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25 August 2022
Former State Employee Pleads Guilty in Unemployment Insurance Fraud CaseRead the Press Release
ALBANY, NEW YORK – Former New York State Department of Labor (NYSDOL) employee Wendell Giles, age 52, of Albany, pled guilty today to mail fraud and aggravated identity theft charges.
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Jonathan Mellone, Special Agent in Charge, New York Region, U.S. Department of Labor, Office of Inspector General (USDOL-OIG).
As part of his guilty plea, Giles admitted that he and another former NYSDOL employee, Carl J. DiVeglia III, abused their state computer systems access to create and approve false unemployment insurance (UI) applications in 2020 and 2021, including applications for the federal Pandemic Unemployment Assistance (PUA) program.
Giles recruited relatives, friends and friends-of-friends to submit false benefits applications over the phone to DiVeglia after Giles had instructed them to lie in response to eligibility questions. Giles and DiVeglia then took a share of the benefits paid by NYSDOL on the false claims. Giles used his share to enrich himself, including by purchasing a three-wheeled motorcycle. In text messages, DiVeglia suggested a vanity license plate for Giles’s new vehicle, “TY PUA,” which Giles understood to mean “Thank You Pandemic Unemployment Assistance.” Giles responded, “Lol.” Giles had been employed as a Senior Employment Security Clerk, and DiVeglia as a Labor Services Representative.
Giles admitted responsibility for $826,530 in losses to pandemic-related UI benefits programs administered by the state. He has agreed to pay full restitution to NYSDOL. DiVeglia previously pled guilty to related charges and also agreed to pay restitution.
The mail fraud conviction carries a maximum term of 20 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. The aggravated identity theft conviction carries a mandatory term of 2 years in prison, to be imposed consecutively to any other term of imprisonment. Giles is scheduled to be sentenced on January 5, 2023 by Chief United States District Judge Glenn T. Suddaby. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and USDOL-OIG, with assistance from the NYSDOL Office of Special Investigations, and is being prosecuted by Assistant U.S. Attorneys John T. Chisholm and Joshua R. Rosenthal.
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.
Former Senior Executive of Defense Contractor Pleads Guilty to Tax EvasionRead the Press Release
A former senior executive for a defense contractor pleaded guilty today to tax evasion.
According to court documents and statements made in court, from 2013 through 2015, Zachary A. Friedman, of New York, New York, worked in the United Arab Emirates as a senior executive for a U.S. Department of Defense contracting company. From 2013 to 2015 Friedman evaded taxes he owed to the IRS by providing false information to his tax preparer that underreported the income he earned for each of those years. In total, Friedman concealed approximately $530,000 in income, causing a tax loss to the government of more than $207,000.
Friedman is the fourth defendant associated with the defense contracting company to plead guilty. Charles Squires (February 2022), James Robar (March 2022), and Ronald Thomas (April 2022) all pleaded guilty to tax evasion.
Friedman is scheduled to be sentenced at a later date. He faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case.
Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, Netherlands, United Kingdom and the United States.
Senior Litigation Counsel Nanette Davis and Trial Attorneys Sarah Ranney and Ezra Spiro of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Former Senior Executive of Defense Contractor Pleads Guilty to Federal Tax Evasion ChargeRead the Press Release
WASHINGTON – A former senior executive for a defense contractor pleaded guilty in the District of Columbua today to tax evasion.
According to court documents and statements made in court, from 2013 through 2015, Zachary A. Friedman, of New York, New York, worked in the United Arab Emirates as a senior executive for a U.S. Department of Defense contracting company. From 2013 to 2015 Friedman evaded taxes he owed to the IRS by providing false information to his tax preparer that underreported the income he earned for each of those years. In total, Friedman concealed approximately $530,000 in income, causing a tax loss to the government of more than $207,000.
Friedman is the fourth defendant associated with the defense contracting company to plead guilty. Charles Squires (February 2022), James Robar (March 2022), and Ronald Thomas (April 2022) all pleaded guilty to tax evasion.
Friedman is scheduled to be sentenced at a later date. He faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Matthew M. Graves for the District of Columbia made the announcement.
IRS-Criminal Investigation and the Special Inspector General for Afghanistan Reconstruction are investigating the case. Assistance was provided by the Joint Chiefs of Global Tax Enforcement (J5), which brings together the taxing authorities of Australia, Canada, Netherlands, United Kingdom, and the United States.
Senior Litigation Counsel Nanette Davis and Trial Attorneys Sarah Ranney and Ezra Spiro of the Tax Division, and Assistant U.S. Attorney Leslie Goemaat of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Former San Francisco Public Works Director Sentenced to Seven Years in Federal PrisonRead the Press Release
SAN FRANCISCO – Former San Francisco City Hall public official Mohammed Colin Nuru was sentenced today to 84 months (7 years) in federal prison for honest services wire fraud, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, and Internal Revenue Service–Criminal Investigation Special Agent in Charge Mark H. Pearson. The sentence was handed down by United States District Judge William H. Orrick.
Nuru, 59, was first arrested on January 17, 2020, following the filing of a 79-page federal criminal complaint against him. Nuru was then the Director of the San Francisco Department of Public Works (DPW) and had held that position since 2011, when he was elevated from the DPW Deputy Director of Operations position that he had held since 2000. The complaint charged Nuru with honest services fraud in public office, alleging a long-running scheme of bribes and kickbacks during his DPW tenure. A second federal complaint filed January 28, 2020, charged Nuru for lying to a federal agent following his arrest.
On January 6, 2022, Nuru pleaded guilty to the charge of defrauding the public of its right to his honest services, in violation of 18 U.S.C. §§ 1343 and 1346.
“Mohammed Nuru’s prison sentence is punishment for more than a decade of public corruption,” said United States Attorney Stephanie Hinds. “As San Francisco’s Department of Public Works Deputy Director and then its Director, Nuru owed the people of San Francisco a duty of faithful, honest services. Instead, he betrayed that duty. For at least twelve years, Nuru shook down contractors eager for City business, trading his authority and influence for millions of dollars in cash, construction work, travel, meals, and gifts. His abhorrent conduct erodes the public’s trust in its government, and this case demonstrates the justice system can and will punish corrupt public officials.”
“Mohammed Nuru’s long-running scheme of bribes and kickbacks ultimately earned him seven years in prison. Today’s sentence sends a clear message that public officials who abuse their power for personal gain will be punished,” said FBI Special Agent in Charge Sean Ragan. “The FBI’s investigation into this case is not over. We will continue to unravel and disrupt corruption within the city of San Francisco.”
“Corruption happens in the shadows, often with the help of professional enablers who perpetuate fraudulent schemes and the corrupt who launder and hide their illicit wealth. The Oakland Field Office of IRS Criminal Investigation has dedicated resources to unraveling the truth behind the extensive web of corruption, which Mohammed Nuru presided over, during his tenure leading the San Francisco Department of Public Works,” said IRS Criminal Investigation Special Agent in Charge Mark H. Pearson. “Today’s sentencing is a true reflection of the collaborative commitment between IRS-CI, the FBI, and the USAO-NDCA to protect public welfare, the people in our communities, and bring justice to light.”
In his plea agreement, Nuru admits to a pervasive corruption scheme involving bribery, kickbacks and fraud that spanned at least his last 12 years in office. During that time, Nuru sat not only as Deputy Director of Operations and then Director at DPW but also as a member of the Board of the Transbay Joint Powers Authority (TJPA). Appointed to the TJPA board in 2014, Nuru eventually became its Chair. From these positions, Nuru exercised substantial power and influence over San Francisco (the City) business and policy, including its public contracts, permits, and construction projects. Nuru’s authority made him a powerful public official in the City.
Nuru’s admissions detail his broad array of graft in office, and a sample of them are below:
Walter Wong: Nuru’s corrupt relationship with San Francisco-based contractor Walter Wong began in 2008. Nuru accepted envelopes of cash containing as much as $5,000 at a time from Wong, and Wong bribed Nuru with more than $260,000 in construction labor and materials provided to Nuru’s San Francisco home and his vacation ranch property located in Stonyford in Colusa County. Wong also paid for Nuru to travel to China multiple times and to South America, footing the bill for international flights and a stay at the Ritz-Carlton in Santiago, Chile, for Nuru and his then-girlfriend Sandra Zuniga, another City official. In exchange, Nuru helped Wong secure City contracts by structuring the City’s Request for Proposals (RFPs) to ensure Wong’s company secured the contract, by providing Wong with confidential information on competitors’ bids, and by helping Wong expedite permit approvals.
Recology: Recology Inc. is a waste management company headquartered in San Francisco and the parent company of Sunset Scavenger Company, Golden Gate Disposal & Recycling Company, and Recology San Francisco (collectively referred to as Recology) that provided collection and disposal services for residential and commercial customers located in the City and for the City itself. In his DPW Director’s position, Nuru presided over the process governing the rates that Recology could charge, including “tipping fee” rates that Recology charged DPW when DPW dumped materials at a Recology facility. In exchange for favorable treatment from Nuru, Nuru describes that Recology bribed him with soil delivered to his Colusa County ranch, expensive meals, and a two-night trip to New York in December 2017. At Nuru’s request, Recology also donated hundreds of thousands of dollars to a San Francisco non-profit for a cleaning program that Nuru could access and use for other purposes, and Recology further funded DPW holiday parties with $60,000 in donations. Recology also arranged and funded the hiring of a Nuru family member.
Nick Bovis: Nuru received multiple bribes from restaurateur Nick Bovis, including free meals and entertainment for Nuru, his family, and associates at restaurants owned by Bovis and thousands of dollars in free appliances for Nuru’s ranch property. Nuru also expected tens of thousands of dollars in kickbacks from proceeds that Bovis would earn from City concessions or contracts awarded to Bovis. In exchange, Nuru used his official acts and influence to assist Bovis in obtaining public business and contracts with the City.
Florence Kong: Nuru accepted a gold Rolex watch valued at $36,550, cash, and an iron fence installed at Nuru’s ranch from businesswoman Florence Kong. In exchange, Nuru used his official position to benefit Kong’s businesses, including a recycling business owned by Kong.
Balmore Hernandez, William Gilmartin, & Alan Varela: In a series of bribes and kickbacks from Balmore Hernandez, William Gilmartin, and Alan Varela, Nuru received a brand new tractor for his vacation ranch, free meals, and cash. Nuru also expected to receive a portion of the proceeds from anticipated City contracts awarded to them. In exchange, Nuru exercised his official authority and influence to benefit their City business ventures.
These are just examples of some of the bribes Nuru admitted in his plea agreement. Multiple other individuals paid Nuru in exchange for favorable official acts from him.
In addition to the sentence of imprisonment, United States District Judge William H. Orrick ordered a three year term of supervision of Nuru upon his release from prison. He also ordered the forfeiture to the United States of Nuru’s vacation ranch property in Stonyford, California. Nuru will surrender to begin serving his sentence on January 6, 2023.
This case is part of a larger federal investigation targeting public corruption in the City and County of San Francisco. To date, twelve individuals and multiple corporate entities have been charged, including another high-ranking San Francisco public official, the former San Francisco Public Utilities Commission General Manager Harlan Kelly. Charges against Harlan Kelly remain pending. Multiple city contractors and facilitators have also been charged.
The case is being prosecuted by the Corporate and Securities Fraud Section of the U.S. Attorney’s Office. The case was investigated by the FBI and IRS-CI.
Former Maryland Heights police officer sentenced to 4 years in prison on child pornography chargeRead the Press Release
ST. LOUIS – U.S. District Judge Henry E. Autrey on Thursday sentenced a former Maryland Heights, Missouri police officer to four years in prison on a child pornography charge.
Nicholas H. Haglof, 30, was also ordered to pay $3,000 in restitution each to the three victims identified in the images, and a $5,000 special assessment under the Justice for Victims of Trafficking Act.
Haglof pleaded guilty in May to a charge of accessing with the intent to view child pornography. He admitted viewing hundreds of images containing child pornography using his laptop computer and cell phone in 2019 and 2020.
The case was investigated by the St. Louis County Police Department Special Investigations Unit and the Federal Bureau of Investigation. Assistant United States Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Florida Tax Preparer Sentenced to Prison for Criminal ContemptRead the Press Release
A Florida man was sentenced to one year and one day in prison today for criminal contempt for continuing to prepare and file tax returns with the IRS in violation of a federal court order barring him from doing so.
According to court documents and statements made in court, Guy Telfort, of Fort Lauderdale, Florida, previously owned and operated Tax Houses and Accounting Services, a Lauderdale Lakes tax preparation business. From approximately January 2015 through April 2019, Telfort and his employees prepared and filed tax returns for clients. In order to generate inflated IRS refunds for clients, some of these returns reported false items, including fictitious business income and losses and mileage deductions. On April 24, 2019, the U.S. District Court for the Southern District of Florida entered an injunction against Telfort in a civil proceeding, permanently barring Telfort from preparing federal tax returns for others.
Despite this court-ordered injunction, in 2020 and 2021, Telfort continued to prepare and file returns, working out of an Oakland Park, Florida, pawn shop. Telfort charged clients as much as $1,000 for each return filed with the IRS. Some of these tax returns reported false medical and dental expenses and charitable contributions, as well as fictitious businesses. To disguise his role in preparing these returns, Telfort used IRS Preparer Tax Identification Numbers belonging to other tax preparers. Over the two-year period, Telfort prepared nearly 1,200 tax returns for clients in willful violation of the permanent injunction.
In addition to the term of imprisonment, U.S. District Judge Federico A. Moreno ordered Telfort to serve three years of supervised release and pay $762,338.88 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida made the announcement. They thanked Trial Attorneys John Nasta Jr., Huiwen Audrey Xi and Jikky Thankachan of the Tax Division’s Civil Trial Section for investigating the case.
Trial Attorneys Ashley Stein and Casey Smith of the Tax Division’s Criminal Enforcement Section handled the criminal prosecution.
Florida Residents Plead Guilty to Conspiracy to Commit Interstate Transportation of Stolen PropertyRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced that AIMEE HARRIS and ROBERT KURLANDER pled guilty to conspiracy to commit interstate transportation of stolen property involving the theft of personal belongings of an immediate family member of a then-former government official who was a candidate for national political office. HARRIS and KURLANDER pled guilty today before United States Magistrate Judge Sarah L. Cave and will be sentenced by Chief United States District Judge Laura Taylor Swain.
U.S. Attorney Damian Williams said: “Harris and Kurlander stole personal property from an immediate family member of a candidate for national political office. They sold the property to an organization in New York for $40,000 and even returned to take more of the victim’s property when asked to do so. Harris and Kurlander sought to profit from their theft of another person’s personal property, and they now stand convicted of a federal felony as a result.”
FBI Assistant Director Michael J. Driscoll said: “As they've admitted with today’s pleas, the defendants conspired to steal an individual’s personal property, which they subsequently sold to a third party and delivered across state lines. As a consequence of their actions, they now face punishment in the federal criminal justice system for their crimes. I’d like to thank the Public Corruption Units at both the FBI’s New York Office and the United States Attorney’s Office for the Southern District of New York for their dedicated effort in this case.”
According to the Information and statements made in court:
In or about September 2020, HARRIS and KURLANDER conspired to steal, transport across state lines, and sell personal property that belonged to an individual (the “Victim”) whom HARRIS and KURLANDER knew was an immediate family member of a then-former government official who was a candidate for national political office. The Victim had stored the property, including a handwritten journal containing highly personal entries, tax records, a digital storage card containing private family photographs, and a cellphone, among other things, in a private residence in Delray Beach, Florida, at which HARRIS was temporarily residing. After HARRIS stole the property, she enlisted KURLANDER to help her facilitate its sale. HARRIS and KURLANDER then made contact with an employee of an organization based in Mamaroneck, New York (the “Organization”), who instructed them to use an encrypted application to communicate with the Organization and requested photographs of the Victim’s property. After receiving the photographs, the Organization offered to pay for HARRIS and KURLANDER’s transportation of the property from Florida to New York City. HARRIS and KURLANDER subsequently traveled to New York City with the Victim’s property at the Organization’s expense and met with employees of the Organization. During that meeting, HARRIS described the circumstances of how she had obtained the Victim’s property, provided the property to the Organization, and disclosed that the Victim had stored additional property in the residence where HARRIS continued to have access. After the meeting, and at the Organization’s request, HARRIS and KURLANDER returned to Florida to obtain more of the Victim’s property in order to provide it to the Organization. They later met with an Organization employee in Florida and gave that employee more of the Victim’s stolen property, believing that the Organization would transport or cause the transport of the stolen property from Florida to the Organization’s offices in New York, which the Organization subsequently did. The Organization subsequently paid HARRIS and KURLANDER each $20,000 for the stolen property.
* * *
AIMEE HARRIS, 40, of Palm Beach, Florida, and ROBERT KURLANDER, 58, of Jupiter, Florida, each pled guilty to one count of conspiracy to commit interstate transportation of stolen property, which carries a maximum sentence of 5 years in prison.
The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Under the terms of their plea agreements, HARRIS and KURLANDER each agreed to forfeit $20,000, and KURLANDER agreed to cooperate with the Government.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Jacqueline C. Kelly, Robert B. Sobelman, and Mitzi S. Steiner are in charge of the prosecution.
Florida Man Found Guilty of Hate Crime for Racially-Motivated Attack Against Black Man Driving with his FamilyRead the Press Release
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Roger Handberg for the Middle District of Florida and Special Agent in Charge David Walker of the FBI Tampa Field Office announced that a federal jury in Tampa, Florida, returned a guilty verdict against Jordan Patrick Leahy, 29, for a racially-motivated attack against a Black man who was traveling down a public roadway with his family.
At trial the government introduced evidence that on Aug. 8, 2021, Leahy came upon the victim, J.T., who was driving his daughter and girlfriend home from a family get together, and began threatening J.T., calling him racial slurs, and used his car in an attempt to force J.T. and his family off the road. Leahy’s pursuit of J.T. and his family lasted nearly a mile and half before Leahy sideswiped J.T. as J.T. attempted to evade the attack. Leahy fled the scene of the accident, but stopped at the next red light. J.T. pulled behind Leahy at the light, and Leahy got out of his car, stormed at J.T., and tried to assault him, again yelling racial slurs. When officers from the Pinellas County Sherriff’s Office arrived on the scene, Leahy made numerous statements evidencing his bias motive, including telling the officers that Black people need to be kept “in their areas.”
“Across America, families must be able to freely travel our public streets without fear of being attacked because of race,” said Assistant Attorney General Clarke. “This verdict should send a strong message that the Department of Justice remains firmly committed to prosecuting, to the fullest extent of the law, those who would use violence to enforce heinous racist beliefs.”
“No one should be targeted, threatened, intimidated or assaulted because of their race,” said U.S. Attorney Handberg. “The defendant in this case acted upon his bigoted beliefs and put an entire family and others’ safety at risk. We and our local, state and federal law enforcement partners will not tolerate such behaviors in our community.”
“Hate crimes are not just an attack on an individual, they are an attack on entire communities,” said Special Agent in Charge Walker. “We want to assure the public the FBI will work diligently investigating crimes driven by hate and intolerance. We encourage anyone who believes their civil rights have been violated to report it to the FBI.”
Leahy faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. Leahy was remanded to the custody of the U.S. Marshals pending sentencing.
The case was investigated by the FBI, the Pinellas County Sheriff’s Office and the Florida Highway Patrol. Assistant U.S. Attorney Carlton Gammons for the Middle District of Florida and Trial Attorneys David Reese and Laura-Kate Bernstein of the Civil Rights Division are prosecuting the case.
Florida Man Found Guilty of Hate Crime for Racially-Motivated Attack Against Black Man Driving with his FamilyRead the Press Release
Tampa, FL – Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Roger Handberg for the Middle District of Florida and Special Agent in Charge David Walker of the FBI Tampa Field Office announced that a federal jury in Tampa, Florida, returned a guilty verdict against Jordan Patrick Leahy, 29, for a racially-motivated attack against a Black man who was traveling down a public roadway with his family.
At trial the government introduced evidence that on Aug. 8, 2021, Leahy came upon the victim, J.T., who was driving his daughter and girlfriend home from a family get together, and began threatening J.T., calling him racial slurs, and used his car in an attempt to force J.T. and his family off the road. Leahy’s pursuit of J.T. and his family lasted nearly a mile and half before Leahy sideswiped J.T. as J.T. attempted to evade the attack. Leahy fled the scene of the accident, but stopped at the next red light. J.T. pulled behind Leahy at the light, and Leahy got out of his car, stormed at J.T., and tried to assault him, again yelling racial slurs. When officers from the Pinellas County Sherriff’s Office arrived on the scene, Leahy made numerous statements evidencing his bias motive, including telling the officers that Black people need to be kept “in their areas.”
“Across America, families must be able to freely travel our public streets without fear of being attacked because of race,” said Assistant Attorney General Clarke. “This verdict should send a strong message that the Department of Justice remains firmly committed to prosecuting, to the fullest extent of the law, those who would use violence to enforce heinous racist beliefs.”
“No one should be targeted, threatened, intimidated or assaulted because of their race,” said U.S. Attorney Handberg. “The defendant in this case acted upon his bigoted beliefs and put an entire family and others’ safety at risk. We and our local, state and federal law enforcement partners will not tolerate such behaviors in our community.”
“Hate crimes are not just an attack on an individual, they are an attack on entire communities,” said Special Agent in Charge Walker. “We want to assure the public the FBI will work diligently investigating crimes driven by hate and intolerance. We encourage anyone who believes their civil rights have been violated to report it to the FBI.”
Leahy faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. Leahy was remanded to the custody of the U.S. Marshals pending sentencing.
The case was investigated by the FBI, the Pinellas County Sheriff’s Office and the Florida Highway Patrol. Assistant U.S. Attorney Carlton Gammons for the Middle District of Florida and Trial Attorneys David Reese and Laura-Kate Bernstein of the Civil Rights Division are prosecuting the case.
Florida Man Charged with Fraudulently Obtaining $1 Million in Unemployment Benefits and COVID-19 LoanRead the Press Release
NEWARK, N.J. – A Florida man was arrested for allegedly obtaining more than $1 million in government benefits, U.S. Attorney Philip R. Sellinger announced today.
Michael Blanc, 33, of Miami, Florida, appeared by videoconference in Florida on Aug. 24, 2022, before U.S. Magistrate Judge Chris M. McAliley, who set bond at $250,000.
According to the complaint:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic, including workers who are not ordinarily eligible for unemployment insurance benefits. The CARES Act also enabled the Small Business Association (SBA) to offer funding to business owners through the COVID-19 Economic Injury Disaster Loans (EIDL).
From March 2020 to in or about December 2020, five states paid out approximately $960,000 in unemployment insurance benefits in response to applications that used an internet provider (IP) address associated with Blanc in furtherance of the claim. Law enforcement officers interviewed four people in whose names the claims were made; each said they did not file a claim, authorize anyone to make a claim, or know Blanc.
In July 2020, the SBA provided an EIDL of approximately $65,000 in response to an application in the name of a victim. The loan was transferred to a bank account in Blanc’s name. The IP address used to file the EIDL application is also connected to 67 additional EIDL applications. The SBA provided approximately $250,000 in response to these applications.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered to the victims of his offense.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, in New York, and the United States Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Dale Forrester, Cybercrime Investigations Division, with the investigation leading to the charges. U.S. Attorney Sellinger also thanked the FBI, Miami Division, and the New Jersey Department of Labor & Workforce Development for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Flint Rapper Cliff Mac Charged in Murder-for-Hire PlotRead the Press Release
FLINT– A Flint rapper was charged yesterday for hiring a man to murder a Sterling Heights woman for $10,000 in cash today, announced United States Attorney Dawn N. Ison.
Joining in the announcement were James A. Tarasca, Special Agent in Charge of the Federal Bureau of Investigation, Detroit Division, and Special Agent in Charge Paul D. Vanderplow, Bureau of Alcohol, Tobacco, Firearms and Explosives, Detroit Field Division.
A federal grand jury issued a superseding indictment charging Clifton E. Terry, III, a.k.a. “Cliff Mac,” 31, of Flint with conspiracy to commit murder-for-hire resulting in personal injury, murder-for-hire resulting in personal injury, and using a firearm during and in relation to a crime of violence. The grand jury had previously indicted defendant Andre D. Sims, 25, of Grand Rapids, on March 16, 2022, for his role in the murder-for-hire plot with Terry.
According to the indictment, Terry solicited Sims to murder a female Sterling Heights resident for $10,000 in cash. On November 27, 2020, Sims traveled from Grand Rapids to Flint where he obtained a vehicle. In the early morning of November 28, 2020, Sims drove to the victim’s residence in Sterling Heights and parked across the street. When the victim left her residence several hours later Sims approached her vehicle and fired seven to eight gunshots at the victim. Despite being shot multiple times, the victim survived. The shooting was captured on the victim’s home security system. After the shooting, Sims drove to a nearby apartment complex where he abandoned his vehicle. Shortly thereafter, Terry picked Sims up from the apartment complex. Terry later agreed to pay Sims $2,500 for the failed hit.
Terry is also charged with first degree murder in a separate case in Genesee County Circuit Court for his alleged role in the August 17, 2021, killing of Devaroe Davis.
Sims was recently sentenced to life in prison following his murder conviction in the Kent County Circuit Court for the shooting death of a 65-year-old woman.
Based on the charges of conspiring to commit murder-for-hire and for committing murder-for-hire resulting in personal injury, Terry faces a maximum of twenty years in prison and a fine of up to $250,000. Based on the charge of aiding and abetting the use and discharge of a firearm during a crime of violence, Terry faces a mandatory minimum of ten years in prison and a maximum of life in prison and a fine of up to $250,000.
This case was investigated by special agents of the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms & Explosive, with assistance from the Sterling Heights Police Department, the Flint Police Department, the Drug Enforcement Administration, the Michigan State Police, Oakland County Sheriff’s Office, and the Genesee County Prosecutor’s Office.
The case is being prosecuted by Assistant United States Attorneys Jules DePorre, Anthony Vance, and Tim Turkelson.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Five Men Sentenced to Prison for Armed Carjackings, Firearms ViolationsRead the Press Release
MINNEAPOLIS – Five men have been sentenced to prison for a string of armed carjackings and various firearms violations, announced United States Attorney Andrew M. Luger.
Isaiah Stacy Alstad, 23, pleaded guilty to two counts of aiding and abetting carjacking and was sentenced yesterday before Judge John R. Tunheim to 110 months in prison. James Brock Williams, Jr., 21, and Clifton Germaine Walker, Jr., 25, were previously sentenced to 56 months and 110 months, respectively, for conspiring to use, carry, and brandish firearms during and in relation to armed carjackings. Jordan Sydney Shamah Rhodes, 23, was previously sentenced to 72 months for being a controlled substance user in possession of a firearm. And Joshoamei Deangelo Richardson, 21, was previously sentenced to 84 months in prison for aiding and abetting using, carrying, and brandishing a firearm during and in relation to an armed carjacking. A sixth codefendant, Eric Troy Ballard, Jr., 20, remains in custody pending further proceedings.
According to court documents, between May 2020 and January 2021, the defendants maintained active membership in the street gang known as the “Top 5.” The purpose of the gang was to make money for its members through criminal acts, including thefts, robberies, and distribution and sale of controlled substances. Proceeds of the money obtained through the commission of criminal acts were distributed among the Top 5 members. Top 5 members would use, carry, and possess firearms to commit these criminal acts as well as carry out acts of violence against others, including shootings and assaults. Top 5 members used social media to discuss criminal activity, recruit new members, and display cash, firearms, and controlled substances.
According to court documents, on August 25, 2020, at approximately 2:30 a.m., a victim was carjacked at gunpoint and pistol-whipped near the 1200 block of Jackson Street, in St. Paul. That same day, at approximately 6:50 a.m., a second victim was carjacked at gunpoint in the parking lot of a restaurant near White Bear Avenue in St. Paul. At approximately 9:00 a.m. that same day, a third victim was carjacked at gunpoint on Maria Avenue near Metropolitan State University in St. Paul. All six defendants were charged for their roles in these carjackings and related illegal possession and use of firearms during some of these crimes.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Saint Paul Police Department, the Minneapolis Police Department, the Columbia Heights Police Department, and the South Saint Paul Police Department.
This case is being prosecuted by Assistant U.S. Attorneys Benjamin Bejar and Thomas Calhoun-Lopez.
Five Florida Men Arrested on Charges for Actions During Jan. 6 Capitol BreachRead the Press Release
WASHINGTON — Five Florida men, all self-identified militia members, were arrested today on charges stemming from their actions during the breach of the U.S. Capitol on Jan. 6, 2021. Their actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Four of the defendants -- Benjamin Cole, 38, of Leesburg, John Edward Crowley, 50, ofWindermere, Brian Preller, 33, of Mount Dora, and Jonathan Rockholt, 38, of Palm Coast, Florida – are charged with the felony offense of interfering with a law enforcement officer during a civil disorder. Along with a fifth defendant -- Tyler Bensch, 20, of Casselberry – they also are charged with the misdemeanor offenses of entering and remaining in a restricted building or grounds and disorderly and disruptive conduct in a restricted building or grounds.
Crowley, Rockholt, and Bensch were arrested in Florida and are making their initial court appearances today in the Middle District of Florida. Cole, who was arrested in Louisville, is making his initial court appearance in the Western District of Kentucky. Preller, who was arrested in
Rutledge, Vermont, is making his appearance in the District of Vermont.
According to court documents, the five men self-identified as members of the “B Squad,” a subgroup of a militia-style, Florida based organization known as the “Guardians of Freedom,” which adheres to the ideology of the “Three Percenters.” They traveled to Washington, D.C., with others in the “B Squad” and stayed at a hotel on Jan. 5, 2021. On Jan. 6, the five defendants were among those illegally gathered on the Capitol grounds. Cole wore a tactical vest. Preller wore a tactical vest with a chemical irritant spray attached to the front, as well as large goggles and a green helmet with the word “monster” on the back. He also carried a long black walking stick and wore a shirt that read
“waterboarding instructor.” Rockholt wore a tactical vest and carried what appeared to be a knife in his front right pocket; he also wore a baseball helmet. Bensch wore a tactical vest, as well as a military-style helmet with goggles and a black gas mask. He also carried a chemical irritant in front of the vest.Cole, Crowley, Preller and Rockholt were in a group that engaged in a confrontation with law enforcement officers in the tunnel area of the Capitol’s Lower West Terrace. Bensch remained just outside. While inside the tunnel, Cole, Preller, Crowley and Rockholt confronted and assisted the crowd in confronting the officers that were preventing the tunnel and Capitol from being breached.
They added their force, momentum, bodies, and efforts to the other rioters in a “heave-ho” effort that put pressure on the police line. As a direct result of the actions of the rioters in the tunnel at that time, the mob penetrated deeper, pushing the police line back.Once officers finally were able to repel Cole, Preller, Crowley, Rockholt, and others from the tunnel, Rockholt picked up a clear riot shield with a Capitol Police seal before leaving the area.
Bensch, meanwhile, used one of his chemical irritants to spray the face of an individual who was an unknown member of the crowd, even though that person posed no threat to him.This case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Offices for the Middle District of Florida, the District of Vermont, and the Western District of Kentucky.
The case is being investigated by the FBI’s Washington, Jacksonville, Tampa, Boston, and
Albany Field Offices. Valuable assistance was provided by the U.S. Capitol Police and the
Metropolitan Police Department.In the 19 months since Jan. 6, 2021, more than 860 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 260 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Fineview Felon Admits Illegally Possessing Various Drugs and a Stolen PistolRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, has pleaded guilty to federal drug distribution and firearms charges, United States Attorney Cindy K. Chung announced today.
Clarence Thomas, age 29, of the City’s Fineview section, pleaded guilty to one count of Possession with Intent to Distribute Quantities of Heroin and Fentanyl and one count of Possession of a Firearm by a Convicted Felon, before Senior United States District Judge David S. Cercone.
According to information presented to the court, on Nov. 10, 2019, City of Pittsburgh Police executed a search warrant at Thomas’s residence following surveillance of apparent drug trafficking activity. Officers seized quantities of heroin, fentanyl, cocaine, crack cocaine, and marijuana, as well as an illegally possessed Ruger pistol that had been previously reported as being stolen. Thomas had a prior felony conviction for possession with intent to deliver a controlled substance and, as such, was legally forbidden from possessing a firearm.
Sentencing is scheduled for Dec. 7, 2022. The law provides for a maximum total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Thomas has been granted bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Pittsburgh Bureau of Police conducted the investigation leading to the indictment in this case.
Former Romulus Mayor Pleads Guilty to Wire FraudRead the Press Release
DETROIT – Former Romulus Mayor LeRoy Burcroff, 58, of Romulus, pleaded guilty today to wire fraud following his theft and misuse of over $15,000 in campaign funds, United States Attorney Dawn N. Ison announced.
Ison was joined in the announcement by James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Burcroff was elected mayor of the City of Romulus in 2014. As part of his election efforts, Burcroff established a committee to elect (CTE) fund entitled, “Committee to Elect LeRoy D. Burcroff.”
Over the next two-and-a-half years, Burcroff devised and executed a scheme to defraud donors to his CTE account by fraudulently using these funds for his personal benefit rather than for his election. For example, in November 2017, Burcroff spent over $6,000 in campaign funds to pay for a family member’s wedding. Burcroff spent the CTE money on a church fee, a banquet room rental, flowers, and a $4,500 bill for alcohol. In 2017 and 2018, Burcroff used CTE funds to pay over $11,600 in dues and expenses to the Belleville Yacht Club (BYC) which he used for his personal benefit. On multiple occasions, Burcroff overpaid his dues using his CTE account thereby causing the BYC to write him a check for $2,000 in December of 2017. Burcroff deposited this money into his personal bank account. In 2018, Burcroff made a $1,000 donation of CTE funds to a trade industry for his personal benefit. In 2019, Burcroff spent $3,000 of campaign funds on a personal vacation to Florida.
The wire fraud charge carries a maximum sentence of 20 years’ imprisonment and a fine of $250,000.
United States Attorney Ison said, “The citizens of the Eastern District deserve to be served by public officials of the highest integrity. Those who abuse positions of trust by misusing campaign donations for their own benefit will face stiff consequences. Today’s plea represents our commitment to ensuring the citizens of Michigan have the utmost trust in our campaign finance system.”
“Burcoff betrayed his supporters and neighbors, the people of Wayne County, by embezzling their donations to fund his lifestyle,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “The FBI prioritizes exposing corrupt public officials whose greed erodes the public’s confidence in government.”
The case was investigated by the Detroit Area Corruption Task Force, which is led by the Federal Bureau of Investigation, with assistance from the Detroit Police Department, Michigan Attorney General's Office, Customs & Border Protection, and the U.S. Department of Homeland Security. The case is being prosecuted by Assistant U.S. Attorney Eaton P. Brown
Ex-Bank Branch Manager Sentenced for EmbezzlementRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a former BBVA branch manager for embezzling funds from the bank where she was employed, announced U.S. Attorney Prim F. Escalona and U.S. Secret Service Special Agent in Charge Patrick M. Davis.
U.S. District Court Judge Corey L. Maze sentenced Dorinda Lynn Lumpkin, 48, of Gadsden, to twelve months and one day in prison for embezzlement. Lumpkin pleaded guilty to the charge in January.
According to the plea agreement, Lumpkin was employed as a branch manager at a BBVA bank in Gadsden. Between January 2017 and June 2020, Lumpkin stole at least $184,250.00 from BBVA accounts associated with a deceased customer and her daughter. To do so, she prepared and approved debit tickets authorizing the transactions, which were purportedly signed by the deceased customer’s daughter. The defendant then withdrew the funds from those accounts and converted them to her own use.
“The defendant abused her position as a bank employee and used it to steal money from a grieving family,” U.S. Attorney Escalona said. “We thank our outstanding law enforcement partners at the United States Secret Service for bringing her to justice and for their continued efforts to safeguard America’s financial systems.”
“For more than three years, the defendant violated the trust that had been bestowed upon her by her employer and those customers she served,” SAC Davis said. “It is appalling that an individual would take advantage of a family during their darkest time. The U.S. Secret Service is committed to bringing these types of individuals to justice.”
The U.S. Secret Service Cyber Fraud Task Force investigated the case. Assistant U.S. Attorney Edward J. Canter prosecuted the case.
Eagle Butte Man Sentenced for LarcenyRead the Press Release
United States Attorney Alison J. Ramsdell announced that an Eagle Butte, South Dakota, man convicted of Larceny was sentenced on August 22, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Randall Bear Eagle, age 38, was sentenced to 18 months in federal prison, followed by two years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bear Eagle was indicted by a federal grand jury in April of 2022. He pleaded guilty on May 19, 2022.
The conviction stemmed from an incident that occurred on November 16, 2022, in Eagle Butte. Bear Eagle was on foot, when he located a 2017 Ford Explorer that was parked in the driveway of a residence. Bear Eagle got in and began to back the vehicle out of the driveway, when the owner of the vehicle heard someone entering her car. When she saw Bear Eagle backing out of the driveway, she and another individual ran outside to prevent Bear Eagle from driving off, but were unsuccessful. The vehicle was reported stolen. Law enforcement later located Bear Eagle and the vehicle at a location 33 miles north of Eagle Butte. The vehicle was pulled over and Bear Eagle was arrested. The vehicle was valued at over $17,000.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bear Eagle was immediately remanded to the custody of the U.S. Marshals Service.
Dominican Drug Lord extradited to the United States from the Dominican Republic to Face Drug Trafficking ChargesRead the Press Release
SAN JUAN, Puerto Rico –Dominican authorities extradited Consolidated Priority Organizational Target (CPOT) Julio De Los Santos-Bautista, also known as “Julito Kilo,” to the United States to face drug trafficking charges filed in the District of Puerto Rico.
“This successful extradition demonstrates the commitment of the Department of Justice to support our law enforcement partner agencies and our strong working relationship with dedicated foreign partners who assist in apprehending drug trafficking criminals wherever they may be hiding,” said U.S. Attorney W. Stephen Muldrow. “We will continue to maximize our multi-agency efforts to bring to justice those who disregard our laws and smuggle drugs into Puerto Rico and the continental United States.”
Julio De Los Santos-Bautista was the leader of a transnational criminal organization (TCO) based in the Dominican Republic. This TCO received multi-ton shipments of cocaine from South America through the Dominican Republic and then transported these to Puerto Rico and the continental United States.
On July 14, 2021, a Federal Grand Jury in the District of Puerto Rico returned a superseding indictment against De Los Santos-Bautista charging him with Conspiracy to Distribute Cocaine for the Purpose of Unlawful Importation, Conspiracy to Import Cocaine, and Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel Subject to the Jurisdiction of the United States. The Indictment includes a narcotics forfeiture allegation of $25,000,000.
The investigation, Operation El Patron, was jointly conducted with the collaboration of CCSF partner agencies: Coast Guard Investigative Services (CGIS), Drug Enforcement Administration (DEA), Homeland Security Investigations (HSI), and the U.S. Marshals Service.
The Attorney General designated De Los Santos-Bautista as an OCDETF Consolidated Priority Organizational Target (CPOT) in 2020. The Attorney General’s (AG) Interagency CPOT list is comprised of leaders who exercise “command and control” of the elements of the most prolific drug trafficking/money laundering organizations that have the greatest impact on the United States’ illicit drug supply. The CPOT list represents the “most wanted” of the cartel leadership and ensures that the full capabilities of the U.S. government are focused, in a coordinated and clear manner, on a group of agreed-upon high-level targets.
The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of De Los Santos-Bautista from the Dominican Republic. The Department of Justice also recognizes the significant collaboration provided by authorities in the Dominican Republic.
The case is being prosecuted by Assistant U.S. Attorney Max J. Pérez-Bouret, Chief of the Transnational Organized Crime Section, and Assistant U.S. Attorney Vanessa Bonhomme, Deputy Chief of the Transnational Organized Crime Section.
If convicted, De Los Santos-Bautista faces a possible minimum sentence of 10 years and up to life in prison for all the drug trafficking charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations. The specific mission of the Caribbean Corridor Strike Force is to identify, disrupt, and dismantle large scale international drug trafficking and money laundering organizations importing and further transshipping cocaine, as well as money laundering activities.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Department of Justice Announces the Opening of Nominations for the Sixth Annual Attorney General's Award for Distinguished Service in Community PolicingRead the Press Release
Today, Attorney General Merrick B. Garland announced the Department of Justice is now accepting nominations for the Sixth Annual Attorney General’s Award for Distinguished Service in Community Policing. Through this award, the Department of Justice honors the incredible work our nation’s law enforcement does to keep our communities and our country safe.
“Every day, law enforcement officers across the country work to forge and maintain strong community ties that are essential for ensuring public safety,” said Attorney General Garland. “The Department of Justice cannot fulfill its public safety mission without such critical efforts, and this award is just one way the Department says ‘thank you’ to our law enforcement partners.”
The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local, Tribal, and territorial police officers, deputies, and troopers for exceptional efforts in community policing. The awarded officers, deputies, and troopers will have demonstrated active engagement with the community in one of three areas: innovations in community policing, criminal investigations, or field operations. Within each category, an award will be given to law enforcement agencies serving small, medium, and large jurisdictions. Those agency sizes are defined as follows:
- Small: agencies serving populations of fewer than 50,000.
- Medium: agencies serving populations of 50,000 to 250,000.
- Large: agencies serving populations of more than 250,000.
By acknowledging and rewarding these efforts, the Department strives to promote and sustain its commitment to community policing and to advance proactive policing practices that are fair and effective. With the Attorney General’s Award for Distinguished Service in Community Policing, the Justice Department recognizes that the nation’s law enforcement agencies, officers, deputies, and troopers continue to work tirelessly to keep our communities safe.
The deadline for nominations is Sept. 23, 2022 at 8 p.m. (ET). More information and the application for nominees can be found at: www.justice.gov/ag/policing-award.
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Denver Company Pays $194,000 to Resolve Claims It Took Federal Minerals Without PermissionRead the Press Release
DENVER—The United States Attorney’s Office t0day announced that PDC Energy, Inc., an oil and gas company headquartered in Denver, Colorado, has paid $194,000 to resolve allegations that it drilled, and then operated, an oil and gas well that removed federal minerals without permission.
In order to access federal minerals managed by the Bureau of Land Management (“BLM”), oil and gas exploration companies must first obtain a federal lease and a BLM-issued permit to drill an oil and gas well. The federal lease includes an obligation to pay a mineral royalty to the United States for the federal minerals produced from the well. Taking minerals without permission is considered a trespass.
The United States contends that in 2015, PDC drilled a well into federal minerals in Weld County, Colorado, without first obtaining the necessary permissions. The United States further contends that PDC then operated that well for several years without paying compensation to the United States for the minerals it extracted. PDC notified the United States of this well after a prior investigation and settlement with PDC involving mineral trespass. PDC fully cooperated with the investigation.
“Federal public lands belong to all of us, and protecting them is a priority for our office,” said U.S. Attorney Cole Finegan. “Oil and gas companies that wish to drill on federal lands and take minerals owned by the public must obtain permission.”
“This settlement is the direct result of the Department of the Interior’s Office of the Inspector General, the Bureau of Land Management, and the Office of the Solicitor working collaboratively and diligently with the Department of Justice to protect our nation’s mineral resources and ensure that public revenues are collected on behalf of all American taxpayers,” said Ron Gonzales, Special Agent in Charge for the Department of the Interior, Office of Inspector General’s Energy Investigations Unit.
“The BLM is responsible for the management of the public’s energy and mineral resources. We take that responsibility seriously both to ensure the public receives the compensation due and to enable stewardship of impacted lands and resources,” said BLM Colorado State Director Doug Vilsack.
This case was handled by Assistant U.S. Attorney Andrea Wang.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Defendant sentenced to 130 months in prison for providing deadly dose of fentanyl to Imperial County High School StudentRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Larry Casper (619) 546-6734
SAN DIEGO – Lorenzo Anthony Garcia of Brawley, 23, was sentenced in federal court today to 130 months in prison and three years of supervised release for providing the fentanyl that caused the overdose death of Josue M. Garcia Moreno, a young football player from Central Union High School in Imperial County. When issuing the sentence, U.S. District Court Judge Gonzalo Curiel noted the importance of ensuring a significant consequence to deter future similar acts, stating that “fentanyl is a drug so powerful that it takes a life in the blink of an eye. There is no recovery, no redress, no rehabilitation. Just misery.”
On October 8, 2021, Garcia pleaded guilty to knowingly selling Josue, a 15-year old high school student, a substance containing fentanyl on October 6, 2019. The plea agreement reflects that two days later, Josue’s great-grandfather, with whom he lived, discovered him lifeless. Garcia admitted that Josue used the fentanyl Garcia sold him at his grandfather’s home late in the evening or October 7, 2019 or early the following morning; he further stipulated that the fentanyl he provided caused Josue’s death. At the hearing, the prosecutor noted that even though Garcia was aware Josue had died, he thereafter arranged to sell fentanyl to another individual, a circumstance that Judge Curiel found “most troubling.”
“This case is a tragic reminder that a promising young life can vanish in an instant due to a single mistake with fentanyl,” said U.S. Randy Grossman. “It is vitally important to hold purveyors of this poison accountable, obtaining justice and closure for family members who face such a loss.” Grossman thanked the prosecution team and investigating agencies for their excellent work on this case.The Southern District of California is an epicenter for the trafficking of synthetic fentanyl, a drug that is
30 to 50 times more powerful than heroin, rendering even a tiny amount potentially deadly. Recently released statistics reflect that more than 60% of the nation’s fentanyl border seizures by U.S. Customs and
Border Protection occur in San Diego and Imperial Counties.“The U.S. Attorney’s office is working with multiple law enforcement and community partners to vigorously attack the fentanyl problem on all fronts, including interdiction, prosecution of cartel targets and local dealers, and prevention through harm reduction and education,” Grossman said. “We are using every available tool to combat this deadly epidemic and stop these tragic losses.” Grossman encouraged parents to learn about fentanyl and talk with their children about the deadly consequences of taking pills not prescribed to them. Those interested in learning more can consult an online Fentanyl Tool Kit the U.S.
Attorney’s Office helped to create to provide vital information to the community regarding fentanyl: https://www.sdpdatf.org/community-parent-fentanyl-toolkit“In the age of fentanyl, it’s critical that we all work together to educate teenagers about the dangers of drugs. Sadly, fentanyl cost Josue Garcia Moreno his life and the potential for a bright future,” said DEA
Special Agent in Charge Shelly S. Howe. “The DEA has resources available for parents, grandparents, and educators at www.getsmartaboutdrugs.gov to assist in talking to teenagers about drugs. We urge families to use DEA’s resources and to advocate for drug education classes in your schools.”Under federal law, sellers and suppliers of drugs that cause death or serious bodily injury may face a 20- year mandatory minimum sentence. In recent years, the U.S. Attorney’s Office has charged dozens of alleged dealers with that 20-year mandatory minimum offense – including today’s case.
Grossman urged users who experiment with fentanyl and those who have a loved one with Substance Use
Disorder to obtain Naloxone, which can reverse the effects of opioid overdose and save lives.DEFENDANT Case Number 20cr1222 GPC
Lorenzo Anthony Garcia Age: 23 Brawley, CA
SUMMARY OF CHARGE
Distribution of Fentanyl – Title 21, U.S.C., Sections 841(a)(1)
Maximum penalty: 20 years in prison and $1,000,000 fine
AGENCIES
Drug Enforcement Administration
El Centro Police DepartmentCrawford County man sentenced to 3+ years in prison on child enticement chargeRead the Press Release
ST. LOUIS – U.S. District Judge Ronnie L. White on Wednesday sentenced a Crawford County man who thought he’d arranged to have sex with a 14-year-old to 42 months in prison.
In June of 2019, Jeffrey D. Williams, now 49, communicated over Kik Messenger with an individual he believed to be a 14-year-old living in Texas. Williams offered to drive to Texas to pick up the minor and bring her to Missouri for the purpose of engaging in sexual contact.
Williams pleaded guilty Oct. 28 to one count of coercion and enticement of a minor.
In addition to the conduct giving rise to the plea, Williams further admitted that in April of 2020, he drove to an Applebee’s restaurant in Franklin County, Missouri, thinking he was going to have sex with a woman and her 14-year-old daughter. Williams had actually been corresponding online with an FBI agent and was placed under arrest.
The case was investigated by the FBI. Assistant U.S. Attorney Jillian Anderson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department of Justice Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cooke County School Bus Driver Sentenced for Child Exploitation ViolationsRead the Press Release
SHERMAN, Texas – A Lake Kiowa, Texas man has been sentenced to federal prison for child exploitation violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
David Wayne Woods, 70, pleaded guilty on March 22, 2022, to coercion and enticement of a minor and was sentenced to 135 months in federal prison today by U.S. District Judge Amos L. Mazzant.
According to information presented in court, in July 2019, HSI-Dallas agents encountered Woods at the Dallas-Fort Worth International Airport as he was returning from a trip to the Philippines. Agents conducted a border inspection, during which time they conducted an extraction and review of Woods’ cell phone and laptop computer. During the investigation it was determined that Woods, a school bus driver in Cooke County, Texas, had been communicating with minor females from the Philippines using a social media application.
From April 2019 through July 2019, Woods engaged in sexually explicit chats with a female who he knew was a minor. Woods messaged the child with descriptions of sexually explicit acts that he wanted to perform on her and repeatedly asked the child to take videos and photos of her nude body and to record herself engaging in sexually explicit conduct. Woods offered the child money for the videos and photos and sent wire transfers of small sums of currency when he received the videos and photos. On July 5, 2019, Woods met the child at a hotel in the Philippines, at which time he provided her with cash, chocolates, and a cellular phone in exchange for the child engaging in sexual acts with Woods. Woods then recorded the sex acts with his cellular phone.
“Woods traveled thousands of miles to victimize children thinking he could not possibly be caught for his deviant crimes,” said U.S. Attorney Brit Featherston. “In all his scheming, he failed to factor in our law enforcement partners at the airport and abroad. Members of the Philippine National Police and HSI agents stationed in the Philippines did an extraordinary job in identifying the minor victims and ensuring Woods would be justly punished for his crimes.”
“When it involves international cases of this magnitude, Homeland Security Investigations (HSI) is a top-tier law enforcement agency never relenting in our efforts to apprehend and convict criminals who prey on innocent minors,” said Jesse Woods, Assistant Special Agent in Charge for HSI Dallas. “This investigation illustrates how our agency and law enforcement partners across the globe worked seamlessly to end these crimes, stopping at nothing in pursuit of this dangerous child sex predator.”
This case is part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by Homeland Security Investigations-Dallas and the Philippines, Customs and Border Protection, and the Philippine National Police. This case was prosecuted by Assistant U.S. Attorney Marisa Miller.
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Convicted Racketeer Who Illegally Re-Entered the U.S. Sentenced to Nearly Four Years in Federal PrisonRead the Press Release
Ocala, Florida – Senior U.S. District Judge John Antoon II today sentenced Ignacio Felix-Salinas (52, Tijuana, Mexico) to 46 months in federal prison for illegal reentry by a previously-deported alien. Felix-Salinas had pleaded guilty on May 25, 2022.
According to court documents, Felix-Salinas is a citizen of Mexico and not a citizen of the United States. He was previously deported to Mexico in 2004 and 2009. Prior to his first deportation, Felix-Salinas was convicted in federal court of racketeering in connection with the trafficking of more than 12,500 kilograms of marijuana and also has two prior felony convictions in California for carrying a loaded firearm in public and, possession of a firearm by a convicted felon.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Convicted Methamphetamine Trafficker Sentenced to 46 Months in Federal Prison for Illegal Re-EntryRead the Press Release
Ocala, Florida – Senior U.S. District Judge John Antoon II today sentenced Jorge Cesar Ferretiz-Hernandez (42, San Luis) to 46 months in federal prison for illegal reentry by a previously-deported alien. Ferretiz-Hernandez had pleaded guilty on May 25, 2022.
According to court documents, Ferretiz-Hernandez is a citizen of Mexico and not a citizen of the United States. He was previously deported to Mexico in 2011 and 2018. Prior to his first deportation, he was convicted in federal court of conspiring to distribute approximately eight pounds of methamphetamine. In 2017, he was convicted of providing false information to a law enforcement officer to conceal his immigration status.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney William S. Hamilton.
Convicted Felon Who Brandished Glock Pistol with Extended Magazine on Instagram Video Sentenced to More Than Four Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Devontae D. Hunter (25, Tampa) to four years and nine months in federal prison for possessing a firearm as a convicted felon.
According to court documents, Hunter brandished a Glock pistol with an extended magazine in a video “story” that he uploaded to his Instagram account on September 11, 2021. Two days later, during a traffic stop, Hunter fled from law enforcement officers on foot and dropped the same Glock pistol he had displayed in the Instagram video. The pistol was configured with an extended magazine and loaded with 20 rounds of ammunition. Hunter had previously been convicted of several felony offenses, including possession of a firearm as a convicted felon, robbery, and aggravated battery on a law enforcement officer. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Tampa Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorneys David W.A. Chee and Callan Albritton.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Convicted Felon Sentenced on Gun ChargeRead the Press Release
BIRMINGHAM, Ala. – A federal judge sentenced a convicted felon this week for illegally possessing firearms, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Mickey French.
United States District Judge Abdul K. Kallon sentenced Ervin Deangelo Fields, 31, of Birmingham, to 46 months in prison followed by 36 months of supervised release. Fields pleaded guilty to being a felon in possession of a firearm in June 2022.
“Felons who possess illegal firearms have a negative effect on the work we are doing to drive down violent crime,” U.S. Attorney Escalona said. “The United States Attorney’s Office will continue to work with federal, state, and local law enforcement partners to do all that we can to protect our communities and to prevent firearms from coming into the possession of prohibited people.”
“This individual knowingly and willingly continues to illegally possess firearms,” SAC French said. “The ATF along with our local, state and federal partners will continue to remove these individuals from the communities that we serve.”
According to court documents, on two separate occasions Fields illegally possessed firearms. On January 8, 2021, Fields possessed a Canik 9mm pistol and on June 11, 2020, Fields possessed a Smith and Wesson 9 mm pistol. Fields is prohibited from possessing firearms due to prior felony convictions, including theft and possession of a controlled substance.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The ATF investigated the case, along with Birmingham Police Department and Alabama Law Enforcement Agency. Assistant U.S. Attorney Darius C. Greene prosecuted the case.
Colorado Victims’ Rights Organization Receives Department of Justice GrantRead the Press Release
DENVER – The Department of Justice announced today nearly $50 million in Office on Violence Against Women (OVW) grants to provide survivors of gender-based violence with access to legal services and improve effective coordination of justice systems impacting victim and family safety. Specifically, OVW awarded a total of $35,659,296 to 59 grantees under the Legal Assistance for Victims Program, which addresses the legal needs of survivors of sexual assault, domestic violence, dating violence, and stalking. This includes $600,000 awarded to the Rocky Mountain Victim Law Center in Denver. In addition, earlier this month, OVW’s Justice for Families Program awarded $14,191,208 to 26 projects that aim to improve the response of the civil and criminal justice systems to families with a history of domestic violence. The Justice for Families Program also supports supervised visitation and safe exchange of children.
“These grants will help expand access to the services and support that are essential to bringing justice within reach for survivors of gender-based violence,” said Attorney General Merrick B. Garland. “The Department’s Office on Violence Against Women will continue its important work to empower survivors with the resources they need to navigate our justice system, including by expanding access to legal representation, language assistance, and court-related programs.”
“These grants demonstrate that the Department of Justice and the U.S. Attorney’s Office are committed to fighting for victims’ rights,” said U.S. Attorney Cole Finegan. “Our office has dedicated professionals working to make sure victims are heard and their needs are addressed, so that they can seek justice.”
“Legal services and systems, including family courts, have a tremendous impact on survivors’ and their families’ livelihood, wellbeing, and freedom,” said OVW Acting Director Allison Randall. “Meaningful representation for survivors is vital, but can be difficult to attain in the aftermath of violence, or when someone is still trying to find safety. Grantees under OVW’s Legal Assistance for Victims and Justice for Families Programs help survivors navigate complicated processes and potentially dangerous points along the way, including supervised visitation, protection orders, and divorce.”
In addition to addressing survivors’ civil and criminal legal needs, the Legal Assistance for Victims Program expands pro bono legal assistance for survivors. The Justice for Families Program also finances court and court-related programs, provides legal assistance for survivors, and supports training for court personnel, child protective services workers, and others.
Later this year, OVW will launch the new Expanding Legal Services Initiative (ELSI) under the Legal Assistance for Victims Grant Program. ELSI will support entities that do not yet have a legal representation program and need assistance establishing one. Grantees will receive specific training to help create a legal program from the ground up, while prioritizing racial equity and underserved communities. OVW will release the solicitation for this new initiative in the fall. Eligible applicants include nonprofit organizations and tribal governments or tribal organizations that intend to establish a program to provide legal representation to victims of sexual assault, domestic violence, dating violence, or stalking. OVW will provide additional details at upcoming informational virtual events and answer questions from participants. Registration for virtual events will be added as it becomes available:https://www.justice.gov/ovw/events.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more atwww.justice.gov/ovw.
Colombian National Sentenced to over 17 Years for His Role in Dispatching Vessels Carrying Cocaine Intended for Distribution in the United StatesRead the Press Release
Tampa, Florida – U.S. District Judge Mary S. Scriven has sentenced Omar Olmedo Paredes (55, Cocal Payan, Colombia) to 17 years and 6 months in federal prison for conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine while on board a vessel subject to the jurisdiction of the United States. Olmedo Paredes had pleaded guilty on March 31, 2022.
According to court documents, on June 17, 2015, and March 5, 2016, the United States Coast Guard (USCG) interdicted vessels in international waters. Each vessel was carrying over 500 kilograms of cocaine, and the USCG seized over 1,100 kilograms of cocaine from the two vessels. Crewmembers on both vessels stated that Olmedo Paredes was one of the individuals in charge of dispatching the vessels from a small inlet in Cocal Payan, Colombia. Olmedo Paredes hired mariners, put crewmembers in contact with other coconspirators in Colombia, had mariners stay at his house awaiting the launch of the vessels, provided engines for the vessels, gave orders, and resolved issues that arose. Olmedo Paredes and another individual brought the bales of cocaine to the launch site and counted them or instructed mariners to count them. Before dispatching the drug-laden vessels, Olmedo Paredes provided a captain with instructions and coordinates and dispatched surveillance vessels. The conspirators intended the cocaine to be distributed in the United States.
A federal grand jury indicted Olmedo Paredes in 2018, and he was arrested in Colombia in 2019. In 2021, Olmedo Paredes was extradited to the United States for prosecution in this case.
This case was investigated by the Panama Express Strike Force, an Organized Crime Drug Enforcement Task Force (OCDETF) comprised of agents and analysts from the United States Coast Guard Investigative Service, the Drug Enforcement Administration, the Federal Bureau of Investigation, Homeland Security Investigations, the Naval Criminal Investigative Service, and U.S. Southern Command’s Joint Interagency Task Force South. 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. The case was prosecuted by Assistant United States Attorney Michael C. Sinacore.
Cleveland Man Sentenced to Prison for Providing a False Statement to a Firearms Dealer, Illegal Possession of Ammunition and Possession with Intent to Distribute DrugsRead the Press Release
CLEVELAND - Andre Hunt, 24, of Cleveland, Ohio, was sentenced to 61 months in prison by U.S. District Judge Dan Aaron Polster on Wednesday, Aug. 24, 2022. Hunt previously pleaded guilty to providing a false statement to a firearms dealer in Ashtabula, Ohio, in order to purchase a weapon, illegal possession of ammunition and possession with intent to distribute fentanyl, heroin and methamphetamine.
According to court documents and statements made during the sentencing hearing, Hunt was released from prison on July 22, 2020, following a 2015 conviction in the Ashtabula County Court of Common Pleas of two counts of felony aggravated robbery.
Shortly after his release, on Aug. 21, 2020, Hunt gave a false statement to a licensed firearms dealer in Ashtabula in an attempt to purchase a pistol. Court documents state that Hunt claimed he had never been convicted of a felony when, in fact, he had previously been convicted of felony charges.
Following this incident, on Oct. 1, 2020, court documents state that Hunt was found to be in possession of fentanyl, heroin, methamphetamine and fourteen rounds of ammunition. Hunt is prohibited from possessing ammunition due to his previous felony conviction.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Crime Enforcement Agency of Ashtabula County (CEAAC) and the Ashtabula Police Department. This case was prosecuted by Assistant U.S. Attorney Jason M. Katz.
Chippewa Valley Financial Advisor Sentenced to 84 Months for Fraud SchemeRead the Press Release
MADISON, WI. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Michael Shillin, 33, formerly of Eau Claire, Wisconsin was sentenced today by Chief U.S. District Judge James D. Peterson to 84 months in federal prison for orchestrating a scheme to defraud his clients as well as committing bank fraud. Shillin pleaded guilty to these charges on May 23, 2022.
Shillin previously had been remanded into custody on April 14, 2022, because he took a vacation to St. Thomas in violation of his terms of pretrial release that forbade him for traveling outside of the State of Wisconsin.
Shillin worked as a financial advisor with clients throughout the Chippewa Valley and beyond. He pleaded guilty to a three-part wire fraud scheme in which he (1) misled his clients by telling them that they owned shares of pre-IPO stock in high-profile companies such as Space-X and Palantir; (2) misled his clients into believing they had long-term care insurance policies when they did not; and (3) misled his clients into believing they were eligible for tax benefits when they were not. As the scheme unraveled, Shillin used fraudulent collateral to obtain two bank loans in the aggregate amount of $462,000 to continue the scheme.
At sentencing, Judge Peterson emphasized the need to impose a sentence for this “pretty horrifying crime” that reflected the suffering that Shillin inflicted on his victims. Based on the record at sentencing, Judge Peterson called Shillin “resolutely dishonest” and a “very selfish person.” He rejected Shillin’s argument that Shillin lied in a misguided attempt to make his clients feel good, but instead stated that Shillin “lied to make [himself] feel good.” Judge Peterson noted that the victims should not feel bad about being defrauded because they were defrauded by a “highly skilled manipulator” who had “vast experience in deceit.”
The charges against Michael Shillin were the result of an investigation conducted by the Federal Bureau of Investigation; the U.S. Department of Labor, Employee Benefits Security Administration; and the Eau Claire and Altoona Police Departments. The Wisconsin Department of Financial Institutions provided assistance. The prosecution of the case was handled by Assistant U.S. Attorneys Zachary J. Corey and Aaron Wegner.
Charlotte Medical Device and Equipment Manufacturer Agrees to Pay over $780,000 to Resolve Allegations of False Claims Act ViolationsRead the Press Release
CHARLOTTE, N.C. – Charlotte-based BSN Medical Inc. (BSN) has agreed to resolve allegations that it marketed and promoted various products that did not meet the Medicare or Medicaid program’s reasonable and necessary requirements, thereby causing the submission of false claims for payment to the health care programs, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. BSN agreed to pay $785,672.14 to resolve the allegations.
Tamala Miles, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) for the region including North Carolina, joins U.S. Attorney King in making today’s announcement.
BSN is a medical device and equipment manufacturer located in Charlotte, that specializes in the areas of compression therapy, wound care and orthopedics. The settlement resolves allegations that from January 1, 2015 through December 31, 2017, BSN marketed and promoted various products that were not reimbursable because BSN had either not obtained approval from the Medicare Pricing, Data Analysis and Coding (PDAC) contractor, or for which PDAC approval had expired, in connection with three Healthcare Common Procedural Coding System (HCPCS) Codes, specifically, E2607, L0625 and L0626.
The allegations arose from a lawsuit filed by a whistleblower under the qui tam provisions of the federal False Claims Act and multiple state false claims act statutes. Under the federal False Claims Acts, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act also allows the government to intervene and take over the action. The government conducted the investigation and intervened in this action to effectuate the settlement.
The settlement is a result of the coordinated effort between the Department of Health and Human Services Office of the Inspector General, a National Association of Medicaid Fraud Control Units (NAMFCU) Team, which included representatives from the Offices of Attorneys General from the states of North Carolina and Indiana, and the United States Attorney’s Office for the Western District of North Carolina.
The lawsuit resolved by this settlement is United States et al. ex rel. Bruce Carroll v. BSN Medical, Inc., et al. (3:17-CV-480), filed in the Western District of North Carolina. The claims resolved in this settlement are allegations only and there has been no determination of liability.
Butte man sentenced to more than six years in prison for distributing meth, fentanylRead the Press Release
MISSOULA — A Butte man who admitted to distributing methamphetamine and fentanyl in the community was sentenced today to six years and five months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Cody Scott Shuler, 29, pleaded guilty in May to distribution of controlled substances.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that law enforcement learned from various sources of Shuler’s drug distribution activities around Butte. In January, law enforcement conducted a controlled buy from Shuler in which he sold meth and 23 counterfeit Oxycodone pills that contained fentanyl. Shuler admitted to law enforcement to making trips to Spokane to purchase drugs. The government also alleged that Shuler threatened others with a pistol and “pistol whipped” an individual.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration and the Montana Division of Criminal Investigation.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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Boston Man Indicted on Firearm and Ammunition OffenseRead the Press Release
BOSTON – A Boston man has been indicted by a federal grand jury in Boston for his alleged unlawful possession of a firearm and ammunition.
Victor Florentino, 27, was indicted on one count of being a felon in possession of a firearm and ammunition. Florentino was released on conditions following an initial appearance today in federal court in Boston before U.S. District Court Magistrate Judge M. Page Kelley.
According to the indictment, during a motor vehicle stop by local law enforcement on April 28, 2022 in Quincy, Florentino was found in possession of a Glock 9mm pistol and 15 rounds of ammunition. Florentino is prohibited from possessing a firearm or ammunition due to a prior felony conviction in 2016 for firearms trafficking.
The felon in possession charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Rachael S. Rollins; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; and Quincy Police Chief Paul Keenan made the announcement today. Assistant U.S. Attorney John Dawley of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Bloomfield Man Sentenced to More Than 6 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JAIME HOLT, 39, of Bloomfield, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 76 months of imprisonment, followed by three years of supervised release, for drug distribution and firearm possession offenses.
According to court documents and statements made in court, on March 31, 2021, Bloomfield Police stopped a vehicle Holt was driving for a traffic violation. After a narcotics K9 alerted to the presence of narcotics, a search of the vehicle revealed approximately 114 grams of crack cocaine, a quantity of marijuana, items used to package drugs for street sale, five cell phones, and a loaded 9mm handgun. The firearm was reported stolen in 2020.
Holt’s criminal history includes 12 felony convictions, including convictions for firearm, assault, drug and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Holt has been detained since March 31, 2021. On April 25, 2022, he pleaded guilty to one count of possession with intent to distribute cocaine base (“crack”), and one count of unlawful possession of a firearm by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Bloomfield Police Department. The case was prosecuted by Assistant U.S. Attorney Robert S. Ruff.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. In May 2021, the Justice Department launched a violent crime reduction strategy strengthening PSN based on these core principles: Fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
Baltimore Woman Sentenced to 25 Years in Federal Prison for Assisting in the Murder of a Woman and Her Seven-Year-Old Son During a 2015 Drug-Related RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Kiara Haynes, age 37, of Baltimore, today to 25 years in federal prison, followed by five years of supervised release, for two counts of aiding and abetting the use and discharge of a firearm in relation to a drug trafficking crime and crime of violence, causing the death of Jennifer Jeffrey and her seven-year-old child. Haynes has been detained since her arrest in Texas on June 18, 2021, on a related federal criminal complaint.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Mark K. Lewis of the Cambridge Police Department.
“The murders of Jennifer Jeffrey and her child were a senseless tragedy,” said U.S. Attorney Erek L. Barron. “Not only did Kiara Haynes have opportunities to prevent the murders of Jennifer Jeffrey and her child, she lied to investigators about what happened after the crimes were committed. If you threaten or harm a witness, especially a child, the full weight of federal law enforcement will be harnessed to hold you accountable and bring you to justice, no matter how long it takes.”
“Kiara Haynes had every opportunity to try and stop her boyfriend from murdering a little boy and his mother, knowing that that was part of his robbery plan. Instead, she supplied Andre Briscoe with the murder weapon, in complete disregard for human life,” said ATF Baltimore Field Division Special Agent in Charge Toni M. Crosby. “Nothing can ever replace the loss of a loved one, but we hope that this sentencing today gives the family of Jennifer Jeffrey and her son a sense of justice. ATF will continue in our mission to stop trigger-pullers, protect victims and witness, and help create safer communities in Baltimore.”
According to Haynes’s plea agreement, Haynes helped her co-defendant, Andre Briscoe, with whom she was romantically involved, plan to steal heroin from Jennifer Jeffrey, a long-time friend of Haynes. On May 26, 2015, Briscoe arrived at Haynes’s apartment from his home in Cambridge. During the course of the evening, Briscoe explained that Jeffrey had heroin and he planned to rob and kill Jeffrey to get the heroin. Briscoe confirmed to Haynes his intention to kill not only Jeffrey, but her minor child if the child were present at the time of the robbery. Haynes offered to help Briscoe get a gun.
Haynes subsequently contacted a relative whom she knew to have a gun. In exchange for allowing Haynes to use the gun, Haynes promised to give the relative some of the stolen heroin and give his gun back. Haynes and Briscoe met with the relative’s brother, who gave Haynes a .45 caliber firearm. Haynes and Briscoe returned to Haynes’s apartment with the gun.
Later that night, as detailed in the plea agreement, Briscoe left Haynes’s apartment to go hang out with Jeffrey at Jeffrey’s nearby home. When Haynes woke up later and realized that Briscoe had not returned, Haynes got upset. Between 4:00 a.m. and 5:00 a.m. Haynes walked over to Jeffrey’s home and began banging on the door and yelling for Briscoe to come out. Jeffrey’s relative opened the door and told Haynes that children were in the house asleep and that Haynes should go home, which she eventually did.
According to Haynes’s plea agreement, at approximately 7:23 a.m., Briscoe walked back from Jeffrey’s residence to Haynes’s apartment. Briscoe told Haynes that Jeffrey had shown him a large amount of heroin and that Jeffrey’s child did not feel well and had not gone to school that day. At approximately 11:41 a.m. Haynes overheard Briscoe on the phone with Jeffrey, who was talking about making breakfast for Briscoe. When Briscoe got off the phone, he retrieved the .45-caliber gun from Haynes’s bedroom and told Haynes that he was going to Jeffrey’s to get the drugs.
When Briscoe returned to Haynes’s apartment, Haynes asked him what had happened. Briscoe told Haynes that Jeffrey and her child were dead and gave Haynes a bag of heroin as her “cut” of Jeffrey’s drugs. As detailed in the plea agreement, Haynes returned the gun, along with the heroin given to her by Briscoe, as payment for the use of the gun.
On May 28, 2015, after a receiving a call for assistance, the Baltimore Police Department discovered Jeffrey and her child dead in their home.
In her plea agreement, Haynes further admitted that she lied to investigators and prosecutors about these events on five occasions between May 2015 and November 2020.
Andre Ricardo Briscoe, a/k/a “Poo”, age 38, of Baltimore and Cambridge, Maryland, was convicted by a federal jury on June 8, 2022, for federal drug distribution charges, use of a firearm to commit murder in relation to drug trafficking crime, killing a witness to prevent communication with law enforcement, and being a felon in possession of a firearm and ammunition. Briscoe faces a mandatory life sentence for killing a witness and for using a firearm in relation to a drug trafficking crime resulting in death, related to the murder of Jeffrey’s child. Judge Bennett has scheduled Briscoe’s sentencing for September 20, 2022 at 11:00 a.m.
United States Attorney Erek L. Barron commended the ATF, the FBI, the Baltimore Police Department, and the Cambridge Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul Budlow, who prosecuted the case, and thanked Assistant U.S. Attorneys Michael C. Hanlon and Abigail Ticse for their assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Armed Career Criminal Sentenced to 15 Years in Prison for Illegal Possession of FirearmsRead the Press Release
MINNEAPOLIS – A Minneapolis man was sentenced to 180 months in prison followed by five years of supervised release for possessing a firearm as an Armed Career Criminal, announced United States Attorney Andrew M. Luger.
According to court documents, on July 20, 2020, Minneapolis Police officers pulled over a GMC Envoy with Romelle Darryl Smith, 33, riding in it. Believing Smith was a suspect in a shooting investigation, officers ordered him out of the car. Smith told the officers he was carrying a Ruger LCP handgun with a Viridan laser attached. Police determined Smith’s identity and learned that he had an outstanding felony warrant with the Minnesota Department of Corrections. Smith was taken into custody. Prior to the July 20, 2020, arrest Smith had been convicted of four adult felonies as well as a domestic assault misdemeanor conviction, subjecting him to enhanced sentencing under the Armed Career Criminal Act.
Smith was sentenced yesterday in U.S. District Court by Judge John R. Tunheim. On August 24, 2022, he pleaded guilty to one count of felon in possession of a firearm as an Armed Career Criminal.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Minneapolis Police Department.
Assistant U.S. Attorney Sarah E. Hudleston prosecuted the case.
Arizona Woman Sentenced to 30 Months on Methamphetamine Trafficking & Money Laundering ChargesRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Krista Sparks, 28, Phoenix, Arizona, was sentenced today by U.S. District Judge James D. Peterson to 30 months in federal prison for conspiring to distribute 50 grams or more of methamphetamine and money laundering. Sparks pleaded guilty to these charges on May 24, 2022.
The government’s investigation revealed that Sparks worked with her boyfriend, Levi Bagne, and others to mail and transport methamphetamine from Phoenix to Wisconsin. On November 12, 2019, and again on February 15, 2020, Sparks mailed packages containing methamphetamine from Arizona to co-defendant Cory Freyermuth’s residence in Oshkosh, Wisconsin. The packages were seized by law enforcement and subsequent searches of the packages revealed a total of six pounds of methamphetamine.
The investigation also revealed that Sparks used her bank accounts and her mother’s bank account to launder drug proceeds for Bagne. After selling methamphetamine in Wisconsin, Freyermuth needed to return drug proceeds to Bagne in Arizona. Bagne devised a plan that allowed Freyermuth to deposit cashier’s checks into Sparks’ bank accounts. The investigation revealed that Sparks played an active role in setting up the bank accounts and withdrawing the proceeds.
A total of six individuals, including Bagne, have pleaded guilty to participating in this methamphetamine distribution scheme. Bagne’s sentencing hearing is scheduled for September 13, 2022, at 10:30 a.m.
The charges against Sparks are the result of a joint investigation by the Central Wisconsin Narcotics Task Force, Drug Enforcement Administration, Lake Winnebago Area Metropolitan unit, and Merrill Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Amsterdam Woman Pleads Guilty to Sexually Exploiting a MinorRead the Press Release
ALBANY, NEW YORK – Kristen Blair Hiltunen, age 37, of Amsterdam, New York, pled guilty today to sexual exploitation of a minor. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Hiltunen admitted that between April 2021 and August 2021, she engaged in a sexual relationship with a minor victim who was under 16 years of age. During this period of time, Hiltunen exchanged thousands of messages with the victim over a social media application through which she persuaded, induced and enticed the victim to take sexually explicit images and send them to Hiltunen. Hiltunen further engaged in livestreamed video chats with the victim during which the victim engaged in sexual acts.
Hiltunen, who remains detained pending sentencing scheduled for January 5, 2023, faces at least 15 years and up to 30 years in prison. The Court will also impose a term of supervised release of between 5 years and life, and Hiltunen will be required to register as a sex offender as a result of this conviction. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the FBI and its Child Exploitation Task Force, which includes FBI Special Agents, and state and local police investigators, including members of the Rotterdam Police Department. This case is being prosecuted by Assistant United States Attorney Rachel L. Williams 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). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Albany Man Pleads Guilty to Drug Trafficking OffensesRead the Press Release
ALBANY, NEW YORK – Wakeem Ricks, age 31, of Albany, pled guilty today to four counts of distributing cocaine base.
The announcement was made by United States Attorney Carla B. Freedman and Frank A. Tarentino III, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Ricks admitted that he sold cocaine base to another individual on four separate occasions in Albany in September 2021.
At his sentencing, scheduled for January 5, 2023, Ricks faces at least 5 years and up to 40 years in prison, and a term of post-imprisonment supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the particular statutes the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA, Albany Police Department, and Albany County Sheriff’s Office, and is being prosecuted by Assistant U.S. Attorney Dustin Segovia.
Aberdeen Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Alison J. Ramsdell announced that an Aberdeen, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 22, 2022, by U.S. District Judge Charles B. Kornmann.
Jose David Recio, age 27, was sentenced to 30 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Recio was indicted by a federal grand jury in March of 2022. He pleaded guilty on May 23, 2022.
The conviction stems from Recio failing to register as a sex offender as required by state law between December 1, 2021, and February 15, 2022. Recio had previously been convicted of a sex offense in State court which requires him to register for the rest of his life.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Recio was immediately remanded to the custody of the U.S. Marshals Service.
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Woods Cross Man Pleads Guilty to Sexual Exploitation of MinorsRead the Press Release
SALT LAKE CITY- Yesterday, August 24, 2022, in the U.S. District Court, District of Utah, Landon Germaine, 24, of Woods Cross, pled guilty in two federal child exploitation cases arising out of the District of Utah and the Western District of Arkansas. In the District of Utah case, Germaine pled guilty to felony interstate coercion and enticement of a minor. In the Western District of Arkansas case, Germaine pled guilty to attempted sexual exploitation via production of child pornography.
According to the criminal complaint and law enforcement affidavit filed by federal prosecutors, Germaine utilized social media and cellular applications such as Kik, Telegram, periscope, snapchat, and text messaging, to solicit graphic sexual photos and videos from minor children. A review of Germaine’s electronic devices contained evidence of chats on various applications with numerous female children under eighteen years of age, and some chats with children as young as eleven years old. In these chats, Germaine provided specific instructions on what the minors should depict in the photos and videos and Germaine repeatedly offered to pay the minors money for sending him sexually explicit videos.
The cases are being prosecuted by Assistant United States Attorneys from the District of Utah, the Western District of Arkansas, and Attorneys from the Department of Justice’s Child Exploitation and Obscenity Section. The cases were investigated by Special Agents from the FBI and officers and detectives from the Woods Cross Police Department, the Bentonville Police Department, the Rogers Police Department, and law enforcement officials from 14 additional U.S. judicial districts.
Sentencing in these matters is set for January 5, 2023.
Wilmington Daycare Owner Pleads Guilty to Tax EvasionRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Wilmington woman pled guilty in federal court on August 12, 2022, to three counts of tax evasion. U.S. District Judge Richard G. Andrews accepted the plea.
According to court documents, Brenda Mathis, the owner of LJ’s Playpen Academy, a Wilmington daycare center, failed to declare all of the income received by the daycare on its corporate tax returns. As a result, the daycare underpaid taxes in 2015, 2016, and 2017.
Mathis faces a maximum of 5 years in prison for each count when sentenced on December 16, 2022. Judge Andrews will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss commented, “Brenda Mathis’ scheme to evade taxes for the purpose of lining her own pockets was a theft from the American public. Together with our law enforcement partners, we will continue to protect the interests of law-abiding taxpayers by pursuing those who evade taxes for their own enrichment.”
“This guilty plea is a win for all those who play by the rules,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Mathis defrauded our nation’s tax system, a criminal act that will not be tolerated. Let her admission of guilt serve as a stern warning to anyone thinking about engaging in similar criminal behavior.”
IRS-Criminal Investigation investigated the case in coordination with the Department of Health and Human Services Office of Inspector General (“OIG”), FBI, and the U.S. Department of Agriculture OIG. Assistant U.S. Attorneys Ruth Mandelbaum and Alexander Ibrahim are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:21-cr-00003.
Wilkinsburg Man, 21, Sentenced to Prison for Illegally Possessing Drugs and FirearmsRead the Press Release
PITTSBURGH - A resident of Wilkinsburg, Pennsylvania, has been sentenced in federal court to34 months in prison for violating federal drug trafficking and firearms laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Cathy Bissoon imposed the sentence on Hazeon Kidd, age 21
According to information presented to the court, Kidd was arrested by the Allegheny County Police on May 13, 2021, after a search of the vehicle he occupied revealed four firearms, more than $10,000 in cash, and about 13 grams of a cocaine and fentanyl mixture. One of the firearms and the cocaine and fentanyl mixture were found on the Kidd’s person. Kidd was precluded from possessing a firearm under federal law because he was then an illegal drug user. Kidd was released on bond after his May 13, 2021, arrest until he was arrested again on June 28, 2021, this time by the North Huntington Police, after selling $600 worth of a cocaine and fentanyl mixture to a confidential informant. At that point, the Court revoked his bond and he is currently detained.
Prior to imposing sentence, Judge Bissoon stated that a portion of the sentence was attributable to the fact that the defendant was on bond from the May 2021 arrest at the time of the June 2021 offense.
Assistant United States Attorney Brendan T. Conway prosecuted this case on behalf of the government.
United States Attorney Chung commended the Allegheny County Police Department and the North Huntingdon Police Department for the investigations leading to the successful prosecution of Kidd.
Washington residents convicted of transporting Mexican nationals who crossed illegally into United States from CanadaRead the Press Release
MISSOULA — Two Washington residents suspected of picking up six Mexican nationals who crossed illegally into the United States from Canada through a remote area in Lincoln County were convicted of charges, U.S. Attorney Jesse Laslovich said today.
A federal jury convicted Miguel Angel Medina, 62, of Seattle, Washington, on Aug. 23 of transportation of illegal aliens following a two-day trial that began on Aug. 22. Co-defendant Leslie Patricia Rivera, 51, of Seattle, Washington, pleaded guilty on Aug. 22, before the trial began, to transportation of illegal aliens.
Rivera and Medina face a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Dana L. Christensen presided. Judge Christensen set sentencing for Dec. 14 for both defendants. Rivera was released pending further proceedings, while Medina was detained.
“Rivera and Medina, motivated by money, transported six illegal Mexican nationals who walked across the border in the middle of winter to be picked up in the middle of nowhere. We will continue working with law enforcement to secure our border with Canada and will prosecute those who engage in this dangerous smuggling activity that exploits vulnerable people. I want to thank our assistant U.S. attorneys and the U.S. Border Patrol for their work on this case,” U.S. Attorney Laslovich said.
In court documents and at trial, the government alleged that Rivera and Medina picked up six illegal aliens who had just crossed the international border from Canada in the Green Basin area of the West Kootenai near Rexford, in Lincoln County, a place that was not a port of entry. Rivera and Medina had left Seattle in a rented car the prior day and drove straight through. A friend of Rivera’s had offered her $3,500 to pick up four people and drive them back to Seattle. At the time of Rivera’s arrest, she had received partial payment. Rivera paid Medina $1,000 to accompany her. At approximately 5 a.m. on Jan. 19, a U.S. Border Patrol agent was notified of persons potentially attempting to illegally enter the United States. The agent ultimately stopped a SUV with a Washington license plate on a Forest Service road. Rivera was the driver, Medina was the front passenger and six other occupants, who acknowledged being from Mexico and in the country illegally, were in the rear two seats. All eight suspects were transported to the Eureka Border Patrol Station for processing. The six illegal aliens claimed to have paid from $180 to $7,324 to be smuggled into the United States.
The U.S. Attorney’s Office prosecuted the case, which was investigated by the U.S. Border Patrol.
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Wapato Man Sentenced to 50 Years in Federal Prison for Three Homicides on the Yakama NationRead the Press Release
Spokane, Washington – Today, Chief U.S. District Judge Stanley A. Bastian sentenced Clifton Frank Peter, 37, of Wapato, Washington, to 600 months in federal prison, to be followed by a 5-year term of court supervision after he is released, and restitution in the amount of $86,170. Earlier this year, Peter pleaded guilty to three counts of Second-Degree Murder. In announcing the 50-year sentence, Chief Judge Bastian described the murders as “horrible if not monstrous.” He also stated, “This case was senseless, pointless, [and] a horrible act – leaving three people dead and their families traumatized for life.”
According to information disclosed during court proceedings, Peter is an enrolled member of the Confederated Bands and Tribes of the Yakama Nation and has a violent criminal history. In 2011, he was convicted in Yakima County Superior Court of First-Degree Robbery with a Deadly Weapon and Theft of a Motor Vehicle and was sentenced to 36 months of imprisonment. In 2013, he was convicted of Second-Degree Unlawful Possession of a Firearm and sentenced to 9 months of imprisonment.
On June 1, 2020, Peter was at his home, which is located within the external boundaries of the Yakama Nation. Peter spent the day consuming alcohol and playing video games. He became visibly upset while playing a video game and began yelling; his family members decided to leave the residence due to his outbursts.
Peter attacked his mother as she attempted to leave, and then took her vehicle. As Peter backed out of his driveway, he nearly collided with a vehicle being driven by a person identified in court proceedings as Victim 1. Peter exited his vehicle and shot Victim 1 with a shotgun. Victim 1 died due to the shotgun blast. Peter then re-entered his mother’s vehicle and, traveling northbound, slammed into the back of another vehicle that was occupied by people identified in court documents as Victims 2 and 3. Peter got out of his mother’s vehicle and shot Victims 2 and 3 with the shotgun. Victims 2 and 3 each died as a result of the gunshot blasts.
After the murders, Peter attempted to hide the shotgun before walking to the residence of a family member. Peter told a family member that he had “done something bad,” and his family member refused to allow him to enter the residence. Deputies from the Yakima County Sheriff’s Office and officers from the Yakama Nation Police Department quickly responded the crime scene, and officers apprehended Peter. Members of the Washington State Patrol arrived and assisted with the crime scene, and the Federal Bureau of Investigation assumed jurisdiction over the investigation.
U.S. Attorney Vanessa R. Waldref condemned Peter’s acts as senseless violence that undermine the safety and strength of the Yakama Nation and all of Eastern Washington: “Three people are dead. Two children have been orphaned without any immediate family in the United States. A family patriarch will never see his grandchildren graduate from high school or walk his daughter down the aisle,” said U.S. Attorney Waldref. “Violence like this is not normal, and it cannot be normalized. The U.S. Attorney’s Office will continue to prosecute violence throughout Eastern Washington, in the big cities and small towns, on the farms and on the Palouse, and on every Indian Nation. I commend the collaborative efforts of the Yakama Nation Police Department, the Yakima County Sheriff’s Office, the Washington State Patrol, and the Federal Bureau of Investigation for their seamless partnership in this case, which resulted in a significant sentence. But for the families of Mr. Peter’s victims, nothing will ever be the same again. No sentence could ever bring back their beloved family members, but I hope there is some comfort in knowing that today, the Court removed from the Yakama Nation a dangerous offender whose hair-trigger response to being angry at a video game was to murder three people in cold blood.”
“The FBI, along with our partners, have made combating violent crime in Washington a priority,” said Richard A. Collodi, Special Agent in Charge of the Seattle Field Office of the FBI. “Three innocent people were murdered in what can only be described as utterly senseless acts. Today’s sentence is particularly resonant, given the nature and violence of Mr. Peter’s crimes.”
This case was investigated by the Yakima Resident Office of the Federal Bureau of Investigation. This case was prosecuted by Richard C. Burson and Tom Hanlon, Assistant United States Attorneys for the Eastern District of Washington.
Violent Felon Sentenced to over 11 Years in Federal Prison for Dealing Methamphetamine While on ProbationRead the Press Release
INDIANAPOLIS – Shane Theisz, 44, of Terre Haute, Indiana, was sentenced to 135 months in federal prison after pleading guilty to possession with intent to distribute 50 grams or more of methamphetamine.
According to court documents, on July 28, 2021, Theisz was on state probation when Vigo County Drug Task Force officers conducted a search of his Terre Haute residence. During the search, officers found 141 grams of methamphetamine, a digital scale, plastic baggies, $7,195 in U.S. Currency, and two handguns: a loaded .40 caliber and a 9mm. The .40 caliber handgun was previously reported stolen. Theisz was arrested and transported to the Vigo County Jail where he admitted to law enforcement officers that the methamphetamine belonged to him and was the amount he normally obtained from his source of supply.
Theisz has a serious criminal history that spans over 13 years and involves a prior felony conviction for dealing methamphetamine in Vigo County as well as two domestic battery misdemeanors, one in which he threatened to kill a woman.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Michael Gannon, Assistant Special Agent in Charge of the DEA’s Indianapolis Field Office, made the announcement.
The DEA investigated the case. The Terre Haute Police Department provided valuable assistance. The sentence was imposed by U.S. District Judge James R. Sweeney II. As part of the sentence, Judge Sweeney ordered that Theisz be supervised by the U.S. Probation Office for five years following his release from federal prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Abhishek S. Kambli who prosecuted this case.
Venezuelan Businessman Charged in Bribery and Money Laundering SchemeRead the Press Release
Miami, Florida – A federal grand jury in Miami returned an indictment today charging a Venezuelan national for laundering the proceeds of substantially inflated procurement contracts obtained by making bribe payments to senior officials at Petropiar, a joint venture between Venezuela’s state-owned and state-controlled energy company and an American oil company.
According to the indictment, from at least 2015 through at least May 2019, Rafael Rixon Rafael Moreno Oropeza, 46, allegedly engaged in a scheme to obtained multimillion-dollar contracts from Petropiar by paying bribes to senior officials at Petropiar. Moreno allegedly agreed to pay a $1 million bribe to a senior official in the Venezuelan government to install another person as a high-ranking official in the procurement division of Petropiar. In addition, Moreno allegedly sent millions of dollars in bribe payments to senior Petropiar officials from accounts he controlled in South Florida. In exchange for these bribe payments, Moreno allegedly received benefits including over $30 million in payments on contracts from Petropiar to accounts Moreno controlled in South Florida. Illustrative of this, Moreno received approximately $2.7 million from a Petropiar contract to supply breathing devices, a contract whose price had been allegedly inflated to 100 times the actual cost. Moreno allegedly used the proceeds obtained from the Petropiar contracts for his own personal benefit, including to purchase real estate, a private jet, and luxury vehicles in South Florida.
Moreno is charged with conspiracy to commit money laundering; concealment money laundering; international promotional money laundering; and engaging in transactions involving criminally derived property. If convicted, Moreno faces a maximum penalty of 20 years in prison for each count of money laundering and conspiracy to commit money laundering and up to 10 years in prison for each count of engaging in transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida, Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Special Agent in Charge Anthony Salisbury of the Homeland Security Investigations (HSI) Miami Field Office, and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
HSI’s Miami Field Office and IRS-CI Miami Field Office investigated this case.
Assistant U.S. Attorney Michael Berger of the Southern District of Florida and Trial Attorney Alexander Kramer of the Justice Department’s Fraud Section are prosecuting the case. Assistant U.S. Attorney Sara Klco of the Southern District of Florida is handling asset forfeiture.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Venezuelan Businessman Charged in Bribery and Money Laundering SchemeRead the Press Release
A federal grand jury in Miami returned an indictment today charging a Venezuelan national for laundering the proceeds of substantially inflated procurement contracts obtained by making bribe payments to senior officials at Petropiar, a joint venture between Venezuela’s state-owned and state-controlled energy company and an American oil company.
According to the indictment, from at least 2015 through at least May 2019, Rixon Rafael Moreno Oropeza, 46, allegedly engaged in a scheme to obtain multimillion-dollar contracts from Petropiar by paying bribes to senior officials at Petropiar. Moreno allegedly agreed to pay a $1 million bribe to a senior official in the Venezuelan government to install another person as a high-ranking official in the procurement division of Petropiar. In addition, Moreno allegedly sent millions of dollars in bribe payments to senior Petropiar officials from accounts he controlled in South Florida. In exchange for these bribe payments, Moreno allegedly received benefits including over $30 million in payments on contracts from Petropiar to accounts Moreno controlled in South Florida. Illustrative of this, Moreno received approximately $2.7 million from a Petropiar contract to supply breathing devices, a contract whose price had been allegedly inflated to 100 times the actual cost. Moreno allegedly used the proceeds obtained from the Petropiar contracts for his own personal benefit, including to purchase real estate, a private jet, and luxury vehicles in South Florida.
Moreno is charged with conspiracy to commit money laundering; concealment money laundering; international promotional money laundering; and engaging in transactions involving criminally derived property. If convicted, Moreno faces a maximum penalty of 20 years in prison for each count of money laundering and conspiracy to commit money laundering and up to 10 years in prison for each count of engaging in transactions in criminally derived property. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida, Special Agent in Charge Anthony Salisbury of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, and Special Agent in Charge Matthew D. Line of the IRS Criminal Investigation’s (IRS-CI) Miami Field Office made the announcement.
HSI's Miami Field Office and IRS-CI Miami Field Office investigated this case.
Trial Attorney Alexander Kramer of the Justice Department’s Fraud Section and Assistant U.S. Attorney Michael Berger of the Southern District of Florida are prosecuting the case. Assistant U.S. Attorney Sara Klco of the Southern District of Florida is handling asset forfeiture.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Sentenced to Prison for Armed Robberies in KilleenRead the Press Release
WACO – Two Killeen men were sentenced today for their roles in armed robberies in Killeen. Roosevelt Jones IV, 26, was sentenced to 20 years in prison and ordered to pay $12,026 in restitution and Christopher Teon Fults, 29, was sentenced to 10 years in prison and ordered to pay $9,356 in restitution.
According to court documents, from November 2017 through January 2018, Jones and Fultz robbed five area merchants at gun point. Jones was also charged with armed robbery of another merchant in February 2018.
“Those who perpetrate violence among us forfeit their freedom,” said U.S. Attorney Ashley C. Hoff. “The sentences of Mr. Jones and Mr. Fults are entirely appropriate given their crimes and the harm to their victims. I commend our law enforcement partners for their hard work and dedication to community safety.”
“Today’s sentencing sends a clear message that the FBI is committed to working with our local law enforcement partners to reduce violent crime and ensure every person has the opportunity to live and work in a safe community,” said FBI Special Agent in Charge Oliver E. Rich Jr., San Antonio Division.
On September 7, 2021, Jones and Fults both pleaded guilty to one count of interference with commerce by robbery and both have remained in federal custody since their arrests in October 2019.
The FBI Central Texas Violent Crimes Task Force, with valuable assistance from the Temple Police Department and the Killeen Police Department’s Violent Crime Unit, investigated the case.
Assistant U.S. Attorney Gregory Gloff prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.
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