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18 April 2022
Three Plead Guilty to Wire Fraud in Connection with Unlawful Virtual Currency Sales BusinessRead the Press Release
CONCORD – Andrew Spinella, 36, of Derry, Renee Spinella, 24, of Derry, and Nobody, a/k/a Richard Paul, 53, of Keene, pleaded guilty last week in federal court to wire fraud, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between approximately 2016 and 2021, the defendants opened and operated accounts at financial institutions as personal accounts in their names or as business accounts in the names of churches in order to allow their co-defendant, Ian Freeman, to use them to sell virtual currency.
Andrew Spinella pleaded guilty on April 12, 2022. He admitted to opening personal accounts in his name for Freeman to use to sell virtual currency. He signed blank checks and gave Freeman the login information for those accounts.
Renee Spinella pleaded guilty on April 14, 2022. She admitted that she opened a business account in the name of Crypto Church of NH, which she told the bank was an international ministry. She opened the account in person at a bank branch in New Hampshire where she was accompanied by Freeman. Although the account was purported to be for the receipt of church donations, the account was used almost exclusively to support Freeman’s virtual currency exchange business.
Nobody pleaded guilty on April 15, 2002. He admitted that he opened accounts in his name and in the name of the Church of the Invisible Hand. At the time he opened the accounts or provided Freeman with access to the accounts, he knew they would not be used as personal accounts or for a church, but instead would be used by Freeman to trade virtual currency.
Each of the defendants was aware that banks would close these accounts if the banks knew the accounts were used to operate an unlicensed virtual currency business.
Andrew and Renee Spinella are scheduled to be sentenced on July 26, 2022. Nobody is scheduled to be sentenced on July 28, 2022.
A total of six individuals have been charged in this case. Freeman and two other co-defendants are scheduled to go to trial on November 1, 2022.
“By using fraudulent means to mislead banks about the true purpose of these bank accounts, the defendants assisted in the operation of an unlawful virtual currency business,” said U.S. Attorney Farley. “To protect the integrity of our financial system, we will continue to work closely with our law enforcement partners to identify and prosecute individuals who participate in fraud schemes involving virtual currency.”
“Andrew and Renee Spinella, along with Nobody, confessed to opening and operating bank accounts, using their names or the names of religious organizations, to help their co-defendant run his virtual currency business. They knew it was wrong and they continued their conduct anyway," said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. "Last week’s court proceedings show such criminal actions have serious consequences. The FBI is uniquely situated to investigate and dismantle these elaborate schemes, and we urge folks, whether investing in cash or virtual currency, to exercise due diligence and report suspicious activity to us.”
“This investigation and the subsequent admissions by the defendants are a clear reminder that IRS Criminal Investigation is committed to following the money trail and will not be deterred by sophisticated financial transactions,” said Joleen D. Simpson, Special Agent in Charge, IRS Criminal Investigation, Boston Field Office. “These federal felony convictions have effectively shut down this scheme and should serve as a stark warning to those engaged in similar criminal activities.”
This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, and the United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorneys Georgiana L. MacDonald, John Kennedy, and Seth R. Aframe.
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Tea Man Charged with Attempted Enticement of a Minor Using the InternetRead the Press Release
United States Attorney Dennis R. Holmes announced that a Tea, South Dakota, man has been indicted by a federal grand jury for Attempted Enticement of a Minor Using the Internet.
Sky Thomas Roubideaux, age 22, was indicted on April 5, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 11, 2022, and pled not guilty to the Indictment.
The mandatory minimum penalty upon conviction is 10 years and a maximum of life in federal prison and/or a $250,000 fine, five years minimum of supervised release, up to life, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 7, 2022, Roubideaux attempted to use a cell phone to knowingly persuade, induce, entice, and coerce an undercover agent posing as a 15-year-old male, to engage in sexual activity.
The charge is merely an accusation and Roubideaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations, with the assistance of the Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Highway Patrol, Air Force Office of Special Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Roubideaux was released on bond pending trial which has been set for August 9, 2022.
Taylor County man sentenced for a meth chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Richard Kevin Isner, of Flemington, West Virginia, was sentenced today to 12 months and one day of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Isner, 59, pleaded guilty in November 2021 to one count of “Distribution of Fifty Grams or more of Methamphetamine.” Isner admitted to selling more than 50 grams of methamphetamine in July 2020 in Marion County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Sugar Creek Man Sentenced to 10 Years Following Motorcycle ChaseRead the Press Release
KANSAS CITY, Mo. – A Sugar Creek, Mo., man was sentenced in federal court today for illegally possessing a firearm after fleeing on his motorcycle from a police officer.
William M. Peters, 38, was sentenced by U.S. District Judge Greg Kays to 10 years in federal prison without parole. Today’s sentence is the statutory maximum penalty for this offense.
On Sept. 2, 2021, Peters pleaded guilty to being a felon in possession of a firearm.
A Sugar Creek, Mo., police officer attempted to stop Peters, who was driving a motorcycle, on Nov. 15, 2019. Peters attempted to flee by driving through yards and down embankments. Peters attempted to ram a locked gate, causing him to fall off the motorcycle. Peters then fled on foot.
The officer ordered Peters to stop running, at which point Peters stopped running and grabbed a Smith and Wesson .40-caliber handgun with a magazine and five rounds of ammunition from inside of his coat. As the officer drew his duty weapon, Peters threw the holstered firearm and was detained. The officer noted that Peter had a very strong odor of alcohol, but officers were unable to perform standard field sobriety tests due to his combative behavior. Officers searched Peters and found a baggie that contained .42 grams of methamphetamine and a glass smoking pipe. Peters admitted that he used methamphetamine every day and had bought one or two ounces of methamphetamine every day over the prior two months.
According to court documents, Peters also illegally possessed a stolen firearm on Nov. 17, 2020, and illegally possessed another firearm on June 18, 2021, both in Independence, Mo.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Peters has prior felony convictions for possessing a controlled substance and for distributing a controlled substance. At the time of his arrest in this case, Peters had an active Sugar Creek warrant for disorderly conduct and possession of drug paraphernalia and three felony Jackson County warrants for drug possession and assault.
This case was prosecuted by Special Assistant U.S. Attorney Maureen Brackett. It was investigated by the Independence, Mo., Police Department, the Jackson County Drug Task Force, the Sugar Creek, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
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.
Stratford Man Involved in Car Theft Ring Sentenced to 30 Months in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that EDWIN CORDERO, 21, of Stratford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 30 months of imprisonment, followed by three years of supervised release, for his role in an auto theft ring.
According to court documents and statements made in court, the FBI, Connecticut State Police and local police have been investigating multiple car theft rings in Connecticut, and violent crimes that are being committed using stolen vehicles.
The investigation revealed that Cordero and others have stolen numerous motor vehicles, and used the stolen vehicles to travel throughout Connecticut and to neighboring states to steal other vehicles and the valuables inside, including credit cards, cellular telephones, and firearms. Cordero and his associates typically frequented upper middleclass neighborhoods to go “car-checking” or “jigging,” which involves an attempt to open the door of a motor vehicle and, if successful, steal the vehicle and/or valuables inside. Once the thieves take the cars, they sell, trade or pawn any items of value found in the cars and sell or “rent” the stolen cars to other criminals.
On December 1, 2020, Cordero and Christopher Mulkern stole a Porsche Panamera from a residence in Westport, Connecticut. Shortly after midnight on December 2, law enforcement in Westerly, Rhode Island, identified the stolen Porsche and attempted to stop the car. The Porsche drove recklessly, at speeds of at least 86 mph, between Rhode Island and Connecticut, and evaded police who, for safety reasons, were forced to terminate pursuit.
At approximately 4 a.m. on December 2, Cordero, Mulkern and others used the stolen Porsche to steal a Dodge Challenger from a residence in Milford, Connecticut. In the evening of December 2, Stratford Police spotted and attempted to stop the Porsche, which was being driven by Mulkern and in which Cordero was a passenger. During the pursuit, Mulkern rammed a car stopped at a red light at an intersection, drove up on the sidewalk and through the red light, and then struck a second vehicle, causing the second vehicle to flip onto its roof. Mulkern drove the damaged Porsche onto I-95 into Bridgeport, where he and Cordero were apprehended as they attempted to enter another stolen Audi A4 that was parked on Gregory Street. A search of the stolen Audi revealed approximately 13 key fobs for other vehicles, and a search of the Porsche revealed five cellphones. In addition, Cordero possessed a key fob for the stolen Dodge Challenger, which was subsequently located parked on Main Street in Bridgeport, and Mulkern possessed two stolen credit cards.
On September 8, 2021, Cordero pleaded guilty to one count of transportation of a stolen vehicle.
Mulkern pleaded guilty to the same offense and, on January 3, 2022, was sentenced to 48 months of imprisonment.
Cordero and Mulkern have agreed to pay $75,198.45 in restitution to at least seven owners of vehicles they stole and/or damaged.
This matter was investigated by the Federal Bureau of Investigation, the Connecticut State Police and the Stratford, Milford, Stonington, Westport, Bridgeport, New Haven, Meriden, Darien, Old Saybrook, and Westerly (R.I.) Police Departments. The case was prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
St. Francis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis R. Holmes announced that a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 11, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
John Burgess Bad Hand, age 37, was sentenced to time served from his arrest November 30, 2021, through April 20, 2022, equal to approximately five months in custody, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Bad Hand was indicted by a federal grand jury on November 9, 2021. He pled guilty on January 26, 2022.
Bad Hand was convicted of Abusive Sexual Contact in August 2007 and again in December 2008. As a result of these convictions, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. On July 30, 2021, Bad Hand updated his sex offender registration to reflect that he was residing at an address in Rosebud. On October 21, it was discovered that Bad Hand was not residing at his registered address. Through investigation, it was determined that between September 15, 2021, and October 21, 2021, Bad Hand failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Bad Hand was immediately turned over to the custody of the U.S. Marshals Service.
South Shore Landscaper Charged with Filing False Tax ReturnsRead the Press Release
BOSTON – The owner of a residential and commercial landscaping business operating in the South Shore area has been charged and has agreed to plead guilty in connection with his failure to report approximately $1.5 million in income to the Internal Revenue Service.
Scott Herzog, 47, of Norwell, has agreed to plead guilty to one count of filing a false tax return. A plea hearing has not yet been scheduled by the Court.
According to the charging document, Herzog owned and operated Herzog Landscape Solutions. From 2016 through 2018, Herzog allegedly directed landscaping customers to pay him personally for jobs and then cashed many of these payments or deposited them into bank accounts unaffiliated with the landscaping business. Herzog then failed to report approximately $1.5 million in these receipts in the tax returns his tax preparer filed on his behalf. As a result of this alleged conduct, Herzog underreported his personal income tax obligations, causing a loss to the Internal Revenue Service of nearly $500,000.
The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of up to $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.
United States Attorney Rachael S. Rollins and Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement. Assistant U.S. Attorney David M. Holcomb of Rollins’ Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
South Florida Man Found Guilty of International Money LaunderingRead the Press Release
Tampa – United States Attorney Roger B. Handberg announces that a federal jury has found Cornelius “Neal” Singleton (60, Miramar) guilty of two counts of international money laundering. Singleton faces up to 20 years’ imprisonment on each count. A sentencing date has not yet been set. Singleton had been indicted on July 13, 2021.
According to testimony and evidence presented at trial, on March 28, 2020, Singleton delivered more than $660,000 in cash he intended to have delivered to individuals within Colombia. In cooperation with the Colombian National Police, agents from Homeland Security Investigations (HSI) in Tampa and HSI (Bogota) arranged to have the funds delivered to its intended recipients in Colombia – members of a group of suspected large-scale narcotics traffickers. After the successful delivery was made in Bogota, Colombia, in June 2020, negotiations began with Singleton for additional deliveries of cash to be delivered to Colombia. In June 2021, Singleton brought nearly $1.1 million in cash to downtown St. Petersburg to be delivered to the same individuals in Colombia. HSI agents arrested Singleton at that time.
As a result of Singleton’s arrest, HSI (Tampa) has broadened their investigation targeting multiple persons located within the United States, Colombia, and elsewhere.
This case was investigated by Homeland Security Investigations (Tampa), with assistance from the Colombian National Police, the Hialeah Police Department, and the St. Petersburg Police Department. It is being prosecuted by Assistant United States Attorney E. Jackson Boggs, Jr.
Sioux Falls Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on April 11, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Eugene Leon Featherman, age 33, was sentenced to 13 months in federal prison, followed by five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Featherman was indicted by a federal grand jury on December 14, 2021. He pled guilty on January 20, 2022.
Featherman was convicted of Abusive Sexual Contact in October 2011. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocation or changing employment. On February 26, 2021, Featherman updated his sex offender registration to reflect that he was residing at an address in Sioux Falls. On May 30, 2021, Featherman subsequently failed to reside at his registered address. Between June 3, 2021, and June 14, 2021, Featherman failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Abby Roesler prosecuted the case.
Featherman was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Attempted Enticement of a Minor Using the InternetRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Attempted Enticement of a Minor Using the Internet.
Kent Mews, age 55, was indicted on April 5, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 11, 2022, and pled not guilty to the Indictment.
The mandatory minimum penalty upon conviction is 10 years and a maximum of life in federal prison and/or a $250,000 fine, five years minimum of supervised release, up to life, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about March 6, 2022, Mews attempted to use a cell phone to knowingly persuade, induce, entice, and coerce an undercover agent posing as a 15-year-old male, to engage in sexual activity.
The charge is merely an accusation and Mews is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations, with the assistance of the Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Highway Patrol, Air Force Office of Special Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Mews was released on bond pending trial which has been set for July 19, 2022.
Sioux Falls Man Charged with Attempted Enticement of a Minor Using the InternetRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Attempted Enticement of a Minor Using the Internet.
Jordan Matthew Hermanson, age 31, was indicted on April 5, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 11, 2022, and pled not guilty to the Indictment.
The mandatory minimum penalty upon conviction is 10 years and a maximum of life in federal prison and/or a $250,000 fine, five years minimum of supervised release, up to life, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about March 8, 2022, and March 9, 2022, Hermanson attempted to use a cell phone to knowingly persuade, induce, entice, and coerce an undercover agent posing as a 14-year-old female, to engage in sexual activity.
The charge is merely an accusation and Hermanson is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations, with the assistance of the Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Highway Patrol, Air Force Office of Special Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Hermanson was released on bond pending trial which has been set for August 30, 2022.
Sioux Falls Man Charged with Attempted Enticement of a Minor Using the InternetRead the Press Release
United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Attempted Enticement of a Minor Using the Internet.
Elliott Anderson, age 25, was indicted on April 5, 2022. He appeared before U.S. Magistrate Judge Veronica L. Duffy on April 11, 2022, and pled not guilty to the Indictment.
The mandatory minimum penalty upon conviction is 10 years and a maximum of life in federal prison and/or a $250,000 fine, five years minimum of supervised release, up to life, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between on or about March 7, 2022, and March 8, 2022, Anderson attempted to use a cell phone to knowingly persuade, induce, entice, and coerce an undercover agent posing as a 15-year-old female, to engage in sexual activity.
The charge is merely an accusation and Anderson is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations, with the assistance of the Internet Crimes Against Children Task Force, South Dakota Division of Criminal Investigation, Sioux Falls Police Department, Minnehaha County Sheriff’s Office, South Dakota Highway Patrol, Air Force Office of Special Investigations, and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Anderson was released on bond pending trial which has been set for July 12, 2022.
Siblings Sentenced for Offenses Involving the Sale of Stolen MacBooksRead the Press Release
SACRAMENTO, Calif. — Patricia Castaneda, 38, of Redwood City, was sentenced to 33 months in prison and her brother, Eric Castaneda, 37, also of Redwood City, was sentenced to 18 months in prison by U.S. District Judge Kimberly J. Mueller for their roles in a scheme that involved the theft and interstate sale of Apple MacBooks, U.S. Attorney Phillip A. Talbert announced.
In addition, Judge Mueller ordered Patricia Castaneda to pay $4,077,832 in restitution and ordered Eric Castaneda to pay $2,283,155 in restitution.
According to court documents, Patricia Castaneda worked in the School of Humanities and Sciences at a private university in Stanford, California. In her position, Patricia Castaneda’s duties included ordering MacBooks for university faculty and staff. In 2009 or 2010, Patricia Castaneda began stealing MacBooks she ordered and selling them for cash. Initially, Patricia Castaneda sold the stolen MacBooks to an individual she met on Craigslist. In approximately February 2016, Patricia Castaneda began giving the stolen MacBooks to Eric Castaneda to sell to an individual named Philip James who, in turn, resold and shipped the MacBooks from Folsom to buyers outside California.
In total, the cost to the university of MacBooks Patricia Castaneda stole was over $4 million. That amount includes the cost to the university of approximately 800 stolen MacBooks Eric Castaneda sold to James, which was approximately $2.3 million.
This case was a product of an investigation by the IRS-Criminal Investigation and the Federal Bureau of Investigation. Assistant U.S. Attorney Matthew Thuesen prosecuted the case.
In a separate case, on April 11, 2022, James pleaded guilty for his role in the scheme.
Santa Clarita Man Sentenced to Nearly 3½ Years in Federal Prison for Fraudulently Obtaining COVID-Relief LoansRead the Press Release
LOS ANGELES – A Santa Clarita man was sentenced today to 41 months in federal prison for attempting to steal millions of dollars in Paycheck Protection Program (PPP) COVID-relief loans for his companies by submitting fraudulent applications that included fake tax documents and information for non-existent employees.
Raymond Magana, 41, was sentenced by United States District Judge Stanley Blumenfeld Jr., who ordered him to pay $360,415 in restitution. At today’s hearing, Judge Blumenfeld called Magana’s crime “a despicable offense” and noted that Magana exploited a “national emergency” in order to “line his own pockets.”
Magana pleaded guilty in January 2021 to one count of fraud in connection with major disaster or emergency benefits.
In May and June 2020, Magana submitted to banks PPP loan applications that contained false statements about the number of employees and the amount of payroll expenses. Specifically, on June 3, 2020, Magana submitted a PPP loan application to Customer’s Bank for $940,416 for The Building Circle LLC, a company registered in his name.
In that application, Magana falsely claimed the company’s average monthly payroll was $376,167 for 40 workers. Magana admitted to submitting fraudulent tax documents that reported $4,402,000 in annual wages paid to 40 employees in 2019 and $852,000 paid in employee wages during the first quarter of 2020.
IRS and California Employment Development Department records showed that the company never reported paying any employees, and the underwriting packet also did not include a list of employees or associates for the company, according to an affidavit filed with a criminal complaint in this case.
Investigators later determined that the Pico Rivera address given as The Building Circle’s headquarters was a 980-square-foot, single-family home that appeared to be a residence, not a business. Ultimately, the loan application was approved and $940,416 was funded to Magana’s company on June 4, 2020, the affidavit states.
Magana also applied for and received a PPP loan of $360,415 for Forward Builders LLC, another company, using fake tax documents and false employee information, and falsely claiming $1.73 million in employee wages.
When a bank manager contacted Magana after one of the business accounts receiving PPP funds had been frozen because of suspicious activity, he told the bank “We have all the documents, we got approved,” and he refused to agree to return the improperly obtained PPP funds, the affidavit states. The bank nonetheless kept the $940,416 in Magana's bank account frozen, and he could not access it.
The actual loss from the two loans that were approved and disbursed was $360,415. Prior to today’s sentencing hearing, Magana deposited with the court $360,415 as his restitution payment.
Magana’s business partner, Steven R. Goldstein, 37, of Northridge, is serving a one-year federal prison sentence for committing fraud in connection with major disaster or emergency benefits. Goldstein pleaded guilty in December 2020 to a federal fraud charge and admitted in his plea agreement that he fraudulently obtained $655,000 in PPP loans for his companies by submitting false tax documents and fake employee information.
IRS Criminal Investigation and the Small Business Administration’s Office of Inspector General investigated this case.
Assistant United States Attorney Charles E. Pell of the Santa Ana Branch Office prosecuted this case.
Portland Man Sentenced to Federal Prison for Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Portland man was sentenced to federal prison today for perpetrating a scheme to steal funds intended to help small businesses during the COVID-19 pandemic.
Benjamin Tifekchian, 48, was sentenced to 21 months in federal prison and five years’ supervised release. Tifekchian was also ordered to pay more than $910,000 in restitution, including more than $26,000 to the Small Business Administration (SBA).
According to court documents, in May 2019, Tifekchian incorporated Bencho Jewelry Inc. (Bencho) in the State of Oregon and served as the company’s sole owner and officer. Bencho never had any employees and never generated more than $500 in revenue in any calendar year.
After Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in March 2020 to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic, Tifekchian devised and perpetrated a scheme to defraud the SBA by fraudulently applying for CARES Act-authorized Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans on behalf of Bencho.
In EIDL applications submitted to SBA in April and August 2020, Tifekchian falsely claimed Bencho had generated as much as $758,000 in revenue, had been operating for 20 years, and employed 12 people. SBA denied both applications. In June 2020, Tifekchian successfully obtained more than $884,000 in PPP funding after falsely claiming Bencho employed 78 people and had an average monthly payroll of $353,698. SBA guaranteed the loan and paid Bank of America, the FDIC-insured loan issuer, more than $26,000 in fees.
Tifekchian used the PPP loan to pay for gambling, vacations, and other personal expenses. Suspecting fraud, Bank of America froze the loan funds, but only after Tifekchian had spent more than $68,000.
On July 13, 2021, a federal grand jury in Portland returned a two-count indictment charging Tifekchian with bank fraud and wire fraud. On January 25, 2022, he pleaded guilty to bank fraud.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI, U.S. Treasury Inspector General for Tax Administration (TIGTA), and the SBA Office of Inspector General. Assistant U.S. Attorney Ryan W. Bounds is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Pine Ridge Man Sentenced to 30 Years in Federal PrisonRead the Press Release
United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man convicted of three counts of Aggravated Sexual Abuse of a Minor was sentenced on April 1, 2022, by Judge Jeffrey L. Viken, U.S. District Court.
Garrett Waters, age 40, was sentenced to 30 years in federal prison for each count with the time to be served concurrently. The custody time is to be followed by five years of supervised release for each count. Waters was also ordered to pay a $300 special assessment to the Federal Crime Victims Fund.
Waters was indicted by a federal grand jury in March 2021. He was found guilty of the charges following a jury trial in Rapid City, South Dakota, on September 3, 2021.
The conviction stems from Waters sexually abusing a female child, who was under the age of 12, between 2018 and 2020 at Pine Ridge.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Waters was immediately turned over to the custody of the U.S. Marshals Service.
Oregon Man Sentenced for Production of Child PornographyRead the Press Release
An Oregon man was sentenced today to 17 years in prison for coercing and persuading multiple minors to send him sexually explicit photos and videos of themselves over the internet.
Kirk R. Cazee, 60, of Warrenton, was sentenced to 204 months in prison after pleading guilty to production of child pornography on April 28, 2021. Cazee was also sentenced to serve 99 years of supervised release and to register as a sex offender after completion of his prison term.
As described in court documents and testimony, in March 2010, a CyberTipline Report from the National Center for Missing and Exploited Children (NCMEC), identified an email address that had been involved in the exchange of child pornography. Law enforcement traced the email address back to Cazee’s residence. Further investigation showed that beginning in 2006 and continuing to 2010, Cazee engaged in email and text communications with multiple minor victims. During the communications, Cazee posed as a teenage boy and coerced the minors to take sexually explicit photos and videos of themselves and to send the content to Cazee.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Scott Erik Asphaug for the District of Oregon and Special Agent in Charge Kieran L. Ramsey of the FBI’s Portland Field Office made the announcement.
The case was investigated by the Oregon Department of Justice and the FBI.
Trial Attorney Kaylynn Foulon of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Natalie Wight for the District of Oregon prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org.
Monongalia County man sentenced for child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Raymond David Bates, of Morgantown West Virginia, was sentenced today to 97 months of incarceration for a child pornography charge, United States Attorney William Ihlenfeld announced.
Bates, 44, pleaded guilty in November 2021 to one count of “Possession of Child Pornography.” Bates admitted to having child pornography depicting minors under the age of 12 in July and August of 2019 in Monongalia County.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The FBI investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Mission Man Sentenced for Illegally Possessing FirearmsRead the Press Release
United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on April 11, 2022, by Chief Judge Roberto A. Lange, U.S. District Court.
Patrick Medearis, age 38, was sentenced to 96 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.
Medearis was indicted by a federal grand jury on July 16, 2020. He was convicted on January 20, 2022, following a three-day jury trial in Pierre, South Dakota.
The conviction stems from an incident that occurred on April 22, 2020, in Todd County, South Dakota. On that date, law enforcement was searching for Medearis based on an alleged domestic violence incident that occurred the previous day wherein he was suspected of possessing a firearm. Medearis was located at a residence south of Mission. When law enforcement arrived, Medearis attempted to flee in a vehicle. He was subsequently apprehended, and a .22 caliber long rifle and a 12-gauge shotgun were located in the passenger seat of the vehicle.
Medearis has three prior felony convictions. He was convicted of Conspiracy to Distribute and Possess With Intent to Distribute a Controlled Substance in U.S. District Court in 2006. He was convicted of Child Abuse and Neglect in U.S. District Court in 2010. He was convicted of Assaulting, Resisting, and Impeding a Federal Officer in U.S. District Court in 2017. As a result of these convictions, it is illegal for Medearis to possess firearms or ammunition. Medearis will forfeit ownership of the firearms to the United States.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Medearis was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Charged with BurglaryRead the Press Release
United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Third Degree Burglary.
Justice James White Horse, age 20, was indicted on April 12, 2022. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 13, 2022, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to five years in custody 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 February 8, 2022, in Mission, White Horse unlawfully entered two businesses and stole property from both businesses.
The charges are merely accusations and White Horse is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Abby Roesler is prosecuting the case.
White Horse was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minnesota Man Sentenced to 10 Years for Trafficking CocaineRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that Lashawn M. Bennett, 50, St. Paul, Minnesota was sentenced today by Chief U.S. District Judge James D. Peterson to 10 years in federal prison for possessing over 500 grams of cocaine with the intent to distribute. This prison term will be followed by 5 years of supervised release. Bennett pleaded guilty to this charge on January 11, 2022.
On March 17, 2021, a Wisconsin State Patrol trooper conducted a traffic stop for speeding on a vehicle driven by Bennett in Eau Claire, Wisconsin. After the trooper detected the odor of marijuana, the vehicle was searched. Officers found a large black bag containing three individually wrapped bricks of cocaine. The total weight of the cocaine was approximately 7.5 pounds.
When interviewed by officers, Bennett admitted to possessing and transporting three kilograms of cocaine with the intent to later distribute it.
At the time of this incident, Bennett was on state probation in Wisconsin for cocaine trafficking and in Minnesota for a prostitution offense. His probation in Wisconsin was revoked and he is currently serving a re-confinement sentence of 9 years in state prison. Judge Peterson ordered this federal sentence to run concurrently with the state prison sentence.
In imposing sentence, Judge Peterson identified the quantity of cocaine involved and Bennett’s criminal history, which included both prior state and federal cocaine trafficking convictions, as highly aggravating factors. Judge Peterson noted Bennett exhibited a pattern of continuing to return to drug trafficking.
The charge against Bennett was the result of an investigation conducted by the Wisconsin State Patrol and the U.S. Drug Enforcement Administration. The Eau Claire County District Attorney’s Office also provided assistance in the case. Assistant U.S. Attorney Steven P. Anderson prosecuted this case.
Mexican Citizen Sentenced to over 5 Years in Prison for Distributing Fentanyl in BakersfieldRead the Press Release
FRESNO, Calif. — Jesus Adrian Pena-Gamez, 33, a Mexican national unlawfully residing in Bakersfield, was sentenced today to five years and three months in prison for possessing with the intent to distribute fentanyl, U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 7, 2021, Pena-Gamez and co-defendant Carlos Ivan Campana met in the parking lot of a Bakersfield restaurant to sell to a person 15,000 counterfeit M30 pills containing fentanyl. During the meeting, Pena-Gamez and Campana were arrested and law enforcement officers recovered from Pena-Gamez’s vehicle approximately 3 pounds of pills containing a detectable amount of fentanyl.
Charges are pending against Campana for distribution of fentanyl and methamphetamine on three prior occasions between November 2020 and April 2021. On April 6, 2022, a bench warrant was issued for Campana’s arrest for violating pretrial release conditions and his whereabouts currently are unknown. The charges against him are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Drug Enforcement Administration. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Manchester Man Sentenced to 84 Months for Drug Trafficking ConspiracyRead the Press Release
CONCORD - Jacob Brady, 30, of Manchester, was sentenced on Friday to 84 months in federal prison for conspiracy to possess controlled substances with intent to distribute, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on April 29, 2020, Manchester police detectives received information that a female would be traveling from Manchester to Lawrence, Massachusetts to obtain a significant amount of drugs for redistribution in New Hampshire. Surveillance observed her drive to Lawrence and park her car in a lot known as a distribution “hot spot.” A vehicle registered to Brady’s co-conspirator, Christopher Yule, parked close by and extinguished its lights. Within a minute, the cars departed. Surveillance units followed both vehicles.
When Yule’s vehicle entered Manchester, it was stopped by police for a traffic violation and suspicion of drug activity. Brady, the driver of the vehicle, and Yule both engaged in furtive movements within the vehicle as officers approached. Both individuals were instructed to step out of the vehicle. Brady explained that he and Yule traveled to Lawrence so Yule could meet with his source and purchase illegal drugs.
During the stop, an officer observed a tied-off glassine baggie of suspected drugs inside the vehicle. Yule consented to a search of the vehicle and officers found over 78 grams of fentanyl and over six grams of cocaine base (crack).
Brady previously pleaded guilty on January 7, 2022. Yule also has pleaded guilty and is awaiting sentencing.
“Fentanyl and other dangerous drugs continue to cause serious damage to communities throughout New Hampshire,” said U.S. Attorney Farley. “We are working closely with the Manchester Police Department to identify the drug traffickers who are bringing fentanyl into Manchester and endangering the lives of the city’s citizens. As this case demonstrates, fentanyl dealers in the Granite State will be held accountable for their dangerous and unlawful conduct.”
This matter was investigated by the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Man from Mescalero pleads guilty to federal cyberstalking chargeRead the Press Release
ALBUQERQUE, N.M. – Jayvian Chee, 19, of Mescalero, New Mexico, pleaded guilty in federal court on April 15 to Cyberstalking. Chee is currently out of custody awaiting sentencing, which has not been scheduled.
According to the plea agreement and other court records, on Nov. 28, 2021, Chee cyberstalked a minor victim, identified as Jane Doe. Chee harassed Jane Doe by sending her numerous threatening messages from multiple Instagram accounts Chee created. Chee threatened to distribute sexually explicit material of Jane Doe if she did not continue their romantic relationship.
By the terms of the plea agreement, Chee faces five years of probation.
The Bureau of Indian Affairs investigated this case. Assistant United States Attorney Matilda McCarthy Villalobos is prosecuting this case as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice (DOJ) to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and DOJ’s Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Man from Albuquerque pleads guilty to federal fraud and stolen mail chargesRead the Press Release
ALBUQERQUE, N.M. – Luke Trujillo, 27, of Albuquerque, pleaded guilty in federal court on April 11 to one count of conspiracy, one count of bank fraud, one count of aggravated identity theft and one count of being in possession of stolen mail. Trujillo is currently in custody awaiting sentencing, which has not been scheduled.
Trujillo and co-defendant, Jose Machado, 37, of Albuquerque, were indicted by a federal grand jury on May 22, 2019. According to the plea agreement and other court documents, from Feb. 9, 2015, to Jan. 18, 2016, Trujillo and Machado used stolen mail and documents containing sensitive information to obtain counterfeit identification and create bank accounts under assumed names in Albuquerque. During the scheme, Trujillo and Machado also used the stolen identities of victims to apply for lines of credit and to add themselves as “secondary users” to victims’ accounts to control and access the accounts. Using the fraudulent credit and debit cards, Trujillo and Machado spent over $7,000 on merchandise from several stores.
Trujillo faces up to five years in prison for conspiracy and possession of stolen mail, up to 30 years in prison for bank fraud, and a not less than two years for aggravated identity theft that must run consecutive to any other term of imprisonment.
Machado pleaded guilty on Oct. 21, 2020. Machado was sentenced on April 8, 2021, to three years in prison, followed by three years of supervised release upon his release from prison.
The United States Postal Inspection Service investigated this case. Assistant U.S. Attorney Kimberly A. Brawley is prosecuting the case.
Lubbock Man Pleads Guilty to Thanksgiving Week Threat Against Ex-WifeRead the Press Release
A Lubbock man pleaded guilty today to threatening to kill his ex-wife, announced U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Gene Garcia Solis, 48, was charged via criminal complaint in November 2021 and indicted the following month. He pleaded guilty on Monday to interstate threatening communications.
According to plea papers, Mr. Solis admitted that on Nov. 24, 2021 – the day before Thanksgiving – he told a Lubbock police officer that he planned to kill his ex-wife and anyone who tried to stop him and then commit suicide.
Fearing for his ex-wife’s safety, officers set up surveillance at her residence. That evening, at around 10:30 p.m., Mr. Solis drove by the home.
When officers attempted to stop his car, he fled. Nearly three hours later, law enforcement spotted the defendant in Hale Center, Texas, and once again attempted to stop his car. He attempted to flee, but hit a spike strip and crashed in the parking lot of a Texas National Guard Armory.
Mr. Solis exited the vehicle, fired several rounds from an AR 15-style rifle, and ran inside the Armory. He finally surrendered to law enforcement after about a 30-hours standoff.
He now faces up to five years in federal prison. His sentencing date has not yet been set.
The Federal Bureau of Investigation’s Dallas Field Office, Lubbock Resident Agency, and the Lubbock Police Department conducted the investigation with the assistance of the Hale County Sheriff’s Department, the Lubbock County Sheriff’s Office, and the Texas Department of Public Safety. Assistant U.S. Attorneys Jeff Haag and Callie Woolam are prosecuting the case.
Longtime Leader of South Los Angeles Street Gang Found Guilty of RICO Conspiracy, Including Participating in Rival’s MurderRead the Press Release
LOS ANGELES – A federal jury today found a long-time senior leader of the South Los Angeles-based East Coast Crips (ECC) street gang guilty of federal criminal charges for conspiring to commit racketeering through various criminal acts including murder, extorting local businesses and the distribution of narcotics.
Paul Gary Wallace, 56, a.k.a. “Little Doc” and “Uncle Bill,” of South Los Angeles, was found guilty of one count of conspiracy to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act and one count of using a firearm in furtherance of a violent crime.
United States District Judge André Birotte Jr. scheduled a July 29 sentencing hearing, at which time Wallace will face a statutory maximum sentence of life in federal prison.
According to evidence presented at his 11-day trial, Wallace was a member of the ECC for more than 30 years and rose to become the leader and most influential member of the gang’s “6-Pacc” set, a series of cliques of the gang responsible for control over territory in South Los Angeles.
Wallace maintained his control over the gang through violence and intimidation. Wallace murdered and conspired to commit murder to enhance the gang’s violent reputation, to enhance his status within the gang, to retaliate against rivals, and to enforce discipline within the gang.
As a gang leader, Wallace’s other criminal conduct included selling drugs in ECC territory, extorting local businesses, presiding over robberies, and engaging in other acts of violence, including intimidation, assaults and shootings against the gang’s rivals.
The jury specifically found that on November 13, 2014, Wallace participated in the murder of a rival gang member. The murder weapon, an AK-47-style assault rifle, was later found in Wallace’s van. The jury did not find that Wallace committed the February 2003 murder of a rival.
The FBI and the Los Angeles Police Department investigated this matter.
Assistant United States Attorneys Joseph D. Axelrad and Jeffrey M. Chemerinsky of the Violent and Organized Crime Section are prosecuting this case.
Lewis County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Matthew J. Duncan, of Weston, West Virginia, was sentenced today to 57 months of incarceration for a firearms charge, United States Attorney William Ihlenfeld announced.
Duncan, 25, pleaded guilty in November 2021 to one count of “Unlawful Possession of a Firearm.” Duncan, a person prohibited from having firearms because of prior convictions, admitted to having a pistol, a rifle, and a shotgun in March 2021 in Braxton County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Braxton County Sheriff’s Office investigated.
Chief U.S. District Judge Thomas S. Kleeh presided.
Las Vegas Man Sentenced to over Seven Years in Prison for Armed Robberies of Cell Phone StoresRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to seven years and 10 months in prison for his role in two armed robberies of cell phone stores in the Las Vegas area.
Kejon Ward (28) pleaded guilty in August 2021 to one count of interference with commerce by robbery and one count of possession of a firearm in relation to a crime of violence. In addition to imprisonment, U.S. District Judge Jennifer A. Dorsey sentenced Ward to three years of supervised release.
According to court documents, Ward — together with co-conspirator Rushard Burton and another co-conspirator — stole more than 100 cell phones from two stores on April 28 and June 5, 2017. Ward was on parole at that time, having been convicted previously for a similar armed robbery. During each cell phone store robbery, Ward pointed a firearm at victims inside, and threatened to shoot them if they did not comply with his demands.
During the June 5 robbery, Ward walked into the store, racked the slide of his handgun, and ordered employees and customers to get to the back of the store. Ward then pointed the gun at several customers — including a family with children — while Burton filled a duffel bag with cell phones.
Co-conspirator Burton pleaded guilty in August 2021 to four counts of interference with commerce by robbery and one count of possession of a firearm in furtherance of a crime of violence. He was sentenced in February 2022 to nine years in prison, to be followed by three years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Spencer L. Evans for the FBI made the announcement.
This case was a joint investigation by the FBI, North Las Vegas Police Department, Las Vegas Metropolitan Police Department, and Henderson Police Department. The case was prosecuted by Assistant U.S. Attorney Christopher Burton.
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Laplace Woman Charged with Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that ANITA WILLENE HOBDY, age 67, from LaPlace, was charged on April 15, 2022 with wire fraud, stemming from fraudulent charges made from First Baptist Church of LaPlace.
The government filed a one-count bill of information that charged HOBDY with wire fraud involving conduct from 2015 through 2021. According to the bill of information, HOBDY worked as a bookkeeper for the church’s daycare and embezzled over $175,000 from church accounts during that period.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, HOBDY faces up to twenty years in prison. HOBDY also faces up to three years of supervised release after release from prison, a fine of up to $250,000 or twice the gross gain to HOBDY or the gross loss to any victims, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the United States Secret Service. Assistant United States Attorney Nicholas D. Moses is in charge of the prosecution.
Justice Department Secures Settlement with UPS to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with United Parcel Service Inc. (UPS). The settlement resolves the department’s claims that UPS violated the Immigration and Nationality Act (INA) when it discriminated against a non-U.S. citizen by requesting that he present additional documents to prove his permission to work after the worker had already provided sufficient proof.
“When checking an individual’s permission to work, employers cannot ask for more documents than necessary based on a worker’s citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting workers from unnecessary document requests based on citizenship status and national origin.”
The department’s investigation determined that UPS discriminated against a newly hired lawful permanent resident in Jacksonville, Florida, by asking him for his Permanent Resident Card and “work visa,” to prove his permission to work, even though he had already shown his driver’s license and unrestricted social security card, which were sufficient proof. UPS asked for the additional documents after getting a data entry error notification from the propriety software program the company uses to access E-Verify and verify workers’ permission to work. When UPS received the notification, the company asked the worker for additional documents instead of checking for a simple data entry error, as the company did when it received such notices for U.S. citizen workers.
The INA’s anti-discrimination provision prohibits employers from asking for unnecessary documents — or specifying the type of documentation a worker should present — to prove their permission to work, because of a worker’s citizenship, immigration status or national origin. Under the settlement, UPS will pay a civil penalty, train employees about how to properly handle notices about data entry errors, and be subject to department monitoring.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship or immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Job applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
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Justice Department Expands Arizona Lawsuit Alleging Disability Discrimination in Access to Surgical CareRead the Press Release
The Justice Department filed an amended complaint today in the U.S. District Court for the District of Arizona to add American Vision Partners (AVP) as a co-defendant in the department’s lawsuit against Barnet Dulaney Perkins Eye Center (BDP). The amended complaint alleges that AVP and BDP discriminate against patients who, because of their disabilities, need assistance transferring from their wheelchairs for eye surgery.
AVP provides management, training, policies and guidance, staff, infrastructure and technology to BDP and other eye care medical practices with nearly 80 facilities in Arizona, New Mexico, Nevada and Texas including: Southwestern Eye Center, M & M Eye Institute, Retinol Consultants of Arizona, Abrams Eye Institute, Southwest Eye Institute, Aiello Eye Institute, Havasu Eye Center, Visage Aesthetics and Plastic Surgery and Moretsky Cassidy Vision Correction.
In its original complaint, the department alleged that BDP required patients with disabilities who need transfer assistance to use and pay for third party medical transport and transfer assistance as a condition of surgery, in violation of the Americans with Disabilities Act (ADA). The amended complaint adds allegations that AVP and BDP have also denied eye surgery outright to patients who need transfer assistance. The United States alleges that this discriminatory practice delays needed medical care and results in significant harms to individuals who need eye surgery, including continued eye pain, vision loss and a loss of independence.
“No one should be refused healthcare services simply because they need help transferring from a wheelchair to a surgery table,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Denial of needed surgery based on unfounded assumptions and stereotypes about disability violates the ADA and devalues the lives, health, dignity and independence of individuals with disabilities.”
The department is asking the court to stop AVP and BDP from discriminating against individuals with disabilities, including by adopting non-discriminatory polices related to transfer assistance and training its staff to provide patients with wheelchairs transfer assistance. The department also seeks money damages for those people who were harmed by AVP’s and BDP’s discriminatory policies and practices, including those who were denied medical services and those who were forced to pay for third-party transfer assistance in order to get surgery services.
In addition to BDP, AVP partner practices include Southwestern Eye Center, M & M Eye Institute, Retinol Consultants of Arizona, Abrams Eye Institute, Southwest Eye Institute, Aiello Eye Institute, Havasu Eye Center, Visage Aesthetics and Plastic Surgery and Moretsky Cassidy Vision Correction. If you believe that you or someone you know was denied medical services by an AVP partner practice or BDP because of needed transfer assistance or was required to pay for third-party medical personnel to provide transfer assistance or transportation at an AVP partner practice or BDP, please contact 1-866-380-2003 (toll-free), or send an email to [email protected]. For more information on the ADA, please call the Department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt.
Huntington Man Pleads Guilty to Fentanyl Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to the distribution of fentanyl.
According to court documents and statements made in court, Tekoa Rivers, 22, admitted that he sold fentanyl on April 29, 2021, in Huntington.
Rivers is scheduled to be sentenced on August 8, 2022, and faces a maximum penalty of 20 years in prison.
United States Attorney Will Thompson made the announcement and commended the Drug Enforcement Administration (DEA) for conducting the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Monica D. Coleman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-27.
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Huntington Man Pleads Guilty to Federal Firearm and Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to being a felon in possession of a firearm and to possession with intent to distribute crack cocaine.
According to court documents, Christopher Eugene Capers, 34, admitted that he possessed a Taurus G2 9mm handgun found by Huntington Police officers during a May 21, 2020, traffic stop. Capers was a passenger in a vehicle pulled over by officers. The officers found the handgun in Capers’ waistband. Capers further admitted that while on home confinement following this incident, law enforcement searching his Huntington residence on June 26, 2020, found approximately 46.2 grams of suspected cocaine base, also known as “crack,” as well as drug paraphernalia and $3,734.25 in cash.
Federal law prohibits a person with a prior felony conviction from possessing a firearm or ammunition. Capers knew he was prohibited from possessing a firearm because of several prior felony convictions including a February 2019 conviction in Cabell County Circuit Court for being a felon in possession of a firearm.
Capers is scheduled to be sentenced on August 8, 2022, and faces a maximum penalty of 30 years in prison.
United States Attorney Will Thompson made the announcement and commended the Huntington Violent Crime and Drug Task Force, the Huntington Police Department, and the Cabell County Sheriff’s Office for conducting the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:22-cr-26.
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Greensboro Man Sentenced to 20 Years on Firearms Charges After Hostage Situation and Drug Trafficking ViolationsRead the Press Release
GREENSBORO – Matthew Leviticus Murphy, 32, was sentenced on April 15, 2022, to a total of 240 months in prison for possession of a firearm by a felon in two separate incidences in Greensboro in 2020 and 2021. Sandra J. Hairston, United States Attorney for the Middle District of North Carolina, made the announcement.
According to court documents, Murphy forced his way into a home in Greensboro brandishing a firearm early on the morning of November 21, 2020. Murphy pointed a firearm at multiple residents of the house. During the interaction, Murphy pointed a firearm at a three-year-old child among other members of the family and demanded that they pretend to know Murphy once the police arrived. Police then entered the home and began questioning Murphy and the hostages. One member of the family told police that Murphy had threatened to shoot them if they didn’t cooperate and police promptly arrested Murphy.
On the evening of January 21, 2021, Greensboro Police officers conducted a traffic stop involving a vehicle in which Murphy was the passenger. As they approached the vehicle, Murphy attempted to conceal a plastic bag containing white powder and hid a bag of the powder. Officers found two additional clear plastic bags containing a white powder, a firearm, and a large amount of cash in the vehicle. Laboratory testing confirmed that the powder contained fentanyl.
At the time of both offenses, Murphy had been previously convicted of felonious second-degree burglary charges and theft in 2006 which resulted in a term of imprisonment exceeding one year. Murphy was also convicted of assault with a deadly weapon and burglary charges again in 2012 and of malicious conduct by a prisoner in 2014, resulting in additional terms of imprisonment. Thus, at the time of the offenses, Murphy was legally barred from possessing a firearm due to his status as a felon.
The Honorable William L. Osteen, Jr., sentenced Murphy to two consecutive terms of imprisonment of 120 months each. After imprisonment, Murphy will be subject to supervised release for three years.
This case was prosecuted by Assistant U. S. Attorney Veronica Edmisten. The Greensboro Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives were involved in the investigation of the case.
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Greece Man with Prior Child Sexual Abuse Conviction Going to Prison on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney Trini E. Ross announced today that Hector Savage, 37, of Greece, NY, who was convicted of possession of child pornography by an individual with a prior conviction, was sentenced to serve 10 years in prison and 15 years supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Meghan K. McGuire, who handled the case, stated that on July 31, 2003, Savage was convicted in Monroe County Court of Sexual Abuse 1st: Sexual Contact with Individual Less than 11 Years Old. On May 25, 2019, Savage possessed approximately 20 images of child pornography on an Apple iPhone. Some of the images depicted prepubescent minors or minors under 12 years old.
The sentencing is the result of an investigation by the Federal Bureau of Investigation Child Exploitation Task Force, under the direction of Special Agent-in-Charge Stephen Belongia, and the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
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Fresno Man Sentenced to over 5 Years in Prison for Investment Fraud, Bank Fraud, and Tax EvasionRead the Press Release
FRESNO, Calif. — Kenneth Shane Patterson, 44, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to five years and six months in prison and ordered to pay $1.9 million in restitution for wire fraud, bank fraud, and evading the payment of taxes, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Patterson convinced a small business owner to give him more than $1 million over approximately 31 months so that Patterson could acquire a skilled nursing facility in Pasadena. Patterson promised to then sell the facility to the business owner at below market value. Patterson told the business owner that he needed the money to clear liens and pay other expenses so the deal would close. In reality, Patterson never actually intended to buy the facility and instead spent the money on unrelated business expenses and his own gambling.
In addition to defrauding the business owner, Patterson defrauded Bank of America in a check-kiting scheme by writing two checks totaling $230,000 from Patterson’s business account at JPMorgan Chase to another of his business accounts at Bank of America. The Chase account’s balance at the time was less than $10,000. After writing the checks, Patterson quickly transferred and spent the deposited funds before Bank of America realized Patterson’s check had bounced. Bank of America sustained a loss of approximately $150,000.
Additionally, Patterson evaded paying federal income tax from tax years as far back as 2003 through various methods of evasion, including having no personal bank accounts, incurring expenses on accounts not in his name, and dealing in a high volume of cash. Patterson pleaded guilty on Oct. 19, 2021.
This case was the product of an investigation by the Federal Deposit Insurance Corporation Office of Inspector General, the Federal Bureau of Investigation, and the Internal Revenue Service-Criminal Investigation. Assistant U.S. Attorney Alexandre Dempsey prosecuted the case.
Fresno Fentanyl Pill Dealer Sentenced to 6 Years in Prison for Illegal Possession of Counterfeit M30 Pills and a Loaded FirearmRead the Press Release
FRESNO, Calif. — Jose Jesus Torres Garcia, 30, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to six years in prison for illegally possessing fentanyl pills and a firearm, U.S. Attorney Phillip A. Talbert announced.
According to court documents, in May 2021, law enforcement obtained evidence that Torres Garcia was using his social media account to advertise the sale of “M30” pills, which are counterfeit oxycodone pills laced with fentanyl. Based on that information, federal officers executed a search warrant at Torres Garcia’s residence and found a loaded, short-barrel rifle and several hundred fentanyl pills packaged for sale. Torres Garcia was charged with possessing fentanyl with intent to distribute it and possessing a firearm in furtherance of a drug trafficking crime. He pleaded guilty to both charges on Sept. 27, 2021.
The case was the result of an investigation by FORT, a multi-agency team composed of the Drug Enforcement Administration, the Homeland Security Investigations, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Former Ohio Police Chief and Two Indiana Gun Dealers Plead Guilty in Conspiracy to Illegally Traffic 200 Fully Automatic Machine GunsRead the Press Release
INDIANAPOLIS – Dorian LaCourse, 66, of Milford, Ohio, pleaded guilty today to conspiracy and making false statements. LaCourse is the former Chief of Police in the Village of Addyston, Ohio. LaCourse was indicted by a federal grand jury for using his law enforcement position to illegally help two federally licensed firearms dealers in Indiana acquire and resell approximately 200 fully automatic machine guns using false documents. The firearms dealers, Johnathan Marcum, 34, of Laurel, Indiana, and Christopher Petty, 58, of Lawrenceburg, Indiana, previously pled guilty in separate cases to participating in the same conspiracy.
According to court documents, LaCourse, Marcum, and Petty, illegally exploited a law enforcement exception to the federal ban on the possession or transfer of fully automatic machine guns. As Chief of Police, LaCourse signed multiple “demonstration letters” falsely stating that the Village of Addyston Police Department was interested in purchasing various types of machine guns, including military-grade weapons, and asking that Marcum and or Petty give the demonstration. Marcum and Petty then sent the letters to the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) in order to obtain the weapons. Addyston is a village in southwestern Ohio of approximately 1,000 residents. LaCourse was the village’s only full-time police officer.
LaCourse also placed direct orders for German-made machine guns that were purported to be paid for by the Police Department. In fact, the purchases were fully funded by Marcum and Petty and intended to bypass restrictions on the importation of such weapons by anyone other than the police or the military.
The Addyston Police Department was never authorized to purchase any of the machine guns, and the Indiana gun dealers never provided any demonstrations of machine guns to the police department. Instead, the gun dealers resold the machine guns at a significant profit. In some instances, a gun dealer resold illegally acquired machine guns for five or six times the purchase price. The conspirators purchased or caused the importation of approximately 200 fully automatic machine guns. LaCourse received over $11,500 from the gun dealers for his role in the scheme.
LaCourse pleaded guilty to conspiracy, making false statements in records maintained by a federal firearms licensee, and making false statements to the ATF. He faces up to 15 years in federal prison. Marcum and Petty have both pleaded guilty to conspiracy, and each faces up to 5 years in federal prison. Actual sentences will be determined by a federal district court judge after considering the U.S. Sentencing Guidelines and other statutory factors and are typically less than the maximum penalties. Each of the three men will be sentenced at a later date.
Zachary A. Myers, U.S. Attorney for the Southern District of Indiana, and Travis S. Riddle, Acting Special Agent in Charge of the ATF’s Columbus Field Division made the announcement.
The ATF investigated the case.
U.S. Attorney Myers thanked Assistant U.S. Attorneys James M. Warden and William L. McCoskey, who are prosecuting this case.
The U.S. Attorney’s Office for the Southern District of Indiana is part of the U.S. Department of Justice’s Chicago Gun Trafficking Strike Force and has prioritized investigation and prosecution of gun trafficking crimes. On July 22, 2021, the Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. These gun trafficking strike forces are designed to ensure coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C.
Former Congressional Candidate and Indiana Casino Executive Plead Guilty to Crimes Involving Political Contribution SchemesRead the Press Release
Two Indiana men have pleaded guilty to federal crimes for their roles in paying and receiving secret political contributions through a middleman.
Today, a former Indianapolis-based casino executive pleaded guilty to causing false statements on the casino’s corporate tax return by concealing contributions to a local political party as deductible business expenses. Additionally, a 2016 candidate for U.S. Congress, charged in the same indictment, pleaded guilty last week to making and receiving illegal conduit contributions through sham donors and making false statements to the FBI.
According to court documents, John Keeler, 72, of Indianapolis, former vice president and general counsel of gaming company New Centaur LLC, funneled $41,000 in New Centaur corporate funds to Maryland-based political consultant Kelley Rogers and an entity under his control for the purpose of contributing the funds to the Greater Indianapolis Republican Finance Committee to benefit the Marion County Republican Central Committee. Keeler then caused New Centaur to falsely report the political contribution to the IRS as a deductible business expense.
In addition, Darryl Brent Waltz, 48, of Greenwood, a former Indiana State Senator and 2016 candidate for U.S. Congress, pleaded guilty last week to funneling $40,500 in illegal conduit contributions to his 2016 congressional campaign. Waltz and Rogers directed corporate funds from New Centaur into the Brent Waltz for Congress campaign through several straw contributors and through Waltz himself. Waltz also lied to and misled federal authorities who were investigating the illegal contributions.
Both defendants are scheduled to be sentenced at a later date. Waltz faces up to 10 years in prison and Keeler faces up to three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
FBI and IRS-Criminal Investigation investigated the cases.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Zachary A. Myers for the Southern District of Indiana, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Assistant Director in Charge Steven D’Antuono of the of the FBI’s Washington Field Office, and Special Agent in Charge Justin Campbell of IRS-Criminal Investigation Chicago Field Office made the announcement.
Trial Attorneys William J. Gullotta and John P. Taddei of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel Bradley P. Shepard for the Southern District of Indiana are prosecuting the cases.
Former CFO of Publicly Traded Brazilian Company Charged in Fraud SchemeRead the Press Release
A superseding indictment was unsealed today in the Southern District of Iowa charging the former Chief Financial Officer (CFO) of publicly traded reinsurance company, IRB Brasil Resseguros SA, aka IRB Brasil RE (IRB), for fraudulently propping up its stock price by spreading false information that U.S. investment firm Berkshire Hathaway Inc. had invested in IRB.
According to court documents, Fernando Passos, 39, of Brazil, allegedly executed the fraud scheme beginning in February 2020, after an investment company published a report questioning the accuracy of IRB’s financial statements and announcing that the investment company had taken a short position against IRB’s stock. IRB’s stock price dropped in the wake of the report. In response, Passos allegedly developed and executed a scheme to mislead shareholders and the investing public by disseminating and causing to be disseminated materially false information that Berkshire Hathaway had invested in IRB, despite knowing the U.S. investment firm had not made such an investment. Passos discussed his plans to spread this materially false information with IRB investor relations employees. In one text message described in the indictment, Passos stated, “I will spread this story that berk [i.e., Berkshire Hathaway] bought 28MM of shares,” and added, “then it becomes true.”
As part of the fraud scheme, the superseding indictment alleges, Passos falsified documents and information to support his claims that Berkshire Hathaway was an IRB shareholder and caused this information to be provided to members of the press, several of IRB’s directors, and IRB investors. News outlets in both Brazil and the United States began incorrectly reporting that Berkshire Hathaway had invested in IRB. Following the news coverage, on the evening of March 3, 2020, Berkshire Hathaway issued a press release stating that it was not currently, had never been, and had no intention of becoming a shareholder in IRB. On March 4, 2020, after Berkshire Hathaway’s press release, IRB’s stock price dropped, causing significant shareholder losses.
IRB, which is based in Brazil, trades on Brazil’s B3 exchange and has shareholders around the world, including in the United States.
Passos is charged with one count of securities fraud and three counts of wire fraud. If convicted, he faces up to 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. He remains at large.
Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group made the announcement.
The U.S. Postal Inspection Service is investigating the case.
Trial Attorney Kate McCarthy of the Criminal Division’s Fraud Section is prosecuting the case.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas. If you believe you are a victim of the conduct described in the Passos indictment, please visit https://www.justice.gov/criminal-vns/case/Passos.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Butte County Man Pleads Guilty to Theft of FEMA Benefits in Connection with Paradise Camp FireRead the Press Release
SACRAMENTO, Calif. — Andrew Keffer, 44, previously of Chico, pleaded guilty today to theft of government property: specifically, FEMA benefits issued in connection with the 2018 Camp Fire, U.S. Attorney Phillip A. Talbert announced.
Following the 2018 Camp and Carr Fires, FEMA assistance was available to individuals who, as a result of the fires, had emergency needs for food, shelter, and personal items. To qualify for certain benefits, an individual’s primary residence—the place where the individual resided at the time of the fire—had to have been destroyed or damaged by the fire, among other eligibility criteria.
According to court documents, FEMA issued two checks to Keffer based on an application for FEMA benefits that falsely claimed Keffer’s primary residence had been destroyed in the Camp Fire. Keffer cashed the two checks knowing he was not a victim of the Camp Fire and was not entitled to the money. This case came to the attention of federal law enforcement through a tip from a member of the public.
This case is the result of investigations by the Department of Homeland Security, Office of the Inspector General with assistance from the Federal Bureau of Investigation. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Keffer is scheduled to be sentenced by U.S. District Judge William B. Shubb on Aug. 15, 2022. Keefer faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The U.S. Department of Justice established the National Center for Disaster Fraud (NCDF) to investigate, prosecute, and deter fraud in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region. Its mission has expanded to include suspected fraud from any natural or manmade disaster. More than 20 federal, state, and local agencies participate in the NCDF, which allows the center to act as a centralized clearinghouse of information related to disaster relief fraud.
Former BOP Employee Pleads Guilty to Sexual Abuse of a WardRead the Press Release
LEXINGTON, Ky. – A Georgia man, formerly residing in Lexington, Ky., Hosea Lee Jr., 43, pleaded guilty on Friday, before Chief U.S. District Judge Danny Reeves, to committing five counts of sexual abuse of a ward.
According to his plea agreement, Lee was employed as a correctional officer at the Federal Medical Center in Lexington, and during that time he served as a drug treatment specialist. Between October and December 2019, on multiple occasions, Lee performed sexual acts on four separate victims, who attended his drug treatment classes.
Lee was indicted in July 2021.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; William J. Hannah, Special Agent in Charge, Department of Justice, Office of the Inspector General, Chicago Field Office; and Jodi Cohen, Special Agent in Charge, FBI, Louisville Field Office, jointly announced the guilty plea.
The investigation was conducted by DOJ-OIG and FBI. The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys Tashena Fannin and Kate Smith.
Lee is scheduled to be sentenced on July 29, 2022. He faces a maximum of 15 years in prison and a fine of not more than $250,000. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
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Federal Prosecutions Serve as Reminder to Comply with Tax Obligations as Filing Deadline ArrivesRead the Press Release
CHICAGO — With the arrival of Tax Day, the U.S. Attorney’s Office and IRS Criminal Investigation Division today reminded taxpayers to accurately file their returns and promptly pay any money owed.
Tax evaders face criminal charges, including potential incarceration, as well as civil penalties, and they remain responsible for all taxes and interest due, said John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago.
“Taxes are how governments provide essential services,” said U.S. Attorney Lausch. “Tax offenses are neither victimless nor without consequence. Our office strives to preserve the integrity of the federal tax system through vigorous enforcement of the internal revenue laws.”
“2021’s Tax Day is here, and it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” said IRS-CI SAC Campbell. “If you have someone else preparing your tax return, make sure they are a reputable return preparer. Dishonest tax professionals use a variety of methods to cheat the government. Remember, it is your responsibility to know what is on your income tax return. You are ultimately responsible for what gets filed with the IRS.”
Several Chicago-area defendants have recently been charged in federal court for a variety of tax violations, exemplifying the serious nature of tax offenses:
HERBERT O. MCDOWELL III, 79, of Evanston, Ill., was indicted last week on tax evasion charges for allegedly failing to pay individual and corporate income taxes. The indictment accuses McDowell of, among other things, shielding his individual income from 2015 to 2019 by causing money to be paid to his company – United Preferred Companies of Northfield, Ill. – but spending it for his personal benefit. Despite receiving more than $2.9 million in gross income in those years, McDowell failed to file a tax return or pay taxes on the income that he earned. McDowell’s arraignment is scheduled for Tuesday at 11:00 a.m. before U.S. Magistrate Judge Maria Valdez. The government in McDowell’s case is represented by Assistant U.S. Attorney Patrick J. King, Jr.
Professional tax preparer ADAM R. OLIVA, 40, of Cape Coral, Fla., and formerly of Rolling Meadows, Ill., was charged last month in connection with an alleged scheme to defraud his clients by using FDIC-insured financial institutions as a conduit to funnel more than $1 million in client funds to himself instead of the IRS. Oliva also allegedly directed the IRS to send some of his clients’ tax refunds to himself rather than to the clients. Oliva has pleaded not guilty to the charges. A status hearing in federal court in Chicago is scheduled for May 12, 2022. The government in Oliva’s case is represented by Assistant U.S. Attorney Rick Young.
YOUSEF ABU ALHAWA, 47, of Lockport, Ill., was charged this month with three counts of filing a false income tax return. Alhawa allegedly filed false returns from 2015 to 2017. Alhawa, who owned a grocery store in the Chicago Lawn neighborhood of Chicago, was also charged with multiple counts of wire fraud for allegedly fraudulently redeeming or causing to be redeemed benefits under the Supplemental Nutrition Assistance Program (“SNAP”) and the Special Supplemental Nutrition Program for Women, Infants, and Children (“WIC”). From 2011 to 2019, Alhawa redeemed more than $10.9 million in SNAP benefits and more than $3.6 million in WIC benefits through his grocery store, the indictment states. Alhawa has pleaded not guilty to the charges. A status hearing in federal court in Chicago is scheduled for May 18, 2022. The government in Alhawa’s case is represented by Assistant U.S. Attorney Paul Mower.
According to the IRS, taxpayers should file or request an extension of time to file and pay any taxes they owe by today’s deadline to avoid penalties and interest. For more information, the IRS encourages taxpayers to visit the official IRS website.
Federal Jury Convicts Twice Convicted Felon of Possessing A GunRead 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 a federal jury convicted Ernest Green, a/k/a Fire, 37, of Buffalo, NY, of being a felon in possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Michael J. Adler and Timothy C. Lynch, who handled the prosecution of the case, stated that on July 26, 2020, Green was seen on video running in an easterly direction away from the Towne Gardens Housing Complex. This was shortly after a shooting incident occurred in the Housing Complex during which a vehicle crashed into a tree in the middle of the courtyard. The firearm Green possessed was found five blocks east of where the shooting occurred. In November 2004, Green was convicted of a felony in Erie County Court. In October 2010, Green was convicted of a felony in New York State Court. As a result of those convictions, he is legally prohibited from possessing a firearm.
The verdict is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; and the Buffalo Police Department, under the direction of Commissioner Joseph Gramaglia.
Sentencing is scheduled for August 4, 2022, before U.S. District Judge Frank P. Geraci, Jr. who presided over the trial.
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Federal Jury Convicts Anchorage Man for Sex Trafficking a Minor and Child PornographyRead the Press Release
ANCHORAGE – A federal jury convicted an Anchorage man on Friday for sex trafficking a minor and production and possession of child pornography.
According to court documents and evidence presented at trial, Jayshon Moore, aka “China,” 39, began having sexual encounters with the minor victim when she was 15 years old. In 2018, he created numerous sexually explicit videos of the minor which were saved on social media. Moore possessed two videos of child pornography in his Snapchat account. In the spring of 2019 Moore sex trafficked the minor victim, setting prices, arranging transactions and taking the money she earned from commercial sex acts.
Moore was previously convicted of drug trafficking and firearms offenses, and he was arrested in June 2019 after violating terms of his supervised release. Law enforcement executed a search of Moore’s residence and found additional evidence of sex trafficking. Moore was indicted by a grand jury in February 2020.
“The exploitation of a minor for profit is a heinous crime requiring a staggering disregard for the safety and welfare of the victim,” said U.S. Attorney John E. Kuhn, Jr. for the District of Alaska. “Victims often suffer the trauma caused by sex trafficking for their entire lives. This conviction will protect others from Moore’s predatory conduct and sends a message we will not tolerate such abuse.”
"Moore engaged in the commercial sexual exploitation of a child. He demonstrated no regard to that child's age, suffering, or safety," said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. "The FBI and our law enforcement partners are absolutely committed to identifying and rescuing victims of sex trafficking and bringing their traffickers to justice."
He faces a mandatory minimum of 15 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force and the Anchorage Police Department investigated the case. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
Assistant U.S. Attorneys Jennifer Ivers and Michael Ebell are prosecuting 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 U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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El Dorado Hills Man Indicted for Fraud Against Merchant Cash Advance CompaniesRead the Press Release
SACRAMENTO, Calif. — A 10-count indictment was unsealed today against Suneet Singal, 43, of El Dorado Hills, charging him with wire fraud and mail fraud, U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 2017 and July 2017, Singal engaged in a scheme to make false representations in order to induce financing companies to provide funds to certain companies in the form of merchant cash advances, which are advances of money in exchange for promises to repay greater amounts of money from future receivables. To obtain the cash advances, Singal claimed that he was the owner of a company that operated a chain of fast-food franchises, but he did not actually own that company.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Miriam R. Hinman and Nicholas M. Fogg are prosecuting the case.
If convicted, Singal faces a maximum statutory penalty for each count of 20 years in prison and a fine of $250,000 or twice the gross gain or gross loss, whichever is greater. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
El Departamento de Justicia llega a un acuerdo con UPS que resuelve unas denuncias de discriminación relacionada con la inmigraciónRead the Press Release
El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con United Parcel Service Inc. (UPS). El acuerdo resuelve las acusaciones del Departamento de que UPS vulneró la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) cuando discriminó a un no ciudadano de los EE. UU. al pedir que presentara documentos adicionales para demostrar su permiso para trabajar después de que el trabajador ya había presentado suficientes pruebas.
«En el momento de comprobar el permiso de un individuo para trabajar, los empleadores no pueden pedir documentos adicionales más allá de los necesarios con base en el estatus de ciudadanía de un trabajador», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles está comprometida a proteger a los trabajadores de solicitudes innecesarias de documentos con base en su estatus de ciudadanía o nacionalidad de origen».
La investigación del Departamento determinó que UPS discriminó a un residente permanente legal recién contratado en Jacksonville, Florida al pedir que presentara su tarjeta de residente permanente y «visa laboral» para demostrar que tenía permiso para trabajar, a pesar de que ya había presentado su carnet de conducir y tarjeta de seguro social sin restricciones, los que constituyen pruebas suficientes. UPS pidió los documentos adicionales después de recibir una notificación de error de introducción de datos del programa de software propio que la compañía usa para acceder a E-Verify y verificar el permiso de trabajadores para trabajar. Cuando UPS recibió la notificación, la compañía pidió al trabajador documentos adicionales en vez de comprobar si había un error sencillo en la introducción de datos, tal y como la compañía hacía cuando recibía tales notificaciones para trabajadores ciudadanos de los EE. UU.
La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos innecesarios –o que especifiquen el tipo de documentación que un trabajador debe presentar– para demostrar su permiso para trabajar, debido a la ciudadanía, estatus migratorio o nacionalidad de origen del trabajador. Conforme la conciliación, UPS pagará una sanción civil, capacitará a sus empleadores en cuanto a la gestión adecuada de notificaciones de errores en la introducción de datos y se someterá a la supervisión por parte del Departamento.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias e intimidación.
Aquellos solicitantes de trabajo o empleados que creen haber sido discriminados por motivos de su estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o durante el proceso de verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
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Dubuque Veterinarian Pleads Guilty in Fake Dog Prescription SchemeRead the Press Release
A licensed Iowa veterinarian who wrote Tramadol prescriptions for fake dogs in order to obtain the controlled substance at local pharmacies pled guilty today in federal court in Cedar Rapids. Kristi Michelle Schreiber, age 42, from Dubuque, Iowa, was convicted of one count of acquiring a controlled substance by means of misrepresentation, fraud, deception, and subterfuge.
At the plea hearing and in a plea agreement, Schreiber admitted she is a licensed veterinarian in the State of Iowa and practices as an associate veterinarian at a pet clinic in Dubuque. From no later than February 2019 through at least February 2021, Schreiber wrote false and fraudulent prescriptions for Tramadol for dogs that did not exist or were not necessary. Tramadol is a Schedule IV controlled substance. Tramadol is a centrally acting opioid analgesic used to treat moderate pain. According to the American Kennel Club, Tramadol is a medication that veterinarians commonly prescribe to manage pain in dogs, and it is one of the few human painkillers that is safe to administer to dogs.
In March 2021, a pharmacy chain in Dubuque reported Schreiber’s diversion of tramadol to the Drug Enforcement Administration (DEA) Drug Control Division. The DEA conducted an inspection of the pet clinic at which Schreiber works and requested the files for some of dogs for which Schreiber had written prescriptions, but Schreiber could not produce all the files. Schreiber falsely told the DEA that some of the dogs were animals of “close friends” and also that she would “pick [the prescriptions] up for friends and family because I want to make sure the dog gets it.” Schreiber later admitted she took all the Tramadol herself. The investigation revealed that, between March 10, 2019, and March 9, 2021, Schreiber issued a total of 266 prescriptions for animals that purportedly were under her care. Of these 266 prescriptions, 186 (or approximately 70%) were for Tramadol HCL 50mg tablets.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Schreiber was released on bond pending sentencing. Schreiber faces a possible maximum sentence of four years’ imprisonment, a $250,000 fine, and one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Timothy L. Vavricek and was investigated by the Drug Enforcement Administration, Drug Control Division.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 22-CR-1012.
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Detroit Man Sentenced for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man was sentenced today to three years and 10 months in prison, to be followed by three years of supervised release, for possession with intent to distribute heroin.
According to court documents and statements made in court, law enforcement officers were conducting surveillance on a Bernard Street residence in Huntington on July 28, 2021, when they saw Marcellas Cortez Mitchell, 29, leave the residence in a vehicle. Mitchell was driving with a revoked license and officers stopped the vehicle. Upon approaching the vehicle, officers observed a front seat passenger making suspicious movements. A search of the passenger yielded two baggies containing suspected heroin. Mitchell admitted that he had given the passenger the baggies to conceal.
Mitchell pleaded guilty in December 2021 to possession with intent to distribute heroin. The West Virginia State Police Forensic Laboratory tested the contents of the two baggies, and found both contained fentanyl. One contained 6.53 grams of fentanyl and the other contained 9.83 grams of fentanyl.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe prosecuted the case.
The case was prosecuted as part of Operation Synthetic Opioid Surge (SOS), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
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-00139.
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