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24 May 2022
Randolph County woman admits to methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Tara Lynn Leary, of Valley Head, West Virginia, has admitted to a methamphetamine charge, United States Attorney William Ihlenfeld announced.
Leary, 32, pleaded guilty today to one count of “Possession with Intent to Distribute at Least Fifty Grams of Methamphetamine.” Leary admitted to distributing at least 50 grams of methamphetamine fin January 2020 in Randolph County.
Leary faces not less than 10 years and up to life incarceration and a fine of up to $10,000,000 Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Rafael “Raphy” Pina Sentenced to 41 Months in PrisonRead the Press Release
SAN JUAN, Puerto Rico – U.S. District Judge Francisco A. Besosa sentenced Rafael “Raphy” Pina-Nieves to a term of 41months in prison, 3 years of supervised release, 200 hours of community service and a fine of one hundred fifty thousand dollars ($150,000) for firearms violations being a convicted felon, and possession of a machinegun. Pina-Nieves was found guilty by a federal jury on December 22, 2021.
According to court documents and evidence presented at trial, Pina-Nieves knowing that he had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed: one Glock pistol, Model 19, 9mm caliber; one Smith & Wesson, Model SD40, .40 caliber, and 526 total rounds of live ammunition, including 148 rounds of .40 caliber handgun ammunition, 123 rounds of .357 caliber handgun ammunition, 3 rounds of .45 caliber handgun ammunition, 170 rounds of .25 caliber handgun ammunition, 3 rounds of 5.7 caliber handgun ammunition, 35 rounds of 7.62 caliber rifle ammunition, 18 rounds of 7.92 caliber rifle ammunition, 1 round of 12 gauge shotgun ammunition, and 25 rounds of 9mm caliber handgun ammunition.
The Glock pistol, Model 19, 9mm caliber possessed by Pina-Nieves was a machine gun, as it was modified to shoot more than one shot, without manual reloading, by a single function of the trigger.
U.S. Attorney W. Stephen Muldrow of the District of Puerto Rico, Joseph González, Special Agent in Charge of the FBI, and Matthew D. Line, Special Agent in Charge of the IRS-C.I. made the announcement.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation, were in charge of the investigation of the case.
Assistant U.S. Attorneys María L. Montañez-Concepción and José Ruiz-Santiago prosecuted the case.
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Philadelphia Man Sentenced to 8 ½ Years for Gunpoint Robbery of North Broad Convenience StoreRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Antoine Jordan-Harris, 22, of Philadelphia, PA, was sentenced to eight years and six months in prison and five years of supervised release by United States District Court Judge Karen S. Marston for his participation in a robbery of a 7-Eleven convenience store during a period of civil unrest in Philadelphia.
In April 2021, the defendant pleaded guilty to Hobbs Act robbery, and using, carrying, and brandishing a firearm during and in relation to a crime of violence. The charges arose from an incident in the early morning hours of October 27, 2020, when the defendant—armed with a baseball bat and a handgun—entered a 7-Eleven on North Broad Street. Moments later, and without provocation, the defendant lifted his bat and proceeded to strike and break a television and multiple displays throughout the store. With the baseball bat in his left hand, the defendant approached the checkout counter and removed a handgun from his hoodie pocket. The defendant raised the handgun at the cashier who ducked behind the counter for cover. Then, the defendant reached over the counter, pointed the handgun at the cashier, and demanded the money from the store register. The defendant continued to point the handgun at the cashier and began to count down from 10 while the cashier struggled to empty the registers. After receiving the money, the defendant fled from the store.
“The defendant was so determined to rob this store that he came prepared to terrify and intimidate with two different weapons,” said U.S. Attorney Williams. “His complete disregard for other people and for the law is appalling. Hopefully others will learn from the example set by this case -- if you rob a store in Philadelphia with a firearm, you are going to face serious federal prison time as a result. Our Office is committed to being ‘All Hands On Deck’ working with our law enforcement partners to bring criminals to justice.”
“As a result of this sentencing, Philadelphia is a safer place for our citizens,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “This incredibly violent crime is exactly what ATF, and our law enforcement partners are committed to investigating. We will continue to identify the most violent offenders and see they are held accountable for their heinous acts.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorneys Roberta Benjamin and Lauren Stram.
Owner of the Taxman Financial Services Sentenced to Three Years in Prison for Aiding in Filing False TaxesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that LEROI G. JACKSON, age 50, of New Orleans, was sentenced by U.S. District Judge Susie Morgan to three (3) years in prison for aiding and assisting in the filing of false federal tax returns, a violation of 18 U.S.C. § 7206(2). JACKSON previously pleaded guilty to this charge, which stems from his operation of The Taxman Financial Services LLC (“Taxman”), a business that prepared federal and state tax returns for customers and had offices in New Orleans and LaPlace, among other locations.
According to court records, federal agents determined that JACKSON filed false income tax returns for numerous Taxman customers. For example, JACKSON would create false business losses or false education credits, all without his clients’ knowledge. JACKSON had several employees obtain an IRS Electronic Filing Identification Number (EFIN), which allowed the employees to file customer taxes. However, many of these employees never used their EFINs. Instead, JACKSON would use his employees’ EFINs to file false tax returns for customers. JACKSON profited by charging customers at least $500 per return, which would be deducted from the customer’s refund. From tax years 2014 through 2016, JACKSON admitted that he caused a tax loss to the United States of $241,214.00.
“Today, Mr. Jackson admitted to owning a tax preparation business that blatantly ignored the tax laws by preparing false tax returns and misusing his electronic filing privileges,” said Special Agent in Charge James E. Dorsey, Atlanta Field Office, IRS Criminal Investigation. “Dishonest return preparers use a variety of methods to cheat the government, including falsifying information on the tax returns to generate larger refunds for their clients. Criminal Investigation will continue to ensure that all tax practitioners, tax preparers and others who practice in the tax law profession adhere to professional standards and follow the law.”
In addition to the three-year term of imprisonment, Judge Morgan sentenced JACKSON to one year of supervised release. He is also required to pay restitution to the United States totaling $241,214.00 as well as a mandatory $100 special assessment fee. As part of his plea, JACKSON agreed to a permanent injunction that prohibits him from ever preparing tax returns for any other taxpayer.
U.S. Attorney Evans praised the work of the Internal Revenue Service-Criminal Investigations, which handled this investigation. Assistant United States Attorneys Matthew R. Payne and K. Paige O’Hale handled the prosecution.
Orange County Man Arrested on Federal Stalking Charge Alleging Multiyear Harassment Campaign Against Prominent Online GamerRead the Press Release
SANTA ANA, California – An Orange County man is expected to appear in federal court today after his arrest on a federal criminal complaint alleging that he stalked a professional online gamer during a multi-year harassment campaign.
Evan Baltierra, 29, of Trabuco Canyon, was arrested by FBI agents on Monday afternoon, and he is expected to make his initial appearance this afternoon in United States District Court in Santa Ana.
According to an affidavit filed with the complaint, since July 2020, Baltierra has orchestrated a campaign of harassment targeting the victim, her boyfriend, her friends and her boyfriend’s family. The victim, a resident of Canada, is a prominent professional gamer in the community of “World of Warcraft,” a long-running and popular multiplayer online role-playing game.
In November 2019, the victim traveled to Anaheim to attend “Blizzcon,” an annual gaming convention that focuses on several video game franchises, including “World of Warcraft.” The victim met Baltierra in person at a meet-and-greet with her fans at the Anaheim Convention Center.
Following the convention, Baltierra allegedly asked the victim to be his “valentine.” In response, she politely told him she had a boyfriend. Baltierra then allegedly expressed a desire to visit the victim in Canada, an offer she declined.
After learning from an online friend in June 2020 that Baltierra was trying to find out where she lived because he wanted to visit her, the victim decided to remove Baltierra as moderator of her stream channel and block him from her social media.
Baltierra allegedly continued to contact the victim via direct message on various platforms, including Twitter, Instagram and Reddit, and also via email. He allegedly contacted the victim’s boyfriend and her colleague via the same online platforms. Many of these messages contained threats of violence toward the victim.
Baltierra also allegedly created fictitious online profiles that displayed photographs of the victim, including pornographic photographs where it appears that Baltierra photoshopped the victim’s face onto the photograph. He then sent the photoshopped pictures to the victim’s friends and family, and regularly posted the photographed pictures on various internet chat rooms, the affidavit alleges.
Despite obtaining a temporary restraining order against Baltierra in Orange County Superior Court in February 2021 and Baltierra signing an agreement in which he promised to end the harassment campaign, Baltierra allegedly continued to stalk the victim.
In March 2022, law enforcement executed a search warrant at Baltierra’s residence and seized several items, including a thumb drive that contained many photoshopped nude images with the victim’s face on them, and evidence on Baltierra’s iPhone of email accounts with which he used to send the victim harassing messages, the affidavit states.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Baltierra is charged with one count of stalking. If convicted, Baltierra would face a statutory maximum sentence of five years in federal prison.
The FBI is investigating this matter.
Assistant United States Attorney Jake D. Nare of the Santa Ana Branch Office is prosecuting this case.
Omaha Man – Repeat Offender – Sentenced to 135 Months for Possession of Child PornographyRead the Press Release
United States Attorney Jan Sharp announced that Patrick D.J. Nicks, 42, of Omaha, Nebraska, was sentenced today in federal court in Omaha for distribution and possession of child pornography. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Nicks to imprisonment for 135 months. There is no parole in the federal system. After completing his term of imprisonment, Nicks will begin a 15-year term of supervised release. Nicks must also pay $23,000 in restitution to victims of child pornography offenses.
In November of 2018, the Douglas County Sheriff’s Office opened an investigation into Nicks after receiving 15 CyberTips from the National Center for Missing and Exploited Children (NCMEC). The CyberTips indicated that a user had been uploading images of child pornography using Microsoft Skype. Acting on the information contained within the CyberTips, investigators were able to determine that Nicks was the probable suspect. On July 9, 2020, officers executed a warrant to search Nicks’s Omaha residence and obtained Nicks’s electronic devices.
A forensic examiner completed a review of the data contained on each of the digital media items seized from Nicks. The examiner found evidence of child pornography on two devices, an HP laptop and a Dell desktop computer. The examiner found evidence of files depicting child pornography in at least 10 videos and more than 450 photos. Nicks admitted trading, sharing, and receiving images of child pornography with other Skype users.
Nicks was previously arrested in 2006 and charged with Possession of Child Pornography in the U.S. District Court for the District of Nebraska. He was convicted on May 2, 2006, and sentenced on July 27, 2006 to imprisonment for a term of 36 months, followed by a 2-year term of supervised release.
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.
The case was investigated by the Douglas County Sheriff’s Office and the Federal Bureau of Investigation.
Omaha Man Sentenced to Ten-Year Consecutive Sentence for Robbery of Jewelry StoreRead the Press Release
United States Attorney Jan Sharp announced that Kenneth S. Jones, 41, of Omaha, Nebraska, was sentenced today in federal court in Omaha for the crime of robbery in violation of the Hobbs Act. United States District Judge Brian C. Buescher sentenced Jones to 120 months’ imprisonment, to be served consecutive to the 220-month sentence to imprisonment Jones received in the Southern District of Texas on June 6, 2019. Judge Buescher also ordered Jones to pay over $500,000 in restitution. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
On the evening of February 17, 2018, an Omaha jewelry store, Pretty in Patina, was robbed by a lone suspect, later determined to be Jones. Jones entered the store wearing a mask and gloves and approached the jewelry counter, pointing what appeared to be a handgun at the store clerk and demanding jewelry. He threw a garbage bag at one of the employees and placed a pillowcase on the counter. Employees put jewelry in the pillowcase and Jones left the garbage bag in the store. Numerous items were taken from the store, valued at several hundred thousand dollars. The same day, the Omaha Police Department crime lab determined that four fingerprints found on the garbage bag belonged to Jones. On March 2, 2018, Omaha Police officers executed a warrant to search defendant’s last known address in Omaha. Officers located two rings from the jewelry store and investigators determined that Jones gave them to a resident who was instructed to sell them.
On April 17, 2018, having fled to Texas, Jones robbed a convenience store in McAllen, stole a store clerk’s car, and drove to a bank. Jones then robbed the bank of over $10,000 using what appeared to be a handgun and abandoned the stolen car. Jones hailed a taxi on foot and was tracked to a hotel in the area. Investigators searched his room at the hotel and recovered most of the cash from the bank, a realistic-appearing black BB gun, and the car keys to the stolen car he had left behind at the bank. The taxi driver was interviewed and reported that Jones had used the taxi service to travel to several nearby jewelry and pawn shops.
On April 18, 2018, investigators contacted a pawn shop in McAllen, Texas. They learned that between March 18, 2018, and April 14, 2018, the defendant pawned approximately 40 pieces of jewelry there. Investigators confirmed that several of those jewelry pieces were taken in the robbery of the jewelry store in Omaha. Jones was located and arrested in McAllen and a realistic looking BB gun was found in his motel room.
Jones was thereafter convicted of Bank Robbery by Force or Violence in the U.S. District Court for the Southern District of Texas and was sentenced to imprisonment for 220 months.
This case was investigated by the Omaha Police Department, the Federal Bureau of Investigation, and the McAllen (Texas) Police Department.
Ohio man charged with aiding and abetting plot to murder former PresidentRead the Press Release
COLUMBUS, Ohio – An Iraqi citizen living in Columbus, Ohio, has been charged federally with an immigration crime and with aiding and abetting a plot to murder former United States President George W. Bush.
Shihab Ahmed Shihab Shihab, 52, was arrested by FBI Joint Terrorism Task Force agents this morning and appeared in federal court here at 2:30pm. His case was unsealed at that time.
Shihab originally entered the United States in September 2020 on a visitor visa, and in March 2021, he filed a claim for asylum with United States citizenship, which is pending review. He lived in both Columbus, Ohio, and Indianapolis and worked at markets and restaurants in both cities.
It is alleged that Shihab exchanged money with others in an attempt to illegally bring foreign nationals to the United States.
For example, in August 2021, Shihab allegedly intended to help who he thought was another Iraqi citizen enter the United States for a fee of $40,000. Shihab provided specific instructions on how he would smuggle the person into the United States after 60 days. In October and December 2021, Shihab accepted tens of thousands of dollars for the purported smuggling. In reality, the individual was fictitious, and the interaction was coordinated under the direction of the FBI.
The charging document also alleges that Shihab planned to smuggle four additional Iraqi foreign nationals into the United States for the purpose of killing former President George W. Bush in retaliation of Iraqi deaths during “Operation Iraqi Freedom.” Shihab then allegedly planned to smuggle the four out of the United States via the United States/Mexico border after they carried out the assassination.
In furtherance of the assassination plot, Shihab allegedly traveled to Dallas in February 2022 to conduct surveillance of locations associated with the former President. In March 2022, it is alleged Shihab met with others in a hotel room in Columbus, Ohio, to look at sample firearms and law enforcement uniforms.
Attempting to illegally bring an individual into the United States is a federal crime punishable by up to 10 years in prison. Aiding and abetting the attempted murder of a former United States Official carries a potential prison sentence of up to 20 years in prison.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Matthew G. Olsen, Assistant Attorney General, Department of Justice, National Security Division; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Jaime Carazo, Special Agent in Charge, United States Secret Service, announced the charges. Assistant United States Attorney Jessica W. Knight and Trial Attorney Frank Russo from the Department of Justice’s National Security Division are representing the United States in this case.
A criminal complaint merely contains allegations, and defendants are presumed innocent unless proven guilty in a court of law.
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Northern Virginia Resident Settles Allegations of Fraudulently Obtaining Paycheck Protection Program LoansRead the Press Release
ALEXANDRIA, Va. – Latifa Brooks, a resident of McLean, has agreed to pay $107,347 to settle a civil fraud case alleging that she fraudulently applied for and received two Paycheck Protection Program (PPP) loans and subsequently fraudulently obtained forgiveness on both loans.
On March 31, 2022, the United States filed a Complaint against Brooks under the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). According to the allegations in the Complaint, in April 2021, Brooks obtained two PPP loans, totaling $42,601, based on her asserted status as an independent contractor and the sole proprietor of Superb Movers, Inc. The United States alleged Brooks listed false gross income amounts and submitted fake tax returns in support of the PPP applications. In September 2021, Brooks obtained forgiveness for both PPP loans through allegedly falsely certifying compliance with all PPP rules and requirements.
As a part of this resolution, Brooks agreed to repay $47,772 for the loan forgiveness amounts and processing fees that the Government paid because of Brooks’ allegedly false claims and statements, and an additional $59,575 to settle the United States’ claims for treble damages under the FCA and civil penalties under the FCA and alternatively the FIRREA. The Complaint filed by the United States is a result of EDVA’s ongoing effort to use data analysis to proactively identify fraudulently obtained PPP loans.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Small Business Administration.
The matter was investigated by Assistant U.S. Attorneys William Hochul and Krista Anderson.
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.
The civil claims settled by this agreement are allegations only; there has been no determination of civil liability.
Related court documents and information from the civil lawsuit are available on PACER by searching for Case No. 1:22-cv-00359. A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Newark Man Pleads Guilty to Selling Methamphetamine, Fentanyl, and HeroinRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced today that a Newark man pleaded guilty today in U.S. District Court to conspiring to sell various illicit drugs. Chief U.S. District Judge Colm F. Connolly accepted the plea.
According to court documents, Malik Moss, known as “Bleek,” 37, worked with known co-conspirators, who have not yet entered guilty pleas, to sell methamphetamine, fentanyl, and heroin to various buyers in New Castle County, Delaware. The Drug Enforcement Administration learned about Moss’s drug dealing, in part, through court-approved monitoring of his phone calls and text messages for several months in late 2021.
Moss pleaded guilty to conspiracy to distribute controlled substances and faces a mandatory minimum of 10 years and maximum of life in prison. Chief Judge Connolly will determine his sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
“The widespread impact of drug distribution is incalculable,” stated U.S. Attorney Weiss. “Working with our federal, state and local law enforcement partners, we will continue to apply the rule of law to stop the flow of dangerous substances into our communities.”
This case was investigated by the Drug Enforcement Administration and is being prosecuted by Assistant U.S. Attorneys Alexander P. Ibrahim and Ruth Mandelbaum.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 22-cr-24.
New Orleans Man Pleads Guilty to Four Carjackings and Four Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – WAYNE ONEAL, age 20, a resident of New Orleans, pleaded guilty to an eight-count (8) bill of information for four carjackings, and four counts of brandishing a firearm during and in relation to a crime of violence, announced U.S. Attorney Duane A. Evans.
For each count of carjacking, ONEAL faces a maximum term of imprisonment of fifteen (15) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment and a mandatory $100 special assessment fee.
For each count of brandishing a firearm during and in relation to a crime of violence, ONEAL faces a minimum term of imprisonment of seven (7) years, up to a maximum term of imprisonment of life, to be run consecutive to each other, and all other counts, a fine of up to $250,000.00, up to five (5) years of supervised release following any term of imprisonment and a mandatory $100 special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives along with the New Orleans Police Department. The case is being prosecuted by Assistant U.S. Attorney Mike Trummel.
National Labor Organization Employee Sentenced to Prison for Embezzling More Than $270,000 from UnionRead the Press Release
WASHINGTON – Donnell Owens, a former employee of the American Federation of Government Employees, was sentenced today to 15 months in prison for an embezzlement scheme in which he stole more than $270,000 from the labor union.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Mark Wheeler, Director of the Washington District Office of the U.S. Department of Labor, Office of Labor-Management Standards.
Owens, 34, of District Heights, Maryland, pleaded guilty in October 2021, in the U.S. District Court for the District of Columbia, to one count of embezzlement and theft of labor union assets. He was sentenced by the Honorable Reggie B. Walton. Following his prison term, Owens will be placed on three years of supervised release. He also must pay $273,745 in restitution and an equal amount in a forfeiture money judgment.
According to the statement of offense submitted to the Court and admitted by Owens, from October 2014 through June 2018, Owens worked as a Secretary to the Director of Communications at the American Federation of Government Employees (AFGE), a labor organization headquartered in Washington, D.C. which represents workers in various functions of the private sector and the government affecting commerce throughout the United States and overseas. During this period, Owens embezzled more than $270,000 in AFGE funds for his use and the use of others.
As detailed in court documents, throughout the scheme Owens abused and misused his position and employment at AFGE in order to seek and obtain illegal monetary gains at the expense of the labor organization. For example, Owens submitted false and fraudulent check requests for payments related to services, such as photography and videography, that were purportedly provided by alleged vendors. As a result of these submissions, AFGE funds were subsequently disbursed. These check requests listed fictitious dollar amounts for fake work assignments supposedly performed by vendors, who were not actually hired by AFGE. In fact, the purported vendors who allegedly performed the fake work assignments were really friends and associates of Owens, who he recruited as part of his illegal scheme.
As Secretary to the Director of Communications, Owens also had access to an Amazon account and a union credit card linked to it. During the scheme, Owens also used this account and linked credit card to embezzle items and make dozens of unauthorized personal purchases, including clothing, shoes, jewelry, and party supplies. Additionally, Owens used union credit cards to purchase items from other online retailers for personal use, including T-shirts for his online business, microphones, and flowers.
To avoid detection and cover up the fraud, Owens provided falsified signatures, fraudulent expense vouchers, and altered receipts for these items. However, the investigation revealed photos of Owens, his family members, and associates wearing the clothing purchased on Amazon with the union credit card on social media accounts belonging to the defendant.
This investigation was conducted by the FBI’s Washington Field Office and the U.S. Department of Labor, Office of Labor-Management Standards. The prosecution is being handled by Assistant U.S. Attorney Anne P. McNamara of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Assistant U.S. Attorney Emily A. Miller and Paralegal Specialists Amanda Rohde and Mariela Andrade.
Multiple Defendants Sentenced in a Scheme to “Straw Purchase” FirearmsRead the Press Release
BIRMINGHAM, Ala. – Today, Chief U.S. District Judge L. Scott Coogler sentenced one of six defendants charged in a scheme to “straw purchase” firearms, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Explosives, and Firearms Special Agent in Charge Mickey French.
“This kind of criminal activity escalates violent crime in our communities,” U.S. Attorney Escalona said. “We will continue to work with our law enforcement partners to remove illegal firearms from our neighborhoods before they can be used in a homicide or other violent crime.”
“A person violates federal law the moment that they purchase and transfer a firearm to an individual who cannot legally possess them,” SAC French said. “The ATF is committed to working with our local, state, and federal partners to investigate and prosecute the “straw purchasers” in conjunction with the individuals who receive these firearms and use them to commit violent criminal acts.”
Freddie Ward, 23, of Uniontown, was sentenced to 15 months in prison. Ward pleaded guilty to giving a false statement during the purchase of a firearm in October 2021.
On April 28th, Dayquan A. Haley, 23, of Boston, Massachusetts, was sentenced to 18 months in prison. Haley pleaded guilty to conspiracy to falsify information on firearm acquisition records in December 2021.
On March 30th, Michael Tiree Coleman, 24, of Tuscaloosa, was sentenced to 5 years’ probation. Coleman pleaded guilty to giving a false statement during the purchase of a firearm in October 2021.
Darius Marquise Collins, 25, of Boston Massachusetts, pleaded guilty to giving a false statement during the purchase of a firearm in March 2022.
Jeremy Bernard Brown, 30, of Tuscaloosa, pleaded to giving a false statement during the purchase of a firearm in August 2021.
Demarcus Montez Walker, 25, of Tuscaloosa, pleaded guilty to giving a false statement during the purchase of a firearm in July 2021.
According to court documents, ATF Birmingham Field Division received a referral from ATF's Crime Gun Intelligence Center about multiple firearms purchases from Three Factors Unlimited, Inc., doing business as Wade's Pawn Shop, in Tuscaloosa, Alabama. Between November 2019 and March 2021, Walker, Brown, and Coleman – the straw purchasers – purchased approximately 42 handguns from Wade's Pawn Shop. Coleman also purchased three firearms from Blue Bore Armory in Demopolis, Alabama. During that time, Haley, Collins, and Ward partnered with Walker, Brown, and Coleman, who were permitted to buy guns from licensed dealers in Alabama. As Massachusetts residents, Haley and Collins could not buy handguns from licensed dealers in Alabama and take them back to Massachusetts. The straw purchasers falsified documents by specifically stating that they were the actual buyers when in fact they were buying the firearms for Haley, Collins, and Ward. Haley and Collins provided the straw purchasers with funds to buy firearms and also paid them for purchasing the firearms.
On March 11, 2020, a traffic stop was conducted in South Carolina in which Haley was in possession of several firearms, 14 of which were purchased by Walker at Wade's Pawn Shop. Several of the other firearms that Walker purchased were recovered by law enforcement in Boston, Massachusetts. One of the firearms purchased, by Walker in Alabama on November 18, 2019, was used in a homicide in Boston, Massachusetts on April 15, 2020.
On July 20, 2020, Uniontown police officers encountered Collins and Haley, at the E&Z Event Center in Uniontown, Alabama. Collins and Haley were in possession of multiple firearms which had been purchased by Brown at Wade’s Jewelry and Pawn in July 2020.
These cases are a part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Alcohol, Tobacco, Firearms and Explosives’ campaign "Don’t Lie for the Other Guy" is a part of PSN aimed at reducing firearm “straw purchases”, the illegal purchase of a firearm by one person for another, and to educate would-be straw purchasers of the penalties of knowingly participating in an illegal firearm purchase. More information about the campaign can be found at: www.dontlie.org.
The ATF investigated the case. Assistant U.S. Attorney Kristy Peoples and Darius Greene are prosecuting the cases.
Mineral County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Anthony Coleman, of Piedmont, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Coleman, 47, pleaded guilty to one count of “Unlawful Possession of Firearm.” Coleman, a person prohibited from having a firearm because of a prior conviction, admitted to having three rifles and three pistols in November 2021 in Mineral County.
Coleman faces up to 10 years of incarceration and a fine of up to $250,000 Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Meth Dealers Who Plotted to Kill DEA Agent Plead GuiltyRead the Press Release
Two drug traffickers who plotted to assassinate a DEA task force office have plead guilty, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Manuel Gomez-Garcia, 35, and Jorge Humberto Velazco Larios, 29, were indicted in the summer of 2020. Mr. Gomez pleaded guilty to possession with intent to distribute methamphetamine in September 2020 and to conspiracy to use interstate commerce in the commission of murder-for-hire in March 2022. Mr. Larios pleaded guilty to conspiracy to possess with the intent to distribute methamphetamine, possession of methamphetamine with the intent to distribute, and conspiracy to use interstate commerce in the commission of murder-for-hire today.
Both defendants, believed to be affiliated with Cartel Jalisco Nueva Generation (CJNG), one of Mexico’s most violent and powerful drug cartels – admitted to plotting a hit on a DEA task force office assigned to their drug case.
“These defendants plotted to murder an officer who routinely risks his own safety to rid our streets of dangerous drugs,” said U.S. Attorney Chad Meacham. “The Justice Department will not tolerate retaliatory violence against its own. We are prepared to move mountains to protect the men and women who protect us.”
“DEA Special Agents and Task Forces Officers know the inherent risks they face when they go out to enforce our mission, disrupt criminal networks, and curb the flow of drugs from reaching our neighborhoods. Drug related violence affects us all and there is nothing more serious than the intent to take a person’s life,” said Eduardo A. Chávez, Special Agent in Charge of DEA’s Dallas Field Division. “Through our drug investigation and the tenacious efforts from our colleagues at FBI Dallas to hold these individuals accountable, we are pleased that their admission of guilt means they will now pay for their crimes.”
“Last year 73 law enforcement officers were feloniously killed in line of duty incidents. Those statistics are a stark reminder that officers face a multitude of threats every day,” said FBI Dallas Special Agent in Charge Matthew DeSarno. “The FBI is committed to keeping our law enforcement partners safe. In this instance, a dangerous act was prevented and ensured that a law enforcement officer made it home safely.”
According to court documents, while behind bars on drug charges, Mr. Gomez told another individual at the jail he wanted to “off” the officer. He set the budget at $20,000: $5,000 up front and $15,000 following the hit.
In a subsequent phone call with an individual outside the jail, Mr. Gomez confirmed he wanted the DEA Task Force Officer murdered.
Mr. Gomez then called his girlfriend and his sister in Mexico to arrange for delivery of the murder-for-hire fee. He advised them that the co-defendant in his drug case, Mr. Larios, would also contribute to the up-front payment.
Meanwhile, Mr. Larios, also behind bars, called an unindicted co-conspirator and asked him to deliver money to a workshop “so we can take care of something.”
On June 11, the unindicted co-conspirator, referred to in court documents by the nickname “Roberto,” made a $3,000 “down payment” for the murder of the agent. Five days later, he made an additional $2,000 payment on behalf of Mr. Gomez and Mr. Larios.
Mr. Gomez once again called his contact outside the jail. He described the DEA agent he wanted killed, then instructed the individual to call his girlfriend and sister, who he said had documents that could help the hit man figure out the name of the target.
Shortly thereafter, his sister received a photo of DEA task force officer “T.H.” via the messaging app, WhatsApp. The following day, she flashed the image during a jailhouse video call with Mr. Gomez.
“Yes, that’s him,” Mr. Gomez told her, smiling.
The defendants now face up to life in federal prison.
The U.S. Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, the Texas Department of Public Security, the U.S. Marshals Service, and ICE Enforcement & Removal Operations investigated the drug case with the assistance of the Midlothian Police Department and Ellis County Sheriff’s Office. The FBI’s Dallas Field Office - Violent Crime Task Force investigated the murder-for-hire in close collaboration with the DEA. The Johnson County Sheriff’s Office, U.S. Marshals Service, and U.S. Customs & Border Protection assisted. Assistant U.S. Attorneys PJ Meitl and Travis Elder prosecuted the drug case. Assistant U.S. Attorney Rick Calvert is prosecuting the murder-for-hire.
Maryland man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Kevin William Medrano, of Hagerstown, Maryland, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Medrano, 27, pleaded guilty to one count of “Unlawful Possession of Firearm.” Medrano, a person prohibited from having a firearm because of a prior conviction, admitted to having a 9mm pistol in January 2021 in Berkeley County.
Medrano faces up to 10 years of incarceration and a fine of up to $250,000 Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Man Pleads Guilty to Making Threats Against the National Security Agency and Its EmployeesRead the Press Release
Baltimore, Maryland – Ryan Matthew Conlon, age 38, of Halethorpe, Maryland, pleaded guilty yesterday to making interstate threatening communications concerning the National Security Agency (NSA) and its employees. After accepting his guilty plea, U.S. District Judge Stephanie A. Gallagher sentenced Conlon to six months of home detention as part of three years’ probation, which is the sentence recommended by Conlon and the government.
The guilty plea and sentence were announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his guilty plea, Conlon has a history of making threatening communications to government agencies, sometimes implicating other individuals as the party making the threat. In early 2021, he was behind several communications threatening to blow up the NSA and shoot government employees. FBI agents investigated and identified Conlon as the person behind the threats. Agents confronted Conlon, who admitted to his conduct, acknowledged that it was criminal, and agreed that he would stop making such calls.
However, on December 29, 2021, the FBI received a submission on the FBI Tipline in Washington, D.C. stating that a specific person will blow up NSA Headquarters; had built a bomb in his basement; and will murder the NSA Director. The caller continued that the person would shoot up all federal NSA employees and was a danger to NSA and a national security threat. The caller stated that the individual and his accomplice had been plotting to blow up NSA Headquarters for a month and planned to attack on New Years Day.
The FBI was able to identify the telephone number from which the call was made. The number was traced to Conlon.
On December 31, 2021, the FBI received another submission on the FBI Tipline in Washington, D.C. warning that a truck with bombs inside was ready to go to the White House and that there was child pornography in the truck, as well. The caller provided the Maryland license number of the truck.
Again, the FBI traced the origin of this communication to Conlon. When Conlon was later confronted and arrested, he acknowledged that he might have made the threatening communications which, in fact, he had. Conlon sent the communications with the intent to threaten the NSA Director and NSA employees, or with the knowledge that the communications would be viewed as a threat.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney P. Michael Cunningham, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Manchester Man Sentenced to 70 Months for Drug Trafficking and Firearm OffensesRead the Press Release
CONCORD – Christopher Yule, 30, of Manchester, was sentenced to 70 months in federal prison for drug trafficking and possessing a firearm in furtherance of drug trafficking, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on April 29, 2020, Manchester police detectives received information that a female would be traveling from Manchester to Lawrence, Massachusetts to obtain a significant amount of drugs for redistribution in New Hampshire. Surveillance officers observed her drive to Lawrence and park in an area known as a distribution “hot spot.” A vehicle registered to Yule parked close by and turned off its lights. Within a minute, the cars departed. Surveillance units followed both vehicles.
When Yule’s vehicle returned to Manchester, it was stopped by the police for a traffic violation and suspicion of drug activity. Jacob Brady was the driver of the vehicle and Yule was a passenger. Yule and Brady both engaged in furtive movements within the vehicle as officers approached. Both individuals were instructed to step out of the vehicle. Brady explained that he and Yule traveled to Lawrence so Yule could meet with his drug source and purchase drugs. He further disclosed the drugs were in the glove compartment.
During the encounter, an officer observed through the window a tied-off glassine baggie of suspected fentanyl protruding from a side compartment area. Yule consented to a search of the vehicle and officers located over 78 grams of fentanyl and over six grams of cocaine base (crack).
On March 27, 2021, Hooksett police officers responded to a call reporting a male “passed out” in a rental van in a hotel parking lot known as a “hot spot” for drug activity in Hooksett. The caller stated a needle and firearm were visible in the vehicle. Officers found Yule slumped over in the driver’s seat with a needle and tourniquet visible next to him. Officers also saw a firearm in the open driver’s door compartment. After securing the firearm, they awakened Yule.
Officers learned that Yule was a convicted felon and he was placed under arrest for being a felon in possession of a firearm. During a search incident to arrest, officers located syringes in Yule’s pockets, $3,170 in his wallet and two small bags of suspected drugs, which Yule identified as “crack.”
On March 30, 2021, pursuant to a search warrant, officers searched the van and found over 58 grams of methamphetamine and over five grams of fentanyl. They also located holsters, loaded 9mm magazines, and other firearm accessories.
Yule previously pleaded guilty on January 7, 2022. Brady previously pleaded guilty on January 7, 2022, and was sentenced to 84 months in federal prison on April 15, 2022.
“By trafficking in methamphetamine and fentanyl, this defendant was endangering the community,” said U.S. Attorney Young. “The dangerous nature of his drug trafficking was enhanced not only by his possession of a gun, but by possessing a gun after having been convicted of a felony. As this sentence demonstrates, we are working closely with our law enforcement partners to protect public safety and hold armed drug traffickers accountable for their illegal conduct.”
This matter was investigated by the Manchester Police Department and the Hooksett Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Lorton Man Sentenced for Distributing Fentanyl Causing DeathRead the Press Release
ALEXANDRIA, Va. – A Lorton man was sentenced today to 22 years in prison for distributing fentanyl that resulted in the death of a young woman.
According to court documents, Julian Velasquez, 36, distributed counterfeit Xanax containing fentanyl to E.M., which caused E.M.’s death by accidental fentanyl intoxication. On August 8, 2020, E.M. flew from California to visit Velasquez and was staying with Velasquez at his residence. Sometime during the late evening hours of August 8, 2020, or the morning of August 9, 2020, E.M. took a pressed Xanax pill laced with fentanyl provided by Velasquez. On August 9, 2020, Velasquez found E.M. unresponsive but he did not call 911 or seek medical assistance for E.M. Velasquez instead called his friend and drug customer, Enoel Comsti, 27, of Vienna, to assist in removing evidence of drug use and drug distribution from the crime scene at Velasquez’s residence.
Prior to Comsti’s arrival, Velasquez sold heroin to another drug customer at his residence. Velasquez collected evidence of drug use and distribution, to include drug paraphernalia and narcotics, from his residence and Comsti drove him to a storage unit so that Velasquez could conceal the evidence from authorities prior to reporting the overdose death of E.M. Comsti’s vehicle became inoperable prior to arrival at the storage unit, and Velasquez continued on foot to the storage unit prior to returning to his residence without Comsti. Velasquez distributed heroin to Comsti in exchange for Comsti’s assistance in removing and concealing evidence of the drug overdose from the residence. After Velasquez returned to his residence, he called 911 to request medical assistance for E.M. During the 911 call, Velasquez made false statements to emergency medical services regarding E.M.’s current condition, what had transpired, and Velasquez denied the possibility of E.M. suffering from a drug overdose. Emergency medical services arrived at Velasquez’s residence and found E.M. deceased in Velasquez’s bedroom.
In addition to admitting to causing E.M.’s death, Velasquez also admitted to distributing narcotics to several other individuals who, after using the drugs distributed by Velasquez, suffered drug overdoses. Those additional overdoses included several non-fatal overdoses, as well as the fatal overdoses of M.S. in 2017 and K.M. in 2018. All of the other overdoses occurred prior to the distribution of fentanyl to E.M. that caused her fatal overdose.
Comsti pleaded guilty to aiding and abetting tampering with evidence and was sentenced to 21 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after sentencing by U.S. District Judge Rossie D. Alston.
Assistant U.S. Attorneys Ryan Bredemeier and Bibeane Metsch prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-287 and Case No. 1:21-cr-243.
Little Eagle Man Sentenced to Life on Multiple CountsRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Little Eagle, South Dakota, man convicted of Aggravated Sexual Abuse of a Child, Felony Sex Offense Against a Minor While Required to Register as a Sex Offender, and Tampering with a Witness, was sentenced on May 23, 2022, by U.S. District Court Judge Charles B. Kornmann.
Kimo John Little Bird, Sr., age 40, was sentenced to life in federal prison on the Aggravated Sexual Abuse of a Child conviction. An additional consecutive sentence of 10 years in prison was imposed for the Felony Sex Offense Against a Minor While Required to Register as a Sex Offender. Five years in prison was imposed for the witness tampering count, to be served concurrently to the other counts. The Court also imposed a special assessment to the Federal Crime Victims Fund in the amount of $300.
Little Bird was indicted by a federal grand jury on March 9, 2020. He was found guilty by a jury on November 18, 2021.
Little Bird was convicted of Sexual Abuse of a Minor in September 2006. As a result of this conviction, he is required to register under the Sex Offender Registration and Notification Act. In 2016, Little Bird sexually abused an 11-year-old girl with whom he was residing. Prior to trial, Little Bird contacted multiple potential witnesses in an effort to manipulate and corruptly persuade the girl to recant her statement.
“The criminal actions by this defendant were egregious. The federal penalties for child sexual abuse offenses are severe for a reason, and the district court’s sentence ensures that this defendant will never again have the opportunity to victimize children or otherwise harass vulnerable citizens,” said U.S. Attorney Ramsdell.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Office of Justice Services – Standing Rock Agency. Assistant U.S. Attorneys Jay Miller and Troy R. Morley prosecuted the case.
Little Bird was immediately turned over to the custody of the U.S. Marshals Service.
Justice Department Statement on the Mass Shooting at Robb Elementary School in Uvalde, TXRead the Press Release
The Justice Department tonight released the following statement from Attorney General Merrick B. Garland:
“Today, another mass shooting has taken the lives of innocent victims, including elementary school children and their teacher. This act of unspeakable violence has devastated an entire community and shaken our country.
“FBI and ATF agents have responded to the scene, and the Justice Department is committed to providing our full support to our law enforcement partners on the ground in Texas and to the Uvalde community.
“We join our fellow Americans in mourning this terrible loss and in their resolve to end this senseless violence.”
Justice Department Secures Settlement of Employment Claim for Air National Guard Reservist Against the Illinois Department of CorrectionsRead the Press Release
The Justice Department announced that it has agreed to settle its complaint against the Illinois Department of Corrections, which alleged that the IDOC violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by failing to properly reemploy Illinois Air National Guard Reservist Roderick Workman in his proper “escalator position” following his return from military service.
“Those who serve in our Armed Forces make incredible sacrifices on behalf of our country and the Justice Department remains committed to enforcing civil rights laws that protect them in their civilian careers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Reservists who leave their jobs to serve our country should not lose employment and advancement opportunities when they return from duty. The department will vigorously enforce USERRA to ensure reservists are placed in their rightful positions.”
In its complaint, the United States alleged that the IDOC failed to properly reemploy Workman as a Correctional Transportation Officer I (CTO I) when he returned from military service in December 2019. USERRA requires employers to reemploy eligible employees returning from military service in their “escalator position,” which is the job it is reasonably certain the employee would have been in had he or she not been called to military service. The United States claimed the CTO I position, which became available during Workman’s military absence, was his escalator position because he was qualified for the position and tried to apply for the position before he left for military duty, and IDOC would have selected Workman had he been there to bid based on his seniority and qualifications.
Under the terms of the consent decree, subject to court approval, the IDOC will pay Workman $9,026.71 in backpay and interest, make changes to its policies, and conduct comprehensive training on USERRA for its employees.
Trial Attorneys Dena Robinson and Hillary Valderrama of the Civil Rights Division’s Employment Litigation Section handled this matter.
The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at www.justice.gov/crt-military/employment-rights-userra and www.justice.gov/servicemembers as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra.
Justice Department Launches Civil Rights Investigation into Kentucky’s Mental Health Service SystemRead the Press Release
The Department of Justice announced today that it has opened an investigation under the Americans with Disabilities Act (ADA) into whether the Commonwealth of Kentucky subjects adults with serious mental illness living in the Louisville/Jefferson County Metro area to unnecessary institutionalization, and serious risk of institutionalization, in psychiatric hospitals. The investigation will examine whether Kentucky unnecessarily segregates people with serious mental illness in psychiatric hospitals and places them at risk of law enforcement encounters by failing to provide integrated community-based mental health services needed to avoid these results.
“When people do not receive the community-based mental health services they need, they often get caught in a cycle of psychiatric hospital stays,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This investigation also seeks to ensure that people with serious mental illness are not unnecessarily brought into contact with law enforcement. The Civil Rights Division is committed to enforcing the ADA so that people with disabilities are able to receive the services they need and qualify for, and that their civil rights are protected.”
“A state must make reasonable accommodations and provide appropriate community-based services to people with disabilities,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “Our office will vigorously enforce the ADA. Our fellow citizens with mental health disabilities deserve nothing less.”
This investigation is separate from the Justice Department’s ongoing pattern or practice investigation into the Louisville/Jefferson County Metro Government (Louisville Metro) and the Louisville Metro Police Department (LMPD). That investigation is examining several issues, including Louisville Metro and LMPD’s systems for responding to people experiencing behavioral health crises. The Special Litigation Section of the Department of Justice’s Civil Rights Division, in Washington, D.C., and the Civil Division of the United States Attorney’s Office for the Western District of Kentucky, in Louisville, are jointly conducting both investigations.
Prior to the announcement, the department informed the offices of Kentucky’s Governor and Attorney General of the investigation’s initiation.
Individuals with relevant information are encouraged to contact the department via email at [email protected] or through the Civil Rights Division’s Civil Rights Portal, available at https://civilrights.justice.gov/.
Additional information about the Civil Rights Division’s ADA enforcement is available on its website at https://www.ada.gov/olmstead/.
Justice Department Launches Civil Rights Investigation into Kentucky’s Mental Health Service SystemRead the Press Release
WASHINGTON — The Department of Justice announced today that it has opened an investigation under the Americans with Disabilities Act (ADA) into whether the Commonwealth of Kentucky subjects adults with serious mental illness living in the Louisville/Jefferson County Metro area to unnecessary institutionalization, and serious risk of institutionalization, in psychiatric hospitals. The investigation will examine whether Kentucky unnecessarily segregates people with serious mental illness in psychiatric hospitals and places them at risk of law enforcement encounters by failing to provide integrated community-based mental health services needed to avoid these results.
“When people do not receive the community-based mental health services they need, they often get caught in a cycle of psychiatric hospital stays,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This investigation also seeks to ensure that people with serious mental illness are not unnecessarily brought into contact with law enforcement. The Civil Rights Division is committed to enforcing the ADA so that people with disabilities are able to receive the services they need and qualify for, and that their civil rights are protected.”
“A state must make reasonable accommodations and provide appropriate community-based services to people with disabilities,” said United States Attorney for the Western District of Kentucky, Michael A. Bennett. “Our office will vigorously enforce the ADA. Our fellow citizens with mental health disabilities deserve nothing less.”
This investigation is separate from the Justice Department’s ongoing pattern or practice investigation into the Louisville/Jefferson County Metro Government (Louisville Metro) and the Louisville Metro Police Department (LMPD). That investigation is examining several issues, including Louisville Metro and LMPD’s systems for responding to people experiencing behavioral health crises. The Special Litigation Section of the Department of Justice’s Civil Rights Division, in Washington, D.C., and the Civil Division of the United States Attorney’s Office for the Western District of Kentucky, in Louisville, are jointly conducting both investigations.
Prior to the announcement, the department informed the offices of Kentucky’s Governor and Attorney General of the investigation’s initiation.
Individuals with relevant information are encouraged to contact the Department via email at [email protected] or through the Civil Rights Division’s Civil Rights Portal, available at https://civilrights.justice.gov/.
Additional information about the Civil Rights Division’s ADA enforcement is available on its website at https://www.ada.gov/olmstead/.
Jefferson County man admits to failure to register chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jordan Paul Plotner, of Charles Town, West Virginia, has admitted to a failure to register charge, United States Attorney William Ihlenfeld announced.
Plotner, 33, pleaded guilty today to one count of “Failure to Register.” Plotner, a person required to register as a sex offender because of a prior conviction, admitted to traveling across state lines without updating his information in the sex offender registry from April to November 2021 in Jefferson County and elsewhere.
Plotner is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Eleanor F. Hurney is prosecuting the case on behalf of the government. The United States Marshals Service investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jackson Man Sentenced to over 14 ½ Years in Prison for Conspiracy to Possess with Intent to Distribute Cocaine BaseRead the Press Release
Jackson, Miss. – A Jackson man was sentenced to 175 months in federal prison for conspiracy to possess with intent to distribute cocaine base, also referred to as “crack”, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.
According to court documents, Kenneth Lofton, 44, and his co-defendants negotiated and conducted the sale of cocaine base in the Jackson area in January 2020. Surveillance, confidential source information and additional intercepted communications also revealed that Lofton and his co-defendants distributed various quantities of other controlled substances, including cocaine, methamphetamine and marijuana.
In addition to his prison sentence, Lofton was ordered to pay a $1,500 fine.
Lofton pled guilty on June 22, 2021, in U.S. District Court in Jackson.
The case is the result of an extensive investigation, dubbed “Hailstorm,” which began as an operation targeting illegal drug trafficking in the Jackson, Mississippi area. “Hailstorm” 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.
The case was investigated by the Federal Bureau of Investigation, the Jackson Police Department and the Ridgeland Police Department. The case was prosecuted by Assistant United States Attorney Keesha Middleton.
Illegal Possession of Firearm Sends Convicted Felon to Federal Prison for 10 YearsRead the Press Release
Memphis, TN- Amiri Johnson, 28, has been sentenced to serve 120 months in federal prison for possession of a stolen firearm. Joseph C. Murphy, Jr., United States Attorney, announced the sentence today.
According to information presented in court, on March 12, 2019, at approximately 8:00am, detectives with the Multi-Agency Gang Unit and the Shelby County Sheriff’s Office Apprehension Team executed a search warrant at an address on E. Belle Haven Road for Amiri Johnson. Johnson was wanted for aggravated burglary and robbery. Detectives were allowed into the residence by the homeowner who gave consent to search the home.
During the search, detectives found a Smith & Wesson .40 caliber pistol underneath a mattress in the master bedroom. Johnson was discovered hiding inside a compartment of cabinets and was immediately placed into custody.
The gun recovered was loaded with six live rounds of .40 caliber ammunition and had been reported stolen during a residential burglary. Johnson claimed ownership of the gun. In 2013, Johnson was convicted on two counts of aggravated burglary, and in 2016, he was convicted for robbery. As a result of his felony convictions, Johnson is prohibited by federal law from possessing firearms and ammunition.
On May 18, 2022, United States District Judge Mark S. Norris sentenced Johnson to 120 months in federal prison to be followed by three years of supervised release. There is no parole in the federal system.
This case was investigated by Project Safe Neighborhoods (PSN), the Memphis Police Department, the Multi-Gang Unit, Shelby County Sheriff’s Office and the Bureau of Tobacco, Firearms and Explosives (ATF). The PSN initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement.
Assistant United States Attorney Raney Irwin prosecuted this case on behalf of the United States.
###Hartford Man Sentenced to Federal Prison for Fentanyl Distribution and Firearm Possession OffensesRead the Press Release
Vanessa Roberts Avery, United States Attorney for the District of Connecticut, announced that MAICO TURELL, 49, of Hartford, was sentenced today by U.S. District Judge Omar A. Williams in Hartford to 30 months of imprisonment, followed by three years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, in December 2020, law enforcement made two controlled purchases of distribution quantities of heroin/fentanyl from Turell at his Franklin Avenue residence. On December 22, 2020, a court-authorized search of Turell’s residence revealed a loaded 9mm semiautomatic firearm, a 9mm magazine and additional 9mm ammunition, and $17,980 in cash. Turell arrived at his home after the search was completed, and a search of his person revealed approximately 250 bags of heroin/fentanyl.
Turell was arrested on a federal criminal complaint on February 3, 2021. At the time of his arrest, investigators found additional narcotics on his person and in his car.
Turell’s criminal history includes state felony convictions for robbery, burglary and drug offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On February 16, 2022, Turell pleaded guilty to one count of distribution of fentanyl, one count of possession with intent to distribute fentanyl, and one count of unlawful possession of a firearm by a felon.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Patrick F. Caruso.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Godfather of Black Stone Gorilla Gang Sentenced to over 32 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ALEXANDER ARGUEDAS, a/k/a “Reckless,” was sentenced today to 32 years and 6 months in prison in connection with his leadership of the Black Stone Gorilla Gang, a violent street gang that operated in New York City and elsewhere, including for his participation in the December 9, 2012 murder of Gary Rodriguez, narcotics trafficking, firearms offenses, and other acts of violence. On February 8, 2022, ARGUEDAS pled guilty to racketeering conspiracy, narcotics conspiracy, and a firearms offense. U.S. District Judge Jesse M. Furman imposed today’s sentence.
U.S. Attorney Damian Williams said: “Alexander Arguedas was one of the Godfathers of the Black Stone Gorilla Gang, a violent Bloods gang that flooded New York City neighborhoods with drugs, assaults, slashings, and shootings. He groomed young men to become drug dealers, shooters, and gang members. He murdered Gary Rodriguez in cold blood in December 2012, and he went on to commit a multitude of other heinous acts of violence. Today’s lengthy sentence sends an important message to gang members who commit crimes that they will be apprehended and prosecuted to the fullest extent of the law.”
As alleged in the Indictment and based on statements made in open court:
ALEXANDER ARGUEDAS, a/k/a “Reckless,” was previously one of the Godfathers of the Black Stone Gorilla Gang (“BSGG”), a racketeering enterprise that operated principally in the New York City metropolitan area and in the jails and prisons of New York City and the State of New York. In order to enrich the enterprise, preserve and protect the power of the enterprise, and enhance its criminal operations, BSGG members and associates committed, conspired, attempted, and threatened to commit acts of violence, including murder and assaults; distributed and possessed with intent to distribute narcotics; committed robberies; engaged in bank fraud and wire fraud; and obtained, possessed, and used firearms. BSGG members also attempted to evade prosecution by law enforcement authorities through acts of intimidation and violence against potential witnesses to crimes committed by the gang. ARGUEDAS accepted responsibility for participating in a conspiracy to distribute quantities of cocaine, heroin, and cocaine base, and for using and carrying firearms in furtherance of drug trafficking. ARGUEDAS also participated in the following acts of violence, among others:
On December 9, 2012, ARGUEDAS shot and killed Gary Rodriguez, 46, in the vicinity of 3089 Decatur Avenue in the Bronx.
On September 5, 2015, ARGUEDAS assaulted another inmate while in the custody of the New York State Department of Corrections, causing the victim to lose consciousness.
Between 2017 and 2018, ARGUEDAS got into a violent dispute with another BSGG member (“Victim-1”) about who would serve as a Godfather of the gang. As a result of this conflict, in or around the Summer of 2018, ARGUEDAS ordered another BSGG member to fire shots at Victim-1 during a BSGG meeting in a public park in the vicinity of Olinville Avenue and East Gun Hill Road in the Bronx, New York.
On August 27, 2018, ARGUEDAS ordered co-defendant JAHVONNE CHAMBERS, a/k/a “JV”, who was incarcerated in the New York City Department of Corrections, to use a scalpel to slash a rival gang member housed in the same facility (“Victim-2”).
On November 12, 2019, ARGUEDAS and co-defendant TYERANCE MICKEY, a/k/a “Hoodlum,” participated in a brutal assault of a disfavored BSGG member (“Victim-3”). During the assault, ARGUEDAS placed a plastic bag over Victim-3’s head in an attempt to suffocate Victim-3, and MICKEY hit Victim-3 over the head with a chair. As a result of the assault, Victim-3 suffered a broken arm and substantial bruising to Victim-3’s face and body.
* * *
In addition to his prison term, ARGUEDAS, 32, of the Bronx, New York, was sentenced to five years of supervised release.
Mr. Williams praised the outstanding investigative work of the Drug Enforcement Administration, Homeland Security Investigations, the Special Agents of the U.S. Attorney’s Office for the Southern District of New York, the New York City Police Department, and the New York City Department of Corrections.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Andrew K. Chan, Brandon D. Harper, Emily A. Johnson, Danielle R. Sassoon and Special Assistant United States Attorney Jaclyn M. Wood are in charge of the prosecution.
Gloversville Man Sentenced to 84 Months for Drug and Firearm ConvictionsRead the Press Release
ALBANY, NEW YORK – Kent Tucker, age 25, of Gloversville, New York, was sentenced today to 84 months in prison for possessing and intending to distribute methamphetamine and cocaine base, and possessing a firearm in furtherance of drug trafficking.
The announcement was made by United States Attorney Carla B. Freedman and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
As part of his guilty plea, Tucker admitted that on August 21, 2020, he possessed methamphetamine pills and cocaine base with the intent to distribute them and possessed a loaded, stolen firearm to protect his drugs and drug proceeds from others. Tucker has two prior felony convictions: a 2018 conviction for burglary in the third degree, and a 2014 conviction for attempted common-law robbery.
United States District Judge Mae A. D’Agostino also imposed a 3-year term of supervised release, which will start after Tucker is released from prison.
This case was investigated by the ATF and Gloversville Police Department, with assistance from the New York State Police and Homeland Security Investigations, and was prosecuted by Assistant United States Attorney Alexander Wentworth-Ping.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Glencore Entered Guilty Pleas to Foreign Bribery and Market Manipulation SchemesRead the Press Release
Glencore International A.G. (Glencore) and Glencore Ltd., both part of a multi-national commodity trading and mining firm headquartered in Switzerland, each pleaded guilty today and agreed to pay over $1.1 billion to resolve the government’s investigations into violations of the Foreign Corrupt Practices Act (FCPA) and a commodity price manipulation scheme.
These guilty pleas are part of coordinated resolutions with criminal and civil authorities in the United States, the United Kingdom, and Brazil.
“The rule of law requires that there not be one rule for the powerful and another for the powerless; one rule for the rich and another for the poor,” said Attorney General Merrick B. Garland. “The Justice Department will continue to bring to bear its resources on these types of cases, no matter the company and no matter the individual.”
The charges in the FCPA matter arise out of a decade-long scheme by Glencore and its subsidiaries to make and conceal corrupt payments and bribes through intermediaries for the benefit of foreign officials across multiple countries. Pursuant to a plea agreement, Glencore has agreed to a criminal fine of more than $428 million and to criminal forfeiture and disgorgement of more than $272 million. Glencore has also agreed to retain an independent compliance monitor for three years. The department has agreed to credit nearly $256 million in payments that Glencore makes to resolve related parallel investigations by other domestic and foreign authorities.
Separately, Glencore Ltd. admitted to engaging in a multi-year scheme to manipulate fuel oil prices at two of the busiest commercial shipping ports in the U.S. As part of the plea agreement, Glencore Ltd. agreed to pay a criminal fine of over $341 million, pay forfeiture of over $144 million, and retain an independent compliance monitor for three years. The department has agreed to credit up to one-half of the criminal fine and forfeiture against penalties Glencore Ltd. pays to the Commodity Futures Trading Commission (CFTC) in a related, parallel civil proceeding.
Sentencing has been scheduled in the market manipulation case for June 24, and a control date for sentencing in the FCPA case has been set for Oct. 3.
“Glencore’s guilty pleas demonstrate the Department’s commitment to holding accountable those who profit by manipulating our financial markets and engaging in corrupt schemes around the world,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “In the foreign bribery case, Glencore International A.G. and its subsidiaries bribed corrupt intermediaries and foreign officials in seven countries for over a decade. In the commodity price manipulation scheme, Glencore Ltd. undermined public confidence by creating the false appearance of supply and demand to manipulate oil prices.”
“The scope of this criminal bribery scheme is staggering,” said U.S. Attorney Damian Williams for the Southern District of New York. “Glencore paid bribes to secure oil contracts. Glencore paid bribes to avoid government audits. Glencore bribed judges to make lawsuits disappear. At bottom, Glencore paid bribes to make money – hundreds of millions of dollars. And it did so with the approval, and even encouragement, of its top executives. The criminal charges filed against Glencore in the Southern District of New York are another step in making clear that no one – not even multinational corporations – is above the law.”
“Glencore’s market price manipulation threatened not just financial harm, but undermined participants’ faith in the commodities markets’ fair and efficient function that we all rely on,” said U.S. Attorney Vanessa Roberts Avery of the District of Connecticut. “This guilty plea, and the substantial financial penalty incurred, is an appropriate consequence for Glencore’s criminal conduct, and we are pleased that Glencore has agreed to cooperate in any ongoing investigations and prosecutions relating to their misconduct, and to strengthen its compliance program company-wide. I thank both our partners at the U.S. Postal Inspection Service for their hard work and dedication in investigating this sophisticated set of facts and unraveling this scheme, and the Fraud Section, with whom we look forward to continuing our fruitful partnership of prosecuting complex financial and corporate criminal cases.”
“Today’s guilty pleas by Glencore entities show that there is no place for corruption and fraud in international markets,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Glencore engaged in long-running bribery and price manipulation conspiracies, ultimately costing the company over a billion dollars in fines. The FBI and our law enforcement partners will continue to investigate criminal financial activities and work to restore the public’s trust in the marketplace.”
“The idea of fair and honest trade is at the bedrock of American commerce. It is insult to our shared traditions and values when individuals and corporations use their power, wealth, and influence to stack the deck unfairly in their own favor,” said Chief Postal Inspector Gary Barksdale of the U.S. Postal Inspection Service. “The resulting guilty plea by Glencore Limited demonstrates the tenacity of the U.S. Postal Inspection Service and its law enforcement partners in holding criminals accountable who try to enrich themselves by undermining the forces of supply and demand.”
The FCPA Case
According to admissions and court documents filed in the Southern District of New York, Glencore, acting through its employees and agents, engaged in a scheme for over a decade to pay more than $100 million to third-party intermediaries, while intending that a significant portion of these payments would be used to pay bribes to officials in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela, and the Democratic Republic of the Congo (DRC).
Between approximately 2007 and 2018, Glencore and its subsidiaries caused approximately $79.6 million in payments to be made to intermediary companies in order to secure improper advantages to obtain and retain business with state-owned and state-controlled entities in the West African countries of Nigeria, Cameroon, Ivory Coast, and Equatorial Guinea. Glencore concealed the bribe payments by entering into sham consulting agreements, paying inflated invoices, and using intermediary companies to make corrupt payments to foreign officials. For example, in Nigeria, Glencore and Glencore’s U.K. subsidiaries entered into multiple agreements to purchase crude oil and refined petroleum products from Nigeria’s state-owned and state-controlled oil company. Glencore and its subsidiaries engaged two intermediaries to pursue business opportunities and other improper business advantages, including the award of crude oil contracts, while knowing that the intermediaries would make bribe payments to Nigerian government officials to obtain such business. In Nigeria alone, Glencore and its subsidiaries paid more than $52 million to the intermediaries, intending that those funds be used, at least in part, to pay bribes to Nigerian officials.
In the DRC, Glencore admitted that it conspired to and did corruptly offer and pay approximately $27.5 million to third parties, while intending for a portion of the payments to be used as bribes to DRC officials, in order to secure improper business advantages. Glencore also admitted to the bribery of officials in Brazil and Venezuela. In Brazil, the company caused approximately $147,202 to be used, at least in part, as corrupt payments for Brazilian officials. In Venezuela, Glencore admitted to conspiring to secure and securing improper business advantages by paying over $1.2 million to an intermediary company that made corrupt payments for the benefit of a Venezuelan official.
In July 2021, a former senior trader in charge of Glencore’s West Africa desk for the crude oil business pleaded guilty to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering.
Under the terms of the plea agreement, which remains subject to court approval, Glencore pleaded guilty to one count of conspiracy to violate the FCPA, agreed to a criminal fine of $428,521,173, and agreed to criminal forfeiture and disgorgement in the amount of $272,185,792. Glencore also had charges brought against it by the U.K.’s Serious Fraud Office (SFO) and reached separate parallel resolutions with the Brazilian Ministério Público Federal (MPF) and the CFTC. Under the terms of the plea agreement, the department has agreed to credit nearly $256 million in payments that the company makes to the CFTC, to the court in the U.K., as well as to authorities in Switzerland, in the event that the company reaches a resolution with Swiss authorities within one year.
The department reached its agreement with Glencore based on a number of factors, including the nature, seriousness, and pervasiveness of the offense conduct, which spanned over a 10-year period, in numerous countries, and involved high-level employees and agents of the company; the company’s failure to voluntarily and timely disclose the conduct to the department; the state of Glencore’s compliance program and the progress of its remediation; the company’s resolutions with other domestic and foreign authorities; and the company’s continued cooperation with the department’s ongoing investigation. Glencore did not receive full credit for cooperation and remediation, because it did not consistently demonstrate a commitment to full cooperation, it was delayed in producing relevant evidence, and it did not timely and appropriately remediate with respect to disciplining certain employees involved in the misconduct. Although Glencore has taken remedial measures, some of the compliance enhancements are new and have not been fully implemented or tested to demonstrate that they would prevent and detect similar misconduct in the future, necessitating the imposition of an independent compliance monitor for a term of three years.
The Commodity Price Manipulation Case
According to admissions and court documents filed in the District of Connecticut, Glencore Ltd. operated a global commodity trading business, which included trading in fuel oil. Between approximately January 2011 and August 2019, Glencore Ltd. employees (including those who worked at Chemoil Corporation, which was majority-owned by Glencore Ltd.’s parent company and then fully-acquired in 2014) conspired to manipulate two benchmark price assessments published by S&P Global Platts (Platts) for fuel oil products, specifically, intermediate fuel oil 380 CST at the Port of Los Angeles (Los Angeles 380 CST Bunker Fuel) and RMG 380 fuel oil at the Port of Houston (U.S. Gulf Coast High-Sulfur Fuel Oil). The Port of Los Angeles is the busiest shipping port in the U.S. by container volume. The Port of Houston is the largest U.S. port on the Gulf Coast and the busiest port in the United States by foreign waterborne tonnage.
As part of the conspiracy, Glencore Ltd. employees sought to unlawfully enrich themselves and Glencore Ltd. itself, by increasing profits and reducing costs on contracts to buy and sell physical fuel oil, as well as certain derivative positions that Glencore Ltd. held. The price terms of the physical contracts and derivative positions were set by reference to daily benchmark price assessments published by Platts — either Los Angeles 380 CST Bunker Fuel or U.S. Gulf Coast High-Sulfur Fuel Oil — on a certain day or days plus or minus a fixed premium. On these pricing days, Glencore Ltd. employees submitted orders to buy and sell (bids and offers) to Platts during the daily trading “window” for the Platts price assessments with the intent to artificially push the price assessment up or down.
For example, if Glencore Ltd. had a contract to buy fuel oil, Glencore Ltd. employees submitted offers during the Platts “window” for the express purpose of pushing down the price assessment and hence the price of the fuel oil that Glencore Ltd. purchased. The bids and offers were not submitted to Platts for any legitimate economic reason by Glencore Ltd. employees, but rather for the purpose of artificially affecting the relevant Platts price assessment so that the benchmark price, and hence the price of fuel oil that Glencore Ltd. bought from, and sold to, another party, did not reflect legitimate forces of supply and demand.
Between approximately September 2012 and August 2016, Glencore Ltd. employees conspired to and did manipulate the price of fuel oil bought from, and sold to, a particular counterparty, Company A, through private, bilateral contracts, by manipulating the Platts price assessment for Los Angeles 380 CST Bunker Fuel. Between approximately January 2014 and February 2016, Glencore Ltd. employees also undertook a “joint venture” with Company A, which involved buying fuel oil from Company A at prices artificially depressed by Glencore Ltd.’s manipulation of the Platts Los Angeles 380 CST Bunker Fuel benchmark. Finally, between approximately January 2011 and August 2019, Glencore Ltd. employees conspired to and did manipulate the price of fuel oil bought and sold through private, bilateral contracts, as well as derivative positions, by manipulating the Platts price assessment for U.S. Gulf Coast High-Sulfur Fuel Oil.
A former Glencore Ltd. senior fuel oil trader, Emilio Jose Heredia Collado, of Lafayette, California, pleaded guilty in March 2021 to one count of conspiracy to engage in commodities price manipulation in connection with his trading activity related to the Platts Los Angeles 380 CST Bunker Fuel price assessment. Heredia’s sentencing is scheduled for June 17, 2022.
Glencore Ltd. pleaded guilty, pursuant to a plea agreement, to one count of conspiracy to engage in commodity price manipulation. Under the terms of Glencore Ltd.’s plea agreement regarding the commodity price manipulation conspiracy, which remains subject to court approval, Glencore Ltd. will pay a criminal fine of $341,221,682 and criminal forfeiture of $144,417,203. Under the terms of the plea agreement, the department will credit over $242 million in payments that the company makes to the CFTC. Glencore Ltd. also agreed to, among other things, continue to cooperate with the department in any ongoing investigations and prosecutions relating to the underlying misconduct, to modify its compliance program where necessary and appropriate, and to retain an independent compliance monitor for a period of three years.
A number of relevant considerations contributed to the department’s plea agreement with Glencore Ltd., including the nature and seriousness of the offense, Glencore Ltd.’s failure to fully and voluntarily self‑disclose the offense conduct to the department, Glencore Ltd.’s cooperation with the department’s investigation, and the state of Glencore Ltd.’s compliance program and the progress of its remediation.
Additionally, the CFTC today announced a separate settlement with Glencore and its affiliated companies in connection with its investigation into FCPA and market manipulation conduct in a related, parallel proceeding. Under the terms of the CFTC resolution, Glencore agreed to pay over $1.1 billion, which includes a civil monetary penalty of over $865 million, as well as disgorgement totaling over $320 million.
The FCPA case is being prosecuted by Trial Attorneys Leila Babaeva and James Mandolfo of the Justice Department’s Fraud Section, Trial Attorney Michael Khoo of the Justice Department’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Michael McGinnis and Juliana Murray of the Southern District of New York. The case is being investigated by the FBI.
The Criminal Division’s Office of International Affairs provided significant assistance in this case. The department also expresses its appreciation for the assistance provided by law enforcement authorities in Switzerland, the United Kingdom, Brazil, Cyprus, and Luxembourg
The commodity price manipulation case is being prosecuted by Deputy Chief Avi Perry and Trial Attorneys Matthew F. Sullivan and John J. Liolos of the Justice Department’s Fraud Section, and Assistant U.S. Attorney Jonathan Francis of the District of Connecticut. The case is being investigated by the U.S. Postal Inspection Service.
The Fraud Section is responsible for investigating and prosecuting FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal-fraud/foreign-corrupt-practices-act.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.
Glencore Entered Guilty Pleas to Foreign Bribery and Market Manipulation ConspiraciesRead the Press Release
Merrick B. Garland, the United States Attorney General, Damian Williams, the United States Attorney for the Southern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division, Vanessa Roberts Avery, U.S. Attorney of the District of Connecticut, Luis Quesada, Assistant Director of the Federal Bureau of Investigation’s Criminal Investigative Division, and Gary Barksdale, Chief Postal Inspector of the United States Postal Inspection Service, announced that Glencore International A.G. (Glencore) pled guilty today in the Southern District of New York to violations of the Foreign Corrupt Practices Act (FCPA). In addition, as part of a separate resolution, Glencore Ltd., pled guilty in the District of Connecticut to a commodity price manipulation conspiracy. Together, Glencore and Glencore Ltd., both part of a multi-national commodity trading and mining firm headquartered in Switzerland, agreed to pay over $1.1 billion to resolve the government’s investigations into bribery and commodity and price manipulation. These guilty pleas are part of coordinated resolutions with criminal and civil authorities in the U.S., U.K., and Brazil.
Attorney General Merrick B. Garland said: “The rule of law requires that there not be one rule for the powerful and another for the powerless; one rule for the rich and another for the poor. The Justice Department will continue to bring to bear its resources on these types of cases, no matter the company and no matter the individual.”
U.S. Attorney Damian Williams said: “The scope of this criminal bribery scheme is staggering. Glencore paid bribes to secure oil contracts. Glencore paid bribes to avoid government audits. Glencore bribed judges to make lawsuits disappear. At bottom, Glencore paid bribes to make money—hundreds of millions of dollars. And it did so with the approval, and even encouragement, of its top executives. The criminal charges filed against Glencore in the Southern District of New York are another step in making clear that no one – not even multinational corporations—is above the law.”
Assistant Attorney General Kenneth A. Polite, Jr. said: “Glencore’s guilty pleas demonstrate the Department’s commitment to holding accountable those who profit by manipulating our financial markets and engaging in corrupt schemes around the world. In the foreign bribery case, Glencore International A.G. and its subsidiaries bribed corrupt intermediaries and foreign officials in seven countries for over a decade. In the commodity price manipulation scheme, Glencore Ltd. undermined public confidence by creating the false appearance of supply and demand to manipulate oil prices.”
U.S. Attorney Vanessa Roberts Avery said: “Glencore’s market price manipulation threatened not just financial harm, but undermined participants’ faith in the commodities markets’ fair and efficient function that we all rely on. This guilty plea, and the substantial financial penalty incurred, is an appropriate consequence for Glencore’s criminal conduct, and we are pleased that Glencore has agreed to cooperate in any ongoing investigations and prosecutions relating to their misconduct, and to strengthen its compliance program company-wide. I thank both our partners at the U.S. Postal Inspection Service for their hard work and dedication in investigating this sophisticated set of facts and unraveling this scheme, and the Fraud Section, with whom we look forward to continuing our fruitful partnership of prosecuting complex financial and corporate criminal cases.
FBI Assistant Director Luis Quesada said: “Today’s guilty pleas by Glencore entities show that there is no place for corruption and fraud in international markets. Glencore engaged in long-running bribery and price manipulation conspiracies, ultimately costing the company over a billion dollars in fines. The FBI and our law enforcement partners will continue to investigate criminal financial activities and work to restore the public’s trust in the marketplace.”
USPIS Chief Postal Inspector Gary Barksdale said: “The idea of fair and honest trade is at the bedrock of American commerce. It is insult to our shared traditions and values when individuals and corporations use their power, wealth, and influence to stack the deck unfairly in their own favor. The resulting guilty plea by Glencore Limited demonstrates the tenacity of the U.S. Postal Inspection Service and its law enforcement partners in holding criminals accountable who try to enrich themselves by undermining the forces of supply and demand.”
The FCPA Case
According to the Information filed in the Southern District of New York, statements made in court, as well as other publicly-filed documents in this case:
Glencore, acting through its employees and agents, engaged in a conspiracy for over a decade to pay more than $100 million to third-party intermediaries, while intending that a significant portion of these payments would be used to pay bribes to officials in several countries, including Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela, and the Democratic Republic of the Congo (DRC).
Between approximately 2007 and 2018, Glencore and its subsidiaries caused approximately $79.6 million in payments to be made to intermediary companies in order to secure improper advantages to obtain and retain business with state-owned and state-controlled entities in West Africa, including Nigeria, Cameroon, Ivory Coast, and Equatorial Guinea. Glencore concealed the bribe payments by entering into sham consulting agreements, paying inflated invoices, and using intermediary companies to make corrupt payments to foreign officials. For example, in Nigeria, Glencore and Glencore’s U.K. subsidiaries entered into multiple agreements to purchase crude oil and refined petroleum products from Nigeria’s state-owned and state-controlled oil company. Glencore and its subsidiaries engaged two intermediaries to pursue business opportunities and other improper business advantages, including the award of crude oil contracts, while knowing that the intermediaries would make bribe payments to Nigerian government officials to obtain such business. In Nigeria alone, Glencore and its subsidiaries paid more than $52 million to the intermediaries, intending that those funds be used, at least in part, to pay bribes to Nigerian officials.
In the DRC, Glencore admitted that it conspired to corruptly offer and pay approximately $27.5 million to third parties, while intending for a portion of the payments to be used as bribes to DRC officials, in order to secure improper business advantages. Glencore also admitted to bribery of officials in Brazil and Venezuela. In Brazil, the company caused approximately $147,202 to be used, at least in part, as corrupt payments for Brazilian officials. In Venezuela, Glencore admitted to conspiring to secure improper business advantages by paying over $1.2 million to an intermediary company that made corrupt payments for the benefit of a Venezuelan official.
In July 2021, a former senior trader in charge of Glencore’s West Africa desk for the crude oil business pled guilty to one count of conspiracy to violate the FCPA and one count of conspiracy to commit money laundering.
Under the terms of the plea agreement, which remains subject to Court approval, Glencore pled guilty to one count of conspiracy to violate the FCPA, agreed to a criminal fine of $428,521,173, and acknowledged criminal forfeiture liability in the amount of $272,185,792. Glencore also had charges brought against it by the U.K.’s Serious Fraud Office (SFO) and reached separate parallel resolutions with the Brazilian Ministério Público Federal (MPF) and the Commodity Futures Trading Commission (CFTC). Under the terms of the plea agreement, the department has agreed to credit the company over $256 million in payments that it makes to the CFTC, to the Court in the U.K. as well as to authorities in Switzerland, in the event that the company reaches a resolution with Swiss authorities within one year.
The department reached its agreement with Glencore based on a number of factors, including the nature, seriousness, and pervasiveness of the offense conduct, which spanned over a 10-year period, in numerous countries, and involved high-level employees and agents of the company; the company’s failure to voluntarily and timely disclose the conduct to the department; the state of Glencore’s compliance program and the progress of its remediation; the company’s resolutions with other domestic and foreign authorities; and the company’s continued cooperation with the department’s ongoing investigation. Glencore did not receive full credit for cooperation and remediation, because it did not at all times demonstrate a commitment to full cooperation, it was delayed in producing relevant evidence, and it did not timely and appropriately remediate with respect to disciplining certain employees involved in the misconduct. Although Glencore has taken remedial measures, certain of the compliance enhancements are new and have not been fully implemented or tested to demonstrate that they would prevent and detect similar misconduct in the future, necessitating the imposition of an independent compliance monitor for a term of three years.
The Commodity Price Manipulation Case
According to court documents filed in the District of Connecticut, Glencore Ltd. operated a global commodity trading business, which included trading in fuel oil. Between approximately January 2011 and August 2019, Glencore Ltd. employees (including those who worked at Chemoil Corporation, which was majority-owned by Glencore Ltd.’s parent company and then fully-acquired in 2014) conspired to manipulate two benchmark price assessments published by S&P Global Platts (Platts) for fuel oil products, specifically, intermediate fuel oil 380 CST at the Port of Los Angeles (Los Angeles 380 CST Bunker Fuel) and RMG 380 fuel oil at the Port of Houston (U.S. Gulf Coast High-Sulfur Fuel Oil). The Port of Los Angeles is the busiest shipping port in the U.S. by container volume. The Port of Houston is the largest U.S. port on the Gulf Coast and the busiest port in the U.S. by foreign waterborne tonnage.
As part of the conspiracy, Glencore Ltd. employees sought to unlawfully enrich themselves and Glencore Ltd. itself, by increasing profits and reducing costs on contracts to buy and sell physical fuel oil, as well as certain derivative positions that Glencore Ltd. held. The price terms of the physical contracts and derivative positions were set by reference to daily benchmark price assessments published by Platts—either Los Angeles 380 CST Bunker Fuel or U.S. Gulf Coast High-Sulfur Fuel Oil—on a certain day or days plus or minus a fixed premium. On these pricing days, Glencore Ltd. employees submitted orders to buy and sell (bids and offers) to Platts during the daily trading “window” for the Platts price assessments with the intent to artificially push the price assessment up or down.
For example, if Glencore Ltd. had a contract to buy fuel oil, Glencore Ltd. employees submitted offers during the Platts “window” for the express purpose of pushing down the price assessment and hence the price of the fuel oil that Glencore Ltd. purchased. The bids and offers were not submitted to Platts for any legitimate economic reason by Glencore Ltd. employees, but rather for the purpose of artificially affecting the relevant Platts price assessment so that the benchmark price, and hence the price of fuel oil that Glencore Ltd. bought from, and sold to, another party, did not reflect legitimate forces of supply and demand.
According to court documents, between approximately September 2012 and August 2016, Glencore Ltd. employees conspired to manipulate the price of fuel oil bought from, and sold to, a particular counterparty, Company A, through private, bilateral contracts, by manipulating the Platts price assessment for Los Angeles 380 CST Bunker Fuel. Between approximately January 2014 and February 2016, Glencore Ltd. employees also undertook a “joint venture” with Company A, which involved buying fuel oil from Company A at prices artificially depressed by Glencore Ltd.’s manipulation of the Platts Los Angeles 380 CST Bunker Fuel benchmark. Finally, between approximately January 2011 and August 2019, Glencore Ltd. employees conspired to manipulate the price of fuel oil bought and sold through private, bilateral contracts, as well as derivative positions, by manipulating the Platts price assessment for U.S. Gulf Coast High-Sulfur Fuel Oil.
A former Glencore Ltd. senior fuel oil trader, Emilio Jose Heredia Collado, of Lafayette, California, pled guilty in March 2021 to one count of conspiracy to engage in commodities price manipulation in connection with his trading activity related to the Platts Los Angeles 380 CST Bunker Fuel price assessment. Heredia’s sentencing is scheduled for June 17, 2022.
Glencore Ltd. pleaded guilty, pursuant to a plea agreement, to one count of conspiracy to engage in commodity price manipulation. Under the terms of Glencore Ltd.’s plea agreement regarding the commodity price manipulation conspiracy, which remains subject to court approval, Glencore Ltd. will pay a criminal fine of $341,221,682 and criminal forfeiture of $144,417,203. Under the terms of the plea agreement, the department will credit over $242 million in payments that the company makes to the CFTC. Glencore Ltd. also agreed to, among other things, continue to cooperate with the department in any ongoing investigations and prosecutions relating to the underlying misconduct, to modify its compliance program where necessary and appropriate, and to retain an independent compliance monitor for a period of three years.
A number of relevant considerations contributed to the department’s plea agreement with Glencore Ltd., including the nature and seriousness of the offense, Glencore Ltd.’s failure to fully and voluntarily self‑disclose the offense conduct to the department, Glencore Ltd.’s cooperation with the department’s investigation, and the state of Glencore Ltd.’s compliance program and the progress of its remediation.
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A sentencing control date was scheduled in the Southern District of New York on October 3, 2022, before United States District Judge Lorna G. Schofield, who presided over Glencore’s guilty plea today.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
The FCPA case is being prosecuted by Assistant U.S. Attorneys Michael McGinnis and Juliana Murray of the Southern District of New York, Trial Attorneys Leila Babaeva and James Mandolfo of the Justice Department’s Fraud Section, and Trial Attorney Michael Khoo of the Justice Department’s Money Laundering and Asset Recovery Section.
Former United Nations Employee Pleads Guilty to Assault and False Statements Charges, Admits to Sexually Assaulting Thirteen Victims and Drugging Six More VictimsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that KARIM ELKORANY, a former communications specialist with the United Nations (“UN”) in Iraq, pled guilty before United States District Judge Naomi Reice Buchwald to sexually assaulting an internationally protected person and making false statements to cover up another sexual assault. In connection with the plea, ELKORANY also admitted that he drugged and/or sexually assaulted seventeen additional victims.
U.S. Attorney Damian Williams said: “Karim Elkorany admitted today to drugging at least 19 victims, and sexually assaulting at least 13 of them while they were unconscious after he drugged them. He committed many of his heinous crimes while employed by the United Nations. Nothing can reclaim what Elkorany stole from his victims, but we hope the victims will take some measure of comfort in knowing that Elkorany has admitted to and been convicted of his abominable crimes. We again urge anyone who thinks they may be victim of Elkorany to please contact the FBI at 1-800-CALL-FBI or tips.fbi.gov.”
According to the Indictment, public court filings, and statements during court proceedings:
Since at least in or about 2005 up to at least in or about April 2018, ELKORANY worked in international aid, development and/or foreign relations. From in or about October 2013 up to in or about April 2016, ELKORANY worked for the UN Children’s Fund in Iraq. From in or about July 2016 up to in or about April 2018, ELKORANY worked as a Communications Specialist for the UN in Iraq.
In or about November 2016, ELKORANY drugged and sexually assaulted a woman (“Victim-1”) in Iraq, where he was stationed while working for the UN. ELKORANY drugged Victim-1 and brought Victim-1 to his apartment. While at ELKORANY’s apartment, ELKORANY sexually assaulted Victim-1 while she was unconscious. In or around December 2016, Victim-1 reported the sexual assault to the UN. The UN initiated an investigation, through which ELKORANY was notified of the substance of Victim-1’s allegations against him.
On or about November 3, 2017, special agents working with the New York Field Office of the Federal Bureau of Investigation (“FBI”) conducted a voluntary interview of ELKORANY outside of his residence in New Jersey. During that interview, ELKORANY expressed familiarity with the nature and substance of the allegations made by Victim-1 to the UN, but falsely stated that the drugging and sexual assault by ELKORANY that Victim-1 had reported to the UN did not occur.
ELKORANY also engaged in a pattern of similar conduct involving many other women. Between in or around 2014 and in or around 2019, ELKORANY drugged and sexually assaulted a woman (“Victim-2”), who was a contractor for a UN organization at relevant times, in the United States and Iraq, among other locations, on multiple occasions. In addition to Victim-1 and Victim‑2, ELKORANY drugged and sexually assaulted eleven additional victims between in or around 2002 and in or around 2016, and drugged six additional victims between in or around 2007 and 2016.
* * *
ELKORANY, 38, of West Orange, New Jersey, pled guilty to one count of making false statements to special agents of the FBI, and one count of assault of an internationally protected person. The total maximum term of prison on these two counts is 15 years.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as sentencing of the defendant will be determined by the court. ELKORANY is scheduled to be sentenced by Judge Buchwald on September 29, 2022.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation. Mr. Williams also thanked the United States Department of State and the UN for their assistance. Any individuals who believe they have information concerning ELKORANY or any similar conduct should contact the FBI at 1-800-CALL-FBI or tips.fbi.gov.
The case is being prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Lara Pomerantz, Amanda L. Houle, Daniel C. Richenthal, and Robert B. Sobelman are in charge of the prosecution.
Former Treasurer of the Detroit Fire Fighters Union Sentenced to Prison for Stealing over $200,000 in Union FundsRead the Press Release
DETROIT - Verdine Day, the former Treasurer of the Detroit Fire Fighters Union (DFFA), was sentenced to one year in federal prison for embezzling over $200,000 in union funds, announced U.S. Attorney Dawn N. Ison today.
Joining Ison in the announcement were James A. Tarasca, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Verdine Day, age 62, was sentenced to one year in prison, $220,043.65 in restitution to the DFFA, and two years of supervised release by United States District George Caram Steeh based on her conviction for bank fraud as charged in an information filed by the U.S. Attorney’s Office.
Day was hired by the Detroit Fire Department in 1986. She worked as a firefighter, engineer, and held other positions in the union before she was elected by her peers to Treasurer of the DFFA in November 2015. She was Treasurer from December 2015 until her retirement from the DFFA and the City of Detroit in September 2019.
During the four years Day was Treasurer of the DFFA, she fraudulently obtained approximately $167,900.00 of union funds by (1) issuing checks in her name and then changing the name of the payee in the Union’s Quickbooks software; (2) cashing checks which were voided by her in Quickbooks; (3) writing checks made payable to cash; and (4) withdrawing cash from DFFA bank accounts. Day also fraudulently obtained money by diverting funds intended by the DFFA to be a donation to the NAACP.
Day also used DFFA credit cards as her own personal credit cards while she was Treasurer and after she retired. In total, she charged approximately $49,116.17 in personal expenses using DFFA credit cards. Her purchases on DFFA credit cards included flights, hotel rooms, cruises, car insurance premiums, satellite and cable TV service, national and state parks fees, and furniture. For example, Day used a DFFA union credit card to charge $9,553 for a cruise with Royal Caribbean cruise lines in 2017. Day also used a union credit card to pay for another Royal Caribbean cruise costing $8,975 on the Liberty of the Seas in 2019. She used the union’s credit card to pay her bar bill at a casino in Ohio in May 2019 and for a meal at a Bubba Gump Shrimp Co. restaurant in Cozumel, Mexico in 2019.
U.S. Attorney Dawn Ison commended the work of the FBI and the Department of Labor in conducting this criminal investigation of a corrupt union officer and said, “Day’s embezzlement was particularly egregious because she stole from the first responders in our community. We will continue to work with our law enforcement partners to root out corruption and fraud involving unions and prosecute union officers who abuse their authority and line their own pockets at the expense of the union’s membership.”
“As treasurer of the Detroit Fire Fighters Association, Verdine Day had a duty to safeguard the dues paid by men and women who put their lives on the line every day to protect our community,” said James A. Tarasca, Special Agent in Charge of the FBI’s Detroit Field Office. “Today’s sentencing makes it clear anyone who attempts to use their union position for personal financial gain will be held accountable by the FBI and our law enforcement partners.”
“Verdine Day embezzled more than $200,000 in union funds in order to personally enrich herself at the expense of the dues-paying Detroit Fire Fighters Association members she was supposed to serve. We will continue to work with our law enforcement partners to pursue union-affiliated corruption investigations,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen. The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Labor.
Former Sarasota Pain Doctor and Former Insys Sales Representative Convicted in Health Care Fraud Kickback ConspiracyRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces today that a federal jury returned guilty verdicts against Dr. Steven Chun (59, Sarasota) and Daniel Tondre (52, Tampa). Both were found guilty for conspiring to pay and receive kickbacks and bribes, in the form of speaker fees, in return for prescribing the fentanyl spray Subsys. They were both also convicted on five separate counts of paying and receiving kickbacks on specific dates. Tondre was also convicted of two counts of identification fraud in connection with the sham speaker events. Each faces a maximum penalty of 5 years in federal prison on the conspiracy count, and up to 10 years in prison for each substantive kickback violation. Tondre also faces up to 5 years’ imprisonment on each identification fraud count. The United States is seeking a money judgment in the amount of the proceeds of the kickbacks. A sentencing date has not yet been set.
According to court documents, Chun was a doctor who owned and operated a pain management medical practice in Sarasota where he prescribed a large volume of Subsys, an expensive form of liquid fentanyl designed to be applied under the tongue (sublingual spray), allowing it to rapidly enter the bloodstream. Tondre was employed as a sales representative in Chun’s territory by Insys Therapeutics, Inc., the company that manufactured and sold Subsys.
Insys, through its sales representative, Tondre, actively marketed Subsys to Chun by holding bogus and sham speaker events, and paid Chun $2,400 to $3,000 per speaker event in return for writing more and higher dosages of Subsys prescriptions. The sham speaker programs were often only attended by Chun’s family and friends or repeat attendees and included many falsified or forged signatures of attendees. Insys also bribed Chun, a large Subsys-prescriber, by hiring his then-girlfriend to work as an Insys liaison to facilitate the approval of insurance forms for Subsys, including those submitted for Medicare patients. The sham speaker programs were designed to conceal and disguise kickbacks and bribes paid to Chun to induce him to prescribe Subsys.
According to evidence presented during the 10-day trial, Chun was paid more than $278,000 in illegal kickbacks and bribes from Insys in connection with the sham speaker programs over a period of less than three years. Chun was also employed as a consultant by a local pharmacy where he referred his patients to fill Subsys and other medications. Tondre earned more than $737,000 in in salary and sales commissions over a period of two and half years. Medicare Part D paid more than $4.5 million for Subsys prescriptions written Chun.
Insys Therapeutics and other executives of Insys Therapeutics were convicted in the District of Massachusetts in United States v. Gurry et al., with the First Circuit Court of Appeals affirming their convictions.
This case was investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services—Office of Inspector General, the Defense Criminal Investigative Service, the Drug Enforcement Administration, and by the Opioid Fraud Abuse and Detection Unit at the United States Attorney’s Office, which focuses on opioid-related fraud and abuse by medical and health care professionals who have contributed to the prescription opioid epidemic. It is being prosecuted by Assistant United States Attorneys Kelley C. Howard-Allen and Jennifer Peresie.
Former Oxnard Man Pleads Guilty to Federal Charges for Enticing 10-Year-Old Girl into Sending Sexually Explicit Images of HerselfRead the Press Release
LOS ANGELES – A former resident of Ventura County pleaded guilty today to federal criminal charges for using Instagram to entice a 10-year-old girl into sending him sexually explicit images of herself.
Barry Bryant Rossman, 62, a.k.a. “Ben,” formerly of Oxnard and who now resides in Santa Rosa, pleaded guilty – on what was supposed to be his first day of trial – to all three charges pending against him: one count of production of child pornography, one count of enticement of a minor to engage in criminal sexual activity, and one count of receipt of child pornography.
According to court documents, in late December 2019 and early January 2020, Rossman, then 60 years old, posed as “Ben,” purportedly a 21-year-old man, and used the Instagram account “itsben6969” to contact the victim – a 10-year-old girl in Colorado. When Rossman first contacted the victim, he pretended to have a 13-year-old brother who had mischievously taken his phone and reached out to the victim.
Rossman engaged in conversation with the victim, using flattery and discussing topics such as Christmas gifts. Over the following days, Rossman’s conversations with the victim became increasingly sexually explicit, and Rossman convinced the victim to send him sexually exploitative photographs of herself.
After Rossman and the victim exchanged photographs, videos, and messages, Rossman instructed the victim to delete her messages, claiming that his little brother might get into his Instagram account and Rossman did not want his little brother “loving” the photos like he did. Shortly thereafter, the victim’s mother discovered the messages on her daughter’s phone and called the police.
In May 2020, law enforcement executed a search warrant at Rossman’s residence in Oxnard and found evidence linking his iPhone to the Instagram account used to contact the victim.
United States District Judge Stanley Blumenfeld Jr. scheduled an August 23 sentencing hearing, at which time Rossman will face a mandatory minimum sentence of 15 years in federal prison and a statutory maximum sentence of life imprisonment.
The FBI and the Erie (Colorado) Police Department investigated this matter.
Assistant United States Attorneys Chelsea Norell and Kathy Yu of the Violent and Organized Crime Section are prosecuting this case.
Former Corrections Officer admits to bribery chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Eli Scott Villers, a former correctional officer at Federal Correctional Institution Hazelton, has admitted to bribery charges, United States Attorney William Ihlenfeld announced.
Villers, 29, pleaded guilty today to one count of “Conspiracy to Commit Bribery of Public Officials” and one count of “Bribery of Public Official.” Villers was employed by FCI Hazleton as a correctional officer during the time of the crime, from September 2018 to February 2019. Villers conspired with an inmate to smuggle in tobacco products on multiple occasions. In exchange for the tobacco products, Villers would receive cash via the use of CashApp.
Villers faces up to 15 years of incarceration and a fine of up to $250,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The U.S. Department of Justice Office of Inspector General investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Former Chief Executive Officer of Publicly Traded Company Pleads Guilty to Conspiracy to Commit Securities FraudRead the Press Release
Earlier today, in federal court in Central Islip, Christian Romandetti, Sr., the former Chief Executive Officer of First Choice Healthcare Solutions, Inc. (FCHS), a publicly traded company based in Melbourne, Florida pleaded guilty before United States District Judge Joanna Seybert to conspiracy to commit securities fraud. When sentenced, Romandetti faces up to 5 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty plea.
“Through deceptive means, the defendant cheated his investors, many of whom were elderly,” stated United States Attorney Peace. “With today’s guilty plea, Christian Romandetti, Sr. is held responsible for orchestrating and profiting from a pump-and-dump scheme involving shares of his own healthcare services company.”
Mr. Peace also expressed his grateful appreciation to the United States Securities and Exchange Commission for their significant cooperation and assistance in the investigation.
As alleged in the indictment, between May 2013 and June 2016, the defendant and others engaged in a multi-million dollar scheme to defraud investors and potential investors in FCHS by artificially controlling the price and volume of traded shares in FCHS through, among other things:
- artificially generating price movements and trading volume in the shares, and
- material misrepresentations and omissions in their communications with victim investors about FCHS stock, relating to, among other things, the advisability of purchasing such stock.
To execute this scheme, the defendant and others fraudulently concealed their control of shares of FCHS stock that were held in brokerage accounts in the names of other individuals or entities.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Charles N. Rose is in charge of the prosecution.
The Defendant: CHRISTIAN ROMANDETTI, SR.
Age: 61
Indiatlantic, FloridaE.D.N.Y. Docket No. 18-CR-614 (JS)
Five Arrested for Federal Drug Conspiracy Involving Ice MethamphetamineRead the Press Release
PEORIA, Ill. – A federal indictment unsealed today charges five individuals with a drug trafficking conspiracy spanning over two years. All of the five defendants named in the indictment are charged with one count of conspiracy alleging that they acted together to distribute and possess with intent to distribute at least 50 grams of a mixture and substance containing methamphetamine, beginning on or about February 1, 2019, and continuing thereafter to present in Tazewell, Peoria, and Logan Counties and elsewhere. The following were indicted and arrested:
- Juan E. Bernal, 53, of the 1700 block of 2250th Street, Atlanta, Illinois;
- Maria Guadalupe Flores-Cano, a.k.a. “Lupita,” 40, of the 1000 block of West Nowland Street, Peoria, Illinois;
- Juan Carlos Figueroa-Ramirez, a.k.a. “Max,” 43, of the 1700 block of West Antoinette Street, Peoria, Illinois;
- Edgar Daniel Perez-Hernandez, 22, of the 2300 block of West Lincoln, Peoria, Illinois; and
- Edgar J. Tello, a.k.a. “Joker,” 31, of the 800 block of NE Monroe, Peoria, Illinois.
U.S. Attorney Gregory K. Harris; DEA Special Agent in Charge Rick Dollus, Chicago Field Division; Pekin Police Department Chief John Dossey; IRS Special Agent in Charge Justin Campbell; Homeland Security Investigations/Immigration Customs Enforcement Acting Resident in Charge Eric Bowers; ATF Resident Agent in Charge Tom Dart, Springfield Field Office; Peoria Multi-County Enforcement Group Director Cody Wilson, and Peoria Police Chief Eric Echevarria announced the charges. The U.S. Marshals Service assisted in the operation.
The indictment was returned by the grand jury on May 17, 2022, and sealed pending arrests. All five defendants were arrested May 23, 2022, and appeared for an initial appearance in court this morning, May 24, 2022. It was ordered that all five individuals remain in the custody of the U.S. Marshals Service pending further detention proceedings. A jury trial has been set for July 25, 2022, before the District Court Judge James E. Shadid.
If convicted, the maximum statutory penalties for the alleged crimes of each defendant charged are a minimum of 10 years to life imprisonment, up to a $10 million dollar fine, and not less than 5 years to life of supervised release.
Members of the public are reminded that an indictment is merely an accusation; each defendant is presumed innocent unless proven guilty.
Law enforcement agents conducting the investigation include DEA, the Pekin Police Department, the Peoria Police Department, IRS, HSI, and ATF, alongside Peoria Multi-County Enforcement Group, Central Illinois Enforcement Group, Rock County (WI) Sheriff's Office, United States Postal Service, Illinois State Police Air Ops, National Guard Counter Drug, Illinois State Police Districts 8 and 9, and DCI Digital Evidence Recovery. Assisting in the arrests included CIERT, Peoria SRT, Peoria County CIERT, ISP SWAT, and Logan County Sheriff’s Office. Assistant U.S. Attorneys Katherine G. Legge and Keith Hollingshead-Cook are coordinating the investigation and prosecuting the case on behalf of the government in the Peoria Division, Central District of Illinois, with assistance of the Tazewell and Fulton County State’s Attorney’s Office.
This operation 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. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Federal agent sent to prison for alien smugglingRead the Press Release
LAREDO, Texas – A 36-year-old former Border Patrol (BP) agent has been ordered to federal prison for conspiring to transport an undocumented alien within the United States, announced U.S. Attorney Jennifer B. Lowery.
Rodney Tolson Jr., Laredo, pleaded guilty July 15, 2021.
Today, U.S. District Judge Diana Saldana ordered him to serve a 21-month sentence to be immediately followed by three years of supervised release. In handing down the sentence, Judge Saldana noted Tolson’s actions were extremely egregious and that he had abused the public’s trust while committing this offense as a federal agent.
At the time of his plea, Tolson admitted he conspired with others to permit the passage of undocumented aliens into the country. He used his position as a BP agent by coordinating lane assignments at the IH-35 BP checkpoint north of Laredo.
His co-conspirators paid him for each non-U.S. citizen he allowed through the checkpoint.
Previously released on bond, Tolson was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the future.
The Department of Homeland Security - Office of Inspector General and Customs and Border Protection - Office of Professional Responsibility conducted the investigation. Assistant U.S. Attorney José Angel Moreno prosecuted the case.
Federal Prosecutor Named as Environmental Justice Coordinator for the District of Rhode IslandRead the Press Release
PROVIDENCE – United States Attorney Zachary A. Cunha has appointed Assistant United States Attorney (AUSA) Kevin L. Hubbard to the position of Environmental Justice Coordinator for the District of Rhode Island.
On May 5, 2022, Attorney General Merrick B. Garland announced a series of actions to secure environmental justice for all Americans, including the launch of the Office of Environmental Justice within the Justice Department and a new comprehensive environmental justice enforcement strategy to guide the Justice Department’s work. The Department also issued an Interim Final Rule that will restore the use of supplemental environmental projects in appropriate circumstances; where appropriate to the resolution of an environmental enforcement action, these projects often benefit communities by addressing specific local environmental issues.
In announcing these steps, Attorney General Garland noted, “Although violations of our environmental laws can happen anywhere, communities of color, indigenous communities, and low-income communities often bear the brunt of the harm caused by environmental crime, pollution, and climate change. For far too long, these communities have faced barriers to accessing the justice they deserve. The Office of Environmental Justice will serve as the central hub for our efforts to advance our comprehensive environmental justice enforcement strategy.”
The Attorney General directed U.S. Attorneys across the country to appoint a District Coordinator. In his role as Environmental Justice Coordinator for the District of Rhode Island, AUSA Hubbard will play a key part in identifying and pursuing environmental justice matters in coordination with the Environmental and Natural Resource Division and the Civil Rights Division at Main Justice; and will work closely with key local and regional agencies such as the Environmental Protection Agency, Department of Agriculture, and U.S. Housing and Urban Development.
"Our environment and natural resources are part of what makes the Ocean State such a beautiful and unique place,” said U.S. Attorney Cunha. “But environmental protection is not just about preserving shoreline and scenery, it’s about ensuring that peoples’ health and safety are protected from pollution and contamination in all of our communities - including ones that have historically been ignored or marginalized. Today’s appointment of Kevin Hubbard—an exceptional litigator—to this important new role underscores my office’s commitment to vigorously enforcing federal laws to protect our air, water, and environment for every Rhode Islander.”
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Federal Bureau of Prisons Corrections Officer Pleads Guilty to Sexual Assault of Woman in Custody in Los Angeles JailRead the Press Release
LOS ANGELES – A corrections officer with the Federal Bureau of Prisons (BOP) pleaded guilty today in federal court to one felony count of deprivation of rights under color of law for sexually assaulting a woman in custody in December 2020.
Jose Viera, 49, of Monterey Park, pleaded guilty before United States District Judge Otis D. Wright II.
Viera was a BOP corrections officer assigned to work at Metropolitan Detention Center-Los Angeles (MDC-LA), a federal prison which holds male and female pre-trial detainees and persons serving custodial sentences. In his role as corrections officer, Viera was required to uphold the Constitution and ensure the safety and security of persons housed at MDC-LA. Viera was placed on administrative leave in March.
Viera admitted that in December 2020 he was assigned to supervise incarcerated women who were quarantined due to COVID-19 exposure and infection. During the morning of December 20, Viera entered the cell of the victim, who was in COVID-19 isolation, as he had done on previous occasions to bring her breakfast. Instead, Viera admitted that he laid down next to the victim in her bed, sandwiching her between his body and the wall. Then, he sexually assaulted the victim, causing her pain and putting her in fear of physical harm.
Viera committed this assault despite knowing that the victim did not consent and that his actions violated her constitutional rights.
When the FBI and the Department of Justice’s Office of the Inspector General (DOJ-OIG) conducted a voluntary interview of Viera about the sexual assault allegations, Viera lied to federal agents about his misconduct.
“Law enforcement officers have a duty to protect the civil rights of all Americans, and a failure to uphold this principal will be met with decisive action,” said United States Attorney Tracy L. Wilkison. “Mr. Viera has admitted sexually abusing a woman while acting under the color of his law enforcement authority. His conduct undermined the integrity of our justice system and had a detrimental effect on the high-quality work typically performed by his fellow correctional officers.”
“The defendant betrayed his oath to uphold the Constitution and targeted a vulnerable woman in custody,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department’s Civil Rights Division is committed to ensuring that those who work in federal prisons and abuse their positions of authority by sexually assaulting people in their care are held accountable. We will continue to take action against perpetrators of these sexual assaults while seeking justice for the survivors of these heinous crimes.”
“Mr. Viera used his position of authority to sexually assault a victim who was under his care and who should have felt secure in his presence,” said FBI Assistant Director in Charge Kristi K. Johnson. “Today’s guilty plea is welcome in that Mr. Viera has taken responsibility for his actions, a move that will serve as a deterrent for such behavior by anyone in a position of power within prison walls.”
“Instead of delivering food to an inmate in COVID-19 isolation, Viera abused his power and sexually assaulted the inmate in her cell,” said DOJ-OIG Special Agent in Charge Zachary Shroyer. “No inmate should experience abuse at the hands of correctional officers, and the Department of Justice Office of the Inspector General will continue to investigate and hold accountable those who engage in any form of abuse.”
Judge Wright scheduled a sentencing hearing for March 13, 2023, at which time Viera will face a statutory maximum penalty of 10 years in federal prison.
This case was investigated by the FBI’s Los Angeles Field Office and the DOJ-OIG’s Los Angeles Field Office.
The case is being prosecuted by Assistant United States Attorney Thomas Rybarczyk of the Public Corruption and Civil Rights Section, and Special Litigation Counsel Fara Gold and Trial Attorney Nikhil Ramnaney of the Criminal Section of the Justice Department’s Civil Rights Division.
Eleven-Year Chase Results in U.S. Criminal Convictions of British Citizens in Death of Scuba DiverRead the Press Release
Miami, Florida – After being on the lam for over a decade, the owners of a now-defunct Key Largo, Florida dive shop who maintained their vessel in such shoddy condition that is capsized and sank, killing one person, have appeared in federal court in South Florida and pleaded guilty to involuntary manslaughter.
Christopher Jones, 57, and Alison Gracey, 54, owned The Key Largo Scuba Shack, LLC, a business that operated charter scuba diving trips in the Florida Keys from approximately June 2010 to December 2011. Their main charter boat was a 24.8-foot vessel named the M/V Get Wet. On December 18, 2011, the M/V Get Wet departed the pier for a scuba trip with two crew members and six passengers. During the vessel’s first dive stop, the sea conditions went from calm to choppy and the boat operator noticed that the bilge pump had failed. As the divers reboarded the boat after the dive, the vessel began taking on water, rolled heavily, capsized, and quickly sank about 30 feet to the ocean floor. During its descent, a 300-pound bench that was not properly secured to the vessel’s deck detached. Made of buoyant material, the bench sprang towards the ocean’s surface, as the vessel itself sank. The two large and heavy objects collided, pinning one passenger’s legs against the vessel’s windshield. The passenger was trapped and drowned.
Once salvaged, Coast Guard experts inspected the M/V Get Wet and found serious deficiencies. Not one of the vessel’s bilge compartments - the engine spaces below the ship’s deck - was watertight. The aft-most bilge space, called the lazarette, was covered by a deck plate with holes for 30 bolts, of which 22 were missing and eight were loose. The wood at the bottom of the 300-pound bench was rotten, and the screws intended to secure it to the deck were too small. Beneath the deck, holes that allowed water to flow between the various bilge compartments compromised all the bulkheads. A bilge pump had been disassembled and re-assembled incorrectly.
In addition, a criminal investigation following the death of the diver revealed that Jones and Gracey knew before the tragedy that the vessel needed repairs. Jones and Gracey continued operating the M/V Get Wet despite the following, which all occurred prior to December 18, 2011:
- Following inspections, the United States Coast Guard notified Jones and Gracey that the vessel needed repairs, including securing the center engine bench cover to the deck and making repairs below the deck to make sure that the bulkhead areas were watertight.
- The dive operation’s employees repeatedly informed Jones that the M/V Get Wet flooded dangerously. The deck plates were barely attached, and the engine bench cover would rock back and forth.
- The M/V Get Wet broke down repeatedly and equipment on the boat failed, including pumps intended to de-water the vessel.
- On one voyage with Gracey aboard as dive master, the M/V Get Wet almost sank.
- In the two months before the boat sank, a marine salvor towed the M/V Get Wet to shore on three separate occasions.
Shortly after the diver’s death, Jones and Gracey fled the United States and spent over 10 years evading extradition each time law enforcement located them. In 2021, they left France for Spain, where Spanish authorities took them into custody based on an Interpol Red Notice. In January 2022, Jones and Gracey were extradited from Spain to the United States to face federal charges in Southern District of Florida.
Sentencing is set for August 18, at 1:30 pm, in the Key West Federal Courthouse before Judge James Lawrence King. Each defendant faces up to eight years in federal prison.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and Zinnia James, Special Agent in Charge, Southeast Region, U.S. Coast Guard Investigative Service (CGIS), announced the guilty pleas.
The U.S. Coast Guard Investigative Service investigated the case. The U.S. Department of Justice's Office of International Affairs provided invaluable assistance pursuing the extradition of the defendants. The U.S. Marshals Service also assisted by transporting the defendants from Spain to Florida.
Former Assistant U.S. Attorney Jaime Raich worked on the investigation and initially prosecuted this case, which Assistant U.S. Attorney Thomas Watts-FitzGerald is now handling.
For more details on the case, click
here to view the joint factual proffer.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 12-cr-10013.
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Eighth and Final Defendant Pleads Guilty in New Buffalo Cocaine RingRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Mark Totten announced that Adrian Romero Antunez (35), a Mexican national in the United States on a tourist visa, pled guilty to conspiracy to distribute five (5) kilograms or more of cocaine. Romero Antunez was the final defendant to plead guilty in a transnational and interstate cocaine ring that centered around New Buffalo, Michigan resident Ivan Huerta Hernandez (33). Through conduits in Mexico, Huerta Hernandez was supplied by sources located in Chicago, Illinois, including Romero Antunez. Huerta Hernandez then distributed cocaine to dealers in West Michigan and Northern Indiana.
On the morning of November 3, 2021, approximately 90 federal, state, and local law enforcement officers executed arrest warrants and six search warrants in four judicial districts: the Western District of Michigan, the Northern District of Indiana, the Northern District of Illinois, and the Central District of Illinois. Investigators seized over 1.5 kilograms of cocaine, approximately $100,000 in cash, six vehicles linked to cocaine trafficking, and two firearms.
The men who have pled guilty to felony charges are listed below:
Name
Residence
Age
Ivan Huerta Hernandez
New Buffalo, Michigan
33
Adrian Romero Antunez
Chicago, Illinois
35
Henry Shavar Nichols
Greenville, South Carolina
41
Marcus Jemel Johnson
Benton Harbor, Michigan
41
Juan Martinez Camarillo
Michigan City, Indiana
37
Donald James Rogers
New Buffalo, Michigan
62
Manuel Eudave
La Porte, Indiana
54
Santiago Cardenas
Michigan City, Indiana
41
“The guilty pleas in this case represent a significant victory against a transnational drug trafficking conspiracy,” said U.S. Attorney Mark Totten. “My office is committed to combatting large-scale traffickers who bring these poisons to the Western District of Michigan. This prosecution demonstrates the power of pooling the resources of federal, state, and local governments. Drug trafficking organizations do not recognize political boundaries and we must continue to work together to combat drug trafficking organizations across Michigan, the Midwest, and the United States.”
For more information, please see the continuation in support of the criminal complaint available on the public docket. United States v. Hernandez, et al., No. 21-MJ-551, ECF No. 1 (W.D. Mich.).
On May 23, 2022, the Honorable Paul L. Maloney, U.S. District Judge for the Western District of Michigan sentenced Nichols to 36 months imprisonment, Martinez Camarillo to 57 months, and Cardenas to one year of probation. The following defendants are scheduled for sentencing on the following dates: Rogers on June 17, 2022, Johnson on June 21, 2022, Huerta Hernandez on July 21, 2022, and Romero Antunez on September 12, 2022.
The case was investigated and prosecuted as part of an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation that began in 2020 and has been led by the Federal Bureau of Investigation (FBI), Drug Enforcement Administration (DEA), United States Marshals Service (USMS), Immigration and Customs Enforcement (ICE), United States Postal Inspection Service (USPIS), Michigan State Police’s Southwest Enforcement Team (SWET), Berrien County Sheriff’s Department (BCSD), Pokagon Band Tribal Police, Michigan City Police Department, La Porte City Police Department, and the Cook County Sheriff Department.
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using an intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Dubois Man Pleads Guilty in Meth Ring Operating in Clearfield, Jefferson and Allegheny CountiesRead the Press Release
PITTSBURGH, PA – A resident of Dubois, Pennsylvania, pleaded guilty in federal court to violating federal narcotics laws related to a nine-month Title III wiretap investigation into drug trafficking in and around the counties of Jefferson, Clearfield, and Allegheny, United States Attorney Cindy K. Chung announced today.
Brent Coder, age 55, pleaded guilty to three counts related to the possession with intent to distribute methamphetamine before United States District Judge Christy Criswell Wiegand. Coder was one of 47 defendants charged in six related indictments as part of the Return to Sender investigation.
In connection with the guilty plea, the court was advised that on August 19, 2020, Coder sold another individual two ounces of methamphetamine for $2,300. On September 17, 2020, Coder was stopped by Pennsylvania State Police troopers on the way to a drug transaction, and 1.5 pounds of methamphetamine was seized from his vehicle. Coder consented to a search of his residence, and an additional quantity of methamphetamine and a handgun were seized. Finally, on August 31, 2021, federal agents seized over 400 grams of methamphetamine and four firearms during a search of Coder’s residence.
Judge Wiegand scheduled sentencing for September 13, 2022, at 11:00 a.m. The law provides for a maximum total sentence of not less than 10 years to a maximum of life in prison, a fine not to exceed $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered the defendant remain in custody.
Assistant United States Attorneys Jonathan D. Lusty and Michael R. Ball are prosecuting this case on behalf of the government.
The Drug Enforcement Administration led the multi-agency investigation of this case, which also included the United States Postal Service – Office of Inspector General, United States Postal Inspection Service, Homeland Security Investigations, Internal Revenue Services, Pittsburgh Bureau of Police, and Pennsylvania State Police. Also assisting were the Jefferson County District Attorney’s Office, Clearfield County District Attorney’s Office, and the Clarion Borough Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
DOJ and Vancouver Police Department resolve alleged violations of Americans with Disabilities ActRead the Press Release
Seattle – The Vancouver Police Department in Vancouver, Washington, and the U.S. Department of Justice today reached a settlement agreement to ensure equal access to services for all individuals who are deaf or hard of hearing. The investigation and settlement resulted from the complaint of a Vancouver resident who is deaf and was denied auxiliary aids or services during her interview and arrest. The settlement agreement calls for substantial updates to the Department’s policies and procedures. The complainant will also be paid $30,000 by the Vancouver Police Department.
“Law enforcement encounters are some of the most high-stakes and personally significant moments a person can experience. It is critically important that individuals be able to effectively communicate in these moments – both to provide information to the police and to receive information about their rights,” said First Assistant U.S. Attorney Tessa M. Gorman. “This settlement will help ensure that every person who is deaf or hard of hearing has the ability to effectively communicate, and equal access to services in their encounters with the Vancouver Police Department.”
The investigation determined that Vancouver Police Department officers failed to take appropriate steps to ensure that communications with the Complainant were as effective as communications with others. The department failed to provide auxiliary aids and services that were necessary to ensure effective communication with the Complainant during the investigation of criminal allegations against her (including interrogation), communications regarding her Miranda rights, and her arrest. The Complainant alleged that VPD required her minor daughter to serve as an interpreter instead, in violation of her rights. Further, the Complainant alleges that VPD handcuffed her behind her back during transport to jail leaving her unable to communicate at all. The investigation substantiated these claims and further revealed that VPD further failed to provide a qualified interpreter to the alleged victim of the related incident, who is also deaf.
Under the terms of the settlement, within 60 days VPD will provide the U.S. Attorney’s Office with draft policy revisions to improve effective communication with persons who are deaf and hard of hearing. Such policy revisions will address effective communications with persons with disabilities. The settlement also calls for the police department to modify its restraint and handcuffing policy so that detainees who are deaf or hard of hearing can communicate using American Sign Language or in writing by having their hands in front of their bodies.
Under the terms of the settlement, the Vancouver Police Department will document all requests for communication assistive devices and how the Department met those requests.
The U.S. Attorney’s Office will monitor the Vancouver Police Department’s compliance with the settlement for the next two years. The Vancouver Police Department will report to the U.S. Attorney’s Office on training of staff, the logs regarding request and use of assistive services, and any complaints regarding compliance with the ADA. The reports are due every six months.
The matter was initially handled by Assistant United States Attorney Christina Fogg. Assistant United States Attorney Matt Waldrop is overseeing the compliance portion of this case. Learn more about our civil rights program here.
Convicted murderer sent to prison for illegally possessing pistolRead the Press Release
LAREDO, Texas – A 34-year-old Houston man has been ordered to federal prison for possessing a firearm as a felon, announced U.S. Attorney Jennifer B. Lowery.
Willie Randolph Moss Jr. pleaded guilty March 3.
Today, U.S. District Judge Diana Saldana handed Moss a 33-month term of imprisonment to be immediately followed by three years of supervised release. At the hearing, the court reiterated evidence that detailed how Moss attempted to blame someone else for having the firearm. Moss knew he was a convicted felon and could not use or possess a firearm.
The court also noted the firearm was stolen.
In handing down the sentence, the court considered his past criminal history and dangerous offenses. Judge Saldana also addressed his poor decision to drive from Houston to Laredo for criminal purposes and challenged Moss to take responsibility to avoid future criminal conduct.
On Jan. 15, authorities found him in possession of a pistol while traveling on IH-35 north of Laredo Texas in an effort to circumvent a Border Patrol (BP) checkpoint.
Moss is a convicted felon. He was previously sent to prison for 15 years in 2006 for committing murder during a robbery. As such, he is prohibited under federal law from possessing firearms or ammunition.
Moss has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Matthew Isaac is prosecuting the case.
Columbus man sentenced to more than 15 years in federal prison for role in drug ring involving 75 pounds of fentanylRead the Press Release
COLUMBUS, Ohio – Lucio Manuel Munoz, 29, of Columbus, was sentenced in U.S. District Court to 188 months in prison for his role in a drug conspiracy involving more than 75 pounds of fentanyl.
According to court documents, in February 2021, law enforcement officials seized approximately 30 kilograms of fentanyl from Munoz’s vehicle. Munoz and two other men, Maximus Alberto Dominguez, 20, and Rene Bernal Gaytan, 23, were charged by federal criminal complaint and arrested on Feb. 3, 2021.
The defendants were conducting illicit narcotics operations from the Red Roof Inn on South State Street in Westerville and from a residence on Chesford Road in Columbus.
Law enforcement officials were conducting surveillance on both locations on Feb. 2, 2021, and subsequently stopped Dominguez for a traffic stop on Interstate 270 South. A narcotics K9 alerted to the presence of drugs and officers discovered approximately 978 grams of fentanyl in the BMW Dominguez was driving.
Munoz attempted to flee the residence on Chesford Road later that evening with bulk amounts of narcotics in his vehicle. A traffic stop was initiated on Munoz, but he failed to yield. A vehicle pursuit was initiated and ended in a foot pursuit. Munoz was apprehended and officers secured the Jeep he was driving. The Jeep contained approximately 30 kilograms of fentanyl.
Court records detail that agents also found approximately eight kilograms of fentanyl with Gaytan in a room at the Red Roof Inn. They also discovered a storage locker in Columbus where a duffel bag of vacuum-sealed bulk currency was located.
Munoz pleaded guilty in June 2021 to conspiring to possess and possessing with intent to distribute more than 400 grams of fentanyl.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio; James C. Harris III, Special Agent in Charge, Homeland Security Investigations (HSI); Kent Kleinschmidt, Acting Special Agent in Charge, Drug Enforcement Administration (DEA); Ohio State Highway Patrol Superintendent Col. Richard S. Fambro and Westerville Police Chief Charles Chandler announced the sentence imposed by Senior U.S. District Judge James L. Graham. OCDETF Deputy Criminal Chief Kelly A. Norris is representing the United States in this case.
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Columbia Man with Robbery and Drug Trafficking Record Pleads Guilty to Firearm ChargeRead the Press Release
COLUMBIA, SOUTH CAROLINA —Taurus Jermaine Dotson, 38, of Columbia, has pleaded guilty to felon in possession of a firearm and ammunition.
Evidence obtained in the investigation revealed that on December 7, 2020, Dotson was stopped for a traffic violation while driving in Richland County. During the stop, police obtained consent from Dotson to search the car he was driving. The search uncovered drugs and a 9mm pistol in the trunk. The pistol was loaded with an extended ammunition magazine which contained 17 rounds of ammunition. Dotson was prohibited from possessing a firearm or ammunition due to prior robbery and drug trafficking convictions.
Dotson faces a maximum penalty of 10 years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. United States District Judge J. Michelle Childs accepted the guilty plea and will sentence Dotson after receiving and reviewing a sentencing report prepared by the United States Probation Office.
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.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Richland County Sheriff’s Department. Assistant U.S. Attorney Christopher D. Taylor is prosecuting the case.
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Columbia Man Pleads Guilty to Selling Firearms and Drugs to ATFRead the Press Release
COLUMBIA, SOUTH CAROLINA —Derrall Lanard Reed, a/k/a “Ric0,”35, of Columbia, has pleaded guilty to five counts of felon in possession of a firearm and ammunition and four counts of possession with intent to distribute and distribution of cocaine and crack cocaine.
Evidence obtained in the investigation revealed that in early 2020, agents from Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), along with local agencies, conducted an investigation into firearms within the Columbia area. During this investigation, undercover ATF agents were introduced to Reed, who during five transactions in February 2020 sold five handguns, many of which were loaded, and crack cocaine and cocaine to undercover ATF agents. During one of the transactions, the undercover agent tried to buy Reed’s personal firearm, but he refused, saying he didn’t want to be “naked” (without a gun). Reed was arrested on federal charges and detained without bond on March 12, 2020, when he showed up to sell another firearm to the undercover agents. A federal search warrant was executed on his home. Inside the home, agents found his personal firearm, which had a high capacity magazine, and various rounds of ammunition. Of the six handguns recovered by ATF during this investigation, three had previously been reported as having been stolen from residences or vehicles. Two were previously reported stolen in Richland County (August 2019 and October 2019) and one, which someone had attempted to obliterate the serial number, had previously been reported as having been stolen from a residence in Hoke County, North Carolina (November 2016). Additionally, two of the firearms, including the one recovered in Reed’s home, were preliminarily linked through ballistics analysis as having been involved in ShotSpotter incidents and other shooting incidents in Columbia on July 2019, November 2019, December 2019, and March 11, 2020.
Reed has prior state convictions for: possession of crack cocaine from 2004, possession with intent to distribute crack cocaine from 2006, and assault and battery with intent to kill from 2006, where he shot another person in the thigh.
On the firearm charges, Reed faces a maximum penalty of 10 years in federal prison. He also faces a fine of up to $250,000, restitution, and three years of supervision to follow the term of imprisonment. On the drug charges, Reed faces a maximum penalty of 30 years in federal prison, a fine of up to $2,000,000, and six years of supervision to follow the term of imprisonment. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Reed after receiving and reviewing a sentencing report prepared by the United States Probation Office.
This investigation by the ATF, Columbia Police Department, Richland County Sheriff’s Department, and the Midlands Gang Task Force was made possible by leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
The technology known as “ShotSpotter” relies upon acoustic sensors to pinpoint where gunfire occurs. Information from the sensors is sent to officers of the Columbia Police Department and 9-1-1 dispatchers through real-time digital alerts.
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.
Assistant United States Attorney Stacey D. Haynes prosecuted the case.
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