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Wednesday 6 July 2022
Kalispell woman sentenced to five years in prison for trafficking meth in Flathead ValleyRead the Press Release
MISSOULA — A Kalispell woman who admitted to conspiring to traffic methamphetamine in the Flathead Valley after acknowledging she had planned to take possession of a two-pound package of the drug was sentenced today to five years in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Destinee Rayne Hardesty, 40, pleaded guilty in March to conspiracy to possess with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that Hardesty assisted in the distribution of large amounts of meth in the Flathead Valley. In March 2020 in Kalispell, law enforcement officers made a controlled delivery of a package previously determined to contain two pounds of meth to a Kalispell residence. Hardesty walked up to the residence and when interviewed, admitted that she had planned to take possession of the package and distribute the meth to various customers in Kalispell. Hardesty further admitted that she communicated with other co-conspirators about when the drugs were arriving and opened three packages of meth and separated the drug into quantities for delivery. Hardesty further admitted she had made about 50 deliveries of meth over a year, kept the drug at her residence and was involved in paying for the meth shipments.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the Drug Enforcement Administration, Northwest Montana High Intensity Drug Trafficking Area Task Force and Missoula Drug Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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KC Man Sentenced for Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., man who was arrested when he fell asleep in another person’s car was sentenced in federal court today for illegally possessing a firearm.
Christopher Chappell, 31, was sentenced by U.S. District Judge Greg Kays to nine years in federal prison without parole.
On Nov. 16, 2021, Chappell pleaded guilty to being a felon in possession of a firearm.
Chappell was arrested on June 1, 2019, when Kansas City police officers responded to a call from a woman who found Chappell, whom she didn’t know, asleep in her Honda CRV. Officers found Chappell asleep in the driver’s seat of the vehicle, which was parked on the street. Chappell, who appeared to be impaired, was wearing a gun holster with a Smith & Wesson 9mm semi-automatic pistol. When officers inspected the vehicle, they saw the steering column had been completely destroyed.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Chappell has prior felony convictions for burglary, tampering with a motor vehicle, attempted aggravated assault on a law enforcement officer with a vehicle, and possession of a firearm by an unlawful user of a controlled substance.
This case was prosecuted by Assistant U.S. Attorneys Maureen Brackett and Matt Moeder. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department Secures Resolution in Madison County, Alabama, School Desegregation CaseRead the Press Release
The Department of Justice has secured an agreement with the Madison County School Board to provide equal educational opportunities for Black students and pave the way for the district to fulfill its obligations in a longstanding school desegregation case. The consent order, approved today by U.S. District Court Judge Madeleine Hughes Haikala of the Northern District of Alabama, requires the school district to take action to provide equal access to gifted and talented services and other academic programs; ensure non-discrimination in student discipline; and improve practices for faculty recruitment, hiring, assignment and retention.
“It is long past time to deliver on the promises of Brown v. Board of Education for our nation’s students,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We are committed to ensuring that all students receive the educational opportunities they deserve across the Madison County School District. The Civil Rights Division will continue to fight on behalf of students in school districts that have not yet fulfilled their legal obligation to eliminate racial segregation ‘root and branch.’”
This consent order will address findings from the Justice Department’s most recent review of the district, including that Black students faced unnecessary barriers to participating in gifted and advanced programs, that they were subjected to exclusionary discipline at disparate rates when compared to their white peers, that Black high schoolers were more likely than their white peers to be referred for subjective infractions, and that the district’s recruitment and hiring processes left several schools without a single Black faculty member. Under the terms of the consent order, the district will, among other requirements:
- Improve its gifted identification policies, training and practices; expand access to advanced placement and other advanced curricula; and identify and remove existing barriers for Black students;
- Engage a third-party consultant to conduct a comprehensive review of the district’s discipline policies and procedures; revise the code of conduct; train staff on classroom behavior management; and collect and review discipline data to identify and address trends and concerns;
- Review faculty hiring, recruitment and retention practices to identify barriers for diverse applicants, improve recruitment and retention of Black teachers and administrators, and ensure their equitable assignment to schools;
- Appoint a district-level administrator to oversee implementation of the agreement and professional development for faculty, staff and administrators; and
- Work with a newly-constituted and diverse Desegregation Advisory Committee.
The order also requires regular reporting to the court, the Justice Department and private plaintiffs represented by the NAACP Legal Defense Fund. The court will retain jurisdiction over the consent order during its implementation and the Justice Department will monitor the district’s compliance.
The Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law to ensure that all children can access the building blocks of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
Justice Department Announces Phase Two of Compensation Process for Western Union Fraud VictimsRead the Press Release
The Department of Justice announced today that it has begun phase two of the remission compensation process to provide recovery for Western Union fraud victims.
In 2017, Western Union entered into a deferred prosecution agreement (DPA) with the Department of Justice and agreed to forfeit $586 million. The Department of Justice previously distributed over $366 million to over 148,000 victims. Because additional forfeited funds remain available in this case, the Department of Justice has reopened the petition process to potential victims who did not previously submit a petition for remission.
Victims of fraud who sent a money transfer through Western Union between Jan. 1, 2004, and Jan. 19, 2017, can file a petition for remission and receive compensation for their fraud losses. Individuals who believe they may be victims may file a petition online or may obtain a petition form online at www.WesternUnionRemissionPhase2.com. The deadline to file a petition for remission is Aug. 31, 2022. More information regarding the remission process, including eligibility criteria, updates, and frequently asked questions is available at the remission website or by calling 1-855-786-1048.
“The department is pleased to have provided compensation to over 148,000 victims and hopes additional victims take the opportunity to file claims relating to the harms caused by these schemes,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Asset forfeiture is a tool critical for compensating crime victims.”
“The hard work of our dedicated investigators and prosecutors held Western Union accountable and brought justice to many individuals who perpetrated the fraud using the Western Union system,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “Though we are gratified those thousands of victims have already received compensation, our work continues as we urge those other fraud victims who have not yet submitted their petitions for remission to do so promptly so that they can also receive restitution.”
“The U.S. Postal Inspection Service is very pleased and honored to have been part of this cooperative effort in providing over $366 million in financial relief to so many victims,” said Inspector in Charge Damon E. Wood of the U.S. Postal Inspection Service’s Philadelphia Division. “As we move forward with the second phase of the Western Union Remission, we will continue to support the mission of ensuring monies are returned to their rightful owners.”
“Scammers used Western Union’s money transfer system because they knew the company turned a blind eye,” said Director Samuel Levine of the Federal Trade Commission’s (FTC) Bureau of Consumer Protection. “With our law enforcement partners, we continue to return money to those harmed by the company’s failures, and people still have until Aug. 31 to submit claims.”
Pursuant to the DPA, Western Union acknowledged responsibility for its criminal conduct, which included violations of the Bank Secrecy Act and aiding and abetting wire fraud, and agreed to forfeit $586 million, which has been made available to compensate victims of an international consumer fraud scheme. Western Union simultaneously resolved a parallel civil investigation with the FTC.
According to court documents, fraudsters targeted consumers, including seniors, through multiple scams and convinced their victims to send money through Western Union. Three specific scams directed towards seniors included the so-called grandparent scam, where the fraudster would pose as the victim’s relative in purported need of immediate money to avoid personal harm; lottery or sweepstakes scams, where the fraudster would tell the victim that he or she had won a large cash prize but had to pay fees, such as taxes, to claim the prize; and romance scams, where the fraudster would pose as an online love interest and request funds for a visit or for another purpose.
Certain owners, operators, or employees of Western Union locations were complicit in the scheme. Western Union aided and abetted the scheme by failing to suspend or terminate complicit agents and by allowing them to continue to process fraud-induced monetary transactions. Western Union has fulfilled its obligations under the DPA, and the court granted the motion to dismiss the criminal information against Western Union.
The Department of Justice, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime and acknowledges the significant assistance of the U.S. Postal Inspection Service Philadelphia Division’s Harrisburg Office in the victim compensation process and in conducting the criminal fraud investigation. Since fiscal year 2000, the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), which will oversee the remission process, has successfully used its specialized expertise to return billions in forfeited assets to victims of crime. The victim compensation payments in this case would not have been possible without the extraordinary efforts of MLARS and the U.S. Attorneys’ Offices for the Middle District of Pennsylvania, the Central District of California, the Eastern District of Pennsylvania, and the Southern District of Florida. The FBI’s Los Angeles Field Office, IRS-Criminal Investigation, Homeland Security Investigations, the Federal Reserve Board, the Consumer Financial Protection Bureau Office of Inspector General, and the Department of the Treasury Office of Inspector General provided valuable assistance. The FTC conducted the civil fraud investigation.
Gilardi & Co. LLC is serving as the remission administrator in this matter. Gilardi & Co. LLC and the Department of Justice will not ask for any payment to participate in this remission process.
For more information on how to protect yourself from fraud, please visit www.uspis.gov or www.consumer.ftc.gov.
Iowa Man Sentenced to More Than 20 Years for Drug and Firearm ConvictionsRead the Press Release
Acting United States Attorney Steven Russell announced on July 6, 2022, Cody Lee Fischer, 50, of Luxemburg, Iowa, was sentenced today in federal court in Omaha, Nebraska, for Possession with the Intent to Distribute Methamphetamine and Possession of a Firearm in relation to a Drug Trafficking Crime. United States District Court Judge Brian C. Buescher sentenced Fischer to 188 months’ imprisonment on the drug charge and a consecutive 60 months’ imprisonment on the firearm charge. After completing his term of imprisonment, Fischer will be required to serve a 5-year term of supervised release as there is no parole in the federal system.
On August 26, 2021, an Omaha Police Officer conducted a traffic stop on a vehicle that failed to maintain its lane at mile marker 441 eastbound on Interstate 80. Fischer was a passenger in the vehicle. A Police Service Dog was deployed during the stop and alerted to the odor of narcotics coming from within the vehicle. A subsequent search revealed a bag of suspected methamphetamine in the glove box. Two firearms were located in a black duffle bag on the back seat of the vehicle. Both were black semi-automatic handguns loaded with 9 rounds of ammunition. A search of the trunk revealed approximately five pounds of methamphetamine in multiple sandwich bags.
Fischer was transported to the OPD impound lot for questioning where he admitted traveling from Denver, Colorado with five pounds of methamphetamine to sell in Luxemburg. Fischer also admitted he had gone to Denver on previous occasions to pick up pound quantities of methamphetamine for distribution. He told officers that he kept the guns with him to feel safer.
Fischer’s co-defendant, who was the driver of the vehicle, has pleaded not guilty and his matter is set for a pretrial hearing on July 7, 2022.
This case was investigated by the Omaha Police Department and the Drug Enforcement Administration.
Husband and Wife Sentenced to Federal Prison for Conspiracy Related to Fraudulent Tax Filings of Maryland Auto Body Repair ShopRead the Press Release
Baltimore, Maryland – Yesterday U.S. District Judge Paula Xinis sentenced Ercin Kalender, age 61, of Alexandria, Virginia and Lizette Kalender, age 44, of Alexandria, Virginia to one year and one day in federal prison, followed by three years of supervised release, for conspiracy related to tax fraud within their corporate filings and business taxes. Judge Xinis also ordered the Kalenders to pay restitution of $2,219,602.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
“Ercin and Lizette Kalender committed tax fraud for many years by purposely hiding their company’s true income to avoid paying their fair share, and then brazenly shared their criminal activity with potential buyers when trying to sell their business,” said IRS-CI Special Agent in Charge Darrell Waldon, Washington, D.C. Field Office. “Our IRS-CI special agents will continue to seek out those who illegally benefit from unreported income and create unfair business advantages for themselves in the community.”
According to their guilty pleas, Ercin Kalender owned and operated Butch’s, a very successful Capital Heights, Maryland auto body shop. Lizette Kalender worked at the autobody shop as a manager and bookkeeper. In that capacity, she handled tax reporting matters and regularly worked with an outside tax preparation and accounting agency, which prepared the taxes for Butch’s and the personal tax returns for Ercin and Lizette.
For the fiscal tax years of 2015, 2016, 2017, and 2018, Butch’s reported its income and expenses to the federal government by filing Forms 1120 with the Internal Revenue Service. During this period, the Kalenders conspired with each other to include materially false information on their Form 1120s filed with the IRS on behalf of Butch’s. The false information included on the Form 1120s included a significantly lower report of gross income and taxable income.
The Kalenders jointly worked to divert revenue from Butch’s and avoid significant revenues being deposited into Butch’s corporate bank accounts and reported to the IRS. As part of the conspiracy, the Kalenders kept two sets of financial records for Butch’s, one that reported the actual revenues and profits of the business and a second set that reported lower figures which were used for tax purposes. The Kalenders’ conspiracy to submit false tax returns also involved cashing checks, received at Butch’s at a Prince George’s check cashing facility (Business A). The checks cashed at Business A were not reported on Butch’s tax returns and resulted in the underreporting of Butch’s annual income for fiscal years 2015, 2016, 2017, and 2018 by more than $6.6 million. The corresponding tax loss to the IRS for the four years was $2,219,602.
As stated in their plea agreements, in August 2018, the Kalendars sought to sell Butch’s. As part of the investigation, an undercover federal agent posed as a potential buyer and had contact with the Kalenders. During their conversations, Ercin and Lizette explained the profitability of Butch’s and revealed their practices of the underreporting of revenues and income from Butch’s. During one conversation, while Lizette was present, Ercin informed the uncover agent that he had a regular practice of taking checks intended to pay for auto body repair work and cashing them at Business A. Some of the checks were made payable to Butch’s while other customer checks were written to Butch’s customers, or jointly payable to Butch’s and the customers.
Further, Ercin explained that while Butch’s filed tax returns showed $2.2 million in gross receipts, the actual gross receipts were closer to $3.1, $4.2, and $3.9 million for the fiscal years for 2015, 2016, and 2017; respectively. He also stated that his father had done this for years before he had taken over Butch’s operations and that his father used Business A to cash checks for 30-35 years. Ercin continued to explain the conspiracy by informing the undercover agent that he regularly cashed $50,000-60,000 at a time in off the books checks at Business A but estimated that he had reduced the amounts in recent years to approximately $30,000 to $35,000 cashed per visit to Business A. Ercin also informed the agent that Lizette also reported sizeable W-2 income, which helped them evade scrutiny by the IRS.
While working with the outside tax preparation and accounting agency, Lizette deliberately hid the money flowing through Business A. Lizette sent bank statements for the corporate accounts, check stubs, credit card statements, payroll records, and other business records but withheld the revenue received through the checks cashed at Business A. Thus, underreporting taxable income to the tax preparation and accounting agency.
During conversations with the undercover agent, Lizette showed records to the undercover agent displaying total sales of $4.3 million and $3.9 million for the fiscal years 2017 and 2018. Lizette also talked about pulling out invoices for additional customers from business records to cause business records to match their bank records.
As detailed in their plea agreements, the Kalenders knowingly caused a portion of the employee’s wages to be paid in cash and falsely reported the wages of Butch’s employees on Forms 941 filed with IRS. In a conversation with the undercover agent, Ercin stated that he paid all his employees’ extra compensation in cash to avoid tax obligations except for one secretary who was not paid under the table. This system of paying employees in cash deprived the State of Maryland of tax revenue and subverted the taxation systems of the IRS and Maryland. In 2019, after the Kalenders became aware of the IRS’s investigation, Butch’s reported gross receipts of more than $4.5 million, an increase of more than $2.2 million over the fiscal year 2018.
United States Attorney Erek L. Barron commended the IRS-CI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted 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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Hamden Man Charged with Mailing Numerous Threatening LettersRead the Press Release
The U.S. Attorney’s Office for the District of Connecticut and the U.S. Postal Inspection Service, Boston Division, announced that GARRETT SANTILLO, 43, of Hamden, was arrested today on a federal criminal complaint charging him with mailing numerous threatening letters to individuals in Connecticut and elsewhere.
As alleged in court documents and statements made in court, between approximately March and June 2022, Santillo mailed more than 100 letters containing threatening and hateful statements, including threats of violence, to journalists, judges and other public officials and individuals in Connecticut and elsewhere. Several letters mailed by Santillo contained this language: “If you don’t obey what this letter says, along with others including people in Washington DC and everywhere and you. You all will be killed!!”
Santillo appeared today before U.S. Magistrate Judge Thomas O. Farrish is Hartford and was released on a $100,000 bond.
As noted in court documents, Santillo has been federally prosecuted, convicted and sentenced for mailing threatening letters three prior times, and he completed his most recent term of federal supervision in August 2021.
The charge of mailing a threatening communication carries a maximum term of imprisonment of five years. If the threatening communication is addressed to a federal judge or federal law enforcement officer, the maximum penalty is 10 years of imprisonment.
A complaint is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Postal Inspection Service, U.S. Marshals Service, Federal Bureau of Investigation, Connecticut State Police, South Carolina Law Enforcement Division (SLED) and the Hamden, Milford, Ridgefield and New Haven Police Departments. The investigation has also been assisted by the offices of the Connecticut Chief State’s Attorney, New Haven State’s Attorney and Litchfield State’s Attorney.
The case is being prosecuted by Assistant U.S. Attorney Michael S. McGarry.
Grand Rapids Man Sentenced to 42 Months for RobberyRead the Press Release
January 2022 Robbery of Lake Michigan Credit Union
GRAND RAPIDS, MICHIGAN — James Paul Sciamanna, 49, from Grand Rapids, was sentenced to serve 42 months in the Federal Bureau of Prisons for committing the robbery. U.S. District Judge Hala Y. Jarbou also ordered Sciamanna to serve 3 years of supervised release following his release from prison, pay a $1,250 fine, and make restitution for the unrecovered money.
James Paul Sciamanna
On January 4, 2022, Sciamanna robbed the Lake Michigan Credit Union located at 2720 Lake Michigan Drive NW, in Walker, Michigan. Sciamanna entered the building, wearing a mask, wig and knit hat. He showed the teller a demand note that said words to the effect “Don’t panic. I have a gun. I will shoot. Give me everything you have. I have bullets.” The teller complied and gave Sciamanna $3,734.
Sciamanna fled the credit union and ran to a truck with a California license plate that was parked nearby. Police recovered video surveillance from a neighboring business that captured an image of the getaway vehicle.
An officer with the Walker Police Department recognized the truck after having recent contact with Sciamanna. That evening, Grand Rapids Police officers found the truck parked on the street in a Grand Rapids neighborhood. Police officers canvased the area and found Sciamanna hiding in the bushes. After he was advised of his rights, Sciamanna confessed to the robbery and told police where to find money that he had buried and identified the people he gave money to. Police recovered all but $11 of the stolen money.
At sentencing, Judge Jarbou expressed skepticism of Sciamanna’s claim that he only did it because of his recent drug addiction and noted his long history of drug use and prior efforts at drug addiction counseling. “How can I be assured that you won’t do this again?” Judge Jarbou observed that “walking up to a teller and threatening them . . . has impact on the person;” adding, it is a “traumatic thing.” The judge stated her desire to “protect the teller.”
U.S. Attorney Mark Totten stated, “Robbers of banks and credit unions threaten vital community institutions and inflict trauma on the tellers and other employees who experience these ordeals. I am grateful to the law enforcement officers and members of my team who apprehended and successfully prosecuted Mr. Sciamanna. My office will hold robbers accountable and will never lose sight of the individuals victimized by crime.”
“Mr. Sciamanna threatened the life of an innocent bank teller, which not only traumatized her but deprived her of her right to feel safe and secure in her workplace,” said James A. Tarasca, Special Agent in Charge of the FBI in Michigan. “The FBI remains committed to working with our law enforcement partners to bring violent offenders to justice and to making our communities safer places to live and work.”
This case was prosecuted by Assistant U.S. Attorney Daniel Mekaru, in cooperation with the Kent County Prosecutor’s Office, and investigated by the Grand Rapids Police Department, and the FBI with the assistance of the Walker Police Department.
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Four Defendants Plead Guilty in $11.5 Million Fraud CaseRead the Press Release
LITTLE ROCK—Four women, all sisters, have pleaded guilty to their involvement in defrauding the U.S. Department of Agriculture out of over $11.5 million that was intended to benefit farmers who had been discriminated against. Lynda Charles, 72, of Hot Springs; Rosie Bryant, 74, of Colleyville, Texas; Delois Bryant, 75, of North Little Rock; and Brenda Sherpell, 72, of Gainesville, Texas, each pleaded guilty to conspiracy to commit mail fraud and to defraud the Internal Revenue Service today before Chief United States District Judge D. Price Marshall. Chief Judge Marshall will sentence the defendants at a later date.
The four defendants admitted in court today that from 2008 until 2017, they solicited people to file false claims asserting they were discriminated against when they tried to get assistance from USDA for their farming operations. A fifth defendant, Niki Charles, is the daughter of Lynda Charles. A sixth defendant, Everett Martindale, worked as an attorney and acted as the legal representative for most of the claimants that the five women recruited. Both Niki Charles and Martindale are set for trial on August 30, 2022.
The sisters also admitted today that they hired a tax preparer to falsify tax returns, resulting in failure to report over $4.6 million to the Internal Revenue Service. That tax preparer, Jerry Green, pleaded guilty in January 2021.
As documented in plea agreements, the defendants submitted claims related to two matters: the Black Farmers Discrimination Litigation (BFDL) settlement and the Hispanic and Women Farmers and Ranchers (HWFR) claim program. The BFDL settlement resulted from a class action lawsuit filed in 2008 in which a group of black farmers claimed they had been discriminated against when they applied for farm credit, credit servicing, or farm benefits from USDA. Similarly, the HWFR litigation originated when groups of Hispanic and women farmers filed separate lawsuits against USDA, also alleging discrimination in their farm benefit programs.
Both BFDL and HWFR resulted in a claims process where farmers who could show they had applied for participation in a USDA benefit program and believed they had been discriminated against could make a claim for financial relief. A successful claim resulted in an award of $62,500. Of that, $50,000 would be made payable to the claimant, and $12,500 would be transferred directly to the Internal Revenue Service as a tax withholding. Altogether, the sisters were involved with 192 claims, almost all of which were successful, resulting in a loss of over $11.5 million. The claims were false because the claimants had not suffered discrimination and, in most cases, had not even attempted to farm.
The indictment alleges that Martindale would deposit claim checks into his law firm trust account, issue a check from that trust account to the claimant, and withhold his attorney fee. For both BFDL and HWFR, attorney fees were restricted to $1,500 per claimant. The indictment alleges that the four sisters entered an agreement with Martindale in which they would split the attorney fee. The sisters also demanded and received additional money from the claimants themselves.
The money received from a claim was income that should have been reported on the claimant’s tax return. The sisters and Green admitted that Green provided tax preparation services for the claimants they had recruited and that Green falsified the tax returns in order to create a tax refund.
Three of the sisters—Lynda Charles, Rosie Bryant, and Delois Bryant—filed false tax returns of their own and used money from the conspiracy to buy numerous homes and other real properties, a Chevrolet van, and a Mercedes G550. Under the plea agreement, the sisters are required to relinquish any claim to the vehicles immediately and repay, by time of sentencing, the fraud money they used to buy the real properties.
The investigation is being conducted by USDA-OIG and IRS with assistance from the United States Marshals Service and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Attorneys Cameron McCree, Bart Dickinson, and Amanda Fields.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former Texas Chief Deputy Pleads Guilty to Federal Civil Rights Offense for Assaulting DetaineeRead the Press Release
Steven “Craig” Shelton, 61, pleaded guilty today in federal court in the Eastern District of Texas to violating an arrestee’s civil rights by using excessive force against him. Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Brit Featherston for the Eastern District of Texas, and Special Agent in Charge Matthew DeSarno of the FBI Dallas Field Division made the announcement.
During the plea hearing, Shelton admitted that on or about Sept. 21, 2021, while he was acting as the Chief Deputy and second-in-command of the Van Zandt County Sheriff’s Office, he repeatedly struck a handcuffed and compliant arrestee in the face. Shelton further admitted that his acts, which occurred in front of several other officers in the Rolling Oaks area of Wills Point, Texas, caused bodily injury to the arrestee. Shelton admittedly hit the arrestee out of frustration, despite knowing that there was no legitimate, law enforcement need to use force.
“Those who hold leadership positions inside sheriff’s offices violate the public trust when they abuse their official authority and position to carry out assaults on people detained in their custody,” said Assistant Attorney General Clarke. “The Department of Justice will continue to hold accountable law enforcement officers, at every level, who abuse their authority by using excessive force to deprive people of their constitutional rights.”
“It is the undisputed duty of a law enforcement officer to protect and serve,” said U.S. Attorney Brit Featherston. “Public trust in law enforcement is eroded when officers do not follow the laws they are sworn to enforce, and my office will continue to hold those accountable who think they are above the law.”
“Officers who use excessive force break the trust of their communities and their oath to protect and serve,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Violating the civil rights of an arrestee is a clear abuse of authority and will not be tolerated by the FBI. We are dedicated to upholding the constitutional rights of everyone and expect those in law enforcement to do the same.”
With his guilty plea and pursuant to the terms of the plea agreement, the defendant faces a 44-month prison sentence.
A sentencing date will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the FBI Dallas Field Division. It is being prosecuted by Assistant U.S. Attorney Tracey Batson for the Eastern District of Texas and Trial Attorneys Kathryn E. Gilbert and Matthew Tannenbaum of the Justice Department’s Civil Rights Division.
Former Social Security Employee of West Sacramento Sentenced to 4 Years in Prison for Defrauding the Social Security AdministrationRead the Press Release
SACRAMENTO, Calif. — Eric Lemoyne Willis, 46, of West Sacramento, was sentenced today to four years in prison for conspiracy to defraud the United States, theft of government property, and aggravated identity theft, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Willis and co-defendants, Darron Dimitri Ross, 36, of Charlotte, North Carolina, and Joshua Bilal George, 39, of San Diego, conspired to steal public money from the Social Security Administration (SSA). Willis worked as an SSA Operations Supervisor in Sacramento and Lodi from 2015 until his departure in January 2018. During this timeframe, Willis used his authority as an SSA employee to access the confidential Social Security records of numerous Social Security beneficiaries. These records contained personally identifiable information (PII) including names, addresses, Social Security numbers, dates of birth, account numbers, family information, and benefit payment amounts. Willis would seek out PII for beneficiaries who used direct deposit for payment of large benefits. Willis then gave this PII to Ross who resided in North Carolina.
Ross and George’s roles in these crimes included calling numerous SSA field offices across the country and using the stolen PII to impersonate the beneficiaries. Ross also opened at least 44 online bank accounts under fraudulent identities to receive diverted SSA benefit payments. If Ross succeeded in convincing an SSA representative that he was the beneficiary, he would request that the beneficiary’s direct deposit account be changed to one of the conspirators’ fraudulent accounts. The SSA then proceeded to deposit benefit payments into the fraudulent account. The conspirators then withdrew the funds at ATMs and spent additional funds using debit cards associated with the accounts. Ross also transferred a portion of the stolen proceeds to Willis for his participation in these crimes. After the fraud was detected, SSA stopped depositing benefit payments.
The SSA has identified over 200 beneficiaries nationwide who were targeted by these crimes, and it suffered at least $696,912 in fraud losses caused by the defendants’ offenses. The defendants spent the proceeds of their crimes on, among other things, trips to Las Vegas and luxury items including Rolex watches. During sentencing, the Court ordered Willis to pay full restitution to the SSA.
“Mr. Willis abused his position with SSA for his personal gain, setting up an elaborate scheme with co-conspirators that defrauded those who needed it the most of over $690,000 in Social Security benefits. This sentence holds him accountable for his egregious criminal actions,” said Dawn Nolan, Special Agent in Charge, San Francisco Field Division, of the Social Security Administration Office of the Inspector General. “I thank the U.S. Attorney’s Office for prosecuting this individual and protecting the integrity of SSA programs.”
This case is the product of an investigation by the Social Security Administration – Office of the Inspector General, Department of Homeland Security – Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Ross and George pleaded guilty to similar charges and are scheduled to be sentenced by U.S. District Judge William B. Shubb in August 2022. They face up to 20 years in prison for wire fraud and up to five years in prison for conspiracy to defraud the United States. Ross also faces a mandatory sentence of two years in prison for aggravated identity theft, consecutive to any other sentence imposed. Each of these offenses also carries a maximum fine of $250,000. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former IRS Employee Sentenced to Prison for Tax EvasionRead the Press Release
A former IRS employee was sentenced to 13 months in prison today following a guilty plea in March in which he admitted to filing false tax returns and providing fabricated records to the IRS in an attempt to obstruct an audit of those returns.
According to court documents, Wayne M. Garvin, 57, currently of Columbia, South Carolina, was a long-time IRS employee who most recently worked as a Supervisory Associate Advocate with the IRS’s Taxpayer Advocate Service in Philadelphia. For the years 2012 through 2016, while working as an IRS employee, Garvin prepared and filed with the IRS personal income tax returns on which he claimed false deductions and expenses associated with rental properties, fictitious real estate taxes on his personal residence and fabricated charitable contributions. Moreover, on his 2013 tax return, Garvin deducted nearly $16,000 in false expenses associated with his employment with the U.S. Army Reserves. Although Garvin was formerly a member of the U.S. Army Reserves, he did not perform any reservist duty in 2013 and was not entitled to deduct any expenses related to that employment. In total, Garvin caused a loss to the IRS of more than $74,000.
Court documents also show that after the IRS began an audit of his 2013 and 2014 tax returns, Garvin attempted to obstruct the audit by submitting fictitious documents to the IRS. For example, to justify the false deductions and expenses on his tax returns, Garvin fabricated and submitted to the IRS auditors receipts from a church, invoices from a contractor and a letter from the Department of the Army. After learning he was under criminal investigation, Garvin later submitted some of the same fraudulent documents to IRS-Criminal Investigation.
In addition to the term of imprisonment, Garvin was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $ $74,662.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Melissa S. Siskind of the Justice Department’s Tax Division and Assistant U.S. Attorney Tiwana Wright for the Eastern District of Pennsylvania prosecuted the case.
Former IRS Employee Sentenced to over One Year in Prison for Tax EvasionRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced that Wayne Garvin, 57, currently of Columbia, South Carolina, and a former IRS employee, was sentenced to 13 months in prison, three years of supervised release, and ordered to pay $74,662 restitution for filing false tax returns and providing fabricated records to the IRS in an attempt to obstruct an audit of those returns.
In March 2022, the defendant pleaded guilty to multiple tax fraud charges. Garvin was a long-time IRS employee who most recently worked as a Supervisory Associate Advocate with the IRS’s Taxpayer Advocate Service in Philadelphia. For the years 2012 through 2016, while working as an IRS employee, Garvin prepared and filed with the IRS personal income tax returns on which he claimed false deductions and expenses associated with rental properties, fictitious real estate taxes on his personal residence, and fabricated charitable contributions. Moreover, on his 2013 tax return, Garvin deducted nearly $16,000 in false expenses associated with his employment with the U.S. Army Reserves. Although Garvin was formerly a member of the U.S. Army Reserves, he did not perform any reservist duty in 2013 and was not entitled to deduct any expenses related to that employment. In total, Garvin caused a loss to the IRS of more than $74,000.
Further, court documents also show that after the IRS began an audit of the defendant’s 2013 and 2014 tax returns, Garvin attempted to obstruct the audit by submitting fictitious documents to the IRS. For example, to justify the false deductions and expenses on his tax returns, Garvin fabricated and submitted to the IRS auditors receipts from a church, invoices from a contractor and a letter from the Department of the Army. After learning he was under criminal investigation, Garvin later submitted some of the same fraudulent documents to IRS-Criminal Investigation.
The case was investigated by the Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant United States Attorney Tiwana Wright and Trial Attorney Melissa S. Siskind of the Department of Justice Tax Division.
Former College Football Player Sentenced for Firearms TraffickingRead the Press Release
NORFOLK, Va. – A Chesapeake man was sentenced today to 18 months in prison followed by two years of supervised release for conspiracy to make false statements in connection with 45 firearm transactions.
“Less than two weeks ago, the President signed into law the Bipartisan Safer Communities Act, which among other things increases the penalties for firearm traffickers and introduces new laws to address the proliferation of illegal firearms. Congress and the American people have spoken: we will not tolerate firearm traffickers, straw purchasers, and felons in possession of guns,” said Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia. “Those who traffic illegal firearms, like this defendant, are fueling the fires of gun violence, and with our law enforcement partners we will continue to relentlessly pursue those who seek to profit from these crimes.”
“Today’s announcement sends a clear message of accountability because we know all too well that purchasing firearms for people other than yourself can yield deadly consequences. We at ATF continue to work diligently to ensure that people who violate established firearm related laws and commit acts of violence like those involved in this investigation will not be tolerated. I am proud that our agents worked collaboratively with the United States Attorney’s Office to ensure justice was served,” said ATF Special Agent in Charge Charlie J. Patterson. “The ATF Washington Field Division will continue to collaborate with our partners to ensure citizens are protected against those who violate federal firearm laws which ultimately may negatively affect our communities.”
According to court documents, from June 2019 through June 2020, Kevin Staton, Jr., 24, engaged in the business of buying and selling 45 firearms without a license. To buy the firearms he trafficked, Staton made false official statements on ATF forms. Staton claimed he was the actual buyer of the firearms, but, in truth, he was purchasing the firearms for other individuals or with the intent to quickly resell them. Staton would coordinate with co-conspirators to identify firearms for purchase through online firearm marketplaces.
When Staton, a two-time All-American college football player, was interviewed by ATF agents, he told them that “Guns are like money.”
One of the firearms Staton was convicted of trafficking was recovered seven months after his purchase in Philadelphia and was connected to a homicide on March 21, 2020; a shooting involving multiple victims on May 28, 2020; and a shooting into a residence on May 30, 2020. Other firearms Staton trafficked were recovered throughout the country in connection with other homicides and shootings, and in the possession of convicted felons.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Ramin Fatehi, Norfolk Commonwealth’s Attorney; and Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division, made the announcement after sentencing by Chief U.S. District Judge Mark S. Davis.
Assistant U.S. Attorney John F. Butler and Special Assistant U.S. Attorney Graham M. Stolle prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-141.
Foreign National Sentenced to More Than Four Years in Federal Prison and Ordered to Pay Restitution for FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Olatunde Vincent, age 35, of Pikesville, Maryland, to 50 months in federal prison yesterday, followed by 2 years of supervised release, for conspiracy to commit wire fraud and aggravated identity theft. Judge Gallagher ordered Vincent to pay more than $240,000 in restitution. The charges stemmed from a fraud scheme in which Vincent and other conspirators used false identification documents containing the personal identifying information real persons to open bank accounts, which were used to receive money obtained from victim companies and individuals.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Special Agent in Charge Selwyn Smith of Homeland Security Investigations (HSI) Baltimore; Acting Special Agent in Charge Mark Lewis of the U.S. Department of State, Diplomatic Security Service (DSS), Washington Field Office; Acting Special Agent in Charge Troy Springer, of the Washington Regional Office, U.S. Department of Labor - Office of Inspector General; and Acting Postal Inspector in Charge Tira Hayward of the U.S. Postal Inspection Service - Washington Division.
According to Vincent’s plea agreement and other court documents, in early 2019, Vincent and others, including Idowu Raji, Hameed Adesokan, Adewumi Abioye, Lukman Salam, Akolade Ojo, and Damilola Lawal, conspired to defraud multiple businesses, individuals, and financial institutions. As part of the scheme to defraud, Vincent and Raji used counterfeit identification documents in real persons’ names, while other conspirators used fraudulent passports, created and used limited liability companies to further hide their identities, and opened bank accounts in the names on the identification documents and passports or the limited liability companies. Other conspirators made false representations to companies and individuals to induce them to fraudulently send money to the bank accounts. The victims were deceived through look-a-like email addresses and other fraudulent means into sending money to bank accounts opened and controlled by Vincent and other conspirators. Pursuant to the conspiracy, Vincent made multiple false representations to financial institutions and provided the financial institutions with fake documents. After the fraud proceeds were credited to the bank accounts, Vincent and others engaged in multiple transactions with the fraud proceeds, including ATM withdrawals and wire transfers at the request of Raji and other conspirators.
On June 9, 2022, Hameed Adesokan, age 35, of New Jersey, was sentenced to 46 months in federal prison, for his role in the related fraud scheme and was ordered to pay $2,007,475 in restitution. In May 2022 co-defendant Idowu Raji, age 40, of Baltimore County, Maryland, was sentenced to 94 months in federal prison and ordered to pay $1,793,472 in restitution for this and a related case. Adewumi Abioye, age 35, of Randallstown, Maryland; and Lukman Salam, age 37, of Bear, Delaware were sentenced to 27 months and 30 months in federal prison, respectively. Akolade Ojo, age 21, of Owings Mills, Maryland, and Damilola Lawal, age 32, of Windsor Mill, Maryland, are awaiting sentencing.
United States Attorney Erek L. Barron commended HSI, DSS, the U.S. Department of Labor-OIG, and the U.S. Postal Inspection Service for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case and Paralegal Joanna Huber, who assisted on the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/report-fraud.
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Final Defendant in Hotel and Casino Kidnapping Pleads Guilty to His Role in the Kidnapping and Robbery SchemeRead the Press Release
Greenbelt, Maryland – Tray David Sherman, age 27, of Washington, D.C. pleaded guilty on Friday, July 1, 2022, to kidnapping.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Wayne Jacobs of the Federal Bureau of Investigation - Washington Field Office Criminal Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, on February 3, 2021, Sherman and his co-defendants Darius Young a/k/a “Mup”, Christopher Allen Young, Anthony Erik Hebron, and Lamar Perkins, worked together to kidnap a victim from a Maryland casino and hotel.
As stated in his guilty plea, Sherman and Hebron met Victim A at the hotel and casino, where they told Victim A that they would get women and money for Victim A if Victim A got them cocaine and accompanied them to Southeast Washington, D.C. At approximately 7:30 a.m., Victim A agreed to travel to Southeast Washington, D.C. in Sherman’s car with Hebron.
At 7:54 a.m., Sherman, Hebron, and Victim A arrived in D.C., where Victim A obtained cocaine from Victim A’s cocaine supplier and returned to Sherman’s car. Victim A then agreed to travel to a location with Sherman and Hebron in Southeast, D.C., where Victim A believed that Sherman and Hebron would provide Victim A with women and/or money in exchange for cocaine. Sherman then drove Hebron and Victim A to Southeast D.C.
At 8:12 a.m., Young received a call from Hebron. A minute later, Young called Mup to report that Sherman and Hebron had “snatched” Victim 1. By 8:30 a.m., Sherman’s vehicle arrived at a location in Southeast D.C. where Young and Mup entered Sherman’s vehicle with Hebron, Sherman, and Victim A inside. Hebron then pointed a gun at Victim A while conspiracy members took Victim A’s cocaine, cellphone, wallet, watch, and hotel key.
Sherman, Hebron, Young, and Mup then demanded the code to the safe in Victim A’s hotel room. When Victim A refused, Hebron struck Victim A in the forehead with the gun. In response, Victim A provided the code to his safe. Young and Mup then exited Sherman’s vehicle with Victim A while Sherman and Hebron drove back to Victim A’s hotel room.
As Hebron and Sherman traveled back to the hotel and casino, Mup and Christopher Young led Victim A at gunpoint to a utility room inside a Southeast D.C. apartment building. Inside the utility room, Mup and Young repeatedly assaulted Victim A, threatened Victim A’s life, demanded Victim A’s PIN number to his ATM card, and demanded information about the items located in his hotel room. Young and Mup then relayed this information to Hebron and Sherman by phone.
After changing clothes, Hebron and Sherman accessed Victim A’s hotel room where they stole Victim A’s property, including a gaming system, $1,500 in casino chips, and approximately $6,000 in cash.
Sherman and Hebron then fled from the hotel in Sherman’s car and communicated with their co-conspirators to confirm that they had finished stealing Victim A’s items and were ready to link up with the other conspiracy members. Moments later, law enforcement located Victim A, who had sustained several injuries, including a bloody wound on his forehead, a broken nose, and cuts on his mouth and eye.
As stated in his guilty plea, on February 8, 2021, law enforcement executed a search warrant on Sherman’s vehicle where officers located three black gloves, a black mask, and the same clothing that Sherman and Hebron wore during the robbery. Sherman was subsequently arrested on March 31, 2021, in Germantown, Maryland. At the time of his arrest, officers executed a second search warrant on Sherman’s vehicle, where they located a digital scale with white residue, a black vest with ballistic plates, a .40 caliber handgun, and 27 rounds of .40 caliber ammunition.
Co-defendants Anthony Erik Hebron, a/k/a “Pain”, age 29; Lamar Jamal Perkins, age 28; and Christopher Allen Young, a/k/a “40,” age 27, all of Washington, D.C pleaded guilty to conspiracy to commit kidnapping. Hebron is expected to be sentenced to 14 years in federal prison at his sentencing hearing on August 8, 2022, at 10:00 a.m. Christopher Young was sentenced to more than 10 years in federal prison on May 4, 2022. Perkins was sentenced to 10 years in federal prison on May 23, 2022. Darius Young, a/k/a “Mup” was sentenced to 13 years in federal prison on June 27, 2022.
Sherman and the government have agreed that, if the Court accepts the plea agreement, Sherman will be sentenced to no less than 8 years and no more than 10.5 years in federal prison. U.S. District Judge George J. Hazel has scheduled sentencing for October 12, 2022, at 10 a.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron commended the FBI Washington and the FBI Baltimore Field Offices and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant and Special Assistant U.S. Attorney Jared Engelking, who prosecuted the case, and thanked Assistant U.S. Attorney Leah Grossi for her assistance.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Felon Sentenced to Prison for Unlawful Possession of A FirearmRead the Press Release
RENO, Nev. – A Gardnerville, Nev., resident was sentenced on June 27 by Chief U.S. District Judge Miranda M. Du to 51 months in prison followed by three years of supervised release for unlawful possession of a firearm.
Jay Loren Prater (41) pleaded guilty in March 2022 to one count of felon in possession of a firearm.
According to court documents, Prater is a member of the Northern Riders, a California prison gang, and formerly a member of several disbanded motorcycle gangs in the region. On August 25, 2021, Douglas County deputies stopped Prater for a traffic violation. A law enforcement K9 alerted to the presence of narcotics in Prater’s car. Inside Prater’s car deputies found a fully loaded Glock 17, 9mm pistol in the center console, approximately 15 grams of methamphetamine, along with other drug paraphernalia indicative of distribution. Prater is prohibited from possessing a firearm due to a prior felony conviction for voluntary manslaughter in San Joaquin County, California. He later admitted to carrying the firearm while selling methamphetamine.
U.S. Attorney Jason M. Frierson for the District of Nevada, Assistant Special Agent in Charge Kevin Adams for the Drug Enforcement Administration (DEA), and Sheriff Daniel J. Coverley of the Douglas County Sheriff’s Office made the announcement.
This case was investigated by members of the Regional Gang Task Force, comprised of investigators from the Douglas County Sheriff’s Office and Lyon County Sheriff’s Office, as well as ATF and DEA. Assistant U.S. Attorney Andolyn Johnson prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a nationwide program by the Department of Justice that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Department announced the reinvigoration of PSN. For more information about PSN, visit www.justice.gov/usao-nv.
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Federal Judge Hands Down Ten-Year Sentence, Lifetime of Supervised Release to Former Georgia Pastor for Sexually Assaulting Ugandan MinorRead the Press Release
MACON, Ga. – A former pastor from Georgia who was conducting missionary work in Uganda when he sexually assaulted a girl under his care was sentenced by a federal judge this evening to serve above the guideline sentencing range for his crime.
Eric Tuininga, 45, of Milledgeville, Georgia, was sentenced to serve 120 months in prison to be followed by a lifetime of supervised release and $20,000 in restitution to the victim by Chief U.S. District Judge Marc T. Treadwell after he previously pleaded guilty to one count of engaging in illicit sexual conduct in foreign places. In addition, Tuininga will have to register as a sex offender for life upon his release from federal prison. There is no parole in the federal system.
“I want to recognize the true bravery displayed by the Ugandan girl for speaking out when she was assaulted by a trusted person of power from another country, courageously seeking justice across continents,” said U.S. Attorney Peter D. Leary. “Law enforcement – both abroad and here at home – took on a challenging international case. Homeland Security Investigations’ Child Exploitation Unit worked tirelessly to ensure that the truth was uncovered and the defendant was held accountable for his crime.”
According to court documents, a U.S. citizen affiliated with the U.S.-based Orthodox Presbyterian Church (OPC) operating in Mbale, Uganda, contacted U.S. Embassy Kampala American Citizen Services (ACS) in June 2019, to report that Tuininga, who was working as one of the group’s ministers, had sex with the Ugandan female minor who was approximately 14-years-old. U.S. Department of State, Bureau of Diplomatic Security (DSS) agents in Kampala, Uganda, opened an investigation into the allegation. Finding Tuininga had fled to his home in the Middle District of Georgia, the Department of Homeland Security, Homeland Security Investigations (HSI), Child Exploitation Unit, Atlanta, continued the investigation.
Federal agents identified a Ugandan minor who was approximately 14-years-old in March 2019 when Tuininga had sex with her as he was working as a pastor with the OPC. Tuininga admitted that he came to know the victim in his capacity as a religious leader and that the victim would visit the OPC church, including a compound, overseen by Tuininga. Tuininga also admitted that he engaged in illicit sexual conduct with the child.
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 the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the U.S. Department of Homeland Security, HSI-Child Exploitation Unit with special assistance from U.S. Department of State, DSS agents in Kampala, Uganda.
Assistant U.S. Attorneys Alex Kalim and Katelyn Semales prosecuted the case.
Colombian Woman Sentenced to 10 Years and $5 Million Forfeiture for NarcotraffickingRead the Press Release
Earlier today, in federal court in Brooklyn, Hilda Maria Gonzalez Lopez, also known as “La Boyaca” and “Daniela,” who aligned herself with powerful members of Los Rastrojos, a breakoff group of the violent arm of the Norte Valle Cartel, was sentenced by United States District Judge I. Leo Glasser to 10 years in prison and ordered to pay $5 million in forfeiture following her guilty plea for participating in a conspiracy to internationally distribute cocaine. In her October 2021 plea agreement, Gonzalez Lopez stipulated that she was responsible for distributing more than 450 kilograms of cocaine and agreed to forfeit $5,000,000.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent in Charge, Homeland Security Investigations, New York (HSI), and Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“For years, the defendant profited from trafficking cocaine and operating a ‘collection office,’ which relied on hitmen to collect drug debts, and she did so without regard for the harm she inflicted on communities stretching from Colombia to the United States,” stated United States Attorney Breon Peace. “Today’s sentencing demonstrates the results of the Department of Justice’s ongoing commitment to working with our international partners to dismantle destructive transcontinental drug trafficking organizations.”
Mr. Peace extended his appreciation to the New York City Police Department (NYPD), New York State Police (NYSP), Justice Department’s Office of International Affairs, Colombian law enforcement authorities, and the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) Judicial Attachés in Bogotá, Colombia who assisted in the apprehension and extradition of the defendant.
“Gonzalez Lopez was at the helm of a narcotrafficking operation who arranged cocaine shipments, negotiated ‘taxes’ with other narcotraffickers, and employed hitmen to collect debts. Today’s sentencing helps to ensure this lucrative and violent organization saw their final delivery – justice,” said HSI Acting Special Agent in Charge Patel. “HSI and our partners will continue to leverage our international reach to aggressively pursue drug traffickers wherever they operate.”
“Using intimidation and fear, Hilda Maria Gonzalez Lopez made millions of dollars exporting loads of cocaine from Colombia to the United States,” said DEA Special Agent-in-Charge Tarentino. “The DEA leaves no stone unturned, and this arrest signifies our resolve to bring those responsible for flooding our streets with poison to justice. I commend the diligent work by the U.S. Attorney’s Office Eastern District of New York and our local, state, federal, and international law enforcement partners.”
Los Rastrojos
In approximately the early 1990’s, a group of narcotics traffickers based in the Norte Valle del Cauca region of Colombia, located near Colombia’s west coast, began to dominate the cocaine trade in Colombia, and became known as the “Norte Valle Cartel.” Between 1990 and 2006, the Norte Valle Cartel was responsible for the exportation to the United States of more than one million kilograms of cocaine with a wholesale value exceeding several billion dollars.
In the early 2000s, high-ranking members of the Norte Valle Cartel’s armed contingent—which was responsible for assassinations, kidnappings, and the collection of drug debts through violence or the threat of violence—broke off to form Los Rastrojos. After 2008, Javier Antonio Calle Serna (Calle Serna) took control of the organization. Under his leadership, Los Rastrojos acted as a paramilitary group with over 1,500 members and took control of several provinces of Colombia. In those areas, Los Rastrojos corrupted government officials, sanctioned violence, and “taxed” drug traffickers who operated in the cartel’s territory.
The Defendant’s Conduct
Between 2005 and 2011, according to court filings, Gonzalez Lopez was directly involved in coordinating the shipment and distribution of cocaine and leveraged her relationship with powerful and violent narcotraffickers, including Calle Serna. Gonzalez Lopez began brokering her own multi-hundred-kilogram shipments of cocaine from Colombia to Mexico and Central America for ultimate distribution in the United States.
Gonzalez Lopez coordinated drug transportation routes and paid export “taxes” to the Los Rastrojos. She also used her relationship with Calle Serna to negotiate lower export taxes and maintain control of a drug debt collection operation in which she employed collectors or hitmen to collect drug debts, for which she received a percentage of the recovered debt as compensation.
During these six years, Gonzalez Lopez was personally responsible for at least 450 kilograms of cocaine, which yielded her profits of at least $5,000,000.
On July 12, 2019, the defendant was arrested in Colombia at the request of the United States and was extradited to the United States on March 5, 2021.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Nomi Berenson and Robert M. Pollack are in charge of the prosecution.
The Defendant:
HILDA MARIA GONZALEZ LOPEZ (also known as “La Boyaca” and “Daniela”)
Age: 47
Boyaca, ColombiaE.D.N.Y. Docket No. 16-CR-379 (ILG)
Chicago Attorney Sentenced to Federal Prison on False Statement and Tax Offenses in Connection with Funds Received from Failed BankRead the Press Release
CHICAGO — A federal judge today sentenced a Chicago attorney to four months in prison for false statement and tax offenses in connection with funds he received from the failed Washington Federal Bank for Savings.
PATRICK D. THOMPSON, 52, of Chicago, was convicted in February on all seven counts against him, including five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp. U.S. District Judge Franklin U. Valderrama imposed the sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kathy Enstrom, Special Agent-in-Charge of the FDIC’s Office of Inspector General, Chicago Regional Office; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the City of Chicago Inspector General’s Office. The government was represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Jeremy Daniel.
According to evidence presented at trial, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments. He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received. Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans. When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement. In reality, Thompson knew he had actually received $219,000 in three separate installments – none of which went towards home improvements – and that $110,000 of it was paid by the bank directly to Thompson’s law firm as Thompson’s capital contribution to the firm.
The tax charges stemmed from Thompson falsely representing on five years of income taxes that he was entitled to a mortgage interest deduction for interest payments made on money he received from Washington Federal, even though he knew the loan was not a mortgage loan and he did not make interest payments as reported on those returns.
CEO of Raleigh Healthcare Company Pleads Guilty to Multi-Million Dollar Healthcare FraudRead the Press Release
RALEIGH, N.C. – A Raleigh woman pleaded guilty today to Healthcare Fraud.
According to the Criminal Information and evidence summarized in Court, Tanya Parrish Grant, 51, of Raleigh, pled guilty to a health care fraud that she carried out between 2017 and 2021 through two companies she controlled – Carolina Rehab Products, Inc., (CRP) also known as Atlantic Brace, in Raleigh; and Blue File DME, LLC (Blue File), in Dunn. These companies were licensed with Medicare to supply durable medical equipment (DME) to Medicare beneficiaries. DME consists of products such as back, shoulder, knee, and wrist braces.
Grant caused CRP and Blue File to bill Medicare for more than $50 Million between 2014 and 2021, of which Medicare paid Grant more than $17 Million. Grant used these funds to purchase, among other things, a home near Cameron Village in Raleigh; a townhome in Ft. Lauderdale, a Porche, several Land Rovers, and to amass more than a million in cash and investments.
The investigation showed that to generate revenues, Grant was paying companies in India and Pakistan to provide her with lists of Medicare patient names and identifying information. These lists of patients were purportedly derived from call centers overseas that contacted Medicare patients to inquire about their need for DME. Grant then caused her companies to bill Medicare for DME that she purportedly supplied to the patients.
While Grant and her companies were obligated to have written physician orders to support all of her claims to Medicare, the evidence ultimately showed that this was not the case. In many instances, Grant billed Medicare without supporting physician orders, and without shipping products. Even when patients receiving equipment in the mail returned the equipment, Grant did not reimburse Medicare for the equipment. The investigation also showed that Grant’s companies billed Medicare in the names of some 422 deceased individuals. When audited by Medicare contractors, the evidence showed Grant would forge physician orders if no such order existed in her files to support her billings.
The scheme was halted in 2021 when Grant’s home and offices were searched, and her assets described above were seized as forfeitable property.
Grant pleaded guilty to a violation of Title 18, United States Code, Section 1347 and faces a maximum of up to ten years in prison when sentenced later this year.
Michael Easley, U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge Terrence W. Boyle accepted the plea. The United States Department of Health and Human Services Office of the Inspector General, and the Federal Bureau of Investigation, investigated the case. Assistant U.S. Attorney William M. Gilmore is prosecuting the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:21-CR-136-M.
Armed Career Criminal Sentenced to 15 Years for Illegally Possessing a FirearmRead the Press Release
Memphis, TN – Carlos Gwin, also known as “Carlos Chambers,” 40, has been sentenced to 180 months
in federal prison for being a convicted felon in possession of a firearm. Joseph C. Murphy Jr.,
United States Attorney, announced the sentence today.According to information presented in court, on September 24, 2020, at approximately 5:15pm,
Memphis Police responded to a call for service at a motel on Sycamore View. Carlos Gwin was
observed sitting in a black car in the motel parking lot using drugs. After having admitted to law
enforcement he was using cocaine, he was detained.A search of the car revealeda small amount of cocaine wrapped in a $20.00 bill and Xanax wrapped in
foil. A Ruger 9mm caliber pistol was recovered from underneath the driver's seat. The gun was
loaded with one live round of ammunition in the chamber and 12 live rounds in the magazine.In 2002, 2004 and 2008, Gwin pled guilty to felony charges of aggravated burglary and is
prohibited from possessing firearms. As a result of his felony convictions, Gwin was sentenced as
an Armed Career Criminal under the Armed Career Criminal Act.On June 29, 2022, United States District Judge Thomas L. Parker sentenced Gwin to 180 months in
federal prison with three years of supervised release to follow. There is no parole in the
federal system.This case was investigated by the Project Safe Neighborhood (PSN), Memphis Police Department
and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The PSN initiative is
a program bringing together all levels of law enforcement and the communities they serve to reduce
violent crime and make our communities safer for
everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus ontargeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership
with federal, state, local and tribal law enforcement.Assistant United States Attorney Raney Irwin prosecuted this case on behalf of the
government.
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A Former Employee and a Contract Worker of Medtronic-CR Indicted for Conspiring to Defraud the Company of over $1M and Launder their ProceedsRead the Press Release
SAN JUAN, Puerto Rico – A federal grand jury in the District of Puerto Rico returned an indictment charging defendants Elieser Feliciano-Soto and José E. Santana-Criado with agreeing to benefit and enrich themselves by obtaining money and property belonging to Medtronic Medical CR SRL (Medtronic-CR) through a wire fraud scheme. The defendants are also charged with a money laundering conspiracy involving transactions, using the stolen proceeds, in excess of $10,000. The indictment includes a forfeiture allegation related to the total value of the loss, approximately $1,151,296.38, and two residential properties.
As alleged in the indictment, Medtronic-CR was a Costa Rica limited liability company that manufactured orthopedic components used for spine surgery devices and spine surgery procedures, which are distributed and sold globally. As part of its expansion plans, in or about 2017, Medtronic-CR set out to build a new manufacturing facility in Coyol Alajuela, Costa Rica.
Elieser Feliciano-Soto was the Site Director for Medtronic-CR and was in charge of overseeing the construction of the new manufacturing facility. José E. Santana-Criado, a contract worker for Medtronic-CR, organized Innovative Engineering Corp. and Innovative Engineering LLC (collectively referred to as Innovative) in Puerto Rico. The defendants used Innovative to fraudulently obtain payments from Medtronic-CR for the purported provision of services which were never rendered.
Elieser Feliciano-Soto used his position as Site Director to authorize purchase orders issued by Innovative for the purpose of defrauding Medtronic-CR. The purchase orders authorized services to be rendered by Innovative. Once the purchase orders were approved, the defendants submitted fraudulent invoices from Innovative to Medtronic-CR for services which were never provided. Innovative would then receive electronic wire transfer payments from Medtronic-CR’s bank account in Costa Rica to Innovative’s bank account in Banco Popular de Puerto Rico (BPPR) corresponding to payments for Innovative’s invoices.
The defendants then transferred the wire fraud proceeds from Innovative’s bank account to other accounts that they controlled in BPPR and Baxter Credit Union (BCU) in Illinois. The wire fraud proceeds were used to financially enrich themselves, including to pay the mortgages for real property in Cabo Rojo and Humacao, Puerto Rico.
Pursuant to the indictment, the defendants are charged with conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349, and a money laundering conspiracy in violation of 18 U.S.C. § 1956(h). If convicted, the defendants face a sentence of up to 20 years in prison for each offense.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico; and Joseph González, Special Agent in Charge of the FBI made the announcement.
The FBI is investigating the case.
Assistant US Attorney Víctor O. Acevedo-Hernández 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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48-Year-Old Evansville Man Sentenced to 25 Years in Federal Prison for Sexual Exploitation of a Minor GirlRead the Press Release
EVANSVILLE – Michael Lesean Franklin, 51, of Evansville, was sentenced to 300 months in federal prison for sexual exploitation of a child.
According to court documents, Franklin was arrested on state child molestation charges on March 1, 2020. Investigators examined his smartphone and discovered that Franklin used the device to photograph himself engaged in sex acts with a minor female child under the age of 16 on at least three separate occasions in early 2020. Franklin’s smartphone also contained additional sexually explicit images of the child.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Herbert J. Stapleton, Special Agent in Charge of the Federal Bureau of Investigation’s Indianapolis Field Office, and Chief Billy Bolin, Evansville Police Department made the announcement.
The Federal Bureau of Investigation and the Evansville Police Department investigated the case. The Vanderburgh County Prosecuting Attorney’s Office also provided valuable assistance.
The sentence was imposed by U.S. District Judge Richard L. Young following Franklin’s guilty plea. As part of the sentence, Judge Young ordered that the Franklin be supervised by the U.S. Probation Office for 10 years following his release from prison. Franklin must also register as sex offender wherever he lives, works, or goes to school, as required by law.
U.S. Attorney Myers thanked Assistant U.S. Attorney Todd S. Shellenbarger who prosecuted this case.
Tuesday 5 July 2022
Woman Charged for Smuggling 108 Pounds of Methamphetamine Across the US-Mexico BorderRead the Press Release
PHOENIX, Ariz. – Maria Arredondo De Sanchez, 56, of Mexico, was charged by criminal complaint on July 1, 2022, for Possession with Intent to Distribute Methamphetamine and Importation of Methamphetamine into the United States from Mexico.
The complaint alleges that on June 30, 2022, Arredondo De Sanchez entered the United States through the San Luis Port of Entry where Customs and Border Protection officers discovered 105 packages hidden in Arredondo De Sanchez’s car. The packages contained a white crystal-like substance that tested positive for methamphetamine. The combined weight of the packages was over 108 pounds.
A conviction for each charged offense carries a maximum penalty of life in prison and a $10,000,000 fine.
A criminal complaint is merely an allegation of criminal conduct, not evidence. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Homeland Security Investigations (HSI) are conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.
CASE NUMBER: 2022-MJ-02088
RELEASE NUMBER: 2022-107_Arredondo De Sanchez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
U.S. Attorney Announces Two Additional Indictments as Part of COVID-19 Relief Fraud Strike ForceRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, has announced two new indictments resulting from the COVID-19 Relief Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year. The Indictments were recently unsealed.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Paycheck Protection Program (PPP), provided government-backed loans to small businesses which could be forgiven so long as the proceeds were used for payroll and other eligible expenses. Another program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic. The PPP and EIDL programs have provided billions of dollars in aid, the vast majority of which have not been paid back, including hundreds of millions of dollars disbursed within Eastern Washington.
“COVID-19 relief programs quickly ran out of money due to the number of people and businesses that requested funding, which meant that some deserving small businesses were not able to obtain funding to keep their businesses in operation during the COVID-19 pandemic,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike Force because it is critical to the strength and safety of our community in Eastern Washington that we all work together to combat pandemic-related fraud. The Strike Force is one way to ensure that limited resources are provided to deserving local businesses that provide vital services for our communities. I greatly appreciate the hard work and esprit de corps of so many talented agents and agencies that are contributing to our collective efforts.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office (USAO) began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the USAO, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations, U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and civil penalties, including these two most recent indictments.
On May 3, a federal grand jury returned an Indictment charging Natasha Opsal, age 40, a former Spokane resident now residing in Great Falls, Montana, with nine counts of fraud in connection with several COVID-19 relief loans. The Indictment charges that Opsal fraudulently sought over $600,000 through the PPP and EIDL programs for fictitious businesses, over $50,000 of which she received. The Indictment was unsealed today following Opsal’s arrest and arraignment on the charges.
The same day, May 3, a federal grand jury returned an Indictment charging Yuriy P. Anishchenko, age 34, a former Spokane resident last known to be residing in Kent, Washington, with three counts of fraud in connection with two EIDL loans sought and obtained by Anishchenko. The Indictment charges that Anishchenko fraudulently obtained over $300,000 for non-qualifying and ineligible businesses. The fraud charges in both cases carry maximum sentences of up to 20 years in federal prison.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially by the U.S. Secret Service, SBA, FBI, and TIGTA” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding.”
Assistant United States Attorney Dominique Park is prosecuting United States v. Anishchenko, while Special Assistant United States Attorney Frieda Zimmerman and Assistant United States Attorney Tyler H.L. Tornabene are prosecuting United States v. Opsal. Both cases were investigated by the COVID-19 Relief Fraud Strike Force.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
United States v. Opsal, Case No: 2:22-CR-0053-TOR
United States v. Anishchenko, Case No: 2-22-CR-0057-TOR
Three Plead Guilty in Grandparent Scheme Targeting Rhode Island SeniorsRead the Press Release
PROVIDENCE – Appearing before a federal judge in Providence, three individuals today admitted that they participated in a “Grandparent Scam” that defrauded fourteen Rhode Island seniors out of a total of more than $350,000, announced United States Attorney Zachary A. Cunha.
The victims, who ranged from seventy-nine to ninety-four years of age, were contacted by telephone by callers impersonating family members or attorneys. These callers falsely told the victims that a loved one, generally a grandchild, had been arrested after being involved in a motor vehicle accident, and needed cash bail. The victims were directed to gather cash for these fake bail payments, and told to provide the money to a courier that would be sent to their home.
Bryan Valdez-Espinosa, 22, and Diego A. Alarcon, 22, of Union City, NJ; and Jason Hatcher, 40, of New York, NY, admitted that in June 2021, they traveled to New England to participate in the scam. Hatcher pleaded guilty to conspiracy to commit wire fraud and aggravated identity theft; Alarcon and Valdez-Espinosa each pleaded guilty to conspiracy to commit wire fraud.
“Few things are more frightening than thinking a family member is in trouble,” said U.S. Attorney Cunha. “These defendants exploited that fear to steal from loving grandparents and line their own pockets. Thanks to superb investigative work by our local law enforcement partners and the Department of Homeland Security, I am pleased that, with today’s guilty pleas, each of these defendants will answer for their fraud.”
“These three took advantage of a grandparent’s love for a grandchild to fleece them of their hard-earned money. They caused the victims to believe a loved one was in legal trouble or in danger, using fear as a weapon to turn a profit,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations New England Field Office. “HSI works every day alongside our partners to uncover scams like this one to help keep our seniors safe.”
According to court documents and information presented to the court, victims were scammed out of a total of $350,815. In at least one instance, a family member intervened leading to the arrest of Valdez-Espinosa who was posing as a courier. Scammers defrauded the victims out of between $9,500 and $85,000.
Valdez-Espinosa, Alarcon, and Hatcher will be sentenced on October 11. 2022. Their sentences will be determined by a federal district judge after consideration of the U.S. Sentencing Guidelines and other statutory factors.
The cases are being prosecuted by Assistant U.S. Attorneys William J. Ferland and Christine D. Lowell.
The matter was investigated by Homeland Security Investigations.
United States Attorney Cunha thanks the Barrington, Cranston, Coventry, Cumberland, East Providence, Hopkinton, Johnston, North Kingstown, Smithfield, and Warwick Police Departments for their investigative assistance and assistance provide residents in their community victimized by this scam.
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St. Louis County man faces drug charge after teen’s suspected overdose deathRead the Press Release
ST. LOUIS – A man from St. Louis County is facing a federal drug charge after allegedly providing fentanyl to a 19-year-old who then suffered what is suspected to be a fatal overdose.
William Edward Martin, 21, was charged by complaint Thursday with one count of distributing a controlled substance. He appeared in federal court Tuesday and waived his right to a detention hearing, meaning he will be held in jail pending resolution of his case.
Charging documents say Martin sold fentanyl to the teen when they met in a Walgreens parking lot in Arnold on the evening of June 23. Surveillance video shows the woman getting into a BMW with Martin. A short time later, Martin can be seen dragging the teen out of the BMW and placing her in the backseat of her vehicle, where she then suffered a suspected fentanyl overdose, the charging documents say. She was found dead the next morning.
Martin was spotted in the BMW by Arnold police officers on Wednesday. He then sped away. Investigators later discovered a safe in the car containing suspected fentanyl, LSD, mushrooms, prescription drugs and drug paraphernalia.
Martin was subsequently arrested by police with a loaded pistol.
Charges set forth in a criminal complaint are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case is being investigated by the Drug Enforcement Administration and the Arnold Police Department.
St. Cloud Man Sentenced to 21 Months in Prison for Possessing A Short-Barreled RifleRead the Press Release
Orlando, Florida – United States District Judge Carlos E. Mendoza has sentenced Yunis Isaac Mejia (28, St. Cloud) to 21 months in federal prison for possessing an unregistered short-barreled rifle. Mejia had pleaded guilty on January 28, 2022.
According to evidence admitted during the sentencing hearing, Mejia illegally modified a CZ Scorpion EVO 3 S1 pistol, with a barrel less than 16 inches long, with an aftermarket shoulder stock. With this modification, Mejia illegally converted the pistol into a short-barreled rifle. Under the federal National Firearms Act, short-barreled rifles are required to be registered.
Mejia then offered to sell his illegally modified firearm to an confidential source working at the direction of the Federal Bureau of Investigation. Mejia also provided direction and instruction to the confidential source on how the confidential source could purchase the same model of pistol and modify it himself.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Springfield, Massachusetts Man Sentenced for Drug Trafficking OffenseRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on July 1, 2022, Justin Zayas-Sanchez, 22, of Springfield, Massachusetts, was sentenced in United States District Court in Burlington, Vermont, to serve 20 months in prison after his guilty plea to one count of distribution of fentanyl. U.S. District Judge Christina Reiss also ordered Zayas-Sanchez to serve a six-year term of supervised release and to pay a $100 special assessment.
According to court records and proceedings, on April 14, 2021, Zayas-Sanchez sold crack cocaine and ten bags of fentanyl to a confidential informant in the Rutland area. He also sold crack to an informant on May 26, 2021 and fentanyl to an informant on July 19, 2021. Zayas-Sanchez was arrested in November 2021 and has been detained since then.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Vermont Drug Task Force, the Federal Bureau of Investigation, and the Fair Haven Police Department in the investigation and prosecution of Zayas-Sanchez.
Assistant U.S. Attorney Paul Van de Graaf handled the prosecution for the government. Assistant Federal Public Defender Mary Nerino represented Zayas-Sanchez.
Smuggler imprisoned after woman left on the side of the roadRead the Press Release
VICTORIA, Texas – A 43-year-old non-U.S. citizen illegally residing in Mission has been sent to prison for conspiracy to commit hostage taking which resulted in death, announced U.S. Attorney Jennifer B. Lowery.
Nelson Bahena-Garcia pleaded guilty Nov. 2, 2021, admitting the victim died during the smuggling incident.
Today, U.S. District Judge Rainey ordered Bahena-Garcia to serve 252 months in federal prison. Not a U.S. citizen, he is expected to face removal proceedings following his imprisonment. At the hearing, the court heard additional evidence about how he operated an alien stash house using threats and intimidation and refused to allow the victim to be released for medical care during the smuggling attempt.
The investigation began after authorities had learned of a missing Honduran female. Her fiancé called authorities and informed them he had been unable to make payment for her release.
On May 28, 2018, authorities found her on a rural county road in Victoria County. She had been stripped nude and had what appeared to be trauma inflicted upon her body. The investigation revealed she had collapsed during the smuggling attempt and had to be carried. Even though she said, “please don’t leave me,” a companion heard Bahena-Garcia eventually provide instructions to leave her behind in the brush to die.
At the time of his plea, Bahena-Garcia admitted his driver had abandoned her by on the side of the highway.
Bahena-Garcia has been and will remain in custody pending transfer to a U.S. Bureau of prisons facility to be determined in the near future.
Homeland Security Investigations, Customs and Border Protection and the Victoria County Sheriff’ Office conducted the investigation. Assistant U.S. Attorney Patti Booth prosecuted the case.
Rapid City Business Owner Sentenced for Not Paying Employee TaxesRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Rapid City, South Dakota, man convicted of Failure to Withhold, Properly Account for, and Pay Over Tax was sentenced on June 30, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Frank Morrison, age 72, was sentenced to 13 months in federal prison, followed by two years of supervised release, and ordered to pay a $200,000 fine, $684,927.56 in restitution to the Internal Revenue Service (IRS), and a $100 special assessment to the Federal Crime Victims Fund
Morrison was charged on March 18, 2022, and pleaded guilty on April 1, 2022. The conviction stems from Morrison, while the owner of Thirsty’s Bar and Restaurant in Rapid City, failing to pay over taxes to the IRS after he withheld those taxes from his employees from 2008 through 2020. Morrison then used a large portion of those funds for his own personal use.
The investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Morrison was immediately remanded to the custody of the U.S. Marshals Service.
Prewitt man sentenced to five years in prison for manslaughter in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Alexander M.M. Uballez, United States Attorney for the District of New Mexico, announced that on June 30 a federal judge sentenced Brandon Charley of Prewitt, New Mexico, to five years and three months in prison for voluntary manslaughter in Indian Country. Charley pleaded guilty on Sept. 8, 2021.
According to the plea and other court records, Charley got into an altercation with the victim and shot him from a motor vehicle in a remote area near Prewitt, New Mexico. The shooting occurred on the Navajo Nation, and Charley and the victim are enrolled members of the Navajo Nation. Following Charley’s imprisonment, he will be placed on supervised release for three years.
The Gallup Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Nation Department of Criminal Investigation. Assistant United States Attorneys Joseph M. Spindle and Letitia Carroll Simms prosecuted the case.
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Poultney, Vermont Man Charged with Distribution of Fentanyl and Cocaine BaseRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that on June 29, 2022 a federal grand jury, sitting in Rutland, charged Javon Wright (a.k.a. “Ace”), 37, of Poultney, Vermont with five counts of distributing fentanyl and cocaine base in May and June of 2022 in Rutland County.
According to court documents and proceedings, on June 30, 2022, following his indictment and the issuance of an arrest warrant, law enforcement arrested Wright as he was exiting a store in Fair Haven, Vermont. According to the government, at the time of his arrest, Wright possessed approximately 9 grams of cocaine base and less than a gram each of heroin and fentanyl. Also, early in the morning of July 1, 2022, law enforcement officers executed a search warrant at Wright’s residence at 288 Bentley Avenue in Poultney, Vermont and seized approximately 82 grams of cocaine powder, 20 grams of cocaine base, 12 grams of methamphetamine, and 9 grams of fentanyl – all weights with packaging.
At today’s arraignment, Wright pleaded not guilty to the charges. U.S. District Court Magistrate Judge Kevin Doyle ordered Wright remanded to the custody of the U.S. Marshals Service pending a hearing on the government’s motion for detention, which the Court scheduled for July 7, 2022.
The maximum penalty for each of the charges are 20 years of imprisonment, a $1,000,000 fine, and a mandatory three years of supervised release, which follows any jail sentence. Any actual sentence, however, will be informed by the advisory Sentencing Guidelines. The Indictment is an accusation only and the defendant is presumed innocent until and unless proven guilty.
United States Attorney Nikolas Kerest commended the efforts of the Vermont State Police Narcotics Investigative Unit and the Federal Bureau of Investigation in this matter. This case is prosecuted by Assistant U.S. Attorney Joseph Perella. Wright is represented by the Office of the Federal Public Defender in Burlington.
Phillipsburg Woman Sentenced to 60 Months in Prison for Conspiring to Distribute MethamphetamineRead the Press Release
JOHNSTOWN, Pa. – A former resident of Phillipsburg, PA, has been sentenced in federal court to a total of 60 months in prison followed by 4 years of supervised release on her conviction of conspiracy to distribute methamphetamine, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge Kim R. Gibson imposed the sentence on Miranda Williams, 28, of Phillipsburg, Pennsylvania.
According to information presented to the court, from July 2019 to June 2020, Williams conspired to distribute 50 grams or more of a mixture and substance containing a detectable amount of methamphetamine.
Assistant United States Attorney Maureen Sheehan-Balchon prosecuted this case on behalf of the government.
Ms. Chung commended the Drug Enforcement Administration and the Pennsylvania State Police for the investigation that led to the successful prosecution of Williams. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Orinda Man Found Guilty of Bank Fraud, Wire Fraud, and Money LaunderingRead the Press Release
SAN FRANCISCO – Alan Safahi was found guilty following a federal bench trial of bank fraud, wire fraud, and money laundering in a prepaid debit card scheme that caused losses of approximately $1.5 million, announced United States Attorney Stephanie M. Hinds and Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge Mark H. Pearson.
In a 39-page order filed late Thursday, United States District Judge Susan Illston convicted Safahi, 61, of Orinda, of one count of bank fraud, four counts of wire fraud, and one count of money laundering. The order, handed down following a nearly four-week bench trial, detailed the evidence against Safahi.
Evidence presented at trial demonstrated that Safahi developed an elaborate fraud scheme in which he collected money from clients to fund prepaid debit cards and, while accurately reporting the balances of the cards to the clients, created a system called “funding on demand” to defraud the bank that supported the cards. In the fraud, Safahi reported to the bank only the amount the clients spent on the card as the card’s “balance,” while diverting to himself the remaining balance of the card’s value. For example, a client of Safahi’s company, CardEx, would buy a prepaid debit card for $100 and spend $10 of that $100 balance. Safahi’s fraudulent “funding on demand” system would then report to the bank the “balance” of that card as $10 instead of $100. This allowed Safahi to access the money representing the difference between the actual card balance and the amount that had been spent on the card as reported to the bank.
Safahi used the fraudulently obtained funds not only to pay off his company’s debt to another bank but also to buy a house in Orinda. Just two days before reporting the accurate balance to the bank, Safahi issued himself an $80,000 cashier’s check from his company’s account that, among other fraudulently obtained funds, he used to purchase the house. This transaction provided the basis of his money laundering conviction.
The fraud scheme unraveled on September 25, 2014. On the same day Safahi shut down his CardEx business, he directed an employee to provide the accurate balances of the prepaid debit cards to the bank. According to trial evidence, Safahi had earlier reported to the bank a false balance of $93,734 on the cards he had sold. The true balance on the cards reported to the bank that day was $2,774,953. The difference was nearly $2.7 million, and further investigation revealed that Safahi had fraudulently appropriated approximately $1.5 million of that amount.
United States District Judge Susan Illston has not yet set a sentencing date.
Safahi was convicted of one count of bank fraud in violation of 18 U.S.C. § 1344, which carries a maximum term of imprisonment of 30 years and a maximum fine of up to $1,000,000 or twice the gross gain or loss amount. He was also convicted of four counts of wire fraud in violation of 18 U.S.C. § 1343, which carries a maximum term of imprisonment of 20 years and a maximum fine of $250,00. Safahi was lastly convicted of one count of money laundering in violation of 18 U.S.C. § 1957, which carries a maximum term of imprisonment of 10 years and a maximum fine of $250,000. However, any sentence for these convictions will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Robert David Rees and Benjamin Kurtis Kleinman are the Assistant U.S. Attorneys who prosecuted the case, with the assistance of Llessica Chan Fierro, Veronica Hernandez, Olivia Hawkins, Leeya Kekona, and Karina Ruiz. The prosecution is the result of an investigation by IRS-CI.
Nicaraguan Man Who Used a Fraudulent Social Security Card and Permanent Resident Card Sentenced to PrisonRead the Press Release
A man who used false identification documents and someone else’s social security number was sentenced today to six months in federal prison.
Fernando Moreno-Moreno, age 43, a citizen of Nicaragua illegally present in the United States and residing in Postville, Iowa, received the prison term after a May 17, 2022 jury verdict finding him guilty of one count of unlawful use of identification documents and one count of misuse of a social security number.
Evidence at trial showed that Moreno-Moreno illegally entered the United States in November 2021, and after being released by immigration authorities, traveled to Iowa looking for work. Despite being told that he could not work in the United States without authorization, Moreno-Moreno used an alias name and a Social Security number assigned to another person when completing employment paperwork in January 2022 at a business in West Union, Iowa. Specifically, Moreno-Moreno presented the company with a fraudulent Lawful Permanent Resident card, also known as a “green card,” bearing the alias name and an Alien Registration number, to prove his authorization to work in the United States. The Alien Registration number on the green card was not assigned to anyone and was invalid. He also presented a Social Security card bearing his alias name but containing the social security number assigned to another person when completing state and federal tax forms. Moreno-Moreno admitted at trial that he used the alias when employed at the company between January and March 2022 but denied knowingly using another person’s identification documents.
Moreno-Moreno was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Moreno-Moreno was sentenced to six months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Moreno-Moreno is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and was investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-2010.
Follow us on Twitter @USAO_NDIA.
New Orleans Woman Pleads Guilty to Misprision of FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ASHLEY OVERTON, age 36, of New Orleans, pled guilty on June 30, 2022 to misprision of felony, in violation of 18 U.S.C. § 4.
According to court documents, as a part of a narcotics drug trafficking investigation, OVERTON failed to notify law enforcement authorities of criminal activity and performed acts to conceal a crime.
OVERTON faces a maximum sentence of 3 years imprisonment, a fine of up to $250,000, up to 1 year of supervised release and a mandatory $100 special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration and Federal Bureau of Investigation in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
New Orleans Man Sentenced to Nine Years in Federal Prison for Massive Credit Card Fraud SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – On June 30, 2022 United States District Judge Eldon E. Fallon sentenced MAURICE DURIO, age 42, a New Orleans native to 108 months in federal prison for his role in a massive credit card fraud scheme, announced U.S. Attorney Duane A. Evans.
According to the court records, DURIO previously pleaded guilty to a credit card fraud charge. In a sworn factual basis, DURIO admitted that he began making fraudulent credit cards in New Orleans before eventually renting office space in an office park in Houston to expand his operation. He outfitted the space with equipment used to make fraudulent credit cards. Over the next several years, DURIO and his co-defendant, EDWARD TOLIVER, who also operated a card manufacturing plant in the same office park, obtained hundreds of thousands of stolen credit card numbers from a variety of sources, including a computer hacker TOLIVER had met in prison and by purchasing them on the dark web.
DURIO and TOLIVER, with the assistance of several co-conspirators, created and/or downloaded credit card templates on laptop computers and transferred the stolen credit card numbers into the templates, which were then used to create tens of thousands of fraudulent access devices. The cards would generally be printed in batches with the same name appearing on numerous cards. The name was typically the real name of a co-conspirator. The cards were embossed with numbers, and corresponding account information was encoded on the strips on the back of the cards. The names of the co-conspirators/users of the fraudulent cards did not correspond to the actual account holders, who had not given permission for their accounts to be used. DURIO and TOLIVER distributed thousands of fraudulent access devices to numerous individuals who then used them to fraudulently obtain things of value, including merchandise and gift cards.
The Secret Service, with the assistance of local law enforcement, investigated numerous instances in which individuals were caught with cards manufactured at the Houston plants operated by DURIO and TOLIVER. Agents were able to tie these card seizures to the plants where DURIO and TOLIVER were making the cards through several means.
In July 2014, a federal search warrant was executed at the Houston office park and agents seized device making equipment, including embossers, scanners, and high-end printers, thousands of cards, and a laptop computer. The computer had approximately 80,000 card numbers in files, as well as spreadsheets used to move the card numbers from the text files they came in when obtained through the dark web to the actual credit cards. Agents also obtained other laptops used by DURIO and TOLIVER that contained approximately 300,000 additional card numbers.
The scheme used various methods to monetize the fraudulent credit card production. First, DURIO and TOLIVER would simply sell cards. The buyer would pay them a set amount and then get to keep whatever the buyer could purchase with the cards. Second, DURIO and TOLIVER would provide cards with the idea that the person getting the cards would buy merchandise and then sell the merchandise at a discount for cash and kick back some of the cash. Third, DURIO and TOLIVER would provide cards and the person getting the cards would buy gifts cards, some of which were kicked back.
This case was investigated by Special Agents of the United States Secret Service. The prosecution is being handled by Assistant United States Attorney David Haller.
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New Orleans Man Indicted for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – COREY HALE, age 32, a resident of New Orleans, was charged on June 30, 2022 in a four-count indictment by a federal grand jury for being a felon in possession of a firearm and possession of a firearm after being convicted of a misdemeanor crime of domestic violence.
If convicted, HALE faces a maximum term of imprisonment of ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, Louisiana State Police, and the New Orleans Police Department. The case is being prosecuted by Assistant U.S. Attorney Mike Trummel.
New Haven Man Sentenced to 78 Months in Prison for Drug Trafficking, Assaulting Correctional OfficerRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that SHAWN HILL, also known as “SB,” 38, of New Haven, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 78 months of imprisonment, followed by three years of supervised release, for assaulting a federal correctional officer, and distributing heroin and crack cocaine shortly after his release from federal custody and while on supervised release.
According to court documents and statements made in court, on March 11, 2016, Hill was sentenced in Hartford federal court to 72 months of imprisonment, followed by three years of supervised release, for possession of a firearm by a convicted felon. After his sentencing, Hill was incarcerated at USP Canaan, a high-security federal prison in Waymart, Pennsylvania. On June 30, 2017, a correctional officer located a 6-inch metal “ice pick” style weapon in Hill’s left sock. About an hour later, as prison staff attempted to put hand restraints on Hill so that Hill could be transported to the prison’s Special Housing Unit, Hill slipped his arm out of the restraints and struck a correctional officer in the head with a restraint that was still attached to one of his hands, causing injury to the correctional officer.
On September 19, 2017, a grand jury in the Middle District of Pennsylvania returned an indictment charging Hill with one count of assaulting a federal correctional officer, and one count of possessing contraband in prison.
On April 4, 2019, after he had completed his 72-month sentence, Hill was released on bond while his charges in the Middle District of Pennsylvania were pending.
On April 11, 2019, Hill was intercepted over a court-authorized wiretap during an investigation being conducted by the FBI’s New Haven Safe Streets/Gang Task Force and New Haven Police Department addressing drug trafficking and related acts of violence by members, former members and associates of the “Island Brothers” street gang in New Haven. Evidence developed during the investigation confirmed that Hill was involved in the acquisition and distribution of heroin and crack cocaine.
On July 9, 2019, a grand jury in New Haven returned a 15-count indictment charging 25 individuals with federal narcotics offenses related to the distribution of crack cocaine, cocaine and heroin. Hill and another individual were added as defendants in a superseding indictment that was returned on November 25, 2019.
Hill has been detained since his arrest on November 26, 2019. His case in the Middle District of Pennsylvania was subsequently transferred to the District of Connecticut for further prosecution.
On September 22, 2020, Hill pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”) and heroin, and one count of assault on a correctional officer. Hill also admitted that he violated the conditions of his supervised release.
Judge Chatigny sentenced Hill to 57 months of imprisonment for the narcotics and assault offenses, and a consecutive 21 months of imprisonment for violating the conditions of his supervised release. Hill also must spend the first six months of his supervised release in a halfway house, and the next six months on curfew with electronic monitoring.
This matter was investigated by the FBI’s New Haven Safe Streets/Gang Task Force, New Haven Police Department, Milford Police Department, Hamden Police Department, East Haven Police Department, Connecticut State Police, Connecticut Department of Correction, the U.S. Drug Enforcement Administration, and the U.S. Bureau of Prisons. The case was prosecuted by Assistant U.S. Attorneys Anthony E. Kaplan, Elena L. Coronado and Tara E. Levens.
Montrose Woman Pleads Guilty to Mail FraudRead the Press Release
Grand Junction – The United States Attorney’s Office for the District of Colorado announces Megan Hess, age 45, of Montrose, Colorado pleaded guilty to one count of mail fraud and aiding and abetting.
According to the plea agreement, beginning in 2010 and continuing into 2018, Hess devised and executed a scheme to steal the bodies or body parts of hundreds of victims, and then sold those remains to victims purchasing the remains for scientific, medical, or educational purposes.
Magistrate Judge Gordon P. Gallagher presided over the change of plea hearing on July 5, 2022. Sentencing will be set at a later date.
This case was investigated by the FBI Denver Division and the U.S. Department of Transportation Office of Inspector General. It is being prosecuted by Assistant United States Attorneys Jeremy Chaffin and Tim Neff.
Due to public interest in this case, a copy of the plea agreement is posted here:
hessplea_1.pdfCase #: 20-cr-00098
Mexican Man Sentenced to Prison for Illegally Reentering the United States After Being Deported Three TimesRead the Press Release
A man who illegally returned to the United States after being deported was sentenced today to two months in federal prison.
Marcos Espina-Cruz, age 27, a citizen of Mexico illegally present in the United States and residing in Iowa City, Iowa, received the prison term today after a guilty plea on May 20, 2022, to one count of illegal reentry into the United States after having been deported.
At the guilty plea, Espina-Cruz admitted he had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Espina-Cruz was first deported to Mexico by immigration officials in March 2016 following a conviction in the Western District of Texas for illegal entry into the United States. He was also deported in May 2016 after being caught at the border in California and in September 2019 following his arrest on state charges in Johnson County, Iowa. On April 22, 2022, immigration officials learned Espina-Cruz had illegally returned to the United States and found Espina-Cruz at the Linn County Jail following his arrest on state charges.
Espina-Cruz was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Espina-Cruz was sentenced to 65 days’ imprisonment. He must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Espina-Cruz is being held in the United States Marshal’s custody until he can be turned over to immigration officials.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-42.
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Meridian Man Pleads Guilty to Possession of a Firearm by a Convicted FelonRead the Press Release
Jackson, Miss. – A Meridian man pleaded guilty to possession of a firearm by a convicted felon, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court documents, on February 3, 2020, Eric Wayne Washington, 50, was found to be in possession of a firearm during the execution of a search warrant at his residence. Washington was found in the residence and taken into custody. After Washington identified which bedroom belonged to him, the officers continued their search. A 9mm pistol was found in the bedroom along with methamphetamine. Washington has multiple prior felony convictions. As a convicted felon, it is contrary to federal law for Washington to possess any firearms or ammunition.
Washington pleaded guilty to a violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2) which criminalize the possession of firearms by convicted felons. He is scheduled to be sentenced on October 14, 2022 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Meridian Police Department and the FBI are investigating the case.
Assistant U.S. Attorney Charles W. Kirkham is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Mexico-Based Marijuana Trafficker Sentenced to Lengthy Prison SentenceRead the Press Release
PHOENIX, Ariz. – On June 28, 2022, Juan Carlos Juarez-Torres, 41, of Mexico, was sentenced by United States District Judge Steven P. Logan to 240 months in prison, followed by 60 months of supervised release. Juarez-Torres previously pleaded guilty on October 13, 2021, to conspiracy to import marijuana, conspiracy to distribute marijuana, conspiracy to possess with intent to distribute marijuana, and conspiracy to commit money laundering.
In October 2014, Homeland Security Investigations (HSI) began an 18-month wiretap investigation of Mexico-based members of a large international drug-trafficking organization (DTO) that smuggled multiple tons of marijuana from Mexico into the southern Arizona desert. Juarez-Torres coordinated and directed marijuana smuggling activities on behalf of the DTO and the pick-up and repatriation of marijuana proceeds to DTO members in Mexico. Additionally, Juarez-Torres coordinated and directed the purchase and smuggling of firearms and ammunition and the acquisition and distribution of equipment and vehicles for use by the DTO. HSI also intercepted communications between Juarez-Torres and other members of the DTO regarding the killing of rival drug traffickers, bribing public officials in furtherance of the DTO’s illicit activities, and the use of residences to store marijuana smuggled into the United States
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
HSI Phoenix, Customs and Border Protection’s U.S. Border Patrol, the Drug Enforcement Administration, HSI Mexico City, the Pinal County Sheriff’s Office, and the West Desert Task Force conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-15-1211-PHX-SPL
RELEASE NUMBER: 2022-106_JUAREZ-TORRES# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Luling Man Pleads Guilty to Possessing Files Depicting the Sexual Victimization of ChildrenRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DOMINIC ROMANO, age 21, a resident of Luling, Louisiana, pleaded guilty on June 30, 2022 before United States District Judge Barry W. Ashe to a one-count indictment charging him with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old, in violation of 18 U.S.C. ' 2252(a)(4)(B).
According to court documents, the Federal Bureau of Investigation received a tip from another law enforcement agency that an individual, subsequently determined to be ROMANO, accessed an online bulletin board having an explicit focus on the advertisement, distribution, and facilitation of sharing child abuse material. The bulleting board contained sections and forums cataloged by the age of the victims and the nature of the violence inflicting on them.
The FBI executed a search warrant on ROMANO’s residence on May 7, 2020 and seized electronic devices. ROMANO’s seized devices contained at least 2589 image and 62 videos depicting the sexual exploitation of children, including children less than three years old. Among ROMANO’s collection was a digital presentation that purported to be an instruction manual on how to successfully victimize “very young girls” without being caught.
ROMANO faces a maximum term of imprisonment of twenty (20) years. ROMANO also faces up to a lifetime of supervised release, up to a $250,000 fine, and he can be required to register as a sex offender. Sentencing before Judge Ashe is scheduled for September 29, 2022, at 1:30 pm.
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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
Kentucky Man Charged with Communications of Interstate ThreatsRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that BRIAN ADAMS, age 22, of Paintsville, Kentucky, was indicted on June 30, 2022 by a federal grand jury for communication of interstate threats to kidnap or injure, in violation of 18 U.S.C. § 875(c).
According to the indictment, ADAMS, transmitted a threat to a fifth-grade class at the Laureate Academy Charter School on or about October 14, 2020. At the time, the school was conducting class virtually over Zoom due to the COVID-19 pandemic. Specifically, ADAMS is alleged to have used racial epithets and threats against the students. The grand jury also made a special finding that ADAMS selected the fifth-grade class as the object of his threat because of the actual and perceived race of the students and teachers.
If convicted of this offense, ADAMS faces a maximum sentence of 5 years, a fine of up to $250,000, up to 1 year of supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorneys Tracey N. Knight and Jonathan L. Shih are in charge of the prosecution.
Justice Department Files Lawsuit Against the State of Arizona over Restrictive Voter Registration RequirementsRead the Press Release
The Justice Department announced today that it has filed a lawsuit against the State of Arizona challenging voting restrictions imposed by House Bill 2492 (2022), a recently-enacted law set to take effect in January 2023. The United States’ complaint challenges provisions of House Bill 2492 under Section 6 of the National Voter Registration Act of 1993 (NVRA) and Section 101 of the Civil Rights Act of 1964.
“House Bill 2492’s onerous documentary proof of citizenship requirement for certain federal elections constitutes a textbook violation of the National Voter Registration Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “For nearly three decades, the National Voter Registration Act has helped to move states in the right direction by eliminating unnecessary requirements that have historically made it harder for eligible voters to access the registration rolls. Arizona has passed a law that turns the clock back on progress by imposing unlawful and unnecessary requirements that would block eligible voters from the registration rolls for certain federal elections. The Justice Department will continue to use every available tool to protect all Americans’ right to vote and to ensure that their voices are heard.”
“The U.S. Attorney’s Office for the District of Arizona is dedicated to protecting voters in the state,” said U.S. Attorney Gary M. Restaino for the District of Arizona. “We are proud to join the Civil Rights Division in bringing this lawsuit to ensure that all eligible citizens in Arizona have the opportunity to register to vote and exercise their fundamental right to participate in our elections.”
The United States’ complaint contends that House Bill 2492 violates the NVRA by requiring that applicants produce documentary proof of citizenship before they can vote in presidential elections or vote by mail in any federal election when they register to vote using the uniform federal registration form created by the NVRA. This requirement flouts the 2013 U.S. Supreme Court decision in Arizona v. Inter Tribal Council of Ariz., Inc., 570 U.S. 1 (2013), which rejected an earlier attempt by Arizona to impose a similar documentary proof of citizenship mandate on applicants seeking to vote in federal elections. The United States’ complaint also contends that House Bill 2492 violates Section 101 of the Civil Rights Act by requiring election officials to reject voter registration forms based on errors or omissions that are not material to establishing a voter’s eligibility to cast a ballot.
The United States’ complaint asks the court to prohibit Arizona from enforcing the provisions of House Bill 2492 that violate the NVRA and the Civil Rights Act.
More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at https://www.justice.gov/crt/voting-section. Complaints about discriminatory voting practices may be reported to the Civil Rights Division through the internet reporting portal at https://civilrights.justice.gov or by telephone at 1-800-253-3931.
Former Philadelphia Water Department Employee Sentenced to over One Year in Prison for TheftRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Thomas Staszak, 47, of Philadelphia, PA, a former employee of the Philadelphia Water Department (“PWD”), was sentenced to fourteen months in prison, two years of supervised release, and was ordered to pay $153,367 restitution by United States District Judge Joel H. Slomsky for stealing inventory from a City of Philadelphia storage facility.
In January 2022, the defendant pleaded guilty to multiple counts of theft from a federally funded program and computer fraud. On multiple occasions from approximately April 2017 through at least November 2018, the defendant accessed PWD’s computerized inventory control system without authorization, using log-in credentials associated with PWD employees under his supervision, at a PWD storeroom. Staszak created false entries in PWD’s electronic records to provide justifications for removing maintenance materials, for example bulk wire, from the storeroom. The defendant then physically took the materials from PWD’s inventory, transported them to local scrap yards, sold the materials, and kept the proceeds. In this fashion, Staszak stole items valued at approximately in excess of $150,000 before he was caught. As a City of Philadelphia agency, PWD receives millions of dollars in federal funds and assistance annually.
“Mr. Staszak used his position as a supervisor with a public sector agency to enrich himself to the detriment of all Philadelphians who expect and deserve honest services from their government,” said U.S. Attorney Romero. “The Philadelphia Water Department is entrusted with a task which is vital to the health of our city and region; the defendant’s actions took money and resources for that mission directly out of the hands of taxpayers and moved the proceeds into his own bank account.”
“Thomas Staszak apparently felt his city salary wasn’t enough,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But stealing and selling your employer’s property certainly isn’t the way to enhance your paycheck. In doing so, Staszak cheated the Philadelphia Water Department, the taxpayers who help fund it, and all the honest municipal employees who do the right thing, in the right way, every day. He’ll now pay for his crimes through restitution and prison time.”
The case was investigated by the Federal Bureau of Investigation and the City of Philadelphia’s Office of Inspector General, and is being prosecuted by Assistant United States Attorney Eric L. Gibson.
Former Hawaii Senate Majority Leader Sentenced to 40 Months in Federal PrisonRead the Press Release
HONOLULU – Senior United States District Judge Susan Oki Mollway sentenced Jamie Kalani English, age 55, former Majority Leader of the State of Hawaii Senate, today to serve 40 months in federal prison and pay a fine of $100,000 for honest services wire fraud consisting of acceptance of multiple bribes in return for performing, and agreeing to perform, official legislative acts on behalf of a Hawaii businessperson.
According to the prosecution’s argument to the court, English was never reluctant about taking money in return for political and legislative favors. English’s behavior signaled that it was systematic and normal for him to accept, and indeed expect, financial benefits in return for legislative favors. It was English who unknowingly initiated the FBI covert relationship with him by reaching out to Person A with a demand for hotel rooms in Las Vegas for English and some of his friends.
The court also received information that on February 24, 2020, English accepted $1,000 from Person A for assistance with cesspool legislation that could directly benefit Person A’s company, telling Person A that he “should formulate what you would like to see” in the bill. On March 11, 2020, Person A met with English and offered him $10,000 in cash to kill the cesspool bill. English accepted the $10,000 stating “it’s easy to kill bills.” Due to the Covid 19 pandemic, the bill did not advance.
In January 2021, English accepted another $5,000 from Person A in return for anticipated legislative assistance to Person A. During a subsequent law enforcement traffic stop, English hid the $5,000 under the vehicle’s floor mat. On his annual mandatory gift disclosure report, English failed to report any of the bribes and gifts Person A paid and gave him. As a part of his official gift disclosure submissions, English emailed this false and misleading disclosure form, thereby using interstate commerce.
In sentencing English to federal prison and imposing the $100,000 fine, Judge Mollway observed that an elected public official who had the power to affect legislation and was willing to accept a bribe was a “terrible combination.” She called it a “terrifying prospect” that accepting a bribe was so natural to him that he could receive it as if normal.
“As we stated when recommending a term of imprisonment, English, as a prominent leader in the State Senate, shoulders significant responsibility for any deficit of confidence in our public officials,” said U.S. Attorney Clare E. Connors. “He criminally abused the power of his official position to serve his personal interests rather than the people of Hawaii, which is misconduct the federal government will prosecute in order to hold elected officials accountable.”
“As a former Hawaii politician is sentenced today for public corruption, the taxpayers of Hawaii should know that the FBI continues to vigorously investigate those who misuse their official position for their own personal financial gain,” said Federal Bureau of Investigation (FBI) Special Agent in Charge Steven Merrill. “We will not stop in our pursuit to bring these types of cases to the U.S. Attorney's Office for prosecution and ensure that the best interests of the people of Hawaii are served.”
The Federal Bureau of Investigation conducted the investigation that resulted in the indictment. Assistant U.S. Attorneys Ken Sorenson, Micah Smith and Michael Albanese handled the prosecution.