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28 September 2022
Pleasant Hills Man Pleads Guilty to Social Security FraudRead the Press Release
PITTSBURGH - One resident of Pleasant Hills, Pennsylvania, pleaded guilty in federal court to a charge of Social Security fraud, United States Attorney Cindy K. Chung announced today.
Michael T. Onder, 53, of Pleasant Hills, Pennsylvania pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that from in and around July 2010 and continuing thereafter to in and around February 2016, Onder was the representative payee designated to receive Supplemental Security Income (SSI) benefits totaling $30,854.68 for the use and benefit of another person, but instead knowingly and willfully converted the benefits for his own use.
Judge Colville scheduled sentencing for February 7, 2022, at 11:00 a.m. The law provides for a total sentence of not more than 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Charles A. Eberle is prosecuting this case on behalf of the government.
The Social Security Administration – Office of Inspector General conducted the investigation that led to the prosecution of Michael T. Onder.
Pittsburgh Felon Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, United States Attorney Cindy K. Chung announced today.
The two-count Indictment, returned yesterday, named Cecil Lee Pinnix, 53, formerly of the City’s Upper Hill District neighborhood, as the sole defendant.
According to the Indictment, Pinnix is alleged to have possessed with the intent to distribute 5 kilograms or more of cocaine, 40 grams or more of fentanyl, and 28 grams or more of cocaine base on or about July 29, 2022. Pinnix is also alleged to have possessed a firearm as a convicted felon on or about July 29, 2022.
The law provides for a maximum total sentence of life in prison, a fine of $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Drug Enforcement Agency and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Man Admits Role in Drug Trafficking OrganizationRead the Press Release
CAMDEN, N.J. – A manager for a drug trafficking organization that purchased over 100 kilograms of cocaine in Puerto Rico and shipped the kilograms to residences in Philadelphia, Pennsylvania, and southern New Jersey today admitted his role in the conspiracy, U.S. Attorney Philip R. Sellinger announced.
Jose Gonzalez, 50, Philadelphia, pleaded guilty before U.S. District Judge Christine P. O’Hearn in Camden federal court to an information charging him with one count of conspiring to distribute five kilograms or more of cocaine.
According to documents filed in this case and statements made in court:
From March 2019 to August 2020, Gonzalez and other conspirators traveled on commercial flights from Philadelphia International Airport to San Juan, Puerto Rico, on numerous occasions. They purchased multi-kilogram quantities of cocaine from wholesale drug suppliers based in the San Juan area in exchange for cash payments. Gonzalez and the other conspirators then shipped the kilograms of cocaine by overnight delivery from U.S. Post Offices in San Juan to addresses in Philadelphia and southern New Jersey. Gonzalez resold the kilograms to other drug dealers in the Philadelphia area for a profit. Gonzalez admitted that he had a management role in the conspiracy, and that he and the other conspirators purchased and shipped over 100 kilograms of cocaine.
When Gonzalez was arrested in August 2020, agents seized over $120,000 in cash during a search of his residence in Philadelphia and a 9mm handgun from an auto garage that Gonzalez operated in Philadelphia. As part of his plea agreement, Gonzalez agreed to the forfeiture of the U.S. currency and the 9mm handgun, as well as the forfeiture of a Dodge Ram pickup truck that was used in connection with the drug trafficking conspiracy.
The drug-trafficking conspiracy charge carries a mandatory penalty of 10 years in prison, a maximum potential penalty of life in prison, and a maximum fine of $10 million. Sentencing is scheduled for Jan. 30, 2023.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Acting Inspector in Charge Raimundo Marrero; agents of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office, under the leadership of Special Agent in Charge Matthew Modafferi; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge James E. Dennehy in Newark; special agents of the FBI, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; troopers assigned to the New Jersey State Police Strategic Investigations Unit South, under the direction of Col. Patrick J. Callahan; and officers and detectives of the Philadelphia Police Department, under the direction of Police Commissioner Daniel Outlaw, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
Oneida County Man Pleads Guilty to Mailing a Threatening LetterRead the Press Release
ALBANY, NEW YORK – Richard Hileman, age 39, of Marcy, New York, pled guilty today to mailing a threatening communication. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
In pleading guilty, Hileman admitted that on September 3, 2021, he mailed a letter to a woman who lived in Ballston Spa, New York. In the letter, Hileman threatened the woman not to end her personal relationship with him. Hileman wrote, in part, “i have 2 different guns and a vest . . .” and “i told you before if you left me someone will pay people dont really know me once I set my mind it’s set if you contact anyone it will not be nice.” Hileman further wrote, in part, “. . . if you contact the jail or police your lovely kids wont have a mother i swear on my dead son they cant keep me forever I’ll get out one day.”
Hileman faces a maximum term of 5 years in prison, as well as post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and the New York State Department of Corrections and Community Supervision’s Office of Special Investigation, and is being prosecuted by Assistant U.S. Attorney Rick Belliss.
Ocean View Woman Sentenced to 51 Months Imprisonment in Federal Fraud CaseRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that Joan Donald, 55, of Ocean View, was sentenced today to 51 months in federal prison on federal wire fraud and tax evasion charges. Chief U.S. District Judge Colm F. Connolly pronounced sentence.
According to court documents and statements made in open court, Donald worked as an administrative assistant and quasi-bookkeeper for Dovetail, Inc., a high-end interior design and construction business located in Bethany Beach. Beginning in at least 2014, the defendant began defrauding Dovetail and its owner by paying herself a shadow salary, paying her personal credit card bills using the business’s bank account, and funneling money to her husband in various ways, including by fraudulent checks and Square payments. In total, the defendant embezzled more than $1.1 million from Dovetail and its owner.
U.S. Attorney Weiss commented on the sentence, “The owner of Dovetail, Connie Britell, was a force of nature who built her business from the ground up. Over the years, Ms. Britell placed more and more trust in the defendant, eventually giving the defendant control over company finances. The defendant abused that trust. Month after month for at least seven years, defendant Donald drained Dovetail’s accounts until there was nothing left. In doing so, the defendant exploited an elderly woman in declining health who had placed full faith in her. The defendant’s conduct was not only criminal, it was also cruel. Today’s sentence stands as a stark warning to those who prey on the elderly.”
"Justice has been served today and this defendant is on her way to federal prison for stealing from her employer, the American public, and the government,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Would-be criminals should take notice. A similar fate awaits anyone thinking about engaging in this type of criminal conduct.”
“Today’s sentence has put an end to Joan Donald’s flagrant actions and complete disrespect of the law. For years Donald was a trusted insider who preyed on her employer by stealing funds to financially enrich herself” stated Baltimore FBI Special Agent in Charge, Thomas J. Sobocinski. “Those who abuse their position of trust for their own financial greed will not be tolerated. The FBI and our partners will continue to uncover those committing fraud and causing harm to businesses and individuals for personal gain.”
Assistant U.S. Attorney Christopher R. Howland prosecuted the case, which was investigated by the FBI and IRS Criminal Investigation.
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 by searching for Case No. 22-cr-18-RGA.
New Haven Man Pleads Guilty to Fentanyl Trafficking ChargeRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, today announced that ROY REID, also known as “Jama,” 34, of New Haven, pleaded guilty yesterday before U.S. District Judge Sarala V. Nagala in Hartford to a fentanyl trafficking offense.
According to court documents and statements made in court, in the fall of 2021, the New Haven Safe Streets/Gang Task Force and New Haven Police Department began investigating a drug trafficking ring that was distributing fentanyl, heroin crack and cocaine in and around the West Hills neighborhood, including the McConaughy Terrace housing complex, in New Haven. The investigation included court-authorized wiretaps, fixed video surveillance and controlled purchases of narcotics. Between June 2021 and January 2022, investigators made five controlled purchases of fentanyl from Reid.
Reid pleaded guilty to one count of possession with intent to distribute, and distribution, of fentanyl, which carries a maximum term of imprisonment of 20 years. Judge Nagala scheduled sentencing for December 20.
Reid was arrested on a federal criminal complaint on April 5, 2022. He is released on a $150,000 bond pending sentencing.
In November 2013, Reid was sentenced in New Haven federal court to 26 months of imprisonment for a heroin trafficking offense.
This investigation is being conducted by the FBI’s New Haven Safe Streets/Gang Task Force with the assistance of the U.S. Postal Inspection Service. The Task Force includes participants from the New Haven Police Department, Milford Police Department, East Haven Police Department, West Haven Police Department, Connecticut State Police and the Connecticut Department of Correction.
This case is being prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan and Kenneth L. Gresham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Nacogdoches Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Nacogdoches man has been sentenced for federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Travis Lane Favro, 47, pleaded guilty on Nov. 4, 2021, to being a felon in possession of a firearm and was sentenced to 80 months in federal prison today by U.S. District Judge Michael Truncale.
According to information presented in court, on Oct. 16, 2019, law enforcement officers responded to a home in Nacogdoches where Favro had reportedly threatened to kill his parents. The officers went next door to Favro’s residence and found him barricaded inside. After a brief standoff, Favro surrendered and was arrested. Officers searched the residence and found a rifle and a shotgun as well as two homemade silencers. One of the silencers was attached to the rifle, which found near two large capacity magazines: one 60-round drum magazine and one 30-round magazine. The officers also discovered that one interior wall of the house was fortified with concrete blocks and gunports that opened to the outside. There was also a large television nearby that monitored multiple cameras placed outside the residence. Further investigation revealed Favro was a convicted felon having been previously found guilty in state court of felon in possession of a firearm and possession of a controlled substance. As a convicted felon, Favro is prohibited by federal law from owning or possessing firearms or ammunition. Favro was indicted on federal firearms violations on Nov. 6, 2019.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Nacogdoches Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives and prosecuted by Assistant U.S. Attorney John B. Ross.
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Moorhead Felon Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS– A Moorhead man has pleaded guilty to illegally possessing a firearm, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on March 13, 2022, Martin Torres, Jr., 37, was arrested by the Clay County Sheriff’s Office after attempting to flee a traffic stop and resisting arrest. Following his arrest, officers conducted a search and found a loaded Hi-Point Model C-9, 9mm caliber pistol in Torres’s jacket. Because Torres has prior felony convictions in Clay County, Minnesota, Cass County, North Dakota, and U.S. District Court, he is prohibited under federal law from possessing firearms or ammunition at any time.
Torres pleaded guilty yesterday before Senior Judge Michael J. Davis to one count of possessing a firearm as a felon. A sentencing hearing has not yet been scheduled.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Clay County Sheriff’s Office.
Special Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Monongalia County man sentenced for role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Harry Anderson Sprouse, III, of Maidsville, West Virginia, was sentenced today to 12 months of incarceration for his role in a firearms conspiracy, United States Attorney William Ihlenfeld announced.
Sprouse, 53, pleaded guilty in May 2022 to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of Firearms.” Sprouse admitted to working with another to illegally purchase two pistols from a licensed dealer in December 2020 in Marion County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Michigan Farmer Agrees to $1.2 Million Settlement to Resolve Allegations of Federal Crop Insurance and Farm Benefit Program FraudRead the Press Release
GRAND RAPIDS – Gaylord D. Lincoln and G. Lincoln Farms, LLC, located in Springport, Michigan, have agreed to pay $1,200,000 to resolve allegations that they violated the False Claims Act by causing the submission of fraudulent claims for federal crop insurance and federal farm benefit payments. The settlement amount was negotiated based on the defendants’ ability to pay.
U.S. Attorney Mark Totten stated, “Michigan farmers depend on federal programs to provide economic security, and these agricultural programs are essential to the national wellbeing. But, in turn, USDA relies on farmers to tell the truth and play by the rules. My office is committed to working with our law enforcement partners to root out fraud on these programs.”
This settlement resolves civil claims the United States brought against the defendants in a December 2021 lawsuit. In its complaint, the United States alleged that the defendants defrauded the U.S. Department of Agriculture’s (“USDA”) Farm Service Agency (“FSA”) by operating a scheme to avoid benefit program payment limitations. Specifically, the United States alleged that the defendants placed their farmland and crops in the names of their employees, who served as a facade for defendants but had no financial risk or interest in the crops and had them enroll in FSA benefit programs. These individuals then provided the FSA benefit payments to the defendants. The United States further alleged that defendants caused these individuals to take out fraudulent federal crop insurance policies for these crops, even though they had no insurable interest in these crops, and that the proceeds of the policies went to the defendants.
Shantel R. Robinson, Special Agent-In-Charge, United States Department of Agriculture-Office of Inspector General (“USDA-OIG”), said, “The United States Department of Agriculture is committed to combatting crop insurance fraud through civil enforcement under the False Claims Act. Fraudulent activity within the crop insurance program undermines its intent and misdirects taxpayer dollars from where they were intended. The United States Department of Agriculture, Office of Inspector General will continue its mission to investigate allegations of waste, fraud, and abuse in USDA programs.”
This settlement follows a related March 2022 civil settlement with the insurance agent and insurance agency that worked with the defendants.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Western District of Michigan, USDA-OIG, and USDA’s Risk Management Agency. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The complaint and other filings in this case can be found on the Court’s online docket under United States v. Lincoln, No. 1:21-cv-1089 (W.D. Mich.).
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Leader of Oxycodone Distribution Network Sentenced for Decade-Long ConspiracyRead the Press Release
ALEXANDRIA, Va. – A Front Royal woman was sentenced today to seven years in prison for being the ringleader of a decade-long oxycodone distribution network, sourcing high-dosage oxycodone pills from a doctor in Arlington.
According to court documents, Candie Marie Calix, 40, nominally worked as an office manager for a physician in Arlington, referred to in court records as Doctor-1. Between 2012 and 2022, Doctor-1 prescribed Calix nearly 40,000 oxycodone 30-mg pills and more than 9,000 oxycodone 15-mg pills. Doctor-1 also prescribed similar quantities of oxycodone 30-mg and 15-mg pills to Calix’s relatives, including her mother, grandparents, great-grandmother, brother, and husband. These quantities were far in excess of therapeutic doses, and Calix personally distributed or directed others to distribute most of the pills that Doctor-1 prescribed to Calix and her family members.
Calix functioned as the gatekeeper to Doctor-1; she recruited individuals she knew from around Front Royal to be “patients” of Doctor-1 and obtain large quantities of oxycodone. These “patients,” in turn, typically kicked back the oxycodone 30-mg pills they were prescribed to Calix to redistribute, and kept the oxycodone 15-mg pills for their own use. Calix recruited at least 12 individuals to be “patients” of Doctor-1—even though she knew them to be addicted to opiates already.
Calix and her co-conspirators used coded language to refer to the pills they distributed, for example, referring to oxycodone 30-mg pills as “tickets,” “blueberries,” or “muffins.” The co-conspirators typically sold oxycodone 30-mg pills at a cost of $25 per pill, and over the course of the conspiracy, generated at least $5,000 per month in profits. Calix agreed to entry of a money judgment of more than half a million dollars representing the proceeds of the conspiracy that she realized.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Katherine E. Rumbaugh prosecuted the case.
The case was investigated as part of the Organized Crime Drug Enforcement Task Forces (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to the federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principle mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:22-cr-115.
Lawrence Man Sentenced for Identity Theft and Social Security OffenseRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for misusing a Social Security number to fraudulently obtain a Massachusetts ID and driver’s license as well as MassHealth benefits.
Manuel Alejandro Pujols Diaz, 37, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 25 months in prison. On May 16, 2022, Pujols pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft.
Pujols used the name and Social Security number of another individual to submit fraudulent applications to the Massachusetts Registry of Motor Vehicles in July 2016, August 2016 and September 2016. As a result, Pujols obtained a Massachusetts ID and driver’s license under the victim’s identity as well as MassHealth benefits.
United States Attorney Rachael S. Rollins; Matthew Millhollin, Special Agent in Charge of Homeland Security Investigations in New England; and Christopher A. Scharf, Special Agent in Charge of the U.S. Department of Transportation, Office of Inspector General, made the announcement today. The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Rollins’ Public Corruption & Special Prosecutions Unit, prosecuted the case.
Kidnappers get huge sentences for three-day hostage ordealRead the Press Release
LAREDO, Texas – Two men have been ordered to federal prison following their convictions of kidnapping and holding four victims for ransom, announced U.S. Attorney Jennifer B. Lowery.
Jesus Ochoa, 27, Laredo, pleaded guilty March 2, while Luis Armando Garcia, 29, a Mexican citizen illegally residing in Laredo, pleaded guilty Feb. 28.
Today, U.S. District Judge Diana Saldana imposed a 186-month-term of imprisonment for Ochoa, while Garcia received 192 months. Garcia is expected to face removal proceedings following his sentence. At the hearing, the court heard from four victims who described what the two men put them through and the psychological impact the kidnapping had on them. In handing down the prison terms, Judge Saldana noted the violent nature of the offense and the defendants’ general lack of respect for the lives of others.
On Nov. 19, 2020, Ochoa and Garcia encountered four individuals who crossed the Rio Grande in Laredo and offered them a ride to San Antonio in exchange for payment.
They traveled to Garcia’s residence in Laredo, but actually told the group they were in San Antonio. They then forced all four individuals to call their family members and ask them to send $4,000 each for their release.
They held the group hostage at the residence for three days. During that time, they threatened each person with a firearm and repeatedly forced them to record videos and voice messages, make video calls, send text messages and call family members to beg for ransom money. On several occasions, Ochoa and Garcia directly spoke to the family members and told them if payment was not made, something would happen to the hostages.
Ultimately, family members contacted authorities who were able to obtain the general location from where the phone calls originated.
After noticing law enforcement, Ochoa and Garcia loaded the group back into a vehicle and transported them to an industrial park in Laredo. They dropped off the group and said they would return at a later time.
The victims were able to borrow a phone from a nearby truck driver and called for help. Authorities found all four individuals and transported them to safety.
Both will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and the Laredo Police Department conducted the investigation. Assistant U.S. Attorney Michael Makens prosecuted the case.
Kevin Ritz Sworn in as United States AttorneyRead the Press Release
Kevin Ritz United States Attorney Western District of TennesseeMemphis, TN – Kevin G. Ritz was sworn in September 28, 2022, as United States Attorney for the
Western District of Tennessee. In a brief ceremony at the federal courthouse in Memphis, Chief
U.S. District Court Judge S. Thomas Anderson administered the oath of office, in front of
Ritz’s family and U.S. Attorney’s Office colleagues. Ritz was nominated by President Joe Biden on
July 29, 2022, and he was unanimously confirmed by the United States Senate on September 22, 2022.
As United States Attorney, Kevin is the chief federal law enforcement officer in West Tennessee.Ritz stated: “It is an honor to lead the office where I have worked for 17 years. I’ve dedicated my career to serving the United States, and I can’t wait to start this next chapter. I want to thank President Biden for nominating me, the Senate for confirming me, and Congressman Cohen for recommending me for this position.”
“I look forward to working with my colleagues and our partners to promote and defend the interests of our country throughout the 22 counties of West Tennessee. We have a lot of work to do, and I’m ready to get going.”
Kevin G. Ritz is a Memphian who has dedicated his entire career to federal public service. He has been an Assistant United States Attorney in the United States Attorney’s Office for the Western
District of Tennessee since 2005. He started in the narcotics unit prosecuting drug, firearm, robbery, carjacking, and other offenses. He later held various leadership positions in the office, including serving as Appellate Chief and Special Counsel for over a decade. He has written more than 200 appellate briefs and argued 37 cases in the federal courts of appeals.Ritz has twice served on the Department of Justice’s Appellate Chiefs Working Group. From 2020 to
2021, he was the Chair of the Tennessee Bar Association’s Appellate Practice Section, and in 2017
Ritz was the President of the Federal Bar Association’s Memphis Chapter. From 2008 to 2016, Ritz was an Adjunct Professor at the University of Memphis Cecil C. Humphreys School of Law.Before his tenure in the U.S. Attorney’s Office, Ritz clerked for Judge Julia S. Gibbons of the
United States Court of Appeals for the Sixth Circuit. Between college and law school, Mr. Ritz worked for the United States Department of State.Mr. Ritz received his J.D. from the University of Virginia, his M.S. in Foreign Service from
Georgetown University, and his B.A. with High Distinction from the University of Virginia, where he was a Jefferson Scholar. He is a product of Memphis City Schools and graduated from White Station
High School. He and his family live in midtown Memphis.
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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.
Kenton County Woman Sentenced to 28 Months for Wire FraudRead the Press Release
COVINGTON, Ky. —An Independence, Ky., woman, Hachelle Alsip, 42, was sentenced on Wednesday to 28 months in federal prison, by U.S. District Judge David Bunning, for wire fraud.
According to Alsip’s plea agreement, in 2016, Victory Mortgage hired her as a loan funding representative to assist, in part, with distribution of funds with loans provided by the lending company to its borrowers. In 2021, Alsip caused two wire transfers totaling $507,000 to be made from one of Victory Mortgage’s business checking accounts, into a personal bank account belonging to her and her husband.
Alsip pleaded guilty in June 2022.
Under federal law, Alsip must serve 85 percent of her prison sentence. Upon her release from prison, she will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office; and Sheriff Michael Helmig, Boone County Sheriff’s Office, jointly announced the sentence.
The investigation was conducted by the FBI and the Boone County Sheriff’s Office. The United States was represented by Assistant U.S. Attorney Kyle Winslow.
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Justice Department Will Award $57 Million to Support Justice System Reforms and Racial EquityRead the Press Release
The Department of Justice today announced that it will award almost $57 million to support criminal justice reform and advance racial equity in the criminal justice system. The grants will advance the department’s goal to promote fairness in the nation’s courts and corrections systems and align criminal justice practices with the latest science.
“Equal justice is not a self-executing proposition — it takes work to make it real — and it will take a collective commitment from all of us at the federal, state and local levels to bring that ideal to life,” said Associate Attorney General Vanita Gupta. “These investments make good on a pledge by the Justice Department to promote public safety and realize the promise of a just society that recognizes the dignity and humanity of everyone.”
Funding will support efforts at the state, territory, local and Tribal levels to institute more effective and equitable criminal justice policies and practices. Funding will also support strategies to ensure the protection of defendants’ and incarcerated individuals’ constitutional rights and safety and efforts to address wrongful convictions. The grants are administered by the department’s Office of Justice Programs.
The Department of Justice, through OJP, is working to advance equity and effectiveness in the justice system. Below is a summary of awards that support justice system reforms and advance racial equity:
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OJP’s Bureau of Justice Assistance is awarding eight million dollars under the Field Initiated: Encouraging Innovation program, designed to support new and innovative strategies that better enable criminal justice systems to prevent and respond to emerging and chronic challenges, including strategies that will increase opportunities for diversion, reform pretrial processes, build police-community trust and promote restorative justice and racial equity.
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BJA is awarding five million dollars under the National Initiatives - Justice for All: Effective Administration of Criminal Justice Training and Technical Assistance Program, which assists state, local and Tribal jurisdictions in reducing crime and improving the functioning of the criminal justice system, specifically through support for statewide strategic planning and protection of constitutional rights under the Sixth Amendment.
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BJA is awarding $9.8 million under the Justice Counts Implementation Program, which helps states adopt a core set of criminal justice metrics so that policymakers have access to actionable data to make policy and budgetary decisions.
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BJA is awarding three million dollars under its Reimagining Justice: Testing a New Model of Community Safety initiative, which will fund the development and testing of a new or innovative approach to improving community safety and trust that is an alternative to traditional enforcement mechanisms for neighborhoods experiencing high rates of less serious and low-level criminal offenses.
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OJP’s Office for Victims of Crime is awarding nearly $300,000 under the Developing Greater Understanding of the Needs of and Resources for Victims of Criminal Justice System-Related Harm program to better understand the service needs of persons affected by a criminal justice system error or failure, develop best practices to identify these victims, determine whether services currently exist that can meet the needs of this victim population and offer recommendations for appropriate service delivery, resources, partnerships and tools.
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OVC is awarding five million dollars under the Bridging Inequities - Legal Services and Victims' Rights Enforcement for Underserved Communities program to increase access to legal assistance for victims of crime in underserved communities by building and training a cadre of 20 legal fellows to be hosted by organizations across the nation and located in underserved communities.
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OVC is awarding $4.9 million under the Enhancing Access to Victim Services program to improve and expand the availability of accessible victim-centered, trauma-informed services for crime victims who are disabled, deaf, hard-of-hearing, limited English proficient, blind and/or visually impaired; fund accessible direct services for these victims; provide dedicated training and technical assistance to assist victim-serving organizations with the development and implementation of accessibility plans; and identify innovative approaches to serving these victims for replication within the field.
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OVC is awarding two million dollars to Ujima to support the National Center on Violence Against Women in the Black Community, which will provide microgrants to victim-serving organizations run by/for the communities they serve with the overarching goal of increasing the number of victims accessing services in historically marginalized and underserved communities.
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OJP’s National Institute of Justice is awarding almost $800,000 under its Racial and Ethnic Disparities in the Justice System: A Study of Existing Evidence and Public Policy Implications program, which will support a comprehensive evidence-based analysis of existing evidence to examine how observed racial and ethnic disparities in the justice system might be reduced through public policy.
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BJA is awarding $2.9 million under the National Training and Technical Assistance: Capital Case Litigation Initiative, which helps states minimize the potential for error in the trial of capital cases, improve the quality of legal representation provided to indigent defendants in state capital cases and support state prosecutors in developing and implementing appropriate standards of practice and qualifications.
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BJA is awarding $7.6 million under its Upholding the Rule of Law and Preventing Wrongful Convictions Program, which supports efforts by wrongful conviction review entities that represent individuals with post-conviction claims of innocence to review individual cases.
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BJA is awarding $6.5 million under the Postconviction Testing of DNA Evidence program, which helps defrays costs associated with postconviction case review, evidence location and DNA testing in violent felony cases (as defined by state law) where the results of such testing might show actual innocence.
In addition to the awards described above, Atlanta’s Clark University received $1.2 million under NIJ’s Research and Evaluation on Violence Against Women portfolio to conduct a campus climate survey at three Historically Black Colleges and Universities. NIJ has also awarded $2.7 million in grants under the W.E.B. Du Bois Program of Research on Reducing Racial and Ethnic Disparities in the Justice System to perform rigorous research that will help build knowledge about the connections between race, crime, violence and the administration of justice in the United States. Those grants were announced earlier and are not included in the total for this announcement.
More information about these and other OJP awards can be found on the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Justice Department Secures Agreement with Lakeland Bank to Address Discriminatory RedliningRead the Press Release
The Justice Department announced today an agreement to resolve allegations that Lakeland Bank (Lakeland) engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey. This resolution is part of the Justice Department’s nationwide Combating Redlining Initiative and represents the third-largest redlining settlement in department history.
“Financial institutions that refuse to provide mortgage lending services to communities of color not only contribute to the persistent racial wealth gap that exists in this country, but also violate federal law,” said Attorney General Merrick B. Garland. “The agreement with Lakeland announced today represents the Justice Department’s continued commitment to addressing modern-day redlining, and to ensuring that all Americans have equal opportunity to obtain credit, no matter their race or national origin.”
“Ending redlining is a critical step in our work to close the widening gaps in wealth between communities of color and others,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement demonstrates our firm commitment to combating modern day redlining and holding banks and other lenders accountable when they deny people of color equal access to lending opportunities. Through this agreement, we are sending a strong message to the financial industry that we will not stand for discriminatory and unlawful barriers in residential mortgage lending.”
“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “It is wholly unacceptable that redlining persists into the 21st Century, and this case demonstrates our commitment to combating redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending.”
Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities. The complaint filed in federal court today alleges that from at least 2015 to 2021, Lakeland failed to provide mortgage lending services to Black and Hispanic neighborhoods in the Newark, New Jersey, metropolitan area, that all its branches were located in majority-white neighborhoods and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Newark.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the District of New Jersey along with a complaint, Lakeland has agreed to do the following:
- Invest at least $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area; $750,000 for advertising, outreach and consumer education; and $400,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
- Open two new branches in neighborhoods of color, including at least one in the city of Newark; ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark; and employ a full-time Community Development Officer who will oversee the continued development of lending in neighborhoods of color in the Newark area.
- Maintain an expanded Community Reinvestment Act Assessment Area that includes Essex, Somerset and Union counties.
Lakeland has agreed to settle this matter without contested litigation and worked cooperatively with the department to remedy the redlining concerns that were identified.
In October 2021, Attorney General Merrick B. Garland launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state Attorneys General offices. Since the initiative was launched, the department has announced four redlining cases and settlements with a combined $38 million in relief for communities that have been the victims of lending discrimination. This includes the $20 million settlement with Trident Mortgage Company — the second largest settlement in Justice Department history.
Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. 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. Individuals may also report civil rights violations through https://www.justice.gov/usao-nj/civil-rights-enforcement or call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339. View the Spanish translation of this press release here.
Justice Department Secures Agreement with Lakeland Bank to Address Discriminatory RedliningRead the Press Release
To view press conference, click here.
NEWARK, N.J. – The U.S. Attorney’s Office for the District of New Jersey and Justice Department announced today an agreement to resolve allegations that Lakeland Bank engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey. This resolution is part of the Justice Department’s Combatting Redlining Initiative and represents the third-largest redlining settlement in department history.
“Financial institutions that refuse to provide mortgage lending services to communities of color not only contribute to the persistent racial wealth gap that exists in this country, but also violate federal law,” Attorney General Merrick B. Garland said. “The agreement with Lakeland announced today represents the Justice Department’s continued commitment to addressing modern-day redlining, and to ensuring that all Americans have equal opportunity to obtain credit, no matter their race or national origin.”
“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated,” U.S. Attorney Philip R. Sellinger said. “It is wholly unacceptable that redlining persists into the 21st Century, and this case demonstrates our commitment to combatting redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending.”
“Ending redlining is a critical step in our work to close the widening gaps in wealth between communities of color and others,” Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division said. “This settlement demonstrates our firm commitment to combatting modern day redlining and holding banks and other lenders accountable when they deny people of color equal access to lending opportunities. Through this agreement, we are sending a strong message to the financial industry that we will not stand for discriminatory and unlawful barriers in residential mortgage lending.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of the residents in those communities. The complaint filed in federal court today alleges that, from at least 2015 to 2021, Lakeland failed to provide mortgage lending services to Black and Hispanic neighborhoods in the Newark metropolitan area, that all its branches were located in majority-white neighborhoods, and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Newark.
Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the District of New Jersey along with a complaint, Lakeland has agreed to do the following:
- Invest at least $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area; $750,000 for advertising, outreach and consumer education; and $400,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
- Open two new branches in neighborhoods of color, including at least one in the city of Newark; ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark; and employ a full-time Community Development Officer who will oversee the continued development of lending in neighborhoods of color in the Newark area.
- Maintain an expanded Community Reinvestment Act Assessment Area that includes Essex, Somerset and Union counties.
Lakeland has agreed to settle this matter without contested litigation and worked cooperatively with the department to remedy the redlining concerns that were identified.
In October 2021, Attorney General Merrick B. Garland launched the Justice Department’s Combatting Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state attorneys general offices. Since the initiative was launched, the department has announced four redlining cases and settlements with a combined $38 million in relief for communities that have been the victims of lending discrimination. This includes the $20 million settlement with Trident Mortgage Company—the second largest settlement in Justice Department history.
Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. 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. Individuals may also report civil rights violations through the https://www.justice.gov/usao-nj/civil-rights-enforcement or may call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Civil Rights Division, Assistant U.S. Attorney Susan Millenky of the U.S. Attorney’s Office’s Civil Rights Division, and Trial Attorney Jennifer Slagle Peck, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
Justice Department Announces Total Distribution of over $4 Billion to Victims of Madoff Ponzi SchemeRead the Press Release
The Department of Justice announced today that the Madoff Victim Fund (MVF) began its eighth distribution of approximately $372 million in funds forfeited to the U.S. government in connection with the Bernard L. Madoff Investment Securities LLC (BLMIS) fraud scheme.
In this distribution, payments will be sent to 27,219 victims across the globe, bringing their total recovery to 88.35%. The total amount distributed now exceeds $4 billion to more than 40,000 victims as compensation for losses they suffered from the collapse of BLMIS.
According to court documents and information presented in related proceedings, for decades, Bernard L. Madoff used his position as chairman of BLMIS, the investment advisory business he founded in 1960, to steal billions from his clients. On March 12, 2009, Madoff pleaded guilty to 11 federal felonies, admitting that he had turned his wealth management business into the world’s largest Ponzi scheme, benefitting himself, his family, and select members of his inner circle.
“The Criminal Division is proud to continue providing compensation to victims through the largest remission process the Department has overseen,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The billions distributed worldwide is a testament to the department’s sustained efforts to ensure justice for the victims of Bernard Madoff’s massive fraud.”
“This Office continues its historic work seeking justice for the victims of Madoff’s heinous crimes,” said U.S. Attorney Damian Williams for the Southern District of New York. “Today’s additional payments of $372 million by this Office and the Criminal Division’s Money Laundering and Asset Recovery Section represents the eighth in a series of distributions that will leave victims with compensation for more than 88 percent of their losses—a truly remarkable result. But our work is not fully complete, and this Office’s tireless commitment to compensating the victims who suffered as a result of Madoff’s crimes continues.”
“The damage perpetrated by Bernard Madoff in history’s largest Ponzi scheme reverberates around the world, devastating thousands of victims,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The funds distributed today are approximately $372 million, alongside the funds distributed previously now totaling over $4 billion, showing our unwavering commitment to bringing justice to the victims of Madoff’s greedy crimes.”
On June 29, 2009, then-U.S. District Judge Denny Chin sentenced Madoff to serve 150 years in prison for running the largest fraudulent scheme in history. Of the over $4 billion that has been made available to victims, approximately $2.2 billion was collected as part of the historic civil forfeiture recovery from the estate of deceased Madoff investor Jeffry Picower. An additional $1.7 billion was collected as part of a deferred prosecution agreement with JPMorgan Chase Bank N.A. and civilly forfeited in a parallel action. The remaining funds were collected through a civil forfeiture action against investor Carl Shapiro and his family, and from civil and criminal forfeiture actions against Bernard L. Madoff, Peter B. Madoff, and their co-conspirators.
The MVF’s payouts would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, the U.S. Attorney’s Office for the Southern District of New York, and the FBI in the prosecution of Madoff’s crimes and the recovery of assets supporting the forfeiture in this case.
Former Chairman Richard Breeden of the U.S. Securities and Exchange Commission oversees the MVF in his capacity as Special Master appointed by the Justice Department to assist with the victim remission proceedings. The Department also acknowledges the continued sacrifice of numerous individuals due to the COVID-19 pandemic, who worked in challenging conditions to ensure that this distribution occurred and remained on schedule.
More information about MVF and its compensation to victims of BLMIS is available on the MVF website at www.madoffvictimfund.com, such as eligibility criteria, process updates, and frequently asked questions. Further questions may be directed to the MVF at 866-624-3670 or [email protected].
Jury Finds Merced Man Guilty of Sexual Assault in Yosemite National ParkRead the Press Release
FRESNO, Calif. — After a six–day trial, a federal jury found Ramonchito Racion, 52, of Merced, guilty today of one count of attempted sexual abuse and one count of abusive sexual contact, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Racion, who was working as a cook in Yosemite in the summer of 2019, sexually assaulted his roommate while the roommate was sleeping.
This case is the product of an investigation by the National Park Service. Assistant United States Attorneys Michael G. Tierney and Justin J. Gilio are prosecuting the case.
Racion is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Jan. 20, 2023. Racion faces a maximum statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jury Convicts MS-13 Gang Member of Kidnapping and MurderRead the Press Release
FRESNO, Calif. — On Friday, Sept. 23, 2022, a jury found Israel Alberto Rivas Gomez, 27, a citizen of El Salvador unlawfully residing in Mendota, guilty of kidnapping and murder in aid of racketeering, U.S. Attorney Phillip A. Talbert announced.
According to court documents and evidence presented at trial, Rivas Gomez was a member of La Mara Salvatrucha (MS-13), a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking. On Dec. 18, 2017, Rivas Gomez and other MS-13 gang members kidnapped a 19-year-old man in Mendota, drove him to a remote location approximately 30 minutes away, and used a knife and machete to murder him, all in furtherance of MS-13’s criminal gang enterprise.
“This conviction is the culmination of years of incredible teamwork between our federal, state, and local law enforcement partners,” said U.S. Attorney Talbert. “In August 2018, we announced the arrest of 25 individuals, including Rivas Gomez, associated with the MS-13 gang after investigators found evidence of broad criminal activity centered in and around the Central Valley town of Mendota. This defendant murdered a young man and brought untold harm to the victim’s family. The U.S. Attorney’s Office is committed to dismantling criminal enterprises like MS-13, and, equally important, to vindicating the rights of victims and seeking justice for their family members and loved ones.”
“This case highlights the importance and advantage of employing a collaborative investigative approach to disrupt MS-13’s violent activity in California’s central valley,” said Special Agent in Charge Sean Ragan of the Federal Bureau of Investigation Sacramento Field Office. “The FBI is deeply committed to mitigating the threat of violent criminal organizations nationwide and, locally, we are proud of the strong relationships we have with our law enforcement partners. Together, we can ensure a safer future for central valley families that deserve to live, work, and play without fear.”
“This verdict represents another important victory in the ongoing effort to rid our neighborhoods of violent transnational street gangs like MS-13 who terrorize our communities and commit the most heinous violent acts against their victims,” said HSI San Francisco / NorCal Special Agent in Charge Tatum King. “Bringing this criminal to justice is a direct result of the strong partnerships between HSI agents/analysts, and local and federal law enforcement officers and prosecutors who are all in this fight together. We will remain diligent in our pursuit of transnational criminal organizations that show no regard for the law or human life.”
This case is the product of an investigation by the Federal Bureau of Investigation, Homeland Security Investigations, the California Department of Justice and the California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). Assistant U.S. Attorneys Ross Pearson, Christopher D. Baker, and Kimberly Sanchez prosecuted the case.
Rivas Gomez is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on Dec. 16, 2022. Rivas Gomez faces a mandatory statutory penalty of life in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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 www.justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Iowa City Man Sentenced to Federal Prison for Failure to RegisterRead the Press Release
DAVENPORT, IA – Stephen Claude Ramond Pickett, age 46 of Iowa City, was sentenced on Monday, September 26, 2022, to 30 months in prison following his guilty plea to a charge of Failure to Register. Pickett was also ordered to serve 10 years of supervised release following his prison term.
According to court documents, Pickett was convicted of a sex offense in Illinois, which required him to register as a sex offender annually and for life under state law. Pickett knowingly completed his annual registry update with a new address in Cook County, Illinois but was issued an Iowa driver’s license with an Iowa address the next day. Given the Illinois requirement, Pickett was required to register as a sex offender in Iowa, which he never did.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Marshals Service and the Iowa Department of Public Safety, Division of Criminal Investigation investigated the case.
Indianapolis Man Sentenced to 70 Months in PrisonRead the Press Release
HAMMOND-Erasmo Martinez, 44, of Indianapolis, Indiana, was sentenced by United States District Court Chief Judge Jon DeGuilio on his plea of guilty to conspiracy to distribute more than 400 grams of fentanyl, announced United States Attorney Clifford D. Johnson.
Martinez was sentenced to 70 months in prison.
According to documents filed in the case, in March 2019, Martinez conspired with others to deliver almost four kilograms of fentanyl to an individual working with law enforcement. Martinez was also held responsible for coordinating three deliveries of ounce quantities of heroin in January 2019.
This case was investigated by the Drug Enforcement Administration Indiana High Intensity Drug Task Force Area. The case was prosecuted by Assistant United States Attorney Thomas M. McGrath.
Huntington Man Pleads Guilty to Fentanyl CrimeRead the Press Release
HUNTINGTON, W.Va. – David Anthony Wellman, 38, pleaded guilty today to distribution of fentanyl.
According to court documents and statements made in court, on December 7, 2021, Wellman sold approximately 4.8 grams of fentanyl to a confidential informant in a parking lot off of U.S. Route 60 in Huntington. Wellman admitted to selling the fentanyl and to possessing an additional 15.2 grams of fentanyl during the transaction that he also intended to sell.
Wellman is scheduled to be sentenced on January 9, 2023, and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $1 million fine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force and the West Virginia State Police.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Stephanie S. Taylor is prosecuting the case.
This case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that has sought to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-102.
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Honolulu Man Receives Seven and a Half Years in Prison for Transportation of Child PornographyRead the Press Release
HONOLULU – Today, United States District Judge Jill A. Otake sentenced Kenneth Lim, 33, of Honolulu, to seven and a half years of imprisonment and 15 years of supervised release for transportation of child pornography. Lim previously pleaded guilty to the child pornography offense on March 2, 2022.
According to documents and information presented in court, Lim admitted that, on January 6, 2019, he arrived at the Honolulu International Airport aboard a flight from Japan with thousands of sexually explicit images and videos of minor girls ranging in age from approximately six to 13 years old stored on his electronic devices. After another flight to Honolulu in December 2019, law enforcement caught Lim at the airport with additional images of child pornography on his electronic devices. Further, in his plea agreement, Lim admitted that he told federal agents he previously had been arrested in Japan in 2016, for conduct related to his online contact with over one hundred minor girls around the ages of 10 to 12 years old. He used social media applications to engage these minors and admitted to having exchanged nude images with some of them.
“Lim’s conduct demonstrates the way predators utilize social media to exploit children, as well as the fact they store the pornographic images of their victims on their electronic media,” said U.S. Attorney Clare E. Connors. “The law provides substantial prison terms for sexual exploitation of children, and it was appropriate that Lim received one in this case.”
“Child sex abuse is one of the most serious crimes HSI investigates,” said John F. Tobon, Special Agent in Charge, HSI Honolulu. “HSI is proud to work closely with our law enforcement partners to protect communities from egregious repeat offenders like Lim.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Homeland Security Investigations conducted the investigation that resulted in the charge. Assistant U.S. Attorneys Christine Olson and Rebecca A. Perlmutter prosecuted the case.
Honolulu Man Pleads Guilty to Sabotaging Former Employer’s Computer NetworkRead the Press Release
HONOLULU – Casey K. Umetsu, Sr., age 40, of Honolulu, Hawaii, pled guilty today before United States District Judge Jill A. Otake to sabotaging his former employer’s computer network. Sentencing is set for January 19, 2023.
According to court documents and information presented in court, Umetsu worked as an information technology professional for a prominent Hawaii-based financial company between 2017 and 2019. In that role, Umetsu was responsible for administering the company’s computer network and assisting other employees with computer and technology problems. As part of his guilty plea, Umetsu admitted that, shortly after severing all ties with the company, he accessed a website the company used to manage its internet domain. After using his former employer’s credentials to access the company’s configuration settings on that website, Umetsu made numerous changes, including purposefully misdirecting web and email traffic to computers unaffiliated with the company, thereby incapacitating the company’s web presence and email. Umetsu then prolonged the outage for several days by taking a variety of steps to keep the company locked out of the website. Umetsu admitted he caused the damage as part of a scheme to convince the company it should hire him back at a higher salary.
“Umetsu criminally abused the special access privileges given to him by his employer to disrupt its network operations for personal gain,” said U.S. Attorney Clare E. Connors. “Those who compromise the security of a computer network – whether government, business, or personal – will be investigated and prosecuted, including technology personnel whose access was granted by the victim.”
“This is a great example of a company partnering, and working with the FBI, to catch a former employee who sabotaged their network for their own personal gain,” said FBI Special Agent in Charge Steven Merrill. “We encourage companies to include the FBI as part of their cybersecurity incident plan so we can assist when they have a cyber incident.”
Umetsu faces a maximum sentence of 10 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
This conviction is the result of an investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Rebecca A. Perlmutter and Wayne A. Myers are handling the prosecution.
High Ranking MS-13 Leader Sentenced to Life ImprisonmentRead the Press Release
ALEXANDRIA, Va. – A White Post man was sentenced yesterday to life imprisonment for his leadership role in multiple violent crimes, including a 2017 murder in Charlottesville and two 2019 attempted murders in Prince William County.
According to court documents and evidence presented during a three-week trial of his co-defendants, Andy Tovar, 33, was the First Word or leader of the Guanacos Lil Cycos Salvatruchas (GLCS) clique of MS-13. Tovar is considered to be one of the highest-ranking MS-13 members in the United States.
In July 2017, Tovar authorized members and associates of the GLCS clique to travel from Prince William County to Charlottesville to murder an individual the GLCS clique believed was a rival gang member (Victim-1). At Tovar’s direction, on or about July 3, 2017, four members of the GLCS clique stabbed Victim-1 to death over 140 times using a machete and knives before they dumped Victim-1’s body in a river, burned his car, and fled back to Prince William County. Victim-1 was struck so hard by the machete that the machete’s handle broke. The following day, Tovar celebrated the Fourth of July with two of his co-conspirators and congratulated them on what they had done for the clique.
In March 2019, Tovar’s co-defendant, Roberto Cruz Moreno, 22, aka “Solo,” of Woodbridge, who was a “chequeo” or soldier in the GLCS clique under Tovar, picked up three other members or associates of GLCS and Victim-2 and drove them to an isolated area in Bristow. There, one associate of GLCS, using a firearm supplied by Tovar, shot Victim-2 multiple times and another associate of GLCS attempted to slit Victim-2’s throat and stabbed him because members and associates of GLCS believed Victim-2 was disrespecting MS-13. Following the attempted murder, Cruz Moreno fled the scene with the three other GLCS participants and drove them to his residence. Tovar informed MS-13 leadership in El Salvador of this attempted murder and mocked the GLCS associate who shot Victim-2 for being unable to kill Victim-2.
In April 2019, local law enforcement officers in Fairfax County found Cruz Moreno in possession of the same firearm used to shoot Victim-2, and several grams of packaged cocaine in his vehicle with three other associates of GLCS. Cruz Moreno obtained the cocaine from Tovar and had been selling the cocaine on behalf of the clique.
In July 2019, Tovar’s co-defendant, Marvin Torres, 21, aka “Trance,” of Manassas, a chequeo in GLCS, identified Victim-3 as a rival gang member living in GLCS-controlled territory, and provided photographs of Victim-3 to GLCS members, including Tovar.
On August 3 and 4, 2019, Tovar’s co-defendant Jose Rosales Juarez, aka “Gears,” 27, of Manassas, a “paro,” an entry level member of the GLCS clique, surveilled Victim-3 at a restaurant in Manassas, and discussed plans to kill Victim-3 with Tovar.
On August 12, 2019, Tovar’s co-defendant, Kevin Perez Sandoval, 21, aka “Nocturno,” of Warrenton, an “observacion”, or lower level soldier in the GLCS clique, and two members or associates of GLCS observed Victim-3 at a laundromat in Manassas and sought Tovar’s permission to kill Victim-3 at the laundromat. After Tovar granted permission, Perez Sandoval drove the two members or associates of MS-13 to retrieve a firearm, and back to the laundromat area, where Victim-3 was shot twice before Perez Sandoval drove them from the scene of the shooting. Tovar then directed his co-conspirators in evading law enforcement detection by relaying information from Torres, who was watching law enforcement at the site of the shooting, and helping the co-conspirators find new transportation and a hotel room with the assistance of Rosales Juarez.
Tovar pleaded guilty to conspiracy to commit murder in aid of racketeering activity, attempted murder in aid of racketeering activity, assault with a dangerous weapon in aid of racketeering activity, and using and discharging a firearm during a crime of violence, all in relation to Victim-3. Tovar also pleaded guilty to conspiracy to distribute cocaine and marijuana.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Derek Gordon, Acting Special Agent in Charge of the Homeland Security Investigations Washington, D.C. field office; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Frank A. Tarentino III, Special Agent in Charge of the Drug Enforcement Administration, New York Division; Colonel Sean Reeves, Chief of Albemarle County Police; Douglas W. Keen, Chief of Manassas City Police; Peter Newsham, Chief of Prince William County Police; Amy Ashworth, Commonwealth Attorney for Prince William County; and Kevin Davis, Chief of Fairfax County Police, made the announcement after sentencing by Senior U.S. District Judge Anthony J. Trenga.
Former Assistant U.S. Attorney Nicholas U. Murphy and Assistant U.S. Attorneys Nicholas J. Patterson, and Amanda Lowe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-18.
Georgia Woman Indicted on Aggravated Identity Theft and Fraud ChargesRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Kiana Fiona Alphonse (28, Covington, Georgia) with conspiracy to commit bank fraud, seven counts of bank fraud, five counts of false representation of a Social Security number (SSN), and five counts of aggravated identity theft. If convicted, Alphonse faces up to 30 years in federal prison for each count of bank fraud and conspiracy to commit bank fraud, a consecutive mandatory minimum penalty of 2 years’ imprisonment for each aggravated identity theft count, and up to 5 years in prison on each false SSN representation count.
According to the indictment, Alphonse and her co-defendant, Anthony Jermaine Robinson, obtained the personally identifiable information (PII) of multiple victims. The co-defendants then obtained counterfeit driver licenses purportedly from Washington state and Delaware. The counterfeit driver licenses contained the PII of victims, but the picture of Alphonse. Using the PII, including the SSNs of victims, the counterfeit driver licenses, and documents created for fictitious businesses, Alphonse went into multiple banks and opened business bank accounts in the name of various victims. These bank accounts were then utilized, as part of a scheme to defraud multiple victims.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Columbia County Sheriff’s Office and the United States Secret Service Jacksonville Field Office. It will be prosecuted by Assistant United States Attorney Kevin C. Frein.
Georgia Men Charged with Trafficking Dozens of Handguns into New YorkRead the Press Release
Earlier today, at the federal courthouse in Central Islip, Patrick Polidore was arraigned by United States Magistrate Judge Steven I. Locke on charges that he and co-defendant Dennis Wolfolk conspired to purchase and illegally transport into New York more than two dozen handguns. Wolfolk is in federal custody at the Robert A. Deyton Detention Facility located in Lovejoy, Georgia, and will be removed to the Eastern District of New York for arraignment on the charges at a later date.
Breon Peace, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Patrick J. Ryder, Commissioner, Nassau County Police Department (NCPD), and Anne T. Donnelly, Nassau District Attorney announced the charges.
“As alleged, these defendants illegally trafficked over two dozen guns across state lines, distributing them to street-level buyers in New York where at least 11 were then used in numerous violent crimes, including multiple shootings across Long Island,” stated United States Attorney Peace. “This office and our law enforcement partners will continue to vigorously investigate and prosecute those who exploit state and federal gun laws directly leading to deadly gun violence in our communities.”
Mr. Peace thanked the United States Attorney’s Office for the Northern District of Georgia, the ATF’s Atlanta Field Division, the Nassau County District Attorney’s Office, the Nassau County Police Department, and the Hempstead Police Department for their assistance in the investigation.
“Straw purchasers undermine federal laws and enable violent criminals to obtain firearms that destroy lives and devastate communities,” said ATF Special Agent in Charge DeVito. “This investigation was initiated by the ATF Long Island Firearms Task Force after a 2020 murder in Hempstead, NY. Evidence recovered by ATF led to Polidore. As alleged, further investigation revealed he conspired to illegally traffic approximately 27 firearms from Georgia to Long Island. ATF is on the frontline in the fight against firearms trafficking alongside our partners. We will use every resource to save lives and stop the flow of illegal guns into our communities. Thank you to our law enforcement partners, including: Nassau County Police Department’s Gang Investigation Squad, Nassau County District Attorney and Hempstead Police Department for all their work and effort.”
“The arraignment of defendant Patrick Polidore and continued investigation into defendant Dennis Wolfolk is a clear example how law enforcement working together continues to arrest and prosecute these criminals to ensure the safety of our neighborhoods. The defendants illegally transported dozens of handguns to Long Island and surrounding areas. Some of these weapons were used in the commission of multiple shootings and other violent crimes. We will continue to investigate all who break the law in order to reduce gun violence in all communities. Lastly, I would like to thank all of the investigators who assisted with this investigation for their commitment and dedication to suppressing crime,” stated NCPD Commissioner Ryder.
Nassau District Attorney Donnelly said: “Illegal firearms are flooding into Long Island every day and causing untold destruction. To date, our county law enforcement partners have seized 272 weapons in 2022. As of this date last year, that number was 193. Patrick Polidore and Dennis Wolfolk are part of that problem. These defendants allegedly conspired to purchase firearms in Georgia and trafficked those weapons to Long Island, where at least 11 of them have already been recovered at crime scenes. Stemming the flow of illegal weapons into Long Island requires great partners and I thank U.S. Attorney Breon Peace; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Nassau County Police Department for their work in bringing these alleged gun runners to justice.”
As alleged in an 11-count Indictment and detailed at Polidore’s arraignment, between October 2020 and January 2021, Polidore visited numerous federally licensed retailers and acted as the straw purchaser for approximately 27 handguns, many of which were purchased in rapid succession on the same date. For example, as alleged, on November 4, 2020, Polidore purchased six handguns at multiple locations in Georgia; on November 18, 2020, and November 23, 2020, he purchased a total of ten handguns. On federal records that document firearms transactions, Polidore falsely affirmed that he was the actual purchaser of the weapons when, in actuality, he had conspired with Wolfolk, who, as a convicted felon, was legally prohibited from possessing a firearm, to traffic the handguns to New York, where they were distributed to street-level buyers.
At least 11 of the handguns Wolfolk transported to New York have been recovered by law enforcement at crime scenes in and around Long Island. For example, shortly after Polidore’s November 4, 2020 purchase of six handguns from different retailers in Georgia, Wolfolk traveled to Long Island with the weapons. Within months, three of the firearms purchased by Polidore were recovered by police on Long Island:
- On January 13, 2021, during a traffic stop in Hempstead, New York—where Wolfolk had previously resided—three individuals, including a juvenile, were found in possession of a 9mm Ruger handgun purchased by Polidore. This gun was linked to an earlier shooting in Uniondale on November 25, 2020, in which unknown individuals fired shots at a vehicle. The shell casings from that shooting incident matched the firearm purchased by Polidore just two days earlier.
- On May 28, 2021, during a traffic stop in Patchogue, New York, police arrested an individual in possession of a .22-caliber Walther handgun purchased by Polidore.
- On October 3, 2021, police arrested an individual fleeing the scene of an armed robbery in Bethpage, New York, who was in possession of a .40-caliber Smith & Wessen handgun purchased by Polidore. This same firearm was subsequently linked to a shooting incident in Hempstead on December 16, 2020
Additionally, on December 22, 2020, police investigating the scene of a homicide in Hempstead, New York, located a gun box that had been purchased along with a .40-caliber Glock handgun by Polidore.
To date, the whereabouts of at least 16 firearms purchased by Polidore are still unknown.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Mark E. Misorek are in charge of the prosecution.
The Defendants:
PATRICK POLIDORE
Age: 32
Powder Springs, GeorgiaDENNIS WOLFOLK
Age: 29
Lovejoy, GeorgiaE.D.N.Y. Docket No. 22-CR-347 (JMA)
Franklin County Woman Admits Committing Pandemic Loan Fraud While Charged in Unrelated $727,000 EmbezzlementRead the Press Release
ST. LOUIS – A woman from Franklin County, Missouri on Wednesday admitted fraudulently applying for three Paycheck Protection Program loans while being prosecuted on an unrelated $727,000 embezzlement case.
On Aug. 3, 2020, Christen Diane Schulte pleaded guilty to two counts of wire fraud, two counts of bank fraud and one count of money laundering. She admitted embezzling funds from her employer and other individuals and entities associated with her employer. She then sought a series of delays in her sentencing.
On Wednesday, Schulte, 36, admitted that between March 22, 2021 and May 19, 2021, while awaiting that sentencing, she fraudulently applied for three PPP loans, designed to help save small businesses and jobs from economic losses due to the COVID-19 pandemic.
Schulte admitted lying on the loans when asked if she was facing or had been convicted of a felony, and when asked the same question about a felony involving fraud, bribery, embezzlement or a false statement in an application for a loan or for federal assistance.
She also lied about the gross income for the company, the “Mama Bear Cake Company.”
One application for a $13,691 loan was rejected due to her criminal history. A $13,566 loan was approved by a different financial institution. She then sought and received a “second draw” of $13,566 from that company, receiving the money on May 19, 2021.
Eight days later, Schulte was sentenced to six years and eight months in prison and ordered to pay $517,140 in the embezzlement case. She began serving that sentence on Aug. 30, 2021.
Schulte was indicted in the new case on Nov. 10, 2021. On Wednesday Schulte pleaded guilty in front of U.S. District Judge Matthew T. Schelp to three more counts of bank fraud.
She is scheduled to be sentenced December 28 and could face up to 30 years in prison on each count. She faces an additional penalty of up to ten years for committing her crimes while on pre-trial release in the embezzlement case.
The FBI investigated this case. Assistant U.S. Attorney Kyle T. Bateman is prosecuting the case.
Former prisoner transport officer convicted of civil rights offense for abusing detainees in his careRead the Press Release
WASHINGTON – Former prisoner transport officer Anthony Buntyn, 55, was convicted of a felony civil rights offense for abusing detainees in his care.
According to court documents and evidence presented at trial, Buntyn was a prisoner transport officer employed by Prisoner Transportation Services of America (PTS), a company hired by local jails and prisons throughout the country to transport people who had been arrested pursuant to out-of-state warrants and needed to be transported back to the states that had issued the warrants. Buntyn was the supervising officer on a March 2017 PTS transport that stopped in New Mexico during a cross-country trip.
“Prisoner transport officers, even those employed by private companies, must abide by our civil rights laws and protect the constitutional rights of people in their custody,” said Assistant Attorney General Clarke. “The Justice Department will continue to vigorously enforce our nation’s laws to ensure that the officers who break the law — including those who are driving the nation’s backroads in transport vans and may therefore wrongly believe they can act with impunity — are held accountable.”
“Detainees are entitled to basic human dignity,” said U.S. Attorney Uballez. “Those who are responsible for their detention, from transport personnel to law enforcement and corrections officers, have the same duty to protect the rights and safety of their charges. Any abuse of detainees or failure to provide basic necessities is a violation of that trust and a violation of the law, and it will be roundly prosecuted.”
Former PTS Agent Buntyn was convicted of depriving detainees on the transport of their constitutional right to be free from an officer’s deliberate indifference to serious health and safety risks to the detainees. Evidence at trial established that the defendant knowingly created, and otherwise subjected the detainees to, dangerous, painful, and unhealthy conditions on the transport van. Specifically, evidence at trial showed that the defendant would retaliate against detainees who complained, by handcuffing the detainees behind their backs and forcing them to remain for hours in a small segregation cage inside the van; by depriving detainees of meals and access to water while they remained in the cage; by cranking up the heat in the already-hot van in retaliation for detainees complaining that, as they passed through the southwestern desert, they were in danger of overheating; and by failing to provide the detainees with required restroom breaks, until the detainees were left with no choice but to urinate in empty bottles or on the floor.
Buntyn was acquitted of a use of force and an obstruction of justice charge.
A date for the sentencing hearing has not yet been announced.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Alexander M.M. Uballez of the District of New Mexico made the announcement.
This case was investigated by the FBI Kansas City Field Office and was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley of the District of New Mexico and Trial Attorney Laura Gilson of the Justice Department’s Civil Rights Division, with assistance from Special Litigation Counsel Samantha Trepel.
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Former bookkeeper of federally funded domestic violence shelter sentenced to prison for misusing shelter funds on personal expensesRead the Press Release
CINCINNATI – The former bookkeeper of My Sister’s House, a now-shuttered domestic violence shelter in Washington Court House, Ohio, was sentenced in U.S. District Court today to 12 months in prison for crimes related to stealing funds from the shelter.
Jaime Cardinal, 46, of Washington Court House, was arrested in July 2020.
Cardinal spent tens of thousands of dollars intended for the operation of the shelter on personal expenses, including food, a trip to Disney World and Universal Studios for her daughter, and thousands of dollars in purchases from Avon, Thirty-One and iTunes.
Between January 2014 and October 2016, Cardinal and a coconspirator misused debit cards connected to the shelter’s bank accounts to make hundreds of personal purchases at restaurants, auctions, craft stores and bowling alleys, among other places – including purchases made when few, if any, victims were living at the shelter.
For example, in March and April 2016, when no victims were in the shelter, Cardinal and the coconspirator charged more than $6,000 to the shelter’s debit cards for food at restaurants and grocery stores, car repair and fuel for personal cars, weight-loss supplements, and other personal expenses.
Due to the thefts, which totaled more than $50,000, My Sister’s House fell behind on payroll and on paying taxes. In November 2016, the shelter’s board placed all employees on administrative leave pending further investigation. The domestic violence shelter—the only such shelter in Washington Court House—never reopened.
As part of her conviction, Cardinal will pay $25,000 in restitution. She was also sentenced to two years of supervised release following her term of imprisonment.
My Sister’s House received more than $10,000 annually in federal grant funds, including grants under the Violence Against Women Act, the Family Violence Prevention and Services Act and the Victims of Crime Act. The grants are intended to be used to pay for salaries and benefits of staff and for shelter operations, including supplies and shelter maintenance.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, and the Department of Justice Office of the Inspector General announced the sentence imposed today by U.S. District Judge Matthew W. McFarland. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
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Former Prisoner Transport Officer Convicted of Civil Rights Offense for Abusing Detainees in His CareRead the Press Release
Former prisoner transport officer Anthony Buntyn, 55, was convicted of a felony civil rights offense for abusing detainees in his care.
According to court documents and evidence presented at trial, Buntyn was a prisoner transport officer employed by Prisoner Transportation Services of America (PTS), a company hired by local jails and prisons throughout the country to transport people who had been arrested pursuant to out-of-state warrants and needed to be transported back to the states that had issued the warrants. Buntyn was the supervising officer on a March 2017 PTS transport that stopped in New Mexico during a cross-country trip.
“Prisoner transport officers, even those employed by private companies, must abide by our civil rights laws and protect the constitutional rights of people in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce our nation’s laws to ensure that the officers who break the law — including those who are driving the nation’s backroads in transport vans and may therefore wrongly believe they can act with impunity — are held accountable.”
“Detainees are entitled to basic human dignity,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Those who are responsible for their detention, from transport personnel to law enforcement and corrections officers, have the same duty to protect the rights and safety of their charges. Any abuse of detainees or failure to provide basic necessities is a violation of that trust and a violation of the law, and it will be roundly prosecuted.”
Former PTS Agent Buntyn was convicted of depriving detainees on the transport of their constitutional right to be free from an officer’s deliberate indifference to serious health and safety risks to the detainees. Evidence at trial established that the defendant knowingly created, and otherwise subjected the detainees to, dangerous, painful, and unhealthy conditions on the transport van. Specifically, evidence at trial showed that the defendant would retaliate against detainees who complained, by handcuffing the detainees behind their backs and forcing them to remain for hours in a small segregation cage inside the van; by depriving detainees of meals and access to water while they remained in the cage; by cranking up the heat in the already-hot van in retaliation for detainees complaining that, as they passed through the southwestern desert, they were in danger of overheating; and by failing to provide the detainees with required restroom breaks, until the detainees were left with no choice but to urinate in empty bottles or on the floor.
Buntyn was acquitted of a use of force and an obstruction of justice charge.
A date for the sentencing hearing has not yet been announced.
Assistant Attorney General Clarke and U.S. Attorney Uballez for the District of New Mexico made the announcement.
This case was investigated by the FBI Kansas City Field Office and was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley for the District of New Mexico and Trial Attorney Laura Gilson of the Justice Department’s Civil Rights Division, with assistance from Special Litigation Counsel Samantha Trepel.
Former President of International Aircraft Parts Distributor Convicted of Multi-Million Dollar Fraud SchemeRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of STEFAN GILLIER, a/k/a “Stephan Gillier,” a/k/a “Stefan R.R. Gillier,” a/k/a “Roland Gillier,” a/k/a “Roland Van Gorp,” a Belgian citizen, for engaging in a conspiracy to fraudulently obtain over $6 million dollars’ worth of aircraft parts through the use of stopped check payments. The jury convicted GILLIER today following a one-week trial before U.S. District Judge Paul A. Engelmayer.
U.S. Attorney Damian Williams said: “Today’s guilty verdict by a unanimous jury on all counts brings an end to Stefan Gillier’s long con, which began in 2004 and ultimately resulted in his arrest and extradition from Italy in 2019. Gillier defrauded aerospace manufacturers out of millions of dollars’ worth of aircraft parts through front companies, fake identities, and hundreds of stopped checks. He will now face sentencing for his crimes.”
According to the Indictment, documents previously filed in the case, and evidence introduced at trial:
GILLIER was president and ran the day-to-day business activities of RTF International Inc. (“RTF), a broker of aircraft parts. RTF began obtaining aircraft parts from Honeywell International, Inc. (“Honeywell”) in June 2004. Starting in 2005, RTF began increasing the number of parts it ordered from Honeywell, paying for them by check. RTF paid with checks written in foreign currency and for amounts well above the cost of the parts, which created an apparent credit balance in RTF’s favor in Honeywell’s accounting system. RTF wrote approximately $17 million worth of checks to Honeywell but stopped payment on approximately $15 million worth of checks. In total, RTF was able to obtain over $6 million worth of aircraft parts without paying for them. In June 2006, Honeywell executed a civil attachment order and recovered some of the stolen aircraft parts.
To execute the scheme, GILLIER signed checks to Honeywell on behalf of RTF but repeatedly caused stop payment orders to be placed after Honeywell shipped the parts to RTF. When questioned by Honeywell’s employees about these stop payment orders, GILLIER, using the alias “Roland Van Gorp,” falsely represented that the stop payment orders were the result of a misunderstanding with the bank and that he would check with RTF’s finance department. In fact, as GILLIER knew, he had issued the stop payment orders, and RTF did not have a finance department.
In June 2006, following the execution of the civil attachment order by Honeywell, GILLIER caused various large transfers of fraudulent proceeds into bank accounts controlled by him, his relatives, and a co-conspirator (“CC-1”). The very next day, on June 15, 2006, GILLIER left the United States for Canada.
After Honeywell discovered that it was being victimized by RTF, GILLIER and CC-1 continued their fraud scheme through a new corporate entity, “UN Air Services, Inc.” (“UAS”) (which had no relation to the United Nations). In 2006, UAS began obtaining aircraft parts from Pratt & Whitney Component Solutions, Inc. (“Pratt & Whitney”). Like RTF, UAS began stopping payment on checks it had written to Pratt & Whitney for the aircraft parts after Pratt & Whitney delivered the aircraft parts.
GILLIER was arrested and extradited from Italy in 2019.
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GILLIER, 49, a citizen of Belgium, was convicted of eight counts: (1) one count of conspiracy to commit mail fraud, wire fraud, interstate transportation of stolen property, and money laundering, which carries a maximum potential penalty of five years in prison; (2) one count of mail fraud, which carries a maximum potential penalty of 20 years in prison; (3) one count of wire fraud, which carries a maximum potential penalty of 20 years in prison; (4) one count of interstate transportation of stolen property, which carries a maximum potential penalty of 10 years in prison; and (5) four counts of money laundering, each of which carries a maximum potential penalty of 10 years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. GILLIER is scheduled to appear for sentencing before Judge Engelmayer on January 26, 2023.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations and the U.S. Department of Defense, Defense Criminal Investigative Service. He also thanked the Federal Bureau of Investigation, the U.S. Marshals Service, the U.S. Department of Commerce, law enforcement and prosecutorial authorities in Italy, including the Italian Ministry of Justice and Interpol Rome, Honeywell, and Pratt & Whitney for their assistance in this case. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Italy.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Dina McLeod, Micah Fergenson, Michael McGinnis, and Michael Neff are in charge of the prosecution.
Former NHA Director of Information Technology Sentenced to Two Years in Prison for Embezzling over $590,000 Worth of Electronic DevicesRead the Press Release
NEWARK, N.J. – Newark Housing Authority (NHA)’s former director of information technology was sentenced today to 24 months in prison for using his position to embezzle NHA funds to purchase cellular telephones and other electronic devices, U.S. Attorney Philip R. Sellinger announced.
Venancio Diaz, 57, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Brian Martinotti in Newark federal court to an information charging him with committing theft from an agency receiving federal funds. Judge Martinotti imposed sentence today by videoconference.
According to documents filed in this case and statements made in court:
From December 2013 to Aug. 10, 2021, Diaz bought, on behalf of NHA and using NHA funds, 1,509 electronic devices, primarily cellular telephones and tablets, from a telecommunications company. Diaz then caused those devices to be activated on NHA’s account on the company’s network for a short period of time – often only days or weeks. After the brief period of activation ended, Diaz posed as the owner of the devices and sold them to two different online electronics resale marketplaces. Diaz directed all the proceeds of the sales – a total of $594,425 – to his own bank accounts and kept the money for his own personal use.
In addition to the prison term, Judge Martinotti sentenced Diaz to three years of supervised release and ordered him to pay $594,425 in restitution to the NHA. Diaz also previously consented to a $594,425 money judgment, forfeiting the monies he obtained as a result of his illegal scheme, and also agreed to forfeit electronic devices belonging to NHA that were seized by law enforcement or otherwise in his possession, including 27 cellular telephones.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Housing and Urban Development – Office of the Inspector General, under the direction of Special Agent in Charge Christina D. Scaringi in Newark; and special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing. He also thanked the IRS-Criminal Investigations for its assistance.
The government is represented by Assistant U.S. Attorney Sara F. Merin of the Special Prosecutions Division in Newark.
Former Jacksonville Second-Grade Teacher Sentenced to More Than 7 Years in Federal Prison for Distributing Child Sexual Abuse Videos Using Social Media AppRead the Press Release
Jacksonville, Florida – Chief United States District Judge Timothy J. Corrigan has sentenced Thomas Lester Hazouri, Jr. (42, Jacksonville) to 7 years and 3 months in federal prison for distributing child sexual abuse videos over the internet using a social media messaging application (app). The court also ordered Hazouri to serve a 15-year term of supervised release, register as a sex offender, and pay child victims a total of $18,000 in restitution. Hazouri had pleaded guilty on August 24, 2021, and has been in custody since his arrest on September 4, 2020.
According to court documents and information offered in open court, the company that owns and hosts a particular online social media messaging app notified the National Center for Missing and Exploited Children that on March 26, 2020, one of its app users, later identified as Hazouri, had uploaded and distributed videos depicting children being sexually abused into a public chat room with 46 other users in it. Further investigation by the Jacksonville Sheriff’s Office (JSO) traced the internet protocol address used to distribute these videos to Hazouri’s residence. At that time, Hazouri was employed as a second-grade teacher at Mayport Elementary School in Jacksonville.
The search warrants for the social messaging app account used by Hazouri, as well as for another email account used by Hazouri. Hazouri’s online social media account, contained 19 images and 45 videos depicting minor children engaged in sexually explicit conduct. On August 6, 2020, JSO detectives and other personnel executed a search warrant at Hazouri’s residence and seized Hazouri’s Apple iPhone and other computer media. A forensic examination of this iPhone revealed that it contained 123 images and three videos depicting children being sexually abused. Seven of these images each depicted either an infant or a toddler-aged child.
This case was investigated by the Jacksonville Sheriff’s Office, the Duval County School Police Department, and the Federal Bureau of Investigation, with assistance from the National Center for Missing and Exploited Children. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case 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.justice.gov/psc.
Former Iowa State Patrol Trooper Pleads Guilty to Civil Rights ViolationRead the Press Release
CEDAR RAPIDS, IA – A former Iowa State Patrol trooper, Robert James Smith, age 58, pleaded guilty on Monday, September 26, 2022, to Deprivation of Rights Under Color of Law.
According to court documents, on September 25, 2017, while Smith was on patrol, he observed an individual traveling on Interstate 80 at a speed above the posted speed limit. Smith attempted to catch up to the motorcycle. The motorcyclist exited Interstate 80 in Cedar County, Iowa, stopped the motorcycle and dismounted. In his marked squad car, Smith exited behind the motorcycle, engaged the overhead lights and siren on his patrol vehicle, parked near and quickly approached the victim. As the victim was standing next to the motorcycle with hands in the air, Smith delivered an open palm strike to the victim’s chin area. The force of the strike caused the victim to fall back over the motorcycle, after which Smith knelt on and handcuffed the victim, then stood the victim up. In his plea agreement, Smith admitted that this intentional open hand palm strike was with a bad purpose or improper motive to disregard the law and was an unreasonable use of force.
In July 2022, this matter preceded to jury trial, but the jury was unable to reach a verdict.
Sentencing in this matter has not been scheduled. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Federal Bureau of Investigation is investigating this case.
Former IRS Employee Pleads Guilty to Fraudulently Obtaining $62,300 in CARES Act FundsRead the Press Release
CONCORD – Charles Clark, 64, of Merrimack, New Hampshire, pleaded guilty in federal court to making false statements, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in July 2020, Clark fraudulently applied for a loan under the Economic Injury Disaster Loan (EIDL) program. Congress had authorized multiple relief programs, including EIDL, to help the millions of Americans and many small businesses adversely affected by the early stages of the COVID pandemic. EIDL funds were issued by the Small Business Administration and were to be used for limited purposes such as payroll expenses, sick leave, and production costs.
In his EIDL application, Clark falsely claimed to have been an independent contractor working in the “Hair & Nail Salon” industry when he was working as a full-time IRS employee. He obtained $62,300 in funds which he then misused by spending them on renovating an investment property he owned.
Clark is scheduled to be sentenced on January 5, 2023.
The case was investigated by the Treasury Inspector General for Tax Administration. It is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen.
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Former Financial Advisor Agrees to Plead Guilty to Aggravated Identity TheftRead the Press Release
SACRAMENTO, Calif. — Tyler Rigsbee, 32, of Folsom, has signed a plea agreement admitting to committing aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
Rigsbee was charged in a criminal information filed Tuesday in U.S. District Court. In a plea agreement, filed today, Rigsbee agreed to plead guilty to one count of aggravated identity theft. Rigsbee is scheduled for an initial appearance on Oct. 5, 2022, before Magistrate Judge Kendall J. Newman.
According to court documents, from 2016 to 2021, Rigsbee worked as a financial advisor at a major bank in Sacramento. During his employment, Rigsbee stole over $158,000 from the accounts of two bank customers. Rigsbee stole this money by transferring it from customer accounts to brokerage accounts he created at E-Trade, a third-party financial institution. He then transferred the money from these brokerage accounts to his own personal bank account. Rigsbee also attempted to conceal his scheme by partially replacing some of what he stole from one of these bank customers with money he took from the account of a third bank customer.
After the death of one bank customer in August 2018, Rigsbee created a fraudulent request for distribution of eligible assets from a transfer-on-death account by falsely pretending that he was the deceased customer’s beneficiary. On March 15, 2019, Rigsbee submitted this request for distribution of eligible assets to the bank’s estate processing department, which caused the liquidation of the customer’s account and transfer of these funds to a brokerage account Rigsbee created and controlled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Elliot C. Wong is prosecuting the case.
Rigsbee faces a mandatory term of two years in prison and a statutory maximum fine of up to $250,000 fine or twice the gross gain or gross loss. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Detroit Resident Sentenced for Role in Drug Trafficking NetworkRead the Press Release
PITTSBURGH, PA – A former resident of Detroit, Michigan, was sentenced on a charge of violating federal narcotics trafficking laws, United States Attorney Cindy K. Chung announced today.
Hasani James, 51, currently incarcerated at Northeast Ohio Correctional Center, was sentenced to 60 months imprisonment, followed by 4 years’ supervised release by District Judge Robert J. Colville.
In conjunction with the sentencing hearing, the Court was informed that the Greater Pittsburgh Safe Streets Task Force, led by the Federal Bureau of Investigation, conducted a long-term investigation into drug-trafficking activity occurring in the Western District of Pennsylvania. Law enforcement identified several individuals, suspected at the time, of illegally distributing controlled substances, including methamphetamine in Allegheny, Westmoreland, Erie, Fayette, and Washington Counties.
Investigators identified James, who resided in Detroit at the time of the conspiracy, as a cocaine source of supply for among others, co-defendant Bill Rana, who was a “fully patched” member of the Pagans Motorcycle Club and Sergeant of Arms for the Pittsburgh Chapter. Over the course of the conspiracy, James was responsible for or could otherwise reasonably foresee the distribution of at least, 500 grams but less than 2 kilograms of cocaine.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation, the United States Postal Inspection Service, Drug Enforcement Administration, Allegheny County Sheriff’s Office, Pennsylvania State Police, and Pennsylvania Office of Attorney General Bureau of Narcotics Investigations, for the investigation leading to the successful prosecution of James.
This sentencing was the 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 Clarksville School Nurse Pleads Guilty to Child Pornography ChargesRead the Press Release
NASHVILLE – A former Clarksville, Tennessee, school nurse pleaded guilty today in U.S. District Court to 25 counts of attempting to produce child pornography, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Leon B. Hensley, 41, pleaded guilty prior to the start of a bench trial which was scheduled to begin today.
Hensley, a former nurse at North East High School (NEHS) in Clarksville, was initially charged and arrested in May 2021, following an investigation into allegations that he sent a digital image, via text message, of a nude adult female to a minor female in the Clarksville area. Hensley had been communicating with the minor female via text and asked her to help him with a photo shoot by posing for photos.
Subsequent investigation and a search of Hensley’s phone revealed several images depicting the sexual exploitation of children. During a subsequent search of Hensley’s house, numerous electronic devices were seized, including a small covert video camera. The initial examination of Hensley’s phone led to the discovery of nude images which were identified as minor female students at NEHS. The devices also contained image files depicting unidentified females in hospital rooms, airports, and tanning beds, plus video files that appeared to be upskirt videos of adult and minor females.
Several hundred images were also discovered of minor females using the facilities of a particular bathroom. The images appear to have been taken by a hidden or concealed camera, which was positioned in front of the toilet seat at seat level, in an apparent attempt to capture the lewd and lascivious display of the genitalia. Further investigation determined that the bathroom depicted in the images was the private student bathroom in the nurse’s station at NEHS. Geolocation data on other images showed some that were taken at Tennova Hospital in Clarksville, where Hensley was employed prior to his employment at NEHS.
A superseding indictment returned in June charged Hensley with 25 counts of attempting to produce child pornography and enticing or coercing a minor to engage in sexually explicit conduct for the purpose of producing child pornography.
Hensley faces a mandatory minimum of 15 years in prison on each count, and up to life, when he is sentenced on February 3, 2023.
This case was investigated by Homeland Security Investigations; the U.S. Secret Service; the FBI; and the Clarksville Police Department. Assistant U.S. Attorney Monica Morrison is prosecuting the case.
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Former Chicago Police Officer Charged with Federal Civil Rights ViolationRead the Press Release
A former Chicago Police Officer has been indicted on a federal civil rights charge for allegedly kidnapping and sexually abusing an individual while on duty.
James Sajdak, 64, of Chicago, was charged with one count of deprivation of rights under color of law, according to an indictment unsealed today in the U.S. District Court for the Northern District of Illinois. Sajdak is alleged to have kidnapped and sexually abused the victim in Chicago on March 5, 2019.
The charge in the indictment is punishable by a maximum sentence of life in federal prison. Sajdak pleaded not guilty today during his arraignment before U.S. Magistrate Judge Susan E. Cox. A status hearing was scheduled for Oct. 12 before U.S. District Judge John J. Tharp Jr. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois and Special Agent in Charge Ashley T. Johnson for the FBI Chicago Field Office made the announcement.
Assistant U.S. Attorney Alexandra Morgan for the Northern District of Illinois is prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Chicago Police Officer Charged with Federal Civil Rights ViolationRead the Press Release
CHICAGO — A former Chicago Police Officer has been indicted on a federal civil rights charge for the alleged kidnapping and aggravated sexual abuse of an individual while on duty.
JAMES SAJDAK, 64, of Chicago, is charged with one count of deprivation of rights under color of law, according to an indictment unsealed today in U.S. District Court in Chicago. Sajdak is alleged to have kidnapped and sexually abused the victim in Chicago on March 5, 2019.
The charge in the indictment is punishable by a maximum sentence of life in federal prison. Sajdak pleaded not guilty today during his arraignment before U.S. Magistrate Judge Susan E. Cox. A status hearing was scheduled for Oct. 12, 2022, at 9:00 a.m. before U.S. District Judge John J. Tharp, Jr.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; and Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI. The government is represented by Assistant U.S. Attorney Alexandra Morgan.
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.
Former Cargill Employee Is Sentenced to More Than Four Years in Prison for Bribery and Kickback SchemeRead the Press Release
CHARLOTTE, N.C. – Yesterday, Michael A. Kennedy, 56, of Wichita, Kansas, was sentenced to 50 months in prison for his role in an extensive bribery and kickback scheme that defrauded Cargill, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. In addition to the prison term imposed, Kennedy was ordered to serve a year under court supervision and to pay restitution in the amount of $33.7 million.
Michael C. Scherck, Acting Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join U.S. Attorney King in making today’s announcement.
According to filed court documents and court proceedings, Kennedy was a senior Cargill employee within the Strategic Sourcing Function. Choung “Shawn” Nguyen was a Cargill procurement manager within the same division and reported to Kennedy. Brian Ewert was co-owner and primary sales representative of WDS, Inc., also known as Women’s Distribution Services, Inc. (WDS), a South Carolina-based company that provided non-raw materials and services to Cargill and its affiliates.
According to filed court documents and court proceedings, from 2009 to 2016, Kennedy conspired with Ewert, Nguyen, and others to carry out a fraudulent bribery and kickback scheme. During the course of the scheme, Ewert provided Kennedy and Nguyen and other Cargill employees with more than a $1 million in cash, gifts, and vacations, in exchange for putting the interests of WDS, and other companies Ewert controlled ahead of Cargill’s, including by helping to conceal the fact that WDS was overcharging Cargill. For example, as part of the conspiracy, Ewert provided Kennedy and his family with lavish trips that cost hundreds of thousands of dollars, including trips to the Caribbean on Ewert’s private jet and luxury yacht rentals to entertain Kennedy and his family. Ewert also paid for Kennedy and his family to go to Disney World and took them on ski trips. Kennedy and others concealed from Cargill the fact that they had received from Ewert the illicit bribes and kickbacks, in breach of their fiduciary duties to Cargill.
According to court records, in early 2016, after others within Cargill began questioning the relationship between WDS and Cargill, Kennedy, Ewert, and others took numerous steps to conceal from Cargill significant overcharging of Cargill by WDS. Cargill eventually discovered the scheme and terminated its relationship with WDS and Ewert and fired Kennedy and Nguyen.
In December 2021, Kennedy pleaded guilty to conspiracy to commit honest services wire fraud. He will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
Ewert and Nguyen were previously sentenced to 60 months and 41 months in prison, respectively. They were each also ordered to serve two years of supervised release and to pay $40.4 million in restitution. Jennifer Maier, the co-owner and Chief Executive Officer of WDS, was sentenced 24 months in prison followed by a year of supervised release and was ordered to pay $3.2 million as restitution.
The FBI and USPIS investigated the case. Assistant U.S. Attorneys Daniel Ryan and Graham Billings, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Florida man convicted of manslaughter, assault on the Laguna PuebloRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced today that a federal jury convicted Alexis Riego, 50, of Merritt Island, Florida, of four counts of involuntary manslaughter and two counts of assault resulting in serious bodily injury committed in 2019.
A grand jury indicted Riego in April of 2021. According to the indictment and other court records, on Sept. 7, 2019, Riego, a commercial motor vehicle driver, recklessly crashed into a line of stationary traffic in a construction zone on Interstate 40 within the Laguna Pueblo. At the time of the crash, Mr. Riego was speeding and using his cellular telephone. The crash caused a six-car pile-up that killed four people and seriously injured two. The crash caused the closure of interstate 40 for several hours.
“When we take the wheel, we take on a collective responsibility for the families who share our highways,” said U.S. Attorney Uballez. “The consequences for failing in that responsibility are grave and irrevocable. This conviction is a sobering reminder that a moment on video chat can forever change your life, and end the lives of others.”
Riego will remain in custody pending sentencing, which has not been scheduled.
The FBI Albuquerque Field Office investigated this case with assistance from the Laguna Police Department and the New Mexico State Police. Assistant United States Attorneys Joseph M. Spindle, Elisa Dimas and Matthew Nelson are prosecuting the case.
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Florida Man Pleads Guilty to Distributing Eight Kilograms of Meth Resulting from I-75 Traffic Stop in Lowndes CountyRead the Press Release
ALBANY, Ga. – A Florida resident with multiple prior state felony convictions for distributing methamphetamine pleaded guilty to a federal controlled substance charge after being caught with approximately eight kilograms of the illegal drug during a routine traffic stop when his co-defendant attempted to escape from authorities with the bag of drugs.
James E. Freitas, 48, of Winter Haven, Florida, pleaded guilty to possession with intent to distribute methamphetamine before U.S. District Judge Louis Sands today. Co-defendant, Miguel L. Mora, 43, of Hanes City, Florida, pleaded guilty to possession with intent to distribute methamphetamine on Aug. 12. Both defendants face a mandatory minimum of ten years up to a maximum of life imprisonment to be followed by at least five years of supervised release and a maximum $10,000,000 fine. Their sentencings will occur within 90 days as determined by the Court.
There is no parole in the federal system.
“I-75 is a known corridor for drug traffickers moving fentanyl, methamphetamine and other deadly drugs into communities across the southeast and beyond,” said U.S. Attorney Peter D. Leary. “Individuals caught distributing large quantities of these types of controlled substances will face federal prosecution for their crimes, which are contributing to the death and addiction of many Americans.”
“The guilty plea of this reoffender is the result of the collaborative efforts between DEA and its law enforcement partners who work tirelessly to eliminate the distribution of the insidious drug methamphetamine,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “This defendant will now face serious time in prison.”
According to court documents, a Lowndes County Sheriff’s Office deputy attempted to conduct a routine traffic stop for a driving violation as Freitas was traveling on I-75 on July 11, 2019. Freitas was unable to provide identification and gave conflicting information. As Frietas was standing outside the vehicle talking with the deputy, Mora climbed into the front seat and drove away in the car. Mora drove the vehicle into a field and then fled on foot into adjacent woods carrying a large bag. Mora was quickly apprehended; the bag that he carried from the car was searched and found to contain 8,099 grams of 97% pure methamphetamine with an estimated street value of $748,000. Officers found a loaded .40 caliber semi-automatic pistol with an obliterated serial number on the floorboard of the car belonging to Freitas. A search warrant executed on Freitas’ cell phone found photos of the gun, plus text and instant messages detailing both defendants travel to and from Tennessee to purchase and transport methamphetamine to a third party in Florida.
Freitas has three prior felony drug convictions for trafficking methamphetamine in Polk County, Florida, Circuit Court.
DEA and Lowndes County Sheriff’s Office investigated the case.
Assistant U.S. Attorney Mike Morrison is prosecuting this case.
Firearms Straw Purchaser Is Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – A Charlotte man convicted of straw purchasing firearms for two individuals was sentenced to two years in prison today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Thomas Evans Kelly, 29, was also ordered to serve two years under court supervision after he is released from prison.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
According to court records and today’s sentencing hearing, in August 2019, Kelly purchased three firearms from a licensed firearms dealer in Charlotte. Over the course of the transaction, Kelly made false and fictitious statements to the firearms dealer and falsely certified on federal forms associated with the purchase of the firearms that he was the actual buyer/transferee of the firearms. Court records show that, contrary to Kelly’s statements, he purchased the firearms for two other individuals, Walter Jackson and Jalen Jackson. Kelly then filed false police reports alleging that the firearms were stolen. In total, law enforcement seized eight firearms that were originally purchased by Kelly during criminal activity committed by Walter and Jalen Jackson.
Kelly is currently released on bond and will be ordered to report to the federal Bureau of Prisons to begin serving his sentence upon designation of a federal facility.
Walter Jackson previously pleaded guilty to dealing in firearms without a license and possession of a firearm by a convicted felon and was sentenced to 90 months in prison. Jalen Jackson was sentenced to 72 months in prison, after pleading guilty to dealing in firearms without a license and transfer of a firearm in violation of the National Firearms Act.
The ATF led the investigation. Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte was in charge of the prosecution.
Federal Prison Inmate Pleads Guilty to Attempting to Obtain ContrabandRead the Press Release
MINNEAPOLIS – An inmate at the Federal Correctional Institution (“FCI”) in Sandstone has pleaded guilty to attempting to obtain contraband in prison, announced United States Attorney Andrew M. Luger.
According to the defendant’s guilty plea and court documents, on two separate dates in February and March 2022, Nickolas William Mihelic, 39, an inmate at FCI Sandstone, attempted to obtain methamphetamine, a Schedule II controlled substance. In order to bypass security protocols, Mihelic conspired with an unindicted co-conspirator to mail pieces of paper to him at FCI Sandstone that were saturated with liquid methamphetamine. When the methamphetamine-saturated papers arrived at FCI Sandstone, Bureau of Prisons officials seized the contraband.
Mihelic pleaded guilty on September 26, 2022, before U.S. District Judge Nancy E. Brasel to two counts of attempting to obtain contraband in prison. A sentencing hearing has not yet been scheduled.
This case is the result of an investigation conducted by Federal Bureau of Prisons and the FBI.
Special Assistant U.S. Attorney Hillary A. Taylor is prosecuting the case.
Extradited UK Citizen Pleads Guilty to Defrauding VCU in Business Email Compromise SchemeRead the Press Release
RICHMOND, Va. –A United Kingdom citizen pleaded guilty today to conspiracy to commit wire fraud, after being extradited from the United Kingdom at the request of the United States.
According to court documents, Olabanji Egbinola, 43, of London, England, participated in a cyber-enabled business email compromise (BEC) fraud scheme that targeted Virginia Commonwealth University (VCU). A BEC scheme, also known as “cyber-enabled financial fraud,” is a sophisticated scam that typically targets employees with access to the finances of a business or organization that regularly perform large wire transfer payments. Using technological means and social engineering techniques, BEC conspirators impersonate an employee with a company that has ongoing contracts with the targeted victim. BEC conspirators then trick employees of the victim organization to change bank accounts for upcoming transaction to a bank account that the conspirators control or have access to.
As part of his guilty plea, Egbinola admitted that he impersonated an employee named “Rachel Moore” of the Kjellstrom + Lee Construction Company of Richmond, which had an ongoing construction project with VCU. From September 2018 through December 2018, over the course of multiple emails, Egbinola tricked VCU to change bank accounts for an upcoming payment to Kjellstrom + Lee. On December 20, 2018, a payment intended for Kjellstrom + Lee in the amount of $469,819.44 was transferred from a bank account controlled by VCU to a Bank of Hope account in Los Angeles, California, that the conspirators controlled. Very little of that money was recovered.
Egbinola is scheduled to be sentenced on February 13, 2023. He faces a maximum penalty of 20 years in prison. 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.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge, FBI Richmond Division, made the announcement after U.S. District Judge David J. Novak accepted the plea.
The Richmond FBI Cyber Task Force conducted the investigation with the assistance of the FBI Cyber Division, FBI Criminal Division, Department of Justice’s Office of International Affairs, and the FBI Legal Attaché London office. United Kingdom authorities also provided substantial assistance.
The Justice Department’s Office of International Affairs worked with law enforcement partners in UK to secure the arrest and extradition of Egbinola to the United States.
Assistant U.S. Attorney Brian Hood is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-124.
El Departamento de Justicia llega a un acuerdo con Lakeland Bank para resolver alegaciones de discriminación por exclusión financiera en el ámbito crediticioRead the Press Release
El Departamento de Justicia anunció el día de hoy un acuerdo para resolver alegaciones de que Lakeland Bank (Lakeland) participó en un patrón o práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (conocido como “redlining” en inglés) en la zona metropolitana de Newark, incluyendo en vecindarios en los condados de Essex, Somerset y Union en New Jersey. Esta resolución es parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia y representa el tercer acuerdo más grande contra la exclusión financiera en la historia del Departamento.
"Las instituciones financieras que se niegan a proveer servicios de préstamos hipotecarios a las comunidades de color no solo contribuyen a la persistente disparidad racial de riqueza que existe en este país, sino que violan las leyes federales", dijo el Fiscal General Merrick B. Garland. “El acuerdo con Lakeland anunciado el día de hoy representa el compromiso continuo del Departamento de Justicia para abordar la exclusión financiera moderna y garantizar que todos los estadounidenses tengan igualdad de oportunidades crediticias, independientemente de su raza u origen nacional”.
“Poner fin a la exclusión financiera es un paso crítico en nuestra labor para cerrar las disparidades de riqueza cada vez más amplias entre las comunidades de color y otras”, dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo demuestra nuestro firme compromiso con combatir la exclusión financiera moderna y responsabilizar a los bancos y otros prestamistas cuando les niegan a las personas de color acceso parejo a oportunidades crediticias. Por medio de este acuerdo, enviamos un mensaje firme a la industria financiera de que no soportaremos las barreras discriminatorias e ilegales a los préstamos hipotecarios residenciales”.
“La exclusión financiera crea una desigualdad de las condiciones de juego que injustamente impide que muchas personas de color logren el sueño de ser propietarios de viviendas y este tipo de discriminación sistemática e intencional no puede y no será tolerado”, dijo el Fiscal Federal Philip R. Sellinger del Distrito de New Jersey. “Es completamente inaceptable que la exclusión financiera persista en el siglo XXI y este caso demuestra nuestro compromiso con combatir la exclusión financiera y responsabilizar a los bancos y a otros cuando participen en discriminación ilícita. Por medio de este acuerdo, damos un gran paso adelante al remover las barreras ilegales y discriminatorias a los préstamos hipotecarios residenciales”.
La exclusión financiera es una práctica ilegal en la que prestamistas evitan la prestación de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color u origen nacional de los residentes de tales comunidades. La demanda que se presentó en el tribunal federal hoy alega que, desde al menos el 2015 hasta el 2021, Lakeland no prestó servicios de préstamos hipotecarios en vecindarios negros e hispanos en la zona metropolitana de Newark, New Jersey, que todas sus sucursales estaban ubicadas en vecindarios de mayoría blanca y que sus oficiales de crédito no atendían las necesidades de crédito de los vecindarios negros e hispanos en y alrededor de Newark.
Conforme a la orden de consentimiento propuesta, la cual queda sujeta a la aprobación del tribunal y fue presentada hoy ante el Tribunal Federal de Distrito para el Distrito de New Jersey junto con una demanda, Lakeland ha acordado hacer lo siguiente:
Invertir al menos $12 millones en un fondo de préstamos subvencionados para los residentes de vecindarios negros e hispanos en el área de Newark; $750,000 en anuncios, proyección comunitaria y educación financiera para el consumidor; y $400,000 para desarrollar asociaciones comunitarias con el fin de prestar servicios que mejoren el acceso a los préstamos hipotecarios residenciales.
Abrir dos sucursales nuevas en vecindarios de color, incluyendo al menos una en la ciudad de Newark; garantizar que al menos cuatro oficiales de crédito hipotecario estén dedicados a servir a todos los vecindarios en y alrededor de Newark; y emplear a un oficial de desarrollo comunitario que supervisará el desarrollo continuo del crédito en vecindarios de color en el área de Newark.
Mantener un área de evaluación de la Ley de Reinversión Comunitaria (Community Reinvestment Act en inglés) que incluya a los condados de Essex, Somerset y Union.
Lakeland ha acordado resolver este asunto sin litigios de disputa y trabajó de manera cooperativa con el Departamento para remediar las inquietudes de exclusión financiera que fueron identificadas.
En octubre de 2021, el Fiscal General Merrick B. Garland anunció la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley cuyo objetivo es abordar esta forma persistente de discriminación contra comunidades de color. La iniciativa está expandiendo el alcance del Departamento al fortalecer las asociaciones con Fiscalías Federales por todo el país, socios regulatorios y nuestros socios en las Fiscalías Generales Estatales. Desde que se emprendió la iniciativa, el Departamento ha anunciado cuatro casos de exclusión financiera y acuerdos por un total combinado de $38 millones en indemnización a las comunidades que han sido víctimas de discriminación en el ámbito crediticio. Eso incluye el acuerdo de $20 millones con Trident Mortgage Company – el segundo acuerdo más grande en la historia del Departamento de Justicia.
Se puede encontrar información adicional sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos en www.justice.gov/fairhousing. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea. Los individuos también pueden reportar violaciones de los derechos civiles en https://www.justice.gov/usao-nj/civil-rights-enforcement o llamando a la Línea Directa de Derechos Civiles del Fiscal General al (855) 281-3339.