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15 September 2022
Las Vegas Store Owner Indicted for Trafficking in Counterfeit Designer MerchandiseRead the Press Release
LAS VEGAS – A Las Vegas woman made her initial court appearance yesterday before U.S. Magistrate Judge Brenda Weksler for allegedly trafficking in more than 3,000 counterfeit designer handbags, clothes, and other merchandise which she offered for sale at her beauty supply store.
Amie Kamara (31) is charged with two counts of trafficking in counterfeit goods. A jury trial has been scheduled for November 14, 2022 before U.S. District Judge Cristina D. Silva.
According to allegations made in the indictment, Kamara owned and operated Aminic Beauty Supply in Las Vegas. At the store, she possessed and intended to sell items bearing counterfeit marks that were identical to the genuine trademarks from Louis Vuitton, Chanel, Gucci, and other designer brands.
If convicted, the statutory maximum penalty is 20 years in prison, a term of supervised release, and a monetary fine.
U.S. Attorney Jason M. Frierson for the District of Nevada and Acting Special Agent in Charge Chris Watkins for Homeland Security Investigations (HSI) Las Vegas made the announcement.
The case was investigated by HSI. Assistant U.S. Attorney Jim Fang is prosecuting the case.
The charges contained in the indictment are merely allegations and the defendant is presumed innocent unless and until proven guilty.
To report possible violations of intellectual property rights, including counterfeiting, IP Theft and piracy, contact the National IPR Coordination Center, at www.iprcenter.gov/referral/report-ip-theft-form.
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Kern County Man Charged with Firearms OffensesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Damien Torres, 22, of Wasco, charging him with illegal possession of firearms and ammunition, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 5, 2021, Torres was found in possession of ammunition after officers contacted him in response to a disturbance call. On Nov. 29, 2021, Torres was found in possession of a firearm after he failed to yield to officers as they were trying to stop him for a traffic violation. On March 18, 2022, Torres was found to be in possession of a firearm during a search of his residence, and on May 2, 2022, a firearm was found at Torres’ residence during a search after reports of a confrontation involving Torres striking a male with a firearm the day before. Torres is prohibited from possessing firearms and ammunition based on his prior convictions for taking a vehicle without consent and possession of a loaded a firearm by a gang member.
This case is the product of an investigation by the Kern County Sheriff’s Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Torres faces a maximum statutory penalty of 10 years in prison and a $250,000 fine for each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the U.S. Department of Justice launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Justice Department and Albuquerque Police Department Provide Policing Reform Progress ReportRead the Press Release
The Justice Department and the City of Albuquerque (City) today agreed that because the City has sustained compliance with significant provisions of the consent decree for the last two years, covering the Albuquerque Police Department (APD), the City now will self-assess compliance with those provisions. The announcement was made by filing a joint notice of the parties’ agreement with the U.S. District Court for the District of New Mexico, which oversees the City’s implementation of the consent decree.
The City will analyze and publicly report on its compliance every six months, pursuant to a self-assessment plan also filed with the court. This transition to self-assessment is a significant accomplishment, and represents significant progress toward compliance and termination of the consent decree.
“The Albuquerque Police Department has made real progress toward compliance with this Consent Decree,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The progress that we have seen in the City of Albuquerque has yielded reform and is moving the city in the right direction when it comes to constitutional policing. We look forward to working with officials to achieve full compliance with the consent decree. The residents of Albuquerque deserve nothing less.”
“Today, we come before the court to recognize important and sustained advances made by the Albuquerque Police Department toward the goal of constitutional, effective policing,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Successful self-assessment is the cornerstone of true reform, and the Albuquerque community should expect no less. I want to commend the hard work put in by the men and women of APD, as well as the persistence of community stakeholders, that went into this accomplishment. Together, we will realize the goals set out by this community, through mutual agreement, seven years ago.”
As detailed in today’s joint notice, the City has achieved sustained substantial compliance with and will self-assess the portions of the consent decree covering:
- The Multi-Agency Task Force that investigates shootings by APD officers;
- Specialized units (except tactical units);
- Training on behavioral health and field training;
- Filing of complaints by the public;
- Officer support programs;
- Recruitment, hiring, performance evaluations, and promotions; and more.
For example, APD has achieved full compliance with the consent decree’s requirement that it “develop a comprehensive recruitment and hiring program that successfully attracts and hires qualified individuals.” In its most recent report, the independent monitor found that APD has “set new standards in police recruiting,” and increased interest in joining APD at a time when police recruiting has become more difficult nationwide. In addition, APD has also developed and maintained a robust and effective public information program to facilitate misconduct reporting and ensure that civilian complaints are accepted and investigated.
The parties’ agreement reflects the strides APD has made in important areas of reform, while also recognizing that APD has put in place the necessary staff and systems to accurately and credibly assess its own continued compliance with these portions of the consent decree. This agreement will allow APD to focus even more on critical areas where it has made substantial improvements, as recognized by the independent monitor in its most recent report. These areas include force investigations, for which the monitoring team found that APD had improved both timeliness and quality, and discipline, where the monitoring team noted that APD continues to make “marked improvements.”
The Justice Department initiated an investigation of APD in November 2012 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the District of New Mexico. The Justice Department announced the findings of the investigation in April 2014. The consent decree was approved by the U.S. District Court for the District of New Mexico in June 2015.
The findings report and the settlement agreement, as well as additional information about the Civil Rights Division, are available on its website at Special Litigation Section Cases and Matters (justice.gov). Additional information about implementation of the consent decree is also available on the website of the U.S. Attorney’s Office at Investigation into Albuquerque Police Department (justice.gov).
Justice Department and Albuquerque Police Department Provide Policing Reform Progress ReportRead the Press Release
WASHINGTON – Today, the Justice Department and the City of Albuquerque (City) agreed that because the City has sustained compliance with significant provisions of the consent decree for the last two years, covering the Albuquerque Police Department (APD), the City now will self-assess compliance with those provisions. The announcement was made by filing a Joint Notice of the parties’ agreement with the United States District Court for the District of New Mexico, which oversees the City’s implementation of the consent decree.
The City will analyze and publicly report on its compliance every six months, pursuant to a self-assessment plan also filed with the Court. This transition to self-assessment is a significant accomplishment, and represents significant progress toward compliance and termination of the consent decree.
“The Albuquerque Police Department has made real progress toward compliance with this Consent Decree,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The progress that we have seen in the City of Albuquerque has yielded reform and is moving the city in the right direction when it comes to constitutional policing. We look forward to working with officials to achieve full compliance with the consent decree. The residents of Albuquerque deserve nothing less.”
“Today, we come before the Court to recognize important and sustained advances made by the Albuquerque Police Department toward the goal of constitutional, effective policing,” said United States Attorney Alexander M.M. Uballez for the District of New Mexico. “Successful self-assessment is the cornerstone of true reform, and the Albuquerque community should expect no less. I want to commend the hard work put in by the men and women of APD, as well as the persistence of community stakeholders, that went into this accomplishment. Together, we will realize the goals set out by this community, through mutual agreement, seven years ago.”
As detailed in today’s Joint Notice, the City has achieved sustained substantial compliance with and will self-assess the portions of the consent decree covering:
- The Multi-Agency Task Force that investigates shootings by APD officers;
- Specialized units (except tactical units);
- Training on behavioral health and field training;
- Filing of complaints by the public;
- Officer support programs;
- Recruitment, hiring, performance evaluations, and promotions; and more.
For example, APD has achieved full compliance with the consent decree’s requirement that it “develop a comprehensive recruitment and hiring program that successfully attracts and hires qualified individuals.” In its most recent report, the Independent Monitor found that APD has “set[] new standards in police recruiting,” and increased interest in joining APD at a time when police recruiting has become more difficult nationwide. In addition, APD has also developed and maintained a robust and effective public information program to facilitate misconduct reporting and ensure that civilian complaints are accepted and investigated.The parties’ agreement reflects the strides APD has made in important areas of reform, while also recognizing that APD has put in place the necessary staff and systems to accurately and credibly assess its own continued compliance with these portions of the consent decree. This agreement will allow APD to focus even more on critical areas where it has made substantial improvements, as recognized by the Independent Monitor in its most recent report. These areas include force investigations, for which the monitoring team found that APD had improved both timeliness and quality, and discipline, where the monitoring team noted that APD continues to make “marked improvements.”
The Justice Department initiated an investigation of APD in November 2012 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the District of New Mexico. The Justice Department announced the findings of the investigation in April 2014. The consent decree was approved by the United States District Court for the District of New Mexico in June 2015.
The Findings Report and the Settlement Agreement, as well as additional information about the Civil Rights Division, are available on its website at Special Litigation Section Cases and Matters (justice.gov). Additional information about implementation of the consent decree is also available on the website of the U.S. Attorney’s Office at Investigation into Albuquerque Police Department (justice.gov).
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(866) 544-5309 TTYJustice Department Sues to Block ASSA ABLOY’s Proposed Acquisition of Spectrum Brands’ Hardware and Home Improvement DivisionRead the Press Release
The U.S. Department of Justice filed a civil antitrust lawsuit today to block ASSA ABLOY AB’s (ASSA ABLOY) proposed $4.3 billion acquisition of the Hardware and Home Improvement division of its rival, Spectrum Brands Holdings Inc (Spectrum). ASSA ABLOY and Spectrum are two of the three largest producers of residential door hardware in the concentrated, $2.4 billion U.S. industry.
The complaint, filed in the U.S. District Court for the District of Columbia, alleges that the merger would eliminate important head-to-head competition between ASSA ABLOY and Spectrum, risking higher prices, lower quality, reduced innovation and poorer service in the sale of at least two types of residential door hardware: premium mechanical door hardware and smart locks.
“Millions of Americans rely on these companies’ door hardware products every day to meet their most basic privacy and security needs,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Competition between these two companies, which are two of the three largest companies in an already concentrated industry, has benefitted American consumers in the form of lower prices and better quality. That important competition would be extinguished if this merger were allowed to proceed to the detriment of Americans.”
The complaint, which seeks to enjoin the transaction under Section 7 of the Clayton Act, alleges that ASSA ABLOY and Spectrum have competed for years to be leaders in the U.S. markets for premium mechanical door hardware and for smart locks. The proposed transaction would transform these markets, giving ASSA ABLOY a near-monopoly in premium mechanical door hardware and more than a 50% share in smart locks, leaving only one significant competitor. More broadly, a combined ASSA ABLOY/Spectrum would control approximately 50% of the overall residential door hardware market. Hundreds of millions of dollars’ worth of premium mechanical door hardware and smart locks are sold each year in the United States. Premium mechanical door hardware is made of high-quality, durable metals (primarily forged brass and cast bronze), and is highly customizable, design-driven, and constructed with superior craftsmanship. Smart locks are an increasingly popular type of digital door lock that can be remotely operated and monitored through a wireless connection to another electronic device, such as a smart phone or smart speaker.
ASSA ABLOY AB is a publicly traded Swedish stock company headquartered in Stockholm, Sweden. It sells its residential door hardware products in the United States under the August, EMTEK, and Yale brands. ASSA ABLOY’s revenues were approximately $9.1 billion in 2021.
Spectrum Brands Holdings Inc. is a publicly traded Delaware corporation headquartered in Middleton, Wisconsin. It sells its residential hardware products in the United States under the Baldwin and Kwikset brands. Spectrum’s revenues were approximately $4.6 billion in 2021.
Justice Department Secures Agreement with Massachusetts School District to Ensure Equal Educational Opportunities for All Students, Including K’iche’ SpeakersRead the Press Release
The Justice Department today announced a settlement agreement with New Bedford Public Schools to resolve the department’s investigation into the school district’s practices for communicating with limited English proficient parents and guardians, including speakers of K’iche’, an Indigenous Mayan language.
Among other steps, the district will implement effective measures to correctly identify the languages spoken by students, as well as parents and guardians, so that school staff do not assume K’iche’ speakers are native Spanish speakers based on their country of origin. The district has also agreed to improve its practices and professional development to address the specific needs of English learner students who speak K’iche’ so that they can access the same educational opportunities as other students in the district.
“Students and families from Indigenous Maya communities often face unique barriers to accessing educational opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This comprehensive agreement ensures that the district recognizes and addresses the needs of its substantial population of K’iche’-speaking students, and empowers parents to participate fully in their children’s education. The Civil Rights Division is committed to protecting every child’s right to equally participate in school.”
The agreement results from the department’s investigation under the Equal Educational Opportunities Act of 1974, opened in 2020. The district cooperated at every stage of the investigation and committed to improving its programs through revised practices and professional development. The Justice Department will monitor the district’s implementation of the settlement agreement for at least three full school years to ensure that the district complies with its obligations.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. View the Spanish translation of this press release here.
Play audio in K'iche' below:
Audio file
Translation in K'iche'Justice Department Secures Agreement Resolving HIV Discrimination Lawsuit in IndianaRead the Press Release
The Justice Department today filed a proposed consent decree with the U.S. District Court for the Southern District of Indiana to resolve its lawsuit against the Town of Clarksville, Indiana, for violating Title I of the Americans with Disabilities Act (ADA).
The lawsuit alleged that the town’s police department unlawfully revoked a job offer to a qualified police officer because of his human immunodeficiency virus (HIV) diagnosis. The officer had been successfully working for the Town’s police department as a volunteer reserve officer for over a year and was fully qualified to work as a police officer. Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.
“No individual should be subject to employment discrimination based on their HIV status,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The complainant’s dream job was taken away because of unfounded assumptions that his HIV diagnosis would impact his ability to safely do the job. This settlement reflects the Justice Department’s firm commitment to enforcing the rights of job applicants and employees who experience unlawful discrimination based on disability.”
“Workers living with HIV, including those in law enforcement, deserve to be free from unlawful discrimination,” said U.S. Attorney Zachary A. Myers for the Southern District of Indiana. “This settlement will ensure that qualified individuals who seek to serve their communities won’t be excluded as a result of unfounded stereotypes and misinformation about HIV. This office will continue to work closely with our partners in the Civil Rights Division to protect the civil rights of employees and continue the fight to uphold the hard-fought protections of the Americans with Disabilities Act.”
Under the terms of the consent decree, which must be approved by the court, Clarksville will revise its policies and procedures regarding employment-related medical examinations and will train relevant personnel on the requirements of Title I of the ADA. The town will also pay $150,000 in compensatory damages to the complainant and provide the complainant with an affidavit that makes clear to future employers that his termination by the town was through no fault of his own.
Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.
This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana based on a referral from the Indianapolis District Office of the Equal Employment Opportunity Commission. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. The complaint can be viewed here.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. Individuals who believe they may have been victims of discrimination may file a complaint at https://civilrights.justice.gov/.
Justice Department Secures Agreement Resolving HIV Discrimination Lawsuit in IndianaRead the Press Release
INDIANAPOLIS – Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and the Justice Department, today filed a proposed consent decree with the U.S. District Court for the Southern District of Indiana to resolve its lawsuit against the Town of Clarksville, Indiana, for violating Title I of the Americans with Disabilities Act (ADA).
The lawsuit alleged that the town’s police department unlawfully revoked a job offer to a qualified police officer because of his human immunodeficiency virus (HIV) diagnosis. The officer had been successfully working for the Town’s police department as a volunteer reserve officer for over a year and was fully qualified to work as a police officer. Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.
“Workers living with HIV, including those in law enforcement, deserve to be free from unlawful discrimination,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. “This settlement will ensure that qualified individuals who seek to serve their communities won’t be excluded as a result of unfounded stereotypes and misinformation about HIV. This office will continue to work closely with our partners in the Civil Rights Division to protect the civil rights of employees and continue the fight to uphold the hard-fought protections of the Americans with Disabilities Act.”
“No individual should be subject to employment discrimination based on their HIV status,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The complainant’s dream job was taken away because of unfounded assumptions that his HIV diagnosis would impact his ability to safely do the job. This settlement reflects the Justice Department’s firm commitment to enforcing the rights of job applicants and employees who experience unlawful discrimination based on disability.”
Under the terms of the consent decree, which must be approved by the court, Clarksville will revise its policies and procedures regarding employment-related medical examinations and will train relevant personnel on the requirements of Title I of the ADA. The town will also pay $150,000 in compensatory damages to the complainant and provide the complainant with an affidavit that makes clear to future employers that his termination by the town was through no fault of his own.
Title I of the ADA prohibits employers from discriminating against qualified individuals on the basis of disability. Discrimination includes withdrawing a job offer to a qualified individual based on unsupported and stereotypical views of the applicant’s disability.
This case was handled by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Indiana based on a referral from the Indianapolis District Office of the Equal Employment Opportunity Commission. The department plays a central role in advancing the nation’s goal of equal opportunity, full participation, independent living and economic self-sufficiency for people with disabilities. The complaint can be viewed here.
For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. Individuals who believe they may have been victims of discrimination may file a complaint at https://civilrights.justice.gov/.
Justice Department Launches Nationwide Initiative to Combat Unlawful Acts of HateRead the Press Release
Attorney General Merrick B. Garland announced today during the White House United We Stand Summit that over the next year, all 94 U.S. Attorneys’ Offices (USAOs) will host a new nationwide initiative to combat unlawful acts of hate. The United Against Hate program is convening local forums that connect community groups to federal, state, and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate.
“The Justice Department remains committed to enforcing federal hate crime laws,” said Attorney General Merrick B. Garland. “That is why the Justice Department has launched its new United Against Hate program. This initiative brings together community groups, community leaders, and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate.”
The first cohort of 16 USAOs rolling out United Against Hate programs this fall includes the following districts: Arizona, Central District of California, Eastern District of California, Connecticut, Idaho, Middle District of Louisiana, Southern District of New York, Western District of New York, Southern District of Ohio, Middle District of Pennsylvania, South Dakota, Southern District of Texas, Eastern District of Virginia, Vermont, Western District of Washington, and Western District of Wisconsin. The Department will expand the United Against Hate program to all 94 U.S. Attorneys’ Offices next year.
“U.S. Attorneys are critical partners in the Justice Department’s efforts to respond to hate crimes in communities across our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The stronger the ties between communities and law enforcement, the more faith that communities will have that their allegations will be investigated and taken seriously. This moment requires an all-hands-on-deck strategy to fully confront unlawful acts of hate. The United Against Hate program brings together the vast network of civil rights, government, faith, and community-based leaders needed to improve reporting, promote prevention strategies and build the resilience needed to confront hate crimes and incidents.”
“To effectively reduce hate crimes at the local level, it’s important to garner community buy-in,” said Director Monty Wilkinson of the Justice Department’s Executive Office for U.S. Attorneys (EOUSA). “That means building relationships with community leaders and residents, listening to their description of their community’s needs and priorities, and then effectively communicating how USAOs and other Justice Department efforts can address those issues and help to increase public safety. This program will build bridges among community members and law enforcement, helping them to work together to combat unlawful acts of hate.”
Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, United Against Hate promotes robust interaction between community members and law enforcement participants. Program topics include: defining hate crimes versus hate incidents; the importance of reporting unlawful acts of hate; providing options for responding to hate incidents when situations do not constitute a federal or state crime; and distinguishing unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
The launch follows a successful pilot of the program last spring by three USAOs — New Jersey, Massachusetts, and the Eastern District of Washington. Attorney General Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of the Attorney General’s memorandum on improving the Department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.
Development of the United Against Hate program was led by the Civil Rights Division. EOUSA and other components in the Department’s Hate Crimes Enforcement and Prevention Initiative, including the Community Relations Service, the Community Oriented Policing Services Office, the FBI, and the Office of Justice Programs, provided critical assistance in developing the program.
Justice Department Launches Nationwide Initiative to Combat Unlawful Acts of HateRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland announced today during the White House United We Stand Summit that over the next year, all 94 U.S. Attorneys’ Offices (USAOs) will host a new nationwide initiative to combat unlawful acts of hate. The United Against Hate program is convening local forums that connect community groups to federal, state, and local law enforcement to increase community understanding and reporting of hate crimes; build trust between law enforcement and communities; and create and strengthen alliances between law enforcement and other government partners and community groups to combat unlawful acts of hate.
“The Justice Department remains committed to enforcing federal hate crime laws,” said Attorney General Merrick B. Garland. “That is why the Justice Department has launched its new United Against Hate program. This initiative brings together community groups, community leaders, and law enforcement at every level to build trust and strengthen coordination to combat unlawful acts of hate.”
The first cohort of 16 USAOs rolling out United Against Hate programs this fall includes the following districts: Arizona, Central District of California, Eastern District of California, Connecticut, Idaho, Middle District of Louisiana, Southern District of New York, Western District of New York, Southern District of Ohio, Middle District of Pennsylvania, South Dakota, Southern District of Texas, Eastern District of Virginia, Vermont, Western District of Washington, and Western District of Wisconsin. The Department will expand the United Against Hate program to all 94 U.S. Attorneys’ Offices next year.
“It is my hope that this program will help connect our office and federal partners to cities and communities throughout Western Washington, where we can increase awareness and reporting of bias crimes and race-based threats,” said U.S. Attorney Nick Brown. “We all have a role to play in reporting acts of hate or hate speech that may be an early indicator of the troubling violence we are seeing too often in our communities.”
“U.S. Attorneys are critical partners in the Justice Department’s efforts to respond to hate crimes in communities across our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The stronger the ties between communities and law enforcement, the more faith that communities will have that their allegations will be investigated and taken seriously. This moment requires an all-hands-on-deck strategy to fully confront unlawful acts of hate. The United Against Hate program brings together the vast network of civil rights, government, faith, and community-based leaders needed to improve reporting, promote prevention strategies and build the resilience needed to confront hate crimes and incidents.”
“To effectively reduce hate crimes at the local level, it’s important to garner community buy-in,” said Director Monty Wilkinson of the Justice Department’s Executive Office for U.S. Attorneys (EOUSA). “That means building relationships with community leaders and residents, listening to their description of their community’s needs and priorities, and then effectively communicating how USAOs and other Justice Department efforts can address those issues and help to increase public safety. This program will build bridges among community members and law enforcement, helping them to work together to combat unlawful acts of hate.”
Through using hypothetical scenarios and video clips depicting real-life hate crime cases and stories, United Against Hate promotes robust interaction between community members and law enforcement participants. Program topics include: defining hate crimes versus hate incidents; the importance of reporting unlawful acts of hate; providing options for responding to hate incidents when situations do not constitute a federal or state crime; and distinguishing unlawful conduct from protected First Amendment activity, including identifying protected speech versus speech that advocates violence or encourages people to commit hate crimes.
The launch follows a successful pilot of the program last spring by three USAOs — New Jersey, Massachusetts, and the Eastern District of Washington. Attorney General Garland announced the conclusion of the pilot for the United Against Hate program at a Justice Department event in May commemorating the one-year anniversary of the Attorney General’s memorandum on improving the Department’s efforts to combat unlawful acts of hate and the enactment of the COVID-19 Hate Crimes and Khalid Jabara-Heather Heyer NO HATE Acts.
Development of the United Against Hate program was led by the Civil Rights Division. EOUSA and other components in the Department’s Hate Crimes Enforcement and Prevention Initiative, including the Community Relations Service, the Community Oriented Policing Services Office, the FBI, and the Office of Justice Programs, provided critical assistance in developing the program.
Jury Convicts Four Members of KC Street Gang of Drug-Trafficking ConspiracyRead the Press Release
KANSAS CITY, Mo. – Four Kansas City, Mo., men who were part of 246, a violent street gang, were convicted by a federal jury for their roles in a drug-trafficking conspiracy.
Ladele D. Smith, also known as “Dellio” and “Dog,” 35; David J. Duncan, IV, also known as “Deej” or “DJ,” 33; Roy Franklin, Jr., 31; and Gary O. Toombs, 42, were found guilty of participating in a conspiracy to distribute heroin, cocaine, oxycodone, and marijuana from Jan. 1, 2011, to Oct. 1, 2019. Smith, Duncan, and Franklin were also convicted of multiple counts that charged them with various drug-trafficking and firearms crimes, to include drive-by shooting and discharging a firearm during a crime of violence. Toombs was convicted of multiple counts that charged him with various drug-trafficking and firearms crimes as well.
The investigation into the 246 street gang, operating in the Kansas City metropolitan area, began in June 2017. The gang is an alliance of gang members from the 24th, 43rd, and 68th streets of Kansas City, Mo. Smith was identified as a leader of the gang, and Duncan, Franklin and Toombs as members of the gang.
Smith and Duncan are local rap artists who often posted to social media platforms, such as YouTube, with references to the 246 gang. In some of the videos, Smith and others show firearms and large amounts of cash. The social media posts also portrayed Smith and others wearing expensive jewelry, watches, hats, clothing and plate carrying vests that depicted 246 gang affiliation.
Members of the 246 gang used a residence in the 4400 block of Kensington, which is within 1,000 feet of George Washington Carver Dual Language School, a public elementary school, for gang and drug-trafficking business. No one utilized the house as a primary or permanent residence. On Oct. 2, 2019, law enforcement officers executed a search warrant at the house and seized heroin as well as two assault rifles and a stolen vehicle that had been used in a drive-by shooting. Officers also found a Glock 9mm semi-automatic pistol and a Century Arms International 7.62x39mm pistol under the couch in the living room and a Glock .40-caliber semi-automatic pistol on the kitchen cabinet.
Smith was arrested at his apartment on Oct 2, 2019. Officers searched his residence and found codeine, $31,601 in cash, and jewelry valued at over $40,000.
Duncan was also arrested at his apartment on Oct. 2, 2019. Officers searched his residence and found a Zastava 7.62 x 39mm rifle, a Norinco 7.62 x 39mm rifle, a Glock 9mm semi-automatic pistol, two loaded rifle magazines, and a loaded handgun magazine under the bed in a bedroom. Officers found $7,100 in cash and four bags of pills that contained oxycodone in the living room.
Smith, Franklin and Toombs also were found guilty of participating in a conspiracy to possess firearms in furtherance of a drug-trafficking crime.
Smith also was found guilty of possessing firearms in furtherance of a drug-trafficking crime, one count of distributing marijuana, one count of distributing marijuana near a school (within 1,000 feet of George Washington Carver Dual Language School), four counts of distributing heroin, and four counts of distributing heroin near a school (within 1,000 feet of George Washington Carver Dual Language School).
Franklin also was found guilty of two counts of distributing marijuana and two counts of distributing marijuana near a school (within 1,000 feet of George Washington Carver Dual Language School).
Duncan also was found guilty of possessing oxycodone the intent to distribute, one count of possessing firearms in furtherance of a drug-trafficking crime, and five counts of money laundering related to the purchases of money orders with drug-trafficking proceeds.
Toombs also was found guilty of maintaining a residence for the purpose of manufacturing, distributing, and using controlled substances.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for about six hours over two days before returning guilty verdicts to U.S. District Judge Greg Kays, ending a trial that began Aug. 29, 2022.
Eleven co-defendants in this case have pleaded guilty and been sentenced.
Sirrico L. Franklin, 31, of Raytown, Mo., was sentenced on May 31, 2022, to five years and eight months in federal prison without parole. Terrance Garner, 36, of Kansas City, Mo., was sentenced on June 21, 2022, to 10 years in federal prison without parole. Joshua Marchbanks, 32, of Kansas City, Mo., was sentenced on May 24, 2022, to three years and 10 months in federal prison without parole. Carleeon D. Lockett, 30, of Kansas City, Mo., was sentenced on May 31, 2022, to six years and eight months in federal prison without parole. Kenneth D. Scott, 26, of Kansas City, Mo., was sentenced on March 24, 2021, to three years and six months in federal prison without parole. Cordell Edwards, 34, of Kansas City, Mo., was sentenced on March 7, 2022, to five years in federal prison without parole. Michael E. Sims, 36, of Kansas City, Mo., was sentenced on June 28, 2022, to five years and five months in federal prison without parole. Cordarrel L. Scott, 36, of Kansas City, Mo., was sentenced on Dec. 15, 2020, to 18 months in federal prison without parole. Marco R. Maddox, 38, of Kansas City, Mo., was sentenced on May 27, 2022, to three years and five months in federal prison without parole. Cornelius Phelps, 36, of Lee’s Summit, Mo., was sentenced on April 27, 2022, to three years and 10 months in federal prison without parole. Herman G. Bell, 67, of Kansas City, Mo., was sentenced on June 22, 2022, to three years of probation.
Co-defendant Martin C. Garner, 35, of St. Louis, Mo., pleaded guilty on May 26, 2022, to his role in the drug-trafficking conspiracy and awaits sentencing.
Under federal statutes, Smith, Duncan, Franklin and Toombs each are subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Ashleigh Ragner, Mary Kate Butterfield and Ben Hurst. It was investigated by the FBI, the Kansas City, Mo., Police Department, IRS-Criminal Investigation, and the Missouri State Highway Patrol.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Jefferson City Man Indicted in $27.1 Million Dollar Bank Fraud SchemeRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City man has been indicted by a federal grand jury for a more than $27.1 million fraud scheme that included more than $12.4 million in PPP loans for four businesses, as well as a fraudulent loan for a development in Indiana.
Tod Ray Keilholz, 59, was charged in a 52-count indictment returned under seal by a federal grand jury in Jefferson City on Wednesday, Sept. 14. That indictment was unsealed and made public today after Keilholz was arrested without incident at his home.
Keilholz remains in federal custody pending a detention hearing on Sept. 20, 2022. The court granted the government’s motion for a detention hearing, which cited evidence that Keilholz posed serious risks of flight and obstruction of justice, as well as a threat to the safety of other persons and the community.
The federal indictment charges Keilholz with eight counts of bank fraud, six counts of making false statements to a financial institution, and four counts of making false statements to the Small Business Administration. These charges are related to four fraudulent Paycheck Protection Program loans and a multi-million-dollar fraud scheme related to a development in Valparaiso, Indiana.
The indictment also charges Keilholz with 24 counts of money laundering related to financial transactions of funds derived from his bank fraud scheme, and with 10 counts of aggravated identity theft related to the use of other people’s identities during the commission of his bank fraud scheme.
On March 27, 2020, The CARES Act established several new temporary programs and provided for the expansion of others to address the COVID-19 pandemic. Among these programs, the Paycheck Protection Program (PPP) authorized forgivable loans to small businesses to retain workers and maintain payroll, make mortgage interest payments, lease payments, and utility payments.
Keilholz was the sole owner of TRK Construction, LLC, TRK Valpo, LLC, TL Builders, LLC, and Project Design, LLC.
According to the indictment, Keilholz received a total of $12,430,932 in PPP loans for his four businesses. In each of those loan applications, the indictment says, Keilholz failed to disclose his ownership in the other three businesses, and made materially false and fraudulent claims in the loan applications and supporting documentation. Keilholz allegedly inflated the income of those businesses and claimed payrolls for employees who did not exist or no longer worked for him. Additionally, the indictment says, Keilholz applied for a $7,818,705 PPP loan for TRK Valpo but the loan was denied by the bank.
Keilholz received a $1,706,260 PPP loan for TRK Construction, a $3,618,815 PPP loan for TL Builders, a $3,903,857 PPP loan for Project Design, and a $3,202,000 PPP loan for TRK Valpo.
Keilholz also applied for second round PPP loans for TRK Construction, TL Builders, and Project Design. Each loan was rejected by the bank. Each loan would have been limited to $2 million based on each application.
Keilholz allegedly used PPP loan proceeds for unauthorized purposes other than legitimate payroll, lease and mortgage interest, and utilities as required by the PPP. Keilholz, through TRK Construction, had accrued substantial and delinquent indebtedness to a number of lenders, the indictment says, and all or part of these debts were satisfied by PPP loan proceeds.
The indictment also alleges that Keilholz identified his wife as an employee of TRK Construction, TRK Valpo, and Project Design, while she worked as a full-time employee of the state of Missouri as a budget analyst. Between May and December 2020, Keilholz’s wife received a total of $325,000 from TRK Construction, TRK Valpo, and Project Design funded with PPP loan proceeds.
In addition to the four fraudulent PPP loans, the indictment alleges that the fraud scheme included $3,526,771 in a loan and line of credit related to a development in Valparaiso.
According to the indictment, Keilholz signed a promissory note with Hawthorn Bank in 2017 for $550,000 for TRK Valpo, which financed the purchase of and was secured by the real property in Valparaiso. Keilholz signed another promissory note, for more than $1 million, in 2018 for TRK Construction as a line of credit secured by the Valparaiso property. This line of credit was ultimately increased to $2 million. Keilholz signed another promissory note for $976,771 for TRK Construction as a line of credit in 2018, which was secured by the Valparaiso property and two properties in Jefferson City.
On Feb. 7, 2020, the Hawthorn Bank loan officer responsible for those loans wrote a memorandum to those loan files that stated, in part, that Keilholz “needed to bring the loans current and demonstrate that the project remains viable or the bank would move forward with aggressive collection or liquidation of collateral.” Hawthorn Bank entered into a forbearance agreement with TRK Construction and TRK Valpo, and with Keilholz and his wife as guarantors of the three of those loans, on April 28, 2020.
On July 3, 2020, Keilholz allegedly used PPP loan funds to purchase a $3,302,830 cashier’s check, which was applied to the outstanding balances on the Hawthorn Bank loans.
The indictment alleges that Keilholz provided materially false information to Hawthorn Bank to obtain loans, loan extensions, loan renewals, and loan forbearance. Keilholz allegedly provided Hawthorn Bank with an insufficient funds check for payment of interest on loans.
The indictment also contains a forfeiture allegation, which would require Keilholz to forfeit to the government any property involved in, or derived from the proceeds of, the alleged offenses, including five properties in Jefferson City, one property in Valparaiso, one property in La Porte, Ind., six vehicles (a 2020 Chevrolet Silverado, a 2021 Chevrolet Tahoe, two 2021 Chevrolet Silverados, a 2019 BMW X5, and a 2017 Ford F250 Lariat), a 2020 John Deer ZTrak, a 2020 John Deere Tractor, a Kubota Compact Track Loader, two utility trailers and two enclosed cargo trailers.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General; the Small Business Administration, Office of Inspector General; the Treasury Inspector General for Tax Administration; the FBI; and IRS-Criminal Investigation.
Indiana Man Sentenced to Prison for Federal Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Steven Loren Mandrell, 44, of Indianapolis, Indiana, was sentenced today to two years and six months in prison, to be followed by three years of supervised release, for being a felon in possession of a firearm.
According to court documents and statements made in court, on April 20, 2021, law enforcement officers in Parkersburg pulled over a vehicle driven by Mandrell because it displayed a license plate for a different vehicle. As an officer approached the vehicle, Mandrell was seen leaning toward the steering wheel as if he was concealing something underneath the driver’s seat. Officers searched the vehicle and recovered two firearms under Mandrell’s seat, a Smith and Wesson .40-caliber pistol and a Bul Transmark 9mm pistol. Mandrell admitted to possessing the firearms.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Mandrell knew he was prohibited from possessing a firearm because of his prior felony convictions: for delivery of a controlled substance and unlawful entry of a building in Wood County Circuit Court on January 27, 2010; and for unauthorized use of a motor vehicle and failure to appear in Washington County, Ohio, Common Pleas Court on November 28, 2017.
Mandrell has a long criminal history across four states that totals 26 criminal convictions. His numerous misdemeanor convictions include battery, domestic battery, assault, prohibited possession of a firearm, fleeing from an officer, destruction of property, receiving or transferring stolen goods, contempt of court, and larceny.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-231.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments yesterday. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Tomah Man Charged with Wire Fraud & False Statements
Jonathan Walker, 44, Tomah, Wisconsin, is charged in a 12-count indictment that alleges he engaged in a scheme to defraud the United States and to obtain money by making false representations. Specifically, Walker is charged with 10 counts of wire fraud and 2 counts of making false statements.
The indictment alleges that Walker was the owner and operator of Walker Investment Properties, LLC (WIP) located in Tomah, a mechanical contracting business that offered electrical services and heating, ventilation, and air conditioning (HVAC) services, and that from July 2015 to June 2019, he sought and obtained federal contracts by alleging that WIP was a Service-Disabled Veteran-Owned Small Business (SDVOSB). Federal contracting officers may restrict competition for government contracts to SDVOSBs if the owner of a business is a veteran and has a service-connected disability. The indictment alleges that Walker was neither a veteran, meaning he did not serve in the active U.S. military, naval, air, or space service, nor did he suffer a disability incurred in the line of duty while in active US military, naval, air or space service.
The indictment alleges that the Department of Defense awarded two contracts to WIP totaling $1,927,536.79 for HVAC services and fire alarm installation at Fort McCoy, a U.S. Army installation located in Monroe County, Wisconsin, and that Walker caused WIP to issue invoices for services provided under these contracts that resulted in payments to WIP totaling $482,577.
If convicted, Walker faces a maximum penalty of 20 years in federal prison on each wire fraud charge and a maximum of 5 years on each false statement charge. The charges against him are the result of an investigation by the Department of Defense, Office of Inspector General; the Defense Criminal Investigative Service; and the General Services Administration, Office of Inspector General. Assistant U.S. Attorney Daniel Graber is handling the prosecution.
Three Dane County Residents Charged with Making False Statements During Firearm Purchases
Kassidy Garrett, 21, Tyler Seaton, 20, both of Fitchburg, Wisconsin, and Isaiah Phillips, 18, Madison, Wisconsin, are charged with making false statements during the purchase of firearms. The indictment charges Garrett with 4 counts of making a false statement on a Firearms Transaction Record form required by federal law during the purchase of firearms on four occasions in February, March, and April 2022. The indictment alleges that she indicated on the forms she was the actual buyer of the firearms, but in fact she was not the actual buyer. Making such a false statement during the purchase of a firearm is commonly known as a “straw purchase.”
The indictment also charges Seaton with 4 counts of making false statements by allegedly inducing and causing Garrett to falsely state that she was the actual buyer of the firearms, whereas both Seaton and Garrett knew she was not the actual buyer. Phillips is charged with 2 counts of making false statements by allegedly inducing and causing Garrett to falsely state that she was the actual buyer of the firearms during two of the purchases, whereas both Phillips and Garrett knew she was not the actual buyer.
If convicted, Garrett, Seaton, and Phillips face a maximum penalty of 5 years in federal prison on each count. The charges against them are the result of an investigation by the Fitchburg Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Monroe Police Department. Assistant U.S. Attorneys Corey Stephan and Kathryn Ginsberg are handling the prosecution.
La Crosse Man Charged with Drug & Gun Crimes
Jade Deeny, 26, La Crosse, Wisconsin, is charged with distributing cocaine, possessing cocaine with the intent to distribute, possessing 50 grams or more of methamphetamine with the intent to distribute, and using and maintaining a place for the distribution of cocaine. The indictment also charges him with possessing loaded firearms in furtherance of a drug trafficking crime and with being a felon in possession of a firearm. The indictment alleges that these offenses occurred in June 2022.
If convicted, Deeny faces a maximum penalty of 20 years of the charges of distributing cocaine and possessing cocaine for distribution, a mandatory minimum of 5 years and a maximum of 40 years on the charge of possessing 50 grams or more of methamphetamine for distribution, and a maximum of 20 years on the charge of maintaining a drug house. The charge of possessing loaded firearms in furtherance of a drug trafficking crime carries a mandatory minimum penalty of 5 years and a maximum of life. Any sentence imposed on this charge must be served consecutively to any other prison sentence imposed. The maximum penalty on the charge of being a felon in possession of a firearm is 10 years.
The charges against Deeny are the result of an investigation by the La Crosse Police Department and Federal Bureau of Investigation. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
The charges against Garrett, Seaton, Phillips, and Deeny are brought as 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. Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
North Carolina Man Charged with Receiving Child Pornography
Christopher Bell, 37, Lumberton, North Carolina, formerly of Fond du Lac, Wisconsin, is charged with receiving child pornography. The indictment alleges that on April 18, 2022, Bell received an image sent via Snapchat of a minor engaging in sexually explicit conduct.
If convicted, Bell faces a mandatory minimum penalty of 5 years and a maximum of 20 years in federal prison. The charge against him is the result of an investigation by the Wisconsin Rapids Police Department and the Fayetteville, North Carolina office of the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Washburn County Woman Charged with Tax Crimes
Deborah Brown, 67, Birchwood, Wisconsin, is charged with 13 counts of failing to pay over to the Internal Revenue Service taxes due to the United States on behalf of Omni Designs International, Inc. (Omni), located in Birchwood. The indictment alleges that Brown, as the co-owner and operator of the business, was responsible for bookkeeping and made the financial decisions for the company, including the payment of employment taxes.
The indictment alleges that from July 1, 2016 to September 30, 2019, Brown failed to pay over to the Internal Revenue Service payroll taxes due to the United States on behalf of Omni and its employees for 13 consecutive quarters. The indictment alleges that Brown failed to pay approximately $239,000 in income, Social Security, and Medicare taxes withheld from wages paid to Omni’s employees.
If convicted, Brown faces a maximum penalty of 5 years in federal prison on each count. The charges against her are the result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Daniel Graber is handling the prosecution.
Georgia Pair Plead Guilty to Conspiracy to Use False or Counterfeit PassportsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DANIELLE DORSETT, age 54, and her brother, BYRON J. LAFOREST, age 50, both residents of Atlanta, Georgia, pleaded guilty before U.S. District Judge Carl J. Barbier to conspiracy to use false or counterfeit passports. Judge Barbier scheduled their sentencings for January 5, 2023.
According to court records, beginning in November 2021, DORSETT and LAFOREST obtained counterfeit passport cards with the names and other details of victims whose personal identifying information they stole. While these cards had victims’ personal information, they had DORSETT’s or LAFOREST’s photograph. DORSETT and LAFOREST then used these cards to withdraw money from their victims’ bank accounts. Over the course of the conspiracy, DORSETT and LAFOREST used the personal information of at least six individuals to withdraw (or attempted to withdraw) funds from these individuals’ accounts. They withdrew money from bank branches in Florida, Louisiana, and Texas.
The scheme drew to a close in early 2022. On January 28, 2022, DORSETT was arrested by Jefferson Parish Sheriff’s Office deputies while attempting to obtain a victim’s bank statement at an IberiaBank branch in Harvey, Louisiana. DORSETT was released on bond after her arrest. Approximately two weeks later, on February 14, 2022, she and LAFOREST were arrested together at a hotel in New Orleans East by federal agents. In the hotel room, agents recovered several additional false passport cards that portrayed LAFOREST’s photograph, but provided the victims’ personal identifying information instead.
DORSETT and LAFOREST each face a sentence of up to five years in prison, a up to a $250,000 fine, up to three years of supervised release after imprisonment and a mandatory $100 special assessment fee, pursuant to Title 18, United States Code, Section 1029(a)(2).
U.S. Attorney Evans praised the work of the Diplomatic Security Service’s New Orleans Field Office in investigating this matter. U.S. Attorney Evans thanked the Jefferson Parish Sheriff’s Office and the District Attorney’s Office for the 24th Judicial District for their assistance in this prosecution. Assistant U.S. Attorney Matthew R. Payne is in charge of the prosecution.
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GOL Linhas Aéreas Inteligentes S.A. Will Pay over $41 Million in Resolution of Foreign Bribery Investigations in the United States and BrazilRead the Press Release
GOL Linhas Aéreas Inteligentes S.A. (GOL), an airline headquartered in São Paulo, Brazil, will pay more than $41 million to resolve parallel bribery investigations by criminal and civil authorities in the United States and Brazil. According to court documents, GOL entered into a three-year deferred prosecution agreement (DPA) with the Department of Justice in connection with a criminal information filed in the District of Maryland charging the company with conspiracy to violate the anti-bribery and books and records provisions of the Foreign Corrupt Practices Act (FCPA).
Pursuant to the DPA, GOL will pay a criminal penalty of $17 million. The department has agreed to credit up to $1.7 million of that criminal penalty against an approximately $3.4 million fine the company has agreed to pay to authorities in Brazil in connection with related proceedings to resolve an investigation by the Controladoria-Geral da União (CGU) and the Advocacia-Geral de União (Attorney General’s Office). In addition, GOL will give up approximately $24.5 million over two years as part of the resolution of a parallel investigation by the U.S. Securities and Exchange Commission (SEC).
“GOL paid millions of dollars in bribes to foreign officials in Brazil in exchange for the passage of legislation that was beneficial to the airline,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The company entered into fraudulent contracts with third-party vendors for the purpose of generating and concealing the funds necessary to perpetrate this criminal conduct, and then falsely recorded the sham payments in their own books. Today’s resolution demonstrates the Department of Justice’s commitment to holding accountable companies that corrupt the functions of government for their own financial gain.”
“Our office’s strong working relationship with the Department of Justice’s Fraud Section demonstrates our commitment to weed out corruption by companies that operate throughout Maryland,” said U.S. Attorney Erek Barron for the District of Maryland. “I am committed to ensuring that any company operating in this District does so lawfully and ethically without corrupt conduct.”
“Companies bribing their way to profits will ultimately pay the price for their crimes,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “GOL paid off foreign officials to pass favorable legislation and then tried to conceal its bribes as legitimate transactions. Today’s settlement is proof that the FBI and our law enforcement partners will work to eliminate corruption anywhere it occurs, whether at home or abroad.”
According to the company’s admissions and court documents, between 2012 and 2013, GOL conspired to offer and pay approximately $3.8 million in bribes to foreign officials in Brazil. Specifically, GOL caused multiple bribe payments to be made to various officials in Brazil to secure the passage of two pieces of legislation favorable to GOL. The legislation involved certain payroll tax and fuel tax reductions that financially benefitted GOL, along with other Brazilian airlines.
According to court documents, in order to effectuate the bribery scheme, a member of GOL’s Board of Directors caused GOL to enter into sham contracts with, and make payments to, various entities connected to the relevant Brazilian officials. GOL maintained books and records that falsely listed the corrupt payments as legitimate expenses, including as advertising expenses and other services.
As part of the DPA, GOL has agreed to continue to cooperate with the department in any ongoing or future criminal investigations relating to this conduct. In addition, under the agreement, GOL agreed to continue to enhance its compliance program and provide reports to the department regarding remediation and the implementation of compliance measures for the term of the DPA.
The government reached this resolution with GOL based on a number of factors, including, among others, the nature, seriousness, and pervasiveness of the offense. GOL received full credit for its cooperation with the department’s investigation, which included, among other things, timely providing the facts obtained through the company’s internal investigation – which included reviewing voluminous documents, interviewing witnesses, conducting background checks, and testing over two thousand transactions. The company promptly engaged in remedial measures by, among other things, redesigning its entire anti-corruption program. Accordingly, the criminal penalty calculated under the U.S. Sentencing Guidelines reflects a 25% reduction off the bottom of the applicable guidelines fine range. Due to GOL’s financial condition and demonstrated inability to pay the penalty calculated under the U.S. Sentencing Guidelines, however, GOL and the department agreed, consistent with the department’s inability to pay guidance, that the appropriate criminal penalty is $17 million.
The FBI’s Los Angeles Field Office is investigating the case. Assistant Chief Derek J. Ettinger and Trial Attorney Joseph McFarlane of the Criminal Division’s Fraud Section, as well as Assistant U.S. Attorney David I. Salem of the District of Maryland, are prosecuting the case. Authorities in Brazil provided assistance in this matter, as did the Criminal Division’s Office of International Affairs.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
Fort Wayne Man Convicted of Firearm OffenseRead the Press Release
FORT WAYNE – Henry Underwood, 28 years old, of Fort Wayne, Indiana, was found guilty following a three-day jury trial presided over by United States District Court Judge Holly A. Brady, announced United States Attorney Clifford D. Johnson.
Underwood was found guilty of the single-count Indictment charging him with being a convicted felon in possession of a firearm and ammunition, for conduct occurring in Fort Wayne, Indiana, in December of 2019.
Underwood will be scheduled for sentencing by separate order of the Court. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department and the Indiana State Police laboratory. This case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Anthony W. Geller.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Former head of Gulf Cartel receives life sentence for importing kilos of drugsRead the Press Release
BROWNSVILLE, Texas – A 51-year-old Mexican national who was head of Cartel del Golfo (CDG) from 2003 to 2012 has been ordered to prison and to pay millions for his role in conspiring to distribute cocaine and marijuana from Mexico into the United States, announced U.S. Attorney Jennifer B. Lowery.
Jorge Costilla-Sanchez pleaded guilty Sept. 26, 2017.
Today, U.S. District Judge Fernando Rodriguez Jr. ordered Costilla-Sanchez to serve the rest of his life in federal prison. At the hearing, the court heard additional information detailing how Costilla-Sanchez profited $5 million from drug trafficking. He was ordered to pay a money judgment in that amount. In handing down the sentence, Judge Rodriguez noted Costilla-Sanchez’s extensive involvement in trafficking illegal drugs into the country. The court commented that during the 10 years Costilla-Sanchez was the head of the CDG, he lead a violent criminal organization, using guns and intimidation to maintain control of their illegal drug trafficking enterprise and resorting to violence and killing to maintain power.
“This was a long, but very important case to the district and especially our partners in Brownsville," said Lowery. "The life sentence speaks for itself. Justice has now been served.”
“Today’s sentencing is the culmination of years of relentless work by Homeland Security Investigations (HSI) and its partners targeting the Cartel del Gulfo,” said Acting Special Agent in Charge Craig Larrabee of HSI - San Antonio. “This investigation highlights HSI’s dedication to go after cartel members importing dangerous drugs into our communities. This sentence will send a resounding message that transnational criminal organizations are being continuously investigated and their leaders will be brought to justice.”
“High-ranking drug trafficking leaders like Costilla-Sanchez are not immune from facing stiff punishments,” said Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration (DEA) - Houston Division. “Costilla-Sanchez brought poison to our communities, and our collaborative efforts with our local and federal partners brought him to prison. We will continue to aggressively go after any drug trafficking organization wanting to profit from our communities.”
“This sentencing sends a clear message that organized drug trafficking organizations and threats against law enforcement will not be tolerated,” said FBI Special Agent in Charge Oliver E. Rich Jr. “The FBI continues to work alongside our partners to pursue and prosecute the leadership of drug trafficking cartels and dismantle their organizations. We thank the Organized Crime Drug Enforcement Task Force (OCDETF) for their collective efforts to bring this high-level criminal to justice.”
Costilla-Sanchez aka El Cos, Doble X and Dos Equis became head of CDG after the arrest of former CDG leader Osiel Cardenas in 2003. Prior to joining the cartel, Costilla-Sanchez was a municipal police officer in Matamoros, Tamaulipas, Mexico.
He was arrested in 2012 in Mexico at the request of the United States and in 2015. Costilla-Sanchez also previously pleaded guilty to threatening two federal agents from the FBI and while he was being investigated for drug trafficking in 1999.
CDG is a Mexican transnational criminal organization operating in Tamaulipas, Mexico. During the time Costilla-Sanchez was the leader, he was responsible for importing over 10,000 kilograms of cocaine and 140,000 kilograms of marijuana to the United States.
Costilla-Sanchez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
HSI, DEA and FBI conducted the OCDETF operation with the assistance of the U.S. Marshals Service and IRS-Criminal Investigation.
OCDETF identifies, disrupts and dismantles the highest-level drug traffickers, money launderers, gangs and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
Assistant U.S. Attorneys Jody Young and Karen Betancourt prosecuted the case. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Costilla-Sanchez to the United States.
Former President of Washington State Manufacturer Charged with Selling Tainted Fruit JuiceRead the Press Release
A federal grand jury in Yakima, Washington, returned an indictment charging a Washington woman and her now-closed company with manufacturing and distributing tainted fruit juice and deceiving customers about the contaminated products.
The indictment alleges that Mary Ann Bliesner, 80, of Sunnyside, Washington, and her company, Valley Processing Inc. (VPI), conspired with others to distribute tainted and potentially unsafe apple and grape juice concentrate to customers in the United States and abroad. The indictment alleges that between October 2012 and June 2019, Bliesner’s juice products were made under insanitary conditions and contained potentially harmful levels of contaminants, such as arsenic.
The indictment further alleges that Bliesner (the former president and primary owner of VPI) and VPI lied to customers about the age and quality of their products. The indictment alleges that in some instances, the defendants sold juice products after storing them for years outside and exposed to the elements. According to the indictment, at least some of those products later were sold to customers who supplied the National School Lunch Program, which provides free or reduced-cost lunches to children. The indictment additionally alleges that Bliesner and VPI failed to register two facilities that they used to store fruit juice products and lied to inspectors with the U.S. Food and Drug Administration (FDA) about the existence and use of those facilities.
In November 2020, the United States filed a civil complaint in federal court seeking to enjoin Bliesner and VPI from producing, storing or selling juice or juice products. In January 2021, Bliesner and VPI agreed to a consent injunction in which Bliesner and VPI promised that they were no longer processing, manufacturing, preparing, packing, holding or distributing any type of food, and would not do so in the future without first notifying and receiving approval from the FDA. VPI subsequently closed.
The criminal indictment returned today charges Bliesner with 12 felony counts of fraud, conspiracy, false statements, and violating the Food, Drug, and Cosmetic Act. The defendant is scheduled for her initial court appearance Oct. 5 before U.S. Magistrate Judge Alex Ekstrom of the U.S. District Court for the Eastern District of Washington. If convicted, she faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA’s Office of Criminal Investigations investigated the case. Trial Attorney James J. Hennelly and Senior Trial Attorney David Gunn of the Justice Department’s Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorneys Dan Fruchter and Tyler H.L. Tornabene for the Eastern District of Washington are prosecuting the case.
For more information about the enforcement efforts of the Consumer Protection Branch, visit their website at http://www.justice.gov/civil/consumer-protection-branch.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Maui Public Official and Honolulu Businessman Charged with Federal Bribery and Honest Services Fraud OffensesRead the Press Release
HONOLULU – United States Attorney Clare E. Connors and Federal Bureau of Investigation Special Agent in Charge Steven Merrill announced that Stewart Olani Stant, 55, a former Maui County public official, and Milton Choy, 60, a Honolulu businessman, have been charged with felony offenses stemming from their operation of a long running bribery scheme. The charges—which were brought in two separate criminal Informations unsealed today—allege that Choy bribed Stant with cash, bank deposits, and gambling trips to Las Vegas in order to receive lucrative sole source contracts from Maui County’s Department of Environmental Management. A court appearance for both defendants is scheduled for Monday, September 19th.
One Information alleges that Stant was a public official employed by Maui County’s Department of Environmental Management (“DEM”), and served as its Director between approximately December 2015 and December 2018. The Information alleges that between October 2012 and December 2018, Stant accepted bribes from Choy comprised of cash, bank deposits, casino chips, travel benefits, and/or other gifts, totaling up to $2,000,000, in exchange for Stant’s agreement, in his official capacity as a Maui County official at DEM, to steer and award over $19 million dollars in sole source contracts and purchase orders to Choy’s company, H2O Processes, LLC. This Information charges that by accepting the bribes to funnel contracts to H2O, and corruptly failing to disclose them, Stant conspired to commit honest services wire fraud and deprived the citizens of Maui County of their right to his honest and conflict free services as a public official.
A second Information charges Choy with corruptly bribing Stant over the same six-year period alleged in the Stant Information. Choy’s Information charges that his bribery of a local official, Stant, violated federal law because the value of the contracts exceeded $5,000 and Maui County received more than $10,000 in federal funding during each of the calendar years of the continuing bribery scheme.
If convicted, Stant faces a sentence of up to 20 years imprisonment, and a fine of up to $250,000. If convicted, Choy faces a sentence of up to 10 years imprisonment, and a fine of up to $250,000. An Information is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The investigation in the case was conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Ken Sorenson, Micah Smith and Michael Albanese of the District of Hawaii are prosecuting the case.
Former Kansas City, Kansas, Police Department Detective Indicted for Sexual AssaultsRead the Press Release
A federal grand jury in Topeka, Kansas, returned a six-count indictment, unsealed today, charging former Kansas City, Kansas, Police Department detective Roger Golubski with federal civil rights crimes for sexually assaulting two victims while acting under color of law.
The first three counts of the indictment charge Golubski with sexually assaulting the first victim on multiple occasions between 1998 and 2001 by digitally penetrating her and forcing her to perform oral sex on him in his vehicle; by raping her in his vehicle; and by performing oral sex on her, making her perform oral sex on him and raping her in and next to his vehicle. The remaining three counts of the indictment charge Golubski with sexually assaulting the second victim on multiple occasions between 1999 and 2002 by raping her in her home; making her perform oral sex on him in his vehicle; and making her perform oral sex on him and raping her in her home. The indictment alleges that Golubski’s conduct included aggravated sexual abuse and kidnapping.
If convicted, Golubski faces a maximum sentence of life in prison.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Duston Slinkard for the District of Kansas, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division and Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office made the announcement.
The FBI Kansas City Field Office investigated the case in conjunction with the Kansas Bureau of Investigation. Assistant U.S. Attorney Stephen Hunting of the District of Kansas and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.
This investigation is ongoing. Anyone with additional information is encouraged to call the FBI at 1-800-CALL-FBI.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Florida Atlantic University Student Pleads Guilty to Production of Child PornographyRead the Press Release
Miami, Florida – Shawn Anthony Jackson Outler, 23, has pled guilty in Ft. Pierce federal court to producing child pornography.
According to court records, Outler formed online relationships with children as young as 12 through social media. After befriending the minors, he would entice them to create sexually explicit videos. He also directed them to engage in sexually explicit activity by video conferencing. Outler directed one 14-year-old victim to masturbate during one such conference. He took and saved screenshots of the activity.
At sentencing, Outler faces between 15 and 30 years in prison and up to a lifetime of supervised release. Sentencing is set for December 16, 2022, at 10:10 a.m., before U.S. District Judge Aileen M. Cannon.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Acting Special Agent in Charge Robert M. DeWitt, FBI Miami made the announcement.
FBI Miami investigated the case. Assistant United States Attorney Diana Acosta is prosecuting it.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-14018.
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Former Employee Admits Embezzling $339,000 from St. Louis County CompanyRead the Press Release
ST. LOUIS – A man from Waterloo, Illinois on Thursday admitted embezzling $339,844 from his former employer.
Ronald Scott Miller, 54, pleaded guilty in front of U.S. District Judge Stephen R. Clark to one count of wire fraud and admitted using several schemes between March 27, 2014 and Sept. 29, 2020, to steal the money.
Miller was the warehouse and labor supervisor for a small floor covering business in St. Louis County, responsible for supervising the company’s installers, scheduling their weekly shifts and drafting their timesheets. He also had the authority to hire flooring installers.
Miller submitted false timesheets for himself, his partner and his son. His partner did not work for the company, but Miller submitted timesheets anyway, then collected the paycheck and forged his partner’s signature to deposit it in his own account.
Miller falsely inflated the hours worked by his son without his son's knowledge and did the same for himself by claiming he was working on installation projects when he was not.
Miller also submitted fraudulent invoices in the name of two fake companies, claiming he had made purchases there. Miller created accounts with Square Inc. in the names of those companies so he could pay himself with company credit cards or caused the company to issue checks to pay the fake invoices.
Finally, Miller altered and inflated receipts for legitimate purchases that he made and then sought reimbursement from his company.
Miller is scheduled to be sentenced December 28. The wire fraud charge carries a penalty of up to 20 years in prison, a $250,000 fine, or both.
The FBI and the Maryland Heights Police Department investigated this case. Assistant U.S. Attorney Derek Wiseman is prosecuting the case.
Former Elected County Coroner Convicted for Illegal Distribution of Controlled SubstancesRead the Press Release
A federal jury convicted a Kentucky man today for illegally prescribing controlled substances Oxycontin, Klonopin, Ambien, and Valium in violation of the Controlled Substances Act.
According to court documents and evidence presented at trial, Dr. David Suetholz, 71, of Ludlow, unlawfully prescribed controlled substances to his patients outside the usual course of professional practice and not for a legitimate medical purpose. Some patients were prescribed high doses of medication and in dangerous combinations without justification. Suetholz also prescribed to patients without assessing their risks for addiction or their past history of substance abuse.
Suetholz was convicted of 12 counts of unlawful distribution of a controlled substance. He is scheduled to be sentenced on March 22, 2023, and faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Carlton S. Shier, IV for the Eastern District of Kentucky; Assistant Director Luis Quesada of the FBI's Criminal Investigative Division; Administrator Anne Milgram of the Drug Enforcement Administration (DEA); Special Agent in Charge Tamala E. Miles of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and Kentucky Attorney General Daniel Cameron made the announcement.
The FBI, DEA, HHS-OIG, and the Kentucky Medicaid Fraud Control Unit investigated the case.
Trial Attorneys Dermot Lynch and Maryam Adeyola of the Criminal Division’s Fraud Section are prosecuting the case.
Former Dean of USC’s Social Work School Agrees to Plead Guilty to Bribery for Funneling $100,000 Payment to Secure County ContractRead the Press Release
PLEA AGREEMENTLOS ANGELES – The former dean of the University of Southern California’s school of social work has agreed to plead guilty to a federal charge that she bribed longtime politician Mark Ridley-Thomas by funneling $100,000 he provided from his campaign account through USC to a nonprofit operated by his son to obtain a lucrative county contract, the Justice Department announced today.
Marilyn Louise Flynn, 83, of Los Feliz, agreed to plead guilty to one count of bribery and pay a fine of no less than $100,000. She is expected to plead guilty to the charge in the coming weeks.
Ridley-Thomas, currently a Los Angeles city councilmember who was suspended from office pending his federal criminal trial, has pleaded not guilty to one count of conspiracy, one count of bribery, two counts of honest services mail fraud and 15 counts of honest services wire fraud in connection with a federal indictment stemming from his time as a Los Angeles County supervisor. His trial is scheduled for November 15.
According to her plea agreement, from 1997 to 2018, Flynn was a tenured faculty member at USC and the dean of its social work school. In 2018, Flynn was seeking an amendment to an existing contract between USC’s social work school and the Los Angeles County Department of Mental Health (DMH) related to services provided by USC Telehealth. Telehealth was a clinic in which social work school students provided online mental health and counseling services to patients referred by the county. USC and the social work school received compensation in return for services rendered. According to the indictment, at the time Flynn sought the lucrative county contract amendment, the social work school was facing a multimillion-dollar budget deficit.
In April 2018, Ridley-Thomas, then serving as an elected official on the Los Angeles County Board of Supervisors, understood Flynn wanted to secure an amended Telehealth contract with DMH and the county, the plea agreement states. He also understood that she very much wanted a meeting with a particular high-level county official to move the amended Telehealth contract forward in the county approval process.
At Ridley-Thomas’s request, Flynn agreed to have USC serve as a conduit for a $100,000 payment from his campaign account to the social work school. Per their agreement, Flynn then arranged for a nearly simultaneous $100,000 payment from USC to the United Ways of California for the benefit of the Policy, Research & Practice Initiative (PRPI), a new nonprofit initiative led by Ridley-Thomas’s son, who had recently and abruptly resigned from his elected position in the California State Assembly. According to the indictment, Ridley-Thomas’s son resigned while the subject of an internal sexual harassment investigation and needed funds to support PRPI, which Ridley-Thomas hoped to supply but without any public connection to himself or his campaign account.
To facilitate their scheme, Flynn and Ridley-Thomas concealed from USC that Ridley-Thomas had directed a $100,000 payment to USC with the intent that the funds be used to support USC’s nearly simultaneous $100,000 payment to United Ways and PRPI, the plea agreement states. Had it known this fact, USC would not have approved the $100,000 payment.
To expedite the payment and meet a deadline set by Ridley-Thomas, Flynn also violated USC policy by improperly using a vendor account at USC to process the $100,000 payment. According to the plea agreement, Flynn’s use of this vendor account violated USC policy because, as she knew, United Ways and PRPI were not vendors providing services to USC. But for Flynn’s violation of USC policy, USC would have declined to make the $100,000 payment.
Immediately after Flynn informed Ridley-Thomas that the USC payment to United Ways and PRPI had been “cleared,” the plea agreement states that Ridley-Thomas facilitated a May 10, 2018 meeting between Flynn and the high-level county official to move forward expeditiously on the county’s approval of the amended Telehealth contract.
On May 11, 2018, the day United Ways and PRPI received the $100,000 check from USC, Ridley-Thomas emailed Flynn to discuss county business – in his words, to talk about “master contract stuff” and “somehow use yesterday’s ‘discussion’ to advance it [winking face emoji].”
Ridley-Thomas later voted in favor of Flynn’s desired amendment to the Telehealth contract with DMH, according to the indictment.
Upon pleading guilty, Flynn will face a statutory maximum sentence of 10 years in federal prison. Prosecutors have agreed to recommend she satisfy her custodial term by way of home confinement and also have agreed to seek a fine of no more than $150,000 against Flynn.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI is investigating this matter.
Assistant United States Attorneys Lindsey Greer Dotson, Ruth C. Pinkel, and Thomas F. Rybarczyk of the Public Corruption and Civil Rights Section are prosecuting this case.
Florissant Bank Manager Accused of Defrauding Elderly CustomersRead the Press Release
ST. LOUIS – A bank branch manager from Florissant, Missouri appeared in court Thursday to answer charges accusing her of stealing $175,000 from elderly customers.
Andrea Nicole Hopkins, 28, was indicted September 7 on four felony counts of bank fraud. She pleaded not guilty Thursday.
Hopkins’ indictment alleges that from Feb. 20, 2020 to May 25, 2021, while manager of the Commerce Bank branch on Natural Bridge Avenue in St. Louis, she devised a scheme to divert money from numerous customer accounts for her own use.
Hopkins targeted elderly customers, including two 80-year-olds, one 95-year-old and one 82-year-old, the indictment says. She logged into customer accounts and transferred funds out, the indictment says, sometimes obtaining cashier’s checks or prepaid cards. She changed the address on some account statements, forged customer signatures and transferred funds among customers to try and hide the thefts, the indictment says.
In all, Hopkins fraudulently diverted $328,273 from customer accounts, but $152,431 of that she transferred internally among customers to hide her theft, the indictment says.
Each bank fraud count is punishable by up to 30 years in prison and a fine of $1 million.
Charges set forth in an indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorney Kyle T. Bateman is prosecuting the case.
Florida Businessman Pleads Guilty in Three Cases Involving Conspiracies to Commit Health Care Fraud, Pay and Receive Unlawful Kickbacks, and Money LaunderingRead the Press Release
PITTSBURGH, Pa. – A resident of Fort Lauderdale, Florida, pleaded guilty in federal court to three counts of conspiracy related to the submission of fraudulent health care claims, United States Attorney Cindy K. Chung announced today.
Daniel Hurt, 58, pleaded guilty to one count of conspiracy to commit health care fraud, pay and receive unlawful kickbacks, and commit money laundering, as charged in a criminal Information filed in the Western District of Pennsylvania on July 26, 2022; one count of conspiracy to commit health care fraud, as charged in a criminal Information filed in the District of New Jersey on August 31, 2022; and one count of conspiracy to pay and receive kickbacks, as charged in a Second Superseding Indictment filed in the Southern District of Florida. Prior to the defendant’s guilty pleas, the cases originating in the District of New Jersey and the Southern District of Florida were transferred to the Western District of Pennsylvania.
As to the conduct originating in the Western District of Pennsylvania, Hurt admitted during his plea hearing that beginning in late 2018 and continuing through approximately October 2019, he participated in a conspiracy related to Medicare billing for cancer genomic (CGx) testing. CGx testing used DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future. CGx testing, however, was not a method of diagnosing whether an individual presently had cancer. Hurt admitted that he and his co-conspirators, including individuals associated with so-called marketing entities, acquired thousands of testing samples from Medicare beneficiaries located throughout the United States. Marketers used targeted campaigns to induce beneficiaries to submit CGx specimens by means of cheek swabs sent to their homes or provided to them at purported “health fairs” held throughout the United States.
Hurt subsequently caused CGx specimens to be sent to Ellwood City Medical Center (ECMC), a hospital located in Ellwood City, Pennsylvania. Hurt further used ECMC as the billing entity for Medicare purposes despite the fact that the facility did not possess properly validated equipment to conduct any CGx testing on-site and, as such, ECMC staff were required, at Hurt’s direction, to repackage the samples and send them to third-party reference laboratories that were capable of completing the testing. In order to justify Medicare reimbursement for the CGx testing, Hurt and his co-conspirators obtained CGx prescriptions from telemedicine physicians without regard to the fact that the doctors did not conduct proper telemedicine visits, were not treating the Medicare beneficiaries for cancer or symptoms of cancer, and did not use the test results in the treatment of the beneficiaries. Hurt further admitted causing ECMC to submit Medicare claims for CGx testing that regularly exceeded $12,000 per beneficiary. In total, between approximately January 2019 and October 2019, Medicare reimbursed ECMC more than $25 million for CGx testing. During this time, Hurt directed ECMC staff to transfer millions of dollars from ECMC-related accounts to bank accounts that Hurt controlled. In turn, Hurt admitted using funds he obtained from ECMC to pay millions of dollars in kickbacks to the marketers, among others, in exchange for their efforts to obtain CGx samples. To disguise such kickbacks, Hurt entered into sham contracts with the marketers to make it appear that they were engaged in, and being paid for, legitimate marketing and referral services. Likewise, Hurt, acting through entities he controlled, entered into similar agreements and business arrangements with ECMC that disguised the payments he obtained from the facility as purportedly legitimate payments, including payments related to management services at ECMC’s laboratory. Payments, in fact, were based on the volume of CGx tests and the amount of resulting Medicare reimbursements. Finally, Hurt admitted that he and others used a portion of Medicare reimbursements obtained through the fraudulent submission of CGx claims to engage in monetary transactions in excess of $10,000, including approximately $3 million in payments toward the purchase of a luxury watercraft in Florida called “In My DNA.”
As to the conduct originating in the District of New Jersey, Hurt admitted his involvement in a similar but separate conspiracy between January 2019 and October 2021. Specifically, Hurt admitted that he owned several clinical laboratories that conducted or arranged for a variety of medical tests, and that he paid kickbacks and bribes to various entities who supplied referrals and orders for CGx for Medicare and other health care benefit program beneficiaries, without regard to medical necessity. The Hurt-controlled laboratories submitted claims for payment to Medicare for these CGx tests, and Medicare reimbursed the laboratories without knowing that the services were not medically necessary or were procured through the payment of kickbacks. During the conspiracy, Hurt, through the laboratories, submitted or caused to be submitted claims to Medicare, including claims for beneficiaries residing in New Jersey. Hurt likewise admitted paying kickbacks to entities who supplied referrals for each CGx test that was billed to Medicare and other health care benefit programs. To conceal the payments of bribes, Hurt and the suppliers entered into sham contracts to make it appear that the suppliers were engaged in, and being paid for, legitimate marketing and referral services. This conspiracy resulted in Medicare paying the Hurt-controlled laboratories at least $53.3 million for CGx test claims, with Hurt receiving at least $26.9 million from the Medicare reimbursements.
As to the conduct originating in the Southern District of Florida, Hurt admitted that he and his co-conspirators were engaged in a scheme to defraud health insurance plans, including two plans funded by the U.S. government, TRICARE and CHAMPVA. TRICARE provides worldwide health care benefits to military personnel and their dependents, as well as military retirees. CHAMPVA operates through the Department of Veteran’s Affairs and shares the costs of health care services for eligible beneficiaries, including veterans. Hurt admitted that he and his co-conspirators participated in a scheme to bill TRICARE, CHAMPVA, and other insurance providers for expensive compounded medications that were not medically necessary. Hurt and his co-conspirators worked with patient recruiters to solicit patients who had health care insurance, including TRICARE and CHAMPVA. The patient recruiters, in turn, would generate prescriptions containing the patients’ information, and a limited selection of expensive compounded medications. These prescriptions, which used formulations created or altered to obtain the maximum possible reimbursement from the insurance companies, were then referred to a telemedicine service located in Utah. Hurt and his co-conspirators paid for the telemedicine services only after the prescriptions had been generated, and the prescriptions were then sent to a pharmacy owned by Hurt and his coconspirators.
Beginning in the fall of 2014, Hurt and two co-conspirators formed a corporation, OptimuMD. Through OptimuMD, Hurt and his co-conspirators purchased a three (3) percent interest in Executive Pharmacy, located in Broward County, Florida. In return, Hurt and his co-conspirators were to receive up to 70% of the gross revenues from Executive Pharmacy. During the conspiracy,
Hurt and his co-conspirators directed patient recruiters and the telemedicine service to send thousands of medically unnecessary prescriptions to Executive Pharmacy. After filling the prescriptions, the pharmacy would bill the patients’ insurance plan thousands of dollars for the compounded medications. Once the pharmacy received payment for the prescriptions, the pharmacy would then pay a kickback to Hurt and his co-conspirators. Hurt and his co-conspirators would then pay kickbacks to the patient recruiters. Executive Pharmacy paid OptimuMD millions of dollars during the scheme—money generated by the prescriptions for medically unnecessary compounded medications. As part of his plea, Hurt admitted to personally receiving $4,265,144 from the scheme. Furthermore, he has agreed to pay $18,440,230 in restitution to TRICARE and $450,844 in restitution to CHAMPVA.
As part of his plea agreement, Hurt has agreed to pay restitution to Medicare, TRICARE, and CHAMPVA in an amount totaling $97,360,451.76. Hurt has separately agreed to the entry of forfeiture money judgments totaling $31,148,624.70, and to forfeit the luxury watercraft, “In My DNA.”
As to each of the conspiracies charged originally in the Western District of Pennsylvania and Southern District of Florida, Hurt faces a maximum sentence of five years in prison and a fine of not more than the greater of $250,000 or an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person other than the defendant. As to the conspiracy originally charged in the District of New Jersey, Hurt faces a maximum sentence of ten years in prison and a fine of not more than the greater of $250,000 or an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person other than the defendant. 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 Eric G. Olshan of the Western District of Pennsylvania is prosecuting these cases on behalf of the government. Assistant United States Attorney Sean M. Sherman handled the investigation of the conduct that led to the Information originally filed in the District of New Jersey, and Assistant United States Attorney Cynthia Wood of the Southern District of Florida handled the investigation that led to the Second Superseding Indictment originally filed in the Southern District of Florida. The Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of Inspector General, Defense Criminal Investigative Service, Internal Revenue Service – Criminal Investigation, U.S. Department of Labor – Employee Benefits Security Administration, U.S. Department of Veterans Affairs – Office of Inspector General, Food and Drug Administration – Office of Criminal Investigation, and U.S. Army Criminal Investigation Division – Florida Fraud Resident Unit conducted the investigations of the defendant.
Five defendants associated with scuba dive shops convicted of defrauding the Department of Veterans AffairsRead the Press Release
SAVANNAH, GA: Five people affiliated with Georgia dive shops have admitted submitting false claims to the Department of Veterans Affairs (VA) through scuba classes targeting military veterans education benefits.
The five defendants, all of whom have entered guilty pleas in U.S. District Court, are owners, managers, and/or instructors at Scooba Shack in Savannah and Richmond Hill, Ga., or at Diver’s Den in St. Marys, Ga., said David H. Estes, U.S. Attorney for the Southern District of Georgia. Collectively, the five defendants are responsible for defrauding more than $4 million from VA education benefits.
“The scope of the fraud uncovered in this investigation is stunning, particularly when you consider the scheme siphoned funds intended for providing legitimate education assistance to former service members,” said U.S. Attorney Estes. “We applaud the work of the VA Office of Inspector General in identifying and halting this fraud.”
As described in court documents, the five defendants worked in various capacities with the businesses and caused false submissions to be made to the VA. The false submissions misstated the businesses’ compliance with VA regulations, dates of students’ attendance, and hours of instructions, among other information. Some of the defendants also participated in creating fictitious scholarship programs to provide the appearance that a required percentage of non-VA students participated in those classes. The businesses billed the VA up to more than $20,000 per veteran student enrollee for the classes.
“Safeguarding Post-9/11 GI Bill education benefit funds reserved for deserving veterans remains a priority,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “These guilty pleas are a testament to our commitment to holding accountable those who would defraud VA’s benefit programs.”
The defendants include:
- Kenneth Meers, 54, of Altamonte Springs, Fla., pled guilty to Conspiracy to Commit Wire Fraud, a charge with a statutory penalty of up to 20 years in prison and substantial financial penalties, followed by up to three years of supervised release. Meers was a school certifying official and course director at Scooba Shack from about May 2018 to April 2021, and became a consultant at Diver’s Den around May 2020 and an instructor from about June 2021 to February 2022. In those capacities, Meers prepared and submitted Scooba Shack’s application and course catalog for VA approval, and developed Diver’s Den’s program, knowing that those applications contained false information. He also directed other defendants to create the fake scholarships used to mask the percentage of students receiving VA education benefits. As part of his plea agreement, Meers agrees that the cost to the VA of the scheme exceeded $3.5 million.
- Robert Lanoue, 63, and his wife, Judith Lanoue, 59, both of Savannah. Each has pled guilty to False, Fictitious, and Fraudulent Claims, a charge that carries a statutory penalty of up to five years in prison and significant financial penalties, followed by up to three years of supervised release. Robert Lanoue and Judith Lanoue are owners of Scuba Shack. As part of their plea agreement, the two will forfeit $270,893.75 from their bank account, funds that will apply toward restitution of more than $3.2 million in losses to the VA.
- David Anderegg, 42, of Richmond Hill, Ga., pled guilty to False, Fictitious, and Fraudulent Claims. He is the store manager, instructor, and a school certifying official of Scooba Shack.
- Theresa Whitlock, 55, of St. Marys, Ga., pled guilty to False Statement, a charge that carries a statutory penalty of up to five years in prison. Whitlock operated Diver’s Den and served as a school certifying official, providing false information to the VA about Diver’s Den’s diving programs, and submitting claims to the VA for tuition payments totaling more than $1.1 million. As part of any restitution, Whitlock agrees to forfeit $64,260.30 seized from Diver’s Den’s bank accounts.
The case was investigated by the Department of Veterans Affairs Office of Inspector General, and is being prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Five Defendants Indicted in a Conspiracy to Distribute Child PornographyRead the Press Release
Miami, Florida – A federal grand jury in West Palm Beach has charged five men with one count of conspiracy to distribute child pornography and multiple counts of distribution and solicitation of child pornography.
Anthony Wayne Santiago, 28, of Novi, MI; Jacob Dominic VanDyke, 25, of Muskegon, MI; Johnathan Scott Fleak, 32, of Pryor, OK; Aaron Ray Iuliano, 27, of Ravenna, OH; and Michael Paul Gianfrancesco, 39, of Livingston, TN, were members of a chat room predicated on the distribution of pornography of children under the age of 13 years.
According to the indictment, from September to October 2021, the five defendants entered and participated in a private online chat. These defendants all distributed and or solicited child pornography amongst more than 50 other individuals.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), and Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
HSI Miami and PBSO investigated the case. Assistant U.S. Attorney Gregory Schiller is prosecuting the case.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
An indictment contains mere allegations and defendants are innocent unless found guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cr-80127.
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Federal Judge Sentences Rockford Man to More Than 7 Years in Prison for Illegally Possessing Loaded GunRead the Press Release
ROCKFORD — A Rockford man was sentenced today to seven and a half years in federal prison for illegally possessing a loaded semi-automatic handgun.
SHAZARIYAH F. HIBBETT, 33, illegally possessed the gun on Oct. 27, 2020. Hibbett was a passenger in a vehicle that Rockford Police officers attempted to stop. The driver of the vehicle drove from officers at a high rate of speed, eventually stopping in a residential area. Hibbett got out of the passenger side and immediately discarded the handgun outside of the vehicle. He then fled on foot before being apprehended by police a few blocks away.
Hibbett pleaded guilty earlier this year to a charge of illegal possession of a firearm. He had previously been convicted of multiple felony offenses and was prohibited by federal law from possessing a gun.
U.S. District Judge Iain D. Johnston imposed the 90-month sentence after a hearing in federal court in Rockford.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives; and Carla Redd, Chief of the Rockford Police Department. The government was represented by Assistant U.S. Attorney Jessica S. Maveus.
Federal Inmate Sentenced to Additional Time for Threatening Federal JudgeRead the Press Release
FLORENCE, SOUTH CAROLINA —Stanley J. Kowalewski, 50, of North Carolina, was sentenced to more than an additional year in federal prison for mailing a threatening communication to a United States District Court Judge.
Evidence obtained in the investigation revealed that following a federal jury trial in the Northern District of Georgia, Kowalewski was convicted on 22 counts related to a sophisticated fraud scheme and sentenced to more than 17 years in federal prison.
While serving that sentence in a prison in South Carolina, a federal judge received a letter that threatened to cause the women close to the judge to disappear if the judge did not grant pending motions for compassionate release (a request for a reduction in sentence and release from prison) by a certain date. Specifically, the letter stated:
“Judge [Redacted],
You have failed to do the right things. Now you make us do this. You will grant ALL pending motions in your court for compassionate release by July 2nd, 2021 at 3:00 PM or earlier. They are all to be reduced to time served with NO supervised release. They will be immediate release from prison and no delays. If not, then we will begin to disappear the women closest to you. We know where they live, work, or go to school. If you try to alert the authorities, we will know and your loved ones will disappear. Do your job and everyone will be happy and you’ll never here from us again.
A.C.B.”
The day before the threat was mailed, an individual visited Kowalewski in the low security prison where Kowalewski was then housed. When that person arrived, Kowalewski gave the visitor two envelopes, one inside the other, telling him to handle it with gloves, to not get fingerprints on it, to not ask questions, and to place it in the mail. Kowalewski called the visitor after he left and told him to hurry up and mail the letter.
At the time of the threat, Kowalewski had a motion for compassionate release pending before the victim Court, and the threat came during a time Kowalewski had directed others to conduct an aggressive campaign contacting the Court asking for that motion to be granted. Three weeks before the threat, Kowalewski said in a recorded call, “I just told everybody to double up on [the victim judge] and call twice a week and really make their life miserable.”
When the Federal Bureau of Investigation (FBI) and United States Marshal’s Service initially confronted Kowalewski, he lied about his participation in the threat and then sent out letters that provided the visitor a false story to tell agents if he was approached. If the visitor stuck with the story, Kowalewski wrote, “this will be over.”
Chief United States District Judge R. Bryan Harwell sentenced Kowalewski to serve an additional 15 months in federal prison (to be served consecutive his current sentence), with three years of court-ordered supervision to follow. There is no parole in the federal system.
This case was investigated by the United States Marshals Service with assistance from the FBI, the Federal Bureau of Prisons, and agencies in the Northern District of Georgia. Assistant U.S. Attorney Elliott B. Daniels prosecuted the case.
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Federal Indictment Charges Chicago Man with Illegally Possessing Cocaine and HandgunsRead the Press Release
CHICAGO — A federal grand jury has indicted a Chicago man for allegedly illegally possessing cocaine and two semiautomatic handguns in the city last month.
An indictment unsealed today in U.S. District Court in Chicago charges SEAN DWYER, 51, with conspiracy, drug, and firearm offenses. The charges allege that Dwyer illegally possessed cocaine at two locations on the South Side of Chicago. Federal law enforcement conducted a court-authorized search on Aug. 17, 2022, and discovered cocaine and the two firearms, as well as more than $85,000 in cash. Dwyer was previously convicted of multiple felonies in state court and was prohibited by federal law from possessing a firearm.
The federal charges against Dwyer carry a mandatory minimum sentence of 15 years in federal prison and a maximum of life. Dwyer pleaded not guilty today during his arraignment before U.S. Magistrate Judge Jeffrey Cole in Chicago. Dwyer is currently in federal custody and a detention hearing is set for Monday.
The indictment also charges BRIDGETT MASSEY, 35, of Chicago, with conspiracy and drug possession. Massey pleaded not guilty today during her arraignment before Judge Cole. She was ordered released from custody on a personal recognizance bond.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Robert J. Bell, Special Agent-in-Charge of the Chicago Field Division of the DEA. Valuable assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Cook County Sheriff’s Office, and the Cook County State’s Attorney’s Office. The government is represented by Assistant U.S. Attorney Megan DeMarco.
Holding alleged drug and firearm offenders accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of crime issues facing the district.
The public is reminded that an indictment is not evidence of guilt. The defendants are 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 reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
El Departamento de Justicia llega a un acuerdo con un distrito escolar de Massachusetts para garantizar la igualdad de oportunidades educativas para todos los estudiantes, incluyendo aquellos que hablan quichéRead the Press Release
El Departamento de Justicia anunció hoy un acuerdo conciliatorio con las escuelas públicas de New Bedford, el cual resuelve la investigación del Departamento de las prácticas del distrito escolar en su comunicación con padres y tutores cuyo dominio del inglés es limitado, incluyendo con personas que hablan quiché, un idioma indígena maya. Entre otros pasos, el Distrito implementará medidas eficaces para identificar correctamente los idiomas que los estudiantes hablan, así como los que hablan sus padres y tutores, para que el personal escolar no dé por sentado que personas que hablan quiché sean hispanoparlantes nativos, con base en su país de origen. Asimismo, el Distrito ha acordado mejorar su prácticas y desarrollo profesional con el fin de abordar las necesidades específicas de estudiantes que hablan quiché y que están aprendiendo inglés para que estos puedan acceder a las mismas oportunidades educativas que otros estudiantes en el Distrito.
«Estudiantes y familias que provienen de comunidades indígenas mayas suelen enfrentar barreras únicas a la hora de acceder a oportunidades educativas. Este acuerdo integral asegura que el Distrito reconozca y aborde las necesidades de su población considerable de estudiantes que hablan quiché y que empodere a padres a participar plenamente en la educación de sus hijos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles está comprometida a proteger el derecho de cada niño a la igualdad de participación en la escuela».
El acuerdo es el resultado de la investigación del Departamento al amparo de la ley de Igualdad de Oportunidades Educativas de 1974 que se inició en el año 2020. El Distrito cooperó en cada paso de la investigación y se comprometió a mejorar sus programas mediante una revisión de sus prácticas y el desarrollo profesional. Por otra parte, el Departamento de Justicia supervisará la implementación del acuerdo conciliatorio por parte del Distrito durante al menos tres años escolares completos con el fin de garantizar que el Distrito cumpla con sus obligaciones.
La ejecución de la ley de Igualdad de Oportunidades Educativas de 1974 es una de las prioridades principales de la División de Derechos Civiles del Departamento de Justicia. Para más información sobre la División de Derechos Civiles, visite su sitio web en www.justice.gov/crt-espanol.
Dipartamentu di Justisa ta asegura un akordu ku Distritu Skolar di Massachusetts pa Garanti Igualdadi di Oportunidadis Idukativu pa Tudu Alunus, inkluindu falantis di K'icheRead the Press Release
Oji Dipartamentu di Justisa anunsia un akordu ku Skólas Públiku di New Bedford (New Bedford Public Schools) pa rizolve investigason di dipartamentu sobri kes prátika di distritu skolar pa kumunika ku pais y tutoris ku kunhisimentu limitadu na inglês, inkluindu falantis di K’iche’, un língua nativu Maia.
Entri otus midida, distritu ta inplimenta mididas efikas pa identifika kes língua faladu pur alunus kuretamenti, y tanbé pa pais y tutoris, asi pa kes funsionárius di skóla ka ta pensa ma falantis di K'iche' é falantis nativu di spanhol pamodi ses país di orijen. Distritu tanbé konkorda na midjora ses prátika y dizenvolvimentu profisional pa satisfaze nisisidadis spesífiku di alunus di inglês ki ta fala K'iche' asi pa es pode ten asésu pa kes mésmu oportunidadis idukativu sima kes otus alunu di distritu.
“Alunus y famílias di kumunidadis indíjina Maia, txeu bês, ta infrenta bareras úniku pa ten asésu pa oportunidadis idukativu”, asi ki Prokurador-Jeral Adijuntu Kristen Clarke fla, di Divizon di Direitus Sivil di Dipartamentu di Justisa (Justice Department’s Civil Rights Division). “Es akordu jeral ta garanti ma distritu ta rikunhese y ta satisfaze kes nisisidadis di grandi parti di populason di studantis di língua kiche’ y ta kapasita pais pa partisipa na idukason di ses fidjus konpletamenti. Divizon di Direitus Sivil (The Civil Rights Division) sta inpenhadu pa proteje direitu di tudu kriansas a partisipa di forma igual na skóla”.
Es akordu ta rizulta di invistigason di dipartamentu konformi Lei di Igualdadi di Oportunidadis Idukativu di 1974 (Equal Educational Opportunities Act of 1974), inisiadu na 2020. Distritu kopera na tudu kes etapa di investigason y konprometi midjora ses prugrama através di rivizon di prátikas y dizenvolvimentu prufisional. Dipartamentu di Justisa ta kontrola inplimentason di es akordu di distritu duranti peluménus três anu letivu konpletu pa garanti ki distritu ta kunpri ku ses obrigason.
Aplikason di Lei di Igualdadi di Oportunidadis Idukativu di 1974 é un di kes prinsipal prioridadi di Divizon di Direitus Sivil di Dipartamentu di Justisa. Informason adisional sobri Divizon di Direitus Sivil sta dispunível na ses pájina di internet na www.justice.gov/crt.
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Departamento de Justiça Estabelece Acordo com o Distrito Escolar de Massachusetts para garantir igualdade de oportunidades educacionais a todos os alunos, incluindo os Falantes de K'icheRead the Press Release
O Departamento de Justiça anunciou hoje um acordo com as Escolas Públicas de New Bedford (New Bedford Public Schools) para resolver a investigação do departamento sobre as práticas do distrito escolar relativamente à comunicação com os pais e tutores com proficiência limitada em inglês, incluindo falantes de K’iche, uma língua indígena maia.
Entre outras medidas, o distrito irá implementar medidas eficazes no sentido de identificar corretamente as línguas faladas pelos alunos, bem como pelos pais e tutores, para que os funcionários da escola não assumam que os falantes de K'iche são falantes nativos do espanhol com base no seu país de origem. O distrito também concordou em melhorar as suas práticas e o desenvolvimento profissional para atender às necessidades específicas dos alunos de inglês que falam K'iche para que possam ter acesso às mesmas oportunidades educacionais que os outros alunos do distrito.
“Muitas vezes, os estudantes e as famílias das comunidades indígenas maias enfrentam obstáculos únicos no acesso às oportunidades educacionais”, disse a Procuradora-geral Adjunta Kristen Clarke, da Divisão de Direitos Civis do Departamento de Justiça (Justice Department’s Civil Rights Division). “Este acordo abrangente garante que o distrito reconheça e dê resposta às necessidades da sua população substancial de estudantes de língua K'iche e capacita os pais a participar plenamente na educação dos seus filhos. A Divisão de Direitos Civis está empenhada em proteger o direito de todas as crianças de fazer parte da escola de forma equitativa.”
O acordo resulta da investigação do departamento ao abrigo da Lei de Igualdade de Oportunidades Educativas de 1974 (The Equal Educational Opportunities Act of 1974), iniciado em 2020. O distrito cooperou em todas as etapas da investigação e comprometeu-se a melhorar os seus programas através da revisão das práticas e do desenvolvimento profissional. O Departamento de Justiça irá supervisionar a implementação do acordo pelo distrito durante pelo menos três anos letivos completos para garantir que o distrito cumpra as suas obrigações.
A aplicação da Lei de Igualdade de Oportunidades Educativas de 1974 é uma prioridade absoluta da Divisão de Direitos Civis do Departamento de Justiça. Informações adicionais sobre a Divisão de Direitos Civis estão disponíveis na website www.justice.gov/crt.
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Convicted Fugitive Drug Trafficker Captured and Returned to United States to Serve SentenceRead the Press Release
CAMDEN, N.J. – A fugitive from justice who was captured in the Dominican Republic on July 12, 2022, by the U.S. Marshals Service and other law enforcement officials in the Dominican Republic has been returned to the United States to serve her prison sentence, U.S. Attorney Philip R. Sellinger announced today.
In 2006, Ramona Cruz pleaded guilty to an indictment charging her with conspiracy to distribute and possession with intent to distribute 500 grams or more of cocaine. In 2007, Cruz was sentenced to a term 40 months in prison to be followed by five years of supervised release. She was given the opportunity to voluntarily surrender to the U.S. Bureau of Prisons (BOP) at a later date. Approximately three days prior to her surrender date, Cruz cut off her ankle bracelet and fled to the Dominican Republic to avoid prison, where she remained a fugitive until her recent apprehension.
The narcotics charge to which Cruz pleaded guilty to stems from illegal narcotics activity in 2005, which she took part in with her codefendant (and brother) Ramon Dejesus. In July 2005, an individual was apprehended upon entry into the United States while in possession of approximately three kilograms of cocaine. Later, while under surveillance by law enforcement, Cruz and Dejesus took possession of a piece of luggage which they believed contained the cocaine. The investigation revealed that all three individuals involved had been in touch with the same narcotics contact in the Dominican Republic. Dejesus also pleaded guilty to the narcotics charge and has since served his prison sentence.
U.S. Attorney Philip Sellinger credited special agents of the U.S. Marshals Service, under the direction of Marshal Juan Mattos Jr., and special agents of the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office and Newark Division Office, under the direction of Acting Special Agent in Charge Richard W. Reinhold, with the investigation.
The government is represented by Deputy U.S. Attorney Andrew Carey of the U.S. Attorney’s Office Criminal Division in Camden.
Convicted Felon with Ghost Gun Sentenced to More Than Two Years in Federal PrisonRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Marty Eugene Days, Jr. (33, Williston) to 27 months in federal prison for possessing ammunition as a convicted felon. Days had pleaded guilty on June 16, 2022.
According to court documents, on February 23, 2022, a City of Ocala police officer stopped an automobile driven by Days for erratic driving. Days, the sole occupant, did not have a valid driver license. After detaining Days, the officer located a bag on the ground next to the automobile that contained Days’s Florida ID card, two of his credit cards, and a 9mm handgun. Video surveillance footage from a nearby convenience store showed Days tossing the bag out of the passenger-side window. The firearm—a “ghost gun” with no manufacturer serial number—was loaded with 21 rounds of ammunition. At the time, Days had a prior felony conviction for attempted robbery with a deadly weapon. As a convicted felon, he is prohibited from possessing firearms or ammunition under federal law.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Ocala Police Department. It was prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Colorado City Man Arrested on Federal Obstruction of Justice ChargesRead the Press Release
PHOENIX, Ariz. – Samuel Rappylee Bateman, 46, of Colorado City, Arizona, was arrested on Tuesday in Colorado City for charges returned by a federal grand jury on September 6, 2022. The indictment charges Bateman with Destruction of Records or an Attempt to Destroy Records in an Official Proceeding; Tampering or Attempting to Tamper with an Official Proceeding; and Destruction of Records in a Federal Investigation.
The indictment alleges that on August 28, 2022, Bateman destroyed or attempted to destroy records, by deleting or aiding and abetting others to delete, electronic communications associated with Signal accounts. Signal is an encrypted messaging application. The indictment further alleges that Bateman did so in order to obstruct, influence, and impede an investigation and prosecution in federal court. A conviction for each of these crimes carries a maximum sentence of 20 years’ imprisonment.
An indictment is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Bateman had his initial appearance yesterday before United States Magistrate Judge Camille D. Bibles in Flagstaff, Arizona.
The Phoenix Field Office of the Federal Bureau of Investigation (FBI) is handling the investigation. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution. The United States Attorney’s Office would like to extend special gratitude to the Arizona Department of Child Safety for its work protecting Arizona children impacted by this matter, as well as the Colorado City Marshal’s Office, the Mohave County Sheriff’s Office, the Washington County Sheriff’s Office, and the St. George resident agency of the FBI’s Salt Lake City Field Office for their assistance in this matter.
CASE NUMBER: CR-22-08092-PCT-DGC (ESW)
RELEASE NUMBER: 2022-156_Bateman# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Citizen of Jamaica Sentenced to Prison for Defrauding MedicaidRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MARVEL JOHNSON, 50, a citizen of Jamaica residing in Derby, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 12 months of imprisonment, followed by three years of supervised release, for making false statements to receive Medicaid benefits.
According to court documents and statements made in court, between approximately 2008 and 2020, Johnson used false social security numbers to enroll and maintain his enrollment in the Connecticut Medicaid health care benefits program known as “Husky.” In November 2015, called Access Health CT, the agency responsible for administering Medicaid/Husky enrollment for Connecticut, and provided false social security numbers in an attempt to receive retroactive insurance coverage for his recently-born son. Johnson did not receive the retroactive coverage for his son, but he and his family continued to remain enrolled in Husky. In 2018, following a verification request by Access Health CT for a citizenship document, Johnson mailed a false New Jersey birth certificate bearing his name. Johnson was, in fact, born in Jamaica.
Judge Meyer ordered Johnson to pay restitution of $150,380.83
Johnson was arrested on November 19, 2020. On April 28, 2022, he pleaded guilty to making false statements in health care matters.
Johnson, who is released on a $50,000 bond, is required to report to prison on December 1.
This investigation was conducted by the Social Security Administration Office of Inspector General; the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG); Homeland Security Investigations (HSI); the U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security; the U.S. Department of State, Office of Inspector General; and the Connecticut Department of Social Services. The case was prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.
Charleston Woman Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Caila Vance, 27, of Charleston was sentenced today to six years in prison, to be followed by four years of supervised release, for distributing 50 grams or more of methamphetamine.
According to court documents and statements made in court, Vance sold more than 100 grams of suspected methamphetamine and a firearm to a confidential informant on February 8, 2022. The substance later tested positive as methamphetamine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Steve Loew prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:22-cr-57.
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California Man Used Nevada Post Offices to Mail 250 Pounds of Oregon Marijuana to Western PennsylvaniaRead the Press Release
PITTSBURGH, PA – A resident of Seiad Valley, California, pleaded guilty in federal court to violation of federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
James White, age 39, pleaded guilty to one count of conspiracy to distribute and possesses with intent to distribute a quantity of marijuana before United States District Judge Christy Criswell Wiegand. White was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that White transported over 250 pounds of marijuana from Oregon to various post offices located in Nevada. White then mailed parcels containing marijuana on behalf of George Charlan, a supplier living in Oregon, to distributors living in the Western District of Pennsylvania.
Judge Wiegand scheduled sentencing for White on Jan. 26, 2023, at 1:00 p.m. The law provides for a sentence of a maximum of five years in prison, a fine not to exceed $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
The court ordered that the defendant remain on bond pending sentencing.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Services, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Bureau of Prisons employee convicted of illegal firearm possession and witness tamperingRead the Press Release
Seattle – An employee at the Federal Bureau of Prisons, Federal Detention Center (FDC), was convicted today in U.S. District Court in Seattle of two federal felonies related to his conduct outside of his employment, announced U.S. Attorney Nick Brown. Joshua Adam Shuemake, 37, was convicted of illegal firearm possession, and witness tampering after a three-day jury trial. The jury deliberated about three hours before reaching its verdicts.
“Truthful and honest conduct is the minimum we expect from federal employees,” said U.S. Attorney Nick Brown. “Mr. Shuemake tried to fool the King County court, federal investigators, and his employer, by violating the order of the court, the rule of law, and specific employment rules. We appreciate the jury taking the time to see through the web of lies.”
According to records filed in the case and testimony at trial, following a domestic violence incident in April 2021, Shuemake was served with a no contact order and informed by a King County judge that he had to surrender all firearms. Shuemake signed a statement saying he had no firearms. However, evidence at trial showed Shuemake working as a restaurant and bar security guard, and despite the court order, he was seen on surveillance video multiple times with a firearm in a holster on his hip. When law enforcement searched the apartment where they had seen Shuemake living, they found a handgun in the closet. The gun had Shuemake’s DNA on the grip. Shuemake tried to claim he lived at a different address, and then pressured friends to lie to investigators about how the gun came to be in the apartment.
In closing argument, Assistant United States Attorney Jessica Manca noted how Shuemake tried to get others to lie to the FBI and to the court about his conduct saying, “He manipulated, abused and exploited the people in his life to try to get away with these crimes.”
In addition to the two guilty verdicts, the jury found Shuemake “not guilty” of lying to federal investigators.
Shuemake has been on unpaid leave from the Bureau of Prisons pending the outcome of this case.
Illegal possession of a firearm is punishable by up t0 10 years in prison. Witness tampering is punishable by up to 20 years in prison. The ultimate sentence is up U.S. District Judge Richard A. Jones who can impose any sentence up to the statutory maximum after considering the sentencing guidelines and other statutory factors.
The case was investigated by the FBI.
The case was prosecuted by Assistant United States Attorneys Jessica Manca, Cindy Chang, and Ye-Ting Woo.
Birmingham Man Sentenced to 10 Years in Prison for Guns and DrugsRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a Birmingham man on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Special Agent in Charge Mickey French.
U.S. District Court Judge Madeline H. Haikala sentenced Terry Lee Skanes, Jr., 22, to 120 months in prison for possession with the intent to distribute methamphetamine and possession of a firearm during and in relation to that drug trafficking crime.
According to the plea agreement, in October 2021, Jefferson County Sheriff’s deputies conducted a traffic stop on a vehicle driven by Skanes. When Skanes exited the vehicle, a deputy smelled marijuana and saw drug paraphernalia inside the vehicle. In searching the vehicle, deputies recovered a Glock .40 caliber pistol, a 5.56 American Tactical pistol, approximately 31 grams of methamphetamine, and other controlled substances.
“Guns in the hands of a drug dealer is a frequently deadly combination,” said U.S. Attorney Escalona. “Our law enforcement partners focus their efforts on offenders whose activities threaten our communities with illegal drugs and the violence associated with drug dealing. We are grateful for the work of the Jefferson County Sheriff’s Office and ATF in taking this dealer off the street.”
“Illegal firearm possession and the distribution of narcotics in our communities is dangerous and damaging to everyone involved in the criminal activity,” said SAC French. “The ATF along with our local, state, and federal partners work tirelessly to disrupt the illegal possession of firearms, distribution of narcotics, and other acts of violence within our community. ATF will remain in lockstep with our local, state, and federal partners in our continuing effort to combat violent crime and maintain public safety.”
ATF investigated the case, along with the Jefferson County Sheriff’s Office. Assistant U.S. Attorney Alan Baty prosecuted the case.
Baltimore Business Owner Sentenced to Federal Prison for Fraudulently Obtaining Federally Insured Loans to Sell Two Baltimore Properties He OwnedRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Philip Abramowitz, age 50, of Pikesville, Maryland, Maryland to one year in federal prison and one year of home detention, followed by three years of supervised release, for a wire fraud conspiracy for fraudulently obtaining federally insured home loans. Judge Bennett also ordered Abramowitz to pay $373,684 in restitution and forfeit $493,037.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Acting Special Agent in Charge Jerome A. Winkle of the U.S. Department of Housing and Urban Development Office of Inspector General.
“Abramowitz blatantly lied to federal entities and abused a federal loan program intended to ease the financial stress of purchasing a home. Our office will continue to prosecute those who abuse federal programs.” said U.S. Attorney for the District of Maryland, Erek L. Barron.
“Abramowitz’s conduct is unacceptable and undermines the goals of FHA loan program,” said Acting Special Agent in Charge Jerome A. Winkle. “HUD OIG is committed to working with our partners at the U.S. Attorney’s Office to hold individuals like Mr. Abramowitz accountable and recover funds fraudulently obtained from HUD programs.”
According to his guilty plea, from May 2016 to April 2017, Abramowitz and others conspired to defraud two financial institutions by fraudulently obtaining Federal Housing Administration (FHA) loans and property under false pretenses. The FHA is part of the U.S. Department of Housing and Urban Development (HUD) and provides mortgage insurance on loans made by FHA-approved lenders. To qualify for the FHA-insured loans, the buyer must use the residence as their primary residence, disclose any familial or business relationship between the seller and buyer, and disclose the source of the money the buyer intends to use for the down payment and closing costs.
Philip Abramowitz admitted that he used his company, 163 N. Potomac St., LLC, to facilitate the sales of his Potomac Street, Baltimore, Maryland properties using FHA-insured loans. For example, in May 2016, Abramowitz sold one of his Potomac Street properties (Property 1) to his brother, Calvin Abramowitz, and entered into an agreement with Calvin Abramowitz to purchase the property using an FHA-insured loan.
According to court documents, Calvin Abramowitz applied for and received a $294,566 FHA-insured loan with a mortgage company (Mortgage Company 1) by falsely representing Philip Abramowitz’s bank account records as his own. Calvin and Philip Abramowitz also: concealed their family relationship from Mortgage Company 1 by submitting false company filings during the loan application process; had Philip Abramowitz’s property manager (Property Manager 1) pose as the sole seller and manager of 163 N. Potomac St., LLC; and arranged for Property Manager 1 to sign the FHA-loan contact as the official seller of the property. Philip Abramowitz’s ownership of 163 N, Potomac St., LLC or involvement in the sale was never disclosed.
To meet the requirements of the loan procurement process, Philip Abramowitz gave Calvin Abramowitz $10,500 to pay for the closing costs for Property 1, as Calvin did not have the financial means to make the purchase. Based on the fraudulent financial information presented during the loan application process, Mortgage Company 1 loaned Calvin Abramowitz $294,566 for the purchase of Property 1. Most of the loan proceeds were subsequently deposited into Philip Abramowitz’s bank account. Ultimately, Calvin Abramowitz never used Property 1 as a primary residence and rented the property to tenants for a year before ceasing mortgage payments and allowing the property to fall into foreclosure.
As detailed in his plea agreement, Philip Abramowitz arranged the sale of his second Potomac Street property (Property 2) in March 2017 to another family member (Relative 1) using an FHA-insured loan. To facilitate the sale of Property 2, Relative 1 applied for an FHA-insured loan with another mortgage company (Mortgage Company 2). Using the same manner to defraud Mortgage Company 1, Philip Abramowitz concealed his familial relation to Relative 1, falsely listed his property manager as the sole seller and owner of Property 2 and submitted multiple fraudulent documents to Mortgage Company 2, including an LLC affidavit of title asserting that no other person or entity had ownership in Property 2.
As he did in the sale of Property 1, Philip Abramowitz violated FHA-loan requirements by: providing Relative 1 $8,750 for the closing costs of the sale; misrepresenting his own bank account information as Relative 1’s in the FHA-loan procurement process; and having the majority of the loan proceeds deposited to his personal bank account. Relative 1 never used Property 2 as a primary residence or paid monthly mortgage payments to Mortgage Company 2, which caused the property to fall into foreclosure.
Calvin Abramowitz, age 48, of Lakewood, New Jersey, previously pleaded guilty to bank fraud in connection with his role in the scheme and faces a maximum sentence of 30 years in federal prison. Judge Bennett has scheduled sentencing for Calvin Abramowitz on December 6, 2022, at 2:30 p.m.
United States Attorney Erek L. Barron commended HUD-OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Martin J. Clarke, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Asheville Man Is Sentenced to More Than Eight Years for His Role in Burglary of Gun StoreRead the Press Release
ASHEVILLE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Lyron Deshawn Greenlee to 102 months in prison, for his role in the burglary of a gun store in Asheville, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Greenlee, 35, of Asheville, was also ordered to serve three years under court supervision upon completion of his prison term.
Bennie Mims, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, and Chief David Zack of the Asheville Police Department (APD) join U.S. Attorney King in making today’s announcement.
According to filed court documents and today’s sentencing hearing, Greenlee conspired with his co-defendants, Jesse Lynn Williams, and Alexa Rae Bassillo, to organize and plan the burglary of Carolina Guns and Gear West, LLC (Carolina Guns and Gear), a Federal Firearms Licensee (FFL) located at 3106 Sweeten Creek Road, in Asheville. Court records show that on January 7, 2022, Williams broke into the gun store and stole 33 firearms, while Greenlee and Bassillo served as lookouts or drivers during the burglary.
According to court documents, immediately after the burglary, Greenlee, Williams and Bassillo traveled to Greenlee’s residence, where they divvied up the stolen firearms. Over the course of the investigation, law enforcement determined that Greenlee received eight of the stolen firearms, two of which Greenlee sold to his co-defendant, Bernard Eugene Carson, a prohibited person who is not permitted to own a firearm due to prior criminal convictions. To date, law enforcement have recovered eight of the 33 stolen firearms.
On April 25, 2022, Greenlee pleaded guilty to theft of firearms from an FFL and aiding and abetting. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. Williams, Bassillo, and Carson have entered guilty pleas and are currently awaiting sentencing.
In making today’s announcement U.S. Attorney King thanked the ATF and APD for their investigation of the case.
The U.S. Attorney’s Office in Asheville is handling the prosecution.
Apopka Man Indicted for Receiving and Possessing Child Sexual Abuse MaterialsRead the Press Release
Orlando, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Charles Vincent Yannaccone (51, Apopka) with three counts of receipt of child sexual abuse material and one count of possession of sexual abuse material. Yannaccone faces a mandatory minimum penalty of 5 years, and up to 20 years, in federal prison on each receipt count. On the possession count, Yannaccone faces a maximum penalty of 20 years of imprisonment. The indictment also notifies Yannaccone that the United States intends to forfeit his cellphone, which is alleged to have been used to commit the charged offenses.
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 Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Courtney D. Richardson-Jones.
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.
Amarillo Man Pleads Guilty to Threating Prominent New York RabbisRead the Press Release
An Amarillo man pleaded guilty on Wednesday to threatening to execute three prominent Jewish rabbis, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Christopher Stephen Brown was charged via criminal complaint on Dec. 6, 2021 and indicted later that month. He plead guilty yesterday to making interstate threatening communications before U.S. Magistrate District Judge Lee Ann Reno in Amarillo.
“In addition to expressing disgusting anti-Semitic views, Mr. Brown made specific threats of violence against multiple individuals, which is prohibited under federal law,” said U.S. Attorney Chad Meacham. “We will not allow our citizens to be subjected to this sort of menacing conduct.”
“Mr. Brown’s statements indicated he wanted to potentially commit violent acts against members of the Jewish community; this type of behavior is not tolerated by law enforcement. This action is a criminal violation and also instills fear in a community that has long been a target of hateful rhetoric and violence,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI’s mission is to uphold the U.S. Constitution and to protect the American people. We will continue working with our law enforcement partners to pursue individuals who pose a threat to public safety.”
According to plea papers, Mr. Brown admitted to placing threatening calls to Chabad Lubavitch, a Jewish organization that has provided spiritual guidance and assistance to Jewish people since before the Holocaust. Chabad is headquartered in New York City and maintains more than 3,500 institutions worldwide.
In those calls, the defendant sated his name was “Madrikh Obadiah” and threatened to “execute” several rabbinical leaders, identified in court documents as L.S., Y.K., and M.K. Over the course of multiple calls, he vowed he would tear their eyes and tongues out, blow their heads of, and kill every rabbi he could find.
According to court documents, he also sent messages to the organization via their website, calling for death to all Jews and linking to his YouTube channel, which also contained threatening content.
Mr. Brown now faces up to five years in federal prison.
The Federal Bureau of Investigation’s Dallas Field Office, Amarillo Resident Agency and the Randall County Sheriff’s Office conducted the investigation in partnership with the FBI’s New York Field Office and the New York Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.
Allentown Man Sentenced to 120 Years in Prison for Manufacturing Child PornographyRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Luis Perez Rodriguez, 34, of Allentown, PA, was sentenced to 120 years of in prison and a lifetime of supervised release by United States District Court Judge Joshua D. Wolson for his convictions on multiple child exploitation offenses.
In December 2021, the defendant pleaded guilty to four counts each of manufacturing and distributing child pornography. The charges stemmed from Rodriguez’ sexual abuse of two pre-pubescent children, aged 3 and 10 years old, and his recording of the abuse of each child. The defendant then distributed those images and videos over the internet to groups of other child sex offenders, and encouraged those offenders to redistribute them further to even more people on the internet. The defendant also solicited tips on what kind of child exploitation images to produce from other members of chat groups focused on creating such horrific illicit material. The videos and images not only depicted Rodriguez’ sexual abuse of each child, but also showed the faces of each child victim. The defendant was arrested in May 2020, shortly after distributing the child exploitation images to an online chat where one of the participants was an undercover FBI agent.
“Rodriguez sexually assaulted two very young children and then distributed images of those assaults online, where they will exist indefinitely,” said U.S. Attorney Romero. “For that depravity, this defendant will now spend more than a lifetime in prison; securely confined and unable to victimize any more children. Our Office and our law enforcement partners are committed to doing the difficult work of investigating and prosecuting these heinous crimes in order to hold people like Rodriguez accountable.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Brittany Jones.
23 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Yauco, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On September 14, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 23 violent gang members from the municipality of Yauco with conspiracy to possess with intent to distribute and possession with intent to distribute controlled substances, as well as firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Puerto Rico Police Bureau (PRPB), Ponce Strike Force, led the investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the United States Postal Inspection Service, the Federal Bureau of Investigation (FBI), Customs and Border Protection (CBP), and the U.S. Marshals Service (USMS).
“Today’s arrests reflect the unwavering commitment of the U.S. Department of Justice and its law enforcement partners to investigate and prosecute those who fuel violence in our streets through illegal drug trafficking activities” said W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico. “I commend the hard work of the agents and prosecutors who worked tirelessly on this investigation to make our community safer.”
“HSI San Juan remains committed to work side by side with our state and federal law enforcement partners to dismantle criminal organizations,” said Iván Arvelo, Special Agent in Charge of Homeland Security Investigations. “This investigation is the direct result of multiple law enforcement entities working together towards a safer Puerto Rico.”
The indictment alleges that from 2019 until the date of the return of the indictment, the drug trafficking organization distributed cocaine base (commonly known as “crack”), heroin, cocaine, and marihuana within 1,000 feet of the Santa Catalina Public Housing Project. The object of the conspiracy was the large-scale distribution of controlled substances in the municipality Yauco for significant financial gain and profit.
The 23 defendants acted in different roles to further the goals of their organization, including as leaders, drug point owners, suppliers, runners, enforcers, sellers, facilitators, and lookouts. Nine of the defendants are also facing a charge of possession of firearms in furtherance of a drug trafficking crime. The members of the drug trafficking organization routinely possessed, carried, brandished, and used different types of firearms, including modified automatic firearms and high-capacity rifles.
As part of the conspiracy, the defendants and their co-conspirators established a drug distribution point that would move within different areas inside the public housing projects to avoid police detection, including the basketball court and a tree in front of the old school inside the Santa Catalina PHP. Sometimes the defendants moved the drug point to the third floor of a building and dispatched the controlled substances from a balcony using a rope down to the first floor to avoid law enforcement detection.
Members of the organization would steal cars and use them to further their drug trafficking activities like transport money, narcotics, and firearms. The members of the gang used force, violence, and intimidation to maintain control of the areas in which they operated. They often abducted and assaulted rival drug traffickers, as well as members of their own drug trafficking organization, to intimidate and maintain control of the drug trafficking operation.
The defendants charged are:
Jesús Manuel Castro-Oliveras, a.k.a. “Chuy/Chui”
Giovanni Joel Vargas-Maldonado, a.k.a. “Giova, Jova, La J”
Carlos Irving Caraballo-Rodríguez, a.k.a. “Coco/Vizco”
Ángel Osvaldo Pietri-Velázquez, a.k.a. “Chuleta”
Dayan Joel Caraballo-Ortiz, a.k.a. “Jowel/Joel”
José Ramón Cannizaro-Burgos, a.k.a. “Monchito”
Luis Antonio Irizarry-Albino, a.k.a. “Luisito”
Isaías Manuel Rivera
Irving Joel Torres Pacheco
Jean Carlos Ayala-Morales, a.k.a. “Flaco”
Ángel Edid Vélez-Echevarría, a.k.a. “Gordo Ángel/Hammer”
Néstor Rodríguez-Echevarría, a.k.a. “Tito”
Steven Vélez-Echevarría, a.k.a. “Steven”
Jean Carlos Cabello-Maldonado, a.k.a. “Pikin”
José Ángel Velázquez-Seda, a.k.a. “Tito Chuleta”
Richardson Enoc Cordero-Gallardo, a.k.a. “Richard”
Alejandro Martín Borrero-Rodríguez, a.k.a. “Alejandro”
Kevin Joel Bermúdez-Torres
Daniel Pérez
Liz Marie Rosado-Vélez, a.k.a. “La Gorda”
Benjamín Vélez-Rodríguez, a.k.a. “Benji”
Manuel De Jesús Castro-Peña, a.k.a. “Manolo/Manuel De-Jesús-Castro”
Harvey Ramírez-Pérez
All the defendants are facing a narcotics forfeiture allegation of $10,501,050.
Assistant U.S. Attorney and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Tereza Zapata-Valladares, Special AUSAs Cristina Caraballo and R. Vance Eaton are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a mandatory minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a mandatory minimum sentence of 15 years, and up to life in prison.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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14 September 2022
“Triple C” Gang Member Admits to Participating in a Racketeering Conspiracy, Including at Least Five Attempted Murders and One MurderRead the Press Release
Baltimore, Maryland – Zeno Burnette, age 24, of Baltimore, Maryland, pleaded guilty yesterday to conspiracy to participate in a racketeering conspiracy, including attempted murder, in relation to his participation in the violent Baltimore street gang known as Cruddy Conniving Crutballs or “Triple C”.
The guilty plea was announced United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Chief Melissa R. Hyatt of the Baltimore County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, Burnette admitted that he and other Triple C members engaged in a pattern of criminal racketeering activity between 2015 and 2020, including more than a dozen murders and numerous non-fatal shootings, robberies, and carjackings. The violent criminal acts were committed in the effort to promote the reputation of Triple C and to instill fear in the neighborhood. Other names for the enterprise are “SCL” and recently, “TRD”.
As detailed in his plea agreement, the enterprise financially benefited from, and affected interstate commerce by, selling narcotics, murdering drug dealers, taking contract killings, and engaging in street robberies. Triple C members also robbed dice games for cash and occasionally carjacked vehicles. Members divided the proceeds of the robberies and murders among members who participated, and often contacted each other to commit a robbery if that member needed money.
Also, Triple C members routinely used social media to identify and locate victims and to share information concerning possible retaliation for violent crimes committed by gang members. Triple C members and associates used at least 14 firearms to commit crimes, often trading with each other or other groups to avoid detection through ballistic evidence. They limited conversations about criminal plans to members of Triple C and critiqued each other after committing crimes regarding ways to improve their actions.
Burnette admitted that he participated in at least five attempted murders including the attempted murders of two rival gang members, and the December 2018 murder of Corey Moseley. Burnette also admits that his co-conspirators committed other acts that he did not participate in which included sixteen murders, at least twenty attempted robberies, two robberies, and three carjackings.
Co-defendants Rashaud Nesmith, a/k/a Shaud, age 21, and Michael Chester, a/k/a Mikkie, age 23, both of Baltimore, pled guilty to their participation in a racketeering conspiracy in June 2022. Chester, Nesmith and the government have agreed that, if the Court accepts their pleas, Chester will be sentenced to 20 years in federal prison and Nesmith will be sentenced to 40 years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for Chester of October 7, 2022, at 10 a.m. U.S. District Judge Stephanie A. Gallagher has scheduled sentencing for Nesmith on October 28, 2022, at 12 p.m.
Burnette and the government have agreed that, if the Court accepts the plea agreement, Burnette will be sentenced to 20 years in federal prison. U.S. District Judge Richard D. Bennett has scheduled sentencing for January 6, 2023 at 10:00 a.m.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
United States Attorney Erek L. Barron commended the ATF, the Baltimore County Police Department, the Baltimore Police Department for their work in the investigation and thanked the FBI and the Office of the Baltimore City State’s Attorney for their assistance in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorney Patricia C. McLane, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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