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Wednesday 27 July 2022
Lewiston Man Sentenced to over 10 Years for Conspiracy to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE – A Lewiston man was sentenced to 121 months in federal prison for possession with intent to distribute methamphetamine.
According to evidence presented in court, and in court documents, Ricky Dale Faulkner, 57, was arrested when task force officers executed a search warrant at his residence and seized over one pound of methamphetamine, cash, and a handgun. Faulkner’s cell phone was also seized and data on the phone showed that Faulkner was distributing methamphetamine to people in the Lewiston, Idaho, and Clarkson, Washington, area.
Senior Ninth Circuit Judge Richard C. Tallman, sitting as a U.S. District Court judge, also ordered Faulkner to serve five years of supervised release following his prison sentence. Faulkner pleaded guilty to the charge on April 8, 2022.
U.S. Attorney Josh Hurwit made the announcement and commended the cooperative effort between the Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms and Explosives, North Idaho Violent Crime Task Force, Quad Cities Drug Task Force, and the Nez Perce County Prosecutor’s Office.
The Quad Cities Drug Task Force is a multi-jurisdictional group of law enforcement officers working together to target drug trafficking in Lewiston and Moscow, Idaho, and Clarkston and Pullman, Washington. Task force members include the Lewiston Police Department, Clarkston Police Department, Nez Perce County Sheriff’s Office, Moscow Police Department, Latah County Sheriff’s Office, Asotin County Sheriff’s Office, Whitman County Sheriff’s Office, and Washington State Police. The Quad Cities Drug Task Force worked collaboratively with the North Idaho Violent Crime Task Force in this and other cases.
The North Idaho Violent Crime Task Force (NIVCTF) is an FBI led task force with law enforcement officers from Lewiston Police Department, Nez Perce County Sheriff's Office, Grangeville Police Department, Nez Perce Tribe Police Department, and Idaho State Police. The mission of the NIVCTF is to identify and target for prosecution criminal enterprise groups and individuals responsible for crimes of violence and the manufacture and distribution of illegal narcotics.
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Lake Placid, Florida Man Charged for Participating in Business Email Compromise Scheme Spanning Four StatesRead the Press Release
Montgomery, Alabama – A Florida man has been arrested for his role in a business email compromise scheme that impacted at least four businesses in four different states, including Alabama. Timothy Scott Marable, 50, from Lake Placid, Florida, was arrested last week after being indicted by a federal grand jury in Montgomery, Alabama on two counts of wire fraud.
According to the indictment, a business email compromise scheme is a fraud scheme in which participants gain unauthorized access to a business email account through various means, such as hacking the account or obtaining login information through social engineering. Participants then use the compromised email account to send emails to other businesses posing as a legitimate account holder. Oftentimes, the scheme participants attempt to steal money from email recipients by fraudulently representing that the legitimate account holder had changed banking information and instructing the recipient to make future payments to a new bank account. The new bank account frequently belongs to a participant in the business email compromise scheme, who receives payment obtained by fraud and transfers the proceeds to others involved in the scheme.
The indictment alleges that from November 2019, until August 2020, Marable participated in a business email compromise scheme primarily by receiving fraudulent transfers into bank accounts to which he had signature authority. Throughout to course of the scheme, Marable allegedly received into various bank accounts under his control approximately $2,701,746.50. Companies located in Alabama, Idaho, Ohio, and Texas fell victim to this scheme.
An indictment is merely an allegation that a crime has been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
“In 2021, business email compromises were one of the most widely reported cyber security issues according to IC3.gov,” stated FBI Special Agent in Charge Paul Brown from Mobile, Alabama. “Please report any suspicious activity and assist law enforcement in the struggle to ensure cyber security."
The case was unsealed today by the United States District Court for the Middle District of Alabama. A date for Marable’s arraignment will be scheduled in the near future.
This case is being prosecuted by the U.S. Attorney’s Office for the Middle District of Alabama, with assistance from the U.S. Attorney’s Office for the District of Idaho. The case was investigated by the FBI in Alabama and Idaho. Assistant United States Attorney Stephen K. Moulton is prosecuting the case.
KC Medical Spa Owner Pleads Guilty to Illegal TreatmentsRead the Press Release
KANSAS CITY, Mo. – The former owner of a Kansas City, Mo., medical spa pleaded guilty in federal court today to providing illegal treatments to his patients, several of whom suffered adverse effects from the foreign products.
Richard B. Smith III, 46, of Shawnee, Kansas, waived his right to a grand jury and pleaded guilty before U.S. District Judge Howard F. Sachs to a federal information that charges him with one count of receiving misbranded drugs (foreign and unapproved Botox) and delivering them for pay with the intent to defraud or mislead, and one count of receiving adulterated devices (Juvederm Ultra 3) and delivering them for pay with the intent to defraud or mislead.
Smith owned and operated Tap and Blade, located at 7208 Wornall Road, Suite 206, in Kansas City, Mo. Tap and Blade offered medical services, such as injections of prescription drugs, including Botox, and prescription devices to enhance facial features, including Juvederm Ultra 3. Tap and Blade also offered cosmetic services, such as microblading, brow shading, and cool sculpting. Smith was the only employee of Tap and Blade and performed all the procedures offered at the clinic.
The U.S. Food and Drug Administration, Office of Criminal Investigations began investigating Tap and Blade in December 2020 based on information that multiple patients suffered injuries after receiving treatment at Tap and Blade. Agents executed a search warrant at Tap and Blade on April 7, 2021, and found boxes of Juvederm Ultra 3 as well as three syringes filled with Botox.
By pleading guilty today, Smith admitted that he obtained Botox and Juvederm Ultra 3 over the internet and without a prescription from a website in China. Smith purchased the products from Alibaba.com because the foreign products were significantly cheaper, which allowed him to lower his cost compared to his competitors and led him to gain more customers.
Smith admitted he never told his patients he was using foreign prescription drugs and devices that had not been approved by the FDA. Smith estimated he treated approximately 50 to 60 customers. Smith treated at least 10 patients who suffered a bodily injury after being treated with Juvederm Ultra 3.
During the more than three years Tap and Blade operated, from Jan. 1, 2018, to April 30, 2021, there was never a medical doctor associated with the spa, nor was there a doctor overseeing procedures. Smith admitted that he knew his patients should have seen a doctor prior to receiving treatment, and that he told them there was a doctor on staff. Prior to opening Tap and Blade, Smith practiced injections on honeydew fruit, fake heads, and fake skins.
The FDA approval of Botox limits the drug to use under the supervision of a licensed practitioner, thus, it is a prescription drug. Smith admitted that the foreign and unapproved Botox he purchased for use at his spa was misbranded because it did not bear adequate directions for use.
Upon being injected beneath the skin’s surface, Juvederm adds volume and lift to smooth wrinkles and folds. Juvederm products are regulated as devices because, when injected, they are intended to reside under the skin and do not achieve their primary intended purpose through chemical action or metabolization. The FDA’s approval for Juvederm products limits them to use under the supervision of a licensed practitioner, thus, they are prescription devices. Juvederm Ultra 3 is not legal for distribution in the United States because it lacks FDA approval.
Under federal statutes, Smith is subject to a sentence of up to six years 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 defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant U.S. Attorney Bradley Cooper. It was investigated by the Food and Drug Administration Office of Criminal Investigation.
KC Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man was sentenced in federal court today for illegally possessing a firearm.
Jovell L. Swopes, 44, was sentenced by U.S. District Judge Roseann Ketchmark to eight years in federal prison without parole. The court ordered this sentence to be served consecutively to a sentence of two years in federal prison for violating the terms of his federal supervised release, for a total term of 10 years in federal prison without parole.
On Dec. 15, 2021, Swopes was convicted at trial of one count of being a felon in possession of a firearm.
Swopes sold 2.7 grams of marijuana to an undercover Kansas City, Mo., police officer on July 31, 2019. He was pulled over afterward and placed under arrest. Officers searched the vehicle Swopes was driving and found a loaded Glock .40-caliber semi-automatic pistol on the floor underneath the front passenger seat. Officers found a Glock magazine that contained 21 .40-caliber rounds inside a fanny pack on the floor of the backseat.
At the time of his arrest, Swopes was on supervised release after serving almost four years in federal prison for a conviction of being a felon in possession of a firearm. According to court documents, Swopes has a violent criminal history, including a long history of arrests related to assaults and domestic violence. For example, Swopes drove up to a residence on June 10, 2018, got out of his vehicle, and began to fire several shots from a firearm at another man. The victim attempted to run away from Swopes, who continued firing, shooting the victim multiple times in the legs. Swopes then got into his minivan and drove away.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. In addition to his prior federal conviction for being a felon in possession of a firearm, Swopes has prior state felony convictions for assault, armed criminal action, sale of a controlled substance, and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Kenneth W. Borgnino and David A. Barnes. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
KC Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who was among five motorists speeding through midtown has been sentenced in federal court for illegally possessing a firearm after fleeing from police officers in a high-speed chase.
George L. Gordon, 42, was sentenced by U.S. District Judge Howard F. Sachs on Tuesday, July 26, to eight years in federal prison without parole.
On March 11, 2022, Gordon pleaded guilty to being a felon in possession of a firearm.
A Kansas City Police Department helicopter spotted five vehicles driving erratically at high speed in the area of Main Street and 39th Street at about 3:30 a.m. on July 4, 2020. The vehicles were driving into oncoming lanes of traffic. When the vehicles entered U.S. Highway 71 traveling north, officers attempted to conduct a traffic stop, but all five vehicles fled in different directions. The helicopter continued tracking Gordon, who was driving the lead vehicle.
Gordon pulled into an empty lot in the 2600 block of Euclid Avenue, got out of his car, and jumped over a fence. When police officers arrived, Gordon jumped back over the fence, causing the Glock .22-caliber pistol in his hand to accidentally discharge. Gordon was arrested after a foot chase, and officers used a police service dog to find the pistol Gordon dropped during the pursuit.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Gordon has two prior federal convictions for being a felon in possession of a firearm and was on federal supervised release at the time of this offense. Gordon also has prior felony convictions for robbery, armed criminal action, endangering the welfare of a child, domestic assault, attempted forgery, and possession of a controlled substance.
This case was prosecuted by Assistant U.S. Attorney Sean T. Foley. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department, Consumer Financial Protection Bureau, and Three State Attorneys General Reach Settlements with Trident Mortgage Company to Resolve Lending Discrimination ClaimsRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that the Department of Justice, the Consumer Financial Protection Bureau (CFPB), and the Attorneys General of Pennsylvania, New Jersey, and Delaware announced today agreements to resolve allegations that Trident Mortgage Company (Trident), which is owned by Berkshire Hathaway, Inc., engaged in a pattern or practice of lending discrimination by “redlining” in the Philadelphia metropolitan area, including neighborhoods in Philadelphia, Camden, and Wilmington. This resolution represents the Justice Department’s first redlining settlement against a mortgage company and is the second-largest redlining settlement in Justice Department history.
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in certain communities or postal zip codes because of the race, color, or national origin of persons residing there. Under a proposed federal consent order, which is subject to court approval and was filed in conjunction with a complaint today in the U.S. District Court for the Eastern District of Pennsylvania, Trident has agreed to invest over $20 million to increase credit opportunities in neighborhoods of color in the Philadelphia metropolitan area. Trident will also pay a civil money penalty of $4 million.
The complaint filed in federal court alleges that: (1) Trident violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending services; (2) Trident further violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law; (3) from at least 2015 to 2019, Trident failed to provide mortgage lending services to neighborhoods of color in the Philadelphia metropolitan area; (4) Trident concentrated its offices in majority-white neighborhoods; (5) Trident failed to direct its loan officers to serve—and its loan officers did not serve—the credit needs of neighborhoods of color; (6) Trident’s outreach and marketing avoided those neighborhoods; and (7) Trident’s loan officers and other employees sent and received work e-mails containing racial slurs and messages referring to communities of color as “ghetto.”
The $20 million that Trident agrees, under the proposed consent order, to invest to increase credit opportunities for residents of neighborhoods of color in the Philadelphia metropolitan area includes at least: $18.4 million in a loan subsidy fund; $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit; $875,000 for advertising and outreach; and $375,000 for consumer financial education.
Because Trident is no longer lending, it will contract with another lender to provide loan subsidies and services to the “redlined” communities and will ensure that the lender: maintains at least four mortgage loan officers dedicated to serving neighborhoods of color in and around Philadelphia, Camden, and Wilmington; maintains at least four office locations in those neighborhoods; and employs a full-time manager of community lending who will oversee the continued development of lending in neighborhoods of color in the Philadelphia metropolitan area.
Separately, Trident has also entered into agreements with the Commonwealth of Pennsylvania and the States of New Jersey and Delaware. Under those agreements, which resolve allegations against both Trident and Fox & Roach LP (a real estate affiliate of Trident): Trident will reimburse Pennsylvania and New Jersey for costs that they incurred in conducting their investigations; and Fox & Roach will invest $150,000 in marketing to communities of color in the Philadelphia metropolitan area.
“For far too many years, Philadelphia’s Black, Latino, and other communities of color have lacked equal access to lending and legal deed ownership. These historically redlined areas of Philadelphia continue to experience disproportionate amounts of poverty, poor health outcomes, limited educational attainment, unemployment, and violent crime,” U.S. Attorney Jacqueline Romero said. “I am pleased that my office could support the Attorney General’s Combatting Redlining Initiative through this resolution, and I look forward to our continued partnership with the Civil Rights Division.”
“Last fall, I announced the Department’s Combatting Redlining Initiative and promised that we would mobilize resources to make fair access to credit a reality in underserved neighborhoods across our country,” said Attorney General Merrick B. Garland. “As demonstrated by today’s historic announcement, we are increasing our coordination with federal financial regulatory agencies and state Attorneys General to combat the modern-day redlining that has unlawfully plagued communities of color.”
“This settlement is a stark reminder that redlining is not a problem from a bygone era. Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth and devalued properties in their neighborhoods,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement ensures that significant lending resources will be infused into neighborhoods of color in and around Philadelphia that have historically experienced racial discrimination. Along with our federal and state law enforcement partners, we are sending a powerful message to lenders that they will be held accountable when they run afoul of our fair lending laws.”
“Trident illegally redlined neighborhoods in the Philadelphia area, excluding qualified families seeking to own a home,” said CFPB Director Rohit Chopra. “With housing costs so high, it is critical that illegal discrimination does not put homeownership even further out of reach.”
This settlement is part of the U.S. Attorney General’s Combatting Redlining Initiative, announced in October 2021 and aimed at coordinating agencies’ enforcement efforts to address this persistent form of discrimination against communities of color. The Initiative is expanding the Justice Department’s reach by strengthening partnerships with U.S. Attorney’s Offices around the country, with regulatory partners like CFPB, and with partners in States’ attorney general offices.
The U.S. Department of Justice Civil Rights Division and the CFPB jointly investigated the matter, with support from the U.S. Attorney’s Office. The investigation was coordinated closely with the attorneys general of the Commonwealth of Pennsylvania and the States of New Jersey and Delaware.
A copy of the complaint, as well as additional information about the Justice Department’s fair lending enforcement, can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
Citizens in the Eastern District of Pennsylvania who believe that they may have been victims of lending discrimination may also contact the U.S. Attorney’s Office for the Eastern District of Pennsylvania at 215-861-8200 or 615 Chestnut Street, Suite 1250, Philadelphia, PA 19106, ATTN: Civil Division Chief Gregory David.
Justice Department and Consumer Financial Protection Bureau Secure Agreement with Trident Mortgage Company to Resolve Lending Discrimination ClaimsRead the Press Release
Settlement Provides Over $20 Million to Increase Credit Opportunities in Neighborhoods of Color
First Redlining Settlement Against Mortgage Company; Second Largest Redlining Settlement in Justice Department History
The Department of Justice, the Consumer Financial Protection Bureau (CFPB), and the Attorneys General of Pennsylvania, New Jersey, and Delaware announced today agreements to resolve allegations that Trident Mortgage Company (Trident), which is owned by Berkshire Hathaway Inc., engaged in a pattern or practice of lending discrimination by “redlining” in the Philadelphia metropolitan area, including neighborhoods in Philadelphia, Camden, and Wilmington. This resolution is the first redlining settlement that the Justice Department has reached with a non-bank lender and the second largest redlining settlement in the department’s history.
“Last fall, I announced the Department’s Combatting Redlining Initiative and promised that we would mobilize resources to make fair access to credit a reality in underserved neighborhoods across our country,” said Attorney General Merrick B. Garland. “As demonstrated by today’s historic announcement, we are increasing our coordination with federal financial regulatory agencies and state Attorneys General to combat the modern-day redlining that has unlawfully plagued communities of color.”
“This settlement is a stark reminder that redlining is not a problem from a bygone era. Trident’s unlawful redlining activity denied communities of color equal access to residential mortgages, stripped them of the opportunity to build wealth, and devalued properties in their neighborhoods,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement ensures that significant lending resources will be infused into neighborhoods of color in and around Philadelphia that have historically experienced racial discrimination. Along with our federal and state law enforcement partners, we are sending a powerful message to lenders that they will be held accountable when they run afoul of our fair lending laws.”
“Trident illegally redlined neighborhoods in the Philadelphia area, excluding qualified families seeking to own a home,” said CFPB Director Rohit Chopra. “With housing costs so high, it is critical that illegal discrimination does not put homeownership even further out of reach.”
“For far too many years Philadelphia’s Black, Latino, and other communities of color have lacked equal access to lending and legal deed ownership,” said U.S. Attorney Jacqueline Romero for the Eastern District of Pennsylvania. “These historically redlined areas of Philadelphia continue to experience disproportionate amounts of poverty, poor health outcomes, limited educational attainment, unemployment, and violent crime. I am pleased that my office could support the Attorney General’s Combatting Redlining Initiative through this resolution, and I look forward to our continued partnership with the Civil Rights Division.”
“Redlining” is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color, or national origin of residents of those communities. The complaint filed in federal court today alleges that from at least 2015 to 2019, Trident failed to provide mortgage lending services to neighborhoods of color in the Philadelphia metropolitan area, that its offices were concentrated in majority-white neighborhoods, and that its loan officers did not serve the credit needs of neighborhoods of color. The complaint also alleges that loan officers and other employees sent and received work e-mails containing racial slurs and referring to communities of color as “ghetto.”
Under the proposed consent order, which is subject to court approval and was filed in conjunction with a complaint today in the U.S. District Court for the Eastern District of Pennsylvania, Trident has agreed to invest over $20 million to increase credit opportunities in neighborhoods of color in the Philadelphia metropolitan area. Trident will invest at least: $18.4 million in a loan subsidy fund for residents of neighborhoods of color in the Philadelphia metropolitan area; $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit; $875,000 for advertising and outreach; and $375,000 for consumer financial education. Because Trident no longer operates a lending business, it will contract with another lender to provide loan subsidies and services to the “redlined” communities. Trident will ensure that the lender employs at least four mortgage loan officers dedicated to serving neighborhoods of color in and around Philadelphia, Camden, and Wilmington; maintains at least four office locations in those neighborhoods; and employs a full-time manager of community lending who will oversee the continued development of lending in neighborhoods of color in the Philadelphia metropolitan area. Trident will also pay a civil money penalty of $4 million.
Trident has also entered into agreements with Pennsylvania, New Jersey, and Delaware. Those agreements resolve allegations against both Trident and Fox & Roach LP, a real estate affiliate of Trident. In addition to the settlement terms included in the federal consent order, under the agreements with Pennsylvania and New Jersey, Trident will reimburse the states for costs incurred in conducting the investigations. Fox & Roach will also invest $150,000 in marketing to communities of color in the Philadelphia metropolitan area.
The Justice Department and the CFPB jointly investigated the matter, with support from the United States Attorney’s Office in the Eastern District of Pennsylvania. The investigation was coordinated closely with the attorneys general of the Commonwealth of Pennsylvania and the states of New Jersey and Delaware.
This settlement is part of the Justice Department’s Combatting Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and our partners in state attorney general offices. Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online. View the Spanish translation of this press release here.
Justice Department Secures $293,000 Jury Award Against City of Springfield, Illinois, for Discriminating Against People with DisabilitiesRead the Press Release
On July 26, following a two-day trial, a federal jury awarded $293,000 in damages against the City of Springfield, Illinois, for attempting to close a group home for people with developmental disabilities in 2016.
In 2014, three residents with intellectual and physical disabilities moved into a single- family home on Noble Avenue in Springfield, Illinois, where they received community residential services from a state-licensed provider, Individual Advocacy Group (IAG). Such arrangements, known as Community Integrated Living Arrangements (CILAs), permit residents with disabilities to live in an integrated community setting rather than an institution. Even though the home was operating in compliance with state requirements, the City attempted to shut it down in 2016. The City relied on a local spacing ordinance that prohibited two homes for individuals with disabilities from operating within 600 feet of one another.
The United States filed suit against the City of Springfield in 2017. In 2020, the Court ruled that the City had violated the Fair Housing Act by enforcing the spacing ordinance against the home, granting the United States’ and IAG’s motions for summary judgment on liability. This week’s jury trial was to determine what damages should be awarded for any harm caused by the City’s conduct. The jury determined that the City should pay a total of $293,000: $162,000 in compensatory damages to the residents of the home and their guardians and $131,000 in compensatory damages to IAG.
“The Fair Housing Act prevents cities from maintaining discriminatory zoning laws and enforcing them against their citizens,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This verdict recognizes the significant pain and real harm that results when officials undertake discriminatory action to block group homes. We will continue to vigorously enforce the FHA to ensure that people with disabilities can live in the communities and housing of their choice, free from discrimination.”
“Persons with disabilities should have the same housing choices as all members of our community,” said Assistant U.S. Attorney Joshua I. Grant for the Central District of Illinois. “The jury’s verdict shows how persons with disabilities can often face barriers that make their lives more difficult and erode their dignity. The U.S. Attorney’s Office will continue to work with the Department of Justice to ensure equal access to housing and justice for the citizens of the Central District of Illinois.”
The United States is also seeking a civil penalty and an injunction requiring the City to take certain corrective and preventive actions. The United States’ request for such relief is pending with the Court.
Individual Advocacy Group and Mary B. Valencia, sister and guardian of one of the residents, are represented by Kennedy Hunt P.C., a law firm in St. Louis, Missouri.
The federal Fair Housing Act prohibits discrimination in housing because of disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov, or may contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
Justice Department Secures $293,000 Jury Award Against City of Springfield, Illinois, for Discriminating Against People with DisabilitiesRead the Press Release
WASHINGTON – On July 26, 2022, following a two-day trial, a federal jury awarded $293,000 in damages against the City of Springfield, Illinois, for attempting to close a group home for people with developmental disabilities in 2016.
In 2014, three residents with intellectual and physical disabilities moved into a single- family home on Noble Avenue in Springfield, Illinois, where they received community residential services from a state-licensed provider, Individual Advocacy Group (IAG). Such arrangements, known as Community Integrated Living Arrangements (CILAs), permit residents with disabilities to live in an integrated community setting rather than an institution. Even though the home was operating in compliance with state requirements, the City attempted to shut it down in 2016. The City relied on a local spacing ordinance that prohibited two homes for individuals with disabilities from operating within 600 feet of one another.
The United States filed suit against the City of Springfield in 2017. In 2020, the Court ruled that the City had violated the Fair Housing Act by enforcing the spacing ordinance against the home, granting the United States’ and IAG’s motions for summary judgment on liability. This week’s jury trial was to determine what damages should be awarded for any harm caused by the City’s conduct. The jury determined that the City should pay a total of $293,000: $162,000 in compensatory damages to the residents of the home and their guardians; and $131,000 in compensatory damages to IAG.
“The Fair Housing Act prevents cities from maintaining discriminatory zoning laws and enforcing them against their citizens,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “This verdict recognizes the significant pain and real harm that results when officials undertake discriminatory action to block group homes. We will continue to vigorously enforce the FHA to ensure that people with disabilities can live in the communities and housing of their choice, free from discrimination.”
“Persons with disabilities should have the same housing choices as all members of our community,” said Assistant U.S. Attorney Joshua I. Grant for the Central District of Illinois. “The jury’s verdict shows how persons with disabilities can often face barriers that make their lives more difficult and erode their dignity. The U.S. Attorney’s Office will continue to work with the Department of Justice to ensure equal access to housing and justice for the citizens of the Central District of Illinois.”
The United States is also seeking a civil penalty and an injunction requiring the City to take certain corrective and preventive actions. The United States’ request for such relief is pending with the Court.
Individual Advocacy Group and Mary B. Valencia, sister and guardian of one of the residents, are represented by Kennedy Hunt, P.C., a law firm in St. Louis, MO.
The federal Fair Housing Act prohibits discrimination in housing because of disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe they have been victims of housing discrimination may submit a report online at www.civilrights.justice.gov, or may contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
Jury convicts San Ygnacio man for brandishing AR-15Read the Press Release
LAREDO, Texas – A federal jury in Laredo has convicted a 45-year-old man of being a felon in possession of a firearm, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for 45 minutes before convicting Daniel Arturo Lozano following a one-day trial.
At trial, the jury heard that on June 21, 2021, law enforcement responded to reports describing Lozano’s angry and disorderly behavior at Lozano’s Country Store located in San Ygnacio.
Upon their arrival, Lozano fled the scene and began a vehicle chase before returning to the store. At that time, he exited his vehicle and brandished an AR-style rifle. Lozano left the rifle at the store, returned to his truck and departed. Law enforcement took Lozano into custody later that night.
The defense attempted to convince the jury that the weapon Lozano displayed was actually a realistic-looking pellet gun that law enforcement found when they arrested him. However, the jury saw both the pellet gun and AR-style rifle compared side by side and the rifle was identified as the weapon Lozano had showed at the scene.
The jury did not believe defense claims and found Lozano guilty as charged.
He had been previously convicted of possession of cocaine. As such, he is prohibited per federal law of possession of firearms or ammunition.
U.S. District Judge Marina Garcia Marmolejo presided over trial and set sentencing for Oct. 27. At that time, Lozano faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Zapata County Sheriff’s Office. Assistant U.S. Attorneys Brian Bajew and David Fawcett are prosecuting the case.
Indianapolis Man on Parole was Sentenced to 5 Years in Federal Prison for Gun Crimes After Leading Police on Two High-Speed ChasesRead the Press Release
INDIANAPOLIS – Tragejo Harris, 28, of Indianapolis, was sentenced to five years in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on April 29, 2021, officers responded to reports of a person firing multiple gunshots from a moving car in the vicinity of the Martindale-Brightwood neighborhood of Indianapolis. Police found a vehicle parked on the street that appeared to have been struck by multiple bullets. Harris’ girlfriend stated that she and her child were inside her home when Harris fired multiple shots at her parked car after an argument.
The next day, officers found Harris’s car at a gas station. When officers attempted to approach Harris, he fled and led police on a high-speed chase on the streets of Indianapolis exceeding speeds of 97 miles per hour. Officers lost sight of the vehicle after three miles.
On May 4, 2021, an undercover detective exchanged messages with Harris, who indicated that he planned to flee to Illinois. The detective, in an undercover capacity, arranged to meet Harris in person before he left town. On May 6, 2021, Harris arrived at the pre-arranged meeting location. Harris recognized police and fled by car again. Harris drove across a field, through a ditch, and onto Binford Boulevard at speeds of up to 100 miles per hour. Harris abandoned the vehicle and fled on foot. Officers found Harris hiding in a nearby building and arrested him. During an interview with police, Harris admitted to shooting his girlfriend’s car and fleeing from police. Harris also told police he had his four-year-old daughter in the car during the first police chase on April 30, 2021.
Harris lied to the police and claimed he sold the firearm used in the shooting. Police later located Harris’s gun under a potted plant near where Harris abandoned the vehicle after the second chase. That firearm matched the shell casings retrieved from the April 29th shooting at the car. Harris is a convicted felon who is legally prohibited from possessing a firearm. Harris was also on parole for armed robbery at the time of this offense.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana; Daryl S. McCormick, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Columbus Field Division; and Indianapolis Metropolitan Police Department (IMPD) Chief Randal Taylor made the announcement.
ATF and IMPD investigated the case. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Harris be supervised by the U.S. Probation Office for three years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kelsey Massa who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
Additionally, this case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Hartford Man Sentenced to 55 Months for Gun and Drug OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that FRANCISCO FRANCESCHINI, 29, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 55 months of imprisonment, followed by three years of supervised release, for firearm possession and drug distribution offenses.
According to court documents and statements made in court, on April 8, 2021, a court-authorized search of Franceschini’s residence revealed a loaded 9mm handgun, a loaded .380 caliber handgun, and approximately 44 grams of crack cocaine.
Franceschini’s criminal history includes multiple state convictions for firearm and narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Franceschini has been detained in federal custody since September 23, 2021. On March 18, 2022, he pleaded guilty to one count of possession of a firearm by a felon, and one count of possession with intent to distribute cocaine base (“crack”).
This investigation was conducted by the FBI’s Connecticut Violent Crime Task Force, the Hartford Police Department and the Connecticut State Police. The case was prosecuted by Assistant U.S. Attorney David T. Huang.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gulfport Man Found Guilty of Being an Unlawful User of a Controlled Substance in Possession of a FirearmRead the Press Release
Gulfport, Miss. – A federal jury convicted a Gulfport man yesterday for being an unlawful user of a controlled substance in possession of a firearm, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad L. Byerley of the Drug Enforcement Administration.
According to court documents and evidence presented at trial, Patrick Darnell Daniels, Jr., 26, was in possession of a handgun and an assault rifle at a traffic stop in Hancock County, Mississippi, on April 25, 2022. At the time of the possession, Daniels admitted to being an unlawful user of marijuana. Additional evidence supported his admission, and such evidence was presented to the jury, who deliberated for under an hour before finding him guilty of the one count indictment.
Daniels will be sentenced on October 18, 2022, in Gulfport. He faces a maximum penalty of 10 years in prison and a $250,000 fine.
The Drug Enforcement Administration investigated the case.
Assistant U.S. Attorneys Erica Rose and Jonathan Buckner prosecuted the case.
Georgia Man Sentenced to 130 Months in Prison for his Role in Oxycodone Prescription SchemeRead the Press Release
Montgomery, Alabama – On Tuesday, July 26, 2022, Maurice Daughtry, 38, of Marietta, Georgia, was sentenced to 130 months in prison for his role as one of the organizers of a conspiracy to illegally distribute oxycodone, announced United States Attorney Sandra J. Stewart.
According to Daughtry's plea agreement and other court records, Daughtry entered into an agreement with co-conspirator, D’Livro Lemat Beauchamp, to obtain illegitimate prescriptions for oxycodone, a Schedule II controlled substance. At the time the conspiracy began, Beauchamp was a physician operating a medical practice in Montogmery, Alabama. Per their agreement, Dr. Beauchamp would sign oxycodone prescriptions made out to either Daughtry or one of his other co-conspirators. The co-conspirators would pay Dr. Beauchamp $350 per prescription.
Once Dr. Beauchamp signed the prescriptions, the individuals named on the prescriptions—including Daughtry—would have them filled at local pharmacies. Daughtry would then collect pills from the co-conspirators, paying each one between $100 and $250 per prescription. Daughtry would then illegally distribute the oxycodone pills he obtained.
Daughtry’s plea agreement indicates that he first received a prescription from Beauchamp as part of the scheme in August of 2012. Thereafter, Daughtry received prescriptions for 90 30-milligram oxycodone tablets approximately once a month. Daughtry specifically admitted during his plea hearing to receiving and filling 54 prescriptions representing a total of 145,800 milligrams of the drug. Documents indicate that the conspiracy continued until April of 2020 and involved numerous co-conspirators, some of whom were operating at Daughtry’s direction.
Daughtry’s prison sentence will be followed by three years of supervised release. There is no parole in the federal system.
The Drug Enforcement Administration’s Tactical Diversion Squad investigated this case, with assistance from the United States Department of Health and Human Services – Office of Inspector General, the Shelby County Sheriff’s Office, the Montgomery Police Department, and the Alabama Board of Medical Examiners. Assistant United States Attorneys Stephen K. Moulton, Jonathan S. Ross, Alice S. LaCour, and B. Chelsea Phillips prosecuted the case.
Georgia Man Is Sentenced to Prison for Defrauding Medicaid Programs in Three StatesRead the Press Release
CHARLOTTE, N.C. – A Georgia man was sentenced to prison for participating in a scheme that defrauded the Medicaid programs in North Carolina, South Carolina and Georgia of more than $5 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Kenneth D. Bell sentenced Glenn Pair, 36, of Stonecrest, Georgia to 70 months in prison and two years of supervised release and ordered the defendant to pay a total of $5,078,444 as restitution.
U.S. Attorney King is joined in making today’s announcement by Adair Ford Boroughs, U.S. Attorney for the District of South Carolina, Ryan K. Buchanan, U.S. Attorney for the Northern District of Georgia, North Carolina Attorney General Josh Stein, Robert R. Wells, Special Agent in Charge of the FBI in North Carolina, and Donald “Trey” Eakins, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI).
The criminal charges filed against Pair in federal court in the Northern District of Georgia and South Carolina were transferred to the U.S. District Court for the Western District of North Carolina in September and October 2021, respectively. In October 2021, Pair pleaded guilty to conspiracy to commit Medicaid fraud in connection with the three federal prosecutions. Pair also pleaded guilty to a money laundering conspiracy offense in the Western District of North Carolina. Today’s sentence resolves all three federal criminal actions against the defendant.
According to filed court documents and today’s sentencing hearing, Pair and his co-conspirator, Markuetric Stringfellow, owned and operated an after-school and youth mentoring program known as Do-It-4-The Hood Corporation (D4H). From January 2016 through November 2018, Pair and Stringfellow paid individuals to recruit at-risk youths, in particular children who were Medicaid eligible in North Carolina, for their D4H program. Once enrolled, children were required to submit urine specimens for drug testing. Pair and Stringfellow conspired with certain laboratories to perform the drug testing of the enrolled children’s urine specimens and received kickbacks once the laboratories were reimbursed by the North Carolina Medicaid. In 2017, Pair moved to Georgia, and he and Stringfellow expanded the fraudulent scheme to defraud the state’s Medicaid program.
The South Carolina scheme involved Wrights Care Services LLC (Wrights Care), a qualified provider of Medicaid rehabilitative behavioral health services in South Carolina. Pair and Stringfellow became owners of a Wrights Care franchise in Columbia, South Carolina. Starting in or around 2014, Pair and Stringfellow defrauded the South Carolina Medicaid program by filing fraudulent claims for mental health counseling or other services that were either not provided, partially provided, or did not qualify for Medicaid reimbursement. Pair and Stringfellow submitted falsified patient billing records and fake medical notes to support the fraudulent reimbursement claims filed. After learning there was a Medicaid audit for Wrights Care, Stringfellow attempted to deceive South Carolina Medicaid auditors. In or about March 2015, Stringfellow met other associates of Wrights Care in Columbia for a “note party.” During this gathering and in Pair’s presence, the co-conspirators created false and fraudulent billing records to substantiate previously-submitted fraudulent Medicaid claims, forged signatures, and falsified records subject to the audit, which they then submitted to South Carolina Medicaid auditors in response to the audit.
Over the course of the scheme, Pair, Stringfellow and their co-conspirators submitted thousands of fraudulent claims to Medicaid of the three states totaling over $17 million and received over $5 million in fraudulent reimbursements. In addition, they received $1.8 million in kickbacks from the laboratories that participated in the conspiracy.
Pair is currently released on bond. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. Stringfellow was sentenced in February 2021 to 78 months in prison and was ordered pay $5,278,550 in restitution for his role in the scheme.
In making today’s announcement U.S. Attorney King thanked the U.S. Attorneys’ Offices in South Carolina and the Northern District of Georgia, the FBI in North Carolina, South Carolina and Georgia, and the Medicaid Investigations Division in the three states for their investigative efforts and coordination throughout case.
Assistant U.S. Attorneys Michael E. Savage and Graham Billings of the U.S. Attorney’s Office in Charlotte, prosecuted the case, assisted by Special Assistant U.S. Attorney Jermaine Sellers with the Medicaid Fraud Investigation Division of the N.C. Attorney General’s Office.
Former Minneapolis Police Officers Tou Thao and J. Alexander Kueng Sentenced to Prison for Depriving George Floyd of His Constitutional RightsRead the Press Release
The Justice Department announced today that former Minneapolis Police Officer Tou Thao, 36, was sentenced to serve 42 months in prison, and former Minneapolis Police Officer J. Alexander Kueng, 28, was sentenced to serve 36 months in prison, for depriving George Floyd Jr. of his constitutional rights.
On Feb. 24, 2022, following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found Thao and Kueng guilty of depriving Floyd of his constitutional right to be free from an officer’s unreasonable force when each willfully failed to intervene to stop former Minneapolis Police Department (MPD) Officer Derek Chauvin’s use of unreasonable force. The jury also found that Thao and Kueng deprived Floyd of his constitutional right to be free from a police officer’s deliberate indifference to serious medical needs when they saw Floyd restrained in police custody in clear need of medical care and willfully failed to aid him. The jury further found that both of these offenses resulted in Floyd’s bodily injury and death. Both offenses are violations of the federal criminal civil rights statute that prohibits willful violations of civil rights by a person, such as a police officer, acting in an official capacity.
The same jury also found former MPD Officer Thomas Lane guilty of depriving Floyd of his constitutional right to be free from a police officer’s deliberate indifference to Floyd’s serious medical needs, resulting in bodily injury to Floyd and his death. On July 21, Lane was sentenced to 30 months in prison for this offense.
Former Officer Derek Chauvin previously pleaded guilty to depriving Floyd and a then-14-year-old child of their constitutional rights in violation of the same federal statute. On July 7, Chauvin was sentenced to 252 months in prison for those crimes.
“All four officers involved in the tragic death of George Floyd have now been convicted in federal court, sentenced to prison and held accountable for their crimes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “George Floyd’s death could have been prevented if these defendants had carried out their affirmative duty to intervene to stop another officer’s use of deadly force. While these defendants have now been held accountable, law enforcement officers and leaders must take seriously the affirmative duty under the Constitution to intervene to stop misconduct by fellow officers and the duty to render medical aid. The federal prosecution of all officers tied to the death of George Floyd should send a clear and powerful message that the Department of Justice will never tolerate the unlawful abuse of power or victimization of Americans by anyone in law enforcement.”
“Former officers Thao and Kueng each had an individual duty and opportunity to intervene in the excessive force that resulted in the agonizing death of Mr. Floyd, but both men failed to take any action,” said U.S. Attorney Andrew M. Luger for the District of Minnesota. “These sentences reaffirm that every law enforcement officer, whether rookie or senior, has an affirmative duty to protect individuals in their custody.”
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.
Former Minneapolis Police Officers Tou Thao and J. Alexander Kueng Sentenced to Prison for Depriving George Floyd of His Constitutional RightsRead the Press Release
ST. PAUL, Minn. – The Justice Department announced today that former Minneapolis Police Officer Tou Thao, 36, was sentenced to serve 42 months in prison, and former Minneapolis Police Officer J. Alexander Kueng, 28, was sentenced to serve 36 months in prison, for depriving George Floyd Jr. of his constitutional rights.
On Feb. 24, 2022, following a trial that lasted nearly five weeks, a federal jury in St. Paul, Minnesota, found Thao and Kueng guilty of depriving Floyd of his constitutional right to be free from an officer’s unreasonable force when each willfully failed to intervene to stop former Minneapolis Police Department (MPD) Officer Derek Chauvin’s use of unreasonable force. The jury also found that Thao and Kueng deprived Floyd of his constitutional right to be free from a police officer’s deliberate indifference to serious medical needs when they saw Floyd restrained in police custody in clear need of medical care and willfully failed to aid him. The jury further found that both of these offenses resulted in Floyd’s bodily injury and death. Both offenses are violations of the federal criminal civil rights statute that prohibits willful violations of civil rights by a person, such as a police officer, acting in an official capacity.
The same jury also found former MPD Officer Thomas Lane guilty of depriving Floyd of his constitutional right to be free from a police officer’s deliberate indifference to Floyd’s serious medical needs, resulting in bodily injury to Floyd and his death. On July 21, 2022, Lane was sentenced to 30 months in prison for this offense.
Former Officer Derek Chauvin previously pleaded guilty to depriving Floyd and a then-14-year-old child of their constitutional rights in violation of the same federal statute. On July 7, 2022, Chauvin was sentenced to 252 months in prison for those crimes.
“All four officers involved in the tragic death of George Floyd have now been convicted in federal court, sentenced to prison, and held accountable for their crimes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “George Floyd’s death could have been prevented if these defendants had carried out their affirmative duty to intervene to stop another officer’s use of deadly force. While these defendants have now been held accountable, law enforcement officers and leaders must take seriously the affirmative duty under the Constitution to intervene to stop misconduct by fellow officers and the duty to render medical aid. The federal prosecution of all officers tied to the death of George Floyd should send a clear and powerful message that the Department of Justice will never tolerate the unlawful abuse of power or victimization of Americans by anyone in law enforcement.”
“Former officers Thao and Kueng each had an individual duty and opportunity to intervene in the excessive force that resulted in the agonizing death of Mr. Floyd, but both men failed to take any action,” said U.S. Attorney Andrew M. Luger. “These sentences reaffirm that every law enforcement officer, whether rookie or senior, has an affirmative duty to protect individuals in their custody.”
This case was investigated by the FBI and the Minnesota Bureau of Criminal Apprehension. It was prosecuted by Special Litigation Counsel Samantha Trepel and Trial Attorney Tara Allison of the Civil Rights Division, and Assistant U.S. Attorneys Samantha Bates, LeeAnn Bell, Evan Gilead, Manda Sertich and Allen Slaughter of the U.S. Attorney’s Office for the District of Minnesota.
Former Democratic Party Chair Sentenced on Conspiracy to Cause Foreign Campaign Donation ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that G. Steven Pigeon, 61, of Buffalo, NY, who was convicted of conspiracy to cause a foreign donation in a state election in violation of federal law, was sentenced to serve four months in prison and one year supervised release by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Paul E. Bonanno and Deputy Chief John Keller of the Department of Justice Public Integrity Section, who handled the case, stated that while working as a political consultant and lobbyist in Buffalo, Pigeon represented a foreign client, whose CEO was a Canadian citizen. In early 2014, despite knowing that it was illegal to make a foreign donation to a state political campaign, Pigeon solicited the CEO to make a $25,000 donation to the reelection campaign of a New York state elected official. However, the campaign rejected the donation because the CEO was not a citizen or permanent legal resident of the United States. Pigeon and the CEO then caused the donation from the CEO to be made through another individual, a permanent legal resident of the United States and an employee working for the CEO. In February 2014, a $25,000 donation was made to the elected official’s campaign, with Pigeon and the CEO knowing that the CEO would reimburse, the donation. As a result of the $25,000 donation, Pigeon and the CEO were granted entry into a fundraising event for the public official in New York City on February 26, 2014.
The sentencing is the result of an investigation by the FBI Buffalo Field Office, under the direction of Special Agent in Charge Stephen Belongia; the New York State Attorney General’s Office, under the direction of Letisha James; and the New York State Police, under the direction of Major Eugene Staniszewski.
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Florida Man Sentenced to 24 Months’ Imprisonment for Covid-19 Related Fraud and Identity Theft OffensesRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jorice Williams Dennard, age 25, of Tampa, Florida, was sentenced on July 26, 2022, by United States District Judge Robert D. Mariani to 24 months and 1 day of imprisonment to be followed by a 2-year term of supervised release for the offenses of mail fraud and aggravated identity theft.
According to United States Attorney Gerard M. Karam, Dennard submitted a false application to the Pennsylvania Department of Labor and Industry for Pennsylvania Pandemic Unemployment Assistance (PUA) benefits using the personal identification information, including name, birth date, and social security number, of another person. Dennard then traveled to Jim Thorpe, PA, in an effort to obtain a package addressed to his identity theft victim that contained a debit card in the victim’s name with a balance of over $14,000 in PUA funds. Dennard was arrested at the Jim Thorpe Post Office.
This case was investigation by the United States Postal Inspection Service (USPIS) and prosecuted by Assistant U.S. Attorney Jeffery St John.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Florida Businessman Charged with Conspiracy Involving Approximately $25 Million in Fraudulent Medicare Claims for Genetic Testing Submitted by Lawrence County Medical FacilityRead the Press Release
PITTSBURGH, Pa. – A resident of Fort Lauderdale, Florida, was charged in federal court with one count of conspiracy related to the submission of fraudulent Medicare claims, United States Attorney Cindy K. Chung announced today.
Daniel Hurt, 58, was charged by criminal Information with a conspiracy to commit health care fraud, pay and receive unlawful kickbacks, and engage in money laundering.
Beginning in late 2018 and continuing through approximately October 2019, the Information alleges that Hurt 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. As alleged, Hurt 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.
According to the Information, Hurt caused CGx specimens to be sent to Ellwood City Medical Center (ECMC), a hospital located in Ellwood City, Pennsylvania. As alleged, Hurt 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 or 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, did not use the test results in the treatment of the beneficiaries, and generally were not qualified to understand and interpret the test results.
According to the Information, Hurt caused 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 allegedly reimbursed ECMC more than $25 million for CGx testing. During this time, the Information further alleges that Hurt directed ECMC staff to transfer millions of dollars from ECMC-related accounts to bank accounts that Hurt controlled. In turn, Hurt allegedly used 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, the Information alleges that 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, allegedly 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. As alleged, the payments, in fact, were based on the volume of CGx tests and the amount of resulting Medicare reimbursements.
According to the Information, Hurt 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.
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. 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.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, U.S. Department of Health and Human Services – Office of Inspector General, and Internal Revenue Service – Criminal Investigation conducted the investigation of the defendant.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Florence Man Sentenced to Prison for Receiving Child PornographyRead the Press Release
MISSOULA — A Florence man who admitted to receiving numerous files of child pornography was sentenced today to seven years in prison, followed by ten years of supervised release, U.S. Attorney Jesse Laslovich said. The defendant was also ordered to pay $51,000 in restitution to the victims. Senior U.S. District Judge Donald W. Molloy presided.
Jeffrey Brandon Zabolotney, 35, previously pleaded guilty in March to one count of receipt of child pornography.
The government alleged in court documents that in November 2020, the Ravalli County Sheriff’s Office (RCSO) received a report that the defendant was accessing child pornography online and that he possessed child pornography on a digital storage device. After obtaining a search warrant for the defendant’s residence, law enforcement seized multiple computers and storage devices. The RCSO reviewed some of the seized devices and located digital files that depicted children engaged in sexually explicit conduct.
In May 2021, Homeland Security Investigations (HSI) began assisting the RCSO with the analysis and review of additional computer items that had not been searched by the RCSO. After analyzing data from computers and digital storage devices that belonged to and were used by the defendant, law enforcement officers and a Certified Forensic Examiner determined that between approximately June 2017 and August 2020, the defendant received over 4,600 image files and over 135 video files of minors engaged in sexually explicit conduct. The sexually explicit conduct included children being raped and being subjected to sexually sadistic conduct. Some of the minors in the files are prepubescent. In addition to content of the files themselves, law enforcement located other evidence that shows the defendant’s intent to commit the crime including documents with websites and passwords related to child pornography and a web history related to a user seeking child pornography.
“HSI investigators and support personnel will relentlessly use all of our investigative capabilities to punish those who engage in the despicable abuse of children, in some cases as young as infants,” said Ryan L. Spradlin, Special Agent in Charge, HSI Denver. “This sentence holds Zabolotney accountable for his atrocious crimes and serves as a warning that HSI and its law enforcement partners will work diligently to keep these predators out of Montana.”
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the Ravalli County Sheriff’ Office and Homeland Security Investigations.
Felon sentenced for illegally possessing firearms following roadway shootingRead the Press Release
ATLANTA – Rico Laprince Southall has been sentenced for possession of a firearm by a convicted felon following an incident where he was arrested after firing multiple gunshots at a family member on a public road in Cobb County, Georgia. Southall’s gunfire also struck another motorist’s vehicle.
“Southall’s illegal possession and dangerous use of these weapons are serious crimes that show how gun violence is a risk to all of us,” said U.S. Attorney Ryan K. Buchanan. “Keeping firearms out of the hands of convicted felons and individuals with violent criminal histories is essential to protecting the citizens of the district and reducing gun violence. Fortunately, no one was injured or killed because of this defendant’s egregious disregard for the safety of our community.”
“ATF will continue to work alongside our Federal, State and local partners in furtherance of reducing violent crime ,” said ATF Atlanta Field Division Special Agent in Charge Ben Gibbons.
"The Cobb County Police Department is exceptionally proud of the actions of the officers, detectives, and civilian staff who were involved in this case and countless other cases like this. The sacrifice these men and women make each time they place the badge and vest on to protect the people of Cobb County is a testament to their character, selflessness, and bravery. The impact of their actions is simply impossible to measure. Through the continued work of seizing illegal guns and removing very violent offenders from our streets, far fewer of our Cobb County community members are shot, killed, and maimed. We are thankful for the continued strong support from Project Safe Neighborhoods, the ATF, and our other federal partners, and we're equally grateful for the dedication of our local officers, detectives, and civilians here in Cobb County,” said Cobb County Police Chief Stuart VanHoozer.
According to the charges, and other information presented in court: On April 1, 2021, Southall targeted the victim, a member of his family, as she drove in Powder Springs, Georgia. Southall pursued the victim’s vehicle through the residential area and fired multiple rounds at her vehicle, all while he and the victim were travelling on a public road. Several rounds struck the victim’s vehicle and entered the passenger compartment of the vehicle, with at least one round striking an unoccupied infant safety seat. Southall also struck another motorist’s vehicle.
When Cobb County Police Department officers arrested Southall, he possessed a weapon equipped with an extended magazine and a revolver that was reported stolen out of Pennsylvania. The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) adopted the case and presented it to the U.S. Attorney’s Office for federal prosecution. Southall’s Cobb County charges are pending.
On July 13, 2022, Judge Eleanor L. Ross sentenced Southall to seven years in prison, to be followed by three years of supervised release. Southall pleaded guilty on April 13, 2022.
Assistant U.S Attorney Norman L. Barnett prosecuted the case. Former Assistant U.S. Attorney D’Juan Jones was the initial prosecutor for this case.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Cobb County Police Department investigated the case.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the Northern District of Georgia’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement and schools, the faith community, and local community leaders to prevent and deter future criminal conduct.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Federal Inmate Pleads Guilty to Threatening Federal JudgeRead the Press Release
FLORENCE, SOUTH CAROLINA —Stanley J. Kowalewski, 50, of North Carolina, has pleaded guilty to mailing threatening communications 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 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 all pending compassionate release motions, or motions 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 prison. During that visit, Kowalewski provided that person two envelopes, one inside the other, and told that person to handle the interior envelope with gloves, to not get fingerprints on the envelope, to not ask questions, and to place it in the mail. A recorded prison call from Kowalewski to the visitor revealed that Kowalewski directed the person to hurry up and mail the letter.
The investigation also revealed that there was no other inmate at Kowalewski’s facility who was sentenced by the victim judge or court. The letter was mailed across state lines and delivered to the victim judge. At the time of the threat, Kowalewski had a compassionate release motion pending before the victim court.
Kowalewski faces up to 10 years in federal prison, which can be ordered to be served consecutive to his current sentence. He also faces a fine of up to $250,000, restitution, and three years of court-ordered supervision to follow the term of imprisonment. Chief United States District Judge R. Bryan Harwell accepted the guilty plea and will sentence Kowalewski after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was investigated by the United States Marshals Service with assistance from the Federal Bureau of Investigation (FBI), the Federal Bureau of Prisons (BOP), the United States Postal Inspection Service (USPIS), and agencies in the Northern District of Georgia. Assistant U.S. Attorney Elliott B. Daniels is prosecuting the case.
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Federal Court Orders Clinic to Close, Physician and Clinic Owners to Pay $600,000 for Alleged Unlawful Opioid DistributionRead the Press Release
Tampa, FL – A federal court ordered a Tampa-area pain management clinic to close and directed the clinic’s owners and its former physician to collectively pay $600,000 in civil penalties pursuant to agreed resolutions in a case alleging violations of the Controlled Substances Act (CSA), the Justice Department announced today.
In a complaint filed in February 2021, the United States alleged that Dr. Tobias Bacaner wrote prescriptions for opioids without a legitimate medical purpose and outside the usual course of professional practice while employed at Paragon Community Healthcare, a pain clinic in New Port Richey, Florida. The complaint alleged that Paragon’s owners, Theodore Ferguson II and Timothy Ferguson, managed the clinic’s operations and profited from the unlawful prescribing while ignoring obvious signs of drug abuse and diversion. The complaint further alleged that Dr. Bacaner and the Fergusons used their jointly owned pharmacy, Cobalt Pharmacy, to unlawfully fill prescriptions issued at Paragon without scrutiny.
The order against Dr. Bacaner requires him to pay $500,000 in civil penalties and prohibits him from prescribing, administering, dispensing or distributing controlled substances, among other restrictions. The order against the Fergusons and Paragon requires them to jointly pay $100,000 in civil penalties. The order also requires Paragon to permanently close, and places restrictions on the Fergusons’ ability to own or work at entities that administer, dispense or distribute controlled substances in the future. The defendants also agreed to permanently dissolve Cobalt Pharmacy, which closed shortly before the government filed suit.
“Physicians who prescribe opioids without a legitimate medical purpose and outside of the usual course of professional practice and others who facilitate that conduct will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to aggressively use all available enforcement remedies to prevent the unlawful diversion of potentially dangerous prescription drugs.”
“Dr. Bacaner and his associates profited from unlawfully prescribing opioids without a legitimate medical purpose,” said U.S. Attorney for the Middle District of Florida Roger B. Handberg. “We will continue to protect the community from those who place a higher value on profit than the safety of the public.”
“Our communities place trust in their medical professionals to help them. The actions of Dr. Bacaner and owners of this clinic violated this trust,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This settlement highlights DEA’s commitment to hold medical providers accountable for violating laws designed to protect the health and safety of our communities. The closure of these businesses and the prohibition to continue to exploit those in need, ensures the wellbeing of patients everywhere.”
U.S. District Judge Virginia M. Hernandez Covington entered the consent decree in U.S. District Court for the Middle District of Florida.
The investigation was conducted by the DEA’s Tactical Diversion Squad in the Tampa District Office.
The United States was represented by Assistant U.S. Attorney Lindsay S. Griffin and Trial Attorneys Scott Dahlquist and Tom Rosso of the Justice Department’s Consumer Protection Branch.
Federal Court Orders Clinic to Close, Physician and Clinic Owners to Pay $600,000 for Alleged Unlawful Opioid DistributionRead the Press Release
A federal court ordered a Tampa-area pain management clinic to close and directed the clinic’s owners and its former physician to collectively pay $600,000 in civil penalties pursuant to agreed resolutions in a case alleging violations of the Controlled Substances Act (CSA), the Justice Department announced today.
In a complaint filed in February 2021, the United States alleged that Dr. Tobias Bacaner wrote prescriptions for opioids without a legitimate medical purpose and outside the usual course of professional practice while employed at Paragon Community Healthcare, a pain clinic in New Port Richey, Florida. The complaint alleged that Paragon’s owners, Theodore Ferguson II and Timothy Ferguson, managed the clinic’s operations and profited from the unlawful prescribing while ignoring obvious signs of drug abuse and diversion. The complaint further alleged that Dr. Bacaner and the Fergusons used their jointly owned pharmacy, Cobalt Pharmacy, to unlawfully fill prescriptions issued at Paragon without scrutiny.
The order against Dr. Bacaner requires him to pay $500,000 in civil penalties and prohibits him from prescribing, administering, dispensing or distributing controlled substances, among other restrictions. The order against the Fergusons and Paragon requires them to jointly pay $100,000 in civil penalties. The order also requires Paragon to permanently close, and places restrictions on the Fergusons’ ability to own or work at entities that administer, dispense or distribute controlled substances in the future. The defendants also agreed to permanently dissolve Cobalt Pharmacy, which closed shortly before the government filed suit.
“Physicians who prescribe opioids without a legitimate medical purpose and outside of the usual course of professional practice and others who facilitate that conduct will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will continue to aggressively use all available enforcement remedies to prevent the unlawful diversion of potentially dangerous prescription drugs.”
“Dr. Bacaner and his associates profited from unlawfully prescribing opioids without a legitimate medical purpose,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to protect the community from those who place a higher value on profit than the safety of the public.”
“Our communities place trust in their medical professionals to help them. The actions of Dr. Bacaner and owners of this clinic violated this trust,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This settlement highlights DEA’s commitment to hold medical providers accountable for violating laws designed to protect the health and safety of our communities. The closure of these businesses and the prohibition to continue to exploit those in need, ensures the wellbeing of patients everywhere.”
U.S. District Judge Virginia M. Hernandez Covington entered the consent decree in U.S. District Court for the Middle District of Florida.
The investigation was conducted by the DEA’s Tactical Diversion Squad in the Tampa District Office.
The United States was represented by Assistant U.S. Attorney Lindsay S. Griffin and Trial Attorneys Scott Dahlquist and Tom Rosso of the Justice Department’s Consumer Protection Branch.
Former Treasurer of Perry County Agricultural Society Sentenced to 21 Months in Federal Prison for FraudRead the Press Release
Benton, Ill. – Yesterday afternoon, in federal court in Benton, IL, Billy E. Harris, 49, the former
treasurer of the Perry County Agricultural Society (“PCAS”), was sentenced to 21 months in prison
for defrauding the PCAS out of more than $148,000.
The PCAS operates all of the festivals at the Perry County Fairgrounds in Pinckneyville, including
the Perry County Fair. Harris, currently of St. Louis, MO, served as the treasurer of the PCAS
from 2011 through October 2018. At his plea hearing earlier this year, Harris admitted that from
June 5, 2012 through October 3, 2018, he defrauded the PCAS out of more than $100,000.
Specifically, Harris acknowledged that he paid his personal expenses, and purchased items for his
personal use, with electronic debits from the PCAS bank account. Many of those items were
purchased through Amazon. Some of the items that Harris admitted purchasing with PCAS funds
include a WiFi router, Apple AirPods, a Himalyan Salt Lamp Air Purifier, Star Wars Darth Vader and
Yoda personalized pet tags, a pair of Star Wars men’s sleep pants, a floating pool fountain, a CPAP
tube cleaning brush, and men’s grooming products, including beard lube. Harris also admitted
writing checks on the PCAS account payable to himself and his spouse, and forging a Board member’s
signature on those checks.At the sentencing hearing yesterday, the sentencing judge noted that Harris’ fraud against the PCAS
was a product of greed. In explaining her decision to sentence Harris to prison, the judge stated
that individuals who prey on small community organizations cannot steal large sums of money and
then simply say “I’m sorry” and walk away with no real consequences.“When individuals like Harris steal from civic groups like the Perry County Agricultural Society,
they are really stealing from the communities that the groups serve,” said U.S. Attorney Rachelle
Aud Crowe. “In this case, Harris stole from the people of Perry County who enjoy attending
community events at the Perry County Fairgrounds. We will always seek to hold these individuals
accountable for their actions.”In addition to the 21 month prison sentence, the court also ordered Harris to pay $148,908.07 in
restitution to the PCAS. After he is released from prison, Harris will then serve a two year
period of
supervised release.The St. Louis Office of the U.S. Postal Inspection Service and the Pinckneyville Police Department
investigated the case. The Perry County State’s Attorney’s Office also assisted with the
investigation.
Assistant U.S. Attorneys Scott Verseman and Zoe Gross prosecuted the case.Executives of Card Payment Processing Company Indicted in East Texas for Nationwide Multimillion Dollar Fraud SchemeRead the Press Release
SHERMAN, Texas – A federal grand jury in Texas has indicted former executives and company leaders at Electronic Transactions Systems Corporation (“ETS”) for their conduct in defrauding approximately 7,000 merchant clients out of millions of dollars, announced Eastern District of Texas U.S. Attorney Brit Featherston today.
Edward Walsh Vaughan, 58, of California; Hadi Akkad, 49, of Virginia; Jill Hall Mandichak, 43, of Virginia; Sean Lynch, 50, of Virginia; Katherine Nguyen, 38, of North Carolina; and Gina Ellingsen, 43, of Minnesota, were all charged with conspiracy to commit wire fraud. Vaughan and Akkad were also charged with money laundering conspiracy.
ETS was a card processing company located in Virginia that provided equipment and services to facilitate credit and debit card payment transactions for merchant clients, including government municipalities, private businesses, and charity organizations throughout the country. According to the indictment, between 2012 and 2019, the defendants, at the direction of ETS president Ed Vaughan, are alleged to have defrauded ETS merchant clients by deliberately disguising a portion of their processing fees for thousands of clients. The indictment describes how the defendants executed their fraud, including by embedding the hidden markups in “Interchange fees,” misleading merchant clients in emails and contracts, and failing to disclose the true fee structure in billing and account statements.
The indictment also details how Vaughan and Akkad used the fraudulently obtained funds to personally enrich themselves through multimillion-dollar bonuses, luxury vehicles and private aircraft, and high-end real estate purchases. In addition, because the fraud was concealed prior to ETS’ acquisition, Vaughan received an additional $107 million, and Akkad received $33 million from the sale of the company.
If convicted, the defendants each face up to 30 years in federal prison.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case is being investigated by the FBI’s Washington Field Office and is being prosecuted by Assistant U.S. Attorneys in the Eastern District of Texas.
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Erie Woman Pleads Guilty in Meth Trafficking RingRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
Sarah Umanita Bloom, 31, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from in and around June 2018, to on or about February 28, 2020, Bloom conspired with her co-defendants to distribute methamphetamine as they participated in a methamphetamine distribution network that trafficked methamphetamine from Akron, Ohio and Erie, Pennsylvania into Crawford, Venango and Warren Counties.
Judge Baxter scheduled sentencing for November 18, 2022 at 1:30 p.m. The law provides for a total sentence of life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, Troop E, Vice Unit, the Titusville Police Department, the Warren County Drug Task Force, the Warren County Sherriff’s Office and the Crawford County Sherriff’s Office conducted the investigation that led to the prosecution of Bloom.
Erie Man Admits Bringing 8 Pounds of Meth from Arizona to ErieRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of violating federal drugs laws, United States Attorney Cindy K. Chung announced today.
Willie C. Sanders III pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that on or about July 20, 2019, Sanders possessed with the intent to distribute 8.38 pounds of methamphetamine which he had brought in a suitcase from Arizona through the Erie Airport.
Judge Baxter scheduled sentencing for November 17, 2022 at 1:30 p.m. The law provides for a total sentence of life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Sanders on bond.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Sanders.
El Paso Man Sentenced to 10 Years for Enticement of a MinorRead the Press Release
EL PASO – An El Paso man was sentenced today to 120 months in prison for coercion and enticement of a minor.
According to court documents, on April 24, 2021, Justin Allen Thomas, 32, began a conversation through a social media application with a 14-year-old. The conversation quickly turned sexual in nature and Thomas made plans to meet the teen for a sexual encounter. When Thomas showed up at the teen’s residence, he was arrested by law enforcement. Instead of a 14-year-old, Thomas was communicating with an FBI employee.
On May 2, 2022, Thomas pleaded guilty to one count of attempted coercion and enticement. He has remained in federal custody since his arrest on April 24, 2021.
“This case highlights the importance of undercover operations in preventing these individuals from harming children in our community,” said U.S. Attorney Ashley C. Hoff. “Not only did this individual plan to meet with someone whom he thought was a 14-year-old to engage in prohibited sexual activity, but agents discovered child sexual exploitation material on his electronic devices after his arrest.”
“Individuals such as Mr. Thomas, who target the most vulnerable members of our community, will be held accountable for their actions,” said Jeffrey R. Downey, Special Agent in Charge FBI El Paso Field Office. “I am extremely proud of the hard work conducted by our Agents and the El Paso Police Department, Homeland Security Investigations (HSI), and Texas Department of Public Safety to ensure justice was served in this case. The FBI will continue to work hard to stop these crimes from occurring.”
The FBI, with valuable assistance from HSI, the Texas Department of Public Safety and the El Paso Police Department, investigated the case.
Assistant U.S. Attorney Sarah Valenzuela prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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El Departamento de Justicia y la Oficina para la Protección Financiera del Consumidor llegan a un acuerdo con Trident Mortgage Company para resolver acusaciones de discriminación en el ámbito crediticioRead the Press Release
El acuerdo proporciona más de $20 millones para mejorar las oportunidades crediticias en vecindarios de color
Primer acuerdo contra una compañía de hipotecas que combate la exclusión financiera; segundo acuerdo más grande contra la exclusión financiera en la historia del Departamento de Justicia
El Departamento de Justicia, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y los Fiscales de Pennsylvania, New Jersey y Delaware anunciaron hoy una serie de acuerdos para resolver alegaciones de que Trident Mortgage Company (Trident), cuyo dueño es Berkshire Hathaway Inc., incurrió en un patrón o una práctica de discriminación en el ámbito crediticio al practicar exclusión financiera en la zona metropolitana de Philadelphia, incluyendo en vecindarios de Philadelphia, Camden y Wilmington. Esta resolución representa el primer acuerdo contra la exclusión financiera que el Departamento de Justicia ha conseguido con una entidad crediticia no bancaria y el segundo acuerdo más grande contra la exclusión financiera en la historia del Departamento.
“En otoño del año pasado, anuncié la Iniciativa para Combatir la Exclusión Financiera, del Departamento de Justicia, y prometí que movilizaríamos recursos para hacer realidad el acceso crediticio justo en vecindarios marginados por todo nuestro país”, afirmó el Fiscal General Merrick B. Garland. “Tal y como se ha demostrado mediante el anuncio histórico de hoy, estamos aumentando nuestra coordinación con agencias federales de regulación financiera y Fiscalías Generales estatales con el fin de combatir la exclusión financiera moderna que ha afectado de manera ilegal las comunidades de color”.
“Este acuerdo es un recordatorio claro que la exclusión financiera no es un problema de otra época lejana. Las actividades ilícitas de exclusión financiera de Trident denegaron a comunidades de color la igualdad de acceso a hipotecas residenciales, les quitaron la oportunidad de generar riqueza y desvaloraron propiedades en sus vecindarios”, declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo garantiza la infusión de recursos crediticios significativos en vecindarios de color por la zona de Philadelphia que, a nivel histórico, han experimentado discriminación racial. Junto con nuestros compañeros federales y estatales de la aplicación de la ley, estamos enviando el mensaje potente a los prestamistas que se les hará rendir cuentas si vulneran nuestras leyes de préstamos justos”.
“Trident practicó la exclusión financiera por la zona de Philadelphia y excluyó a familias elegibles que querían comprar una casa”, comentó Rohit Chopra, el director de la CFPB. “Dado el alto costo de la vivienda, es fundamental que la discriminación ilegal no aleje todavía la posibilidad de ser propietario”.
“Durante demasiados años ya, las comunidades negras, latinas y otras comunidades de color no se han beneficiado de la igualdad de acceso a préstamos y titularidad legal de escrituras”, dijo Jacqueline Romero, la Fiscal Federal para el Distrito Este de Pennsylvania. “Estas áreas de Philadelphia, que han sido históricamente excluidas financieramente, siguen experimentando niveles desproporcionados de pobreza, malas situaciones sanitarias, niveles educativos más bajos, desempleo y delito violento. Me complace que mi oficina haya podido apoyar, mediante esta resolución, la Iniciativa para Combatir la Exclusión Financiera del Fiscal General y espero seguir colaborando con la División de Derechos Civiles”.
La “exclusión financiera” (conocido como “redlining”, en inglés) es una práctica ilegal en la que prestamistas evitan la prestación de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color de piel o el origen nacional de los residentes de tales comunidades. La demanda que se presentó ante un tribunal federal hoy alega que, desde al menos el 2015 y hasta el 2019, Trident no prestó servicios de préstamos hipotecarios a vecindarios de color por la zona metropolitana de Philadelphia, sus oficinas estaban concentradas en vecindarios de mayoría blanca y sus oficiales de crédito no atendían a las necesidades crediticias de vecindarios de color. Asimismo, la demanda alega que los oficiales de crédito enviaban y recibían correos de trabajo que contenían comentarios racistas y referencias a comunidades de color como «ghetto».
Conforme la orden de consentimiento propuesta, la cual queda sujeta a la aprobación del tribunal y fue presentada junto con una demanda hoy ante el Tribunal Federal de Distrito para el Distrito Este de Pennsylvania, Trident ha acordado invertir más de $20 millones con el fin de aumentar las oportunidades crediticias en vecindarios de color por la zona metropolitana de Philadelphia. Trident invertirá al menos: $18.4 millones en un fondo de préstamos subvencionados para residentes de vecindarios de color por la zona metropolitana de Philadelphia; $750,000 en el desarrollo de asociaciones comunitarias con el fin de prestar servicios que mejoran el acceso a los préstamos hipotecarios residenciales; $875,000 en anuncios y proyección comunitaria; y $375,000 en educación financiera para el consumidor. Puesto que Trident ya no opera un negocio de préstamos, contratará a otro prestamista para la provisión de préstamos subvencionados y servicios crediticios a las comunidades que fueron excluidas financieramente. Por otra parte, Trident asegurará que el prestamista emplee al menos a cuatro oficiales de crédito hipotecario dedicados para servir los vecindarios dentro y alrededor de las ciudades de Philadelphia, Camden y Wilmington; mantendrá al menos cuatro sucursales en esos vecindarios; y empleará a un gerente de préstamos comunitarios a tiempo completo que supervisará el desarrollo continuo del crédito en vecindarios de color por la zona metropolitana de Philadelphia. Asimismo, Trident pagará una sanción civil de $4 millones.
Trident también ha celebrado acuerdos con Pennsylvania, New Jersey y Delaware. Esos acuerdos resuelven alegaciones tanto contra Trident como contra Fox & Roach LP, una filial del mercado inmobiliario de Trident. Además de los términos del acuerdo incluidos en la orden de consentimiento federal, conforme a los acuerdos con Pennsylvania y New Jersey, Trident reembolsará a los estados por los gastos incurridos en la realización de las investigaciones. Además, Fox & Roach invertirá $150,000 en la publicidad en comunidades de color por la zona metropolitana de Philadelphia.
El Departamento de Justicia y la CFPB investigaron este asunto conjuntamente, con el apoyo de la Fiscalía Federal para el Distrito Este de Pennsylvania. La investigación fue coordinada estrechamente con los Fiscales Generales de la Mancomunidad de Pennsylvania y los estados de New Jersey y Delaware.
El acuerdo forma parte de la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley cuyo objetivo es abordar esta forma persistente de discriminación contra comunidades de color. La iniciativa está expandiendo el alcance del Departamento al fortalecer las asociaciones con Fiscalías Federales por todo el país, socios regulatorios y nuestros socios en las Fiscalías Generales Estatales. Para más información sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos, vaya a https://www.justice.gov/crt-espanol/hce. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregando un informe en línea.
Drug Trafficker Pleads GuiltyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Cardell Richardson, 33, of Chili, NY, pleaded guilty before U.S. District Judge David G. Larimer to possession of 10 grams or more of para-flourofentanyl with intent to distribute, which carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a fine of $5,000,000.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that in June and July of 2021, investigators purchased suspected fentanyl from Richardson on three separate occasions. On July 22, 2021, investigators searched Richardson’s residence on Forsythia Drive in Chili, seizing multiple quantities of fentanyl and para-flourofentanyl, a fentanyl analogue, as well as nearly $4,000 in cash, a digital scale and drug packaging material. Richardson, who was arrested outside his residence, was found with 76 decks of para-flourofentanyl and $590 in his possession.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The plea is the result of an investigation by the Greater Rochester Area Narcotics Enforcement Team and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
Sentencing is scheduled for October 3, 2022, at 2:00 p.m. before the Judge Larimer.
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Desoto County Man Pays the Price for Producing and Distributing Child PornographyRead the Press Release
Greenville, Miss. – A Southaven man was sentenced today to 17.5 years in prison for distribution of child sexual abuse materials.
According to court documents, Daniel Blake Coulston, 27 years old, used a minor to produce child sexual abuse material on his cell phone. Coulston admitted to sharing those images with numerous other persons through a social media application.
“We see far too many of these types of cases, and it is our hope that lengthy prison sentences will serve not only to remove guilty individuals from society, but will also act as a deterrent against heinous crimes of this nature,” stated U.S. Attorney Clay Joyner.
"Our underage citizens depend upon the adults of the community to protect them. Those who violate the innocence of our youth deteriorate the safety of our society's future. The FBI maintains a commitment to support our local and DOJ partners in aggressively investigating and preventing harm to minors," stated Special Agent in Charge Jermicha Fomby.
The Federal Bureau of Investigation and the Desoto County Sheriff’s Department investigated the case.
Assistant U.S. Attorney Parker S. King prosecuted the case.
Crime Spree Lands Carjacker in Federal Prison for 21 YearsRead the Press Release
Tampa, Florida – U.S. District Judge Steven Merryday has sentenced Javeon Jacobs (22, Tampa) to 21 years in federal prison for firearms offenses relating to his brandishing of a firearm during three armed carjacking incidents. Jacobs had pleaded guilty on April 14, 2022.
According to court documents, on March 31, 2021, Jacobs used a firearm and physical force to carjack a vehicle in Safety Harbor. On April 18, 2021, Jacobs kidnapped two individuals at gunpoint in Tampa and took their vehicle. After releasing those victims, Jacobs abandoned their vehicle at another location in Tampa, where Jacobs carjacked another vehicle, again by brandishing a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Florida Department of Law Enforcement, the Tampa Police Department, the Pinellas County Sheriff’s Office, the Pasco Sheriff’s Office, the Polk County Sheriff’s Office, the Hillsborough County Sheriff’s Office, and the Largo Police Department. It was prosecuted by Assistant United States Attorney Jim Preston.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety – one that includes investigating and prosecuting crimes, along with prevention and re-entry efforts. In the Middle District of Florida, U.S. Attorney Roger B. Handberg coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
Council Bluffs Man sentenced for Sex Trafficking TeenagersRead the Press Release
Acting United States Attorney Steven A. Russell announced that Jesse Cody, 34 of Council Bluffs, Iowa was sentenced on July 26, 2022, for sex trafficking two teenagers between Iowa and Nebraska. Chief United States District Judge Robert F. Rossiter, Jr sentenced Cody to 16 years’ imprisonment. There is no parole in the federal system. After his release from prison, Cody will have to register as a sex offender and serve a five-year term of supervised release.
A federal jury previously convicted Cody of trafficking an eighteen year old victim in foster care and a nineteen year old woman who resided in Omaha. The foster care victim testified at trial that Cody forced her to have sex with men for money for Cody’s financial gain. The victim testified that Cody beat, raped, and choked her when she would refuse to comply with his demands. Cody induced the second victim, then a college student, into sex trafficking by misrepresenting to the victim the money that she could make and the lifestyle that she would lead and then Cody took most of the money for himself.
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.
This case was investigated by the Federal Bureau of Investigation and the Omaha Police Department.
Convicted Drug Dealer Found with Firearm in Car Sentenced to Federal PrisonRead the Press Release
A man who was found with a Taurus 709 slim 9x19mm caliber pistol and marijuana in his car was sentenced July 26, 2022, to more than three years in federal prison.
Edward Roby Jr., age 25, from Waterloo, Iowa, received the prison term after a December 28, 2021 guilty plea to possession of a firearm by a felon. At the guilty plea, Roby admitted that July 25, 2021, he knowingly possessed a firearm. He also admitted that he had previously been convicted of a felony, possession of a controlled substance with intent to distribute in Black Hawk County, Iowa, in 2018.
Roby was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Roby was sentenced to 41 months’ imprisonment and fined $100. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Roby is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Lisa Williams and investigated by the Waterloo Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-cr-2057.
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Columbia Man Sentenced to 12 Years for Selling Drugs to ATFRead the Press Release
COLUMBIA, SOUTH CAROLINA —Derrall Lanard Reed, a/k/a “Ric0,”35, of Columbia, was sentenced to 12 years in federal prison after pleading guilty to five counts of felon in possession of a firearm and ammunition and four counts of possession with intent to distribute and distribution of cocaine and crack cocaine.
Evidence obtained in the investigation revealed that in early 2020, agents from Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), along with local agencies, conducted an investigation into firearms within the Columbia area. During this investigation, undercover ATF agents were introduced to Reed, who during five transactions in February 2020 sold five handguns, many of which were loaded, and crack cocaine and cocaine to undercover ATF agents. During one of the transactions, the undercover agent tried to buy Reed’s personal firearm, but he refused, saying he didn’t want to be “naked” (without a gun). Reed was arrested on federal charges and detained without bond on March 12, 2020, when he showed up to sell another firearm to the undercover agents. A federal search warrant was executed on his home. Inside the home, agents found his personal firearm, which had a high-capacity magazine, and various rounds of ammunition. Of the six handguns recovered by ATF during this investigation, three had previously been reported as having been stolen from residences or vehicles. Two were previously reported stolen in Richland County, and one, on which someone had attempted to obliterate the serial number, had previously been reported as having been stolen from a residence in Hoke County, North Carolina. Additionally, two of the firearms, including the one recovered in Reed’s home, were preliminarily linked through ballistics analysis as having been involved in ShotSpotter incidents and other shooting incidents in Columbia on July 2019, November 2019, December 2019, and March 2020. Reed has prior state convictions for possession of crack cocaine (2004), possession with intent to distribute crack cocaine (2006), and assault and battery with intent to kill (2006, wherein he shot another person in the thigh).
United States District Court Judge Mary Geiger Lewis sentenced Reed to a total of 144 months imprisonment to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
This investigation by the ATF, Columbia Police Department, Richland County Sheriff’s Department, and the Midlands Gang Task Force was made possible by leads generated from the ATF’s 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.
The technology known as “ShotSpotter” relies upon acoustic sensors to pinpoint where gunfire occurs. Information from the sensors is sent to officers of the Columbia Police Department and 9-1-1 dispatchers through real-time digital alerts.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Stacey D. Haynes prosecuted the case.
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Colorado Springs Man Pleads Guilty to Distribution of Deadly Dose of FentanylRead the Press Release
DENVER - The United States Attorney’s Office for the District of Colorado announces Douglas Floyd, age 52, of Colorado Springs, pleaded guilty today to conspiracy to distribute fentanyl and para-fluorofentanyl that resulted in the death of a 16-year-old boy in Colorado Springs.
According to the plea agreement, the defendant conspired with two co-defendants to violate federal drug laws. Specifically, between December 2021 and January 30, 2022, the three of them agreed to distribute blue pills to a juvenile and his friends. The blue pills contained fentanyl, a Schedule II controlled substance, and para-fluorofentanyl, a Schedule I controlled substance. According to the plea agreement, the juvenile’s death on January 31, 2022, resulted from the use of fentanyl and para-fluorofentanyl contained within pills that were distributed as part of the conspiracy. The defendant was in the distribution chain of the drugs that resulted in the juvenile’s death.
Judge Regina M. Rodriguez presided over the change of plea hearing on July 27, 2022. The defendant will be sentenced on October 17, 2022. The case against the two co-defendants remains ongoing in federal district court in Denver. Those defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the FBI Denver Division and the Colorado Springs Police Department. Prosecution is being handled by Assistant United States Attorneys Peter McNeilly and Alyssa Mance.
Case number: 22-cr-080
Chief Financial Officer of Global Public Relations Firm Pleads Guilty to Fraud and Falsification of Corporate RecordsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that FRANK OKUNAK, the former chief financial officer of one of the world’s leading global public relations firms, pled guilty in connection with a decade-long scheme to embezzle over $16 million from his employer.
U.S. Attorney Damian Williams stated: “ Frank Okunak, former CFO of one of the world’s leading public relations firms, admitted today to illegally embezzling over $16 million of the firm’s assets to pay for his posh lifestyle. Okunak now awaits sentencing for his decade-long fraud scheme.”
According to the allegations in the Information, statements made in court, and court filings:
For nearly a decade, FRANK OKUNAK, who was the chief financial officer and later chief operating officer of a leading global public relations firms (the “PR Firm”), embezzled over $16 million from the PR Firm and, ultimately, the shareholders of the PR Firm’s publicly traded parent corporation. OKUNAK used the embezzled funds to finance his personal lifestyle and his own private business ventures. OKUNAK concealed and facilitated his theft by preparing and causing others to prepare materially false accounting books and records, including invoices and payment records that falsely described expenditures as having been undertaken for the benefit of the PR Firm, when funds were actually used for OKUNAK’s personal benefit or for the benefit of his personal business associates.
Specifically, from 2011 through 2020, OKUNAK used his authority as an officer of the PR Firm to cause the PR Firm to make unauthorized payments for OKUNAK’s personal and business ventures unrelated to the activities of the PR Firm or its corporate parents. OKUNAK used the PR Firm’s assets to provide the start-up capital for his personal, independent business ventures, to purchase tickets and luxury boxes at sporting events, and even to cover donations to his alma mater. To hide the illicit nature of these expenditures, OKUNAK frequently prepared or caused others to prepare false or misleading invoices and other documentation to suggest, falsely, that the funds were used for legitimate corporate purposes.
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OKUNAK, 56, of Lyndhurst, New Jersey, pled guilty to one count of wire fraud and one count of falsification of corporate books and records. Each count carries a maximum sentence of 20 years in prison. As part of his guilty plea, OKUNAK agreed to forfeit $10,823,575.57 and to pay restitution of $16,043,603.71.
Mr. Williams praised the outstanding work of the FBI. Mr. Williams further thanked the U.S. Securities and Exchange Commission and the victim PR Firm and its corporate parent for their cooperation and assistance in this investigation.
The prosecution of this case is being overseen by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Scott Hartman and Matthew Podolsky are in charge of the case.
Charleston Woman Sentenced to Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – Lettia Harris, also known as “Tish,” 30, of Charleston, was sentenced today to five years in prison, to be followed by three years of supervised release, for possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, Harris admitted to selling a Jennings, model J22, .22-caliber pistol and approximately 0.6 grams of cocaine base, also known as “crack,” to a confidential informant at her Charleston residence on November 14, 2018.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Charleston Police Department.
United States District Judge Joseph R. Goodwin imposed the sentence. Assistant United States Attorney Alex Hamner 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-117.
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Cardiologist Sentenced to 30 Months in Prison for Unlawfully Distributing Thousands of Oxycodone PillsRead the Press Release
TRENTON, N.J. – A New Jersey cardiologist was sentenced today to 30 months in prison for unlawfully prescribing thousands of Oxycodone pills, U.S. Attorney Philip R. Sellinger announced.
Raymond Catania, 60, of Warren, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Michael A. Shipp to an information charging him with dispensing Oxycodone outside of the usual course of professional practice and not for a legitimate medical purpose. Judge Shipp imposed the sentence today in Trenton federal court.
According to documents filed in this case and statements made in court:
Catania was a New Jersey physician specializing in cardiology and practicing in Watchung, New Jersey. From January 2016 through March 2017, Catania issued prescriptions for thousands of Oxycodone pills to one of his patients, and Catania did so without a legitimate medical purpose and outside of the usual course of professional practice. Catania also issued prescriptions for thousands of Oxycodone pills to that patient’s wife even though the wife was not Catania’s patient. Oxycodone – a Schedule II controlled substance – has a high potential for abuse that can lead to severe psychological and physical dependence and can result in fatal overdoses. Catania prescribed more than 8,600 Oxycodone 30 mg pills.
In addition to the prison term, Judge Shipp fined Catania $25,000 and sentenced him to three years of supervised release.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Leslie F. Schwartz, Senior Litigation Counsel, of the Special Prosecutions Division, in Newark.
Buffalo Man Sentenced on Gun ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Shamaar Braggs, 41, of Buffalo, NY, who was convicted of being a felon in possession of a firearm, was sentenced to serve six months home incarceration and three years supervised release by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Joshua A. Violanti, who handled the case, stated that in May 2018, Braggs was under the supervision of New York State Department of Corrections and Community Supervision following a previous drug conviction in Chautauqua County Court. On May 19, 2018, New State Parole Officers conducted a parole search of Braggs’ residence, during which they located a .40 caliber pistol, a .22 caliber assault rifle, an assault rifle, a quantity of marijuana and suboxone, $2,730.00 in cash, and two digital scales. Buffalo Police Officers then responded and took Braggs into custody.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci.
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Blythewood Man Pleads Guilty to Sex Trafficking and Heroin Distribution OffensesRead the Press Release
COLUMBIA, SOUTH CAROLINA — Brian Leroy Watson, a/k/a “Lil B,” a/k/a “B,” 50, of Blythewood, has pleaded guilty to attempted sex trafficking of a minor and possession with intent to distribute and distribution of a quantity of heroin.
Evidence obtained in the investigation revealed that in January and February 2016, Watson attempted to exploit a minor female victim in commercial sex. In March 2016, the victim disclosed to law enforcement that Watson, a heroin and crack cocaine dealer, sexually assaulted her. Watson was interviewed by law enforcement, and he denied assaulting the victim and instead said he was prostituting her.
Advertisements from Backpage.com linked to Watson’s cell phone number and e-mail address showed the minor victim was advertised for commercial sex. Text messages from Watson’s phone also provided evidence that Watson knew the victim was a minor, and that he distributed heroin to and sexually exploited the minor victim. Another purported victim of Watson’s also told FBI that Watson exploited the minor victim in commercial sex. Numerous witnesses told FBI that Watson manipulated the withdraw symptoms and drug dependence of women to obtain commercial sex for his financial gain.
As for the heroin distribution conviction, Watson sold a quantity of heroin on August 29, 2016 to an undercover officer with the Richland County Sherriff’s Department. Watson negotiated the sale of heroin with officer, which occurred at his residence, and Watson carried a pistol in his hand at the time of the drug sale. The sale was audio and video recorded, and lab tests confirmed what Watson sold was heroin.
Watson faces up to Life in federal prison. He also faces a fine of up to $250,000, restitution to all identifiable victims of his scheme, and a Life term of court-ordered supervision to follow any term of imprisonment. He also must register as a sex offender upon any release from prison. United States District Judge J. Michelle Childs accepted the guilty plea and the Court will sentence Watson after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
This case was investigated by the FBI, the Richland County Sheriff’s Department, and the Kershaw County Sheriff’s Office. Assistant U.S. Attorney Elliott B. Daniels is prosecuting the case.
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Billings Woman Sentenced to 32 Months in Prison in Identity Theft CaseRead the Press Release
BILLINGS - U.S. Attorney Jesse Laslovich announced today that a 37-year-old Billings woman was sentenced to two and a half years in prison, followed by five years of supervised release for multiple counts of wire fraud, bank fraud and aggravated identity theft. Additionally, the defendant was ordered to pay $21,045.98 in restitution. U.S. District Judge Susan Watters presided.
Elizabeth Stephenson, while working at an assisted living facility in Billings, Montana, took the debit card and PIN from a 96-year-old resident who requested she buy him a six-pack of beer. Stephenson did so, and then used the victim’s bank card twelve times to place funds—over $1,000—on the Telmate account of her boyfriend who was incarcerated in Idaho. Over the next month—and on 22 separate occasions—Stephenson took the card to an ATM and withdrew over $16,200 from the victim’s account, always in $700 increments. Stephenson also utilized the victim’s credit card to obtain thousands of dollars of criminal legal services for her boyfriend. All told, Stephenson caused a loss of over $21,000.00 to the elderly victim. The missing money was discovered by a relative who was serving as the victim’s Power of Attorney.
When questioned by law enforcement, Stephenson denied any involvement and claimed the victim never gave her his credit card. Stephenson maintained her innocence even when advised that her name had been entered in an attempted Cash App transaction on the victim’s phone. When Stephenson finally acknowledged she took the money, she claimed the victim gave her permission and that she always provided him with some of the funds she withdrew. Stephenson later conceded that the victim did not actually have the capacity to authorize the transfer of any funds to her.
When interviewed, the victim could not remember which employee he gave his card. After Stephenson’s theft was discovered, he only had $94 in his wallet.
Assistant U.S. Attorney Karla Painter prosecuted the case which was investigated by the United States Secret Service and the Billings Police Department.
Asleep at the wheel drug trafficker sent to federal prisonRead the Press Release
CORPUS CHRISTI, Texas – A 28-year-old Alice man has been ordered to federal prison following his conviction of trafficking meth, announced U.S. Attorney Jennifer B. Lowery.
Allen Marcus Carrillo pleaded guilty May 2.
Today, U.S. District Judge Drew B. Tipton ordered him to serve a 126-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence detailing Carrillo’s efforts to acquire narcotics and other contraband while in custody for this offense by attempting to bribe a guard at the federal detention facility. In handing down the sentence, Judge Tipton noted Carrillo’s efforts to acquire contraband while in federal custody were “extraordinary” and justified the lengthy sentence imposed.
On May 17, 2021, authorities observed Carrillo’s vehicle obstructing traffic on Highway 359. When they approached, they discovered Carrillo asleep in the driver’s seat of the running car.
A subsequent search revealed a black magnetic box containing more than 90 grams of pure meth underneath Carrillo’s seat.
Carrillo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration conducted this investigation with the assistance of the Jim Wells County Sheriff’s Department. Assistant U.S. Attorney Robert D. Thorpe Jr. prosecuted the case.
Alabama Man Convicted of Attempting to Entice A Minor to Engage in Sexual Activity and Traveling to Florida to Have Sex with A MinorRead the Press Release
TALLAHASSEE, FLORIDA – A federal jury in Tallahassee convicted Jason Earl Kirkland, 44, of Cottonwood, Alabama of attempted enticement of a minor to engage in sexual activity and interstate travel with intent to engage in illicit sexual conduct. The guilty verdict, returned yesterday, at the conclusion of a two-day trial, was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“There is no greater charge than the protection of our children,” stated U.S. Attorney Coody. “This multi-agency investigation and the related prosecution is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who engage in such heinous conduct.”
In May 2021, investigators from the Jackson County Sheriff’s Office, Panama City Beach Police Department, Walton County Sheriff’s Office, the Florida Department of Law Enforcement, and Homeland Security Investigations conducted an undercover online operation to identify individuals seeking to engage in sexual activity with minors. Evidence introduced during the trial revealed that on May 12, 2021, a person with the username "Mark from Cottonwood" and who claimed to be 41 years old, later identified as Jason Earl Kirkland, sent a private message to an undercover (UC) law enforcement profile, claiming to be a 14-year-old girl located in Marianna, Florida, using a social media and messaging application. Kirkland and the UC officer exchanged several messages before having voice communications over the phone and through text messaging.
“The internet is a dangerous place for sexual predators who choose innocent children as their victims when it’s an uncover agent on the other end,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “The investigative power of HSI, and our law enforcement partnerships Jackson County Sheriff’s Office, Panama City Beach Police Department, Bay County Sheriff’s Office, and the Florida Department of Law Enforcement, is why this predator will spend some much-deserved time behind bars.”
“Nothing is more important than the safety of our children and we will work diligently with our law enforcement partners to ensure they do not become victims,” stated Jackson County Sheriff Donnie Edenfield.
On May 13, 2021, Kirkland resumed contact with the UC, where the conversation became sexual in nature and Kirkland expressed his desire to engage in sexual acts with the UC (who he believed to be a 14-year-old girl). Kirkland also sent a nude photograph of himself and of his genitals to the UC through text messages. Kirkland then traveled to Marianna, Florida to meet the UC so he could drive her back to his residence to engage in sexual activity. Kirkland was arrested upon his arrival at the designated meeting location.
“Unfortunately, we see too many cases like this, where children are potentially being preyed upon by sexual predators. These predators have the ability to camouflage themselves online, and they can seem friendly and non-threatening,” stated Chief Talamantez. “We urge parents to remain diligent in their children’s use of social media and have those difficult conversations with your kids about the dangers of the Internet. There is a huge threat out there and we need to do everything we can to protect our children and prevent them from becoming victims. The Panama City Beach Police Department aggressively pursues these cases to protect our children and our community. This is one more predator off the street, but the threat never goes away. Our department is honored to work with other law enforcement agencies who are committed to the arrest and prosecution of these predators.”
Kirkland’s sentencing hearing is scheduled for October 7, 2022, at 1:30 p.m., at the United States Courthouse in Tallahassee before United States Chief District Mark E. Walker. Kirkland faces a minimum mandatory sentence of 10 years in prison, and a maximum of life in prison, for the attempted enticement charge. For the charge interstate travel to have sex with a minor, Kirkland faces a maximum of 30 years in prison.
This conviction was the result of a joint investigation conducted by Homeland Security Investigations, Jackson County Sheriff’s Office, Panama City Beach Police Department, Bay County Sheriff’s Office, and the Florida Department of Law Enforcement. Assistant United States Attorney Justin M. Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
34 Meth Traffickers Sentenced to 360+ Years in Federal PrisonRead the Press Release
Thirty-four members of a methamphetamine ring that operated in the Dimmitt, Texas area have been sentenced to a combined 364 years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
The majority were charged in a 38-count federal indictment filed in February 2020, then arrested during a large-scale takedown in March 2020. The FBI’s Dallas Field Office, which led the bust, dubbed it Operation Tierra de Hielo, or “Operation Land of Ice.”
The first defendant to plead guilty, Denita Mirelez, 48, entered her plea on August 19, 2020, admitting that she and a co-conspirator sold several ounces of meth to an FBI informant. She was later sentenced to 97 months in federal prison. The final defendant to plead guilty, Johnny Gilbert Lopez, aka “Cannon,” 55, entered his plea 19 months later, on March 21, 2022. He also admitted that he sold meth to an informant and was sentenced yesterday to 100 months in federal prison.
The remaining defendants pleaded guilty and were sentenced as follows:
- Jesus Garcia, aka “Don Chuy,” 60
Pleaded guilty to possession with intent to distribute methamphetamine and possession of a firearm in furtherance of a drug trafficking crime; sentenced on May 18, 2021 to 300 months in federal prison
- Noel Mandujano, 50
Pleaded guilty to possession with intent to distribute methamphetamine; sentenced on July 20, 2021 to 360 months in federal prison
- Robert Vera, 51
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 20, 2021 to 188 months in federal prison
- Osvaldo Cortez, aka “Lito,” 41
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on April 8, 2021 to 135 months in federal prison
- Gustavo Rincon, aka “Tavo,” 45
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Feb. 17, 2021 to 210 months in federal prison
- Ricky Dale Leavitt, aka “Big Rick,” 48
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on July 13, 2021 to 97 months in federal prison
- Tyler Martin Miller, 32
Pleaded guilty to conspiracy to distribute methamphetamine; sentenced on July 7, 2021 to 120 months in federal prison
- Robert “Roberto” Flores, 46
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on May 25, 2021 to 235 months in federal prison
- Tiffany Darlene Haner, 38
Pleaded guilty to being a felon in possession of a firearm; sentenced on Jan. 20, 2021 to 120 months in federal prison
- Michael “Mike” Diaz, 48
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on June 2, 2021 to 120 months in federal prison
- Rigoberto Cuevas, aka “Rigo,” 43
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 26, 2021 to 188 months in federal prison
- Johnny Ortiz, aka “Johnny O,” 44
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Feb. 4, 2021 to 240 months in federal prison
- Kristina Renee Chaparro, aka “Yebra,” 36
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 28, 2021 to 132 months in federal prison
- Michael Reyes, aka “Rat,” 44
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on May 11, 2021 to 120 months in federal prison
- Juan Arturo Martinez, 44
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Feb. 4, 2021 to 52 months in federal prison
- Steven Mendez, 39
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 28, 2021 to 210 months in federal prison
- Frank “Frankie” Martinez, 39
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Nov. 19, 2021 to 139 months in federal prison
- Katrina Casas, 37,
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 28. 2021 to 40 months in federal prison
- Ricardo Reyes, Jr., aka “Little Ricky,” 35
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 14, 2021 to 124 months in federal prison
- Roxanne Casas, 39
Pleaded guilty to possession with intent to distribute methamphetamine; sentenced on Feb. 4, 2021 to 51 months in federal prison
- Cruz Mendez Nunez, 58
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on June 2, 2021 to 92 months in federal prison
- Christopher Allen Smith, aka “Smitty,” 35
Pleaded guilty to being a felon in possession of a firearm; sentenced on Jan. 26, 2021 to 55 months in federal prison
- Juan Manuel Martinez, aka “Mitos,” 45
Pleaded guilty to possession with intent to distribute methamphetamine; sentenced on Feb. 25, 2021 to 115 months in federal prison
- Melenie Arceo, 24,
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 26, 2021 to 108 months in federal prison
- Luis Alberto “Tito” Gonzalez, 40
Pleaded guilty to being a felon in possession of a firearm; sentenced on Feb. 17, 2021 to 77 months in federal prison
- Priscilla Kay Caballero, 37
Pleaded guilty to unlawful use of a communications facility; sentenced on May 25, 2021 to 48 months in federal prison
- Susan Odette Stinnett, 34
Pleaded guilty to unlawful use of a communications facility; sentenced on Feb. 4, 2021 to 48 months in federal prison
- John David Ramirez, 43
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 12, 2021 to 33 months in federal prison
- Christian Daniel Cordova, 30
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced to on Jan. 28, 2021 to 84 months in federal prison
- Ricardo Chavez, aka “KK,” 42
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 12, 2021 to 188 months in federal prison
- Servian Riojas, aka “Smokey,” 41
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on Jan. 20, 2021 to 151 months in federal prison
- Leonardo “Leo” Ortuno-Palacios, 53
Pleaded guilty to distribution and possession with intent to distribute methamphetamine; sentenced on September 30, 2021 to 240 months in federal prison
"This investigation was a massive undertaking and a true partnership between local, state and federal agencies. We dismantled the entire organization, from out-of-state leadership, to West Texas leaders, suppliers and distributors," said FBI Dallas Special Agent in Charge Matthew J. DeSarno. “The collective sentences imposed on the dozens of defendants will have a lasting impact on the community as we continue to work to keep our communities free from the social, criminal and community health damages caused by methamphetamine.”
The investigation was conducted by the Federal Bureau of Investigation’s Dallas Field Office; the Drug Enforcement Administration’s Dallas Field Division; the U.S. Marshals Service; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division; ICE – Enforcement & Removal Operations; the Castro County Sheriff's Office; the Hereford Police Department; Texas Department of Safety; the Amarillo Police Department; the Dimmitt Police Department; the Randall County Sheriff's Office; the Lubbock Police Department; the Potter County Sheriff's Office; the Lubbock County Sheriff's Office; and the Plainview Police Department. Assistant U.S. Attorney Sean Long is prosecuting the case.
This effort was part of an Organized Crime Drug Enforcement Task Force (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.
- Jesus Garcia, aka “Don Chuy,” 60
33 Members of a Violent Gang Charged with Drug Trafficking and Firearms Violations in Fajardo, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On July 20, 2022, a federal grand jury in the District of Puerto Rico returned an indictment charging 33 violent gang members from the municipality of Fajardo with conspiracy to possess with intent to distribute, possession and distribution of controlled substances, and firearms violations, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. The Federal Bureau of Investigation (FBI) and the Puerto Rico Police Bureau (PRPB)- Fajardo Strike Force- were in charge of the investigation of the case, with the collaboration of Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI).
The indictment alleges that from 2016 to the date of the return of the indictment, the drug trafficking organization distributed heroin, cocaine base (commonly known as “crack”), cocaine, and marihuana within 1,000 feet of the Pedro Rosario Nieves Public Housing Project, and other areas nearby. The object of the conspiracy was to operate a drug-trafficking organization to distribute controlled substances in many areas in the municipality of Fajardo for significant financial profit.
The main leader of the drug trafficking organization, Michael G. Molina-Quiñones, a/k/a Maicol/La M”, led the operations from outside the housing project. He communicated with other members of the organization and gave them instructions and orders on how to handle the operations. Molina-Quiñones also ordered acts of intimidation, force, and violence to maintain control of the operations, intimidate rival gangs, and discipline members of the organization.
As part of the conspiracy, the co-conspirators used apartments in the public housing project and other areas in several municipalities to prepare the drugs for distribution at the drug points.
The defendants acted in different roles in order to further the goals of their organization, to wit: leaders/suppliers, enforcers, runners, sellers, lookouts, and facilitators. Twenty-five defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime. The defendants charged in the indictment are:
Michael G. Molina-Quiñones, a/k/a “Maicol/La M”
Xavier Edgardo González-Rivera, a/k/a “Codito”
Luis Joel Nieves-Ciarez, a/k/a “Popeye”
Aramis Suárez-García, a/k/a “Blanco Perla
Manuel Cruz-Chico, a/k/a “Gongi”
Christian Cardona-Hernández, a/k/a “Pichingay”
Raúl Quiñones-Boria, a/k/a “Bebo Grande”
José Enriquez-Ciarez, a/k/a “Cheo”
Frank Luis Quiñones-Boria, a/k/a “Real G”
Alex Carrasquillo-Rosado, a/k/a “Boca”
Belmarie Nieves-Ciarez
José Pabón-Agosto, a/k/a “El Popo/Popola/Menor/Yeti”
José Esteban Rivera-Tolentino, a/k/a “Kikí”
Héctor Omar Hernández-Tolentino, a/k/a “Omy”
Jeziel Rodríguez-Cabral, a/k/a “Superman”
Anjofer A. Escobar-Aponte, a/k/a “Yoyo”
Carlos Alexis Serrano-Vega, a/k/a “Peluca”
Eliezer De La Paz-Cruz, a/k/a “Pocoyo/El Eliot”
Juan Gabriel Cruz-Torréns, a/k/a “Nurio/Negro”
Edwin Lemuel Marcano-Ferrer, a/k/a “Lele”
Manuel O. Robles-Osorio, a/k/a “Bota”
Juan Ramón Cortijo-Meléndez, a/k/a “Golo”
Alexander Rodríguez-Luna, a/k/a “Ale/Alex”
Iván Javier Ginés-Negrón, a/k/a “Gordo”
Julio L. Torres-Vázquez, a/k/a “Tito”
Marcelino Salcedo-Ayuso
Raymond Cruz-Medina
Héctor A. Laureano-Cruz, a/k/a “Rastrillo”
Alejandro Rivera-Molina, a/k/a “Tempo/Gringo”
Carlos Silva-Meléndez, a/k/a “Pinpin”
Anthony Adonays Centeno-Félix, a/k/a “Troco/Broco”
Kiara Michelle Méndez-Carrasco, a/k/a “La Dura”
Yarlin Torres-Rodríguez, a/k/a “Yailin”
Assistant U.S. Attorney (AUSA) and Chief of the Gang Section Alberto López-Rocafort, Deputy Chief of the Gang Section, AUSA Teresa Zapata-Valladares, AUSAs Corinne Cordero-Romo and Joseph Russell, and Special AUSA R. Vance Eaton are in charge of the prosecution of the case. If convicted on the drug charges, the defendants face a minimum sentence of 10 years, and up to life in prison. If convicted of both the drug and firearms charges, the defendants face a minimum sentence of 15 years, and up to life in prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
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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Tuesday 26 July 2022
Wheeling man sentenced for selling methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Johnnie Lee Harris, of Wheeling, West Virginia, was sentenced today to 12 months and one day of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Harris, also known as “Jay,” 42, pled guilty in October 2020 to one count of “Aiding and Abetting the Distribution of Methamphetamine within 1000 Feet of Protected Location.” Harris admitted to selling methamphetamine near River Towers in Wheeling in September 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Waterloo Man Sentenced to Federal Prison for Armed RobberyRead the Press Release
A Waterloo man who was part of a conspiracy to rob two victims at gunpoint was sentenced July 25, 2022, to more than 12 years in federal prison.
Chavee E’Laun Harden, age 32, from Waterloo, Iowa, received the prison term after a November 18, 2021 jury verdict finding him guilty of one count of conspiracy to interfere with commerce by robbery.
Evidence at trial showed that, on November 4, 2020, Harden, Antione Maxwell (who was sentenced on July 25, 2022, to 30 years in prison), and another individual conspired with each other to rob Harden’s marijuana dealers at gun point of marijuana products and drug-related proceeds. Harden facilitated the armed robbery, and Maxwell and the other individual held guns to the victims’ heads and threatened to kill them. The marijuana products, money, and firearms were later located either inside or outside of Harden’s residence.
Harden was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Harden was sentenced to 151 months’ imprisonment, and he must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Harden is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorneys Patrick Reinert and Dillan Edwards and investigated by the Waterloo Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2013.
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