points along the way, including supervised visitation, protection orders, and divorce.”
In addition to addressing survivors’ civil and criminal legal needs, the Legal Assistance for Victims Program expands pro bono legal assistance for survivors. The Justice for Families Program also finances court and court-related programs, provides legal assistance for survivors, and supports training for court personnel, child protective services workers, and others.
Later this year, OVW will launch the new Expanding Legal Services Initiative (ELSI) under the Legal Assistance for Victims Grant Program. ELSI will support entities that do not yet have a legal representation program and need assistance establishing one. Grantees will receive specific training to help create a legal program from the ground up, while prioritizing racial equity and underserved communities. OVW will release the solicitation for this new initiative in the fall. Eligible applicants include nonprofit organizations and tribal governments or tribal organizations that intend to establish a program to provide legal representation to victims of sexual assault, domestic violence, dating violence, or stalking. OVW will provide additional details at upcoming informational virtual events and answer questions from participants. Registration for virtual events will be added as it becomes available: https://www.justice.gov/ovw/events.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Jury convicts final defendant in Scioto County human trafficking operation involving drugs exchanged for sexual access to childrenRead the Press Release
COLUMBUS, Ohio – All 11 defendants charged federally in a Scioto County child sex trafficking operation have been convicted.
A federal grand jury originally indicted Larry Dean Porter, 71, of Wheelersburg, Ohio, and several of his family members and associates in June 2020. Porter exchanged drugs obtained in Columbus and elsewhere for sexual access to the children of drug-addicted mothers.
Porter and nine of the co-defendants have since pleaded guilty to federal charges.
A jury found the final co-defendant, Joshua Aldridge, 38, of South Webster, Ohio, guilty following a trial in Columbus that concluded this week. Aldridge transported minor victims to Porter’s home and received illegal drugs from Porter in return. He was convicted of conspiring to sex traffic children and conspiring to sex traffic adults by force, which are both crimes punishable by up to life in prison, and sex trafficking children, which is punishable by at least 15 years and up to life in prison.
“The defendants in this case committed heinous acts against some of the most vulnerable people in our society – children,” said U.S. Attorney Kenneth L. Parker. “The jury properly found Joshua Aldridge guilty of his crimes. Now, each of the defendants will be held accountable for their roles in this atrocious child sex trafficking operation by facing significant time in federal prison. I cannot thank the jury enough for their service.”
Agents with the FBI’s Child Exploitation Task Force began investigating Porter in April 2019 following reports from several sources that Porter was involved in sexually abusing male and female minors with consent of the minors’ parents in exchange for illegal drugs from Porter.
Porter sexually abused children and produced child pornography that he kept on flash drives and used extreme methods to conceal, including by burying the flash drives in the yard surrounding his house.
He often instructed drug-addicted parents to sexually abuse their own children and recorded it to use as blackmail. Porter also used other methods of force, such as duct taping and tying women to chairs, burning them with cigarettes and firing guns by their ears.
For example, two co-defendants took a seven-year-old child to Porter’s residence on a regular basis to traffic the child sexually in exchange for pills. The abuse occurred a few times per week for up to five years.
Porter was arrested in March 2020 on local charges during a human trafficking sting operation by the Jackson County Sheriff’s Office.
After Porter was arrested locally, his friends and relatives – including two of his daughters and one of his cousins – attempted to destroy evidence on Porter’s behalf.
For example, his daughters dug holes in the ground on Porter’s property to retrieve and attempt to conceal or destroy SD cards containing child pornography that had been buried in Porter’s yard. Agents found eight DVDs containing Porter’s child pornography at the house of one of Porter’s friends. Porter’s cousin discussed in jail calls with Porter their plans to assault and potentially kill a witness they believed was a source for law enforcement.
Porter pleaded guilty on Aug. 10 to conspiring to engage in sex trafficking by force, fraud or coercion, child sex trafficking, and participating in a drug trafficking conspiracy. Porter’s plea agreement includes a sentencing range of a minimum of 15 years and up to 55 years in prison.
The Court will set future sentencing dates for each of the defendants and the sentences imposed will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
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; Ohio Attorney General Dave Yost; Jackson County Sheriff Tedd E. Frazier; Jackson County Prosecutor Justin Lovett; Scioto County Sheriff David Thoroughman and Scioto County Prosecutor Shane A. Tieman announced the convictions. Senior Litigation Counsel Heather A. Hill and Assistant United States Attorneys Jennifer Rausch and Jessica W. Knight are representing the United States in this case.
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Jury Convicts Man for Federal Firearms Charge Following Shootout with Nash County Deputies on I-95Read the Press Release
RALEIGH, N.C. – A federal jury convicted Jarred Javon Ford of Florida for illegally possessing a gun in an incident where he shot a Nash County Sheriff’s Deputy several times following a traffic stop. Ford is also facing state charges of attempted first-degree murder, assault on a law enforcement officer and other drug and traffic-related charges in state court arising from the incident.
“We stand by and support the law enforcement officers who put their lives on the line to keep our communities safe,” said U.S. Attorney Michael Easley. “This defendant was a prior felon illegally carrying a gun, with an extended magazine, that was used to fire at two Nash County deputies. Now, he is facing time in federal prison.”
“Brazen attacks on those dedicated to public safety should never be tolerated,” said Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Bennie Mims. “We’ve worked collectively to bring a very dangerous individual to justice.”
“I would like to express my deep gratitude to the U.S. Attorney’s Office for the Eastern District of North Carolina for being prompt in bringing this case into court,” said Nash County Sheriff Keith Stone. “Violent crime is trending upwards across America, and Jarred Ford's actions are an example of the destructive behavior that erodes away the safety of our citizens. Crime against law enforcement is increasing day by day, and this makes a difficult job all the more difficult but also even more important. In this case, the situation could have been far worse if not for the training and discipline of these deputies who bravely put themselves in harm's way to keep our citizens safe. As a law enforcement leader, I am proud to have these heroes, Deputy William Tony and Deputy Shelby Smith, safeguarding my family and friends. They are a brilliant representation of the Nash County Sheriff's Office.”
According to court records and evidence presented at trial, Ford was pulled over in February 2021 for speeding on I-95 by a Nash County Sheriff’s Deputy. During the traffic stop, a struggle ensued, and Ford, using a Taurus 9 mm pistol, fired several rounds. One of the deputies assisting with the traffic stop was hit multiple times by the gunfire. Ford was ultimately subdued, and the gun was seized by officers on the scene.
Ford faces up to 10 years in prison when sentenced later this year.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the verdict. The Nash County Sheriff’s Office, the N.C. State Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-00105-BO.
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Indianapolis Man Sentenced to 57 Months in Federal Prison for Defrauding Senior Victims in International Romance ScamRead the Press Release
INDIANAPOLIS – Edwin Agbi, 29, of Indianapolis, was sentenced to 57 months in federal prison for mail fraud, use of a fictitious name in furtherance of mail fraud, conspiracy to commit mail fraud, and conspiracy to commit money laundering. Agbi was found guilty on March 2, 2022, following a three-day federal jury trial.
According to documents and evidence introduced in court, in 2018, an international group of scammers working with Agbi created fake profiles on OurTime, an online dating service designed for adults over 50. Over time, the scammers were able to deceive several senior victims, making them believe that they were in genuine relationships with the fake personas. Eventually, the scammers asked the victims for money, explaining that they needed funds for various reasons, including taxes and travel expenses. The victims sometimes sent the requested money.
Agbi’s role in the scheme was to receive money from the victims and pass it along to his partners. The victims mailed packages containing large amounts of cash to Agbi’s home in Indianapolis because they believed he would get the money to their significant other. Agbi received those packages under the alias “Kareem Sunday.” Upon receiving the cash, Agbi would keep a portion for himself and then have the remaining money deposited into his co-conspirators’ foreign bank accounts.
In 2018 and 2019, multiple packages containing cash were delivered to Agbi’s home. In total, the packages contained at least $75,000 in cash. During the investigation, federal agents intercepted one of the packages sent by a victim to Agbi and found that it contained $20,000 in cash.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Jeffrey Adams, Special Agent in Charge for the U.S. Secret Service, and Rodney Hopkins, Inspector-in-Charge of the United States Postal Inspection Service, Detroit Field Division, made the announcement.
The United States Secret Service and United States Postal Inspection Service investigated the case. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Agbi be supervised by the U.S. Probation Office for three years following his release from federal prison and to pay $95,500 in restitution to the victims.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Matthew Miller and MaryAnn T. Mindrum who prosecuted this case.
This case was brought as part of the Department of Justice’s Elder Justice Initiative. The mission of the Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s older adults.
Identity Fraudster Pleads Guilty in Miami Federal CourtRead the Press Release
Miami, Florida – A 30-year-old Romanian national pled guilty this week to his role in an Automated Teller Machine (ATM) “skimming” fraud scheme.
From in or about January of 2015, until in or about February of 2015, Alin Bambaloi and his co-conspirators used portable card-reading devices and miniature cameras to steal account information from bank customers using ATMs. With the stolen information re-encoded blank plastic cards or gift cards with the legitimate bank customers’ account information and then made unauthorized withdrawals from the customers’ accounts. As a result of this fraud scheme, there were 195 reported fraud loss cases and approximately $128,064 in losses.
Juan Antonio Gonzalez, United States Attorney, Southern District of Florida, and Robert DeWitt, Acting Special Agent in Charge, FBI Miami Field Office, made the announcement.
The case was indicted in 2016. Bambaloi was a fugitive until December 20, 2021, when he was apprehended in Texas and later transferred to the Southern District of Florida for prosecution.
Bambaloi pled guilty to one count of conspiracy to commit bank fraud, in violation of 18 U.S.C. § 1349, and one count of aggravated identity theft, in violation of 18 U.S.C. § 1028A. He faces a maximum term of 32 years’ imprisonment. His sentencing is currently scheduled for November 4, before U.S. District Judge Beth Bloom.
FBI Miami investigated this case. It is being prosecuted by Assistant U.S. Attorneys Cynthia Wood and Adam Hapner. Assistant U.S. Attorney Sara Klco is handling asset forfeiture related to the matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 16-cr-60260.
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Idaho Power Company to Pay $1.5 Million in Civil Settlement for Powerline and Lime Hill FiresRead the Press Release
PORTLAND, Ore.— The U.S. Attorney’s Office for the District of Oregon announced today that Idaho Power Company, a Boise, Idaho-based utility that provides electricity to several states, including Oregon, has agreed to pay $1.5 million to settle allegations by the United States relating to the May 2014 Powerline and August 2015 Lime Hill fires in Baker County, Oregon.
The Powerline Fire ignited on May 31, 2014, and burned approximately 5 acres of federal land managed by the Bureau of Land Management (BLM). The Lime Hill Fire ignited on August 5, 2015, and burned approximately 2,592 acres of federal land managed by BLM and 9,337 acres of privately-owned land.
Idaho Power Company has a utility right-of-way on BLM land in Baker County on which it owns and operates its 138kV Ontario-to-Quartz transmission line. The United States contended in the civil action that the Powerline and Lime Hill fires were caused by the failure of structures on the Ontario-to-Quartz transmission line. The settlement reached is not an admission of liability by Idaho Power Company and the company denies the United States’ contentions.
This case was investigated by BLM with assistance from the U.S. Forest Service. The United States was represented in this matter by Assistant U.S. Attorneys Carla McClurg and Alexis Lien for the U.S. Attorney’s Office in the District of Oregon.
Henderson County Man Guilty of Child Obscenity ViolationsRead the Press Release
TYLER, Texas – The former mayor of Athens, Texas has pleaded guilty to federal child obscenity violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
James Monte Montgomery, 64, pleaded guilty to sending obscene materials to a minor today before U.S. Magistrate Judge John D. Love.
According to public information, on June 3, 2021, Montgomery was arrested after arriving at an undisclosed location after soliciting sex online with investigators posing as minors. In June of 2020, Montgomery, then the mayor of Athens, Texas, began communicating by text messaging with a person he believed to be a 15-year-old female. Montgomery sent messages to the child describing sexually explicit acts that he wanted to perform on the child and offering to pay the child if she would meet him and have sex with him.
Montgomery faces up to 10 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case is being investigated by the Federal Bureau of Investigation’s Tyler Field Office, with assistance from the Texas Department of Public Safety, Collin County Sheriff’s Office, and the Department of Homeland Security-Homeland Security Investigations. This case is being prosecuted by Assistant U.S. Attorney Robert Austin Wells.
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Havelock Drug Dealer Sentenced in Federal CourtRead the Press Release
RALEIGH, N.C. – A Havelock man was sentenced to 180 months in prison for trafficking fentanyl and heroin from June 2017, through July 10, 2019. On March 29, 2021, Michael Lamar Hill pled guilty to the charges.
According to Chief Chris Morning of the Havelock Police Department, this sentence represents “one small victory for the citizens of Havelock and surrounding counties. The war on drugs may never be won, but with strong partnerships between local, state and federal agencies, we can make a difference in our community, one conviction at a time.”
According to court documents and other information presented in court, Hill, who was convicted of federal drug trafficking and a gun crime in 2012, was released from federal prison in April 2017, to begin a five-year term of supervised release. Once back in the community, Hill quickly began trafficking in fentanyl and heroin and also opened a business named Havelock Super Tire Store. Hill used drug proceeds as the seed capital to fund the opening of his business. Hill also used his supply of fentanyl as a means of securing an inventory of new tires. Specifically, Hill made it known that he would pay one gram of fentanyl for each pair of new tires, which his drug customers would then steal from local businesses. Hill also used Havelock Super Tire Store to store and distribute fentanyl, heroin, and cocaine. Hill assigned a store employee to assist in the drug distribution.
In 2018 and 2019, Havelock Police Department conducted numerous controlled purchases of fentanyl from Hill, both directly and through his employee. On July 10, 2019, Havelock Police Department and the DEA conducted a search of Havelock Super Tire Store and recovered 161 grams of fentanyl and 267 grams of cocaine. A search of Hill’s car resulted in the seizure of $10,000 in cash, a Rolex watch, and the vehicle titles having an aggregate worth in excess of $85,000. Judge Boyle sentenced Hill to 144 months on the new criminal conduct and 36 months’ imprisonment for the violation of supervised release, to be served consecutive to each other for a total sentence of 180 months.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Havelock Police Department, Carteret County Sheriff’s Department, the DEA Wilmington Resident Office investigated the case and Assistant U.S. Attorneys Dennis M. Duffy and Lucy Brown prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:21-CR-00018-BO.
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Groton Man Sentenced for Possession of Child Sexual Abuse MaterialsRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Paul Emerson, 38, of Groton, Vermont, was sentenced yesterday in Rutland, Vermont by Chief Judge Geoffrey W. Crawford of the United States District Court for the District of Vermont to time served to be followed by 10 years of supervised release for his possession of three items of child sexual abuse materials (formerly called “child pornography”).
Emerson pleaded guilty to the charged possession in March of 2022 and has been on pre-trial release since that time.
U.S. Attorney Nikolas P. Kerest thanked the Federal Bureau of Investigation for its work on the matter.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Eugenia Cowles represented the government. Assistant Federal Public Defender Mary Nerino represented Mr. Emerson.
Greene County Man Sentenced for Tax Evasion ConspiracyRead the Press Release
ALBANY, NEW YORK – Joseph D. Radcliffe, age 75, of Elka Park, New York, was sentenced today to three years of probation, and to spend four consecutive weekends in jail as a condition of his probation, for conspiring with others to evade taxes on income earned from stock sales.
The announcement was made by United States Attorney Carla B. Freedman and Thomas Fattorusso, Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (IRS-CI).
Chief U.S. District Judge Glenn T. Suddaby also ordered Radcliffe to pay $109,106 in restitution to the IRS.
Radcliffe, a former Wall Street stockbroker, pled guilty in December 2021 and admitted that from at least 2013 through 2019, he conspired with two family members to receive hundreds of thousands of dollars in personal income that went unreported to the IRS, allowing him to defraud the IRS and evade the assessment and payment of taxes on approximately $500,000 in unreported income. At the time he was evading the payment of taxes, Radcliffe also owed more than $1 million to the U.S. Securities and Exchange Commission (SEC), after settling fraud allegations with the SEC in 2011. Radcliffe has also failed to repay the SEC.
In imposing sentence, Chief Judge Suddaby called Radcliffe’s conduct “outrageous” and said Radcliffe had “doubled down” after his SEC fraud settlement in 2011, by subsequently defrauding the IRS.
Radcliffe’s unreported income originated from capital gains earned in brokerage accounts standing in the names of Crackerjack Classics LLC and Universal Consulting LLC. These companies made payments to Radcliffe, and for his benefit, including the following:
- $128,147 in mortgage payments and interest that the companies paid, from 2014 through 2019, to the bank that held the mortgage on Radcliffe’s house in Elka Park;
- $109,022 that the companies paid to a New Jersey law firm, in 2014, 2015 and 2017, to settle Radcliffe’s unpaid bills; and
- $99,675 that the companies paid, in 2015 and 2016, in checks made out to “Cash” and which Radcliffe negotiated for himself or had others negotiate for his benefit.
Radcliffe and his co-conspirators did not report Radcliffe’s income to the IRS. Radcliffe further admitted that he did not file a tax return for himself, or otherwise report his income to the IRS, for the tax years 2013 through 2019. He did not maintain any bank or brokerage accounts in his name, and he did not hold or trade any securities in his own name.
This case was investigated by IRS-CI and prosecuted by Assistant U.S. Attorney Michael Barnett.
Global Shipping Container Suppliers China International Marine Containers and Maersk Container Industry Abandon Merger after Justice Department InvestigationRead the Press Release
China International Marine Containers Group Co. Ltd. (CIMC) confirmed today that it has abandoned its intended acquisition of Maersk Container Industry A/S and Maersk Container Industry Qingdao Ltd. (collectively, MCI) after the Justice Department’s Antitrust Division’s thorough investigation.
The proposed transaction would have combined two of the world’s four suppliers of insulated container boxes and refrigerated shipping containers. It would also have consolidated control of over 90% of insulated container box and refrigerated shipping container production worldwide in Chinese state-owned or state-controlled entities.
“American consumers depend on the global cold supply chain for many of our everyday essentials,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “CIMC’s acquisition of MCI threatened to harm this critical aspect of our economy leading to higher prices, lower quality, and less resiliency in global supply chains. It would have cemented CIMC’s dominant position in an already consolidated industry and eliminated MCI as an innovative, independent competitor. The deal also would have substantially increased the risk of coordination among the remaining suppliers in the marketplace, most of whom would have been aligned through common ownership and related alliances.”
The Justice Department’s Antitrust Division and the German Bundeskartellamt cooperated during the course of their respective investigations.
Ghanaian National Ordered to Pay $156,073 in Restitution for Role in Romance Fraud SchemeRead the Press Release
HUNTINGTON, W.Va. – Banabas Ganidekam, 25, of Ghana, was sentenced today to three years of federal probation, including eight months on home detention with electronic monitoring, and ordered to pay $156,073 in restitution for wire fraud.
According to court documents and statements made in court, Ganidekam admitted to his role in a romance fraud scheme. From June 2019 until at least May 14, 2020, Ganidekam received approximately $189,404 from at least 14 victims who were convinced to send the money for a variety of false and fraudulent reasons. The victims include a woman who in January and February 2020 sent thousands of dollars to a false persona she believed was her boyfriend.
Ganidekam admitted to receiving the fraudulent proceeds through his bank account in Ohio, where he lived at the time, via wire transfers and personal and cashier’s checks. Ganidekam further admitted to transferring a portion of these fraudulent proceeds to his bank account in Huntington, and to keeping some of the victims’ money for himself while forwarding some to others in the United States and abroad.
United States Attorney Will Thompson made the announcement and commended the investigative work of United States Secret Service, the United States Postal Inspection Service, the Federal Deposit Insurance Corporation-Office of Inspector General (FDIC-OIG), the West Virginia State Police, and the South Charleston Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorneys R. Gregory McVey and Kathleen Robeson prosecuted the case.
The public is encouraged to report potential online fraud activity or scams at https://www.ic3.gov.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-0071.
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Frame and Receiver Rule Goes into EffectRead the Press Release
Today, the Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) “Frame or Receiver” Final Rule goes into effect. The new rule modernizes the definition of a firearm and makes clear that parts kits that are readily convertible to functional weapons, or functional “frames” or “receivers” of weapons, are subject to the same regulations as traditional firearms. This rule will help curb the proliferation of “ghost guns,” which are often assembled from kits, do not contain serial numbers, and are sold without background checks, making them difficult to trace and easy to acquire by criminals.
“Last year, the Justice Department committed to modernizing our regulations to address the proliferation of ‘ghost guns’ that law enforcement officers across the country have increasingly recovered from crime scenes,” said Attorney General Merrick B. Garland. “These guns have often been sold as build-your-own kits that contain all or almost all of the parts needed to quickly build an unmarked gun. And anyone could sell or buy these guns without a background check.
“That changes today. This rule will make it harder for criminals and other prohibited persons to obtain untraceable guns. It will help to ensure that law enforcement officers can retrieve the information they need to solve crimes. And it will help reduce the number of untraceable firearms flooding our communities. I am grateful to the professionals across the Department who worked tirelessly to get this important rule finalized and implemented, and who did so in a way that respects the rights of law-abiding Americans.
“The Justice Department will continue to do everything within its power to protect our communities from violent crime and put an end to the plague of gun violence.”
The rule, which was posted in the Federal Register in April, will address the proliferation of these un-serialized firearms in several ways. These include:
- To help keep guns from being sold to convicted felons and other prohibited purchasers, the rule makes clear that retailers must run background checks before selling kits that contain the parts necessary for someone to readily make a gun.
- To help law enforcement trace guns used in a crime, the rule modernizes the definition of frame or receiver, clarifying which part of a weapon must be marked with a serial number – including in easy-to-build firearm kits.
- To help reduce the number of unmarked and hard-to-trace “ghost guns,” the rule establishes requirements for federally licensed firearms dealers and gunsmiths to have a serial number added to 3D printed guns or other un-serialized firearms they take into inventory.
- To better support tracing efforts, the rule requires federal firearms licensees, including gun retailers, to retain records for the length of time they are licensed, thereby expanding records retention beyond the prior requirement of 20 years. Over the past decade, ATF has been unable to trace thousands of firearms – many reportedly used in homicides or other violent crimes – because the records had already been destroyed. These records will continue to belong to, and be maintained by, federal firearms licensees while they are in business.
The proliferation of privately made firearms (PMFs), also known as “ghost guns”, are a growing problem for law enforcement efforts to reduce violent crime. Recent federal prosecutions by the Chicago Firearms Trafficking Strike Force show the impact:
- An Orland Hills, Ill., man was charged with illegally selling 36 firearms, including “ghost guns” and machine guns, in the Chicago area. Many of the transactions occurred in a car wash in a Chicago suburb.
- Two Indianapolis men were charged with federal firearm violations for allegedly trafficking 10 guns, including four semiautomatic rifles and two “ghost guns,” from Indianapolis to Chicago.
- A Chicago resident was charged with trafficking more than a dozen guns, including a “ghost gun” and a machine gun, in Chicago.
- Five men were indicted for allegedly trafficking guns from St. Louis to Chicago.
As the final rule explains, from January 2016 to December 2021, ATF received approximately 45,240 reports of suspected PMFs recovered by law enforcement, including in 692 homicide or attempted homicide investigations.
In April 2021, the Attorney General announced that the ATF would be issuing a proposed rule within 30 days to address the proliferation of unmarked firearms increasingly being used in crimes. On May 7, 2021, the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 290,000 comments, the highest number of comments submitted to a proposed rule in the Justice Department’s history.
The final rule, as submitted to the Federal Register, can be viewed here: https://www.atf.gov/rules-and-regulations/definition-frame-or-receiver.
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Former State of Georgia employee created phony clients with non-existent disabilities to steal over $1.3 millionRead the Press Release
ATLANTA – Former Georgia Vocational Rehabilitation Agency counselor Karen C. Lyke (formerly known as Karen C. Gregory) has been charged with forging educational records and creating fake students with non-existent disabilities and illnesses in an elaborate, multi-year scheme to steal more than $1.3 million.
“By exploiting her position with the Georgia Vocational Rehabilitation Agency, Lyke allegedly orchestrated a sophisticated, long-term scheme to fleece taxpayers of more than $1.3 million through doctored records and the creation of fake students with non-existent disabilities,” said U.S. Attorney Ryan K. Buchanan. “Lyke’s alleged enterprise was uncovered through the collaborative efforts of the Georgia Office of Inspector General in partnership with the FBI.”
“Through her alleged scheme, Karen Lyke targeted money meant for those with disabilities trying to improve their lives,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “I’m proud of the work of the FBI and our law enforcement partners for their work in this case. We will continue to work together to stop those who steal taxpayer funds.”
“Not only is theft of government money a serious crime that will be vigorously investigated, but all too often it also deprives our most vulnerable citizens of vital assistance,” said Georgia State Inspector General Scott McAfee. “OIG will continue to uphold the integrity of state programs and ensure taxpayer dollars are used for their intended purpose.”
“The Georgia Vocational Rehabilitation Agency is committed to protecting the interests of Georgia’s taxpayers and our constituents. Therefore, we notified the Georgia Office of Inspector General as soon as we suspected fraud in this matter,” says GVRA Executive Director, Chris Wells.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: the State Vocational Rehabilitation Services Program is a federally funded program administered by the U.S. Department of Education that offers grant money to assist states to provide services to individuals with disabilities. To be eligible for the State Vocational Rehabilitation Services Program, individuals must have a physical or mental impairment that results in a substantial impediment to employment and require services to achieve employment and to maximize career goals. Across the country, state vocational rehabilitation agencies offer various services to individuals with disabilities, including tuition assistance for vocational training and college education.
The Georgia Vocational Rehabilitation Agency (“GVRA”) operates Georgia’s vocational rehabilitation program. Between 2017 and 2020, the GVRA annually received at least $100,000,000 in federal funds. The GVRA’s Vocational Rehabilitation Program helped people with disabilities (known as “clients”) to find and maintain employment, including by providing funding and tuition assistance for college education.
During this time, the GVRA assigned counselors to assist its clients, including helping clients to obtain tuition assistance. To obtain tuition assistance, a client was required to provide the GVRA with documentation to support obtaining GVRA funds, including: (a) medical records demonstrating a disability related to employment, (b) a driver’s license, (c) proof of registration for classes, and (d) financial aid information. After receiving the information, the client’s GVRA counselor reviewed the documentation and, if the counselor approved the request for tuition assistance, a check was mailed to the client for the requested educational expenses. From June 2015 to March 2019, Lyke served as a GVRA counselor in its Norcross, Georgia office.
From approximately May 2016 to November 2020, Lyke and a close relative (the “Family Member”) allegedly conspired to steal money from the GVRA by claiming educational expenses for approximately 13 fake students. Lyke and the Family Member used the names of actual friends and relatives as the names of the fake disabled students seeking tuition assistance from the GVRA.
Lyke and the Family Member allegedly used the names of friends and relatives to create fake medical records to make it appear that the approximately 13 fake students qualified for tuition assistance from the GVRA. Lyke and the Family Member claimed that these fake students suffered from disabilities or illnesses like AIDS, cancer, psychosocial impairments, or muscular dystrophy.
As proof of identification, Lyke and the Family Member provided the GVRA with manufactured images of fake driver’s licenses that listed the names of their friends and relatives. In one instance, the Family Member created a fake driver’s license in his cousin’s name, by using a mug shot image of an unknown individual from the Internet as the driver’s license photograph.
Lyke and the Family Member then used photo-editing software to alter authentic college transcripts, financial aid reports, and proofs of registration from actual GVRA clients to support claims that the fake students attended schools like the Georgia Institute of Technology, Georgia State University, or the University of Georgia. Lyke then allegedly uploaded the sham driver’s licenses, transcripts, financial aid reports, and other documentation into the GVRA’s electronic database.
Based on false documentation, Lyke caused more than 230 checks to be mailed to approximately 13 friends and relatives for claimed educational expenses. In fact, none of the 13 fake students attended any colleges or universities.
The GVRA mailed the checks to post office boxes that Lyke and the Family Member opened in their own names. After receiving the GVRA checks, Lyke and the Family Member allegedly either: (a) deposited the GVRA checks into their own bank accounts, or (b) gave the GVRA checks to their friends and relatives to be deposited. The friends and relatives funneled most of the GVRA funds back to Lyke and the Family Member after depositing the GVRA checks.
After Lyke left the GVRA in March 2019, Lyke and the Family Member allegedly continued to submit forged paperwork to the GVRA for non-existent educational expenses. Based on the false submissions, the GVRA continued to issue checks to the fake students for bogus educational expenses. Lyke and the Family Member used the stolen GVRA funds to pay for various personal expenses, including cars, jewelry, high-end guitars, and the down payment on a new home. In total, based on the false documentation they created, the GVRA mailed more than 230 checks to Lyke and the Family Member resulting in the theft of approximately $1.3 million.
From approximately August 2016 to February 2019, Lyke and the Family Member also allegedly conspired to steal several high-value computers from the GVRA. Lyke stole multiple computers in her capacity as a GVRA counselor by ordering:
- Several computers by falsely submitting paperwork to the GVRA claiming that three genuine GVRA clients needed computers to further their educational goals. In fact, the GVRA clients did not know that Lyke had ordered the computers under their names and never received the computers;
- Three computers by falsely submitting paperwork to the GVRA claiming that three fake students (that Lyke and the Family Member created) needed the computers to further their educational goals; and
- One computer by falsely submitting paperwork to the GVRA claiming that the Family Member was a GVRA client and needed a computer to further his educational goals.
Lyke arranged for at least six computers to be shipped to her attention at the GVRA office in Norcross. Upon delivery, Lyke stole the computers and computer accessories from the GVRA. Lyke and the Family Member then sold at least five of the computers on eBay using the Family Member’s account. Lyke and the Family Member kept one computer for personal use. In total, Lyke and the Family Member allegedly stole at least seven computers with various accessories worth approximately $32,000.
Based on the conduct alleged above, the U.S. Attorney charged Karen C. Lyke, 37, of Toledo, Ohio, in a criminal information with one count of conspiring to commit federal program theft. Lyke has stated her intent to plead guilty to the charge.
The Federal Bureau of Investigation and Georgia Office of Inspector General are investigating the case. The Georgia Vocational Rehabilitation Agency also provided valuable investigative assistance.
Assistant U.S. Attorneys Jeffrey W. Davis and Jesika W. French are prosecuting the case.
Members of the public are reminded that the information only contains a charge. The defendant is presumed innocent of the charge and it will be the government’s burden to prove her guilt beyond a reasonable doubt at trial if the defendant foregoes entry of a guilty plea and the matter is indicted.
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.
Former State Employee Pleads Guilty in Unemployment Insurance Fraud CaseRead the Press Release
ALBANY, NEW YORK – Former New York State Department of Labor (NYSDOL) employee Wendell Giles, age 52, of Albany, pled guilty today to mail fraud and aggravated identity theft charges.
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).
As part of his guilty plea, Giles admitted that he and another former NYSDOL employee, Carl J. DiVeglia III, abused their state computer systems access to create and approve false unemployment insurance (UI) applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program.
Giles recruited relatives, friends and friends-of-friends to submit false benefits applications over the phone to DiVeglia after Giles had instructed them to lie in response to eligibility questions. Giles and DiVeglia then took a share of the benefits paid by NYSDOL on the false claims. Giles used his share to enrich himself, including by purchasing a three-wheeled motorcycle. In text messages, DiVeglia suggested a vanity license plate for Giles’s new vehicle, “TY PUA,” which Giles understood to mean “Thank You Pandemic Unemployment Assistance.” Giles responded, “Lol.” Giles had been employed as a Senior Employment Security Clerk, and DiVeglia as a Labor Services Representative.
Giles admitted responsibility for $826,530 in losses to pandemic-related UI benefits programs administered by the state. He has agreed to pay full restitution to NYSDOL. DiVeglia previously pled guilty to related charges and also agreed to pay restitution.
The mail fraud conviction carries a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The aggravated identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. Giles is scheduled to be sentenced on January 5, 2023 by Chief United States District Judge Glenn T. Suddaby. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and USDOL-OIG, with assistance from the NYSDOL Office of Special Investigations, and is being prosecuted by Assistant U.S. Attorneys John T. Chisholm and Joshua R. Rosenthal.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Former Senior Executive of Defense Contractor Pleads Guilty to Tax EvasionRead the Press Release
A former senior executive for a defense contractor pleaded guilty today to tax evasion.
According to court documents and statements made in court, from 2013 through 2015, Zachary A. Friedman, of New York, New York, worked in the United Arab Emirates as a senior executive for a U.S. Department of Defense contracting company. From 2013 to 2015 Friedman evaded taxes he owed to the IRS by providing false information to his tax preparer that underreported the income he earned for each of those years. In total, Friedman concealed approximately $530,000 in income, causing a tax loss to the government of more than $207,000.
Friedman is the fourth defendant associated with the defense contracting company to plead guilty. Charles Squires (February 2022), James Robar (March 2022), and Ronald Thomas (April 2022) all pleaded guilty to tax evasion.
Friedman is scheduled to be sentenced at a later date. He faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case.
Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, Netherlands, United Kingdom and the United States.
Senior Litigation Counsel Nanette Davis and Trial Attorneys Sarah Ranney and Ezra Spiro of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Former Senior Executive of Defense Contractor Pleads Guilty to Federal Tax Evasion ChargeRead the Press Release
WASHINGTON – A former senior executive for a defense contractor pleaded guilty in the District of Columbua today to tax evasion.
According to court documents and statements made in court, from 2013 through 2015, Zachary A. Friedman, of New York, New York, worked in the United Arab Emirates as a senior executive for a U.S. Department of Defense contracting company. From 2013 to 2015 Friedman evaded taxes he owed to the IRS by providing false information to his tax preparer that underreported the income he earned for each of those years. In total, Friedman concealed approximately $530,000 in income, causing a tax loss to the government of more than $207,000.
Friedman is the fourth defendant associated with the defense contracting company to plead guilty. Charles Squires (February 2022), James Robar (March 2022), and Ronald Thomas (April 2022) all pleaded guilty to tax evasion.
Friedman is scheduled to be sentenced at a later date. He faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case. Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, Netherlands, United Kingdom, and the United States.
Senior Litigation Counsel Nanette Davis and Trial Attorneys Sarah Ranney and Ezra Spiro of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Former San Francisco Public Works Director Sentenced to Seven Years in Federal PrisonRead the Press Release
SAN FRANCISCO – Former San Francisco City Hall public official Mohammed Colin Nuru was sentenced today to 84 months (7 years) in federal prison for honest services wire fraud, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, and Internal Revenue Service–Criminal Investigation Special Agent in Charge Mark H. Pearson. The sentence was handed down by United States District Judge William H. Orrick.
Nuru, 59, was first arrested on January 17, 2020, following the filing of a 79-page federal criminal complaint against him. Nuru was then the Director of the San Francisco Department of Public Works (DPW) and had held that position since 2011, when he was elevated from the DPW Deputy Director of Operations position that he had held since 2000. The complaint charged Nuru with honest services fraud in public office, alleging a long-running scheme of bribes and kickbacks during his DPW tenure. A second federal complaint filed January 28, 2020, charged Nuru for lying to a federal agent following his arrest.
On January 6, 2022, Nuru pleaded guilty to the charge of defrauding the public of its right to his honest services, in violation of 18 U.S.C. §§ 1343 and 1346.
“Mohammed Nuru’s prison sentence is punishment for more than a decade of public corruption,” said United States Attorney Stephanie Hinds. “As San Francisco’s Department of Public Works Deputy Director and then its Director, Nuru owed the people of San Francisco a duty of faithful, honest services. Instead, he betrayed that duty. For at least twelve years, Nuru shook down contractors eager for City business, trading his authority and influence for millions of dollars in cash, construction work, travel, meals, and gifts. His abhorrent conduct erodes the public’s trust in its government, and this case demonstrates the justice system can and will punish corrupt public officials.”
“Mohammed Nuru’s long-running scheme of bribes and kickbacks ultimately earned him seven years in prison. Today’s sentence sends a clear message that public officials who abuse their power for personal gain will be punished,” said FBI Special Agent in Charge Sean Ragan. “The FBI’s investigation into this case is not over. We will continue to unravel and disrupt corruption within the city of San Francisco.”
“Corruption happens in the shadows, often with the help of professional enablers who perpetuate fraudulent schemes and the corrupt who launder and hide their illicit wealth. The Oakland Field Office of IRS Criminal Investigation has dedicated resources to unraveling the truth behind the extensive web of corruption, which Mohammed Nuru presided over, during his tenure leading the San Francisco Department of Public Works,” said IRS Criminal Investigation Special Agent in Charge Mark H. Pearson. “Today’s sentencing is a true reflection of the collaborative commitment between IRS-CI, the FBI, and the USAO-NDCA to protect public welfare, the people in our communities, and bring justice to light.”
In his plea agreement, Nuru admits to a pervasive corruption scheme involving bribery, kickbacks and fraud that spanned at least his last 12 years in office. During that time, Nuru sat not only as Deputy Director of Operations and then Director at DPW but also as a member of the Board of the Transbay Joint Powers Authority (TJPA). Appointed to the TJPA board in 2014, Nuru eventually became its Chair. From these positions, Nuru exercised substantial power and influence over San Francisco (the City) business and policy, including its public contracts, permits, and construction projects. Nuru’s authority made him a powerful public official in the City.
Nuru’s admissions detail his broad array of graft in office, and a sample of them are below:
Walter Wong: Nuru’s corrupt relationship with San Francisco-based contractor Walter Wong began in 2008. Nuru accepted envelopes of cash containing as much as $5,000 at a time from Wong, and Wong bribed Nuru with more than $260,000 in construction labor and materials provided to Nuru’s San Francisco home and his vacation ranch property located in Stonyford in Colusa County. Wong also paid for Nuru to travel to China multiple times and to South America, footing the bill for international flights and a stay at the Ritz-Carlton in Santiago, Chile, for Nuru and his then-girlfriend Sandra Zuniga, another City official. In exchange, Nuru helped Wong secure City contracts by structuring the City’s Request for Proposals (RFPs) to ensure Wong’s company secured the contract, by providing Wong with confidential information on competitors’ bids, and by helping Wong expedite permit approvals.
Recology: Recology Inc. is a waste management company headquartered in San Francisco and the parent company of Sunset Scavenger Company, Golden Gate Disposal & Recycling Company, and Recology San Francisco (collectively referred to as Recology) that provided collection and disposal services for residential and commercial customers located in the City and for the City itself. In his DPW Director’s position, Nuru presided over the process governing the rates that Recology could charge, including “tipping fee” rates that Recology charged DPW when DPW dumped materials at a Recology facility. In exchange for favorable treatment from Nuru, Nuru describes that Recology bribed him with soil delivered to his Colusa County ranch, expensive meals, and a two-night trip to New York in December 2017. At Nuru’s request, Recology also donated hundreds of thousands of dollars to a San Francisco non-profit for a cleaning program that Nuru could access and use for other purposes, and Recology further funded DPW holiday parties with $60,000 in donations. Recology also arranged and funded the hiring of a Nuru family member.
Nick Bovis: Nuru received multiple bribes from restaurateur Nick Bovis, including free meals and entertainment for Nuru, his family, and associates at restaurants owned by Bovis and thousands of dollars in free appliances for Nuru’s ranch property. Nuru also expected tens of thousands of dollars in kickbacks from proceeds that Bovis would earn from City concessions or contracts awarded to Bovis. In exchange, Nuru used his official acts and influence to assist Bovis in obtaining public business and contracts with the City.
Florence Kong: Nuru accepted a gold Rolex watch valued at $36,550, cash, and an iron fence installed at Nuru’s ranch from businesswoman Florence Kong. In exchange, Nuru used his official position to benefit Kong’s businesses, including a recycling business owned by Kong.
Balmore Hernandez, William Gilmartin, & Alan Varela: In a series of bribes and kickbacks from Balmore Hernandez, William Gilmartin, and Alan Varela, Nuru received a brand new tractor for his vacation ranch, free meals, and cash. Nuru also expected to receive a portion of the proceeds from anticipated City contracts awarded to them. In exchange, Nuru exercised his official authority and influence to benefit their City business ventures.
These are just examples of some of the bribes Nuru admitted in his plea agreement. Multiple other individuals paid Nuru in exchange for favorable official acts from him.
In addition to the sentence of imprisonment, United States District Judge William H. Orrick ordered a three year term of supervision of Nuru upon his release from prison. He also ordered the forfeiture to the United States of Nuru’s vacation ranch property in Stonyford, California. Nuru will surrender to begin serving his sentence on January 6, 2023.
This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco. To date, twelve individuals and multiple corporate entities have been charged, including another high-ranking San Francisco public official, the former San Francisco Public Utilities Commission General Manager Harlan Kelly. Charges against Harlan Kelly remain pending. Multiple city contractors and facilitators have also been charged.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case was investigated by the FBI and IRS-CI.
Former Maryland Heights police officer sentenced to 4 years in prison on child pornography chargeRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Thursday sentenced a former Maryland Heights, Missouri police officer to four years in prison on a child pornography charge.
Nicholas H. Haglof, 30, was also ordered to pay $3,000 in restitution each to the three victims identified in the images, and a $5,000 special assessment under the Justice for Victims of Trafficking Act.
Haglof pleaded guilty in May to a charge of accessing with the intent to view child pornography. He admitted viewing hundreds of images containing child pornography using his laptop computer and cell phone in 2019 and 2020.
The case was investigated by the St. Louis County Police Department Special Investigations Unit and the Federal Bureau of Investigation. Assistant United States Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Tax Preparer Sentenced to Prison for Criminal ContemptRead the Press Release
A Florida man was sentenced to one year and one day in prison today for criminal contempt for continuing to prepare and file tax returns with the IRS in violation of a federal court order barring him from doing so.
According to court documents and statements made in court, Guy Telfort, of Fort Lauderdale, Florida, previously owned and operated Tax Houses and Accounting Services, a Lauderdale Lakes tax preparation business. From approximately January 2015 through April 2019, Telfort and his employees prepared and filed tax returns for clients. In order to generate inflated IRS refunds for clients, some of these returns reported false items, including fictitious business income and losses and mileage deductions. On April 24, 2019, the U.S. District Court for the Southern District of Florida entered an injunction against Telfort in a civil proceeding, permanently barring Telfort from preparing federal tax returns for others.
Despite this court-ordered injunction, in 2020 and 2021, Telfort continued to prepare and file returns, working out of an Oakland Park, Florida, pawn shop. Telfort charged clients as much as $1,000 for each return filed with the IRS. Some of these tax returns reported false medical and dental expenses and charitable contributions, as well as fictitious businesses. To disguise his role in preparing these returns, Telfort used IRS Preparer Tax Identification Numbers belonging to other tax preparers. Over the two-year period, Telfort prepared nearly 1,200 tax returns for clients in willful violation of the permanent injunction.
In addition to the term of imprisonment, U.S. District Judge Federico A. Moreno ordered Telfort to serve three years of supervised release and pay $762,338.88 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement. They thanked Trial Attorneys John Nasta Jr., Huiwen Audrey Xi and Jikky Thankachan of the Tax Division’s Civil Trial Section for investigating the case.
Trial Attorneys Ashley Stein and Casey Smith of the Tax Division’s Criminal Enforcement Section handled the criminal prosecution.
Florida Residents Plead Guilty to Conspiracy to Commit Interstate Transportation of Stolen PropertyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that AIMEE HARRIS and ROBERT KURLANDER pled guilty to conspiracy to commit interstate transportation of stolen property involving the theft of personal belongings of an immediate family member of a then-former government official who was a candidate for national political office. HARRIS and KURLANDER pled guilty today before United States Magistrate Judge Sarah L. Cave and will be sentenced by Chief United States District Judge Laura Taylor Swain.
U.S. Attorney Damian Williams said: “Harris and Kurlander stole personal property from an immediate family member of a candidate for national political office. They sold the property to an organization in New York for $40,000 and even returned to take more of the victim’s property when asked to do so. Harris and Kurlander sought to profit from their theft of another person’s personal property, and they now stand convicted of a federal felony as a result.”
FBI Assistant Director Michael J. Driscoll said: “As they've admitted with today’s pleas, the defendants conspired to steal an individual’s personal property, which they subsequently sold to a third party and delivered across state lines. As a consequence of their actions, they now face punishment in the federal criminal justice system for their crimes. I’d like to thank the Public Corruption Units at both the FBI’s New York Office and the United States Attorney’s Office for the Southern District of New York for their dedicated effort in this case.”
According to the Information and statements made in court:
In or about September 2020, HARRIS and KURLANDER conspired to steal, transport across state lines, and sell personal property that belonged to an individual (the “Victim”) whom HARRIS and KURLANDER knew was an immediate family member of a then-former government official who was a candidate for national political office. The Victim had stored the property, including a handwritten journal containing highly personal entries, tax records, a digital storage card containing private family photographs, and a cellphone, among other things, in a private residence in Delray Beach, Florida, at which HARRIS was temporarily residing. After HARRIS stole the property, she enlisted KURLANDER to help her facilitate its sale. HARRIS and KURLANDER then made contact with an employee of an organization based in Mamaroneck, New York (the “Organization”), who instructed them to use an encrypted application to communicate with the Organization and requested photographs of the Victim’s property. After receiving the photographs, the Organization offered to pay for HARRIS and KURLANDER’s transportation of the property from Florida to New York City. HARRIS and KURLANDER subsequently traveled to New York City with the Victim’s property at the Organization’s expense and met with employees of the Organization. During that meeting, HARRIS described the circumstances of how she had obtained the Victim’s property, provided the property to the Organization, and disclosed that the Victim had stored additional property in the residence where HARRIS continued to have access. After the meeting, and at the Organization’s request, HARRIS and KURLANDER returned to Florida to obtain more of the Victim’s property in order to provide it to the Organization. They later met with an Organization employee in Florida and gave that employee more of the Victim’s stolen property, believing that the Organization would transport or cause the transport of the stolen property from Florida to the Organization’s offices in New York, which the Organization subsequently did. The Organization subsequently paid HARRIS and KURLANDER each $20,000 for the stolen property.
* * *
AIMEE HARRIS, 40, of Palm Beach, Florida, and ROBERT KURLANDER, 58, of Jupiter, Florida, each pled guilty to one count of conspiracy to commit interstate transportation of stolen property, which carries a maximum sentence of 5 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Under the terms of their plea agreements, HARRIS and KURLANDER each agreed to forfeit $20,000, and KURLANDER agreed to cooperate with the Government.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Jacqueline C. Kelly, Robert B. Sobelman, and Mitzi S. Steiner are in charge of the prosecution.
Florida Man Found Guilty of Hate Crime for Racially-Motivated Attack Against Black Man Driving with his FamilyRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Roger Handberg for the Middle District of Florida and Special Agent in Charge David Walker of the FBI Tampa Field Office announced that a federal jury in Tampa, Florida, returned a guilty verdict against Jordan Patrick Leahy, 29, for a racially-motivated attack against a Black man who was traveling down a public roadway with his family.
At trial the government introduced evidence that on Aug. 8, 2021, Leahy came upon the victim, J.T., who was driving his daughter and girlfriend home from a family get together, and began threatening J.T., calling him racial slurs, and used his car in an attempt to force J.T. and his family off the road. Leahy’s pursuit of J.T. and his family lasted nearly a mile and half before Leahy sideswiped J.T. as J.T. attempted to evade the attack. Leahy fled the scene of the accident, but stopped at the next red light. J.T. pulled behind Leahy at the light, and Leahy got out of his car, stormed at J.T., and tried to assault him, again yelling racial slurs. When officers from the Pinellas County Sherriff’s Office arrived on the scene, Leahy made numerous statements evidencing his bias motive, including telling the officers that Black people need to be kept “in their areas.”
“Across America, families must be able to freely travel our public streets without fear of being attacked because of race,” said Assistant Attorney General Clarke. “This verdict should send a strong message that the Department of Justice remains firmly committed to prosecuting, to the fullest extent of the law, those who would use violence to enforce heinous racist beliefs.”
“No one should be targeted, threatened, intimidated or assaulted because of their race,” said U.S. Attorney Handberg. “The defendant in this case acted upon his bigoted beliefs and put an entire family and others’ safety at risk. We and our local, state and federal law enforcement partners will not tolerate such behaviors in our community.”
“Hate crimes are not just an attack on an individual, they are an attack on entire communities,” said Special Agent in Charge Walker. “We want to assure the public the FBI will work diligently investigating crimes driven by hate and intolerance. We encourage anyone who believes their civil rights have been violated to report it to the FBI.”
Leahy faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. Leahy was remanded to the custody of the U.S. Marshals pending sentencing.
The case was investigated by the FBI, the Pinellas County Sheriff’s Office and the Florida Highway Patrol. Assistant U.S. Attorney Carlton Gammons for the Middle District of Florida and Trial Attorneys David Reese and Laura-Kate Bernstein of the Civil Rights Division are prosecuting the case.
Florida Man Found Guilty of Hate Crime for Racially-Motivated Attack Against Black Man Driving with his FamilyRead the Press Release
Tampa, FL – Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Roger Handberg for the Middle District of Florida and Special Agent in Charge David Walker of the FBI Tampa Field Office announced that a federal jury in Tampa, Florida, returned a guilty verdict against Jordan Patrick Leahy, 29, for a racially-motivated attack against a Black man who was traveling down a public roadway with his family.
At trial the government introduced evidence that on Aug. 8, 2021, Leahy came upon the victim, J.T., who was driving his daughter and girlfriend home from a family get together, and began threatening J.T., calling him racial slurs, and used his car in an attempt to force J.T. and his family off the road. Leahy’s pursuit of J.T. and his family lasted nearly a mile and half before Leahy sideswiped J.T. as J.T. attempted to evade the attack. Leahy fled the scene of the accident, but stopped at the next red light. J.T. pulled behind Leahy at the light, and Leahy got out of his car, stormed at J.T., and tried to assault him, again yelling racial slurs. When officers from the Pinellas County Sherriff’s Office arrived on the scene, Leahy made numerous statements evidencing his bias motive, including telling the officers that Black people need to be kept “in their areas.”
“Across America, families must be able to freely travel our public streets without fear of being attacked because of race,” said Assistant Attorney General Clarke. “This verdict should send a strong message that the Department of Justice remains firmly committed to prosecuting, to the fullest extent of the law, those who would use violence to enforce heinous racist beliefs.”
“No one should be targeted, threatened, intimidated or assaulted because of their race,” said U.S. Attorney Handberg. “The defendant in this case acted upon his bigoted beliefs and put an entire family and others’ safety at risk. We and our local, state and federal law enforcement partners will not tolerate such behaviors in our community.”
“Hate crimes are not just an attack on an individual, they are an attack on entire communities,” said Special Agent in Charge Walker. “We want to assure the public the FBI will work diligently investigating crimes driven by hate and intolerance. We encourage anyone who believes their civil rights have been violated to report it to the FBI.”
Leahy faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. Leahy was remanded to the custody of the U.S. Marshals pending sentencing.
The case was investigated by the FBI, the Pinellas County Sheriff’s Office and the Florida Highway Patrol. Assistant U.S. Attorney Carlton Gammons for the Middle District of Florida and Trial Attorneys David Reese and Laura-Kate Bernstein of the Civil Rights Division are prosecuting the case.
Florida Man Charged with Fraudulently Obtaining $1 Million in Unemployment Benefits and COVID-19 LoanRead the Press Release
NEWARK, N.J. – A Florida man was arrested for allegedly obtaining more than $1 million in government benefits, U.S. Attorney Philip R. Sellinger announced today.
Michael Blanc, 33, of Miami, Florida, appeared by videoconference in Florida on Aug. 24, 2022, before U.S. Magistrate Judge Chris M. McAliley, who set bond at $250,000.
According to the complaint:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic, including workers who are not ordinarily eligible for unemployment insurance benefits. The CARES Act also enabled the Small Business Association (SBA) to offer funding to business owners through the COVID-19 Economic Injury Disaster Loans (EIDL).
From March 2020 to in or about December 2020, five states paid out approximately $960,000 in unemployment insurance benefits in response to applications that used an internet provider (IP) address associated with Blanc in furtherance of the claim. Law enforcement officers interviewed four people in whose names the claims were made; each said they did not file a claim, authorize anyone to make a claim, or know Blanc.
In July 2020, the SBA provided an EIDL of approximately $65,000 in response to an application in the name of a victim. The loan was transferred to a bank account in Blanc’s name. The IP address used to file the EIDL application is also connected to 67 additional EIDL applications. The SBA provided approximately $250,000 in response to these applications.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, in New York, and the United States Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Dale Forrester, Cybercrime Investigations Division, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked the FBI, Miami Division, and the New Jersey Department of Labor & Workforce Development for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Flint Rapper Cliff Mac Charged in Murder-for-Hire PlotRead the Press Release
FLINT– A Flint rapper was charged yesterday for hiring a man to murder a Sterling Heights woman for $10,000 in cash today, announced United States Attorney Dawn N. Ison.
Joining in the announcement were James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation, Detroit Division, and Special Agent in Charge Paul D. Vanderplow, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division.
A federal grand jury issued a superseding indictment charging Clifton E. Terry, III, a.k.a. “Cliff Mac,” 31, of Flint with conspiracy to commit murder-for-hire resulting in personal injury, murder-for-hire resulting in personal injury, and using a firearm during and in relation to a crime of violence. The grand jury had previously indicted defendant Andre D. Sims, 25, of Grand Rapids, on March 16, 2022, for his role in the murder-for-hire plot with Terry.
According to the indictment, Terry solicited Sims to murder a female Sterling Heights resident for $10,000 in cash. On November 27, 2020, Sims traveled from Grand Rapids to Flint where he obtained a vehicle. In the early morning of November 28, 2020, Sims drove to the victim’s residence in Sterling Heights and parked across the street. When the victim left her residence several hours later Sims approached her vehicle and fired seven to eight gunshots at the victim. Despite being shot multiple times, the victim survived. The shooting was captured on the victim’s home security system. After the shooting, Sims drove to a nearby apartment complex where he abandoned his vehicle. Shortly thereafter, Terry picked Sims up from the apartment complex. Terry later agreed to pay Sims $2,500 for the failed hit.
Terry is also charged with first degree murder in a separate case in Genesee County Circuit Court for his alleged role in the August 17, 2021, killing of Devaroe Davis.
Sims was recently sentenced to life in prison following his murder conviction in the Kent County Circuit Court for the shooting death of a 65-year-old woman.
Based on the charges of conspiring to commit murder-for-hire and for committing murder-for-hire resulting in personal injury, Terry faces a maximum of twenty years in prison and a fine of up to $250,000. Based on the charge of aiding and abetting the use and discharge of a firearm during a crime of violence, Terry faces a mandatory minimum of ten years in prison and a maximum of life in prison and a fine of up to $250,000.
This case was investigated by special agents of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms & Explosive, with assistance from the Sterling Heights Police Department, the Flint Police Department, the Drug Enforcement Administration, the Michigan State Police, Oakland County Sheriff’s Office, and the Genesee County Prosecutor’s Office.
The case is being prosecuted by Assistant United States Attorneys Jules DePorre, Anthony Vance, and Tim Turkelson.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five Men Sentenced to Prison for Armed Carjackings, Firearms ViolationsRead the Press Release
MINNEAPOLIS – Five men have been sentenced to prison for a string of armed carjackings and various firearms violations, announced United States Attorney Andrew M. Luger.
Isaiah Stacy Alstad, 23, pleaded guilty to two counts of aiding and abetting carjacking and was sentenced yesterday before Judge John R. Tunheim to 110 months in prison. James Brock Williams, Jr., 21, and Clifton Germaine Walker, Jr., 25, were previously sentenced to 56 months and 110 months, respectively, for conspiring to use, carry, and brandish firearms during and in relation to armed carjackings. Jordan Sydney Shamah Rhodes, 23, was previously sentenced to 72 months for being a controlled substance user in possession of a firearm. And Joshoamei Deangelo Richardson, 21, was previously sentenced to 84 months in prison for aiding and abetting using, carrying, and brandishing a firearm during and in relation to an armed carjacking. A sixth codefendant, Eric Troy Ballard, Jr., 20, remains in custody pending further proceedings.
According to court documents, between May 2020 and January 2021, the defendants maintained active membership in the street gang known as the “Top 5.” The purpose of the gang was to make money for its members through criminal acts, including thefts, robberies, and distribution and sale of controlled substances. Proceeds of the money obtained through the commission of criminal acts were distributed among the Top 5 members. Top 5 members would use, carry, and possess firearms to commit these criminal acts as well as carry out acts of violence against others, including shootings and assaults. Top 5 members used social media to discuss criminal activity, recruit new members, and display cash, firearms, and controlled substances.
According to court documents, on August 25, 2020, at approximately 2:30 a.m., a victim was carjacked at gunpoint and pistol-whipped near the 1200 block of Jackson Street, in St. Paul. That same day, at approximately 6:50 a.m., a second victim was carjacked at gunpoint in the parking lot of a restaurant near White Bear Avenue in St. Paul. At approximately 9:00 a.m. that same day, a third victim was carjacked at gunpoint on Maria Avenue near Metropolitan State University in St. Paul. All six defendants were charged for their roles in these carjackings and related illegal possession and use of firearms during some of these crimes.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Saint Paul Police Department, the Minneapolis Police Department, the Columbia Heights Police Department, and the South Saint Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
Five Florida Men Arrested on Charges for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — Five Florida men, all self-identified militia members, were arrested today
on charges stemming from their actions during the breach of the U.S. Capitol on Jan. 6, 2021. Their
actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain
and count the electoral votes related to the presidential election.
Four of the defendants -- Benjamin Cole, 38, of Leesburg, John Edward Crowley, 50, ofWindermere, Brian Preller, 33, of Mount Dora, and Jonathan Rockholt, 38, of Palm Coast, Florida –
are charged with the felony offense of interfering with a law enforcement officer during a civil
disorder. Along with a fifth defendant -- Tyler Bensch, 20, of Casselberry – they also are charged
with the misdemeanor offenses of entering and remaining in a restricted building or grounds and
disorderly and disruptive conduct in a restricted building or grounds.Crowley, Rockholt, and Bensch were arrested in Florida and are making their initial court
appearances today in the Middle District of Florida. Cole, who was arrested in Louisville, is making
his initial court appearance in the Western District of Kentucky. Preller, who was arrested in
Rutledge, Vermont, is making his appearance in the District of Vermont.
According to court documents, the five men self-identified as members of the “B Squad,” a
subgroup of a militia-style, Florida based organization known as the “Guardians of Freedom,” which
adheres to the ideology of the “Three Percenters.” They traveled to Washington, D.C., with others in
the “B Squad” and stayed at a hotel on Jan. 5, 2021. On Jan. 6, the five defendants were among those
illegally gathered on the Capitol grounds. Cole wore a tactical vest. Preller wore a tactical vest with a
chemical irritant spray attached to the front, as well as large goggles and a green helmet with the
word “monster” on the back. He also carried a long black walking stick and wore a shirt that read
“waterboarding instructor.” Rockholt wore a tactical vest and carried what appeared to be a knife in
his front right pocket; he also wore a baseball helmet. Bensch wore a tactical vest, as well as a
military-style helmet with goggles and a black gas mask. He also carried a chemical irritant in front
of the vest.Cole, Crowley, Preller and Rockholt were in a group that engaged in a confrontation with law
enforcement officers in the tunnel area of the Capitol’s Lower West Terrace. Bensch remained just
outside. While inside the tunnel, Cole, Preller, Crowley and Rockholt confronted and assisted the
crowd in confronting the officers that were preventing the tunnel and Capitol from being breached.
They added their force, momentum, bodies, and efforts to the other rioters in a “heave-ho” effort that
put pressure on the police line. As a direct result of the actions of the rioters in the tunnel at that
time, the mob penetrated deeper, pushing the police line back.Once officers finally were able to repel Cole, Preller, Crowley, Rockholt, and others from the
tunnel, Rockholt picked up a clear riot shield with a Capitol Police seal before leaving the area.
Bensch, meanwhile, used one of his chemical irritants to spray the face of an individual who was an
unknown member of the crowd, even though that person posed no threat to him.This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and
the Department of Justice National Security Division’s Counterterrorism Section. Valuable
assistance was provided by the U.S. Attorney’s Offices for the Middle District of Florida, the District
of Vermont, and the Western District of Kentucky.The case is being investigated by the FBI’s Washington, Jacksonville, Tampa, Boston, and
Albany Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the
Metropolitan Police Department.In the 19 months since Jan. 6, 2021, more than 860 individuals have been arrested in nearly
all 50 states for crimes related to the breach of the U.S. Capitol, including over 260 individuals
charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.A complaint is merely an allegation, and all defendants are presumed innocent until proven
guilty beyond a reasonable doubt in a court of law.##
Fineview Felon Admits Illegally Possessing Various Drugs and a Stolen PistolRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has pleaded guilty to federal drug distribution and firearms charges, United States Attorney Cindy K. Chung announced today.
Clarence Thomas, age 29, of the City’s Fineview section, pleaded guilty to one count of Possession with Intent to Distribute Quantities of Heroin and Fentanyl and one count of Possession of a Firearm by a Convicted Felon, before Senior United States District Judge David S. Cercone.
According to information presented to the court, on Nov. 10, 2019, City of Pittsburgh Police executed a search warrant at Thomas’s residence following surveillance of apparent drug trafficking activity. Officers seized quantities of heroin, fentanyl, cocaine, crack cocaine, and marijuana, as well as an illegally possessed Ruger pistol that had been previously reported as being stolen. Thomas had a prior felony conviction for possession with intent to deliver a controlled substance and, as such, was legally forbidden from possessing a firearm.
Sentencing is scheduled for Dec. 7, 2022. The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Thomas has been granted bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
Former Romulus Mayor Pleads Guilty to Wire FraudRead the Press Release
DETROIT – Former Romulus Mayor LeRoy Burcroff, 58, of Romulus, pleaded guilty today to wire fraud following his theft and misuse of over $15,000 in campaign funds, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Burcroff was elected mayor of the City of Romulus in 2014. As part of his election efforts, Burcroff established a committee to elect (CTE) fund entitled, “Committee to Elect LeRoy D. Burcroff.”
Over the next two-and-a-half years, Burcroff devised and executed a scheme to defraud donors to his CTE account by fraudulently using these funds for his personal benefit rather than for his election. For example, in November 2017, Burcroff spent over $6,000 in campaign funds to pay for a family member’s wedding. Burcroff spent the CTE money on a church fee, a banquet room rental, flowers, and a $4,500 bill for alcohol. In 2017 and 2018, Burcroff used CTE funds to pay over $11,600 in dues and expenses to the Belleville Yacht Club (BYC) which he used for his personal benefit. On multiple occasions, Burcroff overpaid his dues using his CTE account thereby causing the BYC to write him a check for $2,000 in December of 2017. Burcroff deposited this money into his personal bank account. In 2018, Burcroff made a $1,000 donation of CTE funds to a trade industry for his personal benefit. In 2019, Burcroff spent $3,000 of campaign funds on a personal vacation to Florida.
The wire fraud charge carries a maximum sentence of 20 years’ imprisonment and a fine of $250,000.
United States Attorney Ison said, “The citizens of the Eastern District deserve to be served by public officials of the highest integrity. Those who abuse positions of trust by misusing campaign donations for their own benefit will face stiff consequences. Today’s plea represents our commitment to ensuring the citizens of Michigan have the utmost trust in our campaign finance system.”
“Burcoff betrayed his supporters and neighbors, the people of Wayne County, by embezzling their donations to fund his lifestyle,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI prioritizes exposing corrupt public officials whose greed erodes the public’s confidence in government.”
The case was investigated by the Detroit Area Corruption Task Force, which is led by the Federal Bureau of Investigation, with assistance from the Detroit Police Department, Michigan Attorney General's Office, Customs & Border Protection, and the U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown
Ex-Bank Branch Manager Sentenced for EmbezzlementRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a former BBVA branch manager for embezzling funds from the bank where she was employed, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick M. Davis.
U.S. District Court Judge Corey L. Maze sentenced Dorinda Lynn Lumpkin, 48, of Gadsden, to twelve months and one day in prison for embezzlement. Lumpkin pleaded guilty to the charge in January.
According to the plea agreement, Lumpkin was employed as a branch manager at a BBVA bank in Gadsden. Between January 2017 and June 2020, Lumpkin stole at least $184,250.00 from BBVA accounts associated with a deceased customer and her daughter. To do so, she prepared and approved debit tickets authorizing the transactions, which were purportedly signed by the deceased customer’s daughter. The defendant then withdrew the funds from those accounts and converted them to her own use.
“The defendant abused her position as a bank employee and used it to steal money from a grieving family,” U.S. Attorney Escalona said. “We thank our outstanding law enforcement partners at the United States Secret Service for bringing her to justice and for their continued efforts to safeguard America’s financial systems.”
“For more than three years, the defendant violated the trust that had been bestowed upon her by her employer and those customers she served,” SAC Davis said. “It is appalling that an individual would take advantage of a family during their darkest time. The U.S. Secret Service is committed to bringing these types of individuals to justice.”
The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorney Edward J. Canter prosecuted the case.
Eagle Butte Man Sentenced for LarcenyRead the Press Release
United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man convicted of Larceny was sentenced on August 22, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Randall Bear Eagle, age 38, was sentenced to 18 months in federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bear Eagle was indicted by a federal grand jury in April of 2022. He pleaded guilty on May 19, 2022.
The conviction stemmed from an incident that occurred on November 16, 2022, in Eagle Butte. Bear Eagle was on foot, when he located a 2017 Ford Explorer that was parked in the driveway of a residence. Bear Eagle got in and began to back the vehicle out of the driveway, when the owner of the vehicle heard someone entering her car. When she saw Bear Eagle backing out of the driveway, she and another individual ran outside to prevent Bear Eagle from driving off, but were unsuccessful. The vehicle was reported stolen. Law enforcement later located Bear Eagle and the vehicle at a location 33 miles north of Eagle Butte. The vehicle was pulled over and Bear Eagle was arrested. The vehicle was valued at over $17,000.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bear Eagle was immediately remanded to the custody of the U.S. Marshals Service.
Dominican Drug Lord extradited to the United States from the Dominican Republic to Face Drug Trafficking ChargesRead the Press Release
SAN JUAN, Puerto Rico –Dominican authorities extradited Consolidated Priority Organizational Target (CPOT) Julio De Los Santos-Bautista, also known as “Julito Kilo,” to the United States to face drug trafficking charges filed in the District of Puerto Rico.
“This successful extradition demonstrates the commitment of the Department of Justice to support our law enforcement partner agencies and our strong working relationship with dedicated foreign partners who assist in apprehending drug trafficking criminals wherever they may be hiding,” said U.S. Attorney W. Stephen Muldrow. “We will continue to maximize our multi-agency efforts to bring to justice those who disregard our laws and smuggle drugs into Puerto Rico and the continental United States.”
Julio De Los Santos-Bautista was the leader of a transnational criminal organization (TCO) based in the Dominican Republic. This TCO received multi-ton shipments of cocaine from South America through the Dominican Republic and then transported these to Puerto Rico and the continental United States.
On July 14, 2021, a Federal Grand Jury in the District of Puerto Rico returned a superseding indictment against De Los Santos-Bautista charging him with Conspiracy to Distribute Cocaine for the Purpose of Unlawful Importation, Conspiracy to Import Cocaine, and Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel Subject to the Jurisdiction of the United States. The Indictment includes a narcotics forfeiture allegation of $25,000,000.
The investigation, Operation El Patron, was jointly conducted with the collaboration of CCSF partner agencies: Coast Guard Investigative Services (CGIS), Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and the U.S. Marshals Service.
The Attorney General designated De Los Santos-Bautista as an OCDETF Consolidated Priority Organizational Target (CPOT) in 2020. The Attorney General’s (AG) Interagency CPOT list is comprised of leaders who exercise “command and control” of the elements of the most prolific drug trafficking/money laundering organizations that have the greatest impact on the United States’ illicit drug supply. The CPOT list represents the “most wanted” of the cartel leadership and ensures that the full capabilities of the U.S. government are focused, in a coordinated and clear manner, on a group of agreed-upon high-level targets.
The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of De Los Santos-Bautista from the Dominican Republic. The Department of Justice also recognizes the significant collaboration provided by authorities in the Dominican Republic.
The case is being prosecuted by Assistant U.S. Attorney Max J. Pérez-Bouret, Chief of the Transnational Organized Crime Section, and Assistant U.S. Attorney Vanessa Bonhomme, Deputy Chief of the Transnational Organized Crime Section.
If convicted, De Los Santos-Bautista faces a possible minimum sentence of 10 years and up to life in prison for all the drug trafficking charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force 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 to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Caribbean Corridor Strike Force is to identify, disrupt, and dismantle large scale international drug trafficking and money laundering organizations importing and further transshipping cocaine, as well as money laundering activities.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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