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Thursday 19 May 2022
Monessen Woman Sentenced to Prison for Pandemic Unemployment Assistance FraudRead the Press Release
PITTSBURGH, PA -- A former resident of Monessen, Pennsylvania, has been sentenced in federal court to 18 months’ imprisonment to be followed by a three-year term of supervised release on her conviction of five counts of mail fraud, United States Attorney Cindy K. Chung announced today.
United States District Judge William S. Stickman IV imposed the sentence on Amanda Fairfax, age 37.
In order to combat the devastating impact of the ongoing COVID-19 pandemic on the United States, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed into law. The CARES Act created the Pandemic Unemployment Assistance (PUA) Program, which provided unemployment benefits to individuals not eligible for regular unemployment compensation or extended unemployment benefits. Individuals are eligible for PUA if they were unemployed due to the pandemic and could accept a job if one were offered
According to information presented to the court, between June and July 2020, Fairfax knowingly filed claims for PUA benefits on behalf of five individuals, all of which contained fraudulent statements. The U.S. Postal Service transported the resulting benefits to two addresses associated with Fairfax. In total, Fairfax fraudulently obtained $66,240.00 over the course of her scheme.
As part of the sentence imposed, the defendant was also ordered to pay a special assessment of $500 and restitution in the amount of $66,240.00.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Chung commended the United States Department of Labor – Office of the Inspector General and the United States Secret Service for the investigation leading to the successful prosecution of Amanda Fairfax.
Modesto Man Indicted for Escape from CustodyRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Fernando Corrales, 23, of Modesto, charging him with escape from custody, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 19, 2022, Corrales was ordered confined at the Turning Point Residential Re-Entry Center in Fresno after a conviction in the District of Oregon for conspiracy to possess and distribute heroin. While Corrales was allowed to be on home confinement, on Feb. 20, 2022, he cut off his ankle monitor and absconded. His whereabouts were unknown until his arrest.
This case is the product of an investigation by the U.S. Marshals Service. Assistant U.S. Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Corrales faces a maximum statutory penalty of five years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Miami-Based VirtuOx, Inc. Agrees to Pay $3.15 Million to Resolve Allegations that it Fraudulently Billed MedicareRead the Press Release
Miami, Florida – VirtuOx, Inc. (“VirtuOx”), based in Coral Springs, Florida and operating Medicare approved Independent Diagnostic Testing Facilities (“IDTF”), has agreed to pay $3,150,000.00 to resolve allegations that it submitted or caused to be submitted false claims to Medicare for reimbursement.
The United States alleged that, from January 2016 to December 2020, VirtuOx violated the False Claims Act by falsely identifying the place of service for certain services it performed to obtain a higher rate of reimbursement from Medicare. In particular, the United States alleged that, in connection with its billing for overnight pulse oximetry claims, VirtuOx knowingly submitted false claims to Medicare identifying its IDTF located in San Francisco, California as the location of service for overnight pulse oximetry tests when, in fact, no services were performed at that location in relation to the overnight oximetry claims.
The United States further alleged that, from January 2016 to December 2020, VirtuOx administered overnight pulse oximetry tests and, at times, also billed Medicare for single determination pulse oximetry tests (commonly referred to as an oxygen “spot check”) for the same patient when in fact the only test performed was the overnight test. In particular, the United States alleged that, because an awake reading is necessarily taken as part of an overnight pulse oximetry test, the separate billing of a “spot check” is redundant and generally not necessary. Accordingly, the United States alleged that VirtuOx knowingly submitted false claims by separately billing for both an oxygen “spot check” and an overnight pulse oximetry test when only an overnight pulse oximetry test was performed.
Contemporaneous with the civil settlement, VirtuOx entered into a Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that VirtuOx retain an outside expert to perform annual claims reviews that address the place of service identified on the claim.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Omar Pérez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), announced the settlement.
“The fraudulent billing of Medicare results in systemically higher medical care costs for all,” said United States Attorney Gonzalez. “My Office will continue to hold accountable those health care providers who manipulate the system to benefit their own bottom line.”
“By submitting false claims to Medicare, providers waste valuable taxpayer dollars and undermine the integrity of federal health care programs,” said Special Agent in Charge Omar Pérez Aybar, at the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to investigate such actions to ensure the efficiency and integrity of these programs.”
This matter arose from a lawsuit filed by Amber Watt in federal court in Miami, Florida. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The whistleblower share to be awarded in connection with the settlement is $630,000.00.
HHS-OIG investigated the matter. Assistant United States Attorneys Jessica R. Sievert and Miriam L. Alinikoff handled the litigation.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cv-61084.
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Mastermind of $11.1 million Paycheck Protection Program fraud scheme sentenced to fifteen yearsRead the Press Release
ATLANTA – Darrell Thomas has been sentenced after pleading guilty to conspiracy to commit bank fraud and wire fraud and to money laundering for masterminding a scheme to obtain 14 fraudulent loans totaling approximately $11.1 million from the Paycheck Protection Program (“PPP”). To date, a total of twenty-three individuals have been charged in connection with the fraudulent scheme.
“Thomas took advantage of pandemic relief funds intended for struggling small businesses to line his own pockets,” said U.S. Attorney Ryan K Buchanan. “Every dollar he took diverted funds from legitimate business owners suffering the effects of the COVID-19 pandemic who desperately needed assistance to pay their employees. The sentence imposed today shows that fraud does not pay.”
“Thomas orchestrated a massive fraudulent scheme to greedily line his pockets with stolen government funds that were intended to provide relief to small businesses and their employees during the COVID-19 Pandemic”, said Keri Farley, Special Agent in Charge of FBI Atlanta. “Hopefully, Thomas enjoyed his short-lived fun with all the luxury items purchased with stolen tax payer money, as he will now pay for his crimes with a lengthy prison sentence.”
“The charges and last week’s sentencing show IRS Criminal Investigation’s commitment to defend the integrity of the pandemic relief programs,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “We will continue to contribute our financial expertise to identify fraud, trace the funds, and bring the criminals to justice.”
“These results demonstrate the commitment of the Treasury Inspector General for Tax Administration to investigate and bring to justice those who attempt to corruptly interfere with Federal tax administration,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the work of the U.S. Attorney's Office and our law enforcement partners to ensure this criminal activity is held to account.”
“OIG continues to bring to justice those persons who would seek to exploit federal programs for unlawful personal gain,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”
According to U.S. Attorney Buchanan, the second superseding indictment, and other information presented in court: From April 2020 through August 2020, Darrell Thomas orchestrated a PPP loan scheme involving at least fourteen fraudulent loans. Each of the fourteen businesses obtained a PPP loan between $700,000 and $850,000, for a total of over $11.1 million. The loan applications certified that each applicant business was in operation on February 15, 2020 and had employees for whom it paid salaries and payroll taxes or paid independent contractors; that the funds would be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments; and that the information provided in the application and in all supporting documents and forms was true and accurate in all material respects.
The PPP loan applications reported that each business had between 59 and 69 employees and approximately $295,000 to $342,000 in average monthly payroll expenses. To support these payroll figures, each business’s loan application was accompanied by an Internal Revenue Service Form 941, which employers use to report payroll taxes, for each quarter of 2019 and by a bank statement or a spreadsheet reflecting payroll expenses. In reality, however, none of the businesses had employees or payroll expenses. The Form 941s, bank statements, and W2 payroll spreadsheets had all been fabricated. Indeed, some of the supporting documents the businesses submitted were substantively identical, including identical Form 941s and identical bank statements.
After the PPP loan proceeds were deposited into the businesses’ accounts, the businesses transferred more than $5.5 million of the PPP loan proceeds into accounts controlled by Darrell Thomas, purportedly for rental payments and payroll. However, none of the businesses had any legitimate business with any of the businesses or accounts to which they sent the proceeds. Based on the investigation, none of the companies allegedly engaged in any business-related transactions or used the PPP loan proceeds for any authorized purposes. Instead, the businesses used the funds for various personal expenses. In connection with the investigation, the United States seized more than $4 million in PPP loan proceeds, four luxury vehicles, and several jewelry items.
Darrell Thomas, 36, of Johns Creek, Georgia, was sentenced by U.S. District Judge J. P. Boulee to fifteen years in prison, to be followed by five years of supervised release, and ordered to pay restitution in the amount of $13,206,752.10. On June 16, 2021, he pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud and one count of money laundering. As part of his guilty plea, Thomas admitted his participation in fraudulent conduct totaling more than $14.7 million, including approximately $11.1 million in fraudulent PPP loans, more than $1.15 million in fraudulent Economic Injury Disaster Loans, and more than $2.4 million in fraudulent automobile loans.
He also agreed to forfeit various assets, including more than $2.1 million in seized funds, three luxury vehicles – a 2018 Mercedes-Benz S-Class S65AMG, a 2018 Land Rover Range Rover, and a 2017 Acura NSX – and several items of jewelry, including a gold Rolex.
To date, a total of twenty-three individuals have been charged in connection with the fraudulent scheme. Eleven other individuals have pleaded guilty and six other individuals have been sentenced, while the remaining eleven individuals’ charges remain pending.
The following defendants have either pleaded guilty based on their roles in the fraudulent scheme or have been sentenced to date:
- Charles Petty a/k/a Charles Knight, 49, of Stone Mountain, Georgia, pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by Transportation Management Services Inc. On February 23, 2022, Judge Boulee sentenced Petty to three years and ten months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,417 in restitution and a special assessment of $100.
- Khalil Gibran Green, Sr., 47, of Cleveland, Ohio, pleaded guilty on September 1, 2020, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Impact Creations LLC. On January 14, 2021, Judge Boulee sentenced Green to three years and five months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $830,000 in restitution, forfeiture of $157,035.71, and a special assessment of $100.
- Bern Benoit, 45, of Burbank, California, pleaded guilty on March 11, 2021, to one count of conspiracy to commit bank fraud and wire fraud in connection with the loan obtained by his business, Transportation Management Services Inc. On September 8, 2021, Judge Boulee sentenced Benoit to two years and three months’ imprisonment and five years of supervised release, and Judge Boulee ordered him to pay $1,105,217 in restitution, forfeiture of $461,433.36, and a special assessment of $100.
- Charmaine Redding, 28, of Macomb, Michigan, pleaded guilty on July 14, 2021, to one count of conspiracy to commit wire fraud in connection with the loan obtained by her business, All Star Room and Board Services of Michigan Inc. On October 21, 2021, Judge Boulee sentenced Redding to two years and three months’ imprisonment and three years of supervised release, and Judge Boulee ordered her to pay $1,159,138.31 in restitution and a special assessment of $100.
- Charles Hill IV, 46, of Norcross, Georgia, pleaded guilty on September 29, 2021, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, Infinite Education Services Inc. On January 12, 2022, Judge Boulee sentenced Hill to five years’ probation, with the first twenty-seven months to be served on home detention. Judge Boulee ordered him to pay $1,004,805 in restitution and a special assessment of $100.
- Andre Lee Gaines, 67, of Dallas, Georgia, pleaded guilty on June 17, 2021, to one count of making false statements to the FBI in connection with the loan obtained by his business, Gaines Reservation and Travel. On October 5, 2021, Judge Boulee sentenced Gaines to five years of probation and ordered him to pay restitution of $806,710 and a special assessment of $100.
- Denesseria Slaton, 53, of McDonough, Georgia, pleaded guilty on June 16, 2021, to one count of conspiracy to commit bank fraud wire fraud in connection with the loan obtained by Transportation Management Services Inc. Slaton’s sentencing is set for June 21, 2022.
- Jesika Blakely, 34, of Atlanta, Georgia, pleaded guilty on March 15, 2022, to one count of conspiracy to commit money laundering in connection with her involvement in Thomas’s scheme. Blakely’s sentencing is set for June 29, 2022.
- Amanda Christian, 34, of Blythewood, South Carolina, pleaded guilty on March 23, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by Mickies Auto and Tire LLC. Christian’s sentencing is set for June 30, 2022.
- Derek Parker, 57, of Rochester Hills, Michigan, pleaded guilty on April 14, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, D Parker Holdings Inc. Parker’s sentencing is set for July 28, 2022.
- Rick McDuffie, 51, of Little Rock, South Carolina, pleaded guilty on April 27, 2022, to one count of conspiracy to commit wire fraud in connection with the loan obtained by his business, Mickies Auto and Tire LLC. McDuffie’s sentencing is set for August 23, 2022.
This case is being investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration, and the Small Business Administration-Office of the Inspector General.
Assistant U.S. Attorneys Tal Chaiken and Nathan Kitchens of the Northern District of Georgia and Trial Attorney Siji Moore of the Criminal Division’s Fraud Section are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts, For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Marshall County man admits to meth chargeRead the Press Release
WHEELING, WEST VIRGINIA – John David Crow, of Moundsville, West Virginia, has admitted to selling methamphetamine, United States Attorney William Ihlenfeld announced.
Crow, 52, pleaded guilty today to one count of “Distribution of Methamphetamine.” Crow admitted to selling methamphetamine, also known as “ice,” in November 2021 in Marshall County.
Crow faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Manchester Man Pleads Guilty to Drug Trafficking and Maintaining Drug-Involved PremisesRead the Press Release
CONCORD - Michael Cicciu, 42, of Manchester, pleaded guilty in federal court on Wednesday to one count of possession of fentanyl with intent to distribute and one count of maintaining a drug-involved premises, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on August 31, 2020, Manchester police detectives obtained a state search warrant for Cicciu’s residence based on surveillance and post-arrest statements from both buyers and suppliers of drugs. After executing the warrant, officers located a baggie of fentanyl and an apparent drug ledger.
In 2018, Cicciu purchased a residential building in Manchester. The premises were managed and controlled by Cicciu and made available for others to unlawfully store, distribute, and use controlled substances. Specifically, on eight separate occasions between October 22, 2019 and November 20, 2020, Manchester police detectives executed search warrants at the residence that resulted in the arrests of people renting rooms from Cicciu who were distributing and using heroin, fentanyl, methamphetamine and crack cocaine. On one of these occasions, officers also located several assault-style weapons, a handgun, and brass knuckles.
Cicciu is scheduled to be sentenced on August 25, 2022. As part of his plea agreement, he has agreed to forfeit his interest in the property, which is located on East High Street in Manchester.
“Drug trafficking endangers our community in many different ways,” said U.S. Attorney Young. “Not only do drug traffickers sell deadly substances, but their unlawful activities damage the peace and security of our neighborhoods. By allowing dangerous drug dealers to do business inside his building, this defendant jeopardized public safety and broke the law. Thanks to the hard work of our law enforcement partners, he has now been held responsible for his crimes.”
This matter was investigated by the Manchester Police Department and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth. Assistant U.S. Attorney Robert Rabuck assisted with the forfeiture portion of the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Man Sentenced to 40 Years for Sexual Exploitation of a Child, Advertising Child Porn, and Distribution of Child PornRead the Press Release
Montgomery, Alabama – On Tuesday, May 17, 2022, Rocky Shay Franklin, a 36-year-old residing in Greenville, Alabama during the commission of his crimes, was sentenced to 480 months in prison for sexual exploitation of a child, advertising child pornography, and distribution of child pornography, announced United States Attorney Sandra J. Stewart and Federal Bureau of Investigation (FBI) Special Agent in Charge Paul W. Brown. Following his 40-year prison sentence, Franklin will be on supervised release for the remainder of his life and will be required to register as a sex offender. There is no parole in the federal system.
According to Franklin’s plea agreement and other court records, an investigation began in 2019 when law enforcement received numerous reports from the National Center for Missing and Exploited Children (NCMEC) identifying an IP address associated with suspected online child porn activity. The IP address was affiliated with a residence in Greenville, Alabama. While investigating the reports at the suspected location, Franklin was identified as a person of interest and multiple electronic devices were searched. Analysis of the devices confirmed Franklin’s involvement.
During a plea hearing that took place on July 28, 2021, Franklin specifically admitted that in the summer of 2018, he used, induced, and enticed two minors to engage in sexually explicit conduct for the purpose of producing a visual depiction. In addition, Franklin acknowledged that from May 30, 2019, through October 11, 2019, he uploaded multiple videos to a pornography website. Franklin did so from various locations in Greenville, Alabama and Montgomery, Alabama. The videos contained visual depictions of minors engaged in sexually explicit conduct. Franklin advertised these files through the website and requested a monetary fee for distribution. Franklin also admitted to distributing child pornography on at least three occasions using various online accounts and platforms. First, on February 15, 2019, Franklin used a messenger app to send videos of two minors engaged in sexually explicit conduct. Then, on October 11, 2019, Franklin sent links to another individual knowing that the linked websites contained pornographic images and videos of children. Lastly, Franklin admitted that, on May 11, 2019, he knowingly transported child pornography, by uploading the files to one of his online accounts.
Based on this conduct, during the July 2021 plea hearing, Franklin pleaded guilty to two counts of the sexual exploitation of a child, one count of advertising child pornography, and two counts of distribution of child pornography.
“Protecting children from exploitation by predators is one of law enforcement’s most important responsibilities,” stated U.S. Attorney Stewart. “Producing and trading in child pornography is a particularly devastating crime because it robs children of their innocence and inflicts long lasting harm. Although my office can never fully repair the damage inflicted by these predators, we can ensure that justice is served on those who commit these terrible crimes. I applaud the efforts of all the agencies involved in investigating this case for identifying Franklin’s criminal activity and putting a stop to it before more children were victimized.”
“Today’s sentence ensures Rocky Shay Franklin will be unable to harm children in our community for a very long time, and we hope his victims will be able to recover from the emotional scars left by his actions,” stated Special Agent in Charge Brown. “The FBI will continue to work with our law enforcement partners to investigate and bring to justice those intent on harming children.”
The FBI and the Alabama Law Enforcement Agency investigated this case, with assistance from NCMEC. Assistant United States Attorneys James Patrick Lamb and MaryLou E. Bowdre prosecuted the case.
Lyon County Man Sentenced to Ten Years in Federal Prison for Child Pornography and Firearms OffenseRead the Press Release
Paducah, KY – A Lyon County Kentucky man was sentenced this week to 10 years in federal prison, followed by a life term of supervised release, for possession of child pornography and being a felon in possession of a firearm. There is no parole in the federal system.
According to court documents, law enforcement officials opened an investigation into Kenneth Swartz, 64, after receiving a complaint alleging that Swartz, a convicted felon and registered sex offender, attempted to photograph a minor while shopping at a local store on May 28, 2020. The Eddyville Police Department confirmed the events after reviewing store security footage and, on May 29, 2020, a search warrant was executed on Swartz’s residence where a Savage Arms, Stevens model 94 shotgun and several cell phones were recovered. On June 24, 2020, law enforcement became aware that Swartz possessed an additional cell phone which he kept hidden under a sink at the residence. A second search warrant was executed, and the cell phone was recovered. Forensic analysis of the cell phones revealed that they contained over 200 images of child pornography.
“The sentence imposed in this case – ten years in prison followed by a lifetime of federal supervision – is the direct result of outstanding work and partnership between our local and federal law enforcement agencies,” said Michael A. Bennett, U.S. Attorney for the Western District of Kentucky. “I commend the Eddyville Police Department, Lyon County Sheriff’s Office, Paducah Police Department, and Homeland Security Investigations for keeping our communities safe.”
The Eddyville Police Department, with the assistance of the Lyon County Sheriff’s Office, the Paducah Police Department, and the United States Department of Homeland Security, Homeland Security Investigations (HSI), investigated the case.
Assistant U.S. Attorney Raymond McGee prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ 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.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
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Lowell Man Sentenced in Trafficking Conspiracy Involving Counterfeit Pills Containing MethamphetamineRead the Press Release
BOSTON – A Lowell man was sentenced today in federal court in Boston for his role in a drug trafficking conspiracy involving methamphetamine disguised as counterfeit Adderall pills.
Vimoon Sortsoy, 29, was sentenced by U.S. District Court Judge Allison D. Burroughs to five years in prison and four years of supervised release. On Dec. 15, 2021, Sortsoy pleaded guilty to conspiracy to distribute and possession with intent to distribute 50 grams or more of a mixture or substance containing methamphetamine.
Sortsoy conspired to distribute counterfeit prescription pills pressed to resemble Adderall that in fact contained methamphetamine in the Lowell area. In a series of controlled purchases conducted by law enforcement between approximately September 2019 and August 2020, Sortsoy sold hundreds of counterfeit pills containing methamphetamine, totaling over 400 grams.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lowell Police Chief Raymond Kelly Richardson made the announcement. Assistant U.S. Attorney Sarah Hoefle of Rollins’ Organized Crime & Gang Unit prosecuted the case.
Loves Park Man Indicted on Drug Trafficking and Firearm ChargesRead the Press Release
ROCKFORD — A federal grand jury in Rockford has indicted a Loves Park man on drug and firearm offenses.
ORENTHO HURD, 27, is charged with possession with intent to distribute cocaine, possession of a firearm by a previously convicted felon, possession of a machine gun, and possession of a firearm in furtherance of a drug trafficking crime. According to the indictment, Hurd illegally possessed the cocaine and machine gun in Loves Park on Aug. 26, 2021. Arraignment in U.S. District Court in Rockford has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, and Explosives. The Rockford Police Department provided valuable assistance in the investigation. The government is represented by Assistant U.S. Attorneys Michael Beckman and Robert Ladd.
The cocaine charge carries a maximum sentence of 20 years in federal prison, while the machine gun and felon-related charges are each punishable by up to ten years. Possession of a firearm in furtherance of a drug trafficking crime carries a mandatory minimum sentence of five years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Holding drug dealers and illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods (PSN) – the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Licensed Firearms Dealer Is Sentenced for Selling A Firearm to A Prohibited PersonRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell sentenced Edward Clyde Ledford, 57, of Lenoir, N.C., a federal firearms licensee (FFL) doing business as Whitnel Outdoorsman and Pawn, for knowingly selling a firearm to a prohibited person, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Brian Mein, Acting Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division, joins U.S. Attorney King in making today’s announcement.
“When a federal firearms dealer sells a gun to a prohibited person, that’s one more illegal firearm in our streets that can be used to commit a crime,” said U.S. Attorney King. “As we continue to intensify our efforts to reduce the risk of guns falling into the wrong hands, we must hold accountable gun sellers who put gain before the safety of our community.”
“Keeping firearms out of the hands of prohibited individuals is the absolute first step towards preventing violent gun crime,” said Acting Special Agent in Charge Mein. “While the vast majority of our licensed firearms dealers are respectful of the laws in place, those that choose to violate those laws and jeopardize public safety will face the consequences.”
According to information contained in court documents and court proceedings, on April 15, 2019, an individual who was prohibited from possessing a firearm entered the Whitnel Outdoorsman and Pawn in Lenoir. Court records show that the individual told a store employee that he was interested in purchasing a firearm but would not pass the background check due to prior felonies on his record. The store employee advised the prohibited individual to “bring a buddy back” to fill out the paperwork.
Court documents state that a few days later, on April 18, 2019, the prohibited individual returned to the store with an undercover ATF agent posing as a friend. This time, the prohibited individual spoke with Ledford and again explained that he wanted to purchase a firearm but could not pass the background check. The prohibited individual also told Ledford that, at the suggestion of a store employee, he had brought someone who could pass the background check, and essentially be the straw buyer for the firearm. Ledford did not object, and, over the course of their exchange, the prohibited individual pointed to the semiautomatic shotgun he wanted to purchase. Ledford handed him the firearm and the prohibited individual paid Ledford in cash for the shotgun. Ledford also gave the undercover agent the ATF Form 4473 to fill out for the background check. Once the form was processed and the sale was completed the prohibited individual took possession of the firearm in the presence of Ledford.
Ledford was sentenced to two years of probation and five months of home detention, after pleading guilty to selling a firearm to a prohibited person on November 30, 2021.
U.S. Attorney King credited the ATF for the investigation of this case.
Assistant United States Attorney Alfredo De La Rosa of the U.S. Attorney’s Office in Charlotte handled the prosecution for the government.
Lexington Man Sentenced to 240 Months for Armed Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky.— A Lexington man, Christopher Paul Cavanaugh, 40, was sentenced to 240 months in federal prison on Thursday, by U.S. District Judge Karen C. Caldwell, after pleading guilty to two counts of possession with intent to distribute 50 grams or more of methamphetamine and one count of possession of a firearm in furtherance of drug trafficking.
According to Cavanaugh’s plea agreement, in March 2021, the United States Postal Service intercepted a package of methamphetamine that was being sent to him. Law enforcement then found Cavanaugh in possession of approximately 1.95 kilograms of methamphetamine and three firearms. Cavanaugh admitted that he possessed the firearms in furtherance of his drug trafficking.
Cavanaugh pleaded guilty to the charges in the indictment, in February 2022.
Under federal law, Cavanaugh must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Darren Hess, Special Agent in Charge, United States Postal Inspection Service; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the United States Postal Inspection Service and the Lexington Police Department. The United States was represented by Assistant U.S. Attorney Roger West.
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Leicester Woman Pleads Guilty to Role in COVID-19 Pandemic Fraud SchemeRead the Press Release
BOSTON – A Leicester woman has pleaded guilty to her involvement in a pandemic unemployment fraud scheme.
Destinee Snay, 20, pleaded guilty on May 16, 2022 in federal court in Worcester to one count of conspiracy to commit wire fraud. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 12, 2022. Snay was indicted in July 2021 along with co-defendant William Cordor.
From about June 2020 to about October 2020, Snay and Cordor conspired to file false and fraudulent claims for unemployment assistance in multiple states using stolen identities obtained from a variety of places including Facebook and from former fellow inmates at Worcester County House of Correction. To facilitate the scheme, Snay created phony email accounts on Gmail, AOL and Yahoo which she used to file the fraudulent claims. In total, Snay personally filed approximately 20 false and fraudulent unemployment claims for Massachusetts and other states. Snay and Cordor then transferred the funds into prepaid debit card accounts they obtained and used the proceeds to pay for hotels, rental cars, a trip to Miami and a shopping spree at Saks Fifth Avenue.
On Nov. 16, 2021, Cordor, pleaded guilty to one count of conspiracy to commit wire fraud, four counts of wire fraud and four counts of aggravated identity theft. He is scheduled to be sentenced on June 16, 2022.
The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $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.
United States Attorney Rachael S. Rollins; Jonathan Mellone, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations; and Mark Comorosky, Special Agent in Charge of U.S. Secret Service, Boston Field Office, made the announcement. Valuable assistance in the case was provided by the Leicester and Marlboro Police Departments. Assistant U.S. Attorneys Danial E. Bennet and John T. Mulcahy of Rollins’ Criminal Division are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Lebanon Man Indicted on Firearms ChargesRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Luis Rodriguez-Pagan, age 28, of Lebanon, Pennsylvania, was indicted yesterday by a federal grand jury on firearms charges.
According to United States Attorney John C. Gurganus, the indictment alleges that Rodriguez-Pagan purchased eight handguns falsely claiming that they were for himself when in fact they were not. The purchases occurred in Lebanon and Dauphin Counties between July 2021 and December 2021. The indictment also alleges that Rodriguez Pagan was engaged in the unlicensed business of dealing in firearms.
The case was investigated by the Bureau of Alcohol Tobacco Fireworks and Explosives (ATF) and the Lebanon County Sheriff’s Office. Assistant U.S. Attorney Jaime M. Keating is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works 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 maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Lawrence Man Sentenced for Fentanyl TraffickingRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston for his role in a drug trafficking conspiracy involving fentanyl.
Hector Minaya Melo, a/k/a “El Jefe,” 35, was sentenced by U.S. District Court Judge Richard G. Stearns to 54 months in prison. In May 2021, Minaya Melo pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute 40 grams or more of fentanyl and two counts of distribution of 40 grams or more of fentanyl.
From 2019 through 2020, Minaya Melo engaged in a drug conspiracy with his brother and co-defendant Junior Turbis to sell and deliver fentanyl and fentanyl analogue to a cooperating witness and an undercover agent in Lawrence. As part of the conspiracy, Minaya Melo was involved in seven controlled purchases in which he delivered fentanyl and fentanyl analogue and collected payments for the drugs. In total, Minaya Melo was responsible for 342 grams of fentanyl and 151 grams of fentanyl analogue.
Turbis pleaded guilty to his role in the conspiracy and was sentenced on March 23, 2022 to 42 months in prison and two years of supervised release.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division, made the announcement today. The investigation was conducted by the DEA’s Cross Border Initiative. Assistant U.S. Attorneys Timothy Kistner and Jared Dolan of Rollins’ Criminal Division prosecuted the case.
Kenner Man Sentenced for Airline Baggage Scam Involving over $550,000 in False ClaimsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that PERNELL ANTHONY JONES, JR., age 32, of Kenner, Louisiana, was sentenced today for Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 1349 and Mail Fraud, in violation of Title 18, United States Code, Section 1341 and one count of Mail Fraud, in violation of Title 18, United States Code, Sections1341 and 2.
According to court documents, beginning in or around 2015, JONES took flights with commercial airlines under false or fictitious identities using fraudulent identification cards. When he arrived at the destination airport, JONES falsely claimed that his baggage was lost and requested reimbursement to compensate him for his lost luggage. Through this scheme, JONES and his co-conspirators submitted over 180 false claims to commercial airlines, including American, Alaska, Southwest, United, and JetBlue, requesting over $550,000 in reimbursement. In total, the airlines paid over $300,000 in fraudulent claims.
JONES’s plea documents state that, on April 7, 2018, JONES was arrested at Dallas Love Airport while attempting to go through screening by the Transportation Security Administration (“TSA”) with 36 fraudulent driver’s licenses and 47 credit cards under fictitious names. On March 5, 2020, JONES was arrested again while attempting to pick up a reimbursement check for a fraudulent baggage claim at Louis Armstrong International Airport in Kenner, Louisiana. Law enforcement searched JONES’s residence on March 5, 2020 and found 34 fraudulent driver’s licenses; 21 fake work identification cards; and a number of fraudulent airline employee badges containing JONES’s photograph.
U. S. District Court Judge Susie Morgan sentenced JONES to serve 46 months in prison, to be followed by 3 years of supervised release. JONES was also ordered to pay restitution to the victim airlines in the amount of $327,451.61. Judge Morgan also imposed a mandatory special assessment fee of $100 per count for a total of $200.
"This sentencing demonstrates the steadfast work of the FBI and our partners in bringing to justice individuals like Mr. Pernell Anthony Jones, Jr., who engaged in fraudulent criminal activity and compromised national security for his own financial gain," said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. "We would like to thank our state and federal partners including the United States Attorney’s Office, Department of Homeland Security, Jefferson Parish Sheriff’s Office, and the City of Dallas Police Department for their strong partnerships in disrupting this criminal enterprise.
U.S. Attorney Evans would like to acknowledge the investigation by the Federal Bureau of Investigation, the U.S. Department of Homeland Security, Jefferson Parish Sheriff’s Office, and the City of Dallas Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Kanawha County Man Pleads Guilty to Role in Multi-State Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to intent to distribute methamphetamine and to being a felon in possession of a firearm.
According to court documents and statements made in court, Scott Edward Hudson, 50, admitted to participating in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine in Kanawha County. As part of this conspiracy, Hudson sold approximately 3.5 grams of methamphetamine to a confidential informant on March 22, 2019. Law enforcement officers executed a search warrant at Hudson’s residence on March 23, 2019, at which time they recovered approximately 230.8 grams of pure methamphetamine and $5,160 in cash that included marked bills from the previous day’s controlled buy.
Hudson further admitted to possessing a SWD Cobray, model M11/9, 9mm pistol in the St. Albans area on May 22, 2021. Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Hudson admitted that he knew he was prohibited from possessing a firearm because of prior felony convictions, including for attempt to commit a felony in Jackson County Circuit Court on June 30, 2006.
Hudson is scheduled to be sentenced on August 15, 2022, and faces a maximum penalty of 20 years in prison, three years of supervised release and a $1 million fine.
Hudson is one of 17 defendants charged as a result of the DTO investigation. Ramon David Alston, James Edward Bennett, III, Treydan Leon Burks, Jonathan Gregory Bush, Kaitlyn Brooke Combs, Kelly Cordle, Denise Marie Cottrill, Shane Kelly Fulkerson, Brittany Frances Gilbert, Angie Lane Harbour, Jason Robert Oxley, Michael Antonio Smith, and Brian D’Angelo Terry have also pleaded guilty. Harbour was sentenced to three years and 10 months in prison on May 16, 2022. Timothy Wayne Dodd was convicted on March 24, 2022, following a two-day jury trial. Leo Antoine Smith and Douglas Johnathan Wesley are scheduled for trial on May 24, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Charleston Police Department, the Kanawha County Sheriff’s Department, the Putnam County Sheriff’s Department, the Bureau of Alcohol, Tobacco Firearms, and Explosives (ATF), and the Metropolitan Drug Enforcement Network Team (MDENT).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Joshua Hanks is prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-171, 2:21-cr-172, 2:21-cr-211, and 2:22-cr-90.
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Justice Department Announces Director of the Office for Access to JusticeRead the Press Release
The Justice Department today announced the appointment of a Director of the Office for Access to Justice to lead its efforts to improve the federal government’s understanding of and capacity to address the most urgent legal needs of communities across America.
Deputy Associate Attorney General Rachel Rossi will serve as the Director of the Office for Access to Justice.
In October 2021, Attorney General Garland announced the restoration of a standalone Office for Access to Justice. Over the past six months, the Office has, among other things, led the Justice Department’s efforts to address the housing and eviction crisis; ensured equal access to justice for veterans and service members; and removed barriers to successful reentry for previously incarcerated individuals.
“There can be no equal justice without equal access to justice,” said Attorney General Merrick B. Garland. “For the past six months, our newly restored Office for Access to Justice has worked to fulfill that mission. Rachel Rossi’s leadership of that Office will further advance these efforts.”
“Disrupting the devastating connections between race, poverty and injustice is hard work that requires exactly the kind of dedication and vision we’ve seen in Ms. Rossi’s work at the department,” said Associate Attorney General Vanita Gupta. “Ms. Rossi’s leadership will help us build on the department’s work to make justice more accessible to all.”
“I am humbled by this opportunity and ready to get to work building on the foundation of my predecessors and the great progress that’s been made under Attorney General Garland’s leadership,” said Ms. Rossi. “I have seen firsthand how access to justice can make the difference in keeping families together, people in their homes and victims safe from violence. I look forward to working closely alongside dedicated public servants across the department as we examine and reimagine the tools and systems, we rely on to make justice more accessible for all.”
The Office for Access to Justice was initially launched in 2010 and thrived as a standalone component through the end of 2017.
One year ago, Attorney General Garland launched a strategic review process led by the Justice Department’s three leadership offices to examine barriers and disparities in our criminal and civil justice systems and identify ways that the Justice Department can improve the federal government’s understanding of and capacity to address the most urgent legal needs of communities across America. The review, which engaged a wide range of stakeholders across all levels of government, revealed that longstanding justice gaps have been exposed and exacerbated by COVID-19 and identified a clear and immediate need for the restoration of a standalone Office for Access to Justice within the Justice Department dedicated to the mission of closing those gaps.
Jury Convicts Tioga County Man of Misusing a Social Security Number and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK - “John Doe,” formerly of Owego, New York, was convicted today, after a four-day jury trial, of two counts of Aggravated Identity Theft and one count of Misuse of a Social Security Number. The charges relate to Doe’s use of the name, Social Security number, and date of birth of another person to obtain Supplemental Security Income (SSI) benefits to which he was not entitled. Doe’s true identity has yet to be confirmed.
The announcement was made by United States Attorney Carla B. Freedman and Sharon B. MacDermott, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
The evidence at trial established that, since approximately 1999, Doe received SSI benefits from the Social Security Administration under the name, date of birth, and Social Security number of a homeless U.S. Army veteran living in North Carolina. When Doe’s use of the other person’s identity was ultimately discovered and Doe was questioned by federal agents, Doe continued to falsely claim the identity as his own and provided agents a photocopy of the victim’s birth certificate and Social Security card, purporting them to be his own.
Sentencing is scheduled for September 30, 2022, in Syracuse, before United States District Judge Mae A. D’Agostino. For his conviction of Misuse of a Social Security Number, Doe faces a maximum term of imprisonment of five years, a fine of up to $250,000, restitution to the Social Security Administration, and a term of supervised of up to three years. For his two convictions on Aggravated Identity Theft, Doe faces a mandatory sentence of two years in federal prison on each count, which the Court can run concurrently or consecutively. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The jury was not able to reach a unanimous verdict on the remaining count of Supplemental Security Income fraud, and a mistrial was declared as to that charge.
This case was investigated by the Social Security Administration Office of the Inspector General, the Tioga County Sheriff’s Office, the Tioga County Department of Social Services, the New York State Police Forensic Investigation Center and was prosecuted by Assistant U.S. Attorneys Adrian S. LaRochelle and Michael D. Gadarian.
Joplin Man Sentenced to 24 Years for Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Joplin, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Newton County, Mo.
Jason C. Russell, 34, was sentenced by U.S. District Judge M. Douglas Harpool to 24 years and four months in federal prison without parole.
On Nov. 17, 2021, Russell pleaded guilty to one count of participating in a conspiracy to distribute methamphetamine in Newton County from April 17, 2019, to Feb. 24, 2021.
Multiple law enforcement agencies were investigating Russell and had identified several messages on his Facebook account related to drug distribution going back to early 2019.
On Feb. 24, 2021, Russell and co-defendant Brittany J. Adcock, 30, of Springfield, Mo., were arrested when an officer with the Oklahoma Highway Patrol stopped a 2012 GMC Sierra pick-up in which they were passengers on Interstate 44 near Vinita, Oklahoma. According to court documents, Russell tried to convince the driver of the truck to flee from law enforcement, but he refused.
Officers searched the vehicle and found a large black bag in the back seat of the truck and a smaller bag in the front of the truck that contained a total of approximately two pounds of methamphetamine.
Adcock was sentenced on May 10 to 10 years in federal prison without parole after pleading guilty to the same charge.
Russell has a history of violent and drug-related crimes, according to court documents. In April 2018, he fled at speeds up to 130 miles an hour from an officer who tried to stop him because his motorcycle had no plates. In July 2019, he shared a video online of himself assaulting someone and threatening that person with a firearm. Russell also has two previous convictions for domestic assault in the second degree and another conviction for assault in the second degree.
This case was prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the FBI, the Ozarks Drug Enforcement Team, the Newton County, Mo., Sheriff’s Department, and the Oklahoma Highway Patrol.
Organized Crime and Drug Enforcement Task Force
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Jefferson County Man Charged with Mailing Threatening LettersRead the Press Release
ALBANY, NEW YORK – Jesse Bartlett, age 46, of LaFargeville, New York, was arrested today and charged with mailing threatening letters, 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).
A criminal complaint alleges that Bartlett, who claimed to be the “Chinese Zodiac Killer,” mailed threatening communications to media outlets, government offices, houses of worship and private businesses throughout New York, as well as in New Jersey, Connecticut, Pennsylvania, New Hampshire, Vermont, and the District of Columbia. In the letters, which he signed as the “Chinese Zodiac Killer,” Bartlett wrote that he killed people, ate their flesh, and that he intends to kill more people, including an unnamed bus driver.
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge filed against Bartlett carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Bartlett made an initial appearance today before United States Magistrate Judge Christian F. Hummel, and was ordered detained pending a detention hearing scheduled for May 23.
This case is being investigated by the FBI’s Joint Terrorism Task Force (JTTF), with assistance from the New York State Police and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Alexander Wentworth-Ping.
Jefferson City Man Sentenced for Illegally Possessing Firearm Used to Shoot Another PersonRead the Press Release
JEFFERSON CITY, Mo. – A Jefferson City, Mo., man was sentenced in federal court today for illegally possessing the firearm he used to shoot another person during an argument.
Dana Ray Day, Jr., 32, was sentenced by U.S. District Judge Stephen R. Bough to 10 years in federal prison without parole. Today’s sentence is the statutory maximum penalty for this offense. The court also ordered the federal sentence be served consecutively to the 25-year sentence imposed in an unrelated state case in which Day was convicted of two counts of assault in a fatal shooting.
Day was found guilty at trial on Dec. 15, 2021, of one count of being a felon in possession of a firearm and ammunition.
On Sept. 15, 2018, Day got into an argument with another man after hitting his car the prior day. Day pulled out a Taurus .40-caliber semi-automatic handgun and shot the other man, who was not armed, twice – in the chest and the groin. The shooting victim ran to a nearby apartment and the resident called 911 for him. Day fled from the scene of the shooting.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Day has prior felony convictions for tampering with a motor vehicle, domestic assault, assault, and resisting arrest. According to court documents, Day has a history of violence against others that began at the age of 13, including a teacher’s aid, family members, and girlfriends. In the state case in which Day has already been sentenced to 25 years in prison, he was convicted of repeatedly striking a man with his fists and then shooting and killing him.
While this case has been pending and Day has been detained, he has been charged with property damage after repeatedly kicking his jail cell door. Day is also charged with accessory to commit robbery after he and others beat another inmate and stole his canteen items.
The Taurus handgun, which had been purchased by another person and given to Day, was later recovered during a homicide investigation by the Chicago, Illinois, Police Department. The shell casing was entered into the NIBIN database, and matched the shell casing recovered from the scene of the Sept. 15, 2018, shooting in Jefferson City.
This case was prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Jefferson City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Jacksonville Couple Sentenced to Federal Prison for Child Sexual Exploitation OffensesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Samuel Christopher Templeman (47, Jacksonville) to 13 years and 4 months in federal prison for conspiring to sex traffic a child. Deborah Lynn Templeman (51, Jacksonville) was sentenced to 6 years in federal prison for possession of child sexual abuse material. The court also ordered the defendants to serve 10-year terms of supervise release, register as sex offenders, and forfeit several cellphones that were used in the offenses. The Templemans had pleaded guilty on June 21, 2021.
According to court documents, the Templemans had custodial rights over the child victim from the time of her birth until July 2019. The child victim had begun using heroin in 2018. Samuel Templeman had a long-term addiction to opioid pills, and the child victim and Samuel Templeman began regularly using heroin and crack cocaine together. The child victim also began engaging in sex acts for drugs at the direction of a pimp.
In July 2019, the Templemans’ custodial rights were terminated and they were court-ordered not to have contact with the child victim. The child victim was placed into foster care, but ran away. Around late August 2019, Samuel Templeman received an inheritance of approximately $26,000. The child victim thereafter agreed to live with the Templemans. Ultimately, the Templemans and the child victim spent the $26,000 inheritance by the middle of October 2019, primarily on illegal drugs for Samuel Templeman and the child victim.
After the inheritance money was exhausted, the only legitimate income for the Templemans and the child victim was Deborah Templeman’s bi-weekly salary, which would be spent 1-2 days after receipt. During the remaining 12-13 days of each two-week period, the only income that the Templemans and the child victim generated was derived from the child victim engaging in sex acts for money and occasional panhandling. The majority of the money the child victim made by engaging in commercial sex acts was then spent on illegal drugs, with a portion of the money going toward food, hotel rooms, and other basic expenses.
On December 11, 2019, a detective from the Jacksonville Sheriff’s Office traveled to Deborah Templeman’s place of employment to attempt to recover the child victim. The detective waited for several hours for the child victim to return. While the detective was there, she overheard phone conversations in which Samuel Templeman informed Deborah Templeman that he was taking the child victim to a “date” – a common slang term for an appointment for the child to have sex for money – and that he would then come pick up Deborah Templeman from work. When Samuel Templeman returned to Deborah Templeman’s workplace at the end of the day, he was arrested, and the child victim was rescued. Deborah Templeman was also subsequently arrested.
A review of the cellphones used by the Templemans and the child victim during the timeframe of these events revealed that Deborah Templeman’s cellphone contained visual depictions of the child victim engaging in sexually explicit conduct. Deborah Templeman admitted that she was aware these visual depictions were stored on her phone.
“Human trafficking is modern day slavery and even more troubling when it involves a child victim. This was an incredibly disturbing investigation that demonstrates how devastating human trafficking can be in our communities,” said Sherri Onks, Special Agent in Charge of the FBI Jacksonville Division. “In this instance, the child victim was exploited and placed in grave danger by those who had custodial control and should have been providing care and protection. This case demonstrates the commitment by the FBI, the Jacksonville Sheriff’s Office and the United States Attorney's Office to never rest while individuals like this continue to exploit innocent children.”
This case was investigated by the Jacksonville Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor and Special Assistant United States Attorney Erin Wolfson. The asset forfeiture was handled by Assistant United States Attorney Mai Tran.
This is another case 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 Attorneys’ 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.
Husband-and-Wife Scientists Plead Guilty to Illegally Importing Potentially Toxic Lab Chemicals and Illegally Forwarding Confidential mRNA Vaccine Research to ChinaRead the Press Release
Assistant U. S. Attorney Alexandra F. Foster (619) 546-6735
NEWS RELEASE SUMMARY – May 19, 2022
SAN DIEGO – Chenyan Wu and Lianchun Chen, a married couple who worked as research scientists for a major American pharmaceutical company, pleaded guilty in federal court today to criminal charges stemming from their efforts to gather confidential mRNA research from that company to advance the husband’s competing laboratory research in China.
The couple has been married since at least 1993. During his career, Wu had worked for multiple pharmaceutical companies, including the major one identified in court records only as “Company A,” where his wife also worked. In 2010, Wu moved to China, and in 2012, he opened a laboratory there, which he named TheraMab. TheraMab focused on mRNA vaccine research.
While her husband was in China, Chen remained in the United States, working for Company A in San Diego from at least 2012 through September 9, 2021. During that time, her research for Company A focused on mRNA vaccines.
According to her plea agreement, from as early as November 2013, through at least June 2018, Chen repeatedly accessed Company A computers and copied confidential Company A materials. She knew she was not allowed to copy these materials, much less provide them to an individual outside the company. Chen emailed those confidential Company A materials to her husband in China over her personal Hotmail account. These confidential Company A materials included PowerPoints and Word documents with DNA and mRNA sequencing data, marked “[Company A] Confidential” and “from [Company A] Vaccine Research & Development.” By 2013, Wu was no longer employed by Company A. He had started TheraMab, a competing laboratory in China focused on mRNA research.
In February 2021, Wu shut down TheraMab in China and attempted to move his laboratory to the United States. He packed up its contents into five suitcases. On May 8, 2021, Wu arrived with the five suitcases at Seattle-Tacoma International Airport on Delta Flight 288, originating in Shanghai, China. He planned to transit through Seattle and had a flight home to San Diego later that day.
Upon entry into the United States, Wu filled out a U.S. Customs form. He did not declare any biological or chemical items on the form, nor did he declare these items in person to the Customs officer while going through Customs Inspection.
While inspecting the defendant’s suitcases, officers discovered chemical and biological samples, medical/biological equipment, and research documentation, all of which had been undeclared and was improperly packaged. They detained the items. Initial inspection revealed about 700 to 1,000 unlabeled centrifuge tubes, which appeared to contain proteins and multiple containers of lab chemicals. Labeled samples appeared to include potentially hazardous materials. In fact, one bottle contained a warning photo with the skull and crossbones image and the words “harmful if swallowed … toxic if inhaled.” Another bottle contained the warning statements “fatal if inhaled … harmful if swallowed.” Customs and Border Protection (CBP) officials seized all five suitcases.
FBI Seattle’s Hazardous Evidence Response Team (HERT) deployed to Seattle Tacoma International Airport to help CBP inventory the items, field screen them for biological and chemical materials, and collect them as evidence. CBP transferred custody of the items to the Seattle HERT, which then repackaged the items safely and submitted them to an FBI laboratory for further analysis.
On May 18, 2021, FBI Agents interviewed Wu at his home in San Diego. Agents showed Wu a copy of the Customs form that he had filled out. Wu acknowledged that he understood the importance of those forms; he knew he needed to fill out this form accurately; and he acknowledged that he knew the proper ways to ship chemicals internationally. Wu added that China had strict rules and paperwork to ship to the United States and that was why he wanted to “take a gamble to be honest” when he brought chemicals and biological materials illegally into the United States in his luggage.
On June 25, 2021, the FBI Laboratory Division Scientific Response and Analysis Unit issued a report identifying imidazole, nickel sulfate, ethidium bromide, ammonium persulfate and chloroform in the bottles, which Wu brought with him from China. These are all identified as hazardous materials under U.S. Department of Transportation regulations and must be reported upon entry into the United States.
Chen is scheduled to be sentenced on August 11, 2022, before U.S. Magistrate Judge Andrew Schopler. Wu is scheduled to be sentenced on August 12, 2022, before U.S. District Judge Cathy Ann Bencivengo.
“These are serious computer fraud and smuggling crimes,” said U.S. Attorney Randy Grossman. “One defendant failed to protect her employer’s confidential and important research, and instead used it to her and her husband’s advantage. Compounding the harm, the other defendant put travelers in harm’s way by illegally transporting his laboratory’s hazardous chemicals back to the United States.” Grossman thanked the prosecution team, the FBI and Customs and Border Protection for their excellent work on this case.
“The defendants used their placement and access to obtain and illegally share confidential lab research for their own benefit,” said FBI Special Agent in Charge Stacey Moy. “Their attempt to smuggle hazardous material into the United States was thankfully foiled by Customs and Border Protection upon entry. The FBI is proud to work with our federal partners and I specifically want to thank Customs and Border Protection at Seattle Tacoma International Airport, FBI Seattle’s Hazardous Evidence Response Team, and the FBI Laboratory’s Scientific Response and Analysis Unit for their valuable assistance in this case.”
DEFENDANTS Case Number 22CR00052-CAB
Chenyan Wu (1) Age: 58 San Diego, CA
Lianchun Chen (2) Age: 51 San Diego, CA
SUMMARY OF CHARGES
Wu - Smuggling Goods (18 U.S.C. § 545)
Maximum penalty: Twenty years in prison and $250,000 fine
Chen – Computer Fraud (18 U.S.C. § 1030(a)(2)(C))
Maximum penalty: One year in prison and $250,000 fine
AGENCY
Federal Bureau of Investigation
Homeland Security Investigations
Customs and Border Protection
Houston, Texas, Man Played Role in Large Meth Trafficking OrganizationRead the Press Release
PITTSBURGH, PA – A resident of Houston, Texas, pleaded guilty in federal court to violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy Chung announced today.
Diego Zamudio, age 24, pleaded guilty to one count of conspiracy to possess with intent to distribute and distribute 500 grams or more of methamphetamine before United States District Judge Christy Criswell Wiegand. Zamudio was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that on April 21, 2021, investigators received information that couriers were transporting a large amount of methamphetamine from Houston, Texas, to Clearfield County, Pennsylvania. Investigators obtained a search warrant and seized over ten kilograms of pure methamphetamine from a truck parked in the parking lot of the Red Roof Inn located in Clearfield County. Investigators determined that the methamphetamine was destined for a residence in Clearfield County. Upon further investigation, investigators determined that Zamudio directed the transport of over 40 kilograms of methamphetamine to the Western District of Pennsylvania.
Judge Wiegand scheduled sentencing for Zamudio on August 25, 2022, at 9:30 a.m. The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense(s) and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered that the defendant remain out on bond.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the Homeland Security Investigations, United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Internal Revenue Service – Criminal Investigations, Pittsburgh Bureau of Police, Allegheny County Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
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.
Honduran National Charged with Illegally Using a Social Security Number Belonging to Another IndividualRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that ELTON JOHN MEJIA EUCEDA, age 22, a citizen of Honduras, was indicted today for illegally using a social security number belonging to another individual, in violation of Title 42, United States Code, Section 408(a)(7)(B).
The maximum penalty for the offense is five years imprisonment, followed by up to three years of supervised release, a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to the victim, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the Department of Homeland Security in investigating this matter. Assistant United States Attorney Richard R. Pickens, II is in charge of the prosecution.
Hendersonville Man Is Sentenced to 20 Years in Prison for Producing Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Dena J. King announced today that Jordan Taylor Randall, 39, of Hendersonville, N.C. was sentenced to 20 years in prison for producing child pornography. Randall was also ordered to register as a sex offender and to serve the rest of his life under court supervision after he is released from prison. Chief U.S. District Judge Martin Reidinger also ordered Randall to have no contact with the victims of his offenses.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, and Chief Blair Myhand of the Hendersonville Police Department join U.S. Attorney King in making today’s announcement.
On November 5, 2021, Randall pleaded guilty to production of child pornography. According to filed documents and statements made in court, in August 2020, law enforcement became aware of Randall’s production of child pornography after it was reported by family members. Law enforcement retrieved multiple electronic devices from Randall’s home and storage unit, including a cell phone, a laptop, cameras disguised to look like aerosol cans, and external electronic storage devices. A forensic analysis of the devices revealed that, on multiple occasions, Randall had secretly recorded videos of two prepubescent minor females while they were undressed or partially undressed in the bathroom and shower. Randall also possessed more than 200,000 images and videos of child pornography, some of which depicted children as young as infants being sexually abused.
Randall is currently in federal custody. He will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King thanked HSI and the Hendersonville Police Department for their investigation of the case.
Assistant U.S. Attorney Alexis Solheim, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 2006 by the Department of Justice, aimed at combating the growing online sexual exploitation of children. By combining resources, federal, state and local agencies are better able to locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue those victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Guilty Verdict Returned Against a Former Employee of the Department of Energy’s Strategic Petroleum Reserve in Connection with a Scheme to Defraud the United StatesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans and Jonathan Kanter, Assistant Attorney General for the Antitrust Division of the Department of Justice, announced that JOHNNY C. GUILLORY, SR., age 72, of Opelousas, Louisiana, was found guilty as charged on May 18, 2022 following a three-day jury trial before the Honorable Mary Ann Vial Lemmon.
The jury found GUILLORY guilty as charged in the indictment with conspiracy to defraud the United States and to violate the Procurement Integrity Act as well as making false statements to federal agents, in violation of 18 U.S.C. §§ 371 and 1001, respectively.
“The Strategic Petroleum Reserve is one of our nation’s vital programs, and collusion that destroys the integrity of the procurement process for government contracts will not be tolerated,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s guilty verdict demonstrates that people who corrupt that process, defraud the United States, and lie about it will be held accountable. The Antitrust Division will continue to vigorously prosecute offenses that undermine competition and work with our law enforcement partners to protect taxpayer dollars.”
“This guilty verdict sends a clear message that our office, along with our federal partners will vigorously investigate and prosecute all violations of our Nation’s laws, said U.S. Attorney of the Eastern District of Louisiana, Duane A. Evans.”
According to the indictment, GUILLORY conspired with Cajan Welding & Rentals, Ltd. to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the U.S. Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve. From 2002 until 2016, Cajan was awarded over 50 subcontracts and received payments in excess of $15,000,000.00 from the U.S. Department of Energy, during which time GUILLORY received financial benefits from Cajan.
GUILLORY will be sentenced on September 8, 2022 and faces a maximum term of five years imprisonment, a fine of up to $250,000.00, up to a three year term of supervised release, and a mandatory special assessment of $200.00, as to each count.
The case was prosecuted by Assistant U.S. Attorney Tracey N. Knight of the United States Attorney’s Office in the Eastern District of Louisiana and Trial Attorneys Megan S. Lewis and Julia Maloney of the Department of Justice Antitrust Division’s Washington Criminal II Section. The investigation was conducted by the Department of Energy’s Office of the Inspector General.
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Green Mountain Union High School Teacher Charged with Producing Child Sexual Abuse MaterialRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Norman Merrill II, 45, of Chester, Vermont, was arrested today after having been indicted by a federal grand jury for charges related to the production and possession of child sexual abuse material, also known as child pornography. Merrill is expected to appear before United States Magistrate Judge Kevin J. Doyle tomorrow. The government has filed a motion requesting defendant Merrill be detained pending trial.
According to court records, on May 7, 2022, officers from the Chester Police Department received reports concerning potential voyeurism occurring at Merrill’s home. The investigation uncovered allegations of a hidden recording device in a bathroom at Merrill’s home, and that Merrill appeared to surreptitiously record young girls who were walking in front of him while at Green Mountain High School, where he is employed as a teacher. Chester Police Officers obtained search warrants for Merrill’s home and electronics. The search warrants were executed on May 11, 2022, and Chester Police Officers seized numerous electronic devices, including “pinhole cameras” and a “spy camera.” The Vermont State Police conducted a preliminary examination of a memory card seized from the residence which revealed numerous voyeuristic videos taken in bathrooms. Some of these videos were taken in a bathroom of defendant Merrill’s residence and were determined to depict nude minor female children. The memory card also contained image files that appear to be screen-captures created from these videos of nude minors.
On May 19, 2022, the federal grand jury in Burlington returned an Indictment charging Merrill with production of child sexual abuse material, attempted production of child sexual abuse material, and possession of child sexual abuse material. The United States Attorney’s Office emphasizes that an Indictment contains allegations only and that Merrill is presumed innocent until and unless convicted of a crime. If convicted of all charges, Merrill faces a mandatory minimum sentence of 15 years of imprisonment, and a maximum sentence of 30 years of imprisonment.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Chester Police Department, Vermont State Police, and the Department of Homeland Security’s Homeland Security Investigations.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Merrill has not yet retained or been appointed counsel.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Grand Jury - May 2022Read the Press Release
United States Attorney Jan W. Sharp announced the federal Grand Jury for the District of Nebraska has returned 17 unsealed Indictments charging 19 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Mohamed Gamar Ahmed, age 19, of Grand Island, Nebraska, is charged in a two-count Indictment. Count I charges Ahmed with possession with intent to distribute cocaine and fentanyl on or about March 28, 2022. The penalty if convicted is 20 years’ imprisonment, a $1,000,000 fine, a three-year term of supervised release, and a $100 special assessment. Count II charges Ahmed with possession of a firearm in furtherance of a drug trafficking crime on or about March 28, 2022. The maximum possible penalty if convicted is 5 years’ imprisonment and up to life consecutive to Count I, a $250,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Brenda K. Banks, age 60, of Omaha, is charged in a nine-count Indictment. Counts I through VIII charge Banks with wire fraud beginning on or about April 2, 2018 and continuing through June 25, 2020. The penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, a $100 special assessment for each charge. Count IX charges Banks with bank fraud beginning on or about March, 2020 and continuing to on or about May, 2020. The penalty if convicted is 30 years’ imprisonment, a $1,000,000 fine, a five-year term of supervised release, a $100 special assessment.
* Martin Alvarez-Lopez, age 44, is charged with illegal reentry of a removed alien after a felony on or about April 21, 2022. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Kiara Jimenez, age 27, and Kelvin Baez-Adames, age 35, are charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of fentanyl analogue on or about August, 2021 and continuing to on or about May 4, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Danelle Charf, age 47, of Neligh, Nebraska, is charged in a five-count Indictment. Counts I through V charge Charf with healthcare fraud beginning on or about October 7, 2020 and continuing through January 11, 2021. The penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, a $100 special assessment for each charge.
* Tesluach K. Gatkuoth, age 25, of Grand Island, Nebraska, is charged with prohibited person in possession of a firearm on or about April 8, 2022. The penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Wagner Gomez-Batres, age 26, is charged with illegal reentry after deportation on or about April 22, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Nestor Gomez-Orta, age 36, and Mellenize A. Utterback, age 30, are charged in a two-count Indictment. Count I charges Gomez-Orta and Utterback with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about April 25, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment. Count II charges Utterback with felon in possession of ammunition. The penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment. There is also an allegation to forfeit United States currency seized on or about April 25, 2022.
* Anthony Jimenez-Godinez, age 22, of Franklin Park, Illinois, is charged with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about March 21, 2022. The penalty if convicted is not less than 10 years’ and up to life imprisonment, a $10,000,000 fine, a five-year term of supervised release, and a $100 special assessment.
* Adrian Lemus-Cruz, age 24, is charged with illegal reentry of a removed alien after felony conviction on or about April 20, 2022. The penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Juan Lopes-Castro a/k/a Juan Lopez-Castro, age 31, is charged with illegal reentry after deportation on or about April 28, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Juan Lopez-Bernabe, age 36, is charged with illegal reentry after deportation on or about April 16, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* Javier Ramos-Padilla, age 47, is charged with illegal reentry after deportation on or about April 26, 2022. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a one-year term of supervised release, and a $100 special assessment.
* BJ Jaquez Rice, age 29, is charged with felon in possession of a firearm on or about March 11, 2022. The penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Detrick Anthony Michael Smith, age 29, of Lincoln, Nebraska, is charged with prohibited person in possession of a firearm on or about April 6, 2022. The penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* Travis S. Walker, age 22, is charged with escape from custody on or about April 29, 2022. The penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
* DeJuan Wynne, age 29, is charged with escape from custody on or about April 28, 2022. The penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a three-year term of supervised release, and a $100 special assessment.
Former soldier sentenced to prison for sexual contact with a childRead the Press Release
SAVANNAH, GA: An Illinois man has been sentenced to nearly a decade in prison after admitting he had sexual contact with a child nearly 15 years ago at Fort Stewart.
Clarence Michael Lynch, 43, of Highland, Ill., was sentenced to 109 months in federal prison after pleading guilty to Abusive Sexual Contact of a Child Under 12, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Already a registered sex offender because of a prior criminal conviction, Lynch also was fined $2,000 and ordered to serve 15 years of supervised release after completion of his prison term. There is no parole in the federal system.
“Justice for this victim was long delayed, but ultimately not denied as the predator is now being held accountable for his vile actions,” said U.S. Attorney Estes. “The U.S. Army Criminal Investigation Division did outstanding work in bringing Lynch to justice.”
As described in court documents and testimony, Lynch was convicted in Liberty County in 2007 on state charges of sexual battery and false imprisonment with a 15-year-old victim, and subsequently served 10 years in state prison. As result of the conviction, he received a dishonorable discharge from the Army.
Three years after Lynch was released from state custody, a prior victim contacted the Belleville, Ill., Police Department to report multiple contacts from Lynch – including messages in which he admitted sexually abusing the then-10-year-old victim in 2006 while he was stationed at Fort Stewart.
Investigators from the U.S. Army Criminal Investigation Division (CID) subsequently questioned Lynch, taking him into custody in March 2021. He later was returned to the Southern District of Georgia for prosecution, and pled guilty to the charge.
“Seeing this former Soldier held accountable for his actions perpetrated against a child, no matter how long it took to bring the Soldier to justice, is a hallmark of what Army CID stands for,” said Supervisory Special Agent Donald Hayden, Fort Leonard Wood CID Office. “Our agents are professional, tenacious and driven to do what is right at all times.”
The case was investigated by the U.S. Army Criminal Investigation Division, and prosecuted for the United States by Special Assistant U.S. Attorney Darron J. Hubbard.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Former Wells Fargo Employee Is Sentenced to 70 Years in Prison for Production and Possession of Child PornographyRead the Press Release
CHARLOTTE, N.C. – A former Wells Fargo Information Technology employee was sentenced to 70 years in prison today on child pornography charges, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Michael Scott Hoover, 52, of Wilkesboro, N.C., will also be subject to a lifetime of supervised release and must register as a sex offender upon his release from prison. Hoover was also ordered to pay special assessments totaling $132,300.
Ronnie Martinez, Special Agent in Charge of Homeland Security Investigations (HSI) in North Carolina and South Carolina, Robert Schurmeier, Director of the North Carolina State Bureau of Investigation (SBI), and Sheriff Chris Shew of the Wilkes County Sheriff’s Office join U.S. Attorney King in making today’s announcement.
“Hoover is a predator who exploited innocent children entrusted in his care for his sexual gratification. I commend the prosecutors and investigators who worked hard on this case to ensure that Hoover is held accountable for his repugnant conduct. Thanks to their efforts, Hoover will spend decades behind bars, serving the longest prison sentence ever imposed on a child predator in this district,” said U.S. Attorney King.
“Our investigation, and the subsequent trial, have proven that Hoover is a serial child predator who stole the innocence of multiple young victims. Thanks to a thorough investigation by HSI and our partners, he was mistaken in his belief that his technical knowledge could be used to mask his criminal activity. With today’s sentence, he will be held fully accountable for his heinous crimes and will be prevented from harming another innocent child,” said Special Agent in Charge Martinez.
“This case exemplifies the exceptional collaboration between the U.S. Attorney’s Office for the Western District of North Carolina and HSI, the Wilkes County Sheriff’s Office and our Computer Crimes Unit. I applaud the excellent work of all those involved to bring this individual to justice. I especially want to thank Project Safe Childhood for bringing this matter to the attention of law enforcement. Let the message be crystal clear, the North Carolina State Bureau of Investigation’s Computer Crimes Unit will work relentlessly to bring justice to those who would victimize the most vulnerable segment of our population,” said Director Schurmeier.
“The sentence today sends a clear message that these types of despicable acts will not be tolerated. The innocence of our youth should never be violated and the community is a safer place today. I want to thank the federal prosecutors and all the investigative agencies for their great work on this case,” said Sheriff Shew.
According to filed court documents, evidence presented at trial and witness testimony, between June 2018 and August 2019, Hoover used his work cell phone to produce images and videos of two minor males, as young as 12-years-old, engaging in sexually explicit conduct. The child pornography was found on Hoover’s work cell phone during an internal investigation by Wells Fargo, where Hoover was employed at the time. Upon discovering the child pornography, Wells Fargo immediately reported its findings to law enforcement.
According to information presented at today’s sentencing hearing, in addition to producing child pornography, Hoover sexually abused at least eight minors over the course of more than 10 years. Some of the abuse occurred at Hoover’s home and vehicle, and during camping and other overnight trips Hoover had volunteered to take the victims as a chaperone.
A federal jury found Hoover guilty of two counts of production of child pornography and one count of possession of child pornography. Hoover is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, U.S. Attorney King commended the investigative work of HSI, SBI, and the Wilkes County Sheriff’s Office.
The prosecution for the government was handled by Assistant U.S. Attorneys Stephanie Spaugh and Cortney Randall.
The case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Stone County Sheriff's Deputy Faces Fraud, Extortion, and Firearms ChargesRead the Press Release
LITTLE ROCK—A former Chief Deputy with the Stone County Sheriff’s Office appeared in federal court today for arraignment on charges of bank fraud, selling a stolen firearm, and extortion. Zachary Hunter Alexander, 36, of Fifty Six, Arkansas, was indicted by a federal grand jury on May 3 and made his initial appearance today before United States Magistrate Judge Edie R. Erwin.
The indictment alleges that Alexander solicited money in 2018 from the Stone County Sheriff’s Foundation to purchase AR-15 style firearms for the Sheriff’s Office. According to the indictment, the Foundation provided over $4,000, which Alexander deposited into his personal account. Allegedly, Alexander provided and signed an invoice listing six firearms and their serial numbers, which turned out to be fraudulent, and this invoice was used to authorize a $3,090 expenditure on the Sheriff’s Office credit card.
In addition to those firearms, the indictment claims Alexander sold a sniper rifle to another individual, which is the basis of the charge of selling a stolen firearm, as the firearm belonged to the Stone County Sheriff’s Office and was purchased with Foundation money. Alexander also faces five charges of extortion under color of official right, and the indictment alleges he misused his authority as Chief Deputy Sheriff to obtain money that he used for himself. The indictment alleges that Alexander made various deposits totaling more than $105,000.
If convicted, Alexander faces potential penalties for bank fraud of not more than 30 years imprisonment, a fine of not more than $1 million, and not more than five years of supervised release. Selling a stolen firearm carries a penalty of not more than ten years imprisonment, a fine of not more than $250,000, and not more than three years of supervised release. Extortion under color of official right is punishable by not more than 20 years imprisonment, a fine of not more than $250,000, and not more than three years of supervised release.
An indictment only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Former School Official and Local Restauranteur Indicted in Kickback SchemeRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Sharon Gardner, the former Director of Food Services for the Hempstead Union Free School District (HUFSD), and Maria Caliendo, the owner of food service providers Smart Starts NY, Inc. (Smart Starts) and Prince Umberto’s restaurant in Franklin Square, with conspiracy to commit honest services wire fraud in connection with a kickback scheme involving HUFSD procurement contracts. The indictment also charges Caliendo with making false statements to a federal agent investigating the fraudulent scheme. The defendants are scheduled to be arraigned this afternoon before United States District Judge Joanna Seybert at the federal courthouse in Central Islip.
Breon Peace, United States Attorney for the Eastern District of New York; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); Beth Dinkins, Special Agent-in-Charge United States Department of Agriculture, Inspector General's Office; Terry Harris, Special Agent in Charge, U.S. Department of Education Office of Inspector General’s Eastern Regional Office; Thomas Fattorusso, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York; Anne T. Donnelly, Nassau County District Attorney; and Thomas P. DiNapoli, New York State Comptroller, announced the arrests and charges.
“As alleged, with little regard for the taxpaying public, the defendants secretly steered lucrative food service contracts to themselves and then illegally shared the profits,” stated United States Attorney Peace. “This Office will continue to vigorously investigate and prosecute those who attempt to corrupt our public institutions through illegal bribes and kickbacks, as well as the officials who enrich themselves at the expense of the public they serve.”
"As alleged, Ms. Gardner and Ms. Caliendo engaged in a scheme in which Ms. Gardner steered more than $1 million in sole-source school breakfast contracts to Ms. Caliendo's company, in spite of the fact more cost-effective options existed. In exchange, Ms. Caliendo illicitly paid more than $100,000 in kickbacks to Ms. Gardner, which she used to purchase a variety of personal luxuries. Today's action demonstrates the FBI's commitment to bringing to justice those who seek to illegally benefit from taxpayer-funded programs intended to serve the public," stated Assistant Director-in-Charge Driscoll.
“Instead of following the legitimate bidding process for a food services contract, the defendants allegedly used the Hempstead School District as their own piggy bank,” Nassau County District Attorney Donnelly said. “This prosecution sends a strong message to public officials that anyone using tax dollars to unjustly enrich themselves will be prosecuted to the fullest extent of the law.”
“There is no place for corruption in the United States, especially as it relates to programs set up to feed hungry children and provide assistance to the most vulnerable in our society,” stated Special Agent-in-Charge Beth Dinkins.
“It’s alleged this duo conspired together in this fraud scheme where Gardner procured millions of dollars in contracts for Caliendo’s business, choosing Caliendo’s company’s bid in exchange for high-value kickbacks,” said IRS-CI Special Agent in Charge Fattorusso. “While Gardner accepted the higher bid for her own personal gain, the taxpayers of the Hempstead Union Free School District were left holding the bill. IRS-CI continues to work with our law enforcement partners to ensure that those who choose to cheat the public to support their own extravagant lifestyle face the consequences of their criminal acts.”
“Stealing money meant to feed students in need is reprehensible,” said State Comptroller DiNapoli. “Due to my partnership with United States Attorney Peace, District Attorney Donnelly, the FBI and our federal partners, this former school employee and her co-conspirator will be held accountable for their alleged actions. I will continue to work with law enforcement across the state to root out public corruption and protect taxpayers.”
As alleged in the indictment, in her capacity as the Director of Food Services for HUFSD, Gardner helped secure lucrative contracts for Caliendo’s company, Smart Starts, to provide prepackaged breakfast meals for Hempstead public school students. For example, during the 2016-17 school year, Gardner persuaded HUFSD officials to treat Caliendo as a “sole source” vendor (a designation typically reserved for providers of unique or rare supplies for which sourcing is limited) of breakfast foods, thereby avoiding competitive bidding for the district’s business. Subsequently, in the 2017-18 school year, Gardner oversaw a supposedly competitive bidding scenario for the breakfast items, only to award a second procurement contract to Smart Starts despite the existence of more cost-effective bids. In total, pursuant to these procurement contracts, Caliendo’s company received more than $1.2 million from HUFSD.
In exchange, Caliendo kicked back a portion of the contract proceeds totaling more than $100,000 to Gardner through fraudulent payroll deposits and other payments. To conceal the illegal nature of the arrangement, those payments were deposited into a bank account that was created in the name of one of Gardner’s family members. Yet, the kicked back funds were spent by Gardner on international vacations, a leased vehicle and home furnishings, among other things. Approximately $13,000 in kicked back funds were also withdrawn by Gardner in cash from ATMs located near her home and workplace.
In voluntary interviews with investigators, Caliendo made materially false statements concerning the justification for the payments, falsely claiming that they represented repayment for a startup loan from Gardner’s family member, despite having received no capital contribution, work or labor from that individual.
If convicted, the defendants face up to 20 years’ imprisonment for the conspiracy to commit wire fraud charge. The charges in the indictment are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being prosecuted by the Office’s Long Island Criminal Division. Assistant United States Attorneys Anthony Bagnuola and Charles P. Kelly are in charge of the prosecution.
The Defendants:
SHARON GARDNER
Age: 56
Lindenhurst, New YorkMARIA CALIENDO
Age: 57
Elmont, New YorkE.D.N.Y. Docket No. 22-CR-229 (JS) (JMW)
Former Member of New Bedford Latin Kings Chapter Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced on May 17, 2022 on racketeering charges.
Taliyah Barboza, a/k/a “Queen Taliyah,” 27, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (approximately six days in prison) and three years of supervised release. The government recommended a sentence of 15 months in prison. In November 2020, Barboza pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf. Barboza drove gang members to a robbery and shooting in September 2019 and participated in the drug distribution activities of the gang.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Barboza is the 51st defendant to be sentenced in the case.
The United States Attorney’s Office for the District of Massachusetts; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorney Philip A. Mallard of the Organized Crime & Gang Unit prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Massachusetts Resident Sentenced to 12 Years in Federal Prison for Sex TraffickingRead the Press Release
A former Brockton, Massachusetts, resident was sentenced today to twelve years in prison for participating in a sex trafficking conspiracy.
Matthew Engram, 35, had previously pleaded guilty to one count of conspiracy to commit sex trafficking by force, fraud and coercion; two counts of transportation of an individual for purposes of prostitution; and one count of conspiracy to commit interstate travel in aid of a racketeering enterprise. According to court documents, from January 2009 until August 2015, Engram and a co-conspirator recruited and trafficked three victims from a residence in Brockton and elsewhere, and Engram took all or part of the proceeds. Engram advertised the victims on websites, exchanged text messages with his co-conspirator to share advertisements, organized prostitution dates, and reserved hotel rooms. When the victims did not comply with Engram’s demands to prostitute for his profit, he physically assaulted them or directed his co-conspirator to physically assault them. Engram also transported or caused the transport of the victims to other states, including Connecticut, Pennsylvania, New York, Virginia, Florida and Maine, to perform commercial sex acts.
“Sex trafficking is an atrocious crime that dehumanizes victims by depriving them of their freedom and dignity,” said Assistant Attorney General Kristen Clarke. “This sentence demonstrates that there are severe consequences for those who seek to exploit vulnerable young women for financial profit. The Justice Department will continue to vigorously prosecute human traffickers and secure justice for survivors of trafficking.”
“Mr. Engram took advantage of numerous young women through psychological manipulation, violence and fear,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “For over six years, he profited off of their pain and exploitation. Although we can never take away the trauma and violence endured by these survivors, today’s sentencing makes clear that the federal government is committed to eliminating human trafficking and holding traffickers accountable. My office and our law enforcement partners remain relentless in this pursuit.”
“Engram used violence and threats to control his victims, seeing them not as individuals, but as means for profit,” said Special Agent in Charge Matthew Millhollin for the Homeland Security Investigations’ New England Field Office. “His callous exploitation violated their basic human dignity as he trafficked them around the country to engage in commercial sex. We hope that today’s sentence offers a modicum of justice to those victimized by him who continue to live with the impacts of his actions.”
“Victims of human trafficking suffer physical abuse and immeasurable emotional abuse from their captors,” said Brockton Police Chief Brenda Perez. “We are pleased to see justice served today and proud of the hard work and collaboration that led to today's sentencing.”
Homeland Security Investigations conducted the investigation with the assistance of the Boston Police Department. Assistant U.S. Attorney Suzanne Sullivan Jacobus of U.S. Attorney Rollins’s Major Crimes Unit and Trial Attorneys Shan Patel and Vasantha Rao of the Civil Rights Division prosecuted the case.
Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org.
Former Maryland Heights police officer admits child pornography chargeRead the Press Release
ST. LOUIS – A former Maryland Heights, Missouri police officer pleaded guilty Thursday in United States District Court to a felony child pornography charge.
Nicholas H. Haglof, 30, admitted viewing hundreds of images containing child pornography using his laptop computer and cell phone in 2019 and 2020. Haglof later deleted the images, but a tip from the Bing search engine to the National Center for Missing and Exploited Children prompted an investigation.
Investigators seized Haglof’s laptop and cell phone on July 31, 2020.
At Haglof’s sentencing later this year on the charge of accessing with the intent to view child pornography, the government will ask United States District Court Henry E. Autrey for four years in prison. Haglof will also be subject to mandatory restitution of at least $3,000 for each victim who has been identified in the images and who requests the restitution.
The case was investigated by the St. Louis County Police Department Special Investigations Unit and the Federal Bureau of Investigation. Assistant United States Attorney Jillian Anderson is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Lincoln Police Department Dispatcher Sentenced for Child Pornography OffensesRead the Press Release
BOSTON – A former dispatcher for the Lincoln Police Department was sentenced yesterday in federal court in Boston on charges of child pornography.
Spencer Hughes, 33, of Randolph, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison and five years of supervised release. On Jan. 6, 2022, Hughes pleaded guilty to one count of receipt of child pornography and one count of possession of child pornography involving a prepubescent minor or a minor who had not attained 12 years of age.
A search of Hughes’ residence in October 2020 resulted in the recovery of multiple electronic devices and external hard drives. An on-site preliminary forensic examination revealed multiple folders saved to the Hughes’ external hard drive under what appeared to be female names. One folder contained approximately 19 digital files depicting child pornography, including images and videos. This folder included a prepubescent minor female who appeared to be younger than the age of 12 engaged in sexual conduct, among other things. Further analysis of the Hughes’ electronic devices revealed more than 2,200 images and approximately 68 videos of child pornography. Prior to the search, Hughes was employed by the Town of Lincoln Police Department as a dispatcher.
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 J. Mackenzie Duane of Rollins’ Major Crimes Unit prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by 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 https://www.justice.gov/psc.
Former Key Worldwide Employee Sentenced in College Admissions CaseRead the Press Release
BOSTON – A former employee of William “Rick” Singer’s “The Key” for-profit business was sentenced today for her involvement in a scheme to use bribery and fraud to facilitate the admission of applicants to colleges nationwide.
Mikaela Sanford, 35, of Folsom, Calif., was sentenced by U.S. District Court Judge Indira Talwani to time served and one year of supervised release and was ordered to pay forfeiture in the amount of $67,062. In October 2020, Sanford pleaded guilty to one count of conspiracy to commit racketeering.
Sanford, who was employed by “The Key,” took online classes for students so that the students could submit the grades Sanford earned in their names as part of their application packages to colleges and universities. In other instances, Sanford helped fabricate athletic “profiles” and other documents to bolster students’ college applications by making the students appear to be highly successful high school athletes when, in fact, they were not.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
United States Attorney Rachael S. Rollins; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office, made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Rollins’ Securities, Financial & Cyber Fraud Unit prosecuted the case.
Former Gulf Cartel Leader Extradited to East Texas for Drug Trafficking ViolationsRead the Press Release
BEAUMONT, Texas – A Mexican national has been extradited to the United States to face drug trafficking violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Mario Cardenas-Guillen, 57, of Matamoros, Mexico, was indicted by a federal grand jury on June 20, 2012, and charged with conspiracy with intent to distribute five kilograms or more of cocaine. Cardenas-Guillen was surrendered to the United States on May 17, 2022. He will make an initial appearance on May 23, 2022, before U.S. Magistrate Judge Zack Hawthorn.
According to the indictment, beginning in 2000 and continuing through 2012, Cardenas-Guillen is alleged to have conspired with others to possess more than five kilograms of cocaine, which he intended to distribute to others.
“International sources of illegal drugs continue to poison our communities,” said U.S. Attorney Brit Featherston. “We will make every effort to combat this scourge, and that includes going to the origin of the drugs in foreign countries and arresting and prosecuting those who seek to make a profit off this blight that adversely affects so many in our society.”
“For decades, the Gulf Cartel has used intimidation and extreme violence to maintain control of its territories in northeast Mexico and smuggle deadly drugs into communities across the United States,” said DEA Administrator Anne Milgram. “The extradition of Mario Cardenas Guillen, the former leader of the Gulf Cartel, should send a clear message to the leaders of drug trafficking organizations around the world that no one is beyond the reach of the DEA and our law enforcement partners.”
If convicted, Cardenas-Guillen faces from 10 years to life in federal prison.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is being investigated by the U.S. Drug Enforcement Administration and prosecuted by Assistant U.S. Attorney Christopher Rapp.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Cardenas-Guillen to the United States. Special thanks to the Government of Mexico for their help in the capture and extradition of Cardenas-Guillen.
A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Federal Correctional Officer Pleads Guilty for Role in Bribery and Contraband Smuggling ConspiracyRead the Press Release
PORTLAND, Ore.—A former federal correctional officer at the Federal Correctional Institute (FCI) in Sheridan, Oregon pleaded guilty today for his role in a bribery and contraband smuggling conspiracy.
Nickolas Carlos Herrera, 32, pleaded guilty to conspiracy, providing contraband in prison, and accepting a bribe as a public official.
According to court documents, from April 2015 until he was placed on administrative leave in December 2019, Herrera was employed as a correctional officer at FCI Sheridan, a federal prison in Yamhill County, Oregon. Herrera used his position to introduce contraband into the facility for the benefit of select inmates including Donte Hunt, 40, who is in custody pending an October 2022 trial on federal drug, gun, and money laundering charges. In the spring of 2019, Herrera began bringing contraband items such as food, clothing, and cigarettes into the facility, which he gave to Hunt in exchange for money.
Later, Herrera brought Hunt marijuana; Suboxone, a Schedule III narcotic; Yeezy brand designer sneakers, and a cell phone. Herrera obtained the narcotics and other items from Elizabeth McIntosh, 34, a non-incarcerated associate of Hunt’s. On at least one occasion, Herrera allowed Hunt to use a staff phone at the prison to call McIntosh to arrange the delivery of Suboxone to Herrera. Herrera met McIntosh on multiple occasions to obtain the narcotics and other items for Hunt and accepted payment from McIntosh via transfers of cash and transfers using various digital payment services including PayPal, Apple Cash, and Square.
On September 24, 2020, a federal grand jury in Portland returned an indictment charging Herrera, Hunt, and McIntosh with conspiracy and bribing a public official. Herrera and Hunt were additionally charged with providing contraband in prison.
Herrera and McIntosh were arraigned on November 2 and 4, 2020, respectively. Both were released on conditions. Hunt was arraigned on November 19, 2020 and ordered to continue his pre-trial detention.
Herrera and Hunt face maximum sentences of 25 years in prison, a $750,000 fine, and five years’ supervised released. McIntosh faces a maximum sentence of 20 years in prison, a $500,000 fine, and five years’ supervised released.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Federal Bureau of Prisons. It is being prosecuted by Ethan Knight and Katherine Rykken, Assistant U.S. Attorneys for the District of Oregon.
Former Employee of the Department of Energy’s Strategic Petroleum Reserve Convicted for Role in Scheme to Defraud the United StatesRead the Press Release
A federal jury convicted a Louisiana man today for his role in a scheme to defraud the United States.
According to documents and evidence presented at trial, Johnny C. Guillory Sr., 72, of Opelousas, Louisiana, conspired with Cajan Welding & Rentals, Ltd. to defraud the United States by corrupting and impairing the government procurement process, and by obtaining non-public pricing and cost information in order to obtain subcontract awards and payments from the Department of Energy in connection with its operation of the nation’s Strategic Petroleum Reserve. From 2002 until 2016, Cajan was awarded over 50 subcontracts and received payments in excess of $15 million from the Department of Energy, during which time Guillory received financial benefits from Cajan.
“The Strategic Petroleum Reserve is one of our nation’s vital programs, and collusion that destroys the integrity of the procurement process for government contracts will not be tolerated,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Today’s guilty verdict demonstrates that people who corrupt that process, defraud the United States, and lie about it will be held accountable. The Antitrust Division will continue to vigorously prosecute offenses that undermine competition and work with our law enforcement partners to protect taxpayer dollars.”
“This guilty verdict sends a clear message that our office, along with our federal partners will vigorously investigate and prosecute all violations of our nation’s laws,” said U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.
Guillory was convicted of conspiracy to defraud the United States and to violate the Procurement Integrity Act as well as making false statements to federal agents. Guillory is scheduled to be sentenced on Sept. 8, and faces a maximum term of five years imprisonment, a fine of up to $250,000, up to a three-year term of supervised release, and a mandatory special assessment of $200.00, as to each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Energy’s Office of the Inspector General investigated the case.
Trial Attorneys Megan S. Lewis and Julia Maloney of the Antitrust Division’s Washington Criminal II Section and Assistant U.S. Attorney Tracey N. Knight of the U.S. Attorney’s Office in the Eastern District of Louisiana are prosecuting the case.
Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at (202) 598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.
Former Director of Public Works in Guayama Pleads Guilty to Accepting Bribes in Exchange for Certifying Completion of Municipal Asphalt ProjectsRead the Press Release
SAN JUAN, Puerto Rico – The former Director of Public Works in the Municipality of Guayama, Puerto Rico, Ramón Conde-Meléndez, pleaded guilty today in Puerto Rico to engaging in a bribery conspiracy in which he received cash payments in exchange for certifying the completion of asphalt projects which was required for the approval of payments from the Municipality of Guayama to an asphalt and paving company.
According to court documents, in 2019 and 2021, Ramón Conde-Meléndez agreed to receive and did receive multiple kickback payments from Individual A, an owner of an asphalt and paving company, equaling approximately $1.00 for each square meter of asphalt removed by the company in the municipality of Guayama. The total value of the kickback payments received by the defendant from Individual A exceeded $15,000.
Conde-Meléndez pleaded guilty to one count of conspiracy to engage in a bribery scheme. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI San Juan Field Office made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Seth A. Erbe of the United States Attorney’s Office for the District of Puerto Rico are prosecuting the case.
This case is part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Luis Arroyo-Chiqués, 21-485 (SCC); United States v. Eduardo Cintrón-Suárez, 22-151 (SCC); United States v. Félix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodríguez, 21-465 (RAM).
Additionally, the Department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Ángel Pérez-Otero, 21-474 (ADC); and United States v. Radamés Benítez-Cardona, 21-475 (PAD); United States v. Javier García-Pérez, 22-185 (ADC); United States v. Reinaldo Vargas-Rodríguez, 22-186 (PAD).
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Former Congresswoman Corrine Brown Pleads Guilty to Corrupt Obstruction of the Administration of the Internal Revenue LawsRead the Press Release
Jacksonville, Florida – United States Attorney Roger B. Handberg announces that Corrine Brown (75, Jacksonville) today pleaded guilty to engaging in a corrupt endeavor to obstruct and impede the due administration of the internal revenue laws. After accepting her guilty plea, Chief Judge Timothy J. Corrigan sentenced Brown to the time that she had already served in the custody of the U.S. Bureau of Prisons, specifically two years, eight months, and nine days. Brown was also ordered to pay $62,650.99 in restitution to the Internal Revenue Service.
According to the plea agreement, between October 15, 2009, and October 15, 2015, Brown caused her certified public accountant to file individual income tax returns for tax years 2008 through 2014 that did not include income associated with cash deposits into her bank accounts. During the same period, Brown also over-reported her charitable giving by inflating total gifts to charitable organizations and non-profit entities. Brown signed each referenced tax return under penalty of perjury, knowing that each one contained false information. In addition, Brown caused two Jacksonville non-profit entities to create letters that did not accurately reflect her donations so that Brown could use those letters during an IRS audit.
Brown was previously convicted by a federal jury for various offenses; after Brown’s appeal, her earlier conviction was vacated.
The Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation investigated the case. Assistant U.S. Attorneys A. Tysen Duva and Michael J. Coolican of the Middle District of Florida and Trial Attorney Michelle Parikh and former Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section prosecuted the case.
Former Brockton Man Sentenced to 12 Years in Prison for Sex TraffickingRead the Press Release
BOSTON – A former Brockton man was sentenced today in federal court in Boston on sex trafficking charges.
Matthew Engram, a/k/a “Magic,” 35, was sentenced by U.S. District Court Judge Allison D. Burroughs to 12 years in prison and five years of supervised release. On Feb. 17, 2022, Engram pleaded guilty to one count of conspiracy to commit sex trafficking, two counts of transportation of an individual for purposes of prostitution and one count of conspiracy to commit interstate travel in aid of a racketeering enterprise.
“Mr. Engram took advantage of numerous young women through psychological manipulation, violence and fear. For over six years, he profited off of their pain and exploitation,” said United States Attorney Rachael S. Rollins. “Although we can never take away the trauma and violence endured by these survivors, today’s sentencing makes clear that the federal government is committed to eliminating human trafficking and holding traffickers accountable. My office and our law enforcement partners remain relentless in this pursuit.”
“Sex trafficking is an atrocious crime that dehumanizes victims by depriving them of their freedom and dignity,” said Assistant Attorney General Kristen Clarke. “This sentence demonstrates that there are severe consequences for those who seek to exploit vulnerable young women for financial profit. The Justice Department will continue to vigorously prosecute human traffickers and secure justice for survivors of trafficking.”
“Engram used violence and threats to control his victims, seeing them not as individuals, but as means for profit. His callous exploitation violated their basic human dignity as he trafficked them around the country to engage in commercial sex,” said Matthew B. Millhollin, Special Agent in Charge for the Homeland Security Investigations’ New England Field Office. “We hope that today’s sentence offers a modicum of justice to those victimized by him who continue to live with the impacts of his actions.”
“Victims of human trafficking suffer physical abuse and immeasurable emotional abuse from their captors. We are pleased to see justice served today and proud of the hard work and collaboration that led to today's sentencing,” said Brockton Police Chief Brenda Perez.
From January 2009 until August 2015, Engram, aided by co-conspirator Natashia Bowman, recruited and trafficked three identified victims, as well as others, from a residence in Brockton and elsewhere to engage in commercial sex acts and took all or part of the proceeds.
Engram recruited the victims and others by falsely promising good earnings. Engram then advertised the victims on websites, exchanged text messages with Bowman to share advertisements, organized prostitution dates and reserved hotel rooms. To maintain control, Engram used physical assault, intimidation and isolation to create a climate of fear that compelled the victims and others to continue engaging in commercial sex acts for his profit. When the victims did not comply with Engram’s demands or did not make enough money, he physically assaulted them or directed Bowman to physically assault them. Engram also transported, or caused to transport, the victims to other states, including Connecticut, Pennsylvania, New York, Virginia, Florida and Maine, to perform commercial sex acts.
In September 2020, Bowman pleaded guilty to conspiracy to commit interstate travel in aid of a racketeering enterprise and is scheduled to be sentenced on Aug. 9, 2022.
U.S. Attorney Rollins, AAG Clarke, HSI SAC Millhollin, Chief Perez and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistance was provided by Homeland Security Investigations in Philadelphia. Assistant U.S. Attorney Suzanne Sullivan Jacobus of Rollins’ Major Crimes Unit and Trial Attorneys Shan Patel and Vasantha Rao of the Justice Department’s Civil Rights Division prosecuted the case.
Folsom Man Pleads Guilty to Making and Subscribing False Tax ReturnsRead the Press Release
SACRAMENTO, Calif. —Zarko Danilov, 67, of Folsom, pleaded guilty today to two counts of making and subscribing a false tax return, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Danilov owned and operated a dental laboratory business called Danilov’s Dental Lab. Danilov hid the true amount of gross receipts received from his business from his tax return preparers. For the tax years 2015 and 2016, Danilov failed to provide his return preparer the bank statements for one additional business bank account and one personal bank account. For the tax year 2017, Danilov failed to provide his return preparer the bank statements for that same business bank account and a different personal bank account. During a civil audit by the IRS, Danilov lied to a tax examiner about only having one bank account for business and personal matters.
In total, Danilov’s income for tax years 2015, 2016, and 2017 was underreported by at least $1,271,694. The total amount lost by the IRS as a result of defendant’s criminal conduct for those tax years was approximately $283,359.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation. Assistant U.S. Attorney Denise N. Yasinow is prosecuting the case.
Danilov is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Aug. 25, 2022. Danilov faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Florida Power Company Pleads Guilty in Worker Death Case, Incident Resulted in the Deaths of Five WorkersRead the Press Release
A Florida corporation pleaded guilty in federal court in the Middle District of Florida to a charge of willfully violating an Occupational Safety and Health Administration (OSHA) rule. The criminal charge related to an explosion at a coal-fired power plant in 2017 that caused the deaths of five workers.
Tampa Electric Company (TECO) operates several facilities in Florida, including Big Bend, a coal-fired power plant outside of Tampa. At the time, the facility consisted of four large coal-fired furnaces. Underneath the furnaces were water-filled tanks designed to catch and cool the molten “slag” by-product that drips down from the furnace. On June 29, 2017, hardened slag had accumulated at the top and the bottom of the slag tank and could not be removed. Rather than shutting down the furnace, TECO called in a contractor to perform high-pressure water blasting to try and clear the slag with the unit on-line. The work proceeded without observance of several safety-related procedures required by law. Five people were killed when one of the slag accumulations came loose, spraying the area with molten slag.
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations.
“This incident demonstrates the importance of OSHA’s safety standards, and the harms that they are designed to prevent,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The deaths caused by the defendant’s conduct were tragic and they were preventable. The Justice Department will vigorously prosecute those who fail to follow these critical safety rules.”
“Had TECO complied with OSHA’s workplace safety standards, conducted a pre-job briefing and followed its own procedure, these senseless deaths could have been prevented,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our hearts go out to the victims’ families as well as other TECO employees and contractors impacted by this catastrophic event “Our office is proud to have partnered with DOJ’s Environmental Crimes Section to shine a light on this willful violation of OSHA safety standards in order to deter such conduct and ensure that workers are protected in the future.”
“This investigation demonstrates the FBI’s unyielding commitment to the mission of protecting the American people and upholding the U.S. Constitution,” said Special Agent in Charge David Walker of the FBI Tampa Field Office.“Our heartfelt sympathies go out to the victims’ families along with our promise to work with our federal partners in ensuring the safety of America’s workplaces.”
In a plea agreement with the government, TECO admitted to willfully failing to hold a pre-job briefing with the workers performing the work. Such briefing should have included the procedures for the water blasting work. Instead, the work proceeded even though the procedures could not be found. As a result, certain critical safety-related steps were not taken, including lowering the amount of coal entering the furnace, and shutting the unit down after a specified interval had lapsed.
The FBI and the Department of Labor, Office of Inspector General investigated the case.
Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Rachelle DesVaux Bedke for the Middle District of Florida prosecuted the case.
Florida Power Company Pleads Guilty in Worker Death Case, Incident Resulted in the Deaths of Five WorkersRead the Press Release
Tampa, FL – A Florida corporation pleaded guilty in federal court in the Middle District of Florida to a charge of willfully violating an Occupational Safety and Health Administration (OSHA) rule. The criminal charge related to an explosion at a coal-fired power plant in 2017 that caused the deaths of five workers.
Tampa Electric Company (TECO) operates several facilities in Florida, including Big Bend, a coal-fired power plant outside of Tampa. At the time, the facility consisted of four large coal-fired furnaces. Underneath the furnaces were water-filled tanks designed to catch and cool the molten “slag” by-product that drips down from the furnace. On June 29, 2017, hardened slag had accumulated at the top and the bottom of the slag tank and could not be removed. Rather than shutting down the furnace, TECO called in a contractor to perform high-pressure water blasting to try and clear the slag with the unit on-line. The work proceeded without observance of several safety-related procedures required by law. Five people were killed when one of the slag accumulations came loose, spraying the area with molten slag.
Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations.
“This incident demonstrates the importance of OSHA’s safety standards, and the harms that they are designed to prevent,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The deaths caused by the defendant’s conduct were tragic and they were preventable. The Justice Department will vigorously prosecute those who fail to follow these critical safety rules.”
“Had TECO complied with OSHA’s workplace safety standards, conducted a pre-job briefing and followed its own procedure, these senseless deaths could have been prevented,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “Our hearts go out to the victims’ families as well as other TECO employees and contractors impacted by this catastrophic event. Our office is proud to have partnered with DOJ’s Environmental Crimes Section to shine a light on this willful violation of OSHA safety standards in order to deter such conduct and ensure that workers are protected in the future.”
“This investigation demonstrates the FBI’s unyielding commitment to the mission of protecting the American people and upholding the United States Constitution,” said Special Agent in Charge David Walker for FBI Tampa Field Office. “Our heartfelt sympathies go out to the victims’ families along with our promise to work with our federal partners in ensuring the safety of America’s workplaces.”
In a plea agreement with the government, TECO admitted to willfully failing to hold a pre-job briefing with the workers performing the work. Such briefing should have included the procedures for the water blasting work. Instead, the work proceeded even though the procedures could not be found. As a result, certain critical safety-related steps were not taken, including lowering the amount of coal entering the furnace, and shutting the unit down after a specified interval had lapsed.
The FBI and the Department of Labor, Office of Inspector General investigated the case.
Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney Rachelle DesVaux Bedke for the Middle District of Florida prosecuted the case.
Florida Man Is Found Guilty in Connection with A Business Email Compromise SchemeRead the Press Release
CHARLOTTE, N.C. – A federal jury has convicted Pierre Yvelt Almonor, 49, of Miami Gardens, Florida, for his role in a conspiracy to launder illegal proceeds from a business email compromise scheme that defrauded law firms and other companies of more than $1 million, announced Dena J. King, U.S. Attorney for the Western District of North Carolina. Almonor was convicted of engaging in a money laundering conspiracy to commit concealment money laundering, international concealment money laundering, and transactional money laundering.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney King in making today’s announcement.
A business email compromise scheme, or BEC, is a sophisticated scam, often targeting businesses involved in wire transfer payments. The fraud is carried out by fraudsters compromising and/or “spoofing” legitimate business email accounts through social engineering or computer intrusion techniques, to cause employees of the victim company or other individuals involved in legitimate business transactions to transfer funds to accounts controlled by the scammers.
According to trial evidence, witness testimony and documents filed with the court, from August 2014 through November 2017, as part of the money laundering conspiracy, Almonor arranged to have nearly $395,000 in real estate closing proceeds stolen through a BEC deposited in a business account over which he exercised control, utilizing it as a “money mule” bank account. Money mule bank accounts are accounts used by fraudsters as a pass-through means of moving fraudulently obtained funds. Almonor then facilitated wires to Spain and South Africa totaling more than $200,000 and withdrew more than $50,000 in proceeds as compensation for his role in the conspiracy.
Almonor remains on bail pending sentencing. A sentencing date has not been set. The money laundering conspiracy charge carries a maximum sentence of 20 years, and a fine of $500,000 or twice the value of the proceeds.
Ugo Ernest Uzomba previously pleaded guilty to money laundering conspiracy and is awaiting sentencing.
The FBI investigated the case. Assistant U.S. Attorneys Maria K. Vento and Matthew T. Warren of the U.S. Attorney’s Office in Charlotte prosecuted the case.
Firefighter arrested for Transporting and Harboring Non-Citizens for financial gainRead the Press Release
SAN JUAN, Puerto Rico – On May 18, 2022, a federal grand jury returned an indictment charging Pedro Rafael Rodríguez-Garnier, 54, of Cabo Rojo, Puerto Rico, with transporting and harboring illegal aliens.
According to the investigation, on August 1, 2019, during the early morning hours, Pedro Rafael Rodríguez-Garnier encountered multiple immigrants that had arrived in Puerto Rico illegally. He transported them from Joyuda to Puerto Real, Cabo Rojo, and once there, defendant harbored them and requested money in exchange for providing them food and shelter.
“Today’s arrest demonstrates the Department of Justice’s commitment to protecting and seeking justice for vulnerable individuals,” said W. Stephen Muldrow, United States Attorney for the District of Puerto Rico.
“HSI San Juan is focused on identifying and assisting victims of crimes, and providing them with services regardless of citizenship or status,” said HSI San Juan Special Agent in Charge Ivan Arvelo. “We are committed to bringing to justice those who try to take advantage of the vulnerabilities of non-citizens.”
Special Assistant United States Attorney Nadia Pineda-Perez is in charge of the prosecution of this case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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