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Wednesday 22 June 2022
Former Valdosta State Prison Supervisory Correctional Officer Pleads Guilty to Felony for Attempted Cover-Up of Assault on InmateRead the Press Release
VALDOSTA, Ga. – A former supervisory correctional officer at Valdosta State Prison pleaded guilty today in federal court for attempting to conceal an assault on an inmate.
Geary Staten, 31, pleaded guilty to misprision of a felony for attempting to conceal an assault on an inmate incarcerated at the facility before U.S. District Judge Hugh Lawson. Staten faces a statutory maximum three years in prison and a $250,000 fine. Sentencing is scheduled for Sept. 21. There is no parole in the federal system.
“It is important that corrections officers and their supervisors are held accountable for using unlawful, unnecessary, and unwarranted force against inmates, including those who fail to report such civil rights violations and take steps to cover them up,” said Assistant Attorney General Kristen Clarke. “The Civil Rights Division will continue to hold correctional officials accountable when they violate the civil rights of incarcerated individuals.”
“Many corrections officers do honorable work, but officers and their supervisors who turn a blind eye or even cover-up crimes against the people under their watch are committing a serious offense that our office will simply not ignore,” said U.S. Attorney Peter D. Leary. “Prisoners should serve their sentences without being assaulted or extorted; our office will work to uphold the civil rights of all people, including the incarcerated.”
“By violating his sworn oath as a corrections officer, Staten betrayed every honest, hardworking officer, and stooped to behaving like the criminals he was sworn to protect,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “The abuse of inmates by prison staff will not be tolerated by the FBI and will always be pursued for prosecution.”
According to court documents and statements made in connection with the guilty plea, while Lieutenant Staten was on duty as a supervisory correctional officer at Valdosta State Prison (VSP), several VSP correctional officers unlawfully used force on inmate F.G. in violation of the inmate’s constitutional rights. Staten was aware of the assault but instead of reporting or otherwise notifying law enforcement authorities of these felony violations, Lt. Staten took steps to conceal the offense by (1) directing the involved officers (Officer Brian Ford, Officer Jamal Scott, and Sergeant Patrick Sharpe, all of whom have pleaded guilty to federal offenses in connection with the incident) not to write any report to VSP officials or any other Georgia Department of Corrections officials regarding the unlawful use of force; and (2) failing to write such a report himself, despite knowing such a report was required.
The case was investigated by FBI.
Assistant U.S. Attorney Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia and Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Department of Justice’s Civil Rights Division are prosecuting the case.
Former Tallahassee Mayor and Gubernatorial Candidate and Associate Charged with Conspiracy, Wire Fraud, and Making False StatementsRead the Press Release
TALLAHASSEE, FLORIDA – A federal grand jury has returned a twenty-one count indictment against Andrew Demetric Gillum, 42, and Sharon Janet Lettman-Hicks, 53, both of Tallahassee, Florida. The indictment was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
The Indictment alleges that between 2016 and 2019, defendants Gillum and Lettman-Hicks conspired to commit wire fraud, by unlawfully soliciting and obtaining funds from various entities and individuals through false and fraudulent promises and representations that the funds would be used for a legitimate purpose. The Indictment further alleges the defendants used third parties to divert a portion of those funds to a company owned by Lettman-Hicks, who then fraudulently provided the funds, disguised as payroll payments, to Gillum for his personal use. Both defendants are charged with 19 counts of wire fraud. Gillum is also charged with making false statements to agents of the Federal Bureau of Investigation.
The initial appearance is scheduled for Wednesday, June 22, 2022, at 2:00 pm, at the United States Courthouse in Tallahassee in the Magistrate Judge’s Courtroom on the main floor.
The maximum terms of imprisonment for the offenses are as follows:
- 5 years: Making False Statements
- 20 years: Conspiracy to Commit Wire Fraud
- 20 years: Wire Fraud
The investigation was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorneys Stephen M. Kunz and Andrew J. Grogan.
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.
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.
Former Prince George’s County Police Department Lieutenant Pleads Guilty to Federal Tax Evasion Charge for Failing to Report More Than $1.3 Million in Income from His Security BusinessRead the Press Release
Greenbelt, Maryland – Edward Scott Finn, age 48, of Dunkirk, Maryland, pleaded guilty today to a federal tax evasion charge. Finn is a former Lieutenant with the Prince George’s County Police Department and owned and operated Edward Finn Inc. (EFI), a private company.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement and other court documents, from approximately December 26, 1995 to April 26, 2021, Finn was a member of the Prince George’s County Police Department (PGPD). Members of the PGPD were allowed to work part-time outside employment in addition to their full-time duties, known as Secondary Law Enforcement Employment (SLEE). According to the plea agreement and court documents, from 2014 to 2021, Finn used EFI and employed off-duty law enforcement officers to provide security services to apartment complexes and other businesses, primarily in Prince George’s and Montgomery Counties, to manage and operate his SLEE business.
Finn admitted that he underreported a total of more than $1.3 million of EFI income on his 2014 through 2019 individual income tax returns. During that time frame, Finn deposited checks payable to EFI into personal bank accounts or non-EFI bank accounts over which Finn had signature authority. Finn also created false business expenses to lower his tax due by writing checks to relatives and friends for purported services performed; and used business funds to purchase a boat, a car, and other items for his personal use. This underreported income resulted in a total tax loss to the government of $367,765.
Finn admitted that on April 22, 2021, as federal agents announced their presence at his front door to execute a search warrant on his residence, Finn initiated the erasure and resetting of his cellphone. Finn then opened the front door to his residence and law enforcement recovered the phone in the master bedroom.
Finn faces a maximum sentence of five years in federal prison for tax evasion. As detailed in his plea agreement, Finn will also be required to pay restitution in the full amount of the loss, $367,765. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paul W. Grimm has scheduled sentencing for Finn on October 7, 2022 at 2:00 p.m.
United States Attorney Erek L. Barron commended the IRS-CI and the FBI and for their work in the investigation and thanked the Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting this case.
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Former Postal Employee Charged with Embezzling the MailRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that PATRICK EZELL WILSON, age 51, of Bogalusa, Louisiana was charged on June 21, 2022 with embezzling the mail in a bill of information filed today in the Eastern District of Louisiana.
According to documents filed in federal court, PATRICK EZELL was employed by the United States Postal Service as a letter carrier in Bogalusa when he was apprehended stealing mail he was entrusted to handle for the Postal Service.
The maximum penalty for the offense is five years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim followed by up to three years of supervised release, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Postal Service, Office of the Inspector General in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Former Head of Corporate Communications of $21 Billion Biopharmaceutical Company Admits Insider TradingRead the Press Release
NEWARK, N.J. – The former head of corporate communications for a biopharmaceutical company today admitted her role in an insider trading scheme, U.S. Attorney Philip R. Sellinger announced.
Lauren S. Wood, 33, of Washington, D.C., pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging her with securities fraud. Stemming from the same alleged conduct, Usama Malik, also of Washington, D.C., was previously charged in a three-count indictment with insider trading, securities fraud, and securities fraud conspiracy.
According to documents filed in this case and statements made in court:
From 2018 through October 2020, Malik was the chief financial officer (CFO) of a New Jersey-based biopharmaceutical company listed on the NASDAQ Stock Exchange. On April 6, 2020, the company publicly announced for the first time that its breast cancer drug – an antibody-based drug designed to treat certain breast cancer patients who had very limited treatment options beyond chemotherapy – had proven effective in pre-market clinical trials. In October 2020, another biopharmaceutical company acquired the company for which Malik worked for approximately $21 billion.
Malik was among the first, and one of the few, employees who received the material non-public information about the breast cancer drug before the public announcement. Within minutes of obtaining that information, Malik passed it along to Wood, who lived with Malik at the time and was formerly employed by the same company. Before April 6, 2020, and within hours of receiving the insider information from Malik, Wood placed an order for approximately 7,000 shares of the company’s stock, despite the fact that during the same time period the company’s stock was downgraded by financial experts. After the company announced that its cancer drug had proven effective in pre-market clinical trials, its stock price increased. After selling her shares, Wood more than doubled her investment, realizing gross profits of $213,618.
The securities fraud charge to which Wood pleaded guilty carries a potential penalty of 20 years in prison and a $5 million fine. Sentencing is scheduled for Nov. 21, 2022.
The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint on Dec. 1, 2021 based on the same conduct.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge Jesse Levine in Newark, with the investigation leading to the charges. He also thanked the SEC Enforcement Division, under the leadership of Director Gurbir S. Grewal, and the FBI, in the District of Columbia and the Eastern District of Virginia, for their assistance.
The government is represented by Assistant U.S. Attorney Joshua L. Haber, Chief of the Economic Crimes Unit.
The charges and allegations against Malik are merely accusations, and he is presumed innocent unless and until proven guilty.
Former Georgia Supervisory Correctional Officer Pleads Guilty to Felony for His Role in Attempting to Cover up Assault on an InmateRead the Press Release
Geary Staten, 31, a former supervisory correctional officer at Valdosta State Prison (VSP), pleaded guilty today in federal court to one count of misprision of a felony for his role in attempting to cover up an assault on an inmate incarcerated at the facility.
According to court documents and statements made in connection with the guilty plea, while Lieutenant Staten was on duty as a supervisory correctional officer at VSP, several VSP correctional officers unlawfully used force on inmate F.G. in violation of the inmate’s constitutional rights. Staten was aware of the assault but instead of reporting or otherwise notifying law enforcement authorities of these felony violations, Staten took steps to conceal the offense by (1) directing the involved officers (Officer Brian Ford, Officer Jamal Scott, and Sergeant Patrick Sharpe, all of whom have pleaded guilty to federal offenses in connection with the incident) not to write any report to VSP officials or any other Georgia Department of Corrections officials regarding the unlawful use of force; and (2) failing to write such a report himself, despite knowing such a report was required.
“It is important that corrections officers and their supervisors are held accountable for using unlawful, unnecessary, and unwarranted force against inmates, including those who fail to report such civil rights violations and take steps to cover them up,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to hold correctional officials accountable when they violate the civil rights of incarcerated individuals.”
“Many corrections officers do honorable work, but officers and their supervisors who turn a blind eye or even cover-up crimes against the people under their watch are committing a serious offense that our office will simply not ignore,” said U.S. Attorney Peter D. Leary of the Middle District of Georgia. “Prisoners should serve their sentences without being assaulted or extorted; our office will work to uphold the civil rights of all people, including the incarcerated.”
“By violating his sworn oath as a corrections officer, Staten betrayed every honest, hardworking officer, and stooped to behaving like the criminals he was sworn to protect,” said Special Agent in Charge Keri Farley of FBI Atlanta. “The abuse of inmates by prison staff will not be tolerated by the FBI and will always be pursued for prosecution.”
Staten faces a maximum statutory penalty of up to three years in prison and a fine of up to $250,000. A sentencing hearing has been scheduled for Sept. 21.
Assistant Attorney General Clarke, U.S. Attorney Leary and FBI Atlanta Special Agent in Charge Farley made the announcement. The case was investigated by the FBI and a local task-force-officer partner, and was prosecuted by Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Justice Department’s Civil Rights Division, with assistance from Assistant U.S. Attorney Michael Solis for the Middle District of Georgia.
Former Executive Director of Grayslake Chamber of Commerce Charged with Misappropriating $300,000Read the Press Release
CHICAGO — A former Executive Director of the Grayslake Area Chamber of Commerce and Industry in Grayslake, Ill., was indicted today on federal fraud charges for allegedly misappropriating at least $300,000 from the organization.
KAREN CHRISTIAN-SMITH served as the Chamber’s Executive Director from 2006 to 2019. From 2013 to 2019, Christian-Smith issued checks from the Chamber’s bank accounts to herself and deposited them into her personal accounts, according to the indictment returned in U.S. District in Chicago. She then spent the money for her own personal use and benefit, the indictment states.
Christian-Smith attempted to cover up the fraud by submitting false and misleading financial reports to the Chamber’s Board of Directors and false payroll reports to the Chamber’s accounting firm, the charges allege. She also filed with the IRS false and misleading tax returns that she knew substantially underreported the amount of money she had fraudulently paid herself from the Chamber’s bank accounts, the indictment states. As a result of the scheme, Christian-Smith fraudulently misappropriated at least $300,000 in funds belonging to the Chamber, the indictment alleges.
The indictment charges Christian-Smith, 56, of Round Lake Beach, Ill., with six counts of wire fraud. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and Phillip Perlini, Chief of the Grayslake Police Department. The government is represented by Assistant U.S. Attorney Morris Pasqual.
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. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Florida man admits to sex offender chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jason Lewis Bell, of Keystone Heights, Florida, has admitted to a failure to register charge, United States Attorney William Ihlenfeld announced.
Bell, 35, pleaded guilty today to one count of “Failure to Update Sex Offender Registration.” Bell, a person required to register as a sex offender, admitted to not updating his registration when he lived in Marion County from November 2020 to February 2021.
Bell faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The U.S. Marshals Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Fentanyl Dealer Sentenced to 20 Years in Prison for Overdose DeathRead the Press Release
Miami, Florida – A South Florida fentanyl dealer whose product killed a man was sentenced to 20 years in federal prison today.
On May 19, 2021, 21-year-old Peterson Nozinord drove another man, age 27, to a motel in Lantana, Florida. Nozinord checked the man into a room by using Nozinord’s identification. Once inside, Nozinord provided the man with four fentanyl capsules. After a short time, Nozinord left the motel.
The next day, at approximately 7:30 a.m., the Lantana Police Department responded to the motel on a request for a welfare check on the victim. Upon entering the room, the responding officer discovered the man’s lifeless body slumped on the floor with a needle in his hand. The officer also observed on the dresser seven pills, four drug capsules, and a small white plastic baggie. The capsules were later examined by the Palm Beach County Sheriff’s Office and DEA Forensic Science Labs and were identified as a mixture of fentanyl, tramadol, xylazine, and cocaine. A review of motel security cameras showed that the victim was dropped off at the motel and checked in by an individual operating a black Honda.
After conducting his initial investigation at the scene, a Lantana police sergeant departed the area of the motel to head back to police headquarters. Shortly after leaving the parking lot of the motel, the sergeant observed the same vehicle that Nozinord used to transport the victim to the motel the previous evening. The sergeant observed the vehicle run through a stop sign almost causing an accident with another vehicle. The sergeant then conducted a motor vehicle stop on the black Honda.
During the stop, the sergeant observed that the Black Honda contained two occupants. Nozinord was riding as the front seat passenger. After the driver gave the police consent to search the vehicle, the sergeant located a backpack in the glove compartment that contained an assortment of narcotics, including 16 capsules of suspected fentanyl, six baggies of suspected cocaine, and 35 tablets of suspected Xanax. Nozinord’s identification and mail addressed to him were also in the bag, along with $1,515 in cash. The suspected fentanyl was later examined by the Palm Beach County Forensic Science Lab and determined to contain the same mixture of fentanyl, tramadol, xylazine, and cocaine as the capsules found in the victim’s motel room. Nozinord’s DNA was also found on the on a blue baggie and pill bottle which contained narcotics inside the backpack, and a white baggie found next to the fentanyl pills in the decedent’s motel room.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Office, and Chief Sean Scheller, Lantana Police Department, announced the sentence imposed by U.S. District Judge Donald Middlebrooks.
The Drug Enforcement Administration, the Lantana Police Department, and the Palm Beach County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Mark Dispoto and Shannon Shaw prosecuted the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Feds Charge 19 Defendants with Pandemic Fraud of over $24 MillionRead the Press Release
PHILADELPHIA - United States Attorney Jacqueline C. Romero, together with other federal law enforcement officials announced today charges against 19 defendants for defrauding federal programs funded by the CARES Act and designed to provide a financial safety net for Americans during the pandemic. Collectively these defendants sought to defraud the Paycheck Protection Program (PPP), the Economic Injury Disaster Loan (EIDL) program and the Pandemic Unemployment Assistance (PUA) program of over $24 million.
The Coronavirus Aid, Relief, and Economic Security Act, commonly called the CARES Act, was intended to provide emergency financial assistance to the millions of Americans suffering the economic effects of the COVID-19 pandemic.
- The PPP authorized banks to provide forgivable loans to small businesses for the specific purpose of enabling the businesses to meet payroll expenses and retain employees.
- Under the EIDL program, the Small Business Administration (SBA) provided low interest loans for small businesses to obtain financial relief due to any disruption or harm to their business resulting from the COVID-19 pandemic. The loan proceeds were required to be used on normal operating expenses, such as working capital and payroll.
- The PUA program provided emergency unemployment compensation to workers who were unemployed as a result of the pandemic but who were not eligible for regular unemployment compensation.
Each of the 19 defendants is alleged to have defrauded one or more of these programs. As alleged in 4 indictments and 7 informations, each defendant applied or conspired with others to apply for benefits even though they knew they were not eligible for the benefits. They each were responsible for submitting false applications to fraudulently obtain the benefits. They each succeeded in fraudulently obtaining emergency benefits or helping others to obtain emergency benefits. In some cases, the defendants are also alleged to have spent the emergency funds, not to make payroll or for other authorized business purposes, but instead spent the money on personal items.
Frank Hamilton, 52, of Simi Valley California; Michael Jones, 55, of Azusa, California; Kenny Tran, 38, of Diamond Bar, California: Tina Chen, 39 of Diamond Bar, California; Tim Park, 37, of Northridge, California; Peter An, 37, of Chatsworth California; Joe Greco, 42, of Simi Valley, California; Edwin Bonilla, 36, of Los Angeles, California are charged with conspiring to defraud the SBA and numerous financial institutions of over $9.4 million. These defendants submitted over 33 applications for PPP and EIDL loans seeking over $9.4 million in loans, $7 million of which were funded. From January 2018 through August 2021, Barrie Osborne (a co-conspirator previously charged who is now deceased), Frank Hamilton, Michael Jones, Kenny Tran, Tina Chen, Tim Park, Peter An, Joe Greco, and Edwin Bonilla used shelf corporations (which exist on paper but have no functioning business and no employees) to apply for over $9.4 million in SBA loans, including PPP loans and EIDL loans. After the conspirators obtained $7 million in loan payments, they took steps to transfer the funds among themselves in an effort to disguise the transfers as payroll payments. Part of the proceeds were used to trade in the stock market, and in addition, defendant Hamilton paid off his home mortgage; defendant Jones took luxury vacations and purchased a fleet of used vehicles.
Francis J. Battista, 37, of Aston, Pennsylvania, filed 19 fraudulent applications for PPP and EIDL loans in 2020 and 2021, seeking over $10 million in loans. Battista allegedly supported his fraudulent loan applications by submitting fake tax documents, bank records and payroll summaries. He succeeded in obtaining $8.4 million in loan funds, and he caused the funds to be spent on unauthorized purchases and debts and laundered a significant portion of the funds. He allegedly used emergency pandemic funds to purchase a Limited Edition CPO Range Rover Sport 4WD, to make a down payment for a real estate deal, to settle old business debts, and to engage in stock trading. The government has located and seized $6.3 million of those funds through forfeiture proceedings.
Resondoe Bradley, 44, Philadelphia, Pennsylvania, who ran a tax business and also worked as a contractor with the SBA processing EIDL loan applications during the pandemic, filed over 50 fraudulent EIDL loan applications and obtained approximately $3.4 million in funded loans. Two of Bradley’s clients have also been charged. Tamara Wheeler 50, Philadelphia Pennsylvania, filed a false EIDL application and obtained over $180,000 in loan proceeds. Ryan Killebrew, 31 Philadelphia Pennsylvania, filed a false EIDL application and obtained $125,000 in EIDL loan funds.
John Columbo, 53, Philadelphia, Pennsylvania, filed multiple fraudulent applications for EIDL and PPP loans worth over $700,000 and as a result he received over $550,000 in funds to which he was not entitled. Columbo allegedly obtained both EIDL and PPP funds by falsely stating the finances of companies, including the number of employees, the wages paid to employees, and the intended use of the emergency funds. To fraudulently increase the number of employees, he submitted a payroll schedule with false social security numbers for purported employees. To make other applications for emergency benefits, he allegedly used companies that had in fact closed all business and were defunct years before the pandemic, but which he falsely represented to be going concerns. He is also charged with obstruction of justice for filing false tax returns to make his loan applications appear to be truthful.
Lamar Ebron 35, Philadelphia, Pennsylvania, and Lamott Ebron, 32, of Philadelphia, Pennsylvania, are charged with filing fraudulent applications for PUA benefits in their own names, as well as the names of thirteen other persons, and obtained over $400,000 in PUA benefits. These defendants are also charged with filing fraudulent applications with the Philadelphia Housing Development Corporation to obtain benefits under the Renters Assistance Program, another federally funded program under the CARES Act. The Renters Assistance Program was meant to help renters unable to pay their rent due to loss of income caused by the pandemic. In their fraudulent applications, the defendants are alleged to have sought rental assistance in the names of multiple renters on a single property, listed different landlords for the same property, sometimes used their own names as tenant or landlord, or used the names of others.
Vincent Rotondi, 44, Langhorne, Pennsylvania, who was employed as a detective by the City of Philadelphia in the Philadelphia District Attorney’s Office, filed multiple claims for PUA benefits and obtained over $30,000 to which he was not entitled. In addition to filing fraudulent applications, Rotondi is alleged to have filed 40 false weekly certifications in which he reported that he was not working and received no income, despite the fact that he was working full-time during that period for the City of Philadelphia.
Steven Ball-Vaughn, 39, Oreland, Pennsylvania, filed multiple fraudulent applications for PPP and EIDL program loans, and obtained over $70,000 in benefits to which he was not entitled. Ball-Vaughn allegedly submitted fraudulent applications to three banks and, despite the requirement that the funds be used for business expenses, he used program funds for personal and unauthorized expenses, including at restaurants, theme parks, electronic stores and gambling sites.
Michael Daniels, 47, of Philadelphia, Pennsylvania, who was employed at the time of the offense by the City of Philadelphia as a constituent services representative for a member of Philadelphia City Council, was charged with theft of public money for taking over $27,000 worth of PUA benefits. Daniels allegedly certified repeatedly that he was unemployed and not receiving any income, while he was employed and being paid by the City of Philadelphia.
Tai Brown, 19, of Collingdale, Pennsylvania, was charged with theft of public money and the government is seeking forfeiture of $44,238 in PUA funds that are proceeds of the offense.
“Our office has been able to bring charges against these 19 defendants, who deliberately defrauded programs of over $24 million that were intended to help individuals who lost their jobs because of the pandemic and small businesses that were struggling to survive during the global pandemic,” said U.S. Attorney Jacqueline C. Romero. “Thanks to the hard work of our agency partners in the Covid Fraud Working Group of the Eastern District of Pennsylvania, we are protecting the integrity of our taxpayer funded programs from fraudsters, a priority for our office and our law enforcement partners.”
“The Covid pandemic has caused serious hardships for so many families and businesses,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “But then, you’ve got all the criminal opportunists who apparently looked at pandemic relief programs as their golden ticket. Together with our partners, the FBI continue to doggedly pursue anyone defrauding the federal government like this. You’ll be prosecuted to the fullest extent of the law, and that ‘easy money’ won’t seem so easy after all.”
“The charges announced today show IRS-CI’s commitment to defend the integrity of the pandemic relief programs,” said Yury Kruty, Special Agent in Charge of IRS-Criminal Investigation. “IRS-CI will continue to aggressively investigate those who schemed to defraud these programs that were intended to help struggling individuals and businesses.”
“An important part of the mission of the Office of Inspector General is to investigate allegations of fraud related to unemployment insurance programs. We will continue to work with the Pennsylvania Department of Labor and Industry and our law enforcement partners to investigate these types of allegations,” stated Syreeta Scott, Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor, Office of Inspector General.
“Instead of using these government funds to help keep small businesses afloat and provide financial relief to those suffering from the COVID-19 pandemic, these individuals are alleged to have stolen the money for their own personal use and enrichment, taking it out of the hands of those who truly needed it,” said William S. Walker, Special Agent in Charge for Homeland Security Investigations, Philadelphia. “HSI is proud to join our partners in the Covid Fraud Working Group as we continue to focus our efforts on uncovering fraud schemes perpetrated during the pandemic.”
“Attempts to defraud the government, and ultimately our nation’s community members with legitimate businesses within our financial infrastructure, will not go unanswered for,” said U.S. Secret Service Philadelphia Field Office Special Agent in Charge Michael Centrella. “So long as efforts to exploit pandemic relief funds continue, so will Secret Service investigators and our partners ceaseless investigative work to ensure our national financial environment remains safe and secure.”
“This indictment demonstrates the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those who would corruptly manipulate and use IRS resources in order to exploit Federal programs for unlawful personal gain,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.
“Fraudsters that conspired to falsify information in order to access funds vital to the nation’s small businesses for personal gain will be brought to justice,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG will continue to relentlessly root out fraud and protect the integrity of SBA’s programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
These cases were investigated by special agents of seven different federal agencies – FBI, Department of Labor Office of Inspector General, Homeland Security Investigations, IRS-Criminal Investigations, United States Secret Service, Small Business Administration Office of Inspector General, and U.S. Treasury Inspector General for Tax Administration. All of these agencies are members of the Covid Fraud Working Group of the Eastern District of Pennsylvania. The Working Group, begun in March 2020 and led by the U.S. Attorney’s Office, combines resources and expertise of nineteen federal agencies and the Pennsylvania Office of Attorney General to fight pandemic-related fraud. These cases are being prosecuted by AUSA Judy Smith; AUSA Nancy Potts, AUSA David Metcalf, AUSA Nancy Rue, AUSA Tim Lanni and Trial Attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal Jury Convicts Hickory Man of Sexual Exploitation of A Minor and Possession of Child PornographyRead the Press Release
STATESVILLE, N.C. – A federal jury in Statesville has convicted Vincent Deritis, 33, of Hickory, N.C., of sexual exploitation of a minor and possession of child pornography, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Thurman Whisnant of the Hickory Police Department join U.S. Attorney King in making today’s announcement.
According to filed court documents, trial evidence and witness testimony, between October 29, 2018, and March 17, 2019, Deritis secretly recorded a minor while the minor was exiting the shower. On April 3, 2019, law enforcement executed a search warrant at Deritis’s residence. A forensic analysis of electronic devices seized from Deritis’s home as well as his cloud storage account revealed that the defendant possessed images and videos that depicted the minor naked while exiting the shower, photos depicting the minor’s genitalia, and thousands of images of child pornography Deritis had downloaded from the internet. The jury convicted Deritis of three counts of production of child pornography and one count of possession of child pornography.
Deritis is currently in federal custody. A sentencing date has not been set. Each count of production of child pornography charge carries a minimum statutory sentence of 15 years and a maximum of 30 years in prison and a $250,000 fine. The charge of possession of child pornography carries a statutory penalty of no more than 20 years in prison and a $250,000 fine.
In making today’s announcement, U.S. Attorney King commended HSI and the Hickory Police Department for their investigation of the case.
Assistant United States Attorneys Cortney Randall and Nick J. Miller, of the U.S. Attorney’s Office in Charlotte, are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the 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.
Federal Inmate Charged with Possessing A WeaponRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Hubert Carter, age 41, a federal prison inmate, was indicted yesterday by a federal grand jury for possessing contraband in prison.
According to United States Attorney Gerard M. Karam, the indictment alleges that on or about June 9, 2022, while an inmate at the Federal Correctional Institution, Schuylkill, Minersville, Pennsylvania, Carter possessed a 5.5 inch metal implement with a cloth handle capable of being used as a weapon.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Federal Bureau of Prisons Special Investigative Service. Assistant United States Attorney Jeffery St John is prosecuting the case.
The maximum penalty under federal law for this offense is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Federal Indictment Charges CPA with Securities FraudRead the Press Release
CHARLOTTE, N.C. – A federal grand jury sitting in Charlotte has returned a criminal indictment charging Mac Wayne Billings, 48, of Raleigh, N.C., with securities fraud, for defrauding at least 19 victims of more than $3.6 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation, Charlotte Division, joins U.S. Attorney King in making today’s announcement.
According to allegations contained in the indictment, between 2012 and 2019, Billings engaged in securities fraud through his company, Alpha Finance Company (ALPHA), located in Sparta, North Carolina. The indictment alleges that Billings fraudulently obtained more than $3.6 million from at least 19 victims throughout Alleghany, Wilkes and Surry Counties, by soliciting them to invest in ALPHA via “debenture notes.” A debenture note is a type of debt instrument typically not backed by a collateral. As alleged in the indictment, Billings, who is a licensed North Carolina CPA, falsely promised ALPHA’s victim-investors that their money would be used to make high interest consumer loans from which the investors would receive interest payments. Contrary to his promises, Billings used little, if any, of the investors’ funds to make new consumer loans. Rather, Billings used some of the investors’ money to make payments to other investors and to pay himself over $1 million in salary and distributions from ALPHA.
The indictment further alleges that Billings used investment statements, emails and meetings to mislead and deceive victim-investors into believing that ALPHA was a profitable company and that the victims’ investments were safe. In this regard, Billings allegedly failed to disclose material information concerning ALPHA’s financial and business troubles to victim-investors, including that he had sold or mortgaged most of ALPHA’s assets to hard money lenders. Based on the fraudulent information provided by Billings, many of the victim-investors renewed and/or made additional investments with ALPHA, causing them to incur further financial losses.
Finally, lawsuits brought by the North Carolina Commissioner of Banks (NCCOB) and the North Carolina Attorney General’s Office alleged that Billings failed to comply with North Carolina laws governing consumer finance and retail installment loans. Billings defaulted on these lawsuits. Consequently, the NCCOB revoked ALPHA’s license due to non-compliance with North Carolina’s Consumer Finance Act. Courts in Alleghany and Wake Counties declared ALPHA’s loan null and void, leaving the investor-victims with no assets to recoup their losses.
The charges contained in the indictment are allegations and the defendant is innocent until proven guilty beyond reasonable doubt in a court of law.
The securities fraud charge carries a maximum prison term of 20 years and a $5 million fine. Billings’ initial appearance will be scheduled in federal court in Charlotte.
In making today’s announcement, U.S. Attorney King commended the FBI for their investigation of the case and thanked the U.S. Securities and Exchange Commission, the North Carolina Commissioner of Banks, and the North Carolina Attorney General’s Office for their cooperation.
Assistant U.S. Attorney Michael E. Savage of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Fayetteville Man Sentenced to 25 Years in Federal Prison for Drug TraffickingRead the Press Release
FAYETTEVILLE – A Fayetteville man was sentenced yesterday to 300 months in prison followed by five years of supervised release on one count of Aiding and Abetting the Possession with Intent to Distribute more than 500 grams of Methamphetamine. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court documents, In March of 2021, the Fourth Judicial District Drug Task Force (DTF) began investigating a drug trafficking organization operating within the Western District of Arkansas, Fayetteville Division. Through source reporting, investigators learned that Michael Scott Southerland, age 33, was the leader of the organization and was supplying narcotics to other members of the organization for distribution. As the investigation continued the DTF was able to make several purchases of methamphetamine from members of the organization.
On April 1, 2021, detectives with the DTF executed a search warrant at the residence of a co-conspirator. During execution of the warrant, detectives located over seven pounds of methamphetamine stored in safes for future distribution, as well as numerous firearms.
On May 18, 2021, detectives executed a search warrant at Southerland's residence, as well as the residence of one of his co-conspirators. The residences, which were adjacent to each other, were located near a school. During execution of the warrants, detectives located approximately 2.8 pounds of methamphetamine, numerous firearms, $10,366.00 in U.S. currency, and a drug ledger.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Fourth Judicial District Drug Task Force investigated the case.
Assistant U.S. Attorney David Harris prosecuted the case.
Eugene Man Sentenced for Illegally Importing and Exporting Live ScorpionsRead the Press Release
MEDFORD, Ore.—A Eugene, Oregon man who formerly resided in Southern Oregon was sentenced in federal court today for violating the Lacey Act by illegally importing and exporting hundreds of live scorpions.
Darren Dennis Drake, 39, was sentenced to two years’ federal probation, 250 hours of community service, and a $5,000 fine payable to the Lacey Act Reward Fund.
According to court documents, between September 4, 2017 and March 21, 2018, Drake imported and exported dozens of live scorpions from and to contacts in Germany without first obtaining an import-export license from the U.S. Fish and Wildlife Service (FWS). On one parcel intercepted by U.S. Customs and Border Protection (CBP), Drake falsely labeled the package contents as “chocolates.” Drake also mailed or received several hundred live scorpions from other U.S. states, including Michigan and Texas, in violation of federal mailing laws.
On February 23, 2022, Drake was charged by criminal information with conspiracy to violate the Lacey Act. On March 14, 2022, he waived indictment and pleaded guilty to the single charge.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FWS Office of Law Enforcement with assistance from CBP and the U.S. Postal Inspection Service. It was prosecuted by John C. Brassell, Assistant U.S. Attorney for the District of Oregon.
The U.S. Fish and Wildlife Service is responsible for protecting America’s wildlife from poaching, illegal commercialization, and other kinds of wildlife crime. If you have information related to a wildlife crime, please call 1-844-FWS-TIPS (1-844-397-8477) or email [email protected].
Scorpion near ruler for size comparison. Scorpions in transit.Essex County Man Sentenced to Five Years in Prison for Role in Fentanyl Conspiracy, and Unlawful Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for his role in a fentanyl conspiracy, and unlawful possession of a firearm and ammunition, U.S. Attorney Philip R. Sellinger announced.
Jaqua Clayton, aka “Quay,” 23, of Newark, previously pleaded guilty via videoconference before U.S. district Judge Madeline Cox Arleo to an information charging him with one count of conspiracy to distribute fentanyl, one count of possession with intent to distribute fentanyl, and one count of possession of a firearm and ammunition by a convicted felon. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On March 26, 2021, law enforcement executed a search warrant at Clayton’s residence and recovered a loaded .40 caliber Taurus semi-automatic handgun loaded with 10 rounds of .40 caliber ammunition, and approximately $51,000 in cash. Clayton admitted that he had agreed with another individual to keep Clayton’s narcotics supply inside of the other individual’s apartment to avoid detection from law enforcement. Law enforcement officers obtained and executed a search warrant for the individual’s apartment in March 2021. The search revealed 2,116 glassine envelopes of fentanyl, as well as five plastic bags of unpackaged fentanyl, the total aggregate weight of which exceeded 400 grams. During the search, Clayton arrived and approached the entrance of the apartment. When he observed law enforcement, he fled from the area. Clayton has a prior felony conviction.
In addition to the prison term, Judge Arleo sentenced Clayton to three years of supervised release.
U.S. Attorney Sellinger credited special agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, with the investigation leading to today’s sentencing.
This investigation was part of the Newark Violent Crime Initiative (VCI). The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA New Jersey Division, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole, Union County Jail, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, New Jersey Department of Corrections, the East Orange Police Department, and the Irvington Police Department.
The government is represented by Assistant U.S. Attorney Cassye Cole of the Criminal Division’s Organized Crime and Gangs Unit in Newark.
Elkhart Man Sentenced to 57 Months in PrisonRead the Press Release
SOUTH BEND – Shea Pletcher, 42 years old, of Elkhart, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. on his plea of guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Pletcher was sentenced to 57 months in prison followed by 2 years of supervised release.
According to documents in the case, in September of 2021, police in Elkhart responded to the scene of a possible break in. Once they arrived at the home, officers found Pletcher with a 20-gauge shotgun. Pletcher has an extensive criminal history, including at least 8 prior convictions, and any of his convictions for a felony offense prohibits him for possessing a firearm.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Elkhart Police Department and the St. Joseph County Police Department. The case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Eighteen Arrested on Federal Gun and Drug Charges as Part of a United States Marshals Service Led, Multi-Agency OperationRead the Press Release
Montgomery, Alabama – Eighteen individuals were indicted on federal gun and drug charges as part of a United States Marshals Service led, multi-agency operation to combat violent crime in Central Alabama’s River Region. Other participating agencies include: the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Alabama Law Enforcement Agency; the Drug Enforcement Administration; the Federal Bureau of Investigation; the Montgomery Police Department; the Montgomery County Sheriff’s Office; the Montgomery County District Attorney’s Office; the Alabama Bureau of Pardons and Paroles; and the United States Probation Office for the Middle District of Alabama.
Nationwide, gun crimes, gang activity, and shootings are on the rise. Law enforcement officers work every day to make our neighborhoods safer and our citizens more secure. Operations like this one, conducted from June 6th - 17th, are part of a combined effort to focus resources on violent offenders. Numerous state arrests were made during this operation as well.
As part of this operation, the following individuals from the Montgomery area were indicted on federal charges:
- Mario Aguilera, 38, for possession of a firearm by a convicted felon;
- Antonio Bailey, 39, for possession of a firearm by a convicted felon and possession of a controlled substance;
- Christopher Shay Barron, 45, for possession of a firearm by a convicted felon and possession of an unregistered firearm;
- Patrick Bass, 42, for possession of a firearm by a convicted felon, possession of a controlled substance with intent to distribute, and possession of a firearm in furtherance of a drug trafficking offense;
- Julius Calhoun, 27, for possession of a stolen firearm;
- Rodricko Davis, 30, for possession of a firearm by a convicted felon;
- Christopher Duncan, 39, for possession of a firearm by a convicted felon;
- Antwon Fisher, 38, for possession of a firearm by a convicted felon;
- Arthur Hamilton, 34, on three counts of possession of a firearm by a convicted felon;
- Deshunquez Harris, 27, for possession of a firearm by a convicted felon;
- Eric Hoskins, 27, for possession of a firearm by a convicted felon and possession of a controlled substance with intent to distribute;
- Willie Thomas Luckie, Jr., 56, for possession of ammunition by a convicted felon;
- Kendarius Powell, 23, for possession of a stolen firearm;
- Marcus Salter, 26, for possession of a stolen firearm;
- Tadarius Salter, 22, for possession of a stolen firearm;
- Adrian Fitzgerald Talley, III, 29, for possession of a firearm by a convicted felon;
- Jeremiah Trammer, 32, for possession of a firearm by a convicted felon and possession of a controlled substance; and
- Christopher Washington, 41, for possession of a firearm by a convicted felon.
An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The possession of a firearm or ammunition by a convicted felon, possession of a stolen firearm, and possession of an unregistered firearm charges each carry a maximum sentence of 10 years in prison. Possession of a firearm in furtherance of a drug trafficking crime carries a minimum sentence of five years to be served consecutively to any other sentences. The maximum sentence for those charged with possession of a controlled substance with intent to distribute varies depending on the type of controlled substance, weight of the substance, and other factors specific to the charge. There is no parole in the federal system.
All federal cases are being prosecuted by the U.S. Attorney’s Office for the Middle District of Alabama pursuant to the U.S. Department of Justice’s Project Safe Neighborhoods (PSN) initiative, a program in which U.S. Attorneys’ Offices work in partnership with federal, state, local, and tribal law enforcement to develop effective, locally based strategies to reduce violent crime and make neighborhoods safer for everyone. Recently, the Department of Justice reinvigorated PSN as part of its renewed focus on targeting armed violent criminals and gang members.
Eight Charged in $7 Million Loan Fraud SchemeRead the Press Release
Eight defendants were charged in the Eastern District of Pennsylvania today with scheming to fraudulently obtain more than $7 million in Paycheck Protection Program (PPP) loans, Economic Injury Disaster Loans (EIDL), and pre-pandemic Small Business Administration (SBA) loans.
According to court documents, beginning in or around January 2018, defendants Frank Hamilton, 52, of Simi Valley, California; Michael Jones, 55, of Azusa, California; Tina Chen, 39, of Diamond Bar, California; Kenny Tran, 38, of Diamond Bar, California; Tim Park, 37, of Northridge, California; Peter An, 37, of Chatsworth, California; Joseph Greco, 42, of Simi Valley, California; Edwin Bonilla, 36, of Los Angeles, California, and others allegedly conspired to apply for SBA, PPP, and EIDL loans on behalf of their respective businesses that were dormant companies or companies with limited business operations. In exchange for fees, Hamilton, Jones, and others made the businesses appear to be functioning companies with operations and employees by creating fake documents, including fake bank statements and fictitious tax documents for the businesses. One conspirator provided a script for other conspirators to use in calls with lenders. The conspirators allegedly obtained over $7 million in PPP, EIDL, and SBA loans.
Court documents further allege that the conspirators followed so-called “forgiveness plans” that directed them to transfer the fraud proceeds as purported payroll payments for each of the companies that obtained PPP funds. These “forgiveness plans” were designed to disguise the proceeds as payroll payments and make it appear that the loan recipient was meeting the SBA requirement that a percentage of the PPP funds be used for payroll, thus increasing the likelihood that the loan recipient would qualify for loan forgiveness. At Hamilton’s direction, Jones, Chen, Tran, Park, An, Greco, and Bonilla wired the disguised fraud proceeds to a bank account in the name of a dormant company Hamilton controlled.
Hamilton, Jones, Chen, Tran, Park, An, Greco, and Bonilla are each charged with conspiracy to commit wire fraud. If convicted, they each face up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA Office of Inspector General (SBA-OIG) Eastern Region; Special Agent in Charge Yury Kruty of IRS-Criminal Investigation (IRS-CI) Philadelphia Field Office; Special Agent in Charge William Walker of Homeland Security Investigations (HSI) Philadelphia Field Office; and Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Field Office made the announcement.
This case was investigated by the SBA-OIG, IRS-CI, HSI’s Philadelphia Field Office, and the FBI’s Philadelphia Field Office.
Trial Attorneys David A. Stier and Patrick B. Gushue of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Judy G. Smith of the U.S. Attorney’s Office for the Eastern District of Pennsylvania 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.
An information is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Drug Trafficking Organization Leader Sentenced to 15 Years in PrisonRead the Press Release
PROVIDENCE – A twice-deported Dominican national living in Providence who led a drug-trafficking organization that imported millions of doses of Mexican-sourced cocaine and fentanyl was sentenced today in U.S. District Court in Providence to fifteen years in federal prison, announced United States Attorney Zachary A. Cunha.
Eighteen kilos of fentanyl, enough to yield 9,000,000 lethal does; nearly twenty kilograms of cocaine; and one kilogram of heroin were seized as a result of a DEA Rhode Island Drug Task Force and Rhode Island State Police High Intensity Drug Trafficking Areas (HIDTA) Task Force investigation into the drug trafficking activity of 47-year-old Juni Rafael Jimenez-Martinez.
The Organized Crime Drug Enforcement Task Force (OCDEFT) investigation, dubbed “Operation Seek and Destroy,” determined that Jimenez-Martinez attempted to insulate himself from the drug trafficking operation by using trusted friends and associates to carry out much of the organization’s day-to-day business, while he oversaw and directed the importation, transportation, storage, and distribution of kilos of drugs. Jimenez-Martinez coordinated the movement of the drugs through various U.S. cities, as well as their shipment into New York City, where they were stored. At Jimenez-Martinez’s direction, the drugs were later transported elsewhere for distribution, including into Rhode Island and Massachusetts. During the course of the investigation, law enforcement seized drug shipments in St. Louis, Maryland, New Jersey, and Rhode Island.
Jimenez-Martinez, convicted of drug trafficking in 2009 in federal court in the Southern District of New York and sentenced to 65 months of incarceration, has been detained in Rhode Island since his arrest in this matter on June 6, 2019. He pleaded guilty on October 6, 2021, to conspiracy to distribute and to possess with intent to distribute cocaine; possession with intent to distribute cocaine; and being an alien who reentered the United States illegally after having been removed.
Jimenez-Martinez was sentenced today by U.S. District Court Chief Judge William E. Smith to 180 months of incarceration to be followed by ten years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
United States Attorney Cunha thanks the Massachusetts State Police; DEA Strike Force in Watertown, MA; DEA Annandale HIDTA Group in VA; and the DEA Westchester, NY, Resident Office for their assistance in this investigation.
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Distributing pornography results in federal prison time for Katy sex offenderRead the Press Release
HOUSTON – A 45-year-old man has been sent to federal prison following his conviction for a child pornography charge while on deferred adjudication for another similar offense, announced U.S. Attorney Jennifer B. Lowery.
Manuel Candia-Reuter pleaded guilty June 9, 2021.
Today, U.S. District Judge Gray H. Miller ordered Candia-Reuter to serve 180 months in prison to be immediately followed by 10 years of supervised release. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Candia-Reuter is a registered sex offender and had been serving a deferred sentence for previous possession of child pornography.
The investigation began in March 2019, when authorities discovered Candia-Reuter had uploaded or distributed child pornography material via Skype.
Law enforcement executed a search warrant at Candia-Reuter’s residence July 12, 2019. At that time, Candia-Reuter admitted to distributing images of child pornography to another user on Skype.
Candia-Reuter also acknowledged he had been attending therapy sessions while on deferred adjudication for possession of child pornography. He relapsed and again began searching for child pornography.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation with assistance of the National Center for Missing and Exploited Children.
Assistant U.S. Attorneys Kimberly Ann Leo and Sherin Daniel prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Convicted Felon Charged for Selling Firearm and HeroinRead the Press Release
Ocala, Florida – United States Attorney Roger B. Handberg announces the return of an indictment charging Troy Nix (29, Mount Dora) with possessing a firearm as a convicted felon and possessing heroin with the intent to distribute it. If convicted, Nix faces up to 10 years in federal prison for the firearm offense and up to 20 years in federal prison for the drug offense.
According to court records, on or about June 3, 2022, Nix sold a 9mm firearm and heroin to an undercover ATF agent. Nix then fled on foot when agents attempted to arrest him. He was apprehended several hours later. Nix has at least eight prior state felony convictions, including battery on a person 65 years of age or older, sale of cocaine, and fleeing to elude police. Because of his prior felony convictions, he is prohibited from possessing firearms or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, U.S. Customs and Border Patrol, the Lake County Sheriff’s Office, and the Mount Dora Police Department. It is being prosecuted by Assistant United States Attorney Tyrie K. Boyer.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Cherry Hill Gang Member Admits to Murdering a Rival Gang Member and Pleads Guilty to Conspiracy to Participate in a Racketeering EnterpriseRead the Press Release
Baltimore, Maryland- Deaven Cherry, age 35, of Baltimore, Maryland pleaded guilty yesterday to conspiracy to participate in a racketeering enterprise.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Toni M. Crosby of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“Deaven Cherry played a significant role in the Hillside gang’s violence, including selling poisonous drugs and murdering a rival gang member. Now, he faces more than two decades in federal prison,” said U.S. Attorney, Erek L. Barron. “We hope this plea deters others who would ravage our communities.”
According to his guilty plea, Cherry was an associate of a group known as “Hillside” which operated in part of Cherry Hill in Baltimore, Maryland. Members of Hillside distributed powder and crack cocaine, heroin, oxycodone and marijuana, primarily in the Cherry Hill Shopping Center, in other locations throughout Cherry Hill, and in west and southwest Baltimore City. The members of Hillside used the proceeds of their narcotics sales to purchase firearms, to enrich themselves, and to further the activities of the organization, including narcotics trafficking. Hillside members also committed acts of robbery, and homicides, non-fatal shootings.
As stated in his plea agreement, Hillside members and associates have been in a long-running dispute with persons not part of the gang, including Up Da Hill (“UDH”), the Lakebrook Circle Boys, and others. Members and associates of Hillside have routinely engaged in acts of violence, including murder, directed at members of these rival organizations, or persons who happen to be located on territory controlled by these rival organizations. Cherry knew members of Hillside sold narcotics and committed violent acts against rival gangs or others who impeded on Hillside’s territory. Further, Cherry admitted that he participated in Hillside’s racketeering enterprise, including the murder of a UDH member (Victim 1) on May 22, 2010. In order to carry out the murder of Victim 1, Cherry discharged a 9mm semi-automatic pistol with an extended magazine and contained 21 rounds. Ballistic evidence confirmed that Cherry’s firearm was used to murder Victim 1.
In 2019, Hillside co-defendants Kevin Horsey, Caesar Rice, and Michael Evans, all of Baltimore, were sentenced to 20 years, 22 years, and 14 years in federal prison; respectively for conspiracy to participate in a racketeering enterprise. Co-defendants Keenan Lawson and Terell Luster were also sentenced to 23 years in federal prison.
Cherry and the government have agreed that, if the Court accepts the plea agreement, Cherry will be sentenced to 21 years in federal prison. U.S. District Judge George L. Russell, III, has scheduled sentencing for November 29, 2022, at 2:00 p.m.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (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.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms, and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
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 praised the ATF, the Baltimore County Police Department, and the Baltimore City Police Department for their work in the investigation and the U.S. Marshals Service for their assistance. Mr. Barron thanked Assistant United States Attorneys Patricia C. McLane and Brandon K. Moore, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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California Mortgage Lender Agrees to Pay More Than $1 Million to Resolve Fraud AllegationsRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that American Financial Network, Inc., a mortgage lender based in Brea, California, has agreed to pay $1,037,145 to resolve allegations that it improperly and fraudulently originated government-backed mortgage loans insured by the Federal Housing Administration (FHA), a component of the U.S. Department of Housing and Urban Development (HUD).
“FHA-backed mortgages are a critical resource for first-time homebuyers, moderate-income borrowers, and families who have suffered negative credit due to the pandemic or other events out of their control,” said U.S. Attorney Waldref. “By improperly originating ineligible mortgages, lenders take advantage of the limited resources of the FHA program and unfairly pass the risk of loss onto the public.”
Since at least December 2011, AFN has been a participant in FHA’s Direct Endorsement Program. Through this program, a lender such as AFN is authorized to originate and approve mortgage loans to be insured by FHA without any prior review or approval by FHA. Lenders such as AFN are responsible for carefully underwriting the mortgage to make sure that it meets all FHA requirements. Once a mortgage loan is insured by FHA, if the borrower defaults or is unable to repay the mortgage, the lender that holds the mortgage note can submit a claim for insurance benefits to FHA to cover its losses.
The settlement resolves allegations that between December 2011 and March 2019, AFN knowingly underwrote certain FHA mortgages and approved for insurance certain mortgages that did not meet FHA requirements or qualify for insurance, resulting in losses to the United States when the borrowers defaulted on those mortgages. The settlement further resolves allegations that AFN knowingly failed to perform quality control reviews that it was required to perform.
This case began in March 2019 when a whistleblower, a former loan processor with AFN, filed a qui tam complaint under seal in federal court in Spokane. When a whistleblower, or “relator,” files a qui tam complaint, the False Claims Act requires the United States to investigate the allegations and elect whether to intervene and take over the action or to decline to intervene and allow the relator to go forward with the litigation on behalf of the United States. The relator is generally able to then share in any recovery. Pursuant to the settlement agreement, the relator in this case will receive $228,172 of the settlement, and will also recover her attorney’s fees, expenses, and costs.
“Quality and affordable housing is a critical issue in Eastern Washington and across the nation,” said U.S. Attorney Waldref. “Protecting the resources that support families who dream of purchasing their first home makes our community stronger. I commend the exceptional investigative work by Veterans Affairs Office of Inspector General and HUD’s Office of Inspector General that holds accountable those who abuse housing programs.”
“HUD’s Office of Inspector General is committed to working with the Department of Justice and our law enforcement partners to ensure that federal programs designed to help our nation’s most vulnerable are not abused,” said Special Agent-in-Charge Scott Tanchak. “Today’s settlement demonstrates the Government’s commitment to protecting the integrity of HUD programs.”
“Investigations such as these help safeguard the integrity of the home loan approval process and protect vulnerable veterans from fraudulent lending practices,” said Special Agent in Charge Jason Root of the Department of Veterans Affairs Office of Inspector General’s Northwest Field Office. “The VA OIG thanks the U.S. Attorney’s Office for the Eastern District of Washington and HUD’s Office of Inspector General for their partnership in this joint investigation.”
The settlement was the result of a joint investigation conducted by the U.S. Attorney’s Office for the Eastern District of Washington, HUD’s Office of Inspector General, and the U.S. Department of Veterans Affairs, Office of Inspector General, Spokane Resident Office.
Assistant United States Attorneys Tyler H.L. Tornabene and Dan Fruchter and Special Assistant United States Attorney Frieda K. Zimmerman handled this matter on behalf of the United States. The claims resolved by the settlement are allegations only and there has been no determination of liability.
Brownsville man sentenced for trying to smuggle cocaine past CheckpointRead the Press Release
BROWNSVILLE, Texas – A 60-year-old Brownsville resident has been ordered to federal prison for possessing with intent to distribute 11.78 kilograms of cocaine, announced U.S. Attorney Jennifer B. Lowery.
Martin Munoz pleaded guilty Sept. 15, 2021.
Today, U.S. District Judge Rolando Olvera ordered him to serve a 70-month sentence to be immediately followed by five years of supervised release.
On March 13, 2020, Munoz arrived at the Border Patrol (BP) checkpoint located in Sarita driving a pickup truck.
At inspection, law enforcement opened the driver side door and immediately noticed a large duffel bag laying on the front passenger seat. They ultimately found 10 bundles wrapped in brown tape consistent with narcotics located inside the bag.
They contained a white powdery substance which later field tested positive for the properties of cocaine with a total combined weight of 11.78 kilograms.
Munoz has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and Border Patrol conducted the investigation. Assistant U.S. Attorney David Coronado prosecuted the case.
Branson Man Pleads Guilty to Threatening Sheriff’s DepartmentRead the Press Release
SPRINGFIELD, Mo. – A Branson man pleaded guilty in federal court today to threatening over the internet to injure employees of the Los Angeles County, California, Sheriff’s Department.
Joshua L. Bippert, 27, pleaded guilty before U.S. District Judge M. Douglas Harpool to one count of transmitting a threat across state lines to injure another person.
By pleading guilty today, Bippert admitted that he communicated the threat over the internet to the sheriff’s department on Sept. 20, 2020. Bippert sent a private message in response to a social media post on the department’s Instagram account. The Instagram post documented the arrest of a felon in possession of a firearm. Bippert wrote: “Recently a couple of your officers arrested a man for owning a firearm. If you want more of your officers to end up like the two that got shot while sitting in their patrol car then go ahead and keep the charges. Release the man who did nothing wrong but keep his second amendment rights or there will be blood. This is a threat.” (sic) Bippert’s message presumably referred to the Sept. 12, 2020, ambush by a gunman on two sheriff’s deputies sitting in their patrol car.
The next day, Bippert commented on the sheriff’s department post: “for me, the most irritating part is living in the midwest and not on the border to California where I could take a nice short drive to water the tree of liberty.” (sic)
Investigators also saw a post from Bippert in which he tagged the sheriff’s department: “Forget the constitution. We need to end gun control by any means necessary. Yes I do mean violence.” (sic)
Under federal statutes, Bippert is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI, the Taney County, Mo., Sheriff’s Department, and the Los Angeles County, Calif., Sheriff’s Department.
Boston Man Sentenced for Cocaine DistributionRead the Press Release
BOSTON – A Boston man was sentenced yesterday in federal court in Boston for his role in a cocaine trafficking conspiracy.
Tarik Muhammad, 27, was sentenced by U.S. District Court Judge Richard G. Stearns to two years in prison and three years of supervised release. On June 3, 2022, Muhammad pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine.
Muhammad was charged in June 2020 along with 23 others as part of a multi-year investigation into a drug trafficking organization (DTO) comprised of Boston-based street gang members and associates. According to the charging documents, beginning in November 2018, law enforcement investigated drug trafficking activities in the Commonwealth Development in Brighton, formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown.
Muhammad was identified as a drug distributor for the DTO. Intercepted calls between Muhammad and Kenji Drayton, one of the main suppliers and distributors within the DTO, revealed communication regarding coordinated meetup locations, which law enforcement surveilled. Subsequently, law enforcement stopped their vehicle and searched the occupants. While searching Muhammad, an object was found at the crease of Muhammad’s buttocks, at which time he was transported to the police station.
During the transport, Muhammad threw himself to the ground thrashing. Officers radioed these observations to the police station and upon arrival, Muhammad was found covered with white powder. A ripped plastic bag containing white residue was subsequently recovered from the outer area of Muhammad’s buttocks.
Muhammad is the eighth defendant to be sentenced in the case. Of the remaining defendants, 13 have pleaded guilty and are awaiting sentencing, three are pending trial and one defendant remains at large.
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.
First Assistant United States Attorney Joshua S. Levy; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Douglas Bartlett, Acting U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance in the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Offices. Assistant U.S. Attorneys Kaitlin R. O’Donnell and Timothy E. Moran, Chief of the Organized Crime & Gang Unit, prosecuted the case.
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.
Billings man who used construction excavator to break into firearms dealer and steal guns sentenced to more than five years in prisonRead the Press Release
Click here for photo:
photo_of_excavator_damage_to_business.pdfBILLINGS — A Billings man who admitted to stealing firearms from a dealer after breaking into the business by using a construction excavator to tear a hole in the wall was sentenced today to five years and two months in prison, to be followed by three years of supervised release, U.S. Attorney Jesse Laslovich said.
Erik Stephen Deaner, 46, pleaded guilty in December 2021 to theft from a federal firearms dealer.
U.S. District Judge Susan P. Watters presided. Judge Watters also ordered $1,000 restitution.
The government alleged in court documents that on Oct. 21, 2021, Deaner stole firearms from Castle Arms, a federal firearms licensee located in Yellowstone County, by using a construction excavator to tear down a section of wall and door. The excavator had been taken from a nearby construction site. The excavator had been locked and no keys were missing, but the key was universal so anyone with the manufacturer’s key could potentially access the excavator. An investigation determined that five pistols and one antique rifle had been stolen and that Deaner had been in the business previously and had behaved oddly. Investigators went to Deaner’s home and arrested him on an outstanding warrant when he came outside. Deaner admitted to using the excavator to break into the business and to stealing the firearms. Deaner said he knew he was prohibited from possessing firearms but that he liked firearms. All of the stolen firearms were recovered from his garage.
Assistant U.S. Attorney Thomas K. Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and Yellowstone County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Berkeley County man facing firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Eric Timothy Gray, of Inwood, West Virginia, was indicted today on firearms charges, United States Attorney William Ihlenfeld announced.
Gray, 54, was indicted today on four counts of “Unlawful Possession of a Firearm” and two counts of “False Statement During the Purchase of a Firearm.” Gray, a person prohibited from having a firearm because of prior felony convictions, is also accused of having multiple firearms in January 2020. He is also accused of falsifying forms to illegally purchase firearms in Berkeley County.
Gray faces up to 10 years of incarceration and a fine of up to $250,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Belton Man Sentenced for Crack Cocaine, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Belton man has been sentenced in federal court for illegally possessing crack cocaine and firearms.
Keylan Williams posted this photo of himself with firearms and cash to his Instagram account.Keylan L. Williams, 19, was sentenced by U.S. District Judge Greg Kays on Tuesday, June 22, to six years and eight months in federal prison without parole.
On Dec. 28, 2021, Williams pleaded guilty to one count of possessing crack cocaine with the intent to distribute, and one count of being an unlawful user of a controlled substance in possession of firearms.
On Feb. 9, 2021, law enforcement officers executed a search warrant at the residence of Williams, who had just turned 18 years old a few days earlier and was a subject of interest in the investigations of an aggravated assault and an armed robbery that each occurred on Jan. 28, 2021.
When officers searched the residence, they found a loaded Springfield Armory 9mm semi-automatic handgun hidden in the rafters in the laundry room. They found a loaded Glock .40-caliber semi-automatic handgun hidden in the toilet tank in a bathroom. They found 61 individually-wrapped baggies of crack cocaine, which weighed a total of 16.87 grams, hidden in a living room vent, along with four magazines of ammunition.
Officers also found a factory gun case hidden in the insulation in the attic, but not the firearm, for a Glock handgun that had been reported stolen. They found a backpack in the hall closet that contained numerous pills, marijuana, ammunition, and a handgun holster. They found two baggies of marijuana in the living room beneath the couch. They found another backpack in an upstairs bedroom that contained marijuana and more pills. In a basement bedroom area, they found four more magazines and additional ammunition. More ammunition and a Sig Sauer magazine were found beneath the mattress.
A match was generated from the test fire of the seized Glock handgun through the National Integrated Ballistic Information Network (NIBIN). Forensic comparison of the shell casing fired from the Glock handgun by the crime laboratory matched a shell casing recovered from the investigation of a homicide that occurred in Kansas City, Mo., on Dec. 13, 2020.
Keylan Williams posted this photo of himself with firearms and cash to his Instagram account.Law enforcement investigators identified photographs of Williams, posted on his Instagram account, in which he has one or two Glock handguns next to him. One of the Glock handguns, which has a rubber aftermarket grip pulled over the factory grip, appears to be the same handgun seized by officers during the search of Williams’s residence. In two of the photographs that depict Williams with the firearms, he also has a large quantity of cash.
This was prosecuted by Assistant U.S. Attorney Trey Alford. It was investigated by the Kansas City, Mo., Police Department.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Baltimore Defense Attorney Sentenced to 57 Months in Federal Prison for Money Laundering ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Liam O’Grady of the U.S. District Court for the Eastern District of Virginia, who presided over this case in the District of Maryland, today sentenced Kenneth Wendell Ravenell, age 63, of Monkton, Maryland, to 57 months in federal prison, followed by three years of supervised release for conspiracy to commit money laundering conspiracy charge. Ravenell was convicted of that charge on December 28, 2021, after a 16-day trial.
The sentence was announced by First Assistant United States Attorney for the District of Maryland Phil Selden; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office. The United States Attorney has recused himself from this case.
The trial evidence proved that Ravenell received drug proceeds from clients and associates who engaged in drug trafficking. Evidence was presented that Ravenell also used bank accounts of the law firm to launder more than a million dollars; used the law firm’s bank accounts to receive drug payments and make payments to attorneys retained to represent other members of the conspiracy; and used the law firm’s bank accounts to make various investments on behalf of a drug trafficker client, concealing and misrepresenting the source of the funds and promoting the client’s unlawful activity. According to trial evidence, Ravenell also received substantial cash payments derived from drug sales as compensation for laundering money.
Specifically, the trial evidence demonstrated that from 2009 through 2014, Ravenell gave a drug dealer advice on how to launder the millions of dollars of cash that the dealer’s marijuana sales generated. Ravenell advised the drug dealer to set up businesses that generated cash themselves and make investments in real estate projects, which the drug dealer did, in order to launder drug proceeds. The drug dealer’s business activities were mainly in entertainment, where he organized concerts and other events. Drug proceeds were used to pay expenses, like renting venues, hiring entertainers, and purchasing food and alcohol for re-sale. Attendees to these events largely paid in cash for their tickets, which provided a second opportunity to launder money, namely, by mixing cash generated by marijuana sales with cash generated by ticket sales. Ravenell and the drug dealer discussed all aspects of these events and the drug dealer’s entertainment-related activities, including the use of drug proceeds to fund the events and the mixing of drug proceeds with ticket sales.
In 2011, the drug dealer was arrested and became a formal client of Ravenell’s and the law firm where he was a partner at that time. Between 2011 and 2014, the trial evidence showed that in addition to advising the drug dealer on how to launder money, Ravenell personally laundered his client’s drug proceeds using the firm’s attorney trust account. Ravenell accepted more than $1.8 million in drug proceeds and funds co-mingled with drug proceeds from entities and individuals associated with the drug dealer. Ravenell also directed the payment of more than $1.2 million of these drug proceeds from the law firm’s accounts to various projects and third parties to benefit his client. Ravenell’s purpose in accepting and disbursing these funds was to conceal the source of the funds as drug proceeds and promote his client’s on-going marijuana distribution activities.According to trial evidence in 2013, a client facing federal narcotics charges paid Ravenell more than $350,000 in drug proceeds through an associate of the client. Ravenell instructed the associate to convert the drug proceeds into money orders and other instruments to conceal the source of the funds. After Ravenell withdrew from the case, the client learned that Ravenell had only credited $187,000 to his case, not the more than $350,000 that the client had paid.
First Assistant United States Attorney Phil Selden commended the IRS-CI, the DEA, the Maryland Transportation Authority Police Department, the Phoenix (Arizona) Police Department, and the Arizona Financial Crimes Task Force for their work in the investigation. Mr. Selden thanked Assistant U.S. Attorneys Leo J. Wise and Zachary Ray, and Special Assistant U.S. Attorney Derek Hines, who prosecuted the case.
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Armed Career Criminal Sentenced to 15 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
INDIANAPOLIS – Corey Thomas, 33, of Indianapolis, was sentenced to fifteen years in federal prison after pleading guilty to possessing a firearm as a convicted felon.
According to court documents, on November 21, 2020, officers from the Indianapolis Metropolitan Police Department (IMPD) responded to a domestic disturbance call involving a gun. Officers spoke with a woman who said Thomas was armed with a shotgun, had threatened to kill her, and that Thomas had left the residence in a black Jeep. Officers also discovered that Thomas had an outstanding warrant for armed robbery in Marion County. IMPD officers later located Thomas in possession of a loaded 20-gauge shotgun, sitting in a parking lot of a liquor store. Thomas is prohibited from lawfully possessing firearms or ammunition due to multiple prior felony convictions, including four separate armed robbery convictions. Because of his prior convictions, Thomas is an Armed Career Criminal under federal law and subject to enhanced penalties for illegally possessing a firearm.
“Time and again, we have seen that domestic violence by people with illegal access to firearms is a precursor to murder in the home and mass violence in public,” said Zachary A. Myers, United States Attorney for the Southern District of Indiana. “The serious sentence imposed here shows that violent, illegally armed criminals will face serious consequences in federal court. Our prosecutors will work closely with the ATF, IMPD, and other law enforcement partners to investigate and prosecute these offenders and make our communities and homes safer.”
“The defendant in this case has a history of violent acts, including armed robbery and domestic violence,” stated Daryl S. McCormick, Special Agent in Charge of ATF’s Columbus Field Division. “We know that it is a few individuals who cause a large share of the violence we see. ATF and our partners at IMPD will continue to focus on those who are using guns to cause harm and remove them from our community.”
“This is yet another example of the value our federal partners bring to fighting violent crime in Indianapolis,” said IMPD Chief Randal Taylor. “I am grateful for the work our detectives, federal investigators, and federal prosecutors put into this case as well as their continued collaboration.”
The Indianapolis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. The sentence was imposed by U.S. District Judge Sarah Evans Barker following Thomas’s guilty plea. As part of the sentence, Judge Barker ordered that Thomas be supervised by the U.S. Probation Office for five years following his release from prison
U.S. Attorney Myers thanked Assistant U.S. Attorney Adam Eakman who prosecuted this case.
This case was brought as part of the LEATH Initiative (Law Enforcement Action to Halt Domestic Violence), named in honor of Indianapolis Metropolitan Police Department (IMPD) Officer Breann Leath, who was killed in the line of duty while responding to a domestic disturbance call. A partnership among the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the IMPD, and the U.S. Attorney’s Office for the Southern District of Indiana, the LEATH Initiative focuses federal, state, and local law enforcement resources on domestic violence offenders who illegally possess firearms.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Armed Bank Robber from Floyds Knobs Sentenced to Twelve Years in Federal Prison for Committing Five Robberies in Ten WeeksRead the Press Release
INDIANAPOLIS – Daniel Wilkinson, 30, of Floyds Knobs, Indiana, was sentenced yesterday to twelve years in federal prison after pleading guilty to five different Indianapolis area bank robberies, and two counts of use of a firearm during and in relation to a crime of violence.
According to court documents, between September 5 and November 17, 2020, Wilkinson robbed five different Chase Bank branches in the Indianapolis area. During each robbery Wilkinson entered the bank alone and gave a teller a note announcing that he was robbing the bank and demanding money. During his bank robbery spree, Wilkinson stole a total of at least $30,805.
On November 13, 2020, Wilkinson entered a Chase Bank branch on Castle Creek Parkway Drive and handed a teller a hand-written note stating, “Stay calm stay quiet this is a robbery open your teller drawer and take all the money out I will shoot my way out if I have too.” Wilkinson then lifted his shirt to show a black handgun in his front pocket to the first teller, who handed Wilkinson cash from a bank register. Wilkinson later showed his handgun to another teller, who also handed Wilkinson approximately $2,263 in cash from another bank register.
On November 17, 2020, Wilkinson entered a Chase Bank branch on Kentucky Avenue and handed a teller a hand-written note stating, “Stay calm this is a robbery take all the money out of the drawer and any underneath…Place it in envelopes No tracers or Dye Packs If I have too I’ll Shoot.” The teller then handed Wilkinson cash from another bank register. Immediately following the bank robbery, IMPD SWAT officers located Wilkinson in the getaway car and stopped and arrested him. At the time of the arrest, Wilkson was armed with a black, 9mm handgun in his front pocket. IMPD officers searched the getaway car and recovered $6,377 inside Chase Bank envelopes, clothing worn in the robberies, and a notebook with writing impressions of a robbery demand note.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, Herbert J. Stapleton, Special Agent in Charge of the Federal Bureau of Investigation’s Indianapolis Field Office, and Chief Randal Taylor, Indianapolis Metropolitan Police Department made the announcement.
The Federal Bureau of Investigation and the Indianapolis Metropolitan Police Department investigated the case. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson. As part of the sentence, Judge Magnus-Stinson ordered that Wilkinson be supervised by the U.S. Probation Office for five years following his release from federal prison and pay $30,805 in restitution to JP Morgan Chase Bank.
U.S. Attorney Myers thanked Assistant U.S. Attorney Jayson W. McGrath who prosecuted this case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Amherst County Veterinarian Sentenced for Opioid TheftRead the Press Release
LYNCHBURG, Va. – A former veterinarian, who admitted to stealing opioids, was sentenced today to eight months in federal prison.
Patrick Gries, 54, of Madison Heights, Virginia, pleaded guilty in January 2022 to one count of adulteration of a drug held for sale after shipment in interstate commerce and one count of distribution of a controlled substance without a written prescription.
“When health care professionals put the well-being of others at risk, they violate the trust placed in them by the public and will be held accountable. My Office will continue to prioritize these cases throughout the Western District of Virginia,” United States Attorney Christopher R. Kavanaugh said today.
“Health care professionals, including veterinarians, who take needed medications from their patients not only harm the patients but also put at risk the trust that consumers have in those who provide medical care to their companion animals,” said Special Agent in Charge George Scavdis, FDA Office of Criminal Investigations - Metro Washington Field Office. “We will continue to investigate and bring to justice those who put the safety and health of pets at risk by tampering with their patients’ medications.”
According to court documents, from 1994 through 2021, Gries practiced as a Doctor of Veterinary Medicine at VCA Amherst Animal Hospital in Amherst County, Virginia. The animal hospital maintained supplies of Dilaudid, an opioid generically known as hydromorphone, primarily for use in treating pain in animal patients following surgeries.
As the hospital’s primary surgeon, Gries had full access to the hospital’s supply of hydromorphone and began withdrawing a portion of the highly addictive drug from the vials and injecting it into himself. He would replace the stolen hydromorphone with another substance, usually either saline or butorphanol, and then return the altered narcotic back to the hospital inventory.
The Food and Drug Administration - Office of Criminal Investigations, the Drug Enforcement Administration - Diversion Control Division, and the Virginia State Police investigated the case.
Assistant U.S. Attorney Michael Baudinet prosecuted the case.
Tuesday 21 June 2022
World Elder Abuse Awareness Day Highlights Importance of Protecting Southern District of Iowa SeniorsRead the Press Release
DES MOINES, IA – The Department of Justice commemorated World Elder Abuse Awareness Day by emphasizing its commitment to protecting elderly individuals against abuse, fraud, and neglect by advancing elder justice. Elder abuse takes many forms, including financial exploitation (abuse and fraud), caregiver neglect, and physical, sexual, and psychological abuse.1
Attorney General Merrick Garland stated, “The Department has a strong elder justice history that I continue to fully support. We all know an older family member or friend who has been the victim of financial fraud, either domestically or internationally, and we’ve witnessed first-hand how financial loss impacts older adults. Some older adults cut down on their prescription medications harming their health or they are unable to pay their rent and may have to move into senior subsidized housing, impacting their sense of independence. That is why the Department has devoted significant personnel and resources specifically to combat financial fraud committed against older Americans.”
1. What is Elder Abuse (Elder Justice Website); Overview of Elder Abuse (National Institute of Justice).
To prevent and prosecute crimes against the elderly, each of the 94 U. S. Attorney’s Offices nationwide have appointed Elder Justice Coordinators assigned to prosecute crimes against elderly individuals and educate the public about elder abuses. To assist older victims in recovering from crime victimization, the Department provides Victims of Crime Act funding to states for crime victim services programming, with a significant portion of those funds assisting older victims. At the federal level, Victim Specialists serve alongside Elder Justice Coordinators in facilitating services for older victims.
“Ensuring the safety and security of elderly individuals is of the highest priority for this office,” stated U.S. Attorney Richard D. Westphal. “Significant efforts have been made in the Southern District of Iowa to educate seniors about harmful fraud schemes and to prosecute the perpetrators of such scams. Our office regularly meets with members of the public and employees of financial institutions to inform them about elder financial exploitation and we have had recent success in criminally prosecuting fraudsters who stole from seniors.”
In January 2022, Chelsea Lynn Gless, of Princeton, Iowa, was sentenced to 36 months in prison for mail fraud and ordered to pay over $2.9 million in restitution to victims. The majority of Gless’ 71 victims were elderly individuals. Gless was the manager and part-owner of Royal Metals Group, a business that purported to buy and sell precious metals for customers. Over a period of nearly four years, Gless made false representations to clients and instead of delivering and paying clients for precious metals, Gless misappropriated clients’ funds and precious metals.
In March 2022, Jeffrey M. Carley, of Treynor, Iowa, was sentenced to five years in prison and ordered to pay $1,364,163.02 in restitution to the victims of his wire fraud scheme. Carley was a financial investment counselor. Carley encouraged his clients to move money from their traditional IRA accounts to a “self-directed” IRA. Carley then advised his clients to move their money from the “self-directed” IRA to investment opportunities Carley owned or had ownership interest in and advised clients they would receive a financial return. Carley never told his clients that he owned or had an interest in the investments he promoted. Carley also failed to invest the clients’ money and instead used the funds for his personal expenses. Nine of the eleven victims of this investment scheme were elderly. The sentencing judge noted the length of time the scheme lasted and the harm and age of the victims as some of the aggravating factors in imposing the five-year sentence.
To learn more about the Department’s elder justice efforts, please visit the Elder Justice website.
If you need assistance or to report elder abuse, please contact the Iowa Adult Protective Services Hotline at 1-800-362-2178. To report elder fraud, Iowa Adult Protective Services may be contacted, as well as the FBI’s IC3 Elder Fraud Complaint Center , or contact the National Elder Fraud Hotline at 1-833-372-8311.
Wolf Point man who shot man in the back was sentenced to 16 years in prison for murderRead the Press Release
GREAT FALLS — A Wolf Point man who admitted to fatally shooting another man in the back on the Fort Peck Indian Reservation was sentenced today to 16 years in prison, to be followed by five years of supervised release, U.S. Attorney Jesse Laslovich said.
Doratello “DJ” Juan Fischer, 37, pleaded guilty in November 2021 to second degree murder as charged in an information.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Nov. 27, 2020, Fischer shot the victim in the back with a .22-caliber rifle, killing him. Fischer had been driving around Wolf Point drinking alcohol with his girlfriend and other person that evening. While driving down an alley, Fischer told his girlfriend to stop the car and he then got out. The victim was standing outside of a residence near the alley. Fischer shot the victim in the back with a .22-caliber rifle, back, got back into the vehicle with his girlfriend and sped away. The rifle was never found.
The victim was transported to Trinity Hospital in Wolf Point where he was pronounced dead. The cause of death was a single gunshot wound to the back.
The shooting occurred following a Nov. 24, 2020 incident at a Wolf Point bar where law enforcement responded to the victim brandishing a firearm and pointing it at Fischer. The day before Fischer shot the victim, Fischer used social media to communicate with another individual about the victim pointing the gun at him. Fischer said that he was planning on “coming to town to go hunting.”
Assistant U.S. Attorneys Lori Harper Suek and Jared C. Cobell prosecuted the case, which was investigated by the FBI, Fort Peck Tribes Criminal Investigation and Wolf Point Police Department.
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Wheeling man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Edgar Eugene Hatten, of Wheeling, West Virginia, was sentenced today to 12 months and one day of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Hatten, 41, pleaded guilty In February 2022 to one count of “Distribution of Methamphetamine within 1,000 Feet of a Protected Location.” Hatten admitted to selling methamphetamine near Clator Playground in Wheeling on July 20, 2021.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Wetzel County woman sentenced to more than 10 years for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Mary Elizabeth Luongo, of Paden City, West Virginia, was sentenced today to 121 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced
Luongo, 49, pleaded guilty in January 2022 to one count of “Distribution of Methamphetamine.” Luongo admitted to selling methamphetamine in December 2020 in Tyler County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, and the Tyler County Sheriff’s Office investigated.
U.S. District Judge John Preston Bailey presided.
Waynesburg Woman Charged with Theft of MailRead the Press Release
PITTSBURGH - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal mail theft laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Teresa Drummond, age 47, as the sole defendant.
According to the Indictment, on June 2, 2021, Drummond, did steal and take from and out of any mail route and other authorized depository for mail matter a letter addressed to T.W. in Ellwood City, Pennsylvania.
The law provides for a maximum total sentence of not more than 5 years in prison, a fine of not more than $250,000, a term of supervised release of not more than three years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The United States Postal Service Office of Inspector General conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Attorney Resolves Groundbreaking Suit Against Meta Platforms, Inc., Formerly Known as Facebook, to Address Discriminatory Advertising for HousingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, along with Kristen Clarke, Assistant Attorney General for the Justice Department’s Civil Rights Division, announced today that the Justice Department has entered into a settlement agreement resolving allegations that Meta Platforms, Inc., formerly known as Facebook, Inc., engaged in discriminatory advertising in violation of the Fair Housing Act (FHA). The agreement would resolve a lawsuit filed today in the U.S. District Court for the Southern District of New York alleging that Meta’s housing advertising system discriminates against Facebook users based on their race, color, religion, sex, disability, familial status, and national origin. The proposed settlement is subject to the review and approval by a district judge in the Southern District of New York.
U.S. Attorney Damian Williams said: “When a company develops and deploys technology that deprives users of housing opportunities based in whole or in part on protected characteristics, it has violated the Fair Housing Act, just as when companies engage in discriminatory advertising using more traditional advertising methods. Because of this ground-breaking lawsuit, Meta will—for the first time—change its ad delivery system to address algorithmic discrimination. But if Meta fails to demonstrate that it has sufficiently changed its delivery system to guard against algorithmic bias, this Office will proceed with the litigation.”
Assistant Attorney General Kristen Clarke said: “As technology rapidly evolves, companies like Meta have a responsibility to ensure their algorithmic tools are not used in a discriminatory manner. This settlement is historic, marking the first time that Meta has agreed to terminate one of its algorithmic targeting tools and modify its delivery algorithms for housing ads in response to a civil rights lawsuit. The Justice Department is committed to holding Meta and other technology companies accountable when they abuse algorithms in ways that unlawfully harm marginalized communities.”
Principal Deputy Assistant Secretary Demetria McCain said: “It is not just housing providers who have a duty to abide by fair housing laws. Parties who discriminate in the housing market, including those engaging in algorithmic bias, must be held accountable. This type of behavior hurts us all. HUD appreciates its continued partnership with the Department of Justice as they seek to uphold our country’s civil rights laws.”
Among other things, the complaint alleges that Meta uses algorithms in determining which Facebook users receive housing ads, and that those algorithms rely, in part, on characteristics protected under the FHA. This is the Justice Department’s first case challenging algorithmic bias under the FHA.
Under the settlement, Meta will stop using an advertising tool for housing ads (known as the “Special Ad Audience” tool) which, according to the complaint, relies on a discriminatory algorithm to find users who “look like” other users based on FHA-protected characteristics. Meta also will develop a new system over the next six months to address racial and other disparities caused by its use of personalization algorithms in its ad delivery system for housing ads. If the United States concludes that the new system adequately addresses the discriminatory delivery of housing ads, then Meta will implement the system, which will be subject to Department of Justice approval and court oversight. If the United States concludes that the new system is insufficient to address algorithmic discrimination in the delivery of housing ads, then the settlement agreement will be terminated.
This settlement marks the first time that Meta will be subject to court oversight for its ad targeting and delivery system.
The United States’ Lawsuit
The United States’ complaint challenges three key aspects of Meta’s ad targeting and delivery system. Specifically, the complaint alleges that:
- Meta enabled and encouraged advertisers to target their housing ads by relying on race, color, religion, sex, disability, familial status, and national origin to decide which Facebook users will be eligible, and ineligible, to receive housing ads.
- Meta created an ad targeting tool known as the “Lookalike Audience” or “Special Ad Audience.” The tool uses a machine-learning algorithm to find Facebook users who share similarities with groups of individuals selected by an advertiser using several options provided by Facebook. Facebook has allowed its algorithm to consider FHA-protected characteristics—including race, religion, and sex—in finding Facebook users who “look like” the advertiser’s source audience and thus are eligible to receive housing ads.
- Meta’s ad delivery system uses machine-learning algorithms that rely in part on FHA-protected characteristics—such as race, national origin, and sex—to help determine which subset of an advertiser’s targeted audience will actually receive a housing ad.
The complaint alleges that Meta has used these three aspects of its advertising system to target and deliver housing-related ads to some Facebook users while excluding other users based on FHA-protected characteristics. The complaint further alleges both disparate treatment and disparate impact discrimination. Specifically, the complaint alleges that Meta is liable for disparate treatment because it intentionally classifies users on the basis of FHA-protected characteristics and designs algorithms that rely on users’ FHA-protected characteristics. The complaint also alleges that Meta is liable for disparate impact discrimination because the operation of its algorithms affects Facebook users differently on the basis of their membership in protected classes.
Settlement Agreement
These are the key features of the parties’ settlement agreement:
- By December 31, 2022, Meta must stop using an advertising tool for housing ads known as “Special Ad Audience” (previously called “Lookalike Audience”), which relies on an algorithm that, according to the United States, discriminates on the basis of race, sex, and other FHA-protected characteristics in identifying which Facebook users will be eligible to receive an ad.
- Meta has until December 2022 to develop a new system for housing ads to address disparities for race, ethnicity, and sex between advertisers’ targeted audiences and the group of Facebook users to whom Facebook’s personalization algorithms actually delivers the ads. If the United States concludes that this new system sufficiently addresses the discriminatory disparities that Meta’s algorithms introduce, then Meta will fully implement the new system by December 31, 2022.
- If the United States concludes that Meta’s changes to its ad delivery system do not adequately address the discriminatory disparities, the settlement agreement will terminate and the United States will litigate its case against Meta in federal court.
- If the new system is implemented, then the parties will select an independent, third-party reviewer to investigate and verify on an ongoing basis whether the new system is meeting the compliance standards agreed to by the parties. Under the agreement, Meta must provide the reviewer with any information necessary to verify compliance with those standards. The court will have ultimate authority to resolve disputes over the information that Meta must disclose.
- Meta will not provide any targeting options for housing advertisers that directly describe or relate to FHA-protected characteristics. Under the agreement, Meta must notify the United States if Meta intends to add any targeting options. The court will have authority to resolve any disputes between the parties about proposed new targeting options.
- Meta must pay to the United States a civil penalty of $115,054, the maximum penalty available under the Fair Housing Act.
The lawsuit is based on an investigation and charge of discrimination by HUD, which found that all three aspects of Facebook’s ad delivery system delivered housing ads based on FHA-protected characteristics. During its investigation, HUD found that Facebook allowed housing advertisers to exclude users from receiving housing-related ads through targeting options that referenced FHA-protected characteristics, and that Facebook’s machine-learning algorithm excluded users from receiving housing-related ads, even when advertisers sought to target a diverse group of Facebook users. On March 28, 2019, HUD issued a charge of discrimination at the conclusion of its investigation, and Facebook elected to have that charge heard in federal court, resulting in this lawsuit. Prior to filing this suit, this Office, consistent with its standard practice, sought to resolve these issues without litigation.
On March 29, 2019, the day after the HUD charge was issued, a judge in the Southern District of New York approved the settlement of a private litigation that addressed certain of the issues raised in the HUD charge, in National Fair Housing Alliance et al. v. Facebook, Inc., 18 Civ. 2689. Although that settlement reduced the potentially discriminatory targeting options available to advertisers, thus overlapping with some of the issues raised in the complaint the Justice Department files today, it did not resolve other problems raised in the Department’s complaint―Facebook’s discriminatory delivery of housing ads through machine-learning algorithms. The U.S. Attorney’s Office for the Southern District of New York had filed a Statement of Interest in support of the National Fair Housing Alliance case on August 17, 2018, arguing that the Communications Decency Act does not shield Facebook from liability for the delivery of housing ads.
U.S. Attorney Damian Williams and Assistant Attorney General Clarke thanked the Department of Housing and Urban Development for its efforts in the investigation.
The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. More information about the U.S. Attorney’s Office for the Southern District of New York is available at www.justice.gov/usao-sdny. Individuals who believe they have been victims of housing discrimination may submit a report to the U.S. Attorney’s Office for the Southern District of New York online at https://www.justice.gov/usao-sdny/civil-rights or by telephone at (212) 637-0840; may submit a report online to the Department of Justice atwww.civilrights.justice.gov; or may contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov.
The case is being handled by the Office’s Civil Rights Unit in the Civil Division. Assistant U.S. Attorneys Ellen Blain, David J. Kennedy, Jacob Lillywhite, and Christine S. Poscablo filed the case.
U.S. Attorney’s Office hosts roundtable to combat sexual harassment in housingRead the Press Release
CINCINNATI – The U.S. Attorney’s Office for the Southern District of Ohio and the Department of Justice’s Civil Rights Division hosted a roundtable today for community organizations to discuss the problem of sexual harassment in housing, announced U.S. Attorney Kenneth L. Parker.
U.S. Attorney Parker is asking anyone in the public who has witnessed or experienced sexual harassment by a landlord, property manager, maintenance worker, or anyone with control over housing to report that conduct to the Department of Justice.
The roundtable event included state and local fair housing agencies and numerous community organizations. Assistant United States Attorneys Ebunoluwa Taiwo (Criminal Division) and Michael Downey (Civil Division) and Trial Attorney Lauren Marks (Civil Rights Division, Housing and Civil Enforcement Section) outlined for the audience the unique roles the Civil Rights Division and U.S. Attorney’s Office play in enforcing the Fair Housing Act.
The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. For example, it is illegal for landlords to request sexual favors in exchange for reduced rents or making necessary repairs, to make unrelenting and unwanted sexual advances to tenants, or to evict tenants who resist their sexual overtures.
“My office is working closely with the Civil Rights Division to ensure that victims experiencing sexual harassment or who have previously experienced sexual harassment in housing in the past know how to connect with federal resources,” said U.S. Attorney Kenneth L. Parker. “Sexual harassment in housing is illegal, and we stand ready to investigate such allegations and pursue enforcement actions where appropriate.”
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country.
The Initiative has resulted in lawsuits filed across the country alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims.
U.S. Attorney Parker encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling 844-380-6178 or emailing [email protected].
Individuals who believe they may have been victims of discrimination may also provide information to the U.S. Attorney’s Office using the referral form at https://www.justice.gov/usao-sdoh.
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U.S. Attorney Jacqueline C. Romero Names Leadership TeamRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced today a new executive leadership team to lead the Office’s enforcement mission.
“This seasoned leadership team of career public servants will bring to bear an extraordinary breadth and depth of experience and judgment to meet the threats our communities face. Whether addressing gun violence, the flow of fentanyl, opioids and other dangerous drugs, domestic and international terrorism, ruinous financial fraud and schemes, corrupt officials, or the exploitation of our vulnerable communities, each member of this team has dedicated their professional life to seeking and doing justice with integrity and impartiality. Always seeking to do the right thing, the right way, and for the right reasons, they will continue to vigorously and tirelessly work together to protect our communities and to seek justice for victims,” U.S. Attorney Romero said.
Ms. Romero named Assistant U.S. Attorney Nelson S.T. Thayer, Jr. as First Assistant U.S. Attorney. Mr. Thayer joined the Justice Department’s Civil Rights Division in 1993 through the Attorney General’s Honors Program. As a Trial Attorney in the Division’s Criminal Section, he investigated and tried hate crime and law enforcement brutality cases across the country, including U.S. v. Davis, the first capital civil rights prosecution and conviction. In 1998, Mr. Thayer joined the Office as an Assistant U.S. Attorney, prosecuting a wide variety of crimes as a member of the Narcotics Unit, and in 2002, transferred to the New Jersey U.S. Attorney’s Office, where he served as a line prosecutor and then as Deputy Chief of its public corruption unit. In 2005, Mr. Thayer took a leave of absence to prosecute war crimes at the International Criminal Tribunal for the former Yugoslavia in The Hague, where he spent six years prosecuting and convicting at trial eight high-level Bosnian Serb military commanders for their roles in the 1995 genocide of over seven thousand Bosnian Muslim men and boys in Srebrenica, the largest massacre on European soil since The Holocaust. Upon returning to the New Jersey U.S. Attorney’s Office in 2011, Mr. Thayer served as Attorney-in-Charge of the Trenton branch office, then as Deputy U.S. Attorney, responsible for overseeing the office’s mission in New Jersey’s twelve middle and southern counties. In 2015, Mr. Thayer returned to the Office, where he served in the National Security and Cyber Crime unit. Mr. Thayer has received numerous Department of Justice and agency awards, including the Department of Justice Director’s Award twice, the Organized Crime and Drug Enforcement Task Force Director’s Award, the U.S. Immigration and Customs Enforcement Director’s Award, and the Department of Justice John Marshall Award. Mr. Thayer earned a B.A., cum laude with Distinction in the Major, from Yale University, and his J.D. as a Public Interest Scholar from the University of Pennsylvania Law School.
Ms. Romero named Assistant U.S. Attorney Richard P. Barrett as Chief of the Criminal Division. Mr. Barrett joined the Office in 1990, and has served in a variety of supervisory positions, including Chief of the Firearms unit; Deputy Chief of the Criminal Division for Violent Crime, Firearms and Narcotics; and Chief of the Corruption, Civil Rights and Labor Racketeering unit. Prior to joining the Office, Mr. Barrett served as an Assistant District Attorney with the Philadelphia District Attorney’s Office for five years in the Rape Prosecution unit. Mr. Barrett has prosecuted and tried numerous notable public corruption cases, and recently received the Department of Justice’s John Marshall Award for his work in United States v. Linda Weston, at al. Weston and her four co-defendants were convicted of racketeering and historically significant violations of the Shepard/Byrd/Hate Crime Act for targeting mentally disabled victims over a period of ten years while stealing their disability and Social Security payments; beating them; confining them in locked closets, basements, and attics; depriving them of adequate food and medical care, and directly causing the deaths of two, who died while in captivity. Mr. Barrett is also an Adjunct Professor at Temple University School of Law, where he teaches courses in Corruption Law and Policy, International Criminal Law, and Trial Advocacy. He is the co-author of Lessons of Yugoslavia Rape Trials: A Role for Conspiracy Law in International Tribunals, 88 Minnesota Law Review 30 (2003). Mr. Barrett earned a B.A. from Temple University, and his J.D. from Temple University School of Law, where he was on the Law Review.
U.S. Attorney Romero also named two veteran prosecutors in the Office as Deputy Criminal Chiefs who will report to Mr. Barrett.
U.S. Attorney Thomas R. Perricone was named as Deputy Chief of the Criminal Division for Narcotics and Violent Crime. Mr. Perricone joined the Office in 1994, most recently serving as Chief of the National Security and Cyber Crime unit since 2018, and is the Office’s Anti-Terrorism Advisory Council Coordinator. He previously served as Chief of Narcotics and Organized Crime from 2005 to 2018. Mr. Perricone has prosecuted and tried numerous significant cases in the Office, including complex fraud, narcotics, and violent crime, including murder for hire, and received the Department of Justice’s Director’s Award. Prior to joining the Office, Mr. Perricone was an Assistant District Attorney in the Philadelphia District Attorney’s Office for eleven years, the last four of which were in the Homicide unit. For the past fifteen years, Mr. Perricone has also been an Adjunct Professor at the University of Pennsylvania Law School, teaching Trial Advocacy and coaching its Mock Trial Team. Mr. Perricone has also been an instructor at the National College of District Attorneys and at the National Advocacy Center. He earned a B.A. from Princeton University and his J.D. from the University of Pennsylvania Law School.
Ms. Romero named Assistant U.S. Attorney Christine E. Sykes as Deputy Chief of the Criminal Division for White Collar Crime. Ms. Sykes joined the Office in 1997, serving in the Organized Crime Strike Force for eleven years. She has most recently served as the Deputy Chief of the National Security and Cyber Crime unit. Ms. Sykes previously served for eight years as Deputy Chief of the Criminal Division for Narcotics, Organized Crime, and Violent Crime, and as Senior Litigation Counsel. Ms. Sykes has prosecuted numerous organized criminal enterprises, including Philadelphia La Cosa Nostra, outlaw motorcycle gangs, national and international narcotics traffickers and money launderers, and murder for hire conspiracies. Ms. Sykes has received the Attorney General Award for Special Achievement, and the FBI Director’s Award, among others. Ms. Sykes began her career with the Department of Justice in 1992 as an Honors Attorney in the Criminal Division’s Narcotic and Dangerous Drugs Section, and then served as an Assistant United States Attorney in the District of Columbia. She earned her B.A. from Pennsylvania State University, and her J.D. from Temple University School of Law.
Assistant U.S. Attorney Gregory David will continue to serve as Chief of the Civil Division. Prior to his selection as Civil Chief in 2018, Mr. David led several significant civil cases on behalf of the Office, including a multi-district False Claims Act investigation that resulted in a $150 million settlement with Amedisys, the largest DOJ recovery ever against a home health company. Mr. David has been involved in numerous other affirmative civil enforcement resolutions, and has also defended the United States in a variety of different cases that the Office handles. Mr. David is a member of the Civil Chief’s Working Group, a component of the Attorney General’s Advisory Committee, and also chairs its Frauds Subcommittee. Mr. David earned a B.A. with high distinction from the University of Virginia and his J.D., magna cum laude, from the University of Pennsylvania Law School, where he was a senior editor of the Law Review and Order of the Coif. He began his legal career serving as a law clerk for the Honorable Anthony J. Scirica, Chief Judge of the United States Court of Appeals for the Third Circuit, and then worked as a litigator for the Philadelphia law firm Hangley Aronchick Segal Pudlin & Schiller before joining the Office.
Two experienced Deputy Civil Chiefs will continue to report to Mr. David
Susan R. Becker is the Deputy Chief for Defensive Litigation. She joined the Office in 2002, and has served as Deputy Chief since 2016. She has taught numerous appellate writing classes at the National Advocacy Center and regularly teaches deposition skills and tort law programs for the Pennsylvania Bar Institute. Prior to joining the Office, Ms. Becker clerked for the Honorable Harvey Bartle, III, U.S. District Court Judge for the Eastern District of Pennsylvania, then practiced labor and employment law at Ballard Spahr, LLP. Ms. Becker earned a B.A. from Williams College and her J.D. from George Washington Law School.
Charlene Keller Fullmer is the Deputy Chief for Affirmative Litigation. Ms. Fullmer joined the Office in 2007, and has served as Deputy Chief since 2014. Ms. Fullmer led the team that investigated off-label promotion by Johnson & Johnson and its subsidiary Janssen Pharmaceuticals, resulting in a $2.2 billion global settlement, the largest settlement for a single drug. Ms. Fullmer also served on the team that investigated off-label promotion and kickback allegations against Pfizer, leading to a $2.3 billion civil and criminal settlement, at the time the largest health care fraud settlement in DOJ’s history. For these efforts, Ms. Fullmer was awarded the Attorney General’s Award for Fraud Prevention, among others. She is also the recipient of the Attorney General Award for Exceptional Service. Ms. Fullmer began her federal service career in the Honors Program in 1996, and served as an Attorney Advisor for the FBI Office of Professional Responsibility, followed by six years in private practice at Duane Morris, LLP. Ms. Fullmer earned a B.A., cum laude, from Lehigh University, and her J.D., cum laude, from Temple University School of Law, where she was on the Law Review.
Two Sentenced to Prison for Roles in Destruction of Energy FacilityRead the Press Release
CHARLESTON, W.Va. – Two men were sentenced to prison today for aiding and abetting the destruction of an energy facility, a known mine located across Boone and Lincoln counties. Christopher Priestley, 44, of Boone County, was sentenced to one year in prison while Earnest Wriston, 56, of Ohio, was sentenced to two years in prison. Both face three years of supervised release after their prison terms.
According to court documents and statements made in court, Priestley, of Seth, and Wriston, of Sidney, Ohio, each admitted to working with others to steal multiple pieces of specialized mining equipment from the known mine in 2019. These thefts forced the mine to shut down for a period of two weeks as the mine was unable to function without the stolen pieces of equipment. The thefts also resulted in hundreds of thousands of dollars of damage to the mine.
United States Attorney Will Thompson made the announcement and commended the investigative work of the West Virginia State Police and the Federal Bureau of Investigation (FBI).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentences. Assistant United States Attorney Kathleen Robeson prosecuted the cases.
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 Nos. 2:21-cr-219 and 2:21-cr-269.
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Two of Three Defendants Who Kidnapped A Postal Carrier Are Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Mark Rogers, 39, and Joseph Way a/k/a Gus, 36, both of Rochester, NY, who were convicted of kidnapping a federal employee, were sentenced by U.S. District Judge Frank P. Geraci, Jr. Rogers was sentenced serve 210 months in prison and Way was sentenced to serve 168 months in prison. A third defendant, Tashara Levans, who was also convicted of kidnapping a federal employee, is scheduled to be sentenced July 8.
Assistant U.S. Attorney Robert A. Marangola, who handled the case, stated that on November 16, 2019, in the area of Second Street and Central Park in Rochester, the defendants kidnapped a U.S. Postal Service mail carrier while she was delivering mail. Rogers and Way confronted the mail carrier about a package she delivered to them. The package did not contain cocaine, which Rogers and Way were expecting, and the two men accused the mail carrier of taking the narcotics. Rogers and Way directed the mail carrier to a vehicle driven by Rogers’ girlfriend Tashara Levans. Over the next two hours, Levans drove Rogers and Way as they threatened to shoot and kill the mail carrier and her children if she did not provide either the cocaine, they believed she had stolen, or $70,000, which was the street value of the cocaine. Eventually, the mail carrier was released unharmed.
Today’s sentencings are the result of an investigation by U.S. Postal Inspection Service, under the direction of Inspector-in-Charge Ketty Larco-Ward, Boston Division, and the Rochester Police Department, under the direction of Interim Chief David Smith.
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Two Huntington Residents Sentenced to Prison for Roles in Multi-State Drug RingRead the Press Release
HUNTINGTON, W.Va. – Two Huntington residents were sentenced to prison today for federal drug crimes. Erica Antoinette Kirker, 35, was sentenced to seven years and six months in prison, to be followed by five years of supervised release. Marcus Allen Johnson, 37, was sentenced to two years of prison to be followed by one year of supervised release.
According to court documents and statements made in court, on April 5, 2021, Kirker possessed approximately 1.2 pounds of methamphetamine, 138 grams of fentanyl, and over $84,000 in cash at her Third Avenue residence. Kirker admitted to placing the items in a vehicle and parking the vehicle in a parking garage in downtown Huntington. Investigators conducted a search of the vehicle on that date and seized the methamphetamine, fentanyl, and cash. Kirker admitted that she intended to sell the drugs and that the currency constituted proceeds from prior drug sales. Kirker pleaded guilty to possession with intent to distribute 50 grams or more of methamphetamine.
Johnson admitted that on June 5, 2021, he used a telephone to assist a co-conspirator involved in cocaine sales in Huntington. Johnson admitted that he was contacted and enlisted by the co-conspirator to find purchasers for kilogram quantities of cocaine. During the calls, Johnson agreed to market the cocaine to prospective purchasers. Johnson pleaded guilty to using a communication facility to facilitate a felony drug offense.
Kirker and Johnson are among 18 indicted individuals who have all pleaded guilty after a long-term investigation disrupted a multi-state drug trafficking organization (DTO) that had distributed large amounts of methamphetamine, fentanyl, cocaine, oxycodone, heroin, and cocaine base, also known as “crack.”
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of the Cabell County Sheriff’s Department, the Hurricane Police Department and the Marshall University Police Department with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans prosecuted the case.
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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. 3:21-cr-109.
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Two Former LMPD Officers Plead Guilty to Conspiracy to Violate Civil Rights; One Also Pleads Guilty to Cyberstalking ConspiracyRead the Press Release
Louisville, KY – Two former Louisville Metropolitan Police Department (LMPD) officers charged with conspiring to violate the civil rights of Louisville pedestrians through the arbitrary use of force pled guilty in federal court today. One of them also pled guilty to engaging in a cyberstalking conspiracy to hack computer applications for compromising photographs of female victims and then using those photographs to extort additional compromising photographs from the victims.
Bryan Andrew Wilson, 36, and Curt Flynn, 40, both pled guilty today to one count of conspiracy to violate civil rights in violation of Title 18, United States Code, Section 241.
According to court documents, from August 2018 through September 2019 and while working as detectives with the LMPD Ninth Mobile Division, Wilson and Flynn engaged in a conspiracy to violate the civil rights of numerous civilians in Louisville through oppression and intimidation. As part of the conspiracy, Wilson, Flynn, and others, while on duty, dressed in clothing identifying them as LMPD officers, and driving unmarked LMPD vehicles, assaulted and attempted to assault civilian John Does and Jane Does by throwing large beverages, including the container and/or its contents, at the civilians. Wilson and Flynn would obtain the beverages, bring them into their cars, and then, after identifying a target, Wilson, Flynn, or another driver of the unmarked LMPD vehicle, would slow down and drive closer to the sidewalk or the edge of the street where the civilian was located. At various points Wilson or Flynn would announce on the police radio words to the effect of, “someone was thirsty” or “thirsty fam,” and then Wilson or Flynn would throw the beverage, including the container and/or its contents, at the targeted civilian, and the driver of the unmarked LMPD vehicle would then accelerate the car and flee the scene.
On many occasions, the civilian was hit with the beverage, and on at least one occasion, a civilian was knocked down to the ground from the impact of being hit with the beverage and container. Wilson and Flynn would record or instruct others to record their actions on video using their cell phones, sometimes from inside the car from which the beverage was thrown, and sometimes from an LMPD car following closely behind the car from which the beverage was thrown. Wilson subsequently displayed these videos to other members of the LMPD Ninth Mobile Unit.
Wilson also pled guilty today in a separate case to one count of conspiracy to commit cyberstalking in violation of Title 18, United States Code, Sections 371 and 2261A(2)(B). According to court documents in Wilson’s second case, between September and October 2020, Wilson conspired with others to use an electronic communication service with the intent to harass and intimidate another person, and to engage in conduct that caused substantial emotional distress to another person. As part of the conspiracy, Wilson identified computer applications belonging to women and hacked those computer applications and stole compromising photographs, videos, and other information. Wilson then contacted the women via text messages and threatened to publish the stolen compromising photographs and videos unless those women provided additional compromising material to him. Throughout the course of the cyberstalking conspiracy, Wilson had at least six female victims from whom he stole compromising photographs, videos and other information and attempted to extort additional material on threat of publication.
Wilson and Flynn are both scheduled to be sentenced on September 30, 2022. Wilson faces a combined maximum penalty of 15 years in prison on both cases. Flynn faces a maximum penalty of 10 years in 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.
United States Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Jodi Cohen of the FBI’s Louisville Field Office made the announcement.
The Federal Bureau of Investigation is investigating the cases.
Assistant U.S. Attorneys David Weiser and Stephanie Zimdahl are prosecuting the cases.
Two Detained on Meth Trafficking ChargesRead the Press Release
PROVIDENCE – Two men were detained in federal custody today, following their arraignment in U.S. District Court in an ongoing Rhode Island FBI Safe Streets Task investigation that has resulted in the seizure of more than one pound of methamphetamine to date, announced United States Attorney Zachary A. Cunha.
Charles Bersch, 38, of Providence, RI, and Peter Walkovich, 37, of Pepperell, MA, are charged by way of federal criminal complaints with conspiracy to possess with intent to distribute 50 grams or more of methamphetamine and possession with intent to distribute 50 grams or more of methamphetamine.
According to charging documents, it is alleged that, on May 23, 2022, at the direction of members of the Safe Streets Task Force, a vehicle carrying Bersch and Walkovich was stopped in Cranston; allegedly inside the vehicle were three backpacks and a camouflage bag, each containing, among other items, significant quantities of crystal meth. It is alleged that during the traffic stop and during a subsequent court-authorized search of the vehicle law enforcement seized a total of 491.9 grams of crystal meth; approximately 75 grams of fentanyl; nearly 48 grams of fentanyl laced cocaine; and more than $21,700 in cash.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The FBI Safe Streets Task Force consists of agents and law enforcement officers from the FBI, Rhode Island State Police, the Providence, Cranston, Woonsocket, Pawtucket, West Warwick, and Central Falls Police Departments, and the U.S. Marshals Service.
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Two Convicted Felons from Shreveport Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that two men from Shreveport were sentenced today by Chief United States District Judge S. Maurice Hicks, Jr. for illegally possessing firearms.
Damontra Vonravious Mandigo, 22, was sentenced to 87 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. Shreveport Police Department officers were patrolling an area in Shreveport on March 15, 2021 and observed a vehicle parked in the driveway of a vacant residence. Officers made contact with the individual in the driver’s seat, later identified as Mandigo. A search was conducted of his vehicle and law enforcement officers found a Zastava 7.62x39mm pistol. Officers were aware that Mandigo was a convicted felon and prohibited from possessing any firearms or ammunition. He was arrested and later admitted to agents that the firearm was his. Mandigo’s prior felony convictions were for illegal use of a weapon in 2011, and attempted possession of a firearm by a convicted felon in 2018.
Tramarciea Jovan Ruffins a/k/a “JJ,” 29, was sentenced to 50 months in prison, followed by 3 years of supervised release, for being a convicted felon in possession of a firearm. Ruffins was indicted by a federal grand jury on October 13, 2021 and he pleaded guilty to the charge on February 28, 2022. Officers with the Shreveport Police Department and agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) attempted to make contact with Ruffins and another individual in a vehicle in the Cooper Road area of Shreveport on March 11, 2021. When the driver saw police, he drove off and fled the scene. Police chased the vehicle until it crashed. Both Ruffins and the driver jumped out after the crash and fled on foot. Police used K-9 dogs to locate them hidden in an exterior utility closet on Tulsa Street in Shreveport. Ruffins and the driver were arrested and advised of their Miranda rights. Officers searched the area and located firearms loaded with ammunition against the side wall of the residence where they were hiding. Ruffins admitted to law enforcement officers that he had been in possession of the Smith and Wesson .45 caliber pistol. Ruffins was previously convicted of aggravated battery in 2014, and felon in possession of a firearm in 2018.
Both of these cases were investigated by the ATF and Shreveport Police Department and were prosecuted by Assistant U.S. Attorney J. Aaron Crawford.
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Three Defendants who Participated in Kickback and Bribery Schemes Involving Federal Housing Grant Programs Sentenced in Federal CourtRead the Press Release
CHARLESTON, SOUTH CAROLINA — Charles “Chuck” Willys Mincey, Jr., 65, of Flora, Mississippi, Karl Henry Zerbst, Jr., 62, of Mount Pleasant,, and Brian Daniel Herndon, 46, of Summerville, were sentenced in federal court after pleading guilty for their roles in various kickback and bribery schemes involving federal housing grant programs in the Charleston area.
Evidence presented to the Court showed that from December of 2014 until at least March of 2019, Mincey and Zerbst participated in a scheme to unlawfully profit from their work on certain Affordable Housing Program grants disbursed by the Federal Home Loan Bank of Atlanta to low income households of United States Military veterans and spouses of veterans for house rehabilitation.
In 2014, Mincey approached Zerbst to be an intermediary for grants for which Mincey and his company, Palmettos at Folly, was the designated contractor. As an intermediary, it was Zerbst’s role to locate prospective program participants, hire and manage the contractors conducting the rehabilitative work, and hire and manage third-party inspectors to inspect the work and assess it for cost reasonableness. As part of their arrangement, Mincey and Zerbst agreed to split the profits they made from the grants 50/50. This agreement was in violation of the express rules of the grant program, which prohibited an intermediary from receiving more than 12% of the grant funds, and also prohibited any conflict of interests or appearance of a conflict of interest with any other party to the grant application.
During the relevant time period, the Federal Home Loan Bank of Atlanta sent the grant funds to community member banks, who then disbursed the funds to Zerbst’s company KHZ. Zerbst retained his intermediary fees and then wrote checks for construction costs to Mincey’s company, Palmetto’s at Folly. Mincey then funneled grant money back to Zerbst, by writing checks from Palmetto’s at Folly to Charleston Strategic Consultants LLC, a company controlled by Zerbst. In total, Mincey funneled at least $246,689.99 in unlawful kickbacks to Zerbst.
Evidence showed that Mincey also participated in a bribery scheme with a City of Charleston employee Brian Herndon in order to win construction bids for housing projects funded by the United States Department of Housing and Urban Development. As a Project Manager for housing rehabilitation at the Charleston Department of Housing and Community Development, Herndon had access to non-public information regarding cost estimates generated for each project grant, which he shared with Mincey in exchange for cash payments between $200 and $500. In total, Herndon accepted at least $15,000 in bribe money.
Senior United States District Court Judge Margaret B. Seymour sentenced all three individuals. Mincey was sentenced to eight months in federal prison, followed by a three-year term of court-ordered supervision, and ordered to pay $91,990 in restitution. Zerbst was sentenced to five years of probation, and paid $246,689.99 in restitution prior to his sentencing. Herndon was sentenced to six months in prison, followed by a year of court-ordered supervision. Judge Seymour also granted a money judgment against Herndon in the amount of $15,000, equal to the amount of bribe money that Herndon received from Mincey from 2014 to 2020. There is no parole in the federal system.
The two cases were investigated by the Federal Housing Finance Agency, Office of Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorney Allessandra Stewart prosecuted the cases.
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Tax Centers of America Franchisee Sentenced to 18 Months in Prison for Preparing False Tax ReturnsRead the Press Release
PITTSBURGH, PA – The owner and operator of a Pittsburgh-area tax preparation business has been sentenced in federal court to 18 months’ incarceration and two years’ supervised release on his conviction of Aiding or Assisting in the Preparation or Filing of False Federal Income Tax Returns, United States Attorney Cindy K. Chung announced today.
United States District Judge Marilyn J. Horan imposed the sentence on John C. Thornton, age 75, of Gibsonia, Pennsylvania.
According to information presented to the court, Thornton owned and operated Tax Centers of America franchises in Pittsburgh. Between 2012 and 2017, IRS investigators uncovered high pattern of personal income tax returns containing Schedule C forms. Investigators uncovered falsification of Schedule C forms prepared and filed by Thornton and tax preparers at his business.
Judge Horan also ordered Thornton to make restitution in the amount of $511,718.50.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
United States Attorney Chung commended the Internal Revenue Service-Criminal Investigation for the investigation leading to the successful prosecution of Thornton.