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Monday 9 May 2022
Two Owners of Tony Luke’s Philadelphia Cheesesteak Restaurant Plead Guilty to Conspiracy to Defraud the IRSRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Anthony Lucidonio, Sr., 84, of Philadelphia, PA, and Nicholas Lucidonio, 56, of New Jersey, pleaded guilty today before United States District Court Judge Gerald McHugh to charges related to their conspiracy to defraud the United States for the purpose of impeding, impairing, or obstructing the Internal Revenue Service in the assessment and collection of employment taxes. The defendants, who were indicted in July 2020, are owners of Tony Luke’s, a cheesesteak and sandwich restaurant located in South Philadelphia. In pleading guilty, the defendants admitted to participating in a tax fraud scheme to evade payroll taxes between 2006 and 2016.
According to evidence summarized at today’s hearing, the defendants paid a significant number of their employees and partially “off-the-books.” To avoid withholding and paying over to the IRS employment taxes of the “off-the-books” amount, defendants gave their employees paychecks that reflected a portion of the employees’ hourly wages with the required taxes withheld. However, the wages the defendants paid and reported in this fashion represented only a portion of the true hours the employees worked. The Lucidonios then directed their employees to endorse their paychecks and give them back to the defendants and their restaurant managers. In exchange for return of the endorsed payroll checks, defendants provided their employees envelopes containing cash. This process allowed the defendants to understate the hours each employee worked. The scheme caused Tony Luke’s accountant to substantially understate the wages paid to the employees, and subsequently, the payroll taxes due to the United States.
According to a plea memorandum filed with the court, the government intends to prove at the defendants’ sentencing hearing that the government lost between $550,000 and $1.5 million as a result of the defendants’ scheme.
“This tax fraud scheme victimized honest taxpayers in two ways: first, by hiding the restaurant’s revenue from the IRS and second, by avoiding employee payroll taxes,” said U.S. Attorney Williams. “Tony Luke’s is an iconic brand in our region, but that is no excuse or explanation for the fraud these defendants perpetrated. We will continue to work with our law enforcement partners to investigate and prosecute these types of crimes.”
“While they successfully misled their accountant, they could not do the same when it came to the IRS,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Cases like this underscore the expertise IRS Special Agents possess and their ability to track down unreported wages paid to employees. Today, Anthony Lucidonio Sr. and Nicholas Lucidonio have taken a step in the right direction by admitting their guilt and accepting responsibility for their actions.”
The case was investigated by the Criminal Investigative Division of the Internal Revenue Service, and is being prosecuted by Trial Attorney John N. Kane of the Tax Division of the Department of Justice, and Assistant United States Attorney Richard P. Barrett.
Two Mexican Nationals Charged with Hostage Taking, Transportation of Illegal Aliens, and Firearms OffensesRead the Press Release
TUCSON, Ariz. – Last week, a federal grand jury in Tucson returned an eight-count indictment against Mexican Nationals Olegario Lares-De La Rosa, 29, and Ivan Heriberto Borboa-Ruiz, 28, for Conspiracy to Commit Hostage Taking, Hostage Taking, Conspiracy to Commit Transportation of Illegal Aliens for Profit, Transportation of Illegal Aliens for Profit, and Prohibited Possessors of Firearms and Ammunition.
The indictment alleges that from a date unknown until April 8, 2022, Lares-De La Rosa and Borboa-Ruiz conspired together to detain two undocumented noncitizens in order to compel family members to pay money as a condition for their release. The initial complaint further alleges that a relative of the undocumented noncitizens was contacted by a male who said they would be held until $8,000 per person was paid in cash. The undocumented noncitizens were released after payment was made at a Home Depot parking lot. Lares-De La Rosa and Borboa-Ruiz were later arrested and found in possession of firearms.
A conviction for the crime of Conspiracy to Commit Hostage Taking carries a maximum penalty of life imprisonment, a $250,000 fine, or both. The remaining charges each carry a maximum penalty of 10 years, a $250,000 fine, or both.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
Homeland Security Investigations conducted the investigation in this case. Assistant U.S. Attorney Serra M. Tsethlikai, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-22-00974-TUC-JGZ
RELEASE NUMBER: 2022-061_Lares-De La Rosa# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Two Men Sentenced for COVID-19 Relief Fraud SchemeRead the Press Release
Two Florida men were sentenced Friday for leading a nationwide scheme to defraud the Paycheck Protection Program (PPP) for millions of dollars in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The U.S. District Court for the Northern District of Ohio sentenced Phillip J. Augustin, 53, of Coral Springs, to 78 months in prison, and James Stote, 56, of Hollywood, to 120 months in prison. Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud on Dec. 14, 2021.
According to court documents, Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began trying to illicitly obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. Augustin used his network of business contacts as a manager for professional football players to recruit loan applicants. The applications they submitted for these loans relied on fake payroll numbers, falsified IRS forms, and phony bank statements. Stote submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million. Among those loans, Augustin was responsible for at least 34 fraudulent loan applications worth at least $15 million.
In addition to his prison sentence, Stote was ordered to serve three years of supervised released and pay more than $10.1 million in restitution and more than $1.1 million in forfeiture. Augustin was ordered to serve three years of supervised released and pay more than $5.9 million in restitution and more than $272,000 in forfeiture.
In total, 25 people have been charged for their participation in this scheme in the Northern District of Ohio, Southern District of Florida, and Middle District of North Carolina.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio; Special Agent in Charge Bryant Jackson of the IRS-Criminal Investigation (IRS-CI) Cincinnati Field Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Interim Special Agent in Charge Philip E Frigm Jr. of the FBI’s Cleveland Field Office; and Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region made the announcement.
The IRS-CI, FBI, and SBA-OIG are investigating the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio prosecuted this case.
Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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 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 via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Two Huntington Men Sentenced to Prison for Roles in Multi-State Drug RingRead the Press Release
HUNTINGTON, W.Va. – Two Huntington men were sentenced to prison today for their roles in a multi-state drug trafficking organization (DTO) that distributed large amounts of methamphetamine, cocaine, fentanyl and other illegal drugs in the Huntington area.
Edward Shane Midkiff, 35, was sentenced to three years and one month for distribution of methamphetamine. Mark Anthony Chandler, 31, was sentenced to four years and four months for possession with intent to distribute cocaine. Each prison sentence will be followed by three years of supervised release.
According to court documents and statements made in court, Midkiff admitted that a confidential informant contacted him on January 12, 2021, to arrange a methamphetamine purchase. Midkiff directed the informant to the 500 block of 4th Avenue in Huntington to complete the transaction. At that location, Midkiff met with the informant in a vehicle and sold the informant methamphetamine.
Chandler admitted to receiving approximately one-half kilogram of cocaine from a co-defendant, William Raeshaun Byrd, in Huntington on June 30, 2021. Chandler was subsequently transporting the cocaine to another location when a deputy with the Cabell County Sheriff’s Office initiated a traffic stop of Chandler’s vehicle. Chandler fled from the stop and was arrested on a later date. During the stop, the deputy seized the cocaine as well a 9mm pistol that Chandler left in the vehicle. Chandler admitted that he intended to distribute the cocaine.
All 18 individuals indicted have pleaded guilty in the case, the result of a long-term investigation that disrupted the DTO and its distribution of fentanyl, methamphetamine, oxycodone, heroin, cocaine and cocaine base, also known as “crack.” Law enforcement seized more than 47 pounds of fentanyl, 6.5 pounds of methamphetamine, 4.5 pounds of cocaine, 2 pounds of heroin, 14 firearms and $335,000.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The Southern West Virginia TOC-West Task Force consists of the Cabell County Sheriff’s Office, the Hurricane Police Department and the Marshall University Police Department with support from the West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio also assisted in the investigation.
United States District Judge Robert C. Chambers imposed the sentences. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-109.
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Third Man Charged in Connection with Plot to Kill Haitian PresidentRead the Press Release
Miami, Florida – A Haitian citizen was extradited from Jamaica to the United States on Friday to face criminal charges in the Southern District of Florida related to his alleged involvement in the assassination of the former President of Haiti, Jovenel Moïse, on July 7, 2021.
Joseph Joel John, 51, made his initial federal court appearance today at 2:00 p.m., before United States Magistrate Judge Lauren Louis, who sits in Miami.
John is charged with conspiring to commit murder or kidnapping outside the United States and providing material support resulting in death, knowing or intending that such material support would be used to prepare for or carry out the conspiracy to kill or kidnap. This is the third individual in U.S. custody to be charged in the United States for his role in the assassination plot. The other men charged are Mario Antonio Palacios, 43, and Rodolphe Jaar, 49, who were both arrested earlier this year.
As alleged in the complaint, which was unsealed today, John and others – including approximately 20 Colombian citizens and a number of dual Haitian-American citizens – participated in a plot to kidnap or kill the Haitian President. As alleged, John was present when a co-conspirator (“Co-Conspirator #1”) secured the signature of a former Haitian judge on a written request for assistance to further the arrest and imprisonment of President Moïse, as well as purporting to provide Haitian immunity for such actions. According to the complaint, on June 28, 2021, Co-Conspirator #1, a dual Haitian-American citizen, traveled from Haiti to the United States in furtherance of the conspiracy and provided other individuals with the document, and flew from Florida back to Haiti on July 1, 2021, to participate in the operation against the president.
As alleged in the complaint, while the plot initially focused on conducting a kidnapping of the Haitian President as part of a purported arrest operation, it ultimately resulted in a plot to kill the President. The complaint alleges that on July 7, 2021, various co-conspirators entered President Moïse’s residence in Haiti with the intent and purpose of killing him, and in fact the President was killed.
As alleged in the complaint, John helped to obtain vehicles and attempted to obtain firearms to support the operation against the president. It is also alleged that John attended a meeting with certain co-conspirators on or about July 6, 2021, after which many of the co-conspirators embarked on the mission to kill President Moïse.
Co-conspirator #1 was subsequently arrested by Haitian authorities and remains in custody in Haiti. John was arrested in Jamaica pursuant to the United States’ provisional arrest request to the Government of Jamaica for John’s extradition. On April 28, the Minister of Justice of Jamaica signed the order granting the extradition request, resulting in John’s arrival in Miami last week. John is currently in the custody of United States law enforcement.
If convicted of the charges in the complaint, John faces a maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Juan Antonio Gonzalez for the Southern District of Florida, Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
The FBI is investigating the case with other law enforcement partners, with valuable assistance provided by Homeland Security Investigations.
Assistant U.S. Attorneys Andrea Goldbarg and Walter Norkin for the Southern District of Florida are prosecuting the case, with assistance from National Security Division Trial Attorneys Frank Russo, Jessica Fender, and Emma Ellenrieder. The Justice Department’s Office of International Affairs provided valuable assistance.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Third Man Charged in Connection with Plot to Kill Haitian PresidentRead the Press Release
A Haitian citizen was extradited from Jamaica to the United States on Friday to face criminal charges in the Southern District of Florida related to his alleged involvement in the assassination of the former President of Haiti, Jovenel Moïse, on July 7, 2021.
Joseph Joel John, 51, made his initial court appearance this afternoon before U.S. Magistrate Judge Lauren Louis, who sits in Miami.
John is charged with conspiring to commit murder or kidnapping outside the United States and providing material support resulting in death, knowing or intending that such material support would be used to prepare for or carry out the conspiracy to kill or kidnap. John is the third individual to be charged and arrested in the United States for his role in the assassination plot. The other men charged are Mario Antonio Palacios, 43, and Rodolphe Jaar, 49, who were both arrested earlier this year.
As alleged in the complaint, which was unsealed today, John and others – including approximately 20 Colombian citizens and a number of dual Haitian-American citizens – participated in a plot to kidnap or kill the Haitian President. As alleged, John was present when a co-conspirator (Co-Conspirator #1) secured the signature of a former Haitian judge on a written request for assistance to further the arrest and imprisonment of President Moïse, as well as purporting to provide Haitian immunity for such actions. According to the complaint, on June 28, 2021, Co-Conspirator #1, a dual Haitian-American citizen, traveled from Haiti to the United States in furtherance of the conspiracy and provided other individuals with the document, and flew from Florida back to Haiti on July 1, 2021, to participate in the operation against the president.
As alleged in the complaint, while the plot initially focused on conducting a kidnapping of the Haitian President as part of a purported arrest operation, it ultimately resulted in a plot to kill the President. The complaint alleges that on July 7, 2021, various co-conspirators entered President Moïse’s residence in Haiti with the intent and purpose of killing him, and in fact the President was killed.
As alleged in the complaint, John helped to obtain vehicles and attempted to obtain firearms to support the operation against the president. It is also alleged that John attended a meeting with certain co-conspirators on or about July 6, 2021, after which many of the co-conspirators embarked on the mission to kill President Moïse.
Co-conspirator #1 was subsequently arrested by Haitian authorities and remains in custody in Haiti. John was arrested in Jamaica pursuant to the United States’ provisional arrest request to the Government of Jamaica for John’s extradition. On April 28, the Minister of Justice of Jamaica signed the order granting the extradition request, resulting in John’s arrival in Miami last week. John is currently in the custody of U.S. law enforcement.
If convicted of the charges in the complaint, John faces a maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.
The FBI is investigating the case with other law enforcement partners, with valuable assistance provided by HSI.
Assistant U.S. Attorneys Andrea Goldbarg and Walter Norkin for the Southern District of Florida are prosecuting the case, with assistance from National Security Division Trial Attorneys Frank Russo, Jessica Fender and Emma Ellenrieder. The Justice Department’s Office of International Affairs provided valuable assistance.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Third Defendant in ‘Grandparent Scam’ Network Pleads Guilty to RICO ConspiracyRead the Press Release
A third member of a network that operated and facilitated a large-scale “grandparent scam” pleaded guilty to racketeering conspiracy.
According to charges announced in August 2021, Anajah Gifford, 23, of North Hollywood, California, was a member of a network of individuals who, through extortion and fraud, induced elderly Americans across the United States to pay thousands to tens of thousands of dollars each to purportedly help their grandchild or other close family relative. Members of the network contacted elderly Americans by telephone and impersonated a grandchild, other close relative or friend of the victim. They falsely convinced the victims that their relatives were in legal trouble and needed money to pay for bail, for medical expenses for car accident victims, or to prevent additional charges from being filed. The defendants and their co-conspirators then received money from victims via various means (including in-person pickup, mail and wire transfer) and laundered the proceeds, including through cryptocurrency.
“The Department of Justice’s Consumer Protection Branch will pursue and prosecute individuals who target older Americans by preying on their concern for loved ones,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “We are grateful to our partners at the U.S. Attorney’s Office for the Southern District of California and the FBI for their work in advancing the department’s efforts to combat organized elder fraud, and for the assistance the San Diego County District Attorney’s Office provided with this investigation.”
“This was a despicable scam that packed an emotional punch for its elderly victims,” said U.S. Attorney Randy Grossman of the Southern District of California. “It’s heartless to tell grandparents they must pay tens of thousands of dollars to rescue their beloved grandchildren from terrible trouble. These are serious crimes and there should be serious penalties.” Grossman thanked the prosecution team, state and federal law enforcement agency partners, and the Department of Justice’s Consumer Protection Branch for their excellent work on this case.
“These guilty pleas are a prime example of the collaboration and coordination among our local, state, and federal partners who make up San Diego’s Elder Justice Task Force, and the great work being done to protect our elderly population,” said Special Agent in Charge Suzanne Turner of the FBI San Diego Field Office. “The task force is committed to aggressively pursuing criminal organizations who prey on our senior citizens, and we will utilize all available investigative means to bring them to justice. I would also like to thank the FBI’s Los Angeles Field Office for their continued support in this case.”
Gifford pleaded guilty to conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act. She is scheduled to be sentenced on August 5. She faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Three co-defendants remain pending for trial. Two additional defendants have been charged but remain at large.
The case was investigated by the FBI’s San Diego Field Office, North County Resident Agency, with critical assistance from investigators of the San Diego County District Attorney’s Office.
Trial Attorneys Lauren M. Elfner and Wei Xiang with the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Oleksandra Johnson of the Southern District of California are prosecuting the case.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
Texas man sentenced for sending obscene material to a minorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marcus Moreno, of LaVilla, Texas, was sentenced today to 84 months of incarceration for sending inappropriate pictures to a minor, United States Attorney William Ihlenfeld announced.
Moreno, 28, pleaded guilty in September 2021 to one count of “Transfer of Obscenity to Minor.” Moreno began communicating with a minor located in Berkeley County, West Virginia, via social media applications such as Snapchat, KIK, WhatsApp, and the minor’s school email accounts. The victim’s parents turned over her phone to investigators. Forensics revealed thousands of text messages, chats, and video communications between the victim and Moreno, dating from October 2018 to January 2019, when the victim was 15 years old. The investigation further revealed thousands of images of child pornography of the victim and obscene pornographic images of Moreno.
In May 2019, during execution of a search warrant Moreno gave a voluntary statement to agents saying he met the victim online in a chat room when she had just turned 14. Three weeks after that first conversation, they began online dating. Though never meeting in person, he told investigators he planned to marry the victim when she turned 18. He admitted to sending obscene images of himself to the victim. During the search of his home, the FBI found thousands of other graphic files and video files of the victim on several flash drives and devices.
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 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.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The FBI and the West Virginia State Police investigated.
U.S. District Judge Gina M. Groh presided.
Texas and Maryland Women Arrested for COVID-19 Relief FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Brandie S. Williams, 41, of Dallas, Texas, and Brittany L. Herbert, 35, of Brandywine, Maryland, were arrested and charged by criminal complaint with one count of conspiracy to commit bank fraud and one count of bank fraud. The charges carry a maximum penalty of 30 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, and Cory E. Jacobs and Jennifer L. Bilinkas of the Criminal Division’s Fraud, who are handling the case, stated according to the complaint, between May 2020 and June 2021, Williams and Herbert conspired with Adam Arena and Amanda Gloria, and others, to fraudulently obtain and misuse multiple COVID-19 Paycheck Protection Program (PPP) emergency relief loans, including:
• Williams, Herbert, and Gloria worked together to fraudulently obtain a $290,000 loan for William’s business, Beyond the Next Level, Inc. After receiving the PPP loan, Williams did not use the funds for legitimate business-related purposes. For instance, she transferred $10,000 into bank accounts of Amanda Gloria’s daughters, $11,953.10 to a business account controlled by Amanda Gloria, and $21,953.10 to an account controlled by co-defendant Herbert.
• Williams, Herbert, and Gloria and Arena worked together to fraudulently obtain a loan for approximately $954,000 for Arena's business, ADA Auto Group. After the PPP loan proceeds were transferred into an account controlled by Arena, he conducted a series of financial transactions, including for his own personal benefit, for Gloria's benefit, and for the benefit of others.
• Williams, Herbert, and Gloria worked together to fraudulently obtain at least 42 additional loans for at least 31 entities owned by other individuals, requesting a total of approximately $10,200,000. This resulted in Herbert and Gloria personally receiving at least approximately $383,000. The defendants submitted false and fraudulent documents to support the loan applications, including falsified payroll expenses, fraudulent bank records, and fabricated federal tax filings.
Adam Arena and Amanda Gloria were previously convicted and are awaiting sentencing.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso; the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Ketty Larco-Ward; and the Social Security Administration Office of Inspector General, under the direction of Special Agent-in-Charge Sharon B. MacDermott, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Springfield, Illinois, Man Sentenced to 96 months in Prison for Attempted Enticement of a Minor and Use of Interstate Facilities to Attempt to Transmit Information about a MinorRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Matthew Wetzel, 37, of the 800 block of East Edward Street, was sentenced on May 5, 2022, to 96 months in prison for attempted enticement of a minor and use of interstate facilities to attempt to transmit information about a minor.
At the sentencing hearing before United States District Judge Sue Myerscough, the government presented evidence that on or about August 27 and August 28, 2020, Wetzel knowingly attempted to persuade, induce, and entice an individual whom he believed had not attained the age of 18 years to engage in sexual activity. On those same dates, Wetzel also knowingly used a facility and means of interstate commerce, the internet and a cellular telephone, with the intent to transmit the name and address of another individual who had not attained the age of 16, and he did so with the intent to entice, encourage, offer, and solicit that person to engage in sexual activity.
Wetzel was indicted in September 2020 and pleaded guilty in November 2021. He was taken into the custody of the United States Marshals after the sentencing hearing.
The prosecution was the result of an investigation by the Federal Bureau of Investigation, Springfield Office, with the assistance of the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police. Assistant U.S. Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Southern California Center for Autistic Children Pays $650,000 to Resolve Allegations of Fraudulent BillingRead the Press Release
Assistant U. S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – May 9, 2022
SAN DIEGO – Prism Behavioral Solutions has paid $650,000 to resolve allegations that it billed the state’s Medicaid Program, known as Medi-Cal, for services to autistic children without actually providing care to the children, according to a settlement agreement signed by Prism Behavioral Solutions, the United States, and the State of California.
Prism Behavioral Solutions provides treatment to children diagnosed with autism and other related disorders through therapy called Applied Behavioral Analysis. Prism Behavioral Solutions maintains a corporate address in Woodland Hills, California, and provides medical services to patients in Southern California. The United States and the State of California alleged that Prism Behavioral Solutions violated the federal False Claims Act and the California False Claims Act by knowingly submitting false claims to Medi-Cal for medical services that Prism Behavioral Solutions did not perform from September 2016 through December 2019. According to a whistleblower’s complaint, this included Prism Behavioral Solutions billing Medi-Cal for cancelled appointments.
“Billing government health care programs for services not rendered negatively impacts the entire health care system,” said U.S. Attorney Randy S. Grossman. “This settlement shows our continuing commitment to protect the integrity of government health care programs and other taxpayer-funded programs. We commend the whistleblower in this case for coming forward, and the team of federal and state agency partners and Assistant U.S. Attorneys for their work on this case.”
This settlement resolves the allegations in a former Prism Behavioral Solutions employee’s whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in a recovery. The civil lawsuit was filed in the Southern District of California and is captioned United States and the State of California, ex rel. Mason v. Prism Autism Foundation, 19-CV-0043-W (BLM). As part of this settlement, the whistleblower will receive $130,000.
“Prism had the important responsibility of supporting and caring for children and young adults with autism spectrum disorders,” said Attorney General Rob Bonta. “Instead of fulfilling its obligation to the families under its care, Prism is alleged to have filed false claims and misused state taxpayer money. These allegations are shameful and these families deserved respect and dignity, not to be used to cheat state resources. I am grateful to the U.S. Attorney’s Office for their involvement in this investigation, which helped bring justice to these families and California taxpayers. My office will continue to hold accountable bad actors who hurt the health and well-being of Californians.”
The resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
This matter was handled by Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California; the Office of Inspector General for the U.S. Department of Health and Human Services; and the California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
South Florida Political Campaign Consultant Charged with Defrauding Covid-19 Relief ProgramRead the Press Release
Miami, Florida – Federal prosecutors have charged 42-year-old Royal Palm Beach, Florida resident Omar Smith with lying on a coronavirus relief loan application and fraudulently obtaining more than two hundred thousand dollars intended to help small businesses financially survive the Covid-19 pandemic.
According to the information filed today in federal district court in Fort Lauderdale, in June 2020, Smith applied for a $212,500 forgivable, federally-guaranteed Paycheck Protection Program (PPP) loan on behalf of A Star For I, Inc., a Florida company that he owned. It is alleged that to justify the requested loan amount, Smith claimed in the on-line loan application, and through supporting fraudulent payroll tax forms, that his company employed 30 people and spent an average of $85,000 each month on payroll. In fact, A Star For I, Inc had zero employees and no payroll expenses. A bank in Utah approved A Star For I, Inc.’s PPP loan application based on the lies and wired $212,500 to the company’s bank account in Florida, says the information.
Once the money hit the bank account in July 2020, Smith spent the next few months creating a paper trail to make it appear as if A Star For I, Inc. in fact had employees and was spending the PPP money on legitimate, approved expenses, it is alleged. According to the information, Smith issued checks from the company bank account made out to others who did little or no work for A Star For I, Inc.
The information charges Smith with conspiring to commit bank fraud and wire fraud. If convicted, he faces up to 30 years in prison and a fine of up to $1 million.
Smith has worked on political campaigns in South Florida.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the charges.
FBI Miami investigated this case. Assistant U.S. Attorney Jeffrey Kaplan is prosecuting it.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to millions of Americans who suffered financially from the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses through the Paycheck Protection Program (PPP).
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An information is merely an allegation and a defendant are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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 22-cr-80074.
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South Carolina Man Charged in Connection with Transporting Minor to Engage in Criminal Sexual ActivityRead the Press Release
TUCSON, Ariz. – Last week, a federal grand jury in Tucson returned a two-count indictment against Timothy Mikell Schultheis, aka Jackson Oden, 24, of South Carolina, charging Transportation of a Minor with Intent to Engage in Criminal Sexual Activity and Travel with Intent to Engage in Illicit Sexual Conduct.
The indictment alleges that on or about March 20, 2022, Schultheis knowingly transported Jane Doe, a 12-year-old minor, in interstate commerce by taking her from the state of Arizona to the state of South Carolina, with intent to engage in criminal sexual activity. The indictment further alleges that Schultheis traveled in interstate commerce from Arizona to South Carolina for the purpose of engaging in illicit sexual conduct with the minor.
According to the complaint filed last month, the 12-year-old was reported missing after she left her home on the morning of March 20, 2022 and did not return. The minor’s Facebook account revealed communications with 24-year-old Schultheis, including his plan to travel from South Carolina and pick up the child in Safford, and his intention to engage in sexual conduct with her. When Schultheis was arrested at his apartment in South Carolina on March 30, 2022, Jane Doe was found in the apartment.
A conviction for the crime of Transportation of a Minor with Intent to Engage in Criminal Sexual Activity carries a mandatory minimum penalty of 10 years imprisonment and a maximum penalty of life imprisonment. A conviction for the crime of Travel with Intent to Engage in Illicit Sexual Activity carries a maximum penalty of 30 years imprisonment.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.
The FBI in Sierra Vista and the Graham County Sheriff’s Department conducted the investigation in this case. Assistant U.S. Attorneys Carin Duryee and Raquel Arellano, District of Arizona, Tucson, are handling the prosecution.
CASE NUMBER: CR-22-00973-TUC-RM
RELEASE NUMBER: 2022-062_Schultheis# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Sacramento Man Pleads Guilty to COVID-19 Relief Fraud, Embezzlement, and Unemployment FraudRead the Press Release
SACRAMENTO, Calif. — Aaron Ashcraft, 42, of Sacramento, pleaded guilty today to one count of wire fraud and one count of bank fraud in a scheme to defraud the Paycheck Protection Program of over $1.2 million in COVID-19 relief loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, U.S. Attorney Phillip A. Talbert announced.
The CARES Act was enacted on March 29, 2020, to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses, through the Paycheck Protection Program.
According to court documents, Ashcraft carried out the fraud scheme between May 2020 and April 2021. As part of his scheme, Ashcraft submitted to SBA-approved lenders at least seven fraudulent Paycheck Protection Program loan applications in the names of purported businesses. In the applications, Ashcraft falsely represented that each of the purported businesses had employees and monthly payroll expenses. To support the Paycheck Protection Program loan applications, Ashcraft submitted fabricated records including Internal Revenue Service forms, checking account statements, and payroll summaries. In total, Ashcraft requested over $1.2 million in Paycheck Protection Program loans and obtained approximately $920,000.
In addition to Paycheck Protection Program fraud, Ashcraft admitted that, from September 2017 through June 2020, he embezzled at least approximately $780,000 from his former employer—a street-sweeping company in Sacramento. Ashcraft held multiple positions at the company, including chief financial officer. As chief financial officer, Ashcraft had access to the company’s business credit card accounts. Without authorization, Ashcraft used those accounts to pay for personal expenses.
Finally, Ashcraft admitted to defrauding the Maine Department of Labor. According to his plea agreement, in July 2020, Ashcraft applied for Pandemic Unemployment Assistance, falsely claiming that he lived in Maine and was unable to work due to COVID-19. To support his application, Ashcraft submitted falsified IRS forms in which he represented that, in 2019, he operated a business in Maine that received over $160,000 in income and made a net profit of over $66,000. In total, Ashcraft fraudulently obtained unemployment compensation of over $58,000.
As part of his plea agreement, Ashcraft agreed to pay restitution as follows:
- A total of $919,598 to three SBA-approved lenders;
- $45,979 to the SBA;
- $779,832 to his former employer; and
- $58,050 to the Maine Department of Labor.
This case is the product of an investigation by the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation Office of Inspector General, and the Small Business Administration Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
U.S. District Judge Kimberly J. Mueller is scheduled to sentence Ashcraft on Aug. 22, 2022. He faces up to 20 years in prison and a $250,000 fine for wire fraud and up to 30 years in prison and a $1 million fine for bank fraud. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rutland Man Charged with Convenience Store RobberiesRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Daniel Webster, 37, of Rutland, Vermont was arraigned by waiver today on a Superseding Indictment that alleges Webster committed two robberies that interfered with interstate commerce. The first robbery occurred on July 24, 2021, at the Mobil gas station located on South Main Street in Rutland. The second occurred on July 28, 2021, at the Mac’s convenience store in Fair Haven.
According to court records, Webster is accused of entering the Mobil gas station on the evening of July 24, 2021, approaching the cash register with a package of crackers, spraying a liquid at the clerk, and stealing cash from the register. A knife was recovered from the parking lot along the path of flight used by the robber. Webster is also accused of entering the Mac’s convenience store on the afternoon of July 28, 2021, brandishing a knife as he walked around the counter directly to the store’s safe, removing a money bag from the safe, and removing additional cash from the register drawer. Webster previously worked at the Mac’s convenience store and was familiar with the location of the safe and the operation of the store’s registers.
At today’s arraignment, not-guilty pleas on both robbery charges were entered on Webster’s behalf. Webster is also accused in a separate federal case of distributing cocaine base on two occasions in March of 2021, and previously entered not-guilty pleas to those charges. Webster is currently detained pending trial.
The United States Attorney’s Office emphasizes that an indictment contains allegations only and that Webster remains presumed innocent until and unless he is convicted of a crime. Webster faces a maximum sentence of 20 years of imprisonment on both robbery charges.
United States Attorney Nikolas P. Kerest commended the investigatory efforts of the Rutland City Police Department, the Vermont State Police, the Vermont Forensic Laboratory, and the Federal Bureau of Investigation.
The prosecutor is Assistant United States Attorney Jonathan Ophardt. Webster is represented by Assistant Federal Public Defender Sara Puls.
Phoenix Man Sentenced to 10 Years for Series of Armed RobberiesRead the Press Release
PHOENIX, Ariz. – Jonathan Bastida-Delgado, 28, of Phoenix, Arizona, was sentenced last week by U.S. District Judge Dominic W. Lanza to 120 months in prison, followed by three years of supervised release. Bastida-Delgado previously pleaded guilty to two counts of Hobbs Act Robbery and one count of Using, Carrying, and Brandishing a Firearm during and in relation to a Crime of Violence.
In March 2020, authorities became aware of a series of armed robberies targeting businesses in Phoenix, Glendale and Buckeye, Arizona from late February through mid-March 2020. According to witnesses, the suspect in each robbery matched the same general physical description, wore a combination of the same clothing, and made similar types of threats to the victims. In each robbery, the suspect also used the same black and silver semiautomatic handgun. Working together, the FBI and local law enforcement identified and located Bastida-Delgado and took him into custody without incident on March 17, 2020.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The FBI Desert Hawk Violent Crime Task Force conducted the investigation in this case. Assistant U.S. Attorney Brian E. Kasprzyk, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-00589-PHX-DWL
RELEASE NUMBER: 2022- 063_Bastida-Delgado# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Passaic County Man Sentenced to 21 Months in Prison for Role in Stealing Employer’s Oral Care Formulas and Sending Them OverseasRead the Press Release
NEWARK, N.J. – A former research technician and scientist for a worldwide consumer products company that researched, developed, designed, manufactured, marketed, and sold oral care consumer products was sentenced today to 21 months in prison for his role in a wire fraud conspiracy, U.S. Attorney Philip R. Sellinger announced.
Muamer Reci, 58, of Haskell, New Jersey, previously pleaded guilty before U.S. District Judge Claire C. Cecchi to an information charging him with one count of conspiracy to commit wire fraud. Judge Cecchi imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
In August 2012, two individuals established a consumer hygiene and cleaning products company, Reci & Sons, which, in November 2015, established a subsidiary, Reci Enterprises, in Macedonia. Reci never disclosed the existence of Reci & Sons or Reci Enterprises to his employer.
A document dated July 31, 2016, and titled “Project Eurodent” was recovered from Reci’s work email account. The document (the Eurodent Business Plan) described a plan for Reci Enterprises to develop, manufacture, and sell a toothpaste named Eurodent. The Eurodent Business Plan listed as one of its objectives to “Launch Reci Enterprises research labs, and manufacturing complex to the public by fourth quarter of Year 2017.” The Eurodent Business Plan valued the business at roughly $2 million.
As the anticipated construction date for the manufacturing facility approached, Reci sent several emails to an individual at Reci & Sons attaching his employer’s proprietary toothpaste formulas for existing products and an unreleased toothpaste product, as well as proprietary laboratory procedures for the employer’s products. For example, on Aug. 9, 2017, Reci sent an email to someone stating: “[p]rint this [sic] formulas and file them.” Attached to the email were proprietary toothpaste formulas belonging to the employer, including formulas for a dry mouth toothpaste that the employer had not yet launched, and a children’s toothpaste marketed by the employer. The email also attached the formula for Reci Enterprises’ Eurodent toothpaste, which contained proprietary signature features of the employer’s existing product.
In addition to the prison term, Judge Cecchi sentenced Reci to three years of supervised release and ordered him to pay $188,384 in restitution.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
PH.D. Chemist Sentenced to 168 Months for Conspiracy to Steal Traded Secrets, Economic Espionage, Theft of Trade Secrets, and Wire FraudRead the Press Release
GREENEVILLE, Tenn. – On May 9, 2022, Dr. Xiaorong You, aka Shannon You, 59, of Lansing, Michigan was sentenced to serve 168 months in prison by the Honorable J. Ronnie Greer, U.S. District Judge in the United States District Court for the Eastern District of Tennessee. Following her imprisonment, the defendant was also ordered to serve three years of supervised release and pay a $200,000 fine.
In April 2021, following a thirteen-day trial, a federal jury convicted You of conspiracy to commit trade secret theft in violation of 18 U.S.C. § 1832(a)(5), conspiracy to commit economic espionage in violation of 18 U.S.C. § 1831(a)(5), possession of stolen trade secrets in violation of 18 U.S.C. § 1832(a)(3), economic espionage 18 U.S.C. § 1831(a)(3), and wire fraud in violation of 18 U.S.C. § 1343.
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, Georgia, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies, including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams, and Eastman Chemical Company, and cost nearly $120,000,000 to develop.
You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group received millions of dollars in Chinese government grants to support the new company. Documents and other evidence presented at trial, showed You’s intent to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, and the Chinese city of Weihai, as well as her intent to benefit the Chinese Communist Party.
Until recently, BPA was used universally to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. As witnesses from the chemical and coating companies testified at trial, developing these BPA-free alternatives was a very complex, expensive and time-consuming process.
Evidence presented at trial showed that from December 2012 through Aug. 31, 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis, and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
“As the evidence at trial showed, the defendant stole valuable trade secrets and intended to use them to benefit not only a foreign company, but also the government of China,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this offense, as well as the Department of Justice’s commitment to protect our nation’s security by investigating and prosecuting those who steal U.S. companies’ intellectual property.”
“When companies invest huge amounts of time and money to develop world-class technologies, only to have those technologies stolen, the results are devastating,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Here, the defendant intended not only to enrich herself and her China-based partners, but also the government of China. Crimes like the defendant’s threaten both victim companies and the economic security of the nation as a whole. This case should serve as a warning to those entrusted with valuable trade secrets: if you break the law, you will be punished.”
“Stealing trade secrets of U.S. companies for the benefit of the Chinese government will be vigorously prosecuted in the Eastern District of Tennessee, and today’s 14-year sentence reflects the seriousness of this defendant’s crimes,” said U.S. Attorney for the Eastern District of Tennessee Francis M. Hamilton III. “The corporate vigilance and subsequent cooperation with federal law enforcement that brought this defendant to justice is to be commended; our national security depends on it.”
“Stealing technology isn’t just a crime against a company,” said Acting Assistant Director Bradley S. Benavides of the FBI’s Counterintelligence Division. “It’s a crime against American workers whose jobs and livelihoods are impacted. Today’s sentencing is a reminder that the FBI and its partners will hold accountable those who break our laws and threaten our economic and national security.”
“Ingenuity, innovation, and perseverance are the time-honored trademarks of American business and entrepreneurship. In the current global state of commerce, corporations are forced to place an increased emphasis on the protection of trade secrets and intellectual property. The FBI will not sit by while any nation-state attempts to steal or incentivizes the theft of trade secrets from successful corporations. The FBI is committed to working with industry to hold those accountable who would attempt to steal technology or trade secrets at the cost of American businesses, their employees, and their livelihood,” said Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation.
Assistant Attorney General Matthew G. Olsen of the National Security Division; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; and U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee made the announcement.
The FBI’s Knoxville Field Office and Department of Homeland Security’s Homeland Security Investigation (HSI) investigated the case.
Former Assistant U.S. Attorney T.J. Harker of the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the U.S. Department of Justice’s Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the U.S. Department of Justice’s National Security Division’s Counterintelligence and Export Control Section prosecuted the case.
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Orange County Man Sentenced to 2½ Years in Federal Prison for Fraudulently Obtaining $1.5 Million in COVID-Relief LoansRead the Press Release
SANTA ANA, California – An Orange County man was sentenced today to 30 months in federal prison for fraudulently obtaining more than $1.5 million in Paycheck Protection Program (PPP) COVID-relief loans that he used for personal expenses and stock market trading.
William Nicoloff Jr., 51, of Mission Viejo, was sentenced by United States District Judge James V. Selna, who also ordered him to pay $1,554,063 in restitution. At today’s hearing, Judge Selna said Nicoloff’s conduct was “extremely troubling” because it “pervert[ed] a public program designed to help small businesses during a time of severe economic hardship.”
Nicoloff pleaded guilty in April 2021 to one count of bank fraud and one count of conducting an unlawful monetary transaction.
From April 2020 to June 2020, Nicoloff obtained six PPP loans by defrauding two banks. To obtain the loans, he submitted to the banks false documents on behalf of four companies he owned and controlled – including Stonecreek Capital Partners and David Capital LLC – as well as himself and another individual. The fraudulent documents included falsified bank records, phony lease agreements, altered incorporation records, fake IRS records and bogus employee information.
On the loan applications, Nicoloff falsely certified the number of employees and average monthly payrolls of the applicant companies and falsely claimed Nicoloff did not own other businesses.
Nicoloff also falsely represented that the PPP funds would be used to pay employees and other permissible business expenses, when, in fact, he intended to use and later used the PPP loan proceeds to fund personal living expenses and securities trading activity entirely unrelated to the businesses for which the PPP loans were obtained.
In total, Nicoloff fraudulently obtained $1,554,054 in PPP loans.
Nicoloff transferred $405,880 in proceeds from the David Capital loan to a separate brokerage account and engaged in securities trading as well as using some of the loan to pay off personal expenses. Nicoloff has agreed to forfeit $1,709,151, which includes the $1,554,063 he obtained from the PPP loans as well as $155,097 in proceeds he gained because of securities trading from the illicit loans. These funds were previously recovered by the government from seizures of Nicoloff’s accounts.
The Federal Reserve Board – Office of Inspector General; the U.S. Treasury Inspector General for Tax Administration; IRS Criminal Investigation; and the Small Business Administration – Office of Inspector General investigated this matter.
Assistant United States Attorney Scott Paetty of the Major Frauds Section prosecuted this 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 Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Ohio Man Sentenced to Prison for Federal Gun and Drug CrimesRead the Press Release
HUNTINGTON, W.Va. – An Ohio man was sentenced today to two and one-half years in prison, to be followed by three years of supervised release, for attempted possession with intent to distribute suboxone and conspiracy to use a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, Jacob Benjamin Loper, 21, was an inmate at the Western Regional Jail on June 14, 2021, when he used recorded jail phone lines to speak with an individual outside of the jail. Loper instructed the individual to go to a residence at Marcum Terrace in Huntington to recover $1,500 worth of suboxone that belonged to Loper and was believed to be in the possession of another person. Loper consented to the individual carrying a firearm to retrieve the suboxone. Loper’s associate was unable to retrieve the suboxone from the residence. As Loper’s associate and another individual at the scene were driving away from the residence, a shootout occurred between them and an occupant of the residence. Subsequent to the shooting, Loper communicated via phone with the person believed to be in possession of the suboxone and threatened that if he did not receive his drugs or get paid for them, that shootings would keep happening.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Huntington Police Department, and the West Virginia Division of Corrections and Rehabilitation Investigations Unit.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-215.
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Montreal Man Sentenced to 30 Months’ Imprisonment for Leading A Sweepstakes and Lottery Fraud Targeting the ElderlyRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 4, 2022, Itcace Abramovici, age 72, of Montreal, Quebec, was sentenced to 30 months’ imprisonment by U.S. District Court Judge Christopher C. Conner following his conviction for conspiracy to commit mail and wire fraud. Judge Conner also ordered Abramovici to make restitution to victims in the amount of $461,886.49, and to serve one year of supervised release following his release from prison.
According to United States Attorney John C. Gurganus, Abramovici played a leadership role in a Montreal-based telemarketing and money laundering organization that targeted elderly victims in the United States, including those living in central Pennsylvania. Abramovici and his co-conspirators informed prospective victims that they had won a substantial amount of money in a lottery or sweepstakes and then directed those victims to send money in order to obtain their winnings. The victims’ payments were falsely characterized as taxes, customs fees, processing fees, and legal and insurance fees. None of the victims received any money, and many of their losses were substantial, with more than $460,000 in victim losses being attributed to Abramovici’s role in the fraud, and with losses to victims of the broader fraud at more than $1.3 million. As part of his guilty plea, Abramovici admitted to playing a leadership role in the scheme. The investigation that led to Abramovici’s prosecution identified at least 17 individual victims.
The case was investigated by the United States Postal Inspection Service – Harrisburg Office. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
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Merrill Man Sentenced to 137 Months for Methamphetamine TraffickingRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that TJ Myers, 33, Merrill, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 137 months in prison for conspiracy to distribute 50 grams or more of methamphetamine. Myers pleaded guilty to this charge on January 26, 2022.
On June 8, 2020, an officer from the Merrill Police Department attempted a traffic stop of a Jeep Patriot driven by Myers. Myers stopped the vehicle and fled on foot. Officers searched the Jeep and found approximately 400 grams of methamphetamine inside the center console. The government’s investigation revealed that Myers had received the methamphetamine from his co-defendant, Levi Bagne, who lived in Arizona.
At the sentencing hearing, Judge Peterson described Myers’ criminal history as “unrelenting” and noted his multiple felony convictions for methamphetamine trafficking. Judge Peterson also concluded that a substantial sentence was warranted because Myers played a significant role in a large-scale drug trafficking organization. Judge Peterson also noted it was an aggravating factor that Myers had been released from prison for less than two months at the time of his arrest in Merrill.
Bagne has signed a plea agreement and has a plea hearing scheduled before Judge Peterson tomorrow.
The charge against Myers is the result of a joint investigation by the Central Wisconsin Narcotics Task Force, Drug Enforcement Administration, Lake Winnebago Area Metropolitan Unit, and Merrill Police Department. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. Assistant U.S. Attorney Aaron Wegner is handling the prosecution.
Members of Darrin Southall Drug Organization Sentenced in Federal CourtRead the Press Release
MOBILE, AL –Three members of Darrin Southall’s drug trafficking organization have been sentenced in federal court. Two of them will serve 10 years in federal prison and one of them will serve 5 years in federal prison.
According to court documents, Southall ran a continuing criminal enterprise involving the distribution of massive amounts of controlled substances in the Mobile, Alabama, area, and the laundering of drug proceeds through bank accounts and nominees. Sentenced on April 28 were Eric Alonzo Windham, also known as “Dumbo,” 49, of Prichard, Alabama; Terrance Santez Malik Watkins, also known as “YSD Capp,” 25, of Mobile; and Willie Demarcus Oliver, also known as “Ill Will,” 31 of Mobile. Watkins and Oliver entered guilty pleas to conspiracy to possess with intent to distribute more than five kilograms of cocaine during September of 2021, and Windham entered a guilty plea to the same charge in October of 2021. Court documents identified Oliver as a street dealer, implicated when he sold cocaine to an undercover informant. Watkins was identified as a large-scale dealer who supplied Oliver and others with cocaine for distribution and who acted as an enforcer for Southall. Windham was identified as a courier working for Southall, who drove drug money to Texas to pay for loads of cocaine and returned to Mobile with cocaine. According to evidence adduced at Windham’s sentencing hearing, his residence on Myrtlewood Boulevard in Prichard facilitated the drug distribution activity as a stash house and a location where kilograms from the cocaine loads were distributed to others.United States District Court Judge Kristi DuBose imposed a sentence of 10 years in Watkins and Windham’s cases. The judge imposed a sentence of 5 years in Oliver’s case. The judge further ordered that each defendant would also serve five years on supervised release following their imprisonment. As conditions of their supervision, each defendant will also undergo testing and treatment for drug and/or alcohol abuse, and they will be subject to a search of their persons and premises upon reasonable suspicion. No fine was imposed but the judge ordered that each defendant pay $100 in special assessments. Each defendant’s interest in a long list of seized property was ordered forfeited to the United States.
The case was investigated by the Mobile Police Department, the Mobile County Sheriff’s Office, the Department of Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Baldwin County Sheriff’s Office, the Alabama Law Enforcement Agency, the Saraland Police Department, the St. Tammany Parish, Louisiana, Sheriff’s Office, and the Drug Enforcement Administration. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Massachusetts Man Sentenced to 7 Years for Federal Drug and Firearms ChargesRead the Press Release
BANGOR, Maine: A Dorchester, Massachusetts man was sentenced today in federal court for conspiring to distribute and possess with the intent to distribute 40 grams or more of fentanyl, being a felon in possession of a firearm, and aiding and abetting the straw purchase of firearms, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Sergio Figueroa aka “Kash,” 26, to seven years in prison and four years of supervised release. Figueroa pleaded guilty on October 19, 2021.
According to court records, in April 2021, Figueroa conspired to distribute and possess with intent to distribute fentanyl. As part of the conspiracy, he used a residence in Bangor to store and distribute drugs. On April 21, 2021, agents with the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency executed a search warrant at the Bangor residence. Upon searching Figueroa’s bedroom, agents found 80 grams of fentanyl and $1,680 in cash along with a loaded .380 caliber pistol. Figueroa was prohibited from possessing firearms and ammunition because of a prior Maine felony conviction.
Earlier, in a separate January 2020 incident, court records show that Figueroa arranged for a straw purchaser to buy two pistols for him from a federal firearm licensee in Androscoggin County. While purchasing the firearms, the straw purchaser responded “Yes” to a question on a Bureau of Alcohol, Tobacco, Firearms and Explosives form that asked whether the purchaser was the actual buyer of the firearms. In truth, the straw purchaser bought the firearms at Figueroa’s instruction, using money provided by Figueroa, and gave the firearms to Figueroa minutes after the sale. It is against federal law to aid and abet the provision of false information to federal firearm licensees when purchasing firearms from them.
The case was investigated by the U.S. Drug Enforcement Administration; the Maine Drug Enforcement Agency; the Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Lewiston Police Department.
Project Safe Neighborhoods: Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. Project Safe Neighborhoods is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories, and the program is customized to account for local violent crime problems and resources. Across all districts, Project Safe Neighborhoods follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Maryland man sentenced for firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Todd Dwayne Mills, Jr., of Hagerstown, Maryland, was sentenced today to three years of probation for a firearms charge, United States Attorney William Ihlenfeld announced.
Mills, 24, pleaded guilty in November 2021 to one count of “False Statement During Purchase of Firearms.” Mills admitted to made false statements on forms to purchase two 9mm pistols in March 2021 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge Gina M. Groh presided.
Maryland man sentenced for drug traffickingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Traun Renekki Musgrove, of Hagerstown, Maryland, was sentenced today to one year of probation for a drug charge, United States Attorney William Ihlenfeld announced.
Musgrove, 42, pleaded guilty in December 2021 to one count of “Unlawful Use of Communication Facility.” Musgrove admitted to using a phone to sell marijuana in June 2017 in Berkeley County.
Musgrove was also ordered to pay a $6,678 fine.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.
Maryland man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kevin Joseph Young, of Baltimore, Maryland, was sentenced today to 72 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Young, 56, pleaded guilty in November 2021 to one count of “Possession with Intent to Distribute 100 Grams or More of a Mixture and Substance Containing Phencyclidine (PCP).” Young admitted to having 100 grams or more of PCP in September 2019 in Jefferson County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. 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.
Assistant U.S. Attorneys Lara Omps-Botteicher and Eleanor F. Hurney prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Gina M. Groh presided.Maryland man sentenced for a firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dylan Michael Ward, of Hagerstown, Maryland, was sentenced today to six months of incarceration for a firearms conspiracy, United States Attorney William Ihlenfeld announced.
Ward, 23, pleaded guilty in December 2021 to one count of “Conspiracy.” Ward admitted to working with others to purchase and transport firearms illegally across state lines from West Virginia into Maryland. The crimes occurred in March and April of 2021 in Berkeley County and elsewhere.
Ward was also ordered to pay a fine of $13,356.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge Gina M. Groh presided.
Martinsburg man sentenced to 10 years for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dwayne Paige, of Martinsburg, West Virginia, was sentenced today to 120 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Paige, 48, pleaded guilty in September 2021 to one count of “Distribution of Fentanyl and Heroin.” Paige admitted to selling heroin and fentanyl in December 2018 in Berkeley County.
Assistant U.S. Attorney Timothy D. Helman prosecuted the case on behalf of the government. The Washington County, Maryland Task Force investigated.
U.S. District Judge Gina M. Groh presided.
Madison Man Sentenced to 8 Years for Cocaine Trafficking and Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Arwin C. Lacy, 31, Madison, Wisconsin was sentenced today by U.S. District Judge James D. Peterson to 7 years in federal prison for possessing cocaine with the intent to distribute and possessing a firearm in furtherance of a drug trafficking crime. This prison term will be followed by 5 years of supervised release. Lacy pleaded guilty to this charge on January 11, 2022.
On June 18, 2020, Dane County Narcotics Task Force officers arrested Lacy in Madison, Wisconsin for a prior delivery of cocaine. During the arrest, Lacy told officers that he had a firearm in his right pants pocket. Officers found a loaded Glock 43 9mm handgun in that pocket. Officers located fourteen tied-off baggies of crack cocaine weighing a total of 7.8 grams, three tied-off baggies of heroin weighing a total of 0.7 grams, and $503 in cash in Lacy’s left pants pocket. Following Lacy’s arrest, officers searched his vehicle. Officers found $17,000 in cash, packages of designer marijuana, and four cell phones in a backpack. When interviewed by officers, Lacy admitted to selling cocaine for profit. Lacy was prohibited from possessing a firearm based on multiple prior felony convictions.
At the time of this event, Lacy was on federal supervision for cocaine trafficking. His supervision was revoked and he was ordered to serve 1 year in federal prison to run consecutively to the new federal sentence for a total of 8 years in prison.
At sentencing, Judge Peterson said Lacy’s conduct was dangerous and serious. He said drug trafficking is degrading to the community and possessing a gun while doing it amplifies the potential for violence. Judge Peterson noted that Lacy committed this crime while on federal supervision for a similar offense.
The charges against Lacy were the result of an investigation conducted by the Dane County Narcotics Task Force, Madison Police Department, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach involves collaboration by federal, state and local law enforcement agencies, prosecutors and communities to prevent and deter gun violence.
Local woman ordered to prison for aggravated identity theftRead the Press Release
HOUSTON – A 43-year-old Houston resident has been sent to prison following her conviction of using stolen personal information to obtain over $1,000, announced U.S. Attorney Jennifer B. Lowery.
Daneshia Shane Walton pleaded guilty Jan. 18.
Today, U.S. District Judge Andrew Hanen ordered Walton to serve 24 months in federal prison to be immediately followed by one year of supervised release. In handing down the sentence, the court noted Walton was still a young woman. He hoped the statement she made to the court prior to sentencing that she was no longer the same person who committed this crime was true.
At the time of her plea, Walton admitted that on July 5, 2013, she used a victim’s name, address and Social Security number to fraudulently obtain a Mastercard at a Marshalls department store located in Houston.
On that day, Walton then used the credit card to purchase two gift cards in the amount of $600 each.
Walton was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Secret Service conducted the investigation. Assistant U.S. Attorney John Braddock prosecuted the case.
Las Vegas Man Sentenced to Prison for COVID-19 Relief Fraud, Bank Fraud, and Money LaunderingRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 27 months in prison for perpetrating a scheme to defraud the Small Business Administration by fraudulently applying for an Economic Injury Disaster Loan (EIDL) of more than $100,000 using the name of his defunct business.
Kash King Fuller, aka Kenneth Calhoun Jr., 28, pleaded guilty in February 2022 to one count of wire fraud, two counts of bank fraud, and one count of money laundering. In addition to imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced Fuller to three years of supervised release.
According to court documents, in March 2018, Fuller formed Generic Labor, LLC, a purported construction contracting company, which he later closed in 2019. In June 2020, Fuller fraudulently obtained $102,400 after submitting a falsified application for an EIDL in the name of his defunct company. Despite having legally changed his name to “Kash King Fuller,” he used his former name, “Kenneth Calhoun,” when identifying the owner of the company. After receiving the EIDL, Fuller attempted to conceal the scheme by depositing the funds into his personal bank account in a series of structured cash deposits intended to avoid bank reporting requirements. Fuller used the fraudulently obtained funds to pay for personal expenses, including financial trades and gambling.
Additionally, from January 2018 to November 2020, Fuller obtained credit cards, unsecured loans, and other lines of credit from banks. Upon obtaining the credit, Fuller made cash withdrawals and incurred other charges which he did not intend to pay. In total, he intended a loss of at least $56,560 in fraudulent credit charges.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was investigated by the FBI and Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Mina Chang prosecuted the case.
In May 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Justice Department Secures Settlement with Consulting Agency to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with Cloud Peritus Inc., a California IT consulting services company. The settlement resolves the department’s claims that Cloud Peritus discriminated against a non-U.S. citizen by requesting that he present additional and unnecessary documents to prove his permission to work because of his citizenship status.
“Once employees have presented valid, acceptable documentation to prove their permission to work, employers cannot ask for more documentation because of the employees’ citizenship, immigration status, or national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring all workers have the right to prove their permission to work free from unlawful discrimination.”
The department’s investigation determined that Cloud Peritus discriminated against a non-U.S. citizen by asking him for additional documentation to prove his permission to work, even though he had already provided sufficient documentation, based on his citizenship status. The investigation also revealed that the company’s discriminatory document request was partly caused by its misunderstanding of the software it used to verify employees’ permission to work, which the company believed required these documents from non-U.S. citizens.
The anti-discrimination provision of the Immigration and Nationality Act (INA) prohibits employers from asking for more or different documents than necessary to prove their permission to work in the United States because of a worker’s citizenship, immigration status or national origin. Employers should allow workers to present whatever valid documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
Under the settlement, Cloud Peritus will pay a civil penalty to the United States. The settlement also requires Cloud Peritus to train staff on the requirements of the INA’s anti-discrimination provision and be subject to departmental monitoring and reporting requirements.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this release here.
Justice Department Announces $40 Million in Funding to Advance Community Policing and $5 Million in Funding for the Collaborative Reform InitiativeRead the Press Release
Today, the U.S. Department of Justice announced the availability of approximately $40 million in funding in Community Policing Development (CPD) grants and roughly $5 million for the Collaborative Reform Initiative. Attorney General Merrick B. Garland first announced the expansion of technical assistance services offered to law enforcement agencies through the Collaborative Reform Initiative in March 2022.
The Community Oriented Policing Services’ (COPS Office) CPD funds are used to help law enforcement implement community policing through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting creative approaches to preventing crime and promoting safe communities. The Collaborative Reform Initiative offers a range of intermediary and intensive forms of technical assistance, including targeted assistance following a critical incident, issue-specific reviews and analysis, and in-depth assessments on systemic issues that damage community trust and confidence. Each level of the initiative’s assistance is voluntary and provided at the request of law enforcement agencies.
“Nothing is more important than keeping our communities safe,” said Associate Attorney General Vanita Gupta. “Each day, approximately half a million people throughout the United States call 911 for help and there are hundreds of thousands more daily interactions between law enforcement and members of the communities they serve. The funding we are announcing today is critical to the department’s commitment to public safety and best practices in community policing.”
Highlights of the 2022 CPD funding include:
- Crisis Intervention Teams (CIT). Up to $10 million will support crisis intervention teams.
- De-escalation Training. Up to $15 million will support national level de-escalation training for officers through a network of regional centers.
- Accreditation. Up to $8 million to expand state accreditation programs and assist agencies with gaining accreditation will ensure compliance with state and national standards, covering all aspects of law enforcement policies, procedures and practices.
- COPS Microgrants. Up to $5 million will support local agencies’ demonstration or pilot projects, known as COPS Microgrants. These projects offer creative ideas to advance crime fighting, community engagement, problem solving or organizational changes to support community policing.
- Tolerance, Diversity and Anti-Bias Training. Up to $2 million will support the delivery of tolerance, diversity and anti-bias training for law enforcement officers.
The Collaborative Reform Initiative continuum includes:
- A continuation of the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC). Established in 2017, CRI-TAC provides a wide range of targeted technical assistance services and involves a coalition of support and expertise from ten leading law enforcement stakeholder organizations. Through CRI-TAC’s “by the field, for the field” approach, the department facilitates customizable, short-term technical assistance on more than 60 topics. Last year, CRI-TAC worked with over 170 law enforcement agencies. The new initiative will maintain CRI-TAC as its first level of support.
- An updated Critical Response. A law enforcement agency experiencing a high-profile event or other special circumstance will be able to reach out to the COPS Office for needed technical assistance. Like CRI-TAC, this program is also customizable and provides flexible assistance to law enforcement agencies in a variety of ways. Once an agency connects with the Department of Justice, tools will be in place to offer support ranging from after-action reviews, to peer-to-peer exchanges, to data analysis and recommendations, to facilitating discussions with experts. The initiative will maintain the Critical Response program as its second level of support.
- An updated Organizational Assessments. This program will offer the most intensive form of support, involving in-depth assessments on systemic issues. Under the new initiative, areas for reform will be addressed with timely, ongoing and actionable guidance. Participating agencies will be provided with the technical assistance they need to accomplish reforms as they are identified. This program is a voluntary opportunity for an agency that knows it needs to make changes and wants to make changes. The department will prioritize offering this third level of support to agencies that have a clear desire to engage with the model and advance community policing.
The CPD solicitation will close on June 23, 2022, and the Collaborative Reform solicitation will close on July 8, 2022. Additional information can be found on the COPS website at https://cops.usdoj.gov/grants.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to agency for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers.
Imperial, PA Daycare Operator Pleads Guilty to Failing to Account for and Pay over TaxesRead the Press Release
PITTSBURGH, PA - A resident of Imperial, Pennsylvania, pleaded guilty in federal court to a charge of failing to account for and pay over payroll taxes to the Internal Revenue Service, United States Attorney Cindy K. Chung announced today.
Rebecca Lynn Boyce, age 43, pleaded guilty to one count before United States District Judge Nicholas Ranjan.
In connection with the guilty plea, the court was advised that from at least 2006 through at least 2019, Boyce owned and operated Cutie Patootie Daycare, a childcare center in Imperial, Pennsylvania. During that period, Cutie Patootie employed staff and withheld payroll taxes from the paychecks of its employees. Cutie Patootie was required to pay over payroll taxes to the IRS on a periodic basis and was required to account for payroll taxes by filing with the IRS on a quarterly basis Form 941, an Employer’s Quarterly Federal Tax Return. Boyce failed to pay over payroll taxes to the IRS and failed to file any Forms 941 from the quarter ending March 31, 2015, through the quarter ending December 31, 2018. Boyce was informed of her obligation to file Forms 941 and make payroll tax payments during IRS audit and collections activities that preceded the periods charged in the Indictment. Boyce agreed to pay restitution to the IRS in the amount of $299,830.20, plus interest.
Judge Ranjan scheduled sentencing for September 20, 2022. The law provides for a maximum sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation leading to the Indictment in this case.
Husband and Wife who Conspired with Jared Fogle to Sexually Exploit Children are Sentenced to Decades in Federal PrisonRead the Press Release
INDIANAPOLIS – Russell Taylor, 50, Indianapolis, and his ex-wife, Angela Taylor (now known as Angela Baldwin), 40, Connersville, were sentenced today, ending a years-long child exploitation investigation into a conspiracy that involved Taylor, Baldwin, and Jared Fogle. Taylor was sentenced to 27 years in prison and Baldwin was sentenced to over 33 years in prison.
According to Court documents, the investigation into Taylor, Baldwin, and Fogle began in 2014, when an acquaintance of Taylor and Baldwin contacted the Indiana State Police to report that Taylor had offered to send her child sexual abuse material. In 2015, a search warrant was executed at the home that Taylor and Baldwin shared. Child sexual abuse material was discovered on multiple electronic devices and law enforcement officers concluded that there were likely hidden cameras in the house.
Taylor and Fogle were both charged, pled guilty, and convicted in 2015. Taylor appealed, and his conviction was vacated in 2020. During the subsequent re-investigation, investigators discovered evidence that implicated Baldwin, and she was charged with production of child sex abuse material, possession of child sex abuse material, and conspiracy to produce child sex abuse material.
According to court documents, between 2011 and 2015, Taylor and Baldwin worked together and with other individuals, including Jared Fogle, to produce, possess, and distribute child sexual abuse material. Taylor and Baldwin placed hidden cameras in their house to secretly record minor children fully nude and/or engaging in sexual activity. In addition to viewing the hidden camera footage, Taylor and Baldwin also distributed the sexually explicit images and videos to each other, to Fogle, and to other members of the conspiracy.
Taylor, who pled guilty in June 2021 to multiple offenses, including 24 counts of producing child sexual abuse material, was sentenced today to 324 months in federal prison.
Baldwin, who was convicted by a jury in October 2021 of two counts of production of child sexual abuse material, one count of conspiracy to produce child sexual abuse material, and one count of possession of child sexual abuse material, was sentenced to 400 months in federal prison.
“The Taylors have finally been held accountable for their years of heinous sexual exploitation of children,” said U.S. Attorney Zachary A. Myers. “Child sexual abusers must be held accountable for the lifelong impact of these crimes on survivors and their families. The prosecutors, investigators, and analysts of Indiana’s Internet Crimes Against Children Task Force will not relent in our mission to protect children from these offenders. I commend all of the dedicated professionals who fought to take these child predators out of our community and help to bring justice to their victims.”
“This case demonstrates the never-ending commitment of the FBI and our law enforcement partners to seek justice for the victims of child sexual abuse,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Russell Taylor and Angela Baldwin not only abused children by producing child sexual abuse material in their home, but also re-victimized children over and over again by contributing to the distribution of these images. Sentences like this one send a clear message that adults who participate in this type of despicable abuse will be held responsible for their actions.”
“The collaborative work performed by the Indiana State Police, Indiana Internet Crimes Against Children Task Force and our federal law enforcement partners helped to bring to justice those who sought to perpetuate the victimization of children”, said Indiana State Police Superintendent Douglas G. Carter. “And for that, I am so proud and grateful for their tireless efforts.”
The Federal Bureau of Investigation and the Internet Crimes Against Children Task Force investigated the case. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Taylor and Baldwin be supervised by the U.S. Probation Office for life following their release from prison. Taylor and Baldwin will also be required by law to register as a sex offender wherever they live, work, or go to school.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Kathryn E. Olivier and Bradley P. Shepard who prosecuted this case.
Indiana Internet Crimes Against Children (ICAC) Task Force is a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
Additionally, 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 U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, 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
Home Health Company Operating in Florida Pays $2.1 Million to Resolve False Claims AllegationsRead the Press Release
Miami, Florida – SHC Home Health Services of Florida, LLC and its related entities (collectively “Signature HomeNow”) have paid $2.1 million to the United States government to settle claims of improperly billing the Medicare Program for home health services provided to beneficiaries living in Florida.
Signature HomeNow operated home healthcare services in Florida and its corporate headquarters are located in Louisville, Kentucky.
According to a complaint filed in the United States District Court for the Southern District of Florida against Signature HomeNow and the subsequent settlement agreement, it was alleged that between 2013 and 2017 Signature HomeNow knowingly submitted false or fraudulent claims seeking payment from the Medicare Program for home health services to Medicare beneficiaries who: (i) were not homebound; (ii) did not require certain skilled care; (iii) did not have a valid or otherwise appropriate plans of care in place; and/or (iv) did not have appropriate face-to-face encounters needed in order to be appropriately certified to receive home health services.
This matter arose from a complaint to the Department of Health and Human Services, Office of Inspector General (HHS-OIG) complaint hotline (https://oig.hhs.gov/fraud/report-fraud/) and from a complaint for monetary damages under the qui tam provisions of the federal False Claims Act. See United States ex rel. Barbara Mellott-Yezman and Patricia Rench v. SHC Home Health Services-Ocala, LLC et al., Case No. 15-cv-24713 (S.D. Fla.).
“The fraudulent billing of Medicare will not be tolerated,” said Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida. “We will continue to aggressively pursue cases against those who erode the fabric of our federal health care programs by submitting false claims to Medicare.”
“Overbilling Medicare by submitting false claims increases the cost of medical care for all and undermines the integrity of the Medicare program,” said Michael A. Bennett, U.S. Attorney for the Western District of Kentucky. “This office will continue to vigorously pursue unscrupulous health care providers who attempt to defraud the Medicare program.”
“When health care companies try to boost their profits by fraudulently billing federal health care programs, our agency will work closely with our law enforcement partners to hold them accountable for their schemes,” said HHS-OIG Atlanta Regional Office Special Agent in Charge Miles.
HHS-OIG Atlanta Regional Office investigated the case, with assistance from HHS-OIG Miami. Assistant U.S. Attorneys James A. Weinkle and John Spaccarotella (of the U.S. Attorney’s Office for the Southern District of Florida), Assistant United States Attorneys Benjamin S. Schecter, Jessica R.C. Malloy, and Matt Weyand (of the U.S. Attorney’s Office for the Western District of Kentucky) 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.
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Harley Ray Humphrey Sentenced to 248 Months for Methamphetmine and Gun ChargesRead the Press Release
GREENEVILLE, Tenn. – May 9, 2022, Harley Ray Humphrey, 41, of Russellville, Tennessee, was sentenced to 248 months in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Humphrey agreed to plead guilty to conspiracy to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(b)(1)(A) and to possession of a firearm in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c). Following his release from prison, Humphrey will be on 10 years of supervised release.
According to the written plea agreement filed with the court, Hamblen County narcotics detectives identified Humphrey as a supplier of methamphetamine to multiple individuals in Hamblen County, Tennessee. On January 25, 2020, Greene County officers responded to a call regarding trespassers at an abandoned property on Poncho Road, along with a report that shots had been fired. Officers found multiple individuals on the property, including Humphrey and another male who were located inside an old camper. Officers searched the camper and found 248 grams of methamphetamine, 12 Xanax pills, .6 grams of marijuana, and an M&P .22 caliber assault rifle. Four spent casings were found on the ground outside the camper. Humphrey had $2,500 cash on his person. Investigators obtained other information that Humphrey was regularly purchasing methamphetamine from the Atlanta, Georgia area and distributing it in Tennessee.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Hamblen County Sheriff’s Office, the Greene County Sheriff’s Office, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Emily Swecker represented the United States.
This case was part of the High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
This case is also 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 working together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Four Plead Guilty to Racketeering, Shootings, and Economic Crimes in “Robles Park” Criminal EnterpriseRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Keaujay Hornsby, a/k/a “Plug,” (26, Tampa); Kareem Spann, a/k/a “Reem,” (27, Tampa); and Tywon Spann, a/k/a “Weez” (25, Tampa) have pleaded guilty to a racketeering conspiracy related to numerous violent, drug trafficking, and economic crimes that were committed in furtherance of a criminal enterprise called “Robles Park.” Hornsby and Kareem Spann have also pleaded guilty to committing violent crimes in aid of racketeering and discharging firearms in aid of crimes of violence. Eriaus Bentley (29, Tampa) and the three other defendants have each also pleaded guilty to conspiring to commit fraud and identity theft, and committing numerous substantive acts of fraud and identity theft. Bentley faces a maximum penalty of 5 years in federal prison. Tywon Spann faces up to 20 years’ imprisonment. Hornsby and Kareem Spann each face a maximum penalty of life in federal prison.
According to court documents, “Robles Park” is a criminal organization whose members and associates engaged in acts involving murder, assault, intimidation, narcotics trafficking, access device fraud, identity theft, obstruction of justice, and other crimes. Among other acts of violence, on July 19, 2020, Hornsby and Kareem Spann committed a shooting outside the Truth Lounge in Tampa, igniting a shootout in front of a crowd that left eight people injured, including minors. On the afternoon of July 25, 2020, in retaliation for the Truth Lounge shooting, in the parking lot of the International Plaza in Tampa and near several witnesses, West Tampa gang members initiated an armed confrontation with Hornsby and Kareem Spann. Hornsby and Kareem Spann exchanged fire with the gang members, leaving behind 25 spent shell casings and several damaged vehicles.
This enterprise also distributed controlled substances, with customers that would also cover sales for each other. Sales were arranged via text messages, phone calls, and in-person contacts. The defendants maintained and used various premises to store and distribute the narcotics. On January 5, 2021, law enforcement officers searched one of the residences and found 253.2 grams of cocaine, 298.4 grams of marijuana, and 174.2 grams of synthetic cannabinoids.
Additionally, members of the enterprise worked with each other and other persons to unlawfully obtain the personal identifying information (PII) of other persons. They used this PII to submit false applications for unemployment benefits to which they were not entitled. In total, the defendants submitted more than 200 fraudulent claims, in 20 different states, with an intended loss of over $3 million. For many of those claims, a bank card was issued from the state in which the claim was filed, loaded with Unemployment Insurance funds. The defendants then used each of the cards to withdraw cash from an ATM.
On August 12, 2020, law enforcement officers searched Tywon Spann’s home and seized firearms, several pounds of marijuana, and $200,000 in cash, which is traceable to proceeds of these offenses, and will be forfeited.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, the United States Secret Service, and the Department of Labor. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Former Postal Employee Admits Fraud in Connection with Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) employee today admitted that he fraudulently obtained unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Khaori Monroe, 29, of Newark, pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with one count of wire fraud.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.
Monroe was employed as a mail carrier with the USPS. He and others stole credit/debit cards containing unemployment insurance benefits from a location in New Jersey. Monroe and others then activated the cards and used the cards to obtain more than $40,000.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Monroe or twice the gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Sept. 14, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Former Police Officer Found Guilty of Stealing 125 Firearms from the Puerto Rico Police Shooting Range at Isla De CabraRead the Press Release
SAN JUAN, Puerto Rico – On May 6, 2022, following a ten-day bench trial, the Honorable Silvia Carreño-Coll found defendant José Padilla-Galarza guilty as charged in Counts 1, 2, 3, 5, and 6 of the superseding indictment, which included the following:
- Conspiracy to interfere with commerce by robbery (Hobbs Act);
- Carrying a firearm during and in relation to a crime of violence;
- Stealing firearms;
- Prohibited person in possession of a firearm; and
- Interference with commerce by robbery (Hobbs Act).
According to court documents and evidence presented at trial, Padilla-Galarza, a former Puerto Rico Police Bureau (PRPB) officer, used to visit the PRPB Isla de Cabra Shooting Range to become familiar with the personnel, their shifts, and the layout of the facility. Padilla-Galarza, as mastermind, planned the heist for over a year. The robbery took place on October 26, 2010. The co-conspirators assaulted, subdued, and bound the duty police officers and stole the firearms stored in the vault to subsequently sell them for significant pecuniary gain and profit.
The co-conspirators used a white Ford Crown Victoria attached with decals of the PRPB to give it the appearance of an official PRPB patrol car. Members of the conspiracy dressed as PRPB police officers, some in regular police uniforms and others in tactical uniforms. The 125 firearms stolen included two pistols taken from duty officers, 40 AR-15 rifles, 24 shotguns, nine 9mm carbines, one MP3 rifle, and 49 pistols.
This was the biggest firearms robbery in the history of Puerto Rico.
Padilla-Galarza now faces terms of imprisonment of up to 20 years for the Hobbs Act violations, a minimum of 5 years for carrying a firearm in furtherance of a crime of violence (robbery), up to 10 years for stealing firearms, and up to 10 years for being a prohibited person in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) lead the investigation with the collaboration of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), and the Federal Bureau of Investigation (FBI).
The case was prosecuted and tried by Assistant United States Attorneys Max Pérez-Bouret and Jawayria Z. Auchter.
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Former Allenwood Inmate Sentenced for Possessing A Cellphone in PrisonRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 5, 2022, federal inmate John Alexander Townsend, age 41, pleaded guilty before U.S. Magistrate Judge William I. Arbuckle, for possessing a cellphone in prison. Following the guilty plea, U.S. Magistrate Judge Arbuckle sentenced Townsend to one month imprisonment, to run consecutive to Townsend’s 186-month prison term for a series of armed robberies in Philadelphia. Townsend also lost 54 days of good time and spent 30 days in disciplinary segregation for possessing the cellphone.
According to United States Attorney John C. Gurganus, on May 10, 2021, a corrections officer’s metal detector alerted on Townsend at the Low Security Correctional Institution, Allenwood. Staff then searched Townsend and found a Samsung cellphone and charger hidden in a pocket stitched on the inside of Townsend’s prison uniform. Federal law prohibits inmates from possessing cellphones due to the institutional security risks posed by their use.
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Alisan V. Martin prosecuted the case.
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El Departamento de Justicia llega a un acuerdo con una agencia de consultoría que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Cloud Peritus, Inc., una compañía de servicios de consultoría en el ámbito de la informática radicada en California. La conciliación resuelve las acusaciones del Departamento de que Cloud Peritus había discriminado a un no ciudadano de los EE. UU. al pedir que presentara documentos adicionales e innecesarios para demostrar su permiso para trabajar, debido a su estatus de ciudadanía.
«Una vez que un empleado haya presentado documentación válida y aceptable para demostrar su permiso para trabajar, el empleador no puede pedir documentos adicionales simplemente por motivos de la ciudadanía, estatus migratorio o nacionalidad de origen del empleado», afirmó la Fiscal Federal Auxiliar Kristen Clarke, de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se ha comprometido a garantizar que todo trabajador tenga el derecho a demostrar su permiso para trabajar libre de la discriminación ilícita».
La investigación del Departamento determinó que Cloud Peritus discriminó a un no ciudadano de los EE. UU. al pedir que presentara documentos adicionales para demostrar su permiso para trabajar, a pesar de haber ya presentado suficiente documentación, por motivos de su estatus de ciudadanía. Por otra parte, la investigación reveló que la solicitud documental discriminatoria de la compañía fue el resultado, en parte, de su falta de entendimiento del software que usaba para verificar el permiso para trabajar de sus empleados y la compañía creía que el sistema requería esos documentos de no ciudadanos.
La disposición antidiscriminatoria de la ley de Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) prohíbe que los empleadores pidan documentos adicionales o diferentes a los necesarios para demostrar el permiso para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. Los empleadores deben permitir que sus trabajadores presenten cualquier documentación válida que dichos trabajadores quieran y no pueden rechazar documentación válida que parece ser genuina.
Conforme al acuerdo, Cloud Peritus pagará una sanción civil a los Estados Unidos. Asimismo, el acuerdo requiere que Cloud Peritus capacite a sus empleados en cuanto a los requisitos de la disposición antidiscriminatoria de la INA y que se someta a los requisitos de supervisión y declaración del Departamento.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aprenda más sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en el sitio web de la IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Defendants Appear in Court to Face Charges in High School Drug Advertising and Distribution CasesRead the Press Release
SAN JOSE – The Office of the United States Attorney filed federal criminal complaints charging Benjamin Reily Bliss; Louis Alexander, aka Lulu; and Brandon William Carranza-Arthur with crimes related to the distribution of fentanyl to high school students in Monterey County, announced U.S. Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Special Agent in Charge Wade R. Shannon. Alexander and Carranza-Arthur appeared before U.S. Magistrate Judge Nathanael Cousins on Friday, May 6, 2022, to face their respective charges. Bliss appeared before U.S. Magistrate Judge Nathanael Cousins today.
According to the criminal complaints, the investigation into drug distribution to high schoolers in the area began as early as October of 2021 but took a turn after a 15-year-old Pacific Grove resident suffered a fatal overdose on or about March 5, 2022. Evidence collected at the scene of the overdose established that the juvenile overdosed from inhaling the smoke from a pulverized counterfeit “M30” pill. Subsequent investigation resulted in the complaints that allege Bliss, 18, of Carmel; Carranza, 19, of Monterey; and Alexander, 19, of Monterey, each played a role in distributing drugs to high school students in Monterey County.
The complaint against Bliss alleges that as part of the investigation into the deadly overdose, law enforcement interviewed a second juvenile who also overdosed, but survived. Text messages from the surviving juvenile’s cell phone established that on March 20, 2022, Bliss provided transportation for the juvenile. Specifically, Bliss picked up the surviving juvenile and provided a ride to San Francisco, where the juvenile purchased a baggie containing fentanyl in the form of a multicolored powdery/rocky substance. The juvenile allegedly paid $250 for the drugs which, after using, resulted in a non-fatal overdose on March 23, 2022.
The complaint against Alexander alleges that he used Snapchat to advertise, offer, and sell fentanyl-based counterfeit oxycodone and Xanax pills to high school students in the Monterey area. In October 2021, one of the juveniles he is believed to have supplied suffered a non-fatal overdose. While the juvenile overdose victim was recovering in the hospital, the juvenile’s mother discovered Snapchat messages on a cellular phone that the juvenile used. The Snapchat messages were about drug sales and were between the juvenile and a person named “lulu.” According to the complaint, law enforcement personnel later identified “lulu” as Alexander. In addition, the mother of yet another local high school student reported that “numerous students [ ] are using and addicted to ‘percocets,’”and that “lulu” is a known as a supplier of these “blue pills” at the student’s high school.
Similarly, the complaint filed against Carranza alleges that law enforcement personnel obtained text messages between Carranza and a juvenile establishing Carranza played a role in supplying drugs to high school students. According to the complaint, Carranza provided information regarding how a student should take counterfeit prescription drugs. The complaint describes numerous text messages in which a juvenile admits he was having intense cravings for drugs and Carranza negotiates the price and quantity of pills that could be supplied. In one exchange, the juvenile offers to pay Carranza $60 for $50 worth of pills if Carranza would front the money; the juvenile explained that the arrangement would provide sufficient time to arrange the sale of a cell phone to finance the transaction. According to the complaint, Carranza ultimately arranged for the juvenile to obtain the drugs.
In sum, Bliss is charged with aiding and abetting distribution of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(c) and 18 U.S.C. § 2, while Carranza and Alexander are charged with unlawfully using, or causing to be used, the Internet to advertise, or to offer to sell or distribute a controlled substance, in violation of 21 U.S.C. § 843(c)(2)(A). Bliss faces a maximum statutory sentence of 20 years in prison. Alexander and Carranza face a maximum term of four years in prison. In addition, as part of any sentence handed down after conviction of any of the three defendants, the court may order a fine of up to $250,000, restitution, and up to three years of supervised release. However, any sentence after conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Carranza and Alexander are next scheduled to appear on May 11 before Magistrate Judge Cousins. Bliss is making his initial federal court appearance today.
Assistant U.S. Attorneys Amani S. Floyd and Maya Karwande are prosecuting the cases with assistance from Linda Love and Andy Ding.
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 the result of an investigation by the DEA with assistance from Homeland Security Investigations; the FBI; the police departments of Pacific Grove, Seaside, Monterey, Salinas, Marina, Greenfield, and Soledad; the Monterey County Probation Department; and the Monterey County Sheriff’s Office.
Culloden Man Sentenced to Prison for Distributing MethamphetamineRead the Press Release
HUNTINGTON, W.Va. – A Culloden man was sentenced today to three years and four months in prison, to be followed by three years of supervised release, for distribution of methamphetamine.
According to court documents and statements made in court, Travis Lee Hanshaw, 49, admitted to selling methamphetamine to a confidential informant on June 15, 2018, at Hanshaw’s residence.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-198.
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Coffeen, Illinois, Man Sentenced to 168 Months in Prison for Receipt of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Coffeen, Illinois, man, Trey Pease, 30, of the 100 block of South Street, was sentenced on May 4, 2022, to 168 months in prison for receipt of child pornography by United States District Judge Sue Myerscough.
At the sentencing hearing, the government presented evidence that between the summer of 2017 and the spring of 2018, Pease both solicited and received multiple images of child pornography from a minor. Pease conversed with the minor using an online social application. Pease also sent an image of himself to the minor.
During the hearing, Judge Myerscough specifically found that Pease had caused the minor to engage in sexually explicit conduct for Pease’s sexual gratification, had used a computer to receive child pornography, and had engaged in a pattern of activity involving prohibited sexual conduct with minors on multiple occasions.
Pease was indicted in March 2020 and plead guilty in December 2021. He has been detained since his arrest in August 2020.
The statutory penalties for receipt of child pornography are not less than five years and up to 20 years in prison, not less than five years and up to life of supervised release, and not more than a $250,000 fine.
The Illinois State Police investigated the case. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Chicopee Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A Chicopee man pleaded guilty today in federal court in Springfield to possessing more than 100 images of child pornography.
Herve Plasse, 67, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 22, 2022. Plasse was indicted in September 2019.
In July 2015, a search of Plasse’s residence revealed over 100 images of child pornography on his computer, including images of prepubescent girls engaged in sexually explicit conduct. Plasse admitted that he had accessed a website on an encrypted network for the purpose of viewing child pornography.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, up to a lifetime 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 and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Rollins’ Springfield Branch Office 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. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Chicago Man Sentenced to 48 Months for Attempting to Possess Fentanyl for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jeffrey Kemp, 55, Chicago, Illinois was sentenced on Friday, May 6 by Chief U.S. District Judge James D. Peterson to 48 months in prison for attempting to possess fentanyl with intent to distribute. Kemp pleaded guilty to this charge on February 24, 2022.
In 2020, federal and state law enforcement agencies started investigating several known drug traffickers in Dane County, Wisconsin. As part of this joint investigation, the Wisconsin Department of Justice Division of Criminal Investigation (DCI) learned that an individual in Chicago, Illinois had a parcel of narcotics sent, via U.S. Mail, to an address in Madison, Wisconsin.
On December 7, 2020, a U.S. Postal Inspector identified the parcel, obtained a federal warrant, and searched the package. Inside, investigators found a vacuum-sealed bag that contained approximately 590 grams of a substance containing fentanyl. DCI agents took custody of the drugs and resealed the parcel for a controlled delivery.
Later on December 7, 2020, investigators delivered the parcel to the address in Madison. Approximately one minute after delivering the parcel, a silver sedan with Illinois license plates pulled up to the building. Kemp got out of the car and took the parcel. Arrest units responded as Kemp put the parcel into the car. Officers arrested Kemp and the driver of the vehicle, who agents identified as Antonio Dillard.
During a post-arrest interview, Kemp admitted that the individual in Chicago paid him and Dillard to pick up the parcel and transport the drugs back to Chicago for distribution.
At sentencing, Judge Peterson explained that even though Kemp played a relatively minor role in a larger organization, he caused significant damage to the community by exploiting people’s addictions.
On April 1, 2022, Judge Peterson sentenced Antonio Dillard to 24 months in prison for attempting to possess fentanyl with intent to distribute. In related cases, Judge Peterson sentenced Michael C. Henderson to 84 months in prison on December 9, 2021, and Andre L. McClinton to 108 months in prison on March 23, 2022.
The charge against Kemp was the result of an investigation conducted by DCI, the Dane County Narcotics Task Force, the Drug Enforcement Administration, and the United States Postal Inspection Service. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Chemist Sentenced for Stealing Trade Secrets, Economic Espionage and Wire FraudRead the Press Release
A federal judge in Greeneville, Tennessee, sentenced a Michigan woman today to 168 months, the equivalent of 14 years, in prison for a scheme to steal trade secrets, engage in economic espionage and commit fraud. The defendant was also ordered to serve three years of supervised release and pay a $200,000 fine.
In April 2021, following a 13-day jury trial, Xiaorong You, aka Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit trade secret theft, conspiracy to commit economic espionage, possession of stolen trade secrets, economic espionage and wire fraud.
“As the evidence at trial showed, the defendant stole valuable trade secrets and intended to use them to benefit not only a foreign company, but also the government of China,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this offense, as well as the Department of Justice’s commitment to protect our nation’s security by investigating and prosecuting those who steal U.S. companies’ intellectual property.”
“When companies invest huge amounts of time and money to develop world-class technologies, only to have those technologies stolen, the results are devastating,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Here, the defendant intended not only to enrich herself and her China-based partners, but also the government of China. Crimes like the defendant’s threaten both victim companies and the economic security of the nation as a whole. This case should serve as a warning to those entrusted with valuable trade secrets: if you break the law, you will be punished.”
“Stealing trade secrets of U.S. companies for the benefit of the Chinese government will be vigorously prosecuted in the Eastern District of Tennessee, and today’s 14-year sentence reflects the seriousness of this defendant’s crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The corporate vigilance and subsequent cooperation with federal law enforcement that brought this defendant to justice is to be commended; our national security depends on it.”
“Stealing technology isn’t just a crime against a company,” said Acting Assistant Director Bradley S. Benavides of the FBI’s Counterintelligence Division. “It’s a crime against American workers whose jobs and livelihoods are impacted. Today’s sentencing is a reminder that the FBI and its partners will hold accountable those who break our laws and threaten our economic and national security.”
“Ingenuity, innovation, and perseverance are the time-honored trademarks of American business and entrepreneurship," said Special Agent in Charge Joseph E. Carrico of the FBI's Knoxville Field Office. "In the current global state of commerce, corporations are forced to place an increased emphasis on the protection of trade secrets and intellectual property. The FBI will not sit by while any nation-state attempts to steal or incentivizes the theft of trade secrets from successful corporations. The FBI is committed to working with industry to hold those accountable who would attempt to steal technology or trade secrets at the cost of American businesses, their employees, and their livelihood."
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams and Eastman Chemical Company, and cost nearly $120 million to develop.
You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). You’s Thousand Talents Program application and other evidence presented at trial showed that she intended to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, the Chinese city of Weihai and the Chinese Communist Party.
Until recently, BPA was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. Developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through August 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
The FBI’s Knoxville Field Office and HSI investigated the case.
Assistant U.S. Attorney Mac D. Heavener III for the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. Valuable assistance was provided by Assistant U.S. Attorney T.J. Harker for the Eastern District of Tennessee.
Brooklyn Gang Leader Sentenced to 24 Years in Prison for Murder for Hire Conspiracy, Use of a Firearm, and Narcotics TraffickingRead the Press Release
Earlier today, in federal court in Brooklyn, Ronald Williams, a leader of the ‘90s Crew street gang based in the Canarsie and East Flatbush neighborhoods of Brooklyn, was sentenced by United States District Judge LaShann DeArcy Hall to 24 years’ imprisonment for conspiracy to commit murder-for-hire, conspiracy to commit obstruction of justice murder, conspiracy to distribute marijuana, use of a firearm during a drug trafficking crime, and being a felon in possession of a firearm and ammunition. Williams was convicted by a federal jury on January 24, 2018 following a two-week trial. Williams’ co-defendant, Leon Campbell, pleaded guilty in June 2019 to murder-for-hire conspiracy and conspiracy to distribute marijuana, and was sentenced in November 2019 to nine years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, and Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“Ronald Williams showed his indifference for a human life when, without any hesitation, he accepted money to kill someone suspected of being an informant for federal law enforcement,” stated United States Attorney Peace. “Today’s lengthy sentence demonstrates the seriousness of obstructing justice and that those who seek to do so will be punished. Our district is a safer place with this dangerous and ruthless felon off the streets. I commend the DEA for taking swift action in warning the victim and preventing the planned murder from being carried out.”
“This sentencing demonstrates DEA’s relentless pursuit to seek justice for drug trafficking and violent crimes,” stated DEA Special Agent-in-Charge Tarentino. “The investigation underscores the relationship between drug trafficking and violence, and further demonstrates our commitment and resolve to holding those accountable for causing the most harm in our communities. I commend the hard work of the agents, prosecutors, and law enforcement partners who worked tirelessly on this investigation.”
On April 26, 2013, DEA agents were following Campbell as he was making a delivery of marijuana to a customer in Brooklyn. Campbell spotted the agents and fled, suspecting that his marijuana customer was an informant providing information to federal law enforcement. On April 30, 2013, Campbell called Williams and offered to pay him $5,000 to kill the individual he suspected was a federal informant. Williams agreed to commit the murder and began planning the murder, including selecting a gang member to carry out the contract. Federal agents, however, were able to identify the potential victim, and the murder was not carried out.
Williams was also convicted of being a felon in possession of a firearm and ammunition found during the execution of a search warrant at his residence and using a firearm in connection with the charged drug trafficking crime. The items recovered during a search of Williams’ residence on East 96th Street in Brooklyn included three handguns and several pounds of marijuana, a drug ledger, a safe, and a police scanner.
The government’s case is being prosecuted by Assistant United States Attorney Hiral D. Mehta.
The Defendant:
RONALD WILLIAMS
Age: 47
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-419 (LDH)