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29 September 2022
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."
Indianapolis Man Sentenced to 12 Years in Federal Prison After Four Armed Robberies of Victims Lured Using Dating AppRead the Press Release
INDIANAPOLIS – Demetrius Banks, 25, of Indianapolis, was sentenced to 12 years in federal prison after pleading guilty to robbery and brandishing a firearm in furtherance of a crime of violence.
According to court documents, between May 15, 2021, and May 21, 2021, Banks used an online dating application, Grindr, to arrange to meet four different men at their residences. Banks contacted Victim 1 on May 15, 2021, through Grindr and arranged to meet Victim 1 at his apartment in Indianapolis. Shortly thereafter, Banks arrived at Victim 1’s apartment. Victim 1 opened the door and Banks entered the apartment. Victim 1 left Banks in the living room for a few minutes and when he returned Banks brandished a semiautomatic pistol. Banks utilized Victim 1’s cellular telephone to wire himself $500 through an online Cash App account. Banks also stole a television, two laptops, an iWatch, an iPad, and approximately 30 pieces of jewelry. Banks threatened Victim 1 before fleeing in his vehicle. Banks pleaded guilty to the charges pertaining to this robbery.
Banks committed very similar robberies of three additional victims. On May 15, 2021, Banks met Victim 2 at the victim’s apartment, brandished a pistol, and pushed his way into the apartment. Banks demanded money from Victim 2 and stole his cellular telephone.
On May 16, 2021, Banks met Victim 3 at the victim’s residence. Banks wore a mask over the lower portion of his face and brandished a pistol. Banks entered Victim 3’s home, demanded money from him and led him to the bedroom at gunpoint. A struggle over the firearm ensued and during the fight the pistol discharged twice. One round struck the wall and the other hit Victim 3’s television. Banks fled the residence with his firearm. Officers responded to the scene and immediately noticed Victim 3’s injuries. Officers identified at least two bullet holes in Victim 3’s residence and recovered a .380 caliber shell casing.
On May 21, 2021, Banks arranged to meet with Victim 4 at his residence. When Victim 4 answered, Banks brandished a semiautomatic pistol and pushed his way into the residence. Banks ordered Victim 4 at gunpoint to lay face down on the bed. Victim 4 complied while Banks stole his cellular telephone, a laptop, several pieces of jewelry, and Apple AirPods. Banks threatened to kill Victim 4 before leaving the residence.
Law enforcement officers identified Banks as the robber through investigation. Banks was arrested and transported to the Indianapolis Metropolitan Police Department for questioning. Banks admitted to using Grindr to meet Victims 1-4. Banks initially denied he committed the robberies, but later admitted to committing all four.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The FBI investigated the case. The Indianapolis Metropolitan Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Stinson ordered that Banks be supervised by the U.S. Probation Office for two years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Indianapolis Man Sentenced to 111 Months in Federal Prison for Armed Robbery of a Lebanon AT&T StoreRead the Press Release
INDIANAPOLIS – Javentay Chapman, 21, of Indianapolis, was sentenced to 111 months in federal prison after pleading guilty to robbery and brandishing a firearm in furtherance of a crime of violence.
According to court documents, On February 25, 2021, Chapman and a juvenile male entered the AT&T store located at 1602 N. Lebanon Street in Lebanon, Indiana. Upon entering the store, the two robbers each brandished firearms at the store employee. The employee, with a gun pointed at him, was ordered to open the store’s safe and get on the floor. The robbers grabbed several phones and electronic items from the safe and placed them in a bag. One of the robbers asked the store employee if the phones had trackers on them, to which the employee stated he did not know. The robbers instructed the employee to stay on ground and then fled the business.
At least one of the cellular phones taken by the robbers had a GPS tracking device on it. Law enforcement was able to track the device and officers with the Indianapolis Metropolitan Police Department were able to locate the vehicle driving south on I-65. A traffic stop was initiated near the intersection of Michigan and 38th Streets in Indianapolis. Chapman was one of the vehicle’s occupants.
Located within the vehicle were multiple cellular phones, accessories and the tracking devices that accompanied at least one of the phones. Investigators also located 2 firearms in the vehicle. Surveillance footage obtained from the AT&T store shows Chapman wearing the same clothing he was arrested in during the robbery.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The FBI investigated the case. The Fishers Police Department, Indianapolis Metropolitan Police Department and Lebanon Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge Sarah Evans Barker. As part of the sentence, Judge Barker ordered that Chapman be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Indianapolis Man Out on Bond Sentenced to 231 Months in Federal Prison After Robbing OfferUp and Facebook Marketplace Buyers at GunpointRead the Press Release
INDIANAPOLIS – Dujuan Lucas, 22, of Indianapolis, was sentenced to 231 months in federal prison after pleading guilty to two robberies and brandishing a firearm in furtherance of both crimes of violence.
According to court documents, on August 8, 2020, Victim 1 contacted Lucas, who had listed a vehicle for sale under a fictious name, on the internet-based marketplace OfferUp. Victim 1 arranged to meet Lucas at an address on Redskin Lane in Indianapolis and arrived at the location with her three children, Victims 2-4.
Victim 1 texted Lucas when she arrived at the location. The vehicle was not present when Victim 1 arrived. Lucas told Victim 1 that his child’s mother had the vehicle, and that Victim 1 would have to wait. Lucas then pointed a pistol at Victim 1’s head, demanded money and told Victim 1 not to resist. Lucas removed $1,000 in U.S. currency from Victim 1’s person and ran off. The police were contacted, and they soon arrived at the scene to investigate the robbery. Through investigation, officers determined that it was Lucas who placed the advertisement on OfferUp and robbed Victim 1 and her three children at gunpoint.
On August 23, 2020, Victim 5 communicated over Facebook Marketplace with Lucas who had listed an iPhone 11 and several other electronics for sale through the website. Victim 5 arranged to meet Lucas, who was portraying himself as a female, at another address on Redskin Lane. Lucas explained to Victim 5 that it would be her “brother” that would be meeting Victim 5. Later that day, Victim 5 and four friends, Victims 6-9, arrived at the Redskin Lane address and messaged Lucas over Facebook that they had arrived.
Lucas approached Victim 5’s vehicle and Victim 5 exited the vehicle to meet Lucas. Lucas asked to see the money first. The victims showed Lucas the money and Lucas handed a box to Victim 5. While Victim 5 was looking at the box, Lucas grabbed Victim 5 from behind, held a gun against Victim 5’s neck, and demanded cash from the group. Victim 5 gave Lucas money. Lucas ordered Victim 6 to exit the vehicle and demanded all the victims’ cell phones. Victims 6 and 7 gave Lucas their cell phones. All the victims were eventually able to return to their vehicle while Lucas was distracted, and they fled the scene with Lucas running behind them for a short time. The police were called to respond to the robbery. Lucas was identified by police as the perpetrator of this armed robbery also. Lucas was found at a residence on Redskin Lane on September 8, 2020 and was subsequently arrested.
A search warrant was executed at Lucas’s residence. Police recovered a 9mm semiautomatic handgun, two handgun magazines and other items used during the robberies. Lucas admitted that the handgun and magazines belonged to him.
In 2016, Lucas was convicted of armed robbery as a juvenile in Marion County, Indiana. Lucas was out on bond awaiting trial for narcotics charges in Marion County at the time he committed the two marketplace robberies.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Herbert J. Stapleton, Special Agent in Charge of the FBI’s Indianapolis Field Office, made the announcement.
The FBI investigated the case. The Indianapolis Metropolitan Police Department provided valuable assistance. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Lucas be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Lawrence D. Hilton and Kathryn E. Olivier who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Hammond Man Sentenced to 57 Months in PrisonRead the Press Release
HAMMOND- Travoy Smith, 40 years old, of Hammond, Indiana, was sentenced by United States District Court Judge Philip P. Simon on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Smith was sentenced to 57 months in prison followed by 2 years of supervised release.
According to documents in the case, on February 17, 2021, law enforcement searched Smith’s residence pursuant to a search warrant and recovered a firearm with an extended magazine. Smith’s criminal history revealed he has a prior felony conviction in Lake County, Indiana for dealing in cocaine, and as such, is prohibited from possessing a firearm or ammunition.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives Indiana High Intensity Drug Trafficking Task Force and the Hammond Police Department. This case was prosecuted by Assistant United States Attorney Caitlin M. Padula.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Guatemalan Man Pleads Guilty to Transporting Illegal AliensRead the Press Release
Gulfport, Miss. – A Guatemalan national pled guilty to unlawful transportation of an illegal alien within the United States.
U.S. Attorney Darren J. LaMarca, Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector, and Special Agent in Charge David L. Denton of Homeland Security Investigations made the announcement.
According to court documents, Yobany Macario-Morales, a citizen of Guatemala who had been living in Texas, was stopped on May 1, 2022, on Interstate 10 in Harrison County by a Harrison County Sheriff’s Deputy who is a member of the Harrison County Criminal Interdiction Team. The deputy requested assistance from the U.S. Border Patrol, and agents arrested Macario-Morales and his two passengers, both of whom were citizens of Mexico who were unlawfully present in the United States.
Macario-Morales is scheduled to be sentenced at 1:30 p.m. on Thursday, January 5, 2023, and faces a maximum penalty of 5 years in prison, a $250,000 fine, 3 years of supervised release and $5,100 in special assessments. After completing any prison sentence, he also is subject to Homeland Security proceedings to remove him from the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by Homeland Security Investigations, the U.S. Border Patrol, and the Harrison County Sheriff’s Department. Assistant U.S. Attorney Stan Harris is the prosecutor for the case.
Guam Resident Sentenced to 70 Months in Federal Prison for Bank Robbery and Failure to Update Sex Offender RegistrationRead the Press Release
Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Vicente Guerrero Perez, age 57, from Guam was sentenced to 70 months in federal prison for Bank Robbery, in violation of 18 U.S.C. § 2113(a), and Failure to Update Sex Offender Registration, in violation of 18 U.S.C. § 2250(a). The Court also ordered five years of supervised release following imprisonment, restitution of $1,560.00, 100 hours of community service, and a mandatory $200.00 special assessment fee.
On August 13, 2021, Perez entered the Dededo branch of the First Hawaiian Bank in Guam. He waited in line and then handed the teller a plastic bag and a note. The note announced a robbery and for the teller to put money in the bag. The teller was terrified and placed approximately $1,560.00 into the plastic bag before returning it to Perez. The teller triggered a silent alarm after Perez left the bank. Perez’ actions were captured on surveillance cameras. Still images from the videos were distributed to the public. FBI agents received a tip identifying Perez. Once agents located Perez, he waived his rights, consented to an interview, and admitted robbing the First Hawaiian Bank.
Perez was also required to register as a sex offender due to a conviction in 1992 for Third Degree Criminal Sexual Conduct. This included updating his registration in person every six months. According to the Guam Sex Offender Registry, he failed to do so since April 2021. Perez previously served 21 months in prison for failing to register.
“The lengthy sentence imposed by the Court demonstrates the seriousness of these crimes,” stated United States Attorney Anderson. “Our communities deserve protection from Perez’s continuing criminal activity. I applaud our law enforcement partners, and the assistance of the public, for bringing him to justice.”
"The FBI is committed to protecting Guam from violent crimes and working with the Guam Police Department on these types of cases," said FBI Special Agent in Charge Steven Merrill. "The FBI also thanks the U.S. Attorney's Office for prosecuting this case at the federal level which has stiffer penalties and no opportunity for parole, especially for someone who is a registered sex offender."
The investigation was conducted by the Federal Bureau of Investigation and prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.
Guam Drug Dealer Sentenced to 136 Months in Federal Prison for Drug Trafficking, Felon in Possession of Firearm and AmmunitionRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Nathan Earl McCord Borja, age 38, from Guam, was sentenced in the United States District Court of Guam to 136 months imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846 and 841(a)(1), and Possession of a Firearm and Ammunition by a Convicted Felon, in violation of 18 U.S.C. §§922(g)(1). The Court also ordered five years of supervised release following imprisonment and a mandatory $200 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
In February 2021, Guam Police Department officers received information that the Nathan Earl McCord Borja was selling methamphetamine in Guam. Law enforcement surveilled and arrested Borja as he sold 29.10 grams of methamphetamine to an individual in Tumon. A search of Borja’s vehicle revealed a Rossi revolver, 16 rounds of ammunition, $7,128 in cash, 8.23 grams of methamphetamine in his pocket, and an additional 12.99 grams of methamphetamine hidden in his vehicle. A search of Borja’s phone revealed his participation in a drug distribution conspiracy since 2020. Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives noted that the serial numbers on the firearm were obliterated. In addition, Borja had a prior felony conviction that prohibited him from possessing any firearm or ammunition.
“Drugs and firearms are a dangerous combination for community safety,” stated United States Attorney Anderson. “Unfortunately, we often see this in organized criminal activity. These cases are a high priority for our office. Those engaging in this type of crime should expect federal prosecution and stiff sentences.”
“By trafficking drugs and illegally possessing firearms as a convicted felon, Mr. Borja clearly did not learn from his previous actions,” said ATF Seattle Field Division Special Agent in Charge Jonathan T. McPherson. “Hopefully with this sentence he will be able to reflect on the harm he has brought to the people of Guam.”
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This was a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Guam Police Department. The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.
Grand Island Man Sentenced for Methamphetamine PossessionRead the Press Release
Acting United States Attorney Steven Russell announced that Michael Eugene West, 39, of Grand Island, Nebraska, was sentenced on September 28, 2022, in federal court in Lincoln, Nebraska, for possession with intent to distribute methamphetamine. United States District Judge John M. Gerrard sentenced West to 112 months’ imprisonment. There is no parole in the federal system. After his release from prison, West will begin a 4-year term of supervised release.
On July 26, 2021, West was driving a vehicle in Grand Island when a police officer attempted to stop him. West continued driving for several blocks before stopping. He was arrested on an outstanding warrant. Later that evening, the police received a phone call from a resident who found a bag of suspected drugs on the sidewalk, which they left there for police to retrieve. During a phone call from the jail, West admitted that he threw the drugs out of the window. The police officer reviewed his cruiser video and also found that, before West stopped his vehicle, a small white item can be seen coming out of the vehicle and hitting the mailbox right where the methamphetamine was found. The substance was sent to the lab for testing where it was confirmed to be 24 grams of actual or pure methamphetamine.
This case was investigated by the Grand Island Police Department and TRIDENT, Tri Cities Drug Enforcement Team.
Fourth Defendant Sentenced in Farmington Tax Fraud ConspiracyRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Thursday ordered the fourth of four defendants involved in a tax fraud conspiracy to pay $26,558 to the IRS.
Tammy Flanagan, 56, was also sentenced to five years of probation.
All four defendants pleaded guilty to a charge of conspiracy to defraud the United States, and admitted participating in a scheme to underreport money paid to contractors who performed work at apartment complexes.
Patricia Jane Tucker, 73, of Fredericktown, was the manager of the MACO Management Company office in Farmington, Missouri, and Flanagan, Robin McWilliams, 53, and Billie McFadden,46, of Fredericktown, were property managers. All were responsible for hiring contractors to work on the properties. They hired their spouses as contractors, then manipulated computer records to prevent the submission of 1099 forms to the IRS that would have reflected the money paid to those contractors.
McWilliams triggered a failure to report about $398,250 in taxable income in 2013 and 2014, resulting in a $124,175 in tax loss to the IRS.
Flanagan failed to report about $41,770 in taxable income in 2013 and $39,640 in 2014, causing a tax loss of $26,558.
McFadden caused the failure to report $28,442 in 2013 and $19,194 in 2014 for a total tax loss of $46,636.
On Sept. 20, Judge White sentenced Robin McWilliams to four years of probation and ordered her to repay $124,175. In July, Patricia Jane Tucker was placed on probation for four years and ordered to repay $357,917. In March, Billie McFadden also received four years of probation and was ordered to repay $47,636.
“Tax evasion is not a victimless crime. When people scheme to evade paying taxes, it’s local communities and honest taxpayers who end up paying,” said IRS-CI Acting Special Agent in Charge, Charles Miller, St. Louis Field Office. “Ms. Flanagan and her co-conspirators knowingly took part in a scheme to cheat the IRS. We take such violations of the nation’s tax laws very seriously.”
The case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Gwendolyn Carroll prosecuted the case.
Four Individuals Plead Guilty in Multimillion-Dollar Scheme to Defraud U.S. Department of Education Federal Financial Aid ProgramsRead the Press Release
Four individuals pleaded guilty today to conspiring to defraud the Department of Education’s financial aid programs of millions of dollars in federal funds.
According to court documents and statements made in connection with their guilty pleas, Sandra Anderson, 63, of Palmetto, Georgia; Yolanda Thomas, 51, of Columbus, Georgia; Leo Thomas, 56, of Phenix City, Alabama; Kristina Parker, 35, of Stone Mountain, Georgia; and their co-conspirators fraudulently obtained millions of dollars in federal financial aid funds that they misused for their personal benefit. They did so by creating an elaborate sham university – the Columbus, Georgia, satellite campus of the Apex School of Theology.
As part of their guilty pleas, the co-conspirators admitted that, at Anderson’s direction, they enrolled individuals at Apex who agreed to pose as students, knowing that those individuals did not qualify to enroll in college or graduate school. The co-conspirators then fraudulently completed financial aid applications in students’ names and completed students’ homework and exams. The co-conspirators also served as teachers and manipulated student grades to ensure that the purported students could meet the minimum grade requirements to continue to qualify for federal financial aid. Then, the co-conspirators either stole student financial aid refund checks outright or required students to cash their aid checks and provide a portion to the co-conspirators.
Anderson, Yolanda Thomas, and Parker each pleaded guilty to one count of conspiracy to commit wire fraud, five counts of wire fraud, and four counts of financial aid fraud. They each face a maximum penalty of 20 years in prison on each of the conspiracy and wire fraud charges, and five years in prison on each of the financial aid fraud charges. Leo Thomas pleaded guilty to one count of conspiracy to commit wire fraud and faces a maximum penalty of 20 years in prison. All defendants are scheduled to be sentenced on Dec. 15. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Peter D. Leary for the Middle District of Georgia; Special Agent in Charge Keri E. Farley of the FBI Atlanta Field Office; Special Agent in Charge Reginald J. France of the Department of Education Office of Inspector General (ED-OIG), Southeastern Regional Office; and Special Agent in Charge James E. Dorsey of the IRS Criminal Investigation (IRS-CI) made the announcement.
The FBI, ED-OIG, and IRS-CI are investigating the case.
Assistant Chief Leslie S. Garthwaite and Trial Attorneys Matt Kahn, Siji Moore, and Spencer Ryan of the Criminal Division’s Fraud Section are prosecuting the case, with valuable assistance from the U.S. Attorney’s Office for the Middle District of Georgia.
Former youth pastor sentenced to 13+ years for sexual abuse of Missouri teenRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Thursday sentenced a former youth pastor from New York to 13 years and four months in prison for the sexual abuse of a Missouri 15-year-old in 2013.
Judge White also ordered Jesse E. Vargas, 38, to pay $146,594 in restitution to his victim.
Vargas originally met the then 11-year-old girl at a religious camp in Michigan where he worked.
“Over the course of the next four years Jesse played with my family and I like frogs in a pot,” the victim said in court during Thursday’s hearing. “Slowly increasing the temperature of his manipulation until we each were unaware of the water we had been submerged in, let alone its suddenly scalding temperature. By age thirteen I abandoned most of my spiritual leaders and friendships at his suggestion. By fourteen he even guided me to push away my two closest friends,” she said.
In January of 2013, Vargas traveled from New York to the St. Louis area home of the teen. He stayed in her family’s house and preached a sermon at her church. During the visit, he also sexually abused her.
“I was assured by him throughout my formative young teenage years that ‘The World’ wouldn’t understand the illicit affair of ours he was suggesting, but God had provided us a path that we should follow together in secret. Tell no one. Trust no one else,” the victim said.
He returned in March of 2013 and abused her again. In June of that year, he arranged for her to travel to New York, where he abused her again. He exchanged images and videos containing nude images with the teen via social media apps and text messages.
The victim also spoke about the effects of Vargas’ abuse, including PTSD. “As a lifelong honors student with high career hopes entering high school, I instead dropped out because I was simply too exhausted to care about anything.”
Vargas, of Nassau County, pleaded guilty March 22 to two felony counts: travel with the intent to engage in illicit sexual contact and coercion and enticement of a minor.
The case was investigated by the FBI and the Hazelwood Police Department. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
“The way Jesse Vargas used the guise of spiritual instruction is repugnant. He manipulated not only his victim, but the adults who tried to protect her,” said Acting Special Agent in Charge Mark Dargis of the FBI St. Louis Division. “I commend the victim’s bravery for coming forward, in spite of having to relive her trauma, to prevent others from becoming a victim.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Washington state resident indicted for defrauding investors and marijuana businessesRead the Press Release
Seattle – A 42-year-old Las Vegas man, who previously lived in Bellevue, Washington, is facing a 25-count indictment charging him with wire fraud and securities fraud, announced U.S. Attorney Nick Brown. Justin Costello allegedly victimized marijuana business owners, private investors and investors who purchased stock over-the-counter. The Securities and Exchange Commission also filed a civil suit against Costello today.
“Mr. Costello allegedly told many tall tales to convince victims to invest millions of dollars -- money he then used for his own benefit,” said U.S. Attorney Nick Brown. “In a complex scheme involving shell companies, penny stocks, and financial services for marijuana businesses, Mr. Costello used Twitter, press releases, securities filings, and claims of great wealth to paint a picture of fabulous financial success. In truth that picture was a mirage.”
According to the indictment, in 2017 Costello owned and operated a company called Pacific Banking Corp that provided banking services to marijuana businesses in Washington, Colorado, California, Illinois, and Alaska. Between 2019 and 2021, Costello allegedly diverted money from three marijuana business to benefit himself and his companies. The diversions were contrary to the promises he had made to the marijuana businesses. The three marijuana businesses lost about $3.7 million.
As part of his scheme, Costello purchased two companies that were trading for pennies on the over-the-counter market and renamed them GRN Holding Corporation and Hempstract Inc. Costello also recruited investors in these companies, allegedly making numerous false statements about the size and success of his marijuana banking business. Costello told potential private investors several falsehoods – that he had an MBA from Harvard, that he had served in the military and had done two tours in Iraq and had been wounded twice, that he was a billionaire, that he had 14 years of experience on Wall Street and that GRN Funds LLC, a private equity and hedge fund he owned, had over $1 billion in assets under management. None of that is true.
With these falsehoods, Costello convinced various investors across the country to invest in his companies. One deceived couple provided Costello with more than $2 million for shares in companies that he controlled. Additionally, they opened a $4 million TD Ameritrade account at Costello’s direction and provided him with the passwords that allowed him to trade in their account. Costello allegedly used the account to purchase the penny stock of companies he controlled driving up the share price to enrich himself.
Costello used the same lies with other investors and allegedly used investor funds for his own expenses. For example, Costello used at least $42,000 of investor money for personal expenses include costs associated with his wedding. In all, some 29 investors invested directly with Costello and lost $6 million because they relied on Costello’s false representations.
In 2019, Costello’s entity GRN Funds, LLC purchased the outstanding shares of Discovery Gold Corp., changing the name to GRN Holding Corp. In SEC filings about the purchase Costello lied repeatedly about his background, education, and the financial success of the LLC. In various filings with the SEC, and in press releases, Costello lied about GRN Holding Corp’s possible acquisition of other companies and revenue – causing the share price to increase. From December 2019 and into January and February 2020, Costello directed others to issue ten press releases about acquiring other companies. None of the acquisitions occurred even though Costello controlled these other companies. Between July 2019 and May 2021, 7,500 investors lost about $25 million after purchasing and selling GRN Holding Corp stock.
Finally, between October 2019, and January 2021, Costello hired an unindicted coconspirator to use Twitter in a pump and dump stock scheme. Costello would acquire the penny stock of a company and then instruct his prolific Twitter user to tweet falsehoods about the company that would drive up the stock price. The coconspirator would tweet about the stock as often as 90 times a day. In one instance Costello didn’t just use Twitter, he also instructed some of his “investors” to purchase stock in the company, driving the share price from a nickel to $2 per share. After driving the share price up, Costello sold the shares for a profit of more than $355,000. The prolific Twitter user was given a share of Costello’s profits from the pump and dump scheme. In all Costello made $576,466 in the pump and dump scheme.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Wire fraud is punishable by up to 20 years in prison and fine of $250,000 or twice the gain the Costello or the loss to the victims of his offenses. Securities Fraud is punishable by up to 20 years in prison and a $5,000,000 fine.
The case was investigated by the FBI. If you have information, or believe you were a victim in this fraud, please email: [email protected].
The SEC conducted their own separate investigation.
The case is being prosecuted by Assistant United States Attorney Justin Arnold and Michael Dion.
costello_indictment.pdfFormer Olanta Resident Pleads Guilty to Drug Trafficking and Guns Possession ChargesRead the Press Release
PITTSBURGH, PA – A former resident of Olanta, Pennsylvania pleaded guilty in federal court to violation of federal narcotics and firearms laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Brent Shaffer, age 38, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and one count of possession of a firearm by a convicted felon before United States District Judge Christy Criswell Wiegand. Shaffer was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that Shaffer received parcels that were shipped from California to the Western District of California containing a total of between 1.5 kilograms and 5 kilograms of methamphetamine. Investigators searched Shaffer’s residence on August 31, 2021, pursuant to a federal search warrant and seized over 200 grams of methamphetamine and three firearms.
Judge Wiegand scheduled sentencing for Shaffer on February 7, 2023, at 10:00 a.m. The law provides for a sentence of not less than ten years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain detained pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services,
Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Former NSA Employee Arrested on Espionage-Related ChargesRead the Press Release
DENVER – A Colorado Springs man will make his initial appearance in federal court today on charges that he attempted to transmit classified National Defense Information (NDI) to a representative of a foreign government.
Jareh Sebastian Dalke, 30, was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer from June 6, 2022, to July 1, 2022. According to the affidavit in support of the criminal complaint, between August and September 2022, Dalke used an encrypted email account to transmit excerpts of three classified documents he had obtained during his employment to an individual Dalke believed to be working for a foreign government. In actuality, that person was an undercover FBI agent. Dalke subsequently arranged to transfer additional classified information in his possession to the undercover FBI agent at a location in Denver, Colorado. The FBI arrested Dalke on Sept. 28, after Dalke arrived at the specified location.
According to the affidavit in support of the criminal complaint, Dalke began communicating on or about July 29, 2022, via encrypted email with an individual he believed to be associated with a foreign government. Dalke told that individual that he had taken highly sensitive information relating to foreign targeting of U.S. systems, and information on U.S. cyber operations, among other topics. Dalke represented to the undercover FBI agent that he was still employed by the U.S. government but said he was on a temporary assignment at a field location. Dalke requested compensation via a specific type of cryptocurrency in exchange for the information he possessed and stated that he was in financial need.
To prove he had access to sensitive information, Dalke transmitted excerpts of three classified documents to the undercover FBI agent. Each excerpt contained classification markings. One excerpt was classified at the Secret level, and two excerpts were classified at the Top Secret level. In return for this information, the FBI undercover agent provided the requested cryptocurrency to an address Dalke provided.
On or about Aug. 26, 2022, Dalke requested $85,000 in return for additional information in his possession. Dalke also told the FBI undercover that he would share additional information in the future, once he returned to the Washington, D.C., area. Although he was not employed by the NSA while communicating with the FBI, Dalke re-applied to the NSA in August 2022.
Dalke agreed to transmit additional information using a secure connection set up by the FBI at a public location in Denver. On Sept. 28, at that location, the FBI arrested Dalke based on a signed criminal complaint.
Dalke is charged by criminal complaint alleging three violations of the Espionage Act, which makes it a crime to transmit or attempt to transmit NDI to a representative of a foreign nation with intent or reason to believe that information could be used to the injury of the United States or to the advantage of a foreign nation. The Espionage Act carries a potential sentence of death or any term of years up to life.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Cole Finegan for the District of Colorado; and Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division made the announcement.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler of the District of Colorado, and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting on behalf of the government. The case is being investigated by the FBI Denver Field Office and the FBI Washington Field Office.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former NSA Employee Arrested on Espionage-Related ChargesRead the Press Release
A Colorado Springs man will make his initial appearance in federal court today on charges that he attempted to transmit classified National Defense Information (NDI) to a representative of a foreign government.
Jareh Sebastian Dalke, 30, was an employee of the National Security Agency (NSA) where he served as an Information Systems Security Designer from June 6, 2022, to July 1, 2022. According to the affidavit in support of the criminal complaint, between August and September 2022, Dalke used an encrypted email account to transmit excerpts of three classified documents he had obtained during his employment to an individual Dalke believed to be working for a foreign government. In actuality, that person was an undercover FBI agent. Dalke subsequently arranged to transfer additional classified information in his possession to the undercover FBI agent at a location in Denver, Colorado. The FBI arrested Dalke on Sept. 28, after Dalke arrived at the specified location.
According to the affidavit in support of the criminal complaint, Dalke began communicating on or about July 29, 2022, via encrypted email with an individual he believed to be associated with a foreign government. Dalke told that individual that he had taken highly sensitive information relating to foreign targeting of U.S. systems and information on U.S. cyber operations, among other topics. Dalke represented to the undercover FBI agent that he was still employed by the U.S. government but said he was on a temporary assignment at a field location. Dalke requested compensation via a specific type of cryptocurrency in exchange for the information he possessed and stated that he was in financial need.
To prove he had access to sensitive information, Dalke transmitted excerpts of three classified documents to the undercover FBI agent. Each excerpt contained classification markings. One excerpt was classified at the Secret level, and two excerpts were classified at the Top Secret level. In return for this information, the FBI undercover agent provided the requested cryptocurrency to an address Dalke provided.
On or about Aug. 26, 2022, Dalke requested $85,000 in return for additional information in his possession. Dalke also told the FBI undercover agent that he would share additional information in the future, once he returned to the Washington, D.C., area. Although he was not employed by the NSA while communicating with the FBI, Dalke re-applied to the NSA in August 2022.
Dalke agreed to transmit additional information using a secure connection set up by the FBI at a public location in Denver. On Sept. 28, at that location, the FBI arrested Dalke based on a signed criminal complaint.
Dalke is charged by criminal complaint alleging three violations of the Espionage Act, which makes it a crime to transmit or attempt to transmit NDI to a representative of a foreign nation with intent or reason to believe that information could be used to the injury of the United States or to the advantage of a foreign nation. The Espionage Act carries a potential sentence of death or any term of years up to life.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Cole Finegan for the District of Colorado; Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office and Acting Special Agent in Charge Cheryl Mimura of the FBI Denver Field Office made the announcement.
Assistant U.S. Attorneys Julia K. Martinez and Jena R. Neuscheler for the District of Colorado, and Trial Attorneys Christina A. Clark and Adam L. Small of the National Security Division’s Counterintelligence and Export Control Section are prosecuting on behalf of the government. The case is being investigated by the FBI Denver Field Office and the FBI Washington Field Office.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Missouri Health Care Charity Executives Plead Guilty to Multimillion-Dollar Bribery and Embezzlement SchemeRead the Press Release
Two former executives of a Springfield, Missouri-based charity pleaded guilty yesterday to their roles in a multimillion-dollar public corruption scheme that involved embezzlement and bribes paid to multiple elected public officials in the state of Arkansas.
According to court documents, Bontiea Bernedette Goss, 63, and her husband, Tommy “Tom” Ray Goss, 66, were high-level executives at Preferred Family Healthcare Inc., a charity that provided a variety of services to individuals in Missouri, Arkansas, Kansas, Oklahoma, and Illinois, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. In exchange for the bribes and kickbacks offered and paid by the Gosses and other co-conspirators, elected state officials in Arkansas provided favorable legislative and official action for the charity, including, but not limited to, directing funds from the state’s General Improvement Fund (GIF).
Under the terms of their respective plea agreements, the Gosses must forfeit to the government up to $4.3 million as determined by the court at their sentencing.
Bontiea Goss pleaded guilty to conspiracy to pay bribes and kickbacks to elected public officials in Arkansas. Tom Goss pleaded guilty to participating in the conspiracy by embezzling funds from the charity, as well as by paying bribes and kickbacks to elected public officials in Arkansas. Tom Goss also pleaded guilty to one count of aiding and assisting in the preparation and presentation of a false tax return. Bontiea Goss faces up to five years in federal prison without parole. Tom Goss faces up to eight years in federal prison without parole. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Earlier this year, Preferred Family Healthcare agreed to pay more than $8 million in forfeiture and restitution to the federal government and the state of Arkansas under the terms of a non-prosecution agreement, which acknowledges the criminal conduct of its former officers and employees.
Several former executives from the charity, former members of the Arkansas state legislature, and others have pleaded guilty in federal court as part of the long-running, multi-jurisdiction, federal investigation including the following:
- Former Chief Executive Officer, Marilyn Luann Nolan of Springfield, Missouri, pleaded guilty in November 2018 to her role in a conspiracy to embezzle and misapply the funds of a charitable organization that received federal funds.
- Former Director of Operations and Executive Vice President Robin Raveendran, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit bribery concerning programs receiving federal funds.
- Former executive and head of clinical operations Keith Fraser Noble, of Rogersville, Missouri, pleaded guilty in September 2019 to concealment of a known felony.
- Former employee and head of operations and lobbying in Arkansas, Milton Russell Cranford, aka Rusty, of Rogers, Arkansas, was sentenced to seven years in federal prison without parole after pleading guilty to one count of federal program bribery.
- Political consultant Donald Andrew Jones, aka D.A. Jones, of Willingboro, New Jersey, pleaded guilty in December 2017 to his role in a conspiracy from April 2011 to January 2017 to steal from an organization that receives federal funds.
- Former Arkansas State Senator Jeremy Hutchinson, of Little Rock, Arkansas, pleaded guilty in June 2019 to conspiracy to commit federal program bribery.
- Former Arkansas State Representative Eddie Wayne Cooper, of Melbourne, Arkansas, pleaded guilty in February 2018 to conspiracy to embezzle more than $4 million from Preferred Family Healthcare.
- Former Arkansas State Senator and State Representative Henry “Hank” Wilkins IV pleaded guilty to conspiracy to commit federal program bribery and devising a scheme and artifice to defraud and deprive the citizens of the state of Arkansas of their right to honest services.
Senior Litigation Counsel Marco A. Palmieri and Trial Attorney Jacob Steiner of the Criminal Division’s Public Integrity Section; Supervisory Assistant U.S. Attorney Randall Eggert and Assistant U.S. Attorney Shannon T. Kempf for the Western District of Missouri; Assistant U.S. Attorney Stephanie Mazzanti for the Eastern District of Arkansas; and Assistant U.S. Attorney Steven M. Mohlhenrich for the Western District of Arkansas are prosecuting the separate criminal cases.
IRS Criminal Investigation, FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC) investigated the cases.
This is a combined prosecution with the Criminal Division’s Public Integrity Section, the Western District of Missouri, the Eastern District of Arkansas, and the Western District of Arkansas.
Former FIFA Official Sentenced to 16 Months in Prison for Accepting Hundreds of Thousands of Dollars in BribesRead the Press Release
Earlier today, in federal court in Brooklyn, Reynaldo Vasquez, the former president of the El Salvadorean soccer federation (“the Federation”) was sentenced by United States District Judge Pamela K. Chen to 16 months’ imprisonment in connection with over $350,000 in bribes that he and other soccer officials from El Salvador received from an American company in exchange for the sale of broadcast rights to the El Salvador soccer team’s World Cup qualifier and friendly matches. Vasquez pleaded guilty to racketeering conspiracy in August 2021. The defendant was indicted in November 2015 and extradited to the United States from El Salvador in 2021. As part of his plea agreement, Vasquez had previously agreed to forfeit $360,000 to the government.
Breon Peace, United States Attorney for the Eastern District of New York, announced the sentence.
“The defendant and his co-conspirators, motivated by greed, disgraced themselves by lining their pockets with hundreds of thousands of dollars in bribes, at the expense of a beautiful sport, El Salvador’s soccer federation, and the community it served,” stated United States Attorney Peace. “Vasquez has now been held to account, like the many other corrupt soccer officials who have been exposed by the government’s investigation.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office (FBI), and the Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), for their exceptional investigative work, and the Department of Justice’s Office of International Affairs for its assistance with extradition of the defendant in this matter.
From approximately 2009 through 2011, Vasquez served as the President of the Federación Salvadoreña de Fútbol. Vasquez and his co-conspirators participated in and corrupted an enterprise comprising soccer organizing bodies and sports marketing companies. As part of his association with that enterprise, Vasquez and others solicited and received bribes and kickbacks in exchange for awarding lucrative media and marketing contracts. In 2012, Vasquez, together with other current and former officials of the federation, received approximately $350,000 in bribes in connection with the sale of media and marketing rights to El Salvador World Cup qualifying matches to be played in advance of the 2018 World Cup. This bribe payment was wired from a sports marketing company’s bank account in the United States. Vasquez ultimately received a portion of his bribe money through a wire transfer sent through the United States. In 2014 and 2015, Vasquez and others agreed to receive tens of thousands of dollars in bribes in connection with the participation of the Salvadorean national team in friendly matches to be played in the United States.
The sentence announced today is part of a long-running investigation into corruption in international soccer led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. To date, the prosecution has resulted in 27 individual guilty pleas, 4 corporate guilty pleas, and 2 convictions at trial, among other resolutions. The prosecutors in Brooklyn have received considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Money Laundering and Asset Recovery Section, and the Fraud Section, as well as from INTERPOL Washington, and various foreign governments.
Assistant United States Attorneys Kaitlin T. Farrell, Victor Zapana, Eric Silverberg, and Brian D. Morris are in charge of the prosecution.
The Defendant:
REYNALDO VASQUEZ
Age: 66
El SalvadorE.D.N.Y. Docket No. 15-CR-252 (PKC)
Former DSP Trooper Pleads Guilty to Civil Rights ViolationRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Jamal Merrell, 32, of Newark, pled guilty in federal court today after an FBI investigation revealed that Merrell, under the ruse of conducting an active fraud investigation, stole various electronic items from an international reshipping company in New Castle. Chief Magistrate Judge Mary Pat Thynge accepted the plea.
According to court documents, Merrell, a former Delaware State Police trooper, pleaded guilty to Deprivation of Rights Under Color of Law and faces a maximum penalty of 1 year in prison when sentenced on January 5, 2023. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss commented on the plea, “The defendant betrayed the public trust for personal gain. His conduct undermines the honorable law enforcement officers who protect and serve our communities every day. I commend the Delaware State Police Internal Investigations Unit for their cooperation with the FBI during this investigation.”
“Every Trooper within the Delaware State Police takes an oath to faithfully serve and protect the citizens of this great state. We are an organization that recognizes while fulfilling our sacred mission to protect and serve the public, we must also hold our own members accountable for any actions that jeopardize public trust,” said Delaware State Police Superintendent Colonel Melissa Zebley. The Delaware State Police consistently responds to and investigates all complaints of misconduct. Since the onset of this federal investigation, the Delaware State Police has worked in partnership with federal investigators. We would like to thank the community for their continued trust and patience as this investigation unfolded. We will continue to provide the professional, competent, and compassionate law enforcement services that our communities deserve.”
"Today’s guilty plea represents FBI's commitment to investigating these cases" stated Baltimore FBI Special Agent in Charge, Thomas J. Sobocinski. "Our partnership, shared expertise, intelligence, and investigative practices will help dissuade police misconduct more effectively and reinforce public confidence in the great work done by our law enforcement officers."
The FBI and the Delaware State Police Internal Investigations Unit investigated the case. Assistant U.S. Attorney Kevin P. Pierce is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.