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18 May 2022
Washington Man Pleads Guilty to Transportation of Child Pornography Depicting Minor Victim in MexicoRead the Press Release
TUCSON, Ariz. – On Monday, Adolfo Aburto-Gonzalez, 24, of Olympia, Washington, pleaded guilty to Transportation of Child Pornography. Sentencing is scheduled for August 24, 2022 before United States District Judge Rosemary Márquez.
A complaint filed in March alleged that Aburto-Gonzalez was arrested after he entered the United States through Nogales, Mexico, and was found to be returning from an encounter with a 12-year-old minor, of whom he had explicit pictures and videos.
Aburto-Gonzalez accepted a plea agreement which requires that he be sentenced to a term of 10 to 12 years in prison, followed by a term of lifetime supervision as a registered sex offender.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Homeland Security Investigations, Nogales, conducted the investigation in this case. Assistant U.S. Attorney Carin Duryee, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-22-01040-TUC-RM
RELEASE NUMBER: 2022-073_Aburto-Gonzalez# # #
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.United States Recovers over $15 Million from Swiss Bank Accounts as Proceeds of Global Digital Advertising Fraud SchemeRead the Press Release
Breon Peace, United States Attorney for the Eastern District of New York, announced today that $15,111,453.84 in illicit proceeds derived from an international digital fraud scheme has been transferred by Switzerland to the United States government pursuant to a Final Order of Forfeiture entered by United States District Judge Eric R. Komitee in the matter of United States v. Sergey Ovsyannikov, et al.
“This forfeiture is the largest international cybercrime recovery in the history of the Eastern District of New York and sends a powerful message to those involved in cyber fraud that there are no boundaries to prosecuting these bad actors and locating their ill-gotten assets wherever they are in the world,” stated United States Attorney Peace. “This Office will continue working with our law enforcement partners to take the economic gain out of crime through all available resources, including asset forfeiture, and protect the integrity of our marketplace.”
Mr. Peace thanked the Federal Bureau of Investigation, New York Field Office, and the New York City Police Department for their outstanding investigative work, the Swiss Federal Office of Justice, and the Justice Department’s Office of International Affairs for their invaluable assistance in this matter.
The Criminal Scheme
The internet is, in large part, freely available to users worldwide because it runs on digital advertising: website owners display advertisements on their sites and are compensated for doing so by intermediaries representing businesses seeking to advertise their goods and services to real human customers. In general, digital advertising revenue is based on how many users click or view the ads on those websites. The defendants in this case represented to others that they ran legitimate companies that delivered advertisements to real human internet users accessing real internet webpages. In fact, the defendants faked both the users and the webpages; they programmed computers they controlled to load advertisements on fabricated webpages, via an automated program, in order to fraudulently obtain digital advertising revenue.Between December 2015 and October 2018, Sergey Ovsyannikov and Yevgeniy Timchenko, citizens of the Republic of Kazakhstan, and Aleksandr Isaev, a citizen of the Russian Federation, carried out a digital advertising fraud scheme known as “3ve.2 Template A” or “Eve.” The defendants used a global “botnet”-a network of malware-infected computers operated without the true owner’s knowledge or consent-to perpetrate digital advertising fraud. The defendants developed an intricate infrastructure of command-and-control servers to direct and monitor the infected computers and check whether a particular infected computer had been flagged by cybersecurity companies as associated with fraud. By using this infrastructure, the defendants accessed more than 1.7 million infected computers belonging to individuals and businesses in the United States and elsewhere, including more than 1,500 at residences and businesses in the Eastern District of New York—and used hidden browsers on those infected computers to download fabricated webpages and load ads onto those fabricated webpages. As a result of this scheme, the defendants falsified billions of ad views and spoofed more than 86,000 domains associated with online publishers, causing businesses to pay more than $29 million for ads that were never actually viewed by real human internet users and diverting that money away from the real online publishers for whom it was intended. The $15.1 million recovered from financial accounts in Switzerland were the proceeds of this digital advertising fraud scheme.
Ovsyannikov was arrested in October 2018 in Malaysia and extradited to the United States. Timchenko was arrested in November 2018 in Estonia and extradited to the United States. Both pleaded guilty and have been sentenced. Isaev remains at large.
Following the arrest of Ovsyannikov by Malaysian authorities, U.S. law enforcement authorities, in conjunction with various private sector companies, began the process of dismantling the criminal cyber infrastructure utilized in the botnet-based scheme, which involved computers infected with malicious software known in the cybersecurity community as “Kovter.” The FBI executed seizure warrants to sinkhole 23 internet domains used to further the charged botnet-based scheme or otherwise used to further the Kovter botnet. The FBI also executed search warrants at 11 different U.S. server providers for 89 servers related to the charged botnet-based scheme or Kovter.
Forfeiture matters related to the sentencings in this case were handled by Assistant United States Attorney Brendan G. King and former Assistant United States Attorney Karin K. Orenstein of the Office’s Asset Recovery Section. Assistant United States Attorneys Saritha Komatireddy, Artie McConnell, and Alexander F. Mindlin are in charge of the criminal prosecution.
U.S. Citizen and Four Chinese Intelligence Officers Charged with Spying on Prominent Pro-Democracy Activists, Dissidents, and Human Rights LeadersRead the Press Release
An indictment was returned yesterday in federal court in Brooklyn charging Shujun Wang, a U.S. citizen and Queens resident, and four officials from China’s Ministry of State Security (MSS), with conspiracy and other charges related to an espionage and transnational repression scheme. The four MSS officers are Feng He, also known as “Boss He,” Jie Ji, Ming Li, also known as “Elder Tang” and “Little Li,” and Keqing Lu, also known as “Boss Lu.” Wang was previously arrested on March 16, 2022, pursuant to a criminal complaint, and he will be arraigned at a later date. He, Ji, Li, and Lu remain at large.
Breon Peace, United States Attorney for the Eastern District of New York, Matthew G. Olsen, Assistant Attorney General of the Justice Department’s National Security Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the charges.
“As alleged, Wang acted as a covert intelligence asset in his own community, spying on and reporting sensitive information on prominent pro-democracy activists and organizations to his co-defendants: members of the Chinese government’s Ministry of State Security,” stated United States Attorney Peace. “Today’s indictment exposes and disrupts an operation by the PRC that threatens the safety and freedom of Chinese nationals residing in the United States on account of their pro-democracy beliefs and speech. Our Office and our law enforcement partners will remain vigilant to thwart foreign espionage activities aimed at our citizens and residents.”
“We will not tolerate efforts by the PRC or any authoritarian government to export repressive measures to our country,” stated Assistant Attorney General Olsen. “These charges demonstrate the Justice Department’s unwavering commitment to hold accountable all those who violate our laws in seeking to suppress dissenting voices within the United States and to prevent our residents from exercising their lawful rights.”
“Working for the People's Republic of China, we allege Wang participated in a pro-democracy organization with the insidious intent to spy on those who joined. He targeted dissidents living in the United States, putting their lives at risk. The Chinese government has proven time and again it is willing to overlook our laws to hunt down those who speak out against the regime. We are working aggressively with our law enforcement partners to thwart these actions, and we hope those who fear for their safety will reach out to us," stated Assistant Director-in-Charge Driscoll.
Wang is a well-known academic and author who helped start a pro-democracy organization in Queens that opposes the current communist regime in China. However, as alleged, since at least 2011, Wang has used his position and status within the Chinese diaspora and dissident communities to covertly collect information about prominent activists and human rights leaders on behalf of the MSS and PRC. He, Ji, Li, and Lu acted as Wang’s handlers, directing Wang to target specific individuals and groups that the PRC considers subversive, such as Hong Kong pro-democracy activists, advocates for Taiwanese independence, and Uyghur and Tibetan activists, and obtain information on particular topics and matters of importance to the MSS.
As alleged in the indictment, Wang communicated and provided information to the MSS, including to He, Ji, Li, and Lu, by using encrypted messaging applications and emails, as well as during face-to-face meetings in the PRC. Wang often memorialized the information he collected in email “diaries” to be accessed by the MSS. These “diaries” included details about Wang’s private conversations with prominent dissidents, as well as the activities of pro-democracy activists and human rights organizations. A search of Wang’s residence incident to his arrest revealed approximately 163 “diary” entries Wang wrote to He, Ji, Li, and Lu and other MSS officials.
For example, in one series of communications on or about November 22, 2016, Ji instructed Wang to interface with a particular attendee at an upcoming pro-democracy event and to “accomplish the task” assigned by the “Boss,” referring to Lu. Ji noted that the attendee of interest had contacts with “Tibetans, Uyghurs and Mongolians” and wished Wang good luck at getting “good results.” In another exchange on or about November 16, 2016, Wang informed Li that he “just finished chatting” with a prominent human rights activist, noting that he asked the “necessary questions” and received “candid” answers. Li responded “great” and with a thumbs-up emoji, instructing Wang to write it in a “diary.” At least one Hong Kong democracy activist and dissident that Wang reported on to the MSS, identified as “Hong Kong Dissident #1” in the indictment, was subsequently arrested by the PRC.
In addition to this conduct, the indictment alleges that Wang transferred to the MSS and possessed telephone numbers and contact information belonging to Chinese dissidents, as well as made materially false statements to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Artie McConnell is in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
The Defendants:
WANG SHUJUN
Age: 73
Queens, New YorkFENG HE (also known as “Boss He”)
Age: 49
Guangdong, PRCJIE JI
Age: 50
Qingdao, PRCMING LI (also known as “Elder Tang” and “Little Li”)
Age: 40
Guangdong, PRCKEQING LU (also known as “Boss Lu”)
Age: 61
Qingdao, PRCE.D.N.Y. Docket No. 22-CR-00230 (SJ) (JRC)
U.S. Citizen and Four Chinese Intelligence Officers Charged with Spying on Prominent Dissidents, Human Rights Leaders and Pro-Democracy ActivistsRead the Press Release
A U.S. citizen and four officials from China’s Ministry of State Security (MSS) were charged in an indictment, unsealed in federal court in Brooklyn yesterday, with conspiracy and other charges related to an espionage and transnational repression scheme.
According to court documents, Wang Shujun, 73, of Queens, New York; Feng He, aka Boss He, of Guangdong; Jie Ji, of Qingdao; Ming Li, aka Elder Tang and Little Li, of Guangdong; and Keqing Lu aka Boss Lu, of Qingdao, allegedly participated in an espionage and transnational repression scheme in the United States and abroad. Wang was arrested on March 16, pursuant to a criminal complaint, and will be arraigned at a later date. He, Ji, Li and Lu remain at large.
“We will not tolerate efforts by the PRC or any authoritarian government to export repressive measures to our country,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “These charges demonstrate the Justice Department’s unwavering commitment to hold accountable all those who violate our laws in seeking to suppress dissenting voices within the United States and to prevent our residents from exercising their lawful rights.”
“As alleged, Wang acted as a covert intelligence asset in his own community, spying on and reporting sensitive information on prominent pro-democracy activists and organizations to his co-defendants, who are members of the Chinese government’s Ministry of State Security,” said U.S. Attorney Breon Peace for the Eastern District of New York. “Today’s indictment exposes and disrupts an operation by the PRC that threatens the safety and freedom of Chinese nationals residing in the United States on account of their pro-democracy beliefs and speech. Our office and our law enforcement partners will remain vigilant to thwart foreign espionage activities aimed at our citizens and residents.”
“If anyone doubts how serious the Chinese government is about silencing its critics, this case should eliminate any uncertainty,” said Acting Executive Assistant Director Alan E. Kohler Jr. of the FBI’s National Security Branch. “The Chinese government’s aggressive tactics were once confined to its borders. Now, the PRC is targeting people in the United States and around the world. The FBI and its partners remain committed to combatting transnational repression.”
According to court documents, Wang is a well-known academic and author who helped start a pro-democracy organization in Queens that opposes the current communist regime in China. However, as alleged, since at least 2011, Wang has used his position and status within the Chinese diaspora and dissident communities to covertly collect information about prominent activists and human rights leaders on behalf of the MSS and PRC. As alleged in the indictment, He, Ji, Li and Lu acted as Wang’s handlers, directing Wang to target specific individuals and groups that the PRC considers subversive, such as Hong Kong pro-democracy activists, advocates for Taiwanese independence, and Uyghur and Tibetan activists, and obtain information on particular topics and matters of importance to the MSS.
As alleged in the indictment, Wang communicated and provided information to the MSS, including to He, Ji, Li and Lu, by using encrypted messaging applications and emails, as well as during face-to-face meetings in the PRC. Wang would often memorialize the information he collected in email “diaries” to be accessed by the MSS. These “diaries” included details about Wang’s private conversations with prominent dissidents, as well as the activities of pro-democracy activists and human rights organizations. A search of Wang’s residence incident to his arrest revealed approximately 163 “diary” entries Wang wrote to He, Ji, Li and Lu and other MSS officials.
For example, in one series of communications on or about Nov. 22, 2016, Ji instructed Wang to interface with a particular attendee at an upcoming pro-democracy event and to “accomplish the task” assigned by the “Boss,” referring to Lu. Ji noted that the attendee of interest had contacts with “Tibetans, Uyghurs and Mongolians” and wished Wang luck at getting “good results.” In another exchange on or about Nov. 16, 2016, Wang informed Li that he “just finished chatting” with a prominent human rights activist, noting that he asked the “necessary questions” and received “candid” answers. Li responded “great” and with a thumbs-up emoji, instructing Wang to write it in a “diary.” At least one Hong Kong democracy activist and dissident that Wang reported on to the MSS, identified as “Hong Kong Dissident #1” in the indictment, was subsequently arrested by the PRC.
In addition to this conduct, the indictment alleges that Wang transferred and possessed telephone numbers and contact information belonging to Chinese dissidents to the MSS, as well as making materially false statements to federal law enforcement, falsely denying that he had contacts with PRC officials or the MSS.
Assistant U.S. Attorney Artie McConnell of the Eastern District of New York is prosecuting the case with valuable assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office and Mercy Health Northern Hospital Systems Agree to Settlement to Resolve Violations of Americans with Disabilities ActRead the Press Release
Acting U.S. Attorney Michelle M. Baeppler announced today that the U.S. Attorney’s Office for the Northern District of Ohio reached a settlement agreement with various hospitals located in the Mercy Health Northern Markets to resolve violations stemming from an investigation under the Americans with Disabilities Act (ADA).
The agreement follows a federal civil rights investigation into complaints of discriminatory treatment of deaf patients and their companions during healthcare stays at several hospitals. These complaints stated that Mercy Health failed to provide on-site interpreters and, instead, relied on note writing and/or video remote interpreting services that failed to provide effective communication. On the basis of its investigation, the United States determined that Mercy Health denied patients the appropriate auxiliary aids and services necessary for effective communication during healthcare.
Under the terms of the settlement agreement, Mercy Health agreed to take proactive steps to ensure future patients, and companions of patients, who are deaf or hard of hearing avoid similar discrimination. The hospital system shall, among other actions, provide appropriate auxiliary aids and services, when necessary, after conducting a communication assessment by consulting with the patient and/or companion. The agreement also states that patients and their companions shall be advised of the availability of these aids and services throughout their healthcare stay and that these services will be provided free of charge.
According to the terms of the agreement, Mercy Health shall also make payments to each aggrieved person identified during the investigation and pay a civil penalty to the United States.
This agreement is neither an admission of liability by Mercy Health nor a concession by the United States that its claims are not well-founded. The Mercy Health hospital system cooperated fully throughout the investigation, which was conducted by Assistant U.S. Attorney Angelita Cruz Bridges under title III of the Americans with Disabilities Act of 1990.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/ or by calling the U.S. Attorney’s Office civil rights hotline at (216) 622-3932.
U.S. Attorney Will Thompson to Honor Excellence in Law Enforcement during Friday CeremonyRead the Press Release
CHARLESTON, W.Va. – United States Attorney Will Thompson will honor more than 60 law enforcement professionals during the 2022 Law Enforcement Awards Ceremony on Friday, May 20, 2022, at 1:00 p.m. at the Robert C. Byrd U.S. Courthouse in Charleston.
Federal, state, and local law enforcement officers will be recognized for their outstanding contributions to major investigations and cases involving drugs, violent crime, civil rights, child exploitation, and white collar crime.
Thompson will also present awards honoring this year’s outstanding law enforcement officers, drug and violent crime task force, collaborative law enforcement agency, and community partner.
The annual awards ceremony recognizes the exemplary service of federal, state, and local law enforcement officers who have provided invaluable assistance to the U.S. Attorney’s Office for the Southern District of West Virginia in cases and initiatives.
This year’s ceremony is in conjunction with National Police Week, held to remember and honor the service and sacrifices of law enforcement officers.
WHO: United States Attorney Will Thompson, joined by representatives from the law enforcement community
WHAT: 2022 Law Enforcement Awards Ceremony
WHEN: Friday, May 20, 2022 at 1:00 p.m.
WHERE: Robert C. Byrd United States Courthouse, Fifth Floor, 300 Virginia St., East, Charleston, West Virginia
*** NOTICE: cameras and other recording devices will be permitted on the fifth floor of the Courthouse for the ceremony only. ***
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.
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U.S. Attorney Cole Finegan Joins African American Community Leaders at Vigil for Mass Shooting VictimsRead the Press Release
Remarks as delivered
It is a sad honor to be with you this afternoon. The news of the tragic shootings in Buffalo, and elsewhere, are at the forefront of our minds.
Our hearts are hurting for the victims, their families, their friends and for our country.
We don’t yet know all the details about these recent incidents, but we know enough to understand how deeply this has impacted all of us.
By all indications, the shooting in Buffalo was motivated by extremist rhetoric and racism. We also know hate crimes are among the most devastating because they impact everyone – not just where the event occurs – but all across the country. We feel it in Buffalo, in California, in Texas, and we feel it here in Colorado.
These crimes impact, not just members of the targeted group, but all of us. These crimes and the people who commit them are focused on driving communities apart. Instead, we must focus on our common humanity.
These evil acts try to tear us apart; and that’s why it’s so important to come together – like we are doing right now.
I want to assure you that the U.S. Attorney’s Office for the District of Colorado stands with you today, and all days. We stand ready to marshal federal resources to investigate and prosecute any instances of potential hate crimes here in our community. We work with our partners at the FBI, the Department of Homeland Security, along with state and local law enforcement to address all acts of violent extremism.
There is no room for hatred in this world. We will come together. We will not let this evil divide us.
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U.S. Attorney joins community and faith leaders at the State Capitol in the wake of the Buffalo mass shootingTwo Wilkes-Barre Men Sentenced for Drug TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that U.S. District Court Judge Robert D. Mariani sentenced Duwayne Brown, age 41, of Wilkes-Barre, Pennsylvania, to 33 months’ imprisonment, and Andrew Henry, age 48, formerly of Wilkes-Barre, to 18 months’ imprisonment, for drug trafficking.
According to United States Attorney John C. Gurganus, Brown and Henry previously pleaded guilty to a drug trafficking conspiracy involving cocaine, cocaine base, or “crack,” and heroin. The two men worked to obtain and sell drugs in Luzerne County with Michael Rinaldi, who was previously sentenced to 235 months’ imprisonment.
The case was investigated by the U.S. Drug Enforcement Administration (DEA). Assistant U.S. Attorney Sean A. Camoni prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Two Defendants Sentenced in Unemployment Fraud SchemeRead the Press Release
DETROIT - Two defendants were sentenced yesterday for their role in an unemployment insurance benefit fraud scheme, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Special Agent-in-Charge James A. Tarasca, Federal Bureau of Investigation; and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Mitchacole Johnson, 45, of Shelby Township, received a sentence of 3 years in federal prison and Larry Witherspoon, 46, of Harper Woods received a sentence of 4 years in federal prison. Both pleaded guilty to charges of wire fraud and were sentenced by United States District Judge Gershwin Drain.
“These defendants exploited the current pandemic to defraud the State of Michigan and United States for their own personal gain. My office is committed to prosecuting any person who used the Covid-19 crisis to inflict more harm on the people of Michigan,” stated U.S. Attorney Dawn N. Ison.
"Both Defendants manipulated the unemployment insurance system and stole taxpayer dollars for their own personal benefit," said James A. Tarasca, Special Agent in Charge of the FBI's Detroit Division. "The FBI is proud to work with our law enforcement partners to protect our country's vital federal assistance programs intended for out of work Americans."
According to court records, Johnson and Witherspoon are responsible for filing at least 66 claims for fraudulent unemployment insurance benefits in at least 4 states, including Michigan. Their illegal activity caused actual losses of over $1.3 million and attempted losses of nearly $3.5 million. Johnson filed a number of claims in her own name, while Witherspoon filed multiple claims in the names of people who had names similar to his own, such as “Lawrence Witherspoon.” Both Johnson and Witherspoon filed their claims using other people’s Social Security Numbers and had the benefits deposited into a variety of bank accounts, some connected to pre-paid debit cards.
This case was prosecuted by Assistant United States Attorney Ryan A. Particka. The investigation was conducted jointly by agents from the Department of Labor Office of the Inspector General and the Federal Bureau of Investigation.
Top Money Launderer for Ghana-Based Criminal Enterprise Sentenced to Nine YearsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that FRED ASANTE was sentenced to 108 months for his role as the top U.S.-based money launderer for a criminal enterprise based in the Republic of Ghana (“Ghana”) that engaged in fraud schemes that stole tens of millions of dollars from victims across the United States. These fraud schemes included business email compromises, romance scams targeting elderly victims, and fraud schemes related to the COVID-19 pandemic. ASANTE was arrested on February 17, 2021 in Virginia and pled guilty to conspiracy to commit money laundering on February 16, 2022 before District Judge Jed S. Rakoff, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Fred Asante set up companies that appeared to be involved in legitimate business, but in reality they were simply fronts that he used to receive and launder millions of dollars for a criminal enterprise in Ghana that defrauded American businesses and individuals through online scams. Asante will now serve a substantial term in prison for his money laundering operation. We will continue to work tirelessly with our law enforcement partners to hold accountable those who participate in the money side of the fraud business.”
According to the Indictment, public court filings, and statements made in court:
From at least September 2016 through when he was arrested in February 2021, ASANTE was a member of a criminal enterprise (the “Enterprise”) based in Ghana that committed a series of frauds against individuals and businesses located across the United States, including in the Southern District of New York. The frauds perpetrated by the Enterprise have consisted of, among other frauds, business email compromises, romance scams, and fraud schemes related to the novel coronavirus/COVID-19 pandemic. First, the objective of the Enterprise’s business email compromise fraud scheme was to trick and deceive businesses into wiring funds into accounts controlled by the Enterprise through the use of email accounts that “spoofed” or impersonated employees of a victim company or third parties engaged in business with a victim company. Second, the Enterprise conducted the romance scams by using electronic messages sent via email, text messaging, or online dating websites that deluded victims, many of whom were vulnerable older men and women who lived alone, into believing the victim was in a romantic relationship with a fake identity assumed by members of the Enterprise. Once members of the Enterprise had gained the trust of the victims using the fake identity, they used false pretenses to cause the victims to wire money to bank accounts the victims believed were controlled by their romantic interests, when in fact the bank accounts were controlled by members of the Enterprise. Finally, the Enterprise submitted fraudulent loan applications through a loan program of the United States Small Business Administration (the “SBA”) designed to provide relief to small businesses during the COVID-19 pandemic, namely the Economic Injury Disaster Loan (“EIDL”) Program. The Enterprise submitted fraudulent EIDL applications in the names of actual companies to the SBA and when an EIDL loan was approved, the funds were ultimately deposited in bank accounts controlled by members of the Enterprise.
ASANTE and other members of the Enterprise received fraud proceeds from victims of the Enterprise in dozens of business bank accounts that they controlled in New York, New Jersey, and Virginia. The business bank accounts were opened in the names of companies formed by ASANTE and other members of the Enterprise that were purportedly involved in, among other things, automobile sales, food imports and exports, and freight trucking and shipping. Once ASANTE received fraud proceeds in bank accounts under his control, he withdrew, transported, and laundered those fraud proceeds to other members of the Enterprise abroad. ASANTE primarily laundered the fraud proceeds through his businesses by using the proceeds to purchase automobiles, food products, and other goods from U.S.-based suppliers and distributors of such products and shipping those products to Ghana and elsewhere. These transactions had the appearance of legitimate business transactions when, in fact, the products had been purchased using the proceeds of fraud schemes. This trade-based money laundering scheme was designed to obscure the origin of the fraud proceeds as well as the identity of the ultimate beneficiaries of these schemes.
In total, ASANTE opened and maintained 19 bank accounts at more than 10 different banks as part of his money laundering operation. These bank accounts had deposits that totaled approximately $36.4 million during the 4.5-year period from September 2016 through January 2021, which included fraud proceeds from more than 80 identified victims.
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In addition to the prison term, ASANTE, 37, of Fredericksburg, Virginia, was sentenced to three years of supervised release. ASANTE was also ordered to pay forfeiture in the amount of $647,488 and restitution in the amount of $2,292,486.71.
ASANTE’s co-defendant, LORD ANING, was previously sentenced to two years in prison by Judge Rakoff on February 28, 2022.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Sagar K. Ravi, Katherine Reilly, and Mitzi Steiner are in charge of the prosecution.
Texas man sentenced to 10 years for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Leonard Jasmine, of Houston, Texas, was sentenced today to 121 months of incarceration for his role in a multi-state drug trafficking ring, United States Attorney William Ihlenfeld announced.
Jasmine, 30, pleaded guilty in December 2021 to one count of “Conspiracy to Distribute Controlled Substances.” Jasmine admitted to working with others to distribute methamphetamine, cocaine base, cocaine hydrochloride, and fentanyl from the spring of 2018 to October 2020 in Monongalia County and elsewhere.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; the Monongalia County Sheriff's Office; and the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office; the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and the FBI and DEA in Los Angeles, California.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Chief U.S. District Judge Thomas S. Kleeh presided.
Find more about the case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Texas man sentenced for role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeffrey Howard, of Houston, Texas, was sentenced today to 87 months of incarceration for his role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, United States Attorney William Ihlenfeld announced.
Howard, age 24, pleaded guilty in December 2021 to one count of “Possession with Intent to Distribute Methamphetamine.” Howard admitted to having methamphetamine in Monongalia County in September 2019.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office; the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Chief U.S. District Judge Thomas S. Kleeh presided.
Related case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Tequila Entrepreneur Sentenced to Prison for Securities FraudRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that JOSEPH CIMINO was sentenced today to 18 months in prison, in connection with his scheme to induce victims to invest several hundred thousand dollars into his Hudson Valley tequila business based on false information about the company’s finances. CIMINO previously pled guilty to committing securities fraud and wire fraud in connection with his misrepresentations to investors and misappropriation of investor funds. U.S. District Judge Vincent L. Briccetti imposed today’s sentence in White Plains federal court.
U.S. Attorney Damian Williams said: “Cimino doctored documents and provided phony information to dupe investors into handing over hundreds of thousands of dollars that he used in part to line his own pockets. Now Cimino has been sentenced for his crimes.”
According to statements in the Complaint, Information, and other filings and statements at public court proceedings in the case:
In or about 2016 to 2018, CIMINO raised approximately $615,000 from approximately 16 investors. To attract investors, CIMINO falsely inflated the amount of capital that he had raised from prior investors, and fraudulently altered an investor list to include several individuals who, in fact, had not contributed any funds. CIMINO also falsely inflated his company’s sales. For example, in July 2017, CIMINO claimed in an investor report that year-to-date sales totaled 3,410 cases of tequila, when the actual sales totaled only 350 cases. Similarly, in October 2017, CIMINO falsely claimed that year-to-date sales totaled 6,035 cases, which was approximately five times the actual total. CIMINO further claimed in October 2017 that his company would receive reimbursement for 800 cases of tequila supposedly destroyed at a Puerto Rican warehouse as a result of Hurricane Maria. In reality, no inventory was destroyed in the hurricane, and the company lacked insurance.
CIMINO also misused a substantial portion of investor money that was intended to fund the operations of his tequila business for personal expenses, contrary to the company’s operating agreement. For example, CIMINO transferred investor money to his personal bank account in order to subsidize his food, entertainment, and other living expenses.
* * *
In addition to the prison term, CIMINO, 58, of Warwich, New York, was sentenced to three years of supervised release. CIMINO was further ordered to pay restitution to his victims in the amount of $615,000.02 and to forfeit $159,258.23 in fraud proceeds.
Ms. Williams praised the investigative work of the Federal Bureau of Investigation and thanked the U.S. Securities and Exchange Commission for its assistance.
This case is being handled by the Office’s White Plains Division. Assistant United States Attorneys Benjamin Gianforti and Daniel Loss are in charge of the prosecution.
Sutton Man Sentenced for Cocaine ConspiracyRead the Press Release
BOSTON – A Sutton man was sentenced yesterday in federal court in Worcester for conspiring to distribute cocaine.
Bruce Marando, 48, was sentenced by U.S. District Court Judge Timothy S. Hillman to 57 months in prison and three years of supervised release. On Aug. 20, 2021, Marando was convicted by a federal jury of conspiracy to distribute cocaine.
In 2017, agents identified Marando as a member of a Worcester-based drug trafficking organization led by co-conspirator Vito Nuzzolilo. From March to May 2017, Marando conspired to distribute cocaine and cocaine base (crack cocaine). A wiretap revealed numerous communications in which Marando and Nuzzolilo discussed purchasing and selling cocaine, cooking crack cocaine and distributing cocaine to satisfy a $12,000 debt that Marando owed Nuzzolilo. Intercepted conversations also revealed that Marando and Nuzzolilo regularly discussed using physical violence to assault customers unable to pay their debts. As a result of the investigation, law enforcement seized drugs from various locations, including 250 grams of cocaine from Nuzzolilo’s band room.
In April 2020, Nuzzolilo was sentenced to 134 months in prison and eight years of supervised release.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Division; and Webster Police Chief Michael D. Shaw made the announcement. Assistant U.S. Attorneys Lucy Sun, Elysa Q. Wan, David J. Derusha and William F. Abely of Rollins’ Criminal Division prosecuted the case.
Staten Island Felon Sentenced to Prison for Possessing Illegal FirearmRead the Press Release
Earlier today, in federal court in Brooklyn, Brian Maiorana was sentenced by United States District Judge Frederic Block to 36 months in prison for being a convicted felon in possession of a firearm. Maiorana pleaded guilty to the charge in April 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“This sentencing demonstrates that individuals, like the defendant, who espouse violent views on social media concerning the ‘extermination’ and ‘assassination’ with ‘pipebombs’ and ‘firearms’ of those who don’t share their hateful, bigoted views, and who illegally possess guns and ammunition will be brought to justice,” stated United States Attorney Peace. “Our nation is facing a fatal epidemic of racism and hatred, and this Office and our law enforcement partners are working tirelessly to remove the illegal guns that turn these social media trolls into dangerous criminals, with the capacity to do irreparable harm to our communities. This Office and our law enforcement partners are so grateful that we apprehended the defendant before he turned his violent social media rants into fatal actions, and that we are not once again grieving a mass shooting.”
Beginning in September 2020, Maiorana used a social media platform to post multiple threats to kill protestors, politicians and law enforcement officers and to encourage others to do the same. For example, on October 19, 2020, Maiorana posted that “[i]ts come to the point where pipe bombs need to be thrown into these mobs of potentially non violent violent protesters.” On or about November 5, 2020, Maiorana posted, “The carnage needs to come in the form of extermination of anyone that claims to be democrat…as well as their family members.” On November 8, 2020, following the news media’s projection of the result of the 2020 Presidential Election, Maiorana posted that “The Turner Diaries must come to life. We blow up the FBI building for real.” The investigation culminated in the execution of a court-ordered search warrant of the defendant’s Staten Island residence where members of the FBI’s Joint Terrorism Task Force seized a semiautomatic .45 caliber Glock handgun, two magazines loaded with .45 caliber ammunition, .22 caliber ammunition, and “ghost gun” parts for a .22 caliber firearm. A taser, a crossbow, an expandable baton, a skull balaclava, and a copy of the “Anti-Government Movement Guidebook” were also recovered. Maiorana has a previous felony conviction from Pennsylvania for statutory sexual assault, stemming from a sexual relationship he had with a 13-year old that began when the defendant was 38.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorneys Artie McConnell and Jonathan E. Algor are in charge of the prosecution.
The Defendant:
BRIAN MAIORANA
Age: 55
Staten Island, New YorkE.D.N.Y. Docket No. 20-CR-519 (FB)
State Employee Charged in over $1 million Unemployment Fraud SchemeRead the Press Release
DETROIT – Three woman have been charged in a criminal complaint for their alleged role in a $1.6 million dollar unemployment insurance fraud scheme aimed at defrauding the State of Michigan and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced United States Attorney Dawn N. Ison.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, John R. Pias, Special Agent-in-Charge, Department of Homeland Security Office of Inspector General, and James A. Tarasca, Special Agent-in-Charge, Federal Bureau of Investigation.
Charged were Antonia Brown, age 47, of Detroit, Kiannia Mitchel, age 32 of Romulus, and Angela Johnson, age 47, of Detroit.
According to the criminal complaint, Antonia Brown was employed by the State of Michigan as an Unemployment Insurance Examiner assigned to the Benefit Payment Control Unit. Part of her duties included reviewing, approving and adjudicating various Pandemic Unemployment Assistance (PUA) and Unemployment Insurance Assistance (UIA) claims.
As stated in the complaint, starting in March 2020, Kiannia Mitchel and Angela Brown fraudulently filed and/or accessed over 123 PUA claims, resulting in the disbursement of approximately $1.6 million in federal funds earmarked for PUA and UIA benefit payments. The complaint alleges that Brown acted outside the scope of her authority by electronically accessing, altering, and approving approximately 101 of the fraudulent claims which were all associated with Johnson and Mitchell’s residences. Mitchel and Johnson are alleged to have received money from third parties to assist them with the claims and paid Brown for her assistance in processing the fraudulent claims.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed, a determination will be made whether to seek a felony indictment.
The investigation is being conducted jointly by the Department of Labor Office of Inspector General, Department of Homeland Security Office of Inspector General, and the Federal Bureau of Investigation Detroit Area Public Corruption Task Force.
Springfield Man Sentenced for Heroin ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute heroin.
Charles A. Robinson, also known as “Big C,” 41, was sentenced by U.S. District Judge Stephen R. Bough to 11 years and eight months in federal prison without parole.
On Dec. 27, 2021, Robinson pleaded guilty to participating in a conspiracy to distribute at least a kilogram of heroin in Cole, Callaway, and Greene counties from July 1, 2015, to March 27, 2018. Robinson admitted that he transported heroin from St. Louis, Mo., to Springfield. Robinson then distributed the heroin to other members of the conspiracy for distribution.
When law enforcement officers executed a search warrant at Robinson’s residence on April 13, 2016, he was in possession of 39 grams of heroin.
Robinson is the seventh and final defendant to be sentenced in this case.
This case was prosecuted by Supervisory Assistant U.S. Attorneys Randall D. Eggert and Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms Explosives, the Drug Enforcement Administration, the Springfield, Mo., Police Department and the Jefferson City, Mo., Police Department.
Spokane Resident Pleads Guilty to Fraudulently Obtaining More Than $50,000 in COVID-19 Relief FundsRead the Press Release
Spokane, Washington – Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington, announced today that Roshon Edward Thomas, 52, of Spokane, Washington, has pleaded guilty to fraudulently obtaining more than $50,000 in COVID-19 relief funds. This case is part of the COVID-19 Relief Fraud Strike Force launched by the U.S. Attorney’s Office earlier this year. Senior Judge Rosanna Malouf Peterson accepted Thomas’ guilty plea and set sentencing for August 16, 2022, in Spokane.
On March 27, 2020, the President signed into law the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. The CARES Act provided a number of programs through which eligible small businesses could request and obtain relief funding intended to mitigate the economic impacts of the pandemic for small and local businesses. One such program, the Economic Injury Disaster Loan (EIDL) program, provided low interest loans that could be deferred until the conclusion of the pandemic to provide “bridge” funding for small businesses to maintain their operations during shutdowns and other economic circumstances caused by the pandemic.
“COVID-19 relief programs were designed to lift up our community during crisis, and due to the number of people and businesses that requested funding, some deserving small businesses were not able to obtain funding to keep their businesses in operation,” said U.S. Attorney Waldref. “We created the COVID-19 Fraud Strike Force because combatting pandemic-related fraud and holding those accountable who abused these programs is critical to the strength and safety of our community in Eastern Washington. The Strike Force works to ensure that limited resources are used to protect our local small businesses and the critical jobs and services that they provide for the community.”
In February 2022, U.S. Attorney Waldref and the U.S. Attorney’s Office began working with federal law enforcement agencies to create and launch a COVID-19 Fraud Strike Force that would leverage partnerships between different agencies to aggressively investigate and prosecute fraud against COVID-19 relief programs in Eastern Washington. The Strike Force consists of agency representatives from the U.S. Attorney’s Office, Small Business Administration (SBA) Office of Inspector General (OIG), Federal Bureau of Investigation (FBI), U.S. Department of the Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, U.S. Homeland Security Investigations (HSI), U.S. Department of Veterans Affairs OIG, General Services Administration OIG, Internal Revenue Service, Department of Energy OIG, Department of Homeland Security OIG, and others. Cases investigated and prosecuted by the Strike Force have resulted in numerous indictments, criminal prosecutions, and civil penalties.
According to court documents and information disclosed during court proceedings, Thomas fraudulently obtained at least $54,900 in COVID-19 relief funding through two EIDL loans he obtained in July and August 2020 for a purported tattoo parlor and a clothing design company. Thomas pled guilty to submitting false and fraudulent claims to the United States, and admitted to using false and fraudulent information to obtain EIDL funding for both companies. The charge carries a maximum sentence of up to five years in prison.
“I commend the stellar investigative work on these cases performed by the Strike Force and especially in this case by SBA OIG, TIGTA, FBI, and HSI,” said U.S. Attorney Waldref. “We will continue to work together with our law enforcement partners to vigorously prosecute those who abuse and misuse COVID-19 relief funding, and to strengthen our communities by protecting our small and local businesses.”
Assistant United States Attorneys Dan Fruchter and Tyler H.L. Tornabene are prosecuting this case on behalf of the United States.
Ship Chief Engineer Pleads Guilty to Intentional Discharge of Oily Waste and Obstruction of Justice Charges in New OrleansRead the Press Release
The Chief Engineer of a foreign flagged vessel pleaded guilty today to two felony counts for deliberately discharging approximately 10,000 gallons of oil-contaminated bilge water overboard in U.S. waters off the coast of New Orleans last year and then trying to obstruct the Coast Guard’s investigation of the spill. The illegal conduct was first reported to the Coast Guard by a crew member via social media.
Kirill Kompaniets, a Russian national and the Chief Engineer of the ship, a commercial bulk carrier registered in the Marshall Islands, was charged with the illegal discharge in violation of the Act to Prevent Pollution from Ships. According to papers filed in court, repair operations were underway to correct a problem with the discharge of clean ballast water when a valve burst and the engine room flooded. Late on the night of March 13-14, 2021 after the leak had been controlled, Kompaniets and a subordinate engineer deliberately dumped the oil contaminated water in the bilges overboard. The discharge into U.S. waters occurred while the ship was at an anchorage near the South West Passage off the Louisiana coast. The ship’s required pollution prevention equipment – an oily-water separator and oil content monitor – were not used, and the discharge was not recorded in the Oil Record Book, a required ship log.
Kompaniets was also charged with obstruction of justice based on various efforts to conceal the illegal discharge. In a joint factual statement filed in court with his guilty plea, Kompaniets admitted to the following acts of obstruction of justice: (1) making false statements to the Coast Guard that concealed the cause and nature of a hazardous condition, and concealing that the engine room of the vessel had flooded and that oil-contaminated bilge water had been discharged overboard; (2) destroying the computer alarm printouts for the period of the illegal discharge that were sought by the Coast Guard; (3) holding meetings with subordinate crew members and directing them to make false statements to the Coast Guard; (4) making a false Oil Record Book that failed to disclose the illegal discharge; (5) directing subordinate engine room employees to delete all evidence from their cell phones in anticipation of the Coast Guard inspection; and (6) preparing a retaliatory document accusing the whistleblower of poor performance as part of an effort to discredit him.
“The intentional pollution of U.S. waters and the deliberate effort to cover up the crime are extremely serious criminal offenses that will not be tolerated,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Prosecutions such as this one should send a clear message to those that would violate the law and endanger our precious natural resources.”
“The defendant in this case deliberately disregarded procedures designed to protect the environment from contaminants and then attempted to hide his actions,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Today’s announcement emphasizes that our office along with our federal partners are committed to holding accountable all parties whose criminality jeopardizes our environment and places the public and the ecosystem at risk.”
The criminal prosecution is being handled by Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana and Senior Litigation Counsel Richard A. Udell of the Environment and Natural Resources Division's Environmental Crimes Section, with assistance provided by District 8 of the U.S. Coast Guard and the Coast Guard Criminal Investigations Division.
The investigation is continuing.
The case was assigned to U.S. District Court Chief Judge Nannette Jolivette Brown. Sentencing has been scheduled for September 1.
Ship Chief Engineer Pleads Guilty to Intentional Discharge of Oily Waste and Obstruction of Justice Charges in New OrleansRead the Press Release
The Chief Engineer of a foreign flagged vessel pleaded guilty today to two felony counts for deliberately discharging approximately 10,000 gallons of oil-contaminated bilge water overboard in U.S. waters off the coast of New Orleans last year and then trying to obstruct the Coast Guard’s investigation of the spill. The illegal conduct was first reported to the Coast Guard by a crew member via social media.
Kirill Kompaniets, a Russian national and the Chief Engineer of the ship, a commercial bulk carrier registered in the Marshall Islands, was charged with the illegal discharge in violation of the Act to Prevent Pollution from Ships. According to papers filed in Court, repair operations were underway to correct a problem with the discharge of clean ballast water when a valve burst and the engine room flooded. Late on the night of March 13-14, 2021 after the leak had been controlled, Kompaniets and a subordinate engineer deliberately dumped the oil contaminated water in the bilges overboard. The discharge into U.S. waters occurred while the ship was at an anchorage near the South West Passage off the Louisiana coast. The ship’s required pollution prevention equipment – an oily-water separator and oil content monitor – were not used, and the discharge was not recorded in the Oil Record Book, a required ship log.
Kompaniets was also charged with obstruction of justice based on various efforts to conceal the illegal discharge. In a joint factual statement filed in Court with his guilty plea, Kompaniets admitted to the following acts of obstruction of justice: (1) making false statements to the Coast Guard that concealed the cause and nature of a hazardous condition, and concealing that the engine room of the vessel had flooded and that oil-contaminated bilge water had been discharged overboard; (2) destroying the computer alarm printouts for the period of the illegal discharge that were sought by the Coast Guard; (3) holding meetings with subordinate crew members and directing them to make false statements to the Coast Guard; (4) making a false Oil Record Book that failed to disclose the illegal discharge; (5) directing subordinate engine room employees to delete all evidence from their cell phones in anticipation of the Coast Guard inspection; and (6) preparing a retaliatory document accusing the whistleblower of poor performance as part of an effort to discredit him.
“The intentional pollution of U.S. waters and the deliberate effort to cover up the crime are extremely serious criminal offenses that will not be tolerated,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Prosecutions such as this one should send a clear message to those that would violate the law and endanger our precious natural resources.”
“The defendant in this case deliberately disregarded procedures designed to protect the environment from contaminants and then attempted to hide his actions,” said U.S. Attorney Duane A. Evans. “Today’s announcement emphasizes that our office along with our federal partners are committed to holding accountable all parties whose criminality jeopardizes our environment and places the public and the ecosystem at risk.”
The criminal prosecution is being handled by Assistant U.S. Attorney G. Dall Kammer for the Eastern District of Louisiana and Senior Litigation Counsel Richard A. Udell of the Environment and Natural Resources Division's Environmental Crimes Section, with assistance provided by District 8 of the U.S. Coast Guard and the Coast Guard Criminal Investigations Division.
The investigation is continuing.
The case was assigned to U.S. District Court Chief Judge Nannette Jolivette Brown. Sentencing has been scheduled for September 1.
Seven South Korean Companies Agree to Pay Approximately $3.1 Million to Settle Civil False Claims Act Allegations for Bid Rigging on U.S. Department of Defense ContractsRead the Press Release
Seven South Korea-based companies have agreed to pay $3.1 million to resolve allegations they violated the False Claims Act by engaging in a bid-rigging conspiracy that targeted U.S. Army Corps of Engineers (USACE) contracts for construction and engineering work on U.S. military bases in South Korea. The seven companies are Korea Engineering Consultants Corporation; Yul Lim Construction Co. Ltd.; Shin Woo Construction & Industrial Co. Ltd.; Seongbo Const. Ind. Co. Ltd.; Wooseok Construction Co. Ltd.; Yuil Engineering and Construction Co.; and Seokwang Development Co. Ltd. The companies have agreed to each pay an equal share of the settlement amount.
The United States alleged the seven companies conspired to suppress and eliminate competition during the bidding process on 15 USACE contracts awarded between 2016 and 2019. The United States further alleged that as a result of this anticompetitive conduct, the USACE paid substantially more for services performed under the contracts than it would have had there been competition among the bidders.
“Contractors, both foreign and domestic, provide valuable services to our armed forces around the globe,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will ensure that such entities face appropriate consequences, however, if they fail to comply with the law and instead engage in corrupt practices at the expense of our nation’s military and the American taxpayers.”
“The U.S. Army Criminal Investigation Division (Army CID) will hold accountable those who defraud the U.S. government, no matter where they are,” said Special Agent in Charge Scott Moreland of the Army CID’s Major Procurement Fraud Field Office. “We appreciate the steadfast partnership shown by our fellow federal agencies to bring this scheme to a halt.”
“The agreement announced today is another example of the FBI’s ongoing work to eliminate bid-rigging and price fixing and ensure those engaged in such behavior are brought to justice,” said Assistant Director in Charge Kristi Johnson of the FBI's Los Angeles Division. “Such activity cheats American taxpayers while harming competitive markets. Simply put, collusion on contracts will not be tolerated; and this case sends a clear message that the FBI and its partners will hold individuals and corporations accountable when they violate federal statutes.”
“The integrity of the Department of Defense’s procurement system is critical to our nation’s military readiness,” said Special Agent in Charge Stanley A. Newell of the Defense Criminal Investigative Service (DCIS) Transnational Operations Field Office. “The special agents of the Department of Defense Office of Inspector General Defense Criminal Investigative Service are steadfast in our mission to root out fraud and corruption that threatens the programs and components of the DoD. This outcome should resonate as a strong warning to those who seek enrichment at the expense of America’s national defense. DCIS and our partner agencies will use all tools at our disposal to bring these unscrupulous actors to justice.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the Army CID Major Procurement Fraud Unit; the FBI’s International Contract Corruption Task Force; and DCIS.
The matter was handled by Senior Trial Counsel Andrew A. Steinberg of the Civil Division's Fraud Section.
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Searcy Man Sentenced to 30 Years in Prison for Producing Child PornographyRead the Press Release
LITTLE ROCK—A Searcy man who sexually abused numerous young boys for years was sentenced yesterday afternoon for production of child pornography. United States District Court Judge Billy Roy Wilson sentenced John Ronald Ord, 51, to 30 years in federal prison. This 30-year sentence is the maximum allowed by law.
In 2019, Searcy Police Department began investigating Ord after a teenager reported he had been sexually abused by Ord for several years, beginning in 2012. Their investigation revealed that the defendant had been preying on teenage boys as far back as 1999 by exploiting their weaknesses, such as hunger, lack of a stable environment, or financial needs. Ord would then provide the boys with drugs and alcohol before sexually abusing them. At least 19 of Ord’s victims have been identified.
Law enforcement obtained a search warrant for Ord’s phone and saw a conversation on a dating app called Grindr. In the app, Ord had a conversation in December 2018 with a 14-year-old boy in which Ord asked the boy to send him a photograph of his penis. This conduct led to the production of child pornography charge in December 2019. Ord was detained at that time and pleaded guilty in December 2021.
Five of Ord’s victims were present at the sentencing hearing and testified about their abuse at the hands of Ord. In addition to the prison term, Ord was sentenced to a lifetime of supervised release following his imprisonment. The investigation was conducted by the Searcy Police Department, the FBI, and the United States Secret Service. The case was prosecuted by Assistant United States Attorneys Kristin Bryant and John Ray White.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Sean Robert Wathen of Hope, Idaho, Convicted for Conspiracy to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE – A federal jury convicted Sean Robert Wathen on Friday, May 13, 2022, for conspiracy to distribute methamphetamine.
According to court records and evidence presented at trial, Wathen worked with Larry Junior Hillbroom and others to acquire and smuggle methamphetamine through international airports between North Idaho and the Pacific Islands of Guam and Palau. Wathen acquired pounds of methamphetamine for Hillbroom over several months in 2015. Hillbroom and others would then use several different methods to smuggle the drugs, including shampoo containers and carrying the substance on their person, to Guam and Palau. Once in Guam or Palau, Hillbroom would coordinate with locally-based individuals to sell the methamphetamine. Law enforcement officers learned of the conspiracy, investigated, and ultimately arrested Hillbroom and his coconspirators.
Wathen is scheduled to be sentenced on August 9, 2022 and faces a maximum penalty of 20 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Wathen was originally charged with Morgan Kenney, 36, Zachary Craig Carlson, 31, and Larry Junior Hillbroom, 37, all of Hope, Idaho. Kenney, Carlson, and Hillbroom previously pleaded guilty and were sentenced to imprisonment. Morgan Kenny was sentenced to 52 months, Zachary Craig Carlson was sentenced to 37 months imprisonment, and Larry Junior Hillbroom was sentenced to 96 months imprisonment.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Drug Enforcement Administration, Bonner County Sheriff's Office, Bureau of Indian Affairs, Coeur d’Alene Police Department, Idaho State Police, U.S. Border Patrol, and the U.S. Marshals Service, which led to charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Savannah man sentenced to federal prison for possession of child pornographyRead the Press Release
SAVANNAH, GA: A Chatham County man was sentenced to 10 years in prison after a jury found him guilty of possession of hundreds of images of child sexual exploitation.
Michael Todd Morris, 27, of Savannah, was sentenced to 120 months in prison after a U.S. District Court jury previously found him guilty of Possession of Child Pornography, said David H. Estes, U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge R. Stan Baker also ordered Morris to pay $19,000 in restitution, to register as a sex offender, and to serve 15 years of supervised release after completion of his prison term. There is no parole in the federal system.
“Images that sexually exploit children are visual reminders of the victimization of the vulnerable,” said U.S. Attorney Estes. “This sentence should serve as a warning to anyone who would possess such vile imagery that we and our law enforcement partners will find them and hold them accountable.”
A jury convicted Morris of Possession of Child Pornography in October 2021 after a three-day trial, where evidence and testimony proved that he possessed hundreds of images of child sexual exploitation and child erotica. Homeland Security Investigations, alerted via a cyber tip from the National Center for Missing and Exploited Children, discovered the images on electronic devices in Morris’ possession.
“Every time these disturbing images are viewed it re-victimizes an innocent person and prevents them from healing from this trauma; this is why stopping the collection and distribution of these images is so important,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “This defendant will now face the consequences for his actions thanks to the great work done by HSI and its law enforcement partners.”
The case was investigated under the Department of Justice Project Safe Childhood initiative by Homeland Security Investigations, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
Ridley Township Tax Collector Sentenced to One Year for Tax EvasionRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Rosezanna Czwalina, 70, of, of Morton, PA, was sentenced to one year in prison, one year supervised release, and was ordered to pay $112,846 restitution by United States District Court Judge Paul S. Diamond for committing tax fraud.
In June 2021, the defendant pleaded guilty to five counts of filing materially false tax returns in connection with her efforts to avoid paying her duly owed tax obligations. Czwalina, who had been the elected tax collector and treasurer for Ridley Township, Delaware County, PA from 2009 until her resignation in 2021, was authorized to retain, as a supplement to her income, fees paid for tax certifications and generation of duplicate tax bills. However, the defendant failed to report those retained fees as income on her federal income tax returns for the years 2014 through 2018.
“The American tax system provides government services critical to our people,” said U.S. Attorney Williams. “Every time someone cheats the tax system, the burden of providing vital services increases on taxpayers who pay their fair share. As an elected official responsible for collecting taxes and managing public money, this defendant knew what her obligations were and willfully chose to ignore them.”
“As the township’s own tax collector, Czwalina well knew the importance of tax revenue to the proper functioning of government,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “And yet, for years, she knowingly shorted the federal system and its taxpayers by failing to report her true income. Elected officials must be held to the highest of ethical standards and when their actions cross into criminality, the FBI and our partners won’t hesitate to investigate and hold them properly accountable.”
“Honest taxpayers are fed up with the likes of Czwalina, who knowingly disregarded her legal duty to pay her fair share of taxes year after year,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “It is our hope that the sentence she received would deter would-be tax cheats.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service and was prosecuted by Assistant United States Attorney K.T. Newton.
Rexburg Man Sentenced to 12 Years in Federal Prison for Distributing Child PornographyRead the Press Release
POCATELLO – A Rexburg man was sentenced to 144 months in federal prison for distribution of child pornography.
According to court records, in May 2020, the residence of Daniel Gary Archibald, 45, was searched by detectives with the Idaho Internet Crimes Against Children task force. The search was conducted at Archibald’s Rexburg residence after receiving information that he was chatting with a 14-year-old girl online. During the search, law enforcement found a laptop and cellphone hidden under Archibald’s mattress.
Archibald had an active Twitter account that was discovered during the search of his devices. Archibald distributed child pornography videos through this Twitter account sharing links to videos of child pornography. In total, Archibald distributed over 3,300 videos of child pornography.
Senior U.S. District Judge B. Lynn Winmill also ordered Archibald to serve ten years of supervised release following his prison sentence. Archibald pleaded guilty to the charges on February 15, 2022.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho Internet Crimes Against Children task force, Homeland Security Investigations (HSI), and the Idaho Falls Police Department, which led to charges.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Reseda Man Sentenced to Nearly 10 Years in Prison for Burglarizing Self-Storage Units Then Selling Stolen Firearms to Convicted FelonsRead the Press Release
LOS ANGELES – A San Fernando Valley man was sentenced today to 115 months in federal prison for burglarizing self-storage units in Southern California, stealing dozens of firearms, and selling some of the weapons to convicted felons.
Rick Eric Herst, 36, a.k.a. “Loyal,” of Reseda, was sentenced by United States District Judge Michael W. Fitzgerald.
Herst pleaded guilty in February 2021 to one count of conspiracy to traffic in firearms and one count of selling firearms to a convicted felon.
From December 2018 to September 2019, Herst conspired with Jeffrey James LaFraniere, 39, of Van Nuys, and Alan Elperin, 31, of Mission Hills. Together, these three men burglarized multiple self-storage units in Glendale, Valencia, Culver City, West Los Angeles, Northridge, Culver City, Thousand Oaks, Rancho Mirage and elsewhere, stealing firearms and other valuables. They offered the stolen firearms for sale to customers either in person or via text message. LaFraniere and Herst sold the firearms to buyers they knew were convicted felons.
For example, on May 30, 2019, the trio burglarized a self-storage facility in Valencia and stole 35 firearms, including multiple .45-caliber pistols, 12-gauge shotguns and high-powered rifles. On the same day as the Valencia burglary, LaFraniere and Herst sold two of the stolen firearms – a .45-caliber pistol and a .40-caliber pistol – to a buyer whom they knew was a convicted felon.
At the time of his arrest in March 2020, law enforcement executed a search warrant at Herst’s residence and found a loaded Glock 9mm pistol, which was one of multiple weapons stolen during a residential burglary that occurred in or around January 2020. Herst also possessed 14 shotgun shells, 95 rounds of .38-caliber ammunition, more than 30 stolen debit and credit cards, multiple stolen or fake California driver’s licenses, and a large quantity of stolen merchandise belonging to various burglary victims.
“Although many guns have not been recovered, those that have were largely found in the hands of felons or recovered at crime scenes,” prosecutors wrote in a sentencing memorandum.
Elperin pleaded guilty in November 2020 to one count of conspiracy and one count of receiving stolen firearms. He is serving a 100-month federal prison sentence. LaFraniere pleaded guilty in September 2020 to one count of conspiracy, one count of receiving stolen firearms and one count of selling firearms to a felon. His sentencing hearing is scheduled for May 26, at which time he will face a statutory maximum sentence of 25 years in federal prison.
The FBI Eurasian Organized Crime Task Force and the Los Angeles County Sheriff’s Department investigated this matter.
Assistant United States Attorney Ian V. Yanniello of the International Narcotics, Money Laundering, and Racketeering Section prosecuted this case.
Recidivist Drug Trafficker Sentenced to More Than 11 Years in Federal PrisonRead the Press Release
Moses Lake and Yakima, Washington – On May 11, 2022, Chief United States District Judge Stanley A. Bastian sentenced Reymundo Garcia, 59, of Ephrata, Washington, to 135 months of imprisonment, to be followed by a five-year term of court supervision after he is released from federal prison. In 2021, Garcia pleaded guilty to engaging in a conspiracy to distribute 50 grams or more of pure methamphetamine. As part of his plea agreement, Garcia also agreed to forfeit any interest in his ranch, which he used to facilitate his drug trafficking conduct by providing a location for both drug dealing and active drug use.
According to information disclosed during court proceedings, Garcia was a member of a drug trafficking organization operating out of Moses Lake, Washington, and Grant County. During the course of an investigation by the FBI Safe Streets Task Force in the Tri-Cities, law enforcement officers seized multiple pounds of methamphetamine, several hundred fentanyl laced pills, heroin, and numerous stolen firearms and ammunition. Garcia engaged in this serious drug-dealing conduct after having been convicted in federal court on two prior occasions for drug trafficking and firearms possession. Chief Judge Bastian noted Garcia’s history of drug trafficking and that selling methamphetamine and heroin has been Garcia’s primary way of life. As a result, Chief Judge Bastian imposed what he described as “forced retirement” from this criminal conduct to protect the community from Garcia’s drug dealing and facilitation of drug use.
“Strong partnerships and collaboration between federal, state, and local law enforcement in central and southeastern Washington are protecting our community and ensuring that repeat drug offenders stop distributing poison in our neighborhoods,” said Vanessa R. Waldref, the United States Attorney for the Eastern District of Washington. “Today’s sentence takes a serious, recidivist drug trafficker off the streets and sends a clear message to others who might choose to engage in similar activity: we are committed to ensuring a safe and strong Eastern Washington community, and this kind of conduct will be ferreted out, investigated, and prosecuted to the fullest extent of the law.”
“By using his residence to facilitate drug trafficking and his prior offenses, Mr. Garcia has shown that his criminal activity is part of a long-term lifestyle,” said Donald M. Voiret, Special Agent in Charge of the FBI Seattle Field Office. “The FBI commends the work of our investigating and prosecuting partners to protect our neighborhoods for law-abiding citizens and remove these dangerous drugs from our communities.”
This case was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the FBI Safe Streets Task Force in Tri-Cities, Washington, in cooperation with the police departments of Moses Lake, Kennewick, Richland, and Pasco, and the Benton County Sheriff’s Office, along with the Washington Department of Corrections. This case was prosecuted by Stephanie Van Marter and Brian M. Donovan, Assistant United States Attorneys for the Eastern District of Washington.
Quincy Man Sentenced to Five Years in Federal Prison for Distributing MethamphetamineRead the Press Release
SPRINGFIELD, Ill. – A Quincy, Illinois, man, Warren Mason, 29, formerly of the 1400 block of North 3rd Street, was sentenced on May 17, 2022, to 60 months’ imprisonment, to be followed by 48 months of supervised release, for distributing over five grams of 99% pure methamphetamine on two occasions in Quincy, Illinois.
At the sentencing hearing, United States District Judge Sue Myerscough heard evidence presented by the government that on January 29, 2019, Mason distributed 6.5 grams of highly pure methamphetamine and on February 4, 2019, he distributed 8.1 grams. It was also determined that while initially on bond on the federal charges, Mason committed felony domestic battery for which he was convicted in Adams County, Illinois, Circuit Court and for which his federal bond was revoked.
The statutory penalties for conspiracy to distribute five but less than 50 grams of methamphetamine is a minimum of five years and up to 40 years’ imprisonment, up to a $5,000,000 fine, and up to four years of supervised release.
The West Central Illinois Task Force, Illinois State Police, Quincy Police Department, and Adams County States Attorney’s Office were involved in the investigation and prosecution of this case. Assistant U.S. Attorney Tanner Jacobs represented the government in the prosecution.
The case against Mason was brought as part of The Department of Justice’s Project Safe Neighborhoods initiative. The Department’s renewed commitment to Project Safe Neighborhoods establishes four fundamental principles to guide efforts to reduce violent crime: 1) build trust and legitimacy within communities; 2) invest in community-based prevention and intervention programs; 3) target enforcement and priorities to focus resources on identifying, investigating, and prosecuting the most significant drivers of gun violence and other violent crime; and, 4) measure results with the goal to reduce the level of violence in our communities and not to increase the number of arrests and prosecutions as if they were ends in themselves.
Prison Guard Pleads Guilty to Sexually Abusing InmatesRead the Press Release
A former federal correctional officer pleaded guilty today to sexually abusing multiple inmates in Fort Worth, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Luis Curiel, 47, pleaded guilty on Wednesday to two counts of sexual abuse of a ward.
“Curiel abused his authority as a correctional officer and sexually abused several inmates under his supervision. Sexual abuse of inmates is never tolerated, and the Department of Justice Office of the Inspector General will continue to investigate and hold accountable those who engage in this kind of conduct,” said Cloey C. Pierce, Special Agent in Charge of the Department of Justice Office of the Inspector General Dallas Field Office.
According to plea papers, Mr. Curiel, a former Federal Bureau of Prisons correctional officer at the Carswell Federal Medical Center, admitted to sexually abusing at least three inmates, identified in court documents as B.B.M., M.C., and N.R.
In October 2021, Mr. Curiel admitted, he met one inmate by a staff elevator and engaged in sexual acts with her in a nearby stairwell. That same month, he engaged in sexual acts with two more inmates outside the same staff elevator. At the time, all three victims were in official detention and under his custodial, supervisory, or disciplinary authority.
FMC Carswell is an administrative security federal prison that serves female inmates with specialized medical and mental health needs.
Mr. Curiel now faces up to 30 years in federal prison (15 years per count). His sentencing has been set for Sept. 8.
The Department of Justice Office of Inspector General conducted the investigation with the full cooperation of the Federal Bureau of Prisons. Assistant U.S. Attorney Aisha Saleem is prosecuting the case.
Port Arthur Felon Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Port Arthur man has been sentenced to 10 years in federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Jesus Antonio Ceja, 30, pleaded guilty on August 2, 2021, to being a felon in possession of a firearm and was sentenced to 120 months in federal prison by U.S. District Judge Marcia A. Crone on May 17, 2022.
According to court documents, on Feb. 9, 2020, law enforcement officers observed a vehicle stopped at an intersection in 5200 block of 15th Street in Port Arthur. As the officer approached the vehicle, he saw the driver, later identified as Ceja, with his head down. The officer drove towards the vehicle to see if the driver was in need of assistance, at which time Ceja looked at the officer and accelerated away at a high rate of speed. As the officer turned around to follow the vehicle, he saw that Ceja had crashed his vehicle into a pole at the nearby intersection of Lewis and Lakeview streets. Ceja repeatedly reached under the seat and ignored commands to show his hands and exit the vehicle. After the officer opened the passenger door, Ceja exited the vehicle and crawled on top of it, refusing to come down. Once other officers arrived, Ceja came down off the car and told officers there was methamphetamine and a firearm in the car. Further investigation revealed Ceja was a convicted felon having previously been found guilty of felony escape in Jefferson County in 2008. As a convicted felon, Ceja is prohibited from owning or possessing firearms or ammunition. Ceja was indicted by a federal grand jury on April 27, 2021.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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Pittsburgh Felon Admits Illegally Possessing a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA -- A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal firearm laws, United States Attorney Cindy K. Chung announced today.
Douglas Wright, age 41 pleaded guilty to one count before United States District Judge Marilyn J. Horan.
In connection with the guilty plea, the court was advised that Wright, a convicted felon, possessed firearms and ammunition. The defendant directed a “crack” addict to purchase two firearms for him. He also admitted to acquiring a third from that same individual. The ATF recovered two of the three firearms. The defendant admitted to throwing the third firearm out of a vehicle because he believed that law enforcement intended to conduct a traffic stop on him while the firearm was in his possession. Possession of a firearm and ammunition as a convicted felon is prohibited under federal law.
Judge Horan scheduled sentencing for September 7, 2022, at 9:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the defendant on bond.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation that led to the prosecution of Wright.
Pair Sentenced for Their Roles in Dispersing Proceeds of Internet and Email Fraud SchemesRead the Press Release
PROVIDENCE – Two men who played various roles in an underground financial network in support of international internet and email fraud schemes have been sentenced to federal prison, announced United States Attorney Zachary A. Cunha.
Babawale Jenyo, 33, of Warwick, previously convicted at trial of operating an illegal money transmitting business, was sentenced on Tuesday by U.S. District Court Chief Judge John J. McConnell, Jr., to a year and a day in federal prison; Abiodun Shobaloju, 29, of Baltimore, MD, who previously pled guilty to wire fraud, was sentenced by Chief Judge McConnell on April 26, 2022, to 24 months of incarceration and ordered to pay restitution to fraud victims totaling $136,431.
According to court documents, Shobaloju was part of a conspiracy that carried out email and romance scams that succeeded in fraudulently obtaining large sums from multiple victims. As part of his role in the conspiracy, Shobaloju provided members of the conspiracy with critical bank information, and also created a shell company and bank account to be used expressly to receive and disperse proceeds from the fraud scheme. Once the ill-gotten funds were deposited in accounts controlled by Shobaloju, he would often withdraw cash for his own use and then transfer the remaining funds to other bank accounts.
In the matter of the United States v. Babawale Jenyo, the government presented evidence and testimony at trial that funds fraudulently obtained from unsuspecting victims of email and romance scams were passed through bank accounts that Jenyo controlled. Jenyo’s criminal conduct was first discovered by Rhode Island State Police in 2017, resulting in his arrest May 2017 on charges that he participated in an email scam that defrauded a West Des Moines, IA, couple. In May of 2019, Jenyo was arrested again, this time by the United States Secret Service, which determined that, even after his encounter with Rhode Island State Police, Jenyo continued to engage in illicit money transferring activities up until the date of his second arrest.
The cases were prosecuted by Assistant United States Attorneys Sandra R. Hebert and Richard B. Myrus.
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Owner of Consumer Products Testing Company Sentenced to 60 Months in Prison for Fraud Scheme Involving Fabricated Test ResultsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Catherine Hermsen, Assistant Commissioner, United States Food and Drug Administration Office of Criminal Investigations (“FDA-OIC”), Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and Thomas Walsh, Rockland County District Attorney, announced that GABRIEL LETIZIA, Jr., was sentenced in White Plains federal court to 60 months in prison for defrauding customers of his consumer products testing company and causing misbranded drugs to be introduced into interstate commerce. United States District Judge Kenneth M. Karas imposed today’s sentence. LETIZIA previously pled guilty before United States Magistrate Judge Paul E. Davison.
U.S. Attorney Damian Williams said: “For three decades, Gabriel Letizia defrauded AMA’s customers and jeopardized the safety of millions of consumers, all in the name of greed. Thanks to our partners at FDA-OIC, the FBI, and the Rockland County District Attorney’s Office, he has now been sentenced to prison.”
According to the allegations in the Indictment, the Superseding Information to which LETIZIA pled guilty, court filings, and statements made in court:
LETIZIA was the owner and executive director of AMA Laboratories, Inc. (“AMA”), a consumer product testing company in Rockland County, New York. LETIZIA began operating AMA in the early 1980s, and became its sole owner in approximately 2003.
AMA purported to test the safety and efficacy of cosmetics, sunscreens, and other products on specified numbers of volunteer panelists for consumer products companies. Clients of AMA used the test results to support their claims that their products were safe, effective, hypoallergenic, or provided a certain Sun Protection Factor (“SPF”), including after exposure to water. AMA clients that manufactured sunscreens used the test results to comply with FDA regulations requiring sunscreen manufacturers to have their products tested and to maintain the test results for possible review by the FDA.
From 1987 through April 2017, LETIZIA and AMA personnel operating at his direction defrauded AMA’s customers of more than $46 million by testing products on materially lower numbers of panelists than the numbers specified and paid for by AMA’s customers. According to AMA employees, the majority of AMA’s tests contained fraudulent results, for two reasons. First, at LETIZIA’s instruction, AMA personnel rarely tested products on the number of panelists requested by AMA’s clients. Instead, AMA tested products on a far lower number of panelists, typically 20 or less, rather than the 50 for which the clients had paid. AMA’s fees for tests were based, in part, on the number of panelists that were to participate in the study. At LETIZIA’s direction, AMA sent its clients fraudulent test results in which AMA personnel included fictitious data for “phantom” panelists who had not actually participated in the tests.
Second, at LETIZIA’s direction, AMA personnel routinely falsified test results relating to its clients’ products, which included suppressing adverse reactions and deviating from testing protocols. From 2012 through April 2017, AMA received $46.2 million in revenue from the fraudulent reports.
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In addition to his prison term, LETIZIA, 72, of New City, New York, was sentenced to three years of supervised release, restitution in the amount of $1,440,238, and forfeiture in the amount of $46,200,000.
Mr. Williams praised the outstanding investigative work of the U.S. Food and Drug Administration, Office of Criminal Investigations, the Federal Bureau of Investigation, and the Rockland County District Attorney’s Office.
The case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys Jeffrey C. Coffman, James McMahon, and Olga I. Zverovich are in charge of the prosecution.
Orlando Man Indicted for CarjackingRead the Press Release
Tampa, FL – United States Attorney Roger B. Handberg announces the return of an indictment charging Rodney Devon Jones (26, Orlando) with carjacking and brandishing a firearm during and in relation to a crime of violence. If convicted on all counts, Jones faces a minimum mandatory term of seven years, and up to life, in federal prison. The indictment also notifies Jones that the United States intends to forfeit firearms and ammunition involved in the offenses.
According to the indictment, on or about September 28, 2021, Jones knowingly took a 2018 Alfa Romeo Stelvio from another person by force, violence, and intimidation, with the intent to cause death and serious bodily harm.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation and the Seminole Police Department, with assistance from the Orlando Police Department and the Orange County Sheriff’s Office as part of the Middle District of Florida’s Safe Trails Task Force. The Safe Trails Task Force is a partnership between the United States Attorney’s Office, the FBI, the Seminole Police Department, and other federal, state, local, and tribal law enforcement agencies that are working together to combat the growth of crime in Indian Country. This case will be prosecuted by Assistant United States Attorney Christopher F. Murray.
This case is also 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.
Northwoods man sentenced to 45 years in prison for fatal 2019 St. Louis carjackingRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark on Wednesday sentenced Anthony D. Jones Jr. to 45 years in prison for fatally shooting a St. Louis woman in 2019 before stealing her car.
In Jones’ plea agreement, he admitted shooting Jessica Vinson in the head and the back on May 4, 2019 in an alley in the 5300 block of Vernon Avenue. After dragging Vinson out of her car, he fired another shot at her head, stole her 2015 Dodge Charger and drove over Vinson’s arm.
Jones had befriended Vinson after meeting her earlier that morning outside of a club in St. Louis. Jones gave Vinson’s keys to associates, who used those keys to burglarize her home in the 5300 block of Maffitt Avenue, stealing shoes and two televisions.
Two days later, St. Louis Metropolitan Police Department (SLMPD) officers spotted Vinson’s car and attempted to conduct a traffic stop. Jones fled from police at a high rate of speed and crashed near an Interstate 70 exit ramp at Grand Avenue. Jones fled from the vehicle, leaving a gun behind, but was found hiding in a garage and arrested.
While in jail, Jones threatened to kill two witnesses to his crime.
In court Wednesday, Judge Clark called Jones an “exceptionally ruthless person” and “a danger to society.” Judge Clark ordered Jones’ sentence to run consecutive to any prison time he receives if convicted of charges related to an April 15, 2019 shooting as well as for violating his parole in a 2013 gun case.
A Vinson relative told Judge Clark that the 32-year-old was a “kind soul” who was a nursing student and had a promising future.
Jones, 29, of Northwoods, pleaded guilty in December to felony charges of carjacking resulting in death, discharge of a firearm in furtherance of a crime of violence resulting in death and two counts of witness tampering.
Two others involved in the carjacking were sentenced to prison in January. Robyn Harrison, who helped clean Vinson’s car, was sentenced to two and one-half years in prison. Tyeishia Adail, who replaced Vinson's license plates with temporary tags, was sentenced to four years in prison.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jen Szczucinski is prosecuting the case.
North Redington Shores Man Indicted in Multiple Fraud SchemesRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces the unsealing of an indictment charging Alexander Leszczynski (22, North Redington Beach) with wire fraud, bank fraud, and money laundering. If convicted on all counts, Leszczynski faces a maximum penalty of 30 years in federal prison. The indictment also notifies Leszczynski that the United States intends to forfeit $337,000, which represents the proceeds of the offenses, and property involved in the offenses. Leszczynski made his initial appearance on May 17, 2022, and was ordered detained pending his trial.
According to the court documents and the facts presented during the bond hearing, Leszczynski used fictitious charitable entities, such as Love & Bliss, Inc., to engage in numerous frauds. The schemes included fraudulently applying for and receiving two Payroll Protection Plan (“PPP”) loans totaling approximately $195,910 and engaging in a check kiting scheme and attempting to deposit $2.7 million of worthless checks into the Love & Bliss, Inc. business account. Leszczynski laundered the proceeds of the PPP and check kiting schemes through multiple accounts in an effort to conceal those proceeds from the United States and forestall its recovery. The United States ultimately seized $337,000 from an account Leszczynski controlled and, when he discovered that the money had been frozen, he attempted to have it released by producing a fabricated pardon purportedly signed by former President Donald Trump.
In a separate fraud scheme, Leszczynski filed fraudulent warranty deeds purporting to deed to himself and his businesses 10 properties around the United States collectively valued at more than $300 million. When property owners and attorneys attempted to correct the fraudulent deeds, Leszczynski responded by sending harassing and threatening letters, emails, and faxes.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time-period and uses at least a certain percentage of the loan toward payroll expenses.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigation, the Largo Police Department, the Indian Shores Police Department, and the Palm Beach Police Department. It will be prosecuted by Assistant United States Attorney Rachel Jones and asset forfeiture will be handled by Assistant United States Attorney Jimmy Muench.
New York Man Admits Transporting Child Pornography into New JerseyRead the Press Release
TRENTON, N.J. – A New York man today admitted transporting multiple items depicting child sexual abuse into New Jersey, U.S. Attorney Philip R. Sellinger announced.
Jesus Modesto Sanchez, 31, of New York, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of transporting of child pornography.
According to documents filed in this case and statements made in court:
In October 2020, Modesto Sanchez began communicating on a web-based application with an undercover officer, who he believed was a minor. On Oct. 17, 2020, Modesto Sanchez was arrested after traveling from New York to New Jersey to meet the minor. Law enforcement subsequently discovered a significant collection of child pornography on Modesto Sanchez’s cellular telephone, including approximately 72 videos and one image depicting the sexual abuse of minors.
The charge of transportation of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and fine of $250,000. Sentencing is scheduled for Sept. 20, 2022.U.S. Attorney Sellinger credited Special agents with the FBI, under the direction of Acting Special Agent in Charge Michael Messenger; and members of the Somerset County Prosecutor’s Office, under the direction of Acting Prosecutor Annmarie Taggart, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
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Defense counsel: Keith G. Oliver Esq., Middletown, New Jersey
Monongalia County woman sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Sabrina Burton, of Morgantown, West Virginia, was sentenced today to three years of probation for a drug charge, United States Attorney William Ihlenfeld announced.
Burton, 25, pleaded guilty in December 201 to one count of “Possession with Intent to Distribute Heroin.” Burton admitted to having heroin in May 2020 in Monongalia County.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner prosecuted the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Chief U.S. District Judge Thomas S. Kleeh presided.
Find more about the case here: https://www.justice.gov/usao-ndwv/pr/25-people-indicted-drug-trafficking-operation-spanned-several-states
Milwaukee Man Sentenced to over 12 Years in Federal Prison for Narcotics Trafficking and Firearms OffenseRead the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 13, 2022, U.S. District Judge J.P. Stadtmueller sentenced Jeffrey R. Jones (age: 37) of Milwaukee, Wisconsin, to over 12 years in federal prison for drug and firearm offenses.
The court sentenced Jones to 150 months’ imprisonment and four years’ supervised release after Jones pled guilty to the distribution of heroin, fentanyl, and methamphetamine, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and (b)(1)(B); and possession of 8 firearms after having been convicted of a felony offense, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
According to court records, Jones was responsible for the distribution or attempted distribution of approximately 1.69 kilograms of fentanyl, at least 60 grams of heroin, at least 14 grams of methamphetamine, and at least 485 grams of marijuana. Upon the execution of search warrants at Jones’ residence and at his “stash” house, law enforcement located controlled substances, five pistols, two rifles, a revolver, and a large amount of U.S. currency.
“The U.S. Attorney’s Office remains committed to working with our federal, state, and local partners to investigate and prosecute individuals who unlawfully possess firearms and who introduce deadly substances like fentanyl, heroin, methamphetamine into our communities,” said U.S. Attorney Frohling. “I commend the hard work and dedication of all of the departments and agencies who worked together to protect the community and pursue justice in this case.”
“This case exemplifies outstanding law enforcement partnerships in action,” said SAC Michael E. Hensle of the FBI Milwaukee Field Office. “I commend the work of the Milwaukee Area Safe Streets Task Force in removing guns, drugs and a drug trafficker from our community.”
This case was investigated by the Federal Bureau of Investigation’s Milwaukee Area Safe Streets Task Force and the Milwaukee Police Department. Assistant United States Attorney Elizabeth Monfils prosecuted the case.
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Member of Philadelphia ‘Hilltop’ Drug Gang Sentenced to over 15 Years in PrisonRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Paul Robinson, 32, of Philadelphia, PA, was sentenced to 15 years and eight months in prison, and six years of supervised release by United States District Judge Gene E.K. Pratter for distributing narcotics as part of the Hilltop Drug Trafficking Group (DTG), an organization responsible for putting large amounts heroin and other narcotics including crack cocaine, oxycodone and fentanyl on the streets of West, Southwest, and Northwest Philadelphia, and Upper Darby between 2013 and 2018.
In December 2021, the defendant pleaded guilty to multiple felony narcotics charges including distribution of controlled substances and distribution of controlled substances near a school, stemming from his role in the Hilltop organization. The DTG operated seven days a week from approximately 9:00 am until midnight as a phone order/delivery service, through which customers called a cell phone number belonging to the leaders of the organization, including Robinson, to place orders for illegal narcotics. The customers were then redirected to “runners,” who would meet the customers on the street, often entering the customers’ vehicles, to deliver the narcotics in exchange for payment. Hilltop was a violent group that often defended its territory and narcotics with firearms, and through distribution of narcotics is responsible for multiple overdose deaths.
“This case is an excellent example of all levels of law enforcement collaborating to dismantle a dangerous drug trafficking operation putting deadly narcotics on streets all across Philadelphia and beyond,” said U.S. Attorney Williams. “This defendant directly threatened the safety of children by conducting the business of drug dealing adjacent to schools and playgrounds, actions for which he will now spend the better part of two decades behind bars.”
The case was investigated by Drug Enforcement Administration and the Philadelphia Police department, and is being prosecuted by Assistant United States Attorney Kelly Harrell and Everett Witherell.
Martinsburg woman admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jordan Teal Burg, of Martinsburg, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Burg, 33, pleaded guilty today to one count of “Aiding and Abetting False Statement During Purchase of a Firearm.” Burg admitted to working with others to illegally purchase three pistols from a licensed firearms dealer in April 2021 in Jefferson County.
Burg 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.
Special Assistant U.S. Attorney Carrie L. Lehman, also with the Berkeley County Prosecuting Attorney’s Office, is prosecuting the case on behalf of the government. The ATF and the Easter Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Martinsburg residents indicted on cocaine and fentanyl chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Two Martinsburg residents are facing cocaine and fentanyl charges, accused of having enough fentanyl to kill 20,000 people, United States Attorney William Ihlenfeld announced.
Desmond Lamont Davis, 31, and Karmen Grimes, 21, were indicted this week on one count of “Conspiracy to Possess with Intent to Distribute 28 Grams or More of Cocaine Base,” one count of “Conspiracy to Possess with Intent to Distribute 40 Grams or More of Fentanyl,” and one count of “Conspiracy to Possess with Intent to Distribute Cocaine Hydrochloride.” Davis and Grimes are accused of working together to sell cocaine and fentanyl in Berkeley and Jefferson Counties from 2019 to 2021.
Davis and Grimes each at least five years and up to 40 years of incarceration and a fine of up to $5,000,000 for each of the first two counts and each face up to 20 years of incarceration and a fine of up to $1,000,000 for the third count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; ATF; and the U.S. Marshals Service investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Manchester Physician Barred from Prescribing Certain Controlled SubstancesRead the Press Release
NASHVILLE – In a settlement reached last week, David Florence, D.O., a Manchester, Tennessee physician, agreed to be barred from prescribing Schedule II and the vast majority of Schedule III controlled substances, announced United States Attorney Mark H. Wildasin for the Middle District of Tennessee.
Pursuant to the Consent Judgment and Permanent Injunction, Florence is permanently enjoined from issuing prescriptions for any controlled substances under Schedules II and III of the Controlled Substances Act, with limited exceptions for buprenorphine products as allowed by Tennessee law, testosterone, and two migraine medications. Florence also agreed not to order or store any controlled substances, and not to prescribe to himself, any immediate family members, fellow employees, or significant others.
Under the terms of the agreement, DEA has the right to enter Florence’s registered location at any time during business hours without notice for the purpose of determining compliance. In addition, Florence must comply with all laws concerning the supervision of mid-level providers. If Florence fails to comply with the terms of the settlement agreement, he is subject to civil penalties, criminal charges, and/or the revocation of his DEA Registration.
This agreement resolves all remaining claims the United States asserted against Florence, stemming from a lawsuit originally filed by the former office manager of a Cookeville, Tenn. pain clinic where Florence practiced, which was brought under the qui tam, or whistleblower, provisions of the False Claims Act. The Whistleblower provisions allow private citizens with knowledge of false claims to bring civil suits on behalf of the government.
“We rely on whistleblowers to help identify unlawful conduct, and we greatly appreciate the assistance that the relator in this case provided throughout the investigation and court proceedings that allowed us to stop Dr. Florence from ever again prescribing the dangerous controlled substances at issue here,” said U.S. Attorney Wildasin. “This extraordinary injunctive relief is one of the many ways in which the United States can protect the public from providers who recklessly prescribe, or fail to properly supervise others in prescribing, dangerous controlled substances.”
In March 2016, the United States filed a civil complaint in intervention, alleging violations of the Controlled Substances Act and the False Claims Act, against Florence and other defendants. As to Florence, the United States alleged that he prescribed controlled substances that had no legitimate medical purpose and failed to properly supervise mid-level practitioners. The United States previously obtained settlements that resulted in the dismissal of its claims against all other defendants named in its complaint in intervention.
This matter was investigated by the Department of Health & Human Services – Office of Inspector General, the Drug Enforcement Administration, and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Wynn Shuford represented the United States.
The case is captioned as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.). The claims in the complaint are allegations only, and there has been no determination of liability.
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Manchester Man Sentenced to 70 Months for Five Robberies in Manchester and GoffstownRead the Press Release
CONCORD - Jonathan McKnight, 39, of Manchester, was sentenced to 70 months in federal prison for interference with commerce by threats and violence by committing five robberies, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, on March 25, 2020, McKnight robbed a convenience store in Manchester by passing a note to the clerk indicating he had a gun and wanted money. On March 28, 2020, McKnight robbed another convenience store in Manchester by again passing a note to the clerk ordering the clerk to give him the money. On this occasion, he gestured toward his back waistband while lifting up his sweatshirt. An officer who reviewed the store video footage recognized McKnight as the person in the video. On March 30, 2020, Manchester police officers conducted a post-arrest interview with McKnight. He admitted to committing both robberies and passing the same note at each robbery. While acknowledging he had claimed to have a gun during the robberies, he stated he did not possess a gun during the robberies.
On July 7, 2020, Manchester police officers responded to another robbery. The cashier gave the officers a description of the robber and told them that the robber had placed a note on the counter. The cashier gave the robber approximately $100-$150 from the drawer, mostly $1.00 bills. After reviewing the store video footage, officers located McKnight wearing the same clothing worn by the robber. He had approximately $60, including approximately 25 $1.00 bills.
On March 7, 2021, and March 10, 2021, McKnight committed additional robberies at two separate locations in Goffstown. Investigators received a tip that McKnight committed both robberies and McKnight later admitted that he committed both robberies.
McKnight previously pleaded guilty on November 29, 2021.
“Robberies and other violent crimes not only endanger lives but also spread fear throughout the community,” said U.S. Attorney Young. “Thanks to excellent police work in this case, Mr. McKnight has been held responsible for his criminal conduct. This successful prosecution is an example of how local and federal law enforcement partners work collaboratively and diligently to protect public safety and keep our citizens safe from violent crime.”
“Jonathan McKnight has repeatedly demonstrated why he is a serious threat to the community, confessing to a string of robberies during which he threatened to use a firearm,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence should be a reminder to everyone of the serious consequences that come with putting people in danger. New Hampshire is much safer with him behind bars.”
These matters were investigated by the Manchester Police Department and Goffstown Police Department with assistance from the Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Debra Walsh.
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Madisonville Man Faces Federal Methamphetamine ChargesRead the Press Release
Paducah, KY – A federal grand jury returned an indictment last week charging a Madisonville, KY man with distributing methamphetamine and possessing with the intent to distribute methamphetamine.
According to court records, Travarius Baxter, 34, distributed methamphetamine on February 17, 2022, and possessed methamphetamine with the intent to distribute it on March 9, 2022.
On May 16, 2022, the defendant was arraigned before a U.S. Magistrate Judge in the U.S. District Court for the Western District of Kentucky. If convicted at trial, he faces a mandatory minimum sentence of at least 10 years, and up to life, in federal prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Michael A. Bennett of the Western District of Kentucky made the announcement.
The Drug Enforcement Administration and the Madisonville-Hopkins County VICE/Narcotics Unit are investigating the case.
The case is being prosecuted by Assistant U. S. Attorney Leigh Ann Dycus.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Lowell Postal Carrier Arrested on Bribery and Cocaine ChargesRead the Press Release
BOSTON – A Lowell postal worker has been arrested for allegedly attempting to bribe and sell cocaine to a postal supervisor.
John Noviello, of Nashua, N.H., 61, was charged with one count of bribery of a public official and one count of distribution of cocaine. Noviello was released on conditions following an initial appearance in federal court in Boston on May 12, 2022.
According to the charging documents, Noviello was a mail carrier for the U.S. Postal Service in Lowell. It is alleged that, on Feb. 15, 2022, Noviello approached a U.S. Postal supervisor seeking their assistance in a scheme to divert postal packages suspected of containing cocaine. Noviello allegedly offered to pay the supervisor $1,750 per kilogram of cocaine successfully obtained from any diverted packages. On Feb. 17, 2022, Noviello allegedly left $850 in cash, concealed in a Dunkin’ bag, inside the supervisor’s vehicle in an attempt to encourage the supervisor to agree to the scheme. It is alleged that Noviello, referring to the $850, later commented to the supervisor, “that was a nice envelope for starters.” After contacting authorities, the supervisor conducted a controlled purchase from Noviello during which the defendant allegedly distributed approximately four grams of cocaine for $200.
The charge of bribery of a public official provides for a sentence of up to 15 years in prison, up to three years of supervised release and a fine of $250,000. The charge of distribution of cocaine provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Matthew Modafferi, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Office; and Ketty Larco Ward, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney John T. Mulcahy of Rollins’ Criminal Division is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Local woman charged with preparing false income tax returnsRead the Press Release
HOUSTON – A tax preparer has been arrested on charges she was responsible for more than a dozen fraudulent tax returns, announced U.S. Attorney Jennifer B. Lowery.
Authorities took Cheryl Kissentaner into custody today. She is expected to make her initial appearance before U.S. Magistrate Judge Christina A. Bryan at 2 p.m.
A federal grand jury returned the 15-count indictment March 30.
The indictment alleges that from 2015 to 2018, Kissentaner fraudulently prepared 15 false income tax returns for clients.
If convicted, Kissentaner faces up to three years of prison and up to a $250,000 fine for each count.
IRS-Criminal Investtigation conducted the investigation. Assistant U.S. Attorney Justin R. Martin is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Kanawha County Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was sentenced today to three years and one month in prison, to be followed by three years of supervised release, for aiding and abetting the distribution of methamphetamine.
According to court documents and statements made in court, John Eric Dickson, 59, of St. Albans, admitted that he supplied co-defendant Rodney Alexander Minter, 62, of Logan, with an ounce of methamphetamine on January 5, 2021, to sell to another individual. Minter pleaded guilty to distribution of 5 grams or more of methamphetamine, and faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on June 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Courtney L. Cremeans prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-169.
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Justice Department Settles with IT Recruiter to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced that it has reached a settlement agreement with Amtex Systems Inc., an IT staffing and recruiting company based in New York. The settlement resolves claims that Amtex discriminated against U.S. workers based on their citizenship or immigration status during several stages of the recruitment process because their clients preferred workers with temporary employment visas.
“IT staffing agencies cannot unlawfully exclude applicants or impose additional burdens because of someone’s citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to enforcing the law to ensure that job applicants, including U.S. workers, are protected from unlawful discrimination.”
The department’s investigation began after a U.S. citizen filed a discrimination complaint with the Civil Rights Division’s Immigrant and Employee Rights Section (IER) against Amtex. Based on its investigation, the department concluded that Amtex used a company operating in India to identify and screen job applicants based on clients’ preferences for workers with particular citizenship or immigration statuses. The investigation determined that the recruiters sent job advertisements with their clients’ unlawful citizenship or immigration status preferences, and also implemented those preferences when considering applicants. The recruiters’ practices harmed U.S. workers by deterring them from applying, and not considering those who did apply. For example, the investigation revealed that Amtex did not consider at least three U.S. workers when they applied to a job posting that stated a preference for workers with temporary employment visas. The department further concluded that recruiters for Amtex discriminated against non-U.S. citizen applicants by routinely requiring them to provide an immigration document to move forward in the recruitment process.
The Immigration and Nationality Act (INA) protects U.S. citizens, non-U.S. citizen nationals, refugees, asylees, and recent lawful permanent residents from workplace discrimination based on citizenship or immigration status. Recruiters are liable for violations of the INA if they implement a client’s unlawful discriminatory preferences. Under the INA, employers or recruiters can only limit jobs based on citizenship or immigration status if required by a law, regulation, executive order or government contract. Further, because federal law only allows employers to check a person’s permission to work after they are hired, employers and recruiters must not verify the permission to work of job applicants.
Under the terms of the settlement agreement, Amtex will pay over $15,000 in civil penalties to the United States, revise its policies and procedures, train relevant employees and agents on the INA’s anti-discrimination provision, and be subject to monitoring for a three-year period to ensure compliance.
IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, this law prohibits discrimination based on citizenship or immigration status, and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. More information about citizenship status discrimination under the INA is available in this flyer.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
View the Spanish translation of this press release here. View the Hindi translation of this press release below.