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29 September 2022
Vacaville Parolee Indicted for Being a Felon in Possession of a FirearmRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned an indictment today against Eric Terrell Christian, 31, of Vacaville, charging him with being a felon in possession of a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on July 21, 2022, Christian failed to yield during an attempted law enforcement traffic stop and sped away from the officer. Moments after this evasion, a witness called 911 and reported seeing a firearm in a parking lot Christian had just driven through. On Aug. 11, 2022, officers attempted to stop Christian; he fled on foot from his car but was quickly apprehended. In his vehicle, officers located a Glock handgun with a round in the chamber and another 17 rounds in an inserted high-capacity magazine. Officers subsequently searched the apartment in this complex that Christian had access to and located a Palmetto Arms AR-style pistol with a round in the chamber and 40 rounds in an inserted, high-capacity magazine. Christian is not allowed to possess firearms because he has previously been convicted of three felony offenses, including two convictions for assault with a deadly weapon. Christian was on parole from his second assault conviction when he committed the current offenses.
This case is the product of an investigation by the Vacaville Police Department, California Department of Corrections and Rehabilitation - Division of Adult Parole Operations, the Solano County District Attorney’s Office, the FBI’s Solano County Violent Crimes Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
If convicted, Christian faces a maximum statutory penalty of 15 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
U.S. Department of Justice announces surge of resources to fight violent crime in HoustonRead the Press Release
HOUSTON - The U.S. Department of Justice, together with numerous law enforcement partners, met today at Jack Yates High School in Houston to announce a new initiative that will surge law enforcement tools and resources to target gangs who are terrorizing communities in Houston.
“This new violent crime initiative, led by the Criminal Division’s Organized Crime and Gang Section (OCGS), will surge the tools and resources we use to investigate and prosecute violent crime nationally and apply those tools to gangs who are terrorizing communities here in Houston,” said Assistant Attorney General Kenneth A. Polite Jr., of the Justice Department’s Criminal Division.
The new initiative will include federal prosecutors from OCGS, our nation’s foremost experts in charging federal racketeering (RICO) prosecutions, as well as dedicated investigative agents, analysts and forensic experts from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, Houston Police Department (HPD) and the Harris County Sherriff’s Office (HCSO).
“Together we will employ a data-driven approach to strategically identify and prosecute the worst of the worst criminals and gang members who are responsible for a disproportionate amount of violent crime in underserved communities in Houston,” said Assistant Attorney General Polite.
The initiative will also include efforts to invest in prevention, intervention and reentry. Today the Justice Department’s Office of Justice Programs announced grant awards totaling $100 million to help communities across the U.S. reduce gun crime and other serious violence. Included in that announcement is a $2 million award to Harris County in Houston to provide funding to community and hospital-based violence interruption programs.
“If we work together to battle the problem, we can make a difference,” said U.S. Attorney Jennifer Lowery of the Southern District of Texas. “This is our community, too, and we want to do all we can to make sure everyone feels safe here in Houston.
As part of the announcement, Assistant Attorney General Polite and U.S. Attorney Lowery met with Yates students to hear directly from them about the violence and gang activity in their neighborhoods. They also met with various community and faith-based leaders and business owners in the Third Ward.
Joining Assistant Attorney General Polite and U.S. Attorney Lowery in the press conference today were Chief Troy Skinner of the HPD; Special Agent in Charge James Smith, FBI Houston Field Office; Special Agent in Charge Fred Milanowski, ATF Houston, Sheriff Ed Gonzalez, HCSO, and Associate Deputy Director Cornelia Sigworth, of the Justice Department’s Office of Justice Programs.
OCGS is leading the new violent crime initiative in coordination with the U.S. Attorney’s Office for the Southern District of Texas and will include dedicated investigative agents, analysts and forensic experts from the FBI, ATF, U.S. Marshals Service, HPD, HCSO as well as many other federal, state and local law enforcement agencies.
U.S. Department of Justice Announces Surge of Resources to Fight Violent Crime in HoustonRead the Press Release
HOUSTON – The U.S. Department of Justice, together with numerous law enforcement partners, met today at Jack Yates High School in Houston to announce a new initiative that will surge law enforcement tools and resources to target gangs who are terrorizing communities in Houston.
“This new violent crime initiative, led by the Criminal Division’s Organized Crime and Gang Section (OCGS), will surge the tools and resources we use to investigate and prosecute violent crime nationally and apply those tools to gangs who are terrorizing communities here in Houston,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division.
The new initiative will include federal prosecutors from OCGS, our nation’s foremost experts in charging federal racketeering (RICO) prosecutions, as well as dedicated investigative agents, analysts and forensic experts from the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Marshals Service, Houston Police Department (HPD), and the Harris County Sherriff’s Office (HCSO).
“Together we will employ a data-driven approach to strategically identify and prosecute the worst of the worst criminals and gang members who are responsible for a disproportionate amount of violent crime in underserved communities in Houston,” said Assistant Attorney General Polite.
The initiative will also include efforts to invest in prevention, intervention and reentry. Today the Justice Department’s Office of Justice Programs announced grant awards totaling $100 million to help communities across the U.S. reduce gun crime and other serious violence. Included in that announcement is a $2 million award to Harris County in Houston to provide funding to community and hospital-based violence interruption programs.
“If we work together to battle the problem, we can make a difference,” said U.S. Attorney Jennifer Lowery of the Southern District of Texas. "This is our community, too, and we want to do all we can to make sure everyone feels safe here in Houston.”
As part of the announcement, Assistant Attorney General Polite and U.S. Attorney Lowery met with Yates students to hear directly from them about the violence and gang activity in their neighborhoods. They also met with various community and faith-based leaders and business owners in the Third Ward.
Joining Assistant Attorney General Polite and U.S. Attorney Lowery in the press conference today were Chief Troy Skinner of the HPD; Special Agent in Charge James Smith, FBI Houston Field Office; Special Agent in Charge Fred Milanowski, ATF Houston; Sheriff Ed Gonzalez, HCSO; and Associate Deputy Director Cornelia Sigworth of the Justice Department’s Office of Justice Programs.
OCGS is leading the new violent crime initiative in coordination with the U.S. Attorney’s Office for the Southern District of Texas and will include dedicated investigative agents, analysts and forensic experts from the FBI, ATF, U.S. Marshals Service, HPD, HCSO as well as many other federal, state, and local law enforcement agencies.
U.S. Attorney’s Office Announces Commitment to Environmental Justice and Seeks Reporting of Environmental Justice ConcernsRead the Press Release
United States Attorney Jennifer Klemetsrud Puhl announced today that the United States Attorney’s Office for the District of North Dakota is encouraging members of the public to report environmental justice concerns to the Department of Justice.
The United States Attorney’s Office is coordinating with various components of the Department of Justice to promote the goal of environmental justice and that all communities may live in a safe and healthy environment through the fair and effective enforcement of the Nation's laws. Environmental justice is the fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of environmental laws, regulations, and policies. Environmental justice issues can arise under many different circumstances and may involve various federal civil and criminal laws.
Community members that have any environmental justice concerns to report or would like additional information are encouraged to contact the Environmental Justice Coordinator for the District of North Dakota by calling the U.S. Attorney’s Office at 701-530-2420. Members of the public may also submit reports of suspected environmental violations through the Environmental Protection Agency’s website.
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Two Men Indicted for Unlawfully Possessing U.S. Postal Service Key and Possession of Stolen MailRead the Press Release
HUNTSVILLE, Ala. – A federal grand jury this week indicted two Birmingham men with possession of stolen mail and the unlawful possession of Postal Service keys, announced U.S. Attorney Prim F. Escalona, U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division, and U.S. Secret Service Special Agent in Charge Patrick Davis.
A two-count indictment filed in U.S. District Court charges Khory Deontay Lowe, II, 18, and Dejuan Alexander Wallace, 41, both of Birmingham, with one-count of possession of stolen mail. Lowe was also charged with one-count of unlawful possession of a Postal Service key. The incident occurred in Madison County on September 6, 2022.
If you like to report United States Postal Service mail theft or other crimes committed through or towards the United States Postal Service, please contact the United States Postal Inspection Service at 1-877-876-2455 or https://www.uspis.gov/report.
U.S. Postal Inspection Service and U.S. Secret Service investigated the case, along with the Huntsville Police Department. Assistant U.S. Attorney Davis Barlow is prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Two Former eBay Executives Sentenced to Prison for CyberstalkingRead the Press Release
BOSTON – The former Senior Director of Safety & Security at eBay, Inc. and the company’s former Director of Global Resiliency were sentenced to prison today for their roles in a cyberstalking campaign targeting the editor and publisher of a newsletter that eBay executives viewed as critical of the company.
James Baugh, 47, of San Jose, Calif., was sentenced by U.S. District Court Judge Patti B. Saris to 57 months in prison and two years of supervised release. Baugh was also ordered to pay a fine of $40,000. David Harville, 50, of Las Vegas, Nev., was sentenced to two years in prison and two years of supervised release. Harville was also ordered to pay a fine of $20,000. On April 25, 2022, Baugh pleaded guilty to one count of conspiracy to commit stalking through interstate travel and through facilities of interstate commerce, two counts of stalking through interstate travel, two counts of stalking through facilities of interstate commerce, two counts of witness tampering and two counts of destruction, alteration and falsification of records in a federal investigation. On May 12, 2022, Harville pleaded guilty to one count of conspiracy to commit stalking through interstate travel and through facilities of interstate commerce, two counts of stalking through interstate travel and two counts of stalking through facilities of interstate commerce.
“The internet is incredibly powerful. It brings community, information, and even merchandise right to our homes. Mr. Baugh and Mr. Harville used the internet’s power to harass and intimidate a couple who did nothing—nothing—other than publish content that our First Amendment protects. The defendants’ toxic brand of online and real-world harassment, threats, and stalking was outrageous, cruel and defies any explanation—all the more because these men were seasoned and highly paid security executives backed by the resources of a Fortune 500 corporation. Their behavior was reprehensible. The just sentences the Court imposed today will take Mr. Baugh and Mr. Harville offline and out of our community for some time. This should serve as a strong reminder to all that holding positions of wealth and privilege does not absolve or shield criminals from accountability and incarceration. The government’s investigation continues,” said United States Attorney Rachael S. Rollins.
“Both men demonstrated a clear contempt for the law when they weaponized eBay’s security department to engage in an incredibly disturbing pattern of retaliatory harassment and intimidation to torment this couple, who, thankfully, did not let their fear silence them,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “While today’s sentencings cannot erase the substantial distress their victims suffered, it does make it crystal clear that anyone who goes online to threaten, intimidate, or harass others will face real-world consequences, including federal prison time.”
Harville and Baugh were arrested and charged in June 2020. Co-conspirators and former eBay employees Philip Cooke, Brian Gilbert, Stephanie Popp, Veronica Zea and Stephanie Stockwell previously pleaded guilty for their roles in a conspiracy to cyberstalk the victims. Cooke was sentenced in July 2021 to 18 months in prison. Gilbert, Popp, Zea and Stockwell are awaiting sentencing.
Between approximately Aug. 5, 2019 and Sept. 6, 2019, Harville, Baugh and their co-conspirators at eBay agreed to engage in a harassment campaign targeting a husband and wife in Natick, Mass. for their roles in publishing a newsletter that reported on issues of interest to eBay sellers. Senior executives at eBay were frustrated with the newsletter’s tone and content as well as the substance of comments posted beneath the newsletter’s articles. The harassment campaign arose from communications between those senior executives and Baugh, who was eBay’s senior security employee.
The defendants and their co-conspirators executed a three-part harassment campaign intended to intimidate the victims and to influence their reporting about eBay. The campaign included sending anonymous and disturbing deliveries to the victims’ home; sending private Twitter messages and public tweets criticizing the newsletter’s content; threats to visit the victims in Natick; and traveling to Natick to surveil the victims and installing a GPS tracking device on their car.
The deliveries ordered to the victims’ home included a book on surviving the death of a spouse, a bloody pig mask, a fetal pig, a funeral wreath and live insects. The harassment also featured Craigslist posts inviting members of the public to experience sexual encounters at the victims’ home.
The threatening Twitter messages were written as if they had been sent by eBay sellers who were unhappy with the victims’ coverage in the newsletter. Some of these messages posted the victims’ home address and threatened to show up at their home.
On Aug. 15, 2019, Baugh, Harville and a co-conspirator traveled from California to Natick to surveil the victims and install a GPS tracking device on the victims’ car. The victims spotted the surveillance team and contacted local police. Harville also purchased tools intending to break into the victims’ garage and lied to an eBay investigator who was responding to the Natick Police’s request for assistance.
After learning of the police’s investigation, Harville and Baugh deleted digital evidence related to the cyberstalking campaign. Additionally, Baugh made false statements to police and internal investigators and falsified records intended to throw the police off the trail.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Natick Police Chief James G. Hicks made the announcement today. eBay provided valuable assistance and cooperation with the investigation. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Two Armed Methamphetamine Traffickers Are Handed Down Lengthy Prison TermsRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Frank D. Whitney sentenced Lawrence Jeffrey Brooks, 41, of Mount Holly, N.C., to 396 months in prison followed by 10 years of supervised release, and Dustin Blair Henry, 39, of Charlotte, to 235 months in prison and five years of supervised release for drug trafficking and firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to filed documents and information introduced at the sentencing hearings,
Brooks was the leader of a large drug trafficking organization operating in Mecklenburg County, of which Henry was a member. Court records show that, over the course of the drug conspiracy, the defendants conducted multiple drug transactions involving the sale of methamphetamine and illegally possessed firearms.
According to court documents, on January 29, 2019, law enforcement learned that Henry, who at the time was on post-release supervision stemming from a state drug conviction, sold methamphetamine to an individual. As a result, law enforcement conducted a search of Henry’s residence and seized four firearms, which Henry was prohibited from possessing. In February 2019, Brooks and Henry robbed at gun point two individuals over the course of a drug transaction. And, on May 14, 2019, law enforcement conducted a traffic stop of Brooks’s vehicle, from which they seized one kilogram of methamphetamine and two handguns that belonged to Brooks. As a convicted felon, Brooks is prohibited from possessing firearms. During a subsequent search of Brooks’s storage unit, law enforcement seized eight kilograms of methamphetamine.
On April 28, 2022, Brooks pleaded guilty to conspiracy to distribute methamphetamine, possession with intent to distribute methamphetamine, and possession of a firearm by a felon. Henry pleaded guilty on February 26, 2020, to conspiracy to distribute methamphetamine, distribution of methamphetamine, and possession of a firearm by a felon. Both men are currently in custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation, which to date has led to the federal prosecution of more than 60 individuals for drug trafficking. Law enforcement have also seized more than 49 kilograms of methamphetamine, 29 kilograms of fentanyl, 27 kilograms of cocaine, 3.5 kilograms of heroin, 70 firearms, more than $385,000 in cash, and over $800,000 in other property.
OCDETF identifies, disrupts, and dismantles criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, U.S. Attorney King commended the Drug Enforcement Administration, Homeland Security Investigations, the Charlotte Mecklenburg Police Department, the Huntersville Police Department, the Gastonia Police Department, and the Mount Holly Police Department for their coordination and investigation of the case.
Assistant United States Attorney Steven R. Kaufman, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Three Ms-13 Members Convicted of Racketeering, Murder, Extortion, and Federal Drug Charges After Three Week TrialRead the Press Release
Greenbelt, Maryland – Today, a federal jury convicted Luis Flores-Reyes, a/k/a “Maloso,” “Lobo,”’ and “Viejo Lovvon,” age 41, of Arlington, Virginia; Jairo Jacome, a/k/a “Abuelo,” age 40, of Langley Park, Maryland; and Brayan Contreras-Avalos, a/k/a “Anonimo,” and “Humilde,” age 27, of Langley Park, Maryland, on federal charges related to a racketeering enterprise known as La Mara Salvatrucha, or “MS-13.” Jacome and Flores-Reyes were also found guilty of murder in aid of racketeering. Jacome was convicted of an extortion conspiracy and Flores-Reyes was also convicted of extortion conspiracy. The jury also found Contreras-Avalos and Flores-Reyes guilty of a drug distribution conspiracy.
The convictions were announced by United States Attorney for the District of Maryland Erek L. Barron; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Frank A. Tarentino III of the Drug Enforcement Administration – New York Division; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Marcus Jones of the Montgomery County Police Department.
“These defendants wreaked havoc within our communities through murder, extortion, and drug trafficking, now they will be held accountable,” said U.S. Attorney for the District of Maryland Erek L. Barron. “We will relentlessly prosecute MS-13gang members who terrorize our Maryland communities with intimidation and violence.”
“MS-13 terrorizes communities throughout the United States and abroad, using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “MS-13 exploits vulnerable young people and immigrant communities that may not have easy access to law enforcement. This prosecution demonstrates the Department of Justice’s commitment to dismantling this criminal organization and protecting all people.”
“Members of MS-13, including Flores-Reyes, Jacome, and Contreras-Avalos, sow fear and violence in local communities through murder, extortion, drug trafficking, and witness tampering,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Today’s convictions represent some of the finest work the FBI and its partners undertake to hold violent gang members to account for the irreparable harm they have inflicted on humanity. The investigation and its results should also serve as yet another reminder of the consequences to be faced by those who traffic in violence. We and our partners remain committed to working together to aggressively pursue and dismantle these criminal enterprises who continue to threaten the residents of our communities.”
“MS-13 and gang violence plague our communities and impede law abiding citizens and their right to live without fear and intimidation,” said DEA Special Agent in Charge Frank Tarentino. “These convictions are a testament to DEA and law enforcement’s commitment to ensuring the American public’s health and safety.”
“Today’s conviction highlights HSI’s commitment to protecting public security and the keeping our communities safe,” said HSI Acting Executive Associate Director Steve K. Francis. “We will continue working with our local, state, and federal partners to disrupt and dismantle transnational criminal organizations such as MS-13.”
“There aren’t adequate words to describe the gruesome nature of the crimes committed by the three defendants,” said Special Agent in Charge James C. Harris of the Homeland Security Investigations (HSI) Baltimore field office. “The acts that Flores-Reyes, Jacome, and Contreras-Avalos committed are horrific and clearly warrant the convictions they received today. HSI Baltimore is proud to have worked with our federal, state, and local law enforcement partners to bring these three to justice. We will continue to work tirelessly to protect the law-abiding citizens of Maryland from notorious transnational gangs like MS-13.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland. Jacome was the highest-ranking member of the local Langley Park Salvatrucha, or “LPS” clique. Flores-Reyes and Contreras-Avalos were leaders within the Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas and El Salvador.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang and to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control.” One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
According to court documents and evidence presented at trial, the defendants ran an extortion scheme in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.” Flores-Reyes and Contreras-Avalos also trafficked illegal drugs, including marijuana, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang and opens the door to promotion to a leadership position.
As detailed during their trial, Flores-Reyes, Jacome, and Contreras-Avalos participated in at least six murders, including four minor victims, during the period of the conspiracy. Most of the victims were purported gang rivals except for one minor victim. For example, in June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two individuals living on the streets of Hyattsville, Maryland, who gang members believed to be members of the 18th Street gang. The investigation revealed no evidence that the victims were in fact members of any gang.
Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. In December 2016, Jacome directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police. The boy’s remains were discovered more than 18 months later in the woods outside of Germantown, Maryland.
Additionally, in March 2017, a member of the Sailors Clique, who was hiding from law enforcement in the Lynchburg, Virginia, area, after committing a murder in 2016 in Gaithersburg, Maryland, had a dispute with a local high school student over marijuana. In response, Flores-Reyes told a group of MS-13 members to drive down to Lynchburg and murder this student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect his fellow MS-13 members from law enforcement.
Flores-Reyes and Jacome face a mandatory sentence of life in prison. Contreras-Avalos faces a maximum sentence of life in prison. U.S. District Judge Paula Xinis has not scheduled sentencing hearings at this time.
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 make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
United States Attorney Erek L. Barron and Assistant Attorney General Kenneth A. Polite, Jr. commended the FBI, DEA, HSI, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, Nassau County District Attorney’s Office, the Bedford County Commonwealth’s Attorney’s Office and the Bedford County Sheriff’s Office for their work in the investigation. Mr. Barron and Mr. Polite thanked Assistant U.S. Attorneys Timothy F. Hagan, Chris M. Sarma, William Moomau, Assistant Director Catherine Dick of the Department of Justice Consumer Protection Division and Trial Attorney Alexander Gottfried of the Justice Department’s Criminal Division, who are prosecuting this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Three MS-13 Leaders Convicted of Racketeering ConspiracyRead the Press Release
A federal jury convicted three men for conspiring to participate in La Mara Salvatrucha, a transnational criminal enterprise, commonly known as MS-13, through a pattern of racketeering activity, including murder, extortion, drug trafficking, money laundering, and witness tampering.
According to court documents and evidence presented at trial, Luis Flores-Reyes, aka Maloso, aka Lobo, 41, of Arlington, Virginia; Jairo Jacome, aka Abuelo, 40, of Langley Park, Maryland; and Brayan Contreras-Avalos, aka Anonimo, aka Malia, aka Humilde, 27, of Langley Park, Maryland, ran a protection scheme with MS-13 in and around Langley Park, extorting local businesses by charging them “rent” for the privilege of operating in MS-13 “territory.”
MS-13 is organized into a series of sub-units or “cliques” that operate in specific geographic locations. Jacome was the highest-ranking member in a local clique called Langley Park Salvatrucha, or LPS. Flores-Reyes and Contreras-Avalos were leaders within the powerful Sailors Clique, which held territory in Maryland, Virginia, New York, New Jersey, Texas, and El Salvador.
“MS-13 terrorizes communities throughout the United States and abroad, using fear, violence, and intimidation,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This conviction demonstrates the Department of Justice’s commitment to dismantling this violent criminal organization.”
Flores-Reyes, Jacome, and Contreras-Avalos also participated in at least six murders during the period of the conspiracy, mostly of victims who they believed to be gang rivals. In June 2016, members of MS-13, including Contreras-Avalos, stabbed to death two homeless individuals, who were believed to be members of the 18th Street gang, in Hyattsville, Maryland.
The gang also trafficked in illegal drugs, including marijuana, heroin, and cocaine. A large share of the proceeds of the gang’s illegal activities were sent to gang leadership in El Salvador to further promote the illicit activities of the gang, using structured transactions and intermediaries to avoid law enforcement scrutiny.
“These defendants wreaked havoc within our communities through drug trafficking, extortion, fear, and murder – now they will be held accountable,” said U.S. Attorney Erek L. Barron for the District of Maryland. “We will relentlessly prosecute those who terrorize our communities with intimidation and violence.”
In March 2017, a member of the Sailors Clique, who was hiding from law enforcement in the Lynchburg, Virginia-area, had a dispute with a local high school student over marijuana. In response, Flores-Reyes commanded a squad of MS-13 members drive to Lynchburg and murder the high school student. The gang members kidnapped the student from his front lawn and cut his hand off before killing him. After the murder, Flores-Reyes helped to hide and protect the killers from law enforcement.
Among the most important rules of MS-13 is the prohibition against talking to law enforcement, embodied by the maxim ver, oir, y callar – see, hear, and say nothing. The gang enforced this rule by placing a “green light” – an order to kill – on any member of MS-13 who was thought to be informing on the gang. In December 2016, Jacome directed and participated in the murder of a 14-year-old member of MS-13 who was suspected of talking to the police. The boy’s remains were discovered 18 months later in the woods outside of Germantown, Maryland.
“Members of MS-13, including Flores-Reyes, Jacome, and Contreras-Avalos, sow fear and violence in local communities through murder, extortion, drug trafficking, and witness tampering,” said Assistant Director in Charge Steven M. D'Antuono of the FBI Washington Field Office. “Today's convictions represent some of the finest work the FBI and its partners undertake to hold violent gang members to account for the irreparable harm they have inflicted on humanity. The investigation and its results should also serve as yet another reminder of the consequences to be faced by those who traffic in violence. We and our partners remain committed to working together to aggressively pursue and dismantle these criminal enterprises who continue to threaten the residents of our communities.”
“Today’s conviction highlights HSI’s commitment to protecting public security and the keeping our communities safe,” said Acting Executive Associate Director Steve K. Francis of Homeland Security Investigations (HSI). “We will continue working with our local, state, and federal partners to disrupt and dismantle transnational criminal organizations such as MS-13.”
Flores-Reyes, Jacome, and Contreras-Avalos were each convicted of racketeering conspiracy. Flores-Reyes and Jacome were additionally convicted of murder in aid of racketeering and extortion conspiracy, and Flores-Reyes and Contreras-Avalos were convicted of conspiracy to distribute controlled substances. No sentencing date has been set. Flores-Reyes and Jacome face a mandatory penalty of life in prison. Contreras-Avalos faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI Washington Field Office, HSI Baltimore, DEA New York Field Division, DEA Baltimore District Office, Prince George’s County Police Department, Montgomery County Police Department, Virginia State Police, Lynchburg Police Department, Prince William County Police Department, and Bedford County Sheriff’s Office investigated the case. The Nassau County District Attorney’s Office also provided valuable assistance.
Trial Attorney Alexander Gottfried of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Timothy Hagan and Christopher Sarma for the District of Maryland are prosecuting the case.
Springfield, Illinois, Man Sentenced to 66 Months’ Imprisonment for Possession with Intent to Distribute Marijuana, Possession of a Firearm in Furtherance of a Drug Trafficking Crime, and COVID-19 FraudRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Demetrius Robertson, 30, of 2000 block of South 8th Street, was sentenced on September 27, 2022 to an aggregate 60 months’ imprisonment for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime. Robertson also was sentenced to a consecutive six months’ imprisonment and six months’ home confinement for wire fraud connected to pandemic Paycheck Protection Program (PPP) loans. Each term of imprisonment was to be followed by a two-year term of supervised release, all to run concurrently. Additionally, Robertson must pay restitution in the amount of $45,327.00 in connection with the wire fraud offense.
At Robertson’s sentencing hearing, the government presented evidence that Robertson was found in possession of an illegal firearm after neighbors noticed he was walking around with a gun. The government also presented evidence that Robertson fraudulently obtained two separate PPP loans.
Also at the hearing, U.S. District Judge Sue E. Myerscough found that Robertson knowingly possessed the firearm, a Glock 29 handgun, in furtherance of a drug trafficking crime, specifically possession of marijuana with intent to distribute. Additionally, Judge Myerscough found that Robertson provided false information on applications to obtain PPP loans. Robertson received a total of $40,327.00 in loan funds.
Judge Myerscough also noted that the illegal possession of firearms is a profoundly serious crime, and that the safety of the community is jeopardized as a result of firearms offenses. Judge Myerscough went on to note the serious impact that Covid-19 fraud has had on the community, stating that Robertson’s receipt of loan funds likely meant another business folded because they were unable to obtain aid.
A federal grand jury returned an indictment charging Robertson with the weapon and drug charges in May 2021 and returned a second, separate indictment charging Robertson with the fraud offenses in February 2022. Robertson pleaded guilty in May 2022.
“The people of the Central District of Illinois have a right to live a life free from gun violence,” said U.S. Attorney for the Central District of Illinois Gregory K. Harris. “This office will continue to hold firearms offenders and drug traffickers accountable. It also is unconscionable that criminals sought to capitalize on the pandemic by stealing funds meant for hard working small businesses.”
The United States Secret Service; the Bureau of Alcohol, Tobacco, and Explosives; the Illinois State Police; and the Springfield Police Department investigated the case. Assistant U.S. Attorney Sarah E. Seberger represented the government in the prosecution.
Sioux City Man Back to Federal Prison for Second Time for Violations of Supervised Release ConditionsRead the Press Release
A man who violated the terms of his supervised release after imprisonment, was sentenced September 28, 2022, to more than 2 years in federal prison.
William Sun, 59, from Sioux City, Iowa, received the prison term after a hearing was held regarding his violations.
Evidence at the revocation hearing showed Sun had failed to report to U.S. Probation within 72 hours, traveled outside the jurisdiction without prior approval, failed to comply with substance abuse treatment, and failed to follow U.S. Probation instructions. Sun was previously sentenced to federal prison in 2013, to 120 months’ imprisonment for conspiracy to distribute methamphetamine, distribution of methamphetamine within 1000 feet of a protected location, and distribution of methamphetamine. Sun also had his first term of supervised release revoked in July of 2021, for similar violations, was sentenced to 11 months in federal prison and was only released shortly before his most recent violations and revocation.
Sun was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Sun was sentenced to 27 months’ imprisonment. There is no parole in the federal system. Sun is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the U.S. Probation Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 12-4061. Follow us on Twitter @USAO_NDIA.
Sex Offender Sentenced to Prison for Escaping Halfway HouseRead the Press Release
ALBANY, NEW YORK – Glyn Frink, age 51, of Albany, was sentenced today to 3 years in prison for escaping from a residential re-entry center in September 2021, announced United States Attorney Carla B. Freedman and United States Marshal David L. McNulty.
Frink pled guilty on June 1, 2022. He admitted that he had been ordered to reside at a halfway house as part of a prior federal term of imprisonment, and that on September 25, 2021, he signed out of the halfway house to go to work and failed to return at 6 p.m. as required. He then remained in the Albany area without approval and failed to notify Albany Police of his change of address as required under the sex offender registry laws, until March 7, 2022, when he was arrested at a fast food restaurant in Albany.
Following his release from prison, Frink will continue serving a 15-year term of supervised release.
This case was investigated by the United States Marshals Service and prosecuted by Assistant U.S. Attorney Benjamin S. Clark.
Scottsdale Man Convicted of Tax EvasionRead the Press Release
PHOENIX, Ariz. – Last week, Ryan C. Patterson, 34, of Scottsdale, Arizona, was found guilty by a federal jury on three counts of Tax Evasion. Sentencing is scheduled for December 5, 2022, before United States District Judge John J. Tuchi.
Patterson, a contractor specializing in remodels, failed to accurately report his income between calendar years 2014 and 2016. He received checks from customers made out to him personally and then deposited the checks into his personal checking accounts. He also received payments in cash from customers that he failed to report. At trial, the government introduced evidence that Patterson failed to report over $1.9 million in gross income and avoided paying a combined total of $700,000 in taxes due over the span of the three charged tax years.
The evidence at trial revealed that Patterson reported a loss of $38,000 in 2016 despite, in the same year, purchasing a primary residence for $445,000 along with other lavish expenditures.
"The American tax system provides government services critical to our residents," said U.S. Attorney Gary Restaino. "Every time someone cheats the tax system, the burden of providing vital services increases for taxpayers who pay their fair share. The jury’s verdict has sent a clear message that tax cheats will not be tolerated."
Internal Revenue Service - Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorneys Kevin M. Rapp and Aron Ketchel, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00724-PHX-JJT
RELEASE NUMBER: 2022-164_Patterson# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Russian Oligarch Oleg Vladimirovich Deripaska and Associates Indicted for Sanctions Evasion and Obstruction of JusticeRead the Press Release
The Justice Department announced today the unsealing of an indictment charging a U.S. citizen and three citizens of the Russian Federation with violating new U.S. sanctions imposed earlier this year in response to Russia’s unprovoked military invasion of Ukraine.
According to court documents, Oleg Vladimirovich Deripaska, aka Oleg Mukhamedshin, 52; and Natalia Mikhaylovna Bardakova, aka Natalya Mikhaylovna Bardakova, 45, both citizens of the Russian Federation (Russia), and Olga Shriki, 42, a New Jersey resident and naturalized U.S. citizen, are charged with conspiring to violate U.S. sanctions imposed on Deripaska and one of Deripaska’s corporate entities, Basic Element Limited (Basic Element). Shriki is further charged with obstruction of justice based on her alleged deletion of electronic records relating to her participation in Deripaska’s sanctions evasion scheme following receipt of a grand jury subpoena requiring the production of those records. Bardakova is charged with one count with making false statements to agents of the FBI. Additionally, Ekaterina Olegovna Voronina, aka Ekaterina Lobanova, 33, is charged with making false statements to agents of the U.S. Department of Homeland Security at the time of Voronina’s attempted entry into the United States for the purpose of giving birth to Deripaska’s child. Shriki was arrested this morning.
“In the wake of Russia’s unjust and unprovoked invasion of Ukraine, I promised the American people that the Justice Department would work to hold accountable those who break our laws and threaten our national security. Today’s charges demonstrate we are keeping that promise,” said Attorney General Merrick B. Garland. “The Justice Department will not stop working to identify, find, and bring to justice those who evade U.S. sanctions in order to enable the Russian regime.”
“As today’s charges reveal, while serving the Russian state and energy sector, Oleg Deripaska sought to circumvent U.S. sanctions through lies and deceit to cash in on and benefit from the American way of life,” said Deputy Attorney General Lisa O. Monaco. “But shell companies and webs of lies will not shield Deripaska and his cronies from American law enforcement, nor will they protect others who support the Putin regime. The Department of Justice remains dedicated to the global fight against those who aid and abet the Russian war machine.”
According to court documents, Deripaska, the owner and controller of Basic Element, a private investment and management company for Deripaska’s various business interests, was subjected to economic sanctions on April 6, 2018. On that day, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Deripaska as a Specially Designated National (SDN), in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to the national security and foreign policy of the United States (the OFAC Sanctions). In designating Deripaska, OFAC explained that Deripaska was sanctioned for having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation, as well as for operating in the energy sector of the Russian Federation economy.
“Today’s indictment reflects the FBI’s commitment to use all of the tools at our disposal to aggressively pursue those who attempt to evade the United States’ economic countermeasures against the Russian government,” said FBI Director Christopher Wray. “We will continue to aggressively prosecute those who violate measures imposed to protect the national security and foreign policy of the United States, especially in this time of Russia’s unprovoked aggression toward Ukraine.”
“The indictment unsealed today signals the United States’ ongoing support for the people of Ukraine in the face of continued Russian belligerence,” said U.S. Attorney Damian Williams for the Southern District of New York. “The enforcement of sanctions is a vital tool wielded by this Office and our law enforcement partners as we seek to deter Russian aggression, and today’s indictment should be taken as a warning that, try as they might, individuals violating these sanctions will be held accountable.”
Following his designation by OFAC, Deripaska conspired with others to evade and to violate those sanctions in various ways and over the course of several years. Deripaska, through the corporate entity Gracetown Inc., illegally utilized the U.S. financial system to maintain and retain three luxury properties in the United States (the U.S. Properties), and further employed Olga Shriki and Natalia Mikhaylovna Bardakova to utilize U.S. financial institutions to provide hundreds of thousands of dollars’ worth of services for his benefit in the United States. For example, in or about 2019, Shriki facilitated for Deripaska’s benefit the sale of a music studio in California for over $3 million. Deripaska had owned the studio through a series of corporate shell companies that obscured his actual ownership. Following the sale of the studio, Shriki attempted to expatriate over $3 million in proceeds through one such shell company, Ocean Studios California LLC, to a Russia-based account belonging to another Deripaska company.
Bardakova – largely based in Russia – directed Shriki to engage in particular illegal transactions on Deripaska’s behalf. These instructions included directing Shriki to obtain U.S. goods and technology for Deripaska. Moreover, between in or about May 2018 and in or about 2020, Bardakova instructed Shriki to purchase and send flower and gift deliveries on behalf of Deripaska to Deripaska’s social contacts in the United States and Canada. The deliveries included, among others, Easter gift deliveries to a U.S. television host, two flower deliveries to a then-former Canadian Parliament member, and two flower deliveries in 2020 to Voronina while she was in the United States in 2020 to give birth to Deripaska’s child.
Then, in or about 2020, Shriki and Bardakova helped Deripaska’s girlfriend, Voronina, travel from Russia to the United States, so she could give birth to Deripaska’s and Voronina’s child in the United States. Despite Deripaska’s ongoing support for the Russian regime, he funded hundreds of thousands of dollars of transactions so that his child would take advantage of the U.S. health care system and U.S. birthright citizenship. Despite Deripaska’s ongoing support for the Russian regime, Deripaska distrusted the safety of the Russian hospital system. As alleged, Shriki orchestrated the payment of approximately $300,000 worth of U.S. medical care, housing, childcare, and other logistics to support Voronina to give birth in the United States, which resulted in the child receiving U.S. citizenship. As part of this scheme, Deripaska counseled Voronina on obtaining a U.S. visa, including by telling her to be “careful” ahead of an interview by U.S. immigration authorities. Voronina thereafter applied for and obtained a U.S. visa for a purported 10-day tourism visit without disclosing her intent to travel and stay in the United States for approximately six months to give birth to Deripaska’s child. Following the birth, Shriki, Bardakova, and Voronina conspired to conceal the name of the child’s true father, Deripaska, going so far as to change, slightly, the spelling of the child’s last name.
Later, in or about 2022, Shriki and Bardakova attempted to facilitate Voronina’s return to the United States to give birth to Deripaska’s and Voronina’s second child. This second attempt included Bardakova and Voronina’s attempt to use false statements to conceal Deripaska’s funding and secure Voronina’s entry into the United States – an attempt that was thwarted, and Voronina was denied entry and returned immediately to Istanbul, through which she had flown from Russia to the United States.
Deripaska, Bardakova and Shriki, are charged with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison. Shriki is further charged in one count of destruction of records, which carries a maximum sentence of 20 years in prison. Bardakova and Voronina are each further charged with one count of making false statements to federal agents, which carries a maximum sentence of five years in prison. The indictment also provides notice of the United States’ intention to forfeit from Deripaska the proceeds of his offense, including the U.S. Properties and the proceeds from the sale of the music studio. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI New York Field Office and Counterintelligence Division are investigating the case, with valuable assistance provided by the Department of Homeland Security and the Justice Department’s National Security Division, Counterintelligence and Export Control Section.
Assistant U.S. Attorneys Anden Chow and Vladislav Vainberg are prosecuting the case.
The investigation was coordinated through the Justice Department’s Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export controls and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Announced by the Attorney General on March 2 and run out of the Office of the Deputy Attorney General, the task force will continue to leverage all of the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. government in response to Russian military aggression.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Russian Oligarch Oleg Vladimirovich Deripaska and Associates Indicted for Sanctions Evasion and Obstruction of JusticeRead 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 (“FBI”), announced today the unsealing of an Indictment charging OLEG VLADIMIROVICH DERIPASKA, a/k/a “Oleg Mukhamedshin,” and NATALIA MIKHAYLOVNA BARDAKOVA, a/k/a “Natalya Mikhaylovna Bardakova,” citizens of the Russian Federation (“Russia”), and OLGA SHRIKI, a New Jersey resident and naturalized U.S. Citizen, with conspiring to violate United States sanctions imposed on DERIPASKA and one of DERIPASKA’s corporate entities, “Basic Element.” SHRIKI is further charged with obstruction of justice based on her deletion of electronic records relating to her participation in DERIPASKA’s sanctions evasion scheme following receipt of a Grand Jury subpoena requiring the production of those records. BARDAKOVA and is charged in one count with making false statements to agents of the Federal Bureau of Investigation. Additionally, EKATERINA OLEGOVNA VORONINA, a/k/a “Ekaterina Lobanova,” is also charged with making false statements to agents of the Department of Homeland Security at the time of VORONINA’s attempted entry into the United States for the purpose of giving birth to DERIPASKA’s child. SHRIKI was arrested this morning.
U.S. Attorney Damian Williams said: “The indictment unsealed today signals the United States’ ongoing support for the people of Ukraine in the face of continued Russian belligerence. The enforcement of sanctions is a vital tool wielded by this Office and our law enforcement partners as we seek to deter Russian aggression, and today’s indictment should be taken as a warning that, try as they might, individuals violating these sanctions will be held accountable.”
Andrew C. Adams, Director of Task Force KleptoCapture said: “Despite his cozy ties with the Kremlin and his vast wealth acquired through ties to a corrupt regime, Deripaska did all he could to lead a life in a stable, free, democratic society – even if that meant lying and evading U.S. sanctions. The hypocrisy in seeking comfort and citizenship in the United States, while enjoying the fruits of a ruthless, anti-democratic regime, is striking. That Deripaska practiced that hypocrisy through lies and criminal sanctions evasion has made him a fugitive from the country he so desperately wished to exploit.”
FBI Assistant Director Michael J. Driscoll said: “Russian oligarch, Oleg Deripaska, was sanctioned in April 2018 as part of the U.S. response to the Russian Government’s engagement in worldwide malign activity and its annexation of Crimea, Ukraine. Since that time, Deripaska has continued to circumvent those sanctions through an international network of enablers and facilitators. We will not idly standby while Russian oligarchs brazenly subvert our laws and simultaneously seek benefit from U.S. goods and services for themselves and their families. Today’s actions demonstrate the FBI’s commitment to protecting U.S. national interests through the identification and disruption of Kremlin-linked oligarchs’ criminal networks.”
According to the allegations contained in the Indictment unsealed today in Manhattan federal court:[1]
DERIPASKA, the owner and controller of Basic Element Limited (“Basic Element”), a private investment and management company for DERIPASKA’s various business interests, was subjected to economic sanctions on April 6, 2018. On that day, the United States Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) designated DERIPASKA as a Specially Designated National (“SDN”) in connection with its finding that the actions of the Government of the Russian Federation with respect to Ukraine constitute an unusual and extraordinary threat to the national security and foreign policy of the United States (the “OFAC Sanctions”). In so designating DERIPASKA, OFAC explained that DERIPASKA was sanctioned for having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation, as well as for operating in the energy sector of the Russian Federation economy.
Following his designation by OFAC, DERIPASKA conspired with others to evade and to violate those sanctions in various ways and over the course of several years. DERIPASKA, through the corporate entity “Gracetown Inc.,” illegally utilized the U.S. financial system to maintain and retain three luxury properties in the United States (the “U.S. Properties”) and further employed OLGA SHRIKI and NATALIA MIKHAYLOVNA BARDAKOVA to utilize U.S. financial institutions to provide hundreds of thousands of dollars’ worth of services for his benefit in the United States. For example, in or about 2019, SHRIKI facilitated for DERIPASKA’s benefit the sale of a music studio in California for over $3 million. DERIPASKA had owned the studio through a series of corporate shell companies that obscured his actual ownership. Following the sale of the studio, SHRIKI attempted to expatriate over $3 million in proceeds through one such shell company, “Ocean Studios California LLC,” to a Russia-based account belonging to another DERIPASKA company.
BARDAKOVA – largely based in Russia – directed SHRIKI to engage in particular illegal transactions on DERIPASKA’s behalf. These instructions included directing SHRIKI to obtain U.S. goods and technology for DERIPASKA. Moreover, between in or about May 2018 and in or about 2020, BARDAKOVA instructed SHRIKI to purchase and send flower and gift deliveries on behalf of DERIPASKA to DERIPASKA’s social contacts in the United States and Canada. The deliveries included, among others, Easter gift deliveries to a U.S. television host, two flower deliveries to a then-former Canadian Parliament member, and two flower deliveries in 2020 to VORONINA while she was in the United States in 2020 to give birth to DERIPASKA’s child.
Then, in or about 2020, SHRIKI and BARDAKOVA helped DERIPASKA’s girlfriend, VORONINA, travel from Russia to the United States so she could give birth to DERIPASKA’s and VORONINA’s child in the United States. Despite DERIPASKA’s ongoing support for the Russian regime, he funded hundreds of thousands of dollars of transactions so that his child could take advantage of the U.S. healthcare system and U.S. birthright. SHRIKI orchestrated the payment of approximately $300,000 worth of U.S. medical care, housing, childcare, and other logistics to aid VORONINA and DERIPASKA’s efforts to help VORONINA give birth in the United States, which resulted in the child receiving U.S. citizenship. DERIPASKA counseled VORONINA on obtaining a visa to travel to the United States, including by telling her to be “careful” ahead of an interview by U.S. immigration authorities. VORONINA thereafter applied for and obtained a U.S. visa for a purported ten-day tourism visit without disclosing her intent to travel and stay in the United States for approximately six months to give birth to DERIPASKA’s child. Following the birth, SHRIKI, BARDAKOVA, and VORONINA conspired to conceal the name of the child’s true father, DERIPASKA, going so far as to change, slightly, the spelling of the child’s last name.
Later, in or about 2022, at DERIPASKA’s further behest and for his further benefit, SHRIKI and BARDAKOVA attempted to facilitate VORONINA’s return to the United States to give birth to DERIPASKA’s and VORONINA’s second child. This second attempt included BARDAKOVA and VORONINA’s attempt to use false statements to conceal DERIPASKA’s funding and secure VORONINA’s entry into the United States – an attempt that was thwarted, and VORONINA was denied entry and returned immediately to Istanbul, through which she had flown from Russia to the United States.
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DERIPASKA, 52, and BARDAKOVA, 45, of Russia, and SHRIKI, 42, of New Jersey, are charged with one count of conspiring to violate and evade U.S. sanctions, in violation of the International Emergency Economic Powers Act, which carries a maximum sentence of 20 years in prison. SHRIKI is further charged in one count of destruction of records, which carries a maximum sentence of 20 years in prison. BARDAKOVA and VORONINA, 33, of Russia, are each further charged in one count of making false statements to federal agents, which carries a maximum sentence of five years in prison. The Indictment also provides notice of the United States’ intention to forfeit from DERIPASKA the proceeds of his offense, including the U.S. Properties and the proceeds from the sale of the music studio.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office, Counterintelligence Division and thanked the Department of Homeland Security and the Department of Justice’s National Security Division, Counterintelligence and Export Control Section for their assistance.
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
The case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Anden Chow and Vladislav Vainberg are in charge of the case.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Richmond Doctor to Pay Penalties for Allegedly Violating the Controlled Substances ActRead the Press Release
RICHMOND, Va. – A Richmond physician has agreed to pay $50,000 in civil penalties for allegedly issuing prescriptions in violation of the Controlled Substances Act.
The government alleged that, in 2019, Dr. Salman Akbar, 55, issued seven prescriptions for tramadol, a Schedule IV opioid, and lorazepam, a Schedule IV benzodiazepine, to an undercover Drug Enforcement Administration (DEA) Task Force Officer over the course of four visits to Akbar’s office. The government alleged that Akbar issued the prescriptions outside the usual course of professional practice in Virginia, and not for a legitimate medical purpose.
The Controlled Substances Act regulates individuals and companies that manufacture, distribute, and dispense controlled substances. The law aims to protect public health and safety from the dangers posed by highly addictive or dangerous controlled substances, including the diversion or improper use of such substances, while also ensuring that patients have access to pharmaceutical controlled substances for legitimate medical purposes.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia and the DEA’s Washington Division- Richmond District Office.
The matter was investigated by former Assistant U.S. Attorney Ilene Albala and Assistant U.S. Attorney Robert McIntosh. The civil claims settled by this agreement are allegations only; there has been no admission of civil liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER
Richfield Springs Man Pleads Guilty to Embezzling from Labor UnionRead the Press Release
SYRACUSE, NEW YORK – Jay Garnsey, 38, pleaded guilty yesterday to embezzling assets from a labor union, announced United States Attorney Carla B. Freedman and District Director Jonathan Russo of the Boston-Buffalo District Office for the United States Department of Labor, Office of Labor Management Standards (DOL-OLMS).
From about late 2015, until December 2019, Garnsey was employed by Remington Arms in Ilion, NY and the financial secretary of the union that represented its employees. As part of his guilty plea, Garnsey admitted that, while he was financial secretary, he embezzled money from the union by, among other things, submitting fraudulent reimbursement vouchers. Garnsey admitted embezzling over $38,000 in union funds.
Sentencing is scheduled for January 25, 2023, before District Judge David N. Hurd in Utica, New York, at which time Garnsey faces a maximum sentence of up to five years in prison, a fine of up to $250,000, and a post-imprisonment term of supervised release of up to three years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Garnsey also agreed to pay to the union $38,172.76 in restitution.
This case was investigated by the DOL-OLMS and the Ilion Police Department. The case is being prosecuted by Assistant United States Attorney Thomas Sutcliffe.
Registered Sex Offenders Sentenced for Possession of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 240 months in prison followed by a twenty-year term of supervised release, for possession of child pornography after a tip to the National Center for Missing and Exploited Children led to his arrest.
According to court documents, Kevin Richard Heidel, 38, who was a registered sex offender, was identified by investigators from the Davidson County Sheriff’s Office (DCSO) after a NCMEC tip revealed that an Instagram user in Davidson County was suspected of uploading images of suspected child pornography to the platform in 2019. In December 2019, DCSO investigators executed a search warrant at Heidel’s residence where they located a cell phone that contained child pornography. Further investigation revealed child pornography on another phone belonging to Heidel that was located in the front yard of one of Heidel’s neighbors.
Heidel is the third registered sex offender to be sentenced this month. On September 22, 2022, Christopher Lea Kahele, 40, of Moore County, was sentenced to 240 months imprisonment followed by 25 years of supervised release, for possession of child pornography. That same day, a Randolph County man, Luis Armando Diaz-Otero, 33, was sentenced to 150 months imprisonment followed by 20 years of supervised release after a tip from NCMEC regarding a Google account led to his arrest and conviction for possession of child pornography.
The Davidson County Sheriff’s Office, the North Carolina State Bureau of Investigation (NCSBI), the North Carolina Department of Public Safety Probation and Parole (NCDPS), and Homeland Security Investigation (HSI) assisted with the Heidel investigation. The Moore County Sheriff’s Office, the NCDPS, and the Federal Bureau of Investigation assisted with the Kahele investigation. The Randolph County Sheriff', the NCSBI, and HSI assisted in the Diaz-Otero investigation. All three cases were prosecuted by Assistant United States Attorney Kennedy Gates.
The cases were brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. www.projectsafechildhood.gov.
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Registered Sex Offender Sentenced to 15 Years in Prison for Solicitation of Child PornographyRead the Press Release
ST. LOUIS – U.S. District Judge Catherine D. Perry on Thursday sentenced a registered sex offender who tried to obtain nude photos of a 6-year-old girl to 15 years in prison.
On April 9, 2022, the Ste. Genevieve County Sheriff’s Office was notified that William C. Dickhans, 39, was using a borrowed cell phone for illegal activity. Dickhans told deputies that he’d met someone in a chat room who purportedly was the mother of a 6-year-old. In conversations on April 6 and April 7, Dickhans sent pictures of his genitals to the girl and requested pictures of her. Dickhans also admitted to deputies that he was using the chat room to try and find young children.
Dickhans pleaded guilty June 23 to a charge of solicitation of child pornography.
In 2005, Dickhans was sentenced to 70 months in prison after pleading guilty in U.S. District Court to receipt of child pornography, possession of child pornography and two counts of transportation of child pornography.
The FBI and Ste. Genevieve County Sheriff’s Office investigated this case. Assistant U.S. Attorney Carrie Costantin prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Portland Man Sentenced to 15 Years for Drug and Firearm Charges Following Fatal Overdose by Saco ResidentRead the Press Release
PORTLAND, Maine: A Portland man was sentenced today in U.S. District Court in Portland for drug trafficking and firearm offenses, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge George Z. Singal sentenced Hunter York, 23, to 15 years in prison followed by five years of supervised release. York was also ordered to forfeit four firearms and more than $15,000 in drug proceeds. He pleaded guilty on March 3, 2022.
According to court records, on January 31, 2020, York distributed cocaine and fentanyl to a Saco resident who fatally overdosed. Five days later, the Portland Police Department conducted a traffic stop of a vehicle driven by York and discovered MDMA, fentanyl and two firearms during a search of the vehicle. Two additional firearms and more than 800 grams of fentanyl were recovered during a search of York’s residence.
This was a joint investigation involving the Portland, Biddeford, and Saco police departments as well as the Maine Drug Enforcement Agency, U.S. Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Plainville Man Pleads Guilty to Child Exploitation OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Matthew B. Millhollin, Special Agent in Charge, Homeland Security Investigations (HSI), Boston, announced that KYLE FASOLD, 52, of Plainville, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to child exploitation offenses.
According to court documents and statements made in court, on March 6, 2020, after an investigation revealed that Fasold had uploaded images of child pornography to the dark web, HSI special agents, with the assistance of the Plainville Police Department and Connecticut State Police, executed a court-authorized search of Fasold’s residence and seized numerous electronic devices. Analysis of the seized devices revealed that between June 2017 and February 2020, Fasold surreptitiously recorded at least 29 minors, as well as several adults, by placing video-recording devices in locations where he knew minors would likely be partially or fully naked, including bathrooms in his residence, the girl’s locker room in Plainville High School, and the bathroom adjacent to the coach’s office in Plainville High School. Fasold edited the videos to produce approximately 391 images depicting lascivious exhibition of the victims’ genitals or pubic area, and uploaded numerous images to the dark web.
At time of the offense, Fasold was a parent volunteer for a youth recreational swim program in Plainville.
Fasold pleaded guilty to one count of production of child pornography, an offense that carries a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years, and one count of distribution of child pornography, an offense that carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
Judge Shea scheduled sentencing for December 22.
Fasold has been detained since his arrest on March 6, 2020.
This investigation has been conducted by Homeland Security Investigations (HSI), the Plainville Police Department and the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Philadelphia Man Sentenced to 15 Years in Prison for Sex Trafficking Two Teenage GirlsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Victor Clayton, 47, of Philadelphia, PA, was sentenced to 15 years in prison and 10 years of supervised release by United States District Judge R. Barclay Surrick, for sex trafficking of two minors across state lines.
In November 2022, the defendant pleaded guilty to two counts of sex trafficking of a minor, and one count of attempted sex trafficking of a minor. The charges arose from Clayton’s trafficking of a 16-year-old minor in at least four local hotels in Philadelphia in early 2018, after which he kept half of the proceeds paid to the minor by sex buyers. He then picked up that victim’s 15-year-old friend and drove both girls to Dunn, North Carolina, with the intention to cause them to engage in prostitution there. While in North Carolina, the defendant sexually assaulted the second minor, according to court papers.
“The crime that this defendant committed is one of the most devastating to victims that our Office prosecutes,” said U.S. Attorney Romero. “Clayton forced a young person, a minor child, to sell her body for his own greed and financial gain, attempted to do the same to her friend, and did, in fact, assault that girl himself. We will continue to work collectively to investigate these destructive crimes against some of the most vulnerable victims in our community.”
The case was investigated by the Federal Bureau of Investigation with assistance from the Dunn, North Carolina Police Department, and is being prosecuted by Assistant United States Attorneys Michelle Morgan and Amanda Reinitz.
Philadelphia Man Faces Federal Charges for Carjacking Mother and Daughter Outside Northeast Philadelphia Home Before SchoolRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Amir Harvey, 20, of Philadelphia, PA was arrested and charged by Criminal Complaint with carjacking and carrying a firearm during and in relation to a crime of violence, in connection with a carjacking incident which occurred in Northeast Philadelphia earlier this month.
As detailed in the Criminal Complaint, in the early morning hours of September 19, 2022, Philadelphia police officers respond to a report of a robbery in progress in the 8900 block of Maxwell Place, where the victim reported that her car had just been stolen by an armed individual as she and her teenage daughter were getting ready to leave to go to school. The victim stated that around 6:15 a.m., she started her vehicle using an application on her cell phone. A short time later, she and her daughter exited their house and walked to the car parked in the driveway in front of their home when they were approached by an armed individual, later identified as the defendant, who pointed a black handgun at their heads. The defendant allegedly took the keys to the vehicle out of the victim’s purse and sped away. The victim used the location tracking feature on her cell phone application and informed police, who responded to its location on the 2000 block of Griffith Street, about 2.5 miles from the victim’s residence. Using neighborhood video surveillance footage, investigators traced the movement of the victim’s vehicle and the defendant to a nearby apartment complex.
“Through the Philadelphia Carjacking Task Force, we are continuing to investigate, arrest and prosecute those responsible for the spate of carjackings we have seen in Philadelphia in recent months,” said U.S. Attorney Romero. “As alleged, this defendant threatened the lives of a mother and daughter going about their daily morning routine. Carjacking is not game or a fun pastime, it is a serious federal crime with severe consequences.”
“When the Carjacking Task Force was established several months ago, this is exactly the type of crime we set out to investigate,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “As the Indictment alleges, this is a seriously violent crime with the lives of innocent victims being threatened. ATF and our local, state, and federal partners will continue to collaborate and seek justice for the victims of violent gun crimes like this.”
“While we are grateful that this dangerous individual has been taken into custody, the increase in the number of carjackings seen across our city and nation continues to be disturbing,” said Philadelphia Police Department Commissioner Danielle Outlaw. “Victims of carjackings have been spread across all demographics, and just as alarmingly, the demographics of the offenders have also been the same. Law enforcement refuses to tolerate this criminal behavior; and the PPD, along with our fellow Task Force partners, will not stop until we bring each and every offender to justice.”
The swift action to investigate and federally charge these defendants is the result of the newly formed Philadelphia Carjacking Task Force, which is comprised of members of the U.S. Attorney’s Office Violent Crime Unit; the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Philadelphia Police Department. The goal of the Taskforce is to stem the wave of armed carjackings and violent crimes through investigative and enforcement techniques meant to identify and refer for federal prosecution all who terrorize innocent victims through commission of these offenses within Philadelphia and surrounding areas.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney Robert E. Eckert.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Oxford Junction Woman Sentenced on Federal Tax ChargeRead the Press Release
DAVENPORT, IA – An Oxford Junction woman, Penny Lane Witt, age 48, was sentenced on September 27, 2022, to 18 months in prison for tax evasion. Witt was also ordered to serve three years on supervised release and pay $75,849 in restitution to the Internal Revenue Service.
According to court documents, in 2015, Witt operated businesses under the names of Ultimate Tree Service and Spruces Tree Service. An employee of this business approached an individual in Iowa City about trimming some trees. After this initial project, in 2016 and 2017, Witt and other employees returned to this residence, and the same individual paid by check for multiple remodeling and landscaping projects. Witt did not keep business records, did not have a business or individual bank account, and conducted all business and payroll expenses in cash. Witt admitted that by receiving checks and cash payments from the individual, her affirmative acts of personally and willfully cashing these checks at the purported customer’s bank and not depositing any of these checks or cash in a bank account, she concealed any usual record of the gross income she received and evaded and attempted to evade the assessment of federal income tax. These payments included work not fully completed. In 2016 and 2017, Witt received approximately $469,000 in payments. Witt admitted that she knew her legal duty to file tax returns for these years, and willfully chose not to file.
“Ms. Witt took advantage of a vulnerable person and cheated them out of hundreds of thousands of dollars,” said Acting Special Agent in Charge Charles Miller, “IRS Criminal Investigation recognizes the presence of fraud targeting elder Americans, and we will continue to combat these crimes and hold the responsible parties accountable for their actions.”
U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The Internal Revenue Service-Criminal Investigations Division and the Iowa City Police Department investigated this case.
Oswego County Dentist Agrees to Pay $60,000 and Surrenders DEA Registration for Five Years Due to Office Staff’s Illegal Use of Electronic Prescription SystemRead the Press Release
SYRACUSE, NEW YORK – Dr. Omar Guesmia, of Phoenix, New York will pay $60,000 to resolve allegations that he, and his dentistry practice, “Gentle Dental Care,” violated the Controlled Substances Act by enabling an office staff member to use an electronic prescription system to obtain oxycodone for their own use.
The announcement was made by Carla B. Freedman, the United States Attorney for the Northern District of New York and Frank A. Tarentino III, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
Physicians generally send prescriptions to pharmacies using an electronic prescription system that can only be accessed using a password or other token, ensuring that only authorized persons transmit prescriptions to a pharmacy. Federal and New York State law prohibit practitioners from sharing their prescribing credentials with others and provide that physicians are responsible for all prescriptions written under their credentials. Dr. Guesmia gave his credentials to an office staff member, who transmitted oxycodone prescriptions to various pharmacies, then retrieved the prescriptions for their own illegitimate use. As part of the civil settlement, Dr. Guesmia admitted that he failed to monitor the prescriptions written using his credentials.
“The authority to prescribe controlled substances comes with great responsibility,” said United States Attorney Freedman. “I encourage all medical providers who have a prescription pad or credentials to safeguard access and vigilantly monitor their use through resources like New York State’s Prescription Monitoring Program, also known as I-STOP.”
“DEA Diversion teams focus on helping communities avoid overdoses and poisonings through regulation and investigation,” said DEA Special Agent in Charge Frank Tarentino. “This settlement is a reminder of how much harm a prescription pad can have when it is in the wrong hands. I commend the Northern District of New York, U.S. Attorney’s Office, the New York State Department of Health, Bureau of Narcotic Enforcement, as well as the DEA’s Albany Tactical Diversion Squad and NYC Tactical Diversion Squad for their diligent work throughout this investigation.”
Dr. Guesmia surrendered his DEA Registration, and as part of the civil settlement agreement, agreed not to seek a renewal for at least five years.
This case was jointly investigated by DEA New York Division’s Albany Tactical Diversion Squad, Intelligence Group, and New York City’s Diversion Group and the New York State Department of Health, Bureau of Narcotic Enforcement.
Assistant U.S. Attorney Christopher R. Moran handled this matter on behalf of the United States.
Onawa Man Sentenced to 8 Years in Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man involved with the distribution and manufacture of methamphetamine who was also in illegal possession of a shotgun was sentenced September 29, 2022, in federal court in Sioux City, to 8 years’ imprisonment.
Dustin Haynes, 38, from Onawa, Iowa, pled guilty on March 24, 2022, to possession with intent to distribute methamphetamine, manufacture and attempted manufacture of methamphetamine, and illegal possession of a firearm.
At the plea and sentencing hearings, evidence showed that Haynes was previously convicted of the following crimes punishable by imprisonment for a term exceeding one year: Burglary, Third Degree; Assault while Participating in a Felony; and Possession of a Controlled Substance – 3rd Offense. Evidence further showed that on September 1, 2021, law enforcement attempted a traffic stop of the vehicle Haynes was operating. Haynes attempted to flee from law enforcement agents by vehicle, then on foot, and during the pursuit, threw away three baggies of meth. Officers seized components of a methamphetamine lab from Haynes’ vehicle and a shotgun from the trunk of the vehicle. Law enforcement also seized two boxes of pseudoephedrine (used to make methamphetamine) and receipts showing the purchase of other pills within the last 30 days. Haynes admitted he intended to manufacture and distribute methamphetamine.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Haynes was sentenced to 96 months’ imprisonment and must serve a four-year term of supervised release following imprisonment. There is no parole in the federal system. Haynes remains in the custody of the United States Marshal until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Iowa DCI Laboratory, Monona County Sheriff’s Department, and Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4090.
Follow us on Twitter @USAO_NDIA.
North Versailles Man Pleads Guilty to Drugs and Gun Possession ChargesRead the Press Release
PITTSBURGH, PA – On September 28, 2022, a resident of North Versailles, Pennsylvania, pleaded guilty to charges of violating federal narcotics and firearm laws, United States Attorney Cindy K. Chung announced today.
Evan Smith, age 22, pled guilty to two counts before Senior United States District Judge Cercone.
In connection with the guilty plea, the court was advised that on or about April 8, 2021, Smith possessed with intent to distribute quantities of cocaine, MDA, and MDMA, and possessed a short-barreled shotgun that he failed to register with the National Firearms Registration and Transfer Record.
Senior United States District Judge Cercone scheduled sentencing for January 5, 2023 at 1:00 p.m. The law provides for a maximum total sentence of 20 years imprisonment, a fine of not more than $1,000,000, a term of supervised release of at least 3 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed was based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of Smith.
North Carolina Man Sentenced for Conspiracy to Defraud the United States and Attempts to Interfere with Administration of Internal Revenue LawsRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced today that a Burgaw, North Carolina, man convicted of Conspiracy to Defraud the United States and Attempts to Interfere with Administration of Internal Revenue Laws was sentenced on September 26, 2022, by U.S. District Judge Lawrence L. Piersol.
Randy L. Garriss, age 68, was sentenced to three years on Count one, and 12 months and a day on Count two, in federal prison, to be served concurrently. Garriss was also sentenced to three years of supervised release on Count one and one year of supervised release on Count two, also to be served concurrently. A special assessment to the Federal Crime Victims Fund was ordered in the amount of $200.
Garriss was indicted by a federal grand jury in July of 2017. A jury trial in June of 2022 convicted Garriss on both Counts.
The conviction stemmed from incidents beginning in April of 2004 when Theodore Nelson and his son, Steven Nelson, created over 25 sham trusts to hide their income and assets from the Internal Revenue Service (IRS), thus evading the assessment and payment of federal income taxes. The Nelsons used forms created by Garriss’ co-defendant Loren Brown. The trusts were designed, in part, to make it difficult for the IRS to determine the Nelsons’ federal income tax liability. The Nelsons appointed John Sheridan and Loren Brown as trustees and successor trustees for the trusts until Sheridan’s death in 2011. Garriss then took over after Sheridan passed away. In this manner, the Nelsons were able to put many layers between themselves and their assets/income. Garriss’ and Brown’s agreement to act as successor trustees helped the Nelsons hide their income and assets from the IRS.
The Nelsons reside in Letcher, South Dakota. Garriss and Brown acted as signors for South Dakota bank accounts associated with the Nelson trusts and performed most of their actions on behalf of the Nelsons’ tax evasion in South Dakota.
Among other acts, Garriss and Brown corruptly endeavored to obstruct and impede the due administration of the internal revenue laws by mailing to the IRS a Protest and Demand for Administrative Review on behalf of the Nelsons. Garriss signed on his own behalf and that of Brown as trustees for Steve Nelson and the Nelsons’ trusts. The letter was received by the IRS on January 5, 2016.
This case was investigated by the IRS Criminal Investigation. Assistant U.S. Attorney Ann M. Hoffman prosecuted the case.
Garriss has been allowed to self-report by October 17, 2022.
New York Doctor Who Performed Unnecessary Back Surgeries Pleads Guilty to Participating in Trip-And-Fall Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that SADY RIBEIRO, a New York-licensed pain management doctor and surgeon, pled guilty today to one count of conspiracy to commit mail fraud and one count of conspiracy to commit wire fraud in connection with a scheme to obtain fraudulent insurance reimbursements and other compensation from fraudulent trip-and-fall accidents. RIBEIRO is the second defendant to plead guilty in the case. ADRIAN ALEXANDER, the owner of a litigation funding company who was also involved in the trip-and-fall fraud scheme, previously pled guilty to one count of conspiracy to commit wire fraud on August 30, 2022. ALEXANDER and RIBEIRO both pled guilty before U.S. District Judge Sidney H. Stein.
U.S. Attorney Damian Williams said: “As alleged, Sady Ribeiro abused his professional license and position of trust by performing medically unnecessary surgeries to increase the value of fraudulent trip-and-fall lawsuits. In carrying out the scheme, Adrian Alexander, who funded many of the fraudulent lawsuits, Sady Ribeiro, and their co-conspirators preyed upon the most vulnerable members of society in order to enrich themselves. Ribeiro and Alexander now await sentencing for their reprehensible crimes.”
According to the Indictment, the Superseding Informations filed against RIBEIRO and ALEXANDER, other documents filed in this case, and statements made in court:
SADY RIBEIRO and ADRIAN ALEXANDER, among others, were involved in an extensive fraud scheme through which fraud scheme participants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents.
The fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the fraud scheme, scheme participants recruited more than 400 Patients. In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact, the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”
After the staged trip-and-fall accidents, Patients were referred to specific attorneys who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31,000,000.
The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including RIBEIRO. The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery. As an incentive to getting surgery, the recruited Patients were offered a payment of typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”). Patients generally were told to undergo two surgeries.
Doctors in the fraud scheme, including RIBEIRO, were expected to, and in fact did, conduct these surgeries regardless of the legitimate medical needs of the Patients. For example, RIBEIRO wrote an August 2015 email to ALEXANDER—the owner and operator of a litigation funding company that financed numerous Fraudulent Lawsuits—in which RIBEIRO described the services that he performed, stating, “I will play very honest ‘game’ with you . . . I see the patient and I generate a very good dictation that justifies the treatment-there is a cost for that and I hope a profit.” RIBEIRO performed back surgeries, among other medical procedures, on nearly 200 Patients. To maximize his patient base, RIBEIRO paid participants cash kickbacks in exchange for patient referrals.
Members of the fraud scheme often recruited individuals who were extremely poor as Patients—individuals desperate enough to submit to surgeries in exchange for the small Post-Surgery Payments. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes. Members of the fraud scheme also recruited Patients who were drug addicts. It was also common for scheme participants to recruit Patients from homeless shelters in New York City.
The Patients’ legal and medical fees were usually paid for by litigation funding companies (the “Funding Companies”), including one Funding Company that, as noted above, was owned and operated by ALEXANDER. Funding Companies were used even if the Patient maintained medical coverage through an insurance company or a government-subsidized program. The Funding Companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement. In exchange for funding Patients’ medical and legal costs, the Funding Companies charged the Patients high interest rates, sometimes up to 50% on medical loans and up to 100% on personal loans. The interest rates were so high that oftentimes the majority (if not all) of the proceeds that were awarded in the Fraudulent Lawsuits were paid to the Funding Companies, lawyers, doctors, and others, with the Patients receiving a much smaller percentage of the remaining recovery.
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RIBEIRO, 72, of New York, New York, pled guilty to one count of conspiracy to commit mail fraud, which carries a maximum sentence of five years in prison; and one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. As part of his plea agreement, RIBEIRO agreed to forfeit $513,005 to the United States and to make restitution in the amount of $3,928,133.
ALEXANDER, 77, of New York, New York, previously pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of five years in prison. As part of his plea agreement, ALEXANDER agreed to forfeit $659,001 to the United States and to make restitution in the amount of $3,928,133.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
RIBEIRO is scheduled to be sentenced on January 5, 2023. ALEXANDER is scheduled to be sentenced on November 30, 2022. Both defendants will be sentenced by U.S. District Judge Sidney H. Stein.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicholas Chiuchiolo, Nicholas Folly, Danielle Kudla, and Alexandra Rothman are in charge of the prosecution.
Multiple U.S. Postal Service Employees and Others Arrested for $1.3 Million Fraud and Identity Theft SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Daniel B. Brubaker, Inspector-in-Charge, New York Division of the United States Postal Inspection Service (“USPIS”), and Matthew Modafferi, Special Agent-in-Charge of the Northeast Area Field Office of the United States Postal Service, Office of Inspector General (“USPS-OIG”), announced today the unsealing of an indictment charging JOHNNY DAMUS, a/k/a “Ace,” RASHAAN RICHARDS, a/k/a “Jay Dee,” a/k/a “JD,” a/k/a “Payso,” DEVON RICHARDS, a/k/a “Dev,” CONRAD HERON, a/k/a “Conny Cash,” LOUIS JEUNE VERLY, a/k/a “Luis Jesus Virola,” KAREEM SHEPHERD, a/k/a “Reem,” a/k/a “Marcus Ford,” a/k/a “Frank James,” FABIOLA MOMPOINT, a/k/a “Lady Fab,” NATHANAEL FOUCAULT, and JOHNATHAN PERSAUD, a/k/a “Junzie-J,” in connection with their theft and unauthorized use of credit cards to defraud several national financial institutions, credit card companies, and major retailers, resulting in more than $1.3 million in intended losses as well as the theft of hundreds of identities. As alleged, the defendants conspired to steal credit cards from the mail; use those stolen credit cards at a variety of stores, including high-end retailers; and sell some of the merchandise purchased with the stolen cards on the website LuxurySnob.com (“LuxurySnob”).
NATHANAEL FOUCAULT and JOHNATHAN PERSAUD, U.S. Postal Employees, were arrested today in the Eastern District of New York and will be presented before Judge James L. Cott.
FABIOLA MOMPOINT, a U.S. Postal Employee, was arrested today in the District of New Jersey and will be presented before Judge James L. Cott.
DEVON RICHARDS was arrested today in the Eastern District of New York and will be presented before Judge James L. Cott.
The remaining defendants are at large.
U.S. Attorney Damian Williams said: “As alleged, the defendants engaged in a years-long scheme to manipulate credit card companies and major retailers across New York and New Jersey by stealing credit cards and using those cards to purchase, and subsequently sell, luxury goods. The defendants took advantage of the public trust we place in U.S. Postal Service employees for their own financial gain. Thanks to the diligence of USPIS, the NYPD, and USPS-OIG, the defendants will now be held accountable for their brazen criminal conduct.”
USPIS Inspector-in-Charge Daniel B. Brubaker said: “These nine defendants, three of which are postal employees, sought to enrich themselves by stealing mail directly from hundreds of postal customers. They further compounded their crimes by committing identity theft against those customers to facilitate their elaborate scheme to defraud several national financial institutions. Make no mistake, the Postal Inspection Service will not allow thieves, no matter who they are, to use the U.S. Mail to harm postal customers or the financial institutions that serve them. We are pleased the members of this criminal syndicate have been apprehended and their crime spree brought to an abrupt end.”
USPS-OIG Special Agent-in-Charge Matthew Modafferi said: “The Special Agents of the U.S. Postal Service Office of Inspector General will continue to maintain the integrity of the U.S. Postal Service and its personnel. The conduct alleged is disgraceful, and our office will continue to vigorously investigate postal service employees and their co-conspirators who violate the public’s trust. The USPS OIG is thankful for the relationships with our law enforcement partners and the Department of Justice for their dedication and efforts in this investigation.”
According to the allegations in the Indictment:[1]
Between in or around December 2018, up to and including the present, members of the conspiracy worked with U.S. Postal Service mail carriers, including, among others, FABIOLA MOMPOINT, NATHANAEL FOUCAULT, and JOHNATHAN PERSAUD to steal credit cards from the mail stream before those cards were delivered to the assigned credit card customers. After obtaining the stolen credit cards, members of the conspiracy activated the cards using stolen personally identifiable information (“PII”) of the intended recipients. Members of the conspiracy, including RASHAAN RICHARDS, DEVON RICHARDS, CONRAD HERON, LOUIS JEUNE VERLY, and KAREEM SHEPHERD (collectively, “the Shoppers”), and others known and unknown, then used the stolen cards to purchase luxury goods—including items manufactured by, among others, Chanel, Fendi, Hermes, and Dior—from high-end retailers, including major department stores in, among other places, Manhattan, Brooklyn, and New Jersey. Often, JOHNNY DAMUS, instructed the Shoppers to purchase particular luxury items in specific quantities. Working together with a close associate (“CC-1”), DAMUS functionally operated LuxurySnob.com, on which many of these fraudulently obtained luxury items were sold. LuxurySnob purports to be an “online consignment and personal shopping company” specializing in “pre-owned luxury items,” but, in fact, many of the items it sells were purchased using stolen credit cards.
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Charts containing the names, charges, and maximum penalties for the defendants are set forth below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the USPIS, USPS-OIG, and the NYPD.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Ashley C. Nicolas and Madison Reddick Smyser are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
DEFENDANTS
MAX. TERM OF IMPRISONMENT
Count One: Conspiracy to Commit Access Device Fraud
(18 U.S.C. § 1029(b)(2))
JOHNNY DAMUS
RASHAAN RICHARDS
DEVON RICHARDS
CONRAD HERON
LOUIS JEUNE VERLY
KAREEM SHEPHERD
FABIOLA MOMPOINT
NATHANAEL FOUCAULT
JOHNATHAN PERSAUD
Seven and a half years in prison
Count Two: Access Device Fraud
(18 U.S.C. § 1029(a)(5), (c)(1)(a)(ii) and 2)
JOHNNY DAMUS
RASHAAN RICHARDS
DEVON RICHARDS
CONRAD HERON
LOUIS JEUNE VERLY
KAREEM SHEPHERD
FABIOLA MOMPOINT
NATHANAEL FOUCAULT
JOHNATHAN PERSAUD
15 years in prison
Count Three: Conspiracy to Commit Bank Fraud
(18 U.S.C. § 1349)
JOHNNY DAMUS
RASHAAN RICHARDS
DEVON RICHARDS
CONRAD HERON
LOUIS JEUNE VERLY
KAREEM SHEPHERD
30 years in prison
Count Four: Aggravated Identity Theft
(18 U.S.C. § 1028A)
JOHNNY DAMUS
RASHAAN RICHARDS
DEVON RICHARDS
CONRAD HERON
LOUIS JEUNE VERLY
KAREEM SHEPHERD
FABIOLA MOMPOINT
NATHANAEL FOUCAULT
JOHNATHAN PERSAUD
Mandatory minimum sentence of two years in prison
Count Five: Conspiracy to Steal Mail by U.S. Postal Employees
(18 U.S.C. § 1709)
RASHAAN RICHARDS
DEVON RICHARDS
KAREEM SHEPHERD
FABIOLA MOMPOINT
NATHANAEL FOUCAULT
JOHNATHAN PERSAUD
Five years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Monroe County Man Charged with Enticing A MinorRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 26, 2022, Matthew Robinson, age 29, of East Stroudsburg, Pennsylvania, was charged in a criminal information with attempting to entice a minor.
According to United States Attorney Gerard M. Karam, the information alleges that Robinson attempted to entice an individual under the age of 18 to engage in sexual intercourse, between July 16, 2022 and August 2, 2022.
The case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Phillip J. Caraballo is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc.
The penalty under federal law is a minimum of 10 years and maximum life term of imprisonment, 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.
Criminal informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Minnesota Man Sentenced to 30 Years for Drug ConspiracyRead the Press Release
SIOUX FALLS - United States Attorney Alison J. Ramsdell announced that a Marshall, Minnesota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on September 26, 2022, by U.S. District Judge Charles B. Kornmann.
Jeremy Allan Anspach, age 46, was sentenced to 30 years in federal prison, followed by life on supervised release. He was also ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Anspach was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury in September of 2021. He pleaded guilty on June 27, 2022.
Anspach knowingly and intentionally combined, conspired, confederated, and agreed together, with others, to knowingly and intentionally distribute 500 grams or more of a mixture and substance containing methamphetamine in the state of South Dakota and elsewhere. During his involvement in this conspiracy, he assisted in the transportation of multiple pounds of methamphetamine from Arizona, California, and other states, into South Dakota. Anspach sold multiple of ounces of methamphetamine to undercover agents during this investigation.
This case was investigated by the FBI, South Dakota Division of Criminal Investigation, Minnesota Bureau of Criminal Apprehension, and the Brown-Lyon-Redwood-Renville Drug Task Force. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Anspach was immediately remanded to the custody of the U.S. Marshals Service.
Michael Rodriguez Cepeda Sentenced to 108 Months in Federal Prison for Attempted Possession of Methamphetamine with Intent to DistributeRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Michael Rodriguez Cepeda, age 50, from Guam, was sentenced in the United States District Court of Guam to 108 months imprisonment for Attempted Possession of Methamphetamine with Intent to Distribute, in violation of 21 U.S.C. §§ 846 and 841(a)(1). The Court also ordered five years of supervised release following imprisonment. In addition, the Court restated Cepeda’s mandatory obligation to register with the sex offender registration agency in the state/territory that he will take up residency or work. Cepeda’s duty to register was the result of a 1990 conviction for First Degree Criminal Sexual Conduct in the Superior Court of Guam. The district court also imposed a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On August 4, 2021, Michael Rodriguez Cepeda attempted to receive a mail parcel that contained approximately 1,365 gross grams of methamphetamine. Law enforcement tracked Cepeda as he left an area of cluster mailboxes directly across from the Yona Mayor’s Office in Yona, Guam. Cepeda opened the package and then attempted to evade law enforcement. Following his arrest, Cepeda admitted that he was paid $4,000 for receiving each package of drugs. He also disclosed that this was the third package received.
“This case involved yet another attempt to use postal cluster boxes to facilitate drug trafficking,” stated United States Attorney Anderson. “The penalties clearly outweigh the personal gain to those engaging in this criminal activity. We will continue our enforcement efforts to send this message to drug traffickers and hold them accountable.”
“Methamphetamine is a dangerous drug that is appearing with alarming frequency in the islands,” said John. F. Tobon, Special Agent in Charge, HSI Honolulu. “We continue to collaborate with our law enforcement partners to investigate and prosecute dealers so offenders like Cepeda are brought to justice.”
"In Guam and across the country, Postal Inspectors are committed to identifying and arresting drug traffickers to keep controlled substances out of the U.S. Mail" said Kevin Rho, Acting Inspector in Charge, USPIS, San Francisco Division. "I would like to thank our law enforcement partners for their continuing dedication and teamwork."
This investigation was conducted by the Homeland Security Investigations and the United Postal Inspection Service. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Mexican resident convicted for trafficking firearms under new lawRead the Press Release
LAREDO, Texas – A 25-year-old U.S. citizen residing in Mexico has pleaded guilty to trafficking handguns into Mexico under the Stop Illegal Trafficking in Firearms Act, announced U.S. Attorney Jennifer B. Lowery.
Said Isaac Hernandez admitted to one count of trafficking firearms and is the first person believed to be convicted under the new law.
The Stop Illegal Trafficking in Firearms Act is part of the broader Safer Communities Act, passed June 25.
On July 11, authorities apprehended Hernandez while he was traveling south on U.S. Interstate 35 towards the port of entry in Laredo. At the time of his arrest, they discovered 17 firearms hidden in his car.
Hernandez had been the subject of an investigation related to the purchasing of a large number of firearms and transporting them to Mexico. Between Jan. 21, 2020, and July 11, Hernandez purchased a total of 231 handguns in calibers of 9mm, .380 and .22.
U.S. District Judge Marina Garcia Marmolejo accepted the plea and will set sentencing at a later date. At that time, Hernandez faces up to 15 years in federal prison. He has been and will remain in custody pending that hearing.
The Bureau of Alcohol Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Michael Makens is prosecuting the case.
Methamphetamine Trafficker Is Sentenced to 13+ Years in PrisonRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Michael Wayne Noblitt, 43, of Marion, N.C., to 160 months in prison followed by five years of supervised release for trafficking methamphetamine, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
According to court documents and today’s court proceedings, in November 2019, an individual contacted law enforcement to report that Noblitt was trafficking methamphetamine in Rutherford County. Over the course of the investigation into Noblitt’s drug trafficking activities, law enforcement learned that Noblitt was also responsible for shooting at a dwelling, which Noblitt admitted to during a telephone conversation with the individual who reported him to law enforcement. According to court records, on November 25, 2019, law enforcement arrested Noblitt on outstanding warrants. At the time of his arrest, law enforcement seized from Noblitt more than 70 grams of methamphetamine and a Ruger .380 caliber pistol.
On June 6, 2022, Noblitt pleaded guilty to possession with intent to distribute methamphetamine. He is currently in custody and will be transferred to the custody of the Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, the Rutherford County Sheriff’s Office, and the Rutherfordton Police Department for their investigation of the case.
Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Memphis Man Pleads Guilty to Trafficking 17-Year-Old Female into the New Orleans Area to Perform Commercial Sex ActsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that DOMINIQUE PEEPLES, age 25, from Memphis, Tennessee, pleaded guilty on September 28, 2022 to Sex Trafficking of a Minor, in violation of Title 18, United States Code, Sections 1591(a)(1), 1591(b)(2), 1594(a), and 2.
According to court documents, PEEPLES brought a seventeen-year-old female (“Minor Victim”) from Memphis to New Orleans for the purpose of her engaging in commercial sex acts beginning at a time not known and continuing until in or about mid-January 2021. During this time, PEEPLES was aware of Minor Victim’s age. PEEPLES advertised Minor Victim on websites commonly used to advertise sexual services in exchange for money.
In pleading guilty, PEEPLES faces a mandatory minimum sentence of ten (10) years imprisonment up to a maximum sentence of life imprisonment. The defendant also faces supervised release for a term of five years up to life, a up to $250,000 fine, a requirement that the defendant participate in the sex offender registration and notification program, and a mandatory $100.00 special assessment fee. The Honorable Sarah S. Vance set sentencing in this matter for January 18, 2023 at 10:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, the New Orleans Police Department, and the Memphis Police Department in investigating this matter. Assistant United States Attorneys Maria Carboni and Jordan Ginsberg, Supervisor of the Public Corruption Unit, are in charge of the prosecution.
Melbourne man sentenced to 20 years in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DES MOINES, Iowa – Martin Leon Morales, age 40 of Melboure, was sentenced on Friday, September 23, 2022, to 240 months in prison following his guilty plea to Conspiracy to Distribute 50 grams or more of Methamphetamine.
According to court documents, Leon Morales was under investigation for drug distribution. Investigators from the Mid-Iowa Drug Task Force had information that Leon Morales was traveling to and from California. On June 7, 2020, Leon Morales’ vehicle was stopped by officers with the Cass County Sheriff’s Office. During a search of Leon Morales’ vehicle, approximately 24 pounds of methamphetamine was found. Leon Morales admitted he intended to distribute the methamphetamine.
In January 2022, co-defendant Aimee Kathleen Smith, age 32 of Marshalltown, was sentenced to 120-month in prison following her guilty plea to Conspiracy to Distribute 50 grams or more of Methamphetamine.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Mid-Iowa Drug Task Force, Tri-County Drug Task Force, Iowa Division of Narcotics Enforcement, and Cass County Sheriff’s Office investigated the case.
Man Extradited from Germany Appears in Federal Court on Charge of International Parental KidnappingRead the Press Release
HUNTSVILLE, Ala. – A former Madison County resident charged with international parental kidnapping was arraigned today in federal court, announced U.S. Attorney Prim F. Escalona and FBI Acting Special Agent in Charge Felix Rivera-Esparra.
Igor Slobodskyi, 51, a non-U.S. Citizen, formerly of Huntsville, was extradited from Germany to the United States to answer federal charges of international parental kidnapping. U.S. Magistrate Judge Herman N. Johnson, Jr. arraigned Slobodskyi on a one-count indictment charging him with removing two children under the age of 16 years old from the United States and retaining those children outside the United States with the intent to obstruct the lawful exercise of another’s parental rights.
The maximum penalty for international parental kidnapping is three years in prison and a maximum fine of $250,000.
The FBI investigated the case, along with the Huntsville Police Department. Assistant U.S. Attorney R. Leann White is prosecuting the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Germany to secure the arrest and extradition of Slobodskyi to the United States.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Man Charged in Federal Court with Chicago CarjackingRead the Press Release
CHICAGO — A federal grand jury has indicted a man on carjacking and firearm charges for allegedly violently stealing a vehicle from a woman in Chicago earlier this year.
MONTE HANDLEY, 18, of Chicago, stole a Nissan Sentra on Jan. 17, 2022, according to an indictment returned in U.S. District Court in Chicago. The carjacking allegedly occurred in the 5000 block of South Kolin Avenue in the Archer Heights neighborhood on Chicago’s Southwest Side. In addition to the driver, another woman and a one-year-old child were passengers in the vehicle at the time of the alleged carjacking.
The indictment charges Handley with carjacking and using, carrying, and brandishing a firearm during a crime of violence. The carjacking count is punishable by up to 15 years in federal prison. The firearm count carries a minimum prison term of seven years and a maximum of life, which must be served consecutively to any sentence imposed for the alleged carjacking.
Handley is currently in law enforcement custody. Arraignment in federal court is set for Oct. 5, 2022, at 1:30 p.m. before U.S. Magistrate Judge Sunil R. Harjani.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. The Illinois State Police provided valuable assistance in the investigation. The government is represented by Assistant U.S. Attorneys Emily Vermylen and Prashant Kolluri.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Major in the United States Army and a Maryland Doctor Facing Federal Indictment for Allegedly Providing Confidential Health Information to a Purported Russian Representative to Assist Russia Related to the Conflict in UkraineRead the Press Release
UPDATE
All charges against the defendants in this case, Anna Gabrielian and Jamie Lee Henry, were dismissed with prejudice on May 22, 2024, following the Court’s granting of the defendants’ motion to dismiss on Speedy Trial Act grounds.
Baltimore, Maryland – A federal grand jury has returned an indictment charging Anna Gabrielian, age 36, and her husband, Jamie Lee Henry, age 39, both of Rockville, Maryland, with conspiracy and for the disclosure of individually identifiable health information (“IIHI”), related to their efforts to assist Russia in connection with the conflict in Ukraine. The indictment was returned on September 28, 2022 and unsealed today upon the arrest of the defendants.
Gabrielian is scheduled to have initial appearance at 11:30 a.m. today, in U.S. District Court in Baltimore before U.S. Magistrate Judge Brendan A. Hurson. Henry is also expected to have an initial appearance today, although a time has not yet been set.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
As stated in the indictment, Gabrielian is an anesthesiologist and worked at Medical Institution 1, located in Baltimore, Maryland. Henry, a Major in the United States Army, who held a Secret-level security clearance, is Gabrielian’s husband and a doctor. During the time of the alleged conspiracy, Henry worked as a staff internist stationed at Fort Bragg, the home of the Army’s XVIII Airborne Corps, headquarters of the United States Army Special Operations Command, and the Womack Army Medical Center.
According to the eight-count indictment, Gabrielian and Henry conspired to cause harm to the United States by providing confidential health information of Americans associated with the United States government and military to Russia. Specifically, the indictment alleges that beginning on August 17, 2022, Gabrielian and Henry conspired to provide IIHI related to patients at Medical Institution 1 and at Fort Bragg to an individual they believed to be working for the Russian government in order to demonstrate the level of Gabrielian’s and Henry’s access to IIHI of Americans; their willingness to provide IIHI to the Russian government; and the potential for the Russian government to gain insights into the medical conditions of individuals associated with the United States government and military in order to exploit this information.
Gabrielian and Henry met with an individual they believed to be associated with the Russian government, but who was, in fact, a Federal Bureau of Investigation Undercover Agent (“UC”), in order to convey to the UC their commitment to aid Russia, and to discuss ways in which they could help the Russian government. Gabrielian told the UC that she had previously reached out to the Russian embassy by email and phone, offering Russia her and her husband’s assistance. Gabrielian told the UC that, although Henry knew of Gabrielian’s interaction with the Russian Embassy, she never mentioned Henry’s name to the Russian Embassy. Gabrielian wanted to make sure Henry could deny any knowledge of her actions. On August 17, 2022, Gabrielian met with the UC at a hotel in Baltimore. During that meeting, Gabrielian told the UC she was motivated by patriotism toward Russia to provide any assistance she could to Russia, even if it meant being fired or going to jail. Gabrielian proposed potential cover stories for meeting the UC and stressed the need for “plausible deniability” in the event she was confronted by American authorities about meeting with the UC. Gabrielian also told the UC that, as a military officer, Henry was currently a more important source for Russia than she was, because he had more helpful information, including how the United States military establishes an army hospital in war conditions and information about previous training provided by the United States military to Ukrainian military personnel. Gabrielian arranged to meet with the UC and Henry later that evening.
At about 8:10 p.m. that evening, the indictment alleges that Gabrielian and Henry met with the UC in the UC’s hotel room. During the meeting, Henry explained to the UC he was committed to assisting Russia and had looked into volunteering to join the Russian Army after the conflict in Ukraine began, but Russia wanted people with “combat experience” and he did not have any. Henry further stated, “the way I am viewing what is going on in Ukraine now, is that the United States is using Ukrainians as a proxy for their own hatred toward Russia.” Henry and Gabrielian allegedly offered to provide the UC with private medical records from the United States Army and Medical Institution 1 in order to help the Russian government. During the same meeting, Gabrielian demanded that if she were put at significant risk of arrest, she wanted her and Henry’s children to, “have a nice flight to Turkey to go on vacation because I don’t want to end in jail here with my kids being hostages over my head.” Henry also indicated that he was concerned about passing a background check for his security clearance, telling the UC, “I don’t want to know your name . . . because I want plausible deniability too. In a security clearance situation they want to know names and people and all this stuff.”
As detailed in the indictment, a few days later Gabrielian and the UC again met at the hotel in Baltimore to discuss providing Army medical records to the UC. Gabrielian told the UC that Henry was concerned about violating HIPAA, but Gabrielian had no such concerns. Gabrielian stated that she would check with Henry about providing medical records from Fort Bragg patients and get back in touch. The next day, Gabrielian sent a text to the UC, using coded language, to advise that Henry would provide Army medical records to the UC. On August 31, 2022, Gabrielian and Henry allegedly met the UC at a hotel room in Gaithersburg, Maryland. According to the indictment, Gabrielian provided the UC with IIHI related to two individuals, including the spouse of an employee of the Office of Naval Intelligence, whom Gabrielian pointed out had a medical condition Russia could “exploit.” Henry also allegedly provided IIHI related to five individuals who were military veterans or related to military veterans.
If convicted, the defendants face a maximum sentence of five years in federal prison for the conspiracy, and a maximum of 10 years in federal prison for each count of disclosing IIHI. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation and thanked the U.S. Army Counterintelligence for its collaboration Mr. Barron thanked Assistant U.S. Attorney Aaron S.J. Zelinsky, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, and its efforts to protect national security, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/anti-terrorism.
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Louisiana Man Pleads Guilty to Kidnapping a Gay Man as Part of Scheme to Kidnap and Murder Grindr UsersRead the Press Release
Chance Seneca, 21, of Lafayette, Louisiana, pleaded guilty today before U.S. District Judge Robert Summerhays to one count of kidnapping.
According to his plea agreement, Seneca admitted that on June 20, 2020, he used Grindr, a dating application for gay and bisexual men, to kidnap and attempt to murder H.W., a gay man. Specifically, Seneca acknowledged that he used Grindr to propose a meeting with H.W., and that he drove H.W. to an isolated house, took out a handgun and told him to put on handcuffs. Seneca then attempted to murder and dismember H.W. Seneca acknowledged that he intended to murder and dismember H.W. for the purpose of satisfying his homicidal urges, and that he had planned to continue murdering until he was caught or killed.
“The actions and intentions of the defendant in this case were shocking,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The internet should be accessible and safe for all Americans, regardless of their gender or sexual orientation. The Justice Department will continue to identify and hold accountable anyone who uses online spaces as a means to terrorize or abuse others.”
“The facts surrounding the events that took place in this case are very disturbing,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “It is nothing short of miraculous that the victims who endured the vicious attacks from this defendant survived. We will continue to fight to seek justice for victims who suffer at the hands of defendants such as this.”
The statutory maximum for the kidnapping offense is life imprisonment. Seneca faces additional exposure under the U.S. Sentencing Guidelines if the sentencing court finds beyond a reasonable doubt that he intentionally selected the victim because of the victim’s actual or perceived gender or sexual orientation. Sentencing is scheduled for Jan. 25, 2023.
Assistant Attorney General Clarke, U.S. Attorney Brown and Special Agent in Charge Douglas A. Williams Jr. for the FBI New Orleans Field Office made the announcement.
The FBI and the Lafayette Police Department conducted the investigation. This case is being prosecuted by Deputy Criminal Chief Myers Namie of the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division.
Lebanon Man Sentenced to 90 Months’ Imprisonment for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jorge Roque, Jr., age 35, of Lebanon, Pennsylvania, was sentenced on September 27, 2022, to 90 months’ imprisonment to be followed by three years of supervised release by United States District Court Judge Jennifer P. Wilson for drug trafficking and possession of a firearm during and in furtherance of drug trafficking.
According to United States Attorney Gerard M. Karam, Roque was arrested in Lebanon, Pennsylvania in December 2021, in connection with a shooting investigation. At the time of his arrest, Roque was found in possession of methamphetamine, drug-trafficking paraphernalia, a loaded 9-millimeter handgun, and an additional loaded magazine. Roque pleaded guilty to the charges underlying the sentence imposed by Judge Wilson.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Christian Haugsby prosecuted the case.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles:
fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Lafayette Man Pleads Guilty to Kidnapping a Gay Man as Part of Scheme to Kidnap and Murder Grindr UsersRead the Press Release
LAFAYETTE, La. – Chance Seneca, 21, of Lafayette, Louisiana, pleaded guilty today before U.S. District Judge Robert Summerhays, to one count of kidnapping.
According to his plea agreement, Seneca admitted that on June 20, 2020, he used Grindr, a dating application for gay and bisexual men, to kidnap and attempt to murder H.W., a gay man. Specifically, Seneca acknowledged that he used Grindr to propose a meeting with H.W., and that he drove H.W. to an isolated house, took out a handgun and told him to put on handcuffs. Seneca then attempted to murder and dismember H.W. Seneca acknowledged that he intended to murder and dismember H.W. for the purpose of satisfying his homicidal urges, and that he had planned to continue murdering until he was caught or killed.
“The actions and intentions of the defendant in this case were shocking,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The internet should be accessible and safe for all Americans, regardless of their gender or sexual orientation. The Justice Department will continue to identify and hold accountable anyone who uses online spaces as a means to terrorize or abuse others.”
“The facts surrounding the events that took place in this case are very disturbing,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana. “It is nothing short of miraculous that the victims who endured the vicious attacks from this defendant survived. We will continue to fight to seek justice for victims who suffer at the hands of defendants such as this.”
The statutory maximum for the kidnapping offense is life imprisonment. Seneca faces additional exposure under the U.S. Sentencing Guidelines if the sentencing court finds beyond a reasonable doubt that he intentionally selected the victim because of the victim’s actual or perceived gender or sexual orientation. Sentencing is scheduled for January 25, 2023.
Assistant Attorney General Clarke, U.S. Attorney Brown and Special Agent in Charge Douglas A. Williams Jr. for the FBI New Orleans Field Office made the announcement.
The FBI and the Lafayette Police Department conducted the investigation. This case is being prosecuted by Deputy Criminal Chief Myers Namie of the Western District of Louisiana and Trial Attorney Thomas Johnson of the Civil Rights Division.
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La Cañada Flintridge Man Charged in Federal Grand Jury Indictment Alleging Murder-for-Hire Plots Against His Ex-Lawyer and a LitigantRead the Press Release
LOS ANGELES – A federal grand jury today charged a La Cañada Flintridge man who allegedly conspired with a San Fernando Valley resident to hire a hitman to kill two men involved in litigation against him.
Arthur Raffy Aslanian, 53, is charged in a three-count indictment with one count of conspiracy to use interstate commerce facilities in the commission of murder-for-hire. Also facing this charge in the indictment is Sesar Rivera, 40, of North Hollywood, Aslanian’s employee and alleged co-conspirator.
Both defendants were arrested earlier this month on a federal criminal complaint alleging the murder-for-hire plot. Today’s indictment adds an additional charge to each defendant, charging Aslanian and Rivera each with one count of use of interstate commerce facilities in the commission of murder-for-hire.
Aslanian was ordered jailed without bond after his arrest on September 15. His arraignment is scheduled for October 6 in United States District Court in downtown Los Angeles. Rivera made his initial court appearance on September 19 and is free on $20,000 bond. His arraignment is scheduled for October 25.
According to the indictment returned today, in April 2022, Rivera met with an individual and said that a real estate businessman named “Arthur” wanted to pay this individual to kill two people – identified in the indictment as “S.E.” and “M.Y.” – who were involved in litigation against him.
M.Y. was a lawyer who represented Aslanian in a bankruptcy proceeding in which Aslanian had prevailed but then refused to pay approximately $220,000 in legal fees and expenses to M.Y.’s law firm, according to court documents. In early 2022, M.Y.’s law firm filed paperwork to mediate the dispute and prepared to sue Aslanian if the mediation failed.
S.E. had defeated Aslanian in court, after Aslanian tried to take possession of the Brentwood home in which S.E.’s parents lived, court documents state.
In July 2022, Rivera again allegedly met with the individual and said “Arthur” wanted the killing done as soon as possible. Rivera showed the individual information about M.Y. The individual secretly recorded a portion of this July 2022 in-person meeting on his phone and provided a copy of the recording to law enforcement, according to an affidavit filed with the criminal complaint in this case.
Rivera allegedly also promised the individual that Aslanian would pay $20,000 for the murder once Rivera had photographic proof that the murder had been committed.
On August 10, Rivera allegedly again met with the individual and told him to focus on murdering S.E. before murdering M.Y. On August 19, Rivera allegedly used the Facebook Messenger application to send the individual a multi-media message with a screenshot of victim S.E.’s Facebook profile, including S.E.’s picture and business name, to assist the CI in locating and murdering S.E.
Law enforcement contacted and warned M.Y. and S.E. of the murder plots against them, court papers state.
On September 7, law enforcement detained and questioned Rivera, who later agreed to cooperate with them, according to court documents.
Aslanian was arrested shortly after a September 15 meeting in which Rivera showed him a staged murder photograph of S.E.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted of all charges, each defendant would face a statutory maximum sentence of 20 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Los Angeles Police Department investigated this matter.
Assistant United States Attorneys Kevin B. Reidy and Kevin J. Butler of the Violent and Organized Crime Section are prosecuting this case.
Justice Department Settles Discrimination Claims Against Architect of Pennsylvania Senior Living FacilitiesRead the Press Release
The Justice Department announced that J. Randolph Parry Architects P.C. (Parry) has agreed to settle a federal lawsuit alleging that it violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to design and construct senior living facilities to be accessible to people with disabilities.
Under the consent order that was approved by the U.S. District Court for the Eastern District of Pennsylvania, Parry will pay $350,000 to fund retrofits at eight Pennsylvania properties, $75,000 into a settlement fund to compensate individuals harmed by the inaccessible housing and $25,000 to the government as a civil penalty to vindicate the public interest. The retrofits will, among other things, make the kitchens and bathrooms at these properties more accessible and useable. The department previously resolved its claims against defendant LifeQuest Nursing Center, the developer and owner of one of the properties. The department’s lawsuit against the owners of other properties will continue and is unaffected by these settlements.
“The Justice Department is committed to vigorously enforcing the federal laws guaranteeing people with disabilities equal access to housing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. This settlement should serve as a reminder to architects and developers across the country that they cannot ignore federally-mandated accessibility requirements, including those that apply to housing for seniors.”
The consent order requires Parry to contribute funds toward retrofits and to compensate persons who have been harmed as a result of the inaccessible conditions at these properties:
- Traditions of Hanover, Bethlehem, Pennsylvania
- Chestnut Knoll, Boyertown, Pennsylvania
- Keystone Villa, Douglasville, Pennsylvania
- Arbour Square, Harleysville, Pennsylvania
- Traditions of Hershey, Hershey, Pennsylvania
- The Birches, Newtown, Pennsylvania
- Cedar Views Apartments, Philadelphia, Pennsylvania
- Lifequest Nursing Center Addition, Quakertown, Pennsylvania
Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should send an e-mail to the Justice Department at [email protected] or leave a message at 1-833-591-0291 and select option numbers (1-4-1).
The Justice Department’s Civil Rights Division enforces the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities.
More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, e-mailing the Justice Department at [email protected], or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Awards $100 Million to Reduce Community ViolenceRead the Press Release
The Department of Justice announced today grant awards totaling $100 million to help communities across the U.S. reduce gun crime and other serious violence. The announcement was made during a visit by Department officials to Baltimore, Maryland, home to three community-based organizations receiving funding under the Department’s Office of Justice Programs (OJP) Community Violence Intervention and Prevention Initiative.
OJP Principal Deputy Assistant Attorney General Amy L. Solomon announced the awards during a roundtable meeting with Baltimore youth hosted by Roca Inc., one of three organizations in the city receiving funding. The grants are jointly administered by OJP’s Bureau of Justice Assistance, Office of Juvenile Justice and Delinquency Prevention and Office for Victims of Crime. OJP’s National Institute of Justice will also support evaluations of projects funded under this initiative, contributing to the growing body of evidence regarding the effectiveness of violence intervention strategies.
“The grants announced today, which will go directly to supporting community violence intervention efforts, are an important part of our strategy to leverage the full force of the Department – including all 94 U.S. Attorney's offices, our law enforcement agencies, and grant-making components – to combat violent crime and keep communities safe,” said Attorney General Merrick B. Garland.
The Black Mental Health Alliance for Education and Consultation Inc., and the Living Classrooms Foundation, Inc., also received grants. BJA Director Karhlton F. Moore and Baltimore Deputy Mayor Anthony Barksdale joined in the announcement, as did Kurt Palermo, Executive Vice President of Maryland Roca; Cheryl Riviere, Program Director of Living Classrooms Foundation; and Andrea Brown, Executive Director of Black Mental Health Alliance Education and Consultation Inc. Kunle Adeyemo, Executive Director of the Governor's Office of Crime Prevention, Youth, and Victim Services, also joined the event. The roundtable was facilitated by Eddie Bocanegra, a veteran of Chicago’s community violence intervention movement and now the Senior Advisor for Community Violence Intervention at OJP.
Based on a Bureau of Justice Statistics analysis of data from the FBI’s Supplementary Homicide Reports, of the more than 21,500 murders known to law enforcement in 2020, more than half—56%—of the victims were between the ages of 15 and 34. Research has shown that social factors such as income inequality, the level of trust in institutions and a lack of economic opportunities are associated with firearm-related homicide rates. Evidence also shows that fear and the desire for physical safety, more than any criminal inclination, drive young people to carry and use firearms in the most violence-torn sections of our cities. Community violence interventions are grounded in research and have shown a promising track record of curbing gun traffic, reducing shootings, and saving lives.
The awards announced today, funded in part through the Bipartisan Safer Communities Act, mark a historic investment in community violence intervention programs from the Department of Justice.
“For too long, we have undervalued the wealth of resources available through community organizations and those with lived experience,” said Principal Deputy Assistant Attorney Solomon. “We know there's a better way, one that builds on what we have learned about violence and its causes. If we hope to achieve sustainable reductions in violence, we must embrace our community assets as a central ingredient in violence reduction strategies.”
The resources made available under the Community Violence Intervention and Prevention Initiative will develop and expand the infrastructure needed to build community safety and strengthen neighborhoods. They will support holistic, cross-agency collaborations, seed new efforts, and fund expansion plans in both community-based organizations and local government agencies, provide funding and assistance through intermediaries to build the capacity of smaller organizations, offer technical aid to jurisdictions that do not receive federal funding and invest in research and evaluation to better understand what works to reduce violence.
Awards are made to the following organizations and agencies:
- Acenda Inc. $1,500,000
- Black Mental Health Alliance for Education & Consultation Inc. $1,497,989
- Connie Rice Institute for Urban Peace $1,500,000
- Community Network Services Inc. $1,450,800
- Centro C.H.A. Inc. $1,500,000
- New Kensington Community Development Corporation $1,500,051
- Nonviolent Peaceforce $1,500,000
- Reclamation & Restoration Ministries $1,498,637
- County of Buncombe $1,496,756
- County of Dekalb $1,500,000
- County of Leon $1,495,663
- City of Tampa $1,500,000
- County of Alameda $1,500,000
- City of Syracuse $1,484,887
- County of Contra Costa $1,500,000
- City of Flint $1,500,000
- Lake County State’s Attorney’s Office $1,500,000
- Building Opportunities for Self-Sufficiency $ 641,050
- Metropolitan Family Services $2,000,000
- Newark Community Street Team Inc. $2,000,000
- The Osborne Association Inc. $2,000,000
- Prevention Education Inc. $1,564,024
- Roca, Inc. $1,998,807
- Circle of Brotherhood $2,000,000
- Alliance of Concerned Men $2,000,000
- Children and Youth Justice Center $2,000,000
- Exodus Transitional Community Inc. $2,000,000
- Getting Out & Staying Out Inc. $2,000,000
- HMH Hospitals Corporation $1,999,403
- Taller Salud Inc. $2,000,000
- The Living Classrooms Foundation, Inc. $1,950,000
- The North Carolina Youth Violence Prevention Center $2,000,000
- City of Baton Rouge $2,000,000
- City of Tucson $2,000,000
- City of Cleveland $1,994,908
- County of Fulton $2,000,000
- City of Greensboro $2,000,000
- City of Hartford $1,999,567
- City of Jacksonville $2,000,000
- City of Kansas City, Missouri $2,000,000
- City of Omaha $1,890,251
- City of Rapid City $2,000,000
- City of Richmond $1,966,278
- City of Los Angeles $2,000,000
- County of Salt Lake $2,000,000
- County of Harris $1,999,715
- Local Initiatives Support Corporation $2,000,000
- Metropolitan Family Services $2,000,000
- Latino Coalition for Community Leadership $2,000,000
- The Community Based Public Safety Collective $3,029,009
Training and Technical Assistance Awards:
- Local Initiatives Support Corporation $1,750,000
- Travelers & Immigrants Aid’s Heartland Alliance for Human Needs & Human Rights $1,750,000
The awards announced above are being made as part of the regular end-of-fiscal year cycle. For more information about grants under the Community Violence Intervention and Prevention Initiative, and for information about other OJP grant awards, please visit the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Announces Actions to Resolve Lending Discrimination Claims Against Evolve Bank and TrustRead the Press Release
The Justice Department today announced it has secured an agreement to resolve allegations that Evolve Bank & Trust, which is headquartered in Memphis, engaged in lending discrimination on the basis of race, sex and national origin in the pricing of its residential mortgage loans from at least 2014 through 2019.
Evolve Bank maintains mortgage lending offices and provides mortgage lending services in 15 states throughout the country. Under the department’s settlement, which is subject to the approval of the District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected borrowers. Evolve Bank will also pay a $50,000 civil penalty.
“This settlement will provide deserved relief to thousands of borrowers who suffered discrimination due to Evolve Bank’s pricing policies,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This case marks the Justice Department’s latest step to protect Americans from illegal lending practices, and shows that we will hold lenders accountable for the effects of their discriminatory practices.”
“This settlement provides some measure of justice to those wronged by Evolve Bank’s discriminatory acts,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I also hope it sends a strong message to banks and other lenders that the Department of Justice won’t stand for unlawful barriers in residential mortgage lending. It’s past time for these practices to stop.”
The department opened its investigation after the Board of Governors of the Federal Reserve System referred the matter. Consistent with federal law, the Board has long referred matters involving potential fair lending violations to the Department of Justice.
According to the complaint, the Justice Department alleges that Evolve Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, sex or national origin in their mortgage lending services. Specifically, the complaint alleges that, from at least 2014 through 2019, Evolve Bank’s loan pricing practices resulted in Black, Hispanic and female borrowers paying more in the “discretionary pricing” components of home loans than white or male borrowers for reasons unrelated to their creditworthiness. “Discretionary pricing” means the parts of a loan price that are left up to Evolve’s loan officers and managers, including fees, charges or rate discounts that don’t relate to the borrowers’ credit qualifications or loan characteristics.
Since being notified of the department’s investigation of this matter, Evolve has taken steps to revise its policies and practices that resulted in Black, Hispanic and female borrowers paying more for home loans than white or male borrowers. During the four-year term of the proposed consent order, Evolve will maintain policies that reduce loan officer discretion, employ a fair lending officer who will work in close consultation with the bank’s leadership and provide fair lending training to its personnel.
The department’s Civil Rights Division has long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race, sex or national origin. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.”
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at the Justice Department webpage. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination tip line at 1-833-591-0291, or submitting a report online. View the Spanish translation of this press release here.
Justice Department Announces Actions to Resolve Lending Discrimination Claims Against Evolve Bank & Trust Settlement Provides $1.3 Million to Compensate Affected BorrowersRead the Press Release
Memphis, TN – The Justice Department today announced it has secured an agreement to resolve allegations that Evolve Bank & Trust, which is headquartered in Memphis, engaged in lending discrimination on the basis of race, sex and national origin in the pricing of its residential mortgage loans from at least 2014 through 2019.
Evolve Bank maintains mortgage lending offices and provides mortgage lending services in 15 states throughout the country. Under the department’s settlement, which is subject to the approval of the
District Court, Evolve Bank will establish a settlement fund of $1.3 million to compensate affected borrowers. Evolve Bank will also pay a $50,000 civil penalty.“This settlement will provide deserved relief to thousands of borrowers who suffered discrimination due to Evolve Bank’s pricing policies,” said Assistant Attorney General Kristen Clarke of the
Justice Department’s Civil Rights Division. “This case marks the Justice Department’s latest step to protect Americans from illegal lending practices and shows that we will hold lenders accountable for the effects of their discriminatory practices.”“This settlement provides some measure of justice to those wronged by Evolve Bank’s discriminatory acts,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “I also hope it sends a strong message to banks and other lenders that the Department of Justice won’t stand for unlawful barriers in residential mortgage lending. It’s past time for these practices to stop.”
The department opened its investigation after the Board of Governors of the Federal Reserve System referred the matter. Consistent with federal law, the Board has long referred matters involving potential fair lending violations to the Department of Justice.
According to the complaint, the Justice Department alleges that Evolve Bank violated the Fair
Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, sex or national origin in their mortgage lending services.
Specifically, the complaint alleges that, from at least 2014 through 2019, Evolve Bank’s loan pricing practices resulted in Black, Hispanic, and female borrowers paying more in the
“discretionary pricing” components of home loans than white or male borrowers for reasons unrelated to their creditworthiness. “Discretionary pricing” means the parts of a loan price that are left up to Evolve’s loan officers and managers, including fees, charges or rate discounts that don’t relate to the borrowers’ credit qualifications or loan characteristics.Since being notified of the department’s investigation of this matter, Evolve has taken steps to revise its policies and practices that resulted in Black, Hispanic and female borrowers paying more for home loans than white or male borrowers. During the four- year term of the proposed consent order, Evolve will maintain policies that reduce loan officer discretion, employ a fair lending officer who will work in close consultation with the bank’s leadership and provide fair lending training to its personnel.
The department’s Civil Rights Division has long been engaged in work that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race, sex or national origin. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.”
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights
Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at the Justice Department webpage. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination tip line at
1-833-591-0291 or submitting a report online.
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For more information, please contact Public Information Officer Cherri Green at (901) 544-4231 or [email protected]. Follow @WDTNNews on Twitter for office news and updates.
Janesville Man Sentenced to 10 Years for Receiving Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Mark Spengler, 57, Janesville, Wisconsin was sentenced today by U.S. District Judge William M. Conley to 10 years in federal prison, followed by 15 years of supervised release for receipt of child pornography. Judge Conley also ordered Spengler to pay $47,000 in restitution. Spengler pleaded guilty to this charge on June 7, 2022.
On May 31, 2019, law enforcement officers executed a search warrant at Spengler’s residence. While examining Spengler’s computer equipment, a forensic analyst from the Federal Bureau of Investigation (FBI) found multiple videos showing prepubescent children engaged in sexually explicit conduct. Law enforcement officers also interviewed Spengler, who admitted that he used a file sharing program to search for and obtain child sexual assault material.
In sentencing Spengler, Judge Conley expressed concern for Spengler’s deep rooted sexual attraction to children. Judge Conley also noted that many files found on Spengler’s computer involved violent sexual acts directed towards minors.
The charge against Spengler was the result of an investigation conducted by the FBI. Assistant U.S. Attorneys Elizabeth Altman and Julie Pfluger prosecuted this case.
Iowa Sex Offender Pleads Guilty to Online Harassment of MO TeenRead the Press Release
JEFFERSON CITY, Mo. – A Corydon, Iowa, man pleaded guilty in federal court today to attempting to produce child pornography following his online harassment of a Calloway County, Mo., teenager over five years.
David Jonathon Dodds, 60, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to one count of attempting to produce child pornography. Dodds is a registered sex offender due to his conviction for the exhibition of obscene materials to minors. His sex offense conviction occurred after the conduct in this federal case.
By pleading guilty today, Dodds admitted that he initially contacted the child victim through her Instagram account when she was 13 years old, and continued contacting her through Facebook Messenger and her cell phone until she was 18 years old. Her father contacted the Calloway County Sheriff’s Department in February 2020 to report that his 18-year-old daughter had been the victim of harassment and sexual enticement for several years.
After Dodds contacted the child victim through Instagram, his behavior escalated to messaging her numerous times a day and sending her pornographic images of himself. Dodds also asked her to send nude photographs of herself, and the child victim sent several nude photos of herself in 2015, when she was 14 years old.
The child victim told investigators she became uncomfortable with the ongoing conversations with Dodds and attempted to cut off communications. He became agitated with her and he began threatening to text her parents or friends if she didn’t communicate with him. Dodds messaged her parents and left three voicemail messages on her boyfriend’s phone telling him she had been cheating on both of them. The child victim told investigators she began hiding in photos taken with friends or family that may end up on social media to avoid being seen. She began receiving contact on Facebook Messenger and her cell phone. She turned off her cell phone for durations to avoid any contact.
The child victim reported this continued harassment led to significant anxiety and caused her to quit several jobs. It became apparent that Dodds was monitoring her parents’ public posts on Facebook, harassing her about going to prom or noting how they had been at Wal-Mart looking for her. His behavior caused her to trade cell phones and delete Instagram and Facebook accounts.
The child victim eventually disclosed the harassment to her family, who contacted law enforcement.
Under the terms of today’s plea agreement, the government and Dodds will jointly recommend a sentence of 15 years in federal prison without parole. The sentencing of the defendant 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 United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ashley S. Turner. It was investigated by the Callaway County, Mo., Sheriff’s Department, the Boone County, Mo., Sheriff’s Department, and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."