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Friday 8 April 2022
Philadelphia-Based Fentanyl Distributor SentencedRead the Press Release
ALEXANDRIA, Va. – A Philadelphia, Pennsylvania man was sentenced today to 148 months in prison for supplying over 1.2 kilograms of fentanyl to multiple redistributors in Prince William County.
According to court documents, Eronus Blay, 45, served as the source of supply for tens of thousands of counterfeit, pressed pills containing fentanyl that were distributed to users in and around Manassas. The blue pills bore the markings of Oxycodone, and local distributors including Cameron Jackson, 23, Lander Milla, 23, and Nicole Oliphant, 36, all of Manassas, would travel to Philadelphia or New Jersey to meet with Blay and purchase the pills, which became known locally to users as “Phillies.”
Once the pills were acquired, the local distributors would return to the Eastern District of Virginia and sell them at a mark-up. Between June and October of 2020, law enforcement utilized an undercover officer and purchased hundreds of the fentanyl pills from the local members of the distribution network. In December of 2020, during court-authorized searches of residences tied to Jackson, Milla, and Blay, law enforcement recovered two firearms along with over $100,000 in drug proceeds.
The other three members of the conspiracy have already been sentenced for their respective roles in the conspiracy. On February 25, Jackson was sentenced to 130 months in prison. On August 17, 2021, Milla was sentenced to 84 months in prison. On September 3, 2021, Nicole Oliphant, was sentenced to 37 months in prison.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Jason Miyares, Attorney General of Virginia; Peter Newsham, Chief of Prince William County Police; and Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Special Assistant U.S. Attorney Rachel M. Roberts 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-126.
Perpetrator of Multiple Carjackings, Kidnappings, and Robberies Pleads GuiltyRead the Press Release
Miami, Florida – A 28-year-old Sunrise, Florida, man has pled guilty to federal carjacking, kidnapping, bank robbery, and firearms offenses.
Court filings reveal that from January 1, 2021, through January 29, 2021, defendant Tevin Shane Souffranc committed multiple violent crimes throughout Broward and Collier Counties. During his crime spree, Souffranc kidnapped a woman and forcefully struck her in the face three times with his gun, chipping two of her teeth and causing lacerations on her face; stole a vehicle at gunpoint and attempted another woman on a different occasion; robbed two banks; and attempted to rob two other banks. At the time of his arrest, Souffranc was in possession of the firearm that he used in the crimes.
Souffranc pled guilty to one count of carjacking, one count of kidnapping, two counts of bank robbery, one count of attempted bank robbery, and two counts of brandishing a firearm during a crime of violence. Souffranc is scheduled for sentencing at 11:00 am on June 15, before U.S. District Judge Roy K. Altman, who sits in Fort Lauderdale. He faces a mandatory minimum sentence of 14 years’ imprisonment and a maximum of life imprisonment.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, announced the guilty plea.
FBI Miami investigated the case, with assistance from Broward Sheriff’s Office, Fort Lauderdale Police Department, Hollywood Police Department, Collier County Police Department, Boca Raton Police Department, and Sunrise Police Department. Assistant United States Attorneys Ajay Alexander and Brooke Latta are prosecuting this case. Assistant United States Attorney Annika Miranda is handling asset forfeiture.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods 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 and the local community to develop effective, locally-based strategies to reduce violent crime.
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 21-cr-60069.
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Omaha Man Sentenced to 65 Months for Robbery SpreeRead the Press Release
United States Attorney Jan Sharp announced that Jerome Davis, 44, of Omaha, Nebraska, was sentenced on Friday, April 8, 2022, in federal court in Omaha for Interference with Commerce by Robbery. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Davis to 65 months’ imprisonment. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
Between August 19, 2020, and September 3, 2020, Davis and a coconspirator committed a series of five robberies at businesses throughout Omaha. During the robberies, Davis, whose face was concealed, would either claim to have a gun or weapon or brandish a knife and demand money from the employees and owners of the businesses. The businesses included the Everest Gas Mart (Phillips 66), on Leavenworth Street, which Davis robbed twice, a Speedee Mart on South 84th Street, the Nu Trend Dry Cleaners located on Center Street, and a Subway sandwich shop located on North Saddle Creek Road. At several of the locations Davis was observed leaving the area in a white Buick sedan bearing in-transit tags.
On September 3, 2020, Omaha Police Department (OPD) officers were dispatched to a robbery that occurred at the Subway restaurant. The suspect, later determined to be Davis, was reported to be armed with a knife. Davis robbed the Subway and fled from the business. Officers observed the white Buick sedan in the area following the robbery and attempted to stop the vehicle. The driver of the vehicle refused, leading them on a vehicle pursuit. OPD officers observed Davis in the passenger seat and a female suspect, later determined to be co-defendant Capreeca Jackman, who was driving. During the pursuit Davis threw paper and coin currency and a green cash register drawer from the passenger window of the Buick. The pursuit continued for several minutes before the Buick slowed, allowing Davis to get out and flee on foot in the area North 20th and Charles Streets. Officers arrested him. Officers continued to pursue Jackman in the white Buick sedan until she stopped near North 42nd and Izard Streets where she also was arrested.
During the interview, Jackman confirmed she drove the defendant to the areas of two of the targeted businesses. Jackman provided information that she and Davis were staying at the Motel 6 on South 84th Street. Jackman gave consent to search their shared room and to search her white Buick sedan. Additional evidence was in the Buick including the knife brandished by Davis and the face coverings he wore during the robberies.
Jackman’s trial is scheduled to begin May 23, 2022, before Chief Judge Rossiter.
This case was investigated by the Omaha Police Department and the Federal Bureau of Investigation.
Oglala Man Found Guilty of Possession of Body Armor by a Violent FelonRead the Press Release
United States Attorney Dennis R. Holmes announced that Kane Youngman, age 26, of Oglala, South Dakota, was found guilty of Possession of Body Armor by a Violent Felon following a federal jury trial in Rapid City. The verdict was returned on April 7, 2022.
The charge carries a maximum penalty of three years in federal prison and/or a $250,000 fine, one year of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Youngman was indicted by a federal grand jury on February 17, 2022. The conviction stems from Youngman, having been previously convicted of a crime of violence, being in possession of a ballistic vest on January 22, 2022, at Oglala.
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.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Megan Poppen prosecuted the case.
A presentence investigation was ordered and a sentencing date will be set. The defendant was remanded to the custody of the U.S. Marshals Service.
New Orleans Man Sentenced to 151 Months Imprisonment for Heroin and Cocaine Drug Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JOHNNY TRIPLETT (“TRIPLETT”), age 33 of New Orleans, was sentenced on April 7, 2022 by United States District Judge Eldon E. Fallon after previously pleading guilty to one count of conspiracy to distribute 500 grams or more of cocaine hydrochloride and 100 grams of heroin.
According to court records, TRIPLETT and others conspired to transport multiple kilograms of cocaine hydrochloride and heroin between Texas and New Orleans.
The court sentenced TRIPLETT to 151 months of imprisonment and 4 years of supervised release. TRIPLETT must also pay a $100 mandatory special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Duane A. Evans praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorneys Elizabeth Privitera and Jonathan L. Shih are in charge of the prosecution.
Nebraska Man Sentenced for Possession of Methamphetamine with Intent to DistributeRead the Press Release
United States Attorney Jan Sharp announced that Matthew Carpenter, 37, of Holdrege, Nebraska, was sentenced today by United States District Judge John M. Gerrard to 9 years in federal prison for possession of 5 grams or more of pure methamphetamine, with intent to distribute. Following his prison term, Carpenter will serve five years on supervised release. There is no parole in the federal system.
On January 25, 2020, a Kearney Police Officer attempted a traffic stop of Carpenter. Carpenter initially pulled over. Moments later, he sped away through a trailer court. The police officer caught up to the vehicle within a minute. Carpenter had left the car abandoned in the street with his passenger still sitting in the car. Officers were able to follow Carpenter’s foot tracks in the snow leading to a storage shed. Inside the shed officers found Carpenter hiding. Carpenter had a scale in his pocket. Police also found three bags of suspected methamphetamine just inches from where Carpenter had been crouched down hiding. The substance was later sent to the Nebraska State Patrol Crime Laboratory where it was confirmed to be at least 52 grams of pure methamphetamine.
This case was investigated by the Kearney Police Department and the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Minneapolis Man Sentenced to 12 Years in Prison for Armed Robbery of Minneapolis RestaurantRead the Press Release
MINNEAPOLIS – A Minneapolis man has been sentenced to 144 months in prison followed by five years of supervised release for an armed Hobbs Act robbery of a Minneapolis restaurant, announced U.S. Attorney Andrew M. Luger.
According to court documents, on November 9, 2020, Abdiweli Mohamed Jama, 32, entered Market Barbecue in Minneapolis, armed with a semi-automatic pistol, and attempted to rob the business. An employee tried to thwart the robbery and engaged in a physical altercation with Jama. During the altercation, Jama’s pistol discharged, and the employee was struck in the shoulder and the knee. Jama fled the scene on foot.
On November 16, 2021, Jama pleaded guilty to one count of interference with commerce by robbery (Hobbs Act) and one count of discharge firearm during a crime of violence. He was sentenced yesterday by Senior U.S. District Judge Ann D. Montgomery.
This case is the result of an investigation conducted by the FBI, the Minneapolis Police Department, and the Saint Paul Police Department.
Assistant U.S. Attorney David P. Steinkamp prosecuted the case.
Michigan Man Pleads Guilty to Federal Fentanyl CrimeRead the Press Release
BECKLEY, W.Va. – A Michigan man pleaded guilty today to possession with intent to distribute fentanyl.
According to court documents and statements made in court, James Meeks-Little, 29, of West Bloomfield, was a passenger in a vehicle stopped by the United States Marshals Service on June 24, 2021, in Beckley. At the time of the traffic stop, Meeks-Little was the subject of an arrest warrant. A search of the vehicle revealed 247.9 grams of a mixture containing fentanyl found hidden behind the glove box. Meeks-Little admitted that the fentanyl belonged to him and that he intended to distribute it.
A Springfield, model XD, 9mm semi-automatic pistol was also found during the search of the vehicle. Meeks-Little is prohibited from possessing a firearm as a result of his 2014 Michigan felony conviction for home invasion.
At the conclusion of the plea hearing, Meeks-Little was remanded to the custody of the U.S. Marshals Service. He is scheduled to be sentenced on July 22, 2022, and faces a maximum penalty of up to 20 years in federal prison.
United States Attorney Will Thompson made the announcement and commended the U.S. Marshals Service, the Drug Enforcement Administration, the West Virginia State Police, and the Beckley Police Department for their assistance in the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Nick Miller is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-129.
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Michigan Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Michigan man pleaded guilty today to the distribution of heroin.
According to court documents and statements made in court, Kevin Glenn, 37, of Detroit, admitted that he sold heroin to a confidential informant on May 21, 2020, in Beckley. He also admitted he had $32,020 in drug proceeds in his possession when he was detained by law enforcement on April 20, 2020, in Phoenix, Arizona.
Glenn is scheduled to be sentenced on July 22, 2022, and faces a maximum penalty of up to 20 years in prison.
United States Attorney Will Thompson made the announcement and commended the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit for their assistance in the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Alex Hamner is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-116.
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Mexican Man Sentenced for Unlawful Return by an Alien Removed After Conviction for a FelonyRead the Press Release
Gulfport, Miss. – A Mexican national was sentenced to “time served” (178 days or about 6 months) in prison to be followed by 3 years of supervised release for unlawful reentry by an alien deported or removed after conviction of a felony, announced U.S. Attorney Darren J. LaMarca, Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector, and Special Agent in Charge David L. Denton of Homeland Security Investigations in New Orleans.
Francisco Alvarado-Zacarias, 49, of Mexico, pleaded guilty and was convicted of the crime on December 15, 2021, before U.S. District Court Judge Taylor B. McNeel. Alvarado-Zacarias is also subject to Department of Homeland Security proceedings to remove him again from the United States.
According to court documents, Alvarado-Zacarias was arrested on October 12, 2021, on Interstate 10 in Harrison County. The U.S. Border Patrol conducted a vehicle stop on a white Ford panel van with a Texas license plate based on a Border Patrol “Be on the Lookout” (BOLO) Alert. Three passengers fled the van on foot, including the defendant in this case, Francisco Alvarado-Zacarias. A Supervisory Agent had arrived to assist, and two of the three fleeing passengers were apprehended. One of the three was not apprehended and remains at-large. Inspection of the van revealed two aftermarket bench seats were placed in rear of the van. The bench seats each seated three passengers, however, there were no seatbelts available for passengers in the bench seats. All vehicle occupants (except for the one who escaped) were transported to the Gulfport Border Patrol Station for processing.
One of the passengers was identified as Francisco Alvarado-Zacarias. Agents confirmed that Alvarado-Zacarias is a citizen of Mexico who was previously ordered removed from the U.S. on multiple occasions, including in 1992, 2006, 2007, and 2020. Agents also confirmed through official records that Alvarado-Zacarias had been convicted in 2005 in the District Court for the First Judicial District of Wyoming, for the felony offense of conspiracy to deliver methamphetamine. He had been sentenced to a term of not less than 22 months and not more than 36 months in the custody of the Wyoming Department of Corrections. After his release from prison, Alvarado-Zacarias had been removed from the United States.
The case was investigated by the U.S. Border Patrol, Homeland Security Investigations and the Jackson County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Mexican Businessman Who Absconded in 2015 Sentenced for BriberyRead the Press Release
DEL RIO – A Mexican national who failed to appear for sentencing in 2015 was sentenced today to 10 years in prison and ordered to pay $884,174.47 in restitution for his role in a bribery scheme.
According to court documents, German Garcia Cano, 62, was the owner of GGC Enterprises, Inc., (GGC) a construction equipment rental company. Between 2009 and 2012, Maverick County paid GGC hundreds of thousands of dollars leasing heavy equipment purportedly used in construction projects in Maverick County. On October 9, 2014, Cano pleaded guilty to one count of paying a bribe to an agent of an organization receiving federal funds. By pleading guilty Cano admitted he paid bribes to Maverick County employees to insure that GGC secured leasing contracts with Maverick County.
On February 24, 2015, Cano was scheduled to be sentenced and failed to appear. A warrant for his arrest was issued that same day. In March 2015, the Court entered a bond forfeiture against Cano and a surety and a restraining order against Cano’s assets. The United States subsequently garnished on bank accounts associated with Cano, including recovering $10,000 transferred to his sister, despite his fugitive status. On July 8, 2021, Cano was rearrested and has remained in federal custody.
“The sentencing of German Cano today demonstrates our steadfast commitment to the pursuit of justice, even when criminals flee,” said U.S. Attorney Ashley C. Hoff. “By paying bribes to receive government funds, Cano fostered a culture of corruption in Maverick County, undermining the public’s faith in government. Along with our law enforcement partners, we will continue to use all available resources to root out corruption and hold wrongdoers accountable.”
“Corruption damages the very fiber of our society, as it undermines public trust,” said Acting Special Agent in Charge Jason Hudson. “Thankfully, with today’s sentencing, the defendant in this case will now have to face the consequences of his actions.”
The FBI, with assistance from the Customs and Border Protection Office Internal Affairs; DEA; Texas Department of Public Safety Criminal Investigative Division; Texas Rangers; and Maverick County Sheriff’s Office, investigated the case.
Assistant U.S. Attorneys James Ward and Michael Galdo, with assistance from the Department of Justice’s Office of International Affairs, prosecuted the case.
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Metairie Man Sentenced to Three Years of Probationfor Health Care Fraud SchemeRead the Press Release
NEW ORLEANS – The U.S. Attorney for the Eastern District of Louisiana, Duane A. Evans, announced that MARIO DELUCA (“DELUCA”) has been sentenced on April 6, 2022 to 36 months of probation after pleading guilty in federal court relating to his role in a health care fraud conspiracy.
DELUCA, age 39, a resident of Metairie, Louisiana, pled guilty on February 24, 2021 before U.S. District Judge Jane Triche Milazzo to Count One of a bill of information charging him with conspiracy to commit health care fraud, in violation of Title 18, United States Code, Section 1349.
According to the bill of information, in or around March 2014, continuing through in or around October 2016, co-defendants conspired to knowingly and willfully execute a scheme and artifice to defraud TRICARE, a federal health care benefit program affecting commerce, and other health care benefit programs.
Prime Pharmacy contracted with various entities, including Pharmacy Benefit Managers (“PBMs”), obligating Prime Pharmacy to collect copayments from beneficiaries in order to be reimbursed by various health care benefit programs, including TRICARE. Deluca worked with codefendants to market the compounded medications produced by Prime Pharmacy. Deluca and coconspirators worked with marketers outside of the state to find beneficiaries that were willing to receive medically unnecessary compounds and doctors willing to prescribe compounds without medical necessity.
Beginning in or around March 2014, and continuing through in or around April 2016, Prime Pharmacy dispensed prescriptions for High-Yield Compounded Medications to beneficiaries of TRICARE and other health care benefit programs that were not medically necessary, induced by kickback payments, or where copayments were either waived or credited by Prime Pharmacy, and accordingly, submitted or caused to be submitted false and fraudulent claims for reimbursement to TRICARE, other health care benefit programs, and PBMs.
DELUCA was also ordered to repay TRICARE $777,000 in restitution.
“Individuals involved in this scheme illegally billed TRICARE out of close to $15 million and I am pleased that the U.S. Attorney’s Office is requiring justice,” said Special Agent in Charge Cynthia Bruce, Office of Inspector General, Defense Criminal Investigative Service, Southeast Field Office. “There are no victimless crimes and DCIS agents will continue to pursue unscrupulous greedy individuals who steal from our military health care system and all taxpayers.”
“Those entrusted with providing health care services to veterans and their family members will be held accountable should they violate that trust,” said Special Agent in Charge Jeffrey Breen of the Department of Veterans Affairs Office of Inspector General’s South Central Field Office. “The VA OIG is grateful to the United States Attorney’s Office and our law enforcement partners for their efforts to achieve justice in this case.”
U.S. Attorney Evans praised the work of the Office of Inspector General, Defense Criminal Investigative Service, the Department of Homeland Security, the Department of Veterans Affairs – Office of Inspector General, and the United States Postal Service – Office of Inspector General.
The prosecution of the case is being handled by Assistant United States Attorney Kathryn McHugh.
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Mayor of Guayama Pleads Guilty to Accepting Bribes in Exchange for Executing Municipal Contracts and Approving Invoice PaymentsRead the Press Release
SAN JUAN, Puerto Rico – The mayor of Guayama, Puerto Rico, Eduardo Cintrón-Suárez, pleaded guilty today in Puerto Rico to engaging in a bribery scheme in which he received cash payments in exchange for executing municipal contracts and approving invoice payments for an asphalt and paving company.
Eduardo Cintrón-Suárez, 54, was the mayor and highest-ranking government official in the municipality of Guayama from 2013 until 2022. Starting in 2013, Cintrón-Suárez executed asphalt and paving contracts and also approved municipal payments to Company A. In exchange, Cintrón-Suárez agreed to receive a kickback payment corresponding to $1.00 per square meter of new asphalt laid by Company A in the municipality of Guayama under the contracts. This kickback scheme continued until approximately February 2021.
Cintrón-Suárez pleaded guilty to one count of conspiracy to engage in a bribery scheme. He faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico, and Special Agent in Charge Joseph González of the FBI’s San Juan Field Office made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant United States Attorney Seth A. Erbe of the United States Attorney’s Office for the District of Puerto Rico are prosecuting the case.
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Maryland Man Sentenced to 17 Years in Prison for Kidnapping and Leading Sex Trafficking ConspiracyRead the Press Release
U.S. District Court Judge Catherine C. Blake sentenced Joshua Lankford, aka “20-20,” aka “Light Bright,” aka “Yellow,” age 33, of Manchester, Maryland, was sentenced to 17 years in prison with five years of supervised release and $2,320 in restitution for kidnapping in relation to a sex trafficking conspiracy.
According to court documents, Lankford led and organized a conspiracy to commit sex trafficking by force, fraud or coercion and to commit kidnapping. The evidence indicated that Lankford recruited the victim, a young adult woman, to engage in prostitution under fraudulent pretenses. Lanford knew that the victim was addicted to heroin and withheld drugs from her when she did make enough money for him engaging in commercial sex. When the victim attempted to escape, Lankford and his three co-defendants drove the victim to a rural road on Maryland’s Eastern Shore where they beat, whipped and choked her with a belt, and then drove her to a hotel in Delaware to engage in prostitution. While incarcerated, Lankford told a co-conspirator that he intended to kill the victim to prevent her from testifying against them at trial.
“This defendant preyed on a vulnerable young woman and cruelly exploited her for his profit,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Sex trafficking is a heinous crime that has no place in our society. This sentence reflects the defendant’s horrific crime – a crime that deprives some of society’s most vulnerable members of their freedom and dignity. The Civil Rights Division will continue its vigorous enforcement of our human trafficking laws to hold perpetrators accountable and to seek justice for survivors of these heinous crimes.”
“Lankford exploited a young woman’s drug dependency and desire to establish a better life for herself and her child to enslave her and deprive her of human rights and dignity for his own profit,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Further, he attempted to continue the abuse the victim and sabotage our justice system by conspiring to kill the victim in the effort to derail the federal prosecution of his dehumanizing crimes” said U.S. Attorney Erek L. Barron for the District of Maryland. “Let this sentence serve as a light to survivors impacted by human trafficking and as a deterrent to those conspiring to commit heinous human trafficking crimes.”
“Joshua Lankford’s crimes were nothing short of horrific; he kidnapped and victimized a vulnerable woman then plotted to kill her in order to save himself,” said Special Agent in Charge James R. Mancuso of HSI Baltimore. “The atrocities of his crimes are clearly reflected in the severity of his sentence, and today, he will begin to pay his debt to society. HSI Baltimore remains committed to investigating human trafficking organizations as they prey upon the most vulnerable populations in our communities.”
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit https://www.justice.gov/usao-md/human-trafficking.
Report suspected instances of human trafficking and sex trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
The guilty plea was announced by Assistant Attorney General Kristen Clarke; U.S. Attorney Erek L. Barron for the District of Maryland; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Michael McDermott of the Federalsburg Police Department; and Colonel Melissa Zebley of the Delaware State Police Department.
The case was investigated by Homeland Security Investigations (HSI) Baltimore, the Maryland State Police, the Federalsburg Police Department, and the Delaware State Police. It was prosecuted by Assistant U.S. Attorney Mary Setzer for the District of Maryland and Trial Attorney Leah L. Branch of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Maryland Man Pleads Guilty to I-D FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Eric Kelechi Nwachukwu, 32, of Baltimore, MD, pleaded guilty before Senior U.S. District Judge William M. Skretny to fraud in connection with a means of identification. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that on June 20, 2020, Nwachukwu, and two passengers, were referred for secondary inspection by Customs and Border Protection at the Peace Bridge Port of Entry. During the secondary inspection, CBP Officers found multiple fraudulent driver’s licenses in the names of other individuals known to the government, as well as two cellular telephones. Homeland Security Investigations Special Agents subsequently executed search warrants on the phones and recovered identification consisting of names and dates of birth, among other information, belonging to approximately 30 other individuals known to the government. Nwachukwu possessed the identifications without authorization and with the intent to commit bank fraud. The investigation determined that between April 26 and September 25, 2019, Nwachukwu used the identifications of four these individuals to conduct approximately 11 unauthorized withdrawals totaling $52,800 at financial institutions in Washington, D.C., Virginia, and Maryland.
The sentencing is the result of an investigation Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
Sentencing is scheduled for July 6, 2022, at 9:00 a.m. before Judge Skretny.
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Magnolia Man Sentenced to 10 Years in Federal Prison for Drug TraffickingRead the Press Release
HOT SPRINGS – A Magnolia man was sentenced yesterday to 120 months in prison followed by four years of supervised release on one count of Distribution of a Controlled Substance Methamphetamine. The Honorable Chief Judge Susan O. Hickey presided over the sentencing hearing in the United States District Court in Hot Springs.
According to court documents, Detectives with the Hot Springs Police Department, and the Drug Enforcement Administration (DEA) launched an investigation into Brandon Dwight Jenkins, age 39, for drug trafficking in the Western District of Arkansas. In September of 2019, detectives conducted a controlled purchase of methamphetamine from Jenkins. The methamphetamine purchased was sent to the DEA lab where it tested positive for more than 50 grams of a mixture or substance containing methamphetamine.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Hot Springs Police Department and the DEA investigated the case.
Assistant U.S. Attorney’s David Harris and Bryan Achorn prosecuted the case.
Leader of North Carolina Chapter of Proud Boys Pleads Guilty to Conspiracy and Assault Charges in Jan. 6 Capitol BreachRead the Press Release
WASHINGTON – A leader of the Proud Boys pleaded guilty today to felony charges for his actions before and during the breach of the U.S. Capitol on Jan. 6, 2021. His and others’ actions disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.
Charles Donohoe, 34, of Kernersville, North Carolina, pleaded guilty to conspiracy to obstruct an official proceeding and assaulting, resisting or impeding officers. As part of the plea agreement, Donohoe has agreed to cooperate with the government’s ongoing investigation.
According to court documents, the Proud Boys describes itself as a “pro-Western fraternal organization for men who refuse to apologize for creating the modern world, aka Western Chauvinists.” Donohoe joined the Proud Boys in 2018 and became the president of his local Proud Boys chapter in North Carolina. As of Jan. 6, 2021, he was a fourth-degree member of the Proud Boys, the highest rank within the organization.
In December 2020, according to the court documents, Enrique Tarrio, then the Proud Boys national chairman, formed a new Proud Boys’ chapter known as the “Ministry of Self Defense,” which focused on the planning and execution of national rallies. The first objective of the Ministry of Self Defense was to plan for actions in relation to the Washington, D.C., rally on Jan. 6, 2021. Donohoe was a leader of this new chapter, which eventually grew to include at least 65 members.
At least as early as Jan. 4, 2021, Donohoe was aware that the Ministry of Self Defense’s leaders were discussing the possibility of storming the Capitol. Donohoe believed that storming the Capitol would achieve the group’s goal of stopping the government from carrying out the transfer of presidential power. Donohoe understood from discussions that the Proud Boys would pursue their objective through the use of force and violence.
On Jan. 6, 2021, Donohoe was part of a group of 100 or more Proud Boys who marched away from a rally near the Washington Monument towards the Capitol. Shortly after 12 p.m., the group was assembled two blocks west of the Capitol, and Donohoe understood that other Proud Boys leaders were searching for an opportunity to storm the Capitol. At approximately 1 p.m., the group arrived at the Capitol and began breaching the barriers surrounding the Capitol grounds. While in the West Plaza of the Capitol, Donohoe threw two water bottles at a line of law enforcement officers who were attempting to prevent the mob’s advance in the West Plaza at the Capitol building. As events continued, Donohoe joined with a crowd, including other Proud Boys, to push forward to advance up the concrete stairs toward the Capitol. The crowd overwhelmed law enforcement officers on the stairs, continued toward the Capitol, and ultimately entered the Capitol building after Donohoe’s co-defendant, Dominic Pezzola, allegedly broke open a window of the building.
Hours later, Donohoe posted messages to the Ministry of Self Defense Leadership Group celebrating the group’s actions that day.
Donohoe was arrested on March 11, 2021, and he has been detained since his arrest. He is among six defendants – including Tarrio and Pezzola – indicted in the District of Columbia on conspiracy and other charges; the others have pleaded not guilty. Donohoe faces up to 20 years in prison on the conspiracy charge and up to eight years in prison on the charge of assaulting, resisting or impeding officers. Both charges also carry potential financial penalties. No sentencing date was set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Department of Justice National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Office for the Middle District of North Carolina.
The case is being investigated by the FBI’s Washington and Charlotte Field Offices.
In the 15 months since Jan. 6, 2021, nearly 800 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including over 250 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing.
Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.
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Lackawanna County Man Sentenced to Seven Years in Prison for Role in Methamphetamine and Heroin Trafficking ConspiracyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Rudolph Ford, age 33, formerly of Olyphant, Lackawanna County, was sentenced on April 7, 2022, by U.S. District Court Judge Robert D. Mariani to seven years’ imprisonment for his role in a methamphetamine and heroin trafficking conspiracy.
According to United States Attorney John C. Gurganus, Ford previously pleaded guilty and admitted to participating in a conspiracy to distribute between 350 and 500 grams of crystal methamphetamine and 20 to 40 grams of heroin in the Lackawanna County area in 2018. Ford was one of five individuals indicted by a grand jury in December 2018 for methamphetamine trafficking in Luzerne, Lackawanna and Schuylkill Counties
The investigation was conducted by the Bureau of Alcohol, Tobacco and Firearms (ATF), the Pennsylvania State Police, the Kingston Police Department, the Luzerne County Drug Task Force, and the Pennsylvania Office of Attorney General. Assistant United States Attorney Robert J. O’Hara prosecuted the case.
Previously, Amanda Boyle, age 37, of Sweet Valley, Luzerne County, was sentenced by Judge Mariani to nine years in prison for her role in this same drug trafficking conspiracy.
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.
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Kansas Business Owner Pleads Guilty to Tax FraudRead the Press Release
WICHITA, KAN.– A Kansas man pleaded guilty to one count of failure to pay over payroll taxes.
According to court documents, Jesus Perez-Aguayo, 39, of Wichita as owner and operator of two companies, JLP Construction and JP Remodeling, has a responsibility to collect employee payroll taxes then forward the funds to the Internal Revenue Service. Between 2014 and 2019, Perez-Aguayo admits he didn’t pay the full amount due to the IRS, creating a tax loss of approximately $286,049. He also admits to using his business bank account for his personal expenses.
“Mr. Perez-Aguayo’s guilty plea shows that IRS Criminal Investigation will aggressively pursue those who commit employment tax fraud,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation. “When business owners collect and then fail to pay over employment taxes, it not only hurts the government but all of the honest and hardworking employees as well.”
After pleading guilty to failure to pay over payroll taxes, Perez-Aguayo faces up to five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
IRS Criminal Investigation is investigating the case.
Assistant U.S. Attorney Molly Gordon is prosecuting the case.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on April 7 was:
Kyle Jason Swindler, 41, of Billings, on charges of attempted coercion and enticement. If convicted of the most serious crime, Swindler faces a mandatory minimum 10 years to life in prison, a $250,000 fine and five years to life of supervised release. Swindler was detained pending further proceedings. The FBI investigated the case. PACER case reference. 22-27.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Independence Man Sentenced for Drug Trafficking, Illegal Firearms, CarjackingRead the Press Release
KANSAS CITY, Mo. – An Independence, Missouri, man was sentenced in federal court today for distributing methamphetamine, carjacking, and illegally possessing firearms after leading officers on three high-speed vehicle pursuits.
Charles V. Bai, 29, was sentenced by U.S. District Judge Howard F. Sachs to 13 years in federal prison without parole.
On Oct. 13, 2021, Bai pleaded guilty to one count of conspiracy to distribute methamphetamine, one count of willfully damaging federal property, two counts of possessing a firearm in furtherance of a drug-trafficking crime, one count of carjacking, and one count of brandishing of a firearm in connection with a crime of violence.
On March 8, 2020, Bai fired three shots at a motorist on Highway 24 in Independence, Mo., during a road rage incident. The victim reported that Bai, driving a stolen Toyota 4Runner, pulled up beside the driver’s side of his/her truck, brandished a black handgun with an extended magazine, and fired three shots at him/her, striking the victim’s vehicle with all three rounds.
On March 11, 2020, federal agents with the U.S. Marshals Service attempted to apprehend Bai on a felony arrest warrant. Bai, still driving the stolen Toyota 4Runner, struck a Marshals Service vehicle and was able to elude law enforcement after a brief vehicle pursuit was terminated due to Bai traveling at excessive speeds.
On March 17, 2020, an Independence police officer spotted the Toyota 4Runner parked in the garage at Bai’s residence. The officer recognized the vehicle as the same vehicle Bai had been driving during the high-speed chase a few days earlier. When Bai left the residence driving the Toyota 4Runner, officers attempted to stop him but he fled and a pursuit was initiated.
The pursuit continued for several minutes at speeds in excess of 100 miles per hour as Bai drove erratically, putting numerous motorists at risk, through Independence. The pursuit ended on Blue Ridge Cutoff at Interstate 70 after Bai’s vehicle was involved in a single car accident, rendering the vehicle inoperable. Bai fled on foot but was apprehended by officers. During the apprehension, law enforcement received an emergency call regarding a gun that was lying in the road on eastbound Interstate 70, outside of the center lane, west of Noland Road. An officer recovered the Ruger 9mm pistol with an extended magazine. The extended magazine of the handgun had been run over by passing motorists and approximately 26 9mm bullets were spread across Interstate 70. When officers searched the Toyota 4Runner they found four handgun magazines, 24 rounds of 9mm ammunition, and a handgun holster. Investigators also found Facebook messages from Bai offering the pistol for sale.
Bai told investigators after his arrest that he conspired with others to distribute methamphetamine. The conspiracy, which lasted from June 2019 to August 2020, distributed more than 15 kilograms of methamphetamine.
On July 14, 2020, Bai, along with co-defendants Destiny J. White, 33, of Blue Springs, Mo., and Kerri J. Seaboldt, 31, no address, carjacked a 2018 Chevrolet Camaro. White met the victim of the carjacking and rode with him in the Camaro as they were followed by Seaboldt in a separate vehicle. White directed the victim to an alleyway, where they met Seaboldt. White told the victim they were there to pick up Seaboldt because she was having an argument with her boyfriend. Seaboldt was on the phone with Bai and pretended to engage in an argument, as White and the victim waited. Meanwhile, Bai entered the alleyway, wielding a Glock .45-caliber semi-automatic handgun with an extended magazine. Bai pointed the handgun at the victim and ordered him to get out of the Camaro and leave his personal belongings. Bai then got into the driver’s seat and drove away.
Bai later fled from officers in the stolen vehicle, which he ultimately wrecked, then fled on foot. Officers were unable to apprehend Bai at that time.
White and Seaboldt have pleaded guilty to their roles in the carjacking and to using a firearm in a crime of violence, and await sentencing.
Bai was stopped by Kansas City police officers on Aug. 19, 2020. He was driving a 2006 Chevrolet Monte Carlo, but was unable to provide a driver’s license or proof of insurance on the car. The license plate on the Monte Carlo was registered to another vehicle. Bai was issued a municipal summons and released. Officers prepared to have the car towed, but found a loaded Smith & Wesson .40-caliber semi-automatic pistol in the driver’s side door panel (in a cavity where a speaker had been removed). Officers determined the pistol had been stolen.
Officers then located Bai, who was driving another vehicle, and arrested him. Bai had a bag of 3.6 grams of methamphetamine in his front pants pocket and had been holding a box that contained items associated with drug distribution.
This case is being prosecuted by Assistant U.S. Attorney Byron H. Black. It was investigated by the Independence, Mo., Police Department, the Kansas City, Mo., Police Department, the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operation LeGend
Operation LeGend is a federal partnership with local law enforcement to address the increase in homicides and violent crime in Kansas City, Mo., in 2020. The operation honors the memory of four-year-old LeGend Taliferro, one of the youngest fatalities during a record-breaking year of homicides and shootings. Additional federal agents were assigned to the operation from the FBI, Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the U.S. Marshals Service.
Huntsville Doctor Charged with Health Care Fraud ConspiracyRead the Press Release
HUNTSVILLE, Ala. – A Huntsville doctor has been charged for conspiring to commit health care fraud, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr., and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles.
An information filed yesterday in U.S. District Court charges, Dr. Eric Beck, 63, of Huntsville, Alabama, with one count of conspiracy to commit health care fraud. Beck operated Valley Center for Nerve Studies and Rehabilitation in Huntsville. According to the information, Beck conspired with the owner of QBR, a Huntsville-based testing company, to bill insurers millions of dollars for electro-diagnostic testing that its technicians performed, regardless of whether there was a medical need for them. Beck billed insurers for tests using his National Provider Identifier (NPI) number, even where he did not conduct the tests, supervise the tests, interpret the test results, or have anything to do with the tests beyond allowing his NPI number to be used for billing purposes.
In a plea agreement also filed yesterday, Dr. Beck agreed to plead guilty to the information. According to the plea agreement, the defendant caused health insurance programs to be billed over $28 million for medically unnecessary electro-diagnostic testing QBR performed. Dr. Beck has fully cooperated with the investigative team during its investigation.
The maximum penalty for conspiracy to commit health care fraud is five years in prison.
The FBI and HHS-OIG investigated the case, and Assistant U.S. Attorneys Don Long and J.B. Ward are prosecuting it.
An information contains only charges. A defendant is presumed innocent unless and until proven guilty.
Holyoke, Massachusetts Man Indicted for Selling Fentanyl and Heroin in Bennington County, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that John Pena Baez, 18, of Holyoke, Massachusetts has been indicted on drug distribution charges. Pena Baez pleaded not guilty today in United States District Court in Burlington, Vermont. U.S. Magistrate Judge Kevin J. Doyle ordered Pena Baez detained pending trial, which has not been scheduled.
According to court records, law enforcement conducted controlled purchases of fentanyl and heroin from Pena Baez in the Bennington area on February 22, 2022, March 15, 2022, and March 23, 2022. Law enforcement arrested Pena Baez on the evening of April 6, 2022. At the time of his arrest, Pena Baez was the front seat passenger in a vehicle. He was in possession of about 20 grams of suspected crack cocaine and about $7,100. Also in the vehicle, a loaded handgun was found on the floor area of the front passenger seat where Pena Baez had been sitting.
The U.S. Attorney emphasizes that the charges in the Indictment are merely accusations, and Pena Baez is presumed innocent unless and until he is proven guilty.
If convicted, Pena Baez faces up to twenty years of imprisonment and a fine of up to $1,000,000 on each offense. The actual sentence would be determined with reference to the federal sentencing guidelines.
The Vermont State Police, the Federal Bureau of Investigation, Homeland Security Investigations, and the Bennington, Vermont Police Department are the investigative agencies on this case.
Pena Baez was represented at today’s hearing by the Office of the Federal Defender. The prosecutor is Assistant U.S. Attorney John J. Boscia.
This prosecution is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case also is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
Haitian National Charged with International Narcotics Conspiracy, Narcotics Distribution, and Firearms OffenseRead the Press Release
Richard G. Frohling, United States Attorney for the Eastern District of Wisconsin, Robert J. Bell, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Chicago Field Division, and Renita D. Foster, Special Agent in Charge, DEA Caribbean Field Division announced the expulsion of Jean Eliobert Jasme (a/k/a “ED-1,” “Eddy One,” “Tio Loco”), age 60, from Haiti based on an indictment returned in the Eastern District of Wisconsin. Jasme was arraigned today before U.S. Magistrate Judge Stephen C. Dries in Milwaukee, Wisconsin. At today’s hearing, Judge Dries ordered that Jasme be detained pending trial.
On September 28, 2021, a grand jury in the Eastern District of Wisconsin returned an indictment against Jasme alleging one count of international drug trafficking, one substantive count of international drug trafficking, and one count of carrying a firearm during and in relation to drug trafficking. According to the indictment, from approximately February 2019 through September 28, 2021, Jasme conspired with others to distribute five kilograms or more of cocaine intending, knowing, or having reasonable cause to believe the cocaine would be unlawfully imported into the United States; on or about October 28, 2020, Jasme distributed five kilograms or more of cocaine intending, knowing, or having reasonable cause to believe the cocaine would be unlawfully imported into the United States; and on or about October 28, 2020, Jasme carried a firearm during and in relation to the aforementioned drug-trafficking offenses.
An indictment is merely an allegation and a defendant is presumed innocent until proved guilty beyond a reasonable doubt in a court of law.
The DEA Port-au-Prince Country Office and the DEA Milwaukee Field Office investigated this case. The Justice Department’s Office of International Affairs and the Haitian National Government, including the Haitian Ministry of Justice, the Haitian National Police and La Brigade de Lutte contre le Trafic de Stupéfiants (BLTS), provided substantial assistance in this matter. Assistant U.S. Attorneys Robert J. Brady, Jr. and Gail J. Hoffman of the Eastern District of Wisconsin are prosecuting the case.
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For further information contact:
Public Information Officer Kenneth Gales
(414) 297-1700
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Gilbert Man Sentenced to Prison for PPP FraudRead the Press Release
PHOENIX, Ariz. – James Theodore Polzin, 48, of Gilbert, Arizona, was sentenced last week by U.S. District Judge John J. Tuchi to 48 months in prison and ordered to pay over $2.2 million in restitution. Polzin pleaded guilty in October 2021 to fraudulently obtaining millions of dollars in Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans.
The Coronavirus Aid, Relief, and Economic Security Act (“CARES”) is a federal law designed to provide emergency financial assistance to the millions of Americans who are suffering financially due to the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain other expenses, including PPP loans.
Polzin submitted materially false loan applications that claimed non-existent employees and revenues for business entities he owned and operated. From April 2020 to August 2020, Polzin applied for loans totaling over $3.5 million. Polzin then used a portion of the proceeds for his own personal benefit, which included purchasing a Porsche, a home, and stashing money offshore.
This case was investigated by the Internal Revenue Service Criminal Investigation, Homeland Security Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Kevin M. Rapp, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00264-PHX-JJT
RELEASE NUMBER: 2022-039_Polzin# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Galesburg Man Sentenced to 10 Years in Prison for Possession of a Firearm as a FelonRead the Press Release
ROCK ISLAND, Ill. – A Galesburg, Illinois, man, Ricky Dale Niswonger, Jr., 32, of the 1300 block of Grand Avenue, was sentenced on April 6, 2022, to 10 years’ imprisonment, to be followed by three years of supervised release, for possession of a firearm by a felon.
According to court documents, law enforcement agents executed a search warrant on Niswonger’s car as part of an investigation into a suspected methamphetamine-trafficking operation. In the car, they found five firearms, ammunition, and a bulletproof vest.
At the sentencing hearing, Chief U.S. District Judge Sara Darrow found that Niswonger possessed the firearms in connection with methamphetamine trafficking. Chief Judge Darrow also found that Niswonger had attempted to intimidate a possible witness in his case, which warranted a sentencing enhancement for obstruction of justice.
Niswonger had pleaded guilty to the offense in April 2021. The statutory penalties for felon in possession of a firearm are a maximum of 10 years’ imprisonment and three years’ supervised release.
The Galesburg Police Department and the Federal Bureau of Investigation investigated the case. Assistant U.S. Attorneys Jennifer Mathew and Grant Thomas Hodges represented the government in the prosecution.
Four Men Indicted for Fentanyl Conspiracy That Resulted in Overdose DeathRead the Press Release
KANSAS CITY, Mo. – Four Kansas City, Missouri-area men have been indicted for their role in a conspiracy to distribute fentanyl, which resulted in an overdose death.
Dmitry Cattell, 22, Joseph Burgess, 21, and Jordon Simmer, 20, all of Kansas City, Mo., and Kelton Hill, 22, of Parkville, Mo., were charged in a nine-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, April 5. That indictment was unsealed and made public following the arrests of all four defendants on Thursday, April 7. They remain in federal custody pending a detention hearing on April 12, 2022.
The federal indictment alleges that all four defendants have participated in a conspiracy to distribute 400 grams or more of fentanyl since Sept. 12, 2019.
In addition to the drug-trafficking conspiracy, the indictment charges Cattell and Simmer with aiding and abetting each other to distribute fentanyl, the use of which caused the death of another person, on May 18, 2020. The victim of the fatal overdose is not identified in court documents.
Cattell is also charged with two counts of distributing fentanyl, one count of possessing a firearm in furtherance of a drug-trafficking crime, and one count of being an unlawful drug user in possession of a firearm. Cattell allegedly was in possession of a Taurus handgun on Nov. 10, 2020.
Simmer, Burgess, and Hill each are also charged with one count of possessing fentanyl with the intent to distribute.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Maureen Brackett and Assistant U.S. Attorneys Byron Black and Mary Kate Butterfield. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Platte County, Mo., Sheriff’s Department, the Clay County, Mo., Sheriff’s Department, the Kearney, Mo., Police Department, the Olathe, Kan., Police Department, and the Riverside, Mo., Police Department.
KC Metro Strike Force
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
Former Village of Brewster Police Department Officer Pleads Guilty to Bribery SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Wayne Peiffer, a former police officer in Brewster, New York, pleaded guilty to conspiracy to commit Hobbs Act extortion and conspiracy to commit bribery in violation of the Travel Act. Peiffer was charged for his role in protecting two Queens-based prostitution businesses from law enforcement when operating in Brewster, in exchange for free sexual services. Today’s proceeding was held before United States Chief Magistrate Judge Cheryl L. Pollak. When sentenced, Peiffer faces up to 25 years in prison and forfeiture of $5,000.
Breon Peace, United States Attorney for the Eastern District of New York, Ricky J. Patel, Acting Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Keechant L. Sewell, Commissioner, New York City Police Department (NYPD), announced the guilty plea.
“The defendant disgraced his sworn oath to protect and serve the community by using his badge as a shield for prostitution rings in exchange for sexual services from victims of sex trafficking,” stated United States Attorney Peace. “Rooting out official corruption and protecting victims and survivors of trafficking are top priorities of this Office.”
Mr. Peace expressed his appreciation to the Putnam County District Attorney’s Office and the Putnam County Sheriff’s Department for their assistance throughout this investigation.
“Sex trafficking and forced prostitution are crimes against the body and soul that shock the conscience of society,” stated HSI Acting Special Agent-in-Charge Patel. “For years, Wayne Peiffer abused his position as a law enforcement officer and betrayed the trust given to him by society, taking sexual favors from the women he was sworn to protect. Due to the hard work of HSI, EDNY prosecutors, and our law enforcement partners, Peiffer has pleaded guilty to his crimes and his network of violators has been dismantled. HSI will vigorously pursue criminals like Peiffer, whether they operate in the U.S. or abroad.”
“Corruption is a crime and a stark violation of a police officer’s sacred oath,” stated NYPD Commissioner Sewell. “With today’s guilty plea, this former officer admitted to disgracing his shield and betraying the public trust. The NYPD and our law-enforcement partners will continue to proactively identify and expose such unethical and immoral behavior committed by anyone sworn to enforce and uphold the law.”
According to court documents and facts presented during today’s proceeding, from approximately 2010 through October 2018, Peiffer provided protection to members of a prostitution business and a sex trafficking organization that each transported women from Queens to Brewster, New York, for the purposes of engaging in prostitution. Peiffer’s protection included advance notice of law enforcement activities and assistance with avoiding detection and apprehension. In exchange, Peiffer directed members of the prostitution business and sex trafficking organization to deliver women to him, including at the Brewster Police Department station, for free sexual services.
The government’s case is being prosecuted by the office’s Civil Rights Section. Assistant United States Attorneys Lauren H. Elbert, Nicholas J. Moscow and Rachel A. Bennek are in charge of the prosecution.
The Defendant:
WAYNE PEIFFER
Age: 48
Highland, New YorkE.D.N.Y. Docket No. 21-CR-622 (LDH)
Former USC Head Water Polo Coach Convicted by Jury in College Admissions SchemeRead the Press Release
BOSTON – The former head coach of the University of Southern California (USC) water polo teams was convicted by a federal jury today in connection with soliciting and accepting bribes to facilitate the admission of students to USC as purported athletic recruits.
This verdict represents the final conviction in the college admissions scandal involving William “Rick” Singer. 54 defendants have either pleaded guilty or were convicted by a federal jury.
Jovan Vavic, 60, of Rancho Palos Verdes, Calif., was convicted following a five-week jury trial of conspiracy to commit honest services mail and wire fraud, conspiracy to commit federal programs bribery and honest services wire fraud. U.S. Senior District Court Judge Indira Talwani scheduled sentencing for July 20, 2022. Vavic was arrested and charged in March 2019.
“With today’s conviction, the government has now held 55 individuals accountable for what is arguably one of the largest scandals in academia history. To say that the conduct in this case is reprehensible is an understatement. The rich, powerful and famous, dripping with privilege and entitlement, used their clout and money to steal college admissions spots from more hard-working, qualified and deserving students. This case was a righteous one and I could not be prouder of our prosecutors in securing this verdict,” said United States Attorney Rachael S. Rollins.
“Today’s verdict proves that Jovan Vavic participated in a rigged system that robbed students of their right to a fair shot at getting into the University of Southern California. By taking $220,000 in bribes, Vavic fostered a culture of corruption and greed that created an uneven playing field for hard-working student athletes said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “We are grateful for the jury’s decision to hold him accountable.”
“Today’s guilty verdict proved that Mr. Vavic’s credibility and character was for sale,” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service – Criminal Investigation Division, Boston Office. “Without the willful participation of University coaches and officials like Mr. Vavic, this scheme would have failed at the outset. Instead, Mr. Vavic and others abused the positions they held at prestigious universities for nothing other than financial gain.”
“Today’s action shows that Mr. Vavic abused his position of trust for personal gain, and in doing so, damaged the reputation of the school and hurt the school and the legitimate students he was supposed to serve. That is unacceptable,” said Terry Harris, Special Agent in Charge of the U.S. Department of Education Office of Inspector General Eastern Regional Office. “Deservedly, he will now be held accountable for his criminal actions.”
Mr. Vavic was a highly successful coach and served as head coach of the men’s and women’s water polo teams at USC for more than 20 years. During this time, he led the teams to a history-making more than a dozen national championships.
Evidence at trial established that Mr. Vavic participated in an illicit path that Singer, the scheme’s mastermind, dubbed the “side door”— securing admission to selective colleges via athletics, regardless of whether or not the students actually played the sports.
Beginning in at least 2013, Mr. Singer made payments to a USC account that funded Mr. Vavic’s team and paid private school tuition for his children. In return Mr. Vavic would flag students as purported water polo players to be admitted as recruited athletes. Mr. Vavic also agreed to recruit other coaches to join in the scheme.
Singer previously pleaded guilty and is schedule to be sentenced at a later date.
Case information, including the status of each defendant, is available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of wire fraud and honest services wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
U.S. Attorney Rollins, FBI SAC Bonavolonta, IRS CI SAC Simpson and DOE OIG SAC Harris made the announcement today. Assistant U.S. Attorneys Stephen E. Frank, Leslie A. Wright and Ian Stearns of Rollins’ Securities, Financial & Cyber Fraud Unit are prosecuting the case.
UPDATE: In September 2022, the Court ordered a new trial for the defendant in this case.
Former Trousdale Turner Supervisory Corrections Officer Pleads Guilty to Civil Rights ViolationsRead the Press Release
NASHVILLE – A former supervisory corrections officer at the Trousdale Turner Correctional Facility in Hartsville, Tennessee, pleaded guilty today to two counts of civil rights violations.
Kenan Lister, 42, of Clarksville, Tennessee, pleaded guilty to one count of deprivation of rights under color of law for using unlawful force on an inmate, and one count of deprivation of rights under color of law for being deliberately indifferent to the inmate’s medical needs.
“All persons, including prison inmates, are guaranteed under the Constitution the right to be free from cruel and unusual punishment,” said U.S. Attorney Wildasin. “I commend our partners at the FBI and the prosecution team for their diligent work in bringing this case and ensuring accountability for the unlawful actions of a prison guard.”
Lister was indicted in September 2021 and today admitted that, on August 30, 2019, he was on duty as the prison’s security threat group coordinator and escorted an inmate to a holding cell after the inmate assaulted a prison employee. At the time, and while the inmate was sitting in a holding cell and not resisting, Lister punched the inmate in the head, knocking him to the ground, and then kicked, punched, and struck the inmate multiple times in his head, chest, and torso after he was on the ground. The assault caused serious bodily injury to the inmate, including fracturing his ribs and puncturing his lung, which required the inmate to undergo surgery and to be hospitalized for several days.
Despite Lister’s knowledge that the inmate needed medical attention, Lister failed to provide medical care or to make the necessary notifications to get the inmate medical care and, instead, locked the inmate in a holding cell.
“When a correctional officer violates the civil rights of an inmate whose safety he is charged with, it undermines the respect and reputation of all law enforcement officers," said Special Agent in Charge Douglas Korneski of the FBI Memphis Field Office. "The FBI will vigorously investigate and bring to justice any law enforcement officer who violates the constitution and the trust of the people."
Lister faces up to 10 years in prison on each count when he is sentenced on August 17, 2022.
This case was investigated by the FBI. Assistant U.S. Attorney Amanda J. Klopf and Trial Attorney Michael J. Songer of the Department’s Civil Rights Division are prosecuting the case.
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Former Tennessee Supervisory Corrections Officer Pleads Guilty to Civil Rights Violations for Assaulting InmateRead the Press Release
Former supervisory corrections officer Kenan Lister, 43, pleaded guilty today to two civil rights offenses: one count of deprivation of rights under color of law for using unlawful force on an inmate and one count of being deliberately indifferent to the inmate’s medical needs.
The facts admitted in the plea agreement establish that, on Aug. 30, 2019, Lister assaulted an inmate in a holding cell at the Trousdale Turner Correctional Facility in Hartsville, Tennessee. At the time, Lister was on duty as the facility’s security threat group coordinator. While the inmate was sitting calmly in a holding cell, Lister punched the inmate in the head, knocking him to the ground. Lister then kicked, punched, and struck the inmate multiple times in his head, chest, and torso after he was on the ground and not resisting. The assault fractured the inmate’s ribs and punctured his lung. After the assault, Lister knew that the inmate had serious medical needs. Despite this knowledge, Lister failed to provide medical care to the inmate or obtain medical care from others. Instead, Lister left the inmate locked in a holding cell and filed a report that omitted any mention of his assault.
“The defendant abused his power as a supervisory corrections officer by brutally assaulting a person in his custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Officers who willfully use excessive force in our jails and prisons not only violate the Constitution, they erode the public trust in law enforcement. The Justice Department is committed to prosecuting these abuses of power and upholding the Constitutional rights that protect us all.”
“All persons, including prison inmates, are guaranteed under the Constitution the right to be free from cruel and unusual punishment,” said U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. “I commend our partners at the FBI and the prosecution team for their diligent work in bringing this case and ensuring accountability for the unlawful actions of a prison guard.”
“When a correctional officer violates the civil rights of an inmate whose safety he is charged with, it undermines the respect and reputation of all law enforcement officers," said Special Agent in Charge Douglas Korneski of the FBI Memphis Field Office. “The FBI will vigorously investigate and bring to justice any law enforcement officer who violates the constitution and the trust of the people."
Sentencing is scheduled for August 17. Lister faces a maximum sentence of 10 years in prison, as well as a maximum of three years of supervised release and a fine of up to $250,000.
The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Amanda J. Klopf for the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.
Former State Department Employee Sentenced to Prison for Honest Services FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that MAY SALEHI, a former State Department employee, was sentenced today to 12 months in prison for conspiring to commit honest services fraud. SALEHI was a longtime State Department employee who was involved in evaluating bids for critical overseas government construction projects such as U.S. embassies and consulates. SALEHI gave confidential inside bidding information to a Government contractor, and received $60,000 in kickback payments in return. SALEHI was sentenced by United States District Judge Jed S. Rakoff.
U.S. Attorney Damian Williams said: “As a State Department employee, May Salehi was entrusted to serve the public. Instead, she abused her position to line her own pockets. Salehi revealed, and traded on, confidential information—corrupting the bidding process and receiving lucrative kickbacks in return. Thanks to our partners at the State Department’s Office of Inspector General, Salehi’s crime of deception has been uncovered, and Salehi has now been sentenced to prison.”
According to the allegations in the Information, court filings, and statements made in court:
From 1991 until mid-2021, MAY SALEHI was a State Department employee. For many years, SALEHI worked as an engineer in the State Department’s Overseas Building Operations division (“OBO”), which directs the worldwide overseas building program for the State Department and the U.S. Government community serving abroad.
In 2016, the State Department solicited bids for a multimillion-dollar construction project known as a compound security upgrade to be performed at the U.S. Consulate in Bermuda (the “Bermuda Project”). The bidding process involved the submission of blind, sealed bids from various bidders. Six companies submitted sealed bids, one of which was named Montage, Inc. (“Montage”).
SALEHI was involved in the Bermuda Project in several respects. Among other things, SALEHI served as the Chair of the Technical Evaluation Panel (“TEP”)—a panel of experts that evaluates the technical aspects of bids, including whether they meet the State Department’s structural and security needs. In connection with the Bermuda Project, the TEP determined that five bids—including Montage’s bid—were technically acceptable.
In September 2016, the State Department’s employees who evaluate the cost of bids gave these five bidders—including Montage—the opportunity to re-bid, if they wished to do so. Montage had two days to decide whether to submit a re-bid. During that two-day window, Montage’s principal, Sina Moayedi, contacted SALEHI by phone to seek confidential inside bidding information about the relationship between Montage’s bid and those of its competitors. SALEHI agreed to meet Moayedi in person during the work day. In response to Moayedi’s inquiry, SALEHI told him that all five bids were low, and that his bid was lowest by about a million dollars. Moayedi said that he would give SALEHI 1% of the contract value if he won; and as she walked away, SALEHI proposed a cover story by stating: “I have rugs to sell.” SALEHI knew that it was unlawful to provide this confidential bidding information to a bidder. After Moayedi received this inside information from SALEHI, Montage immediately increased its bid by nearly $1 million. In its revised bid to the State Department, Moayedi and Montage lied as to the reason it had increased its bid by nearly $1 million, falsely claiming that it had discovered “an arithmetic error” in its estimates. Montage was ultimately awarded the Bermuda Project with a revised bid of $6.3 million.
In the months that followed, Moayedi provided SALEHI a total of $60,000 in kickbacks, which he paid in three installments. In making these kickback payments, Moayedi used intermediaries to obscure the link between him and SALEHI. To conceal the true purpose of the kickback payments, as she had suggested, SALEHI gave Moayedi a Persian rug, by providing it to an intermediary who passed it to Moayedi. SALEHI did not report the $60,000 kickback payments on her taxes, her State Department financial disclosure forms, or her application to renew her top-secret national security clearance.
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In addition to her prison sentence, SALEHI, 66, of Washington, D.C., was sentenced to three years of supervised release. SALEHI was also ordered to forfeit $60,000 and to pay a $500,000 Fine.
Sina Moayedi has been charged with wire fraud, conspiracy to commit wire fraud, conspiracy to commit honest services wire fraud, and major fraud against the United States. The charges against Moayedi are pending. See 22 Cr. 188 (JSR).
Mr. Williams praised the outstanding investigative work of the State Department OIG, Special Agents from the United States Attorney’s Office for the Southern District of New York, and IRS‑CI.
The Office’s Complex Frauds and Cybercrime Unit is handling this criminal case. Assistant U.S. Attorneys Michael D. Neff and Louis A. Pellegrino are in charge of the prosecution.
Former Inmate in the Montgomery County Department of Correction and Rehabilitation Sentenced to over Five Years in Federal Prison for a Credit Card Fraud SchemeRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel today sentenced Abraham Oliver, age 26, a former inmate in the Montgomery County Department of Corrections, to 61 months in federal prison, followed by three years of supervised release, for conspiracy to commit mail and wire fraud and for aggravated identity theft while he was incarcerated. Further, Judge Hazel ordered the defendant to forfeit approximately $12,166.93 held in inmate accounts and pay restitution in the full amount of the victim’s losses, which is $31,252.35.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Acting Postal Inspector in Charge Greg L. Torbenson of the U.S. Postal Inspection Service - Washington Division; and Chief Marcus Jones of the Montgomery County Police Department.
According to Oliver’s plea agreement, between January and April 2018, while Oliver was an inmate in the Montgomery County Department of Correction and Rehabilitation (DOCR), he conspired with co-defendant Octavia Ikea Terry to fraudulently obtain and use the credit and debit card numbers of others, without their knowledge or permission.
Specifically, Oliver admitted that he directed Terry to purchase bitcoin, then use the bitcoin to purchase credit and debit card numbers on the darkweb. Oliver further instructed Terry to identify available credit and debit counts available for sale that were from Maryland then use the debit and credit card numbers to make deposits into Oliver’s inmate escrow account and other inmates’ escrow accounts. Oliver provided Terry with the inmate numbers during telephone calls he made from DOCR to Terry. Oliver also told Terry that other inmates would send Terry checks from their resident inmate accounts and instructed Terry to set up a post office box in North Carolina to receive the checks.
Following Oliver’s instructions, Terry used the fraudulently obtained credit and debit card numbers to make unauthorized deposits totaling $31,252.35 into the accounts of at least 12 different inmates, including $5,579.10 into Oliver’s inmate account. The debit and credit accounts from which the money was drawn included the accounts of four identity theft victims. Inmates, including Oliver and two other inmates, authorized a total of $9,325 to be sent from their inmate escrow accounts to Terry at various addresses, including the post office box in North Carolina set up at Oliver’s direction.
The fraudulent transactions resulted in chargebacks to victim Company A of $31,252.35.
Octavia Ikea Terry, age 25, of Maxton, North Carolina, pleaded guilty to her role in the conspiracy and is awaiting sentencing.
United States Attorney Erek L. Barron praised the U.S. Postal Inspection Service and the Montgomery County Police Department for their work in the investigation and thanked the Montgomery County Department of Correction and Rehabilitation for its assistance. Mr. Barron thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to report fraud, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/report-fraud.
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Former Goldman Sachs Investment Banker Convicted in Massive Bribery and Money Laundering SchemeRead the Press Release
A former Managing Director of The Goldman Sachs Group Inc. (Goldman Sachs) was convicted today by a federal jury in the Eastern District of New York for conspiring to commit bribery, to circumvent internal accounting controls, and to commit money laundering in connection with a multibillion-dollar scheme involving Malaysia’s state-owned investment and development fund, 1Malaysia Development Berhad (1MDB).
“Roger Ng participated in a massive bribery and money laundering scheme involving the corruption of high-level foreign officials in Malaysia and the United Arab Emirates,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “This trial demonstrates the commitment by the Department of Justice to prosecute and hold accountable individuals who engage in corruption and use our financial system to launder funds related to their illicit schemes. We will continue to pursue criminal wrongdoers and will seek to bring them to justice, wherever they are, deprive them of their ill-gotten gains, and, wherever possible, return corrupt proceeds to those harmed by corruption — as we have throughout our longstanding investigation into the 1MDB scheme.”
Following an eight-week trial, Ng Chong Hwa, aka Roger Ng, of Malaysia, was found guilty of conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to a dozen foreign officials in Malaysia and the United Arab Emirates, conspiring to violate the FCPA by circumventing the internal accounting controls of Goldman Sachs, and conspiring to launder billions of dollars related to the scheme.
“Today’s verdict is a resounding victory for justice and for the people of Malaysia who are the victims of this massive scheme carried out in a frenzy of greed by the defendant and his co-conspirators to get rich by stealing millions of dollars from the 1MDB fund intended to benefit that country’s economy,” said U.S. Attorney Breon Peace for the Eastern District of New York. “The Department of Justice and this office are committed to addressing corporate culture by vigorously combating white-collar crime and holding corrupt individuals accountable for violating U.S. laws here and abroad in order to enrich themselves.”
“The FBI and our domestic and international law enforcement partners maintain an unwavering commitment to combating international corruption,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “This conviction serves a reminder that the FBI will always hold accountable those who abuse the U.S. financial system to further their corrupt schemes, as well as the persons and companies that enable them.”
“Today’s conviction of Roger Ng demonstrates the cooperation of law enforcement and prosecutorial agencies around the world to combat foreign corruption,” said Special Agent in Charge Ryan L. Korner of IRS Criminal Investigation (IRS-CI), Los Angeles Field Office. “Roger Ng and his co-conspirators enriched themselves while depriving the citizens of Malaysia of billions of dollars that were supposed to be invested on their behalf. The Internal Revenue Service-Criminal Investigation is proud to stand with our law enforcement partners in the United States and around the world who participated in this most significant investigation.”
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people.
Ng was employed as a Managing Director by various subsidiaries of Goldman Sachs and acted as an agent and employee of Goldman Sachs from approximately 2005 to May 2014, and was also a stockholder of Goldman Sachs.
According to evidence presented at trial, between approximately 2009 and 2014, Ng and his co-conspirators laundered billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs, known as “Project Magnolia,” “Project Maximus” and “Project Catalyze.” As part of the scheme, Ng and others, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, conspired to and did pay more than $1 billion in bribes to 12 government officials in Malaysia and the United Arab Emirates to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to and did launder the proceeds of their criminal conduct through the U.S. financial system, including funding major Hollywood films such as “The Wolf of Wall Street” and purchasing, among other things, a $51 million Jean-Michael Basquiat painting from New York-based Christie’s auction house, a $23 million diamond necklace from a New York jeweler, millions of dollars in Hermès handbags from a dealer based on Long Island, and a luxury real estate property in Manhattan.
Ng and his co-conspirators, including co-defendant Low Taek Jho, aka Jho Low, a wealthy Malaysian socialite, used Low’s close relationships with high-ranking government officials in Malaysia and the United Arab Emirates to obtain and retain business for Goldman Sachs through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng conspired with others at Goldman Sachs to and did circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenues, while Ng received $35 million for his role in the bribery and money laundering scheme. In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB.
Low remains a fugitive. In August 2018, Leissner pleaded guilty to conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and United Arab Emirates officials and circumventing the internal accounting controls of Goldman Sachs. Leissner agreed to forfeit $43 million and shares of stock valued at more than $200 million, and is awaiting sentencing.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the Department of Justice’s Criminal Division’s Fraud Section and Money Laundering and Asset Recovery Section (MLARS), and the U.S. Attorney’s Office for the Eastern District of New York. GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York. Goldman Sachs paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Criminal Division’s Fraud Section, MLARS, and the U.S. Attorney’s Office for the Eastern District of New York. Co-Principal Deputy Chief Brent Wible of the Fraud Section, Bank Integrity Unit Chief Jennifer E. Ambuehl of MLARS, and Assistant U.S. Attorneys Alixandra E. Smith, Drew G. Rolle, and Dylan Stern of the Eastern District of New York are prosecuting the case. The Justice Department’s Office of International Affairs provided critical assistance.
The department appreciates the significant assistance provided by the U.S. Securities and Exchange Commission; the Board of Governors of the Federal Reserve System, including the Federal Reserve Bank of New York; the Government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia; the United Kingdom Financial Conduct Authority; the United Kingdom Prudential Regulation Authority; the United Kingdom National Crime Agency (NCA); the Attorney General's Chambers of the Territory of the British Virgin Islands; the Attorney General’s Office of the Bailiwick of Guernsey and the Guernsey Economic Crime Division; the International Anti-Corruption Coordinate Centre; the Attorney General’s Chambers of Singapore; the Singapore Police Force - Commercial Affairs Division; the Monetary Authority of Singapore; the Office of the Attorney General and the Federal Office of Justice of Switzerland; the judicial investigating authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg; and the Ministry of Justice of France.
The Criminal Division’s 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/fcpa.
The Bank Integrity Unit in MLARS investigates and prosecutes complex, multi-district, and international criminal cases involving financial institutions. The unit’s prosecutions focus on banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
Note: Click to view a video statement from AAG Polite.
Former Goldman Sachs Investment Banker Convicted in Massive Bribery and Money Laundering SchemeRead the Press Release
BROOKLYN, NY – Ng Chong Hwa, also known as “Roger Ng,” a citizen of Malaysia and a former Managing Director of The Goldman Sachs Group, Inc. (Goldman Sachs), was convicted today by a federal jury in Brooklyn on all counts of a superseding indictment charging him with conspiring to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), conspiring to violate the Foreign Corrupt Practices Act (FCPA) by paying bribes to a dozen government officials in Malaysia and Abu Dhabi, and conspiring to violate the FCPA by circumventing the internal accounting controls of Goldman Sachs. The verdict followed a seven-week trial before United States Chief District Judge Margo K. Brodie.
Breon Peace, United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Ryan Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), announced the verdict.
“Today’s verdict is a resounding victory for justice and for the people of Malaysia who were the victims of this massive scheme that the defendant and his partners in crime carried out in a frenzy of greed to get rich by stealing millions of dollars from the 1MDB fund intended to benefit that country’s economy,” stated United States Attorney Peace. “The Department of Justice and this Office are committed to addressing corporate culture by vigorously combating white-collar crime and holding corrupt individuals who seek to enrich themselves accountable for violating U.S. laws here and abroad.”
“Roger Ng participated in a massive bribery and money laundering scheme involving the corruption of high-level foreign officials in Malaysia and the United Arab Emirates,” stated Assistant Attorney General Polite. “This trial demonstrates the commitment by the Department of Justice to prosecute and hold accountable individuals who engage in corruption and use our financial system to launder funds related to their illicit schemes. We will continue to pursue criminal wrongdoers and will seek to bring them to justice, wherever they are, deprive them of their ill-gotten gains, and, wherever possible, return corrupt proceeds to those harmed by corruption — as we have throughout our longstanding investigation into the 1MDB scheme.”
“By virtue of today’s verdict, Roger Ng stands convicted of significant crimes for his role in a conspiracy to launder billions of dollars misappropriated from 1MDB, a Malaysian state-owned fund created to pursue economic growth opportunities for Malaysia and its people. While Ng and his associates greedily lined their pockets, the Malaysian people were left as victims who potentially suffered lost economic growth opportunity. The FBI and our partners remain committed to identifying those who choose to engage in foreign corrupt practices and bringing justice to them around the world,” stated FBI Assistant Director-in-Charge Driscoll.
“Today’s conviction of Roger Ng demonstrates the cooperation of law enforcement and prosecutorial agencies around the world to combat foreign corruption. Roger Ng and his co-conspirators enriched themselves while depriving the citizens of Malaysia of billions of dollars that was supposed to be invested on their behalf,” stated IRS-CI Special Agent-in-Charge Ryan L. Korner. “The Internal Revenue Service-Criminal Investigation is proud to stand with our law enforcement partners in the United States and around the world who participated in this most significant investigation.”
1MDB is a Malaysian state-owned and controlled fund created to pursue investment and development projects for the economic benefit of Malaysia and its people.
Ng was employed as a Managing Director by various subsidiaries of Goldman Sachs and acted as an agent and employee of Goldman Sachs from approximately 2005 to May 2014.
As proved at trial, between approximately 2009 and 2014, Ng conspired with others to launder billions of dollars misappropriated and fraudulently diverted from 1MDB, including funds 1MDB raised in 2012 and 2013 through three bond transactions it executed with Goldman Sachs, known as “Project Magnolia,” “Project Maximus” and “Project Catalyze.” As part of the scheme, Ng and others, including Tim Leissner, the former Southeast Asia Chairman and participating managing director of Goldman Sachs, conspired to pay more than a billion dollars in bribes to a dozen government officials in Malaysia and Abu Dhabi to obtain and retain lucrative business for Goldman Sachs, including the 2012 and 2013 bond deals. They also conspired to launder the proceeds of their criminal conduct through the U.S. financial system by funding major Hollywood films such as “The Wolf of Wall Street,” and purchasing, among other things, artwork from New York-based Christie’s auction house including a $51 million Jean-Michael Basquiat painting, a $23 million diamond necklace, millions of dollars in Hermes handbags from a business based on Long Island, and a luxury real estate in Manhattan.
Ng, co-defendant Low Taek Jho, a wealthy Malaysian socialite also known as “Jho Low,” and their co-conspirators used Low’s close relationships with high-ranking government officials in Malaysia and Abu Dhabi to obtain and retain business for Goldman Sachs through the promise and payment of hundreds of millions of dollars in bribes. In the course of executing the scheme, Ng conspired with others at Goldman Sachs to circumvent the investment bank’s internal accounting controls. Through its work for 1MDB during that time, Goldman Sachs received approximately $600 million in fees and revenues, while Ng received $35 million for his role in the bribery and money laundering scheme. In total, Ng and the other co-conspirators misappropriated more than $2.7 billion from 1MDB.
The evidence at trial included testimony from 26 witnesses called by the government; emails, phone records and bank records showing the defendant’s share of the scheme’s criminal proceeds was transferred to a bank account held by an offshore shell company in the name of the defendant’s mother-in-law; travel records; and receipts for luxury items purchased with the criminal proceeds.
Low remains a fugitive. In August 2018, Leissner pleaded guilty to a two-count criminal information charging him with conspiring to launder money and conspiring to violate the FCPA by both paying bribes to various Malaysian and Abu Dhabi officials and circumventing the internal accounting controls of Goldman Sachs. Leissner has been ordered to forfeit $43 million and shares of stock valued at more than $200 million. Leissner is awaiting sentencing.
In October 2020, Goldman Sachs and Goldman Sachs (Malaysia) Sdn. Bhd. (GS Malaysia), its Malaysian subsidiary, admitted to conspiring to violate the anti-bribery provisions of the FCPA in connection with the scheme. Goldman Sachs entered into a deferred prosecution agreement with the United States Attorney’s Office for the Eastern District of New York and the Department of Justice’s Criminal Division, Fraud Section and Money Laundering and Asset Forfeiture (MLARS), and GS Malaysia pleaded guilty in the U.S. District Court for the Eastern District of New York to a one-count criminal information. Goldman Sachs also paid more than $2.9 billion as part of a coordinated resolution with criminal and civil authorities in the United States, the United Kingdom, Singapore, and elsewhere.
The investigation was jointly conducted by the FBI’s International Corruption Unit and IRS-Criminal Investigation. The government’s criminal case is being handled by the Business and Securities Fraud Section of the United States Attorney’s Office for the Eastern District of New York and the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Fraud Section. Assistant United States Attorneys Alixandra E. Smith, Drew G. Rolle and Dylan Stern, and Bank Integrity Unit Chief Jennifer E. Ambuehl of MLARS and Co-Principal Deputy Chief of the Fraud Section Brent Wible are prosecuting the case. The Criminal Division’s Office of International Affairs provided critical assistance in this case.
The Department also appreciates the significant cooperation and assistance provided by the U.S. Securities and Exchange Commission, and the Board of Governors of the Federal Reserve System along with the Federal Reserve Bank of New York. The Department also appreciates the significant assistance provided by the government of Malaysia, including the Attorney General’s Chambers of Malaysia, the Royal Malaysia Police and NCB Interpol Malaysia. The Department also appreciates the significant assistance provided by the Attorney General’s Chambers of Singapore, the Singapore Police Force-Commercial Affairs Division, the Office of the Attorney General of Switzerland, the Judicial Investigating Authority of the Grand Duchy of Luxembourg and the Criminal Investigation Department of the Grand-Ducal Police of Luxembourg.
The Defendant:
NG CHONG HWA (also known as “Roger Ng”)
Age: 49
Kuala Lumpur, MalaysiaE.D.N.Y. Docket No. 18-CR-538 (MKB)
Former Florida Election Commission Attorney Sentenced to 72 Months in Federal Prison for Conspiracy and Distribution of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Eric Matthew Lipman, 60, of Tallahassee, Florida, was sentenced to 72 months in federal prison for conspiring to distribute, receive, and possess material constituting child pornography, and distributing material constituting child pornography after pleading guilty on December 13, 2021. The sentence was announced by Jason R. Coody, United States Attorney for the Northern District of Florida.
“Those who seek to view and share child pornography facilitate the abuse of children by those who produce and profit from this illegal content,” stated U.S. Attorney Coody. “With the assistance of our law enforcement partners, we will ensure that those who engage in such heinous conduct will be held accountable for their actions.”
Between February 8, 2021, and February 11, 2021, Lipman, along with others, was a participant in Mega.NZ chat groups that distributed, received, possessed, and discussed child pornography images and videos. Mega.NZ was an Internet cloud storage and file hosting service based in New Zealand. Lipman conspired with the members of the chat groups to distribute, receive, and possess material constituting child pornography, and posted child pornography material within Mega.NZ chat groups for the benefit of other like-minded participants. The pornographic material that Lipman distributed, and that was found on Lipman’s electronic devices, involved prepubescent minors as well as minors under the age of 12.
Lipman’s prison sentence will be followed by 9 years of supervised release. He will also be required to register as a sex offender and will be subject to sex offender conditions.
“This child predator was part of a conspiracy to sexually exploit young children,” said HSI Tampa Special Agent in Charge John Condon. “Because of the investigative work of HSI and our law enforcement partners at the Leon County Sheriff’s Office, he will no longer be able to harm our most vulnerable.”
“LCSO applauds the work of investigators and the collaborative efforts by all entities involved in seeing justice carried out in this case,” said Leon County Sheriff Walt McNeil. “We must continue to do our due diligence in protecting our most vulnerable and precious members of our community.”
This case was investigated by the Homeland Security Investigations and the Leon County Sheriff’s Office. Assistant United States Attorney Justin M. Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Dallas Police Officer Sentenced to 30 Months for Lying About Conversations with Ok Corral OwnerRead the Press Release
A former Dallas police officer was sentenced Thursday evening to 30 months in federal prison for lying to federal agents about his role in obstructing an FBI investigation into a nightclub magnate later convicted of a massive drug conspiracy, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Eddie Villarreal, 53, pleaded guilty in January 2018 to making a false statement to the FBI. He was sentenced Thursday by U.S. District Judge Sam A. Lindsay, who ordered him to pay a fine of $10,000.
“This is not what a police officer is supposed to do. It is the opposite,” Judge Lindsay remarked at sentencing. “When that trust is broken, a police officer must be held accountable, that’s the bottom line.”
According to his plea papers, during his tenure as a Dallas police officer, Mr. Villarreal also served as head of security for Alfredo Hinojosa, the owner of a string of nightclubs including Ok Corral and Far West, and routinely assisted Mr. Hinojosa and his employees with criminal matters.
On April 14, 2014, Mr. Villarreal admitted, he answered a call from club promoter Martin “Chava” Rodriguez, who informed Mr. Villarreal that he suspected he was being followed by law enforcement. (In fact, he was being tailed by FBI.) Mr. Villarreal instructed Mr. Rodriguez to pull over, then drove out to meet him.
Upon arriving, Mr. Villarreal pulled up behind the FBI vehicle and activated his red and blue emergency lights. After confirming the vehicle’s occupants were FBI agents, he introduced himself as a DPD officer and offered to help them with their investigation into Mr. Rodriguez. In reality, Mr. Villarreal later admitted, he never intended to assist the FBI, but rather wanted to learn more about the investigations in order to pass the information along to Mr. Hinojosa, Mr. Rodriguez, and others.
Shortly thereafter, Mr. Villarreal called one of the agents and provided information about a target who he said was dealing cocaine out of nightclub bathrooms. He later admitted that he did so in order to deflect attention from Mr. Hinojosa.
The following day, FBI agents called Mr. Villarreal to advise him of a grand jury investigation into Mr. Rodriguez and others.
Subsequent to that conversation, Mr. Villarreal admitted, he visited Mr. Hinojosa at his office and informed him of the investigation and its targets, telling Mr. Hinojosa, “you got detectives that don’t know anything about you… I can get in trouble if they think I’m warning you.” Upon learning that the FBI might be surveilling his nightclubs, Mr. Hinojosa said he wanted to “tighten down” on drug sales in club bathrooms.
On May 7, 2015, FBI agents reached out to Mr. Villarreal to ask if he had informed anyone of the Rodriguez stop or grand jury investigation. Mr. Villarreal denied any such disclosures.
He resigned from the police department five months later, in October 2015.
“By alerting his clients to an ongoing investigation, Mr. Villarreal undermined the hard work of his law enforcement colleagues and sullied his badge,” said U.S. Attorney Chad Meacham. “He took an oath to serve and protect – and promptly did the opposite. The Justice Department will not allow this kind of misconduct to go unpunished.”
“The public expects police officers to be honest, trustworthy, and to prioritize protecting their community from dangerous individuals. The defendant not only failed to protect his community, but also lied to a fellow law enforcement officer. He provided sensitive information that could have jeopardized the outcome of a criminal investigation. The FBI and our law enforcement partners will hold accountable any officer that breaks the law and endangers the lives of others,” said FBI Dallas Special Agent in Charge Matthew DeSarno.
Mr. Hinojosa and Mr. Rodriguez were later convicted at trial of managing drug premises, conspiracy to manage drug premises, and conspiracy to possess with intent to distribute cocaine. Multiple witnesses testified that the pair knew drug trafficking was occurring on their premises and openly ordered security personnel to allow it. Mr. Hinojosa and Mr. Rodriguez are now facing up to life in federal prison. Their sentencing has been set for June 3 and July 22, respectively.
More than 30 defendants – including Mr. Villarreal’s former DPD colleague, Craig Woods – have been convicted in connection with the case.
The Federal Bureau of Investigation’s Dallas Field Office conducted the investigation, dubbed “Operation Closing Time,” with the assistance of the Dallas Police Department. The Texas Alcoholic Beverage Commission's Enforcement Division provided valuable assistance. Assistant U.S. Attorneys P.J. Meitl, Errin Martin, Nicole Dana, and Melanie Smith prosecuted the case.
Former Alabama Correctional Sergeant Sentenced for Assaulting InmatesRead the Press Release
The Justice Department announced that Ulysses Oliver Jr., 47, a former Alabama Department of Corrections (ADOC) Sergeant, was sentenced in federal court to this morning to 30 months of imprisonment, to be followed by three years of supervised release. Oliver previously pleaded guilty to assaulting two inmates at ADOC’s Elmore Correctional Facility.
According to court documents, on Feb. 16, 2019, Oliver went to an observation room holding the two inmate victims, who were handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately 19 times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately 10 times. During the assaults, the victims were handcuffed behind their backs, did not resist and posed no threat. Afterward, Oliver returned to the observation room where the victims were being held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face. Oliver assaulted the victims as punishment because he believed that the victims had brought contraband into the facility. Oliver assaulted the victims in the presence of, or within earshot of, other ADOC correctional officers, who did not intervene to prevent the assaults.
Two other former corrections officers have pleaded guilty in connection with this incident, and a third was convicted at trial. Former ADOC correctional officers Bryanna Mosley and Leon Williams pleaded guilty in May and July 2019, respectively, to failing to intervene to stop the assaults. Another officer, former ADOC correctional lieutenant Willie Burks, who was the shift commander during the Feb. 16, 2019 incident, was convicted by a federal jury on July 21, 2021, of failing to intervene to stop Oliver from assaulting the second inmate.
“The Constitution forbids cruel and unusual punishment, which includes malicious uses of force by correctional officers,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “The Department of Justice will hold to account officers who brutalize incarcerated persons.”
“The actions of Mr. Oliver and his co-defendants run completely counter to the responsibilities and trust given to correctional officers,” said U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Oliver knew that the use of force in this case was unnecessary and excessive, and so did the other officers involved. While I fully support the difficult and dangerous jobs that these officers undertake each day, my office remains committed to holding those that ignore their oaths accountable.”
"Corrections officers are expected to safeguard the civil rights of prisoners,” said Special Agent in Charge Paul Brown for the FBI’s Mobile Field Office. “These officers ignored their duties and must be held to account for their actions. The FBI will continue to work with our law enforcement partners to investigate violations of people’s civil rights."
“The ADOC has zero tolerance for violence within its facilities, including excessive use-of-force by staff,” said Chief Law Enforcement Officer Arnaldo Mercado of the Alabama Department of Corrections Law Enforcement Services Division. “Excessive use-of-force is not acceptable under any circumstances, and preventing these incidents is a high priority for the department. When an allegation of excessive force is made, or an incident of such nature is reported or discovered, the department conducts a thorough investigation. Employees who are found to have violated the highest standards of law enforcement, to which the ADOC is steadfastly committed, will be referred for prosecution and the LESD will support prosecution to the full extent of the law.”
This case was investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division. Assistant U.S. Attorney Eric Counts for the Middle District of Alabama and Trial Attorney David Reese of the Civil Rights Division prosecuted the case.
Federal Jury Convicts Pittsburg County Residents of Narcotics and Money Laundering OffensesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that Early Willard Woodmore, III, age 34, of Quinton, Oklahoma and Calvin James Woodmore, age 33, of McAlester, Oklahoma were found guilty by a federal jury of Drug Conspiracy, Drug Distribution, Conspiracy to Commit Money Laundering and Money Laundering. A copy of the original indictment can be found at https://go.usa.gov/xdYg4. All other indicted codefendants previously entered pleas of guilty.
The jury trial began with testimony on Monday, April 4, 2022, and concluded on Thursday, April 7, 2022, with the verdicts of guilty on all counts for both defendants. Based on the jury’s verdicts, both Early Willard Woodmore III and Calvin James Woodmore could receive up to life imprisonment.
During the trial, the United States presented evidence that beginning in 2017 and continuing until the end of 2019, Early Woodmore, III operated a methamphetamine distribution organization based in Haskell and Pittsburg counties. Early Woodmore, III, working with his source of supply in California, received numerous multi-pound shipments of methamphetamine sent through the United States Postal Service to various addresses in Haskell and Pittsburg counties. Early Woodmore, III, Calvin Woodmore, and other codefendants repackaged the methamphetamine into smaller quantities and distributed it in the Pittsburg and Haskell county area. After being arrested in April 2019 on state charges of assault and kidnapping, the Woodmores continued to operate the organization from within the Haskell County Jail, utilizing the inmate phone system. The Woodmore drug trafficking organization utilized money wire services and banks to send payments for the methamphetamine to the source of supply in California. The trial evidence further showed that the Woodmores engaged in acts of violence and retaliation against those they suspected of cooperating with law enforcement.
The guilty verdicts arose from a joint investigation led by the Drug Enforcement Administration (“DEA”), along with Haskell County Sheriff’s Office, the Oklahoma Bureau of Narcotics (“OBN”), the District 18 District Attorney’s Drug Task Force, the Internal Revenue Service (“IRS”), the United States Postal Inspection Service (“USPIS”), the National Guard Counterdrug Task Force, the Bureau of Indian Affairs (“BIA”), the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), the Pittsburg County Sheriff’s Office, the McAlester Police Department, and the Stigler Police Department. The investigation was part of and included members of the DEA High Intensity Drug Trafficking (“HIDTA”) Task Force.
This case is also part of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program. The OCDETF program is the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s illicit drug supply.
The Honorable John F. Heil, III, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of the presentence reports for both defendants. Sentencings will be scheduled following completion of the reports. Both defendants were remanded to the custody of the United States Marshal pending the imposition of the sentencings.
Assistant United States Attorney Ryan Conway and Assistant United States Attorney Kevin Cheung represented the United States.
Federal Jury Convicts Illinois Man in Connection with the Killing of Special Deputy U.S. Marshal Jacob KeltnerRead the Press Release
ROCKFORD — A federal jury in Rockford today convicted an Illinois man in connection with the killing of Special Deputy U.S. Marshal Jacob Keltner.
The jury found FLOYD E. BROWN, 42, of Springfield, Ill., guilty of second-degree murder of a federal officer, attempting to kill additional federal officers, assault of federal officers, and multiple firearm offenses. The convictions carry a maximum sentence of life in prison. U.S. District Judge Matthew F. Kennelly set sentencing for July 19, 2022, at 1:00 p.m.
The convictions were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI. Valuable assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Marshals Service, McHenry County Sheriff’s Office, Rockford Police Department, Winnebago County Sheriff’s Office, Bloomington Police Department, Loves Park Police Department, Lincoln Police Department, Logan County Sheriff’s Office, and Illinois State Police. The government is represented by Assistant U.S. Attorneys Talia Bucci, Scott Paccagnini, and Ronald DeWald.
Evidence presented at the two-week trial revealed that Special Deputy Keltner was fatally wounded on March 7, 2019, when members of the U.S. Marshals Service Great Lakes Regional Fugitive Task Force and other law enforcement officers attempted to execute a warrant for Brown’s arrest at a Rockford hotel. Brown was wanted on a residential burglary charge. Special Deputy Keltner served as a McHenry County Sheriff’s deputy and was a sworn member of the task force.
When the officers attempted to gain access to Brown’s third-floor hotel room, he fired ten shots through the door and nearby walls, narrowly missing a Deputy U.S. Marshal and two Special Deputy U.S. Marshals. Brown then jumped out of a window and fired a shot that fatally struck Special Deputy Keltner, who was covering the exterior of the hotel. Brown was arrested several hours later near Lincoln, Ill., after a high-speed pursuit.
Federal Jury Convicts Clarksville Man of Kidnapping and Interstate StalkingRead the Press Release
Memphis, TN- After a six-day federal jury trial, Keaton L. Walls, 37, of Clarksville, Tennessee, was found guilty of kidnapping, interstate stalking, and using a firearm to commit interstate stalking. Joseph C. Murphy Jr., United States Attorney, announced the conviction today.
According to information presented in court, on November 23, 2016, Walls drove from Clarksville, Tennessee to a residence in DeSoto County, Mississippi, where his ex-girlfriend lived with several family members. Armed with a Norinco AK-47 style automatic rifle, Walls fired at least 10 shots from the front yard into the home’s living room window. Four of the seven people inside the house suffered gunshot wounds, and one of those victims lost his leg due to the shooting. The victims were not able to see the shooter, and Walls fled the scene before law enforcement arrived. DeSoto County Sheriff’s Department personnel recovered six spent shell casings as evidence.
Less than 18 months later, on April 20, 2018, Walls kidnapped his ex-girlfriend, her five-year-old daughter, and her boyfriend at gunpoint from their apartment in Memphis, Tennessee. He forced the victim to drive them in her car to a nearby location, where Walls’s vehicle was parked. He retrieved an AK-47 style rifle from his car and put it into the trunk of the victim’s car. After that, he ordered the victim to drive back to her apartment, where he forced her to lock her daughter inside the apartment by herself. He then ordered her to drive to a house in Marshall County, Mississippi where Walls’s relative lived. During the drive, Walls threatened to kill both victims and hit them with one of his two pistols. When they arrived at the house, Walls forced both victims out of the car, onto their knees, and fired three gunshots past their heads.
After arguing with several family members about whether he should release the victims, Walls directed both victims back into the car. He forced the female victim to drive the car into Shelby County, Tennessee, where officers were able to stop the car, arrest Walls, and
rescue both victims. Forensic ballistics testing showed that the AK-47 style rifle in the car’s trunk matched the spent shell casings recovered from the November 23, 2016, shooting in DeSoto County, Mississippi.
"The prosecution of individuals who commit violent crimes is a priority for the United States Department of Justice," said Joseph C. Murphy, Jr., United States Attorney for the Western District of Tennessee. "Public safety is a paramount concern for our office, and we will aggressively prosecute individuals who commit violent crimes that endanger the safety of the people living throughout West Tennessee."
"The cooperative efforts among Federal and State partners made it possible to bring a violent stalker and kidnapper to justice," said Douglas M. Korneski, Special Agent in Charge of the Federal Bureau of Investigation Memphis Field Office. "The FBI and fellow law enforcement will continue to combine our resources and share our expertise to target those who hope to commit similar heinous acts."
A sentencing hearing is scheduled for September 8, 2022, before United States District Judge John T. Fowlkes, Jr. Walls was convicted of four counts of kidnapping, one count of interstate stalking, and one count of using a firearm to commit interstate stalking. He faces up to life in prison. There is no parole in the federal system.
This case was investigated by the Federal Bureau of Investigation, the DeSoto County Sheriff’s Department, the Shelby County Sheriff’s Office, and the Memphis Police Department.
Assistant United States Attorneys Tony Arvin and Murre Foster are prosecuting this case on behalf of the government.
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Federal Grand Jury A Indictments Announced- April 2022Read the Press Release
United States Attorney Clint Johnson today announced the results of the April 2022 Federal Grand Jury A.
The following individuals have been charged with violations of United States law in indictments returned by the Grand Jury. The return of an indictment is a method of informing a defendant of alleged violations of federal law, which must be proven in a court of law beyond a reasonable doubt to overcome a defendant’s presumption of innocence.
Keith Eugene Crenshaw II. Aggravated Sexual Abuse by Force and Threat in Indian Country; Sexual Abuse by Threat and Fear in Indian Country; Sexual Abuse of an Incapable Victim in Indian Country; and First Degree Burglary in Indian Country. Crenshaw, 33, is charged with breaking into a Glenpool home and sexually assaulting the woman inside on Feb. 20, 2022. The FBI and Glenpool Police Department are the investigative agencies. Assistant U.S. Attorney Stephanie Ihler is prosecuting the case. 22-CR-90
Carlos Rafael Jacome. Felon in Possession of a Firearm. Jacome, 31, of Tulsa, is charged with being a felon in possession of a Glock 9X19 caliber semi-automatic pistol. The Drug Enforcement Administration is the investigative agency. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting the case. 22-CR-91
Timothy Revae McDonald. Felon in Possession of Firearms and Ammunition; Possession of Methamphetamine with Intent to Distribute; Possession of Cocaine with Intent to Distribute; Possession of a Firearm in Furtherance of a Drug Trafficking Crime; Maintaining a Drug-Involved Premises; Unlawful Possession of Body Armor. McDonald, 44, of Tulsa, was charged with being a felon in possession of a Sarsilmaz 9mm semi-auto pistol, a Sig Sauer 9x19 semi-auto pistol, and 33 rounds of ammunition. He is also charged with knowingly possessing with intent to distribute 50 grams or more of methamphetamine; knowingly possessing with intent to distribute cocaine; possessing firearms in furtherance of his drug trafficking crimes; and knowingly maintaining a place for the purpose of distributing methamphetamine. Finally, he charged with unlawfully possessing body armor. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Niko Boulieris is prosecuting the case. 21-CR-92
Sir Michael Morgan Jr. First Degree Murder in Indian Country; Assault with Intent to Commit Murder in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Assault Resulting in Serious Bodily Injury in Indian Country; Causing Death by Using and Discharging a Firearm During and in Relation to a Crime of Violence. According to the indictment, Morgan Jr., 18, of Tulsa, murdered Isaiah Jones on Jan. 29, 2022, during a shooting that occurred on N. Johnstown Avenue in Tulsa. He is further alleged to have shot a 17-year-old with intent to commit murder during the same incident. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case. 22-CR-96
Gary Dumont Riggs. Aggravated Sexual Abuse of a Minor by Force and Threat in Indian Country (Counts 1-4) (superseding). In counts 1-3, Dumont, 76, of Claremore, is alleged to have sexually abused a minor between the ages of 12 and 16 from May 1, 2014, to September 1, 2014. In count 4, he is charged with sexually abusing the same child between Dec. 1, 2014, and January 31, 2015. The FBI and Verdigris Police Department are the investigative agencies. Assistant U.S. Attorney Stacey P. Todd is prosecuting the case. 21-CR-176
Andrew Leon Roberts. Assault with Intent to Commit Murder in Indian Country (Count 1); Assault with a Dangerous Weapon with Intent to Do Bodily Harm in Indian Country (Count 2); Destruction of Property While Placing Life in Jeopardy in Indian Country (Count 3); Attempt to Commit Murder in Indian Country (Counts 4, 5). Roberts, 65, of Tulsa, is alleged to have assaulted three Tulsa police officers using his car as a weapon. According to a federal Criminal Complaint initially filed in the case, on March 5, 2022, two Tulsa police officers in separate marked patrol vehicles were transporting an arrestee when they saw Roberts driving erratically. One officer pulled his patrol vehicle to the side of the road because he believed Roberts was trying to flag him down or get his attention. Instead, Roberts accelerated, closely passed the officer’s vehicle, struck the side mirror, and continued at a high rate of speed toward the second patrol vehicle trying to strike it from behind. The second officer was able to take evasive action to avoid a collision. Roberts then turned around and drove toward the first officer’s parked vehicle and attempted to T-bone the patrol vehicle with the officer inside. The officer was also able to take evasive action and avoid a second collision. Roberts then fled in his car. The officers were unable to follow since they were transporting the arrestee.
In an incident later that day, a man called 911 when Roberts showed up at his residence, argued with him and threatened to ram his vehicle into the man’s residence. The man demanded he leave. A Tulsa Police Officer responded, and as she neared the residence, she saw Roberts approaching in his vehicle at a high rate of speed from behind her. The officer accelerated her patrol vehicle to lessen the impact of a collision. Roberts allegedly struct the officer’s vehicle from behind then drove his vehicle to the driver’s side of the patrol vehicle and continued to ram the vehicle as the officer attempted to drive away. The officer was able to maneuver her vehicle away, but Roberts again accelerated toward the officer and attempted to strike her head on. During the incident, another officer arrived and parked nearby. He observed Roberts’ continued attempts to strike the first officer’s vehicle. The officer exited his own patrol vehicle and walked to its rear, drawing his firearm. Roberts then allegedly turned his vehicle toward the second officer and accelerated in his direction in an attempt to run over him. The officer fired at Roberts and jumped out of the way to avoid being struck. Roberts drove in a circle around the officer and his vehicle. He finally struck a tree and came to a stop. Roberts was shot during the incident and taken by ambulance to a hospital. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Gina S. Gilmore is prosecuting the case. 22-CR-95
Alton Jarae Rose. First Degree Burglary in Indian Country; Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country; Carrying, Using, and Brandishing a Firearm During and in Relation to a Crime of Violence; Felon in Possession of a Firearm and Ammunition; Tampering with a Witness and Victim by Using the Threat of Physical Force. On March 4, 2022, Rose, 34, of Tulsa, allegedly broke into a residence while the occupant was sleeping and assaulted her. When she attempted to call for help, he brandished a firearm and threatened to kill her if she called police. Rose was also charged with being a felon in possession of the Taurus .38 Special caliber revolver, along with ammunition. The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney George Jiang is prosecuting the case. 22-CR-94
Brittany Michelle Watts; Possession of Methamphetamine with Intent to Distribute. Watts, 29, of Tulsa, is charged with knowingly possessing with intent to distribute 500 grams of methamphetamine. U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Tulsa County Sheriff’s Office, and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorney Joel-lyn McCormick is prosecuting the case. 22-CR-93
Eastern Shore Man Pleads Guilty to Possession of More Than 300 Grams of Crack Cocaine with Intent to DistributeRead the Press Release
Baltimore, Maryland – Marcus Pitts, age 49, of Berlin, Maryland, pleaded guilty today to possession with intent to distribute crack cocaine.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and the members of the Worcester County Criminal Enforcement Team: Chief Ross C. Buzzuro of the Ocean City Police Department; Worcester County Sheriff Matthew Crisafulli; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Chief Arthur R. Hancock of the Pocomoke City Police Department; and Chief Leo Ehrisman of the Ocean Pines Police Department.
According to Pitts’s guilty plea, in September 2018, members of the Worcester County Criminal Enforcement Team (WCCET) were investigating Pitts for suspected drug distribution. While conducting surveillance at Pitts’s residence investigators saw a suspected drug user go into the residence, come out a short time later, and then drive away. Investigators conducted a traffic stop of the individual and recovered a glass smoking pipe and a small amount of cocaine, which the person acknowledged he had just purchased from Pitts.
On September 14, 2018, members of the WCCET executed a search warrant at Pitts’s residence, where they recovered approximately 396 grams of crack cocaine, baking soda, a glass Pyrex dish, plastic baggies, an empty digital scale box, three cell phones, and $1,472 in U.S. currency. An additional cell phone was recovered from Pitts outside the residence. A subsequent search warrant of the cell phones revealed numerous text messages indicating that Pitts was involved in trafficking crack cocaine.
Pitts was released from state custody on bail on September 24, 2018. He was arrested on January 2, 2019 on a federal arrest warrant. At the time of his arrest, Pitts was in possession of a bag of crack cocaine, which he tried to throw away as police approached. Investigators also recovered a cell phone from Pitts’s vehicle. The cell phone was searched and was found to contain numerous text messages indicating that Pitts continued to distribute crack cocaine while he was released from state custody on bail.
Pitts and the government have agreed that, if the Court accepts the plea agreement, Pitts will be sentenced to seven years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for June 17, 2022 at 2:00 p.m.
United States Attorney Erek L. Barron commended HSI and the WCCET, comprised of the Ocean City Police Department, the Worcester County Sheriff’s Office, the Maryland State Police, the Pocomoke City Police Department and the Ocean Pines Police Department for their work in the investigation and thanked the Worcester County State’s Attorney’s Office for its assistance. Mr. Barron thanked Assistant U.S. Attorneys Christina A. Hoffman and Darryl L. Tarver, who are prosecuting the case
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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District of Columbia Man Sentenced to 56 Months in Prison for Fraud, Money Laundering, and Identity Theft SchemesRead the Press Release
WASHINGTON – Jamar Skeete, 38, of Washington, D.C., was sentenced today to 56 months in prison on federal charges stemming from his years-long role in at least four business e-mail compromise fraud and money laundering schemes that caused more than $1.5 million in intended losses.
The announcement was made by U.S. Attorney Matthew M. Graves and Greg L. Torbenson, U.S. Postal Inspector in Charge for the Washington Division, U.S. Postal Inspection Service.
Skeete pleaded guilty on Nov. 15, 2021, in the U.S. District Court for the District of Columbia, to one count of money laundering, one count of identity theft, and two counts of wire fraud. On the same date, he also pleaded guilty to one count of conspiracy to commit bank fraud and wire fraud in a case that was originally indicted in the Southern District of New York and transferred to the U.S. District Court for the District of Columbia for plea and sentencing. He was sentenced in both cases by the Honorable District Judge John D. Bates. Following his prison term, Skeete will be placed on three years of supervised release. He also must pay combined restitution judgments in the two cases totaling $697,836, and forfeiture money judgments totaling $381,387.
According to the statements of offense acknowledged by Skeete, between September 2017 and June 2019, Skeete received and laundered the proceeds of at least four separate business e-mail compromise schemes targeting the City of Flint, Michigan, an Illinois-based company operating senior care facilities, and other businesses. Skeete used two stolen identities and multiple fraudulent shell company accounts to receive and launder the proceeds of the business e-mail compromise schemes in the District of Columbia and elsewhere. He also assumed an address used in two of the schemes by submitting a fraudulent “hold mail” request to the U.S. Postal Service. In the schemes originally charged in the Southern District of New York, Skeete conspired with 14 other individuals to launder other fraud proceeds out of a fraudulent shell company account. All told, Skeete participating in diverting and laundering more than $1.5 million
In a business e-mail compromise (or BEC) scheme, conspirators infiltrate the computer systems of a victim company through phishing attacks or otherwise. Once there, they impersonate the victim’s business partners and, claiming a change in bank accounts, trick the victim into sending payments not to business partners, but to the conspirator’s bank accounts.
The case was investigated by the U.S. Postal Inspection Service Washington Division, with assistance provided FBI’s Washington Field Office and the Federal Deposit Insurance Corporation-Office of Inspector General. The case was prosecuted by Assistant U.S. Attorney Christopher B. Brown, with assistance from Paralegal Specialists Michon Tart and former Paralegal Specialist C. Rosalind Pressley. Significant assistance was also provided by Assistant U.S. Attorneys Alexander Li and Thomas Burnett of the U.S. Attorney’s Office for the Southern District of New York.
Denver Man Sentenced to 20 years in Prison in Armed Carjacking CaseRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that Joseph Wesley Avila, age 30, of Denver, was sentenced to 20 years in federal prison for carjacking and possession of a firearm by a felon.
According to facts presented at trial, Avila and an unidentified man carjacked a woman. One week later, Avila was found to be in possession of a loaded firearm. Avila and the unidentified man beat the carjacking victim with their fists and a skateboard while Avila threatened to kill her. Avila then stole her purse and the car she was driving. When Avila was located a week later, he was driving the stolen vehicle and had armed himself with a pistol and several rounds of ammunition, both loaded into the firearm and in his backpack.
“I hope the idea of spending 20 years in prison makes violent criminals think twice before using a gun in Colorado,” said Cole Finegan, U.S. Attorney for the District of Colorado. “We are committed to working with our law enforcement partners to take violent criminals off the streets for a long time.”
“Avila’s violent criminal past has left a trail of victims for nearly two decades in Colorado,” said Special Agent in Charge David S. Booth. “Due to the strong investigative work and subsequent prosecution, his violence has come to an end.”
On December 6, 2021, the United States District Court for the District of Colorado started a jury trial. On December 8, 2021, the jury returned a guilty verdict.
United States District Court Judge Raymond P. Moore sentenced Joseph Wesley Avila on March 14, 2022.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, with assistance from the FAST Unit of the Denver Police Department, conducted the investigation. Assistant United States Attorneys Celeste Rangel and Conor Flanigan handled the prosecution of the case.
PSN programs are led by U.S. Attorneys’ Offices in collaboration with local public safety agencies, community stakeholders and other agencies and organizations that work to reduce violent crime.
Case number 20-cr-00229-RM
D.C. Man Pleads Guilty to Attempting to Steal More than $31 Million in COVID-19 FundsRead the Press Release
WASHINGTON – Elias Eldabbagh, 30, of Washington, D.C., pleaded guilty in federal court today to carrying out a scheme to steal more than $31 million under the CARES Act and laundering the proceeds of his scheme. Eldabbagh succeeded in stealing $2,385,000 under the Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL).
The announcement was made by U.S. Attorney Matthew M. Graves, Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service-Criminal Investigation, Washington, D.C. Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General.
“While many Americans were struggling with the economic impacts of the COVID-19 pandemic, this defendant brazenly attempted to steal more than $31 million in emergency funds intended to help small businesses and employees survive COVID-19,” said U.S. Attorney Graves. “The United States Department of Justice will prosecute, to the fullest extent of the law, those individuals who scheme to rob vital government programs.”
“Elias Eldabbagh stole funds that were meant to help businesses and their employees during a crisis to spend on a luxury car and enriching himself,” said IRS-CI Special Agent in Charge Waldon. “During the two years since the CARES Act was passed, IRS-CI special agents have rooted out and continue to pursue these selfish criminals who thought they could get away with stealing from those who truly needed help.”
“OIG will continue to safeguard SBA programs from fraudsters determined to steal funds meant to support the nation’s small businesses,” said SBA OIG’s Special Agent in Charge McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs. I want to thank the Department of Justice and our law enforcement partners for their dedication and pursuit of justice.”
Eldabbagh pleaded guilty in the U.S. District Court for the District of Columbia to wire fraud and laundering the proceeds of the wire fraud scheme. Wire fraud carries a statutory penalty of 20 years and financial penalties. Engaging in monetary transactions in criminally derived funds carries a statutory penalty of 10 years and financial penalties. Eldabbagh faces a likely recommended sentence of between 11 and 14 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Honorable Trevor N. McFadden took the plea and scheduled sentencing for Aug. 25, 2022.
From July 2020 through May 2021, Eldabbagh used his company, Alias Systems, LLC, to fraudulently apply for at least 25 PPP loans totaling more than $30 million. He also submitted at least four false EIDL applications totaling $950,000. During the course of his scheme, Eldabbagh used a stolen identity to disguise the ownership of Alias Systems, LLC, and used the same stolen identity to submit the vast majority of the applications. In support of his fraudulent applications, Eldabbagh also used stolen identities, stolen tax returns and stolen financial records from a Washington, D.C. consulting company. Eldabbagh fraudulently doctored the stolen documents to be appear to be tax returns and payroll records of his company, Alias Systems, LLC. Eldabbagh successfully stole $2,385,000 from the PPP and EIDL programs.
Eldabbagh wired the proceeds of his scheme to at least 13 separate bank and brokerage accounts and to purchase a Tesla Model 3. Eldabbagh then converted at least $288,000 of proceeds from fiat currency into multiple cryptocurrencies. Using fraud proceeds, Eldabbagh conducted over 2,000 transactions involving at least 43 different cryptocurrencies.
Eldabbagh also used the money he stole to pay for rent, hotels, dog boarding, attorney fees, ride shares, electronics, and various personal expenses.
In May 2021, IRS-CI executed seizure warrants on Eldabbagh’s bank accounts and investment accounts. Eldabbagh proceeded to make multiple attempts to transfer seized funds prior to being thwarted by federal agents. As part of his plea agreement, Eldabbagh has agreed to forfeit the Tesla Model 3, the contents of 21 bank accounts, and he has agreed to liquidate his interest in the cryptocurrency obtained with proceeds and to remit the funds to the United States government.
The Coronavirus Aid, Relief, and Economic Security (“CARES”) Act is a federal law enacted in or around March 2020 and designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of billions in forgivable loans to small businesses for job retention and certain other expenses, through a program referred to as the Paycheck Protection Program (PPP).
An Economic Injury Disaster Loan (“EIDL”) is a Small Business Administration administered loan designed to provide assistance to small businesses that suffer substantial economic injury as a result of a declared disaster. An EIDL helps businesses meet necessary financial obligations that could have been met had the disaster not occurred. It provided relief from economic injury that the disaster caused and permitted businesses to maintain a reasonable working capital position during the period that the disaster affected.
In announcing the plea, U.S. Attorney Graves, Special Agent in Charge Waldon, and Special Agent in Charge McCall-Brathwaite commended the work of those who investigated the case from IRS-CI and the SBA Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Leslie A. Goemaat of the Fraud, Public Corruption, and Civil Rights Section, supported by Paralegal Specialist Mariela Andrade.
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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 fraud related to COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Covington Woman Sentenced to 21 Months for Fake Investment SchemeRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that RITCHEL MOREHEAD, age 41, a resident of Covington, Louisiana, was sentenced on April 7, 2022 to 21 months in prison for committing wire fraud in connection with a fake investment scheme.
The government charged MOREHEAD in a superseding bill of information with committing wire fraud from December 2018 through February 2019. According to court documents, MOREHEAD used a corporation, Chel Corporation, to defraud six victims by embezzling a total of $460,000 that was supposed to cover fees, costs, and down payments for multi-million-dollar loans, when in fact MOREHEAD spent the funds on personal expenses, such as jewelry and a vehicle, and transferred cash to accounts overseas. After MOREHEAD was charged, two additional individuals came forward as victims of the same scheme. Under the terms of the plea agreement, MOREHEAD pled guilty as charged to the superseding bill of information and agreed to pay at $460,000 in restitution to the victims of her scheme, plus amounts owed to any additional victims. The government has already seized $190,784.90 in cash and assets from MOREHEAD, and MOREHEAD pre-paid over $310,000 in restitution in advance of sentencing, for a total of approximately $501,000.
The Honorable Eldon E. Fallon sentenced MOREHEAD to 21 months in prison, followed by three years of supervised release, and a $100 mandatory special assessment fee. Judge Fallon set a restitution hearing for June 16, 2022, to determine the final amount of restitution that MOREHEAD will owe and the schedule for those payments.
U.S. Attorney Evans praised the work of Homeland Security Investigations and the United States Secret Service. Assistant United States Attorney Nicholas D. Moses oversees the prosecution.
Connecticut man admits to role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – William Joseph Milot, of Waterbury, Connecticut, has admitted to his role in a firearms trafficking conspiracy, United States Attorney William Ihlenfeld announced.
Milot, 32, pleaded guilty today to one count of “Aiding and Abetting the False Statement in Connection with the Acquisition of Firearms.” Milot admitted to working with another to illegally purchase two 9mm pistols from a firearms dealer in December 2020 in Marion County.
Milot 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Colorado Man Arrested for Vermont KidnappingRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on April 6, 2022, Jerry Banks, 34, of Fort Garland, Colorado was arrested following the filing of a criminal complaint that charges Banks with kidnapping Gregory Davis, a resident of Danville, Vermont, on January 6, 2018. Banks was taken into custody in Yellowstone National Park, where he was working. Banks appeared in United States District Court in Landers, Wyoming for a hearing yesterday. Banks will appear again in federal court in Wyoming next week before being ordered to appear in Vermont.
Following an exhaustive investigation by agents with the Federal Bureau of Investigation and detectives with the Vermont State Police, law enforcement obtained a criminal complaint that charges Banks with being the kidnapper. According to the complaint affidavit, Banks arrived at Davis’s Danville residence on the evening of January 6, 2018, posing as a United States Marshal claiming to arrest Davis. Davis was found dead the next day in a snowbank on a Barnet, Vermont road several miles from the Davis residence. Although Banks is not charged with Davis’s murder, the complaint affidavit contains allegations that Banks murdered Davis.
According to the allegations in the complaint, Banks used two cell phones around the time of the kidnapping. One phone, which was purchased days before the kidnapping at a Walmart in Pennsylvania, was used to call 911 minutes before the kidnapping (the 911 Phone). Banks used another phone, purchased in November 2017 at a Missouri Walmart, for data transmission as he travelled from Missouri on January 4, 2018 to Vermont on January 6, 2018 to kidnap Davis (the Data Phone). Law enforcement determined that this Data Phone was the only device that connected to cell towers both in Pennsylvania when the 911 Phone was purchased and near Danville when Davis was kidnapped. The FBI obtained surveillance images from the Pennsylvania Walmart showing the face of the 911 Phone purchaser and the white Ford Explorer he was driving.
According to the complaint, law enforcement connected these two phones to Banks in multiple ways. For example, Banks was in possession of a white Ford Explorer around the time of the kidnapping. Law enforcement obtained data associated with another phone in Banks’ name that showed that he purchased and used the Data Phone described above. Further, records obtained by law enforcement reflect that Banks purchased various items used in the kidnapping, including a Marshals badge and Marshals patches, only days before the trip to Vermont to kidnap Davis.
The complaint charges Banks with kidnapping, which carries a maximum penalty of life imprisonment. Any actual sentence will be determined with reference to the Federal Sentencing Guidelines. The criminal complaint lodged against Banks contains accusations only, and the defendant is presumed innocent until and unless proven guilty.
The prosecutors are Assistant United States Attorneys Paul Van de Graaf and Jonathan Ophardt. Counsel information for Banks is not yet available.
U.S. Attorney Nikolas P. Kerest commended the efforts of the Federal Bureau of Investigation and the Vermont State Police in their collaborative investigation of Banks. Mr. Kerest also thanked the United States Park Service Criminal Investigation Office for its assistance in Banks’ arrest.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. https://www.justice.gov/psn
Carjacker Who Shot Two People at South Florida Tow Yard Faces Life in Prison After Guilty VerdictRead the Press Release
Note: Still images of surveillance video showing defendant Thomas Daniels pointing firearm appear at end of this release.
Miami, Florida – A Homestead man who held two people at gun-point, shot them, and stole their car and jewelry has been found guilty by a South Florida federal jury of carjacking resulting in serious bodily injury, discharging a firearm in furtherance of a crime of violence, and possessing ammunition by a convicted felon. He faces life in prison.
Assistant United States Attorneys Elena Smukler and Dayron Silverio proved at trial that on February 14, 2020, Thomas Daniels showed up at a tow yard in Homestead, Florida, and attempted to break into a car parked just outside the yard. When he could not get in, Daniels approached the owners of the car who were inside the yard. Daniels pointed a gun at them, demanding that they hand over their jewelry and other items. One victim turned around and, with his back to Daniels, started to unclasp and remove his necklace. Daniels lost patience, shot the victim in the neck, and proceeded to yank the necklace from the victim’s collapsed body. As that was taking place, the second victim ran, trying get away. He was not successful. Daniels chased the second victim and shot him multiple times. Daniels robbed the second victim of his keys, which Daniels used to steal the car that he had earlier tried to enter. The two gunshot victims survived. A law enforcement investigation led to the arrest of Daniels.
Judge Robert N. Scola, Jr. will sentence Daniels at 8:30 a.m., on June 13, in federal district court in Miami.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Christopher A. Robinson, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), Miami Field Office, announced the guilty verdict.
ATF Miami investigated the case, with assistance from the Homestead Police Department. Assistant U.S. Attorneys Elena Smukler and Dayron Silverio are prosecuting the case. Assistant U.S. Attorney Joshua Paster is handling asset forfeiture.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods 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 and the local community to develop effective, locally-based strategies to reduce violent crime.
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 20-cr-20138.
Screenshots, Part of Government’s Trial Exhibit 2:
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