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19 August 2022
Lawyer Charged with Stealing More Than $3.9 Million from Clients and EmployeesRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment on August 16, 2022, charging Matthew C. Browndorf, age 51, of Irvine, California, with four counts of wire fraud and four counts of money laundering arising from a scheme to defraud the clients and employees of a foreclosure law firm that he owned by stealing more than $3.9 million. Browndorf is currently expected to have an initial appearance on September 2, 2022, in U.S. District Court in Greenbelt.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Kimberly Davis of the Federal Housing Finance Agency, Office of Inspector General.
According to the indictment, Browndorf, a licensed attorney, was a partner at a California law firm and the Chief Executive Officer of Plutos Sama, LLC, a limited liability company organized in Delaware, but principally located in California.
As detailed in the indictment, Plutos Sama owned BP Fisher Law Group, LLP, a law firm located in Prince George’s County, Maryland, that represented lenders and mortgage loan servicers in foreclosure and default proceedings in Maryland and the District of Columbia. BP Fisher acted as substitute trustee for lenders and mortgage loan servicers who had lawfully enacted foreclosure proceedings on properties in Maryland that were in default. The proceeds of those foreclosures would be transferred into BP Fisher’s trust accounts.
The indictment alleges that once the proceeds of the foreclosures were deposited into BP Fisher’s trust account, Browndorf transferred or directed the transfer of those funds out of the trust account and into other accounts that Browndorf controlled, when those funds should have been paid to BP Fisher’s clients. The indictment further alleges that Browndorf similarly directed the transfer of funds out of BP Fisher’s operating accounts, which often caused BP Fisher to be unable to pay its ordinary business expenses, including employee payroll, employee health insurance benefits, and employee retirement benefits. Browndorf allegedly used the stolen funds to pay for his personal expenses, the personal expenses of family members, or expenses incurred by Plutos Sama. Finally, the indictment alleges that Browndorf stole more than $3.9 million.
If convicted, Browndorf faces a maximum sentence of 20 years in federal prison for each count of wire fraud and a maximum sentence of 10 years in federal prison for each count of money laundering. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and FHFA OIG for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Matthew P. Phelps and Stephanie Williamson, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Las Vegas Resident Indicted for COVID-19 Relief Fraud SchemeRead the Press Release
LAS VEGAS – A Las Vegas man made his initial appearance in federal court yesterday for allegedly submitting a fraudulent Economic Injury Disaster Loan (EIDL) application seeking more than $150,000 from the Small Business Administration (SBA) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Ribal Hajj-Hussein (28) is charged with one count of wire fraud and two counts of money laundering. U.S. Magistrate Judge Brenda Weksler scheduled a jury trial for October 17, 2022 before U.S. District Judge James C. Mahan.
According to allegations contained in the indictment, on April 14, 2020, Hajj-Hussein submitted a falsified EIDL loan application to the SBA on behalf of his company RHH Travel Consulting LLC — which was a non-operational business — in order to obtain COVID-19 relief funds that he was not entitled to receive. In his application, Hajj-Hussein falsely represented the number of employees and gross revenue. As part of the alleged scheme, Hajj-Hussein directed the SBA to deposit more than $150,000 in EIDL funds into a bank account. Later, Hajj-Hussein transferred those funds to other bank accounts and used them for personal expenses.
If convicted, the statutory maximum penalty is 40 years in prison.
U.S. Attorney Jason M. Frierson for the District of Nevada and Special Agent in Charge Karon Ransom for the U.S. Secret Service made the announcement.
This case was investigated by the U.S. Secret Service and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Mina Chang is prosecuting the case.
An indictment contains merely allegations and the defendant is presumed innocent until and unless proven guilty in a court of law.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Las Vegas Man Sentenced to 12 Years in Prison for Distribution of Child Sexual Abuse MaterialRead the Press Release
LAS VEGAS – A Las Vegas resident was sentenced today by U.S. District Judge James C. Mahan to 12 years in prison followed by a lifetime of supervised release for distributing images of child sexual abuse material (CSAM).
“Protecting our children is of utmost importance and today’s sentence demonstrates our office’s efforts to seek justice on behalf of victims,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “The U.S. Attorney’s Office and our law enforcements partners will continue to work closely to protect children and hold accountable predators.”
“The FBI is committed to stopping and holding accountable anyone who engages in the sexual exploitation of children,” said Special Agent in Charge Spencer L. Evans for the FBI. “Every time child sexual abuse material (CSAM) is viewed on the internet it re-victimizes a child. Knowing that the defendant will spend the next 12 years in federal prison, ensures there is one less predator victimizing the most innocent and vulnerable members of our community – our children.”
Jonathan Raymond Lish (38) pleaded guilty in April 2022 to one count of distribution of child pornography. Under the Sex Offender Registration and Notification Act, Lish must also register as a sex offender after completion of his prison term.
According to court documents, in May 2018, the National Center for Missing and Exploited Children received two reports from Skype regarding the upload of files containing CSAM. After a search warrant was obtained for Lish’s Skype account, investigators found a conversation with another user about raping and killing children. In that same conversation Lish also claimed he sexually assaulted young children. Lish and the other user agreed to trade CSAM with each other. During the execution of a search warrant for Lish’s residence, about 26 images of CSAM were located on an SD card.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorneys Bianca Pucci and Christopher Burton prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678) or online at www.cybertipline.org.
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Kern County Man Sentenced to 10 Years in Prison for Illegally Cultivating Marijuana in the Sequoia National ForestRead the Press Release
FRESNO, Calif. — Marino Cruz Diaz, 24, of Taft, was sentenced today by U.S. District Judge Jennifer L. Thurston to 10 years in prison for illegally cultivating marijuana in a national forest and ordered to pay over $13,000 in restitution for damage to the land, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in July 2019, law enforcement officers located a clandestine marijuana grow site in Sequoia National Forest in Fresno County. On Aug. 2, 2019, officers hiked into the grow site, where they found and arrested Marino Cruz Diaz and Moreno Florez. The grow contained over 2,400 marijuana plants, chemicals, fertilizers, chicken wire, irrigation lines, and man-made dams and water reservoirs that diverted water from nearby creeks. On May 27, 2022, Cruz Diaz pleaded guilty.
On Aug. 12, 2022, Moreno Florez, was sentenced to 12 years in prison for illegally cultivating marijuana in a national forest and possessing a firearm in furtherance of that offense.
This case was the result of an investigation by the U.S. Forest Service. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
Kansas Chiropractor Indicted for PPP Loan FraudRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita indicted a Kansas man on multiple charges for alleged crimes related to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which is a federal law providing financial relief to businesses suffering economic losses because of the COVIID-19 pandemic. Under the CARES Act, the Small Business Administration (SBA) is authorized to grant businesses forgivable loans for payroll, utilities, rent, and other expenses through the Paycheck Protection Program (PPP).
According to court documents, Timothy Dale Warren, 58, of Haysville is charged with four counts of bank fraud, two counts of money laundering, and four counts of false statements. Warren, a chiropractor, is accused as owner of Titan Medical Center LLC of fraudulently obtaining PPP loans totaling approximately $145,800 from two banks then allegedly using a third bank to conceal the proceeds.
U.S. Attorney Duston Slinkard of the District of Kansas made the announcement.
The U.S. Department of Defense- Defense Criminal Investigative Service and Defense Contract Audit Agency, the U.S. Department of Health and Human Services – Office of Inspector General, and the U.S. Department of the Treasury – Internal Revenue Service, Criminal Investigations are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
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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Kansas Brothers Indicted for $3.7 Million Healthcare Fraud SchemeRead the Press Release
WICHITA, KAN. – A federal grand jury in Wichita returned an indictment charging two Kansas men with engaging in an alleged healthcare fraud scheme which resulted more than $3.7 million in payments from Medicare and Tricare over a three-year period.
Between 2017 and 2019, Bradley Eck, 54, and Todd Eck, 58, both of Wichita are accused of allegedly creating several businesses and misrepresenting the ownership of the enterprises in documents, submitting false billing for medical services not administered to patients, using a physician’s provider number without his authorization, and falsifying the physician’s electronic signature indicating on documents that he performed medical procedures he did not.
The Eck brothers are charged with:
• One count of conspiracy to commit healthcare fraud; • Two counts of false statements related to healthcare matters; • One count of healthcare fraud; • Three counts of aggravated identity theft; • Two counts of money laundering; and
• One count of money laundering conspiracy.U.S. Attorney Duston Slinkard of the District of Kansas made the announcement.
The U.S. Department of Defense- Defense Criminal Investigative Service and Defense Contract Audit Agency, the U.S. Department of Health and Human Services – Office of Inspector General, and the U.S. Department of the Treasury – Internal Revenue Service, Criminal Investigations are investigating the case.
Assistant U.S. Attorney Aaron Smith is prosecuting the case.
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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Jamaican National Pleads Guilty to Defrauding Elderly Americans Through a Jamaica-Based Lottery ScamRead the Press Release
A Jamaican man pleaded guilty in Miami federal court today to participating in a lottery fraud scheme targeting elderly victims in the United States.
According to court documents, Greg Warren Clarke, 29, of Montego Bay, Jamaica, pleaded guilty to one count of conspiracy to commit mail and wire fraud for his role in a Jamaica-based fraudulent lottery scheme that convinced American victims – many of whom were elderly – to pay money to collect fictitious lottery winnings. An indictment was filed against Clarke in the U.S. District Court for the Southern District of Florida in April 2019 and unsealed upon his extradition to the United States, which occurred in May 2022.
“This guilty plea demonstrates the Justice Department’s dedication to prosecuting those responsible for fraudulent lottery schemes, even when they commit their crimes from foreign countries,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to aggressively combat scams that seek to prey on older Americans.”
“The U.S. Postal Inspection Service stands ready to stop overseas criminals from illegally enriching themselves by using the mail to defraud consumers in the United States,” said Acting Inspector in Charge Juan Vargas of the U.S. Postal Inspection Service Miami Division. “We will continue to work with foreign governments to track down these criminals and bring them to justice.”
As part of his guilty plea, Clarke admitted that, from in or around September 2013, through in or around August 2015, he worked with co-conspirators, including Claude Anthony Shaw, in a scheme to defraud in which victims were called and falsely told that they had won over a million dollars in a lottery and needed to pay fees or taxes to claim their winnings. Victims were instructed to send their money through wire transfers or the mail to Shaw and other individuals. Clarke further admitted that, as part of the conspiracy, he and Shaw discussed (over the phone and through cell phone text messages) plans to receive victims’ money. At Clarke’s direction, Shaw received money from victims through wire transfers and the mail. Clarke further admitted that he and Shaw discussed arrangements for victims to send money to other individuals with whom Shaw worked. Clarke then instructed Shaw to send the victims’ money to Clarke in Jamaica, usually through wire transfers. Victims who sent money to Clarke and his co-conspirators never received any lottery winnings.
Shaw previously pleaded guilty to mail fraud in the U.S. District Court in Fort Lauderdale. In June 2017, he was sentenced to 36 months in prison.
Clarke is scheduled to be sentenced on Oct. 28.
Senior Trial Attorney Arturo DeCastro of the Civil Division’s Consumer Protection Branch is prosecuting this case. The U.S. Postal Inspection Service investigated the case.
The department’s extensive and broad-based efforts to combat elder fraud seek to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 19 was:
Jacob Israel Strong, aka Jacob Israel Guill, 36, of Heron, on charges of conspiracy and international parental kidnapping. If convicted of the most serious crime, Strong faces a maximum of five years in prison, a $250,000 fine and three years of supervised release. Strong was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-28.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 18 was:
Damon Joel Castillo, 46, of Hays, on charges of possession with intent to distribute methamphetamine and distribution of meth. If convicted of the most serious crime, Castillo faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release. Castillo was detained pending further proceedings. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives and Fort Belknap Law Enforcement Services investigated the case. PACER case reference. 22-56.
Osvaldo Aguilar, aka Aldo Chavez, aka Creeper, 47, of Cut Bank, on charges of conspiracy to possess with intent to distribute controlled substances and possession with intent to distribute controlled substances. If convicted of the most serious crime, Aguilar faces a mandatory minimum 10 years to life in prison, a $10 million fine and five years of supervised release. Aguilar was detained pending further proceedings. The FBI, Drug Enforcement Administration, Glacier County Sheriff’s Office and Blackfeet Law Enforcement Services investigated the case. PACER case reference. 22-54.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 16 was:
Gene John Klamert, 70, of Billings, on charges of mail fraud. If convicted of the most serious crime, Klamert faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release. Klamert was released pending further proceedings. The Bureau of Land Management investigated the case. PACER case reference. 22-78.
Nathiel Bartell Plainbull, 33, unknown address, on charges of sexual abuse of a minor. If convicted of the most serious crime, Plainbull faces a maximum of 15 years in prison, a $250,000 fine and five years to life of supervised release. Plainbull was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-81.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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ISIS ‘Beatle’ Sentenced to Life Imprisonment for Hostage-Taking Scheme that Resulted in the Deaths of American, British, and Japanese CitizensRead the Press Release
ALEXANDRIA, Va. – The highest-ranking fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, to have ever faced a jury trial in the United States was sentenced today to life imprisonment for his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
“I want to express my gratitude for the tireless work of the trial team, including all our partners, in bringing about today’s sentence,” said U.S. Attorney Jessica Aber. “Their efforts over many years of investigating and prosecuting the ISIS Beatles are emblematic of the best of the Department of Justice, and truly our country, has to offer in pursuing justice in the face of terrorism. I am also deeply appreciative of the efforts of the victims’ families in this case. Without their commitment, this case never would have made it to our courthouse and we would not have the result we have today.”
“Today, the men and women of the Department of Justice and our criminal justice system delivered justice,” said Deputy Attorney General Lisa O. Monaco. “Today, we remember the four Americans for whom it was delivered: James Foley, Kayla Mueller, Steven Sotloff, and Peter Kassig. My thoughts are with their families, whose strength and resolve inspired the men and women of the Justice Department as they investigated and prosecuted this case with skill and determination.”
“ISIS committed horrific acts against hostages held in Syria and nothing can make up for their suffering and loss,” said FBI Deputy Director Paul Abbate. “We will always remember the victims who perished and our thoughts today are especially with the Foley, Mueller, Sotloff, and Kassig families. Today’s sentencing demonstrates that those who kill or injure our citizens cannot hide forever. The FBI and our partners throughout the U.S. government will work relentlessly to bring them to justice. I am grateful for the dedication of the men and women of the FBI, and that of our partners both in the United States and internationally, who stand with us.”
“Today, El Shafee Elsheikh was sentenced to life in prison for his role in the heinous hostage-taking and appalling deaths of American, British, and Japanese citizens,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI Washington Field Office. “This case has always been about the victims, and while this sentence does not take away any pain felt by their families, we hope that it brings some justice. The families of James Foley, Kayla Mueller, Steven Sotloff, and Peter Kassig have shown remarkable resilience and strength through the ordeal of their loved ones’ abduction and murder and the ensuing years it took for this investigation and trial to conclude. The scope of this investigation was immense, and involved a myriad of individuals at the FBI, other U.S. agencies, and international partners working together to obtain this significant sentence. Today’s sentence demonstrates the commitment of the FBI and our partners to continue to investigate crimes against Americans and pursue justice on behalf of the families of these victims, no matter how long it takes or where in the world it takes us.”
According to court documents, from November 2012 through February 7, 2015, former British citizen El Shafee Elsheikh, 34, served as a leader in a wide-ranging conspiracy involving the captivity of 26 hostages in Syria. Elsheikh personally participated in the detention of and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Elsheikh personally participated in the detention of and hostage negotiations for British, French, Italian, Danish, German, Spanish, Swedish, Belgian, Swiss, and New Zealand nationals.
According to court documents and evidence presented during trial, Elsheikh and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held. Elsheikh and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to subdue the hostages. These actions were also intended to compel the victims’ family members and their governments to pay large monetary ransoms for their release, in addition to compelling the U.S. government and other governments to agree to other terms and conditions for the victims’ return.
According to evidence presented during trial, in addition to physically and psychologically abusing the hostages, Elsheikh and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed in or about April 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Elsheikh and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff, and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about February 7, 2015, Kayla Mueller’s family received an email from ISIS confirming Mueller’s death in Syria.
According to evidence presented during trial, Elsheikh was part of a group of ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” He and his convicted co-conspirator, Alexanda Amon Kotey, 38, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohammed Emwazi, who conducted the above-referenced videotaped beheadings, was killed in November 2015 in a U.S. military airstrike in Syria.
On September 2, 2021, Kotey pleaded guilty to all of the offenses charged by the U.S. Attorney’s Office for the Eastern District of Virginia in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Foley, Kayla Mueller, Steven Sotloff, and Peter Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British, and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British, and Japanese nationals. Kotey was sentenced to eight concurrent terms of life imprisonment on April 29, 2022.
On April 14, 2022, Elsheikh was convicted by a jury in the Eastern District of Virginia of all eight of the above-listed offenses. Earlier today, the Court sentenced Elsheikh to eight concurrent terms of life imprisonment.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its profound appreciation to the Federal Bureau of Investigation, the Counter Terrorism Command of the United Kingdom’s Metropolitan Police Service, the Syrian Democratic Forces, and our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
First Assistant United States Attorney Raj Parekh, Assistant U.S. Attorneys Dennis M. Fitzpatrick, John T. Gibbs, and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the Justice Department’s National Security Division prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-239.
ISIS ‘Beatle’ Sentenced to Life Imprisonment for Hostage-Taking Scheme that Resulted in the Deaths of American, British, and Japanese CitizensRead the Press Release
The highest-ranking fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, to have ever faced a jury trial in the United States was sentenced today to life imprisonment for his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
“Today, the men and women of the Department of Justice and our criminal justice system delivered justice,” said Deputy Attorney General Lisa O. Monaco. “Today, we remember the four Americans for whom it was delivered: James Foley, Kayla Mueller, Steven Sotloff, and Peter Kassig. My thoughts are with their families, whose strength and resolve inspired the men and women of the Justice Department as they investigated and prosecuted this case with skill and determination.”
“ISIS committed horrific acts against hostages held in Syria and nothing can make up for their suffering and loss,” said FBI Deputy Director Paul Abbate. “We will always remember the victims who perished and our thoughts today are especially with the Foley, Mueller, Sotloff, and Kassig families. Today’s sentencing demonstrates that those who kill or injure our citizens cannot hide forever. The FBI and our partners throughout the U.S. government will work relentlessly to bring them to justice. I am grateful for the dedication of the men and women of the FBI, and that of our partners both in the United States and internationally, who stand with us.”
“I want to express my gratitude for the tireless work of the trial team, including all our partners, in bringing about today’s sentence,” said U.S. Attorney Jessica Aber for the Eastern District of Virginia. “Their efforts over many years of investigating and prosecuting the ISIS Beatles are emblematic of the best of the Department of Justice, and truly our country, has to offer in pursuing justice in the face of terrorism. I am also deeply appreciative of the efforts of the victims’ families in this case. Without their commitment, this case never would have made it to our courthouse and we would not have the result we have today.”
“Today, El Shafee Elsheikh was sentenced to life in prison for his role in the heinous hostage-taking and appalling deaths of American, British, and Japanese citizens,” said Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office. “This case has always been about the victims, and while this sentence does not take away any pain felt by their families, we hope that it brings some justice. The families of James Foley, Kayla Mueller, Steven Sotloff, and Peter Kassig have shown remarkable resilience and strength through the ordeal of their loved ones’ abduction and murder and the ensuing years it took for this investigation and trial to conclude. The scope of this investigation was immense, and involved a myriad of individuals at the FBI, other U.S. agencies, and international partners working together to obtain this significant sentence. Today’s sentence demonstrates the commitment of the FBI and our partners to continue to investigate crimes against Americans and pursue justice on behalf of the families of these victims, no matter how long it takes or where in the world it takes us.”
According to court documents, from November 2012 through Feb. 7, 2015, former British citizen El Shafee Elsheikh, 34, served as a leader in a wide-ranging conspiracy involving the captivity of 26 hostages in Syria. Elsheikh personally participated in the detention of and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Elsheikh personally participated in the detention of and hostage negotiations for British, French, Italian, Danish, German, Spanish, Swedish, Belgian, Swiss, and New Zealand nationals.
According to court documents and evidence presented during trial, Elsheikh and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held. Elsheikh and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to subdue the hostages. These actions were also intended to compel the victims’ family members and their governments to pay large monetary ransoms for their release, in addition to compelling the U.S. government and other governments to agree to other terms and conditions for the victims’ return.
According to evidence presented during trial, in addition to physically and psychologically abusing the hostages, Elsheikh and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed in or about April 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Elsheikh and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff, and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about Feb. 7, 2015, Kayla Mueller’s family received an email from ISIS confirming Mueller’s death in Syria.
According to evidence presented during trial, Elsheikh was part of a group of ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” He and his convicted co-conspirator, Alexanda Amon Kotey, 38, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohammed Emwazi, who conducted the above-referenced videotaped beheadings, was killed in November 2015 in a U.S. military airstrike in Syria.
On Sept. 2, 2021, Kotey pleaded guilty to all of the offenses charged by the U.S. Attorney’s Office for the Eastern District of Virginia in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Foley, Kayla Mueller, Steven Sotloff, and Peter Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British, and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British, and Japanese nationals. Kotey was sentenced to eight concurrent terms of life imprisonment on April 29, 2022.
On April 14, 2022, Elsheikh was convicted by a jury in the Eastern District of Virginia of all eight of the above-listed offenses. Earlier today, the Court sentenced Elsheikh to eight concurrent terms of life imprisonment.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its profound appreciation to the Federal Bureau of Investigation, the Counter Terrorism Command of the United Kingdom’s Metropolitan Police Service, the Syrian Democratic Forces, and our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
First Assistant U.S. Attorney Raj Parekh, Assistant U.S. Attorneys Dennis M. Fitzpatrick, John T. Gibbs, and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia; and Counterterrorism Section Trial Attorney Alicia H. Cook of the Justice Department National Security Division prosecuted the case.
Hospice agrees to pay nearly $1M to settle false claims liabilityRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi health care company has agreed to pay $990,478.46 to resolve allegations they violated the False Claims Act by submitting claims to Medicare for non-covered hospice services, announced U.S. Attorney Jennifer B. Lowery.
The settlement resolves allegations that Familia Healthcare Services Inc. dba Del Cielo Hospice and Palliative Care knowingly submitted false claims from May 12, 2017, through Jan. 31, 2022. The claims allegedly involved hospice services for patients who were not eligible for, and did not qualify for, the hospice benefit in violation of the False Claims Act.
“This office is committed to pursuing providers who put profits ahead of patients,” said Lowery. “The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis, not a hospice provider’s desire to boost its profits.”
Hospice care is special, end-of-life care intended to comfort terminally ill patients. To be eligible for the Medicare hospice benefit, a patient must be “terminally ill,” meaning that the patient has a medical prognosis that their life expectancy is six months or less if the illness runs its normal course.
“The Medicare trust fund is not a piggy bank to be used at will by those intent on stealing from it,” said Acting Special Agent in Charge Jason Meadows, Department of Health and Human Services-Office of Inspector General (DHHS-OIG). We, along with our law enforcement partners, will use all available investigative tools and means of recovery to return stolen Medicare money to its rightful place. We implore citizens who are aware of Medicare fraud to come forward.
“Del Cielo Hospice didn’t just unscrupulously rob the Medicare program out of hundreds of thousands of dollars, it also took advantage of ill patients who were unknowingly used for its scam,” said Special Agent in Charge James Smith of the FBI. “This type of health care fraud affects everyone - individuals and businesses alike. It raises our health insurance premiums, exposes patients to unnecessary medical procedures, harms patients and increase taxes, not to mention the billions of dollars in losses every year. The FBI will continue to work with our partners, including the private sector, to identify and disrupt health care fraud.”
The settlement includes the resolution of claims a former employee of Del Cielo Hospice brought under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The whistleblower will receive 16% of the proceeds from the settlement with Del Cielo Hospice.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services (DHHS) at 800-HHS-TIPS (800-447-8477).
The U.S. Attorney’s Office jointly conducted the investigation with DHHS – Office of Inspector General and FBI. Assistant U.S. Attorney Melissa Green handled the matter.
The claims resolved by this settlement are allegations only, and there has been no determination of liability.
Hoopa Valley Fentanyl Dealer Sentenced to Two Years in Federal PrisonRead the Press Release
SAN FRANCISCO – Warren Herman Sloan was sentenced to 24 months in federal prison for attempting to distribute, and possessing with the intent to distribute, fentanyl on the Hoopa Valley Tribe Indian Reservation, announced United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Special Agent in Charge Sean Ragan, and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon. The sentence was handed down by United States District Judge Susan Illston.
Sloan, 25, formerly of Hoopa Valley in Humboldt County, pleaded guilty to the charges on February 15, 2022. In his plea agreement, Sloan admitted that in early 2021 he engaged in distributing drugs for profit on the Hoopa Valley Indian Reservation. Sloan further admitted that on March 29, 2021, he attempted to meet with his drug supplier to obtain narcotics which he planned to resell for profit on the Hoopa reservation. He acknowledged in the plea agreement that he intended to purchase approximately 120 counterfeit pharmaceutical pills for $1,700. During that meeting, police officers arrived and arrested Sloan. Sloan stated in his plea agreement that he now knows the counterfeit pills he was purchasing contained fentanyl.
In a memorandum filed with the court for Sloan’s sentencing, the government pointed out additional facts relevant to the sentence Sloan should receive. Specifically, the government argued that two young women, one 19 years old and the other 20, tragically died from fentanyl overdoses in Hoopa Valley in the early months of 2021. The government pointed out that in his plea agreement Sloan admitted he was aware that on March 5, 2021 – two weeks before his arrest – the 19 year old woman, whom he knew from the reservation, died from a drug overdose and that he heard the overdose was caused by counterfeit pharmaceutical pills laced with fentanyl. Sloan nevertheless continued to sell – and was one of only a few sellers of – counterfeit pills in Hoopa Valley.
In addition to the 24-month prison term, U.S. District Judge Illston ordered Sloan to serve three years of supervised release following release from federal prison.
Assistant U.S. Attorney Ross E. Weingarten prosecuted the case. The prosecution is the result of an investigation by the FBI, DEA, and the Humboldt County Drug Task Force.
One Pill Can Kill: Fentanyl, a Schedule II controlled substance, is a highly potent opiate that can be diluted with cutting agents to create counterfeit pills that purport to mimic the effects of Oxycodone, Percocet, and other drugs but can typically be obtained at a lower cost than the genuine drugs. However, very small variations in the amount or quality of fentanyl can have huge effects on the potency of the counterfeit pills, and with lethal consequences. Fentanyl has now become the leading cause of drug overdose deaths in the United States. Counterfeit, fentanyl-laced pills are commonly shaped and colored to resemble pills that are sold legitimately at pharmacies. For example, counterfeit pills known as M30s mimic Oxycodone, but contain fentanyl. These tablets are round and often light blue in color, though they come in many colors, and have “M” and “30” imprinted on opposite sides of the pill.
Home Health Aid Admits Stealing U.S. Savings Bonds from Elderly WomanRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that JHANANNIE SINGH, also known as “Jasmine” and “Sharmala Persaud,” 52, a citizen of Guyana last residing in Queens, New York, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a conspiracy offense relating to the theft of hundreds of thousands of dollars in U.S. Savings Bonds from an elderly woman who had purchased the bonds for her grandchildren and other family members.
According to court documents and statements made in court, Singh stole hundreds of thousands of dollars in U.S. Savings Bonds from an elderly woman for whom she provided home health services. The victim had purchased the bonds for her grandchildren and other relatives. After the victim died, Singh contacted Glen Campbell, also known as “Nick,” who enlisted the help of another individual to redeem the stolen bonds at a financial institution and provide Singh and Campbell with a portion of the proceeds. Between October 2020 and January 2021, as part of an undercover investigation, law enforcement coordinated the purchase of more than 100 savings bonds, with face values ranging from $50 to $1,000, from Singh and Campbell. Campbell traveled to Connecticut to complete the transactions.
Singh and Campbell were arrested on January 29, 2021. In June and July 2021, Singh attempted to obstruct the investigation and prosecution of this matter by offering to pay Campbell if he agreed to lie and provide false testimony. Singh has been detained since August 4, 2021.
Judge Dooley scheduled sentencing for November 28, at which time Singh faces a maximum term of imprisonment of five years.
Campbell pleaded guilty to the same charge on June 15, 2022, and awaits sentencing.
This matter is being investigated by the Federal Bureau of Investigation and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens, Michael S. McGarry and Robert S. Ruff.
The Justice Department has established a National Elder Fraud Hotline to provide services to seniors who may be victims of financial fraud. The Hotline is staffed by experienced case managers who can provide personalized support to callers. Case managers assist callers with reporting the suspected fraud to relevant agencies and by providing resources and referrals to other appropriate services as needed. When applicable, case managers will complete a complaint form with the Federal Bureau of Investigation Internet Crime Complaint Center (IC3) for Internet-facilitated crimes and submit a consumer complaint to the Federal Trade Commission on behalf of the caller. The Hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
Hagerman Man Sentenced to 10 Years for Possession of Child PornographyRead the Press Release
BOISE – Edward Vance, 64, of Hagerman, was sentenced to 120 months in federal prison for possession of child pornography, U.S. Attorney Josh Hurwit announced today.
According to court records, Vance has a prior federal conviction for possession of child pornography. While Vance was on supervised release for that conviction, Vance’s probation officer located child pornography on his electronic devices. Vance’s probation officer referred the investigation to the Idaho Internet Crimes Against Children (“ICAC”) Task Force. ICAC obtained a federal search warrant to examine Vance’s electronic devices and located thousands of images and videos of child pornography.
Chief United States District Judge David C. Nye also ordered Vance to serve a lifetime term of supervised release following his prison sentence and to forfeit the electronic devices that were used to commit the offense. As a result of the conviction, Vance will be required to register as a sex offender.
U.S. Attorney Hurwit commended the cooperative efforts of the ICAC Task Force, Homeland Security Investigations, and United States Probation which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Georgia woman sentenced to more than two decades in prison after admitting she produced child pornographyRead the Press Release
SAVANNAH, GA: A Liberty County woman has been sentenced to more than 20 years in federal prison after admitting she produced and shared child pornography.
Sharon Elizabeth Keegan, 30, of Midway, Ga., was sentenced to 293 months in prison after previously pleading guilty to Production of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Keegan to pay restitution of $3,000 and to register as a sex offender and serve 15 years of supervised release after completion of her prison term. There is no parole in the federal system.
“This sentence brings to a close a depraved and vile episode of criminal child sexual exploitation,” said U.S. Attorney Estes. “Sharon Keegan and her husband will spend decades in federal prison as they are held accountable for their crimes.”
Keegan’s husband, John Paul Joseph Keegan, 31, of Midway, Ga., previously was sentenced to 295 months in prison after pleading guilty to Production of Child Pornography and Possession of Child Pornography. He also must serve 15 years of supervised release and register as a sex offender after completion of his prison term.
Sharon Keegan entered a guilty plea in April 2022 after three days of trial in U.S. District Court in Statesboro, Ga., while John-Paul Keegan pled guilty in May 2021.
Keegan and her husband were indicted in May 2020 after an investigation launched through a cybertip from the National Center for Missing and Exploited Children to Homeland Security Investigations. Agents from the Liberty County Sheriff’s Office and the Georgia Bureau of Investigation searched the Midway mobile home where the Keegans resided, seizing electronic devices found to contain images and videos of child sexual exploitation that each of the two had produced and shared over the internet.
“The GBI will continue to work tirelessly to protect innocent victims of online exploitation,” said John Melvin, Interim Director of the Georgia Bureau of Investigation. “We are grateful for the partnerships we maintain with our local and federal agencies to bring these predators to justice.”
“Thankfully, this case has been resolved and the victims can begin the healing process knowing that these predators will no longer be able to prey upon them,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners prioritize the protection of our most vulnerable population, and this case is a great example of us holding those predators accountable for their actions”
This investigation took place under the umbrella of the U.S. Department of Justice’s Project Safe Childhood, and was conducted by Homeland Security Investigations, the Georgia Bureau of Investigation and the Liberty County Sheriff’s Office. The case was prosecuted for the United States by Assistant U.S. Attorneys Jennifer J Kirkland and Project Safe Childhood Coordinator Tara M. Lyons, with assistance from Asset Recovery Unit Assistant U.S. Attorney Mary Sue Robichaux.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Gainesville Man Who Threatened to ‘Blow-up’ Roanoke ArrestedRead the Press Release
ROANOKE, VA. – A Gainesville, Virginia man, who threatened to ‘blow-up Roanoke,’ and kill a bank branch manager, was arrested earlier this week on federal charges.
Brandon Hayward, 33, is charged via federal criminal complaint with use of a telephone to make a threat to injure or destroy property by means of fire or explosives as well as one count of communicating a threat in interstate commerce.
According to court documents, on Monday, August 15, 2022, Hayward called the InFirst Federal Credit Union located in the Poff Federal Building in Roanoke, Virginia. The branch manager spoke with Hayward and attempted to assist him concerning a recurring charge on his account.
Unsatisfied with the outcome of his complaint, Hayward became irate and told the branch manager, “I am going to get you raped…I will get you killed, bitch.”
He told the branch manager twice, “I am going to blow up Roanoke,” and adding, “I don’t give a fu**.”
Hayward then told the branch manager he was going to get his shotgun and Google her name, adding: “You think you’re safe in Roanoke; you’re not.”
Hayward was arrested on August 18, 2022 without incident.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia made the announcement.
The Federal Protective Service Division of the Department of Homeland Security is investigating the case.
Assistant U.S. Attorney Kristin B. Johnson is prosecuting the case for the United States.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former State of Wisconsin Department of Administration Employee Sentenced to Ten Years in Prison for Attempted Child EnticementRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that on August 19, 2022, Senior United States District Judge William C. Griesbach sentenced Marc F. Bennett (age: 43), formerly of Jefferson, Wisconsin, to ten years in federal prison for attempted child enticement. Following his prison sentence, Bennett will serve five years on supervised release.
According to court documents, in January 2022, Bennett began using popular online platforms to communicate with a 12-year-old girl. During these interactions, Bennett requested graphic digital images of the girl and expressed his desire to have sexual intercourse with her. On February 1, 2022, Bennett traveled to Manitowoc, Wisconsin, where he believed the child resided. When he arrived, he was arrested by an undercover police officer. Bennett immediately displayed his State of Wisconsin Department of Administration work badge and claimed that he was attempting to save a victim of human trafficking.
This case was investigated by the Manitowoc Police Department and was prosecuted by Assistant United States Attorney Alexander E. Duros.
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 U.S. Department of Justice. 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.projectsafechildhood.gov.
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Former South Florida Pharmacy VP and Executive Assistant Sentenced for Their Roles in Health Care Fraud Scheme Targeting U.S. MilitaryRead the Press Release
Miami, Florida – A former South Florida pharmacy executive was sentenced today to seven and a half years in prison for defrauding Tricare and CHAMPVA of approximately $88 million through a compounding pharmacy fraud scheme. His executive assistant received a sentence of five years imprisonment for her role in the conspiracy.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Cynthia A. Bruce, Special Agent in Charge, Southeast Field Office of the Defense Criminal Investigative Service (DCIS); Robert DeWitt, Acting Special Agent in Charge, FBI Miami; David Spiker, Special Agent in Charge, U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG); and Justin Fielder, Special Agent in Charge, U.S. Food and Drug Administration, Office of Criminal Investigations (FDA-OCI) made the announcement.
Matthew Smith, 58, of Boca Raton, Florida, pleaded guilty on January 24, 2022, to one count of conspiracy to commit health care fraud. His executive assistant, Alisa Catoggio, 41, also of Boca Raton, Florida, pleaded guilty on May 17, 2022, to one count of conspiring to pay healthcare kickbacks. In connection with the plea, Smith admitted his role submitting fraudulent claims to Tricare and CHAMPVA for expensive, medically unnecessary compound drugs through a Broward pharmacy. Tricare and CHAMPVA are the health care benefit programs for the United States Department of Defense and Department of Veterans Affairs. In furtherance of the scheme, Smith paid kickbacks to patient recruiters in exchange for their recruiting beneficiaries and referring prescriptions for the medical unnecessary drugs. For her role, Catoggio calculated and tracked the kickbacks and sham co-pay assistance programs used to further the scheme. The fraudulent referrals caused an actual loss to the government programs of approximately $88 million.
In addition to the prison sentence, the Court imposed restitution in the amount of $75,106,971.
DCIS, FBI Miami, VA-OIG, and FDA-OCI investigated the case. Assistant U.S. Attorney Jon Juenger prosecuted the case. Assistant U.S. Attorney Daren Grove is handling the asset forfeiture component of the case.
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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Former Senior U.S. Navy Employee Convicted for Bribery Conspiracy and Lying to InvestigatorsRead the Press Release
A federal jury in the District of Columbia convicted the former Director of Operations of the U.S. Navy’s Military Sealift Command Office in Busan, South Korea, today for his role in a bribery conspiracy and for lying to federal investigators.
According to court documents and evidence presented at trial, Fernando Xavier Monroy, 64, of Brentwood, New York, engaged in a conspiracy to commit bribery with the owner of DK Marine, a South Korea-based company that provided services to the U.S. Navy, and a former civilian U.S. Navy cargo ship captain. Evidence at trial proved that Monroy conspired to unlawfully provide services for the Navy ship, captained by one of Monroy’s co-conspirators, during a December 2013 port visit in Chinhae, South Korea.
Evidence at trial also proved that Monroy provided a co-conspirator with confidential and other proprietary, internal U.S. Navy information. In exchange for the steering of business and the provision of such information, the co-conspirator paid bribes to Monroy, including cash, personal travel expenses, meals and alcoholic beverages, and the services of prostitutes. Monroy also repeatedly lied to special agents of the Defense Criminal Investigative Service (DCIS) and Naval Criminal Investigative Service (NCIS) during a voluntary interview in July 2019.
Monroy was convicted of conspiracy to commit bribery, bribery, and making false statements. He is scheduled to be sentenced on Nov. 18 and faces a maximum penalty of 25 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division made the announcement.
The DCIS and NCIS investigated the case.
Trial Attorneys Sara Hallmark and Amanda Lingwood of the Justice Department’s Fraud Section are prosecuting the case.
Former Postal Service Mail Carrier Charged with Bank Fraud, ID Theft for Allegedly Stealing Jobless Benefit Debit Cards from Her Mail RouteRead the Press Release
LOS ANGELES – A former United States Postal Service mail carrier was indicted today by a federal grand jury for her role in a scheme that allegedly defrauded banks out of more than $200,000 via the theft of debit cards containing unemployment insurance benefits from her mail route and giving them to a co-schemer in exchange for cash payments and gifts.
Toya Toshell Hunter, 44, of South Los Angeles, was charged in a 20-count superseding indictment returned today along with lead defendant Michalea Latise Barksdale, a.k.a. “Miichii Bee,” 33, of Corona, whom a federal grand jury previously indicted in December 2021.
Hunter and Barksdale are charged with 12 counts of bank fraud, two counts of aggravated identity theft, and one count of debit card fraud exceeding $1,000. Hunter also is charged with three counts of embezzlement of mail by a postal employee. Barksdale faces one count of unlawful possession of 15 or more access devices (including debit cards and Social Security numbers) and one count of possession of stolen mail.
The defendants are expected to appear in United States District Court for their arraignments in the coming weeks.
According to the indictment, as part of scheme lasting from December 2014 to May 2020, Hunter used her position as a mail carrier with the United States Postal Service to steal Bank of America debit cards mailed by the California Employment Development Department (EDD) to jobless individuals. She then allegedly provided Barksdale the stolen debit cards in exchange for future payments and gifts.
Using the stolen EDD debit cards and the last four digits of the EDD cardholders’ Social Security numbers, Barksdale allegedly called the Visa vocal response unit to activate the EDD debit cards and create personal identification numbers (PINs). Once the cards had been activated, Barksdale used the stolen debit cards and fraudulently obtained PINs to make unauthorized cash withdrawals from ATMs in Corona, Compton and Fullerton, and purchases at stores throughout Southern California.
Aiding and abetting each other, Hunter and Barksdale made fraudulent and unauthorized cash withdrawals and purchases from at least 193 separate EDD cards and thereby stole from Bank of America at least $215,641 to which they were not entitled, according to the indictment.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
If convicted, Hunter and Barksdale would face statutory maximum sentences of 30 years in federal prison for each bank fraud count and 15 years in federal prison for the count of debit card fraud exceeding $1,000 in losses, plus a mandatory two-year prison sentence for aggravated identity theft. Hunter would face up to five years in federal prison for each count of embezzling mail by a postal employee. Barksdale would face up to five years in federal prison for possession of stolen mail.
The United States Postal Inspection Service, United States Postal Service – Office of Inspector General, and the United States Treasury Inspector General for Tax Administration are investigating this matter.
Special Assistant United States Attorney Kyle W. Kahan of the General Crimes Section is prosecuting this case.
Former Maui Jim Employee Charged with Mail Fraud and Wire FraudRead the Press Release
PEORIA, Ill. – A federal grand jury returned an indictment on August 16, 2022, charging a former Maui Jim employee, Erica Hornof, 35, of Bradford, Illinois, with three counts of mail fraud and three counts of wire fraud stemming from the alleged theft of sunglass parts from Maui Jim from 2021 until summer 2022.
The indictment alleges that Maui Jim, a sunglass manufacturer, maintains its world headquarters in Peoria. As a Lead Repair Technician at the facility, Hornof had access to Maui Jim’s computer systems, inventory parts, and mailroom. The indictment further alleges that Hornof stole sunglass parts and used the parts to assemble sunglasses. After assembling the sunglasses, Hornof shipped the sunglasses to two individuals who sold them on the internet. The individuals then paid Hornof through a PayPal account. The indictment also alleges that Hornof defrauded Maui Jim of over $100,000.
A summons was issued for Hornof to appear in U.S. District Court in Peoria on September 19, 2022.
If convicted, the maximum statutory penalties for each of the counts is up to 20 years’ imprisonment, up to three years of supervised release, and up to a $250,000 fine.
The Federal Bureau of Investigation is conducting the investigation. Criminal Chief Darilynn J. Knauss is representing the government in the prosecution.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Bookkeeper Sentenced to Prison for Stealing $600k+ from EmployersRead the Press Release
ATHENS, Ga. – The former bookkeeper for several Georgia real estate businesses who admitted to stealing more than $600,000 from her employers was sentenced to prison this week for her crimes.
Suzanne Brooks, 41, of Bogart, Georgia, was sentenced to serve 46 months in prison to be followed by three years of supervised release and was ordered to pay $610,857.99 in restitution by U.S. District Judge C. Ashley Royal on Aug. 18 after she previously pleaded guilty to wire fraud. There is no parole in the federal system.
“The U.S. Attorney’s Office will pursue cases against all those who use fraud and deception for their own profit, costing small businesses and citizens dearly,” said U.S. Attorney Peter D. Leary. “Fraud creates a chain reaction of negative consequences for both its victims and the larger community. Our office and law enforcement is committed to holding fraudsters accountable for their crimes.”
“Brooks violated the trust placed in her by her clients and will now spend time in prison paying for her crimes,” said Keri Farley Special Agent in Charge of FBI Atlanta. “Hopefully, this sentence sends a message that the FBI is dedicated to working with our partners to protect our citizens from anyone seeking to defraud innocent victims for their own personal greed.”
According to court documents, Brooks was a bookkeeper from 2013 to 2018 for two individuals who owned real estate companies in Georgia. Brooks was entrusted with access to paper checks and online banking logon credentials for their businesses at multiple FDIC-insured institutions. Brooks ultimately used business bank accounts to make multiple payments towards personal credit card balances for her and her husband with various credit card companies, without authorization from the victims. Brooks used the money to pay for her living expenses, including utilities for her home, insurance payments, restaurants, first-class travel, online shopping, retail purchases, fine jewelry and to purchase inventory for her side business selling clothing with a multi-level marketing company. When her personal credit cards developed balances, Brooks repeatedly used the victims’ funds to pay off those balances at her discretion and without their authorization. Brooks concealed her theft by falsifying Profit & Loss statements and other files in the accounting software used by the businesses, resulting in both victims believing their businesses to be less profitable than they actually were. Brooks also altered bank statement records and wrote dozens of unauthorized checks to herself. In total, Brooks caused at least $659,106.38 of intended losses to the victims.
The case was investigated by FBI. Assistant U.S. Attorney Lyndie Freeman prosecuted the case.
Former Army Officer and Attorney Arrested on Cyberstalking ChargeRead the Press Release
CHARLOTTESVILLE, Virginia – An attorney and former Army Officer assigned to the United States Army Judge Advocate General’s Legal Center and School (JAG School) in Charlottesville, was arrested over the weekend in Arkansas and charged with cyberstalking.
Manfredo Madrigal, III, 36, a former resident of Charlottesville, Virginia, is charged with cyberstalking following a series of incidents related to threats made to at least two female victims, the attempted deletion of Army materials, lying to the FBI, and coaching a witness to provide false information to the FBI.
According to court documents, Madrigal was an active duty Army Officer and attorney when he was assigned to the JAG School in Charlottesville, Virginia in early 2022. Madrigal previously served multiple overseas tours of duty as an enlisted soldier with various units, including the 75th Ranger Regiment and 82nd Airborne Division. In late February 2022, Madrigal was discharged from the Army and JAG School for failing to report a previous conviction for driving under the influence (DUI).
In the overnight hours between February 6 and 7, 2022, and while his Army discharge was pending, Madrigal attempted to delete, without authorization, online JAG training materials. Madrigal filmed himself doing so and narrated his motivations. In the video, Madrigal stated, “I’m gonna fu** you,” and “I’m going to bring their house down on them.” The same evening, Madrigal contacted Victim 1 and informed her that Russia reached out to him, wanted to know what he knew, and that he intended to travel to Russia. Madrigal’s cellphone records indicate he contacted the Russian embassy.
On February 22, 2022, Madrigal was discharged from the JAG School and claimed in out-processing paperwork that he had no unreported contact with a foreign national, which was contrary to Madrigal’s phone records and statements to Victim 1.
In April and May 2022, Madrigal was interviewed by the FBI about his actions. In these interviews, Madrigal made multiple false statements regarding his foreign contact and the deletion of the training materials. For example, Madrigal claimed he learned of the deletion from a coworker, but denied any involvement. Per text messages, however, Madrigal filmed his efforts to delete the module and claimed credit.
During the FBI’s investigation, agents discovered that Madrigal had been threatening Victim 1, a former romantic partner, both in-person and via electronic means. Between late 2021 and mid-2022, Madrigal sent Victim 1 messages threatening her career, family, and pets. At least three of these messages contained compromising and sexually explicit photos of Victim 1 that were taken without her consent or knowledge. Victim 1 also expressed being “terrified” of Madrigal and stated he threatened her, in-person, using a firearm at her residence and damaged her belongings.
As the FBI’s investigation progressed, agents also uncovered evidence Madrigal pressured another former romantic partner, Victim 2, to provide false information to the FBI about Madrigal. Victim 2 admitted to agents that Madrigal coached her prior to her FBI interview, and they discussed deleting incriminating text messages from his cellphone.
On August 9, 2022, Madrigal and Victim 2 were involved in a dispute in Harrison, Arkansas and Madrigal pointed a pistol at Victim 2’s head. Madrigal was arrested by local authorities in Arkansas and later transferred to federal custody to face cyberstalking charges for his conduct involving Victim 1.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Division, made the announcement.
The Federal Bureau of Investigation is investigating the case.
Assistant U.S. Attorney Katie Burroughs Medearis is prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Air Force Staff Sergeant Sentenced to Serve Four Years in Federal Prison for Possessing Child PornographyRead the Press Release
OKLAHOMA CITY – KEONTE NAVON MARTIN, 28, of Virginia Beach, Virginia, was sentenced this morning to serve 48 months in federal prison for possessing child pornography, announced U.S. Attorney Robert J. Troester.
On April 8, 2021, a federal grand jury returned an Indictment against Martin, charging him with four counts of possession of child pornography. According to the United States Air Force Office of Special Investigations, Martin was an Airman employed at Tinker Air Force Base and held the rank of Staff Sergeant at the time of the incident. Martin has since been released from active duty.
On July 1, 2021, Martin pleaded guilty to Count 1 of the Indictment. As part of his plea, Martin admitted that he knowingly possessed a visual depiction that had traveled across state lines to get to Oklahoma, and that the visual depiction involved the use of minors engaging in sexually explicit conduct.
At the sentencing hearing, U.S. District Judge David L. Russell sentenced Martin to serve 48 months in federal prison for his conduct, followed by five years of supervised release. Martin was also ordered to pay a total of $10,100.00 in assessments, and forfeit the electronic devices that contained the exploitative visual depictions. In arriving at the sentence, Judge Russell noted the nature and circumstances and seriousness of the offense, as well as the need to deter others from undertaking similar conduct. Restitution owed to the identified victims in the images that Martin possessed will be determined at a later date.
Upon his release from prison, Martin will be required to register as a sex offender.
This case is the result of an investigation by the United States Air Force Office of Special Investigations. Assistant U.S. Attorney Julia E. Barry prosecuted the case.
This case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice (DOJ) to combat child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the DOJ 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.
Reference is made to court filings for further information.
Florida Power Company Sentenced in Worker Death CaseRead the Press Release
Tampa, FL – A Florida corporation was sentenced in federal court in the Middle District of Florida after pleading guilty to a charge of willfully violating an Occupational Safety and Health Administration (OSHA) rule. The criminal charge related to an explosion at a coal-fired power plant in 2017 that caused the death of five workers.
Tampa Electric Company (TECO) operates several facilities in Florida, including Big Bend, a coal-fired power plant outside Tampa. At the time of the offense, the facility consisted of four large coal-fired furnaces. Underneath the furnaces were water-filled “slag tanks” designed to catch and cool a molten “slag” by-product that drips down from the furnace. On June 29, 2017, hardened slag had accumulated at the top and the bottom of one of the slag tanks and could not be removed. Rather than shutting down the furnace, TECO called in a contractor to perform high-pressure water blasting to try and clear the slag with the unit on-line. The work proceeded even though the procedure for this work could not be located. Five people were killed when one of the slag accumulations came loose, spraying the area with molten slag.
Judge Charlene Honeywell sentenced TECO to a $500,000 fine and three years of probation, along with the requirement that TECO comply with a safety compliance plan. Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of at least one employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations. The maximum punishment for a corporation such as TECO that violates this provision is a $500,000 fine.
“TECO’s willful violation had catastrophic consequences, including five workers dead and several more injured, underlining the importance of workplace safety standards,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The department takes this conduct very seriously, and accordingly pursued the maximum remedy available under the law.”
“Tragically, five individuals lost their lives on June 29, 2017, following the explosion at the TECO facility. Our hearts go out to the victims’ families as well as other TECO employees and contractors impacted by this catastrophic event,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our office is proud to have partnered with DOJ’s Environmental Crimes Section, the FBI, and the Department of Labor, Office of Inspector General to shine a light on this willful violation of OSHA safety standards in order to deter such conduct and ensure that workers are protected in the future.”
In a plea agreement with the government, TECO admitted to willfully failing to hold a pre-job briefing with the workers performing the work. Such briefing should have included information about the hazards associated with the job, the work procedures involved, any special precautions, energy source controls, and personal protective equipment requirements. Instead, the work proceeded without such a briefing and in contravention of the procedures governing the work to be performed, which could not be located. As a result, certain critical safety-related steps were not taken, and five individuals lost their lives when an explosion caused a violent release of molten slag throughout the work area.
The Federal Bureau of Investigation and the Department of Labor, Office of Inspector General investigated the case.
Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Rachelle DesVaux Bedke for the Middle District of Florida prosecuted the case.
Florida Power Company Sentenced in Worker Death CaseRead the Press Release
A Florida corporation was sentenced in federal court in the Middle District of Florida after pleading guilty to a charge of willfully violating an Occupational Safety and Health Administration (OSHA) rule. The criminal charge related to an explosion at a coal-fired power plant in 2017 that caused the death of five workers.
Tampa Electric Company (TECO) operates several facilities in Florida, including Big Bend, a coal-fired power plant outside Tampa. At the time of the offense, the facility consisted of four large coal-fired furnaces. Underneath the furnaces were water-filled “slag tanks” designed to catch and cool a molten “slag” by-product that drips down from the furnace. On June 29, 2017, hardened slag had accumulated at the top and the bottom of one of the slag tanks and could not be removed. Rather than shutting down the furnace, TECO called in a contractor to perform high-pressure water blasting to try and clear the slag with the unit on-line. The work proceeded even though the procedure for this work could not be located. Five people were killed when one of the slag accumulations came loose, spraying the area with molten slag.
Judge Charlene Honeywell sentenced TECO to a $500,000 fine and three years of probation, along with the requirement that TECO comply with a safety compliance plan. Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of at least one employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations. The maximum punishment for a corporation such as TECO that violates this provision is a $500,000 fine.
“TECO’s willful violation had catastrophic consequences, including five workers dead and several more injured, underlining the importance of workplace safety standards,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The department takes this conduct very seriously, and accordingly pursued the maximum remedy available under the law.”
“Tragically, five individuals lost their lives on June 29, 2017, following the explosion at the TECO facility. Our hearts go out to the victims’ families as well as other TECO employees and contractors impacted by this catastrophic event,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our office is proud to have partnered with DOJ’s Environmental Crimes Section, the FBI, and the Department of Labor, Office of Inspector General to shine a light on this willful violation of OSHA safety standards in order to deter such conduct and ensure that workers are protected in the future.”
In a plea agreement with the government, TECO admitted to willfully failing to hold a pre-job briefing with the workers performing the work. Such briefing should have included information about the hazards associated with the job, the work procedures involved, any special precautions, energy source controls, and personal protective equipment requirements. Instead, the work proceeded without such a briefing and in contravention of the procedures governing the work to be performed, which could not be located. As a result, certain critical safety-related steps were not taken, and five individuals lost their lives when an explosion caused a violent release of molten slag throughout the work area.
The Federal Bureau of Investigation and the Department of Labor, Office of Inspector General investigated the case.
Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Rachelle DesVaux Bedke for the Middle District of Florida prosecuted the case.
Fentanyl Dealer Responsible for Dozens of Drug Overdoses Sentenced to 15 Years in Federal PrisonRead the Press Release
Tampa, Florida – U.S. District Judge Thomas Barber has sentenced Marvin “MJ” Mitchell (36, St. Petersburg) to 15 years in federal prison for conspiracy and possession with the intent to distribute fentanyl, heroin, and crack cocaine. Mitchell had pleaded guilty on April 14, 2022.
According to court documents and evidence presented at his sentencing hearing, between April and June 2019, Mitchell operated several rooms at the Express Inn motel in Clearwater. Mitchell then directed his conspirators to sell fentanyl, heroin, and crack cocaine out of those motel rooms. The sale of these dangerous narcotics led to dozens of drug overdoses in the Express Inn motel, and the surrounding area. On June 17, 2019, law enforcement executed search warrants at the Express Inn and seized fentanyl, heroin, crack cocaine, used syringes, cash, and a drug ledger.
This case was investigated by the Drug Enforcement Administration, and the Pinellas Park Police Department, with assistance from the Pinellas County Sheriff’s Office, and the Pasco and Pinellas County Medical Examiner’s Office. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
Federal Inmate Charged with Possessing A Homemade KnifeRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Marshall Martinez, age 37, a federal inmate, was indicted on August 16, 2022, by a federal grand jury for possessing contraband in prison.
According to United States Attorney Gerard M. Karam, the indictment alleges that on or about June 3, 2022, while an inmate at the Federal Correctional Institution, Allenwood, in White Deer, Pennsylvania, Martinez possessed a 5-inch blade of sharpened plastic, commonly referred to as a “shank.”
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney George J. Rocktashel are prosecuting the case.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a 3-year term of supervised release following imprisonment, and a $250,000 fine. A sentence following a finding of guilt is imposed by the judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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El Paso Property Management Company to Pay $107,000 to Resolve Alleged Violations of the Servicemembers Civil Relief ActRead the Press Release
The Justice Department today announced that Integrity Asset Management LLC, a company that manages approximately 55 multi-family apartment properties in and around El Paso, Texas, has agreed to pay $107,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by charging unlawful fees to servicemembers who terminated their residential leases early and by denying other servicemembers’ requests to terminate their leases.
“The SCRA requires that landlords allow servicemembers to terminate their leases without penalty if they receive qualifying military orders,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Early lease termination rights are critically important for members of our armed forces as they limit the costs and expenses associated with military moves and deployments. This consent order reaffirms the Justice Department’s firm commitment to protecting the rights of servicemembers, veterans, and their families.”
“Our office is committed to ensuring that landlords and property managers honor the rights of servicemembers and their families who willingly sacrifice for us all,” said the United States Attorney for the Western District of Texas Ashley Hoff. “Today’s settlement will provide relief to servicemembers who were impacted by Integrity’s actions.”
The SCRA allows servicemembers to terminate a lease early after entering military service or receiving qualifying military orders, such as permanent change of station orders, orders for a deployment of at least 90 days, stop movement orders, and separation or retirement orders. If a servicemember terminates a lease due to a deployment or other qualifying military orders, the SCRA prohibits the landlord from imposing any early termination charges.
Today, the department filed a complaint in federal court alleging that Integrity charged unlawful early termination fees to at least 17 servicemembers. Some of these early termination fees took the form of “concession chargebacks,” which required the servicemembers to pay back rent concessions or discounts that they had received during their tenancies. These charges ranged from $132 to $2,032 per servicemember. The suit also alleges that Integrity wrongfully denied two other servicemembers’ lease termination requests.
Under the proposed consent order that was filed concurrent with the complaint, and which still must be approved by the court, Integrity has agreed to pay $45,325 to the affected servicemembers and a $62,029 civil penalty to the United States. The order also requires Integrity to repair the servicemembers’ credit, provide SCRA training to its employees, and develop new policies and procedures that comply with the SCRA.
The Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Western District of Texas jointly handled this case.
Since 2011, the department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at http://legalassistance.law.af.mil.
Dulce man indicted for kidnapping, domestic assault in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico announced today that Matthew Vicenti was arraigned on a three-count indictment charging him with assault by a habitual offender, kidnapping, and assault of an intimate partner by strangling. Vicenti, 32, of Dulce, New Mexico, and an enrolled member of the Jicarilla Apache Tribe, will remain in custody pending trial, which has not been scheduled.
A federal grand jury indicted Vicenti on June 15. According to the indictment, from Dec. 26, 2021, to Dec. 28, 2021, Vicenti allegedly confined and assaulted his intimate partner, identified as Jane Doe. At the time, Vicenti had been convicted previously on at least two occasions in Tribal court of offenses against a spouse and intimate partner. On Dec. 28, 2021, Vicenti allegedly assaulted Jane Doe by strangling and suffocation.
An indictment is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Vicenti faces up to 10 years in prison for assault by a habitual offender and assault of an intimate partner by strangling. Vicenti faces up to life in prison for kidnapping.
The Jicarilla Apache Police Department investigated this case. Special Assistant United States Attorney Chelsea Van Deventer is prosecuting the case.
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Donaldsonville Man Sentenced to 140 Months in Federal Prison for Possession with the Intent to Distribute Methamphetamine and FentanylRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. Chief Judge Shelly D. Dick sentenced Christopher John Scieneaux, age 39, of Donaldsonville, Louisiana, to 140 months in federal prison following his conviction of possession with the intent to distribute methamphetamine and fentanyl. The Court further sentenced Scieneaux to 5 years of supervised release following his term of imprisonment.
According to admissions made as a part of his guilty plea, between November 22, 2019 and January 23, 2020, the Ascension Parish Sheriff’s Office, Gonzales Police Department, and DEA used a confidential informant to conduct three controlled buys of heroin and fentanyl from Scieneaux. During the buys, law enforcement observed Scieneaux driving one of two vehicles, both of which had been registered to his girlfriend. Officers conducted surveillance at the girlfriend’s residence and confirmed Scieneaux came and went from the home at all times of the day in both vehicles.
On March 13, 2020, a traffic stop was conducted after Scieneaux left said residence, at which time a small amount of narcotics was found in the vehicle, and officers obtained and executed a search warrant at the residence. Officers were able to unlock the residence with a key found in the vehicle driven by Scieneaux.
During the search of the residence, officers located approximately 1300 grams of pure methamphetamine, 903 grams of fentanyl, and two scales (one with white residue) inside the master bedroom closet. Scieneaux’s Louisiana ID was found on top of the dresser in the master bedroom. Inside the dresser, officers found rolling papers, a marijuana grinder with residue, and four more picture identifications belonging to Scieneaux. Under the mattress in the master bedroom, $3,340 in denominations consistent with the sale of narcotics was also located.
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program that was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This matter was investigated by the Drug Enforcement Administration with critical assistance from the Internal Revenue Service, Ascension Parish Sheriff’s Office and Gonzales Police Department, was prosecuted by Assistant United States Attorney Jessica Jarreau, who also serves as Deputy Criminal Chief of the Organized and Violent Crime Unit of the United States Attorney’s Office.
District Court Enjoins Illinois Pharmaceutical Manufacturer from Making and Selling Adulterated DrugsRead the Press Release
A federal court today ordered an Illinois company to stop manufacturing and distributing drugs alleged to be adulterated in violation of the Federal Food, Drug, and Cosmetic Act (FDCA).
In a civil complaint filed on Aug. 17, the United States alleged that Morton Grove Pharmaceuticals Inc., violated the FDCA at the company’s facility in Morton Grove, Illinois, by manufacturing and distributing adulterated drugs. Morton Grove Pharmaceuticals makes and distributes prescription and over-the-counter drugs, such as cough syrups and nasal sprays. The Department of Justice alleged that the company violated the FDCA by failing to have adequate procedures to prevent cross-contamination of equipment, failing to reject drug lots using a contaminated ingredient, and failing to fully investigate the root cause of such contamination. The department also alleged the Food and Drug Administration (FDA) inspected the company’s facility five times, in 2011, 2014, 2016, 2019, and 2021, and that many of the violations were repeat violations the FDA had identified in earlier inspections.
The current good manufacturing practice regulations mandate that manufacturers control the processes and procedures by which drugs are manufactured, processed, packed, and held, to ensure that drugs have the identity, strength, quality, purity, and other attributes necessary for their safe and effective use. Drugs not made in conformance with current good manufacturing practice regulations are adulterated and in violation of the law. According to the Justice Department’s complaint, the FDA issued Morton Grove Pharmaceuticals several warnings, including a warning letter to the company in 2017, regarding alleged deficiencies at its facility.
“Drug manufacturers have an important responsibility to ensure drug quality and safety,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with the FDA and take action against manufacturers who fail to abide by laws designed to protect public health.”
“Pharmaceutical companies must manufacture and distribute prescription and over-the-counter drugs in compliance with federal law,” said U.S. Attorney John R. Lausch, Jr., for the Northern District of Illinois. “The U.S. Attorney’s Office is committed to working with our colleagues at the Department of Justice’s Consumer Protection Branch to ensure public health is not jeopardized.”
“Current good manufacturing practice requirements are the foundation of a safe and effective national drug supply,” said Director Donald Ashley of the FDA’s Center for Drug Evaluation and Research, Office of Compliance. “These manufacturing fundamentals are necessary to ensure the public is not put at risk from adulterated drug products. Today is a culmination of the dogged oversight needed to hold drug manufacturers accountable for the safety, efficacy, and quality of the drug products they produce as we work to best protect public health.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The negotiated consent decree entered by the court permanently enjoins the defendants from violating the FDCA, and requires, among other things, that the defendants stop manufacturing, processing, labeling, holding, or distributing adulterated drugs. Further, the defendants must destroy all drugs in the facility, except for those that are medically necessary.
Senior Litigation Counsels Donald Lorenzen and Christina Parascandola of the Civil Division’s Consumer Protection Branch prosecuted the case.
The U.S. Attorney’s Office for the Northern District of Illinois, along with Senior Counsel Michele Svonkin and Joshua A. Davenport of the FDA’s Office of Chief Counsel, provided valuable assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
The claims resolved by the resolution announced today are allegations only and there has been no determination of liability.
Deshler Man Sentenced to 210 Months for Possession of DrugsRead the Press Release
Acting United States Attorney Steven Russell announced that Robert D. Dankemeyer, 61, of Deshler, Nebraska, was sentenced today by United States District Court Judge John M. Gerrard to a total of 210 months’ (17 ½ years) imprisonment following his conviction for possession of 50 grams or more of actual methamphetamine with the intent to distribute. Dankemeyer pleaded guilty to the offense on May 24, 2022. After he completes his prison sentence, Dankemeyer will also serve five years on supervised release. There is no parole in the federal system.
On the evening of June 22, 2020, deputies with the Thayer County Sheriff’s Department responded to reports of an armed person threatening patrons at the Fourth Street Tavern in Deshler. After interviewing witnesses, they learned that Dankemeyer had gotten into an argument with some customers in the bar. He left the bar and then returned a short time later carrying firearms, including a revolver with a scope attached. He pointed a gun at a couple of people outside the bar, and then left as the sound of sirens could be heard approaching. Later that evening, Dankemeyer was located at a gas station in Hebron, Nebraska, and arrested.
Deputies with the Thayer County Sheriff’s Department obtained a search warrant for Dankemeyer’s residence in Deshler. Inside the home they located a small amount of methamphetamine, marijuana, drug paraphernalia, several pellet and BB guns, a few large Bowie knives, and body armor. A Ford Taurus was parked at the house. Inside the trunk of the Taurus, the deputies located several firearms, about a pound of methamphetamine, about 9 sticks of dynamite, blasting caps, fuse igniters, and body armor. Once the deputies encountered the dynamite, they had to pause the search and they obtained assistance from the Nebraska State Patrol’s Hazardous Devices team.
This case was investigated by the Thayer County Sheriff’s Department, the Nebraska State Patrol, and the Lincoln/Lancaster County Drug Task Force.
Department of Justice Announces $35.7 Million in Grants for States to Support Victims of Sexual AssaultRead the Press Release
The Department of Justice today announced 56 awards totaling $35.7 million in funding from the Office on Violence Against Women (OVW) as part of the Department’s ongoing efforts to provide direct support and related assistance to victims of sexual assault. Announced in conjunction with the National Sexual Assault Conference, the Sexual Assault Services Formula Grant Program (SASP) awards include funding for each U.S. state, five U.S. territories, and the District of Columbia.
“For nearly two decades, the Justice Department’s Sexual Assault Services Program has demonstrated our commitment to providing comprehensive support to survivors of sexual assault,” said Attorney General Merrick B. Garland. “This grant funding will go directly toward strengthening the efforts of agencies and organizations across the country to provide critical services and care that survivors need and deserve.”
“Over the next year, this SASP grant funding will help tens of thousands of survivors of sexual violence access essential services,” said OVW Acting Director Allison Randall. “It is fitting to announce these awards today: SASP funding helps sexual assault survivors from every walk of life access medical care, crisis intervention, advocacy and counseling, among other services. I am so grateful to the direct service providers who ensure these services are available to survivors and provide trauma-informed care on a daily basis.”
SASP was first authorized by Congress in 2005 and is the nation’s first federal funding stream solely dedicated to providing direct intervention and related assistance to victims of sexual assault. OVW administers SASP funding according to a statutorily determined, population-based formula. States and territories, in turn, subaward the funds to rape crisis centers and other nonprofit, nongovernmental or Tribal agencies that provide direct intervention and related services to adult, youth and child victims of sexual assault.
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 at www.justice.gov/ovw.
Davenport Man Sentenced to Federal Prison for False Statements During a Firearms PurchaseRead the Press Release
DAVENPORT, IA – Brent Stephen Gladwin, age 24 of Davenport, was sentenced on August 17, 2022, to 36 months in prison for three counts of False Statement During Purchase of a Firearm. Following his term of imprisonment, Gladwin was ordered to serve three years of supervised release.
The Scott County Sheriff’s office learned through an interview that Gladwin was a well-known straw purchaser in the Quad Cities who would obtain a firearm for anyone in exchange for payment of $100. During an unrelated investigation, the Bettendorf Police Department located a firearm that Gladwin had purchased in possession of another person. That individual reported having acquired several firearms through Gladwin, three of which had been recovered by law enforcement.
Gladwin purchased at least 10 firearms between January 2020 and October 2021. For each firearm purchase, Gladwin filled out a firearm purchase form and claimed to be the actual buyer of the firearm and denied being an unlawful user of controlled substances, both statements Gladwin knew to be false. Gladwin pleaded guilty on February 28, 2022.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Scott County Sheriff’s Office investigated the case.
Davenport Man Sentenced to 8 years in Federal Prison for a Firearm ChargeRead the Press Release
DAVENPORT, IA – Davantres Deshaun Moore, age 35 of Davenport, was sentenced today to 96 months in prison for being a Felon in Possession of a Firearm. Following his prison term, Moore was ordered to serve three years of supervised release.
According to court documents, Moore was arrested in possession of a loaded firearm, while in violation of a no contact order. Moore has a history of violence including multiple convictions for assault and domestic abuse assault, as well as numerous no contact order violations. He was most recently convicted for stalking in violation of a protective order and attempted burglary second degree.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This matter was investigated by the Davenport Police Department.
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. In May 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.
Covenant Health Settles Americans with Disability Act Claim with United StatesRead the Press Release
KNOXVILLE, Tenn. - The United States reached a settlement on August 19, 2022, with Covenant Health (Covenant). Covenant is a not-for-profit health care organization headquartered in Knoxville, Tennessee. Covenant operates nine hospitals in East Tennessee, including Parkwest Medical Center (PWMC). In a complaint filed in the U.S. District Court for the Eastern District of Tennessee, a complainant, who is deaf, alleged that he was denied effective communication under the Americans with Disabilities Act (ADA) during emergency department visits and an in-patient hospital admission at PWMC.
The complainant alleged he went to Covenant facilities, including PWMC, after experiencing numbness and pain in his leg. The complainant alleged that the virtual interpreter services offered were ineffective and that no live interpreter services were provided to him despite repeated requests. The complainant alleged that he did not understand the reasons for his admissions, the treatment plan, or his discharge instructions. The U.S. Attorney’s Office for the Eastern District of Tennessee opened a civil investigation into these allegations under the ADA. Covenant and the United States have reached a settlement to resolve this investigation.
In resolving the investigation, Covenant agrees to implement measures and/or ensure compliance with existing measures aimed at protecting the rights of patients and companions who are deaf or hard of hearing at its hospitals. Those measures include: (1) designating an ADA administrator at each facility to provide oversight and guidance; (2) identifying services that can provide interpreters to each facility in a timely manner; (3) providing notice to patients and their companions of their rights under the ADA; (4) developing an assessment plan to effectively determine the appropriate auxiliary aid for each situation; (5) providing ADA training; and (6) submitting compliance reports to the U.S. Attorney’s Office. The settlement agreement is effective for three years. In addition, Covenant will pay a statutory penalty to the United States in the amount of $50,000.
“The U.S. Attorney’s Office commends the complainant for sharing his experience to improve healthcare communication for other persons in the deaf community. Further, we commend Covenant Health and Parkwest Medical Center for cooperating in our investigation and working to promote effective communication with deaf individuals,” said U.S. Attorney Francis M. Hamilton III. “This agreement is a roadmap for success for public accommodations within East Tennessee that aim to improve the participation of deaf persons and other persons with hearing impairments in healthcare decisions.”
Assistant U.S. Attorney Leah W. McClanahan represented the United States in the investigation.
Members of the public should be reminded that the claims settled by this agreement are allegations only and that there has been no determination of liability.
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Chicago Man Sentenced to Additional One-Year Prison Sentence for Failing to Report to PrisonRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Bernard Thomas, 31, Chicago, Illinois, was sentenced yesterday by U.S. District Judge William M. Conley to a year in prison for failure to surrender to serve his 18-month federal robbery conviction. This sentence was ordered to run consecutive to that robbery conviction. Thomas pleaded guilty to this charge on June 2, 2022.
On January 28, 2021, Thomas was sentenced in federal court in Madison by Judge Conley to 18 months’ imprisonment for robbing Rocky’s Liquor, a business located in Madison, on December 28, 2019. During sentencing, Judge Conley ordered Thomas—who was on pretrial release—to surrender to the Bureau of Prisons on March 12, 2021 to serve his sentence. On that date, Thomas failed to surrender for service of his sentence. Almost a year later, on February 15, 2022, Thomas was arrested in Chicago by the U.S. Marshals Service.
During sentencing, Judge Conley stated that Thomas ignored the Court’s order and had to be held accountable for his actions especially in light of the serious nature surrounding his robbery conviction. Further, Thomas’ decision to abscond ultimately increased his time away from his family and will likely negatively impact his designation and security level in federal prison.
The failure to report charge against Thomas was the result of an investigation conducted by the U.S. Marshals Service. The robbery was investigated by the Madison Police Department. Assistant U.S. Attorney David J. Reinhard prosecuted this case.
Cheektowaga Man Arrested, Charged with Production and Possession of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Dustin Coffelt, 33, of Cheektowaga, NY, was arrested and charged by criminal complaint with production and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Maeve E. Huggins, who is handling the case, stated that according to the complaint, in July 2022, the Depew Police Department received a report that Coffelt sexually abused a 13-year-old girl (minor victim). Subsequent investigation determined that the alleged abuse may have been ongoing for several years and included communication over various social media applications and text messaging. On July 29, 2022, investigators seized Coffelt’s cell phone. Numerous sexually explicit images of the minor victim, which constitute child pornography, were recovered from the phone.
Coffelt made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and is being detained.
The complaint is the result of an investigation by the Depew Police Department, under the direction of Chief Jerome Miller, the Cheektowaga Police Department, under the direction of Chief Brian Gould, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Cheektowaga Man Arrested, Accused of Attempting to Have Sex with A 13 y/o GirlRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Mohammed Uddin, 35, of Cheektowaga, NY, was arrested and charged by criminal complaint with attempted production of child pornography and the attempted online enticement of a minor. The charges carry a minimum penalty of 15 years in prison, a maximum penalty of life, a lifetime period of supervised release, and a $250,000 fine.
Assistant U.S. Attorney, Kyle P. Rossi, who is handling the case, stated that according to the complaint, Uddin engaged sexually explicit online and text communications with who he believed was a 13 y/o female. The individual was actually an undercover FBI Child Exploitation Task Force Officer. Over a period of approximately three weeks, Uddin discussed engaging in sexual activity with the child, sent pornography to the child, talked about taking the child’s virginity, attempted to induce the child to produce and send him sexually explicit photos and videos, and formed a plan to meet the child at her Rochester home for sex.
On August 18, 2022, Uddin traveled from Cheektowaga to an address in Rochester, NY, which Uddin believed was the child’s residence, to engage in sex with the child. Uddin was immediately taken into custody, at which time investigators located a cell phone used in the crime.
Uddin made an initial appearance before U.S. Magistrate Judge Mark W. Pedersen and is being held pending a detention hearing.
The criminal complaint is the result of an investigation by the FBI’s Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Cedar Rapids Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
DAVENPORT, IA – Ka’leck Travonnious Danero Daquan Bolden, age 24 of Cedar Rapids, was sentenced today to 100 months in prison for Felon in Possession of a Firearm. Following his imprisonment, Bolden was ordered to serve three years of supervised release.
On July 24, 2021, Iowa City police officers were dispatched to an apartment complex in response to a report of shots fired. Officers identified Bolden as the shooter. Bolden admitted to possessing the firearm, committing the shooting, and being a felon. In Bolden’s car, law enforcement located the firearm, which had an obliterated serial number. Bolden pleaded guilty on April 4, 2022.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa City Police Department investigated the case.
Cedar Rapids Man Sentenced to 10 Years in Federal Prison for a Firearm ChargeRead the Press Release
DAVENPORT, Iowa –Jeremiah Duwon Snead, age 32 of Cedar Rapids, was sentenced on August 17, 2022, to 120 months in prison for Felon in Possession of a Firearm. Following his imprisonment, Snead was ordered to serve three years of supervised release.
In the early morning hours of November 21, 2020, Iowa City police officers responded to a 911 call about a firearm at a residence. They located a stolen firearm on the driver’s side floorboard of a rental vehicle, later determined to be rented by Snead’s girlfriend. No one at the residence claimed association with the vehicle or the firearm, so law enforcement towed the vehicle to a secure storage bay.
When detectives arrived with a search warrant to seize the firearm two days later, it was missing. Detectives reviewed surveillance video from the tow company and surrounding businesses and saw a vehicle arrive in the area shortly after the tow truck. A male exited the vehicle, broke the window to the storage bay where the vehicle was parked, and sprinted from the building. He appeared to be carrying something in his waistband. Law enforcement located blood underneath the storage bay’s broken window, which was matched to Snead. Additional surveillance video, cell phone records, and location data corroborated the DNA results. A jury found Snead guilty on March 2, 2022.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa City Police Department investigated the case.
California Man Sentenced to 10 Years in Prison for Conspiracy to Receive and Distribute Child PornographyRead the Press Release
OAKLAND - Abel Garcia-DeLeon was sentenced to 10 years in prison for facilitating the distribution of child sex abuse materials in connection with serving as the administrator for several chatrooms designated for sharing illegal child exploitation materials, announced United States Attorney Stephanie M. Hinds and U.S. Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King. The sentence was handed down by the Hon. Yvonne Gonzalez Rogers, U.S. District Court Judge.
Garcia-DeLeon pleaded guilty to the charge on June 9, 2022. According to the plea agreement, Garcia-DeLeon admitted that he agreed with another person to use the Kik social media application to receive and distribute images depicting minors engaged in sexually explicit conduct. Specifically, the plea agreement states that Garcia DeLeon, along with his co-defendant, administered a private chat group on Kik. The co-defendants organized a “Rage Bot” that instructed anyone intending to join the chat group to first send three videos depicting child pornography. Intended users were instructed to send the videos via private messenger to “verify” themselves. After the intended user delivered to the defendants the three videos, the person would be invited to enter a second private chat group. While in the second chat group, intended users would encounter another “Rage Bot” that instructed members to post videos depicting children aged ten or younger who were engaged in sexually explicit conduct. Intended users who did not post three videos within six minutes of being admitted to the group were removed from the group. Between May 8, 2020, and May 20, 2020, Garcia-DeLeon and his co-defendant were joined by at least ten other members of the chat group.
In his plea agreement, Garcia-DeLeon also admitted that he distributed to the chat group images of minors engaged in sexually explicit conduct. Further, Garcia-DeLeon acknowledged he administered several other chat groups dedicated to the exchange of child pornography. Garcia-DeLeon acknowledged that law enforcement officers searched his home on August 19, 2020, and that at that time, Garcia-DeLeon possessed on his phone at least 684 images and one video depicting minors engaged in sexually explicit conduct.
On February 9, 2021, a federal grand jury indicted Garcia-DeLeon charging him with conspiracy to receive and distribute child pornography, in violation of 18 U.S.C. §§ 2252(a)(2) and (b), and one count of distribution of child pornography, in violation of 18 U.S.C. § 2252(a)(2) and (b). Pursuant to his plea agreement, Garcia-DeLeon pleaded guilty to the conspiracy count and the substantive distribution count was dismissed at sentencing.
In addition to the prison term, Judge Gonzalez Rogers also sentenced Garcia-DeLeon to a 10-year period of supervised release that will commence after the prison term is concluded. The defendant was immediately remanded into custody.
Assistant U.S. Attorney Alexis James prosecuted the case with the assistance of Katie Turner and Kay Konopaske. The prosecution is the result of an investigation by Homeland Security Investigations and the Contra Costa District Attorney’s Office.
Burlington Resident Sentenced for Straw Purchasing FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Marissa Byrd, 30, of Burlington, Vermont, was sentenced yesterday to a two-year period of probation after her conviction for providing false or fictitious statements to a federally licensed dealer of firearms in connection with her acquisition of a firearm. United States District Judge Christina Reiss announced the sentence following a hearing in the federal courthouse in Burlington.
According to court records, Byrd pleaded guilty to the offense on April 29, 2022. The defendant acknowledged having purchased a firearm from Parro’s Gun Shop in Waterbury, Vermont in March 2021 at the request of another individual, who provided her money to complete the purchase. After acquiring the handgun, Byrd transferred it to the other individual, whom Byrd knew was prohibited from possessing firearms under federal law. As part of the purchase of the firearm, Byrd completed an ATF form falsely indicating that she was the actual purchaser of the firearm. This type of offense is commonly known as “straw purchasing,” and it is punishable by up to ten years of imprisonment.
At the sentencing hearing, both the government and defense counsel recommended a probationary sentence in light of, among other things, Byrd’s prompt acceptance of responsibility for her offense and her performance on pretrial release during the pendency of this case.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of Homeland Security Investigations. Assistant United States Attorney Matthew Lasher handled the prosecution. Byrd was represented by David Kirby, Esq.
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. For more information about Project Safe Neighborhoods, please visit https://www.justice.gov/psn
Buffalo Man Pleads Guilty for His Role in String of Credit Union RobberiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney Trini E. Ross announced today that Ronald Morris, 47, of Buffalo, NY, pleaded guilty to aggravated bank robbery, attempted bank robbery, and using, possessing, and brandishing a firearm in furtherance of a crime of violence before U.S. District Judge Richard J. Arcara. The charges carry a mandatory minimum penalty of seven years in prison, a maximum of life, and a $250,000 fine.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that Morris was involved in robbing three credit unions:
• On February 27, 2019, Morris a/k/a Cracks and Adrian D. Applewhite entered the Tonawanda Community Federal Credit Union on Delaware Street in Tonawanda, armed with a firearm. The two men forcibly took approximately $111,992.18 in United States currency before fleeing in a vehicle.
• On July 25, 2019, the defendant and Myron McCollum entered the South Towns Community Federal Credit Union on South Park Avenue in Lackawanna wearing dark colored clothing and face masks and conducted a bank robbery with pepper spray and a pistol. Morris and McCollum traversed the teller’s counter, sprayed the tellers with pepper spray, and went to the unlocked safe, forcibly taking $290,500 in United States currency.
• On November 7, 2019, Morris and Carl Wilson and Myron McCollum, armed with a pistol and donning masks and gloves, entered the Clarence Community and School Federal Credit Union on Sheridan Drive in Clarence, and conducted a bank robbery while Applewhite, the getaway driver, sat in a car nearby. Morris and his accomplices ordered all the employees to the ground and demanded money. Wilson and McCollum went behind the teller line and went through teller’s drawers, while Morris went to the vault. They forcibly took $148,793.90 in United States currency.Carl Wilson and Applewhite were previously convicted, charges remain pending against Myron McCollum.
The plea is the result of an investigation by the New York State Police, under the direction of Major Eugene Staniszewski; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Lackawanna Police Department, under the direction of Chief Mark Packard; the Evans Police Department, under the direction of Chief Douglas J. Czora; and the Tonawanda Police Department, under the direction of Chief James P. Stauffiger.
Sentencing is scheduled for December 1, 2022, before Judge Arcara.
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Buffalo Man Arrested, Charged with Fraudulently Receiving Millions of Dollars in COVID 19 FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Brian A. Smith, 49, of Buffalo, NY, was arrested and charged by criminal complaint with wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that Smith, owner of B Smith and Companies, LLC, received two Paycheck Protection Program (PPP) loans and one Economic Injury Disaster Loan (EIDL), which were administered by the Small Business Administration to assist small businesses during the COVID-19 epidemic. According to the complaint, Smith submitted false documentation to the SBA and/or the financial institutions administering the PPP program, completing loan applications with fictious gross receipts, cost of goods sold, and payroll for businesses under his control. Smith is also accused of filing false tax returns misrepresenting his income to receive COVID relief loans for which he would not otherwise qualify. Smith personally received approximately $119,633.00 in EIDL and PPP loans, which he deposited into bank accounts that he controlled. The funds were ultimately used for personal expenditures at adult entertainment clubs, hotels, restaurants, cash withdrawals, and on retail goods.
In October of 2010, Smith was convicted of wire fraud in the Eastern District of Missouri and served 10 months in prison. In September 2012, Smith was convicted of wire and bank fraud in the Western District of New York and was sentenced to 63 months in prison. In September 2019, Smith was sentenced to serve an additional nine months in prison after violating the terms of his supervised release.
Smith made an initial appearance before U.S. Magistrate Judge Michael J. Roemer and was released on conditions.The complaint is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-In-Charge Thomas Fattorusso and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Brooklyn Hospital Dietician Indicted for Fraudulent Refund ScamRead the Press Release
A New York woman was arrested today, following an indictment returned by the grand jury earlier this week charging her with filing false tax returns, obstructing the IRS, and willful failure to file tax returns.
According to the indictment, Ehrenfriede Kauapirura, of Brooklyn, filed a false 2015 amended tax return and a false 2016 tax return. On both returns, Kauapirura allegedly reported hundreds of thousands of dollars in fictitious tax withholdings, which purportedly entitled her to refunds of approximately $250,000 for each year. After allegedly determining that Kauapirura’s claims were fraudulent, the IRS began a collections proceeding to recoup the refunds paid out to Kauapirura. To thwart the IRS’s collection efforts, Kauapirura allegedly transferred money from her personal bank account to a bank account owned by a trust that she controlled. Kauapirura also allegedly submitted a bogus $1 million check drawn on a non-existent bank as payment of her tax obligations. In addition, Kauapirura allegedly did not timely file individual tax returns with the IRS for the years 2017 through 2020.
If convicted, Kauapirura faces up to three years in prison for each count of filing false tax returns, three years in prison for obstructing the IRS, and one year in prison for each of four counts of willful failure to file a tax return. 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, U.S. Attorney Breon Peace for the Eastern District of New York and Special Agent in Charge Tammy Tomlins Sarah of IRS-Criminal Investigation made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Michael C. Vasiliadis and Kenneth C. Vert of the Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Baltimore Man Sentenced for Attempt to Introduce Contraband into Allenwood Federal PrisonRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Dwight Smith, age 48, of Baltimore, Maryland was sentenced to 18 months of imprisonment by United States District Court Chief Judge Matthew W. Brann for attempting to provide contraband to inmates at the Federal Correctional Center, Allenwood.
According to United States Attorney Gerard M. Karam, in 2016 Smith entered a wooded area on grounds of the Allenwood prison complex dressed in camouflage. Smith possessed a backpack containing various items of contraband including synthetic marijuana, tobacco and cell-phones which were to be thrown over the fence of the Low Security institution where they would later be recovered by inmates. Smith entered a guilty plea to attempting to provide contraband in February 2022.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Prisons. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting this case.
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Baltimore Man Admits to Sex Trafficking at Least Three WomenRead the Press Release
Greenbelt, Maryland – Ryan Odell Oliver, “Dre,” “Fame,” and “Foreign”, age 40, of Baltimore, Maryland pleaded guilty on August 16, 2022, to sex trafficking at least three victims.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore; Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
“Oliver’s sex trafficking crimes were discovered because one of his victims reached out for help,” said Erek L. Barron, U.S. Attorney for the District of Maryland. “As a result of this victim’s bravery, Oliver will now be brought to justice. If you are a survivor of human trafficking, please reach out for help and report sex traffickers at 866-DHS-2ICE.”
According to Oliver’s guilty plea, in December 2018 a female victim (Victim 1) texted a non-profit sex trafficking prevention agency that she was forced into prostitution and was being held against her will by Oliver. An Alexandria Police Department undercover detective followed up on the report and made a commercial sex date with Victim 1 in order to find her. Officers located Victim 1 at the location given for the sex date. Oliver was also at the location, but fled before he could be arrested. A second female (Victim 2) was also found at that location.
During the investigation, law enforcement spoke with three women whom Oliver was trafficking or attempting to traffic. Victim 1 and Victim 2 told law enforcement that they were trying to leave but Oliver refused to let them go. Oliver admitted that trafficked Victims 1 and 3 for his prostitution business and was attempting to sex traffic Victim 2. Oliver physically and sexually assaulted Victim 1 and Victim 2. Victim 1 and Victim 3 worked for Oliver in the Washington D.C. and Maryland area, including surrounding states. Oliver advertised all three victims online for commercial sex dates and kept all of the money made by his victims on commercial sex dates. Oliver also arranged for a tattoo artist to tattoo his nicknames “Fame” and “Foreign” on one of his victims.
As detailed in his guilty plea, Oliver gave Victim 1 daily quotas for commercial sex dates and refused to provide for Victim 1 if she did not meet the quotas. Oliver also made Victim 1 take pictures of other sex trafficking victims to advertise them for commercial sex dates. Oliver used violence against Victim 1 when she did something he thought was wrong and Oliver told Victim 1 that she was his property. Victim 3 advised that Oliver provided her with drugs, including heroin.
According to Oliver’s plea agreement, after meeting Victim 2 on a social media platform in December 2018, Oliver paid for a car to drive Victim 2 from Pennsylvania to his Baltimore residence. There, Oliver forced Victim 2 to have sex with him and choked Victim 2 because she would not comply with his sexual demands. After the assault, Victim 2 met one of Oliver’s co-conspirators, now deceased, who took her to a hotel, forced her to watch another sex trafficking victim conduct a sex date, and warned Victim 2 not to try to escape because Oliver would find her and that Oliver had a gun.
Oliver was arrested on January 11, 2019, in Baltimore. A search warrant executed at his residence recovered three cell phones, a hand-held recorder, a laptop, a ledger, a plastic bag of a white powdery substance, a 9mm firearm, and ammunition. Additionally, law enforcement discovered images of Victim 1 and Victim 3 on Oliver’s phone.
Oliver and the government have agreed that, if the Court accepts the plea agreement, Oliver will be sentenced to 15 years in federal prison. U.S. District Judge George L. Russell III has scheduled sentencing for November 28, 2022 at 9:30 a.m.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state, and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.justice.gov/usao/md/priorities_human.html.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Erek L. Barron commended HSI, the Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Colleen E. McGuinn, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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73-year-old Sioux Falls Man Sentenced for Travelling to Have Sex with a MinorRead the Press Release
Acting United States Attorney Steven Russell announced that John J. Stratman, 73, of Sioux Falls, South Dakota, was sentenced on August 18, 2022, in federal court in Omaha, Nebraska, for travelling with intent to engage in illicit sexual conduct with a minor. United States District Judge Brian C. Buescher sentenced Stratman to 135 months’ imprisonment. There is no parole in the federal system. After his release from prison, Stratman will begin a 7-year term of supervised release and will be required to register as a sex offender. Judge Buescher ordered Stratman to pay a $20,000 fine and a $5,000 special assessment. Stratman forfeited a 2019 Buick Enclave.
On October 1, 2021, Stratman contacted an individual he believed had access to 15-year-old female that Stratman could meet for sex. The individual Stratman contacted was working as an undercover law enforcement officer. From October 1, 2021, through January 4, 2022, Stratman and the undercover law enforcement officer communicated through the use of cell phones regarding the arrangement of sexual activity with the 15-year-old. During the cell phone communications, Stratman was primarily located in South Dakota and the undercover law enforcement officer was located in Omaha, Nebraska.
On January 2, 2022, Stratman booked a hotel room in Omaha which he intended to be used to meet with the 15-year-old. On January 4, 2022, Stratman traveled from South Dakota to Omaha, Nebraska, for purposes of engaging in sexual activity with the 15-year-old. After arriving in Omaha, Stratman communicated with the undercover law enforcement officer informing him he was ready to meet. When the undercover law enforcement officer arrived at the hotel, Stratman had gifts including candy and flowers he purchased for the 15-year-old. Stratman also paid the law enforcement officer $200 in cash for sexual activity he intended to have with the 15-year-old.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force