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Friday 1 July 2022
NY Bagel Company Owner Sentenced to 3 ½ Years in Prison for Scamming Prospective Franchisees Out of over $2 MillionRead 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 Joseph Smith, 57, formerly of Fishkill, New York, was sentenced to three years and six months in prison, three years of supervised release, and ordered to pay $2,100,450 in restitution by Unites States District Court Judge Gerald J. Pappert for his scheme to defraud prospective franchisees of more than $2.1 million, collectively.
In February 2022, the defendant. the owner of New York Bagel Enterprises, Inc., (“New York Bagel”), which operated in Pennsylvania and other states, pleaded guilty to charges of conspiracy to commit wire fraud and tax evasion in connection with this scheme. According to court documents and statements made in court, Smith and Dennis Mason, charged separately, made numerous misrepresentations to individuals interested in buying a New York Bagel franchise. These misrepresentations included: a guarantee that New York Bagel could get financing for the prospective franchisee, the actual costs to open a franchise, the number of franchises that were already open or opening, and the profitability of existing franchises. The defendant and Mason charged prospective franchisees fees ranging between $7,500 and $44,500 to gain rights to open stores. When some prospective franchisees learned of the misrepresentations and demanded their money back, Smith refused to refund these fees. As a result of the fraud, Smith and New York Bagel sold more than 160 franchises and obtained more than $2.1 million in franchise fees.
Further, from 2014 through 2016, Smith deposited more than $1.3 million in franchise fees into New York Bagel bank accounts which he controlled. The defendant spent these funds on personal items unrelated to the business, including rent for his home, travel, car payments for personal vehicles and living expenses. Smith did not file corporate or individual income taxes for these three years or pay the taxes he owed to the IRS.
Mason previously pleaded guilty to related charges and was sentenced to three years in prison in April 2022.
“Individuals seeking to own and operate business franchises are seeking opportunity and financial stability for themselves and their families; they deserve honesty and forthrightness in their business dealings so they can make informed decisions,” said U.S. Attorney Romero. “Mr. Smith took advantage of his position to swindle millions of dollars from people seeking legitimate business opportunities, and for that crime he will now spend years in prison.”
“While Smith was defrauding investors out of their franchise fees, he also evaded nearly $175,000 in taxes due on that income,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “Business owners who pay the IRS their fair share of taxes deserve to compete on a level playing field. Competitors who cut corners and seek to skirt their legal obligations should know they will be investigated and prosecuted.”
“Mr. Smith’s scheme served no purpose other than to mislead and defraud perspective franchisees,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Furthermore, he took steps to hide his earnings from IRS, thus shirking his tax liability. The sentence he received is a victory for all Americans who play by the rules.”
“Joseph Smith peddled what looked like a great opportunity to potential franchisees,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But once they signed on the dotted line, they learned he’d been peddling something else instead. Smith treated their franchise fees like found money. It was a clear-cut case of fraud and this sentence puts him behind bars and provides some justice for his victims. The FBI will always fight to hold crooks like this accountable.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service-Criminal Investigation, and is being prosecuted by Assistant United States Attorney David J. Ignall and Trial Attorney Eric B. Powers of the Department of Justice Tax Division.
Mountain Home Man Sentenced to Prison for Federal Drug and Gun ChargesRead the Press Release
BOISE – A Mountain Home man was sentenced to 100 months in federal prison for possession with intent to distribute methamphetamine and for unlawful possession of a firearm.
According to statements made in court, on March 15, 2021, James Doud, 60, was stopped by Elmore County Sheriff’s deputies for traffic violations in Mountain Home, Idaho. Deputies suspected that Doud was trafficking methamphetamine. After a trained canine indicated the presence of drugs inside his vehicle, a lawful search revealed approximately 1286 grams of methamphetamine, eight grams of heroin, $4,500 in cash, and a 12-gauge shotgun with associated ammunition. Doud was prohibited from possessing the shotgun due to a previous burglary conviction. Further investigation revealed that, approximately 30 minutes before the stop, Doud had delivered methamphetamine to two other people.
In addition to the prison sentence, Senior U.S. District Judge Bill R. Wilson, from the Eastern District of Arkansas, sitting by designation, ordered Doud to serve five years of supervised release. Doud pleaded guilty to the charges on February 2, 2022.
U.S. Attorney Josh Hurwit, of the District of Idaho, made the announcement and commended the cooperative efforts of the Elmore County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
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Montgomery Man Sentenced to 30 Years in Prison for Robbing a Bank and Discharging a Firearm While Committing the CrimeRead the Press Release
Montgomery, Alabama – On Thursday, June 30, 2022, John Adam Vinson, Jr., 32, from Montgomery, Alabama, was sentenced to 360 months in prison following convictions for bank robbery and discharging a firearm during the commission of a crime of violence, announced United States Attorney Sandra J. Stewart.
According to the plea agreement and other court documents, Vinson entered the Regions Bank branch located near Eastdale Mall in Montgomery on December 14, 2020. Vinson then pulled out a handgun and fired a shot into the desk of an empty teller station. A bank employee came out of her office and into the lobby area upon hearing the shot. Vinson immediately grabbed the employee and moved her to the door that accesses the teller counters. When Vinson realized the employee could not open the door, he jumped over the counter and began opening the teller drawers. Vinson put money from the drawers into a bag, jumped back over the teller counter, and ran out of the bank. A Montgomery police officer spotted Vinson as he fled from the bank. When the officer confronted the fleeing suspect, Vinson fired his gun a second time—this time at the officer. Fortunately, the officer was not injured. When law enforcement officers took Vinson into custody, they seized from him a total of $18,378.00 in United States currency.
Vinson’s 30-year prison sentence will be followed by five years of supervised release. There is no parole in the federal system. The court also ordered that the proceeds of the robbery be returned to Regions Bank.
This case was investigated by the Montgomery Police Department, the FBI, and the Alabama Law Enforcement Agency. Valuable assistance was also provided by the Montgomery County District Attorney’s Office. Assistant U.S. Attorney Mark E. Andreu prosecuted the case.
Montana Man Sentenced in Derecho Repair SchemeRead the Press Release
A Montana man who cheated a Cedar Rapids derecho victim out of more than $15,000 was sentenced June 30, 2022, in federal court in Iowa. William Allen Hurlbut, Jr., age 57, from Belgrade, Montana, received his sentence after a February 23, 2022 guilty plea to one count of mail fraud.
The derecho was a severe windstorm that swept through Cedar Rapids on August 10, 2020. The derecho caused widespread damage and long-term power outages. In Cedar Rapids alone, over 1,000 housing units were rendered unlivable, while hundreds of additional homes and businesses suffered damage.
In a plea agreement, and at his plea and sentencing hearings, Hurlbut admitted he came to Iowa after the derecho, professing to be a handyman and doing business as “Trinity 321.” Hurlbut lacked a required contractor license but obtained a cell phone number with a local 319 area code to conduct business. Hurlbut has 16 prior adult convictions, including a prior federal felony conviction in Idaho for destruction of government property.
In September 2020, Hurlbut promised his victim, a Cedar Rapids resident, that Hurlbut would fix damage to the victim’s residence as soon as possible if the victim advanced funds to him for that purpose. The derecho had caused more than $10,000 worth of damage to the victim’s residence, including damage to the roof and the siding, fences, and the interior of the home. Hurlbut’s victim was using a wheelchair on account of physical disabilities.
Instead of repairing the derecho damage to the victim’s residence, Hurlbut spent insurance funds advanced to Hurlbut for the repair costs on gambling and personal items and expenses. Hurlbut made false statements to his victim about the status of the project and made purchases at a home improvement store on
the false pretense that he was buying materials to complete the project. Hurlbut then returned the items for a cash refund, which he used for his own purposes. The investigation revealed that, over a two-week period in October 2020, Hurlbut spent at least $22,532.50 gambling at an Iowa casino.
On January 25, 2021, Hurlbut had a tow truck tow the victim’s vehicle from the victim’s backyard to a junkyard without purchasing it from the victim or getting his permission. In February, Hurlbut convinced his victim to loan him $1,000 for lodging and food, which Hurlbut never repaid. Through March 2021, Hurlbut performed little to no work on the project despite the fact that the victim had advanced more than $10,000 to Hurlbut for the repairs.
Hurlbut was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Hurlbut was sentenced to 14 months and 12 days imprisonment, which represented the amount of time he has spent in federal and state custody since his arrest, and up to 180 days in a halfway house upon his release. He was ordered to make $15,892.79 in restitution to his victim. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Hurlbut is being held in the United States Marshal’s custody until he is released to the halfway house.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-16.
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Monroe Man Is Charged with Wire Fraud for Operating an Investment SchemeRead the Press Release
CHARLOTTE, N.C. – A Monroe, N.C., man charged with wire fraud for operating an investment scheme appeared before U.S. Magistrate Judge David S. Cayer today, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. A federal criminal indictment was unsealed following the arrest of Christon Jermaine Brewer, 37, who also goes by the names Chris Bozay and Christian Massey.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, from October 2018 to June 2022, Brewer executed a scheme to defraud at least ten victim-investors of more than $150,000. Brewer falsely represented to his victims – generally friends or acquaintances of the defendant – that he would invest their funds in the stock market and in a cannabis store he was opening in Miami, Florida. The indictment alleges that Brewer represented himself to victims as a wealthy and experienced investor, who would take advantage of investment opportunities to invest the victims’ money in a manner that would return profits and yield guaranteed returns. The indictment further alleges that Brewer sometimes provided victim-investors with Promissory Notes, reflecting the amount of their investments and the date upon which they were to be repaid. Relying upon Brewer’s false and fraudulent representations, victim-investors would then send thousands of dollars to the defendant for investment, often in cash or using mobile peer to peer payment methods, like Apple Pay or Cash App. As alleged in the indictment, Brewer did not invest the victims’ money as agreed. Instead, he stole the money, and used it to pay for various personal expenses to support his lifestyle. While he was spending the victims’ money, the indictment alleges that Brewer would lull them into thinking their investments were safe by sending them text messages that provided purported updates on their investments and screenshots purportedly showing the high returns on their investments.
Brewer is currently in federal custody. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
The charge contained in the indictment is an allegation and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The FBI handled the investigation that led to the charges. Assistant U.S. Attorney Maria Vento of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Michigan Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Michigan man was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for distribution of heroin.
According to court documents, on February 13, 2020, William Pope, also known as “Shorty,” 47, of Detroit, sold a quantity of heroin to a confidential informant at a trailer where Pope was staying near Beckley. Pope admitted to selling the heroin and to selling what he now knows was fentanyl to a pair of confidential informants during separate transactions on February 6, 2020.
U.S. Attorney Will Thompson made the announcement, and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Beckley/Raleigh County Drug and Violent Crime Unit and the Drug Enforcement Administration (DEA) in Detroit.
United States District Judge Frank W. Volk imposed the sentence. Assistant U.S. Attorney Timothy D. Boggess prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-111.
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Men Sentenced to Federal Prison for Providing Material Support to TerroristsRead the Press Release
SAN ANTONIO – Two men were sentenced today for conspiring to provide material support to the designated foreign terrorist organization Islamic State of Iraq and al-Sham/Syria (ISIS).
Kristopher Sean Matthews, aka Ali Jibreel, 36, of South Carolina, was sentenced to 240 months in prison and Jaylyn Christopher Molina (aka Abdur Rahim), 24, of Cost, TX, was sentenced to 216 months in prison.
According to court documents, since May 2019, Matthews conspired with Molina to provide services to ISIS by administering an encrypted, members-only chat group for persons who supported ISIS ideology; by collecting, generating, and disseminating pro-ISIS propaganda; and by disseminating firearms training materials and bomb-making instructions.
On November 24, 2020, and January 25, 2021, Matthews and Molina, respectively, pleaded guilty to one count of conspiracy to provide material support to ISIS. In addition, Molina pleaded guilty to one count of receiving child pornography. Both men have remained in federal custody since their arrests on September 21, 2020. Molina was sentenced to 216 months in prison on the terrorism charge and another 216 months in prison on the child pornography charge. Both sentences for Molina were ordered to run concurrently.
“The United States Attorney’s Office will work closely with our law enforcement partners locally, nationally, and internationally to do everything possible under the law to stop terrorists before they can harm our citizens,” said United States Attorney Ashley C. Hoff. “Matthews and Molina recruited individuals and provided bomb-making instructions to aid ISIS. In this case, along with our law enforcement partners, we successfully stopped Matthews and Molina before anyone was harmed.”
“This sentencing serves as a reminder that terrorist organizations such as ISIS and their affiliates remain a threat to the United States in the homeland and abroad,” said San Antonio FBI Special Agent in Charge Oliver E. Rich Jr. “Addressing this threat continues to be the highest priority of the FBI and our Joint Terrorism Task Force partners.”
The San Antonio FBI’s Joint Terrorism Task Force (JTTF), with valuable assistance from the San Antonio Police Department, the United States Secret Service, and the Gonzalez County Sheriff’s Office, investigated this case.
Assistant U.S. Attorneys Mark Roomberg, William R. Harris, and Eric Fuchs and DOJ Trial Attorneys George C. Kraehe and Felice J. Viti of the National Security Division’s Counterterrorism Section prosecuted this case on behalf of the government.
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Men Sentenced to Federal Prison for Conspiring to Provide Material Support to TerroristsRead the Press Release
Two men were sentenced today for conspiring to provide material support to the designated foreign terrorist organization Islamic State of Iraq and al-Sham/Syria (ISIS).
Kristopher Sean Matthews, aka Ali Jibreel, 36, of South Carolina, was sentenced to 20 years in prison, and Jaylyn Christopher Molina, aka Abdur Rahim, 24, of Cost, Texas, was sentenced to 18 years in prison.
According to court documents, since May 2019, Matthews conspired with Molina to provide services to ISIS by administering an encrypted, members-only chat group for persons who supported ISIS ideology; by collecting, generating, and disseminating pro-ISIS propaganda; and by disseminating firearms training materials and bomb-making instructions to each other and to other members of the chat group and others.
On Nov. 24, 2020, and Jan. 25, 2021, Matthews and Molina, respectively, pleaded guilty to one count of conspiracy to provide material support to ISIS. In addition, Molina pleaded guilty to one count of receiving child pornography. At today’s sentencing, Molina received another 216 months, to run concurrently, for the child pornography charge. Both men have remained in federal custody since their arrests on Sept. 21, 2020.
The San Antonio FBI’s Joint Terrorism Task Force (JTTF), with valuable assistance from the San Antonio Police Department, the U.S. Secret Service and the Gonzalez County Sheriff’s Office, investigated this case.
Assistant U.S. Attorneys Mark Roomberg, William R. Harris and Eric Fuchs for the Western District of Texas and Trial Attorney George C. Kraehe and former Trial Attorney Felice J. Viti of the National Security Division’s Counterterrorism Section prosecuted this case on behalf of the government.
MCS Advantage Agrees to Pay 4.2 Million Dollars to Resolve Allegations that it Violated the False Claims Act and Anti-Kickback StatuteRead the Press Release
SAN JUAN, Puerto Rico – On July 1st, 2022, the United States Attorney for the District of Puerto Rico and the U.S. Department of Health and Human Services, Office of Inspector General (HHS- OIG) announced that MCS Advantage, Inc. (MCS Advantage) has agreed to pay $4,200,000 to resolve False Claims Act allegations that it implemented a gift card incentive program in violation of the Anti-Kickback Statute.
According to the settlement agreement, the United States asserted that MCS Advantage submitted or caused to be submitted claims for payment to the Medicare Program relating to a gift card incentive program implemented by MCS during the period of November 2019 to December 2020, which the Government alleges resulted in violations of the False Claims Act and the Anti-Kickback Statute. As a result of the incentive program, MCS distributed 1,703 gift cards to administrative assistants of providers at an aggregate cost of $42,575 to induce the assistants to refer, recommend, or arrange for enrollment of 1,646 new Medicare beneficiaries to an MCS Medicare Advantage plan. Those new Medicare beneficiaries resulted in associated premium payments received by MCS Advantage for the new members.
This agreement underscores the commitment of the Justice Department and HHS- OIG to deterring fraud, waste, and abuse of federal benefit programs, as well as the benefits of cooperation with federal investigations. The negotiated settlement with MCS Advantage took into consideration the company’s voluntary termination of the gift card program in December 2020, the disclosure of relevant facts concerning the program, and the implementation of controls and revisions to its internal policies to promote and help ensure future compliance.
“Investigating healthcare fraud remains a high priority in the Department of Justice and the United States Attorney’s Office and we will aggressively pursue those that violate the healthcare laws of the United States”, said United States Attorney Muldrow. “In this case, we appreciate MCS Advantage’s willingness to promptly negotiate a resolution in this matter.”
Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General New York Region said, “HHS-OIG will continue to investigate any conduct by Medicare Advantage plans that may result in violation of federal law and will work jointly with our law enforcement partners to ensure that entities that conduct business with federal health care programs do so in an honest manner.”
The settled civil claims are allegations only and MCS Advantage did not admit liability as part of this settlement agreement. Further, there has been no determination of civil liability.
This matter was prosecuted by Assistant U.S. Attorney Rafael J. López Rivera, Civil Health Care Fraud Coordinator, at the U.S. Attorney’s Office, in coordination with the U.S. Department of Health and Human Services, Office of Inspector General.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Louisiana Man Indicted for Dog Fighting VenturesRead the Press Release
A federal grand jury in New Orleans, Louisiana, returned an indictment charging a Louisiana man with seven counts of Possession of Animals in an Animal Fighting Venture.
According to court documents, David Guidry III, 47, possessed and received dogs for the purpose of having the dogs participate in animal fighting ventures.
On or around Oct. 24, 2017, a federal law enforcement team consisting of agents from the Department of Agriculture, the FBI and the U.S. Marshals Service and other agencies executed a search warrant on Guidry’s residence. The physical evidence from the search along with court-authorized wiretaps established that Guidry violated the federal anti-animal-fighting statute.
If convicted, Guidry faces up to five years in prison for each count of conviction. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Trial Attorney Matthew D. Evans of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section and Assistant U.S. Attorney Jonathan L. Shih for the Eastern District of Louisiana are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Louisiana Man Indicted for Dog Fighting VenturesRead the Press Release
WASHINGTON – A federal grand jury in New Orleans, Louisiana, returned an indictment charging a Louisiana man with seven counts of Possession of Animals in an Animal Fighting Venture.
According to court documents, David Guidry III, 47, possessed and received dogs for the purpose of having the dogs participate in animal fighting ventures.
On or around Oct. 24, 2017, a federal law enforcement team consisting of agents from the Department of Agriculture, the FBI and the U.S. Marshals Service, and other agencies executed a search warrant on Guidry’s residence. The physical evidence from the search along with court-authorized wiretaps established that Guidry violated the federal anti-animal-fighting statute.
If convicted, Guidry faces up to five years in prison for each count of conviction. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Trial Attorney Matthew D. Evans of the Justice Department’s Environment and Natural Resources Division, Environmental Crimes Section, and Assistant U.S. Attorney Jonathan L. Shih for the Eastern District of Louisiana are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Livingston County Man Sentenced to 210 Months in Prison for Possession of Child PornographyRead the Press Release
PEORIA, Ill. – A Campus, Illinois, man, Dakota Flint, 23, of the 200 block of Sheldon Avenue, was sentenced today to 17.5 years, to be followed by 20 years of supervised release, for possession of child pornography. U.S. District Judge James Shadid ordered that the federal sentence run concurrently with Livingston County, Illinois, Circuit Court cases 20-CF-162 and 21-CF-6 where Flint was convicted of aggravated criminal sexual assault and predatory criminal sexual assault, respectively. Flint also must register as a sex offender.
At the sentencing hearing, the government presented evidence that Flint was operating on the dark web under the username “acidman”. Flint used websites he accessed to distribute child pornography and to discuss engaging in hands-on sex offenses. Flint also inquired about how to sedate children and bragged about assaults he committed or planned to commit. After Homeland Security Investigations (HSI) located Flint, his electronic devices were confiscated, and a forensic analysis was conducted, revealing he was responsible for more than 4,000 images of child pornography. The analysis further revealed images and videos taken by Flint of minor juvenile females. The ensuing investigation resulted in Flint’s conviction in three sexual assault cases in Livingston County. At least one image and one video produced and distributed by Flint on the “dark web” has been in the possession of persons under investigation or charged in other districts.
Also at the hearing, Judge James Shadid found that Flint’s possession and distribution of images of child sex abuse had contributed to psychological harm and trauma experienced by child victims whose images are trafficked online. Judge Shadid stated that Flint’s use of the dark net in an attempt to conceal his activities and identity online was a factor that he considered in imposing the sentence.
Flint was originally indicted in June 2020 and pleaded guilty to the charge in January 2022. He has remained in the custody of the U.S. Marshals since indictment.
The statutory penalties for possession of child pornography are up to 20 years imprisonment and up to a lifetime of supervised release.
HSI investigated the case, along with the Livingston County, Illinois, Sheriff’s Office; Will County, Illinois, Sherriff’s Office; Coal City, Illinois, Police Department; and Dwight, Illinois, Police Department. The National Center for Missing and Exploited Children and the HSI Cyber Crimes Center assisted the investigation as well. Assistant U.S. Attorneys Ronald L. Hanna and Paul B. Morris represented the government in the prosecution.
The case against Flint was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. 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
Lawrence Man Previously Arrested with Multiple Pill Press Machines Charged with Fentanyl DistributionRead the Press Release
BOSTON – A Lawrence man has been charged for allegedly distributing counterfeit prescription pills containing fentanyl, made using multiple pill press machines.
Miguel Angel Fajardo, 32, was charged by an Information with one count of possession with intent to distribute 400 grams or more of fentanyl. Fajardo was previously arrested and charged by criminal complaint on March 25, 2022 and has remained in custody since.
According to the charging documents, law enforcement allegedly seized approximately 7.3 kilograms worth of fentanyl pills, an industrial pill press and “M” and “30” pill stamps consistent with markings on pharmaceutical-grade Oxycodone pills in Fajardo’s apartment. Pill stamps are commonly used to make counterfeit pills appear to be legitimate pharmaceutical-grade pills. Also inside Fajardo’s apartment, law enforcement allegedly found approximately 1.4 kilograms of fentanyl powder, two individual finger presses, 50 rounds of .40 caliber ammunition concealed in a microwave, four kilograms of cutting agent and two air purifying respirators – which are commonly used when working with fentanyl powder. It is further alleged that investigators located two one-kilogram pill press machines and another large pill press in the landing outside the apartment.
“The opioid crisis remains a clear and present danger to our community, claiming over two thousand lives in Massachusetts in 2021 alone,” said United States Attorney Rachael S. Rollins. “Mr. Fajardo allegedly possessed a staggering quantity of fentanyl – almost nine kilograms – and a clandestine laboratory outfitted with all the tools and materials necessary to press fentanyl into counterfeit pills. By seizing nearly 48,000 such pills along with the tools we believe Mr. Fajardo used to make them, our law enforcement partners likely saved countless lives.”
“Fentanyl is causing great damage to our communities,” said DEA Special Agent in Charge Brian D. Boyle. “Those who distribute this lethal drug are endangering the safety of the citizens of Massachusetts. This investigation demonstrates the strength of collaborative local, county and state law enforcement efforts in Massachusetts and our strong partnership with the U.S. Attorney’s Office.”
The charge of possession with intent to distribute 400 grams or more of a mixture or substance containing fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, DEA SAC Boyle and Lawrence Police Chief Roy P. Vasque made the announcement today. Assistant U.S. Attorney Craig Estes of Rollins’ Narcotics & Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Latin Kings Associate Sentenced for Firearms OffenseRead the Press Release
BOSTON – An associate of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced yesterday in federal court in Boston for firearm and ammunition charges.
Derek Southworth, 34, of Fitchburg, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately 15 days in prison). The government recommended a sentence of 20 months in prison. On Feb. 8, 2022, Southworth pleaded guilty to being a felon in possession of a firearm and ammunition.
On April 18, 2017, Southworth provided an AK-47 style rifle and approximately 49 rounds of ammunition to a cooperating witness. The transaction was captured on audio-video recording. Due to a prior conviction, Southworth is prohibited from possessing firearms and ammunition.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against dozens of leaders, members and associates of the Latin Kings. Southworth is the 52nd defendant to be sentenced in the case.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Paul Oliveira made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of Rollins’ Organized Crime & Gang Unit is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Settles with IT Recruiter to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it has reached a settlement agreement with Technology Hub Inc., an IT staffing and recruiting company based in Virginia. The settlement resolves claims that Technology Hub discriminated against both U.S. citizens and non-U.S. citizens with permission to work in the United States, based on their citizenship or immigration status during its recruitment process.
“Neither employers nor staffing agencies can exclude job applicants by advertising or implementing unlawful preferences based upon citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to enforcing the law to ensure that those who are looking for jobs are protected from unlawful discrimination.”
Based on its investigation, the department concluded that on at least four occasions Technology Hub sought and screened job applicants based on preferences the company and its clients had for workers with particular citizenship or immigration statuses. The company’s practices harmed workers who fell outside those preferences by deterring them from applying. For example, the investigation revealed that at least three times Technology Hub excluded asylees, refugees and U.S. nationals when advertising vacancies for only U.S. citizens and lawful permanent residents. The department further concluded that on at least one occasion Technology Hub discriminated against U.S. workers when it advertised a job seeking only H-1B visa workers.
The Immigration and Nationality Act (INA) protects U.S. citizens, U.S. nationals, refugees, asylees and recent lawful permanent residents from workplace discrimination based on citizenship or immigration status. The INA generally prohibits employers and recruiters from limiting jobs based on citizenship or immigration status unless required by a law, regulation, executive order or government contract. Under the INA, employers and other entities that recruit or refer for a fee can only limit jobs based on citizenship or immigration status if required by a law, regulation, executive order or government contract. Employers and their recruiters violate the INA if they implement a client’s unlawful discriminatory preferences.
Under the terms of the settlement agreement, Technology Hub will pay $12,000 in civil penalties to the United States, revise its policies and procedures, train relevant employees and agents on the INA’s anti-discrimination provision and be subject to monitoring for a three-year period to ensure compliance.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits discrimination based on citizenship or immigration status, and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. IER’s website has more information about how to avoid citizenship status discrimination in hiring and recruiting.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
View the Spanish translation of this press release here.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 28 was:
Jesse Littlebuck Dickinson, 40, a transient, on charges of bank fraud and aggravated identity theft. If convicted of the most serious crime, Dickinson faces a maximum of 30 years in prison, a $250,000 fine and five years of supervised release on the bank fraud crime and a mandatory minimum two years in prison, consecutive to any other sentence, a $250,000 fine and one year of supervised released on the aggravated identity theft crime. Dickinson was detained pending further proceedings. The Billings Police Department and Homeland Security Investigations investigated the case. PACER case reference. 22-67.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 28 was:
Jassie Laydell Westerman, 39, of Great Falls, on charges of possession of firearm by unlawful user of controlled substances and receipt of a firearm by a person under indictment. If convicted of the most serious crime, Westerman faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Westerman was detained pending further proceedings. Homeland Security Investigations, the Great Falls Police Department, the Cascade County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 22-28.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on June 30 was:
Mark Ernest Spani, 64, of Butte, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, distribution of controlled substances, possession of a firearm in furtherance of a drug trafficking crime, prohibited person in possession of a firearm and conspiracy to commit money laundering. If convicted of the most serious crime, Spani faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the conspiracy crime and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on possession of a firearm in furtherance of drug trafficking. Spani was detained pending further proceedings. The Drug Enforcement Administration and Montana Division of Criminal Investigation investigated the case. PACER case reference. 22-24.
Bernard Roy McKinney, 43, of Butte, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of controlled substances. If convicted of the most serious crime, McKinney faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. McKinney was detained pending further proceedings. The Drug Enforcement Administration and Montana Division of Criminal Investigation investigated the case. PACER case reference. 22-24.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Iowa Man Sentenced for Possession with Intent to Distribute 48 Pounds of MethamphetamineRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that NATHAN RUSSELL CATES, age 41, of Missouri Valley, Iowa was sentenced for possession with intent to distribute 500 grams or more of methamphetamine. Cates appeared for a sentencing hearing on June 21, 2022, before United States District Court Nancy D. Freudenthal. He was sentenced to 180 months’ imprisonment and five years of supervised release and was ordered to pay $500 in community restitution and a $100 special assessment.
On May 11, 2021, Cates, a resident of Iowa, was stopped for speeding by Wyoming Highway Patrol. A search of his car led to the recovery, among other things, of 48 pounds of methamphetamines.
“This case serves as an excellent example of cooperation between federal and state law enforcement to jointly combat the ongoing threat of methamphetamine in our communities,” said Acting United States Attorney Nicholas Vassallo. “We remain dedicated to disrupting illegal drug trafficking whether the drugs are bound for Wyoming or are simply passing through on our interstates.”
This crime was investigated by the Drug Enforcement Administration, Wyoming Highway Patrol and Wyoming Division of Criminal Investigation. Assistant United States Attorney Margaret M. Vierbuchen prosecuted the case.
Case No. 21-cr-00101-NDF
Honduran National Charged with Illegal ReentryRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Enin Noe Marquez-Cruz, 30, of Honduras, has been indicted by a federal grand jury in Burlington on a charge of illegally reentering the United States. Marquez-Cruz is to be arraigned on the indictment on July 6, 2022.
According to court documents, on June 18, 2022, a United States Border Patrol Agent encountered Marquez-Cruz walking in the breakdown lane of Interstate 89 South, approximately one-quarter mile south of the Highgate Springs international border crossing. Marquez-Cruz has been removed from the United States on five previous occasions and has been convicted in federal district court three times before on immigration-related offenses.
The U.S. Attorney’s Office notes that the charge against Marquez-Cruz is an accusation only and that Marquez-Cruz is presumed innocent until and unless proven guilty. If convicted, Marquez-Cruz faces up to 2 years of imprisonment. Any sentence in the case will be advised by the Federal Sentencing Guidelines.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the United States Border Patrol.
Assistant U.S. Attorney Kimberly Ang is the prosecutor. The Office of the Federal Public Defender represents Marquez-Cruz.
Guatemalan National Convicted of Smuggling Unaccompanied Child into the United StatesRead the Press Release
Following a seven-day trial, a federal jury today found defendant Julio Ruiz Chuta, 35, guilty of smuggling an unaccompanied child into the United States for financial gain. The jury found Chuta not guilty of forced labor and confiscating the child’s passport and other immigration documents.
According to the evidence presented in court, the defendant was familiar with the child victim and his family since they were from the same village in Guatemala. Because of the limited opportunities in Guatemala and because the defendant had lived in the United States, the family turned to the defendant for help. Based on the defendant’s promise to care for the minor, the boy’s parents allowed him to travel to the United States and permitted the defendant to act as his guardian in the United States. The defendant imposed a debt upon the boy and his family, charged them interest and pressured them to pay, causing the boy to work instead of attending school. The defendant also caused the family to hand over the deed to property they held in Guatemala as collateral for the outstanding debt.
“This defendant used a false promise of a better life in the United States to defraud a Guatemalan child and his family, and then callously caused the child to work long hours for his own financial gain,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Department of Justice is firmly committed to prosecuting perpetrators who lure unaccompanied minors into the United States only to turn around and exploit them for their own profit.”
“This is one of those cases that we constantly warn people about, the dangers of placing the life of a loved one into the hands of a human smuggler,” said Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI) Miami. “The school age victim came here with hopes of living the American dream which quickly turned into a nightmare when Chuta forced the minor to work instead of attending school. HSI will continue to target organizations and individuals that exploit and profit off of innocent people.”
Sentencing has not yet been scheduled in this matter. The defendant faces a maximum sentence of 10 years in prison.
This case was investigated by HSI and the Palm Beach County Sheriff’s Office. It is being prosecuted by Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Former Union Officer Pleads Guilty to Embezzlement Scheme That Generated More Than $500,000Read the Press Release
WASHINGTON – A former union officer pleaded guilty today to conspiring to steal more than $500,000 from the labor organization, using the money for parties, trips, furniture, and other personal expenses.
Attia Little, 43, of Temple Hills, Maryland, pleaded guilty in the U.S. District Court for the District of Columbia to one count of conspiracy and one count of theft from a labor organization. She is to be sentenced on Nov. 4, 2022, by the Honorable Amit P. Mehta. Under federal sentencing, she faces a likely range of 30 to 37 months in prison and potential financial penalties. The plea agreement calls for Little to pay restitution.
The announcement was made by U.S. Attorney Matthew M. Graves, Troy W. Springer, Acting Special Agent in Charge of the Washington Regional Office of the U.S. Department of Labor, Office of the Inspector General, and Mark Wheeler, District Director, Washington District Office, Office of Labor-Management Standards.
Little was the operations manager of the Property Services Division of the Service Employees International Union (SEIU), headquartered in Washington, D.C. As part of her duties, she managed administrative support, booked reservations for SEIU employees, and paid vendor invoices for union-related purchases. She had a work-issued credit card and access to third-party discount travel booking platforms that were to be used for union business only.
A co-defendant, Melba Norris, was a close associate of Little’s, and had no affiliation with the union. According to plea documents, between November 2015 and October 2017, Little used her access to the credit card and travel booking platforms to embezzle approximately $503,600 from SEIU. In total, she kept approximately $460,900 in SEIU funds for herself, and Norris kept approximately $42,700.
Among other things, Little used the SEIU credit card to purchase personal items, including purchases for a baby, personal parties hosted at her residence, personal travel, furniture, watches, clothing, and video games. She also used the credit card to purchase gift cards for personal use. Little also used the credit card to pay funds to a company that she created and companies created and controlled by Norris, even though no work was performed.
Norris, 36, of Powder Springs, Georgia, pleaded guilty in May 2022 to charges of conspiracy and theft from a labor organization. She is to be sentenced on Oct. 7, 2022.
In announcing the plea, U.S. Attorney Graves, Acting Special Agent in Charge Springer, and District Director Wheeler commended the work of those who investigated the case from the Labor Department’s Office of the Inspector General and Office of Labor-Management Standards. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Financial Analyst Bryan Snitselaar, and Assistant U.S. Attorney Ahmed M. Baset, who investigated and prosecuted the matter.
Former Tennessee Department of Corrections Officers Indicted for Federal Offenses Following Assault on Inmate and False Cover-up ReportRead the Press Release
The Department of Justice announced that Javian Griffin, 36, and Sebron Hollands, 32, two former tactical officers with the Strike Force for the Tennessee Department of Corrections, were indicted by a federal grand jury in Memphis, Tennessee. Griffin is charged with using unlawful force against an inmate at Northwest Correctional Complex. Griffin and Hollands are both charged with obstruction of justice for writing false reports about Griffin’s assault.
The count charging Griffin with unlawful use of force carries a maximum penalty of 10 years of imprisonment. The counts charging Griffin and Hollands with writing a false report carry a maximum penalty of 20 years of imprisonment.
Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division, U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee and Special Agent in Charge Douglas Korneski of the FBI’s Memphis Field Office made the announcement.
This case was investigated by the FBI’s Memphis Field Office. It is being prosecuted by Assistant U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorney Andrew Manns for the Justice Department’s Civil Rights Division.
Former Tennessee Department of Corrections Officers Indicted for Federal Civil Rights Offenses Following Assault on Inmate and False Cover-up ReportRead the Press Release
Memphis, TN – The Department of Justice announced that Javian Griffin, 36, and Sebron
Hollands, 32, two former tactical officers with the Strike Force for the Tennessee Department of
Corrections, were indicted by a federal grand jury in Memphis, Tennessee. Griffin is charged with
using unlawful force against an inmate at Northwest Correctional Complex. Griffin and Hollands are
both charged with obstruction of justice for writing false reports about Griffin’s assault.The count charging Griffin with unlawful use of force carries a maximum penalty of 10 years of
imprisonment. The counts charging Griffin and Hollands with writing a false report carry a
maximum penalty of 20 years of imprisonment.Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights
Division, U.S. Attorney for the Western District of Tennessee Joseph C. Murphy Jr. and Special
Agent in Charge Douglas Korneski of the FBI Memphis Field Office made the announcement.This case was investigated by the FBI Memphis Field Office. It is being prosecuted by Assistant
U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorney Andrew Manns
for the Justice Department’s Civil Rights Division.
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Former Rancho Mirage Resident Sentenced to More Than 8 Years in Prison for $44 Million Fraud that Illegally Billed Insurers for Cosmetic SurgeriesRead the Press Release
LOS ANGELES – A former Coachella Valley resident whom Israel deported after she and her then-doctor husband fled there to escape criminal prosecution was sentenced today to 97 months in federal prison for her role in a conspiracy in which insurers were fraudulently billed $44 million for unnecessary cosmetic surgeries.
Linda Morrow, 70, formerly of Rancho Mirage, was sentenced by United States District Judge Josephine L. Staton, who also ordered her to pay $14,025,904 in restitution. At today’s hearing, Judge Staton remarked that Morrow’s “greed knew no bounds.”
Morrow, who has been in federal custody since July 2019, pleaded guilty on February 4 to one count of conspiracy to commit health care fraud and one count of contempt of court.
Morrow’s husband, 77-year-old David M. Morrow, was extradited by Israel in January 2020 and is currently serving a 20-year prison sentence. David Morrow pleaded guilty in 2016 and was free on bond awaiting sentencing when the couple fled to Israel. Judge Staton imposed the 20-year sentence while the Morrows were living as fugitives, finding that the intended loss from the scheme was more than $44 million. David Morrow was a doctor whose medical license was revoked in January 2018.
Linda Morrow helped her husband run the fraudulent billing scheme out of The Morrow Institute (TMI) in Rancho Mirage and was TMI’s executive director. The Morrows schemed to defraud health insurance companies by submitting bills for procedures performed at TMI that were billed as “medically necessary” – but in fact were cosmetic procedures such as “tummy tucks,” “nose jobs,” breast augmentations, and vaginal rejuvenations.
The victims included Aetna, Anthem Blue Cross, Blue Shield of California and Cigna Health Insurance. The scheme also defrauded Staples, Inc. and a self-insured group of public entities that included school districts.
“[Linda Morrow] was not simply the ‘doctor’s wife’ to a doctor who happened to commit a crime,” prosecutors wrote in a sentencing memorandum. “To the contrary, [she] was an equal partner in their fraudulent scheme, and she participated and ran multiple parts of it.”
In 2017, Linda Morrow fled the United States with her husband to avoid prosecution and failed to appear in court as ordered. In addition to helping move $4 million from domestic bank accounts to accounts in Israel, Morrow used a fraudulent Mexican passport to enter Israel and a fraudulent Guatemalan passport while living there. While living as a fugitive in Israel, Morrow applied for Israeli citizenship using a fraudulent identity.
Israel deported her in 2019.
The FBI, IRS Criminal Investigation and the California Department of Insurance conducted the investigation into the Morrows and TMI. The FBI’s Legal Attachés in Jerusalem, Mexico City, and Guatemala; the Israeli National Police; the United States Marshals Service; the United States Border Patrol’s Northern Border Coordination Center; and the Department of Justice’s Office of International Affairs provided considerable assistance in tracking down and capturing the Morrows.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case. Assistant United States Attorney Robert I. Lester of the Civil Division’s Financial Litigation Section is enforcing restitution orders in this matter.
Former Monroe, Louisiana, Police Department Officer Pleads Guilty to Civil Rights Charge for Using Excessive ForceRead the Press Release
Jared Preston Desadier, 44, of Monroe, Louisiana, pleaded guilty today before U.S. District Judge Elizabeth E. Foote to a charge of deprivation of rights under color of law, announced Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Brandon B. Brown of the Western District of Louisiana; and Special Agent in Charge Douglas A. Williams of the FBI New Orleans Field Office.
According to evidence presented to the court, on or about the evening of April 21, 2020, Desadier, who was at the time a uniformed officer with the Monroe Police Department (MPD), used unreasonable force by kicking an arrestee in the face. The incident occurred shortly after midnight, when MPD officers overheard an alarm system activate, and Desadier and other officers detained a man for questioning. When officers discovered drug paraphernalia on the man, the man ran from the scene and officers gave chase. Approximately a block away, a patrolling MPD officer caught up to the man and ordered him to the ground. The man complied, by lying flat on his stomach and putting his hands behind his back. As that officer approached and prepared to handcuff the man, Desadier ran up to the scene and kicked the man in the face as he lay face-down on the ground with both hands behind his back.
Desadier admitted in court that his assault on the victim was without justification, as the man did not present a threat to any officer or other person on the scene. Desadier also admitted that he knew, at the time, that his actions were unjustified and unreasonable under the circumstances.
“Instead of lawfully carrying out his sworn duties as a law enforcement officer, Desadier abused his authority by assaulting and injuring an arrestee who was not a threat,” said Assistant Attorney General Clarke. “The Justice Department will continue to vigorously prosecute any officer who abuses the public trust by using excessive force without basis.”
“I applaud our local, law-abiding police officers for their service to our respective communities,” said U.S. Attorney Brown. “Unfortunately, there are a few police officers who cannot be described as law-abiding. When police officers commit crimes in violation of federal criminal civil rights statutes that can be proved beyond a reasonable doubt in a federal court of law, we will prosecute those officers zealously and without hesitation. The actions of this officer are inexcusable, violate public trust in law enforcement and he must be held accountable. The U.S. Attorney’s Office is committed to enforcing the rule of law and protecting the civil rights of all persons present within the Western District of Louisiana, with a goal of restoring and building the public’s trust in local, state and federal law enforcement.”
“The preservation of civil rights and the investigation of color of law violations are of utmost priority for the FBI,” said Special Agent in Charge Williams Jr. “Today's guilty plea sends a clear message that individuals like Jared Preston Desadier will be held responsible and no one is above the law. We thank our partners at the U.S. Attorney's Office, Western District of Louisiana and Department of Justice Civil Rights Division for their strong partnership and dedication to protecting the civil rights of every citizen.”
Desadier faces a maximum sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. His sentencing has been set for Nov. 21.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Brian C. Flanagan and Mary J. Mudrick, and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division.
Former Monroe Police Department Officer Pleads Guilty to Civil Rights Charge for Using Excessive ForceRead the Press Release
MONROE, La. - Jared Preston Desadier, 44, of Monroe, Louisiana, pleaded guilty today before U.S. District Judge Elizabeth E. Foote to a charge of deprivation of rights under color of law, announced Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division; U.S. Attorney Brandon B. Brown of the Western District of Louisiana; and Special Agent in Charge Douglas A. Williams of the FBI New Orleans Field Office.
According to evidence presented to the court, on or about the evening of April 21, 2020, Desadier, who was at the time a uniformed officer with the Monroe Police Department (MPD), used unreasonable force by kicking an arrestee in the face. The incident occurred shortly after midnight, when MPD officers overheard an alarm system activate, and Desadier and other officers detained a man for questioning. When officers discovered drug paraphernalia on the man, the man ran from the scene and officers gave chase. Approximately a block away, a patrolling MPD officer caught up to the man and ordered him to the ground. The man complied, by lying flat on his stomach and putting his hands behind his back. As that officer approached and prepared to handcuff the man, Desadier ran up to the scene and kicked the man in the face as he lay face-down on the ground with both hands behind his back.
Desadier admitted in court that his assault on the victim was without justification, as the man did not present a threat to any officer or other person on the scene. Desadier also admitted that he knew, at the time, that his actions were unjustified and unreasonable under the circumstances.
“Instead of lawfully carrying out his sworn duties as a law enforcement officer, Desadier abused his authority by assaulting and injuring an arrestee who was not a threat,” said Assistant Attorney General Clarke. “The Justice Department will continue to vigorously prosecute any officer who abuses the public trust by using excessive force without basis.”
“I applaud our local, law-abiding police officers for their service to our respective communities,” said U.S. Attorney Brown. “Unfortunately, there are a few police officers who cannot be described as law-abiding. When police officers commit crimes in violation of federal criminal civil rights statutes that can be proved beyond a reasonable doubt in a federal court of law, we will prosecute those officers zealously and without hesitation. The actions of this officer are inexcusable, violate public trust in law enforcement, and he must be held accountable. The U.S. Attorney’s Office is committed to enforcing the rule of law and protecting the civil rights of all persons present within the Western District of Louisiana, with a goal of restoring and building the public’s trust in local, state and federal law enforcement.”
“The preservation of civil rights and the investigation of color of law violations are of utmost priority for the FBI. Today's guilty plea sends a clear message that individuals like Jared Preston Desadier will be held responsible and no one is above the law,” said Special Agent in Charge Williams Jr. “We thank our partners at the U.S. Attorney's Office, Western District of Louisiana and Department of Justice Civil Rights Division for their strong partnership and dedication to protecting the civil rights of every citizen.”
Desadier faces a maximum sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. His sentencing has been set for November 21, 2022.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorneys Brian C. Flanagan and Mary J. Mudrick, and Trial Attorney Thomas Johnson of the Justice Department’s Civil Rights Division.
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Former Head of Anaheim Chamber of Commerce Pleads Guilty to Federal Fraud, False Statement and Criminal Tax ChargesRead the Press Release
LOS ANGELES – The former president and CEO of the Anaheim Chamber of Commerce pleaded guilty today to federal criminal charges for defrauding a cannabis company, fraudulently obtaining a COVID-relief business loan worth nearly $62,000, lying to a bank while seeking a loan for a $1.5 million second home, and cheating on his taxes.
Todd Ament, 57, of Orange, pleaded guilty to two counts of wire fraud, one count of making a false statement to a financial institution, and one count of subscribing to a false tax return.
According to his plea agreement, in 2019, Ament served as president and CEO of the Anaheim Chamber of Commerce. During that time, Ament and a political consultant who was a partner at a national public relations firm, devised a scheme to divert proceeds intended for the Chamber through the PR firm and into Ament’s personal bank account.
Ament and the political consultant schemed to defraud a cannabis company that had retained the political consultant to lobby for favorable cannabis-related legislation in Anaheim. The cannabis company paid $225,000 to the Chamber with the understanding that it would have access to a task force that crafted such legislation, but at least $41,000 of that money was paid directly to Ament without those payments being disclosed to the client.
In April 2020, Ament applied to the Small Business Administration (SBA) for an Economic Injury Disaster Loan (EIDL) on behalf of his company, TA Consulting LLC, a sole proprietorship based in Big Bear City that had no substantial operations or employees. In May 2020, the SBA wired Ament $61,900 as EIDL proceeds for his business. Ament used the money to pay for various personal expenses, including at clothing stores, boat dealers and on property taxes on his home.
In December 2020, Ament lied to JPMorgan Chase by submitting a letter falsely representing that three deposits from the PR firm to Ament-controlled bank accounts – totaling $205,000 – were earned income based on services provided by TA Consulting LLC on the PR firm’s behalf. In fact, Ament knew the $205,000 represented a loan to himself and was not earned income.
Finally, Ament admitted in his plea agreement that for the tax years 2017, 2018 and 2019 he knowingly and willfully caused false tax returns to be signed and filed that did not report income he had received from various sources. For example, in July 2019, Ament signed and filed a federal tax return that reported that his gross receipts for the tax year 2018 was $0, when in fact his actual gross receipts for that year were $179,336.
In total, Ament caused a tax loss to the United States government of $249,998 for those three tax years.
United States District Judge Fernando L. Aenlle-Rocha scheduled a December 9 sentencing hearing, at which time Ament will face statutory maximum sentences of 20 years in federal prison for each wire fraud count, 30 years in federal prison for the false statement to a financial institution count, and three years’ imprisonment for the tax count.
The FBI and IRS Criminal Investigation are investigating this matter.
Assistant United States Attorneys Daniel H. Ahn, Daniel S. Lim and Melissa S. Rabbani of the Santa Ana Branch Office are prosecuting this case.
Former Head Tennis Coach at Georgetown University Sentenced to More Than Two Years in Prison in College Admissions CaseRead the Press Release
BOSTON – The former head coach of men and women’s tennis at Georgetown University was sentenced today in connection with soliciting and accepting bribes to facilitate the admission of prospective Georgetown applicants and failing to report all of the income from the bribes on his federal income taxes.
Gordon Ernst, 55, of Rockville, Md. and Falmouth, Mass., was sentenced by U.S. District Court Judge Indira Talwani to 30 months in prison and two years of supervised release, with the first six months to be served in home confinement. This is the longest prison term imposed in the college admissions case. Ernst was also ordered to forfeit $3,435,053, including more than $1.3 million in assets that the government seized in March 2019. In October 2021, Ernst pleaded guilty to one count of conspiracy to commit federal programs bribery, three counts of federal programs bribery and one count of filing a false tax return.
Ernst conspired with William “Rick” Singer to solicit and receive bribe payments from the families of prospective Georgetown applicants to facilitate their admission to Georgetown as purported student athletes. Specifically, Ernst regularly used at least two, and often as many as five, of the six recruitment slots Georgetown allotted him each year to recruit unqualified students in exchange for bribe payments. For more than 10 years, Ernst facilitated the admission of at least 22 students – at least 19 of which were Singer’s clients – to Georgetown as purported tennis recruits in exchange for a total of nearly $3.5 million in bribe payments. He then failed to report all of the income from those bribe payments on his federal income tax returns.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright, Kristen A. Kearney and Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case and Assistant U.S. Attorney Carol E. Head, Chief of Rollin’s Asset Recovery Unit handled the forfeiture aspects of the case.
Former Gainesville Preschool Teacher Indicted for Production and Possession of Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – Trevor Alec Hruby, 24, of Gainesville, Florida, was indicted by a federal grand jury charging him with four counts of production of child pornography and one count of possessing child pornography. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida. Hruby was remanded to federal custody following his arraignment on the charges.
The indictment alleges that, between December 2020 and September 2021, Hruby produced and possessed material containing child pornography. The pornographic material allegedly found in Hruby’s possession involved minors under the age of 12.
Trial for Hruby is set for August 3, 2022, at 8:30 a.m., at the United States Courthouse in Gainesville before the Honorable United States District Judge Allen Winsor.
Hruby is also facing separate, related state charges which are being prosecuted by the State Attorney’s Office for 8th Judicial Circuit.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The case was investigated by the Gainesville Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney F.T. Williams.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Director of Accounting and Human Resources Pleads Guilty to Embezzling from Her EmployerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced that SUSANA RIVERA, the former Director of Accounting and Human Resources for a kitchen remodeling firm located in Westchester County and Greenwich, Connecticut, pled guilty to wire fraud in connection with her embezzlement of more than $630,000 from her former employer.
According to the allegations contained in the Information:
In October 2019, RIVERA was hired as the Director of Accounting and Human Resources at the victim company, a family owned kitchen design and remodeling business in Mamaroneck, Bedford and Greenwich, Connecticut. Starting in November 2019, RIVERA made hundreds of unauthorized charges in a total amount exceeding $175,000 to the victim company’s credit cards for personal expenses, including jewelry, beauty treatments, laser treatments, travel, pets, cosmetic surgery, clothing and cars, including a partial payment on a $100,000 Corvette. RIVERA also caused the victim company’s payroll company to make unauthorized payments in a net amount of more than $370,000 to a fake vendor that RIVERA created to receive the money. RIVERA also caused unauthorized transfers from the victim company’s bank account in an amount exceeding $2,900 to pay her personal utility bills. To get restrictions on the use of the victim company’s credit cards removed, RIVERA posed as an owner of the victim company in telephone calls with the company’s credit card company. RIVERA also sent the credit card company photographs of the owner’s driver’s license to cause credit card company personnel to believe she was the owner.
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RIVERA, 40, of the Bronx, New York, pled guilty to one count of wire fraud, which carries a maximum sentence of 20 years in prison.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence will be determined by the court.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorney James McMahon is in charge of the prosecution.
Former Correctional Officer at Jessup Correctional Institution Sentenced to Federal Prison for Racketeering Conspiracy ChargeRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced former Correctional Dietary Officer Chanel Pierce, age 29, of Pikesville, Maryland, yesterday to 21 months in federal prison, followed by 3 years of supervised release, for a racketeering conspiracy in connection with her work at the Jessup Correctional Institution (JCI), a maximum-security prison that housed approximately 1,800 male prisoners. The conspiracy, which included former correctional officers, inmates, and outside “facilitators,” was centered on bribing correctional officers to smuggle contraband, including narcotics, alcohol, tobacco, and cell phones, into the prison.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
According to Pierce’s plea agreement and other court documents, correctional officers (COs) accepted or agreed to accept payments from facilitators and/or inmates or engaged in sexual relations with inmates as consideration for smuggling contraband into JCI. Inmates acted as both wholesalers and retailers of contraband and, in the process, made profits that far exceeded the profits that could be made by selling similar drugs on the street. For example, conspirator inmates could purchase Suboxone strips for approximately $3 each and sell them inside JCI for approximately $50 each, or for a profit of more than 1,000 percent.
As detailed in her plea agreement, Pierce conspired with inmate Darnell Smith, a/k/a Hook, Smith’s outside facilitator, Chaz Chriscoe, and others to smuggle contraband, including controlled dangerous substances, such as Suboxone, into JCI and then distribute the contraband to Smith and other inmates. Pierce regularly met with Chriscoe at her residence and elsewhere to obtain contraband for smuggling. Pierce then concealed the contraband on her person, smuggled it into JCI, and distributed it to JCI inmates. Pierce admitted that she did this regularly while employed at the facility.
In exchange for smuggling the contraband, Pierce received thousands of dollars in bribe payments, which were sent to her by co-conspirators on behalf of JCI inmates. The memo line of the payments would often include the name or nickname of the inmate on whose behalf the bribe was made. For example, on April 12, 2019, Pierce received a $500 bribe payment from co-defendant Vonda Bolden along with the message “for Boosie,” who was Bolden’s son, JCI inmate Marshall Hill. Pierce transferred most of the bribe payments to her personal bank accounts and used the funds for her own benefit.
Early on the morning of May 25, 2019, Pierce met with co-defendant Chriscoe at her home and obtained several balloons filled with controlled substances to smuggle into JCI. Pierce then went to work and was stopped by law enforcement as she entered the facility and searched. Law enforcement recovered a concealed purple balloon from Pierce’s person containing Suboxone. A subsequent search of Pierce’s home revealed several more balloons filled with contraband that she intended to smuggle into JCI.
All fifteen defendants charged in this case have pleaded guilty to their roles in the conspiracy, including another former Correctional Office, co-defendant Dominique Booker. Chaz Michael Chriscoe, age 41, of Owings Mills, Maryland, was sentenced to 39 months in federal prison; Inmates Darnell Smith, a/k/a Hook, age 41 and Marshall Hill, a/k/a Boosie, age 30, were sentenced to 63 months and to four years in federal prison, respectively; Dominique Booker, age 45, of Baltimore, Maryland and Vonda Bolden, age 57, of Baltimore, Maryland, are awaiting sentencing.
The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the JCI investigation and have been full partners in this investigation.
This case is also part of 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 and the Department of Public Safety and Correctional Services for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Christopher M. Rigali, who is prosecuting this 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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Federal Jury Convicts Lapwai Man for Assault with a Dangerous WeaponRead the Press Release
COEUR D’ALENE – After a three-day trial, a federal jury sitting in Coeur d’Alene found Qaya Mikel Gordon, 20, guilty of two counts of Assault with a Dangerous Weapon, U.S. Attorney Josh Hurwit announced today. Chief U.S. District Judge David C. Nye presided over the trial, which began on June 27. The case was charged and tried in federal court because the Defendant and victims were tribal members and the crime was a felony that occurred on the Nez Perce Indian reservation.
According to court records and evidence presented at trial, Gordon attacked and injured his mother and her boyfriend with a hammer on November 1, 2021. Gordon initially denied involvement in the crime, telling the police that he was not there. At trial, however, he acknowledged that he was there but claimed that he acted in self-defense. The jury found him guilty.
Chief U.S. District Judge David C. Nye set sentencing for September 14, 2022, at 9:00 a.m. at the federal courthouse in Coeur d’Alene.
U.S. Attorney Hurwit attributed the successful investigation and prosecution to the collaborative effort of the Nez Perce Tribal Police and Prosecutor’s Offices, the Federal Bureau of Investigation, and the U.S. Attorney’s Office. “We succeed in protecting our citizens and furthering the interests of justice when we work together,” he said.
Hurwit also encourages those experiencing domestic violence or those who know of someone in need of help to reach out to local law enforcement or to the free and confidential National Domestic Violence Hotline by calling 1-800-799-SAFE, texting “START” to 88788, or visiting their website at www.thehotline.org.
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Federal Jury Convicts Ada Resident of Murder in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Tyler Jay Mullins, age 44, of Ada, Oklahoma, was found guilty by a federal jury of Murder in Indian Country, in violation of Title 18, United States Code, Sections 1111(a), 1151, and 1153, and Causing the Death and Murder of a Person in the Course of a Violation of Title 18 U.S.C. § 924(c), in violation of Title 18, United States Code, Section 924(j)(1).
The jury trial began with testimony on Monday, June 27, 2022, and concluded on Thursday, June 30, 2022, with the guilty verdict.
During the trial, the United States presented evidence that in the early morning hours of April 20, 2002, the defendant severely beat his ex-girlfriend, Rachel Woodall. The defendant wrapped her in a tarp, put her into the trunk of his car, and drove her to a gravel/sand pit in rural Seminole County. The defendant placed the tarp-wrapped victim into a hole, shot her three times, and buried the body in the hole. The Medical Examiner determined Woodall died from the gun shots. After initially denying responsibility for Woodall’s death, on April 21, 2002, the defendant took law enforcement to where her body was located. A search of the scene also revealed 9mm shell casings in close proximity to the victim’s body.
The guilty verdict was the result of an investigation by the Oklahoma State Bureau of Investigation and the Federal Bureau of Investigation.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant in this case is a member of a federally recognized Indian tribe and the crime occurred in Seminole County, within the boundaries of the Seminole Nation Reservation, and within the Eastern District of Oklahoma.
The Honorable Charles B. Goodwin, U.S. District Judge in the United States District Court for the Western District of Oklahoma, sitting in Oklahoma City, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Mullins was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Patrick Flanigan and Dean Burris represented the United States.
Federal Indictments Charge Two Violent Carjackings in ChicagoRead the Press Release
CHICAGO — The U.S. Attorney’s Office today announced federal charges against three individuals in connection with separate violent carjackings in Chicago.
United States v. Kimbrough, 22 CR 330
TRIMANE O. KIMBROUGH, 20, of Chicago, is charged with one count of carjacking and one count of using, carrying, and brandishing a firearm during a crime of violence, according to an indictment returned Tuesday in U.S. District Court in Chicago. Kimbrough allegedly brandished a semiautomatic handgun and stole a 2010 Mazda 6 from a victim in Chicago on May 2, 2022.
The carjacking count is punishable by up to 15 years in federal prison. The firearm count carries a minimum prison sentence of seven years and a maximum of life, which must be served consecutively to the sentence imposed for the carjacking offense.
Kimbrough is currently in law enforcement custody. Arraignment in federal court in Chicago has not yet been scheduled.
The investigation was conducted by the FBI-led Violent Crimes Task Force, which includes the Cook County Sheriff’s Office and Illinois State Police, and the Chicago Police Department. Valuable assistance was provided by the Northwestern University Police Department. The government is represented by Assistant U.S. Attorney Jasmina Vajzovic.
United States v. Clay and Cain, 22 CR 333
ALLEN CLAY, 20, and NARONN CAIN, 25, both of Chicago, are each charged with one count of carjacking and one count of using, carrying, and brandishing a firearm during a crime of violence, according to an indictment returned Wednesday in U.S. District Court in Chicago. Clay brandished a semiautomatic handgun and Cain brandished a semiautomatic rifle when the pair stole a 2011 Kia Optima from a victim in Chicago on April 25, 2022, the indictment states.
The carjacking count is punishable by up to 15 years in federal prison. The firearm count carries a minimum prison sentence of seven years and a maximum of life, which must be served consecutively to the sentence imposed for the carjacking offense.
Clay and Cain are currently in law enforcement custody. Arraignments in federal court in Chicago have not yet been scheduled.
The investigation was conducted by the FBI-led Violent Crimes Task Force, which includes the Cook County Sheriff’s Office and Illinois State Police, and the Chicago Police Department. The government is represented by Assistant U.S. Attorney Albert Berry III.
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“Our message to would-be carjackers is simple: Committing a senseless act of violence like carjacking will earn you a home in federal prison for a long time,” said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois. “We are working closely with our law enforcement partners to pursue, prosecute, and detain violent carjackers and gun offenders in Chicago.”
“This indictment shows that the Violent Crimes Task Force is hard at work removing carjackers and illegal weapons from our streets,” said Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. “The FBI is committed to using every resource in our arsenal to stop carjackings and make our communities safer.”
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Federal Grand Jury Charges Three Men with Firearms OffensesRead the Press Release
Paducah, KY – A federal grand jury returned three indictments in May of this year separately charging three men with firearms offenses. According to the indictments:
Shaun Powers, 43, of Hopkinsville, Kentucky, was charged with possession of a firearm by a prohibited person, illegal possession of a machine gun, and possession of an unregistered firearm, that is, a weapon made from a shotgun having a barrel length of less than 18 inches;
Cleve R. Nedd, Jr., 30, of Hopkinsville, Kentucky, was charged with being a felon in possession of a firearm; and
Anthony Jones, 22, of Indianapolis, Indiana, formerly of Christian County, Kentucky, was charged with engaging in the business of dealing firearms, 5 counts of making a false statement during the purchase of a firearm, transferring a firearm to an out of state resident, and illegal possession of a machine gun.
Powers made his initial court appearance on June 28, 2022. Jones made his initial court appearance on June 30, 2022. Both Powers and Jones remain in federal custody pending trial. Nedd is currently scheduled to make his initial court appearance on July 28, 2022. If convicted at trial, the defendants each face up to 10 years in federal prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky and ATF Special Agent in Charge Shawn Morrow of the Louisville Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Kentucky State Police, Hopkinsville Police Department, and the Christian County Sheriff’s Office are investigating the cases.
These cases are being prosecuted by Assistant U. S. Attorneys Seth Hancock and Leigh Ann Dycus.
These cases are 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
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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Federal Correctional Officer Indicted and Arrested for Use of Excessive Force Against an InmateRead the Press Release
SAN JUAN, Puerto Rico – On Thursday, June 30, a federal grand jury in the District of Puerto Rico returned an indictment charging Emilio Rodríguez-Arroyo with deprivation of rights under color of law and obstruction of justice. Today the defendant was arrested on these charges and taken into federal custody.
According to court documents, Emilio Rodríguez-Arroyo, a correctional officer at the Metropolitan Detention Center (MDC) in Guaynabo, Puerto Rico, used excessive force against an inmate, while the inmate was handcuffed behind his back and not resisting, resulting in bodily injury.
On Nov. 8, 2021, Rodríguez-Arroyo deprived victim E.R.R. of the Eighth Amendment right to be free from cruel and unusual punishment. The indictment alleges that the defendant struck E.R.R. in the head and face area while E.R.R. was handcuffed behind his back, not resisting, and in the control of other officers. After the incident, Rodríguez-Arroyo knowingly misled a senior Bureau of Prisons (BOP) official about the incident.
The defendant made his initial court appearance today before U.S. Magistrate Judge Giselle López-Soler of the U.S. District Court for the District of Puerto Rico. If convicted, he faces a maximum penalty of 10 years in prison for the civil rights violation count, and a maximum penalty of 20 years for the obstruction of justice count.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico, Special Agent in Charge Joseph González of the FBI San Juan Field Office and Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General Miami Field Office made the announcement.
The FBI and the Department of Justice Office of the Inspector General are investigating the case.
Assistant U.S. Attorney Alexander Alum of the District of Puerto Rico and Trial Attorney Eric Peffley of the Civil Rights Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Federal Correctional Officer Indicted and Arrested for Use of Excessive Force Against an InmateRead the Press Release
On Thursday, June 30, a federal grand jury in the District of Puerto Rico returned an indictment charging Emilio Rodríguez-Arroyo with deprivation of rights under color of law and obstruction of justice. Today, the defendant was arrested on these charges and taken into federal custody.
According to court documents, Emilio Rodríguez-Arroyo, a correctional officer at the Metropolitan Detention Center (MDC) in Guaynabo, Puerto Rico, used excessive force against an inmate while the inmate was handcuffed behind his back and not resisting, resulting in bodily injury.
On Nov. 8, 2021, Rodríguez-Arroyo deprived victim E.R.R. of the Eighth Amendment right to be free from cruel and unusual punishment. The indictment alleges that the defendant struck E.R.R. in the head and face area while E.R.R. was handcuffed behind his back, not resisting and in the control of other officers. After the incident, Rodríguez-Arroyo knowingly misled a senior Bureau of Prisons (BOP) official about the incident.
The defendant made his initial court appearance today before U.S. Magistrate Judge Giselle López-Soler of the U.S. District Court for the District of Puerto Rico. If convicted, he faces a maximum penalty of 10 years in prison for the civil rights violation count, and a maximum penalty of 20 years for the obstruction of justice count.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico, Special Agent in Charge Joseph González of the FBI San Juan Field Office and Special Agent in Charge James F. Boyersmith of the Department of Justice Office of the Inspector General Miami Field Office made the announcement.
The FBI and the Department of Justice Office of the Inspector General are investigating the case.
Assistant U.S. Attorney Alexander Alum for the District of Puerto Rico and Trial Attorney Eric Peffley of the Civil Rights Division are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Federal Charges Accuse Chicago Man of Illegally Possessing Handgun Equipped with “Glock Switch”Read the Press Release
CHICAGO — A Chicago man has been arrested on a federal firearm charge for allegedly illegally possessing a handgun equipped with a device converting it into an automatic weapon.
An indictment unsealed today in U.S. District Court in Chicago charges PARIS SHEPHERD, 31, with one count of illegal possession of a firearm. Shepherd had previously been convicted of a felony and was prohibited by federal law from possessing a firearm.
The indictment accuses Shepherd of illegally possessing the loaded semiautomatic handgun in the Auburn Gresham neighborhood of Chicago on June 14, 2022. The gun was allegedly equipped with a conversion device, also known as a “Glock switch,” which transforms firearms into automatic weapons capable of shooting more than one shot with a single pull of the trigger.
Shepherd was arrested this morning. He is scheduled to make an initial appearance in federal court this afternoon before U.S. Magistrate Judge Jeffrey T. Gilbert.
The indictment and arrest were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; and David Brown, Superintendent of the Chicago Police Department. The government is represented by Assistant U.S. Attorneys Margaret Steindorf and Paul Schied.
“The illegal possession of firearms equipped with conversion devices poses a grave threat to public safety,” said U.S. Attorney Lausch. “Our office is using every available federal law enforcement tool to keep dangerous weapons out of the wrong hands.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. The charge in the indictment is punishable by up to ten years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Fayette Drug Dealer Sentenced to Federal Prison for Possessing FirearmsRead the Press Release
A man that possessed firearms in connection with marijuana distribution was sentenced June 30, 2022, to more than five years in federal prison.
Kaleb James Huffman, age 23, from Fayette, Iowa, received the prison term after a December 28, 2021 guilty plea to one count of possession of a firearm by a drug user.
Evidence disclosed at sentencing showed that, on December 4, 2020, law enforcement searched Huffman’s residence and seized a Mossberg 715T, .22 LR caliber rifle with an obliterated serial number, a Raven Arms P-25, .25 Auto caliber pistol, and at least two pounds of marijuana, all in the same bedroom. Law enforcement also located evidence of marijuana use throughout the residence. A later search of Huffman’s social media accounts revealed pictures and videos of Huffman smoking marijuana, advertising the sale of marijuana, and possessing large sums of cash.
Huffman was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Huffman was sentenced to 70 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.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Huffman 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 Dillan Edwards and investigated by the Fayette Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-02045-CJW.
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Farmington Man Sentenced to 86 Months in Prison for StabbingRead the Press Release
PHOENIX, Ariz. – On June 27, 2022, Fabian Yazzie, 33, of Farmington, N.M., was sentenced by United States District Judge Steven P. Logan to 86 months in prison, followed by three years of supervised release. Yazzie had previously pleaded guilty on February 11, 2022, to Assault with a Dangerous Weapon.
On March 15, 2018, Yazzie stabbed the victim in the neck and hand with a knife. The assault occurred in Lukachukai, Arizona, on the Navajo Nation, where both Yazzie and the victim are enrolled members.
The FBI and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Emma Mark and Alexander Samuels, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08030-PCT-SPL
RELEASE NUMBER: 2022-105_YAZZIE# # #
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.
El Departamento de Justicia llega a un acuerdo con un reclutador de informática que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado un acuerdo conciliatorio con Technology Hub Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en Virginia. El acuerdo resuelve las acusaciones de que Technology Hub había discriminado tanto a ciudadanos de los EE. UU. como a no ciudadanos de los EE. UU. que contaban con permiso para trabajar en los Estados Unidos, con base en su estatus migratorio o ciudadanía durante su proceso de reclutamiento.
«Ni empleadores ni agencias de contratación pueden excluir a solicitantes de trabajo al promocionar o implementar preferencias ilícitas basadas en la ciudadanía o el estatus migratorio de uno», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles está comprometida a hacer cumplir la ley para garantizar que los que están buscando un trabajo queden protegidos de la discriminación ilícita».
Con base en su investigación, el Departamento concluyó que en al menos cuatro ocasiones, Technology Hub buscó e investigó a solicitantes con base en la preferencia de la compañía y sus clientes por trabajadores con cierto estatus migratorio o ciudadanía. Las prácticas de la compañía perjudicaron a trabajadores que no acataban esas preferencias al disuadirles de solicitar un trabajo. Por ejemplo, la investigación reveló que en al menos tres ocasiones, Technology Hub excluyó a asilados, refugiados y nacionales de los EE. UU. al promocionar vacantes solamente para ciudadanos y residentes permanentes legales de los EE. UU. Más aún, el Departamento concluyó que en al menos una ocasión, Technology Hub discriminó a trabajadores en este país al promocionar un puesto que buscaba solamente a trabajadores con visas H-1B.
La disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) protege a ciudadanos estadounidenses, nacionales no ciudadanos de los EE. UU., refugiados, asilados y residentes permanentes legales recientes de la discriminación en el empleo por motivos de su estatus migratorio o de ciudadanía. Por lo general, la INA prohíbe que los empleadores y reclutadores restrinjan puestos de trabajo con base en la ciudadanía o el estatus migratorio a menos que así lo requiera una ley, un reglamento, una orden ejecutiva o un contrato gubernamental. Conforme la INA, los empleadores y otras entes que reclutan o recomiendan por comisión a trabajadores solo pueden restringir puestos con base en la ciudadanía o el estatus migratorio si así lo requiera una ley, un reglamento, una orden ejecutiva o un contrato gubernamental. Los empleadores y sus reclutadores están vulnerando la INA si implementan las preferencias discriminatorias ilegales de un cliente.
Conforme los términos del acuerdo conciliatorio, Technology Hub pagará una sanción civil que asciende a $12,000 a los Estados Unidos; revisará sus políticas y procedimientos; capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA y se someterá a la supervisión durante un período de tres años con el fin de garantizar su cumplimiento.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. El sitio web de la IER tiene información sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en la contratación y el reclutamiento.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1‑800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1‑800‑237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Visualice este comunicado de prensa en inglés.
Ethete Man Sentenced for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that ROBERT EARL FRIDAY, 28, of Ethete, Wyoming, was sentenced for abusive sexual contact on June 28, 2022 by Chief United States District Court Judge Scott W. Skavdahl. Friday was sentenced to 19 months’ imprisonment, to be followed by five years supervised release and was ordered to pay a fine of $250 and a $100 special assessment.
The case arose on April 10, 2021 on the Wind River Indian Reservation. On that day, law enforcement received a call for service for a drunk and disorderly male at a residence. A Bureau of Indian Affairs officer responded to the scene and identified Robert Friday as the subject of the call. While effectuating the arrest, Friday grabbed the genitalia of the female officer and exposed himself to her.
This crime was investigated by the Bureau of Indian Affairs. Assistant United States Attorney Michael J. Elmore prosecuted the case.
Case No. 21-00108-SWS
Doniphan Woman Sentenced for Possession of MethamphetamineRead the Press Release
Acting United States Attorney Steven Russell announced that Tess Kleinknecht, 31, of Doniphan, Nebraska, was sentenced today to 77 months in prison for possession of methamphetamine with intent to distribute by United States District Judge John M. Gerrard. Following her release from prison, Kleinknecht will serve four years on supervised release. There is no parole in the federal system.
On July 30, 2020, law enforcement officers went to a Grand Island residence to arrest a person federally indicted on methamphetamine conspiracy charges. While there, investigators found Kleinknecht inside the residence, and obtained a search warrant for the residence. Investigators found three bags of methamphetamine along with cutting agent and distribution paraphernalia in Kleinknecht’s belongings. A lab analyst found there to be more than 5 grams of actual or pure methamphetamine.
This case was investigated by the Nebraska State Patrol and the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Department of Justice Settles Lawsuit Against Spine Device Distributor and its Owners Alleging Illegal Kickbacks to PhysiciansRead the Press Release
Reliance Medical Systems LLC, a distributor of spinal implant devices headquartered in Bountiful, Utah, its owners, Bret Berry and Adam Pike, and two of their physician-owned distributorships have agreed to pay $1 million to resolve a lawsuit against them alleging that they violated the False Claims Act by paying physicians to use Reliance medical devices in spinal surgeries on their own patients.
The Justice Department’s lawsuit alleged that the defendants operated physician-owned distributorships (PODs) that, in reality, were vehicles for the payment of kickbacks to induce physicians to use Reliance’s medical devices in their surgeries. The Anti-Kickback Statute prohibits offering or paying anything of value to encourage the referral of items or services covered by federal health care programs.
The Justice Department contends that the defendants’ PODs paid physicians based on their referrals, made false statements to health care providers, and terminated physicians who did not refer enough patients. The complaint alleged that Berry and Pike were recorded attempting to induce a spine surgeon to join Kronos Spinal Technologies, one of Reliance’s PODs, by offering to pay him a share of the profits he generated for Kronos after he proved his “loyalty” to Kronos.
“As today’s settlement demonstrates, we will look to the substance, not just the form, of an arrangement to determine whether the payment of remuneration constitutes an illegal kickback,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to redressing the corrupting influence of kickbacks on federal health care programs, regardless of how companies seek to characterize such payments.”
“When health care companies try to boost their profits through kickbacks arrangements, they compromise the integrity of medical decision-making while increasing health care costs for everyone,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, our agency is committed to thoroughly investigating such schemes.”
The United States filed this lawsuit in 2014, and this settlement was reached after the first day of trial. The case is captioned United States of America v. Reliance Medical Systems, LLC, et al., No. 14-6979 (C.D. Cal.).
This settlement is the most recent in a series of settlements with persons affiliated with Reliance Medical Systems. The Civil Division previously recovered over $9.25 million from owners of Reliance PODs.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) Attorneys Robert Chandler and David Finkelstein, with assistance from HHS-OIG.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Convicted Felon Sentenced to 25 Years in Prison for Armed Carjacking and Firearm PossessionRead the Press Release
GAINESVILLE, FLORIDA – Jonquayvias Davon Givens-Moore, 21, of Miami, Florida, has been sentenced to 25 years in federal prison after he pled guilty to carjacking, brandishing a firearm in furtherance of a crime of violence, and possessing a firearm as a convicted felon following his guilty plea on March 8, 2022. The prison term will be followed by 5 years of supervised release. Jason R. Coody, United States Attorney for the Northern District of Florida, announced the sentence.
“The horrific beating and armed carjacking perpetrated by this recently released felon is beyond the pale and he is unquestionably deserving of the imposed sentence,” said U.S. Attorney Coody. “Due to the valiant efforts of the Alachua County Sheriff’s Office and the Federal Bureau of Investigation, this violent felon has been held accountable for his continued criminal conduct, and our community is safer as a result.”
Court documents reflect that on August 30, 2021, Givens-Moore requested a ride using the Uber rideshare app. The Uber driver responded, picked him up, then began proceeding towards his pre-set destination. Along the way, Givens-Moore feigned confusion about their path of travel and directed the Uber driver to pull into an apartment complex. When the driver did so, Givens-Moore produced a Glock .40 caliber pistol, pointed it in the driver’s face, and climbed into the front passenger seat. From that position, Givens-Moore demanded the vehicle and threatened to kill the driver if she did not give it to him. When the driver resisted and pleaded with Givens-Moore to not steal her vehicle, he attempted to forcibly eject her from the vehicle and ultimately struck her in the head with his firearm repeatedly. These blunt force strikes to the driver’s head caused significant injury and almost caused her to lose consciousness. Givens-Moore was eventually able to remove the driver from the vehicle and he fled from the apartment complex in the driver’s vehicle, striking other vehicles in the process.
Civilian witnesses in the complex observed the struggle and called 911 to report the incident and provided aid to the driver. A responding deputy from the Alachua County Sheriff’s Office (ACSO) quickly spotted the vehicle being driven from the scene by Givens-Moore. As he did so, Givens-Moore accelerated and eventually entered onto I-75 southbound, with multiple deputies giving chase. During the high-speed chase that ensued, Givens-Moore travelled at speeds in excess of 110 mph and drove in an incredibly reckless and dangerous manner as he attempted to elude law enforcement. Givens-Moore attempted to exit I-75 at the Micanopy exit, but lost control on the shoulder of the exit ramp. ACSO deputies arrived shortly after his vehicle became stuck and removed him from the vehicle. A subsequent search of the vehicle led to recovery of the loaded Glock .40 caliber pistol with an extended magazine.
“This case highlights the value of law enforcement and the community working together to hold violent criminals accountable as violent crime will not be tolerated in our neighborhoods,” said Alachua County Sheriff Clovis Watson, Jr. “We will continue to work with all our law enforcement and judicial partners to ensure Alachua County remains a safe community.”
“This case is a direct result of the commitment by the FBI and the Alachua County Sheriff's Office to protect and keep our streets safe by identifying, investigating and arresting violent criminals," said Sherri E. Onks, Special Agent in Charge of the FBI Jacksonville Division.
The Federal Bureau of Investigation adopted the case for federal prosecution and conducted additional investigation. Givens-Moore had multiple prior felony convictions, including two-armed robbery convictions and an attempted robbery conviction from 2017. Givens-Moore had been released from the Florida Department of Corrections just three months prior to this carjacking and he was still on supervision resulting from those convictions at the time of this offense. Givens-Moore also had additional prior felony convictions, including grand thefts of automobiles and burglary.
This sentencing resulted from the collaborative work of the Alachua County Sheriff’s Office and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Chris Elsey.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Columbus woman sentenced to eight years in prison for conspiring to kidnap Hilliard coupleRead the Press Release
COLUMBUS, Ohio – Denia I. Avila, 39, of Columbus was sentenced to 96 months in prison for leading a failed conspiracy that attempted twice to kidnap her ex-boyfriend and his new girlfriend.
Court documents say Avila recruited seven co-conspirators to plan and carry out her plan to kidnap the couple near their Hilliard residence. Two conspirators dressed in black facemasks approached the victims as they entered their vehicle about 5:30 a.m. on November 25, 2019, while two others were nearby to assist if the victims tried to run back to the residence. One of the conspirators used a stun-gun against the male victim’s neck. The woman victim screamed. The victims fought off the two would-be kidnappers and fled.
During the second kidnapping attempt a week later, Avila blocked in the victims’ vehicle in the early morning hours to try and keep them from leaving the residence. Two co-conspirators dressed as law-enforcement officers approached the victims and presented a fake arrest warrant, demanding that they exit their vehicle. The victim drove over a curb and escaped.
Detectives discovered two videos in which Avila and one of the conspirators discuss plans for kidnapping and injuring the victims. A Taser and leg shackles are shown in the videos. In the videos, Avila states she knows the victims would be too fearful to go to the authorities because she helped smuggle the male victim back into the United States after he was deported, and therefore she knew he was here illegally. After a federal grand jury indicted Avila, she conspired with another person to tamper with a witness by having the victim she had paid to have smuggled into the country deported.
Avila pleaded guilty on October 29, 2021 to conspiracy to commit kidnapping. Her sentence includes three years under court supervision after she’s released from prison, and payment of $1,396 in restitution. Others charged with participating in the conspiracy have also pleaded guilty and been sentenced.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; James C. Harris, Special Agent in Charge, Homeland Security Investigations (HSI), Jennifer Huerta, Special Agent in Charge, ICE Office of Professional Responsibility, and Hilliard Division of Police Chief Mike Woods announced the sentence imposed today by U.S. District Chief Judge Algenon L. Marbley. The Department of Homeland Security Office of Inspector General assisted in the case.
Assistant United States Attorney Jessica W. Knight and Special Assistant United States Attorney Christopher N. St. Pierre are representing the United States in this case.
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Cleveland Man Sentenced to More than 27 Years in Prison for Selling Fentanyl that Led to Overdose DeathRead the Press Release
CLEVELAND – Devonte L. Fellows, 26, of Cleveland, Ohio, was sentenced on Thursday, June 30, 2022, to more than 27 years in prison by U.S. District Judge Donald C. Nugent after his conviction at trial of distributing fentanyl that led to the death of a Cuyahoga Falls individual.
According to court documents and evidence presented at trial, in April 2019, detectives with the Cuyahoga Falls Police Department began an investigation into the overdose death of an individual found unresponsive in a Cuyahoga Falls residence. During the investigation, authorities recovered from the residence a substance that contained fentanyl.
The Summit County Medical Examiner’s Office performed a full autopsy of the victim and determined that the cause of death was acute fentanyl toxicity. Court records state that investigators later determined that Defendant Devonte L. Fellows knowingly and intentionally distributed the fentanyl to the victim, who later ingested it, overdosed and died.
A federal jury convicted Fellows in March 2022 of one count of distribution of fentanyl, which contained a sentencing enhancement due to the death of an individual resulting from the distribution of the controlled substance.
This investigation was conducted by the Cuyahoga Falls Police Department and the FBI. This case was prosecuted by Assistant U.S. Attorneys Peter E. Daly and Christopher J. Joyce.
Central Illinois Mother and Son Sentenced to Prison for Marijuana and Money Laundering ConspiracyRead the Press Release
URBANA, Ill. –Jennifer Fisher, 50, of Springfield, Illinois, was sentenced on June 27, 2022, to 14 months of imprisonment and a $10,000 fine for conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering.
At the sentencing hearing, the government presented evidence establishing that Fisher aided her son, Courtney Johnson, 32, of Decatur, Illinois, in the conspiracy, which involved hundreds of pounds of marijuana. Fisher assisted her son in laundering drug proceeds to expand the drug operation and fund his travel. The laundering included expanding operations within the Decatur area through the maintenance of several storage areas for the marijuana. Through subsequent investigation, law enforcement agents also discovered that Johnson had multiple pounds of cocaine that he intended to sell as well.
A federal grand jury returned a second superseding indictment against Fisher and Johnson in March 2020. Fisher pleaded guilty in February 2022 to conspiracy to commit money laundering and conspiracy to possess with the intent to distribute marijuana. In May 2022, Johnson pleaded guilty to conspiracy to commit money laundering, conspiracy to possess with intent to distribute marijuana, possession with intent to distribute at least 500 grams of a mixture and substance containing cocaine, and maintaining a drug-involved premises (two counts).
Both Fisher and Johnson faced maximum possible penalties of 20 years of imprisonment and up to a $500,000 fine for the money laundering conspiracy. Fisher faced additional penalties of up to 20 years of imprisonment and up to a $1,000,000 fine for her involvement in the marijuana conspiracy. For his participation in the marijuana conspiracy, Johnson faced a maximum possible penalty of 40 years of imprisonment and a maximum possible fine of $5,000,000. Johnson faced the same penalties for the cocaine charge as well. And he faced maximum possible penalties of 20 years of imprisonment and a $500,000 fine for each count of maintaining a drug-involved premises.
Various items derived from proceeds of the offense or items used to commit or facilitate the offense are subject to criminal forfeiture. Those included four motor vehicles, $27,598 of United States currency, gold and diamond jewelry, and several precious wristwatches.
Johnson was previously sentenced in May 2022 to an aggregate seven-and-a-half years in the Bureau of Prisons for his offenses.
“The outcome of this case is another example of cooperation between federal and local law enforcement agencies not only to disrupt an illegal drug conspiracy but also to seize and forfeit the ill-gotten gains produced from the drug conspiracy,” said U.S. Attorney Gregory K. Harris. “Federal prosecutors will continue to seek the forfeiture of assets obtained or used in criminal activity.”
“This is an important victory for the American public. Not only are two criminals going to prison for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture,” said Justin Campbell, Special Agent in Charge, Chicago Field Office, IRS Criminal Investigation. “The role of IRS CI in narcotics investigations is to follow the money so we can financially disrupt and dismantle major drug trafficking organizations. IRS-CI is proud to provide its financial expertise as we work alongside our law enforcement partners to bring criminals to justice.”
The Decatur Police Department, the Federal Bureau of Investigation, and the U.S. Internal Revenue Service – Criminal Investigation investigated the case. Assistant U.S. Attorneys William J. Lynch and C. Ryan Finlen represented the government in the prosecution.
This investigation grew into a multi-jurisdictional effort involving the Illinois State Police, the Nevada Highway Patrol, the Drug Enforcement Administration and the U.S. Department of Homeland Security. This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Central Illinois Man Sentenced to 144 Months in Prison for Multiple Robbery Charges and Attempted EscapeRead the Press Release
PEORIA, Ill. – A Mechanicsburg, Illinois, man, John W. Beck, 55, of the 500 block of East Main Street, was sentenced on June 29, 2022, to 120 months in prison on each of four counts of interference with commerce by robbery, one count of bank robbery, and one count of armed bank robbery, all to run concurrently. He was also ordered to serve an additional 24 months in prison in relation to his conviction for attempted escape from the Livingston County Jail. That sentence is to be served consecutively to the 120 months in prison imposed for the robbery offenses.
At the sentencing hearing, the government presented evidence that Beck admitted to robbing the following businesses and banks:
Dollar General in Buffalo, Illinois, on April 8, 2021
Bank of Pontiac, doing business as Odell Bank, in Odell, Illinois, on April 9, 2021
Fast Stop Store in Odell, Illinois, on April 17, 2021
Village Pantry in Paxton, Illinois, on April 18, 2021
Subway in Danville, Illinois, on April 19, 2021
Elmwood Bank, a division of Morton Community Bank, in Elmwood, Illinois, on April 20, 2021.
During this robbery spree, Beck stole cars from two different individuals, one on April 7, 2021, in Mechanicsburg and another on April 19, 2021, in Paris, Illinois, as well as a car from Green Hyundai in Springfield, Illinois, on April 16, 2021, and one from Central Illinois Motors in Springfield on April 17, 2021. He also stole license plates from two other individuals, which he then used on the stolen cars.
Beck was arrested on the current charges in April 2021, indicted in May 2021, and has remained in the custody of the U.S. Marshals since that time. While in custody, in September 2021, Beck attempted to escape from the Livingston County Jail, where he was being held.
Beck pleaded guilty to all charges in January 2022. There was no plea agreement.
At the time of his arrest, Beck was on supervised release for a bank robbery he committed in 2007, for which he was sentenced to the Bureau of Prisons for 151 months. He was also on state parole for an armed robbery conviction in Champaign County, Illinois. He had been released from federal prison in January 2019 and released from the Illinois Department of Corrections sentence in 2020.
Also at the hearing, U.S. District Judge Joe Billy McDade found that, because of previous violent crime convictions, as well as the current bank robbery convictions, Beck was a career offender.
U.S. Attorney Gregory Harris commended the exceptional coordination and cooperation of the law enforcement agencies affected by Beck’s crime spree. “The dedication and cooperation of the law enforcement agencies – including the State’s Attorneys’ Offices for Livingston, Peoria, Edgar, Vermilion, Sangamon, and Ford Counties – led to the arrest of John Beck before he could do any more harm to the people and businesses of central Illinois,” Harris said.
“Thanks to the exemplary work of our law enforcement partners, FBI Springfield was able to piece together Beck’s 14-day crime spree allowing for significant federal charges that help ensure he is no longer a menace to Illinois communities,” said Springfield Field Office Special Agent in Charge David Nanz. “This sentence holds Beck accountable for his actions and demonstrates the effectiveness of working collaboratively with our partners to combat violent crime.”
The investigation was conducted by the Sheriff’s Departments in DeWitt, Edgar, Livingston, Peoria, and Sangamon, Illinois, counties; the Danville, Elmwood, Paxton, and Springfield, Illinois, Police Departments; the Federal Bureau of Investigation, Springfield Office; and the U.S. Marshals Service. Criminal Chief Darilynn J. Knauss represented the government in the prosecution.
California Man Pleads Guilty for $3.6 Million Paycheck Protection Program and Economic Injury Disaster Loan FraudRead the Press Release
SAN FRANCISO –Lebnitz Tran pleaded guilty to criminal charges related to a scheme to submit fraudulent loan applications seeking millions of dollars in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds. The plea was accepted by the Hon. William H. Orrick, United States District Judge.
According to court documents, Lebnitz Tran, 41, of San Jose, submitted at least 27 PPP loan applications and at least seven EIDL loan applications on behalf of multiple persons and business entities, using false and fictitious information and documents, including falsified employee information, fictitious or grossly exaggerated payroll figures, and fake tax documents. Tran sought approximately $8.5 million in PPP and EIDL funds, obtained over $3.6 million in illicit loan proceeds, and ultimately netted approximately $1.7 million from the scheme. Tran and others used these illicit loan proceeds to make purchases at restaurants and retail stores, make deposits into personal investment accounts, buy cryptocurrency, and, in one instance, to purchase a $100,000 Tesla from a luxury car dealership.
On July 1, 2021, a federal grand jury indicted Tran, charging him with six counts of wire fraud, in violation of 18 U.S.C. § 1343, and one count of bank fraud, in violation of 18 U.S.C. § 1344(2). Pursuant to the plea, Tran pleaded guilty to two of the wire fraud counts. If Tran complies with the plea agreement, the remaining counts will be dismissed at sentencing.
Judge Orrick scheduled Tran’s sentencing for November 3, 2022; he faces a maximum penalty of 20 years in prison as to each count of wire fraud. At sentencing, Tran also may be ordered to pay restitution and fines, as well as serve an additional term of supervised release. However, any sentence will be imposed only after consideration of the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Stephanie M. Hinds of the Northern District of California and Federal Bureau of Investigation, Special Agent in Charge of the San Francisco Field Office Sean Ragan made the announcement.
The FBI and the Small Business Administration’s Office of Inspector General are investigating the case.
Assistant U.S. Attorney Sarah Griswold of the Northern District of California and Trial Attorney Christopher Jackson of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Calabasas Man Agrees to Plead Guilty to Charges for Scamming Cannabis Vaping Business Investors Out of at Least $28 MillionRead the Press Release
LOS ANGELES – A former UCLA decathlete who also competed with the Philippines national team has agreed to plead guilty to two federal criminal charges for fraudulently raising more than $37 million from investors who were told their funds would be used to finance companies marketing cannabis vape pens, the Justice Department announced today.
David Joseph Bunevacz, 53, of Calabasas, agreed to plead guilty to one count of securities fraud and one count of wire fraud, according to a plea agreement filed today in United States District Court. Both crimes carry a statutory maximum penalty of 20 years in federal prison.
Bunevacz, who has been in federal custody since his arrest in this case on April 5, is expected to plead guilty to the charges in the coming weeks.
According to his plea agreement, going back to 2010, Bunevacz created several business entities – including Holy Smokes Holdings LLC and Caesarbrutus LLC – that he claimed were involved in the cannabis industry and the sale of vape pens containing cannabis products such as CBD oil and THC.
Bunevacz falsely told at least one investor he had a longstanding relationship with a Chinese manufacturer of disposable vape pens and he obtained “raw pesticide-free oil” that was sent to a “lab that infuses the flavors into the oil with our proprietary custom process that renders the vape flavoring smooth and discrete,” according to court documents. Bunevacz also provided investors with forged documents – such as bank statements, invoices and purchase orders – to support his claims of the businesses’ success and the need for investor funds.
Instead of using the funds to finance business operations, Bunevacz misappropriated the vast majority of the funds to pay for his own opulent lifestyle, including a luxurious house in Calabasas, Las Vegas trips, jewelry, designer handbags, a lavish birthday party for his daughter, and horses.
To create the false appearance that his companies were engaged in legitimate business activities, Bunevacz registered various shell companies, including several with names similar or identical to those of legitimate cannabis businesses. To conceal his control of these shell companies and the bank accounts associated with them, Bunevacz listed other individuals, including his stepdaughter, as the corporate officers of the shell companies.
Bunevacz’s blog touts his success as a former decathlete who competed for the Philippines, and his wife and daughter appeared in a reality television show. Despite Bunevacz’s promotion of his background, Bunevacz took efforts to conceal negative information from investors, such as his 2017 felony conviction for the unlawful sale of securities, according to an affidavit submitted in support of the criminal complaint. After one investor uncovered a lawsuit against Bunevacz, Bunevacz emailed a counterfeit version of the settlement agreement to falsely make it appear that he had been paid $325,000 as part of a settlement. In reality, it was Bunevacz who had agreed to pay $325,000 to settle the claim.
Operating through his cannabis companies, Bunevacz raised between approximately $37,166,737 and $45,068,227 from more than 10 victim-investors. He admitted to causing losses of at least $28,409,112.
The FBI, the Los Angeles County Sheriff’s Department and IRS Criminal Investigation are investigating this matter. The U.S. Securities and Exchange Commission provided substantial assistance.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section is prosecuting this case.