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Monday 14 March 2022
Sheridan Man Sentenced on Methamphetamine and Firearm ChargesRead the Press Release
United States Attorney Bob Murray announced today that ADAM LEE GODWIN, age 35, of Sheridan, Wyoming was sentenced for being an unlawful user of a controlled substance in possession of a firearm and for possessing with the intent to distribute methamphetamine at a sentencing hearing held before Federal District Court Judge Nancy D. Freudenthal on March 7, 2022. He was sentenced to 79 months of imprisonment and three years of supervised release, to be served concurrently to a state sentence, and ordered to pay a $200 assessment.
On April 13, 2021, agents of the Sheridan County Sheriff’s Office went to a residence in Sheridan, Wyoming, to locate Godwin and execute an outstanding state arrest warrant. While executing the warrant officers recovered 2.1 ounces of methamphetamine and a firearm. Godwin pled guilty to the charges on December 15, 2021.
This crime was investigated by the Bureau of Alcohol, Tobacco and Firearms and the Sheridan County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney Jonathon C. Coppom.
Case Number: 0:21-cr-00112-NDF
Russian Oligarch Charged with Making Illegal Political ContributionsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of an indictment against ANDREY MURAVIEV, a/k/a “Andrey Muravyov,” a Russian citizen, charging him with making illegal political contributions as a foreign national, and conspiring to make illegal political contributions as a foreign national in the names of straw donors. Muraviev is charged with conspiring with Lev Parnas, Andrey Kukushkin, and Igor Fruman, and others, who were convicted at trial or have pleaded guilty to these crimes.
U.S. Attorney Damian Williams said: “As alleged, Andrey Muraviev, a Russian national, attempted to influence the 2018 elections by conspiring to push a million dollars of his foreign funds to candidates and campaigns. He attempted to corrupt our political system to advance his business interests. The Southern District of New York is committed to rooting out efforts by foreigners to interfere with our elections.”
FBI Assistant Director-in-Charge Michael J. Driscoll said: “As alleged, Muraviev, a Russian foreign national, made illegal political contributions and conspired with Parnas, Kukushkin and Fruman to obscure their true source. The money Muraviev injected into our political system, as alleged, was directed to politicians with views favorable to his business interests and those of his co-conspirators. As today’s action demonstrates, we will continue to aggressively pursue all those who seek to illegally effect our nation’s elections.”
As alleged in the indictment against MURAVIEV and as proven during the trial against his co-conspirators:
In the spring of 2018, MURAVIEV, Kukushkin, Fruman, and Parnas decided to launch a business aimed at acquiring retail cannabis and marijuana licenses in the United States. As part of that plan, MURAVIEV agreed to wire $1 million, through a series of bank accounts, to Fruman and Parnas to fund hundreds of thousands of dollars in political contributions they had made or promised to make before the elections in November 2018. The purpose of the donations was to curry favor with candidates that might be able to help MURAVIEV and his co-conspirators obtain cannabis and marijuana licenses. MURAVIEV’s money was used to reimburse and fund federal and state political donations in Florida, Nevada, and Texas, and MURAVIEV also agreed that the funds would pay for donations to politicians in New York and New Jersey. MURAVIEV traveled to Nevada as part of these efforts, and received regular updates from Kukushkin about the co-conspirators’ progress politically. To obscure the fact that MURAVIEV was the true donor of the money, the funds were sent to a business bank account controlled by FRUMAN’s brother, and then the donations were made in FRUMAN’s and PARNAS’s names.
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MURAVIEV, 47, of Russia, is charged with (1) conspiring to make contributions and donations by a foreign national and in the name of another person, which carries a maximum sentence of five years in prison; and (2) making contributions by a foreign national, which carries a maximum sentence of five years in prison. The maximum statutory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by a judge.
MURAVIEV is believed to be in Russia and remains at large. The case is assigned to Southern District of New York U.S. District Judge J. Paul Oetken, who presided over the trial of Parnas and Kukushkin.
Mr. Williams praised the outstanding investigative work of the FBI and its New York Field Office.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Rebekah Donaleski, Aline R. Flodr, Nicolas Roos, and Hagan Scotten are in charge of the prosecution.
The charges contained in the Indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
Roanoke Man Pleads Guilty to Possessing Stolen FirearmRead the Press Release
ROANOKE, Va. – A Roanoke man, who possessed a stolen firearm in the course of a domestic disturbance incident in 2018, pleaded guilty to a federal firearms violation.
Joshua Lamont Blake, 41, pleaded guilty last week to one count of possession of a stolen firearm.
According to court documents, on September 24, 2018, law enforcement responded to a call regarding a domestic disturbance at an address in northwest Roanoke, during which officers encountered Blake. After learning that Blake had outstanding warrants, law enforcement placed Blake under arrest and was found in possession of a stolen Ruger .380 pistol. Blake denied stealing the firearm but admitted he had reason to know it was reported stolen.
Blake is scheduled to be sentenced on June 24, 2022 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
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 and the Roanoke City Police Department are investigating the case.
Assistant U.S. Attorneys Michael Baudinet and Matthew Miller are prosecuting the case.
Rhode Island Woman Charged with Falsifying Military Service; Fraudulently Collecting Hundreds of Thousands of Dollars in Charitable Contributions Earmarked for Wounded and Other VeteransRead the Press Release
PROVIDENCE, R.I. – A Warwick woman who is alleged to have (1) fraudulently claimed to be a wounded United States Marine Corps (USMC) veteran and recipient of a Purple Heart and Bronze Star, and (2) schemed to collect hundreds of thousands of dollars in veteran benefits and charitable contributions, was arrested today by federal agents and made her initial appearance in federal court in Providence, announced United States Attorney Zachary A. Cunha.
Sarah Jane Cavanaugh, 31, is charged by way of a federal criminal complaint with using forged or counterfeited military discharge certificates, wire fraud, fraudulently holding herself out to be a medal recipient with intent to obtain money, property, or other tangible benefit, and aggravated identity theft.
Charging documents allege the following:
- Cavanaugh used the personal identifying information of an actual Marine, and falsely claimed that she served in the USMC from 2009-2016; was honorably discharged; achieved the rank of Corporal; and was wounded in action in Iraq/Afghanistan.
- Cavanaugh used an official Veterans Administration (VA) email account, which was issued to her as a VA employee, to purchase and later display on a Marine uniform a Purple Heart and Bronze Star. She had not been awarded either award. In fact, a search of the Defense Personnel Records Information Retrieval System, a database containing military-service records, provided no records or information pertaining to Cavanaugh.
It is further alleged that Cavanaugh:
- Created and submitted falsified military discharge documents, medical diagnosis, and medical bills to “HunterSeven,” an organization that provides monetary aid to veterans in need. Cavanaugh did so to request financial assistance and falsely claim that she was being treated for cancer from exposure to burn pits in Iraq/Afghanistan and inhaling particulate matter in the aftermath of an Improvised Explosive Device.
- Posing as a combat veteran, Cavanaugh contacted “Code of Support,” and collected $18,472 in financial assistance for mortgage payments, repairs to her home furnace, a gym membership, and for other unspecified bills,
- Posing as a combat veteran diagnosed with cancer related to her military service, Cavanaugh collected approximately $4,700 from an internet-based fundraising website,
- Claiming to be a Purple Heart and Bronze Star recipient, Cavanaugh collected approximately $16,000 from a charity that provides therapy for veterans through art programs, and
- Posing as a wounded combat veteran, Cavanaugh collected $207,000 from the Wounded Warrior organization to pay for groceries and physical therapy sessions.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Cavanaugh was arrested by federal agents on Monday and appeared before U.S. District Court Magistrate Judge Lincoln D. Almond. She was released on $50,000 unsecured bond.
The matter is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron and investigated by the U.S. Department of Veterans Affairs Office of Inspector General, U.S. Department of Veterans Affairs Police Service, and the FBI, with the assistance of the U.S. Defense Criminal Investigative Service, U.S. Naval Criminal Investigative Service, U.S. Postal Inspection Service, and Internal Revenue Service Criminal Investigations.
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Repeat offender sentenced to 2 years in prison for illegally possessing firearmsRead the Press Release
Tacoma – A 40-year-old Puyallup, Washington, man was sentenced today in U.S. District Court in Tacoma to 24 months in prison for being a felon in possession of two firearms, announced U.S. Attorney Nick Brown. Christopher S. Hammond was arrested March 3, 2021, when a search of his apartment revealed a handgun with the serial number removed, and a rifle. Hammond is prohibited from possessing firearms due to prior criminal convictions. At the sentencing hearing U.S. District Judge Benjamin H. Settle noted that Hammond blamed his offense on drug addiction. “The drug addiction doesn’t explain the offense… Drugs and firearms are a bad mix,” Judge Settle said.
According to records filed in the case, Hammond was convicted in 2013, of being a felon in possession of a firearm. He was sentenced to 69 months in prison. Following prison, while on federal supervised release, Hammond possessed two additional firearms – even though he clearly knew he was prohibited from having guns. Probation officers searched Hammond’s home after a tipster sent them a photo of Hammond holding a firearm.
When he spoke to the court, Hammond said, “It took me a long time to realize that I am an addict. I need help.”
Judge Settle reduced Hammond’s sentence from the 30 months recommended by all parties to 24 months. “I see your addiction and your genuine desire to live a clean and productive life,” Judge Settle said.
Hammond pleaded guilty December 14, 2021. Following the 24-month prison term he will be on 3 years of supervised release.
The case was investigated by the Federal Probation Office with assistance from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
The case was prosecuted by Assistant United States Attorney Zachary Dillon.
Registered Sex Offender Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 120 months’ imprisonment for possessing multiple images and videos depicting child sexual abuse, U.S. Attorney Philip R. Sellinger announced.
Robert Klemt, 35, of Wayne, New Jersey previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an Information charging him with one count of possessing child pornography. Judge Hayden imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
In June 2020, agents with the Department of Homeland Security – Homeland Security Investigations approached Klemt at his residence after receiving information suggesting that Klemt had accessed a website containing images of child sexual abuse. Law enforcement subsequently discovered on Klemt’s laptop computer over 70 images and videos depicting the sexual abuse of children.
Klemt was previously convicted of endangering the welfare of a child/distribution of child pornography in Essex County in 2014.
In addition to the prison term, Judge Hayden also sentenced Klemt to 10 years of supervised release. Klemt must also register as a sex offender.
U.S. Attorney Sellinger credited special agents with the Department of Homeland Security – Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Criminal Division in Newark.
Rapid City Man Sentenced to Federal Prison for Illegal Possession of Firearm and AmmunitionRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm and Ammunition by a Prohibited Person was sentenced on March 7, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Marcos Bear Shield, age 26, was sentenced to two years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Bear Shield was indicted by a federal grand jury on March 18, 2021, and pleaded guilty on November 5, 2021. The conviction stems from Bear Shield, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing a Smith & Wesson, model 442 Centennial Airweight, .38 Smith & Wesson Special caliber, double-action revolver and .38 Special caliber ammunition, which was found after Bear Shield came into contact with law enforcement in May 2020 at Rapid City.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Bear Shield was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Illegal Possession of FirearmRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on March 4, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Joshua Clark, age 34, was sentenced to two years in federal prison, followed by three years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Clark was indicted by a federal grand jury on March 18, 2021, and pleaded guilty on October 13, 2021. The conviction stems from Clark, a previously convicted felon who is prohibited from possessing firearms, knowingly possessing an O.F. Mossberg & Sons Incorporated, model M590A1, 12 Gauge, pump-action shotgun, and a Sturm, Ruger & Company Incorporated, model New Model Single-Six, .22 Long Rifle caliber, single-action revolver, which he had taken from a residence in New Underwood, South Dakota, in November 2020.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Clark was immediately remanded to the custody of the U.S. Marshals Service.
Rapid City Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Trevor Red Bird, age 33, was indicted on March 8, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 11, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Red Bird was convicted of Abusive Sexual Contact in May 2008. As a result of this conviction, he is required to register as a sex offender. It is alleged that between December 7, 2021, and February 1, 2022, Red Bird a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Red Bird is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Red Bird was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Prior Felon Pleads Guilty to Firearms PossessionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney Trini E. Ross announced today that Ray Chrostowski, 27, of Cheektowaga, NY, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge John L. Sinatra, Jr. The charges carry a maximum of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated in August 2021, Chrostowski was convicted of breaking into and larceny from interstate carrier facilities and sentenced to serve 18 months in prison by Judge Sinatra. He was expected to self-surrender to the custody of the Bureau of Prisons on September 28, 2021. On September 14, 2021, Chrostowski was detained by investigators as he left his Bright Street residence. Investigators then executed a search warrant at the residence seizing an assault rifle and a semiautomatic pistol, two sets of body armor, and various rounds of assorted ammunition.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Stephen Belongia, the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia, and the Cheektowaga Police Department, under the direction of Chief Brian Gould.
Sentencing is scheduled for July 12, 2022, at 10:00 a.m. before Judge Sinatra.
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Portland Tax Preparer Sentenced to Federal Prison for Filing False Tax Returns and Stealing Public BenefitsRead the Press Release
PORTLAND, Ore.—A Portland, Oregon tax return preparer was sentenced to federal prison today for preparing and filing false and fraudulent tax returns for clients and for herself.
Elizabeth Munoz, 38, was sentenced to 21 months in federal prison and three years’ supervised release. Munoz was also ordered to pay $1.8 million in restitution to the IRS and $82,400 to the Oregon Department of Human Services.
According to court documents, from 2015 to 2018, Munoz operated a federal and state income tax return preparation business from her home in Southeast Portland. Munoz advertised on business cards that she would obtain for her clients the “Biggest Refund Guaranteed.” Munoz prepared more than 1,300 false and fraudulent individual income tax returns for more than 600 clients, resulting in an approximately $1.8 million tax loss through fraudulent refunds.
Munoz used fraudulent tax schedules, tax credits, and filing statuses to carry out her refund fraud. Though Munoz charged her clients up to $150 per tax return, she reported no business income on her own personal income tax returns from 2014 through 2017, causing a $22,764 tax loss. Munoz additionally submitted six years’ worth of false applications to obtain more than $82,000 in public benefits designed to support poor and indigent community members.
On August 5, 2020, a federal grand jury in Portland returned a 25-count indictment charging Munoz with filing false income tax returns and aiding and assisting in the preparation of false income tax returns. On December 15, 2020, Munoz pleaded guilty to 13 counts of preparing and filing false income tax returns for clients and four counts of filing false income tax returns for herself.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation (IRS:CI) and the Oregon Department of Human Services (Oregon DHS). It was prosecuted by Seth D. Uram, Assistant U.S. Attorney for the District of Oregon.
IRS:CI reminds taxpayers to be careful when selecting a tax professional. Though most tax professionals provide honest, high-quality service, a minority of dishonest preparers operate each filing season perpetrating refund fraud, identity theft and other scams that hurt innocent taxpayers. Well-intentioned taxpayers can be misled by preparers who deceive people into taking credits or deductions they aren’t entitled to claim.
Resources to help taxpayers, including tips on choosing a preparer, the differences in credentials and qualifications, as well as how to submit a complaint regarding an unscrupulous tax return preparer, are available at www.irs.gov/chooseataxpro.
Pittsfield Man Sentenced for Failing to Register as a Sex OffenderRead the Press Release
BOSTON – A Pittsfield man was sentenced today in federal court in Springfield for failing to register as a sex offender.
Jarrett Woodruff, 35, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years in prison and five years of supervised release. On Nov. 12, 2021, Woodruff pleaded guilty to one count of failure to register as a sex offender.
In August 2018, Woodruff was convicted in Pittsfield District Court of three counts of indecent assault and battery on a child under 14 years of age and was sentenced to 251 days in prison. Because Woodruff had already served 251 days during pre-trial detention, he was placed on probation with conditions and was required to register as a Level 3 sex offender. While on probation, Woodruff fled from Massachusetts to Ohio without notifying authorities of his whereabouts and did not register as a sex offender in Ohio.
In February 2019, a Massachusetts state court issued an arrest warrant for Woodruff on a new child sexual abuse charge. Woodruff subsequently fled from Ohio to Georgia, where he again did not register as a sex offender. In October 2020, Woodruff was located at an apartment in Dunwoody, Ga., where he attempted to evade arrest by climbing into the adjoining neighbors’ apartment balconies before jumping to the ground where he was apprehended.
United States Attorney Rachael S. Rollins and Douglas Bartlett, Acting United States Marshal for the District of Massachusetts made the announcement. Assistant U.S. Attorney Alex J. Grant of Rollins’ Springfield Branch Office prosecuted 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 https://www.justice.gov/psc.
Pike County Man Sentenced to Twenty Years’ Imprisonment for Production of Child PornographyRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jerald Ungerer, age 34, formerly of Milford, Pennsylvania, was sentenced on March 11, 2022, to twenty years’ imprisonment by U.S. District Court Judge Malachy E. Mannion for the charge of production of child pornography. Upon release from prison, Ungerer will be supervised by a probation officer for a period of ten years.
According to United States Attorney John C. Gurganus, Ungerer previously pleaded guilty in October 2021, and admitted to producing multiple videos and images of minors engaged in sexually explicit conduct. In March 2020, investigators served a search warrant at Ungerer’s residence in Pike County and seized multiple computer hard drives and other electronic devices containing child pornography, much of which was produced by Ungerer.
The charges stem from an investigation conducted by the Federal Bureau of Investigation, the Pennsylvania State Police and the Northeast Computer Crimes Task Force. Assistant United States Attorney Robert J. O’Hara 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 www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Out of state man admits to smuggling Iran nationalsRead the Press Release
CORPUS CHRISTI, Texas – A 62-year-old man pleaded guilty to attempting to smuggle two Iranian citizens into the country, announced U.S. Attorney Jennifer B. Lowery.
Gholamreza Hosseinpour, Fairfax, Virginia, pleaded guilty to two counts of transporting illegal aliens within the United States.
As part of his plea, he admitted that on Dec. 19, 2021, he flew from his home state to Texas. He rented a vehicle in San Antonio and drove to McAllen to pick up two individuals that had crossed into the United States from Mexico. Hosseinpour then drove them north to the Javier Vega Jr. Border Patrol (BP) checkpoint located near Sarita.
There, law enforcement conducted an initial inspection, at which time the two individuals could not answer questions about their citizenship. Authorities ultimately determined each individual was from Iran and illegally present in the United States.
U.S. District Judge David S. Morales will impose sentencing June 9. At that time, Hosseinpour faces up to five years of imprisonment and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
BP conducted the investigation. Assistant U.S. Attorneys Dennis Robinson and Molly Smith are prosecuting the case.
Ohio Man Admits Role in Multimillion-Dollar Scheme to Defraud Health Care Benefit ProgramsRead the Press Release
NEWARK, N.J. – An Ohio man pleaded guilty today to his role in a large-scale, multilevel marketing scheme to defraud private and federally funded health care benefit programs, U.S. Attorney Philip R. Sellinger announced.
Kent Courtheyn, 38, of Kent, Ohio, owner and operator of two marketing companies involved in the sales and marketing of compounded medications – IntegriMed Solutions LLC (IntegriMed) and KA Compounding LLC (KA Compounding) – pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with conspiracy to defraud the United States by committing health care fraud and violating the anti-kickback statute.
According to documents filed in this case and statements made in court:
TRICARE is a health care entitlement program of the U.S. Department of Defense (DoD) Military Health System that provides coverage for DoD beneficiaries worldwide, including active duty service members, National Guard and Reserve members, retirees, their families, and survivors. Compounded medications are specialty medications prepared by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a medical professional determines that an FDA-approved medication does not meet the health needs of a particular patient, such as when a patient is allergic to a dye or other ingredient or when a patient cannot consume a medication by traditional means.
From July 2014 through July 2016, Courtheyn, a former medical device sales representative, ran a large-scale scheme to defraud federally funded health care benefit programs, such as TRICARE, as well as privately funded health care benefit programs. Through IntegriMed and KA Compounding, Courtheyn recruited individuals to submit fraudulent claims for medically unnecessary compounded medications, such as pain creams, scar creams, wound creams, and metabolic vitamins, without regard to medical necessity. In total, Courtheyn defrauded health care benefit programs, including TRICARE, of at least $5.8 million.
Courtheyn faces a statutory maximum of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. Sentencing is scheduled for July 20, 2022.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Osmar J. Benvenuto, Deputy Chief of the Criminal Division in Newark.
North Little Rock Man Charged with Arson in Connection with Two Coffee Shop FiresRead the Press Release
LITTLE ROCK— A North Little Rock man has been arrested and charged with arson following two fires at Little Rock coffee shops. Trent Tyrone Smith, 48, was charged in a criminal complaint on March 11, 2022. He was arraigned today before United States Magistrate Judge J. Thomas Ray.
On March 3, 2022, Little Rock Fire Department responded to calls from two separate locations of The Grind Coffee Bistro, one in Pleasant Ridge Town Center and one on 21st Street, both in Little Rock. Both locations had been deliberately set on fire. The coffee shop owner identified Smith as her former boyfriend. Smith was arrested on March 11, 2022.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance from the Little Rock Fire Department Fire Marshal’s Office and is being prosecuted by Assistant United States Attorney Benecia Moore.
A criminal complaint only contains allegations. A defendant is presumed innocent unless and until proven guilty.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
New Cumberland Man Sentenced to 18 Months in Prison for Pandemic Unemployment FraudRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Andrew Marszalek, age 24, of New Cumberland, Pennsylvania, was sentenced to 18 months' imprisonment by United States District Court Judge Christopher C. Conner for pandemic unemployment fraud.
According to United States Attorney John C. Gurganus, Marszalek pled guilty to conspiring with five others to file false claims for unemployment assistance during the pandemic. These defendants gathered personal identification information from inmates housed within the Pennsylvania Department of Corrections system and filed unemployment claims. The payments were mailed to particular addresses in New Cumberland, Pennsylvania, where they were gathered and the funds accessed. The conspirators arranged for the payment of tens of thousands of dollars in benefits which they were not entitled to obtain.
Nicholas Baggio, age 32, an inmate at the State Correctional Institution at Mahanoy, entered a guilty plea to conspiracy to commit mail fraud. He is awaiting sentencing.
Alexis Figueroa, age 31, of Philadelphia, Oscar Martinez, age 28, an inmate at the State Correctional Institution at Rockview, and Jeovanny Shultz, age 28, an inmate at the State Correctional Institution at Mercer, are awaiting trial. Joshua Powles, age 33, of Philadelphia, is wanted as a fugitive.
The case was investigated by the U.S. Postal Inspection Service and the United States Department of Labor Office of Inspector General. Assistant U.S. Attorney Michael Consiglio is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Nevada Apartment Complex Manager Pleads Guilty to Violating Clean Air Act Asbestos Regulations at Two FacilitiesRead the Press Release
A California man pleaded guilty to renovating two apartment complexes in violation of federal Clean Air Act regulations intended to prevent human exposure to toxic airborne asbestos fibers.
Bobby Babak Khalili, 46, of Los Angeles, entered a guilty plea to two counts of violating the Clean Air Act before U.S. District Judge James C. Mahan in Las Vegas, Nevada. Sentencing is currently scheduled for June 15. Khalili faces up to five years in prison and a $250,000 fine for each count, and up to three years of supervised release.
Khalili was indicted by a grand jury sitting in the District of Nevada in September 2019, in connection with asbestos-related Clean Air Act violations at a Las Vegas apartment complex. The grand jury later returned a superseding indictment against Khalili in July 2021, in connection with new Clean Air Act asbestos violations at a second apartment complex, which Khalili now admits he committed while on pretrial release for the first set of charges.
As part of his guilty plea, Khalili acknowledged that, on behalf of his company Las Vegas Apartments LLC, he oversaw renovation activities at both apartment complexes. He further admitted that he was aware of asbestos-containing materials at both buildings, and that he hired untrained individuals to tear out those materials without following asbestos work practice standards prescribed by the Clean Air Act. Those work practice standards require that asbestos-containing materials be safely removed prior to general renovation activity taking place. Asbestos-containing materials must be kept wet at all times to prevent dust escaping, sealed in leak-proof bags and disposed of at facilities authorized to accept asbestos waste. At both apartment buildings, untrained laborers removed asbestos-containing drywall and ceiling texture without wetting or containment, releasing asbestos fibers into the surrounding atmosphere.
Khalili also admitted to taking steps to evade law enforcement at each site. At the first apartment complex, Khalili attempted to have a dumpster filled with asbestos waste removed from the site when inspectors from the Clark County Department of Air Quality discovered asbestos-related violations. At the second complex, where he oversaw illegal renovations while on pretrial release, he instructed the contractor in charge of the renovation to lie to inspectors about who owned and oversaw the project, in an attempt to blame another person for the Clean Air Act violations he knowingly committed.
Inhalation of airborne asbestos fibers has been determined to cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. Congress and the EPA have determined that there is no safe level of exposure to asbestos.
“The defendant placed workers and community members in harm’s way when he knowingly violated Clean Air Act requirements for the safe handling of asbestos, and then did it again while already under indictment,” said Assistant Attorney General Todd Kim of the Environment and Natural Resources Division. “The Department of Justice will continue to hold accountable those who defy federal law aimed at protecting the public from adverse health effects of asbestos.”
“Exposure to asbestos is associated with life-threatening illnesses and serious respiratory diseases,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “By failing to follow required standards for properly handling asbestos, the defendant put the health of our communities — including workers at two apartment renovation sites — at risk. This case reflects our office’s commitment to working with our state and federal partners to enforce environmental laws that protect Nevadans from hazardous pollutants.”
“By not removing asbestos – a known carcinogen – safely from the buildings he was working on, the defendant placed the health of his apartment residents and the surrounding community at risk,” said Special Agent in Charge Scot Adair of the EPA’s Criminal Enforcement Program in Nevada. “Today’s agreement demonstrates that those who violate those laws will be held responsible.”
Special agents of the EPA and employees of the Clark County Department of Air Quality investigated the case. Trial Attorney Cassandra Barnum of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Jean Ripley for the District of Nevada prosecuted the case.
Multiple Co-Conspirators Sentenced to Federal Prison for Drug TraffickingRead the Press Release
United States Attorney Dennis R. Holmes announced that six members of a drug conspiracy based out of the Martin, South Dakota, area and the Pine Ridge Reservation have been convicted of Conspiracy to Distribute a Controlled Substance. Four of the members have been sentenced in U.S. District Court by District Judge Jeffrey L. Viken, while two more await sentencing. One additional person will stand trial in May.
Shadow Jensen, age 32, Wanblee, South Dakota, was sentenced to 10 years in federal prison, followed by five years of supervised release; Beau Imitates Dog, age 40, Martin, South Dakota, was sentenced to 10 years in federal prison, followed by five years of supervised release; Frank Milk, age 44, Wanblee, South Dakota, was sentenced to 13 years in federal prison, followed by five years of supervised release; and Paul Moore, age 38, Kyle, South Dakota, was sentenced to 14 years in federal prison, followed by five years of supervised release.
Brett Schrum and Richard Bettelyoun have pleaded guilty and are awaiting sentencing.
Co-defendant Tracy Jones has pleaded not guilty and will stand trial in May 2022. She is presumed innocent until and unless proven guilty.
The seven co-defendants were indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on November 10, 2020.
During the course of the conspiracy, pounds of methamphetamine were trafficked into South Dakota, primarily from Colorado. Schrum, of Ft. Morgan, Colorado, brought the methamphetamine to various locations in South Dakota, primarily on the Pine Ridge reservation. The other six co-defendants are from South Dakota.
This case was investigated by the Badlands Safe Trails Drug Enforcement Task Force, which is comprised of agents from the Federal Bureau of Investigation, Oglala Sioux Tribe Department of Public Safety, South Dakota Division of Criminal Investigation, Bureau of Indian Affairs Division of Drug Enforcement, and the Martin Police Department. Assistant U.S. Attorney Gina S. Nelson prosecuted the case.
Jensen, Imitates Dog, Milk, and Moore were immediately turned over to the custody of the U.S. Marshals Service.
Mount Carmel Man Indicted for Trafficking Methamphetamine, Fentanyl, and HeroinRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Glen Taormina, age 46, of Mount Carmel, Pennsylvania, was indicted by a federal grand jury on drug trafficking charges.
According to United States Attorney John C. Gurganus, the two-count indictment alleges that Taormina distributed 50 grams and more of methamphetamine on June 16, 2021, and then, on June 17, 2022, he possessed with the intent to distribute another 50 grams and more of methamphetamine, 40 grams and more of fentanyl, and detectable amounts of heroin in Northumberland County. The indictment also seeks the criminal forfeiture of $10,754 in cash recovered on June 17, 2021.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Agency, and the Pennsylvania State Police. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and other opioids. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit opioid related offenses.
The maximum penalty under federal law for each of these offenses is 40 years’ imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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Morgan County Man Sentenced to Fifteen Years in Prison for Attempted Enticement of a MinorRead the Press Release
SPRINGFIELD, Ill. – A Woodson, Illinois, man, Corey Meador, 32, of the 400 block of South Sheppard Street was sentenced today to fifteen years in prison, to be followed by fifteen years of supervised release, for attempted enticement of a minor.
At the sentencing hearing, the government presented evidence that on or between February 11 and April 8, 2021, Meador used facilities and means of interstate commerce, the internet and a cellular telephone, to knowingly attempt to persuade, induce, and entice an individual who he believed had not attained the age of 18 years to engage in sexual activity. Specifically, the evidence showed Meador agreed to pay money to engage in sexual activity with a person he believed was an eleven-year-old child.
Also at the hearing, U.S. District Judge Sue E. Myerscough found Meador had engaged in extended, disturbing conversations regarding the sexual abuse of an eleven-year-old and payment for sex with both money and candy. After months of conversations and planning, Meador drove to the meeting location to engage in the illicit relationship with the child and was arrested.
The statutory penalties for attempted enticement of a minor are not less than ten years and up to life imprisonment, not more than a $250,000 fine, and up to a life term of supervised release.
The Federal Bureau of Investigation, Springfield Division, and the Illinois State Police investigated the case. Assistant U.S. Attorney Tanner K. Jacobs represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Mission Man and Mellette County Woman Indicted for Burglary, Assault, and Firearm ChargesRead the Press Release
United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man and a Mellette County, South Dakota, woman have been indicted by a federal grand jury for First Degree Burglary, Assault With a Dangerous Weapon, and Using and Carrying a Firearm During and in Relation to a Crime of Violence.
Stephen Fallis, age 29, and Sativa Looking Cloud, age 20, were indicted on March 8, 2022. They both appeared before U.S. Magistrate Judge Mark A. Moreno on March 10, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on February 16, 2022, in Mellette County, Fallis and Looking Cloud unlawfully entered and remained in a residence, and assaulted two victims with handguns.
The charges are merely accusations and Fallis and Looking Cloud are presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Fallis and Looking Cloud were remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for April 26, 2022.
Mission Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on March 14, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Wamblee One Star, a/k/a Wamblee Kane, age 40, was sentenced to 24 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
One Star was indicted by a federal grand jury on December 8, 2020. He pled guilty on December 2, 2021.
The conviction stems from an incident on November 28, 2020, in Todd County, South Dakota, when One Star entered a convenience store and took the keys to a car from an individual. When the victim attempted to get his keys back, One Star assaulted him with a knife causing a laceration to his hand.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
One Star was immediately turned over to the custody of the U.S. Marshals Service.
Minneapolis Man Sentenced to 30 Years in Prison for Violent Armed Robbery of a Minneapolis BusinessRead the Press Release
ST. PAUL, Minn. – A Minneapolis man has been sentenced to 360 months in prison followed by three years of supervised release for an armed Hobbs Act robbery that resulted in the shooting death of a store clerk. Acting U.S. Attorney Charles J. Kovats made the announcement after Senior U.S. District Judge Donovan W. Frank sentenced the defendant.
According to court documents, on April 27, 2021, Marlow Ramsey Carson, 31, robbed the Blue Sky Wireless and West Bend Furniture stores located in the Cedar-Riverside neighborhood of Minneapolis. During the robbery, Carson stuck a handgun under a plexiglass barrier on the counter and demanded money from the store clerk. When Carson attempted to get behind the counter, the store clerk tried to shut the door to keep Carson out. Carson shot the store clerk in the chest from pointblank range before running out of the store into a car parked on the street and fleeing from the scene. The store clerk was transported by ambulance to the emergency room where he was later pronounced dead from the gunshot wound.
On December 10, 2021, Carson pleaded guilty to one count of interference with commerce by robbery and one count of possession of ammunition as a felon. Carson has prior felony convictions and is therefore prohibited from possessing firearms or ammunition at any time.
This case was the result of an investigation conducted by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Minneapolis Police Department.
Assistant U.S. Attorneys Harry M. Jacobs and Samantha H. Bates prosecuted the case.
Metairie Woman Indicted for Theft of More Than $76,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that RACHEL COONEY, age 37, of Metairie, Louisiana was indicted on March 11, 2022 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the indictment, beginning in November 2015 and continuing through January 2020, COONEY collected Social Security Administration benefits paid to a deceased relative. It is alleged that, in total, COONEY fraudulently received approximately $76,139 in Social Security Administration benefits to which she was not entitled.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, COONEY faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Rachal Cassagne.
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McKesson Agrees to Pay $1 Million to Resolve Recordkeeping Violations under the Controlled Substances ActRead the Press Release
Memphis, TN - McKesson Corporation (McKesson) agreed to pay a $1 million civil penalty to resolve alleged Controlled Substances Act (CSA) record-keeping violations, the Department of Justice announced today.
The resolution stems from allegations that McKesson's packaging subsidiary, RxPak, located in Memphis, Tennessee, engaged in a continuing pattern of recordkeeping deficiencies. The alleged recordkeeping deficiencies include failing to take an initial inventory of controlled substances received; failing to maintain complete and accurate records of controlled substances received, manufactured, sold, delivered or disposed of; and failing to maintain complete and accurate DEA-222 forms. Resolved allegations also include that McKesson-RxPak transferred tens of thousands of containers of Schedule II-V controlled substances without maintaining DEA-222 forms or invoices.
The investigation by the DEA Memphis Field Division identified more than 700 separate alleged recordkeeping violations and alleged overages, or excess quantities of drugs on hand, for eight controlled substances. The investigation also identified alleged discrepancies between McKesson RxPak's records compared with reports it made to the DEA of its sales of Scheduled II controlled substances.
Entities that engage in transactions regulated under the CSA have a duty to maintain records and report required information accurately,said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. When companies violate the CSA by failing to make accurate reports or to maintain required records, the department will work with our law enforcement partners to hold them accountable.
Enforcing recordkeeping requirements under the CSA is crucial, particularly during the current opioid epidemic, to ensure that often-misused controlled substances are transferred only through legitimate transactions, and not diverted to illegal channels,” said U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee.
“Prescription drug misuse and abuse continue to significantly contribute to the unprecedented opioid epidemic our country is currently facing,” said DEA Administrator Anne Milgram. “In order to protect the safety and health of Americans, all DEA registered entities have a basic obligation to maintain full and complete records, which is essential to preventing potentially addictive medications from being diverted from the legitimate drug supply. DEA will continue working with our partners to hold our registrants accountable when any CSA violation is detected.”
Assistant U.S. Attorney Eileen Kuo of the U.S. Attorney’s Office for the Western District of Tennessee handled the matter, working with Trial Attorney Scott Dahlquist of the Civil Division’s Consumer Protection Branch. Trial Attorneys Harry Matz and Anita J. Gay of the Criminal Division’s Narcotic and Dangerous Drug Section also offered valuable assistance.###
McKesson Agrees to Pay $1 Million to Resolve Recordkeeping Violations under the Controlled Substances ActRead the Press Release
McKesson Corporation (McKesson) agreed to pay a $1 million civil penalty to resolve alleged Controlled Substances Act (CSA) recordkeeping violations, the Department of Justice announced today.
The resolution stems from allegations that McKesson’s packaging subsidiary, RxPak, located in Memphis, Tennessee, engaged in a continuing pattern of recordkeeping deficiencies. The alleged recordkeeping deficiencies include failing to take an initial inventory of controlled substances received; failing to maintain complete and accurate records of controlled substances received, manufactured, sold, delivered or disposed of; and failing to maintain complete and accurate DEA-222 forms. Resolved allegations also include that McKesson-RxPak transferred tens of thousands of containers of Schedule II-V controlled substances without maintaining DEA-222 forms or invoices.
The investigation by the DEA Memphis Field Division identified more than 700 separate alleged recordkeeping violations and alleged overages, or excess quantities of drugs on hand, for eight controlled substances. The investigation also identified alleged discrepancies between McKesson RxPak’s records compared with reports it made to the DEA of its sales of Schedule II controlled substances.
“Entities that engage in transactions regulated under the CSA have a duty to maintain records and report required information accurately,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When companies violate the CSA by failing to make accurate reports or to maintain required records, the department will work with our law enforcement partners to hold them accountable.”
“Enforcing recordkeeping requirements under the CSA is crucial, particularly during the current opioid epidemic, to ensure that often-misused controlled substances are transferred only through legitimate transactions, and not diverted to illegal channels,” said U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee.
“Prescription drug misuse and abuse continue to significantly contribute to the unprecedented opioid epidemic our country is currently facing,” said DEA Administrator Anne Milgram. “In order to protect the safety and health of Americans, all DEA registered entities have a basic obligation to maintain full and complete records, which is essential to preventing potentially addictive medications from being diverted from the legitimate drug supply. DEA will continue working with our partners to hold our registrants accountable when any CSA violation is detected.”
Assistant U.S. Attorney Eileen Kuo of the U.S. Attorney’s Office for the Western District of Tennessee handled the matter, working with Trial Attorney Scott Dahlquist of the Civil Division’s Consumer Protection Branch. Trial Attorneys Harry Matz and Anita J. Gay of the Criminal Division’s Narcotic and Dangerous Drug Section also offered valuable assistance.
Maryland Man Pleads Guilty to Killing Construction Worker in Attack at Northeast Washington HomeRead the Press Release
WASHINGTON – George Miller, 27, of Capitol Heights, Maryland, pleaded guilty today to a charge of second-degree murder while armed for killing a construction worker in November 2020 in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Miller pleaded guilty in the Superior Court of the District of Columbia. He is to be sentenced on June 28, 2022, by the Honorable Robert Okun.
According to the government’s evidence, at approximately 1:40 p.m. on Nov. 18, 2020, Miller rode a bicycle toward a house that was under construction in the 1600 block of Olive Street NE. He entered the building and pointed a gun at Elias Flores, who was working at the site. He held Mr. Flores at gunpoint and took some of his property. Miller then shot Mr. Flores once in the head before fleeing the scene. When first responders arrived, Mr. Flores was not conscious but was breathing and suffering from a single gunshot wound to the head. Mr. Flores, 48, was taken to a hospital, where he died on Nov. 23, 2020.
Miller was arrested on Dec 9, 2020. He has been in custody ever since.
In announcing the plea, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialist Tasha Harris and Victim/Witness Advocate Karina Hernandez. Finally, they commended the work of Assistant U.S. Attorney Ariel L. Dean, who investigated and prosecuted the case.
Man Sentenced to Prison for Leading Counterfeiting ConspiracyRead the Press Release
A New Jersey man was sentenced today to 5 years in prison for manufacturing counterfeit currency.
According to court documents, Hollis Forteau, 38, was the leader of a multi-defendant counterfeiting conspiracy. The members of the conspiracy profited by using $100 counterfeit bills to purchase items at a retail store, and then returning those items at another branch of the same store in exchange for genuine currency. Forteau made the counterfeit notes by printing images of $100 bills onto bleached $1 bills. He distributed them to the rest of the group in exchange for a substantial cut of their proceeds.
The United States Secret Service’s counterfeit tracking application revealed that since 2019, over $235,000 in $100 counterfeit bills with similar characteristics have been used across the country.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Matthew Stohler, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson.
Assistant U.S. Attorneys Rebecca Gantt and Andrew Bosse prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-28.
Man Sentenced to Four Years for Machinegun CrimeRead the Press Release
A Dallas man who sold at least nine Glock “switches” – devices that convert ordinary semiautomatic pistols into fully automatic machineguns – was sentenced yesterday to four years in federal prison, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Martin Aviña, 34, pleaded guilty in July 2021 to conspiracy to possess unregistered firearms and possession of unregistered firearms. He was sentenced on Monday by U.S. District Judge David C. Godbey, who noted that selling Glock switches into the community was extremely dangerous.
According to plea papers, Mr. Aviña admitted he possessed – and later delivered for sale – at least nine Glock switches, which are classified as machineguns under federal law.
Unlike semiautomatic firearms, machineguns – weapons that can fire more than one round, without manual reloading, by single function of the trigger – are generally unlawful for non-licensed civilians under the National Firearms Act. A pistol equipped with a conversion device (also called an “auto sear”) can fire up to 1200 rounds per minute, a faster rate of fire than the standard M-4 machinegun issued to U.S. military service members.
Glock switches have been linked to gun violence across the country, including the murder of a Houston police officer last fall.
According to court filings, Mr. Aviña and his coconspirators, brothers José Bermudez and Victor Bermudez, sold 20 Glock switches to an undercover agent in four separate transactions. The switches were advertised for sale on Snapchat and sold for up to $900 apiece.
José and Victor Bermudez, who each pleaded guilty to conspiracy to possess unregistered firearms and possession of unregistered firearms, are awaiting sentencing.
“Conversion switches pose a grave threat to public safety,” said U.S. Attorney Chad Meacham. “Quick and easy to install, these devices turn everyday pistols into highly lethal machineguns. While we respect law-abiding citizens’ right to bear firearms, we cannot allow sears to proliferate on the streets of Dallas.”
“Mr. Avina knowingly put machine guns all over the streets of our Dallas neighborhoods. By utilizing social media, these defendants were able to advance their criminal enterprise and put the lives of others at risk. ATF is relentless in its pursuit to investigate and arrest all those involved in the illegal sales of these devices,” stated ATF Dallas Field Division Special Agent in Charge Jeffrey C. Boshek II.
The Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Office conducted the investigation with the help of the Dallas Police Department. Assistant U.S. Attorney Rebekah Ricketts is prosecuting the case.
MS-13 Gang Member Pleads Guilty to Conspiring to Kill Rival Mexican Mafia InmateRead the Press Release
ABINGDON, Va. – The last of five federal prisoners charged with conspiring to kill a fellow inmate at United States Penitentiary – Lee, a high-security federal prison for male inmates, pleaded guilty today to federal charges related to the attempted murder.
Carlos Alfredo Almonte, a.k.a. “Rabioso,” 31, pleaded guilty today to conspiracy to commit murder, attempt to commit murder, assault of an inmate with a dangerous weapon, and possession of a weapon by an inmate.
Last week, Julio Angel Chavez, Angel Moreno Guevara, and German Arquimedez Hernandez each pleaded guilty for their roles in the attempted murder of fellow inmate and victim “A.Z.” on January 15, 2020. Moris Alex Flores pleaded guilty in June 2021.
“To guarantee the civil rights of federal prisoners, they must be able to serve their sentences in environments that are safe and humane and without the fear of violence. My Office will continue to prioritize the prosecution of violent crimes that occur against those in federal custody, especially at USP-Lee.” United States Attorney Christopher R. Kavanaugh said today. “I am grateful to the efforts of the FBI and the Federal Bureau of Prisons for their work on bringing these five, violent offenders to justice.”
“Protecting the civil rights of every citizen and investigating violations thereof is a priority for the FBI, regardless of an individual's status in the community,” Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Division said today. “The victim being incarcerated did not lessen the importance of this investigation, as we worked closely with our partners to ensure those responsible for his death were brought to justice.”
According to court documents, Almonte, Flores, Chavez, Hernandez, and Guevara - all members of the international criminal gang MS-13 - attacked A.Z. – a member of the rival Mexican Mafia - on January 15, 2020, with the intent to commit murder. Flores and Guevara attacked A.Z. in his cell with metal shanks while Almonte, Chavez, and Hernandez blocked the cell door and fought off other inmates who attempted to interfere with the attack.
A.Z. sustained multiple stab wounds but ultimately survived the attack.
The Federal Bureau of Investigation and the Bureau of Prisons investigated the case.
Assistant U.S. Attorneys Anthony P. Giorno, Lena L. Busscher, Whit D. Pierce, and Daniel J. Murphy all collaborated on the prosecution of the case.
Lower Brule Woman Indicted for Assaulting a Federal OfficerRead the Press Release
United States Attorney Dennis R. Holmes announced that a Lower Brule, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Chassidy Crazy Bull, age 19, was indicted on March 8, 2022. She appeared before U.S. Magistrate Judge Mark A. Moreno on March 11, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on September 21, 2021, in Lyman County, South Dakota, Crazy Bull did assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Bureau of Indian Affairs, Lower Brule Agency, and that such conduct involved the use of motor vehicle as a dangerous weapon.
The charge is merely an accusation and Crazy Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency, South Dakota Highway Patrol, and the Federal Bureau of Investigation. Assistant U.S. Attorney Meghan Dilges is prosecuting the case.
Crazy Bull was released on bond pending trial. A trial date has not been set.
Las Vegas Apartment Complex Manager Pleads Guilty to Violating Clean Air Act Asbestos Regulations at Two FacilitiesRead the Press Release
LAS VEGAS – Bobby Babak Khalili, of Los Angeles, California, pleaded guilty to renovating two apartment complexes in violation of federal Clean Air Act regulations intended to prevent human exposure to toxic airborne asbestos fibers. Khalili, 46, entered a guilty plea to two counts of violating the Clean Air Act before U.S. District Judge James C. Mahan in Las Vegas, Nevada. Sentencing is currently scheduled for June 15, 2022. Khalili faces up to five years in prison and a $250,000 fine for each count, and up to three years of supervised release.
Khalili was indicted by a grand jury sitting in the District of Nevada in September 2019, in connection with asbestos-related Clean Air Act violations at a Las Vegas apartment complex. The grand jury later returned a Superseding Indictment against Khalili in July 2021, in connection with new Clean Air Act asbestos violations at a second apartment complex, which Khalili now admits he committed while on pretrial release for the first set of charges.
As part of his guilty plea, Khalili acknowledged that, on behalf of his company Las Vegas Apartments LLC, he oversaw renovation activities at both apartment complexes. He further admitted that he was aware of asbestos-containing materials at both buildings, and that he hired untrained individuals to tear out those materials without following asbestos work practice standards prescribed by the Clean Air Act. Those work practice standards require that asbestos-containing materials be safely removed prior to general renovation activity taking place. Asbestos-containing materials must be kept wet at all times to prevent dust escaping, sealed in leak-proof bags, and disposed of at facilities authorized to accept asbestos waste. At both apartment buildings, untrained laborers removed asbestos-containing drywall and ceiling texture without wetting or containment, releasing asbestos fibers into the surrounding atmosphere.
Khalili also admitted to taking steps to evade law enforcement at each site. At the first apartment complex, Khalili attempted to have a dumpster filled with asbestos waste removed from the site when inspectors from the Clark County Department of Environment and Sustainability, Division of Air Quality discovered asbestos-related violations. At the second complex, where he oversaw illegal renovations while on pretrial release, he instructed the contractor in charge of the renovation to lie to inspectors about who owned and oversaw the project, in an attempt to blame another person for the Clean Air Act violations he knowingly committed.
Inhalation of airborne asbestos fibers has been determined to cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. Congress and the EPA have determined that there is no safe level of exposure to asbestos.
“The defendant" placed workers and community members in harm’s way when he knowingly violated Clean Air Act requirements for the safe handling of asbestos, and then did it again while already under indictment,” said Assistant Attorney General Todd Kim of the Environment and Natural Resources Division. “The Department of Justice will continue to hold accountable those who defy federal law aimed at protecting the public from adverse health effects of asbestos.”
“Exposure to asbestos is associated with life-threatening illnesses and serious respiratory diseases,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “By failing to follow required standards for properly handling asbestos, the defendant put the health of our communities — including workers at two apartment renovation sites — at risk. This case reflects our office’s commitment to working with our state and federal partners to enforce environmental laws that protect Nevadans from hazardous pollutants.”
“By not removing asbestos – a known carcinogen – safely from the buildings he was working on, the defendant placed the health of his apartment residents and the surrounding community at risk,” said Special Agent in Charge Scot Adair of the EPA’s Criminal Enforcement Program in Nevada. “Today’s agreement demonstrates that those who violate those laws will be held responsible.”
Special agents of the EPA and employees of the Clark County Department of Environment and Sustainability, Division of Air Quality investigated the case. Trial Attorney Cassandra Barnum of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Jean Ripley for the District of Nevada prosecuted the case.
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Lane County Man Sentenced to Federal Prison for Sexually Abusing Children, Distributing Child PornographyRead the Press Release
EUGENE, Ore.—A Lane County, Oregon man was sentenced to federal prison today after sexually abusing multiple children entrusted to a daycare run by his wife, possessing thousands of images and videos depicting child sexual abuse, and distributing child pornography.
Eric Wade Rogers, 55, was sentenced to 151 months in federal prison and five years’ supervised release.
According to court documents, in June 2017, an undercover law enforcement agent was on a website commonly used to trade child pornography. While investigating another target, the agent identified two online photo albums containing photos of minor girls shared by Rogers’ account. Four days later, Rogers uploaded two more albums containing covertly-taken photos of a minor girl who appeared in the first albums. Rogers wrote various comments on the photos including “I really miss playing with her” and “hot sexy little body.”
The undercover agent initiated a ruse to chat and email with Rogers and determine if he had in fact made sexual contact with any minors. In these conversations, Rogers admitted to touching and kissing one of the children. He further admitted he was no longer allowed to be alone with the child, told the agent that the child attended his wife’s daycare, and that “things kind of went south.” In subsequent conversations, Rogers provided explicit details of how he sexually abused the child.
On June 14, 2017, investigators obtained and executed a search warrant on Rogers’ Eugene residence while he was traveling for work. Rogers’ wife confirmed running a daycare in their home and recalled previous inappropriate conduct by Rogers which she reported to law enforcement. On the same day, investigators contacted Rogers in California. He admitted to possessing thousands of images and videos depicting child sexual abuse, including some that portrayed sadistic conduct involving toddlers. He again admitted to abusing the child referenced in his online chats with the undercover agent as well as a second child.
On June 15, 2017, Rogers was charged by criminal complaint with distribution of child pornography. Later, on November 19, 2019, he was charged by criminal information with the same. On December 2, 2021, Rogers waived indictment and pleaded guilty to the single charge.
All families affiliated Rogers’ wife’s in-home daycare have been contacted by law enforcement.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by Homeland Security Investigations (HSI) with assistance from the FBI and the Eugene Police Department. It was prosecuted by William McLaren and Amy Potter, Assistant U.S. Attorneys for the District of Oregon.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423 or submit a tip online at www.ice.gov/tips.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. Child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document victims’ exploitation and abuse, but when shared across the internet, child victims suffer re-victimization each time the image of their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children’s website at www.missingkids.org.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Justice Department to combat the growing epidemic of child sexual exploitation and abuse. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kentucky Men Indicted for Conspiracy to Steal and Transport 30 Catalytic Converters Recovered in State CollegeRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on March 10, 2022, Jose William Perez Felipe, age 25, and Wilber Sori San Miguel age 31, both of Louisville, Kentucky, were indicted by a federal grand jury for conspiracy to transport 30 stolen catalytic converters from Kentucky and Ohio to State College, Pennsylvania.
According to United States Attorney John C. Gurganus, the indictment alleges that between November 29, 2021 and December 2, 2021, Perez Felipe and San Miguel unlawfully agreed to transport stolen catalytic converters from Kentucky to New York, where the valuable metals contained inside them, including rhodium, palladium, and platinum, were to be extracted.
During a stop in Ohio, they received additional stolen catalytic converters. According to the indictment, they also stopped in State College, where they stole six additional catalytic converters from Penn State University vans parked in a campus parking garage and from box trucks at two businesses in State College. The indictment also alleges that they used a reciprocating saw to cut the converters from the vehicles. The defendants were found sleeping inside a green Ford van parked in the PSU garage and the van contained approximately 30 stolen catalytic converters. The indictment alleges that the 30 stolen catalytic converters recovered from the van had a value of approximately $90,000.
The case was investigated by the FBI, the State College Police Department, and the Pennsylvania State University Police Department. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
If convicted, the maximum penalty under federal law for these offenses is 20 years in prison, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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KC Man Sentenced to 15 Years for Meth Conspiracy, Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man has been sentenced in federal court for his role in a conspiracy that, in total, distributed more than 150 kilograms of methamphetamine and more than 10 kilograms of heroin, valued at more than $1.7 million.
Matthew John Fabulae, 33, of was sentenced by U.S. District Judge Roseann Ketchmark on Friday, March 11, to 15 years in federal prison without parole. The court also ordered Fabulae to forfeit to the government $44,000 based on his distribution of at least five kilograms of methamphetamine during the conspiracy.
On July 21, 2021, Fabulae pleaded guilty to participating in a conspiracy to distribute methamphetamine and a money-laundering conspiracy from Jan. 1, 2017, to Sept. 30, 2020. Fabulae also pleaded guilty to one count of possessing firearms in furtherance of a drug-trafficking crime, one count of being a drug user in possession of a firearm, and one count of possessing methamphetamine with the intent to distribute.
Fabulae is the second defendant to be sentenced in this case. Co-defendant Amy Leann Nieman, 50, of Moorseville, Mo., was sentenced on Feb. 25, 2022, to nine years in federal prison without parole after pleading guilty to her role in the drug-trafficking and money-laundering conspiracies and to possessing firearms during a drug-trafficking crime. Co-defendant Seth Alan Turbyfill, 33, of Chillicothe, Mo., pleaded guilty to the same crimes on Jan. 25, 2022, and awaits sentencing.
Fabulae’s plea agreement cites three separate instances in which law enforcement officers had contact with Fabulae, who was in possession of illegal drugs and firearms, while he was staying at local hotels.
On Feb. 12, 2019, Kansas City, Mo., police officers were patrolling the parking lot of the Motel 6 at 3636 Randolph Road when they saw Fabulae drive past in his 2000 Jeep Grand Cherokee. Officers activated their emergency equipment and followed Fabulae, attempting to conduct a traffic stop. Fabulae refused to stop and began to elude the officers. Fabulae drove the Jeep off road and up a hill approximately 100 feet from the roadway. Fabulae, who had a black and white drawstring backpack strapped around his shoulders, got out of the vehicle and ran into some trees and brush. The officers followed Fabulae into the brush and found the backpack on the ground. Officers found Fabulae hiding inside a large trash dumpster in a parking lot. Officers searched him and found approximately two grams of methamphetamine, a firearm magazine containing five .45-caliber rounds, and $1,096 in cash. Inside the backpack, officers found 48 grams of cocaine HCL, 10 grams of marijuana, and 280 grams of methamphetamine. Inside Fabulae’s Jeep, officers found four cell phones, one tablet, one laptop, one firearm magazine that contained five rounds of .45-caliber ammunition. On the ground next to the Jeep was a blue backpack with one live .45-caliber round inside. Officers later found a Springfield Armory .45-caliber handgun concealed in some vegetation in the woods.
Kansas City police officers were called to the Sure Stay Plaza Hotel, 11828 N.W. Plaza Circle in Kansas City, Mo., on Oct. 6, 2017, when two men attempted to rob Fabulae at gun point in his room. Fabulae shot one of the men multiple times and fled from the scene. When Fabulae was arrested a few days later, he told officers he had been in the room about to take a shower when the two men entered the room. One of them pointed a gun at him and a physical altercation ensued. Fabulae stated the gun fell to the floor and he picked it up and fired several times. Fabulae stated he was unsure if the men meant to rob him or kill him.
Law enforcement officers were dispatched to 2214 Taney St. in North Kansas City, Mo., on Dec. 28, 2018, on reported sounds of shots. Upon arrival they contacted Fabulae, who allegedly shot into another room. Officers searched Fabulae’s vehicle and found a .40-caliber Smith and Wesson handgun, an American Tactical AR pistol, and a black duffel bag that contained 331 grams of methamphetamine, 124 grams of cocaine, and 124 grams of marijuana.
This case is being prosecuted by Assistant U.S. Attorney Bruce Rhoades. It was investigated by the Kansas City, Mo., Police Department, the Drug Enforcement Administration, the Buchanan County Drug Strike Force, the Missouri State Highway Patrol, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Clay County, Mo., Sheriff's Department.
Organized Crime Drug Enforcement Task Force
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Judge sentences Arkansas man to 18 years in federal prisonRead the Press Release
ST. LOUIS – Jerrell West, 32, of Forrest City, Arkansas, was sentenced today to 18 years in prison for traveling with intent to engage in illicit sexual conduct with a minor.
On August 12, 2021, West was found guilty by jury trial in the U.S. District Court for the Eastern District of Missouri. He was sentenced by the Honorable Chief Judge Rodney Sippel.
According to the government’s evidence, the minor victim met West through an online application which allows users to utilize video chat and text communication. Over a period of multiple months, West communicated with the minor victim daily. Many of these conversations were friendly and causal in nature, ultimately leading to conversations that were sexual in nature. In April 2020, West informed the minor victim that he wanted her to live with him and would drive to the Saint Louis area to pick her up. West traveled from Forrest City, Arkansas to the Saint Louis area to pick up the minor victim from her home. West then drove to a rest stop area approximately 60 miles away and sexually assaulted the minor victim. West then drove back to the minor victim’s home to drop her off. West was arrested in May 2020 and detained pending trial.
“A child who is sexually abused will be forced to deal with that trauma for life. We hope today's 18-year sentence will empower the victim to see that 100% of the blame sits squarely on child predator Jerrell West,” said Acting Special Agent in Charge Akil Davis of the FBI St. Louis Division. “I commend Pagedale Police Department for notifying us immediately. Their quick action enabled agents to use a large number of advanced techniques to produce overwhelming and undeniable evidence against the perpetrator.”
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. 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/.
This case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Dianna R. Collins and Assistant United States Attorney Colleen Lang led the prosecution team.
Jose Inez Garcia-Zarate Pleads Guilty to Federal Firearm Charges in Death of Kate SteinleRead the Press Release
SAN FRANCISCO – Jose Inez Garcia-Zarate pleaded guilty today in federal court to being a felon in possession of a firearm and to being an alien unlawfully present in this country in possession of a firearm, announced United States Attorney Stephanie M. Hinds and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Patrick Gorman.
A federal grand jury indicted Jose Inez Garcia-Zarate on December 5, 2017. According to the indictment, on July 1, 2015, Garcia-Zarate, who is a citizen of Mexico and reportedly 51 years old, possessed a semi-automatic pistol and multiple rounds of ammunition in violation of 18 U.S.C. § 922(g)(1) (felon in possession of a firearm) and 18 U.S.C. § 922(g)(5) (possession of a firearm by an alien unlawfully present in the United States). In a public filing in the case, the government described that Garcia-Zarate was on Pier 14 of the Embarcadero in San Francisco on July 1, 2015. Also on the pier were Kathryn “Kate” Steinle, who was 32, her father James Steinle, and Frances “Kaye” Williams, a family friend. The three were sightseeing. At approximately 6:30 p.m., Garcia-Zarate possessed and fired a loaded semi-automatic pistol. The bullet hit Kathryn Steinle in her back, killing her. At the time of the shooting, Garcia-Zarate was a convicted felon and illegally in the United States, having previously been deported. He was also on federal supervised release from a 2011 Texas conviction.
On November 30, 2017, a prosecution by the San Francisco County District Attorney’s Office resulted in a jury convicting Garcia-Zarate of one state violation – being a felon in possession of a firearm in violation of California state law – and acquitting him of homicide charges. On August 30, 2019, a California state Court of Appeals court overturned Garcia-Zarate’s conviction based on the failure of the state trial court to instruct the jury on the state’s affirmative defense of momentary possession. The ruling had no legal effect on the federal prosecution, which had already been initiated.
Garcia-Zarate made his initial appearance in federal court to face federal firearm charges on January 8, 2018, immediately following his release from state custody. A federal jury trial set in January 2020 was delayed when the Court ordered Garcia-Zarate to be evaluated for mental competency to stand trial. Following competency proceedings occurring throughout 2020 and 2021, a change of plea hearing was set for today.
At today’s hearing, Zarate-Garcia pleaded guilty to the two charges in the federal indictment against him, without a plea agreement. He admitted that on July 1, 2015, he was on San Francisco Embarcadero Pier 14 and possessed a semi-automatic pistol loaded with eight rounds. He admitted he knew he was an alien that was unlawfully and illegally in the United States at the time and that he had previously been convicted of a felony, including the felony of Illegal Re-Entry After Deportation for which he spent more than a year in federal prison.
Garcia-Zarate’s sentencing hearing is scheduled for June 6, 2022, at 1 p.m. before United States District Judge Vince Chhabria in San Francisco. Garcia-Zarate remains in custody pending the sentencing hearing.
Each of the two violations of 18 U.S.C. § 922(g) to which Garcia-Zarate pleaded guilty has a maximum statutory penalty of 10 years in prison followed by three years of supervised release. However, any sentence will 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.
The case is being prosecuted by Assistant United States Attorneys Eric Cheng and Kevin Barry, with assistance from Madeline Wachs. The prosecution is the result of an investigation by ATF and the San Francisco Police Department.
Iowa Man Sentenced for Production of Child Pornography and South Dakota Woman Sentenced for Sex Trafficking of a ChildRead the Press Release
United States Attorney Dennis R. Holmes announced that a Spencer, Iowa, man convicted of Production of Child Pornography was sentenced on March 11, 2022, and a Sioux Falls, South Dakota, woman convicted of Sex Trafficking of a Child was sentenced on January 31, 2022. Both were sentenced by U.S. District Judge Karen E. Schreier.
Ronald Dean Johnson, age 39, was sentenced to 240 months in federal prison, followed by 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Melanie Joyce Hollingsworth, age 36, was sentenced to 210 months in federal prison, followed by 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Johnson and Hollingsworth were indicted by a federal grand jury on February 2, 2021. Johnson pled guilty on December 9, 2021, and Hollingsworth pled guilty on October 15, 2021.
The convictions stemmed from multiple incidents between on or about January 11, 2020, and October 10, 2020, when Johnson and Hollingsworth knowingly and intentionally recruited, enticed, harbored, transported, provided, obtained, and maintained by any means a juvenile female who had not attained the age of 18, to knowingly engage in commercial sexual acts.
Hollingsworth used texts, telephone calls, and apps on her phone to communicate with Johnson to set up commercial sexual acts. The commercial sexual acts were followed by wire transmission of funds via Western Union. Hollingsworth benefited financially from the commercial sexual acts by receiving funds, some of which were sent via Western Union.
Johnson videorecorded some of the sexual encounters with the minor female.
This case was investigated by the Sioux Falls Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Both Johnson and Hollingsworth were immediately turned over to the custody of the U.S. Marshals Service.
Illinois woman sentenced for counterfeit chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Asante James, of Freeport, Illinois, was sentenced today to time served for a counterfeit charge, United States Attorney William Ihlenfeld announced.
James, 22, pleaded guilty in September 2021 to one count of “Possession of Counterfeit Obligations.” James admitted to having sixty-nine $100 counterfeit bills in December 2020 in Ritchie County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The United States Secret Service, the Ritchie County Sheriff’s Office, and the South Charleston Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Illinois woman sentenced for counterfeit chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Clarissa Mosley, of Chicago, Illinois, was sentenced today to time served for a counterfeit charge, United States Attorney William Ihlenfeld announced.
Mosley, 25, pleaded guilty in September 2021 to one count of “Possession of Counterfeit Obligations.” Mosley admitted to having sixty-nine $100 counterfeit bills in December 2020 in Ritchie County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The United States Secret Service, the Ritchie County Sheriff’s Office, and the South Charleston Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Idaho Man Pleads Guilty for Role in Tribal Fraud SchemeRead the Press Release
PORTLAND, Ore.—A resident of the Fort Hall Reservation in Idaho and former CEO of the Warm Springs Economic Development Corporation (WSEDC) pleaded guilty today for his role in a fraud scheme targeting the Confederated Tribes of Warm Springs.
Roderick Ariwite, 66, pleaded guilty to theft of funds from a tribal organization and interstate transportation of a security taken by fraud, resolving two separate criminal cases against him.
According to court documents, WSEDC, also known as Warm Springs Ventures (WSV), is a Tribal organization owned and operated by the Warm Springs Tribes. WSV operates as the management organization for several Tribal business entities, including the Warm Springs Construction Enterprise (WSCE).
Ariwite and an accomplice, Thomas Valentino Adams, 49, a Nevada resident and the former manager of WSCE, created a construction company called Warbonnet Construction Services LLC. While drawing tribal salaries and travel reimbursements, Ariwite and Adams engaged in work projects for Warbonnet. In 2018, Ariwite and Adams used tribal funds to hire a subcontractor for a Warbonnet project and submitted vouchers for expenses they incurred on behalf of themselves and Warbonnet, which were reimbursed with tribal funds. In total, Ariwite and Adams’ scheme cost the Warm Springs Tribes more than $50,000.
On September 24, 2020, a federal grand jury in Portland returned a six-count indictment charging Ariwite and Adams with conspiracy and theft of funds from a Tribal organization. In a separate indictment, Ariwite was charged with one count of interstate transportation of a security taken by fraud.
Ariwite faces a maximum sentence of 15 years in prison, a $500,000 fine and three years’ supervised release. He will be sentenced on June 6, 2022 before U.S. District Court Judge Michael W. Mosman.
As part of his plea agreement, Ariwite has agreed to pay $39,613 in restitution to the Warm Springs Tribes and $3,000 to an unnamed adult victim.
On August 23, 2021, Adams pleaded guilty to theft of funds from a Tribal organization. He will be sentenced on March 29, 2022 before Judge Mosman.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Warm Springs Police Department. It was prosecuted by Meredith Bateman and Seth Uram, Assistant U.S. Attorneys for the District of Oregon.
Huntington Man Pleads Guilty to Federal Drug OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal drug offense.
According to court documents, Marcus Allen Johnson, 37, admitted that on June 5, 2021, he used a telephone to assist a co-conspirator involved in cocaine sales in Huntington. Johnson admitted that he was contacted and enlisted by the co-conspirator to find purchasers for kilogram quantities of cocaine. During the calls, Johnson agreed to market the cocaine to prospective purchasers.
Johnson pleaded guilty to using a communication facility to facilitate a felony drug offense and faces up to four years in federal prison when he is sentenced on June 21, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force. The TOC-West Task Force is comprised of the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department. The West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West also provide support. The Ohio Highway Patrol, the Kentucky State Police, the FBI and DEA in Columbus also assisted in the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Joseph F. Adams and Courtney L. Cremeans are handling the prosecution.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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Honolulu Man Sentenced to 37 Months in Prison for Possessing Ammunition as a Convicted FelonRead the Press Release
HONOLULU – Senior United States District Judge Susan O. Mollway today sentenced Tiseya Puapuaga, 27, of Honolulu and California, to 37 months in prison for possessing ammunition as a felon, to run consecutive to any State of Hawaii term of imprisonment that is imposed if revocation of his state probation occurs.
United States Attorney Clare E. Connors stated that, according to court documents and information presented in court, on December 18, 2020, the Honolulu Police Department responded to an apartment in Waikiki where Puapuaga was residing. In the apartment, police recovered a disassembled pistol, known as a ghost gun, a disassembled AR-15-type rifle, other gun parts, such as a loaded handgun magazine, and four rounds of ammunition from the living room, kitchen, and inside the oven. Ghost guns are capable of subverting application of federal firearms laws because their separate parts may be assembled in the State of Hawaii, rather than being manufactured in another jurisdiction.
Puapuaga was on probation with the State of Hawaii when the incident in Waikiki occurred. His probation status was for a 2019 felony conviction involving assault and a firearms offense related to a shooting that occurred in the Chinatown area of Honolulu. Revocation of his probation for the 2019 State of Hawaii conviction Puapuaga is pending.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the Federal Bureau of Investigation and the Honolulu Police Department and prosecuted by Assistant U.S. Attorney Rebecca A. Perlmutter.
Harvey Man Indicted for Production and Distribution of Child Sexual Abuse MaterialRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today the indictment of JAYDEN D. D. HALL, age 21, of Harvey, Louisiana, who was charged on March 11, 2022 in a five-count federal indictment for crimes involving child exploitation.
HALL was charged with one count of Production of Materials Involving the Sexual Exploitation of Children in violation of Title 18, United States Code, Sections 2251(a) and (e); three counts of Transportation of Materials Involving the Sexual Exploitation of Children in violation of Title 18, United States Code, Sections 2252(a)(1) and (b)(1); and one count of Obstruction of Justice, in violation of Title 18, United States Code, Section 1519.
If convicted of the production count, HALL faces a mandatory minimum sentence of fifteen years up to a maximum sentence of thirty years of imprisonment. If convicted of the transportation counts, HALL faces a mandatory minimum sentence of five years up to a maximum sentence of twenty years of imprisonment. If convicted of the obstruction count, HALL faces up to twenty years of imprisonment.
For the production and transportation counts, HALL also faces a term of supervised release of no less than five years and up to life after his release from prison. For the obstruction count, HALL faces up to three years of supervised release. For each count, HALL faces a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person as a result of these offenses, and payment of a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s 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.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Louisiana Bureau of Investigation and the U.S. Department of Homeland Security, Homeland Security Investigations with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Nicholas D. Moses.
Harrisburg Man Sentenced to 46 Months in Prison for Straw Purchasing Guns for FelonsRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Michael Windham, age 22, of Harrisburg, Pennsylvania, was sentenced to 46 months' imprisonment by United States District Court Judge Jennifer P. Wilson for weapons offenses.
According to United States Attorney John C. Gurganus, Windham pled guilty to conspiring with three other individuals to purchase guns for felons and persons under indictment. Windham was prohibited by law from possessing a gun, but he arranged for Taashaun Mansfield, age 23, of Harrisburg, to purchase a gun for him. Mansfield also purchased six other guns for felons.
Mansfield, of Harrisburg, entered a guilty plea to weapons offenses and was sentenced to 37 months in prison in February 2022. Antonio Godbolt, age 34, of Harrisburg, entered a guilty plea to conspiring to straw purchase guns and possessing a gun as a felon and is awaiting sentencing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives brought this case in conjunction with the Harrisburg Bureau of Police. Assistant U.S. Attorney Michael A. Consiglio is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Great Falls woman admits embezzling more than $600,000 from former employerRead the Press Release
GREAT FALLS — A Great Falls woman today admitted allegations that she stole more than $600,000 from a construction company when she was employed as its bookkeeper, U.S. Attorney Leif M. Johnson said.
Nicole Ann Lopez, 37, pleaded guilty to wire fraud. Lopez faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. The court will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Chief Judge Morris set sentencing for June 9. Lopez was released pending further proceedings.
The government alleged in court documents that in 2013, M&D Construction, Inc., a Great Falls company, hired Lopez as its bookkeeper. Lopez was given access to the company’s business enterprise bank account. Between 2017 and 2020, Lopez charged more than $600,000 on her personal credit card accounts for mostly consumer shopping and travel. To pay her personal credit card expenses, Lopez directed approximately $611,000 in 72 payments from M&D’s business account into her personal accounts without the company’s authorization. Lopez’s embezzlement scheme was discovered when she purchased a small boutique clothing store, called Sora & Co., in downtown Great Falls, and resigned from M&D. A new accountant hired to replace Lopez reviewed the books and determined that more than $600,000 was missing.
Assistant U.S. Attorney Jeffrey K. Starnes is prosecuting the case, which was investigated by the FBI.
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Georgia man admits to fentanyl and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dextavious McCurry, of Commerce, Georgia, has admitted to drug and firearms charges, United States Attorney William Ihlenfeld announced.
McCurry, 29, pleaded guilty to one count of “Possession with Intent to Distribute Heroin and Fentanyl” and one count of “Unlawful Possession of a Firearm.” McCurry admitted to having heroin and fentanyl in January 2021 in Berkeley County. McCurry, a person prohibited from having a firearm because of a prior conviction, also admitted to having a 9mm pistol.
McCurry faces up 20 years of incarceration and a fine of up to $1,000,000 for the drug charge and faces up to to 10 years of incarceration and a fine of up to $250,000 for the firearms charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Freight Carriers Agree to Pay $6.85 Million to Resolve Allegations of Knowingly Presenting False Claims to the Department of DefenseRead the Press Release
YRC Freight Inc. (YRC), Roadway Express Inc. and Yellow Transportation Inc. (collectively the YRC defendants), have agreed to pay approximately $6.85 million to resolve allegations under the False Claims Act that they knowingly presented false claims to the U.S. Department of Defense (DOD) by systematically overcharging for freight carrier services and making false statements to hide their misconduct.
The YRC defendants, transporters of industrial, commercial and retail goods, contracted with DOD to ship military freight across the country from September 2005 to October 2013. Under their contracts, the YRC defendants were paid based in part upon a shipment’s weight.
The United States alleged that the YRC defendants fraudulently billed the United States for delivery charges based on higher weights when, after reweighing the shipments, they knew that the actual weights were lower. For more than seven years, the YRC defendants allegedly reweighed many shipments before final delivery, and when the reweighs showed that a shipment weight was more than the original weight, the YRC defendants charged DOD for these higher weights. But when the reweighs showed that a shipment weight was less than the original weight, the YRC defendants allegedly concealed from DOD the lower weights and instead charged DOD for the original, inflated weights. To further hide the scheme, the YRC defendants allegedly made false statements assuring DOD that they would comply with the rules requiring them to correct discrepancies uncovered during any reweigh process.
“We expect companies to do business with the government honestly and fairly,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to hold accountable those who defraud the government and, by extension, the American taxpayers.”
“The Defense Department entered into contracts with YRC, Roadway, and Yellow for shipping services,” said U.S. Attorney Trini E. Ross for the Western District of New York. “These companies, which purposely overcharged for these services and then made false statements to cover up their actions, are now being held accountable for their behavior.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by James Hannum, an employee of Yellow Transportation. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Hannum v. YRC Freight, Inc., Roadway Express, Inc., and Yellow Transportation, Inc., Civil Action No. 08-0811 (W.D.N.Y.). Mr. Hannum will receive $1.3 million, plus interest, as his share of the settlement.
“Investigating schemes that undermine the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS),” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “Today's announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to hold companies accountable for artificially inflating the cost of services provided to the DoD.”
“After working extensively on this case, DCAA is gratified the work of our auditors made a significant contribution to the outcome of this case,” said Lead Investigative Auditor John Manfredonia for the Defense Contract Audit Agency (DCAA).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Western District of New York, with assistance from DCIS; DCAA, and the U.S. Army Criminal Investigation Division Command.
The matter was handled by Trial Attorneys Benjamin Young and John F. Schifalacqua of the Justice Department’s Civil Division and Assistant U.S. Attorney David M. Coriell for the Western District of New York.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Freight Carriers Agree to Pay $6.85 Million to Resolve Allegations of Knowingly Presenting False Claims to the Department of DefenseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – YRC Freight Inc. (YRC), Roadway Express Inc. and Yellow Transportation Inc. (collectively the YRC defendants), have agreed to pay approximately $6.85 million to resolve allegations under the False Claims Act that they knowingly presented false claims to the U.S. Department of Defense (DOD) by systematically overcharging for freight carrier services and making false statements to hide their misconduct.
The YRC defendants, transporters of industrial, commercial, and retail goods, contracted with DOD to ship military freight across the country from September 2005 to October 2013. Under their contracts, the YRC defendants were paid based in part upon a shipment’s weight.
The United States alleged that the YRC defendants fraudulently billed the United States for delivery charges based on higher weights when, after reweighing the shipments, they knew that the actual weights were lower. For more than seven years, the YRC defendants allegedly reweighed many shipments before final delivery, and when the reweighs showed that a shipment weight was more than the original weight, the YRC defendants charged DOD for these higher weights. But when the reweighs showed that a shipment weight was less than the original weight, the YRC defendants allegedly concealed from DOD the lower weights and instead charged DOD for the original, inflated weights. To further hide the scheme, the YRC defendants allegedly made false statements assuring DOD that they would comply with the rules requiring them to correct discrepancies uncovered during any reweigh process.
“We expect companies to do business with the government honestly and fairly,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This settlement demonstrates the department’s continuing commitment to hold accountable those who defraud the government and, by extension, the American taxpayers.”
“The Defense Department entered into contracts with YRC, Roadway, and Yellow for shipping services,” said U.S. Attorney Trini E. Ross for the Western District of New York. “These companies, which purposely overcharged for these services and then made false statements to cover up their actions, are now being held accountable for their behavior.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by James Hannum, an employee of Yellow Transportation. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned U.S. ex rel. Hannum v. YRC Freight, Inc., Roadway Express, Inc., and Yellow Transportation, Inc., Civil Action No. 08-0811 (W.D.N.Y.). Mr. Hannum will receive $1.3 million, plus interest, as his share of the settlement.
“Investigating schemes that undermine the integrity of Department of Defense (DoD) procurement is a top priority for the DoD Office of Inspector General's Defense Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Today's announcement demonstrates our commitment to work with the Department of Justice and our law enforcement partners to hold companies accountable for artificially inflating the cost of services provided to the DoD.”
“After working extensively on this case, DCAA is gratified the work of our auditors made a significant contribution to the outcome of this case,” said Lead Investigative Auditor John Manfredonia for the Defense Contract Audit Agency (DCAA).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Western District of New York, with assistance from DCIS; the Defense Contract Audit Agency, and the U.S. Army Criminal Investigation Division Command.
The matter was handled by Trial Attorneys Benjamin Young and John F. Schifalacqua of the Justice Department’s Civil Division and Assistant U.S. Attorney David M. Coriell for the Western District of New York.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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