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Monday 25 July 2022
Justice Department, EPA and State of Colorado Settlement with DCP Operating Company LP Resolves Clean Air Act Violations at Natural Gas Plants in ColoradoRead the Press Release
The Department of Justice, the Environmental Protection Agency (EPA), and the State of Colorado today announced a settlement with DCP Operating Company LP and five other subsidiaries of DCP Midstream LP that will strengthen leak detection and repair practices at eight natural gas processing plants in Weld County, Colorado, located within the Denver Metro/North Front Range Ozone Nonattainment Area.
The settlement was filed today in the U.S. District Court for the District of Colorado along with a complaint that alleges DCP violated leak detection and repair requirements in federal and state clean air laws, resulting in excess emissions of volatile organic compounds (VOC) and other pollutants to the atmosphere. As part of the settlement, DCP will take corrective actions and pay a $3.25 million civil penalty for the alleged violations.
“Leaks from equipment like valves, pumps, and connectors are a significant source of harmful air pollutants,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “Enforcement actions like this are critical to improving air quality, particularly in places facing air quality challenges like Weld County.”
“EPA continues to deliver cleaner air through the rigorous enforcement of the Clean Air Act,” said EPA Regional Administrator KC Becker. “This settlement will reduce emissions of over 288 tons of volatile organic compounds and 1,300 tons of methane from production areas near northern Colorado communities, a majority of which are disproportionately impacted by pollution.”
“The Air Pollution Control Division’s Leak Detection and Repair Program is among the most innovative programs in the nation. Because of our inspectors and enforcement action team, we are able to hold DCP accountable to reducing their emissions from potential leaks,” said Jill Hunsaker Ryan, Executive Director of the Colorado Department of Public Health and the Environment (CDPHE). “The resources obtained from the settlement will help contribute to our Community Impact Fund, a program which supports community-led environmental justice projects.”
“The Colorado Attorney General’s Office is proud to support the Air Pollution Control Division in this important work to protect and improve Colorado’s air quality, particularly in communities disproportionately impacted by air pollution,” said Colorado Attorney General Phil Weiser. “This settlement serves as a model for addressing complex issues through collaboration between our state agencies and federal counterparts like EPA and the Department of Justice.”
Under the settlement, DCP has agreed to strengthen its leak detection and repair practices at the Greeley, Kersey/Mewbourne, Platteville, Roggen, Spindle, O’Connor and Lucerne natural gas processing plants, as well as the to-be-constructed Bighorn natural gas processing plant. These commitments include installing equipment that leaks less pollution to the atmosphere, reviewing compliance with leak detection and repair requirements, and repairing leaking equipment faster. DCP will also improve staff training for leak detection and repair at its facilities. Additionally, DCP has agreed to use optical gas imaging technology to improve the visual detection of leaks and address them quickly.
DCP will also install additional pollution reduction measures at the Kersey/Mewbourne natural gas processing plant that are intended to mitigate the harm caused by its past emissions. Specifically, DCP will install a dry seal recompression system on two turbines at the Kersey/Mewbourne plant. This project will cost an estimated $1.15 million and is expected to reduce VOC emissions by 26 tons per year and methane emissions by 375 tons per year.
The Denver Metro/North Front Range nonattainment area, which includes Weld County, does not meet national air quality standards for ground-level ozone pollution. Equipment leaks at DCP’s plants emit VOCs, which lead to the formation of ground-level ozone. Ozone contributes to serious public health concerns, including respiratory illness, aggravation of existing heart disease and temporary breathing difficulty for people with asthma. Young children and the elderly are especially sensitive to these impacts. Leaks from equipment at DCP’s plants also emit methane, a powerful greenhouse gas.
Working with CDPHE, EPA’s enforcement program is increasing efforts in Colorado to ensure compliance and protect the health of vulnerable populations. Several of the natural gas processing plants covered under this settlement are located in disproportionately impacted communities.
The consent decree is available for public viewing in the attached. The United States will publish a notice of the Consent Decree’s lodging with the U.S. District Court for the District of Colorado in the Federal Register, and will accept public comment for 30 days after the notice is published. The Federal Register notice will also include instructions for submitting public comment.
Justice Department Files Lawsuit and Proposed Consent Decrees to End Long-Running Conspiracy to Suppress Worker Pay at Poultry Processing Plants and Address Deceptive Abuses Against Poultry GrowersRead the Press Release
Decree Provisions Would Stop the Exchange of Compensation Information, Ban President of Data Consulting Firm from Industry, Subject Settling Poultry Processors to 10-Year Antitrust Compliance Monitor; Decree Would also Prohibit Deceptive Conduct Towards Chicken Growers that Lowers Their Compensation
The Department of Justice filed a civil antitrust lawsuit in the U.S. District Court for the District of Maryland against a data consulting firm and its president, as well as three poultry processors, to end a long-running conspiracy to exchange information about wages and benefits for poultry processing plant workers and collaborate with their competitors on compensation decisions in violation of the Sherman Act.
The lawsuit also alleges that two of the poultry processors violated the Packers and Stockyards Act by engaging in deceptive practices associated with the “tournament system,” which pits chicken growers against each other to determine their compensation. At the same time, the department filed proposed consent decrees with Defendants Webber, Meng, Sahl and Company (WMS) and its President, G. Jonathan Meng, as well as Cargill Inc., Cargill Meat Solutions Corporation, Sanderson Farms Inc. and Wayne Farms LLC.
“Through a brazen scheme to exchange wage and benefit information, these poultry processors stifled competition and harmed a generation of plant workers who face demanding and sometimes dangerous conditions to earn a living,” said Principal Deputy Assistant Attorney General Doha Mekki of the Justice Department’s Antitrust Division. “Today’s action puts companies and individuals on notice: the Antitrust Division will use all of its available legal authorities to address anticompetitive conduct that harms consumers, workers, farmers and other American producers.”
“I’m so pleased to see the close partnership between the Department of Agriculture (USDA) and the Justice Department has led to enforcement that is good for farmers,” said Andy Green, USDA’s Senior Advisor for Fair and Competitive Markets. “This resolution yields significant reforms to the poultry tournament system, including ending one of its most troubling aspects around deceptive base prices, and enhancing transparency in contracting, earnings and inputs that will protect and benefit growers — as USDA has proposed in our Packers & Stockyard Act rulemaking.”
If approved by the court, the proposed consent decree with data consulting firm WMS would ban WMS from providing surveys or any other services that facilitate the sharing of competitively sensitive information in any industry. Jonathan Meng, WMS’s President, is also subject to the terms of the consent decree in his individual capacity.
The proposed consent decree with defendant poultry processors Cargill, Sanderson Farms and Wayne Farms would prohibit them from sharing competitively sensitive information about poultry processing plant workers’ compensation. It would also:
- Impose on the poultry processors a court-appointed compliance monitor who, for the next decade, will ensure their compliance with the terms of the proposed decree;
- Grant the court-appointed monitor broad authority to ensure their compliance with all federal antitrust laws as they relate to their poultry processing facilities, workers at their poultry processing plants, chicken growers, integrated poultry feed, hatcheries, transportation of poultry and poultry products, and the sale of poultry and submit regular reports on the processors’ antitrust compliance;
- Permit the Antitrust Division to inspect the processors’ facilities and interview their employees to ensure compliance with the consent decree; and
- Require the companies to commit to pay $84.8 million, collectively, in restitution for poultry processing plant workers who were harmed by the information exchange conspiracy.
These terms would expire 10 years after the consent decree is approved by the court.
Additionally, the proposed consent decree with Sanderson Farms and Wayne Farms would resolve alleged violations of the Packers and Stockyards Act, which prohibits, among other things, deceptive practices in poultry markets. As alleged in the complaint, poultry processors use a “tournament system” to adjust a chicken grower’s “base payment” based on how well the grower performs relative to other growers. The poultry processors, however, control nearly all the key inputs, including the chicks delivered to the growers and their poultry feed, that often determine a grower’s success. In allocating this financial risk to their chicken growers, Sanderson Farms and Wayne Farms failed to provide information that would have allowed their growers to evaluate and manage their financial risk. The proposed consent decree would:
- Prevent Sanderson Farms and Wayne Farms from penalizing chicken growers by reducing their base payments as a result of relative performance, while still allowing for incentive, bonus and other types of payments to growers;
- Require expanded information disclosures in grower contracts, consistent with proposed transparency rules set out by the USDA; and
- Prohibit retaliation against growers who raise antitrust concerns with the court-appointed compliance monitor or the government.
As required by the Tunney Act, the proposed consent decrees, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed consent decrees during a 60-day comment period to Lee F. Berger, Chief, Civil Conduct Task Force, Antitrust Division, Department of Justice, 450 Fifth Street NW, Suite 8600, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Maryland may enter the final judgment upon finding it is in the public interest.
Today’s lawsuit is part of a broader investigation into anticompetitive labor market abuses in the poultry processing industry. Anyone with information about poultry industry collusion, competitors sharing non-public compensation information, anticompetitive conduct violations against workers or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or [email protected]. The division will forward complaints about the settling processor defendants to the court-appointed antitrust monitor where appropriate. Information about anticompetitive practices in livestock and poultry markets can also be submitted to the USDA and Justice Department Agricultural Markets Enforcement Partnership at www.farmerfairness.gov.
The claims resolved by the resolutions announced today are allegations only and there has been no determination of liability.
Jury finds driver guilty of smuggling seven in tractor cabRead the Press Release
LAREDO, Texas – A federal jury in Laredo has convicted a 39-year-old man from Petal, Mississippi, for smuggling seven undocumented aliens in the sleeper cab of his tractor-trailer, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately 15 minutes before convicting Daniel McLaurin following a one-day trial.
On April 22, McLaurin drove his tractor-trailer into a Border Patrol (BP) checkpoint on IH-35 north of Laredo. At inspection, law enforcement asked McLaurin if there were any passengers in his vehicle. At that time, he stated that he had one passenger and that they were both U.S. citizens.
Shortly thereafter, authorities asked McLaurin if he would consent to drive his tractor-trailer through an X-ray scanner, and he agreed. It revealed images in the sleeper cab that appeared to be human bodies. They conducted a search and discovered seven undocumented individuals inside of the tractor cab.
Later, they were determined to be unlawfully present in the country.
U.S. District Judge Marina Garcia Marmolejo presided over trial and will impose sentencing at a later date. At that time, McLaurin faces up to 10 years in prison and a possible $250,000.00 maximum fine.
He was permitted to remain on bond pending that hearing.
U.S. Customs and Border Protection conducted the investigation. Assistant U.S. Attorneys Gerard A. Cantu and Brandon Bowling prosecuted the case.
Jessamine County Man Sentenced to 93 Months for Distribution of Marijuana and Money LaunderingRead the Press Release
LEXINGTON, Ky. — A Nicholasville, Ky., man, Demetrius Burt Catching, 32, was sentenced to 93 months in federal prison on Monday, by Chief U.S. District Judge Danny C. Reeves, after pleading guilty to the distribution of marijuana and money laundering.
According to Catching’s plea agreement, he admitted to distributing marijuana in the Lexington area, and then taking the proceeds from the marijuana sales and placing large sports bets and wagers at various Indiana casinos. According to the plea, Catching was banned from one of the casinos, on January 9, 2021, so he recruited others to go in his place to make his wagers and bets. Cash from the wagers was deposited in bank accounts in Catching’s name. Catching was also ordered to forfeit approximately $215,000 in proceeds from his drug trafficking and money laundering offenses, and ordered to serve an additional, consecutive term of 55 months, for supervised release violations on previous convictions.
Catching pleaded guilty to the new charges in March 2021.
Under federal law, Catching must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for five years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigations; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Todd Justice, Nicholasville Police Department, jointly announced the sentence.
The investigation was conducted by the IRS – Criminal Investigations, DEA, U.S. Probation Office, the Indiana Gaming Commission, and the Nicholasville Police Department. The United States was represented by Assistant U.S. Attorneys Roger West and Andrea Mattingly Williams.
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Jefferson County man facing 50-year prison term sentenced to 10 years for gun crimesRead the Press Release
ST. LOUIS – Today, U.S. District Judge John A. Ross sentenced a man from Jefferson County, Missouri who is already serving a 50-year prison term for the sexual exploitation of a minor to 10 years on gun charges. The 10-year sentence will be consecutive to the present 50-year prison term for a total of 60 years confinement.
On April 11, 2018, Jefferson County Sheriff’s deputies received a tip that Earl G. Rice Jr., who had active arrest warrants and a pending sex charge in St. Clair County, was preparing to flee to avoid arrest. Rice had a .45-caliber pistol in his pocket. After his arrest, deputies found more than 70 other rifles and shotguns, as well as two silencers.
Rice was indicted in U.S. District Court in St. Louis in 2018 on one felony count of being a felon in possession of a firearm and one felony count of possession of firearms without a serial number. A jury convicted Rice, 63, of those charges in March.
Rice was indicted in 2019 in U.S. District Court in the Southern District of Illinois on charges of child enticement, travel with the intent to engage in sex with a minor and producing sexually explicit images of that minor.
On Valentine’s Day in 2018, Rice drove from his home in Dittmer to the victim’s home in Belleville, then took her to a motel where he engaged in sex acts with her and produced
sexually explicit images of her. He was convicted of those charges last year and sentenced to 50 years in prison.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jefferson County Sheriff’s Department. Assistant U.S. Attorney Cassandra Wiemken prosecuted the case.
Guilty Verdict in Eight-year Money Laundering ConspiracyRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that on Monday a federal jury convicted a Bear, Delaware couple on charges of conspiracy to commit money laundering and various other money laundering offenses, in connection with an eight-year scheme to launder drug proceeds. The jury separately found that thirteen real properties were involved in the money laundering offenses and subject to criminal forfeiture. Circuit Judge Stephanos Bibas, sitting by designation, accepted the verdict.
According to court records and evidence presented at trial, between 2009 and 2017, Omar Morales Colon, age 45, and his wife Shakira Martinez, age 44, laundered over a million dollars in drug proceeds through the purchase of real estate properties in Delaware and Pennsylvania using their company, Zemi Property Management. They deposited drug money into several different bank accounts – and asked their friends and family members to do the same – and then used those funds to buy cashier’s checks that funded the property purchases. The government also presented evidence at trial that Colon made improvements to those properties using drug proceeds, including paying cash to have an underground bunker installed beneath his home in Bear, Delaware.
Colon was arrested on May 6, 2017, shortly after giving his cocaine supplier $382,045 in cash in a hotel parking lot in Newark, Delaware. The Drug Enforcement Administration (DEA) subsequently discovered the secret underground bunker beneath Colon’s residence, accessed by a tunnel behind a false fireplace, in which Colon hid a marijuana grow operation.
U.S. Attorney Weiss commented on the case, “The defendant was a sophisticated drug trafficker who conspired with others, including members of the Sinaloa cartel, to bring vast amounts of cocaine into Delaware. He and Ms. Martinez also laundered the proceeds of his drug activity through the U.S. financial system. The DEA’s investigation led to the seizure of 17 kilograms of cocaine, pounds of marijuana, nearly $1 million in cash, and the conviction of a major drug trafficker. My office will continue working with our law enforcement partners to hold accountable those who profit from illegal drug operations by not only prosecuting them, but also endeavoring to deprive them of the fruits of their illegal activities.
“Colon and Martinez underestimated IRS-Criminal Investigation Special Agents’ hallmark expertise,” said IRS-CI Special Agent in Charge Yury Kruty. These defendants thought they could hide the source of their ill-gotten gains, but the overwhelming evidence presented to the jury during trial showed just how wrong they were. This guilty verdict is a reminder that our commitment to unraveling complex financial transactions and money laundering schemes remain unwavering.”
Colon was convicted in September 2021 of related counts – conspiracy to distribute five kilograms or more of cocaine and possession of marijuana with intent to distribute. Colon faces a mandatory minimum of ten years in prison when sentenced, with a maximum of life. Martinez faces a maximum of twenty years in prison. Judge Bibas will determine the defendants’ sentences, after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorneys Jennifer K. Welsh and Meredith C. Ruggles are prosecuting the case. This case was investigated by the DEA Philadelphia Division and the IRS-Criminal Investigation.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:17-cr-00047-LPS.
Four Defendants Sentenced in North Alabama Virtual Education SchemeRead the Press Release
Montgomery, Ala. – This week, four individuals were sentenced to federal prison for their part in a scheme to fraudulently enroll students in Alabama virtual schools, announced the United States Attorney’s Office for the Middle District of Alabama.
Today, the former superintendent of the Athens City Schools district, William L. (“Trey”) Holladay, III, was sentenced to 60 months in prison and ordered to pay $2,865,948.60 in restitution to Alabama State Department of Education (ALSDE). During the same hearing, Gregory (“Greg”) Earl Corkren received a sentence of 22 months’ imprisonment and was ordered to pay $1,303,514.28 in restitution to ALDSE. Finally, David Webb Tutt was also sentenced today to 24 months in prison and ordered to pay a fine of $15,000.00, plus $258,920.04 in restitution to ALDSE.
Earlier this week, Thomas Michael Sisk, formerly the superintendent of the Limestone County School district, was sentenced to 18 months in prison and ordered to pay a fine of $15,000.00 and restitution in the amount of $13,000.00 to ALDSE. Each defendant will be subject to three years of supervised release after serving his sentence. There is no parole in the federal system.
All four defendants had previously pleaded guilty to conspiring to fraudulently enroll students in public virtual schools and then falsely reporting those students to ALDSE. As a result of this conduct, districts received payments from Alabama’s Education Trust Fund as if the students actually attended public schools. The various defendants then received, for their own personal use, portions of the state money. The defendants skimmed the state money through direct cash payments and payments to third-party contractors owned by the various co-conspirators. Corkren also pleaded guilty to aggravated identity theft.
In March of this year, another defendant charged in the scheme, William Richard (“Rick”) Carter, Jr., was found guilty after a four-week trial of conspiracy to commit wire fraud, wire fraud, and aggravated identity theft. Carter’s sentencing hearing is scheduled for August 3, 2022.
Four Charged in Big Island Affordable Housing Corruption SchemeRead the Press Release
HONOLULU – A federal grand jury returned an eight-count indictment against Paul Joseph Sulla, Jr., 76, and Gary Charles Zamber, 53, both attorneys residing on the island of Hawaii (“Big Island”), on July 21, 2022. Both defendants are charged with six counts of honest services wire fraud and one count of conspiracy. Sulla is also charged with one count of money laundering.
In addition, Alan Scott Rudo, 55, a former Housing Specialist for the Hawaii County Office of Housing and Community Development, and Rajesh P. Budhabhatti, 62, a private businessman on the Big Island, were charged in separate informations with conspiracy to commit honest services wire fraud. Rudo pleaded guilty to the charge before United States Magistrate Judge Rom A. Trader on July 18, 2022.
The indictment alleges a conspiracy and a scheme to deprive the public of its right of honest services spanning more than six years. According to court documents and information presented in court, Rudo solicited and accepted multiple bribes and kickbacks from Sulla, Zamber and Budhabhatti in exchange for performing, and agreeing to perform, official acts while working for the Hawaii County Office of Housing and Community Development (OHCD).
According to the indictment and informations, the defendants deceived the public into believing that Rudo was dutifully working on their behalf to provide affordable housing, when in reality he was using his official position to obtain money from Sulla, Zamber and Budhabhatti in the form of bribes and kickbacks. Rudo abused his official position with the OHCD to ensure the County approved three affordable housing agreements (AHAs) involving Luna Loa Developments, LLC, West View Developments, LLC and Plumeria at Waikoloa, LLC. These companies were variously owned, controlled, and used by the defendants to obtain public benefits related to development projects in South Kohala, Kailua-Kona, and Waikoloa. Through the AHAs, the defendants fraudulently obtained at least $10,980,000 worth of land and excess affordable housing credits (AHCs).
Sulla is also charged in the indictment with money laundering. According to the allegations, he laundered the proceeds of the conspiracy and scheme to commit honest services wire fraud in an attempt to conceal, among other things, the source, location, and ownership of those proceeds.
Indictments and informations are merely allegations, and defendants Sulla, Zamber, and Budhabhatti are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. Budhabhatti is scheduled to enter a guilty plea to the information before United State District Judge Jill A. Otake on August 1, 2022. Rudo is set for sentencing before Judge Otake on October 31, 2022.
The crimes of conspiracy and scheme to commit honest services wire fraud each carry a maximum penalty of 20 years imprisonment and a fine of $250,000. Money laundering carries a maximum penalty of 20 years imprisonment and a fine of twice the value of the property involved in the transaction, which in this case is over $1,000,000.
As part of the investigation, the United States has recovered over $2.3 million in criminal proceeds and 45 affordable housing credits connected to the charges. As part of his guilty plea, Rudo agreed to forfeit his interest in those funds and the 45 affordable housing credits, as well as other real estate connected to the charges. Rudo has also agreed to a money judgment against him in the amount of $2,114,170.
This case is the result of an on-going investigation conducted by the Federal Bureau of Investigation. Assistant U.S. Attorneys Mohammad Khatib and Sydney Spector are prosecuting the case.
Fort Wayne Man Sentenced to 120 Months in PrisonRead the Press Release
FORT WAYNE- Bryant D. Aron, age 37, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady following a conviction for being a felon in possession of a firearm and ammunition, announced United States Attorney Clifford D. Johnson.
Aron was sentenced to 120 months in prison followed by 3 years of supervised release.
According to documents in this case, on May 24, 2019, Aron was the driver of a vehicle involved in a high-speed chase with the Fort Wayne Police Department. During the pursuit, Aron crashed his vehicle, then exited it, and led police on a short foot pursuit. At the time of his apprehension, a loaded magazine was found in his pocket. A loaded firearm was also found inside the vehicle. Aron’s prior criminal history revealed that he had multiple felony convictions out of Allen County Superior Court which prohibited his possession of a firearm or ammunition. Aaron was convicted of the illegal possession of the firearm and ammunition at the conclusion of a two-day jury trial.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorney Stacey R. Speith.
This case was being 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.
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Former Nurse Pleads Guilty to Fraudulently Obtaining FentanylRead the Press Release
CHARLOTTESVILLE, Va. – A former registered nurse who worked in the Emergency Department at Sentara Martha Jefferson Hospital (SMJH) in Charlottesville, pled guilty today to obtaining controlled substances, fentanyl, and hydromorphone, by fraud.
Angelica Franklin, 36, of Chesterfield, Virginia, waived her right to be indicted and pled guilty today to one count of acquiring or obtaining controlled substances by misrepresentation by fraud, forgery, or deception.
According to court documents, Franklin was a registered nurse with the Virginia Department of Health Professions Board of Nursing. On August 16, 2021, she began working in the Emergency Department of SMJH in Charlottesville.
Franklin admitted today that in September 2021, she knowingly and intentionally entered fraudulent verbal orders for fentanyl and hydromorphone into the SMJH electronic medical records system on behalf of physicians who did not issue the verbal orders. Franklin then obtained the fentanyl and hydromorphone from the SMJH automated dispensing cabinet but did not administer the controlled substances to patients.
In addition, Franklin admitted to unlawfully obtaining controlled substances fentanyl, hydromorphone, oxycodone, and alprazolam while working as a nurse at three Richmond-area health care facilities: Stony Point Surgery Center, Vibra Hospital, and The Laurels of Willow Creek.
In total, across all facilities, Franklin unlawfully obtained approximately 4,450 mcg of fentanyl, 80 mg of hydromorphone, 3,600 mg of oxycodone, and 14 mg of alprazolam.
Franklin is scheduled to be sentenced on November 10, 2022 and faces a maximum penalty of four years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The announcement was made by U.S. Attorney Christopher R. Kavanaugh, Assistant Attorney General Kenneth A. Polite, Jr. of the Department of Justice’s Criminal Division, Washington Division Special Agent in Charge Jarod A. Forget, Richmond District Office Assistant Special Agent in Charge Christopher C. Goumenis of the Drug Enforcement Administration (DEA), and Metro Washington Field Office Special Agent in Charge George A. Scavdis of the Food and Drug Administration - Office of Criminal Investigations (FDA-OCI).
The DEA, FDA-OCI, Virginia State Police, U.S. Department of Health and Human Services, and the Virginia Department of Health Professionals are investigating the case.
Assistant Chief Alexis Gregorian of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Ronald M. Huber are prosecuting the case. The U.S. Attorney’s Office for the Eastern District of Virginia provided valuable assistance.
Former Member of the National Guard Sentenced for Possessing a Firearm While Engaging in Violent Extremist Online DiscussionsRead the Press Release
NORFOLK, Va. – A former member of the National Guard was sentenced today to 4 years and 9 months in prison for unlawfully possessing several firearms while also using illegal controlled substances.
According to court documents, on June 3, 2020, Francis Harker, 22, of Norfolk, and an associate discussed “interrupting an unjust stop” by trapping law enforcement at a shopping mall in Virginia Beach. Harker obtained a semi-automatic rifle the same day as that discussion, and falsely stated on the required purchase paperwork that he was not an unlawful user of any controlled substances, when in fact, he used illegal drugs, including LSD. The following year, he purchased a handgun and made the same false statement.
In a court authorized search on November 2021, the FBI found firearms and illegal drugs at his residence, as well as approximately 100 blank COVID-19 vaccination cards. Harker, who was a member of the National Guard, took the cards from the National Guard and mailed them to associates across the country. Harker’s electronic devices and social media accounts contained statements espousing violence towards law enforcement, extremism, and white supremacy. Images he possessed include an image emblazoned with the words “Rape the Cops,” an image of himself doing a Hitler salute, and imagery stating, “there is no god but Hitler.” Harker also admitted to interacting online with members of a group called “The Base”, which the defendant described as a “group interested in terrorism.” Also found during the search was a backpack in the trunk of Harker’s car that contained components for several Molotov cocktails.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge John A. Gibney Jr.
Assistant U.S. Attorneys Joe Depadilla and Rebecca Gantt prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-132.
Former Long Beach Police Officer Sentenced to Nearly 6 Years in Federal Prison for Distributing Child Pornography While on DutyRead the Press Release
LOS ANGELES – A former Long Beach Police officer was sentenced today to 70 months in federal prison for distributing sexually explicit images of children, including when he was on duty.
Anthony Brown, 57, formerly of Lakewood and who now resides in Island, Kentucky, was sentenced by United States District Judge Virginia A. Phillips, who also ordered him to pay a fine of $15,000 and to be placed on lifetime supervised release once he is released from prison.
Brown pleaded guilty on March 21 to one count of distribution of child pornography.
From October 2019 through May 2020, Brown used MeWe, an internet-based messaging application, to engage in graphic sex chats with other users in which he posed as his wife and discussed encouraging fictitious minor female relatives to participate in group sex acts. While logged on and while he was on duty as a Long Beach Police Department officer, Brown distributed images of teenage and prepubescent girls engaged in sexually explicit conduct.
Brown was a Long Beach Police officer for 27 years. He left the force in 2021 after his arrest on state charges of possession and distribution of child pornography. The Los Angeles County District Attorney’s Office dismissed those charges in light of the federal case.
Homeland Security Investigations and the Long Beach Police Department investigated this matter.
Assistant United States Attorney Kathrynne N. Seiden of the General Crimes Section prosecuted this case.
Former Gadsden County Deputy Sheriff Sentenced to Federal Prison in Connection with Narcotics Trafficking InvestigationRead the Press Release
TALLAHASSEE, FLORIDA – Former Gadsden County Sheriff’s Office deputy Joseph Barnes, Jr., 54, of Chattahoochee, Florida, was sentenced to 10 months in federal prison after pleading guilty to one count of giving a false statement to a federal officer. The sentenced was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Criminal conduct by those sworn to uphold the law represents the greatest and most harmful betrayal of public trust,” stated U.S. Attorney Coody. “The corrupt acts of an individual law enforcement officer endanger, rather than protect, the public. Moreover, such illegal conduct erodes the public’s trust in the legions of brave men and women who faithfully honor their oaths and place their lives on the line each day to keep our communities safe. We will vigorously investigate and prosecute any officer who betrays both their oath and the public’s trust.
Court documents reflect that during an Organized Crime Drug Enforcement Task Force (OCDETF) investigation, agents determined that then-deputy Barnes was actively aiding an individual involved in the distribution of narcotics in the Gadsden County area. Covert recordings captured Barnes physically examining the drug trafficker’s vehicle to determine if law enforcement had attached a GPS tracking device prior to the vehicle’s use to transport illegal drugs. In a subsequent covert recording, Barnes used his Gadsden County K-9, which was trained to detect the odor of narcotics, to determine if a K-9 would alert to drugs within a hidden compartment of the drug trafficker’s vehicle. Barnes’ K-9 alerted to the presence of the narcotics, but Barnes took no law enforcement action. Instead, Barnes gave the trafficker advice on how to evade law enforcement detection in the future. When questioned later by agents of the Federal Bureau of Investigation, Barnes made multiple false statements regarding his awareness of the drug trafficking activity and his efforts to facilitate the criminal conduct. Upon Barnes’ arrest he was immediately terminated by the Gadsden County Sheriff’s Office.
“Law enforcement officers are given incredible power to enforce the law and ensure justice," said Sherri E. Onks, Special Agent in Charge of FBI Jacksonville. "The FBI and our law enforcement partners will always work together to stop abuse of power to insure the public's continued confidence in law enforcement. Any officer who tarnishes the badge by taking advantage of their position for personal gain must and will be held accountable.”
“Law enforcement officers take an oath to protect their community. When one violates that oath, it betrays the trust of the very people they are sworn to protect,” said DEA Miami Field Division Special Agent in Charge Deanne L. Reuter. “This sentence sends a clear message that DEA will continue to work with our federal, state, and local law enforcement partners to hold those who participate or aid in the distribution of illegal narcotics accountable for their actions.”
The case stemmed from an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a joint federal, state, and local cooperative, which targets drug trafficking organizations. This case was investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. OCDETF Lead Task Force Attorney, Assistant United States Attorney Eric K. Mountin 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 available 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.
Former California Correctional Officer Pleads Guilty to Civil Rights Violations for Assaults on Inmates and Cover up Inside CSP-SacramentoRead the Press Release
SACRAMENTO, Calif. — Arturo Pacheco, 40, of Elk Grove, pleaded guilty today to criminal civil rights violations for the on‑duty assault of two inmates entrusted to his care and to submitting false reports about those incidents in an attempt to cover them up, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Pacheco was a correctional officer at California State Prison, Sacramento (CSP-Sacramento). On September 15, 2016, while escorting an inmate, Pacheco grabbed the legs of the inmate, pulling the legs out from under him. The inmate, whose hands were handcuffed behind his back, fell forward onto the concrete floor, breaking his jaw, several teeth, and suffering other injuries. That inmate was transported to UC Davis Medical Center where he received treatment for his injuries. Approximately two days later, the inmate suffered a pulmonary embolism and died. While the inmate was receiving treatment, Pacheco, a sergeant, and other correctional officers began falsifying reports to cover up the incident.
Following the death of the inmate, investigators uncovered a second incident involving Pacheco. In that incident, on May 19, 2016, Pacheco had, unprovoked, discharged a canister of pepper spray at short range into the eyes of an inmate who was inside of a prison cell. Pacheco falsified his report in that case to make it appear as though his actions were justified in order to save the life of the inmate. In reality, the inmate was fully complying with commands, and any use of force at that time was unlawful.
As outlined in the factual basis to his plea agreement, Pacheco sent text messages to a friend after the May 2016 incident, commenting how “funny” the incident was and “[i]t’s all about how u write ur report”, “plus ur partners have ur back.” As Pacheco said, “[b]lood, broken glass, n just u n ur partners. … Green light!”
“Pacheco deprived inmates of their civil rights, abusing his position of authority as a correctional officer to harm them,” said U.S. Attorney Talbert. “While Pacheco thought a ‘green wall’ or code of silence would protect him, he was wrong. His crimes have come to light and today he has admitted to his assaults and cover up. Those who violate the public’s trust by harming inmates ‘under the color of law’ or by covering up wrongdoing must and will be held accountable.”
“The FBI is deeply committed to protecting the rights of all Americans, and those rights do not stop behind the walls of our prisons,” said Acting Special Agent in Charge Dennis Guertin. “Today’s guilty plea is the result of an intensive investigation conducted by the FBI and our partners at the California Department of Corrections and Rehabilitation and the United States Attorney’s Office. Corruption and civil rights violations within our prisons are some of the most difficult to detect and investigate, and we encourage anyone who has knowledge of similar crimes to reach out to any FBI field office or submit information to tips.fbi.gov.”
This case is the product of an investigation by the Federal Bureau of Investigation with the cooperation of the California Department of Corrections and Rehabilitation, Office of Internal Affairs. Assistant U.S. Attorneys Michael D. Anderson and Rosanne L. Rust are prosecuting the case.
Pacheco remains out of custody pending sentencing. Fellow former California State Prison, Sacramento correctional officer, Ashley M. Aurich, charged separately, is pending sentencing as well.
Pacheco is scheduled to be sentenced by U.S. District Judge William B. Shubb on October 17, 2022. Pacheco faces a maximum statutory penalty of 20 years in prison on each of the false reporting counts and 10 years in prison on each of the assault counts and a $250,000 fine per count. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Court Bars Grand Rapids Physician from Prescribing Controlled Substances and Orders Civil Judgment over Forged Opioid PrescriptionsRead the Press Release
GRAND RAPIDS – David D. Sova, D.O., of Grand Rapids entered into a settlement with the United States in which he agreed to a court order to never prescribe controlled substances. According to the terms of the consent decree entered by U.S. District Court Judge Jane M. Beckering, Dr. Sova is also ordered to pay $170,000 in civil penalties to resolve the United States’ allegations that he forged opioid prescriptions for his own use.
In its civil complaint, the United States alleges that Dr. Sova issued prescriptions for controlled substances without a legitimate medical purpose and outside the usual course of professional practice in violation of the Controlled Substances Act. Specifically, the United States alleges that Dr. Sova issued prescriptions for the opioids oxycodone and hydrocodone purportedly written for one of his patients. However, this patient never received these prescriptions, as Dr. Sova arranged for them to be filled and collected for his own personal use.
“Responsibility to protect against diversion of controlled substances starts with the provider,” said U.S. Attorney Mark A. Totten. “When a physician breaks the rules and diverts controlled substances for their own use, they cannot be entrusted to prescribe controlled substances to others and must face the legal consequences of their own misconduct. My office will continue to work with DEA and state law enforcement to enforce compliance with controlled substance prescribing laws.”
“Medical and dental professionals must not abuse the privilege of prescribing controlled substances,” said Drug Enforcement Administration Special Agent in Charge Orville Greene, Detroit Field Division. “DEA will continue to work with all levels of law enforcement to investigate allegations of unlawful prescribing.”
This case was investigated by DEA and the U.S. Attorney’s Office for the Western District of Michigan. Assistant U.S. Attorney Andrew J. Hull represented the United States.
The complaint and consent decree in this case can be found on the Court’s online docket under United States v. Sova, No. 1:22-cv-658 (W.D. Mich.).
The claims resolved by the consent decree are allegations only and there has been no determination of liability.
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Erie Man Sentenced for Selling HeroinRead the Press Release
Erie, Pa - A resident of Erie, Pennsylvania, has been sentenced in federal court to 18 months in jail on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Alberto Arroyo-Amaro, 24.
According to information presented to the court, Arroyo-Amaro was involved in a sale of 41.91 grams of heroin on or about August 22, 2018.
Prior to imposing sentence, Judge Baxter stated, “The scourge of heroin in our community has led to many broken hearts and broken families.”
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pennsylvania State Police, Homeland Security Investigations and the United States Postal Inspection Service for the investigation leading to the successful prosecution of Arroyo-Amaro.
Dulce man indicted for assault, kidnapping in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico announced today that Shondo DeJesus was arraigned on a two-count indictment charging him with assault resulting in serious bodily injury and kidnapping in Indian Country. DeJesus, 35, of Dulce, New Mexico, will remain in custody pending trial, which has not been scheduled.
A federal grand jury indicted DeJesus on July 14. On March 5, DeJesus allegedly assaulted a victim, identified in the indictment as Jane Doe, at his home in Ducle. Afterward, DeJesus allegedly kept Jane Doe in the home against her will until March 7. DeJesus allegedly committed the crimes on the Jicarilla Apache Reservation. Both DeJesus and Jane Doe are enrolled members of the Jicarilla Apache Tribe.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, DeJesus faces up to 10 years in prison for assault resulting in serious bodily injury and up to life in prison for kidnapping.
The Jicarilla Police Department investigated this case. Assistant United States Attorney Brittany DuChaussee is prosecuting the case.
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District of Columbia Man Sentenced to 14 Years in Prison for Killing Man in Northeast WashingtonRead the Press Release
WASHINGTON – Gregory Washington, 32, of Washington, D.C., was sentenced today to a 14-year prison term for confronting and killing a man at his ex-wife’s apartment in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Washington pleaded guilty in April 2022, in the Superior Court of the District of Columbia, to voluntary manslaughter while armed. The plea, which was contingent upon the Court’s approval, called for a 14-year prison term, consistent with the Court’s voluntary sentencing guidelines. The Honorable Rainey R. Brandt accepted the plea and sentenced him accordingly. Following his prison term, he will be placed on five years of supervised release.
According to the government’s evidence, Washington and his ex-wife had divorced in 2019 after less than a year of marriage. His communications with her made clear that he wanted to reunite, but she rejected that plan. On Oct. 24, 2019, Washington drove to his ex-wife’s apartment in the 900 block of 21st Street NE. He crept into the apartment about 5:10 a.m., and confronted the victim, Alie Labay, who was there with Washington’s ex-wife. The two men tussled, and Washington shot Mr. Labay three times. Mr. Labay, 32, who was unarmed, suffered gunshot wounds to the chest, back and arm. He died a short time later.
Washington fled the apartment after the shooting. He was arrested on Nov. 26, 2019. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Victim/Witness Advocate Amy Trotto and former Victim/Witness Advocate Marcia Rinker. Finally, they acknowledged the efforts of Assistant U.S. Attorneys Sitara Witanachchi and Prava Palacharla, who investigated and prosecuted the matter.
Declo Man Sentenced to 135 Months in Prison for Methamphetamine DistributionRead the Press Release
POCATELLO – Melvin Misael Alcaraz-Valdez, of Declo, Idaho, was sentenced to federal prison for possession with the intent to distribute methamphetamine, announced U.S. Attorney Josh Hurwit, today. Chief U.S. District Judge David C. Nye sentenced Alcaraz-Valdez to 135 months. Alcaraz-Valdez, upon completion of his time, was ordered to serve an additional five years of supervised release.
According to court records, in March 2020 through March of 2021, law enforcement investigated multiple individuals for distributing methamphetamine in the Minidoka and Cassia County area. Through the use of surveillance, undercover officers, controlled purchases, and search warrants, law enforcement found that Alcaraz-Valdez was actively engaged in the distribution of methamphetamine and was in possession of large quantities of methamphetamine. During the investigation law enforcement recovered more than four (4) pounds of methamphetamine.
U.S. Attorney Hurwit credited the cooperative efforts of the Drug Enforcement Administration, Idaho State Police, Cassia County Sheriff’s Office, Minidoka County Sheriff’s Office, Nampa Police Department, and Ada County Sheriff’s Department, which led to the charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Charleroi Man Pleads Guilty to Receiving Child Sexual Abuse MaterialsRead the Press Release
PITTSBURGH - A resident of Charleroi, Pennsylvania, pleaded guilty in federal court on July 21, 2022, to charges of receipt and attempted receipt of material depicting the sexual exploitation of a minor United States Attorney Cindy K. Chung announced today.
Joey Leroy Barton, 51, pleaded guilty to two counts before United States District Judge William S. Stickman, IV.
In connection with the guilty plea, the court was advised that on March 28, 2019 and April 11, 2019, Barton received and attempted to receive digital images depicting the sexual exploitation of a minor while engaged in an online conversation with a minor over Facebook messenger.
Judge Stickman scheduled sentencing for July 21, 2022 at 10:30 a.m. The law provides for a total sentence of not more than 80 years in prison, a fine of $80,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the defendant remains detained.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Department of Homeland Security-Homeland Security Investigations, the Roseville (Minnesota) Police Department, and the North Strabane Police Department conducted the investigation that led to the prosecution of Barton.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
CEO of Titanium Blockchain Pleads Guilty in $21 Million Cryptocurrency Fraud SchemeRead the Press Release
The CEO of Titanium Blockchain Infrastructure Services Inc. (TBIS) pleaded guilty Friday in the Central District of California for his role in a cryptocurrency fraud scheme involving TBIS’s initial coin offering (ICO) that raised approximately $21 million from investors in the United States and overseas.
According to court documents, Michael Alan Stollery, 54, of Reseda, California, was the CEO and founder of TBIS, a purported cryptocurrency investment platform, and touted TBIS as a cryptocurrency investment opportunity, luring investors to purchase “BARs,” the cryptocurrency token or coin offered by TBIS’s ICO, through a series of false and misleading statements. Although he was required to do so, Stollery did not register the ICO regarding TBIS’s cryptocurrency investment offering with the U.S. Securities and Exchange Commission (SEC), nor did he have a valid exemption from the SEC’s registration requirements.
Stollery admitted that, to entice investors, he falsified aspects of TBIS’s white papers, which purportedly offered investors and prospective investors an explanation of the cryptocurrency investment offering, including the purpose and technology behind the offering, how the offering was different from other cryptocurrency opportunities, and the prospects for the offering’s profitability. Stollery also planted fake client testimonials on TBIS’s website and falsely claimed that he had business relationships with the Federal Reserve and dozens of prominent companies to create the false appearance of legitimacy. Stollery further admitted that he did not use the invested money as promised but instead commingled the ICO investors’ funds with his personal funds, using at least a portion of the offering proceeds for expenses unrelated to TBIS, such as credit card payments and the payment of bills for Stollery’s Hawaii condominium.
Stollery pleaded guilty to one count of securities fraud. He is scheduled to be sentenced on November 18 and faces up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; and Acting Special Agent in Charge Cory Nootnagel of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Western Region, made the announcement.
The FBI’s Los Angeles Field Office and the Federal Reserve Board’s Federal Reserve Board’s OIG Western Region San Francisco Office are investigating the case.
Fraud Section Trial Attorneys Kevin Lowell, Tian Huang, and Andrew Tyler are prosecuting the case.
California Woman Charged with Smuggling Marijuana Through Cyril E. King AirportRead the Press Release
St. Thomas, USVI – United States Attorney Delia L. Smith announced today that Joeva Elizabeth Williams of Sacramento, CA, appeared before Magistrate Judge Ruth Miller on July 25, 2022, following her arrest on Saturday, July 23, 2022, for possession with intent to distribute marijuana. She was ordered released upon the posting of a $10,000.00 unsecured bond.
According to court documents, on July 22, 2022, Williams arrived at the Cyril E. King airport on an inbound flight from that originated in Houston, TX. While conducting an inbound inspection of United Airlines flight #1908 , a Customs and Border Protection (CBP) canine alerted to the presence of narcotics in two suitcases. Williams later retrieved both suitcases from the luggage carousel and was later escorted by CBP officers to a secondary inspection. After conducting a search of Williams’ suitcases in secondary inspection, CBP officers discovered thirty-seven (37) vacuum-sealed packages containing a green, leafy substance which field-tested positive for marijuana. The total weight of the packages was approximately 20.44 kilograms.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by Homeland Security Investigations (HSI). United States Attorney Smith reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Brockton Man Charged with Fraudulently Obtaining over $1.5 Million in COVID-Relief FundsRead the Press Release
BOSTON – A Brockton man was charged on July 21, 2022 in connection with a scheme to submit false applications to obtain Paycheck Protection Program (PPP) and Economic Injury Disaster Loan Program (EIDL) funds through the Small Business Administration (SBA) which were made available under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Joao Mendes, 59, was charged and has agreed to plead guilty to one count of wire fraud. A plea hearing has not yet been scheduled by the Court.
According to the charging documents, beginning in or around June 2020 and continuing until at least in or around September 2020, Mendes submitted or caused to be submitted multiple fraudulent PPP and EIDL loan applications on behalf of various entities. The fraudulent PPP loan applications misrepresented the number of employees and the average monthly payroll expenses of Mendes’s various businesses. Mendes also allegedly submitted false tax records in support of his loan applications. In his EIDL applications, Mendes allegedly misrepresented the number of employees, gross revenues and costs of goods sold for each business. Based on the fraudulent applications, Mendes and others received over $1.5 million in PPP and EIDL funds. Once Mendes received the funds, he either spent them for his own personal benefit—including for the purchase of cryptocurrency—or transferred the funds into other accounts he controlled or to other individuals.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP. Another is the EIDL, through which the SBA offers loans that can only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred. The American Rescue Plan Act established the RRF to provide funding to help restaurants and other eligible businesses keep their doors open through forgivable loans for eligible uses.
The charge of wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. The charge of making a false statements to a financial institution provides for a sentence of up to 30 years in prison, up to three years of supervised release and a fine of up to $250,000 or twice the gross gain or loss from the offense. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Robert Manchak, Special Agent in Charge of the Federal Housing Finance Agency Office of Inspector General, Northeast Region; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; Amir Ehsaei, Acting Assistant Director in Charge for the FBI’s Los Angeles Field Office; Weston King, Special Agent in Charge of the Small Business Administration Office of Inspector General, Western Region; Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Regional Office; Ryan Korner, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, Los Angeles Field Office; William A. Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration, Northeast Field Division; and Stephen Donnelly, Acting Special Agent in Charge of the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region, made the announcement today. Assistant U.S. Attorneys Mackenzie A. Queenin and Carol E. Head of Rollins’ Criminal Division and Trial Attorney Jennifer Bilinkas of the Criminal Division’s Fraud Section are prosecuting the case. Attorney Advisor Scott J. Campbell and Trial Attorney Olivia Zhu of the Criminal Division’s Money Laundering and Asset Recovery Section provided significant assistance.
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.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Boston Man Sentenced to Two Years in Prison for Possessing over 200 Counterfeit Fentanyl PillsRead the Press Release
BOSTON – A Boston man was sentenced on July 21, 2022 for possessing hundreds of pressed fentanyl pills disguised as oxycodone intended for distribution.
Diamondez Pierre, 24, was sentenced by U.S. District Court Judge Leo T. Sorokin to two years in prison and three years of supervised release. On March 25, 2021, Pierre pleaded guilty to possession of fentanyl with intent to distribute.
“The impact of the opioid crisis in our communities has been catastrophic. It is taking more and more lives by the minute. Mr. Pierre contributed to and, moreover, profited off this devastation, pain and suffering by trafficking fentanyl disguised as pharmaceutical grade prescription pills,” said United States Attorney Rachael S. Rollins. “To say fentanyl is dangerous would be a gross understatement – it is deadly. Getting fentanyl traffickers who seek to exploit addiction for a profit off of our streets is critical and mandatory in addressing the opioid epidemic. My office and our law enforcement partners will continue putting drug traffickers out of business. We must protect the health and safety of our Commonwealth.”
“We are currently facing a crisis with the amount of illicit drugs flowing into our neighborhoods, today’s sentencing demonstrates that if you peddle this poison, you will be held accountable,” said James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives. “ATF will continue to work with our law enforcement partners to target individuals who deal this dangerous drug and ensure that they are brought to justice.”
On Aug. 8, 2020, law enforcement stopped Pierre in his vehicle in Brockton. A search of Pierre’s vehicle resulted in the recovery of a backpack that contained 204 blue pressed fentanyl pills, disguised as “Perc 30” oxycodone pills, intended for distribution.
U.S. Attorney Rollins, ATF SAC Ferguson and Brockton Police Chief Brenda Perez made the announcement today. Assistant U.S. Attorney John T. Dawley Jr. of Rollins’ Organized Crime & Gang Unit is prosecuted the case.
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.
Bakersfield Resident Sentenced to over 13 Years in Prison for Trafficking MethamphetamineRead the Press Release
FRESNO, Calif. — David Delgado Gonzalez, 38, of Bakersfield, was sentenced today to 13 years and nine months in prison for conspiring to distribute and possess with intent to distribute methamphetamine and fentanyl, U.S. Attorney Phillip A. Talbert announced.
In addition, Gonzalez was ordered to forfeit three firearms and associated ammunition that were in his possession when he was arrested.
According to court documents, between September 2020 and March 2021, Gonzalez (also known as “Spider”) conspired with, among others, co-defendant Omar Alberto Navarro to acquire methamphetamine in Mexico, transport it to the Eastern District of California, unload the narcotics from “load cars,” store the narcotics, and sell and distribute the narcotics to others. For instance, on Oct. 29, 2020, at the behest of Navarro, Gonzalez transported approximately 6 pounds of methamphetamine to a meeting in Bakersfield and sold the methamphetamine to Scott Gordon James, who is charged in a related case, for $6,200. On March 26, 2021, Gonzalez possessed in a storage unit in Bakersfield approximately four pounds of methamphetamine, which he possessed with the intent to distribute to others.
In 2009, Gonzalez was convicted and sentenced in U.S. District Court – Southern District of Ohio, for conspiring to distribute and possess with intent to distribute more than 1 kilogram of heroin.
On April 8, 2021, Gonzalez and eight other defendants were charged in three related indictments for trafficking and purchasing to sell methamphetamine from a conspiracy orchestrated by Navarro, 38, of Arvin. The other charged defendants are: Daniel Armendariz Mercado, 42; Miguel Angel Martinez, 27; Amayrani Jared Arreguin, 25; and Yvette Gallegos, 23, all of Bakersfield; Lizette Mendez, 32, of Delano; and James Scott Gordon, 47, of Chico. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt. Co-defendant Randal Jason Newell was sentenced on March 29, 2022, to three years and three months in prison for attempting to smuggle approximately 111 pounds of methamphetamine from Mexico to Bakersfield.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the U.S. Marshals Service, the U.S. Postal Inspection Service, Customs and Border Protection, the Bureau of Alcohol, Firearms, Tobacco and Explosives, the Federal Bureau of Investigation, the U.S. Secret Service, the Bakersfield Police Department, the Kern County Sheriff’s Office, the Shafter Police Department, the Kern County Probation Department, the California Department of Corrections and Rehabilitation, the California Department of Motor Vehicles, and the California Highway Patrol. Assistant U.S. Attorneys Christopher D. Baker and Laura J. Berger are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Armed Career Criminal Sentenced to 15 Years in Federal Prison for Illegal Possession of FirearmRead the Press Release
EVANSVILLE – Michael Dewayne Charles, 33, of Evansville, was sentenced to 15 years in federal prison after pleading guilty to being a felon in possession of a firearm.
According to court documents, on September 26, 2021, a deputy with the Vanderburgh County Sheriff’s Office responded to the area of the Corner Pocket Bar in Evansville after a report that a suspect brandished a firearm in the parking lot. Upon arrival, the deputy observed Charles push another male against an SUV while brandishing a Kimbro 9mm handgun. Charles then fled from the deputy before being apprehended. Charles was interviewed by police and admitted he brandished the pistol while arguing with his cousin. The pistol was later found to have an obliterated serial number.
Charles is prohibited from lawfully possessing firearms due to multiple prior felony convictions in Vanderburgh County, including sexual battery, burglary, and domestic battery. Because of his prior convictions, Charles is an Armed Career Criminal under federal law and subject to enhanced penalties for illegally possessing a firearm.
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); and Vanderburgh County Sheriff Dave Wedding made the announcement.
ATF and Vanderburgh County Sheriff’s Office investigated the case. The Vanderburgh County Prosecutor’s Office also provided valuable assistance. The sentence was imposed by U.S. District Judge Richard L. Young following the defendant’s guilty plea. As part of the sentence, Judge Young ordered that the defendant be supervised by the U.S. Probation Office for four years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Kristian R. Mukoski who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and 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.
Albany Felon Sentenced to 162 Months in PrisonRead the Press Release
ALBANY, NEW YORK – Tyler Purvis-Mitchell, age 28, of Albany, was sentenced today to 150 months in prison for possessing and intending to distribute methamphetamine-laced pills in the city of Albany.
Purvis-Mitchell, who was on federal supervised release at the time of his offense, was sentenced to an additional 12 months in prison, to be served consecutively, for violations of his release conditions, including for his reckless flight from members of the Albany Police Department (APD).
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and APD Chief Eric Hawkins.
Purvis-Mitchell was convicted after a jury trial in December 2021. The evidence at trial established that on May 7, 2020, Purvis-Mitchell possessed with the intent to distribute more than 125 pills containing methamphetamine and weighing over 50 grams, in his residence and his vehicle. The jury voted to acquit Purvis-Mitchell of two felony charges for possession of a firearm as a felon and possession of a firearm in furtherance of a drug trafficking crime.
United States District Judge Mae A. D’Agostino also ordered that Purvis-Mitchell serve a 4-year term of supervised release following his release from prison.
This case was investigated by APD and ATF with assistance provided by the New York State Police. It was prosecuted by Assistant United States Attorneys Emmet J. O’Hanlon and Alexander Wentworth-Ping.
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.
Sunday 24 July 2022
Statement from U.S. Attorney Rachael S. Rollins on White Supremacist Activity in MassachusettsRead the Press Release
“Every single person deserves to live their life fully and authentically as who they are. But, if your authentic self is a bigot that wants to harm, humiliate and terrorize people, you are not welcome here. There is no hierarchy as to who is entitled to a full and authentic life. We all are. In Boston, Massachusetts we have a long history of standing up to hate and injustice. We don’t hide behind masks. When we see inequity and harm, we look the culprit in their eyes and demand that it stops. If it doesn’t, we use every means at our disposal - legislatively, through the courts, and with community organizing - to end it. And that is exactly what is going to happen here. If the public has any troubling or concerning information about members of white supremacist groups, we ask that you notify your local police departments or a member of law enforcement. I will be announcing a dedicated number for the community to call in the coming weeks. We need to expose these cowards. As was shown by the swift response of Mayor Wu and the Boston Police Department this weekend, there is a zero tolerance policy for white supremacists or any potential racially motivated violent extremist in Massachusetts. As the Chief Federal law enforcement officer, I stand ready to deploy federal time and resources to assist our State, Local and Tribal partners in effectuating any arrests and prosecutions.”
Saturday 23 July 2022
Fairport Man Arrested, Charged with Attacking A Congressman Using A Dangerous WeaponRead 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 David G. Jakubonis, 43, of Fairport, NY, was arrested and charged by criminal complaint with assaulting a member of Congress using a dangerous weapon. The charge carries a maximum penalty of 10 years in prison.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that on July 21, 2022, New York Congressman Lee Zeldin, a Republican candidate for Governor of New York, attended a gubernatorial campaign event in Perinton, NY. During the event, Congressman Zeldin was speaking from the bed of a flatbed trailer. Jakubonis walked onto the trailer, approached the Congressman, extended a keychain with two sharp points toward him and grabbed his arm. A struggle then ensued between Congressman Zeldin and Jakubonis and, as bystanders intervened, Jakubonis pulled Congressman Zeldin down onto the bed of the trailer, stating several times during the assault, “you're done.” Jakubonis was subdued and arrested.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Marion W. Payson and is being held pending a detention hearing on July 27, 2022, at 10:30 a.m.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the U.S. Capitol Police, under the direction of Assistant Special Agent-in-Charge Chad Beckett, the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter, the New York State Police, under the direction of Major Brian J. Ratajczak, the Rochester Police Department, under the direction of Chief David Smith and the Brighton Police Department, under the direction of Chief David Catholdi.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Friday 22 July 2022
司法部對德克薩斯州休斯頓市展開環境正義調查Read the Press Release
Download Traditional Chinese Press Release Translation
華盛頓——司法部 (Department of Justice, DOJ) 今天宣佈已開始對休斯頓市有關非法傾倒 的運營、政策和做法展開一次環境正義調查。 這項調查將由 Civil Rights Division（民權 司）帶頭審查該市在響應市政服務要求時（包括在響應非法傾倒時）是否違反了聯邦民權 法律，對休斯頓的黑人和拉丁裔居民進行了歧視。
「非法垃圾場不僅吸引齧齒動物、蚊蟲和其他害蟲，造成健康風險，還可能污染地表水， 影響正常排水，使該地區更易發生洪災，」司法部 Civil Rights Division 助理檢察長克裡 斯汀·克拉克 (Kristen Clarke) 表示。「在美國，不應有人因無效的固體廢物管理或不完善 的執法計畫而面臨生病和遭到其他嚴重傷害的風險。我們將對這些環境正義問題及其對休 斯頓市的黑人和拉丁裔社區的影響展開公平和徹底的調查。」
「非法垃圾場會引起人們對公共健康和安全、物業價值和生活品質的重大擔憂，」德克薩 斯州南部地區的美國檢察官珍妮佛 B. 勞維裡 (Jennifer B. Lowery) 表示。「我們期待著與 Civil Rights Division 展開合作，確保休斯頓市履行其聯邦民權義務。」
本次調查將審查該市針對非法傾倒的執法和固體廢物管理的運營、政策和做法是否導致對 黑人和拉丁裔居民的歧視，進而違反了 1964 年《民權法案》第 VI 章 (Title VI of the Civil Rights Act of 1964, Title VI)。Title VI 禁止聯邦財政援助的接受者基於種族、膚色或原籍 進行歧視。
Civil Rights Division 的聯邦協調與合規科 (Federal Coordination and Compliance Section) 正 在德克薩斯州南部地區美國檢察官辦公室的支援下進行這項調查。在宣佈之前，司法部已 向休斯頓市的市長辦公室和法律部門通報了調查啟動的情況。
透過執行國家民權法律來應對歧視性的環境和健康影響是司法部的一項首要任務。2022 年 5 月，司法部長梅裡克·加蘭德 (Merrick Garland) 宣佈設立有史以來第一個環境正義辦 公室 (Office of Environmental Justice)。 他還宣佈發佈了司法部的綜合環境正義執法戰略 (Comprehensive Environmental Justice Enforcement Strategy)，這為使用司法部的民事和刑 事執法權力和工具（包括民權權力）以實現環境正義提供了一套路線圖。2022 年 7 月， 司法部還發佈了 2022-26 年戰略規劃 (2022-26 Strategic Plan)，將保護民權和推進環境正義 確立為一個焦點領域。2021 年 11 月， Civil Rights Division 宣佈了其對 DOJ 接受者， 即：阿拉巴馬州公共衛生局 (Alabama Department of Public Health) 和朗茲縣衛生局 (Lowndes County Health Department)，進行首次 Title VI 環境正義調查。
「司法部最近設立的 Office of Environmental Justice 和綜合環境正義執法戰略確認了我們 對追求法律之下的平等正義所做出的堅定承諾，」司法部環境與自然資源司 (Environment and Natural Resources Division) 助理檢察長陶德·金 (Todd Kim) 表示。 「這項調查體現了 司法部對緩和有色人種社區、低收入社區和部落社區經常承受的不成比例的環境負擔所做 的承諾。」
我們鼓勵有相關資訊的個人透過電子郵件 [email protected] 或致電 1-888-TITLE06 (1-888-848-5306) 的形式與 Federal Coordination and Compliance Section 取得聯繫。 如 需有關 Civil Rights Division 的其他資訊，請查看其網站 www.justice.gov/crt。如需有關 Environment and Natural Resources Division 的其他資訊，請查看其網站 www.justice.gov/enrd。請在此處查看本新聞稿的西班牙語版。
司法部对德克萨斯州休斯顿市展开环境正义调查Read the Press Release
Download Simplified Chinese Press Release Translation
华盛顿——司法部 (Department of Justice, DOJ) 今天宣布已开始对休斯顿市有关非法倾倒 的运营、政策和做法展开一次环境正义调查。这项调查将由 Civil Rights Division（民权 司）带头审查该市在响应市政服务要求时（包括在响应非法倾倒时）是否违反了联邦民权 法律，对休斯顿的黑人和拉丁裔居民进行了歧视。
“非法垃圾场不仅吸引啮齿动物、蚊虫和其他害虫，造成健康风险，还可能污染地表水， 影响正常排水，使该地区更易发生洪灾，”司法部 Civil Rights Division 助理检察长克里 斯汀·克拉克 (Kristen Clarke) 表示。“在美国，不应有人因无效的固体废物管理或不完 善的执法计划而面临生病和遭到其他严重伤害的风险。我们将对这些环境正义问题及其对 休斯顿市的黑人和拉丁裔社区的影响展开公平和彻底的调查。”
“非法垃圾场会引起人们对公共健康和安全、物业价值和生活质量的重大担忧，”德克萨 斯州南部地区的美国检察官珍妮弗 B. 劳维里 (Jennifer B. Lowery) 表示。“我们期待着与 Civil Rights Division 展开合作，确保休斯顿市履行其联邦民权义务。”
本次调查将审查该市针对非法倾倒的执法和固体废物管理的运营、政策和做法是否导致对 黑人和拉丁裔居民的歧视，进而违反了 1964 年《民权法案》第 VI 章 (Title VI of the Civil Rights Act of 1964, Title VI)。Title VI 禁止联邦财政援助的接受者基于种族、肤色或原籍 进行歧视。
Civil Rights Division 的联邦协调与合规科 (Federal Coordination and Compliance Section) 正 在德克萨斯州南部地区美国检察官办公室的支持下进行这项调查。在宣布之前，司法部已 向休斯顿市的市长办公室和法律部门通报了调查启动的情况。
通过执行国家民权法律来应对歧视性的环境和健康影响是司法部的一项首要任务。2022 年 5 月，司法部长梅里克·加兰德 (Merrick Garland) 宣布设立有史以来第一个环境正义办 公室 (Office of Environmental Justice)。 他还宣布发布了司法部的综合环境正义执法战略 (Comprehensive Environmental Justice Enforcement Strategy)，这为使用司法部的民事和刑 事执法权力和工具（包括民权权力）以实现环境正义提供了一套路线图。2022 年 7 月， 司法部还发布了 2022-26 年战略规划 (2022-26 Strategic Plan)，将保护民权和推进环境正义 确立为一个焦点领域。2021 年 11 月， Civil Rights Division 宣布了其对 DOJ 接受者， 即：阿拉巴马州公共卫生局 (Alabama Department of Public Health) 和朗兹县卫生局 (Lowndes County Health Department)，进行首次 Title VI 环境正义调查。
“司法部最近设立的 Office of Environmental Justice 和综合环境正义执法战略确认了我们 对追求法律之下的平
等正义所做出的坚定承诺，”司法部环境与自然资源司 (Environment and Natural Resources Division) 助理检察长托德·金 (Todd Kim) 表示。 “这项调查体现 了司法部对缓和有色人种社区、低收入社区和部落社区经常承受的不成比例的环境负担所 做的承诺。”
我们鼓励有相关信息的个人通过电子邮件 [email protected] 或致电 1-888-TITLE06 (1-888-848-5306) 的形式与 Federal Coordination and Compliance Section 取得联系。 如 需有关 Civil Rights Division 的其他信息，请查看其网站 www.justice.gov/crt。如需有关 Environment and Natural Resources Division 的其他信息，请查看其网站 www.justice.gov/enrd。请在此处查看本新闻稿的西班牙语版。
“Felony Lane Gang” Member Who Defrauded Illinois Bank Using Stolen Identity Sentenced to 42 Months in PrisonRead the Press Release
East St. Louis, Ill. – Delvin O.E. Mills, 29, of North Lauderdale, Florida, was sentenced to 42
months in prison on Wednesday, July 20, 2022, in connection with his involvement in a bank fraud
scheme which targeted female victims in Southern Illinois. Mills was also ordered to pay
restitution, a $2,000 fine, and serve five years on supervised release upon his release from
prison.
In July 2021, Mills conspired with others to cash stolen checks and fraudulently obtain funds from
financial institutions using stolen driver licenses belonging to individuals living in Southern
Illinois. The group targeted banks located in Glen Carbon and Wood River.Mills admitted members of the conspiracy broke into vehicles parked in public places throughout
Southern Illinois to steal valuables left in those vehicles. Items included purses and wallets
containing ID’s and checkbooks. Members of the organization wrote checks from the stolen checkbooks
made payable to other persons from whom the group had stolen identities.Mills and his co-defendant, Mary Thornhill, attempted to cash checks at local banks using the
furthest lane of each bank’s drive-up window to avoid detection by the tellers. The “Felony Lane
Gang” is a term used by law enforcement to describe individuals who use this tactic to defraud
banks. Mills admitted that on July 19, 2021, he and Thornhill went to Regions Bank in Glen Carbon,
Illinois, and successfully cashed a check made payable to a person whose identity had been stolen.
Mills and Thornhill were arrested by officers with the Glen Carbon Police Department within minutes
of leaving Regions Bank.“This case involves a criminal scheme that has unfortunately become far too common in our
District,” said United States Attorney Rachelle Aud Crowe. “This office is committed to assisting
our local law enforcement partners in their investigations of these serious crimes and to holding
those individuals who target our communities, defraud our financial institutions, and steal the
identities of innocent victims accountable. The significant prison sentence imposed by the court in
this case is not only just punishment for this defendant, but should also serve as a warning to
others contemplating such crimes.”Prior to arriving in Southern Illinois, Mills pleaded guilty to similar charges in the District of
Oregon. Mills was on pre-trial release pending sentencing in Oregon when he fled the state. On June
5, 2021, Mills was arrested in Las Vegas, Nevada, for breaking into cars. After his release in
Nevada, Mills traveled to the Southern District of Illinois to continue his spree. On July 14,
2022, Mills was sentenced
in the District of Oregon to 55 months in prison. According to the Judgment entered in the SouthernDistrict of Illinois, Mills’ two federal sentences will run consecutively—for a total of 97 months
in prison.
Mills’ co-conspirator, Mary Thornhill, has pled guilty and will be sentenced next month.
Thornhill’s sentencing is scheduled for August 17, 2022.The investigation was conducted by the following Illinois Law Enforcement Agencies: Glen Carbon,
Clinton County, Germantown, Belleville, New Baden, Salem, and O’Fallon. Other agencies assisting
with the case were the Kirkwood, Missouri, and St. Louis County Police Departments, along with the
United States Secret Service and the Fairview Heights Domicile Office of the Springfield Resident
Office.
Assistant United States Attorney Zoe J. Gross prosecuted the case.Yakima Resident Pleads Guilty to Fraudulently Obtaining More Than $59,000 in COVID-19 Relief FundsRead the Press Release
Yakima, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Karla Padilla, age 48, of Yakima, Washington, has pleaded guilty to felony charges of fraudulently obtaining more than $59,000 in COVID-19 relief funds. The plea announced today is the most recent conviction obtained by the Eastern Washington COVID-19 Strike Force, which has brought criminal charges against numerous individuals and recovered millions of dollars in fraudulently obtained COVID relief funding.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the Eastern Washington COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, convictions, and civil penalties.
During the plea hearing and in the written plea agreement, Padilla acknowledged that she fraudulently obtained more than $59,000 in PPP and EIDL funding for her purported collectible car business, Queen B Collectibles, using false information about the business, and that she unsuccessfully attempted to obtain an additional nearly $200,000 in additional funding in additional applications that she made that were not approved. Padilla further admitted that her PPP and EIDL applications were false and fraudulent in that Queen B Collectibles was not an active business, and that, therefore, neither Padilla nor Queen B Collectibles were eligible for any federal EIDL or PPP funding.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG and TIGTA” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
Judge Mary K. Dimke accepted Padilla’s guilty plea and set sentencing for December 20, 2022, in Yakima.
Special Assistant United States Attorney Frieda K. Zimmerman, Assistant United States Attorney Dan Fruchter, and Assistant United States Attorney Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Wakpala Man Sentenced to Prison for Embezzlement from Standing Rock Tribal OrganizationRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Wakpala, South Dakota, man convicted of embezzlement and theft from an Indian tribal organization was sentenced on July 18, 2022, by U.S. District Judge Charles B. Kornmann.
Joshua Iron Cloud, Sr., age 39, was sentenced to six months in federal prison, followed by three years of supervised release. He was also ordered to pay $23,980 in restitution to the Standing Rock Sioux Tribe and $100 to the Federal Crime Victims Fund.
Iron Cloud was indicted by a federal grand jury on September 8, 2021. He pled guilty on April 21, 2022.
According to court documents, between in or about March and May 2020, Iron Cloud embezzled, stole, and converted approximately $25,000 of monies, funds, and credits belonging to Oyate Community Development Corporation of the Standing Rock Sioux Tribe, an Indian Tribal Organization. Iron Cloud used those monies on personal items and expenditures.
This case was investigated by the FBI and U.S. Attorney’s Office. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Iron Cloud will report to the U.S. Marshals Service on or before November 1, 2022, to begin serving his custody sentence.
This case was brought pursuant to the Guardians Project, a federal law enforcement initiative to coordinate efforts between participating agencies, to promote citizen disclosure of public corruption, fraud, and embezzlement involving federal program funds, contracts, and grants, and to hold accountable those who are responsible for adversely affecting those living in South Dakota’s Indian country communities. The Guardians Project is another step of federal law enforcement’s on-going efforts to increase engagement, coordination, and positive action on behalf of tribal communities. Led by the U.S. Attorney’s Office, the participating agencies include: the FBI; the Offices of Inspector General for the Departments of Interior, Health and Human Services, Social Security Administration, Agriculture, Transportation, Education, Justice, and Housing and Urban Development; Internal Revenue Service, Criminal Investigation Division; U.S. Postal Inspection Service; and the U.S. Postal Service, Office of Inspector General.
For additional information about the Guardians Project, please contact the U.S. Attorney’s Office at (605) 330-4400. To report a suspected crime, please contact law enforcement at the federal agency’s locally listed telephone number.
Wakpala Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Wakpala, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Adrian Spotted Horse, age 43, was indicted on June 14, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 20, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between May and June of 2022 in South Dakota, Spotted Horse, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under federal law, knowingly failed to register and update a registration.
The charge is merely an accusation and Spotted Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Spotted Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Vandalia Man Pleads Guilty to Drug and Gun OffensesRead the Press Release
EAST ST. LOUIS, Ill. – Shane Hans, 45, of Vandalia, Illinois, pled guilty in federal court on
Thursday, July 21, 2022, to one count of distribution of methamphetamine, one count of possession
with intent to distribute methamphetamine, and one count of felon in possession of a firearm. As
part of his guilty plea, Hans acknowledged that on May 14, 2021, he possessed, with intent to
distribute, approximately 15 grams of methamphetamine that was recovered by law enforcement
officials from his residence in Vandalia, Illinois. Hans also acknowledged he possessed a firearm
recovered from his residence on that date, while knowing he was a convicted felon. Hans further
acknowledged on July 24, 2021, he knowingly distributed approximately 14 grams of methamphetamine
from his residence in Vandalia. Hans is scheduled to be sentenced on November 17, 2022. Hans
faces a maximum sentence of 20 years imprisonment.
U.S. Attorney Rachelle Aud Crowe thanks the Federal Bureau of Investigation-Springfield Field
Office and the Fayette County Sheriff’s Office for their work in investigating the case and notes
that, “this kind of cooperative effort between federal and local law enforcement agencies is
essential to making our communities safer.”
The case is being prosecuted by Assistant United States Attorney Daniel T. Kapsak.Uber Enters Non-Prosecution Agreement Related to 2016 Data BreachRead the Press Release
SAN FRANCISCO – Uber Technologies, Inc., has entered a non-prosecution agreement with federal prosecutors to resolve a criminal investigation into the coverup of a significant data breach suffered by the company in 2016, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
As part of a non-prosecution agreement to resolve the investigation, Uber admitted to and accepted responsibility for the acts of its officers, directors, employees, and agents in concealing its 2016 data breach from the Federal Trade Commission (“FTC”), which at the time of the 2016 breach had a pending investigation into the company’s data security practices. The FTC’s investigation continued from 2015 into 2017, and its written questions to Uber required Uber to provide information about any unauthorized access to personal information.
In the agreement’s Statement of Facts, Uber admits that its personnel failed to report the November 2016 data breach to the FTC despite a pending FTC investigation into data security at the company. According to the agreed facts, the hackers responsible for the 2016 breach used stolen credentials to access a private source code repository and obtain a private access key. The hackers then used that key to access and copy large quantities of data associated with Uber’s users and drivers, including data pertaining to approximately 57 million user records with 600,000 drivers’ license numbers. The breach was not reported to the FTC until approximately a year later, when new executive leadership was managing the company. Upon learning of the 2016 data breach, the new leadership team investigated the breach and disclosed it to affected drivers, to the public, to law enforcement, and to foreign and domestic regulators, including state attorneys general and the FTC.
The agreement filed today acknowledges several factors that support the resolution of the criminal investigation by a non-prosecution agreement. First, the agreement notes a change of executive management in late 2017 and the new leadership team’s prompt investigation of the 2016 breach and its disclosure to the public, FTC, law enforcement, and foreign and domestic regulators, and state attorneys general. Second, the agreement notes the company has invested substantial resources to significantly restructure and enhance the company’s compliance, legal, and security functions.
Third, the agreement further describes that in October 2018, after disclosing the 2016 data breach, Uber entered an agreement with the FTC under which Uber agreed to maintain a comprehensive privacy program for 20 years and to report to the FTC any incident reported to other government agencies relating to unauthorized intrusion into individuals’ consumer information. Fourth, the agreement cites Uber’s full cooperation with the government investigation of this matter, including the ongoing criminal case against Uber’s former chief security officer for his alleged attempt to cover-up the 2016 breach. However, the charges in that case are merely allegations, and the defendant in that case, as in all criminal cases, is presumed innocent until proven guilty beyond a reasonable doubt.
Finally, the agreement also notes that Uber settled civil litigation with the attorneys general for all 50 States and the District of Columbia related to the 2016 data breach, paying $148 million and agreeing to implement a corporate integrity program, specific data security safeguards, and incident response and data breach notification plans, along with biennial assessments.
Link to non-prosecution agreement here.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case is being investigated by the FBI. The U.S. Attorney’s Office acknowledges the assistance of the FTC.
U.S. Attorney General Merrick B. Garland Calls Mexico’s Secretary of Foreign Affairs Marcelo Ebrard Casaubon to Discuss the Extradition of Rafael Caro-QuinteroRead the Press Release
This afternoon, U.S. Attorney General Merrick B. Garland spoke by phone with Mexico’s Secretary of Foreign Affairs Marcelo Ebrard Casaubon. The two leaders previously met in Mexico City during the first U.S.-Mexico High-Level Security Dialogue (HLSD). During today’s call, Attorney General Garland expressed his gratitude to Secretary Ebrard and the Government of Mexico for successfully arresting Rafael Caro-Quintero. The Attorney General also offered his condolences to the families and loved ones of the Mexican servicemembers who gave their lives in service to their country last week. The two leaders reaffirmed their shared commitment to working expeditiously on the extradition of Caro-Quintero, who is wanted in the United States on a number of criminal charges, including his alleged involvement in the kidnapping and murder of Drug Enforcement Administration Special Agent Enrique “Kiki” Camarena in 1985.
U.S. Attorney Chris Kavanaugh Selected as Chair of the Attorney General’s Advisory Subcommittee on Terrorism and National SecurityRead the Press Release
CHARLOTTESVILLE, Va. – United States Attorney Chris Kavanaugh of the Western District of Virginia has been selected to chair the Terrorism and National Security Subcommittee for the Attorney General’s Advisory Committee (AGAC). The Terrorism and National Security Subcommittee is comprised of 18 current United States Attorneys representing districts throughout the country and is dedicated to addressing issues relating to investigating and prosecuting threats to national security and acts of domestic and international terrorism.
“The Department of Justice’s core priority is keeping our country safe from all threats, foreign and domestic. A critical step in achieving that goal is the streamlined approach to investigating and prosecuting threats to our national security, including acts of terrorism and espionage,” said U.S. Attorney Kavanaugh. “Our partners in law enforcement and the intelligence community are dedicated to this same mission, and I am thrilled to work with my fellow United States Attorneys to advise the Department on leading issues related to the investigation and prosecution of these central cases.”
Prior to his appointment as United States Attorney for the Western District of Virginia, Kavanaugh had been a federal prosecutor for 14 years, having served as the chief national security prosecutor in the United States Attorney’s Office (USAO) for the Western District of Virginia and also as a federal prosecutor in the National Security Section of the USAO for the District of Columbia.
In his role as Terrorism and National Security Subcommittee Chair, U.S. Attorney Kavanaugh will work with United States Attorneys across the country to provide leadership, guidance, and cooperation with the AGAC on terrorism and national security matters impacting federal prosecutions across the United States.
Established in 1973, the AGAC and its subcommittees advise the Attorney General on matters of policy, procedure, and management impacting U.S. Attorneys’ Offices and represents the views of federal prosecutors across the country.
Two defendants enter guilty pleas in Sweetie Pie’s murder-for-hire schemeRead the Press Release
ST. LOUIS – United States District Court Judge John A. Ross accepted a plea of guilty from Terica Taneisha Ellis and Waiel Rebhi Yaghnam on today’s date. A grand jury in the Eastern District of Missouri previously indicted Yaghnam and Ellis in August of 2020. Additional charges were filed in November 2020 for Yaghnam and Ellis for their roles in the murder-for-hire scheme involving James Timothy Norman and the death of Andre Montgomery. Judge Ross set sentencing for October 26, 2022.
According to the plea agreements, beginning at a time unknown, but up to and including March 14, 2016, and through the date of the superseding information, in the City of St. Louis and elsewhere within the Eastern District of Missouri, Terica Ellis, James Timothy Norman and others reached an agreement to use a facility of interstate commerce, namely, a cellular telephone, to commit a murder-for-hire in exchange for United States currency, in violation of Title 18, United States Code, Section 1958. In 2014, Norman obtained a $450,000 life insurance policy on his 20-year-old nephew, Andre Montgomery, on which Norman was the sole beneficiary.
Ellis and Norman had been involved in a sexual relationship for several years preceding the events of March 14, 2016. At Norman’s request, Ellis met him at the Chase Park Plaza Hotel, where they spoke and engaged in sexual intercourse. Afterward, Norman and Ellis spoke about Norman’s nephew, Andre Montgomery. Norman showed her a photograph of Montgomery and asked if she knew him.
Ellis advised that she had previously met Montgomery at Bottom’s Up, an exotic dance club in East St. Louis where she worked as a dancer. Norman advised Ellis that he was looking for Montgomery and needed her help to find him. Norman further explained that he was upset with his nephew. She informed Norman that Montgomery had introduced himself to her as a rapper from New Orleans while at Bottom’s Up and that they had exchanged phone numbers at that time.
Ellis agreed to assist Norman in locating Montgomery on March 14, 2016. Norman had advised her that he was looking for his nephew, and Ellis knew that Norman was upset and frustrated by his inability to locate Montgomery and knew that Norman was going to take some form of action relative to Montgomery. Despite this, Ellis did not take any affirmative steps to disavow or defeat the purpose of the commission of violent criminal activity on March 14, 2016.
In the days leading up to Montgomery’s murder, Ellis, communicated with Montgomery and informed him that she was planning to be in St. Louis. On March 13, 2016, the day before Montgomery’s murder, Norman flew to St. Louis, Missouri from his home in Los Angeles, California. On March 14, 2016, Ellis and Norman communicated using temporary phones activated that day. Ellis also used the temporary phone to communicate with Montgomery and learn his physical location for the purpose of luring Montgomery outside.
Immediately after learning Montgomery’s location, Ellis placed a call to Norman. On March 14, 2016, at approximately 8:02 p.m., Montgomery was killed by gunfire at 3964 Natural Bridge Avenue in the City of St. Louis. Ellis’s phone location information places her in the vicinity of the murder at time of the homicide. Immediately following Montgomery’s murder, Ellis placed a call to Norman, and then began travelling to Memphis, Tennessee. In the days after the murder, Ellis accepted a cash payment of $10,000.00 in U.S. currency from Norman in exchange for, among other things, finding out the location of Montgomery, causing him to come outside, and relaying the location information to co-defendants Norman and Travell Hill. Hill subsequently shot and killed Montgomery. Hill plead guilty to the charges on June 3, 2022.
On March 15, 2016, the day after Montgomery’s homicide, Ellis deposited $3,020.00 in U.S. currency into her checking account at the Orange Mound branch of the First Horizon Bank in Memphis, Tennessee. On the same date, she also deposited $4,340.00 into a savings account opened that day at the same bank in Memphis, Tennessee, for a total of $7,360.00 in cash deposits. On March 17, 2016, Ellis deposited an additional $1,900.00 in U.S. Currency into her checking account at the same branch. These deposits were all cash proceeds from the agreement she had made with Norman.
On March 18, 2016, Norman contacted the life insurance company in an attempt to collect on the life insurance policy he had obtained on his nephew.
According to Yaghnam’s plea agreement, prior to Montgomery’s murder, Norman conspired with Yaghnam, his insurance agent, to fraudulently obtain a life insurance policy on Montgomery. Beginning in October of 2014, Norman and Yaghnam submitted three separate life insurance applications, all containing numerous false statements regarding Montgomery’s income, net worth, medical history, employment and family background.
In the life insurance policy that ultimately issued, Norman obtained a $200,000 policy, as well as $200,000 accidental death rider that would pay out if Montgomery died of something other than natural causes, and a $50,000 10 year-term rider that would pay out if Montgomery died within 10 years of the policy’s issuance in 2014.
Following the murder of Andre Montgomery, Yaghnam placed two telephone calls to one of the insurance agencies seeking to file a claim on the life insurance policy James Timothy Norman owned on the victim.
On March 30, 2016, Yaghnam placed a phone call to Foresters Insurance agency lasting 10 minutes and two seconds. On May 21, 2016, Norman submitted to Foresters via US mail a written claim on his life insurance policy on Andre Montgomery.
On July 6, 2016, Norman received a letter via US mail from Foresters indicating that Foresters still had not received the finalized police, toxicology, and coroner’s reports necessary to process his claim on the life insurance policy. Between August of 2016 and November of 2016, Norman repeatedly contacted Foresters in connection with his attempt to claim the life insurance policy.
In or about September of 2018, Norman retained an attorney to represent him in connection with his attempt to claim the Foresters life insurance policy. That attorney subsequently sent a letter to Foresters indicating that Norman had authorized the attorney to file a lawsuit for failure to promptly pay the life insurance claim. On September 26, 2019, Foresters sent Norman a letter via US mail advising that as of the date of the letter, Foresters still had not received all the documentation required to adjudicate his claim on the life insurance policy.
Co-defendant Travell Hill pleaded guilty and is awaiting sentencing scheduled for September 20, 2022. James Timothy Norman is currently awaiting trial.
The case was investigated by the Federal Bureau of Investigation and the St. Louis Metropolitan Police Department.
Two Clinical Labs and Their Owners Agree to Pay $5.7 Million to Resolve False Claims and Kickback AllegationsRead the Press Release
NEWARK, N.J. – Two clinical laboratories and their owners have agreed to pay $5.7 million to resolve allegations that they caused the submission of false claims to Medicare by paying kickbacks in return for genetic testing samples, the Department of Justice announced today.
Metric Lab Services LLC and Metric Management Services LLC (Metric) and Spectrum Diagnostic Labs LLC (Spectrum) and two of their owners and operators, Sherman Kennerson and Jeffrey Madison, have agreed to the settlement.
“Rather than compete fairly for business, these labs engaged in a brazen kickback scheme to rake in millions of dollars of Medicare money,” Philip R. Sellinger, U.S. Attorney for the District of New Jersey, said. “A patient’s needs must guide medical decisions, not who is paying the biggest kickback. Today’s settlement recoups millions of dollars for the Medicare program, and demonstrates this Office’s continuing resolve to protect the integrity of federal healthcare programs.”
“Laboratories that attempt to profit from unlawful kickbacks will be held accountable,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, said. “The department will continue to pursue those who undermine the integrity of federal health care programs and waste taxpayer dollars.”
“When health care providers engage in kickback schemes – particularly ones that deceive Medicare patients about the medical necessity of services – the trust of both patients and taxpayers are at risk,” Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) said. “This case shows our commitment to investigating such allegations in order to protect the Medicare program’s ability to subsist and serve its mission.”
Metric and Spectrum were clinical laboratories in Mississippi and Texas, which Kennerson and Madison co-owned and operated along with other individuals. The United States alleged that Metric, Spectrum, Kennerson and Madison participated in a genetic testing fraud scheme with various marketers. These marketers solicited genetic testing samples from Medicare beneficiaries. The marketers arranged to have a physician fraudulently attest that the genetic testing was medically necessary, and Metric and Spectrum would process the tests, receive reimbursement from Medicare and pay a portion of that reimbursement to the marketers.
In an attempt to conceal the nature of the kickback arrangement, Metric and Spectrum entered into sham agreements with marketers to provide various consulting, marketing and other services at an hourly rate. In reality, however, Metric and Spectrum paid the marketers a percentage of revenue, including Medicare reimbursement, in return for the samples. The marketers then generated sham invoices for hourly services that matched the agreed-upon kickback amount.
Kennerson and Madison each previously pleaded guilty to one count of conspiracy to defraud the United States in connection with this scheme and are awaiting sentencing.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of New Jersey, with assistance from HHS-OIG.
The government is represented by Assistant U.S. Attorney Andrew A. Caffrey III of the District of New Jersey and DOJ Trial Attorney J. Jennifer Koh.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The claims resolved by the settlement are allegations only and there has been no determination of liability except to the extent admitted by Kennerson and Madison in their criminal pleas.
Two Airline Passengers Indicted for Interfering with Crew and Attendant on Flight to New DelhiRead the Press Release
SAN FRANCISCO – An indictment unsealed in federal court today charges David Singh Bhinder and Nitesh Babbar with interfering with a flight crew member and a flight attendant during a flight, announced United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Sean Ragan.
According to the indictment, Bhinder, 44, and Babbar, 32, both of Southern California, were passengers onboard United Airline Flight 867 on October 19, 2021, departing from San Francisco enroute to New Delhi, India. The indictment alleges the two attempted to interfere with and intimidate a flight crew member and a flight attendant during the performance of their duties. The indictment describes that Bhinder and Babbar were disruptive and unruly, threatened to assault a flight crew member and flight attendant, and refused to comply with directions.
Bhinder and Babbar appeared today in federal court before United States Magistrate Judge Alex Tse to face the indictment. Their next appearance is scheduled for August 10 before United States District Judge Charles R. Breyer. Both Bhinder and Babbar remain out of custody.
Bhinder and Babbar have been charged together in one count of interference and attempted interference with the performance of duties of a flight crew member and flight attendant on an aircraft in violation of Title 49, United States Code, Section 46504. The charge carries maximum possible penalties of 20 years in prison and a $250,000 fine. However, any sentence following conviction would be imposed by a court only after the court’s consideration of the United States Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 USC § 3553.
Charges contained in a criminal indictment are merely allegations. As in any criminal case, the defendants are presumed innocent unless and until proven guilty in a court of law.
The case is being prosecuted by the General Crimes Section of the U.S. Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI.
Transient Sentenced for Prohibited Possession of a FirearmRead the Press Release
United States Attorney Alison J. Ramsdell announced that a transient woman from the Sioux Falls, South Dakota, area was convicted of possession of a firearm by a prohibited person and was sentenced on July 21, 2021, by U.S. District Judge Karen E. Schreier.
Elizabeth Ashley Drake, age 35, was sentenced to 18 months in prison, followed by three years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Drake was indicted for possession of a firearm by a prohibited person by a federal grand jury on July 7, 2021. She pled guilty on May 5, 2022.
On or about June 11, 2021, Drake had possession of a Taurus, model 85, .38 Special caliber, double action revolver, ammunition, methamphetamine, and methamphetamine paraphernalia, in Sioux Falls.
On June 11, 2021, the Sioux Falls Police Department lawfully searched a vehicle Drake was a passenger in and located the firearms, narcotics, and syringes. Drake knew she was prohibited from possessing a firearm, as she had been previously convicted of one or more crimes punishable by imprisonment exceeding one year. Drake was also prohibited from possessing firearms as she was an unlawful user of controlled substances.
This case was investigated by the Sioux Falls Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Special Assistant U.S. Attorney Paige Petersen prosecuted the case.
Drake was immediately turned over to the custody of the U.S. Marshals Service.
Three fugitives arrested in massive multistate fraud schemeRead the Press Release
HOUSTON – Three more co-conspirators have been taken into custody on charges related to a multi-layered mortgage fraud, credit repair and government loan fraud scheme, announced U.S. Attorney Jennifer B Lowery.
Heather Ann Campos, David Lewis Best Jr. and Stephen Laverne Crabtree had evaded law enforcement for several months.
Campos, 43, Houston, is set for a detention hearing before U.S. Judge Dena H. Palermo today at 10 a.m. Best, 56, Spring, and Crabtree, 62, Herriman, Utah, remain in custody pending further criminal proceedings.
All three allegedly sent numerous sovereign citizen letters to federal agencies and the federal court in Houston declaring themselves immune from prosecution and refusing to recognize the authority of the federal courts.
Campos and Best were indicted in January on numerous charges for participating in a conspiracy to defraud mortgage lending businesses, banks, Small Business Administration (SBA) and the Federal Trade Commission (FTC). They indicated they would self-surrender but allegedly fled from law enforcement. Since that date, several other co-conspirators were indicted, including Crabtree. He was released on bond and also became a fugitive.
Those indicted include Steven Tetsuya Morizono, 59, Mission Viejo, California; Albert Lugene Lim, 53, Laguna Niguel, California; Melinda Moreno Munoz, 41, Elvina Buckley, 68, Leslie Edrington, 65, and ShyAnne Edrington, 29, all of Houston.
The charges allege Campos and Best recruited clients for credit repair using company names of KMD Credit, KMD Capital and Jeff Funding, among others. They allegedly “cleaned” their clients’ credit histories by filing false identity theft reports with the FTC. After fraudulently inflating client credit worthiness, the co-conspirators fraudulently obtained credit cards, disaster loans and mortgages for themselves and their clients, according to the charges. They were allegedly able to accomplish this through false statements and fake documents.
Campos was a mortgage broker and Buckley a realtor, while operating as a notary was the responsibility of Munoz, according to the charges. After fraudulently inflating client credit worthiness, the individuals allegedly obtained rental properties to deceptively build a real estate portfolio worth millions of dollars in their clients’ names and profit from rental income. The charges allege Crabtree was a credit repair client and recruited others, including his family members, and conspired to commit wire fraud.
In addition, they allegedly obtained loans from banks and the SBA’s Economic Injury Disaster Loan Program and Paycheck Protection Program. They were created in the names of clients, friends and family members through false statements and fake or altered documents.
Using the alias Jeff, Morizono was the leader and namesake for the scheme purporting to do business as Jeff Funding, according to the charges.
If convicted, they all face up to 30 years in federal prison and a possible $1 million maximum fine.
The Federal Housing Finance Agency – Office of Inspector General (OIG), U.S. Postal Inspection Service and SBA – OIG conducted the investigation with the assistance of the FTC – OIG and IRS – Criminal Investigation.
Other agencies assisted with the arrests of Campos, Best and Crabtree, to include The Unified Police Department of Greater Salt Lake; police departments in South Jordan, Riverton, and Herriman, Utah; FBI Hostage Rescue Team; U.S. Postal Inspection Service – Pittsburgh and Salt Lake City Divisions; and the U.S. Marshals Violent Fugitive Apprehension Strike Force.
Assistant U.S. Attorneys Kate Suh and Jay Hileman are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Twice Deported Dr National Sentence to Nine Months of Incarceration and DeportationRead the Press Release
St. Croix, VI – United States Attorney Delia L. Smith announced today that Reynaldo Mejia-Mejia, 33, of the Dominican Republic, was sentenced today by District Judge Wilma Lewis on his conviction of illegally reentering the United States. Judge Lewis sentenced Mejia-Mejia to nine months of incarceration followed by one year of supervised release, deportation and was ordered not enter the United States without first obtaining the permission of the Attorney General or Department of Homeland Security.
According to court documents, on March 23, 2022, Mejia-Mejia presented himself to U.S. Customs and Border Protection (CBP) for inspection prior to boarding a Spirit Airlines flight from St. Croix to Fort Lauderdale, FL. He presented a Washington State driver’s license in the name of another individual with a photo of his likeness as proof of identification to travel. During his primary inspection, Mejia-Mejia falsely stated that he was born in Puerto Rico, despite speaking with a distinct Dominican Republic accent. A subsequent fingerprint analysis positively identified Mejia-Mejia as an individual that was previously deported in 2018 and 2019 from the United States to the Dominican Republic. It was further determined that Mejia-Mejia is not a citizen or national of the United States and was not authorized to be present in the United States.
Homeland Security Investigations and U.S. Customs and Border Protection investigated this case and Assistant United States Attorney Melissa Ortiz prosecuted this matter.
Stephen K. Bannon Found Guilty by Jury of Two Counts of Contempt of CongressRead the Press Release
WASHINGTON – Stephen K. Bannon was found guilty by a jury today of two counts of contempt of Congress stemming from his failure to comply with a subpoena issued by the House Select Committee investigating the Jan. 6 breach of the United States Capitol.
Bannon, 68, was found guilty of one contempt count involving his refusal to appear for a deposition and another involving his refusal to produce documents, despite a subpoena from the House Select Committee to Investigate the January 6th Attack on the United States Capitol. The verdict followed a trial in the U.S. District Court for the District of Columbia.
“The subpoena to Stephen Bannon was not an invitation that could be rejected or ignored,” said Matthew M. Graves, U.S. Attorney for the District of Columbia. “Mr. Bannon had an obligation to appear before the House Select Committee to give testimony and provide documents. His refusal to do so was deliberate and now a jury has found that he must pay the consequences.”
“The tenets of our government rely upon citizens adhering to the established rules of law. Lawful tools, such as subpoenas and other legal orders, are critical in our system of government,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “Mr. Bannon was found guilty of contempt by a jury of his peers for his choice to ignore a lawful subpoena. The FBI will continue our sworn duty to investigate those who have committed violations of our laws and hold them accountable for their actions."
On Sept. 23, 2021, the Select Committee issued a subpoena to Bannon. In its subpoena, the Select Committee said it had reason to believe that he had information relevant to understanding events related to Jan. 6, 2021. The subpoena required him to appear and produce documents to the Select Committee on Oct. 7, 2021, and to appear for a deposition before the Select Committee on Oct. 14, 2021. Bannon refused to appear to give testimony as required by subpoena and refused to produce documents in compliance with a subpoena.
Bannon, formerly a Chief Strategist and Counselor to the President, has been a private citizen since departing the White House in 2017. He was indicted on the contempt charges on Nov. 12, 2021.
Bannon is to be sentenced on Oct. 21, 2022. Each count of contempt of Congress carries a minimum of 30 days and a maximum of one year in jail, as well as a fine of $100 to $100,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI’s Washington Field Office. The case is being prosecuted by the Fraud, Public Corruption, and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
St. Paul Felon Indicted for Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A federal grand jury returned an indictment against a St. Paul man for illegally possessing a firearm, announced U.S. Attorney Andrew M. Luger.
According to court documents, on May 2, 2022, Terrance Terrell Lane, 25, was found to be in possession of a Glock 30, .45 caliber handgun, equipped with an extended magazine and an auto sear, a device that turns a semi-automatic firearm into a fully automatic firearm. Because Lane has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time.
Lane is charged with one count of possessing a firearm as a felon. He made his initial appearance in U.S. District Court yesterday before Magistrate Judge David T. Schultz.
This case was jointly investigated by the FBI, the Minneapolis Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the U.S. Drug Enforcement Administration, the Hennepin County Violent Offenders Task Force, the Minnesota Bureau of Criminal Apprehension, Dakota County Probation, and Hennepin County Probation.
Assistant U.S. Attorney Lindsey E. Middlecamp is prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Lawrence County Woman Sentenced to 84 Months for Methamphetamine ConvictionRead the Press Release
PLATTSBURGH, NEW YORK – Megan Perkins, age 33, of Ogdensburg, New York, was sentenced yesterday to 84 months in prison for possessing and distributing methamphetamine.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In pleading guilty, Perkins admitted to traveling to Akron, Ohio, where she acquired bulk quantities of methamphetamine. Perkins would then return to St. Lawrence County to distribute the methamphetamine to local drug users.
Senior United States District Judge David N. Hurd also ordered that Perkins serve a 4-year term of supervised release following her release from prison.
This case was investigated by HSI, the Massena Police Department, and the St. Lawrence County Drug Task Force, and was prosecuted by Assistant U.S. Attorney Jeffrey C. Stitt.
Sioux Falls Man Sentenced for Involvement in Meth ConspiracyRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Sioux Falls, South Dakota, man convicted of conspiracy to distribute a controlled substance was sentenced on July 19, 2022, by U.S. District Judge Karen E. Schreier.
Det Khaoon, a/k/a "D", "Chino" and "Johnny Lee", age 38, was sentenced to 176 months in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Khaoon was indicted for conspiracy to distribute a controlled substance by a federal grand jury on July 7, 2021. He pled guilty on March 31, 2022.
Beginning on an unknown date and continuing until on or about July 7, 2021, Khaoon knowingly and intentionally combined, conspired, confederated, and agreed together, with others known and unknown, to knowingly and intentionally distribute 500 grams or more of a mixture and substance containing methamphetamine, a Schedule II controlled substance. In total, Khaoon was involved in trafficking 43 pounds of methamphetamine and 80 grams of fentanyl.
This case was investigated by South Dakota Highway Patrol, Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Assistant U.S. Attorney Mark Hodges prosecuted the case.
Khaoon was immediately remanded to the custody of the U.S. Marshals Service.
Saratoga County Sex Offender Sentenced to 180 Months for Child Pornography ConvictionsRead the Press Release
ALBANY, NEW YORK – Zachary L. Duchesne, age 27, of Stillwater, New York, was sentenced today to 180 months in prison for transporting and possessing child pornography.
The announcement was made by United States Attorney Carla B. Freedman and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
In previously pleading guilty, Duchesne admitted to using a Dropbox account to store, possess and view images and videos depicting the sexual abuse of children, between December 26, 2017 and June 23, 2019. He admitted to periodically transferring child pornography videos into his Dropbox account, and to using the stored child pornography as a form of “currency” to trade with other people.
Duchesne has been in custody since his arrest on July 15, 2020, and has a prior state conviction relating to the possession of child pornography.
United States District Judge Mae A. D’Agostino also imposed a 15-term of post-imprisonment supervised release, and ordered Duchesne to pay $36,000 in restitution to victims whose abuse was depicted in the images that he possessed. Duchesne will also have to register as a sex offender upon his release from prison.
This case was investigated by HSI, with assistance from the Stillwater Police Department, and was prosecuted by Assistant U.S. Attorney Michael Barnett as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal 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 https://www.justice.gov/psc.