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26 July 2022
MS-13 Member Sentenced to Prison for Racketeering Conspiracy Involving MurderRead the Press Release
An MS-13 gang member was sentenced today to 35 years in prison for his murder of a 19-year-old in 2015.
According to court documents and evidence presented at the trial of three co-defendants, Juan Garcia-Gomez, aka Scooby, 26, of El Salvador, conspired to participate in the affairs of Mara Salvatrucha, a violent criminal gang also known as MS-13, founded in Los Angeles and active in numerous states across the United States, as well as in El Salvador, Central America, and Mexico. MS-13 is governed by a core set of rules, including a standing order to kill rival gang members and a strict rule against cooperating with law enforcement. MS-13 is organized into a series of sub-units, or “cliques,” that operate in specific geographic locations, and each clique is typically controlled by a single leader, sometimes known as the “First Word.” Two cliques that were active in and around Hudson County, New Jersey, were the Pinos Locos Salvatrucha clique, of which Garcia-Gomez was a member/associate, and the Hudson Locos Salvatrucha clique.
Based on court documents, Garcia-Gomez’s plea agreement, and evidence presented at the trial of three co-defendants, in July 2015, Jose Urias-Hernandez, then 19 years old, was shot and killed execution-style by Garcia-Gomez with a single shot to the back of his head as he entered his home. Garcia-Gomez participated in the murder because he was ordered by MS-13 leadership to commit the murder to achieve membership in the gang.
“Due to the dedicated efforts of the Department of Justice and our law enforcement partners, Garcia-Gomez and his fellow gang members will no longer be able to victimize this community,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “The Criminal Division and our law enforcement partners will continue to pursue MS-13 gang members who take the lives of others and prey on the communities through violence and intimidation and will not stop in our pursuit of justice for the victims of this violent gang.”
“Garcia-Gomez committed a brutal and violent crime to gain membership in a criminal organization known for its brutality and violence,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “He wasn’t even out of his teens when he complied with MS-13’s orders and snuffed out another young man’s life, ruining the lives of his victim’s family and friends and ending any chance at a decent life for himself. This sentence will keep this violent criminal off of our streets.”
“Garcia-Gomez and his fellow gang members plagued their community with violence,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “The FBI, in hand with our law enforcement partners, will continue to pursue those offenders carrying out brutal violence in our communities. This action shows the FBI’s commitment to dismantling these organized criminal enterprises and keeping the communities we serve safe.”
“Today’s sentencing puts not only a violent murderer behind bars, but a confirmed gang member, narcotics trafficker, and extortioner: a serious threat to public safety,” said Acting Deputy Director Patrick J. Lechleitner of the U.S. Immigration and Customs Enforcement. “We will use every tool available to investigate transnational criminals, like this defendant, whose lack of humanity is profound. Our officers and special agents will continue to work with our law enforcement partners to bring criminals to justice, while focusing on getting victims the assistance they need.”
In addition to Garcia-Gomez, nine defendants were charged in this investigation against MS-13 in New Jersey, including Jose Gimenez-Lobos, aka Infernal, aka Terrible, 31, of El Salvador, and Jose Rivera-Robles, aka Layo, 36, of El Salvador. One defendant, Christian Linares-Rodriguez, aka Donkey, 42, is a high-ranking MS-13 member who is currently incarcerated in El Salvador and is awaiting extradition to the United States. Three other defendants have been convicted at trial in November 2021, including Juan Pablo Escalante-Melgar, aka Humilde, Elmer Cruz-Diaz, aka Locote, and Oscar Sanchez-Aguilar, aka Snappy, and are awaiting sentencing. At sentencing, Esclante-Melgar, Cruz-Diaz, and Sanchez-Aguilar each face a mandatory minimum sentence of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, Immigration and Customs Enforcement - Enforcement and Removal Operations Newark Field Office, Homeland Security Investigations the Hudson County Prosecutors Office, and the West New York Police Department investigated the case.
Trial Attorney Matthew K. Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Desiree Grace for the District of New Jersey prosecuted the case.
MS-13 Member Sentenced to 35 Years in Prison for Racketeering Conspiracy Involving MurderRead the Press Release
NEWARK, N.J. – An MS-13 gang member was sentenced today to 420 months in prison for his execution-style killing of a man in 2015, U.S. Attorney Philip R. Sellinger and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division announced.
Juan Garcia-Gomez, aka “Scooby,” 26, of El Salvador, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to one count of an indictment charging him with racketeering conspiracy. Judge Cecchi imposed the sentence today in Newark federal court.
“Garcia-Gomez committed a brutal and violent crime to gain membership in a criminal organization known for its brutality and violence,” U.S. Attorney Sellinger said. “He wasn’t even out of his teens when he complied with MS-13’s orders and snuffed out another young man’s life, ruining the lives of his victim’s family and friends and ending any chance at a decent life for himself. This sentence will keep this violent criminal off of our streets.”
“Due to the dedicated efforts of the Department of Justice and our law enforcement partners, Garcia-Gomez and his fellow gang members will no longer be able to victimize this community,” Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division said. “The Criminal Division and our law enforcement partners will continue to pursue MS-13 gang members who take the lives of others and prey on the communities through violence and intimidation and will not stop in our pursuit of justice for the victims of this violent gang.”
“Cases like this are a reminder of the deadly brutality involved with drug activity,”Acting Special Agent in Charge Terence Reilly said. "We aggressively pursue MS-13 activity because of the high threat they pose to the citizens of our area. Long prison terms are the one sure method for getting these dangerous criminals off our streets."
According to court documents in this and other cases, and the evidence at the trial of Garcia-Gomez’s co-defendants:
Garcia-Gomez conspired to participate in the illegal activities of Mara Salvatrucha, a violent criminal gang also known as MS-13, founded in Los Angeles and active in numerous states, including New Jersey, as well as in El Salvador, Central America, and Mexico. MS-13 is governed by a core set of rules, including a standing order to kill rival gang members and a strict rule against cooperating with law enforcement. MS-13 is organized into a series of sub-units, or “cliques,” that operate in specific geographic locations, and each clique is typically controlled by a single leader, sometimes known as the “First Word.” Two cliques active in and around Hudson County, New Jersey, were the Pinos Locos Salvatrucha clique, of which Garcia-Gomez was a member/associate, and the Hudson Locos Salvatrucha clique.
In July 2015, Jose Urias-Hernandez, then 19, was shot and killed execution-style by Garcia-Gomez with a single shot to the back of his head as he entered his apartment building. Garcia-Gomez participated in the murder because he was ordered by MS-13 leadership to commit the murder to achieve membership in the gang. The victim was not a rival gang member.
In addition to murder, MS-13 members, including Garcia-Gomez, trafficked drugs and threatened witnesses to prevent cooperation with law enforcement, and others extorted a restaurant operating in the gang’s turf.
In addition to Garcia-Gomez, nine defendants were charged in New Jersey. Christian Linares-Rodriguez, aka “Donkey,” 42, is a high-ranking MS-13 member who is currently incarcerated in El Salvador and is awaiting extradition to the United States; the allegations against him are merely accusations, and he is presumed innocent unless and until proven guilty. All other defendants have been convicted, including Juan Pablo Escalante-Melgar, aka “Humilde,” Elmer Cruz-Diaz, aka “Locote,” and Oscar Sanchez-Aguilar, aka “Snappy,” who were convicted at trial in November 2021 and are awaiting sentencing. At sentencing, Esclante-Melgar, Cruz-Diaz, and Sanchez-Aguilar each face a mandatory minimum sentence of life in prison.
“Garcia-Gomez chose to take a young, innocent life to gain entrance to MS-13, a gang notorious for its senseless violence,” Special Agent in Charge Jason J. Molina for Homeland Security Investigations in Newark said. “With his callous action, he ended a life full of potential. With today’s sentence, he has discovered the consequences of his actions.”
“This senseless murder that took the life of a young man with no ties to gang life is typical of the brutality that we have come to expect from MS-13,” ICE-ERO Newark Field Office Director John Tsoukaris said. “Thanks to the collaborative efforts of local, state and federal law enforcement, justice has been served here as well as the interests of community safety.”
“Mr. Garcia-Gomez deliberately executed a young man with the purpose of terrorizing the North Hudson community, hoping to earn the respect of some of the most dangerous criminals,” Hudson County Prosecutor Esther Suarez said. “Our office appreciates the commitment shared between local, state, and federal law enforcement partners to see that those responsible for violent attacks, such as this, are held accountable to the fullest extent of the law.”
In addition to the prison term, Judge Cecchi sentenced Garcia-Gomez to five years of supervised release.
U.S. Attorney Sellinger and Assistant Attorney General Polite credited special agents of the FBI, under the direction of Special Agent in Charge James E. Dennehy in Newark; officers of the Immigration and Customs Enforcement - Enforcement and Removal Operations Newark Field Office, under the direction of Field Office Director John Tsoukaris; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez:, and investigators of the West New York Police Department under the direction of Deputy Chiefs Santiago Cabrera and Alejandro De Rojas, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Desiree Grace of the District of New Jersey and Trial Attorney Matthew J. Hoff of the Criminal Division’s Organized Crime and Gang Section.
Defense counsel: Anthony Iacullo Esq., Nutley, New Jersey
Lower Brule Man Sentenced for Domestic AssaultRead the Press Release
United States Attorney Alison Ramsdell announced that a Lower Brule, South Dakota, man convicted of Assault with a Dangerous Weapon, Assault Resulting in Substantial Bodily Injury to an Intimate Partner, and Assaulting, Resisting, or Impeding a Federal Officer was sentenced on July 25, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
William Eagle Thunder, Jr., age 30, was sentenced to seven years and three months in federal prison, followed by three years of supervised release, and ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $300.
Eagle Thunder was indicted by a federal grand jury on December 14, 2021. He pled guilty on April 28, 2022.
The conviction stemmed from incidents that occurred on multiple occasions between August and October 2021, in Lower Brule, wherein Eagle Thunder repeatedly assaulted his girlfriend with a metal object and shod feet, causing serious bodily injury. Additionally, on September 11, 2021, a law enforcement officer was called to a residence following a report that Eagle Thunder was present. While attempting to arrest Eagle Thunder, he pushed the officer to the ground and took off from the scene on foot.
This case was investigated by the Bureau of Indian Affairs – Office of Justice Services, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Eagle Thunder was immediately remanded to the custody of the U.S. Marshals Service.
Lawrence Woman Sentenced to Prison for Identity TheftRead the Press Release
BOSTON – A Lawrence woman was sentenced on July 20, 2022 in connection with identity theft charges.
Alicia Isabel Matias De Jesus, 50, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to six months in prison and two years of supervised release. Marias De Jesus was also ordered to pay forfeiture and restitution of $22,904. On March 22, 2022, Matias De Jesus pleaded guilty to false representation of a Social Security number and theft of government money.
Matias De Jesus, who was born in the Dominican Republic and is not a United States Citizen, purchased identity documents of a United States citizen who resides in Puerto Rico. Matias De Jesus used the identity documents to obtain a motor vehicle license and benefits totaling over $22,000.
United States Attorney Rachael S. Rollins and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney David Tobin of Rollins’ Major Crimes Unit prosecuted the case.
The investigation was conducted by Homeland Security Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized investigative group comprising personnel from various state, local, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
The DBFTF is currently investigating suspected aliens who are believed to have obtained stolen identities of U.S. citizens born in Puerto Rico. The DBFTF has investigated individuals who have used stolen identities to obtain public benefits that they otherwise would not be eligible to receive, including Massachusetts Registry of Motor Vehicles identity documents, Social Security numbers, MassHealth benefits, public housing benefits, and/or unemployment benefits.
Latin Count Gang Member Convicted of Gang Related Activity Resulting in the Murders of a 16-Year Old and 33 Year-OldRead the Press Release
HAMMOND- Eduardo Luciano, 34, of Hammond, Indiana, a member of the Hammond faction of the Latin Counts, a criminal street gang which originated in Chicago, was found guilty following a 7-day jury trial presided over by United States District Court Chief Judge Jon E. DeGuilio, announced United States Attorney Clifford D. Johnson.
The jury found Luciano guilty of conspiracy to participate in racketeering activity, conspiracy to possess with intent to distribute and distribute cocaine and marijuana, and two counts of using a firearm to commit the murders of Lauren Calvillo (age 16) and Christopher White (age 33). The jury found that, as part of the racketeering conspiracy, Luciano was responsible for the murders of Lauren Calvillo and Christopher White and as part of the drug conspiracy, Luciano conspired to distribute or possess with intent distribute cocaine and marijuana.
The evidence at trial revealed that on June 29, 2015, Luciano and other gang members formulated a plan to shoot and kill members of the Latin Kings, a rival criminal street gang, who were attending a vigil on the 5500 block of Beal Street in Hammond, Indiana. After planning the shooting, gang members drove to the vicinity of the vigil where multiple shots were fired into the crowd. At the time of shooting, Christopher White (33), who was visiting family on Beal Street, was shot in front of the family member’s home, and later died. Lauren Calvillo (16) was shot and killed while on the front porch of her family’s Beal Street home.
Previously, co-defendant Latin Count member Ivan Reyes pled guilty to racketeering conspiracy and two counts of murder in aid of racketeering. Co-defendant Jeron Williams pled guilty to racketeering conspiracy and admitted his involvement in and responsibility for the Calvillo and White murders. Co-defendant Latin Count member Robert Loya pled guilty to racketeering conspiracy. All three are awaiting sentencing.
Luciano’s sentencing will be scheduled by separate order of the Court. Any specific sentence to be imposed will be determined by the District Court Judge after consideration of federal statutes and the United States Sentencing Guidelines.
This case is the result of the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives/High Intensity Drug Trafficking Area Task Force and the Hammond, Indiana Police Department, and this investigation has received substantial assistance from numerous law enforcement agencies including the Federal Bureau of Investigation/Gang Response Investigative Team Task Force, the Gary Police Department, the Indiana State Police, the East Chicago Police Department, and the Chicago Police Department. The case is being handled by Assistant United States Attorneys David J. Nozick, Caitlin M. Padula, and Kimberly L. Schultz.
This case is also 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.
Las Vegas Real Estate Professional Pleads Guilty to Tax EvasionRead the Press Release
A Nevada man pleaded guilty today to evading payment of taxes he owed to the IRS.
According to court documents and statements made in court, from approximately 2009 through 2019 Scott Lawrence owned and operated Turn Two Inc., a Nevada real estate company. In March 2010, the IRS levied Lawrence’s personal bank account to satisfy an existing tax debt he owed to the IRS. After learning of the IRS levy, Lawrence started taking steps to thwart the IRS’s collection efforts. He began depositing a small portion of his wife’s paycheck into the levied bank account and withdrew the remaining portion in cash. Beginning in 2011, Lawrence began depositing his wife’s entire paycheck and other earnings into a corporate bank account held by Turn Two, and used that account to pay most of his family’s personal living expenses. Lawrence also directed his attorney to pay taxes owed to the IRS on an intentionally overdrawn bank account and to send a materially misleading letter to the agency. In all, as a result of his evasive conduct, Lawrence owes more than $1.9 million in restitution to the IRS for his delinquent tax debt from 2005 through 2019.
Lawrence is scheduled to be sentenced on Jan. 26, 2023, and faces a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Patrick Burns and Boris Bourget of the Tax Division are prosecuting the case.
Lancaster County Man Sentenced to 87 Months’ Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania has announced that Jose Antonio Ramos a/k/a “One,” age 40, of Lancaster, Pennsylvania, was sentenced on July 14, 2022, by U.S. District Court Judge Christopher C. Conner to 87 months’ imprisonment for drug trafficking.
According to United States Attorney Gerard M. Karam, Ramos previously pleaded guilty to conspiracy to distribute and possess with intent to distribute 500 grams and more of cocaine hydrochloride and 5 grams and more of methamphetamine. Ramos was the Sergeant at Arms of the Infamous Ryders Outlaw Motorcycle Gang that was responsible for an extensive drug operation in Lancaster County.
The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation. Assistant United States Attorney Daryl F. Bloom prosecuted the case.
This case was 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.
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Kyle Man Sentenced for Assault on a Federal OfficerRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Kyle, South Dakota, man convicted of Assault on a Federal Officer was sentenced on July 7, 2022, by U.S. District Judge Jeffrey L. Viken.
Tex Janis, age 22, was sentenced to time already served, two years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Janis was indicted by a federal grand jury in January 2021 and pleaded guilty on March 11, 2022.
The conviction stemmed from Janis assaulting an on-duty Oglala Sioux Tribe Department of Public Safety officer who sustained injuries that required medical attention.
The case was investigated by the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Justice Department and National Labor Relations Board Announce Partnership to Protect WorkersRead the Press Release
The Justice Department’s Antitrust Division and the National Labor Relations Board (NLRB) signed a memorandum of understanding (MOU) today to strengthen the partnership between the two agencies to better protect competitive labor markets and ensure that workers are able to freely exercise their rights under the labor laws. By strengthening their partnership, the agencies also achieve the objectives of the President’s Executive Order on Promoting Competition in the American Economy just days after the Order’s one-year anniversary.
“Protecting competition in labor markets is fundamental to the ability of workers to earn just rewards for their work, to live out the American dream, and to provide for their families,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “By cooperating more closely with our colleagues in the NLRB, we can share information on potential violations of the antitrust and labor laws, collaborate on new policies and ensure that workers are protected from collusion and unlawful employer behavior. As the department noted in the amicus brief we submitted in the NLRB’s recent Atlanta Opera matter, we support the Board’s ongoing efforts to update its guidance to ensure that workers are properly classified under the labor laws. Protecting the right of workers to earn a fair wage is core to the work of both our agencies, and it will continue to receive extraordinary vigilance from the Antitrust Division.”
“Under the National Labor Relations Act (NLRA), workers have the right to organize to improve their pay and working conditions,” said NLRB General Counsel Jennifer Abruzzo. “When businesses interfere with worker organizing, either through creating structures designed to evade labor law or through anticompetitive practices, it hinders our economy and our democracy. This MOU will strengthen the federal government’s ability to effectively stop this kind of unlawful activity and, therefore, to better protect workers’ right to freely associate with one another to improve their wages and working conditions and to collectively bargain through freely chosen representatives.”
The Department of Justice and the NLRB share an interest in promoting open and competitive labor markets, including through protecting American workers from collusive or anticompetitive employer practices and unlawful interference with employees’ right to organize. Through greater coordination in information sharing, enforcement activity and training, the two agencies will maximize the enforcement of federal laws, including the labor laws under the NLRB’s jurisdiction and the antitrust laws enforced by the Justice Department’s Antitrust Division. In particular, this MOU will allow the two agencies to refer to each other, as appropriate, and to coordinate on policy, strategy and training.
Information about possible antitrust violations or potential anticompetitive activity should be reported to the Antitrust Division Citizen Complaint Center. To learn more about how to seek whistleblower protection under the Criminal Antitrust Anti-Retaliation Act, please go to https://www.whistleblowers.gov/complaint_page.
Workers who believe that their labor rights have been violated can call 1-844-762-6572 for assistance filing an unfair labor practice charge. Or they can contact their closest NLRB Field Office or submit a charge on the NLRB’s website.
Justice Department Commemorates the 32nd Anniversary of the Americans with Disabilities ActRead the Press Release
Today, the Department of Justice commemorates the 32nd anniversary of the Americans with Disabilities Act (ADA), the preeminent civil rights law requiring equal opportunity for people with disabilities. Recently, the ongoing COVID-19 pandemic and the opioid epidemic have exacted a steep toll on many people with disabilities and shed light on the continued urgency of ADA enforcement.
“The Americans with Disabilities Act embodies a national promise to eliminate discriminatory barriers and support full participation, community integration, independent living and economic self-sufficiency for people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue using this bedrock civil rights law to eliminate barriers and safeguard the rights of people with disabilities across the country.”
Promoting Web Accessibility
The COVID-19 pandemic has shown, for example, the vital importance of equal access to the web. This year, the department published guidance on the ADA requirements for website accessibility and announced it is also undertaking a rulemaking concerning standards for web accessibility for state and local government entities. The department’s enforcement efforts have removed barriers that prevented people with disabilities from booking vaccine appointments on the web and finding critical vaccine information. Since November 2021, the department has reached settlement agreements with CVS Pharmacy Inc., Hy-Vee Inc., The Kroger Co., Meijer Inc. and Rite Aid Corporation to ensure that people with disabilities can book COVID-19 vaccine appointments and obtain vaccine information online.
Warning About the Risks of Artificial Intelligence in Hiring
The department has also prioritized ensuring that state and local government employers do not use new technologies to discriminate against job applicants or employees with disabilities. In May, the department, partnering closely with the Equal Employment Opportunity Commission, issued guidance about disability discrimination when employers use artificial intelligence and other software tools, including algorithmic decision-making tools, to make employment decisions.
Ensuring Fair Treatment of People with Opioid Use Disorder
The department has also enforced the ADA to safeguard the rights of people with opioid use disorder (OUD) who are in treatment or recovery. In April, the department published guidance explaining how the ADA protects individuals with OUD from discrimination. The department is working to ensure that people in treatment and recovery have an equal opportunity to receive services and to participate in their communities and the workforce. For example:
- In February, the department filed a lawsuit against the Unified Judicial System of Pennsylvania, alleging that it prohibits or otherwise limits participants in its court supervision programs from using medication for OUD. And in March, the department entered into a settlement agreement to resolve similar allegations concerning Massachusetts’ drug courts.
- The department also issued a letter finding that the Indiana State Board of Nursing violated the ADA by denying a nurse the opportunity to participate in a rehabilitation program, required to reinstate her nursing license, because she takes medication for OUD.
- The department secured a settlement agreement with a Colorado-based employment, residential and social services program resolving allegations that the program denied admission to an individual because she takes medication for OUD.
Promoting Access to Transportation including Ridesharing Services
After filing a lawsuit in November, the department entered into a multi million-dollar settlement agreement with Uber Technologies Inc. Under the agreement, Uber committed to policy changes and will offer several million dollars in compensation to more than 65,000 Uber users who were charged discriminatory fees due to disability.
Fighting Segregation and Criminalization of People with Disabilities
Finally, the department continues to prioritize enforcement of the Supreme Court’s decision in Olmstead v. L.C., a landmark case ruling that the ADA prohibits unnecessary segregation of people with disabilities. The department’s enforcement of Olmstead has enabled thousands of people with disabilities to live in their homes and communities instead of in institutions. For example:
- In June, the department issued a letter finding that Maine unnecessarily institutionalizes children with mental health or intellectual and developmental disabilities in psychiatric hospitals, residential treatment facilities and a juvenile justice facility. In March, the department issued a letter finding that Colorado unnecessarily segregates adults with physical disabilities in nursing homes.
- The department also launched statewide Olmstead investigations in response to complaints. In May, the department opened an investigation into whether Kentucky unnecessarily segregates people with serious mental illness in the Louisville/Jefferson County Metro area in psychiatric hospitals and places them at risk of law enforcement encounters. The department is also investigating the Louisville/Jefferson County Metro Government and the Louisville Metro Police Department concerning their systems for responding to people experiencing behavioral health crises.
For more information about the ADA, please visit ada.gov or call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383). For more information on the Civil Rights Division, please visit justice.gov/crt.
Idaho Man Sentenced for Misusing National Health Service Corps Loan Repayment FundsRead the Press Release
POCATELLO – Steven L. Young, an Idaho man already incarcerated in Utah on unrelated charges, was ordered to repay $63,192.96 and sentenced to 15 months (which he has already served), and three years of supervised release for theft of government funds. Young also settled a parallel civil matter after admitting to violating the False Claims Act.
According to court records, Young was licensed as a physician assistant in Utah. He applied for and received a $50,000 payment as part of the National Health Service Corps Loan Repayment Program (NHSCLR), a program intended to recruit and retain healthcare professionals in eligible communities of need. As part of the program, healthcare professionals can receive award money to help them repay qualifying student loans.
Young received a NHSCLR payment on September 30, 2016. Prior to receiving the payment, he agreed to certain terms as part of his participation in the program. Young knowingly violated the terms of his agreement when he surrendered his medical license on June 28, 2016 and was fired from his job. Although he agreed to use the loan money to repay his eligible student loans, Young spent the money on ineligible expenses.
Young pleaded guilty to theft of government funds on March 30, 2022. At sentencing, Chief U.S. District Judge David C. Nye ordered Young to repay the $50,000 loan and $13,192.96 in accrued interest. The loan accrues interest if the obligations and requirements of the NHSCLR program are not met and the loan is not repaid.
U.S. Attorney Josh Hurwit, of the District of Idaho, made the announcement and commended the efforts of the U.S. Department of Health and Human Services, Office of Inspector General and the Health Resources and Services Administration, which led to charges.
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Husband and Wife Sentenced to Federal Prison for Their Involvement in Tax Fraud ConspiracyRead the Press Release
Tampa, Florida – U.S. District Judge Kathryn Kimball Mizelle has sentenced Christel Joseph to 30 months in federal prison for preparing false and fraudulent tax returns. Joseph had pleaded guilty on February 16, 2022.
According to court documents, Christel Joseph and her husband, Naeem Joseph, were involved in a conspiracy to prepare false tax returns by claiming fraudulent refunds and credits to which their taxpayer-clients were not entitled, including education tax credits, fuel tax credits, and dependent care credits. Between 2015 and 2016, the Josephs helped prepare and file fraudulent tax returns from Haines City, Florida and Roanoke, Virginia. As a result, the Internal Revenue Service issued more than $230,000 in fraudulent tax refunds.
On July 8, 2022, U.S. District Judge Charlene Edwards Honeywell sentenced Naeem Joseph to 21 months’ imprisonment for his role in the conspiracy.
“Christel Joseph and her husband Naeem Joseph fraudulently charged their clients and loaded up their returns with tax credits, getting them bigger refunds than they deserved,” said Special Agent in Charge Darrell Waldon, Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office. “Taxpayers who elect to pay a preparer should always do their due diligence beforehand to ensure they’re not victims of tax fraudsters like the Josephs. More information on selecting a reputable tax professional is available on IRS.gov.”
This case was investigated by IRS-Criminal Investigation, Roanoke, Virginia. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
GirlsDoPorn Operator Pleads Guilty in Sex Trafficking ConspiracyRead the Press Release
Assistant U. S. Attorneys Joseph Green (619) 546-6955 and Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – July 26, 2022
SAN DIEGO – Adult website operator Matthew Isaac Wolfe pleaded guilty in federal court today to conspiring to fraudulently coerce young women to appear in sex videos on the GirlsDoPorn and GirlsDoToys websites.
Wolfe pleaded guilty before U.S. Magistrate Judge Barbara L. Major to Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, in violation of 18 U.S.C. § 1594. Wolfe, the fourth defendant to plead guilty in connection with the case, admitted that he moved to the United States in 2011 to work for his friend and co-defendant Michael Pratt, the owner of the GirlsDoPorn website. Wolfe had a wide range of responsibilities. Wolfe filmed approximately one hundred videos, he uploaded finished videos onto the internet, he oversaw the company’s financial books, and he operated various business entities that were used to promote the business. Wolfe worked at GirlsDoPorn from 2011 until his arrest in October 2019.
To persuade women to appear in the videos, Wolfe admitted to telling women that the videos would never be posted on-line, that the videos would never be released in the United States, and that no one who knew the women would ever find out about the videos, representations that he knew false, because the videos were exclusively marketed and distributed on the internet. Wolfe trained co-defendant Theodore Gyi, a cameraman, on how to run video shoots and told Gyi that, if asked, to tell the women that the videos would not be posted on the internet.
Wolfe also admitted that he was aware that personal identifying information and social media accounts for some women were being posted on pornwikileaks.com, a site controlled by Pratt and dedicated to “exposing” the true identities of individuals appearing in sex videos, causing the victims to be subjected to severe harassment. Even after Wolfe became aware of this, he and others continued to assure prospective models that no one would ever find out about their video shoot or learn their identity.
“This crime had a devastating impact on the victims,” said U.S. Attorney Randy Grossman. “We will seek justice for human trafficking victims in hopes that it will help them reclaim their lives and leave the pain of this experience in the past.” Grossman commended the prosecution team as well as FBI agents and members of the San Diego Human Trafficking Task Force for their continuing effort to investigate and prosecute this important case.
“Wolfe lied to and preyed on vulnerable young women, subjecting them to years of relentless harassment, fear and mental anguish,” said Stacey Moy, special agent in charge of the FBI San Diego Field Office. “Identifying, investigating, and apprehending sex trafficking offenders is a critical part of our mission. We will continue to work with our partners every day to hold these perpetrators accountable for their crimes.”
Wolfe is scheduled to be sentenced by U.S. District Judge Janis L. Sammartino on October 10, 2022, at 9 a.m.
Any additional victims of the alleged crime are encouraged to call the San Diego FBI at 858-320-1800.
The FBI is offering a reward of up to $50,000 for information leading to the arrest of Michael James Pratt. Individuals with information about Pratt should contact their local FBI office or the nearest American Embassy or Consulate.
For further information, please see:
- Wanted Poster: https://www.fbi.gov/wanted/additional/michael-james-pratt
- Press Release: https://www.fbi.gov/contact-us/field-offices/sandiego/news/press-releases/fbi-seeks-public-assistance-in-locating-sex-trafficking-suspect
DEFENDANT Case Number 19cr4488-JLS
Matthew Isaac Wolfe Age 40 San Diego, CA*
Pleaded guilty to count 1
CO-DEFENDANTS
Michael James Pratt Age: 39 Fugitive
Ruben Andre Garcia Age: 33 San Diego, CA**
**Pleaded guilty to Counts 1 and 7
Valorie Moser Age: 39 San Diego, CA***
Theodore Wilfred Gyi Age: 44 Aliso Viejo, CA***
***Pleaded guilty to a Superseding Information charging Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, in violation of 18 U.S.C. § 371.
SUMMARY OF CHARGES
Count 1 (charging all defendants)
Conspiracy to Commit Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1594(c)
Maximum Penalty: Life in prison, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 2 (Pratt)
Production of Child Pornography, 18 U.S.C. § 2251(a) and (e)
Minimum penalty: Fifteen years in prison; Maximum penalty: 30 years in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014.
Count 3 (Pratt)
Sex Trafficking of a Minor by Force, Fraud and Coercion, 18 U.S.C. § 1591(a)(1) and (2)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014
Counts 4 (Pratt, Wolfe, Garcia), 5 (Pratt, Garcia), 6 (Pratt, Wolfe, Garcia), 7 (Pratt, Garcia, Gyi), 8 (Pratt, Garcia, Gyi)
Sex Trafficking by Force, Fraud and Coercion, 18 U.S.C. § 1591(a) and (b)(1)
Minimum penalty: Fifteen years in prison; Maximum penalty: life in custody, $250,000 fine, and a special assessment of $5,000 under 18 U.S.C. § 3014
INVESTIGATING AGENCY
FBI
San Diego Human Trafficking Task Force
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty
Former law enforcement officer heads to prison for allowing contraband into countryRead the Press Release
LAREDO, Texas – A 41-year-old Laredo resident has been sent to prison for his role in a conspiracy to smuggle goods into the United States, announced U.S. Attorney Jennifer B. Lowery.
Simon Medina III pleaded guilty March 8.
Today, U.S. District Judge Marina Garcia Marmolejo ordered Medina to serve 24 months in federal prison to be immediately followed by three years of supervised release. In handing down the sentence, the court noted Medina was in a position of power and was law enforcement and, as such, more aware of his actions. She highlighted the facts surrounding the severity of the actions and the danger in which he put the community.
Medina was a Customs and Border Protection (CBP) officer. He admitted that between May 25 and Aug. 6, 2020, he allowed several individuals to enter the United States with contraband in their vehicles on approximately 20 occasions. Although not assigned to the entry lanes at the Laredo Port of Entry, Medina would open a lane and allow his co-conspirators to pass through without inspecting their cargo. Medina also accepted gratuities from his partners.
Medina was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
CBP - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Former UAW Official Sentenced to 57 Months in Prison for Embezzling over $2 Million in Union FundsRead the Press Release
DETROIT- Timothy Edmunds, the former Financial Secretary Treasurer of Local 412 of the United Auto Workers union, was sentenced to 57 months in prison today based on his convictions for embezzling $2.1 million in union funds and for money laundering announced U.S. Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, James A. Tarasca, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Sarah Kull, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Timothy Edmunds, 54, of South Lyon, Michigan, had been convicted after pleading guilty in March 2022 to embezzling union funds and money laundering, before United States District Judge Sean Cox. Besides imposing a sentence of 57 months in prison, Judge Cox also ordered Edmunds to pay $1,963,740.29 in restitution to UAW Local 412 and a fine of $1 million.
Between 2011 and 2021, Edmunds served as the Financial Secretary Treasurer of union Local 412 of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). UAW Local 412 is headquartered in Warren, Michigan, and it represents approximately 2,600 members employed by the automaker FCA US LLC, which is owned by Stellantis N.V. The local union’s members include many of those employed at the following Stellantis facilities located within in the Detroit area: Sterling Stamping Plant, Mack Engine Plant, Warren Truck Assembly Plant, Warren Stamping Plant, and Jefferson Assembly Plant.
As an elected officer of UAW Local 412, Edmunds was responsible to hold its money and property solely for the benefit of the organization and its members and to manage, invest, and expend the funds in accordance with the UAW constitution and Local 412 bylaws. Instead, Edmunds systematically drained the Local 412 accounts of $2.1 million by (1) using Local 412 debit cards for over $142,000 in personal purchases, (2) cashing Local 412 checks worth $170,000 into accounts he personally controlled, and (3) transferring $1.5 million from bona fide Local 412 accounts into accounts that he personally controlled. To conceal his theft from other UAW officers and the Local 412 members, Edmunds created false bank statements and caused false Labor Management reports to be filed with the U.S. DOL. Edmunds supplied the fake bank statements to international UAW auditors in an effort to conceal his embezzlement.
Evidence indicates that Edmunds used portions of the proceeds of his embezzlement to gamble extensively, to purchase firearms, various high-end vehicles, and to purchase cocaine. For example, between 2018 and 2020, Edmunds used the UAW Local 412 debit card to make over $30,000 in unauthorized withdrawals at the Greektown Casino.
“Mr. Edmunds betrayed his union brothers and sisters by stealing their dues money to satisfy his own greed,” said United States Attorney Dawn N. Ison. “Today’s sentence demonstrates our continuing dedication to cleaning out corruption in the UAW.”
“Former UAW 412 Financial Secretary-Treasurer Timothy Edmunds embezzled approximately $2 million at the expense of the dues-paying members he had a duty to serve. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards to protect the integrity of labor organizations,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor, Office of Inspector General.
"The role of IRS Criminal Investigation becomes even more important in embezzlement and fraud cases due to the complex financial transactions that can take time to unravel," said Special Agent in Charge Sarah Kull, Detroit Field Office. “We’re committed to working with our law enforcement partners to hold all corrupt UAW officials accountable for their actions."
“While the vast majority of union officials do their work diligently and without incident, unfortunately criminal violations do occur. When they do, it is the union and its members that are the victims. Timothy Edmunds embezzled over $2 million dollars from UAW Local 412 that should have been used for its members’ benefit. Not only did his theft take hard-earned money away from the workers who earned it and who paid it to their union to help it advance their working conditions, his criminal conduct unfairly undercut union members’ and the public’s confidence in this union and in the important work it and other unions perform,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “OLMS will continue to work with its law enforcement partners to hold accountable anyone who unlawfully exploits their position for financial gain at the expense of hard-working union members.”
Edmunds is the seventeenth defendant convicted in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following other individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former UAW President Gary Jones (28 months in prison); former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), former senior UAW official Michael Grimes (28 moths), former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison), former UAW Vice President Joseph Ashton (30 months), former UAW President Dennis Williams (21 months) and former UAW Region 5 Director UAW Board member Vance Pearson (12 months in prison). The company, FCA US LLC, now known as Stellantis, pleaded guilty in January 2021 to conspiring to violate the Taft-Hartley Act, and was ordered to pay a fine of $30 million and be subject to an outside Monitor for three years. Former senior UAW official Jeffrey Pietrzyk passed away before being sentenced.
In December 2020, the United States filed a civil lawsuit against the International UAW under the Anti-Fraud Injunction Act based on the criminal investigation of the UAW, FCA US LLC, and FCA’s executives. Subsequently, the United States and the International UAW entered into a Consent Decree to settle the lawsuit that was approved by the U.S. District Court. The Court has appointed attorney Neil Barofsky to serve as the Independent Monitor of the UAW for six years. The Monitor is tasked with providing federal oversight of the UAW concerning fraud, corruption, and misconduct within the UAW.
U.S. Attorney Ison commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
The case is being prosecuted by Assistant U.S. Attorney David A. Gardey.
Former Private School Employee Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Jay Gordon, age 55, of Crofton, Maryland, pleaded guilty yesterday to possession of child pornography. Gordon was identified as a suspect in the trafficking of child sexual abuse material (“CSAM”), also called child pornography, during a nationwide investigation involving the receipt and distribution of CSAM via Dark Web sites and forum.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge James C. Harris of Homeland Security Investigations (HSI) Baltimore.
According to his guilty plea, during the investigation, Gordon’s Internet Protocol (IP) address was found to access Dark Web sites. A search warrant was executed at Gordon’s residence and law enforcement seized numerous computer devices that Gordon admitted belonged to him. Preliminary forensic analysis showed multiple images of CSAM. Initially, Gordon declined to specify where he worked in Washington, DC, but the investigators determined that he worked in the IT department of a private school.
As detailed in his plea agreement, a subsequent forensic examination of some of the seized devices showed thousands of videos and still images of child pornography. Some of Gordon’s devices were secured in a manner that precluded forensic analysis. The CSAM found on the devices was arranged in well- organized folders and reflected years of activity. Gordon also used an application that facilitated anonymous web browsing. Some of the images in Gordon’s collection were of prepubescent minors. Forensic examination of computers that Gordon used at his work location indicated that he also accessed Dark Web sites relating to CSAM on those devices, which were also connected to digital media that showed connection to computer devices seized from Gordon’s home.
Gordon faces a maximum sentence of 20 years in federal prison followed by up to lifetime supervised release for possession of child pornography. U.S. District Judge Deborah L. Boardman has scheduled sentencing for October 17, 2022 at 1:00 p.m. Upon his release from prison, Gordon will be required to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (“SORNA”).
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI in Baltimore and in Boston, Massachusetts for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.# # #
Former Federal Employee Pleads Guilty to $2M Unemployment Benefits Fraud SchemeRead the Press Release
RICHMOND, Va. – A Pleasant Hill, California, woman pleaded guilty today to participating in a conspiracy to defraud multiple state workforce agencies of COVID-19 pandemic-related benefits intended for unemployed workers.
According to court documents, from April 2020 through at least March 2021, Heather Huffman, 52, worked with co-conspirators to defraud the Virginia Employment Commission, the Washington State Employment Security Department, and the California Employment Development Department of unemployment insurance (“UI”) benefits by submitting materially false and misleading applications in the names of identity theft victims, witting co-conspirators, and inmates of various correctional facilities. Huffman and her co-conspirators included materially false information on the applications, including false employment and wage history and false contact information, such as physical and mailing addresses, email addresses, and phone numbers, that did not, in fact, belong to the purported applicants.
The conspirators took several actions in furtherance of the conspiracy. For instance, they obtained and shared among themselves the personal identifying information of identity theft victims and inmates, created and maintained email accounts purportedly belonging to the ostensible applicants, and falsified and forged various documents – including state and federal wage and tax forms – to substantiate the false information in the UI applications they submitted. Once their fraudulent UI applications were approved, the conspirators would, on a weekly basis, file false certifications of unemployment status, resulting in the dispersal of additional UI benefits by state workforce agencies.
During the course of the conspiracy, Huffman was employed as a registered nurse at the Veteran Affairs Hunter Holmes McGuire Medical Center in Richmond. Huffman used VA assets to further the conspirators’ scheme and artifice to defraud by utilizing her work computer to submit false and misleading UI applications to state workforce agencies, among other things. In total, Huffman and her co-conspirators obtained over $2,000,000 in UI benefits intended for unemployed workers. Huffman is the fourth and final member of the conspiracy to plead guilty.
Huffman is scheduled to be sentenced on November 29. She faces a maximum sentence of 32 years and a mandatory minimum sentence of 2 years in prison. 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.
Co-conspirators Sheldon L. Huffman, Anthowan Daniels, and Dorothea Rosado have pleaded guilty to their roles in the scheme and will be sentenced in November 2022.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Troy Springer, Acting Special Agent in Charge of the Washington, DC Regional Office, U.S. Department of Labor, Office of Inspector General; and Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs, made the announcement after Senior U.S. District Judge John A. Gibney, Jr. accepted the plea.
Assistant U.S. Attorneys Kaitlin Cooke, Kashan Pathan and Michael Moore are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:22-cr-8.
Former Appleton Restaurant Owner Sentenced to Federal Prison for Violations of Federal Tax LawsRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, announced that on July 20, 2022, Paul R. Vanderlinden (age: 42) of Appleton, Wisconsin, was sentenced to a six-month term of federal imprisonment by Senior United States District Judge William C. Griesbach.
Vanderlinden had previously entered a guilty plea in federal court in Green Bay to charges that he willfully filed a false tax return and failed to truthfully account for and pay over payroll taxes to the Internal Revenue Service. Vanderlinden was additionally ordered to pay, and has paid, restitution to the Internal Revenue Service totaling more than $168,000.
Federal law requires employers to collect payroll taxes. According to court filings, Vanderlinden willfully failed to withhold and pay over approximately $88,000 in payroll taxes between 2012 and 2016. He filed employer tax returns containing false statements regarding the wages paid to his employees. Vanderlinden also diverted business receipts into a personal bank account. He failed to include this revenue in his tax filings, and as a result underpaid his individual taxes by at least $30,000 during the relevant years.
This investigation was undertaken by Special Agents from the Internal Revenue Service’s Criminal Investigation division. It was prosecuted by Assistant U.S. Attorney Farris Martini.
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For further information contact: Public Information Officer
(414) 297-1700
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Federal Law Enforcement Partners Encourage Community Reporting of All Hate CrimesRead the Press Release
PORTLAND, Ore.—Earlier this month, the Oregon Criminal Justice Commission released its third annual report reviewing the state’s recent bias crime and non-criminal bias incident reporting data. Among many concerning findings, the report noted that calls to the Oregon Department of Justice Bias Response Hotline increased by 53% from 2020 to 2021.
The U.S. Attorney’s Office for the District of Oregon and the FBI Portland Field Office commend individuals who have courageously come forward to report hate-related incidents and activity. With these incidents continuing to increase in Oregon and throughout the United States, federal law enforcement leaders in Oregon encourage anyone with information about hate crimes to call Oregon’s Bias Response Hotline, their local law enforcement agency or the FBI directly.
The Justice Department is committed to supporting victims of these crimes.
“Violent acts motivated by hate have no place in our shared community. The FBI is working with our law enforcement and community partners to hold those accountable who are so callously targeting innocent people,” said Kieran L. Ramsey, Special Agent in Charge of the FBI Portland Field Office. “Even as we are seeing some increased reporting of hate crimes, we know the vast majority of these incidents are still going underreported and we need your help. If you're the victim of a hate crime or know someone being victimized, please contact law enforcement and the FBI.”
The FBI defines a hate crime as a “criminal offense against a person or property motivated in whole or in part by an offender’s bias against a race, religion, disability, sexual orientation, ethnicity, gender, or gender identity.”
Combatting hate crimes is a top priority of the U.S. Department of Justice and FBI. These crimes have a devastating impact on families and communities.
If you are concerned about your safety, please call 911 immediately.
If you or someone you know was the victim of or witnessed a hate-related crime or incident, please contact Oregon’s Bias Crime Hotline by calling 1-844-924-BIAS. Trauma-informed operators are available from 9am to 5pm Pacific time, Monday through Friday.
These crimes and incidents can also be reported to the FBI directly by calling 1-800-CALL-FBI or submitting a tip online at tips.fbi.gov.
Fayette County Drug Dealer Sentenced to 9 Years in PrisonRead the Press Release
PITTSBURGH - A resident of Isabella, Pennsylvania, has been sentenced in federal court to 108 months’ imprisonment and 6 years’ supervised release on his conviction of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
United States District Judge Christy Criswell Wiegand imposed the sentence on Cedric Harrison, age 35.
According to information presented to the Court, on or about July 9, 2021, Cedric Harrison possessed a quantity of cocaine with the intent to distribute it and, from in and around June 2020 until July 2021, Harrison conspired with others to possess with intent to distribute and distribute quantities of cocaine and heroin.
Assistant United States Attorneys Yvonne Saadi and Jonathan Lusty prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Perryopolis Police Department conducted the investigation that led to the prosecution of Cedric Harrison.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Fort Washakie Man Arraigned on Multiple Violent OffensesRead the Press Release
Acting United States Attorney Nicholas Vassallo announced today that DENVER LEE JOHN, SR. 43, of Fort Washakie, Wyoming, was arraigned on July 20, 2022, by United States District Court Magistrate Judge Kelly H. Rankin for three counts of assault with a dangerous weapon with intent to do bodily harm, five counts of child abuse and one count of aggravated sexual abuse. John pleaded not guilty to the charges. A trial has been set for September 26, 2022 before United States District Court Judge Alan B. Johnson.
If convicted on all counts, John faces 30 years to life in prison with five years to a lifetime of supervised release, a fine up to $2.25 million and a special assessment of $900. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This crime was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs. Assistant United States Attorney Kerry J. Jacobson is prosecuting the case.
Case No. 22-00077-ABJ
Ex-port worker ordered to pay nearly $40,000 in restitution for phoning in workplace bomb threatRead the Press Release
SAVANNAH, GA: A Toombs County, Ga., man has been ordered to repay the cost for shutting down a Port of Savannah facility with a phoned-in bomb threat.
Elliott Sherman, a/k/a “Amir Turner,” 23, was ordered to pay $38,400 in restitution after pleading guilty to False Information and Hoaxes, said U.S. Attorney David H. Estes. Sherman, who has been in custody since his arrest in May 2021, also was sentenced to time served, and to serve two years of supervised release.
“With the thoughtless tap of a few keys on his phone, Elliott Sherman shut down a major port facility and initiated a significant law enforcement response,” said U.S. Attorney Estes. “He also cost himself a job, his freedom, and thousands of dollars. That’s a hard price to pay for impatience and immaturity.”
As described in court documents and testimony, Sherman was assigned to the California Cartage CFS 2 building in Port Wentworth as an employee of a staffing agency. Sherman had been dismissed early on Sept. 11, 2020, and admitted calling in a bomb threat so the other workers in his carpool also would be dismissed and he wouldn’t have to wait for his ride home.
During the ensuing investigation, the company was forced to halt operations at two warehouses at a cost of $38,400.
“Hoax threats consume law enforcement resources needed for actual emergencies, disrupt commerce, and terrify potential threatened victims,” said Keri Farley, Special Agent in Charge of FBI Atlanta. “Anyone who decides to carry out a threat like this, especially one so inappropriately timed, can expect the FBI to come knocking to hold them accountable.”
The case was investigated by the FBI, Georgia Ports Authority Police, and the Vidalia Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Jennifer G. Solari and Joshua S. Bearden.
District-Based Financial Services Professional Pleads Guilty to Federal Charge of Insider TradingRead the Press Release
WASHINGTON – George Haywood, 69, of Washington, D.C., pleaded guilty today to one count of insider trading, announced U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
Haywood pleaded guilty in the U.S. District Court for the District of Columbia. The Honorable Reggie B. Walton scheduled sentencing for Nov. 9, 2022.
“Insider trading undermines faith in our financial markets and harms ordinary investors who play by the rules,” said U.S. Attorney Graves. “George Haywood placed himself above the law by using information to which he had privileged access to cheat the market and other investors. Our Office will continue to work with our law enforcement partners to maintain the integrity of the financial markets.”
“Mr. Haywood put himself and his own financial interests above the rule of law,” said Special Agent in Charge Jacobs. “The FBI will not stand by while individuals attempt to abuse access to non-public information. I’d like to thank those who investigated this case and who work every day to ensure individuals are held accountable for damaging the integrity of our financial markets.”
According to court documents, Haywood is a District of Columbia-based financial services professional who managed investments on behalf of his family and friends. On Jan. 22, 2020, at approximately 9 a.m., Neurotrope, a clinical-stage biopharmaceutical company (now known as Synaptogenix) announced that it was being awarded a $2.7 million grant from the National Institutes of Health following positive clinical trial results for a medicine for the treatment of Alzheimer’s disease. This resulted in an increase of its stock price to a high of $3.85 per share.
Later that day, at approximately 12:50 p.m., Haywood spoke to a representative of Neurotrope by telephone. The person offered to share material non-public information relating to Neurotrope with Haywood so long as Haywood agreed not to execute or attempt to execute any stock trades with the information. Haywood agreed to receive material non-public information, subject to these conditions. The representative then informed Haywood that Neurotrope would issue a registered direct offering later that day and invited him to participate in it. The offering was expected to cause Neurotrope’s stock price to fall.
Immediately after receiving material non-public information, Haywood sold or attempted to sell shares of Neurotrope worth over $328,701.16, despite having agreed to receive the information, and not to execute or attempt to execute any stock trade with it. Based on the daily closing price of $1.42 per share, Haywood avoided a loss of at least $179,297.18 on the sale of those shares between the time he received the material non-public information, and the time the registered direct offering was announced to the public.
The case was investigated by the FBI’s Washington Field Office and is being prosecuted by Assistant U.S. Attorneys Elizabeth Aloi and John Borchert.
A parallel civil enforcement proceeding was filed by the Securities and Exchange Commission’s Philadelphia Regional Office, under the direction of Norman P. Ostrove: https://www.sec.gov/litigation/litreleases/2022/lr25440.htm
Dental Provider Agrees to Settle Allegations of Improper Billing of TennCareRead the Press Release
KNOXVILLE, Tenn. – The United States Attorney’s Office announced today that Dr. Don Flanagan, D.D.S., and his affiliated companies, Dental Center, Inc. and Dental Center, P.C. d/b/a Cloudland Dental (“Cloudland Dental”), have agreed to pay $1,500,000 to resolve allegations that they knowingly and improperly submitted false claims for dental services to TennCare in violation of the False Claims Act (“FCA”) and the Tennessee Medicaid False Claims Act (“TMFCA”). Franci Raines, who was formerly employed as Cloudland Dental’s Business Manager, also agreed to resolve similar allegations against her.
TennCare requires that dentists apply for and receive approval before billing for services rendered to beneficiaries. This approval process, which is known as credentialing, requires, among other things, that applicants submit relevant information about their educational background, licensure status, insurance coverage, as well as information about any criminal history, malpractice claims, and state board disciplinary history. The credentialing process is intended to ensure that beneficiaries receive the highest quality of care from competent providers who have been vetted prior to rendering services.
Dr. Flanagan formerly owned Cloudland Dental, which operated dental clinics located in Chattanooga, Cleveland, Crossville, and Sweetwater. The settlement resolves allegations that, from January 2015 through February 2019, Cloudland Dental knowingly submitted, or caused to be submitted, to TennCare claims for payment that falsely identified Dr. Flanagan as the rendering provider for services that were actually rendered by uncredentialed dentists who were ineligible to bill TennCare, at Cloudland Dental’s offices located in Cleveland, Crossville, and Sweetwater.
“When healthcare providers agree to participate in federal healthcare programs such as TennCare, they must adhere to the requirements of the program just like everyone else. The credentialing requirement for participating providers is not a mere formality; rather, it is an important requirement that is intended to ensure that services are rendered by qualified providers. Today’s settlement should send a message to all providers who participate in government sponsored healthcare programs that they must follow the rules when they elect to participate in publicly funded programs,” said United States Attorney Francis M. Hamilton III.
This settlement is the result of a collaborative effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, the U.S. Department of Health and Human Services, Office of Inspector General, the Tennessee Attorney General’s Office, and the Tennessee Bureau of Investigation. The investigation that preceded the settlement was prompted by a lawsuit filed in 2019 under the qui tam or “whistleblower” provisions of the FCA and TMFCA, which permit a private individual (known as a “relator”) to sue on behalf of the government for false claims and to share in any recovery. The relator’s share of the recovery in this case will be $255,850.
Assistant U.S. Attorney Joseph C. Rodriguez represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Delaware County Pharmacy and Owner-Pharmacist Agree to Pay $750k and Never Again Dispense Controlled Substances to Resolve Civil Allegations of Sex-for-Pills SchemeRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that the United States filed a civil lawsuit against Murray-Overhill Pharmacy, Inc., located in Media, PA, and its co-owner pharmacist Martin Brian, alleging a years-long practice of illegal dispensing and distribution of opioid and other controlled substances as part of a sex-for-pills scheme. At the same time the civil suit was filed, the United States also filed a proposed consent judgment that, subject to the court’s approval, would resolve the lawsuit. The consent judgment would require Murray-Overhill Pharmacy and Brian to pay $750,000 in civil penalties under the Controlled Substances Act and would permanently prohibit them from dispensing controlled substances or obtaining another controlled substance registration in the future.
In the civil complaint, the United States alleged that Murray-Overhill Pharmacy, Inc., through its pharmacist and co-owner Martin Brian, exploited its access to controlled substances and engaged in a scheme of pills-for-sex with multiple individuals. The United States alleged that police arrived at the rear of the pharmacy due to a report of an unconscious male and female in a car, which contained drug paraphernalia. The complaint alleges that another woman exited the back of the pharmacy followed by Brian, with the woman and Brian initially claiming she came to the pharmacy from Maryland—on a Sunday when the pharmacy was closed—to show pictures of her children. According to the United States’ allegations, additional investigation revealed that the woman received oxycodone and alprazolam from Brian for sexual acts on several occasions over the prior year, without any legitimate prescription.
The complaint also alleges that Brian and Murray-Overhill engaged in a similar pills-for-sex scheme with another woman. Brian allegedly gave the woman bottles of oxycodone and alprazolam from Murray-Overhill multiple times a week without a prescription in exchange for sex acts. The complaint further alleges that additional evidence confirmed the schemes with these individuals, with over a hundred thousand missing pills of opioids and other controlled substances.
Murray-Overhill has already surrendered its pharmacy registration to the DEA. Murray-Overhill Pharmacy and Brian further agreed to resolve their civil liability under terms outlined in the proposed consent judgment, if accepted by the court. Among other things, Murray-Overhill and Brian would pay $750,000 in civil penalties under the Controlled Substances Act. The proposed resolution would also permanently prevent Brian from distributing or dispensing any controlled substances in the future and prevent Murray-Overhill Pharmacy from ever applying for a new controlled substance registration from the DEA.
The Delaware County District Attorney’s Office previously filed criminal charges against Brian for the same conduct.
“This case illustrates that the opioid epidemic continues to damage our communities,” said U.S. Attorney Romero. “This Office will never allow pharmacies and pharmacists, who held positions of trust, to take advantage of their access to controlled substances at the expense of those in our communities addicted to controlled substances.”
“The allegations against Brian that he repeatedly distributed powerful painkillers and other controlled substances in exchange for sexual acts are repulsive and demonstrate Brian’s total disregard for his legal and ethical responsibilities as a pharmacist,” said Thomas Hodnett, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “The DEA, working with its partners such as the Delaware County District Attorney’s Office, the Media Borough Police Department, and the Pennsylvania Department of State, will aggressively pursue rogue pharmacists like Brian who are responsible for contributing to the opioid epidemic.”
“This case hits very close to home, involving as it does a pharmacy only a block from the courthouse. While the 81-year old pharmacist maintained a facade of respectability, in trading drugs for sex, he was no better than a dealer selling drugs on a street corner. The public should understand that the law enforcement community is committed to going after the dealers – whoever they may be, and wherever we may find them,” said Delaware County District Attorney Jack Stollsteimer.
The case is being investigated by the Philadelphia Field Division of the Drug Enforcement Administration, the Delaware County District Attorney’s Office, the Media Borough Police Department, and the Pennsylvania Department of State’s Bureau of Enforcement and Investigation. The civil investigation, litigation, and proposed resolution are being handled by Assistant United States Attorney Anthony D. Scicchitano and auditor Dawn Wiggins, and was also handled by former Assistant United States Attorney Paul J. Koob, with assistance from Assistant United States Attorney Anthony St. Joseph.
The complaint contains allegations only that the United States must prove if the case proceeds to trial. The proposed consent judgment would resolve any alleged civil liability.
Dauphin County Man Sentenced to 48 Months’ Imprisonment for Drug TraffickingRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania has announced that Brian Pena Villanueva, age 38, of Harrisburg, Pennsylvania, was sentenced on July 14, 2022, by U.S. District Court Judge Jennifer P. Wilson to 48 months’ imprisonment for drug trafficking.
According to United States Attorney Gerard M. Karam, on January 7, 2022, Villanueva pleaded guilty to possession with intent to distribute 40 grams and more of a substance containing fentanyl. In July 2020, law enforcement executed a search warrant for two vehicles associated with Villanueva and two hotel rooms in Cumberland County. During the search, law enforcement officers seized over 3,800 bags of fentanyl.
The Drug Enforcement Administration, the York County Drug Task Force, and the Fairview Township Police Department conducted the investigation. Assistant United States Attorney Daryl F. Bloom prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin and opioid traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case was also 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.
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DJ Drugs & Surgicals Inc. Agrees to Pay $115,000 to Resolve Allegations of Prior Authorization FraudRead the Press Release
BOSTON – A New York-based specialty pharmacy, DJ Drugs & Surgicals Inc., has agreed to resolve allegations that it altered patient medical records and submitted the altered medical records to Medicare in support of prior authorization requests. DJ Drugs will pay $115,000 to settle this matter.
According to the settlement agreement, DJ Drugs processes and fills prescriptions for proprotein convertase subtilisin kexin type 9 (PCSK9) inhibitors, an expensive class of cholesterol-lowering medication. Between June 2017 and October 2018, DJ Drugs often completed and submitted prior authorization requests to insurers in order to obtain insurance coverage for PCSK9 prescriptions. As part of this settlement, DJ Drugs agreed to a series of factual admissions, including that, on at least 28 occasions and without express authorization from the prescribing physician, it removed certain information in supporting documentation (e.g., laboratory results, patient medical records) associated with PCSK9 prior authorization requests. DJ Drugs also admitted that it then submitted the altered documents to Medicare plan sponsors for approval.
United States Attorney Rachael S. Rollins; Phillip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Charles B. Weinograd of Rollins’ Affirmative Civil Enforcement Unit handled the matter.
Detroit Man Convicted of Sex Trafficking ChargesRead the Press Release
DETROIT - A Detroit resident was convicted by a federal jury yesterday on charges of producing, transporting, and possessing child pornography, and sex trafficking using force and coercion, announced United States Attorney Dawn N. Ison.
Ison was joined in the announcement by Special Agent in Charge James C. Harris, Homeland Security Investigations, Detroit Division (HSI).
Ryon Travis, 38, of Detroit, was convicted following a 3-day jury trial before United States District Judge Bernard A. Friedman. The jury deliberated approximately 3 hours before returning their verdicts.
“This defendant exploited a child and an adult victim in brutal ways. He targeted a vulnerable woman and took advantage of her for his own profit,” stated U.S. Attorney Ison. “Combatting human trafficking remains one of our office’s top priorities, and we will continue to use every tool in our law enforcement arsenal to combat the sexual exploitation of vulnerable victims in our communities and ensure that predators are held accountable.”
Evidence presented at the trial established the investigation began when the West Bloomfield Police Department searched Travis’s residence in connection with a fraud investigation. A search of Travis’s phone recovered explicit images depicting the sexual abuse of a young child. The case was referred to HSI, who returned to the home in search of sheets depicted in the child pornographic images. When they entered the home, they found an adult woman chained at the neck to a stripper pole in the living room. Subsequent investigation confirmed that Travis was prostituting this adult woman and three others out of his home. When the adult woman attempted to leave, Travis restrained her with a chain.
Sentencing is set for November 23, 2022. Travis faces a mandatory-minimum sentence of 15 years in prison, and up to life.
The case was investigated by HSI and the West Bloomfield Police Department. The case was prosecuted by Assistant United States Attorneys Sara Woodward and Andrea Hutting.
Convicted felon and two others charged with trafficking fully automatic, privately manufactured ghost gunsRead the Press Release
Jelani Kazmende, Wiley Martin, and Robert Louis Jeffords, Jr., have been arraigned on federal charges of dealing firearms without a license, possession of machineguns, possession of unregistered firearms, and conspiracy. Kazmende, Martin, and Jeffords were indicted by a federal grand jury on July 12, 2022.
“Equipped with large capacity magazines, illegal machineguns like those allegedly transported, possessed, and sold by these defendants present immediate danger to our community,” said U.S. Attorney Ryan K. Buchanan. “To protect the community, this office and its partners will identify, target, and prosecute to the fullest extent those who peddle these weapons unlawfully.”
“With distressing regularity, we see the damage that criminals can inflict on our communities with weapons of war," said Keri Farley, Special Agent in Charge of FBI Atlanta. “Illegal guns have no place in Georgia and the FBI will continue to work diligently with our partners to remove these dangerous criminals and weapons from our streets.”
“Because of the combined efforts of ATF and its law enforcement partners, criminal elements have been surgically removed from the community of Marietta and placed where they belong: into the criminal justice system to be processed and prosecuted for illegal activity,” said Alisha Jones, Assistant Special Agent in Charge of ATF’s Atlanta Field Division.
According to U.S. Attorney Buchanan, the charges, and other information presented in court: On June 2, 2022, outside of a restaurant in Marietta, Georgia, Jelani Kazmende allegedly provided five privately manufactured “ghost guns” to Wiley Martin, a multi-convicted felon who was then serving a term of state probation. “Ghost guns” refers to firearms, including a frame or receiver, completed, assembled, or otherwise produced by a person other than a licensed manufacturer, and without a serial number placed by a licensed manufacturer at the time the firearm was produced.
The firearms that Kazmende allegedly gave to Martin lacked any genuine manufacturer’s makings or legitimate serial numbers. Inside of each firearm was a drop-in “auto sear device” designed to allow the firearms to fire multiple rounds with a single pull of the trigger. Following his receipt of the firearms, Martin sold all five weapons—and a sixth full-auto pistol—to undercover FBI agents.
On June 16, 2022, Kazmende and Martin met Robert Louis Jeffords, Jr., outside of the same turkey leg restaurant where Kazmende and Martin had met two weeks prior. Kazmende, Martin, and Jeffords removed from Jeffords’s truck 16 privately manufactured firearms chambered in various calibers. Separately, Jeffords carried 17 drop-in auto sear devices into the restaurant. Once the firearms had been converted to fire automatically, Martin intended to sell the guns to the undercover FBI agents again. However, before the transaction could be attempted, law enforcement officers surrounded the restaurant and arrested all three defendants. They also recovered each of the guns and auto sear devices.
Jelani Kazmende, 38, of Marietta, Georgia, Wiley Martin, 42, of Acworth, Georgia, and Robert Louis Jeffords, Jr., 62, of Forest City, North Carolina, were arraigned before Chief U.S. Magistrate Judge Russell G. Vineyard on federal charges of dealing firearms without a license, possession of machineguns, possession of unregistered firearms, and conspiracy. Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges, and it will be the government’s burden to prove the defendants’ guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation and Bureau of Alcohol, Tobacco, Firearms and Explosives with assistance from the Cobb County Police Department, Marietta Police Department, Sandy Springs Police Department, Douglasville Police Department, Georgia State Patrol, and Fulton County Sheriff’s Office.
Assistant U.S. Attorney Theodore S. Hertzberg is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Convicted Felon Sentenced to 54 Months in Federal Prison for Unlawful Possession of a FirearmRead the Press Release
INDIANAPOLIS – Broden Burgess, 37, of Indianapolis was sentenced to 54 months in federal prison after pleading guilty to illegally possessing a firearm as a convicted felon.
According to court documents, on September 21, 2020, officers from the Indianapolis Metropolitan Police Department responded to a call to check the welfare of a person at the Kroger grocery store located at 1365 East 86th Street in Indianapolis. Officers arrived and located Burgess, who appeared incoherent, in the parking lot. After further investigation, officers located a loaded black Ruger 9mm handgun in Burgess’s sweatshirt pocket.
Burgess is prohibited from lawfully possessing firearms or ammunition due to multiple prior felony convictions, including auto theft, burglary, and strangulation. Burgess also has a misdemeanor conviction for domestic battery, which resulted from him knocking an ex-girlfriend to the ground and choking her.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Daryl S. McCormick, Special Agent in Charge of the ATF’s Columbus Field Division made the announcement.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. The Indianapolis Metropolitan Police Department provided invaluable assistance. The sentence was imposed by U.S. District Judge Jane Magnus-Stinson following Burgess’s guilty plea. As part of the sentence, Judge Stinson ordered that Burgess be supervised by the U.S. Probation Office for three years following his release from prison.
U.S. Attorney Myers thanked Assistant U.S. Attorney Lawrence D. Hilton 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.
Additionally, 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.
Connellsville Woman Charged with $200,000 Fraud Scheme Against Her EmployerRead the Press Release
PITTSBURGH, PA - A resident of Connellsville, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of wire fraud, United States Attorney Cindy K. Chung announced today.
The two-count Indictment named Deane Petzel, 55, currently detained at FPC Alderson in Alderson, WV 24910, as the sole defendant.
According to the Indictment, Petzel was an Area Director for a company operating bakery-cafes in the Western District of Pennsylvania and elsewhere. Petzel caused the creation of a fake company, which she then used to submit fraudulent invoices for maintenance work purportedly done at the bakery-café that she supervised. In reality, no such work had been done. When Petzel approved the fraudulent invoices in her role as Area Director, she caused her employer to pay more than $200,000 in connection with the fraud.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Collin County Man Indicted for COVID Unemployment FraudRead the Press Release
PLANO, Texas – An Allen, Texas man has been indicted for federal crimes arising from a scheme to extract Unemployment Insurance (UI) benefits under the Coronavirus Aid, Relief, and Economic Security (CARES) Act using the stolen identity of others, announced U.S. Attorney Brit Featherston today.
Hilton Ray Kersh, 64, was charged in an indictment filed in the Eastern District of Texas with seven counts of illegal transactions with an access device and seven counts of aggravated identity theft. The indictment alleges that Kersh used multiple bank cards issued to individuals other than himself to withdraw funds from ATMs. The debit cards had been loaded with UI benefit funds based on unemployment relief applications made to the Texas Workforce Commission pursuant to the CARES Act. The individuals whose names appear on the debit cards -- and whose names were used to apply for the benefits -- did not authorize Kersh to use their identities. If convicted, Kersh faces up to 15 years in federal prison for the illegal transactions with an access device charges and two additional years for the aggravated identity theft charges.
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.
This case is being investigated by the U. S. Department of Labor Office of Inspector General. Assistant U.S. Attorney Brent L. Andrus is prosecuting the case.
A federal criminal indictment is merely an accusation. A defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Chicago Man Pleads Guilty to Stalking R. Kelly VictimRead the Press Release
Earlier today, in federal court in Brooklyn, Donnell Russell pleaded guilty to interstate stalking for his participation in a scheme to harass, intimidate, and cause substantial emotional distress to Jane Doe, a victim in the racketeering case against Robert Sylvester Kelly, also known as “R. Kelly,” and Jane Doe’s mother. The proceeding was held before United States District Judge Ann M. Donnelly. When sentenced, Russell faces a maximum sentence of five years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, and Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the guilty plea.
“Russell used threats, harassment and intimidation in a deliberate effort to silence one of R. Kelly’s victims and prevent her voice from being heard,” stated United States Attorney Peace. “When his initial effort failed, he continued his vile campaign by sending threatening messages to Jane Doe and her mother, and publishing explicit photos of the victim on the internet before and after Kelly was indicted. As this prosecution makes clear, the defendant’s conduct was not only reprehensible, but it was also criminal and will not be tolerated.”
“Through the use of intimidation tactics, Russell repeatedly and purposefully worked to silence ‘Jane Doe’ from revealing the emotional and physical trauma inflicted on her by R Kelly and his associates. Despite multiple threats, Russell ultimately failed in his efforts and will now face the consequences of his despicable behavior,” said HSI Acting Special Agent-in-Charge Patel. “HSI will continue to work together with our partners to support and empower survivors of abuse and exploitation to come forward and speak out against their abusers.”
Between November 2018 and February 2020, Russell, a self-described manager, advisor and friend of Kelly, used the mail, phones and the internet to harass and intimidate Jane Doe, a victim in the Kelly case, and her mother after Jane Doe filed a civil lawsuit against R. Kelly. Specifically, Russell threatened to reveal sexually explicit photographs of Jane Doe and to publicly reveal her sexual history if she did not withdraw her lawsuit against Kelly and “cease her participation and association with the organizers” of a “negative campaign” against Kelly. In November 2018, Russell caused a letter, with attachments, purportedly written by Kelly to be mailed to Jane Doe’s Brooklyn-based lawyer at the time. The attachments included cropped nude photographs of Jane Doe with the following text: “the next two pictures have been cropped for the sake of not exposing her extremities to the world, yet!!!” In December 2018, Russell, using his alias “Colon Dunn,” sent a series of text messages to Jane Doe and her mother, which contained the same photographs of Jane Doe, and stating, “Just a sample. We will seek criminal charges. You’ve been warned,” as well as “Publishing soon” and “[T]his is Colon.”
On January 3, 2019, Russell sent additional text messages to Jane Doe and her mother, stating, “Pull the plug or you will be exposed.” On January 6, 2019, Russell, using the Colon Dunn alias, created a Facebook Page named “Surviving Lies,” a play on the title of Lifetime’s “Surviving R Kelly” documentary, and posted screen shots of text messages between Kelly and Jane Doe, which contained the same sexually explicit photographs of Jane Doe. In late January 2020, Russell appeared on two live interviews with “vloggers” supporting Kelly discussing Kelly’s legal troubles, which were streamed live on the internet via YouTube. Russell again displayed the same sexually explicit photographs of Jane Doe and broadcast them publicly over the internet.
The government’s case is being handled by the Office’s Civil Rights Section. Assistant United States Attorneys Nadia I. Shihata and Anna Karamigios are in charge of the prosecution.
The Defendant:
DONNELL RUSSELL (also known as “Don Russell” and “Colon Dunn”)
Age: 47
Chicago, ILE.D.N.Y. Docket No. 20-CR-427 (AMD)
Chicago Man Charged with Coercion and Enticement of a MinorRead the Press Release
BOSTON – A Chicago man has been charged in connection with using Snapchat to threaten and coerce a Massachusetts minor to engage in sexual conduct.
Ernesto Herrera, 33, of Chicago, Ill., was charged by an Information with coercion and enticement of a minor. Herrera was previously arrested and charged in June 2021 with one count of sexual exploitation of children and one count of receipt of child pornography. He has remained in custody.
“Mr. Herrera allegedly used social media to target, threaten and rob a child of their innocence,” said United States Attorney Rachael S. Rollins. “Sexual predators who engage in this type of behavior, particularly with minors, will be prosecuted. We will aggressively pursue those who prey on the vulnerable and helpless.”
“Ernesto Herrera is accused of manipulating a 16-year-old girl into providing him with sexually explicit images of herself through a popular multimedia messaging app,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Sadly, online predators seeking to exploit children are becoming too common, and we urge parents and guardians to pay attention to what your children are doing online. Make it clear to them that they are not to blame if they fall victim to a predator and contact law enforcement right away if you suspect something is wrong. The FBI hopes today’s charges are a warning to others that we will be relentless in our pursuit of anyone who commits such heinous acts.”
According to the charging documents, in June 2020, Herrera allegedly threatened and coerced a Massachusetts minor via Snapchat and text message to make and send images of the victim engaged in sexual conduct, among other things. Herrera was identified as the owner of the Snapchat account used to contact the victim. A subsequent search of Herrera’s phone revealed over 1,000 media files were sent from the victim’s Snapchat account to Herrera’s Snapchat account. Several of those media files allegedly depicted child pornography.
The charge of coercion and enticement of a minor provides a mandatory minimum sentence of 10 years and up to life in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta and Emmerson Buie, Jr., Special Agent in Charge of the Federal Bureau of Investigation, Chicago Division made the announcement. Assistant U.S. Attorney J. Mackenzie Duane of Rollins’ Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Chad Brown Gang Leaders Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, RI – Four Chad Brown gang members who participated in a racketeering enterprise that targeted rival gang members with gun violence as part of what federal court filings described as “a vigilante justice system imposed and administered by themselves,” were sentenced today to federal prison, announced United States Attorney Zachary A. Cunha and Rhode Island Attorney General Peter F. Neronha.
Delacey Andrade, 28, was sentenced to eleven years of incarceration; Kendrick Johnson 31, was sentenced to six years imprisonment; Keishon Johnson, 32, was sentenced to twelve years in prison; and Montrel Johnson, 26, was sentenced to seven years in prison.
The four men pleaded guilty on March 1, 2022, to participating in the activities of a Racketeer Influenced Corrupt Organization (RICO).
According to court documents, the defendants “anointed themselves guardians of the neighborhood . . . and reserved the use of force to themselves to extract revenge on perceived enemies. In doing so, they reigned terror on innocent bystanders through a cycle of violence with no purpose.”
“Under the pretense of dispensing justice, these defendants inflicted terror and violence on the people of Providence to serve the ends of their criminal enterprise,” said U.S. Attorney Zachary A. Cunha. “Today, they faced the actual justice that their conduct richly deserves, and our community is safer for it. This prosecution tackled violence that has stemmed from generations of feuding between rival gangs in the city of Providence.”
“This case is an example of how this Office, working with our partners in law enforcement over the past several years, has focused its resources to target those who are driving violent crime,” said Rhode Island Attorney General Peter F. Neronha. “Thanks to this investigation and prosecution, some of the worst perpetrators of violent crime in Providence will now find themselves behind bars – and for a significant period of time. I am particularly grateful for our partnership with the United States Attorney’s Office and the strong work by federal law enforcement and the Providence Police Department in this case.”
“I praise the Investigators of the Providence Police Department and our Law Enforcement partners, including the US Attorney’s Office, for their tireless work in carrying this case to justice,” said Providence Police Chief Colonel Hugh T. Clements, Jr. “These are the types of coordinated efforts that keep communities safe from ongoing and future senseless gun violence.”
“ATF is committed to the removal of violent repeat offenders who victimize and threaten the safety of our communities,” said Special Agent in Charge James M. Ferguson of the ATF Boston Field Division “Today’s sentencing should send a strong message to those who commit violent crimes that you will be held accountable and brought to justice.”
According to charging documents and information presented to the court, members and associates of the Chad Brown gang perpetrated frequent acts of violence against rival East Side gang members dating back to 2013; those acts included drive-by shootings and illegal drug sales. An escalation of hostilities began in 2013 when a Chad Brown member, Jose “Hova” Sanchez, was shot to death on June 22, 2013. In retaliation, two East Side members Ryan “Moondo” Almeida, and Nelson “Vamp” Sanchez, were shot to death in a thirty-day period beginning on Christmas Eve Day in 2013. While the defendants in this case were not charged in federal court with those killings, they mark the beginning of the time-period charged in the RICO count and provide context for the specific racketeering acts committed by the defendants.
The RICO charge focused on four shootings in 2016 and 2017. Each of the defendants was charged with involvement in one or more of these shootings. Specifically, the charges and supporting evidence were as follows:
- Delacey Andrade, Montrel Johnson and Keishon Johnson were charged with the attempted murder of an East Side gang member on October 22, 2016, in a drive-by shooting. The shooting occurred after Montrel Johnson and the East Side gang member had a confrontation inside the Walmart on Silver Spring Street in Providence. Andrade, Keishon Johnson and Montrel Johnson were in a gold Nissan Maxima that fired multiple gunshots into the victim’s car, hitting the victim three times and causing life threatening injuries. The shooting occurred on the two-year anniversary of a Chad Brown gang member’s shooting death, and shortly after the murder trial of the East Side gang members charged with his killing.
- Later in the evening of October 22, 2016, Andrade and Keishon Johnson were in the same gold Nissan Maxima on Appian Street in Providence when they fired multiple gunshots into a vehicle driven by a woman they mistakenly identified as East Side rivals. Earlier that week, Kendrick Johnson had sent Andrade a text to be on the lookout for a similar vehicle containing East Side members who had driven through Chad Brown.
- On June 19, 2017, Andrade and Kendrick Johnson were involved in a gun battle with East Side gang members outside the Tomato City Pizza restaurant on Douglas Avenue in Providence. East Side gang members shot at the residence of Montrel Johnson in Chad Brown earlier that day; Keishon Johnson sent a text identifying the shooter’s vehicle to Andrade. Andrade and Kendrick Johnson then encountered the vehicle outside Tomato City and both sides exchanged gunfire. Andrade and Kendrick Johnson crashed their vehicle and fled the scene. Andrade’s DNA on the gun found at the scene and Kendrick Johnson’s DNA on the steering wheel of the vehicle.
- On August 19, 2017, Keishon Johnson and two other Chad Brown members were arrested by Providence Police following a drive-by shooting on Hendrick Street in Providence. Expelled shell casings found at the scene as well as two firearms later recovered were ballistically matched. Subsequent investigation established that one of the two firearms, a .40 caliber silver Beretta handgun, was used in the three of the four shootings underlying the RICO count (Walmart, Appian and Hendrick).
In addition, the evidence established that Kendrick Johnson and Andrade engaged in illegal drug and liquor sales, including distributing cocaine and marijuana. The investigation also established Keishon Johnson’s role in a marijuana distribution conspiracy involving Chad Brown members.
This prosecution arose from a Project Safe Neighborhoods (PSN), Providence Police and Alcohol, Tobacco, Explosives and Firearms (ATF) investigation. 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.
The case was prosecuted jointly in federal court by Assistant United States Attorneys Paul F. Daly, Jr., and John P. McAdams, and Special Assistant United States Attorney James Baum of the Rhode Island Attorney General’s Office. The sentences were imposed by U.S. District Court Chief Judge John J. McConnell, Jr.
United States Attorney Cunha recognizes and thanks the Rhode Island Attorney General’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the member agencies of the ATF Task Force; the Providence, Pawtucket and North Providence Police Departments; the Rhode Island State Police; the Rhode Island Department of Corrections; and the United States Marshals Service for their close collaboration, support, and ongoing efforts in the investigation and prosecution of this case.
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Career Armed Bank Robber Sentenced to Nearly 20 Years in Federal Prison for Latest String of 10 Heists Across Southern CaliforniaRead the Press Release
LOS ANGELES – A man who served more than two decades in state prison for a series of armed bank robberies in the 1990s was sentenced this morning to 235 months in federal prison for committing another 10 bank robberies across Southern California – a string that started only four months after he was released from custody for his prior robbery spree.
Todd Eugene Cannady, 61, who was living in Palm Springs at the time of his arrest last year, was sentenced by United States District Judge Stanley Blumenfeld Jr.
During today’s hearing, Judge Blumenfeld said it is “hard to imagine crimes that are more serious. The court has seen them, but this ranks in the higher order of seriousness.”
Cannady pleaded guilty in October 2021 to one count of armed bank robbery and one count of using a firearm during a crime of violence. These offenses relate to the July 1, 2021 robbery of a Chase Bank branch in Riverside in which Cannady used a 9mm “ghost gun” to threaten employees and force them to open teller drawers. Cannady was arrested soon after this incident by deputies with the Riverside County Sheriff’s Department, but not before he fled in a rented car, hit several vehicles during a high-speed chase, and crashed on Interstate 215.
When he pleaded guilty, Cannady admitted committing another nine bank robberies between July 2018 and March 2021 in Manhattan Beach, Century City, Rancho Mirage, Torrance, Banning and Carson. Cannady netted $757,763 during the 10 robberies.
Cannady twice robbed the same Wells Fargo Bank branch in Rancho Mirage – once in June 2019 and again in January 2020.
“Todd Eugene Cannady is a serial armed bank robber,” prosecutors wrote in a sentencing memorandum filed with the court. “From 1982 to 2021, [Cannady] committed armed robberies of individuals or banks whenever he was not incarcerated. He did so at great economic expense to individuals and institutions and great emotional expense to the tens of victims he traumatized in each robbery and at each bank. In spite of this trauma, [Cannady] seemingly took great joy in his crimes, yelling…‘John Dillinger lives!’ during a 2019 armed bank robbery.”
The FBI and the Riverside County Sheriff’s Department investigated this matter.
Assistant United States Attorney Kevin J. Butler of the Violent and Organized Crime Section prosecuted this case.
Brooklyn Man Sentenced to 18 Years in Prison for Drive-By Shooting That Wounded A Pregnant BystanderRead the Press Release
Earlier today, in federal court in Brooklyn, Steven Bynum was sentenced by United States District Judge Ann M. Donnelly to 18 years in prison for possessing, brandishing, and discharging a firearm in furtherance of a drug distribution conspiracy. On September 10, 2017, Bynum shot and wounded a pregnant innocent bystander in the head leaving the victim severely disabled after firing a handgun into a group of people. Bynum pleaded guilty to the charges in February 2020.
Breon Peace, United States Attorney for the Eastern District of New York, John B. Devito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Field Division (ATF), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence holds the defendant accountable for his callous and wanton disregard for human life and safety in opening fire and shooting a pregnant bystander in the head, causing her permanent paralysis,” stated United States Attorney Peace. “This Office and its law enforcement partners are deeply committed to protecting residents in our communities from the dangers of senseless gun violence and to ensuring that defendants like Bynum are prosecuted and punished for their heinous acts.”
“Today’s sentencing of a violent criminal shows the steadfast commitment by ATF to identify and bring to justice those who commit any act of violence in our communities” stated ATF Special Agent-in-Charge Devito. “The defendant’s vile actions and disregard for human life left a mother paralyzed and threatened the life of her unborn child. Thanks to the efforts of the ATF/NYPD Sparta Task Force, this defendant will no longer be able to commit willful acts of violence and prey upon the citizens we have sworn to protect.”
“Gun violence has absolutely no place in New York City,” stated NYPD Commissioner Sewell. “The NYPD, working in tandem with our law enforcement partners, is relentless in its pursuit of the very few people in our city who are responsible for the majority of the violence. Today’s sentencing sends a strong message that this behavior will never be tolerated in New York City, and that anyone reckless enough to pick up and use an illegal gun here will face the full consequences of their actions. I commend the NYPD investigators, the members of ATF, and the U.S. Attorney for the Eastern District of New York – whose collective efforts resulted in this arrest, conviction, and meaningful prison sentence.”
According to court documents, in early 2017, Bynum stole drugs from a rival drug dealer (Individual 1) and then distributed those drugs at the Kingsborough Houses in Crown Heights. In June 2017, Individual 1 retaliated against Bynum for the theft by assaulting Bynum near the Kingsborough Houses. On September 10, 2017, Bynum drove a rental car to the vicinity of 2070 Dean Street in East New York to retaliate against Individual 1. Bynum located Individual 1 standing with a group of people, including a pregnant bystander (“Victim”) who lived in the neighborhood. Bynum circled the block, slowed his vehicle, and fired multiple shots from an illegally possessed 9mm handgun at the group. Bynum’s shots missed Individual 1 and instead hit the five-month pregnant Victim twice in the head. The Victim underwent multiple surgeries and spent over two months in the hospital recovering from her wounds. As a result of the shooting, the Victim is permanently paralyzed on her right side, has cognitive and speaking impediments, and suffers from other serious medical issues. The Victim’s baby was born two months’ prematurely but survived.
This case was brought as 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. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
Assistant United States Attorney Francisco J. Navarro is in charge of the prosecution.
The Defendant:
STEVEN BYNUM (also known as “Nitty”)
Age: 40
Brooklyn, New YorkE.D.N.Y. Docket No. 19-CR-255 (AMD)
Baltimore Robber Pleads Guilty to Federal Drug Distribution and Firearm ChargesRead the Press Release
Baltimore, Maryland – Billy Wesson, age 20, of Baltimore, Maryland, pleaded guilty today to possession with intent to distribute cocaine and to possession of a firearm in furtherance of a drug trafficking crime. Wesson also admitted to participating in a series of armed robberies of convenience stores.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.According to his guilty plea, between August 4, 2020 and August 7, 2020, Wesson and a co-conspirator committed three armed robberies of convenience stores. In the first robbery on August 4, the store clerk began to run to the rear of the store when she saw the robbers enter. Wesson chased after the employee, caught up with her and walked her back to the cash register, which she opened at gunpoint. In the second robbery on August 6, Wesson approached a store employee from behind and placed the gun to the back of the employee’s head, telling her to “go to the register and open it.” Wesson walked the employee to the register area and again ordered her to open the register, which she did. In the third robbery on August 7, which was committed less than an hour after the second robbery, Wesson pointed a gun at a store employee immediately upon entering the store. Wesson ordered the employee to open the register, which he did, but the employee could only open the first cash drawer and not the second drawer. As in the two previous robberies, Wesson took the cash from the drawer and fled the store.
As detailed in his plea agreement, on the evening of August 8, 2020, at approximately 10:53 PM, four Baltimore Police Department officers were conducting routine patrol in an unmarked vehicle on 5100 block of Midwood Avenue in the Winston-Govans neighborhood in Northwest Baltimore. There was a party in the area and individuals were in the street and on the sidewalk. The officers saw an individual later, identified as Wesson, wearing a satchel across the right side of his body and conducting a “security check,” indicating that Wesson was armed.
The officers stopped their car and began to get out to approach Wesson. Wesson immediately fled, followed by the four officers. As he ran from the officers, Wesson threw his satchel on the sidewalk not far from one of the homes on Midwood Avenue, where it was almost immediately recovered by law enforcement. The satchel was searched and was found to contain a loaded firearm that matched the gun used in connection with the robberies. The satchel also contained a medicine bottle containing 7 blue baggies of a white rock substance (confirmed by lab results to be cocaine), and a black drawstring bag containing the following: (1) a plastic bag containing a white rock substance (confirmed to be cocaine); (2) 55 gel capsules of white powder (later confirmed not to be drugs); (3) 3 green Ziploc baggies of white rock substance (confirmed to be cocaine); (4) 3 pink jugs of white rock substance (confirmed to be cocaine). The cocaine—which amounted to less than 50 grams total—was packaged for street-level distribution.
On Wesson’s person, law enforcement recovered $279 in cash—proceeds from his drug trafficking—and suspected marijuana. Wesson was arrested. Wesson admitted that he possessed the firearm in connection with and in furtherance of his illegal business selling cocaine and the he knew he was prohibited from possessing a firearm or ammunition.
Wesson and the government have agreed that, if the Court accepts the plea agreement, Wesson will be sentenced to between seven years and eleven years in federal prison. U.S. District Judge Catherine C. Blake has scheduled sentencing for November 4, 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. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.United States Attorney Erek L. Barron commended the FBI and the Baltimore Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Paul A. Riley and Colleen McGuinn, 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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Albany Man Sentenced to 148 Months for Distributing, Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Christopher Pratt, age 58, of Albany, was sentenced today to 148 months in prison for distributing, receiving and possessing child pornography, announced United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his prior guilty plea before United States District Judge Mae A. D’Agostino, Pratt admitted that he distributed and received child pornography files over the internet through a peer-to-peer file sharing program. Pratt also admitted that he possessed numerous child pornography files on his personal laptop, and that he created a folder on his laptop – labeled “JB” for “jailbait” – in which he stored child pornography images that he downloaded from the internet. The files included depictions of the sexual abuse and rape of prepubescent children and toddlers.
United States District Judge Mae A. D’Agostino also imposed a 15-year term of supervised release, which will start after Pratt is released from prison, and ordered payment of $18,000 in restitution for the child victims of Pratt’s offenses.
This case was investigated by the FBI and its Child Exploitation Task Force, including investigators from the Albany County Sheriff’s Office and forensic analysts from the New York State Police Computer Crime Unit, and was prosecuted by Assistant U.S. Attorneys Rachel Williams and Katherine Kopita.
This case is prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Adair Ford Boroughs Sworn in as United States Attorney for the District of South CarolinaRead the Press Release
COLUMBIA, SOUTH CAROLINA — Adair Ford Boroughs was officially sworn in today as United States Attorney for the District of South Carolina. U.S. Attorney Boroughs was nominated by President Joseph R. Biden on June 6, 2022, and was confirmed by the U.S. Senate on July 21, 2022. United States District Judge Richard M. Gergel administered the oath of office to U.S. Attorney Boroughs in a ceremony at the federal courthouse in Charleston. An investiture ceremony will take place at a later date.
“I am incredibly excited and honored to return to the Department of Justice as the U.S. Attorney for the District of South Carolina,” said U.S. Attorney Boroughs. “The team at the U.S. Attorney’s Office is incredibly talented, dedicated, and committed to the mission. I look forward to digging in and doing the work alongside them, as well as alongside our law enforcement partners and our communities, to protect and serve the citizens of the District of South Carolina and to seek fairness and justice in all that we do.”
U.S. Attorney Boroughs is the chief federal law enforcement officer responsible for federal criminal prosecutions and civil litigation involving the United States in the District of South Carolina. She supervises an office of approximately 61 Assistant United States Attorneys, 75 support staff, and 13 contract support staff. The office prosecutes federal crimes affecting the district, including narcotics and firearms cases, gang violence, human trafficking, white-collar crime, securities fraud, public corruption, terrorism, and civil rights violations. The office also defends the United States in civil cases and collects debts owed to the United States.
Prior to her confirmation as U.S. Attorney, Boroughs was a partner at Boroughs Bryant, LLC where she handled complex litigation and provided strategic counsel to clients. From 2017 to 2019, she served as Executive Director of Charleston Legal Access, a nonprofit, sliding-scale law firm that she helped found to address the justice gap in South Carolina. From 2013 to 2017, Boroughs clerked for Judge Gergel, where she worked on a number of high-profile cases including United States v. Dylan Roof, where the defendant was convicted of killing nine Black parishioners during a prayer meeting at the historic Charleston Emanuel AME church. Boroughs began her legal career in the Tax Division of the U.S. Department of Justice in Washington, D.C. as part of the Attorney General’s Honors Program, serving from 2007 to 2013. While there, she handled complex civil ligation across the country, received awards for her trial work and mentorship of new attorneys, and served on the Assistant Attorney General’s Diversity Committee where she led the work on overhauling the Division’s hiring practices. Prior to law school, Boroughs taught high school mathematics in South Carolina’s public schools.
Boroughs received her J.D., with distinction, from Stanford Law School in 2007 and her B.S. in Mathematics, summa cum laude, from Furman University in 2002. She is a 2001 Harry S. Truman Scholar.
For more information about the U.S. Attorney’s Office for the District of South Carolina, please visit https://www.justice.gov/usao-sc.
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25 July 2022
“Out of practice” truck driver guilty of smuggling 110 in refrigerated trailerRead the Press Release
LAREDO, Texas – A 36-year-old border crossing Visa holder out of Nuevo Laredo, Mexico, has admitted to conspiring to transport an undocumented alien, announced U.S. Attorney Jennifer B. Lowery.
Marthin Rueda Alcorta pleaded guilty to his role in smuggling 110 undocumented individuals in a refrigerated trailer.
On May 24, Rueda Alcorta drove a tractor trailer into the Border Patrol (BP) checkpoint north of Laredo. He drove erratically through an inspection lane and nearly hit a K-9 until authorities ordered him to stop.
Law enforcement conducted a search of the trailer and discovered 110 people in his trailer. All were later determined to be illegally present in the country and were from Mexico, Guatemala, Honduras and El Salvador.
As part of his plea, Rueda Alcorta admitted he was desperate for money. He sought out an alien smuggler and agreed to drive undocumented individuals from Laredo to San Antonio for $5,000.
Rueda Alcorta was previously employed as a truck driver but admitted he was “out of practice.”
U.S. District Judge Diana Saldaña will impose sentencing at a later date. At that time, Rueda Alcorta faces up to 20 years in federal prison and a $250,000 maximum fine. He may also lose his status as a visa holder.
Homeland Security Investigations conducted the investigation with the assistance of BP. Assistant U.S. Attorney Homero Ramirez is prosecuting the case.
Vancouver Man Sentenced to 16 Years in Prison for Child Sex TraffickingRead the Press Release
PORTLAND, Ore.—A Vancouver, Washington man was sentenced to federal prison today for transporting two teen girls across state lines, drugging and sexually abusing them, and selling them to other men for sex.
Johnl Jackson, 34, was sentenced to 200 months in federal prison and 5 years’ supervised release.
According to court documents and trial testimony, in 2016, Jackson met and befriended Keonte Desmond Scott, 23, also of Vancouver, after Scott’s release from prison. Jackson sold Scott cocaine and eventually began coaching him in commercial sex trafficking. In late 2016, Scott began a relationship with Jackson’s future co-defendant and fellow Vancouver resident Diana Petrovic, 23. Jackson helped Scott traffic Petrovic and they soon began using Petrovic to recruit and traffic other minor females.
By the summer of 2018, Scott returned to prison and Petrovic began working directly with Jackson. In late August 2018, Petrovic targeted a 15-year-old female on social media that Petrovic and Scott had previously trafficked, and convinced the girl to meet under false pretenses. Jackson, armed with a firearm, Petrovic, and another adult woman drove to Eugene to pick her up. When the group arrived, the girl was accompanied by a 14-year-old friend. On the drive back to Vancouver, Jackson supplied both girls with drugs and was overheard talking about how they are going to make them some money.
In Vancouver, Jackson supplied them with even more drugs and then Jackson and Petrovic engaged in sex acts with the heavily intoxicated girls. At some point they went to a house for Jackson to get additional cocaine. Inside the house, they sent one of the girls back to a room to engage in sexual acts with the drug supplier in exchange for drugs and money. Jackson and Petrovic later took the girls to a gathering at an auto shop in Battle Ground, Washington where they forced one of the girls to have sex with an adult man and took the money that the man paid her. The other girl, convinced Jackson and Petrovic were going to kill her, was able to escape with a man from the shop who helped her get back home.
Jackson and Petrovic took the remaining girl to a residence in Northeast Portland where she was forced to have sex with one man for $300 and forcibly raped by another. The girl ultimately was able to escape the hotel they later took her to and was rescued several hours later by her grandfather.
On May 8, 2019, a federal grand jury in Portland returned a six-count indictment charging Scott, Petrovic, and two accomplices with sex trafficking of children and transporting minors with intent to engage in sexual activity.
On October 9, 2019, in a separate criminal case, a federal grand jury in Portland returned a three-count indictment charging Jackson and Petrovic with sex trafficking of a child by force, fraud, and coercion; sex trafficking of a child; and transportation of a minor with intent to engage in sexual activity. Later, on November 17, 2021, Jackson and Petrovic were charged by a second superseding indictment with conspiring to engage in sex trafficking of children; sex trafficking of a child; sex trafficking of a child by force, fraud, and coercion; and transporting a minor with intent to engage in sexual activity.
On March 11, 2022, Jackson was convicted at trial by a federal jury in Portland.
On July 22, 2020, Petrovic was charged by criminal information with distributing a controlled to a person under 21 and pleaded guilty, resolving both of her criminal cases. She will be sentenced on April 23, 2023.
On December 9, 2021, Scott pleaded guilty to two counts of sex trafficking. On May 31, 2022, Scott was sentenced to 97 months in federal prison and five years’ supervised release.
This case was investigated by FBI Portland’s Child Exploitation Task Force (CETF) with assistance from the Tigard Police Department and Portland Police Bureau. It was prosecuted by Assistant U.S. Attorneys Ashley Cadotte and Pamela Paaso with assistance from Assistant U.S. Attorneys Kelly Zusman, Suzanne Miles, and Thomas Ratcliffe, and Multnomah County Deputy District Attorney Glen Ujifusa.
The FBI CETF conducts sexual exploitation investigations, many of them undercover, in coordination with federal, state and local law enforcement agencies. CETF is committed to locating and arresting those who prey on children as well as recovering and assisting victims of sex trafficking and child exploitation.
If you or someone you know is in danger, please call 911. If you are a human trafficking victim or have information about a potential human trafficking situation, please call the National Human Trafficking Resource Center at 1-888-373-7888 or by texting 233733. Calls and texts are answered 24 hours a day, seven days a week.
Human trafficking is a serious federal crime where individuals are compelled by force, fraud, or coercion to engage in commercial sex, labor, or domestic servitude against their will. Traffickers exploit and endanger some of the most vulnerable members of our society and cause unimaginable harm. In January 2022, Attorney General Merrick B. Garland launched a new national strategy to combat human trafficking that aims to prevent all forms of trafficking, prosecute trafficking cases, and support trafficking victims and survivors.
U.S. Attorney Parker recognizes Service Dog Awareness Week, reminds public that ADA, FHA protect service animals & ownersRead the Press Release
CINCINNATI – United States Attorney Kenneth L. Parker recognized the observance of Service Dog Awareness Week in Ohio from July 25 through 29 and reminded the public of the valuable contributions that service animals make in our communities. Parker noted the federal laws that protect these animals and those who use them.
“The Department of Justice continues to receive many questions about how the Americans with Disabilities Act (ADA) applies to service animals,” U.S. Attorney Parker said. “The ADA generally requires state and local government agencies, businesses, and non-profit organizations to allow service animals to go most places where the public can go, unless doing so would ‘fundamentally alter’ the nature of the goods or services provided to the public.”
A service animal is any breed of dog that has been individually trained to do work or perform tasks directly related to a person’s disability. Accordingly, entities that have a “no pets” policy generally must modify the policy to allow service animals into their facilities. Entities can, however, ask an individual to remove a particular service animal if such animal is not housebroken or if the service animal is out of control and the handler does not take effective action to control the animal. When there is a legitimate reason to ask that a service animal be removed, staff must offer the person with the disability the opportunity to obtain goods or services without the animal’s presence.
Additional information about ADA protections involving service animals is available at https://beta.ada.gov/topics/service-animals/.
The Fair Housing Act, which applies to many types of public and privately-owned housing, also offers protections for residents or applicants with a disability who use a service animal or other animal to assist with their disability. More information about the Fair Housing Act is available at https://www.hud.gov/program_offices/fair_housing_equal_opp/fair_housing_act_overview.
Mr. Parker added that anyone who believes they have experienced discrimination because of their use of a service animal can report potential violations directly to the U.S Attorney’s Office. A referral form is now available at the office’s main website at https://www.justice.gov/usao-sdoh.
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U.S. Attorney Announces Charges in Four Separate Insider Trading Cases Against Nine Individuals, Including Former U.S. Congressman, Former FBI Agent Trainee, Tech Company Executives, and Former Investment BankerRead the Press Release
Former U.S. Congressman Charged with Insider Trading Based on Inside Information Obtained from Consulting Work
Former FBI Agent Trainee and Friend Charged with Insider Trading Based on Inside Information Stolen from the Trainee’s former Girlfriend
Network of Individuals Charged with Insider Trading based on Inside Information obtained from the Former Chief Information Security Officer of Telecommunications Company
New York-based Investment Banker Charged with Insider Trading for Using Stolen Information about Potential Investments to Tip Trading Friend
Damian Williams, United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”) announced charges in four separate insider trading cases, collectively charging nine defendants with securities fraud and other related charges, including in some cases, obstruction of justice. These cases involve trading based on confidential information misappropriated from entities and individuals in a variety of industries and reflect the U.S. Attorney’s Office for the Southern District of New York’s broad investigative reach and continued resolve to root out corruption in our financial markets. The defendants in these cases made between hundreds of thousands and millions of dollars from illegal securities trading based on material, non-public information that was stolen from numerous sources.
U.S. Attorney Damian Williams said: “The message of today’s arrests is simple: My Office remains as committed as ever to rooting out insider trading in all forms. Insider trading erodes the trust and confidence of the investing public in our capital markets. We will continue to investigate and prosecute those who cheat in the markets by using insider information to line their own pockets. The four cases charged today–involving a former politician, a former member of law enforcement, California-based technology company executives, and a New York-based investment banker–demonstrate the breadth and scope of our focus on catching and prosecuting these criminals in all areas of our financial system.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “The four cases laid out here illustrate insider trading continues to plague our financial markets. The specifics of each case may vary, however they all have one thing in common - everyone involved let greed dictate their actions and made trades based on material non-public information. The crimes we allege threaten both the integrity of our financial markets and investors’ faith in them. Our actions demonstrate we remain committed to ensuring a level playing field for all.”
According to the allegations contained in the Indictments filed in Federal Court and other publicly available information:[1]
United States v. Buyer
STEPHEN BUYER, a former U.S. Congressman from Indiana, engaged in two separate, but interrelated insider trading schemes to steal material non-public information that he obtained through consulting work and place timely, profitable securities trade based on that stolen information. First, in or about March and April 2018, BUYER purchased shares of Sprint Corporation (“Sprint”) ahead of the April 29, 2018 public announcement that T-Mobile US, Inc. (“T-Mobile”) and Sprint would merge, in a deal valued at $26.5 billion. Prior to the public announcement of the transaction by T-Mobile, executives at T-Mobile told a small, trusted group of consultants that they had retained to work on the deal, including BUYER, about the merger and directed them to keep the information confidential. BUYER breached his duty of confidentiality to T-Mobile and misappropriated that information by purchasing shares of Sprint across several brokerage accounts, including his own accounts, an account held jointly with his cousin, and an account in the name of a close personal friend (“Individual-1”). Across these accounts, BUYER made more than $126,000 from the purchase and subsequent sale of Sprint stock after the merger was publicly announced.
In or about June through August 2019, BUYER traded in shares of Navigant Consulting, Inc. (“Navigant”) ahead of Navigant’s acquisition by consulting and advisory firm Guidehouse. As with Sprint, BUYER determined through his consulting work for Guidehouse that Guidehouse intended to acquire Navigant, and misappropriated that information by purchasing Navigant shares ahead of the public announcement of the acquisition. BUYER purchased Navigant shared across several brokerage accounts, including accounts in his own name, joint accounts held with family members, and Individual-1’s account. In total, Buyer made more than $223,000 from his illegal Navigant trades.
BUYER, 63, of Noblesville, Indiana, has been charged with four counts of securities fraud, each of which carries a maximum term of 20 years in. BUYER was arrested this morning and the case has been assigned to U.S. District Judge Richard M. Berman.
United States v. Markin and Wong
In early 2021, SETH MARKIN and BRANDON WONG together made more than $1.4 million dollars in illegal profits by trading in stock based on inside information that MARKIN misappropriated from his then-girlfriend, who was then an attorney at a major law firm in Washington D.C. assigned to work on the acquisition of Pandion Therapeutics (“Pandion”) by Merck & Co. (“Merck”). To carry out the illegal insider trading scheme, MARKIN secretly looked through his girlfriend’s confidential work documents, without her permission, and learned that in a matter of weeks, Merck, a publicly traded pharmaceutical company, was going to acquire Pandion, a publicly traded biotechnology company, for approximately three times the value of Pandion’s then-share price. After misappropriating this material non-public information from his girlfriend, MARKIN purchased shares in Pandion, and tipped several friends and family members, including WONG. WONG, in turn, purchased hundreds of thousands of dollars’ worth of Pandion shares, and told at least eight other people to purchase Pandion shares. In total, MARKIN and WONG directly or indirectly caused more than twenty people to trade in Pandion stock based on the material non-public information that MARKIN misappropriated from his girlfriend resulting in millions of dollars of illegally obtained trading profits.
At the time of the relevant trades, MARKIN had been accepted into the Federal Bureau of Investigation as a new agent trainee. In addition to perpetrating the insider trading scheme, MARKIN lied to conceal his illegal Pandion trades. In or about June 2021, after MARKIN and his girlfriend had ended their relationship, and as MARKIN was preparing to begin training as a new agent at the FBI Academy in Quantico, Virginia, MARKIN’s former girlfriend called him to ask why MARKIN’s name had come up in an inquiry by the Financial Industry Regulatory Authority (“FINRA”) into trading in Pandion stock. In response, MARKIN lied to her and falsely claimed that he did not trade in Pandion stock. In addition, in or about November 2021, MARKIN lied to FBI agents when he was interviewed about his Pandion trading, conduct that forms the basis for a separate charge against MARKIN for making false statements.
MARKIN, 31, of Washington Crossing, Pennsylvania, has been charged with nine counts of securities fraud and eight counts of tender offer fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy and one count of making false statements, each of which carries a maximum term of 5 years in prison, and was arrested this morning.
WONG, 38, of New York, has been charged with eleven counts of securities fraud and ten counts of tender offer fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy, which carries a maximum term of 5 years in prison and was arrested this morning. The case has been assigned to U.S. District Judge Edgardo Ramos.
United States v. Bhardwaj, Kakkera, and Saeedi
From November 2020 through April 2020, AMIT BHARDWAJ, SRINIVASA KAKKERA, ABBAS SAEEDI, engaged in an insider trading scheme in which BHARDWAJ, who was the Chief Information Security Officer (“CISO”) of Lumentum Holdings Inc. (“Lumentum”), misappropriated material, non-public information belonging to Lumentum and then traded on that information himself and tipped his criminal associates, including KAKKERA, SAEEDI, Dhirenkumar Patel, and Ramesh Chitor, in connection with two separate potential acquisitions by Lumentum, Coherent, Inc. (“Coherent”) and Neophotonics Coproration (“Neophotonics”).
In approximately December 2020, BHARDWAJ learned that Lumentum was considering acquiring Coherent. Based on this material, non-public information, BHARDWAJ himself purchased Coherent stock and call options, and BHARDWAJ tipped two friends – including Dhirenkumar Patel – and a close family relative and these individuals all traded in Coherent securities as a result. BHARDWAJ and Patel agreed that Patel would pay BHARDWAJ fifty percent of the profits that Patel earned by trading in Coherent based on the MNPI provided by BHARDWAJ. When Coherent’s stock price increased substantially following the January 19 Announcement, AMIT BHARDWAJ, his close family member, his friend Patel, and another friend, closed their positions in Coherent securities and collectively profited by nearly $900,000.
In or about October 2021, BHARDWAJ learned that Lumentum was engaged in confidential discussions with Neophotonics about a potential acquisition. BHARDWAJ provided this MNPI to SRINIVASA KAKKERA, ABBAS SAEEDI, and Ramesh Chitor, and these individuals all traded in Neophotonics securities as a result. In connection with Chitor’s trading, BHARDWAJ and Chitor agreed that Chitor and Bhardwaj would split the profits equally. When Neophotonics’ stock price increased substantially following the announcement of the acquisition in November 2021, KAKKERA, SAEEDI and Chitor closed their positions in Neophotonics securities and made collectively approximately $4.3 million in realized and unrealized profits.
After they were interviewed by the Federal Bureau of Investigation voluntarily and served with federal grand jury subpoenas on approximately March 29, 2022, BHARDWAJ, KAKKERA and SAEEDI took steps to obstruct the federal investigation of their conduct. On the day of the March 29, 2022 FBI interviews, BHARDWAJ drove to the homes of certain of his co-conspirators to encourage them not to tell the federal authorities the truth about their insider trading scheme. BHARDWAJ, KAKKERA, SAEEDI, and Dhirenkumar Patel then met in person on multiple occasions and discussed, among other things, potential false stories that would conceal their insider trading scheme, as well as creating false documents to buttress lies regarding payments that were, in reality, related to the insider trading scheme. BHARDWAJ also solicited assistance from Patel in seeking to ensure that any potential incriminating information from BHARDWAJ’s work laptop would be deleted.
BHARDWAJ, 49, of San Ramon, California, who was arrested this morning, has been charged with seven counts of securities fraud and two counts of wire fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy to commit securities fraud and wire fraud, and one count of conspiracy to obstruct justice, each of which carries a maximum term of 5 years in prison.
KAKKERA, 47, of Pleasanton, California, who was arrested this morning, has been charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy to commit securities fraud and wire fraud, and one count of conspiracy to obstruct justice, each of which carries a maximum term of 5 years in prison.
SAEEDI, 47, of Fremont, California, who was arrested this morning, has been charged with one count of securities fraud and one count of wire fraud, each of which carries a maximum term of 20 years in prison, and one count of conspiracy to commit securities fraud and wire fraud, and one count of conspiracy to obstruct justice, each of which carries a maximum term of 5 years in prison.
The case has been assigned to U.S. District Judge Gregory H. Woods.
Also unsealed today were charges against Dhirenkumar Patel and Ramesh Chitor, who have separately pled guilty and are cooperating with the Government in this case.
United States v. Goel
BRIJESH GOEL was an investment banker in the financing group at a major international investment bank in New York, New York (the “Investment Bank”). In that position, GOEL received confidential, internal emails directed to the Investment Bank’s Firmwide Capital Committee, which contained detailed information and analysis about potential mergers and acquisitions transactions the Investment Bank was considering financing. In violation of the duties that he owed to the Investment Bank, GOEL misappropriated that confidential information and tipped a friend, who worked at another investment bank in New York, New York (“CC-1”), with the names of potential target companies from these FWCC emails, typically during in-person meetings (such as when the two met to play squash). CC-1 then used that MNPI to trade call options, including short-dated, out-of-the-money call options, in brokerage accounts that were in the name of CC-1’s brother. GOEL and CC-1 agreed to split the profits from their trading. Between approximately 2017 and 2018, GOEL tipped CC-1 on at least seven deals in which the Investment Bank was involved, yielding total illegal profits of approximately $280,000.
Between approximately May and June 2022, GOEL also obstructed investigations by a Grand Jury in the Southern District of New York and the U.S. Securities and Exchange Commission. Specifically, GOEL deleted and asked CC-1 to delete electronic communications regarding this insider trading scheme, including during an in-person meeting that CC-1 consensually recorded.
GOEL, 37, of New York, New York, has been charged with four counts of securities fraud and one count of obstruction of justice, each of which carries a maximum term of 20 years in prison, and one count of conspiracy to commit securities fraud and tender offer fraud, which carries a maximum term of 5 years in prison. GOEL was arrested yesterday, and the case has been assigned to U.S. District Judge P. Kevin Castel.
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The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as the sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Department of Justice’s Office of the Inspector General. He further thanked the Securities and Exchange Commission and the victim law firm and companies for their cooperation and assistance across these investigations.
These cases are being handled by the Office’s Securities and Commodities Fraud Task Force. United States v. Buyer is in the charge of Assistant U.S. Attorneys Jordan Estes, Kiersten Fletcher, and Elizabeth Hanft. United States v. Markin and Wong is in the charge of Assistant U.S. Attorneys Kiersten Fletcher, Nicolas Roos, and Negar Tekeei. United States v. Bhardwaj, Kakkera, and Saeedi is in the charge of Assistant U.S. Attorneys Richard Cooper and Noah Solowiejczyk. United States v. Goel is in the charge of Assistant U.S. Attorney Joshua Naftalis.
[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth below constitute only allegations, and every fact described should be treated as an allegation.
Three Philadelphia-Area Men Charged in Connection with Scheme to Wash and Alter Checks Stolen from USPS Collection BoxesRead the Press Release
PHILADELPHIA – United States Attorney Jacqueline C. Romero announced that Naod Tsegay, 22, of Collingdale, PA; Fode Bangoura, 20, of Philadelphia, PA; and Zyier Williams, 19, also of Philadelphia, PA, were arrested and charged by Indictment with bank fraud, aggravated identity theft, possession of stolen United States Postal Service (USPS) keys, and possession of stolen mail. The charges arise from the defendants’ alleged scheme to fraudulently alter and deposit personal and business checks that had been stolen from the U.S. mail.
The Indictment alleges that between March and June 2021, Tsegay and his co-defendants recruited individuals to provide their bank account and debit card information, and then used those recruits’ bank accounts to deposit checks that had been stolen from blue USPS collection boxes located throughout the Eastern District of Pennsylvania. Each of the victims confirmed that they placed their checks in the mail at various blue collection boxes near their homes but their checks never reached the intended recipients. According to the Indictment, after altering the checks by changing the designated payees and increasing the dollar amount of the checks—often from a nominal sum to a payment of several thousand dollars—Tsegay allegedly deposited the stolen checks into the recruits’ bank accounts and later withdrew or attempted to withdraw the fraudulently deposited funds. The Indictment further alleges that Tsegay was ultimately found in unlawful possession of dozens of checks and money orders stolen from USPS collection boxes, as well as two Arrow Keys—keys belonging to USPS that are used by Postal employees to access blue collection boxes throughout the District. The total amount stolen or attempted stolen as a result of the defendants’ scheme exceeded $200,000.
“The United States Postal Service provides an essential service to nearly every citizen, often conveying income, bills and expenses which are the basis of many livelihoods,” said U.S. Attorney Romero. “If you choose to tamper with or steal U.S. mail for any reason, you can be assured that the federal government will conduct an intense investigation and aggressive prosecution, as we intend to in this case.”
“The United States Postal Inspection Service investigates many different crimes that affect the Postal Service, its customers, or that use the mail in the commission of the crime,” said Damon Wood, Inspector in Charge of the Philadelphia Division. “One of its original missions however, was to investigate the theft of mail. When folks use the mail to pay bills, send birthday cards, send business documents, or simply hope to receive a new pair of shoes that were ordered online, they should do so without fear that those items might be stolen. We have been working, and will continue to work, to identify, investigate, arrest, and support the prosecution of those responsible for stealing mail and shaking our collective trust in the mail system. I want to thank the United States Attorney’s Office and the numerous local police departments for working with us to bring these charges against these three individuals.”
If convicted, the defendants face mandatory terms of imprisonment and a fine of at least $1 million.
The case was investigated by the U.S. Postal Inspection Service and the Yeadon Borough Police Department, and is being prosecuted by Assistant United States Attorney Jessica Rice.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Staffing Company Owner Pleads Guilty to Payroll Tax CrimesRead the Press Release
A former New York City resident pleaded guilty today to willfully failing to collect and pay over employment taxes to the IRS on behalf of the temporary employment staffing agency he owned and operated.
According to court documents and statements made in court, Steven Heppenheimer, 73, owned and operated a temporary employment business under two names, PTP Staffing Associates Inc. and PPS Associates Inc. From 2013 through 2017, Heppenheimer did not file any of the required quarterly payroll tax returns. As owner of the company, Heppenheimer was legally obligated to withhold from employee wages and pay over to the IRS payroll taxes, which included Social Security and Medicare taxes and federal income taxes. During that time, Heppenheimer withheld approximately $292,000 in payroll taxes from his employees’ wages, but he did not pay over any of these funds to the IRS.
Heppenheimer is scheduled to be sentenced on Jan. 25, 2023. He faces a maximum penalty of five years prison, as well as a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Breon Peace for the Eastern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Ann M. Cherry and Brittney Campbell of the Tax Division are prosecuting the case.
St. Louis County man enters plea avoiding trial on numerous counts of robberyRead the Press Release
ST. LOUIS – United States District Court Judge Ronnie A. White accepted a plea of guilty from Demetrius Smith on today’s date prior to the start of his jury trial. A grand jury previously indicted Smith on several counts of armed robbery and weapons charges.
Demetrius Smith, 35, was scheduled to stand trial this week on several counts of armed robbery stemming from a crime spree that began in mid-to-late November 2018. According to court documents, Smith pleaded guilty to four robbery counts, and one attempted robbery. As part of the plea, the parties will ask the Court to sentence Smith to 22 years in federal prison at a hearing scheduled for October 25, 2022.
Smith committed armed robberies of the:
T-Mobile store in Creve Coeur, Missouri on Nov. 15, 2018
MetroPCS store in Bridgeton, Missouri on Nov. 21, 2018
Bucky’s Express in Overland, Missouri, and QuikTrip in Maryland Heights, Missouri, on Nov. 24, 2018
7-Eleven (attempted robbery) in St. Louis County on Nov. 24, 2018
The investigation revealed Smith would use his cell phone to call the targeted stores to see if a manager was present. Smith thought that with a manager present, he was more likely to access the safe during the robbery. He walked by the stores immediately before each robbery. He waited for a moment when there were no customers and only a single employee in the store before robbing it. If a customer came in during the robbery, he abandoned the robbery and fled.
On November 26, 2018, police from the Overland Police Department located Smith at his apartment as they were investigating the robbery of the Bucky’s Express. Police searched the car that Smith rented and which he used during the robberies. The car contained the duffel bag used in the second robbery. The car contained the gloves worn by Smith in the second, third, fourth, and fifth robberies. The car also contained a firearm, which Smith admitted to possessing. This firearm was the firearm used by Smith in all five robberies. At the time of his arrest, Smith was wearing black pants and a black sweatshirt. The black sweatshirt was the sweatshirt worn by Smith during the second, third, fourth, and fifth robberies. The pants were the pants worn by
Smith during the first, third, fourth, and fifth robberies.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Overland Police Department; the Bridgeton Police Department; the Creve Coeur Police Department; the Maryland Heights Police Department; and the St. Louis County Police Department.
Springfield, Illinois, Man Sentenced to 84 Months in Prison for Possession with Intent to Distribute Five Grams or More of Actual MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Michael Bale, 44, of the 4000 block of Sandhill Road was sentenced on July 22, 2022, by U.S. District Judge Sue E. Myerscough to 84 months in prison for possessing with intent to distribute five grams or more of methamphetamine (actual).
Bale was indicted in March 2020 and pleaded guilty in March 2022.
The statutory penalties for possessing with intent to distribute five grams or more of methamphetamine (actual) are up to 40 years in prison, up to a $5,000,000 fine, up to life of supervised release, and restitution as determined by the district court.
The Drug Enforcement Administration, Illinois State Police, and Springfield Police Department investigated the case. Assistant United States Attorney Matthew Z. Weir represented the government in the prosecution.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF)’s National Methamphetamine Strategic Initiative, spearheaded locally by the Drug Enforcement Agency. The primary goal of this initiative is to address methamphetamine trafficking and its attendant consequences by using a coordinated, multi-agency approach targeting the highest levels of drug trafficking leadership. 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.
Sioux City Woman Sentenced to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced July 15, 2022, to 64 months’ imprisonment.
Abby Bringman, 34, from Sioux City, Iowa, pled guilty February 4, 2022, in federal court in Sioux City to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that from January 2021 through September 2021, Bringman and others distributed more than 20 pounds of methamphetamine. On September 29, 2021, Bringman was apprehended while retrieving a five-pound package of methamphetamine that was delivered by the US Postal Service from her source of supply in California. The package had been intercepted by the US Postal Service and was covertly delivered by agents to an address in Akron, Iowa. Bringman was found in possession of the US Postal package containing methamphetamine as well as approximately 1.5 additional pounds of methamphetamine which law enforcement later seized from Bringman’s vehicle. Agents also seized more than $22,000 from Bringman and her residence. Bringman admitted that over the previous several months she had previously received several packages from her source in California containing a total 15 to 20 pounds of methamphetamine. Bringman also admitted the money seized was drug proceeds and she planned to distribute some or all of the methamphetamine to other persons.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Bringman was sentenced to 64 months’ imprisonment and must serve a 3-year term of supervised release following imprisonment. There is no parole in the federal system. Bringman remains in custody of the United States Marshal until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4079.
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Sioux City Man Pleads Guilty to Meth ChargesRead the Press Release
Aurelio Solorio, age 37, from Sioux City, Iowa, pled guilty July 22, 2022, in federal court in Sioux City, to possession with intent to distribute methamphetamine.
At the plea hearing, Solorio admitted that on May 24, 2021, he was stopped for suspected OWI. A search of Solorio’s vehicle revealed 90 grams of pure methamphetamine which Solorio admitted he planned to sell to other persons. Law enforcement also seized a .380 handgun from Solorio’s storage shed. Solorio was previously convicted of conspiracy to distribute a controlled substance in the United States District Court for South Dakota in 2011, and as a result, Solorio was under federal supervised release at the time he committed the instant offense.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Solorio remains in custody pending sentencing. Solorio faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least ten years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-4001.
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