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9 May 2022
Justice Department Secures Settlement with Consulting Agency to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with Cloud Peritus Inc., a California IT consulting services company. The settlement resolves the department’s claims that Cloud Peritus discriminated against a non-U.S. citizen by requesting that he present additional and unnecessary documents to prove his permission to work because of his citizenship status.
“Once employees have presented valid, acceptable documentation to prove their permission to work, employers cannot ask for more documentation because of the employees’ citizenship, immigration status, or national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring all workers have the right to prove their permission to work free from unlawful discrimination.”
The department’s investigation determined that Cloud Peritus discriminated against a non-U.S. citizen by asking him for additional documentation to prove his permission to work, even though he had already provided sufficient documentation, based on his citizenship status. The investigation also revealed that the company’s discriminatory document request was partly caused by its misunderstanding of the software it used to verify employees’ permission to work, which the company believed required these documents from non-U.S. citizens.
The anti-discrimination provision of the Immigration and Nationality Act (INA) prohibits employers from asking for more or different documents than necessary to prove their permission to work in the United States because of a worker’s citizenship, immigration status or national origin. Employers should allow workers to present whatever valid documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.
Under the settlement, Cloud Peritus will pay a civil penalty to the United States. The settlement also requires Cloud Peritus to train staff on the requirements of the INA’s anti-discrimination provision and be subject to departmental monitoring and reporting requirements.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid citizenship status discrimination on IER’s website. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this release here.
Justice Department Announces $40 Million in Funding to Advance Community Policing and $5 Million in Funding for the Collaborative Reform InitiativeRead the Press Release
Today, the U.S. Department of Justice announced the availability of approximately $40 million in funding in Community Policing Development (CPD) grants and roughly $5 million for the Collaborative Reform Initiative. Attorney General Merrick B. Garland first announced the expansion of technical assistance services offered to law enforcement agencies through the Collaborative Reform Initiative in March 2022.
The Community Oriented Policing Services’ (COPS Office) CPD funds are used to help law enforcement implement community policing through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting creative approaches to preventing crime and promoting safe communities. The Collaborative Reform Initiative offers a range of intermediary and intensive forms of technical assistance, including targeted assistance following a critical incident, issue-specific reviews and analysis, and in-depth assessments on systemic issues that damage community trust and confidence. Each level of the initiative’s assistance is voluntary and provided at the request of law enforcement agencies.
“Nothing is more important than keeping our communities safe,” said Associate Attorney General Vanita Gupta. “Each day, approximately half a million people throughout the United States call 911 for help and there are hundreds of thousands more daily interactions between law enforcement and members of the communities they serve. The funding we are announcing today is critical to the department’s commitment to public safety and best practices in community policing.”
Highlights of the 2022 CPD funding include:
- Crisis Intervention Teams (CIT). Up to $10 million will support crisis intervention teams.
- De-escalation Training. Up to $15 million will support national level de-escalation training for officers through a network of regional centers.
- Accreditation. Up to $8 million to expand state accreditation programs and assist agencies with gaining accreditation will ensure compliance with state and national standards, covering all aspects of law enforcement policies, procedures and practices.
- COPS Microgrants. Up to $5 million will support local agencies’ demonstration or pilot projects, known as COPS Microgrants. These projects offer creative ideas to advance crime fighting, community engagement, problem solving or organizational changes to support community policing.
- Tolerance, Diversity and Anti-Bias Training. Up to $2 million will support the delivery of tolerance, diversity and anti-bias training for law enforcement officers.
The Collaborative Reform Initiative continuum includes:
- A continuation of the Collaborative Reform Initiative Technical Assistance Center (CRI-TAC). Established in 2017, CRI-TAC provides a wide range of targeted technical assistance services and involves a coalition of support and expertise from ten leading law enforcement stakeholder organizations. Through CRI-TAC’s “by the field, for the field” approach, the department facilitates customizable, short-term technical assistance on more than 60 topics. Last year, CRI-TAC worked with over 170 law enforcement agencies. The new initiative will maintain CRI-TAC as its first level of support.
- An updated Critical Response. A law enforcement agency experiencing a high-profile event or other special circumstance will be able to reach out to the COPS Office for needed technical assistance. Like CRI-TAC, this program is also customizable and provides flexible assistance to law enforcement agencies in a variety of ways. Once an agency connects with the Department of Justice, tools will be in place to offer support ranging from after-action reviews, to peer-to-peer exchanges, to data analysis and recommendations, to facilitating discussions with experts. The initiative will maintain the Critical Response program as its second level of support.
- An updated Organizational Assessments. This program will offer the most intensive form of support, involving in-depth assessments on systemic issues. Under the new initiative, areas for reform will be addressed with timely, ongoing and actionable guidance. Participating agencies will be provided with the technical assistance they need to accomplish reforms as they are identified. This program is a voluntary opportunity for an agency that knows it needs to make changes and wants to make changes. The department will prioritize offering this third level of support to agencies that have a clear desire to engage with the model and advance community policing.
The CPD solicitation will close on June 23, 2022, and the Collaborative Reform solicitation will close on July 8, 2022. Additional information can be found on the COPS website at https://cops.usdoj.gov/grants.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to agency for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers.
Imperial, PA Daycare Operator Pleads Guilty to Failing to Account for and Pay over TaxesRead the Press Release
PITTSBURGH, PA - A resident of Imperial, Pennsylvania, pleaded guilty in federal court to a charge of failing to account for and pay over payroll taxes to the Internal Revenue Service, United States Attorney Cindy K. Chung announced today.
Rebecca Lynn Boyce, age 43, pleaded guilty to one count before United States District Judge Nicholas Ranjan.
In connection with the guilty plea, the court was advised that from at least 2006 through at least 2019, Boyce owned and operated Cutie Patootie Daycare, a childcare center in Imperial, Pennsylvania. During that period, Cutie Patootie employed staff and withheld payroll taxes from the paychecks of its employees. Cutie Patootie was required to pay over payroll taxes to the IRS on a periodic basis and was required to account for payroll taxes by filing with the IRS on a quarterly basis Form 941, an Employer’s Quarterly Federal Tax Return. Boyce failed to pay over payroll taxes to the IRS and failed to file any Forms 941 from the quarter ending March 31, 2015, through the quarter ending December 31, 2018. Boyce was informed of her obligation to file Forms 941 and make payroll tax payments during IRS audit and collections activities that preceded the periods charged in the Indictment. Boyce agreed to pay restitution to the IRS in the amount of $299,830.20, plus interest.
Judge Ranjan scheduled sentencing for September 20, 2022. The law provides for a maximum sentence of five years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney David Lew is prosecuting this case on behalf of the government.
The Internal Revenue Service, Criminal Investigation conducted the investigation leading to the Indictment in this case.
Husband and Wife who Conspired with Jared Fogle to Sexually Exploit Children are Sentenced to Decades in Federal PrisonRead the Press Release
INDIANAPOLIS – Russell Taylor, 50, Indianapolis, and his ex-wife, Angela Taylor (now known as Angela Baldwin), 40, Connersville, were sentenced today, ending a years-long child exploitation investigation into a conspiracy that involved Taylor, Baldwin, and Jared Fogle. Taylor was sentenced to 27 years in prison and Baldwin was sentenced to over 33 years in prison.
According to Court documents, the investigation into Taylor, Baldwin, and Fogle began in 2014, when an acquaintance of Taylor and Baldwin contacted the Indiana State Police to report that Taylor had offered to send her child sexual abuse material. In 2015, a search warrant was executed at the home that Taylor and Baldwin shared. Child sexual abuse material was discovered on multiple electronic devices and law enforcement officers concluded that there were likely hidden cameras in the house.
Taylor and Fogle were both charged, pled guilty, and convicted in 2015. Taylor appealed, and his conviction was vacated in 2020. During the subsequent re-investigation, investigators discovered evidence that implicated Baldwin, and she was charged with production of child sex abuse material, possession of child sex abuse material, and conspiracy to produce child sex abuse material.
According to court documents, between 2011 and 2015, Taylor and Baldwin worked together and with other individuals, including Jared Fogle, to produce, possess, and distribute child sexual abuse material. Taylor and Baldwin placed hidden cameras in their house to secretly record minor children fully nude and/or engaging in sexual activity. In addition to viewing the hidden camera footage, Taylor and Baldwin also distributed the sexually explicit images and videos to each other, to Fogle, and to other members of the conspiracy.
Taylor, who pled guilty in June 2021 to multiple offenses, including 24 counts of producing child sexual abuse material, was sentenced today to 324 months in federal prison.
Baldwin, who was convicted by a jury in October 2021 of two counts of production of child sexual abuse material, one count of conspiracy to produce child sexual abuse material, and one count of possession of child sexual abuse material, was sentenced to 400 months in federal prison.
“The Taylors have finally been held accountable for their years of heinous sexual exploitation of children,” said U.S. Attorney Zachary A. Myers. “Child sexual abusers must be held accountable for the lifelong impact of these crimes on survivors and their families. The prosecutors, investigators, and analysts of Indiana’s Internet Crimes Against Children Task Force will not relent in our mission to protect children from these offenders. I commend all of the dedicated professionals who fought to take these child predators out of our community and help to bring justice to their victims.”
“This case demonstrates the never-ending commitment of the FBI and our law enforcement partners to seek justice for the victims of child sexual abuse,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “Russell Taylor and Angela Baldwin not only abused children by producing child sexual abuse material in their home, but also re-victimized children over and over again by contributing to the distribution of these images. Sentences like this one send a clear message that adults who participate in this type of despicable abuse will be held responsible for their actions.”
“The collaborative work performed by the Indiana State Police, Indiana Internet Crimes Against Children Task Force and our federal law enforcement partners helped to bring to justice those who sought to perpetuate the victimization of children”, said Indiana State Police Superintendent Douglas G. Carter. “And for that, I am so proud and grateful for their tireless efforts.”
The Federal Bureau of Investigation and the Internet Crimes Against Children Task Force investigated the case. The sentence was imposed by U.S. District Chief Judge Tanya Walton Pratt. As part of the sentence, Judge Pratt ordered that Taylor and Baldwin be supervised by the U.S. Probation Office for life following their release from prison. Taylor and Baldwin will also be required by law to register as a sex offender wherever they live, work, or go to school.
U.S. Attorney Myers thanked Assistant U.S. Attorneys Kathryn E. Olivier and Bradley P. Shepard who prosecuted this case.
Indiana Internet Crimes Against Children (ICAC) Task Force is a partnership of federal, state, and local law enforcement agencies led by the Indiana State Police. The Task Force is dedicated to investigating and prosecuting crimes involving the technology-facilitated sexual exploitation of children and the trafficking of child sexual abuse material. Each year, Indiana ICAC investigators evaluate thousands of tips, investigate hundreds of cases, and rescue dozens of children from ongoing sexual abuse. In fiscal year 2019, the most recent year for which data is available, the Southern District of Indiana was second out of the 94 federal districts in the country for the number of child sexual exploitation cases prosecuted.
Additionally, this case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Home Health Company Operating in Florida Pays $2.1 Million to Resolve False Claims AllegationsRead the Press Release
Miami, Florida – SHC Home Health Services of Florida, LLC and its related entities (collectively “Signature HomeNow”) have paid $2.1 million to the United States government to settle claims of improperly billing the Medicare Program for home health services provided to beneficiaries living in Florida.
Signature HomeNow operated home healthcare services in Florida and its corporate headquarters are located in Louisville, Kentucky.
According to a complaint filed in the United States District Court for the Southern District of Florida against Signature HomeNow and the subsequent settlement agreement, it was alleged that between 2013 and 2017 Signature HomeNow knowingly submitted false or fraudulent claims seeking payment from the Medicare Program for home health services to Medicare beneficiaries who: (i) were not homebound; (ii) did not require certain skilled care; (iii) did not have a valid or otherwise appropriate plans of care in place; and/or (iv) did not have appropriate face-to-face encounters needed in order to be appropriately certified to receive home health services.
This matter arose from a complaint to the Department of Health and Human Services, Office of Inspector General (HHS-OIG) complaint hotline (https://oig.hhs.gov/fraud/report-fraud/) and from a complaint for monetary damages under the qui tam provisions of the federal False Claims Act. See United States ex rel. Barbara Mellott-Yezman and Patricia Rench v. SHC Home Health Services-Ocala, LLC et al., Case No. 15-cv-24713 (S.D. Fla.).
“The fraudulent billing of Medicare will not be tolerated,” said Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida. “We will continue to aggressively pursue cases against those who erode the fabric of our federal health care programs by submitting false claims to Medicare.”
“Overbilling Medicare by submitting false claims increases the cost of medical care for all and undermines the integrity of the Medicare program,” said Michael A. Bennett, U.S. Attorney for the Western District of Kentucky. “This office will continue to vigorously pursue unscrupulous health care providers who attempt to defraud the Medicare program.”
“When health care companies try to boost their profits by fraudulently billing federal health care programs, our agency will work closely with our law enforcement partners to hold them accountable for their schemes,” said HHS-OIG Atlanta Regional Office Special Agent in Charge Miles.
HHS-OIG Atlanta Regional Office investigated the case, with assistance from HHS-OIG Miami. Assistant U.S. Attorneys James A. Weinkle and John Spaccarotella (of the U.S. Attorney’s Office for the Southern District of Florida), Assistant United States Attorneys Benjamin S. Schecter, Jessica R.C. Malloy, and Matt Weyand (of the U.S. Attorney’s Office for the Western District of Kentucky) handled the litigation.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Harley Ray Humphrey Sentenced to 248 Months for Methamphetmine and Gun ChargesRead the Press Release
GREENEVILLE, Tenn. – May 9, 2022, Harley Ray Humphrey, 41, of Russellville, Tennessee, was sentenced to 248 months in prison by the Honorable J. Ronnie Greer, in the United States District Court for the Eastern District of Tennessee at Greeneville.
As part of the plea agreement filed with the court, Humphrey agreed to plead guilty to conspiracy to distribute 50 grams or more of methamphetamine, in violation of 21 U.S.C. §§ 846 and 841(b)(1)(A) and to possession of a firearm in furtherance of a drug trafficking offense, in violation of 18 U.S.C. § 924(c). Following his release from prison, Humphrey will be on 10 years of supervised release.
According to the written plea agreement filed with the court, Hamblen County narcotics detectives identified Humphrey as a supplier of methamphetamine to multiple individuals in Hamblen County, Tennessee. On January 25, 2020, Greene County officers responded to a call regarding trespassers at an abandoned property on Poncho Road, along with a report that shots had been fired. Officers found multiple individuals on the property, including Humphrey and another male who were located inside an old camper. Officers searched the camper and found 248 grams of methamphetamine, 12 Xanax pills, .6 grams of marijuana, and an M&P .22 caliber assault rifle. Four spent casings were found on the ground outside the camper. Humphrey had $2,500 cash on his person. Investigators obtained other information that Humphrey was regularly purchasing methamphetamine from the Atlanta, Georgia area and distributing it in Tennessee.
U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee made the announcement.
The criminal indictment was the result of an investigation by the Hamblen County Sheriff’s Office, the Greene County Sheriff’s Office, and the Federal Bureau of Investigation.
Assistant U.S. Attorney Emily Swecker represented the United States.
This case was part of the High Intensity Drug Trafficking Areas (HIDTA) program. The HIDTA program enhances and coordinates drug control efforts among local, state, and federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States. The program began in 1988 when Congress authorized the Director of The Office of National Drug Control Policy designate areas within the United States that exhibit serious drug trafficking problems and harmfully impact other areas of the country as HIDTAs.
This case is also part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders working together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Four Plead Guilty to Racketeering, Shootings, and Economic Crimes in “Robles Park” Criminal EnterpriseRead the Press Release
Tampa, Florida – United States Attorney Roger B. Handberg announces that Keaujay Hornsby, a/k/a “Plug,” (26, Tampa); Kareem Spann, a/k/a “Reem,” (27, Tampa); and Tywon Spann, a/k/a “Weez” (25, Tampa) have pleaded guilty to a racketeering conspiracy related to numerous violent, drug trafficking, and economic crimes that were committed in furtherance of a criminal enterprise called “Robles Park.” Hornsby and Kareem Spann have also pleaded guilty to committing violent crimes in aid of racketeering and discharging firearms in aid of crimes of violence. Eriaus Bentley (29, Tampa) and the three other defendants have each also pleaded guilty to conspiring to commit fraud and identity theft, and committing numerous substantive acts of fraud and identity theft. Bentley faces a maximum penalty of 5 years in federal prison. Tywon Spann faces up to 20 years’ imprisonment. Hornsby and Kareem Spann each face a maximum penalty of life in federal prison.
According to court documents, “Robles Park” is a criminal organization whose members and associates engaged in acts involving murder, assault, intimidation, narcotics trafficking, access device fraud, identity theft, obstruction of justice, and other crimes. Among other acts of violence, on July 19, 2020, Hornsby and Kareem Spann committed a shooting outside the Truth Lounge in Tampa, igniting a shootout in front of a crowd that left eight people injured, including minors. On the afternoon of July 25, 2020, in retaliation for the Truth Lounge shooting, in the parking lot of the International Plaza in Tampa and near several witnesses, West Tampa gang members initiated an armed confrontation with Hornsby and Kareem Spann. Hornsby and Kareem Spann exchanged fire with the gang members, leaving behind 25 spent shell casings and several damaged vehicles.
This enterprise also distributed controlled substances, with customers that would also cover sales for each other. Sales were arranged via text messages, phone calls, and in-person contacts. The defendants maintained and used various premises to store and distribute the narcotics. On January 5, 2021, law enforcement officers searched one of the residences and found 253.2 grams of cocaine, 298.4 grams of marijuana, and 174.2 grams of synthetic cannabinoids.
Additionally, members of the enterprise worked with each other and other persons to unlawfully obtain the personal identifying information (PII) of other persons. They used this PII to submit false applications for unemployment benefits to which they were not entitled. In total, the defendants submitted more than 200 fraudulent claims, in 20 different states, with an intended loss of over $3 million. For many of those claims, a bank card was issued from the state in which the claim was filed, loaded with Unemployment Insurance funds. The defendants then used each of the cards to withdraw cash from an ATM.
On August 12, 2020, law enforcement officers searched Tywon Spann’s home and seized firearms, several pounds of marijuana, and $200,000 in cash, which is traceable to proceeds of these offenses, and will be forfeited.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, the United States Secret Service, and the Department of Labor. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Former Postal Employee Admits Fraud in Connection with Unemployment Insurance BenefitsRead the Press Release
NEWARK, N.J. – A former U.S. Postal Service (USPS) employee today admitted that he fraudulently obtained unemployment insurance benefits, U.S. Attorney Philip R. Sellinger announced.
Khaori Monroe, 29, of Newark, pleaded guilty by videoconference before U.S. District Judge Julien X. Neals to an information charging him with one count of wire fraud.
According to documents filed in the case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits for individuals who were not eligible for other types of unemployment (the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional $600 weekly benefit to those eligible for PUA and regular unemployment insurance benefits.
Monroe was employed as a mail carrier with the USPS. He and others stole credit/debit cards containing unemployment insurance benefits from a location in New Jersey. Monroe and others then activated the cards and used the cards to obtain more than $40,000.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Monroe or twice the gross loss suffered by the victims, whichever is greatest. Sentencing is scheduled for Sept. 14, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone in Manhattan; and postal inspectors of the U.S. Postal Inspection Service in Newark, under the direction of Postal Inspector in Charge Damon Wood, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
Former Police Officer Found Guilty of Stealing 125 Firearms from the Puerto Rico Police Shooting Range at Isla De CabraRead the Press Release
SAN JUAN, Puerto Rico – On May 6, 2022, following a ten-day bench trial, the Honorable Silvia Carreño-Coll found defendant José Padilla-Galarza guilty as charged in Counts 1, 2, 3, 5, and 6 of the superseding indictment, which included the following:
- Conspiracy to interfere with commerce by robbery (Hobbs Act);
- Carrying a firearm during and in relation to a crime of violence;
- Stealing firearms;
- Prohibited person in possession of a firearm; and
- Interference with commerce by robbery (Hobbs Act).
According to court documents and evidence presented at trial, Padilla-Galarza, a former Puerto Rico Police Bureau (PRPB) officer, used to visit the PRPB Isla de Cabra Shooting Range to become familiar with the personnel, their shifts, and the layout of the facility. Padilla-Galarza, as mastermind, planned the heist for over a year. The robbery took place on October 26, 2010. The co-conspirators assaulted, subdued, and bound the duty police officers and stole the firearms stored in the vault to subsequently sell them for significant pecuniary gain and profit.
The co-conspirators used a white Ford Crown Victoria attached with decals of the PRPB to give it the appearance of an official PRPB patrol car. Members of the conspiracy dressed as PRPB police officers, some in regular police uniforms and others in tactical uniforms. The 125 firearms stolen included two pistols taken from duty officers, 40 AR-15 rifles, 24 shotguns, nine 9mm carbines, one MP3 rifle, and 49 pistols.
This was the biggest firearms robbery in the history of Puerto Rico.
Padilla-Galarza now faces terms of imprisonment of up to 20 years for the Hobbs Act violations, a minimum of 5 years for carrying a firearm in furtherance of a crime of violence (robbery), up to 10 years for stealing firearms, and up to 10 years for being a prohibited person in possession of a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) lead the investigation with the collaboration of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI), and the Federal Bureau of Investigation (FBI).
The case was prosecuted and tried by Assistant United States Attorneys Max Pérez-Bouret and Jawayria Z. Auchter.
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Former Allenwood Inmate Sentenced for Possessing A Cellphone in PrisonRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on May 5, 2022, federal inmate John Alexander Townsend, age 41, pleaded guilty before U.S. Magistrate Judge William I. Arbuckle, for possessing a cellphone in prison. Following the guilty plea, U.S. Magistrate Judge Arbuckle sentenced Townsend to one month imprisonment, to run consecutive to Townsend’s 186-month prison term for a series of armed robberies in Philadelphia. Townsend also lost 54 days of good time and spent 30 days in disciplinary segregation for possessing the cellphone.
According to United States Attorney John C. Gurganus, on May 10, 2021, a corrections officer’s metal detector alerted on Townsend at the Low Security Correctional Institution, Allenwood. Staff then searched Townsend and found a Samsung cellphone and charger hidden in a pocket stitched on the inside of Townsend’s prison uniform. Federal law prohibits inmates from possessing cellphones due to the institutional security risks posed by their use.
The case was investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Alisan V. Martin prosecuted the case.
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El Departamento de Justicia llega a un acuerdo con una agencia de consultoría que resuelve unas acusaciones de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Cloud Peritus, Inc., una compañía de servicios de consultoría en el ámbito de la informática radicada en California. La conciliación resuelve las acusaciones del Departamento de que Cloud Peritus había discriminado a un no ciudadano de los EE. UU. al pedir que presentara documentos adicionales e innecesarios para demostrar su permiso para trabajar, debido a su estatus de ciudadanía.
«Una vez que un empleado haya presentado documentación válida y aceptable para demostrar su permiso para trabajar, el empleador no puede pedir documentos adicionales simplemente por motivos de la ciudadanía, estatus migratorio o nacionalidad de origen del empleado», afirmó la Fiscal Federal Auxiliar Kristen Clarke, de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se ha comprometido a garantizar que todo trabajador tenga el derecho a demostrar su permiso para trabajar libre de la discriminación ilícita».
La investigación del Departamento determinó que Cloud Peritus discriminó a un no ciudadano de los EE. UU. al pedir que presentara documentos adicionales para demostrar su permiso para trabajar, a pesar de haber ya presentado suficiente documentación, por motivos de su estatus de ciudadanía. Por otra parte, la investigación reveló que la solicitud documental discriminatoria de la compañía fue el resultado, en parte, de su falta de entendimiento del software que usaba para verificar el permiso para trabajar de sus empleados y la compañía creía que el sistema requería esos documentos de no ciudadanos.
La disposición antidiscriminatoria de la ley de Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) prohíbe que los empleadores pidan documentos adicionales o diferentes a los necesarios para demostrar el permiso para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. Los empleadores deben permitir que sus trabajadores presenten cualquier documentación válida que dichos trabajadores quieran y no pueden rechazar documentación válida que parece ser genuina.
Conforme al acuerdo, Cloud Peritus pagará una sanción civil a los Estados Unidos. Asimismo, el acuerdo requiere que Cloud Peritus capacite a sus empleados en cuanto a los requisitos de la disposición antidiscriminatoria de la INA y que se someta a los requisitos de supervisión y declaración del Departamento.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación.
Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aprenda más sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en el sitio web de la IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Defendants Appear in Court to Face Charges in High School Drug Advertising and Distribution CasesRead the Press Release
SAN JOSE – The Office of the United States Attorney filed federal criminal complaints charging Benjamin Reily Bliss; Louis Alexander, aka Lulu; and Brandon William Carranza-Arthur with crimes related to the distribution of fentanyl to high school students in Monterey County, announced U.S. Attorney Stephanie M. Hinds and Drug Enforcement Administration (DEA) Special Agent in Charge Wade R. Shannon. Alexander and Carranza-Arthur appeared before U.S. Magistrate Judge Nathanael Cousins on Friday, May 6, 2022, to face their respective charges. Bliss appeared before U.S. Magistrate Judge Nathanael Cousins today.
According to the criminal complaints, the investigation into drug distribution to high schoolers in the area began as early as October of 2021 but took a turn after a 15-year-old Pacific Grove resident suffered a fatal overdose on or about March 5, 2022. Evidence collected at the scene of the overdose established that the juvenile overdosed from inhaling the smoke from a pulverized counterfeit “M30” pill. Subsequent investigation resulted in the complaints that allege Bliss, 18, of Carmel; Carranza, 19, of Monterey; and Alexander, 19, of Monterey, each played a role in distributing drugs to high school students in Monterey County.
The complaint against Bliss alleges that as part of the investigation into the deadly overdose, law enforcement interviewed a second juvenile who also overdosed, but survived. Text messages from the surviving juvenile’s cell phone established that on March 20, 2022, Bliss provided transportation for the juvenile. Specifically, Bliss picked up the surviving juvenile and provided a ride to San Francisco, where the juvenile purchased a baggie containing fentanyl in the form of a multicolored powdery/rocky substance. The juvenile allegedly paid $250 for the drugs which, after using, resulted in a non-fatal overdose on March 23, 2022.
The complaint against Alexander alleges that he used Snapchat to advertise, offer, and sell fentanyl-based counterfeit oxycodone and Xanax pills to high school students in the Monterey area. In October 2021, one of the juveniles he is believed to have supplied suffered a non-fatal overdose. While the juvenile overdose victim was recovering in the hospital, the juvenile’s mother discovered Snapchat messages on a cellular phone that the juvenile used. The Snapchat messages were about drug sales and were between the juvenile and a person named “lulu.” According to the complaint, law enforcement personnel later identified “lulu” as Alexander. In addition, the mother of yet another local high school student reported that “numerous students [ ] are using and addicted to ‘percocets,’”and that “lulu” is a known as a supplier of these “blue pills” at the student’s high school.
Similarly, the complaint filed against Carranza alleges that law enforcement personnel obtained text messages between Carranza and a juvenile establishing Carranza played a role in supplying drugs to high school students. According to the complaint, Carranza provided information regarding how a student should take counterfeit prescription drugs. The complaint describes numerous text messages in which a juvenile admits he was having intense cravings for drugs and Carranza negotiates the price and quantity of pills that could be supplied. In one exchange, the juvenile offers to pay Carranza $60 for $50 worth of pills if Carranza would front the money; the juvenile explained that the arrangement would provide sufficient time to arrange the sale of a cell phone to finance the transaction. According to the complaint, Carranza ultimately arranged for the juvenile to obtain the drugs.
In sum, Bliss is charged with aiding and abetting distribution of fentanyl, in violation of 21 U.S.C. §§ 841(a)(1) and (b)(1)(c) and 18 U.S.C. § 2, while Carranza and Alexander are charged with unlawfully using, or causing to be used, the Internet to advertise, or to offer to sell or distribute a controlled substance, in violation of 21 U.S.C. § 843(c)(2)(A). Bliss faces a maximum statutory sentence of 20 years in prison. Alexander and Carranza face a maximum term of four years in prison. In addition, as part of any sentence handed down after conviction of any of the three defendants, the court may order a fine of up to $250,000, restitution, and up to three years of supervised release. However, any sentence after conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Carranza and Alexander are next scheduled to appear on May 11 before Magistrate Judge Cousins. Bliss is making his initial federal court appearance today.
Assistant U.S. Attorneys Amani S. Floyd and Maya Karwande are prosecuting the cases with assistance from Linda Love and Andy Ding.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is the result of an investigation by the DEA with assistance from Homeland Security Investigations; the FBI; the police departments of Pacific Grove, Seaside, Monterey, Salinas, Marina, Greenfield, and Soledad; the Monterey County Probation Department; and the Monterey County Sheriff’s Office.
Culloden Man Sentenced to Prison for Distributing MethamphetamineRead the Press Release
HUNTINGTON, W.Va. – A Culloden man was sentenced today to three years and four months in prison, to be followed by three years of supervised release, for distribution of methamphetamine.
According to court documents and statements made in court, Travis Lee Hanshaw, 49, admitted to selling methamphetamine to a confidential informant on June 15, 2018, at Hanshaw’s residence.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-198.
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Coffeen, Illinois, Man Sentenced to 168 Months in Prison for Receipt of Child PornographyRead the Press Release
SPRINGFIELD, Ill. – A Coffeen, Illinois, man, Trey Pease, 30, of the 100 block of South Street, was sentenced on May 4, 2022, to 168 months in prison for receipt of child pornography by United States District Judge Sue Myerscough.
At the sentencing hearing, the government presented evidence that between the summer of 2017 and the spring of 2018, Pease both solicited and received multiple images of child pornography from a minor. Pease conversed with the minor using an online social application. Pease also sent an image of himself to the minor.
During the hearing, Judge Myerscough specifically found that Pease had caused the minor to engage in sexually explicit conduct for Pease’s sexual gratification, had used a computer to receive child pornography, and had engaged in a pattern of activity involving prohibited sexual conduct with minors on multiple occasions.
Pease was indicted in March 2020 and plead guilty in December 2021. He has been detained since his arrest in August 2020.
The statutory penalties for receipt of child pornography are not less than five years and up to 20 years in prison, not less than five years and up to life of supervised release, and not more than a $250,000 fine.
The Illinois State Police investigated the case. Assistant United States Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Chicopee Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BOSTON – A Chicopee man pleaded guilty today in federal court in Springfield to possessing more than 100 images of child pornography.
Herve Plasse, 67, pleaded guilty to one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Sept. 22, 2022. Plasse was indicted in September 2019.
In July 2015, a search of Plasse’s residence revealed over 100 images of child pornography on his computer, including images of prepubescent girls engaged in sexually explicit conduct. Plasse admitted that he had accessed a website on an encrypted network for the purpose of viewing child pornography.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joseph Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division, made the announcement today. Assistant U.S. Attorney Alex J. Grant of Rollins’ Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Chicago Man Sentenced to 48 Months for Attempting to Possess Fentanyl for DistributionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Jeffrey Kemp, 55, Chicago, Illinois was sentenced on Friday, May 6 by Chief U.S. District Judge James D. Peterson to 48 months in prison for attempting to possess fentanyl with intent to distribute. Kemp pleaded guilty to this charge on February 24, 2022.
In 2020, federal and state law enforcement agencies started investigating several known drug traffickers in Dane County, Wisconsin. As part of this joint investigation, the Wisconsin Department of Justice Division of Criminal Investigation (DCI) learned that an individual in Chicago, Illinois had a parcel of narcotics sent, via U.S. Mail, to an address in Madison, Wisconsin.
On December 7, 2020, a U.S. Postal Inspector identified the parcel, obtained a federal warrant, and searched the package. Inside, investigators found a vacuum-sealed bag that contained approximately 590 grams of a substance containing fentanyl. DCI agents took custody of the drugs and resealed the parcel for a controlled delivery.
Later on December 7, 2020, investigators delivered the parcel to the address in Madison. Approximately one minute after delivering the parcel, a silver sedan with Illinois license plates pulled up to the building. Kemp got out of the car and took the parcel. Arrest units responded as Kemp put the parcel into the car. Officers arrested Kemp and the driver of the vehicle, who agents identified as Antonio Dillard.
During a post-arrest interview, Kemp admitted that the individual in Chicago paid him and Dillard to pick up the parcel and transport the drugs back to Chicago for distribution.
At sentencing, Judge Peterson explained that even though Kemp played a relatively minor role in a larger organization, he caused significant damage to the community by exploiting people’s addictions.
On April 1, 2022, Judge Peterson sentenced Antonio Dillard to 24 months in prison for attempting to possess fentanyl with intent to distribute. In related cases, Judge Peterson sentenced Michael C. Henderson to 84 months in prison on December 9, 2021, and Andre L. McClinton to 108 months in prison on March 23, 2022.
The charge against Kemp was the result of an investigation conducted by DCI, the Dane County Narcotics Task Force, the Drug Enforcement Administration, and the United States Postal Inspection Service. Assistant U.S. Attorney Chadwick M. Elgersma prosecuted this case.
Chemist Sentenced for Stealing Trade Secrets, Economic Espionage and Wire FraudRead the Press Release
A federal judge in Greeneville, Tennessee, sentenced a Michigan woman today to 168 months, the equivalent of 14 years, in prison for a scheme to steal trade secrets, engage in economic espionage and commit fraud. The defendant was also ordered to serve three years of supervised release and pay a $200,000 fine.
In April 2021, following a 13-day jury trial, Xiaorong You, aka Shannon You, 59, of Lansing, Michigan, was convicted of conspiracy to commit trade secret theft, conspiracy to commit economic espionage, possession of stolen trade secrets, economic espionage and wire fraud.
“As the evidence at trial showed, the defendant stole valuable trade secrets and intended to use them to benefit not only a foreign company, but also the government of China,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “Today’s sentence reflects the seriousness of this offense, as well as the Department of Justice’s commitment to protect our nation’s security by investigating and prosecuting those who steal U.S. companies’ intellectual property.”
“When companies invest huge amounts of time and money to develop world-class technologies, only to have those technologies stolen, the results are devastating,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Here, the defendant intended not only to enrich herself and her China-based partners, but also the government of China. Crimes like the defendant’s threaten both victim companies and the economic security of the nation as a whole. This case should serve as a warning to those entrusted with valuable trade secrets: if you break the law, you will be punished.”
“Stealing trade secrets of U.S. companies for the benefit of the Chinese government will be vigorously prosecuted in the Eastern District of Tennessee, and today’s 14-year sentence reflects the seriousness of this defendant’s crimes,” said U.S. Attorney Francis M. Hamilton III for the Eastern District of Tennessee. “The corporate vigilance and subsequent cooperation with federal law enforcement that brought this defendant to justice is to be commended; our national security depends on it.”
“Stealing technology isn’t just a crime against a company,” said Acting Assistant Director Bradley S. Benavides of the FBI’s Counterintelligence Division. “It’s a crime against American workers whose jobs and livelihoods are impacted. Today’s sentencing is a reminder that the FBI and its partners will hold accountable those who break our laws and threaten our economic and national security.”
“Ingenuity, innovation, and perseverance are the time-honored trademarks of American business and entrepreneurship," said Special Agent in Charge Joseph E. Carrico of the FBI's Knoxville Field Office. "In the current global state of commerce, corporations are forced to place an increased emphasis on the protection of trade secrets and intellectual property. The FBI will not sit by while any nation-state attempts to steal or incentivizes the theft of trade secrets from successful corporations. The FBI is committed to working with industry to hold those accountable who would attempt to steal technology or trade secrets at the cost of American businesses, their employees, and their livelihood."
According to court documents and evidence presented at trial, You stole valuable trade secrets related to formulations for bisphenol-A-free (BPA-free) coatings for the inside of beverage cans. You was granted access to the trade secrets while working at The Coca-Cola Company in Atlanta, and Eastman Chemical Company in Kingsport, Tennessee. The stolen trade secrets belonged to major chemical and coating companies including Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem, Sherwin Williams and Eastman Chemical Company, and cost nearly $120 million to develop.
You stole the trade secrets to set up a new BPA-free coating company in China. You and her Chinese corporate partner, Weihai Jinhong Group, received millions of dollars in Chinese government grants to support the new company (including a Thousand Talents Plan award). You’s Thousand Talents Program application and other evidence presented at trial showed that she intended to benefit not only Weihai Jinhong Group, but also the governments of China, the Chinese province of Shandong, the Chinese city of Weihai and the Chinese Communist Party.
Until recently, BPA was used to coat the inside of cans and other food and beverage containers to help minimize flavor loss and prevent the container from corroding or reacting with the food or beverage contained therein. However, due to BPA’s potential health risks, companies began searching for BPA-free alternatives. Developing these BPA-free alternatives was a very expensive and time-consuming process.
From December 2012 through August 2017, You was employed as Principal Engineer for Global Research at Coca-Cola, which had agreements with numerous companies to conduct research and development, testing, analysis and review of various BPA-free technologies. Because of You’s extensive education and experience with BPA and BPA-free coating technologies, she was one of a limited number of Coca-Cola employees with access to BPA-free trade secrets belonging to Akzo-Nobel, BASF, Dow Chemical, PPG, Toyochem and Sherwin Williams. From approximately September 2017 through June 2018, You was employed as a packaging application development manager for Eastman Chemical Company in Kingsport, Tennessee, where she was one of a limited number of employees with access to trade secrets belonging to Eastman.
The FBI’s Knoxville Field Office and HSI investigated the case.
Assistant U.S. Attorney Mac D. Heavener III for the Eastern District of Tennessee; Senior Counsel Matt Walczewski of the Criminal Division’s Computer Crime and Intellectual Property Section; and Trial Attorney Nic Hunter of the National Security Division’s Counterintelligence and Export Control Section and are prosecuting the case. Valuable assistance was provided by Assistant U.S. Attorney T.J. Harker for the Eastern District of Tennessee.
Brooklyn Gang Leader Sentenced to 24 Years in Prison for Murder for Hire Conspiracy, Use of a Firearm, and Narcotics TraffickingRead the Press Release
Earlier today, in federal court in Brooklyn, Ronald Williams, a leader of the ‘90s Crew street gang based in the Canarsie and East Flatbush neighborhoods of Brooklyn, was sentenced by United States District Judge LaShann DeArcy Hall to 24 years’ imprisonment for conspiracy to commit murder-for-hire, conspiracy to commit obstruction of justice murder, conspiracy to distribute marijuana, use of a firearm during a drug trafficking crime, and being a felon in possession of a firearm and ammunition. Williams was convicted by a federal jury on January 24, 2018 following a two-week trial. Williams’ co-defendant, Leon Campbell, pleaded guilty in June 2019 to murder-for-hire conspiracy and conspiracy to distribute marijuana, and was sentenced in November 2019 to nine years’ imprisonment.
Breon Peace, United States Attorney for the Eastern District of New York, and Frank A. Tarentino III, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), announced the sentence.
“Ronald Williams showed his indifference for a human life when, without any hesitation, he accepted money to kill someone suspected of being an informant for federal law enforcement,” stated United States Attorney Peace. “Today’s lengthy sentence demonstrates the seriousness of obstructing justice and that those who seek to do so will be punished. Our district is a safer place with this dangerous and ruthless felon off the streets. I commend the DEA for taking swift action in warning the victim and preventing the planned murder from being carried out.”
“This sentencing demonstrates DEA’s relentless pursuit to seek justice for drug trafficking and violent crimes,” stated DEA Special Agent-in-Charge Tarentino. “The investigation underscores the relationship between drug trafficking and violence, and further demonstrates our commitment and resolve to holding those accountable for causing the most harm in our communities. I commend the hard work of the agents, prosecutors, and law enforcement partners who worked tirelessly on this investigation.”
On April 26, 2013, DEA agents were following Campbell as he was making a delivery of marijuana to a customer in Brooklyn. Campbell spotted the agents and fled, suspecting that his marijuana customer was an informant providing information to federal law enforcement. On April 30, 2013, Campbell called Williams and offered to pay him $5,000 to kill the individual he suspected was a federal informant. Williams agreed to commit the murder and began planning the murder, including selecting a gang member to carry out the contract. Federal agents, however, were able to identify the potential victim, and the murder was not carried out.
Williams was also convicted of being a felon in possession of a firearm and ammunition found during the execution of a search warrant at his residence and using a firearm in connection with the charged drug trafficking crime. The items recovered during a search of Williams’ residence on East 96th Street in Brooklyn included three handguns and several pounds of marijuana, a drug ledger, a safe, and a police scanner.
The government’s case is being prosecuted by Assistant United States Attorney Hiral D. Mehta.
The Defendant:
RONALD WILLIAMS
Age: 47
Brooklyn, New YorkE.D.N.Y. Docket No. 13-CR-419 (LDH)
British Man Charged with Attempted Online Enticement of Minor and Travel with the Intent to Engage in Illicit Sexual ConductRead the Press Release
NEWARK, N.J. – A British citizen was charged today with attempted online enticement of a minor and travel with the intent to engage in illicit sexual conduct, U.S. Attorney Philip R. Sellinger announced.
Stephen Hudson, 51, of Ealing, England, is charged by complaint with one count of attempted online enticement of a minor and one count of travel with the intent to engage in illicit sexual conduct. He appeared by videoconference today before U.S. Magistrate Judge José R. Almonte in Newark federal court and was detained.
According to documents filed in this case and statements made in court:
From April 14, 2022, to May 6, 2022, Hudson used an encrypted email account to communicate with federal law enforcement, acting in an undercover capacity, to facilitate his access to and sexual abuse of two minor female children. Hudson agreed to travel from Massachusetts to New Jersey and pay approximately $1,200 in cash in exchange for, among other things: 1) engaging in sexual acts with 11- and 12-year-old girls; 2) supplying Hudson with illicit drugs; and 3) administering the illicit drugs and alcohol to the 11- and 12-year-old girls. On May 6, 2022, Hudson traveled to an agreed-upon location in New Jersey for the purpose of engaging in sexual activity with the two minors and provided approximately $1,200 in cash to the undercover law enforcement agents as previously agreed. After providing the cash to law enforcement, Hudson was arrested.
The charge of attempted online enticement of a minor carries a maximum statutory penalty of life in prison, a mandatory minimum sentence of 10 years, and a maximum fine of $250,000. The charge of interstate travel with the intent to engage in illicit sexual conduct carries a maximum statutory penalty of 30 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, and members of the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s charges.
The government is represented by Assistant U.S. Attorney Camila A. Garces of the General Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Bloomsburg Man Sentenced to 18 Months of Imprisonment for $430,000 Fraud Scheme, Including $300,000 in Covid Relief FraudRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Darryl Corradini, age 63, was sentenced by United States Chief District Judge Matthew W. Brann, to 18 months’ imprisonment for a bank fraud and money laundering scheme that included nearly $300,000 in COVID-19 relief guaranteed by the Small Business Administration through the Paycheck Protection Program (PPP).
The PPP is designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 2020 CARES Act, PPP funds are offered in forgivable loans, provided that certain criteria are met, including use of the funds for employee payroll, mortgage interest, lease, and utilities expenses.
According to United States Attorney John C. Gurganus, Corradini pleaded guilty to a money laundering conspiracy involving his codefendant, Vicki Hackenberg, age 57, and others. Corradini created a shell corporation, CGM Realty LLC, and opened bank accounts and a Bitcoin trading account in the corporation’s name, by using false and forged documents. The conspirators used the accounts to receive over $135,000 in fraudulently obtained funds, and over $296,000 from a PPP loan that was obtained with false and forged documentation. That documentation included false information and certifications about CGM Realty LLC’s employee payroll obligations, and intention to use the funds for approved purposes, when in fact CGM Realty LLC had no employees or legitimate business operations. Forged IRS documentation also was included with the PPP application, containing false information about CGM Realty LLC’s nonexistent payroll obligations.
Over $350,000 of the fraudulent proceeds was used to purchase Bitcoins, a type of cryptocurrency. Although Corradini and Hackenberg were to each receive $40,000 for their participation in the offense, they ultimately received less than $10,000 of the fraudulent proceeds.
During sentencing, Chief Judge Brann highlighted Corradini’s lies to law enforcement officials and concealment of a separate bank account used to receive fraudulent proceeds. In addition to the Corradini’s sentence of imprisonment, Chief Judge Brann also ordered him to perform 20 hours of community service, and to pay $431,289 to the victims of his crimes. That restitution obligation is shared by Hackenberg, who previously was sentenced by Chief Judge Brann to serve 12 months’ imprisonment.
The case was investigated by agents with the Internal Revenue Service’s Criminal Investigations Division. The matter was prosecuted by Assistant U.S. Attorney Phillip J. Caraballo.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Berkley Nurse Pleads Guilty to Tampering with Patients' FentanylRead the Press Release
BOSTON – A Berkley nurse pleaded guilty today in federal court in Boston to tampering with fentanyl intended for patients at a hospital’s post-surgery recovery unit and an outpatient vascular surgery center.
Hugo Vieira, 41, pleaded guilty to one count of tampering with a consumer product. U.S. District Court Judge Angel Kelley scheduled sentencing for Aug. 24, 2022. Vieira was charged on March 3, 2022.
From December 2018 to January 2019, while working at a Massachusetts hospital and an outpatient vascular surgery center, Vieira removed fentanyl from vials meant for patients who were undergoing surgery or recovering from surgery. To conceal his conduct, Vieira replaced the diverted fentanyl with saline. Sixty tampered vials were identified at the vascular surgery center and two vials at the hospital post-surgery recovery unit. Those vials contained only 1.3–7% of the declared concentration of fentanyl citrate.
The charge of tampering with a consumer product provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; and Margret R. Cooke, Commissioner of the Massachusetts Department of Public Health made the announcement today. Assistant U.S. Attorneys Elysa Q. Wan and David J. Derusha of Rollins’ Health Care Fraud Unit are prosecuting the case.
Berkeley County woman sentenced for role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jaime Renee Coddington, of Falling Waters, West Virginia, was sentenced today to 21 months of incarceration for her role in a drug distribution operation, United States Attorney William Ihlenfeld announced.
Coddington, 35, pleaded guilty in June 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone and Cocaine Base.” Coddington admitted to working with others to distribute Eutylone and Cocaine Base from October 2019 to April 2020 in Berkeley and Jefferson Counties.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
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.
U.S. District Judge Gina M. Groh presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Bartlesville Teenager Pleads Guilty to Second Degree MurderRead the Press Release
A 17-year-old who abused a toddler, causing the child’s death, pleaded guilty Monday in federal court, announced U.S. Attorney Clint Johnson.
Terry Nathan Hindman, of Bartlesville, pleaded guilty to second degree murder.
“The abuse this young child endured at the hands Terry Hindman is horrific and his death a tragedy,” said U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office takes seriously our charge to protect Oklahoma’s children and will bring to justice those who harm them.”
In a plea agreement, Hindman admitted that on Sept. 29, 2021, he was caring for a 23-month-old male child when he intentionally threw the young child across the room toward a couch with excessive force. The child’s head hit the wall directly behind the couch then he landed on a table in front of the couch striking his head again. Hindman said the child then stumbled and seemed dazed. Hindman failed to seek medical attention and did not tell anyone about the incident, including doctors when the child was taken to the hospital later that day.
On Oct. 2, 2021, Hindman was watching the child again when the child began having medical problems and appeared to have trouble breathing. Hindman did not seek medical care. The child’s mother later called an ambulance, and the child was transported to the hospital. During the second hospital visit, Hindman again failed to tell anyone about the Sept. 29 injury. The child was transferred to Oklahoma City and died on Oct. 7, 2021, from blunt force trauma, which was a result of the abuse that occurred on Sept. 29.
Hindman was charged as an adult for the crime.
The FBI and Bartlesville Police Department conducted the investigation. Assistant U.S. Attorneys Shannon Cozzoni and Chantelle D. Dial are prosecuting the case.
Baltimore man sentenced for drug trafficking chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dontaz Lavan Brandon, of Baltimore, Maryland, was sentenced today to five years of probation for a drug a charge, United States Attorney William Ihlenfeld announced.
Brandon, 24, pleaded guilty in December 2021 to one count of “Aiding and Abetting Possession with Intent to Distribute Fentanyl.” Brandon admitted to working with another to distribute fentanyl in January 2020 in Berkeley County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorneys Lara Omps-Botteicher and Timothy D. Helman prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated. The task force consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. District Judge Gina M. Groh presided.
Abingdon Man Sentenced for Stealing Mail and Bank FraudRead the Press Release
ABINGDON, Va. – An Abingdon, Virginia man, who stole hundreds of pieces of mail from over 100 different addresses in the Abingdon area, including a check he altered and cashed at a local bank, was sentenced today to 36 months in federal prison.
Bradley Alan Wolfe, 38, pleaded guilty in December 2021 to one count of possession of stolen mail and one count of bank fraud.
Wolfe admitted stealing mail from residential mailboxes in the Abingdon, Meadowview, Glade Spring, and Chilhowie areas from March through September of 2021. Items taken included multiple packages, cash, a United States passport, diabetes medication, and multiple checks worth thousands of dollars. In one instance, Wolfe altered a stolen check by replacing the payee’s name with his own and then cashed it at Eastman Credit Union in Abingdon for $4,890.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Greg L. Torbenson, Acting Postal Inspector in Charge of the U.S. Postal Inspection Service’s Washington Division, made the announcement.
The Washington County Sheriff’s Office and the United States Postal Inspection Service investigated the case, with assistance provided by the United States Marshals Service.
Assistant U.S. Attorney Lena L. Busscher prosecuted the case.
3 Found Guilty of Participating in Scheme to Submit Millions of Dollars in Fraudulent Bills for Substance Abuse Treatment for TeensRead the Press Release
LOS ANGELES – A federal jury today convicted three defendants who participated in an $18.5 million scheme that submitted fraudulent claims to California’s Drug Medi-Cal program for alcohol and drug treatment services for high school and middle school students.
With today’s guilty verdicts, a total of 19 people have been convicted of federal criminal charges stemming from fraudulent bills submitted by a Long Beach company – the non-profit Atlantic Recovery Services (ARS), later called Atlantic Health Services – that provided substance use disorder treatment services to students at local high schools and middle schools through Medi-Cal and its Drug Medi-Cal program.
The three defendants convicted today of health care fraud charges are:
- Gregory Hearns, 66, of Compton, the billing supervisor for ARS who compiled the monthly billing and arranged for its submission to Medi-Cal (guilty of one count and acquitted on 10 others);
- LaLonnie Egans, 64, of Bellflower, a former manager at ARS (guilty of three counts);
- Tina Lynn St. Julian, 58, of Inglewood, a former counselor at ARS (guilty of four counts).
United States District Judge Philip S. Gutierrez is scheduled to sentence all three defendants on July 15, at which time each will face up to 10 years in prison for each count of conviction.
According to court documents and the evidence presented at a 12-day trial, the participants in the ARS scheme defrauded the Drug Medi-Cal program by submitting bills for services to students who did not medically need alcohol or drug treatment. ARS also billed Drug Medi-Cal for group and individual counseling sessions that were not provided or did not meet the requirements for reimbursement as to size, length, or setting. To support the false billings, ARS employees falsified numerous documents.
The former president and chief executive officer of ARS – Richard Mark Ciampa, 68, of Commerce – pleaded guilty last year and was sentenced in September to seven years in federal prison.
In March 2009, Drug Medi-Cal ordered ARS to repay an overpayment, which caused a significant amount of financial pressure on Ciampa and ARS. Ciampa, in turn, passed along this financial pressure to his employees and threatened the employees that they would lose their jobs with ARS or have their hours reduced to part-time if they did not generate significant billings. In response to Ciampa’s threats, ARS employees generated false and fraudulent claims for submission to Drug Medi-Cal.
Hearns also pressured ARS employees to increase billings. The pressure from ARS management prompted Egans and St. Julian to commit specific actions, including enrolling students in ARS’s substance abuse treatment program even if the students had used drugs or alcohol only one time or just occasionally, exaggerating documentation to falsely show that enrolled students had a medically diagnosed substance use disorder, falsifying documents to make it look like group and individual counseling sessions had taken place, collecting student signatures on sign-in sheets for group counseling sessions that the students did not attend or that were not conducted, and forging signatures on sign-in sheets and other documents that were used to support claims for reimbursement.
During the four-year period that ended in March 2013, ARS submitted false and fraudulent claims of just over $18.5 million, and Drug Medi-Cal paid approximately $17,635,100 on those claims.
The California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse; the United States Department of Health and Human Services, Office of Inspector General; and the Internal Revenue Service - Criminal Investigation investigated this matter.
Assistant United States Attorneys Cathy J. Ostiller and Karen E. Escalante of the Major Frauds Section, and Assistant United States Attorney Nisha Chandran of the General Crimes Section are prosecuting this case.
"Long Time Coming" Update: Parkersburg Woman Sentenced to Prison for Role in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Parkersburg woman was sentenced today to one and one-half years in prison, to be followed by three years of supervised release, for her role in a multi-state drug trafficking organization (DTO) responsible for distributing methamphetamine, fentanyl, cocaine and marijuana in Parkersburg and elsewhere.
According to court documents and statements made in court, Ambera Roberts, 34, admitted to participating in a conspiracy with Carlo Ramsey to distribute methamphetamine in and around Parkersburg. Roberts acquired methamphetamine from Carlo Ramsey and distributed it to others in the Parkersburg area between June and September 2021. Roberts was responsible for the distribution of nearly 100 grams of methamphetamine during the conspiracy.
Roberts previously pleaded guilty to conspiracy to distribute methamphetamine. Matthew Edward Depew, Carlo Ramsey, Floyd Dermonta Ramsey, Era Dawn Corder, and Robert Sanders, Jr. previously pleaded guilty to felony charges in United States District Court for the Southern District of West Virginia, as a result of a nearly year-long investigation dubbed “Long Time Coming.” All other defendants are awaiting sentencing. The investigation also resulted in more than a dozen arrests on state criminal complaints in Wood County.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Parkersburg Narcotics Task Force (PNTF), the Parkersburg Police Department, the West Virginia State Police, the United States Postal Inspection Service, the Vienna Police Department, the Williamstown Police Department, the Wood County Sheriff’s Department, the Cabell County Sheriff’s Department, the Boyd County, Kentucky, Sheriff’s Department, the Russell, Kentucky, Police Department and the Raceland, Kentucky, Police Department.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-163.
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6 May 2022
Wheeling man admits to firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Wright of Wheeling, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Wright, 42, pleaded guilty today to today on one count of “Unlawful Possession of a Firearm and Ammunition.” Wright, a person prohibited from having firearms, admitted to having a .9mm pistol, a five-shot revolver and ammunition for both firearms in June 2021 in Ohio County.
Wright faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Western Massachusetts Man Charged with Traveling to Meet Minor for SexRead the Press Release
ALBANY, NEW YORK – Martin Connearney, age 32, of Lenox, Massachusetts, was arrested yesterday and charged with traveling across state lines with the intent to engage in a sexual act with a minor.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The criminal complaint alleges that between April 6, 2022 and May 4, 2022, Connearney exchanged text messages with another person in which Connearney expressed interest in engaging in sexual conduct with a child. Connearney and the other person discussed plans in which Connearney would travel from Massachusetts in order to meet at a prearranged location in New York and engage in sexual acts with the child. On the morning of May 5, 2022, Connearney drove from Lenox to New York, where he was encountered by law enforcement officials and arrested.
Connearney appeared today before United States Magistrate Judge Daniel J. Stewart and was ordered detained after he waived his right to a detention hearing.
The charge filed against Connearney carries a maximum sentence of 30 years in prison, a fine of up to $250,000 and a term of supervised release of at least 5 years and up to life. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, and is being prosecuted by Assistant United States Attorney Benjamin S. Clark.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Virginia Company Agrees to Pay $800,000 to Resolve False Claims Act AllegationsRead the Press Release
NEWARK, N.J. – An information technology service provider to the United States military has agreed to pay $800,000 to resolve allegations that it violated the False Claims Act by purchasing items for the personal use of their employees and billing those items against its government contracts, U.S. Attorney Philip R. Sellinger announced today.
The settlement resolves allegations that from Jan. 1, 2012, to Jan. 31, 2017, employees of Subsystems Technologies Inc. (STI), of Arlington, Virginia, purchased various electronic and luxury items for personal use, and then provided those items, along with sporting event tickets and other things of value, to government employees in order to gain favorable treatment. STI admitted that its employees purchased electronic and luxury items for the personal use by both STI employees and government employees while improperly charging those items against the government contracts awarded to STI for services at Picatinny Arsenal in Morris County, New Jersey.
U.S. Attorney Sellinger credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; special agents of the FBI, under the direction of Acting Special Agent in Charge Michael Messenger in Newark; and special agents of the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge is Larry S. Moreland, with the investigation that led to the settlement.
The government is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Government Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Vandalia Man Sentenced to 60 Months Imprisonment for Distributing Child PornographyRead the Press Release
EAST ST. LOUIS, Ill. – Bradley L. Matthews, 40, of Vandalia, Illinois, was sentenced on May 4, 2022, to 60 months imprisonment for distributing child pornography.
According to the stipulation of facts agreed to by the parties, Matthews came to the attention of law enforcement in February 2019 during an FBI undercover internet investigation of child pornography. During the investigation, an undercover officer engaged in a conversation with Matthews during which he sent the undercover officer three videos depicting child pornography.
In an interview with law enforcement on September 5, 2019, Matthews admitted distributing child pornography. When shown the printout of the conversation with the undercover officer that took place on February 5, 2019, Matthews identified himself as the person in the profile picture and admitted that he was the person who had engaged in the conversation with the undercover officer and distributed the child pornography videos.
In addition to the 60-month term of imprisonment, Matthews will serve a ten-year term of supervised release, fined $200, and ordered to pay a $100 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May
2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child
Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
The case was investigated by the Federal Bureau of Investigation-Springfield Field Office.
Assistant United States Attorney Angela Scott prosecuted the case.United States Settles Suit Against VoIP Service Providers for Facilitating Millions of Illegal Telemarketing Calls about COVID-19Read the Press Release
Voice over Internet Protocol (VoIP) service providers, VoIP Terminator Inc. and BLMarketing Inc., and their owner, Muhammed Usman Khan, agreed to a court order resolving Federal Trade Commission (FTC) allegations that they facilitated tens of millions of illegal telemarketing calls, including some calls to numbers listed on the “Do Not Call” Registry and robocalls that displayed “spoofed” or fake caller ID numbers. This stipulated order resolves a lawsuit the United States filed in federal district court in the Middle District of Florida.
The government’s complaint alleges that Florida-based VoIP Terminator, Virginia-based BLMarketing and Pakistan resident and citizen Khan violated the FTC Act and the FTC’s Telemarketing Sales Rule (TSR). The defendants violated the TSR by assisting and facilitating the transmission of illegal calls for their customers, continuing to do so even after learning that their services were being used to initiate calls to numbers on the Do Not Call Registry and to place spoofed robocalls. The complaint alleges that the illegal calls transmitted by defendants included recorded messages about air duct cleaning services that purportedly filtered out COVID-19, preying on consumers’ fears of the virus, as well as messages involving credit card interest rate reduction and tech support scams.
The stipulated order bars the defendants from similar misconduct in the future, requires them to screen and monitor customers, terminate customers if they are engaged in improper telemarketing activity and imposes a $3.2 million civil penalty, payment of which is suspended due to defendants’ inability to pay. This is the FTC’s third case against VoIP services providers.
The FTC referred this case and the proposed stipulated order to the Department of Justice. The case was handled by attorneys in the Civil Division’s Consumer Protection Branch, including Trial Attorneys Ellen Bowden McIntyre and Zachary Dietert and Assistant Director Lisa Hsiao, in conjunction with attorneys at the FTC’s Bureau of Consumer Protection/Division of Marketing Practices.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. Run out of the Office of the Deputy Attorney General, the Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international actors committing civil and criminal fraud and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866 720 5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
U.S. Attorney’s Office Reaches ADA Settlement with Milnor Public School DistrictRead the Press Release
Fargo - Interim United States Attorney Nicholas W. Chase announced today that the U.S. Attorney’s Office for the District of North Dakota entered into a settlement agreement with the Milnor Public School District ("School District") to resolve an allegation that the School District violated the Americans with Disabilities Act of 1990 ("ADA").
The settlement agreement resolves an ADA complaint alleging that the newly constructed playground at the Milnor Public School is inaccessible to students with disabilities, and that the School District failed to provide accessible transportation to a student with a disability for a field trip. Through its investigation into the complaint, the U.S. Attorney’s Office learned of serious barriers to access for students with disabilities at the playground. These barriers included a newly installed Engineered Wood Fiber playground surface that was loose and unstable, such that a wheelchair user would have extreme difficulty navigating the playground surface. Additionally, the route to the playground area included changes in level, running slopes, and cross slopes far exceeding those permitted under the ADA Standards for Accessible Design. Further, the U.S. Attorney’s Office learned about an incident in which a student with a disability was, rather than provided with accessible transportation, picked up and carried on to a non-accessible school bus for a field trip during the school day.
Under the terms of the settlement agreement, the School District will make modifications to the playground by September 1, 2022, to bring it into compliance with the ADA. Further, when transporting students with disabilities who use mobility devices, the School District will use vehicles with features such as lifts or ramps to properly assist and secure these students.
Interim U.S. Attorney Chase commended the School District for its exemplary cooperation throughout this investigation and for its commitment to the ADA. "Every child in North Dakota should have equal access to educational facilities," said Interim U.S. Attorney Chase. "I personally thank the Milnor Public School District for its full cooperation with our investigation and for its agreement to correct the issues at the playground before the upcoming school year. We hope other schools, park districts, and providers of playground equipment and installation services remain focused on the requirements of the ADA. Our office is committed to ensuring children with disabilities have full and equal access to educational and recreational opportunities in North Dakota."
Assistant U.S. Attorneys Tara Vavrosky Iversen and Melissa H. Burkland represented the United States in this matter, with assistance from Paralegal Specialist Michelle Erdmann.
Any member of the public who wishes to file a complaint alleging that any place of public accommodation or public entity in North Dakota is not accessible to persons with disabilities may file a complaint online at www.ada.gov or contact the U.S. Attorney’s Office at 701-297-7400.
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U.S. Attorney Cole Finegan Delivers Remarks at Colorado Law Enforcement MemorialRead the Press Release
Remarks as delivered:
Distinguished members of our law enforcement community, honored guests, friends, and most importantly our surviving family members:
Good morning. My name is Cole Finegan. I am the United States Attorney for the District of Colorado.
It is an honor today to be here with each of you to commemorate all Colorado Law Enforcement officers who have given their lives in the Line of Duty, dating back 160 years to 1862. We also are here to recognize the 17 officers whose names today will be added to this Memorial. With their addition, we now will have 342 names inscribed forever. We have surviving families with us today from Pueblo to Grand Junction, from Windsor to Antonito, and beyond.
Martin Luther King once noted, “Life’s most persistent and urgent question is what are you doing for others?”
As we gather today, we have no doubts that those we honor did all they could for their fellow citizens. When these men and women—husbands, wives, sons, daughters, fathers, mothers—put on their uniforms and headed out, there were no guarantees that they would return home safely. They did not. There are no guarantees today. And while most move away from danger, from gunfire, from violence, there are those among us who run toward the danger, knowing all too well that they truly are heading into harm’s way. I marvel at this. Frankly, I don’t know how those brave officers do that, how they summon the courage and will to run toward danger. But we are all grateful that they do that. We owe them our gratitude and our respect. And, for their ultimate sacrifice, we owe them the legacy that we commemorate and underscore here.
Today, I want to talk about these heroes and also about the men and women, the families and friends, that these heroes leave behind when they do make the ultimate sacrifice: when they do die in the line of duty. When I speak of heroes, I am not talking about athletes or celebrities we idolize, or even about the wonderful comic book characters that our children (and some of us adults love): Superman, Wonder Woman, Spiderman.
No, I am speaking about those brave officers who went into public service, put it all on the line, and made the ultimate sacrifice. And I am speaking about those who continue to put it all the on the line: many of you sitting here today.
Just miles from here, we saw first-hand the heroic actions of two such people last year.
On March 22, 2021, Boulder Police Officer Eric Talley had stopped to help a woman changing a tire. Moments later, he got a call. An active shooter at the King Soopers on Table Mesa Road. He was needed.
Officer Talley arrived, sized up the situation, and ran toward the gunfire. He was the first officer on the scene. As I said before, there are some people so brave that they run toward danger.
In the blink of an eye, Officer Talley was killed by the gunman who killed 9 other innocent people that day. But from the time Officer Talley entered the store and confronted the suspect, no other innocent civilians were hurt. Officer Talley’s Supervisor said, “Eric died a hero, giving his all to save others. He did not die in vain. He answered a call for help in which he knew people were dying. He saved many lives.”
Eric was a man of deep faith, a devout Catholic. At his funeral, a priest observed wisely that Eric’s life was not taken: Eric gave his life.
Eric was devoted to his family and to his faith, and by all accounts, he had a wicked sense of humor. He was kind. He was brave. He will be missed forever by those who knew him and loved him.
Three months after Eric’s murder, on June 21, 2021, Arvada Police Officer Gordon Beesley responded to a call about a suspicious incident near the Arvada Library. A gunman ambushed Officer Beesley, killing him in an instant. The gunman targeted Officer Beesley because he was a police officer, he was wearing a uniform and a badge. The gunman had expressed a hatred of police officers, and he acted out his hatred by murdering Officer Beesley.
Gordon Beesley was more than a police officer in his community. He was a school resource officer known for taking a compassionate approach with students. In 2015, he began biking to school alongside a 7th grader with a developmental delay. After learning that this boy was interested in bicycles, but his mom didn’t want him riding alone, Officer Beesley -- Gordon -- made time before his school shift to ride with the boy, to make a difference in his life.
Gordon, his wife, and his two sons, enjoyed living here. They loved the Colorado outdoors. They hiked, biked, skied, camped. Gordon liked to travel and to learn. He played drums in a band. His motto was “Look for the good in every day.”
Gordon was the good in every day. I hope that he knew that.
Both officers of whom I have spoken were taken away in a moment. From their families. From their friends. From their communities.
Yet others have been lost in the past year in different ways, no less heartbreaking and damaging. Sadly, COVID was the leading cause of death among American law enforcement officers last year.
Here in Colorado, we have added 8 names on these panels for those killed by the coronavirus. We pay tribute to those officers who sacrificed their health, and ultimately their lives, while keeping the rest of us safe.
The current pandemic prompted a Denver Police Sergeant to research the Spanish Flu epidemic of 1918. We now have 8 historical additions, including two Denver police officers, Frank Potestio and Peter Walsh, who died responding to the 1918 crisis.
Whether lost suddenly or gradually, recently or in 1918 in Denver or in 1908 in Antonito, the heaviness of grief weighs on those closest who are left behind. Remarkably, we have 30 family members here today from Antonito to honor the town marshal killed 114 years ago. They’ve all traveled from the very southern part of our state to be here, to pay their respect and honor Marshal Rafael Peña’s sacrifice made 114 years ago. His memory endures. As does our grief.
Grief is described in many ways: “Grief is the tax we pay for our attachment. Grief is the final act of love.” But no matter how it is described, it is real. It brings a heaviness that is physical, and there is no set time or day that it will leave. It may never fully leave.
I have read that “Loss is a kind of eternal conscience, urging us to make better use of our finite days.” And to quote Eric Talley’s wise priest once more, “What are we doing with the days we have left??"
In the U.S. Attorney’s Office, we know that we have much work to do in the days we have left. We are committed to work with our partners in law enforcement at the local, state, and federal levels, many of whom are represented right here, to do all we can to go after violent criminals who make our communities more dangerous. We do this work because we want for our citizens to be safe.
And on this day especially, we very much want the women and men in blue, who risk it all every day, to know how much they mean, and just how much we depend upon them.
As I close, let me say again that our debt not only is to those brave officers who have died in our service, but also to those loved ones left behind. We owe all of you our gratitude, our support, and our respect, and you certainly have every measure of that devotion.
The following words are inscribed on the National Law Enforcement Officers Memorial in Washington: “It is not how these officers died that made them heroes. It is how they lived.”
By every measure that matters, they lived well.
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Link to ceremony: https://fb.watch/cRdeJpbc-D/
Colorado State PatrolTwo Puerto Rico Mayors Arrested and Charged with Accepting BribesRead the Press Release
The mayors of two municipalities in Puerto Rico were arrested yesterday for allegedly engaging in conspiracy, soliciting bribes, and extortion.
According to the indictment, unsealed yesterday in the District of Puerto Rico, Javier García-Pérez, 46, Mayor of Aguas Buenas, was involved in a bribery conspiracy in which, from 2017 through 2021, he received and accepted cash payments from two businessmen in exchange for awarding municipal contracts for waste disposal services, asphalt and paving services, and debris removal and paying outstanding invoices on the contracts. The indictment alleges that García-Pérez received at least $32,000 in cash payments from the two businessmen from August 2020 through September 2021.
A second indictment unsealed yesterday alleges that Reinaldo Vargas-Rodriguez, 48, Mayor of Humacao, was involved in a bribery conspiracy in which, from January to July 2021, he received and accepted cash payments from two businessmen in exchange for awarding municipal contracts for waste disposal and asphalt and paving services, and for paying outstanding invoices on the contracts. The indictment alleges that Vargas-Rodriguez received at least $15,000 in cash payments from the two businessmen from March 18, 2021, through April 15, 2021.
If convicted of all counts, García-Pérez and Vargas-Rodriguez each face up to 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico, and Assistant Director Luis M. Quesada of the FBI’s Criminal Investigative Division made the announcement.
The investigation was conducted by the FBI’s San Juan Field Office.
The cases are being prosecuted by Trial Attorney Nicholas W. Cannon of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Scott H. Anderson for the District of Puerto Rico.
The cases are part of the Justice Department’s ongoing efforts to combat public corruption by municipal officials in Puerto Rico. In addition to the above matters, the Public Integrity Section and the U.S. Attorney’s Office for the District of Puerto Rico have recently obtained convictions against other former public officials and contractors in the District of Puerto Rico for soliciting and accepting bribes related to municipal contracts. See United States v. Luis Arroyo-Chiques, 21-485 (SCC); United States v. Eduardo Cintron-Suarez, 22-151 (SCC); United States v. Felix Delgado-Montalvo, 21-463 (RAM); United States v. Oscar Santamaria-Torres, 21-464 (RAM); United States v. Raymond Rodriguez, 21-465 (RAM).
Additionally, the department recently obtained indictments charging several former officials and contractors with bribery related to municipal contracts, and those cases are still pending. See United States v. Mario Villegas-Vargas, 21-468 (FAB); United States v. Angel Perez-Otero, 21-474 (ADC); and United States v. Radames Benitez-Cardona, 21-475 (PAD).
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Former Managers of National Grid Sentenced to Prison for Bribery and Kickback SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Patrick McCrann and Richard Zavada, two former managers in the facilities department of the New York utility company National Grid, were sentenced by United States District Judge Carol Bagley Amon for their participation in a years-long bribery and kickback scheme. Zavada was sentenced to a year and one day in prison, with a $10,000 fine and $330,735 forfeiture and McCrann was sentenced to a year and one day of prison, with a $10,000 fine and $200,000 forfeiture. The defendants each pleaded guilty to a violation of the Travel Act in October 2021.
Carolyn Pokorny, First Assistant 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 sentences.
“Today’s sentence metes out just punishment to these bid riggers who accepted hundreds of thousands of dollars in bribes and kickbacks, including cash, international vacations, home improvements, and recreational vehicles,” stated First Assistant United States Attorney Pokorny. “This Office will continue to root out corruption that undermines the integrity of competitive bidding in the procurement process.”
McCrann and Zavada were National Grid managers employed in the facilities department, who steered contracts to certain contractors in exchange for hundreds of thousands of dollars in bribes and kickbacks. One contractor (the “Contractor”) secured more than $50 million in facility maintenance contracts from National Grid during the time that the Contractor was paying bribes to the defendants. As managers, the defendants had the authority to approve “no-bid” contracts valued at less than $50,000. The Contractor understood that if it did not pay bribes, these defendants would award National Grid’s work to the Contractor’s competitors. In exchange for the bribe payments, the defendants also took various steps to assist the Contractor in obtaining contracts from National Grid, including, among other things, offering favorable reviews of the Contractor’s work. The Contractor paid bribes to ensure that the defendants did not slow or stop disbursement of project funds to the Contractor, provide negative performance reviews regarding the Contractor’s work, or otherwise claim that the Contractor’s work did not meet contractual specifications.
The illicit payments to the defendants took multiple forms, including cash, the purchase of recreational vehicles, home improvements, landscaping and overseas vacations. As part of the investigation, agents recovered approximately $300,000 in cash from a safe deposit box held by Zavada.
Three other former National Grid managers, Devraj Balbir, Ricardo Garcia and Jevan Seepaul, have previously entered pleas of guilty to accepting bribes from the Contractor and are awaiting sentence.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford and Artie McConnell are in charge of the prosecution.
The Defendants:
Patrick McCrann
Age: 57
Selden, New YorkE.D.N.Y. Docket No. 21-CR-467 (CBA)
Richard Zavada
Age: 65
Hicksville, New YorkE.D.N.Y. Docket No. 21-CR-468 (CBA)
Two Florida Men Sentenced to Ten and Six and a Half Years in Prison for Roles in Massive COVID-19 Relief Fraud SchemeRead the Press Release
Two Florida men were sentenced today for leading a nationwide scheme to defraud the Paycheck Protection Program (PPP) for millions of dollars in loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The U.S. District Court for the Northern District of Ohio sentenced James Stote, 56, of Hollywood, to ten years in prison, and Phillip J. Augustin, 53, of Coral Springs, to six and a half years in prison. Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud on Dec. 14, 2021.
According to court documents, Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began trying to illicitly obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. Augustin used his network of business contacts as a manager for professional football players to recruit loan applicants. The applications they submitted for these loans relied on fake payroll numbers, falsified IRS forms, and phony bank statements. Stote submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million. Among those loans, Augustin was also held responsible for at least 34 fraudulent loan applications worth at least $15 million.
The scheme included at least two loans to entities in Northeast Ohio that fraudulently obtained approximately $875,000.
In addition to their prison sentences, Stote was ordered to serve three years of supervised released and pay $10,149,752.69 in restitution and forfeit $1,137,715.13 in U.S. currency, four Rolex watches and other jewelry items valued at more than $31,000.
Augustin was ordered to serve three years of supervised released and pay $5,910,277.72 in restitution and forfeit $280,269.35 in U.S. currency.
In total, 25 people have been charged for their participation in this scheme in the Northern District of Ohio, Southern District of Florida, and Middle District of North Carolina.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio; Special Agent in Charge Bryant Jackson of the IRS-Criminal Investigation (IRS-CI) Cincinnati Field Office; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Interim Special Agent in Charge Philip E Frigm, Jr. of the FBI’s Cleveland Field Office; and Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region made the announcement.
The IRS-CI, FBI, and SBA-OIG are investigating the cases.
This case was prosecuted by Assistant U.S. Attorney Elliot Morrison for the Northern District of Ohio and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Todd County Man Indicted for Aggravated Sexual Abuse and Abusive Sexual ContactRead the Press Release
United States Attorney Alison J. Ramsdell announced that a Todd County, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Minor and Abusive Sexual Contact of a Minor.
Fremont Menard, a/k/a Fremont Menard, Jr., age 19, was indicted on February 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on May 5, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in prison and/or a $250,000 fine, 5 years up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about August 23, 2021, and September 4, 2021, in Todd County, South Dakota, Menard knowingly engaged in, and attempted to engage in, sexual contact with a minor under the age of 16, by the use of force. The Indictment further alleges that on or about September 4, 2021, Menard knowingly engaged in, and attempted to engage in, a sexual act with a different minor under the age of 16, by the use of force.
The charges are merely accusations and Menard is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Menard was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 28, 2022.
Texas Man Sentenced for Defrauding Cisco Systems and Other Companies Out of over $1.9 Million in Computer Hardware and ElectronicsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Vaugh Simon, 29, of Pearland, TX, was sentenced today to one year and three months in prison, and was ordered to pay a total of more than $1.9 million restitution, including more than $1.7 million to Cisco Systems Inc., by United States District Judge Joel H. Slomsky for operating a sophisticated warranty claim scheme which targeted multiple tech companies. Simon was also ordered to separately forfeit more than $178,000 in criminal proceeds that he earned through his fraud.
In June 2020, the defendant pleaded guilty to 22 counts of mail fraud, eight counts of wire fraud, two counts of filing a false tax return, and one count of tax evasion. Simon’s conviction stems from a complex scheme he perpetrated with several co-schemers in order to defraud Cisco, Sony Electronics, The Neat Company, Canon USA, APC by Schneider Electric, iRobot Corporation, and Skullcandy, Inc., out of various electronics and expensive computer hardware, by submitting to these manufacturers hundreds of false warranty claims seeking the advance replacement of more than $4 million worth of products. While not every false claim was successful, more than 200 of the claims did deceive the manufacturers, and Simon successfully induced them to ship more than $1.9 million worth of merchandise to him, most of which he sold via the internet or to computer equipment resellers.
The fraud scheme involved the registration of false domain names and the creation of false e-mail addresses, which were used to submit the false warranty claims under false identities. Simon typically obtained legitimate serial numbers for items that he did not own and then contacted the manufacturers, using the false identities and the false email addresses he had created, and claimed to be the owner of computer hardware or other electronic items that were supposedly broken and supposedly covered by warranties. The defendant knew how to explain the supposed problem in such a way that the items in question could not be fixed through trouble shooting and would instead require replacement. Simon promised to return the supposedly broken items as soon as he received the advance replacements, and he gave false addresses to which the replacement warranty items could be shipped. Simon then sold most of the replacement items at a deep discount and never returned any of the supposedly broken items, because he never owned them in the first place.
The primary victim of Simon’s fraud was Cisco. With respect to Cisco, between November 2014 and June 2017, Simon and two co-schemers submitted 284 false warranty claims using false identities for products they did not own. Of these, 209 successfully deceived Cisco into shipping Cisco hardware worth more than $1.7 million, all of which Simon and his co-schemers sold. Simon’s scheme was uncovered through the work of Cisco’s internal investigation team, which identified the suspected fraud and contacted the FBI, which then began a joint criminal investigation with the Internal Revenue Service, Criminal Investigation Division (IRS-CID).
In addition, the IRS-CID determined that Simon had filed false tax returns in 2014 and 2016, and also criminally evaded the payment of income taxes for 2015, during which time he earned over $400,000 through his fraud yet failed to declare that income to the IRS. Simon is the second person sentenced as part of this investigation: Justin David May, 32, of Wilmington, DE, was sentenced to four years and eight months in prison in June 2021.
“Warranties are designed to make consumers whole by replacing faulty products, not to be exploited by scammers looking to turn an illegal profit,” said U.S. Attorney Williams. “Warranty fraud is not a victimless crime, rather, companies which support employment for thousands of workers stand to lose millions of dollars, which was the case here. The defendant's scheme caused real harm, and for that he will now spend time behind bars. I would like to thank the FBI and IRS for their dedication and partnership in this matter.”
“Simon not only stole from these companies, but he also stole from the American public and the IRS,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “The loss of his liberty, along with restitution is the price he now has to pay.”
“Vaughn Simon took advantage of these companies’ warranty programs to score nearly $2 million in free merchandise,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “That’s not ‘gaming the system’ — that’s blatant, out-and-out fraud. To anyone else engaged in a scheme like this, know that the FBI will work to shut you down and hold you accountable for your actions.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Suburban Chicago Manufacturing Executives Guilty of Scheming to Hire Undocumented WorkersRead the Press Release
CHICAGO — Two siblings who operated a suburban Chicago manufacturing company have pleaded guilty in federal court to knowingly hiring undocumented workers.
KENNETH KUZELKA, 64, of Chicago, pleaded guilty Thursday to conspiracy to commit alien harboring for purposes of financial advantage, and his sister, KARI KUZELKA, 59, of Elgin, Ill., pleaded guilty to engaging in a pattern and practice of hiring unauthorized aliens.
The Kuzelkas admitted in plea agreements that in 2017 they schemed with the executive vice president of a Chicago staffing company to knowingly re-hire approximately 20 undocumented workers at KSO MetalFab Inc., a sheet metal fabrication company in Streamwood, Ill. The undocumented workers were previously employed by the company but had been terminated after agents from Homeland Security Investigations (HSI) served the company with notice of suspected violations regarding the workers’ employment-verification documents. The staffing agency facilitated the undocumented workers’ return to the company.
The conspiracy charge against Kenneth Kuzelka is punishable by up to ten years in federal prison, while Kari Kuzelka faces up to six months. U.S. District Judge Sara L. Ellis set sentencings for Aug. 2, 2022.
The Kuzelkas’ plea agreements were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Angie Salazar, Special Agent-in-Charge of the HSI Chicago office. The U.S. Department of Labor and U.S. Social Security Administration provided valuable assistance. The government is represented by Assistant U.S. Attorney Ashley A. Chung.
The staffing agency executive vice president – SERGIO BADANI of St. Charles, Ill. – previously pleaded guilty to his role in the scheme and was sentenced to two years of probation and fined $15,000. A fourth defendant – KEITH KUZELKA of Elgin – also pleaded guilty and was sentenced to a year of probation.
Steubenville man sentenced to more than 7 years in federal prison for distributing fentanylRead the Press Release
COLUMBUS, Ohio – A Steubenville, Ohio, man was sentenced in federal court today to 90 months in prison for his involvement in fentanyl trafficking.
Llyod George Douglas, Jr., 39, pleaded guilty in November 2021 to conspiring to attempt to possess with intent to distribute more than 400 grams of fentanyl.
According to court documents, in May 2021, law enforcement intercepted a package from Long Beach, California, addressed to Douglas’s residence that contained approximately 500 grams of fentanyl. Law enforcement then arranged for a controlled delivery of the package after removing the narcotics and inserting an electronic device that would signal when the package was opened.
Douglas transported the package to another residence in Steubenville where the mail was opened. Douglas ran outside shortly after the package was opened and was apprehended by law enforcement.
While searching both residences, investigators discovered firearms and nearly $15,000 in cash.
Kenneth L. Parker, United States Attorney for the Southern District of Ohio, announced the sentence imposed today by Chief U.S. District Judge Algenon L. Marbley. U.S. Attorney Parker commended the cooperative investigation by the Cleveland Postal Inspection Service, Drug Enforcement Administration (DEA), Jefferson County Drug Task Force and Hancock Brooke Weirton Drug and Violent Crimes Task Force. Assistant United States Attorney Kevin W. Kelley and Jefferson County Prosecutor Jane Hanlin represented the United States in this case.
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Schuylkill County Man Sentenced to 120 Months’ Imprisonment for Possession of Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jason Michael Herman, age 39, of Pine Grove, PA, was sentenced on May 5, 2022, to 120 months’ imprisonment to be followed by a 10-year term of supervised release, by United States District Court Judge Robert D. Mariani, for possessing visual depictions of minors engaged in sexually explicit conduct.
According to United States Attorney John C. Gurganus, during the Fall of 2020, Herman uploaded 9 videos (or approximately 675 images) of child pornographic content onto an internet-based social media application, including images showing the abuse of minors under the age of 12, and sent the videos to other users. At the time of this offense, Herman had a prior 2007 New Jersey conviction for possessing child pornography, the existence of which resulted in an enhancement of his federal sentence to a mandatory term of imprisonment of 120 months. At sentencing, Judge Mariani also ordered that Herman comply with the Sex Offender Registration and Notification Act (SORNA).
The case was investigated by the Federal Bureau of Investigation (FBI) – Philadelphia Division. Assistant United States Attorney Jeffery St. John prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit justice.gov/psc.
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Salt Lake City Estate Planning Attorney Sentenced to 97 Months in Prison and Ordered to Pay over $12.7 Million Dollars to 26 VictimsRead the Press Release
SALT LAKE CITY – Attorney Calvin Curtis, 61, of Salt Lake City, was sentenced to serve 97 months in federal prison by a U.S. District Court Judge today. Curtis was ordered to pay $12,779,496 in restitution to the 26 victims of his crimes and sentenced to an additional three years of supervised release upon his release from federal prison.
Curtis previously pleaded guilty in November of 2021, to embezzling millions of dollars from clients of his estate planning law firm based in Salt Lake City, known as Calvin Curtis Attorney at Law PLLC, and Curtiselderlaw.com. By the time of his sentencing, it had been discovered that Curtis had embezzled over $12 million dollars from his former clients who prosecutors say are elderly, incapacitated, or disabled individuals.
In the plea agreement, Curtis admitted that he is an attorney who specialized in special needs trusts and that beginning in January 2008, he began a fraudulent scheme to defraud a client known as “G.M.” out of money. Curtis admitted that due to his role, he had access to millions of dollars in two different trust accounts belonging to victim G.M., and that he transferred at least $9,500,000 intended for the care of G.M. into his own accounts, and then used this money for his own personal use. Curtis admitted that he also created fake financial statements and submitted these to the court ordered conservator of G.M. to conceal the fraud.
In pleading guilty to the wire fraud charge, Curtis admitted that on January 25, 2018, that he caused a wire communication from a Schwab Investment Account to his own Wells Fargo account, resulting in a transfer of $1,485,000. Curtis admitted that he used the money for his own personal benefit to make mortgage payments on his combined home and office located on South Temple Street in Salt Lake City, Utah; to support a lavish lifestyle with frequent travel; to purchase tickets to basketball and football games; to give lavish gifts to others; and to support the operations of his law firm.
In pleading guilty to the money laundering count, Curtis admitted that he fraudulently caused $135,000 to be transferred online from G.M. to his own Wells Fargo account, and that he used these funds to wire $95,000 to The Fechtel Company for the remodel of his home in Tampa, Florida. Curtis admitted that he knew these transactions were illegal at the time they occurred, and that the money was not used for the benefit of G.M.
Assistant United States Attorneys prosecuted the cases against Curtis and Special Agents from the FBI and IRS Criminal Investigation conducted the investigation.
Rogers Man Sentenced to 60 Years in Federal Prison for Aggravated Sexual Abuse and Production of Child PornographyRead the Press Release
FAYETTEVILLE – A Rogers man was sentenced today to 60 years in prison without the possibility of parole on one count of Production of Child Pornography and one count of Aggravated Sexual Abuse of a Minor. The Honorable Judge Timothy L. Brooks presided over the sentencing hearing in the U.S. District Court in Fayetteville.
According to court documents, in July 2020, Rogers Police Department received a CyberTip from the National Center for Missing and Exploited Children (NCMEC) regarding a Snapchat user that was uploading child sexual abuse material. The investigation led police to Michael Henderson LeClaire, 34, of Rogers, Arkansas. Results of search warrants conducted on LeClaire’s residence and electronics, showed LeClaire had produced videos of child sexual abuse material involving multiple minors. Multiple videos showed LeClaire sexually abusing an approximately 5-year-old male, 5-year-old female, and a 2-year-old male. Further, the investigation showed LeClaire had traveled across state lines to engage in sexual acts with two of the minors.
LeClaire was indicted by a Grand Jury in the Western District in July 2021 and entered a plea of guilty in November 2021.
U.S. Attorney David Clay Fowlkes of the Western District of Arkansas made the announcement.
The Rogers Police Department and the Arkansas Child Exploitation and Human Trafficking Task Force investigated the case.
Assistant U.S. Attorney Tyler Williams prosecuted the case for the United States.
This case was prosecuted 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.
Oxon Hill Man Sentenced to over 10 Years in Federal Prison for a Drug Distribution Conspiracy and for Illegal Possession of Stolen FirearmsRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Zaid Rushdan, age 41, of Oxon Hill, Maryland, yesterday to 126 months in federal prison, followed by seven years of supervised release, on charges of conspiracy, possession with intent to distribute controlled substances, and possession of stolen firearms.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Special Agent in Charge Charlie Patterson of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Washington Field Division; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his guilty plea, from at least December 2020 until February 11, 2021, Rushdan conspired with others to distribute and possess with intent to distribute over one kilogram of phencyclidine (“PCP”) and over 28 grams of crack cocaine.
Specifically, the DEA began investigating Rushdan, a co-conspirator, and others for distributing narcotics in Southern Maryland and the District of Columbia. Agents determined that Co-Conspirator 1 was transporting drugs and drug proceeds to facilitate Rushdan’s drug trafficking business after seeing Co-Conspirator 1 at Rushdan’s apartment on multiple occasions, leaving and picking up bags at the apartment while traveling to and from drug trafficking locations.
On February 11, 2021, law enforcement executed a search warrant at Rushdan’s apartment and seized: over a gallon (4,486 grams) of PCP with a purity of between 7% and 12%; approximately 299 grams of powder cocaine; approximately 31 grams of crack cocaine; plastic baggies containing pills and powders, subsequently identified to include 50 grams of heroin and 81.35 grams of Eutylone; approximately seven pounds of marijuana; seven handguns; two rifles; approximately 652 rounds of ammunition; and $14,485 in cash.
Rushdan admitted that the $14,485 in cash were proceeds of his drug trafficking business and the firearms were used, or were intended to be used, to facilitate his drug trafficking. As detailed in his plea agreement, Rushdan also knew, or had reasonable cause to believe, that four of the firearms were stolen, specifically, a Glock .40 caliber pistol, a Springfield Armory .45 ACP pistol, a Smith and Wesson 9x19mm pistol, and an Auto-Ordnance Corporation .45 ACP pistol.
“The outcome of this case is the result of extremely great work done by the individuals that took part in this investigation. We can thankfully say, there is one less criminal off of our streets. We at ATF work tirelessly to keep our communities safe from people who endanger our neighborhoods,” said Special Agent in Charge Charlie J. Patterson. “We will continue to work collaboratively with all of our partners to combat violent crimes in an effort to maintain public safety.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN, an evidence-based program proven to be effective at reducing violent crime, is the centerpiece of the Department of Justice’s violent crime reduction efforts. 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.
United States Attorney Erek L. Barron commended the DEA, the ATF, and the Prince George’s County Police Department for their work in the investigation and thanked the U.S. Attorney’s Office for the District of Columbia, the Town of Vienna, Virginia Police Department, the Alexandria, Virginia Police Department, the Virginia State Police, the Arlington, Virginia Police Department, the Loudoun County, Virginia Sheriff’s Office, and the Fairfax County Police Department for their assistance. Mr. Barron thanked Special Assistant U.S. Attorney Patrick D. Kibbe and Assistant U.S. Attorney Adam K. Ake, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Nearly 100 dogs rescued during investigation into animal fightingRead the Press Release
SAVANNAH, GA: Nearly 100 dogs were rescued as a result of an investigation into animal fighting in three Georgia counties.
The investigation, led by the U.S. Department of Agriculture Office of Inspector General, the U.S. Drug Enforcement Administration, and the Laurens County Sheriff’s Office, culminated in the execution of seven search warrants in Laurens, Johnson, and Washington counties, with a total of 96 dogs rescued, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The animals rescued in the operation are in the custody of the USDA for evaluation.
The continuing investigation, with the assistance of personnel from the Laurens County Sheriff’s Office, the Johnson County Sheriff’s Office, and the Washington County Sheriff’s Office, targets animal fighting operations in the Southern District and beyond.
Montgomery County Drug Dealer Pleads Guilty to Distribution of Fentanyl that Led to an Overdose DeathRead the Press Release
Greenbelt, Maryland – Enitan Mouroukeji Agbi, a/k/a “Anton Agbi,” and “Tone,” age 38, of Germantown, Maryland, pleaded guilty yesterday to distribution of fentanyl. Agbi admitted that Victim 1 died as a result of using drugs that Agbi distributed.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; Chief Malik Aziz of the Prince George’s County Police Department; Chief Darryl McSwain of the Maryland National Capital Park Police; Chief Robert J. Contee III of the Metropolitan Police Department; and Chief Victor Brito of the City of Rockville Police Department.
According to his guilty plea, on August 10, 2020, just prior to Victim 1’s fatal overdose, Victim 1 contacted Agbi by telephone to obtain heroin/fentanyl. Victim 1 agreed to meet Agbi at Hotel A in Gaithersburg, where Agbi was staying. Victim 1 texted Agbi when Victim 1 arrived at the location and Agbi went out the Victim 1’s car to complete the transaction. Surveillance video from Hotel A, as well as cell site location records, confirmed that Victim 1 was in the vicinity of the hotel and that Agbi left the hotel and walked towards Victim 1’s car. A short time later, Victim 1’s car left the area and went straight home, without making any other stops.
At about 10:00 p.m. on August 10, 2020, Victim 1 was found dead in her bedroom. Law enforcement officers located a clear plastic baggie containing .42 grams of fentanyl mixed with heroin and a straw next to Victim 1’s body. No other people were in Victim 1’s residence at the time of Victim 1’s death and Victim 1 lived alone. An autopsy determined that Victim 1’s cause of death was acute intoxication by the combined effects of fentanyl, despropionyl fentanyl, and morphine. Victim 1 was an otherwise healthy individual.
After August 25, 2020, Agbi relocated to Hotel B in Germantown, Maryland. On August 28, 2020, law enforcement officers executed a search warrant at Agbi’s hotel room in Hotel B. Officers recovered approximately 10 clear plastic capsules containing a total of approximately 2.76 grams of fentanyl mixed with heroin, knotted bags containing a total of approximately 2.6 grams of heroin mixed with fentanyl, and drug distribution paraphernalia, including a digital scale and sandwich bags used to package controlled substances (and which were consistent with the clear plastic baggie found with Victim 1 on August 10, 2020).
Following the search, Agbi was placed under arrest. Agbi admitted that he was a user and distributor of opioid drugs and that he met with Victim 1 on August 10 at Hotel A and provided Victim 1 with opioid drugs. He stated that Victim 1 used opioid drugs Agbi provided in his presence.
Agbi and the government have agreed that, if the Court accepts the plea agreement, Agbi will be sentenced to 114 months in federal prison. U.S. District Judge Paul W. Grimm has scheduled sentencing for September 20, 2022 at 9:00 a.m.
United States Attorney Erek L. Barron commended the DEA, the Montgomery County Police Department, the Prince George’s County Police Department the Maryland National Capital Park Police, the Metropolitan Police Department, and the City of Rockville Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Elizabeth Wright and Joel Crespo, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach and click on the “Save A Life” link.
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Missoula man admits trafficking and firearm crimes after law enforcement seize more than seven pounds of meth, fentanyl and a handgunRead the Press Release
MISSOULA — A Missoula man today admitted to drug trafficking and firearm crimes after law enforcement seized more than seven pounds of meth from his residence and vehicle, fentanyl and a handgun, U.S. Attorney Leif M. Johnson said.
Carlos Guatimea Aguirre, 35, pleaded guilty to possession with intent to distribute meth and fentanyl and to possession of a firearm in furtherance of a drug trafficking crime. Aguirre faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm crime.
U.S. Magistrate Judge Kathleen L. DeSoto presided. A sentencing date was set for Aug. 24 before U.S. District Judge Dana L. Christensen. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Aguirre was released pending further proceedings.
In court documents, the government alleged that from about September 2020 until October 2021, Aguirre and a co-defendant, were trafficking meth and fentanyl. Law enforcement conducted a traffic stop of Aguirre to execute a search warrant on the car. Aguirre removed a pouch from his chest as he got out of the car and placed it inside the vehicle. A subsequent search determined that the pouch contained a Glock 9mm handgun. Law enforcement also located a quarter pound of meth that was packaged for sale inside the car. Officers also served a search warrant on Aguirre’s residence and located 6.9 pounds of meth and fentanyl pills. Seven pounds of meth is the equivalent of about 25,368 doses. The investigation showed that Aguirre made 34 wire transfers from August 2019 to September 2021 to addresses in Billings; Fresno, California; Las Vegas, Nevada; and Albuquerque, New Mexico, totaling approximately $22,000, and that he traveled multiple times to Fresno and Sacramento, California, and to Spokane, Washington.
Assistant U.S. Attorney Jennifer S. Clark is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Methamphetamine Dealer Sentenced to 16 Years in Federal PrisonRead the Press Release
HARRISONBURG, Va. – A Mount Jackson, Virginia man, who was convicted following a three-day jury trial in January of 2022 of distributing methamphetamine and carrying a firearm while doing so, was sentenced today to 16 years in federal prison to be followed by five years of supervised release.
Merle Brook Stephens, 53, was found guilty in January of one count of knowingly or intentionally possessing with the intent to distribute 50 grams or more of methamphetamine, one count of carrying a firearm in relation to a drug trafficking crime, and one count of possession of a firearm by a previously convicted felon.
According to evidence presented at trial, as part of a larger law enforcement sting operation, Stephens was arrested on December 7, 2018 as he left his hotel room in Mount Jackson, Virginia. At the time of his arrest, Stephens was in possession of more than 323 grams of methamphetamine, a loaded .45 caliber semiautomatic handgun with five loaded magazines, $3,637 in cash, and a variety of drug paraphernalia items.
U.S. Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division, announced the sentence.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Shenandoah County Sheriff’s Office, the Northwest Virginia Regional Drug and Gang Task Force, the Mount Jackson Police Department, the Woodstock Police Department, the Timberville Police Department, and the Shenandoah County Commonwealth’s Attorney’s Office investigated the case.
Assistant U.S. Attorneys Rachel B. Swartz and Ronald M. Huber prosecuted the case.
Massachusetts Woman Pleads Guilty to Bank FraudRead the Press Release
CONCORD - Donna Silva, 44, of Lowell, Massachusetts pleaded guilty in federal court to bank fraud, United States Attorney Jane E. Young announced today.
According to court documents and statements made in court, in February of 2019, Silva was involved in a scheme to defraud several financial institutions. The defendants in the scheme applied for and obtained multiple loans to purchase cars purportedly sold by Allied Imports, a Manchester car wholesaler, and Cap’s Auto Sales, a Manchester car retailer. The sales were fraudulent because the defendants never owned or greatly inflated the value of the cars. In total, the defendants defrauded the financial institutions of several hundred thousand dollars.
Silva signed a fraudulent purchase contract and Assignment of Title with Cap’s Auto Sales purporting to state that she would buy a car sold by the company. She then used the documents to apply for and obtain a car loan secured by the vehicle, which Cap’s Auto Sales did not own or have the title to.
Silva is scheduled to be sentenced on August 15, 2022.
“By submitting false documents to obtain fraudulent loans, the defendant participated in a substantial criminal scheme,” said U.S. Attorney Young. “As this case demonstrates, we work closely with our law enforcement partners to identify and prosecute those who commit fraud. By working together, we strive to hold these criminals accountable for their unlawful conduct and seek justice for victims.”
This matter was investigated by the United States Secret Service and U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Charles Rombeau and Special Assistant U.S. Attorney Alexander S. Chen.
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