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6 April 2022
Statement on Attorney General Merrick B. GarlandRead the Press Release
Attorney General Garland this afternoon tested positive for COVID-19 through antigen tests. He asked to be tested after learning that he may have been exposed to the virus. At the time, he is not experiencing symptoms. The Attorney General is fully vaccinated and boosted.
In accordance with CDC guidelines, the Attorney General will isolate at home for at least five days. He will work virtually during this period and will return to the office following a negative test for the virus. The department will conduct contact tracing in accordance with CDC protocols.
Statement of U.S. Attorney Damian Williams on the Verdict in U.S. V. Lawrence RayRead the Press Release
“Twelve years ago, Larry Ray moved into his daughter’s dorm room at Sarah Lawrence College. And when he got there, he met a group of friends who had their whole lives ahead of them. For the next decade, he used violence, threats, and psychological abuse to try to control and destroy their lives. He exploited them. He terrorized them. He tortured them. Let me be very clear. Larry Ray is a predator. An evil man who did evil things. Today’s verdict finally brings him to justice.
This verdict would not have been possible without the victims who testified in court. We are in awe of their bravery in the face of incredible trauma. I also want to thank the career prosecutors in my Office, the Southern District of New York, and our law enforcement partners, who stood with those victims and worked tirelessly to ensure that justice was done. Thank you.”
St. Cloud Man Sentenced to Prison for Food Stamp, Covid Assistance FraudRead the Press Release
ST. PAUL, Minn. – A St. Cloud man has been sentenced to 30 months in prison followed by three years of supervised release and ordered to pay $4,187,999.72, in restitution for wire fraud, announced U.S. Attorney Andrew M. Luger.
According to court documents, from 2009 through 2021, Hared Nur Jibril, 60, owned and operated Hormud Meat and Grocery Market located in St. Cloud, Minnesota. In 2009, Jibril completed the application and agreement and signed the required certifications for the Hormud Market to participate in the Supplemental Nutrition Assistance Program (SNAP). At that time Hormud Market was also authorized as a Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) vendor. The SNAP and WIC programs are run by the U.S. Department of Agriculture (USDA) in collaboration with the states. Both programs required Jibril to periodically recertify compliance. From 2018 through 2021, Jibril and other employees of Hormud Market devised and participated in a scheme to defraud the USDA by exchanging SNAP and WIC benefits for cash and ineligible items including, phone minutes, personal care products, and prepared food from Jibril’s adjoining restaurant. The scheme resulted in a loss amount of more than $4.1 million to the SNAP and WIC programs.
According to court documents, during the spring and summer of 2020, Minnesota provided unemployment insurance benefits to assist individuals who had lost work due to the COVID-19 pandemic. Despite his continued self-employment at the Hormud Market, Jibril applied to the Minnesota Department of Employment and Economic Development (DEED) for unemployment benefits, falsely claiming that he had been laid off from work due to COVID-19. DEED granted his application for benefits, which were ultimately funded by the United States Department of the Treasury as part of pandemic relief efforts. In total, Jabril received more than $32,724 in unemployment assistance.
Jibril was sentenced yesterday by U.S. District Judge Eric C. Tostrud. On December 1, 2021, Jabril pleaded guilty to one count of conspiracy to commit wire fraud and one count of wire fraud.
This case was the result of an investigation conducted by the USDA-OIG, the FBI, the U.S. Department of Labor-OIG, and the Minnesota Department of Health.
This case was prosecuted by Assistant U.S. Attorney Sarah E. Huddleston.
Sex offender sent to prison for two child pornography convictionsRead the Press Release
HOUSTON – A 40-year-old previous Houston resident has been ordered to federal prison following his admission that he received and possessed child pornography, announced U.S. Attorney Jennifer B. Lowery.
Joshua Tannery pleaded guilty Nov. 16, 2020.
Today, U.S. District Judge George C. Hanks Jr. sentenced him to 97 months in federal prison. At the hearing, the court also heard additional information including a victim impact statement detailing the sexual abuse Tannery committed on a child. The court noted he had a duty to the victims whose voices are not always heard. He hoped the prison term discouraged others from following in his footsteps, gave Tannery the opportunity to change and showed there were consequences to Tannery’s conduct. He will also serve five years on supervised release following completion of his prison term. During that time, he will have to comply with numerous requirements designed to restrict his access to children and the internet. Tannery will also be ordered to register as a sex offender.
In September 2019, law enforcement initiated an investigation of child pornography sharing which led them to Tannery. They executed a search warrant and seized his electronic devices. Forensic analysis resulted in the discovery of child pornography, including images of prepubescent children, some as young as 10 years of age.
Following Tannery’s arrest, a sexual assault victim came forward reporting that Tannery had abused her years ago.
Tannery was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation.
Assistant U.S. Attorney Zahra Jivani Fenelon is prosecuting the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Scranton Man Charged with Firearm OffenseRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Victorious Minter, age 36, of Scranton, Pennsylvania, was indicted yesterday by a federal grand jury for unlawfully possessing a firearm as a convicted felon.
According to United States Attorney John C. Gurganus, the indictment alleges that on January 5, 2022, Minter possessed a loaded Glock 22 .40 caliber semi-automatic pistol in Lackawanna County, Pennsylvania, after having previously been convicted of a crime punishable by more than one year in prison.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Scranton Police Department, and the Lackawanna County District Attorney’s Office. Special Assistant United States Attorney Brian Gallagher and Assistant United States Attorney James Buchanan are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The maximum penalty under federal law for these offenses is ten years’ imprisonment and a fine of $250,000. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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San Fernando Valley Man Sentenced to 18 Months in Prison for Starting Fire in Santa Monica Restaurant During May 2020 Civil UnrestRead the Press Release
LOS ANGELES – A West Hills man was sentenced today to 18 months in federal prison for starting a fire that caused substantial damage to a Santa Monica restaurant during the civil disturbances that erupted during the spring of 2020.
Micah Tillmon, 20, was sentenced by United States District Judge Michael W. Fitzgerald. A restitution hearing will be scheduled for a later date.
Tillmon pleaded guilty in September 2021 to one count of possession of an unregistered destructive device.
On May 31, 2020, Tillmon entered Sake House by Hikari, a Japanese restaurant located in downtown Santa Monica, without authorization and while the business was closed because of the civil unrest occurring in the city at that time. While inside the restaurant, Tillmon possessed and used an incendiary device to ignite a fire that rapidly grew, enveloped the entire restaurant space and spread to other areas of the building adjacent to the restaurant.
According to court documents, security video from the restaurant shows Tillmon removing “a red tube-shaped object from his jacket, which he placed behind the reception desk area of the restaurant before walking away. Within seconds of that action, smoke and fire appeared from the area.”
The Santa Monica Fire Department (SMFD) responded to the fire and extinguished the flames using several fire trucks and numerous personnel. Due to safety concerns that accompanied the city’s civil unrest, SMFD prematurely abandoned the scene. As a result, SMFD needed to return to the scene several times throughout the night to extinguish additional flare-ups. The restaurant has since permanently closed.
Tillmon was identified by detectives with the Santa Monica Police Department, who reviewed numerous security videos and social media posts. Tillmon was also linked to the fire when investigators uncovered a video showing his white Ford Explorer parking next to the Sake House four minutes before the fire started and then reversing across the street soon after the fire started, according to court documents.
Tillmon possessed an incendiary device that had not been registered with the National Firearms Registration and Transfer Record, the central federal registry for all items regulated under the National Firearms Act.
“[Tillmon’s] actions on May 31, 2020, were only possible because of a complete breakdown in social order,” prosecutors wrote in a sentencing memorandum. “Riots like the ones that convulsed this district in the summer of 2020 are a stark reminder of the thin line that separates state control and anarchy.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Santa Monica Police Department investigated this matter.
Assistant United States Attorney Shawn T. Andrews of the Violent and Organized Crime Section prosecuted this case.
San Antonio Man Sentenced for Preparing False Tax ReturnsRead the Press Release
SAN ANTONIO – A San Antonio man was sentenced today to five years of home confinement and ordered to pay $273,372 in restitution for preparing false tax returns.
According to court documents, Richard Medina Sr., 68, operated an unnamed and unregistered tax return preparation business out of his residence from 2013 to 2016. Medina prepared false federal income tax returns for his clients by claiming false credits, Individual Retirement Accounts (IRAs), and itemized deductions. Medina fraudulently maximized tax credits to generate undue tax refunds, causing a loss of over $273,000 Medina was also required to notify the bankruptcy trustee of all forms of income after filing for bankruptcy in 2013 but lied under oath about income from his tax preparation business.
On June 23, 2020, Medina pleaded guilty to one count of aiding and assisting in the preparation of a false tax return and one count of false statement in bankruptcy.
“Unscrupulous tax return preparers such as Medina do millions and millions of dollars in harm both to the U.S. Treasury and to their taxpayer clients, who are ultimately responsible for the accuracy of their returns,” said U.S. Attorney Ashley C. Hoff. “Medina’s use of false information extended both to his own personal returns and to his omission of his income from filings he made when he pursued bankruptcy protection.”
The Internal Revenue Service – Criminal Investigation (IRS-CI) investigated the case.
Assistant U.S. Attorney William R. Harris prosecuted the case.
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Russian Oligarch Charged with Violating U.S. SanctionsRead the Press Release
A Russian national is charged with violating U.S. sanctions arising from the 2014 Russian undermining of democratic processes and institutions in Ukraine.
According to the indictment, which was unsealed today in the Southern District of New York, Konstantin Malofeyev, 47, of Russia, is charged with conspiracy to violate U.S. sanctions and violations of U.S. sanctions in connection with his hiring of an American citizen, Jack Hanick, to work for him in operating television networks in Russia and Greece and attempting to acquire a television network in Bulgaria. As alleged, Malofeyev also conspired with Hanick and others to illegally transfer a $10 million investment that Malofeyev made in a U.S. bank to a business associate in Greece, in violation of the sanctions blocking Malofeyev’s assets from being transferred. Along with the indictment, the United States issued a seizure warrant for Malofeyev’s U.S. investment. Malofeyev remains at large and is believed to be in Russia.
“The Justice Department will work relentlessly to counter Russian aggression, including by enforcing U.S. sanctions law,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “As alleged in the indictment, Konstantin Malofeyev is a Russian oligarch who has been sanctioned since 2014 for threatening Ukraine and providing financial support to the Donetsk separatist region. Malofeyev knowingly violated U.S. sanctions by paying for services of a U.S. person and by seeking to transfer money that had been invested in the United States.”
“Konstantin Malofeyev is closely tied to Russian aggression in Ukraine, having been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine,” said U.S. Attorney Damian Williams for the Southern District of New York. “The United States sanctions on Malofeyev prohibit him from paying or receiving services from United States citizens, or from conducting transactions with his property in the United States. But as alleged, he systematically flouted those restrictions for years after being sanctioned. The indictment unsealed today shows this office’s commitment to the enforcement of laws intended to hamstring those who would use their wealth to undermine fundamental democratic processes. This office will continue to be a leader in the Justice Department’s work to hold accountable actors who would support flagrant and unjustified acts of war.”
“The allegations in this case go back many years showing just how much effort the FBI and its partners put into investigating these crimes,” said Assistant Director Alan E. Kohler Jr. of the FBI’s Counterintelligence Division. “According to the indictment, the defendant used shell companies and other means to hide his deceptions and evade important sanctions meant to ensure the territorial integrity of Ukraine. While this case is about violating sanctions, it’s also about bringing people to justice who think they can violate our laws with impunity.”
“Kremlin-linked Russian oligarch Konstantin Malofeyev played a leading role in supporting Russia’s 2014 invasion of eastern Ukraine, continues to run a pro-Putin propaganda network, and recently described Russia’s 2022 military invasion of Ukraine as a ‘holy war,’” said Assistant Director Michael J. Driscoll of the FBI’s New York Field Office. “The FBI works tirelessly to protect our national interests, and we will continue to use all the resources at our disposal to aggressively counter Russia’s malign activity around the world.”
According to court documents, in 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property and interest in property that came within the United States or the possession or control of any U.S. person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in actions or policies that threatened the peace, security, stability, sovereignty or territorial integrity of Ukraine, or who materially assist, sponsor or provide financial, material or technological support for, or goods and services to, individuals or entities engaging in such activities.
Executive Order 13660, along with certain regulations issued pursuant to it (the Ukraine-Related Sanctions Regulations) prohibits, among other things, making or receiving any funds, goods or services by, to, from or for the benefit of any person whose property and interests in property are blocked.
On Dec. 19, 2014, the Department of Treasury’s Office of Foreign Assets Control (OFAC) designated Konstantin Malofeyev as a Specially Designated National (SDN) pursuant to Executive Order 13660. OFAC’s designation of Malofeyev explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the indictment, Malofeyev hired a U.S. citizen named Jack Hanick in 2013 to work on a new Russian cable television news network (the Russian TV Network) that Malofeyev was creating. Malofeyev negotiated directly with Hanick regarding Hanick’s salary, payment for Hanick’s housing in Moscow, and Hanick’s Russian work visa, and Malofeyev paid Hanick through two separate Russian entities through the end of 2018.
After OFAC designated Malofeyev as a SDN in December 2014, Malofeyev continued to employ Hanick on the Russian TV Network, in violation of the Ukraine-Related Sanctions Regulations. Malofeyev also dispatched Hanick to work on a project to establish and run a Greek television network and on efforts to acquire a Bulgarian television network. At Malofeyev’s direction, Hanick traveled to Greece and to Bulgaria on multiple occasions in 2015 and 2016 to work on these initiatives and reported directly back to Malofeyev on his work. For instance, in November 2015, Hanick wrote to Malofeyev that the Greek television network would be an “opportunity to detail Russia’s point of view on Greek TV.” In connection with Malofeyev’s efforts to acquire the Bulgarian television network, Malofeyev instructed Hanick to take steps to conceal Malofeyev’s role in the acquisition by conducting the negotiations through a Greek associate of Malofeyev (the Greek Business Associate), so that it would appear the buyer was a Greek national rather than Malofeyev.
Malofeyev also employed Hanick to assist Malofeyev in transferring a $10 million investment in a Texas-based bank holding company (the Texas Bank) to the Greek Business Associate in violation of the Ukraine-Related Sanctions Regulations. In 2014, Malofeyev used a shell company to make the investment, and beginning in or about March 2015, Malofeyev began making plans to transfer ownership of the shell company to the Greek Business Associate as a means to transfer the investment in the Texas Bank. In or about May 2015, Malofeyev’s attorney drafted a Sale and Purchase Agreement that purported to transfer the shell company to the Greek Business Associate in exchange for one U.S. dollar. In June 2015 Malofeyev had Hanick physically transport a copy of Malofeyev’s certificate of shares in the Texas Bank from Moscow to Athens to be given to the Greek Business Associate. Malofeyev signed the Sale and Purchase Agreement in June 2015, but the agreement was fraudulently backdated to July 2014 to make it appear that the transfer had taken place prior to the imposition of U.S. sanctions. Malofeyev’s attorney then falsely represented to the Texas Bank that the transfer had taken place in July 2014, even though Malofeyev and his attorney well knew that the transfer of the shell company was executed in June 2015.
Along with the unsealed indictment, a seizure warrant was issued in the Southern District of New York for Malofeyev’s Texas Bank investment, which had been converted by the Texas Bank in 2016 to cash held in a blocked U.S. bank account. The United States recovered those funds pursuant to the warrant and will seek forfeiture of those funds as property that constitutes or is derived from proceeds traceable to the commission of the offenses alleged in the indictment.
Each of the two sanctions charges in the indictment carry a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating the case, with valuable assistance provided by the Justice Department’s National Security Division and Office of International Affairs.
Assistant U.S. Attorneys Thane Rehn, Jessica Greenwood, and Vladislav Vainberg for the Southern District of New York are prosecuting the case, with valuable assistance provided by Trial Attorney Nathan Swinton of the National Security Division’s Counterintelligence and Export Control Section.
Russian Oligarch Charged with Violating United States SanctionsRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation, announced today the unsealing of a criminal indictment charging a violation of United States sanctions arising from the 2014 Russian undermining of democratic processes and institutions in Ukraine. KONSTANTIN MALOFEYEV is charged with conspiracy to violate United States sanctions and violations of United States sanctions in connection with his hiring of an American citizen, Jack Hanick, to work for him in operating television networks in Russia and Greece and attempting to acquire a television network in Bulgaria. MALOFEYEV also conspired with Hanick and others to illegally transfer a $10 million investment that MALOFEYEV had made in a United States bank to a business associate in Greece, in violation of the sanctions blocking MALOFEYEV’s assets from being transferred. Along with the Indictment, the United States Attorney announced the seizure of MALOFEYEV’s United States investment.
U.S. Attorney Damian Williams said: “Konstantin Malofeyev is closely tied to Russian aggression in Ukraine, having been determined by OFAC to have been one of the main sources of financing for the promotion of Russia-aligned separatist groups operating in the sovereign nation of Ukraine. The United States sanctions on Malofeyev prohibit him from paying or receiving services from United States citizens, or from conducting transactions with his property in the United States. But as alleged, he systematically flouted those restrictions for years after being sanctioned. The Indictment unsealed today shows this Office’s commitment to the enforcement of laws intended to hamstring those who would use their wealth to undermine fundamental democratic processes. This Office will continue to be a leader in the Justice Department’s work to hold accountable actors who would support flagrant and unjustified acts of war.”
FBI Assistant Director Michael J. Driscoll said: “Kremlin-linked Russian oligarch Konstantin Malofeyev played a leading role in supporting Russia’s 2014 invasion of eastern Ukraine, continues to run a pro-Putin propaganda network, and recently described Russia’s 2022 military invasion of Ukraine as a ‘holy war.’ The FBI works tirelessly to protect our national interests, and we will continue to use all the resources at our disposal to aggressively counter Russia’s malign activity around the world.”
According to the Indictment unsealed today in Manhattan federal court:[1]
In 2014, the President issued Executive Order 13660, which declared a national emergency with respect to the situation in Ukraine. To address this national emergency, the President blocked all property and interest in property that came within the United States or the possession or control of any United States person, of individuals determined by the Secretary of the Treasury to be responsible for or complicit in, or who engaged in, actions or policies that threatened the peace, security, stability, sovereignty, or territorial integrity of Ukraine, or who materially assist, sponsor, or provide financial, material, or technological support for, or goods and services to, individuals or entities engaging in such activities. Executive Order 13660, along with certain regulations issued pursuant to it (the “Ukraine-Related Sanctions Regulations”) prohibits, among other things, making or receiving any funds, goods, or services by, to, from, or for the benefit of any person whose property and interests in property are blocked.
On December 19, 2014, the Department of Treasury’s Office of Foreign Assets Control (“OFAC”) designated KONSTANTIN MALOFEYEV as a Specially Designated National (“SDN”) pursuant to Executive Order 13660. OFAC’s designation of MALOFEYEV explained that he was one of the main sources of financing for Russians promoting separatism in Crimea, and has materially assisted, sponsored, and provided financial, material, or technological support for, or goods and services to or in support of the so-called Donetsk People’s Republic, a separatist organization in the Ukrainian region of Donetsk.
As alleged in the Indictment, MALOFEYEV hired a United States citizen named Jack Hanick in 2013 to work on a new Russian cable television news network (the “Russian TV Network”) that MALOFEYEV was creating. MALOFEYEV negotiated directly with Hanick regarding Hanick’s salary, payment for Hanick’s housing in Moscow, and Hanick’s Russian work visa, and MALOFEYEV paid Hanick through two separate Russian entities through the end of 2018.
After OFAC designated MALOFEYEV as a SDN in December 2014, MALOFEYEV continued to employ Hanick on the Russian TV Network, in violation of the Ukraine-Related Sanctions Regulations. MALOFEYEV also dispatched Hanick to work on a project to establish and run a Greek television network and on efforts to acquire a Bulgarian television network. At MALOFEYEV’s direction, Hanick traveled to Greece and to Bulgaria on multiple occasions in 2015 and 2016 to work on these initiatives, and reported directly back to MALOFEYEV on his work. For instance, in November 2015, Hanick wrote to MALOFEYEV that the Greek television network would be an “opportunity to detail Russia’s point of view on Greek TV.” In connection with MALOFEYEV’s efforts to acquire the Bulgarian television network, MALOFEYEV instructed Hanick to take steps to conceal MALOFEYEV’s role in the acquisition by conducting the negotiations through a Greek associate of MALOFEYEV (the “Greek Business Associate”), so that it would appear the buyer was a Greek national rather than MALOFEYEV.
MALOFEYEV also employed Hanick to assist MALOFEYEV in transferring a $10 million investment in a Texas-based bank holding company (the “Texas Bank”) to the Greek Business Associate in violation of the Ukraine-Related Sanctions Regulations. In 2014, MALOFEYEV had used a shell company to make the investment, and beginning in or about March 2015, MALOFEYEV began making plans to transfer ownership of the shell company to the Greek Business Associate as a means to transfer the investment in the Texas Bank. In or about May 2015, MALOFEYEV’s attorney drafted a Sale and Purchase Agreement that purported to transfer the shell company to the Greek Business Associate in exchange for one U.S. dollar. In June 2015 MALOFEYEV had Hanick physically transport a copy of MALOFEYEV’s certificate of shares in the Texas Bank from Moscow to Athens to be given to the Greek Business Associate. MALOFEYEV signed the Sale and Purchase Agreement in June 2015, but the agreement was fraudulently backdated to July 2014 to make it appear that the transfer had taken place prior to the imposition of United States sanctions. MALOFEYEV’s attorney then falsely represented to the Texas Bank that the transfer had taken place in July 2014, even though MALOFEYEV and his attorney well knew that the transfer of the shell company was executed in June 2015.
Along with the unsealed Indictment, the United States Attorney announced the issuance of a seizure warrant for MALOFEYEV’s Texas Bank investment, which had been converted by the Texas Bank in 2016 to cash held in a blocked United States bank account. The United States recovered those funds pursuant to the warrant and will seek forfeiture of those funds as property that constitutes or is derived from proceeds traceable to the commission of the offenses alleged in the Indictment.
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MALOFEYEV, 47, of Russia, remains at large, and is believed to be in Russia. Each of the two sanctions charges in the Indictment carries a maximum penalty of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation and thanked the support and expertise of the Department of Justice’s National Security Division and Office of International Affairs in the conduct of this matter.
On March 2, 2022, the Attorney General announced the launch of Task Force KleptoCapture, an interagency law enforcement task force dedicated to enforcing the sweeping sanctions, export restrictions, and economic countermeasures that the United States has imposed, along with allies and partners, in response to Russia’s unprovoked military invasion of Ukraine. The task force will leverage all the Department’s tools and authorities against efforts to evade or undermine the economic actions taken by the U.S. government in response to Russian military aggression.
The prosecution is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Thane Rehn, Jessica Greenwood, and Vladislav Vainberg are in charge of the prosecution.
[1] The entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Restraining Order Entered Against Florida Operators of Technical-Support Fraud Scheme Targeting SeniorsRead the Press Release
Miami, Florida – The U.S. District Court for the Southern District of Florida has ordered Florida company, Windows Service Center LLC, and its owner and operator, Erica Herson, 41, of Miami, to stop operating a technical-support fraud scheme that is alleged to have defrauded elderly and vulnerable U.S. victims out of over $1 million.
In a complaint filed on March 30, the United States alleges that Herson operated a scheme through Windows Service Center, as well as through her prior company USEL Support LLC, in which she contacted individuals over the phone and convinced them to purchase overpriced and unnecessary technical support services and anti-virus software by falsely claiming that their computers were infected with viruses or malware or were accessed by hackers. The complaint alleges that, in reality, Herson had no specific knowledge of the security of the victims’ computers prior to making the calls.
The complaint also alleges that Herson charged victims thousands of dollars for the installation of software that is available online for free or for a low cost. In addition, the complaint alleges that once a victim had made a purchase from USEL Support, Herson and USEL Support contacted that same victim repeatedly to try to obtain further payments by falsely claiming that the victim’s computer had additional security problems. The complaint alleges that Herson is continuing the same technical support fraud scheme through her new company, Windows Service Center.
The temporary restraining order entered March 31 prohibits Herson and Windows Service Center from engaging in telemarketing activity related to computer or software technical support and from accepting consumer payments related to any computer or software technical support service.
This case is being handled by Assistant U.S. Attorney James A. Weinkle for the U.S. Attorney’s Office in the Southern District of Florida and Trial Attorneys Amy Kaplan and Ann Entwistle of the Civil Division’s Consumer Protection Branch.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
The public can report suspected fraud to law enforcement and file a complaint at https://reportfraud.ftc.gov/#/ and/or www.ic3.gov/Home/FileComplaint.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish and other languages are available.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 22-cv-20964.
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Putnam Man Sentenced to Prison for Federal Firearm OffenseRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that NICHOLAS SCHNEIDER, 32, of Putnam, was sentenced today by U.S. District Judge Sarah A. L. Merriam in New Haven to six months of imprisonment, followed by two years of supervised release, for a firearm offense. Judge Merriam also ordered Schneider to pay a $3,000 fine.
According to court documents and statements made in court, on June 5, 2020, ATF agents searched a residence in Canterbury where Schneider was living. In Schneider’s bedroom, investigators located numerous rounds of ammunition, various firearm parts, a firearm kit, and firearm magazines.
Schneider’s criminal history includes state convictions for felony narcotics offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Schneider was arrested on a federal criminal complaint on December 14, 2020. On January 12, 2022, he pleaded guilty to unlawful possession of ammunition by a felon.
Schneider, who is released on bond, is required to report to prison on May 18.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Connecticut State Police, with the assistance of the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
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.
President of Local Chapter of National Treasury Employees Union Convicted of Wire Fraud and False Statements ChargesRead the Press Release
A federal jury found Jonathon Ortino, former president of the National Treasury Employees Union Chapter 165 (Union), guilty of two counts of making false statements and three counts of wire fraud in connection with a scheme to defraud the Union and to hide the fraud by submitting false annual financial reports to the Department of Labor, announced U.S. Attorney Stephanie M. Hinds, Department of Homeland Security, Office of Inspector General (DHS OIG) Special Agent in Charge Matthew Brackett, and U.S. Department of Labor, Office of Labor Management Standards (DOL OLMS) District Director Bruce Edgington. The jury acquitted Ortino of one count of making false statements. The verdict was handed down after a five-day jury trial before the Hon. William Orrick, U.S. District Judge.
Between September 2013 and September 2017, Ortino, 47, of San Bruno, Calif., was the president of the Union, which represents Customs and Border Protection officers in California and Nevada. The evidence submitted at trial demonstrated that, beginning in February 2014, Ortino improperly took more than $84,000 in Union money, using it on himself, his wife, his friends, and other associates. The evidence also showed that Ortino falsely reported the amount of money paid to him in 2014 and 2016 on the Department of Labor’s Form LM-3 Labor Organization Annual Report (“Form LM-3”), which required Ortino to report, among other things, loans and disbursements made to Union officers, and money received by the Union.
On June 4, 2019, a federal grand jury returned a Superseding Indictment charging Ortino with three counts of making false statements to a government agency, in violation of 18 U.S.C. §§ 1001(a)(2) and 2, and three counts of wire fraud, in violation of 18 U.S.C. § 1343. After the trial, the jury convicted Ortino on five counts—all three counts of wire fraud and two of the three false-statements counts.
Ortino faces a statutory maximum term of 5 years in prison and a $250,000 fine for each count of making false statements and a statutory maximum term of 20 years in prison and a $250,000 fine on each count of wire fraud. In addition, as part of Ortino’s sentence, the court may order a term of supervised release, restitution, and additional assessments; however, any sentence following conviction will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. The court has not yet published a date for sentencing.
Assistant U.S. Attorneys Nicholas Parker and Charles Bisesto are prosecuting the case with the assistance of Rebecca Shelton. This case resulted from an investigation by DHS OIG and the DOL OLMS.
Podiatrist pays six figures to settle allegations involving false procedureRead the Press Release
HOUSTON – A 67-year-old podiatrist from Cypress has agreed to pay $865,000 to resolve allegations that she submitted false medical claims for the use of electro-acupuncture devices, announced U.S. Attorney Jennifer B. Lowery.
Dr. Judith Rubin is a podiatrist who practices in Cypress.
From March 1, 2018, to Nov. 30, 2019, Rubin billed Medicare for the surgical implantation of neurostimulator electrodes. This surgical procedure usually requires the use of an operating room. Medicare typically pays thousands of dollars per procedure.
However, neither Rubin nor her staff performed these surgical procedures. Instead, patients received devices used for electro-acupuncture, which only involves inserting needles into patients’ ears and taping the neurostimulator behind them with an adhesive.
To date, this is the eighth case the Southern District of Texas has resolved for similar false claims. The other matters included settlements with a Katy anesthesiologist, Laredo pain doctor, Houston pain doctor, Houston chiropractor, Rockport chiropractor, Woodlands pain doctor and Cypress marketing representative.
The U.S. Attorney’s Office conducted the investigation with the Department of Health and Human Services – Office of Inspector General and Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Pocatello Man Convicted by a Federal Jury for Failing to Register as a Sex OffenderRead the Press Release
POCATELLO – A federal jury sitting in Pocatello convicted a Pocatello man on April 5, 2022, for failure to register as a sex offender.
According to court records and evidence presented at trial, Kenneth Shaye Simmons, 46, was previously convicted in the state of Utah of sexual abuse of a child. As a result of his conviction, the Sex Offender Registration and Notification Act (SORNA) required Simmons to register as a sex offender.
In May 2020, Simmons left the state of Nevada, non-compliant with Nevada’s sex offender registry, and moved to Idaho. After moving to Idaho, Simmons failed to register as a sex offender while living in the state. He was apprehended in August 2020, after law enforcement received a tip regarding his location.
Simmons is scheduled to be sentenced on July 26, 2022, and faces a maximum penalty of ten years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“Sex offender registration and notification programs are important for public safety purposes,” said U.S. Attorney Rafael M. Gonzalez, Jr. “Sex offender registration is a system for monitoring and tracking sex offenders following their release into the community. The registration provides important information about convicted sex offenders to local and federal authorities and the public, such as offender's name, current location, and past offenses. This office and our partners take very seriously the failure to register and will bring to justice those sexual offenders, who fail to register,” Mr. Gonzalez concluded.
U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho commended the cooperative efforts of the Bannock County Sheriff's Office, Pocatello Police Department, and the U.S. Marshals Service, which led to charges, and the Assistant U.S. Attorney, who presented the case to the jury.
Simmons was prosecuted for a violation of the Sex Offender Registration and Notification Act (SORNA) passed by Congress in 2006. The Act requires sex offenders to register and keep their registration current in each jurisdiction where they reside. Violations of SORNA can be prosecuted in federal court.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Philadelphia Man Sentenced to 20 Years in Prison After Being Convicted at Trial of Unlawfully Possessing Drugs and GunsRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Jamir Foushee, a/k/a “Jamir Young,” 32, of Philadelphia, PA, was sentenced to sentenced to 20 years in prison by United States District Judge Michael M. Baylson for multiple narcotics and firearms offenses. The charges against the defendant stemmed from his unlawful possession of these items while riding in a car stopped by Philadelphia police in the Kensington section of the city.
In June 2021, the defendant was found guilty by a jury of possession with intent to distribute “crack” cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon. The evidence presented at trial proved that, in April 2019, Foushee was riding as a passenger in his own car when it was stopped for a traffic violation by Philadelphia Police officers. After observing the defendant reach under his seat, officers discovered a handgun under that seat. The defendant then stated to officers that the guns and drugs in the car were his. Police detained Foushee and the driver of the vehicle, searched the car, and found crack cocaine packaged for sale, as well as two additional firearms. At the time of the incident, the defendant was a convicted felon and was not allowed by law to possess a firearm.
“Drug distribution and gun violence are an epidemic in Philadelphia, and the federal government is aggressively prosecuting both; we are ‘All Hands On Deck’ to get dangerous criminals like this defendant off the streets,” said U.S. Attorney Williams. “As a previously convicted felon, Foushee knew all too well that he is prohibited from possessing a firearm, , and his simultaneous possession of illegal narcotics made him even more dangerous. We want to thank our law enforcement partners in this case, the ATF and the Philadelphia Police Department, for their hard work and dedication.”
“A convicted felon carrying drugs and guns clearly threatens the safety of the community,” said Matthew Varisco, Special Agent in charge of ATF’s Philadelphia Field Division. “A jury convicted this defendant of federal crimes and with this jail sentence, he will no longer be in a position to harm anyone for quite some time. Thank you to our partners at the Philadelphia Police Department and the U.S. Attorney’s Office for their continued support in combatting violent crime.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney David E. Troyer, and Department of Justice Trial Attorney Randall Warden.
Pennsylvania Man Admits Bank Fraud Conspiracy that Operated in South Jersey and Southeastern PennsylvaniaRead the Press Release
CAMDEN, N.J. – A Pennsylvania man today admitted his role in a bank fraud conspiracy that targeted 12 financial institutions in southern New Jersey and southeastern Pennsylvania, U.S. Attorney Philip R. Sellinger announced.
Tunde Adeowo, 41, of Lansdowne, Pennsylvania, pleaded guilty before U.S. district Judge Noel L. Hillman in Camden federal court to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
Adeowo was part of a multi-defendant, Nigerian-based, multi-layered criminal organization that engaged in a massive bank fraud conspiracy in several states, including New Jersey, Pennsylvania, Maryland, and Rhode Island, between June 2016 and March 2020. Members of the group acquired numerous business checks that were stolen from the United States mail, altered the payee on the checks to a fraudulent name. They deposited the checks into bank accounts that had been opened with forged foreign passport documents and fraudulent U.S. visas that matched the names on the stolen checks. Once the banks credited all or a portion of the funds to the accounts, but before the checks had cleared, the defendants withdrew the funds from ATMs or purchased money orders, using debit cards associated with the fraudulent accounts. Members of the organization have used over 400 fraudulent accounts opened with fake identity documents to defraud the victim banks. To date, the total loss to the victim banks is approximately $6 million.
Adeowo admitted his role in the conspiracy, which included using several false identities to open fraudulent bank accounts. He then made numerous deposits of stolen checks to these accounts and withdrew funds from the accounts.
As part of his plea, Adeowo agreed to forfeit his interest in approximately $90,000 worth of money orders which were proceeds of the bank fraud and which were seized from a public storage facility in Philadelphia used by the conspirators to store additional fraudulent identity documents and proceeds of the bank fraud.
The bank fraud conspiracy charge carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for Aug. 11, 2022.
U.S. Attorney Sellinger credited special agents of the U.S. Postal Inspection Service, Bellmawr office and Philadelphia Division Office, under the direction of Damon E. Wood, Inspector in Charge, Philadelphia Division; U.S. Postal Inspection Service, Washington, D.C. Division Office, under the direction of Peter R. Rendina, Washington Division Inspector in Charge; the Department of Homeland Security, Homeland Security Investigations, Cherry Hill Office and Newark Division Office, under the direction of Special Agent in Charge Jason J. Molina; Homeland Security Investigations Philadelphia Division Office, under the Direction of Acting Special Agent in Charge William S. Walker; Homeland Security Investigations Maryland Division Office, under the direction of James R. Mancuso, Special Agent in Charge, Baltimore; Homeland Security Investigations Rhode Island Office, under the direction of Matthew Millhollin, Special Agent in Charge, Boston Division Office; and the U.S. Department of State’s Diplomatic Security Service (DSS), under the direction of R. Mike Escott, Resident Agent in Charge, Philadelphia Resident Office, with the investigation leading to today’s guilty plea.
Two other conspirators have previously pleaded guilty and are awaiting sentencing before Judge Hillman. Charges against nine other defendants remain pending before the District Court.
The government is represented by Assistant U.S. Attorney Patrick C. Askin of the U.S. Attorney’s Office Criminal Division in Camden.
The charges and allegations contained in the pending complaints and indictments against the nine conspirators are merely accusations, and the defendants in those cases are presumed innocent unless and until proven guilty.
Passenger sentenced for groping nurse during flightRead the Press Release
ATLANTA - Scott Russell Granden has been sentenced to federal prison for groping and inappropriately touching a female passenger seated next to him on a flight to Atlanta.
“Passengers have the right to fly in peace and to expect that their personal dignity will be respected,” said U.S. Attorney Kurt R. Erskine. “When this defendant started groping and sexually harassing the female passenger in the next seat, he humiliated and degraded her. We will not tolerate this type of behavior on an airplane, and this sentence shows the consequences for such abusive sexual conduct.”
“Reports of sexual assaults on aircraft are increasing and we want the public to know that these assaults are federal crimes with severe consequences”, said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will continue to work with our partners to investigate and prosecute these crimes to keep the skies safe for everyone.”
“The Atlanta Police Department takes the safety of aircraft passengers, seriously,” said Atlanta Police Chief Rodney Bryant. “We continuously work closely with our local and federal law enforcement partners to ensure that airport customers and airline passengers feel safe when traveling to and from our great city.”
According to U.S. Attorney Erskine, the charges and other information presented in court: On March 25, 2021, Granden boarded a flight traveling from St. Louis, Missouri, to Atlanta. He sat in a middle seat beside the victim, R.A.K, an emergency room nurse. R.A.K. was exhausted from a hectic day and, shortly after takeoff, tried to rest. She awoke to discover that Granden’s hand was on her thigh. She removed his hand and went back to sleep. But she woke up moments later because Granden had again placed his hand on her thigh, moved his hand towards her groin area, and, at one point, tried to kiss her. R.A.K. warned Granden to stop touching her. But he slapped R.A.K. on the buttocks when she stood up to let him pass her to go to the restroom.
A flight attendant responded to R.A.K.’s complaint about these incidents and moved Granden to a different seat. The airline company notified the Atlanta Police Department (APD) about the assault and arrested Granden when the plane arrived in Atlanta. APD officers obtained statements from R.A.K. and another passenger on the flight. Granden called the officers a series of racist and homophobic slurs during this time.
Scott Russell Granden, 36, of St. Louis, Missouri, has been sentenced to one year and nine months in prison to be followed by one year of supervised release. He must also register as a sex offender. Granden was convicted of the offense of abusive sexual contact aboard an aircraft on September 24, 2021, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Atlanta Police Department.
Assistant U.S Attorney Paul R. Jones prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Owner of Trucking Business Sentenced to 18 Months’ Imprisonment for Covid-Relief Fraud SchemeRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Keith McConnell, age 43, of Carlisle, Pennsylvania, was sentenced yesterday to 18 months’ imprisonment by United States District Court Judge Christopher C. Conner for perpetrating a wire fraud and money laundering scheme which sought $467,200 in COVID-19 relief funds guaranteed by the U.S. Small Business Administration through the Paycheck Protection Program (PPP).
The PPP was designed to help small businesses facing financial difficulties during the COVID-19 pandemic. Funded by the March 27, 2020 Coronavirus Aid, Relief and Economic Security (CARES) Act, PPP funds were offered in forgivable loans to small businesses for employee job retention and certain other expenses. PPP loan amounts were determined by the number of employees and average monthly payroll costs.
According to United States Attorney John C. Gurganus, McConnell submitted fraudulent PPP loan applications and forged documents on behalf of his Carlisle-area trucking company, KB Transportation LLC. In both 2019 and 2020, KB Transportation LLC was not in business, had no employees, and had no payroll expenses. On June 5, 2020, however, McConnell falsely certified that KB Transportation LLC employed twenty-six employees and had monthly payroll expenses totaling $124,800. As a result of the fraud, McConnell received $312,000 in PPP loan proceeds. Within weeks, McConnell spent the PPP funds on unauthorized expenditures including the purchase of a residential property, two personal vehicles, cash withdrawals, and stock market investments. On January 20, 2021, McConnell used KB Transportation LLC to apply for a second PPP loan in the amount of $155,200, and again submitted false and fraudulent loan applications and documents. The second PPP loan was never disbursed.
In addition to the 18-month prison sentence, the Court ordered Keith McConnell to serve three years of supervised release following incarceration, and to pay $312,200 in restitution for disbursement to the victims of his crimes. To date, McConnell has paid back $237,515.50 in restitution.
The case was investigated by the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant U.S. Attorney Samuel S. Dalke prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Orlando Registered Sex Offender Guilty of Attempting to Produce Child PornographyRead the Press Release
Miami, Florida – Joseph Furey Lusk, 47, of Orlando, pleaded guilty before U.S. District Court Judge Aileen M. Cannon in Ft. Pierce, Florida to attempted production of child pornography and committing an offense involving a minor while required to register as a sex offender. As the result of a previous 2018 Florida state conviction for traveling to meet a minor, Lusk is required to register as a sex offender.
According to court records, in August of 2021, less than one month after his release from state custody, Lusk reached out on social media to someone he believed to be a 15-year-old girl. Over the course of several weeks, Lusk engaged in sexually explicit chats with the girl, in which he encouraged her to send him nude images and videos of herself and friends engaged in sexual activity. Lusk also shared several photographs of his erect penis on social media.
U.S. District Court Judge Aileen M. Cannon will sentence Lusk on June 13, at 10:00 a.m., in Fort Pierce. Lusk faces between 20 years and life in federal prison.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
HSI Fort Pierce investigated the case, with assistance from Martin County Sheriff’s Office. Assistant U.S. Attorney Stacey Bergstrom is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14036.
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Omaha Man Sentenced to 135 Months for Sex Trafficking of a MinorRead the Press Release
United States Attorney Jan Sharp announced that Lance Harper, 31, of Omaha, Nebraska, was sentenced today in federal court in Omaha for sex trafficking of a minor. United States District Judge Brian C. Buescher sentenced Harper to 135 months’ imprisonment. There is no parole in the federal prison system. After his release from prison, Harper will serve 5 years of supervised release and will be required to register as a sex offender.
Federal agents began investigating in September 2020, after two Omaha foster children went missing from their foster home. The investigation showed that Harper transported one of the minors to Norfolk, Nebraska, where the minor engaged in sex with an adult male for money and Harper received some of the money from the sex sale.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations, the Omaha Police Department, and the Nebraska Attorney General’s Office.
Ohio man sentenced for selling methamphetamineRead the Press Release
WHEELING, WEST VIRGINIA – Myron Henderson, of Euclid, Ohio, was sentenced today to 110 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Henderson, also known as “Charlie,” age 41, pleaded guilty in November 2021 to one count of “Distribution of Methamphetamine within 1000 feet of a Protected Location.” Henderson admitted to selling methamphetamine near North Park Apartments in June 2019 in Ohio County.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The Belmont County Sheriff’s Office and the St. Clairsville Police Department assisted.
U.S. District Judge John Preston Bailey presided.
Ohio County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Travis E. Vossen, of Wheeling, West Virginia, was sentenced today to 97 months of incarceration for a drug charge, United States Attorney William Ihlenfeld announced.
Vossen, 32, pleaded guilty in September 2021 to one count of “Distribution of Fentanyl within 1,000 feet of a Protected Location.” Vossen admitted to selling fentanyl near Ritchie Elementary School in Ohio County in May 2021.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
North Charleston Man Who Fled from Police Sentenced to Thirteen Years in Federal Prison for Drug and Gun OffensesRead the Press Release
Charleston, South Carolina --- Alouis Levorge Taylor, 37, of North Charleston, was sentenced to thirteen years in federal prison after pleading guilty to being a felon in possession of a firearm and to possessing cocaine and marijuana with intent to distribute.
Evidence presented to the court showed that on March 1, 2018, officers with the Charleston Police Department were on patrol in the Bridgeview apartment complex and approached a parked car running without lights. Taylor was sitting alone in the car, and officers could smell marijuana and see a bag of white powder in plain view. Instead of stepping out as requested, Taylor reversed and almost struck an officer with his driver-side door. He then attempted to drive away, plowing into a parked car, and driving erratically through the parking lot before fleeing on foot. Officers discovered Taylor’s abandoned vehicle nearby with a broken axel. There was a bag of cocaine in the cupholder and a loaded gun hidden behind a panel near the door. Officers also found five pounds of marijuana abandoned nearby and discovered that Taylor’s vehicle had been modified to install a secret compartment in the passenger seat.
Taylor, who was already on federal supervision for a previous offense involving guns and drugs, was arrested soon thereafter. He was charged federally and pled guilty on November 19, 2021. Taylor has a long criminal history, which includes multiple prior convictions for gun and drug offenses and for assaulting police.
United States District Judge Richard M. Gergel sentenced Taylor to 156 months in federal prison, to be followed by a six-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Drug Enforcement Agency and the Charleston Police Department.
This case was prosecuted as part of the joint federal, state, and local 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. Assistant United States Attorneys Chris Schoen and Whit Sowards prosecuted the case.
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New York City Man Sentenced to Nearly Six Years in Federal Prison for Failing to Register as A Convicted Child Sex OffenderRead the Press Release
Jacksonville, Florida – United States District Judge Timothy J. Corrigan has sentenced Samuel Maldonado (48, New York City) to 5 years and 10 months in federal prison for failing to register as a convicted sex offender after absconding from parole in New York and moving to Jacksonville. Maldonado was also ordered to serve a 10-year term of supervised release. Maldonado has been in custody since his arrest on December 15, 2016, in New York City. He had pleaded guilty on February 24, 2022.
According to court documents and information provided in open court, in 2009, Maldonado was convicted in New York of sexual misconduct with a 16-year-old child. In 2011, Maldonado was convicted in New York of first-degree sexual abuse of a 14-year-old child. After being released from prison in New York in 2014, Maldonado was placed on parole. At that time, he was advised of his ongoing duty to register as a sex offender and signed documentation acknowledging that he understood his obligation to do so, including if he relocated to another state.
On March 4, 2016, authorities in New York issued a warrant for Maldonado's arrest for violating his parole by failing to check in with his parole officer. In January 2016, Maldonado had absconded from supervision, left New York, and moved to Jacksonville. After establishing residence in Florida, he knowingly failed to register as a sex offender as required by both federal and Florida law.
On August 8, 2016, Maldonado was arrested in Jacksonville on a warrant based on his New York parole violation and was extradited back to New York. On December 15, 2016, Maldonado was arrested by the U.S. Marshals Service in New York City on a warrant issued by a Florida state court. During an interview, Maldonado admitted that he had several criminal convictions, including his two prior child sexual offense convictions. He also acknowledged that he did not inform his parole officer that he was moving to Florida, and further that he did not register as a sex offender in the state of Florida.
On April 5, 2018, Maldonado was convicted in Florida state court of the lewd or lascivious molestation of a minor child based on conduct that had occurred in July and August 2016 in Jacksonville.
This case was investigated by the U.S. Marshals Service in New York City and Jacksonville, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
The Sex Offender Registration and Notification Act (SORNA) is part of the Adam Walsh Child Protection and Safety Act of 2006. The Adam Walsh Act also provides for the use of federal law enforcement resources, including the United States Marshals Service, to assist state and local authorities in investigating, locating, apprehending, and prosecuting non-compliant sex offenders who fail to register as required by SORNA.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Naturopathic Doctor Pleads Guilty to Fake COVID-19 Immunization and Vaccination Card SchemeRead the Press Release
A California-licensed naturopathic doctor pleaded guilty today in the Northern District of California for scheming to sell homeoprophylaxis immunization pellets and for falsifying COVID-19 vaccination cards by making it appear that customers had received the U.S. Food and Drug Administration (FDA)-authorized Moderna vaccine.
“This doctor violated the public’s trust and reliance on health care professionals – during a time when integrity was needed most,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Instead of providing sage information and guidance, Mazi profited from peddling unapproved remedies, stirring up false fears, and generating fake proof of vaccinations. The Department of Justice and its law enforcement partners are committed to protecting the American people during this national emergency, including protecting trust in the medical developments allowing us to emerge from the pandemic.”
According to court documents, in April 2021, the Department of Health and Human Services Office of Inspector General (HHS-OIG) received a complaint from a member of the public that Juli A. Mazi, 41, of Napa, was offering homeoprophylaxis immunization pellets which she claimed would provide lifelong protection from COVID-19. Mazi also provided fake CDC COVID-19 vaccination record cards with instructions on how to complete the cards to make them falsely appear to be records of the FDA-authorized Moderna vaccine. The investigation revealed that Mazi provided fake CDC COVID-19 vaccination cards for more than 200 individuals.
According to court documents, Mazi also offered homeoprophylaxis immunization pellets in place of childhood vaccinations required for attendance at school. Mazi provided her patients with deceptive “immunization” cards which she knew would be submitted to schools, and which fraudulently indicated that authorized vaccines had been administered. The investigation revealed that Mazi provided these fake immunization cards to more than 100 individuals.
“Juli Mazi has admitted that she engaged in a scheme to sell fake health care records to her customers,” said U.S. Attorney Stephanie Hinds for the Northern District of California. “Mazi made profits by selling false immunization cards she knew would be used to mislead schools into believing students had been immunized from childhood illnesses as required by law. Mazi also sold fake COVID-19 Vaccination Record Cards suggesting she administered the Moderna vaccine to her customers when, in fact, she had not. Mazi’s fake health care records scheme endangered the health and well-being of students and the general public at a time when confidence in our public health system is of critical importance.”
“During a time when the public has been heavily reliant on our medical professionals for advice and guidance, Mazi has brazenly violated the trust of the public by instilling fear and spreading misinformation surrounding COVID-19 immunizations and treatments,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “There is no place for fraudulent activity, and the FBI will continue to investigate and pursue those who abuse their positions of authority to try and profit in this criminal manner.”
“By falsifying vaccine cards, providers not only undermine important measures to address the ongoing public health emergency; they can also endanger the health of their patients and the public,” said Special Agent in Charge Steven Ryan of HHS-OIG. “HHS-OIG is proud to work with our law enforcement partners to ensure that all health care providers who misuse their medical professional status for financial gain are held accountable.”
Mazi pleaded guilty to one count of wire fraud and one count of making false statements related to health care matters. She is scheduled to be sentenced on July 29. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
HHS-OIG’s San Francisco Regional Office and the FBI’s San Francisco Field Office are investigating the case.
Trial Attorney Sridhar Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Assistant U.S. Attorney Katherine Lloyd-Lovett for the Northern District of California are prosecuting the case.
The case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Naturopathic Doctor Pleads Guilty to Fake COVID-19 Immunization and Vaccination Card SchemeRead the Press Release
SAN FRANCISCO – A California-licensed naturopathic doctor pleaded guilty today for scheming to sell homeoprophylaxis immunization pellets and for falsifying COVID-19 vaccination cards by making it appear that customers had received the U.S. Food and Drug Administration (FDA)-authorized Moderna vaccine. The Hon. Charles R. Breyer, U.S. District Judge accepted the plea.
“Juli Mazi has admitted that she engaged in a scheme to sell fake health care records to her customers,” said U.S. Attorney Stephanie M. Hinds. “Mazi made profits by selling false immunization cards she knew would be used to mislead schools into believing students had been immunized from childhood illnesses as required by law. Mazi also sold fake COVID-19 Vaccination Record Cards suggesting she administered the Moderna vaccine to her customers when, in fact, she had not. Mazi’s fake health care records scheme endangered the health and well-being of students and the general public at a time when confidence in our public health system is of critical importance.”
“This doctor violated the public’s trust and reliance on health care professionals – during a time when integrity was needed most,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Instead of providing sage information and guidance, Mazi profited from peddling unapproved remedies, stirring up false fears, and generating fake proof of vaccinations. The Department of Justice and its law enforcement partners are committed to protecting the American people during this national emergency, including protecting trust in the medical developments allowing us to emerge from the pandemic.”
According to court documents, in April 2021, the Department of Health and Human Services Office of Inspector General (HHS-OIG) received a complaint from a member of the public that Juli A. Mazi, 41, of Napa, was offering homeoprophylaxis immunization pellets which she claimed would provide lifelong protection from COVID-19. Mazi also provided fake CDC COVID-19 vaccination record cards with instructions on how to complete the cards to make them falsely appear to be records of the FDA-authorized Moderna vaccine. The investigation revealed that Mazi provided fake CDC COVID-19 vaccination cards for more than 200 individuals.
According to court documents, Mazi also offered homeoprophylaxis immunization pellets in place of childhood vaccinations required for attendance at school. Mazi provided her patients with deceptive “immunization” cards which she knew would be submitted to schools, and which fraudulently indicated that authorized vaccines had been administered. The investigation revealed that Mazi provided these fake immunization cards to more than 100 individuals.
“During a time when the public has been heavily reliant on our medical professionals for advice and guidance, Mazi has brazenly violated the trust of the public by instilling fear and spreading misinformation surrounding COVID-19 immunizations and treatments,” said FBI Assistant Director Luis Quesada of the Criminal Investigative Division. “There is no place for fraudulent activity, and the FBI will continue to investigate and pursue those who abuse their positions of authority to try and profit in this criminal manner.”
“By falsifying vaccine cards, providers not only undermine important measures to address the ongoing public health emergency; they can also endanger the health of their patients and the public,” said Special Agent in Charge Steven Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our law enforcement partners to ensure that all health care providers who misuse their medical professional status for financial gain are held accountable.”
“The FDA plays a critical role in protecting public health during the COVID-19 pandemic and continues to take swift action on fraudulent COVID-19 products, such as this unauthorized and unproven purported ‘immunization’,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We will continue to pursue, investigate and bring to justice those whose actions jeopardize the public health.”
“The defendant spread inaccurate medical information about COVID-19 for personal gain, clearly taking advantage of a situation that had made our community vulnerable,” said Acting Special Agent in Charge Tim Stone. “As the government worked to provide accurate and relevant information during the pandemic, Mazi took advantage of the situation and chose to line her own pockets with profits from fraudulent vaccine documents and medicine, abusing the trust placed in her as a medical professional. The FBI will not tolerate such an abuse of trust,” he said.
On February 2, 2022, the Office of the United States Attorney filed an information charging Mazi with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of making false statements related to health care matters, in violation of 18 U.S.C. § 1035. Pursuant to today’s plea agreement, Mazi pleaded guilty to both counts.
Judge Breyer scheduled Mazi’s sentencing for July 29, 2022. Mazi faces a maximum statutory prison sentence of 20 years for the wire fraud charge and 5 years for the false statements charge. In addition, each charge carries a maximum $250,000 fine and 3 years of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
HHS-OIG’s San Francisco Regional Office and the FBI’s San Francisco Field Office are investigating the case.
Assistant U.S. Attorney Katherine Lloyd-Lovett of the U.S. Attorney’s Office for the Northern District of California and Trial Attorney Sridhar Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force are prosecuting the case.
The case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who collectively have billed the Medicare program for more than $19 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at https://www.justice.gov/criminal-fraud/health-care-fraud-unit.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Nashua Man Pleads Guilty to Possession of Child Sexual Abuse MaterialRead the Press Release
CONCORD - Michael Dukette, 31, of Nashua, pleaded guilty on Tuesday in federal court to possession of child sexual abuse material, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in June of 2018 an individual reported potential child exploitation images to the Hudson Police Department. The individual had lent an iPhone to another person and after it was returned, the woman found an email containing four videos that showed Dukette masturbating while standing over a sleeping child. Dukette subsequently admitted to police during voluntary interviews that he made and kept the videos. Further investigation revealed the child in the videos was five years old at the time the videos were made.
Dukette currently is scheduled to be sentenced on August 23, 2022.
“Protecting children from exploitation is an important priority of the law enforcement community in New Hampshire,” said U.S. Attorney Farley. “Thanks to the hard work of our law enforcement partners, this individual is being held accountable for his disturbing and illegal conduct. We will continue to work closely with our law enforcement partners to identify and prosecute those who commit crimes related to sexual abuse material.”
“Cases like this emphasize how critical the community is in our investigations. Without the assistance of the citizen who brought this material to police attention, the evidence of this exploitation may have gone unnoticed and unreported,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office.
This matter was investigated by Homeland Security Investigations, the Hudson Police Department and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney Anna Dronzek.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Mount Pleasant Man Sentenced to 10 years for Possession of Child PornographyRead the Press Release
CHARLESTON, SOUTH CAROLINA — Chad Horst Kramolowski, 35, of Mount Pleasant, was sentenced to 10 years in federal prison for possession of child pornography.
Evidence presented to the Court showed that on May 16, 2018, the South Carolina Attorney General’s Office Internet Crimes Against Children (ICAC) section received a CyberTipline Report from Facebook, Inc., who discovered evidence of alleged criminal activity on their servers. The CyberTipline Report showed that a Facebook user received an image of a minor appearing in a state of sexually explicit nudity. ICAC officers tracked the Facebook user’s IP address to Kramolowski’s residence in Mount Pleasant. On March 6, 2019, the Charleston County Sheriff’s Office executed a search warrant at Kramolowski’s residence and found at least 20 images of child pornography, including images of prepubescent minors, on one of Kramolowski’s cell phones. The investigation also revealed that Kramolowski was previously convicted in federal court for possession of child pornography and was sentenced in 2008 to 30 months in federal prison.
United States District Judge Richard M. Gergel sentenced Kramolowski to 120 months in federal prison, to be followed by a lifetime term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Federal Bureau of Investigation (FBI) and Charleston County Sheriff’s Office. Assistant United States Attorney Dean H. Secor prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the U.S. Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
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Medical Doctor to Pay $40,800 to Resolve Civil Liability for Alleged Violations of the False Claims ActRead the Press Release
HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Ahmed Khan has agreed to pay the United States $40,800 to resolve civil liability for alleged violations of the False Claims Act.
According to United States Attorney, John C. Gurganus, between 2019 and 2020, Dr. Khan accepted consultation fees for ordering Durable Medical Equipment (DME) and topical pain creams for patients with whom he did not have an established provider-patient relationship. He authorized orders for pre-selected products without any physical examination of the patients. In many instances, Dr. Khan had no interaction at all with the patients, and in some instances, he had only a brief phone call. Dr. Khan approved and signed orders for medically unnecessary DME (such as knee braces) and topical pain creams, in exchange for a small fee per patient from a third-party marketing company. As the prescribing physician, Dr. Khan played a key role in a larger telemedicine scheme that resulted in Medicare paying hundreds of thousands of dollars to DME companies and pharmacies for unnecessary products.
This Settlement Agreement is neither an admission of liability by Dr. Khan, nor is it a concession by the United States that its claims are not well founded.
The investigation was handled by Assistant United States Attorney, Tamara Haken, and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.
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Maryland Man Sentenced to 39 Years in Prison for Series of Sexual Attacks Targeting MenRead the Press Release
WASHINGTON – Bryant Webster, 38, of Suitland, Maryland, was sentenced today to 39 years in prison for a series of home invasions carried out over a 50-day period in 2016 in which he sexually assaulted three men, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Webster pleaded guilty in July 2019, in the Superior Court of the District of Columbia, to two counts of first-degree sexual abuse while armed and one count of second-degree sexual abuse. The plea, which was contingent upon the Court’s approval, called for a sentence of 32 to 39 years. The Honorable Ronna L. Beck accepted the plea and the Honorable Marisa Demeo sentenced Webster accordingly. Webster is required to register as a sex offender for life.
According to the government’s evidence, the attacks took place from mid-August to October 2016. In the first assault, Webster entered a residence in a Capitol Hill neighborhood and photographed himself sexually abusing a man who was unconscious. Less than two weeks later, at about 6 a.m. on Aug. 28, 2016, Webster entered an apartment in the same neighborhood without permission. The victim was awakened to find Webster, a stranger, standing in the doorway of his bedroom, dressed all in black, holding a handgun with a red laser sight. He bound the victim’s hands and feet with duct tape, gaged him by putting a T-shirt in his mouth, and raped him repeatedly while threatening to kill him.
The third attack also took place in the Capitol Hill neighborhood, at about 12:30 a.m. on Oct. 1, 2016. Webster crept into a home. He was again armed with a handgun with a laser sight and also had a backpack filled with knives, gloves, screwdrivers, duct tape, a hammer, binoculars, and condoms. He similarly used duct tape to bind the victim, gagged him with a T-shirt, and raped him. The victim managed to alert a roommate who entered the home during the rape, a struggle ensued, and the victim called 911. Police arrested Webster at the scene. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case at the U.S. Attorney’s Office, including Suzanne Curt and Elizabeth Danello, Deputy Chiefs of the Appellate Division; Assistant U.S. Attorney Luke Jones; former Assistant U.S. Attorney Jessica Brooks; Victim/Witness Advocate Lezlie Richardson; Supervisory Paralegal Specialist Michelle Wicker, and former Paralegal Specialist Donhue Troy Griffith.
Finally, they commended the work of Assistant U.S. Attorney Kenechukwu Okocha, who investigated and prosecuted the case.
Man Sentenced to Nine Years in Federal Prison for Illegally Possessing Loaded Gun on Chicago StreetRead the Press Release
CHICAGO — A man has been sentenced to nine years in federal prison for illegally possessing a loaded handgun on a Chicago street.
CIPRIANO RIVERA illegally possessed the gun on Sept. 28, 2019, near an alley in Chicago’s West Town neighborhood. Rivera was driving his sport-utility vehicle when he fired several shots at an individual who was walking through the alley. Neither the individual nor anyone else was wounded. While speeding away from the area, Rivera tossed the gun out of the car window. Chicago Police officers a short time later pulled over the SUV and arrested Rivera. Bystanders near the scene of the shooting found the gun and alerted police.
Rivera, 36, of Villa Park, Ill., pleaded guilty last year to a federal charge of illegal possession of a firearm. Rivera had previously been convicted of multiple felony firearm offenses in state court and was prohibited by federal law from possessing the gun.
U.S. District Judge Ronald A. Guzman imposed the prison sentence Tuesday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives; and David Brown, Superintendent of the Chicago Police Department.
“Defendant fired his gun to kill the man walking in the alley,” Assistant U.S. Attorney Jason Yonan argued in the government’s sentencing memorandum. “These actions were egregious and placed numerous members of the public at grave risk, including the person defendant shot at and the people living nearby.”
Holding illegal firearm possessors accountable through federal prosecution is a centerpiece of Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategy. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the PSN program to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Sentenced to 20 Years in Prison for Attempting to Provide Material Support to ISISRead the Press Release
A California man was sentenced today to 20 years in prison for attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham, aka ISIS.
Bernard Raymond Augustine, 25, of Keyes, was convicted by a federal jury after a one-week trial in August 2021.
According to court documents and evidence presented at trial, in February 2016, Augustine traveled from San Francisco to Northern Africa with the goal of joining ISIS. After arriving in Tunisia, Augustine was detained by local authorities before he could make it to ISIS-controlled territory across the border in Libya. He was returned to the United States in 2018 and prosecuted in the Eastern District of New York.
In the months leading up to his travel, Augustine watched ISIS propaganda, including videos glorifying ISIS’s violence, such as “The Flames of War.” He conducted internet searches for, among other things, “how to safely join ISIS,” and reviewed websites related to ISIS recruitment practices, including one titled, “How does a Westerner join ISIS? Is there a recruitment or application process?” Augustine also posted numerous statements in support of ISIS and violent extremism, such as “the Islamic State is the true Islam,” “Muslims who leave the west . . . answer the call for the struggle, and march until they are victorious or martyred are the true believers,” and the ISIS caliphate “can’t be established and maintained except through the blood of the mujahideen who practice the true belief.”
The defendant represented himself at trial and testified that he maintained his interest in supporting ISIS. Augustine testified that ISIS videos of members executing Syrian captives and beheadings were “good” and “really cool.” He admitted that one way he intended to provide material support to ISIS was to participate in ISIS propaganda videos by providing the necessary English-language voice over. When asked to confirm his testimony that he “would do it all again and would go back today,” Augustine responded, “No, tomorrow, when they let me off.”
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, U.S. Attorney Breon Peace for the Eastern District of New York, Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office and Commissioner Keechant L. Sewell of the New York City Police Department made the announcement.
The FBI investigated the case.
Assistant U.S. Attorneys Craig R. Heeren, Josh Hafetz and Jonathan E. Algor for the Eastern District of New York prosecuted the case, with valuable assistance provided by Trial Attorney Justin Sher of the National Security Division’s Counterterrorism Section.
Man Pleads Guilty to Federal Firearm and Drug Trafficking Charges Stemming from His Participation in New Orleans Hotel ShootoutRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on April 5, 2022, CLARENCE SANTIAGO, age 22 from New Orleans, pled guilty to various firearm and drug charges stemming from his participation in a December 28, 2020, shootout at the Jung Hotel on Canal Street.
Earlier this year, a federal grand jury handed down two related indictments charging a total of seven individuals with various violations of the Federal Gun Control Act and Federal Controlled Substances Acts for participating in this shootout. Today, SANTIAGO pled guilty to Counts 1, 2, 3, and 4 of the indictment, charging him with participating in a conspiracy to possess firearms in furtherance of a drug trafficking crime (Count 1) pursuant to Title 18, United States Code, Section 924(o); using, carrying and discharging a firearm during and in relation to a drug trafficking crime (Count 2) pursuant to Title 18, United States Code, Section 942(c); conspiracy to possess with the intent to distribute marijuana (Count 3) pursuant to Title 21, United States Code, Section 841(b)(1)(D); and, illegally maintaining a drug involved premises (Count 4) pursuant to Title 21, United States Code, Section 856.
SANTIAGO will be sentenced on July 12, 2022. Based on his guilty plea, he faces the following sentences:
For Count 1, he faces a maximum sentence of up to 20 years in prison, not more than 3 years of supervised release, and not more than a $250,000.00 fine;
For Count 2, he will face a mandatory minimum of 10 years up to a maximum of life imprisonment, not more than 5 years of supervised release, and a fine of not more than $250,000.00. Any prison sentence imposed in connection with this count must be served consecutively to any other prison sentence imposed in connection with this case;
For Count 3, he will face up to a maximum of 5 years in prison, not less than two years of supervised release, and not more than a $250,000.00 fine; and
For Count 4, he will face a sentence of not more than 20 years in prison, up to three years of supervised released, a fine of not more than $500,000.00.
SANTIAGO must pay a $100 mandatory special assessment fee for each count of conviction.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant United States Attorneys Maurice Landrieu and Elizabeth Privitera are in charge of the prosecution.
Lexington Woman Gets 10 Years in Federal Prison on Gun ChargeRead the Press Release
Columbia, South Carolina – Angela Marie Gantt, age 37, of Lexington, was sentenced to ten years in federal prison after pleading guilty to being a felon in possession of a firearm and ammunition. Senior United States District Judge Terry L. Wooten of Columbia imposed the sentence. After her release from prison, Gantt will remain under court-ordered supervision for an additional 3 years. There is no parole in the federal system.
Evidence presented in court established that on June 29, 2020, an officer with the South Congaree Police Department responded to an accident in South Congaree where it was reported that a driver, later identified as Gantt, had struck a tree on private property and was attempting to leave the scene. The officer made contact with Gantt and learned she was driving under suspension. A K-9 Officer responded to the scene, and the K-9 alerted to the presence of illegal narcotics in the car. A search of the car recovered approximately 118 grams of methamphetamine and a Smith & Wesson 9mm pistol.
Federal law prohibits Gantt from possessing firearms and ammunition based upon multiple prior state convictions. Gantt’s prior state record includes possession of methamphetamine in 2006, manufacturing methamphetamine in 2007, possession of methamphetamine in 2010, conspiracy to manufacture methamphetamine in 2012, and possession of methamphetamine in 2014 and 2015.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Lexington County Sheriff’s Department, South Congaree Police Department, and Pine Ridge Police Department. It was prosecuted as part of the joint federal, state, and local 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. Special Assistant United States Attorney Casey Rankin Smith of the 11th Judicial Circuit Solicitor’s Office prosecuted the case.
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Leader of New Bedford Drug Trafficking Organization Sentenced to More Than Seven Years in PrisonRead the Press Release
BOSTON – The leader of a drug trafficking organization that sold hundreds of grams of deadly fentanyl onto the streets of New Bedford and surrounding communities was sentenced today in federal court in Boston.
Hilario Yogey Mota-Bernabel, 31, was sentenced by U.S. District Court Judge William G. Young to 90 months in prison and four years of supervised release. In May 2021, Hilario Mota-Bernabel pleaded guilty to one count of conspiracy to distribute and possess with the intent to distribute fentanyl and six counts of possession with intent to distribute and distribution of 40 grams or more of fentanyl.
In January 2018, agents began an investigation into co-defendant Steven Marshall, a large-scale fentanyl dealer on Cape Cod. On March 1, 2018, police followed Marshall as he conducted a suspected drug transaction in New Bedford. As Marshall drove back toward Cape Cod, he was stopped by investigators and found in possession of approximately 125 grams of fentanyl that Hilario Mota-Bernabel had distributed to him.
Four controlled purchases were made of approximately 100 grams of fentanyl each, from Hilario Mota-Bernabel in March and April 2018. For one of the controlled purchases, Hilario Mota-Bernabel’s brother and co-defendant, Miki Michael Mota-Bernabel, served as the courier, delivering over 100 grams of fentanyl to an undercover agent. Hilario Mota-Bernabel personally delivered the fentanyl on another occasion.
The Mota-Bernabels were arrested in May 2018. A search of their residence and stash house resulted in the seizure of over 200 grams of fentanyl and various drug distribution paraphernalia as well as approximately $12,395 in drug proceeds. In total, Hilario Mota-Bernabel is responsible for possessing and/or distributing over 750 grams of fentanyl and deploying at least two runners to conduct his drug trafficking business.
In September 2020, Miki Mota-Bernabel was sentenced to 30 months in prison and four years of supervised release after pleading guilty. Marshall was arrested in June 2018 and has since pleaded guilty. He is scheduled to be sentenced on May 5, 2022.
United States Attorney Rachael S. Rollins; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Matthew Sonnabend made the announcement. Assistant U.S. Attorney Lauren A. Graber of Rollins’ Narcotics and Money Laundering Unit prosecuted the case.
Lawrence Ray Convicted of Racketeering, Violent Assault, Extortion, Sex Trafficking, Forced Labor, Tax Evasion, and Money LaunderingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today the conviction in federal court of LAWRENCE RAY, a/k/a “Lawrence Grecco,” for racketeering conspiracy, a violent crime in aid of racketeering, extortion, sex trafficking, forced labor, tax evasion, and money laundering offenses. After less than a day of deliberations, the unanimous jury convicted RAY of every count presented to the jury after a four-week trial before U.S. District Judge Lewis J. Liman.
U.S. Attorney Damian Williams said: “Twelve years ago, Larry Ray moved into his daughter’s dorm room at Sarah Lawrence College. And when he got there, he met a group of friends who had their whole lives ahead of them. For the next decade, he used violence, threats, and psychological abuse to try to control and destroy their lives. He exploited them. He terrorized them. He tortured them. Let me be very clear. Larry Ray is a predator. An evil man who did evil things. Today’s verdict finally brings him to justice. This verdict would not have been possible without the victims who testified in court. We are in awe of their bravery in the face of incredible trauma. I also want to thank the career prosecutors in my Office, the Southern District of New York, and our law enforcement partners, who stood with those victims and worked tirelessly to ensure that justice was done.”
According to the Indictment and the evidence at trial:
From in or about 2010 through the present, LAWRENCE RAY, a/k/a “Lawrence Grecco,” the defendant, subjected a group of college students and other victims to sexual and psychological manipulation and physical abuse. RAY’s tactics included sleep deprivation, psychological and sexual humiliation, verbal abuse, threats of physical violence, physical violence, threats of criminal legal action, alienating the victims from their families, and exploiting the victims’ mental health vulnerabilities.
Through this manipulation and abuse, RAY extracted false confessions from the victims to causing purported damages to RAY and his family and associates, and then extorted payment for those purported damages through several means. The victims made payments to RAY by draining their parents’ savings, opening credit lines, soliciting contributions from acquaintances, selling real estate ownership, and at RAY’s direction, performing unpaid labor for RAY and earning money through prostitution.
Through fear, violence, and coercion, RAY forced one female victim to engage in commercial sex acts to pay damages to RAY that she did not actually owe. Beginning when she was just a college student, RAY sexually groomed this victim, and collected sexually explicit photographs and other personal information which he then used to coerce her into continued commercial sex acts. RAY also used physical violence. On one occasion, RAY tied his victim to a chair, placed a plastic bag over her head, and nearly suffocated her. RAY collected millions of dollars in forced prostitution proceeds from this victim.
In addition, RAY forced multiple victims to perform unpaid labor on a family member’s property in North Carolina. Through a course of psychological and physical abuse, RAY forced these victims to do extensive physical labor, sometimes in the middle of the night, for no pay.
Associates of RAY helped RAY collect and transfer the criminal proceeds, which RAY shared with at least two associates. RAY then laundered his criminal proceeds through an internet domain business and evaded paying taxes on his proceeds.
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RAY, 62, of Piscataway, New Jersey, was returned to the custody of the U.S. Marshals following the return of the verdict. RAY was convicted of the following crimes: racketeering conspiracy, which carries a maximum of life in prison; conspiracy to commit extortion, which carries a maximum sentence of 20 years in prison; extortion, which carries a maximum sentence of 20 years in prison; sex trafficking, which carries a maximum sentence of life in prison, and a mandatory minimum sentence of 15 years in prison; obtaining forced labor, which carries a maximum sentence of 20 years in prison; forced labor trafficking, which carries a maximum sentence of 20 years in prison; conspiracy to obtain forced labor, which carries a maximum sentence of 20 years in prison; violating the Travel Act, which carries a maximum sentence of five years in prison; four counts of tax evasion, each of which carries a maximum of 5 years in prison, and money laundering, which carries a maximum sentence of 20 years in prison.
The statutory maximum and mandatory penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Williams praised the outstanding investigative work of the Federal Bureau of Investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Danielle Sassoon, Mollie Bracewell, and Lindsey Keenan are in charge of the prosecution.
Lawrence Man Sentenced for Role in Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Lawrence man was sentenced today in federal court in Boston on conspiracy and distribution charges involving large quantities of fentanyl.
Ysrael Nunez, 39, was sentenced by U.S. District Court Judge Leo T. Sorokin to 30 months in prison and three years of supervised release. On Jan. 13, 2022, Nunez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute 400 grams or more of fentanyl; one count of distribution and possession with intent to distribute fentanyl; and one count of distribution of and possession with intent to distribute 400 grams or more of fentanyl and aiding and abetting.
In October 2018, agents began investigating a drug trafficking organization (DTO) that distributed fentanyl in the Lawrence area. Between October 2018 and July 2019, a cooperating witness made controlled purchases of fentanyl from the DTO and on July 24, 2019, Nunez sold the cooperating witness approximately 23 grams of fentanyl. During that meeting, they discussed the DTO supplying the cooperating witness with a kilogram of fentanyl. The following day, the cooperating witness made arrangements with Nunez to purchase a kilogram of fentanyl which was delivered by Nunez’s co-conspirator to the cooperating witness and an undercover agent.
United States Attorney Rachael S. Rollins and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division, made the announcement. Assistant U.S. Attorney Alathea Porter of Rollins’ Narcotics & Money Laundering Unit prosecuted the case.
Justice Department Continues Efforts to Stop Fraudulent Tax PreparersRead the Press Release
The Department of Justice urges taxpayers to choose their return preparers wisely as the April 18th federal tax filing deadline approaches. Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams. Unscrupulous preparers who include errors or false information on a tax return could leave a taxpayer open to liability for unpaid taxes, penalties and interest.
“Taxpayers are responsible for what is on their return, even when it is prepared by someone else,” said Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “If your preparer asks you to sign a blank return, will not let you review your return before filing it, or is depositing your refund in a way that is not clear to you, consult the IRS’s website to make sure you are not exposing yourself to trouble.”
“Tax preparers contemplating filing false returns for their clients should know that our criminal prosecutors are prepared for the filing season too,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. “As the division’s work this past year reflects, we have the expertise and resources to identify and hold preparers fully accountable for their criminal conduct.”
Over the last year, the Tax Division has worked with U.S. Attorneys’ Offices around the country to bring civil and criminal actions against dishonest tax preparers, seeking civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds, and criminal penalties. The department’s message has been clear: those who prepare fraudulent returns will face serious and lasting consequences.
Examples of civil injunctions obtained by the Tax Division over the last year include:
- On Feb. 15, 2022, a federal district court in the Northern District of Illinois permanently barred Melissa Gasca individually and doing business as Su Familia Income Tax, as well as FinancialPlus Services Inc., from preparing returns for others and from owning or operating a tax return preparation business in the future. The court also ordered defendants to disgorge approximately $30,000.
- On Oct. 5, 2021, a federal district court in the Western District of Michigan, permanently barred Stanley Meyer (dba I-Tax Services) and Rosa Linda Meyer (dba Su Casa Income Tax Service), husband and wife, from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future.
- On May 13, 2021, a federal district court in the Northern District of Mississippi permanently barred Kathy Moton and K & M Tax Essentials LLC from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future. The court order also required defendants to send notice of the injunction to each person for whom they prepared federal tax returns, other tax forms or claims for refund after Jan. 1, 2018, and to publicize the injunction for one year on all social media that defendants earlier used to advertise their services.
The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year, the division has brought these cases to court, including:
- On Feb. 3, 2022, a federal court in the Southern District of Florida permanently barred Wendell Devallon, Berald Dominique and their business, Tax Time Group Inc., from preparing federal income tax returns in the future. The court also ordered defendants to disgorge $353,000 to the United States. The disgorgement amount was based on defendants’ misconduct before the government sued as well as their violations of a preliminary injunction entered in January 2021 while the suit was ongoing.
- On Nov. 10, 2021, a federal court in the Southern District of Texas required Levett Camarena to disgorge $40,000 earned in violation of the October 2017 order that permanently barred her from preparing returns for others, advising in the preparation of those returns and representing customers before the IRS.
- On Sept. 29, 2021, a federal court in the Southern District of Florida required Milagros Espinal to pay $400,000 as a contempt sanction for violating the court’s February 2011 order that permanently barred Espinal from acting as a return preparer. In ordering the sanctions, the court found that Espinal continued to prepare returns despite being barred from doing so and, furthermore, that the returns she prepared contained fraudulent claims. The sanctions were calculated to compensate the U.S. Treasury for the harm Espinal caused, to strip Espinal of ill-gotten fees obtained in violation of the court’s earlier ban, and to reimburse the costs the United States incurred to investigate and prosecute her contempt.
Criminal convictions against fraudulent preparers obtained by the Tax Division over the last year include:
- On March 22, 2022, Fred Pickett Jr., of Belle Glade, Florida, was sentenced to 97 months in prison after being convicted at trial of 22 counts of preparing false tax returns for his clients. According to evidence presented at trial, Pickett prepared tax returns for some of his clients claiming they owned fictitious businesses that lost tens of thousands of dollars each year. Pickett included these nonexistent companies, as well as other false deductions and tax credits, on his clients’ returns to generate refunds they were not entitled to receive. Pickett had already been permanently barred in October 2017 from further work as a tax return preparer.
- On Feb. 8, 2022, Adrienne Williams, of Rocky Mount, North Carolina, was sentenced to 50 months in prison for conspiring to defraud the United States. According to court documents and statements made in court, between 2009 and 2017, Williams and at least two employees at Ultimate Tax Service, a tax return preparation service she owned and operated, prepared false tax returns for clients. The returns claimed fraudulent refunds by including, among other falsities, bogus federal income tax withholdings. In all, Williams and her co-conspirators sought to defraud the IRS of more than $3.5 million.
- On May 7, 2021, Karen Marie Jones, of Durham, North Carolina, was sentenced to 22 months in prison for conspiring to defraud the United States. According to court documents and statements made in court, from 2012 through 2017, Jones and two other return preparers who worked at the tax return preparation business she owned conspired to prepare false returns for clients. The returns fraudulently lowered the clients’ tax liabilities or inflated their refunds by claiming false education credits or dependents or by manipulating the clients’ income to qualify for larger earned income tax credits. Under the scheme, some clients were charged up to $3,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the tax loss is approximately $1.2 million.
The Tax Division reminds taxpayers that the IRS has information and tips on its site, see here and here, for choosing a tax preparer, has launched a free directory of credentialed federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a checklist of things to remember when filing income tax returns for tax year 2021.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $73,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free. The IRS has tips on how seniors and individuals with low to moderate income can get other help or guidance on tax return preparation, too.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department Announces Court-Authorized Disruption of Botnet Controlled by the Russian Federation’s Main Intelligence Directorate (GRU)Read the Press Release
Operation Copied and Removed Malware Known as “Cyclops Blink” from the Botnet’s Command-And-Control Devices, Disrupting the GRU’s Control Over Thousands of Infected Devices Worldwide. Victims Must Take Additional Steps to Remediate the Vulnerability and Prevent Malicious Actors From Further Exploiting Unpatched Devices.
The Justice Department today announced a court-authorized operation, conducted in March 2022, to disrupt a two-tiered global botnet of thousands of infected network hardware devices under the control of a threat actor known to security researchers as Sandworm, which the U.S. government has previously attributed to the Main Intelligence Directorate of the General Staff of the Armed Forces of the Russian Federation (the GRU). The operation copied and removed malware from vulnerable internet-connected firewall devices that Sandworm used for command and control (C2) of the underlying botnet. Although the operation did not involve access to the Sandworm malware on the thousands of underlying victim devices worldwide, referred to as “bots,” the disabling of the C2 mechanism severed those bots from the Sandworm C2 devices’ control.
“This court-authorized removal of malware deployed by the Russian GRU demonstrates the department’s commitment to disrupt nation-state hacking using all of the legal tools at our disposal,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “By working closely with WatchGuard and other government agencies in this country and the United Kingdom to analyze the malware and to develop detection and remediation tools, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. The department remains committed to confronting and disrupting nation-state hacking, in whatever form it takes.”
“Through close collaboration with WatchGuard and our law enforcement partners, we identified, disrupted and exposed yet another example of the Russian GRU’s hacking of innocent victims in the United States and around the world,” said U.S. Attorney Cindy K. Chung for the Western District of Pennsylvania. “Such activities are not only criminal but also threaten the national security of the United States and its allies. My office remains committed to working with our partners in the National Security Division, the FBI, foreign law enforcement agencies and the private sector to defend and maintain our nation’s cybersecurity.”
“This operation is an example of the FBI’s commitment to combatting cyber threats through our unique authorities, capabilities, and coordination with our partners,” said Assistant Director Bryan Vorndran of the FBI’s Cyber Division. “As the lead domestic law enforcement and intelligence agency, we will continue pursuing cyber actors that threaten the national security and public safety of the American people, our private sector partners and our international partners.”
“The FBI prides itself on working closely with our law enforcement and private sector partners to expose criminals who hide behind their computer and launch attacks that threaten Americans’ safety, security and confidence in our digitally connected world,” said Special Agent in Charge Mike Nordwall of the FBI’s Pittsburgh Field Office. “The FBI has an unwavering commitment to combat and disrupt Russia’s efforts to gain a foothold inside U.S. and allied networks.”
On Feb. 23, the United Kingdom’s National Cyber Security Centre, the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency, the FBI and the National Security Agency released an advisory identifying the Cyclops Blink malware, which targets network devices manufactured by WatchGuard Technologies Inc. (WatchGuard) and ASUSTek Computer Inc. (ASUS). These network devices are often located on the perimeter of a victim’s computer network, thereby providing Sandworm with the potential ability to conduct malicious activities against all computers within those networks. As explained in the advisory, the malware appeared to have emerged as early as June 2019, and was the apparent successor to another Sandworm botnet called VPNFilter, which the Department of Justice disrupted through a court-authorized operation in 2018.
The same day as the advisory, WatchGuard released detection and remediation tools for users of WatchGuard devices. The advisory and WatchGuard’s guidance both recommended that device owners deploy WatchGuard’s tools to remove any malware infection and patch their devices to the latest versions of available firmware. Later, ASUS released its own guidance to help compromised ASUS device owners mitigate the threat posed by Cyclops Blink malware. The public and private sector efforts were effective, resulting in the successful remediation of thousands of compromised devices. However, by mid-March, a majority of the originally compromised devices remained infected.
Following the initial court authorization on March 18, the department’s operation was successful in copying and removing the malware from all remaining identified C2 devices. It also closed the external management ports that Sandworm was using to access those C2 devices, as recommended in WatchGuard’s remediation guidance (a non-persistent change that the owner of an affected device can reverse through a device restart). These steps had the immediate effect of preventing Sandworm from accessing these C2 devices, thereby disrupting Sandworm’s control of the infected bot devices controlled by the remediated C2 devices. However, WatchGuard and ASUS devices that acted as bots may remain vulnerable to Sandworm if device owners do not take the WatchGuard and ASUS recommended detection and remediation steps. The department strongly encourages network defenders and device owners to review the Feb. 23 advisory and WatchGuard and ASUS releases.
The operation announced today leveraged direct communications with the Sandworm malware on the identified C2 devices and, other than collecting the underlying C2 devices’ serial numbers through an automated script and copying the C2 malware, it did not search for or collect other information from the relevant victim networks. Further, the operation did not involve any FBI communications with bot devices.
Since prior to the Feb. 23 advisory, the FBI has been attempting to provide notice to owners of infected WatchGuard devices in the United States and, through foreign law enforcement partners, abroad. For those domestic victims whose contact information was not publicly available, the FBI has contacted providers (such as a victim’s internet service provider) and has asked those providers to provide notice to the victims. As required by the terms of the court authorization, the FBI has provided notice to the owners of the domestic C2 devices from which the FBI copied and removed the Cyclops Blink malware.
The efforts to disrupt the Cyclops Blink botnet were led by the FBI’s Pittsburgh, Atlanta and Oklahoma City Field Offices, the FBI Cyber Division, the National Security Division’s Counterintelligence and Export Control Section, and the U.S. Attorney’s Office for the Western District of Pennsylvania. Assistance was also provided by the Criminal Division’s Computer Crime and Intellectual Property Section and Office of International Affairs, as well as the U.S. Attorney’s Office for the Eastern District of California.
If you believe you have a compromised device, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.
Jury convicts man for crack cocaine conspiracyRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted 26-year-old local man for conspiring to distribute narcotics and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Jennifer B. Lowery.
The jury deliberated for approximately two hours before convicting Jonathan Rodriguez, Corpus Christi, following a three-day trial.
At trial, the jury heard that Rodriguez was a co-conspirator in a multi-person crack cocaine trafficking scheme. From 2016 to 2019, Rodriguez managed a Corpus Christi residence from where drugs were distributed.
In May 2019, law enforcement responded to reports of gunfire between rival drug dealers at the property. A search of the residence revealed various amounts of crack cocaine and meth.
The jury also heard that Rodriguez had maintained a commercial storage unit in Corpus Christi. A search of the unit revealed $1.26 million in U.S. currency, more than 600 grams of cocaine, 52 rifles, shotguns and pistols.
At trial, the defense attempted to convince the jury Rodriguez was merely a narcotics user, not a distributor and the evidence was insufficient. However, they saw video evidence of Rodriguez distributing narcotics within the house and surveillance footage at the commercial storage unit.
The jury did not believe defense claims and found him Rodriguez guilty as charged.
U.S. District Judge Davis S. Morales presided over trial and set sentencing for June 29. At that time, Rodriguez faces up to life in federal prison and a possible $10 million maximum fine.
Rodriguez has been and will remain in custody pending that hearing.
The Drug Enforcement Administration conducted the investigation with the assistance of Corpus Christi Police Department. Assistant U.S. Attorneys John Marck and Dennis E. Robinson prosecuted the case.
Jury Returns Guilty Verdict in Yosemite National Park Sexual AssaultRead the Press Release
FRESNO, Calif. — After a three-day trial, a jury found Charles Porter, 31, a resident of Yosemite National Park and Pomona, guilty today of attempted aggravated sexual abuse, abusive sexual contact, assault with intent to commit aggravated sexual abuse, assault with intent to commit abusive sexual contact, and assault by striking or wounding, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, on April 14, 2020, in Yosemite National Park, Porter, an Aramark employee working and residing in Yosemite Valley, entered the victim’s cabin in employee housing at night while the victim was asleep and began to sexually assault the victim. The victim fought back, and during the struggle, Porter attempted to penetrate the victim. The victim was able to reach the door of his one-room cabin to call for help. Nearby neighbors heard his call for help, and they responded and physically removed Porter.
This case is the product of an investigation by National Park Service Special Agents and Law Enforcement Rangers. Assistant U.S. Attorneys Katherine E. Schuh and Laura Jean Berger are prosecuting the case.
Porter is scheduled to be sentenced by U.S. District Judge Jennifer L. Thurston on July 8, 2022. Porter faces a maximum statutory penalty of life 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.
Jefferson County Man Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for a firearms violation in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Luis Roberto Alonzo, 24, pleaded guilty on Oct. 27, 2021, to being a felon in possession of a firearm and was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield.
According to information presented in court, on April 26, 2021, law enforcement responded to a motel in Groves where it was reported Alonzo refused to leave the property. After making contact with Alonzo, it was determined that Alonzo had an outstanding warrant. Officers also discovered a shotgun in the backseat of the vehicle he was seen exiting. Alonzo is a previously convicted felon and prohibited by federal law from owning or possessing firearms or ammunition. Alonzo was indicted by a federal grand jury on August 4, 2021.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Groves Police Department and the Port Neches Police Department and prosecuted by Assistant U.S. Attorney Russell James.
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Inscription House Man Sentenced to 13 Years for Sexual Abuse of a MinorRead the Press Release
PHOENIX, Ariz. – Oliver Lee Hurley, 48, of Inscription House, AZ, was sentenced yesterday by U.S. District Judge Dominic W. Lanza to 156 months in prison. Hurley previously pleaded guilty to Sexual Abuse of a Minor.
In 2018, Hurley sexually abused the minor victim while she visited his residence on the Navajo Nation. Hurley is an enrolled member of the Navajo Nation. After Hurley finishes serving his term in federal prison, he will be placed on supervised release for the rest of his life.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Jason Crowley and Sharon Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-08085-PHX-DWL
RELEASE NUMBER: 2022-036_Hurley# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Honduran Smuggler Sentenced to 30 Months in Federal PrisonRead the Press Release
Gulfport, Miss. – A Honduran national was sentenced to 30 months in federal prison for the federal crime of transporting an illegal alien within the United States, announced U.S. Attorney Darren J. LaMarca, Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector, and Special Agent in Charge David L. Denton of Homeland Security Investigations in New Orleans.
According to court documents, Jose Andres Acensio-Lopez, 28, was sentenced by U.S. District Judge Taylor McNeel in Gulfport. He also may face Department of Homeland Security removal proceedings. If removed from the U.S. following his prison sentence, Acensio-Lopez could face additional penalties if he were to unlawfully return to the U.S., and further prosecution. Acensio-Lopez was convicted after pleading guilty on December 14, 2021, before Judge McNeel.
On September 12, 2021, following a U.S. Border Patrol investigation, a Border Patrol Agent conducted a vehicle stop and identified the driver as Jose Andres Acensio-Lopez. Acensio-Lopez did not have a driver’s license and was found, along with his ten passengers, to be illegally present in the United States. The vehicle was overloaded by three persons over its design, with seat belts for only eight persons. All vehicle occupants were transported to the Gulfport Border Patrol Station for processing.
The case was investigated by the U.S. Border Patrol and Homeland Security Investigations.
Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Honduran Man Sentenced for Fraud Involving a Permanent Resident Alien CardRead the Press Release
Gulfport, Miss. - A Honduran national was sentenced to 11 months in federal prison for fraud involving a visa, permit or other document, announced U.S. Attorney Darren J. LaMarca and Chief Patrol Agent Jason E. Schneider of the U.S. Border Patrol’s New Orleans Sector.
According to court documents, Angel Orlando Vasquez-Flores, 34, was sentenced by U.S. District Judge Taylor McNeel in Gulfport. Vasquez-Flores may also face Department of Homeland Security removal proceedings. If removed from the U.S. following his prison sentence, Vasquez-Flores could face additional penalties if he were to unlawfully return to the U.S., and further prosecution. Vasquez-Flores was convicted after pleading guilty on December 16, 2021, before Judge McNeel.
On September 6, 2021, Vasquez-Flores fled from Jackson County Sheriff’s Deputies and dropped his wallet together with what appeared to be a U.S. Legal Permanent Resident Identification Card. While the card initially appeared legitimate, and bore the defendant’s photo and name, it was found to have been fraudulently produced and to bear a stolen Alien Identification Number which belonged to a different person living in the U.S. who was contacted by the U.S. Border Patrol. The wallet also contained a card which appeared to be a Social Security Card, bearing the Vasquez-Flores’ name and a number that was determined to not belong to him. Both a Legal Permanent Resident Card and a Social Security Card are documents authorized by federal statute to show that a person may lawfully stay and be employed in the U.S.
The case was investigated by the U.S. Border Patrol and the Jackson County Sheriff’s Department.
Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Grand Island Woman Sentenced for Distribution of MethamphetamineRead the Press Release
United States Attorney Jan Sharp announced that Erika Vargas, 39, of Grand Island, Nebraska, was sentenced today by United States District Judge John M. Gerrard to 10 years in federal prison for distribution of methamphetamine. There is no parole in the federal system. Following her prison term, Vargas will serve eight years on supervised release.
In May of 2019, an informant working with law enforcement contacted Vargas to purchase methamphetamine. Vargas then facilitated the purchase of methamphetamine from her supplier.
In September of 2019, the informant contacted Vargas again to purchase methamphetamine. Vargas agreed to sell the informant half an ounce of methamphetamine. On the way to their meeting location, Vargas contacted the informant and stated that she had already sold the half ounce of methamphetamine but had more coming. Once the informant arrived at the agreed location, Vargas introduced the informant to another supplier who then provided the informant with half an ounce of methamphetamine.
Vargas had previously been convicted of Conspiracy to Distribute Methamphetamine in 2004, which increased her penalties for this case.
This case was investigated by the Central Nebraska Drug and Safe Streets Task Force, which is made up of officers from the Grand Island Police Department, Hall County Sheriff, Hastings Police Department, Adams County Sheriff, Kearney Police Department, Buffalo County Sheriff, Nebraska State Patrol, Homeland Security Investigations, and the Federal Bureau of Investigation.
Gettysburg Man Serving Life Sentence for Murdering A Witness Denied Compassionate ReleaseRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Willie Tyler, age 70, formerly of Gettysburg, Pennsylvania, was denied compassionate release today by U.S. District Court Judge Christopher C. Conner. Tyler is currently serving a life sentence for witness tampering by murder.
According to United States Attorney John C. Gurganus, Tyler participated in the brutal murder of a law enforcement confidential informant from the Carlisle area in 1992. The victim was scheduled to testify in Cumberland County Court against David Tyler, the brother of the defendant, on the day of her murder. Willie Tyler planned to murder the victim, along with four other individuals, who were convicted for their role in the murder in previous federal and state court proceedings.
Tyler was first tried in state court in 1994, and acquitted of the murder. The case was then adopted for federal prosecution, and Tyler was convicted by a federal jury trial in 1996. The U.S. Court of Appeals for the Third Circuit overturned Tyler’s conviction, and he was convicted again following a re-trial in 2000. In 2013, the Third Circuit overturned the 2000 conviction in light of a change in the law and remanded the case to the district court for a new trial. Tyler was then tried and convicted for the third time in July 2017. The jury returned its verdict after only two hours of deliberation following a four-day trial.
In February 2018, the trial judge vacated the jury’s verdict, concluding that there was insufficient evidence to support the convictions. The government appealed, and in April 2020, the Third Circuit reversed the trial judge’s decision and remanded with instructions to reinstate the jury’s verdict and proceed to sentencing. Tyler then petitioned the United States Supreme Court to review the Third Circuit’s decision, but the Court denied his petition in May 2021. Tyler was sentenced to life in prison in June 2021.
Federal law permits federal prisoners to seek a sentence reduction and immediate release—commonly called compassionate release—if they can establish extraordinary and compelling reasons. In today’s ruling, Judge Conner found that Tyler failed to make that showing. Judge Conner also concluded that other factors did not support Tyler’s release, explaining that “Tyler is serving a congressionally mandated life sentence for his role in the brutal murder” of a witness.
The case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Pennsylvania Attorney General’s Office, and the Pennsylvania State Police with cooperation from the Carlisle Police Department. The case was previously prosecuted by former Assistant United States Attorneys Gordon A. Zubrod and Chelsea Schinnour and Assistant United States Attorney Joseph J. Terz. Assistant United States Attorney Carlo D. Marchioli handled the most recent litigation.
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Gallup man pleads guilty to abusive sexual contact with a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Armando Segovia, 32, of Gallup, New Mexico, pleaded guilty today in federal court to abusive sexual contact with a child in Indian Country. Segovia must surrender to the U.S. Marshals by noon, April 13. He will be held in detention pending final sentencing, which has not been scheduled.
A federal grand jury indicted Segovia on April 14, 2021. According to the plea agreement and other court records, between July 1, 2016, and Nov. 1, 2016, Segovia, who is non-Indian, allegedly engaged in sexual contact with the victim, identified in court records as Jane Doe. The victim, an enrolled member of the Zuni Pueblo, was less than 12 years old at the time of the abuse. Segovia committed the abuse in McKinley County, New Mexico, on the Zuni Pueblo.
Segovia faces up to life in prison and will be required to register as a sex offender.
The Gallup Resident Agency of the FBI Albuquerque Field Office and the Gallup Police Department investigated this case. Special Assistant U.S. Attorney Chelsea Van Deventer is prosecuting the case.
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Four Florida Men and One Texas Man Convicted for Conspiracy and Interstate Transportation of over $2 Million of Stolen PerfumeRead the Press Release
NEWARK, N.J. – Five men were convicted today for their roles in a conspiracy to transport over $2 million worth of stolen perfume products out of New Jersey to Florida, U.S. Attorney Philip R. Sellinger announced.
Carlos Duvergel, 57, of Texas, and Juan Crespo, 45, Felix Castillo, 49, Asnay Fernandez, 31, and Ismael Manzano-Suarez, 24, all of Hialeah, Florida, were charged by superseding indictment with conspiring to transport stolen property in interstate commerce and transportations of stolen property in interstate commerce. They were convicted following an eight-day trial before U.S. District Judge Peter G. Sheridan in Trenton federal court.
According to documents filed in this case and statements made in court:
In November 2017, the defendants broke into a warehouse storing perfume products in Edison, New Jersey, and drove away with two tractor trailers filled with stolen perfume products. The value of the stolen perfume products is estimated to be over $2 million. The defendants were arrested in May 2018 attempting to break into another perfume warehouse in East Brunswick, New Jersey.
The count of conspiring to transport stolen property in interstate commerce carries a maximum penalty five years in prison; the count of transportations of stolen property in interstate commerce carries a maximum penalty of 10 years in prison. Both charges also carry a $250,000 fine, or twice the gross gain or loss from the offenses, whichever is greatest. Sentencing for all five defendants is scheduled for Sept. 27, 2022.
U.S. Attorney Sellinger credited special agents and officers with the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; officers of the Edison Police Department, under the direction of Chief Tom Bryan; officers of the East Brunswick Police Department, under the direction of Chief Frank LoSacco; and the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to today’s convictions.
The government is represented by Assistant U.S. Attorney Christopher D. Amore of the National Security Unit and Special Assistant U.S. Attorney Timothy P. Shaughnessy of the Organized Crime and Gangs Unit in Newark.
Former St. Tammany Parish Sheriff Jack Strain Sentenced to 120 Months Imprisonment After Previously Pleading Guilty to Soliciting and Receiving Bribes Involving Contract for Privatization of Work Release Program in St. Tammany ParishRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that former long-time St. Tammany Parish Sheriff RODNEY J. STRAIN (a/k/a Jack Strain), age 56, from Abita Springs, Louisiana, was sentenced today to 120 months imprisonment by United States District Judge Jane Triche Milazzo after previously pleading guilty to Count 15 of the indictment returned in August 2019, charging him with soliciting and receiving bribes, in violation of Title 18, United States Code, Section 666(a)(1)(B) for his role in the privatization and operation of a work release program that operated in Slidell, Louisiana between 2013 and 2016. As part of the sentence, Judge Milazzo ordered a $10,000 fine, 3 years of supervised release, and a $100 special assessment fee. A forfeiture hearing is scheduled for July 13, 2022. Judge Milazzo also ordered STRAIN to serve his federal sentence concurrently with the sentence he is currently serving based on his conviction in the 22nd Judicial District.
According to court documents, STRAIN, who was the Sheriff of St. Tammany Parish from about 1996 to 2016, had the authority both to decide unilaterally the Parish-run work release programs (i.e., halfway houses) that would be by the Sheriff’s Office or private entities and to decide the private entities to which he would grant the right to operate such privately-run halfway houses. In about early 2013, STRAIN decided to privatize a work release program in Slidell, Louisiana. He discussed with his two close associates and Captains with the St. Tammany Parish Sheriff’s Office, David Hanson and Clifford “Skip” Keen, the plan to have Hanson and Keen become joint owners of the Slidell work release program. Individuals then employed with the St. Tammany Parish Sheriff’s Office, advised STRAIN that state law prohibited Hanson and Keen from owning and operating the Slidell work release program while remaining employed at STPSO. Additionally, because law prohibited employees from “participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity,” Hanson and Keen would have had to resign from STPSO if they wanted to assume ownership and control of the Slidell work release program. Resignation meant they would have lost their salaries and pension increases from continued employment.
STRAIN, Hanson, and Keen discussed ways to allow Hanson and Keen to maintain their employment and still profit from the Slidell work release program. To conceal their scheme, STRAIN, Hanson, and Keen agreed to make Keen’s adult son (J.K.) and Hanson’s adult daughter (B.H.) owners of the Slidell work release program, with the understanding that J.K. and B.H. would funnel much of the profits to Hanson and Keen. Hanson and Keen agreed to give regular payoffs to STRAIN and his selected family members from the funds they received. This understanding was partly based on STRAIN having previously required Keen to kickback to STRAIN half of the money Keen earned from an earlier place of employment.
STRAIN, Hanson, and Keen agreed that they needed to find another individual to actually operate the Slidell work release program because J.K. and B.H. lacked the education, training, experience, and funding to do so. They decided on Person 2, to whom Hanson presented a series of non-negotiable pre-conditions, including the following: J.K. and B.H. would each own forty-five (45) percent of the Slidell work release program and would each receive forty-five (45) percent of the profits, while Person 2 would only own ten (10) percent, receive ten (10) percent of the profits, and receive a salary. Person 2 would be responsible operating the Slidell work release program and for providing the capital necessary to initiate the program. On or about May 1, 2013, J.K., B.H., and Person 2 entered into an operating agreement that created St. Tammany Workforce Solutions, LLC, in which J.K. and B.H. each had a forty-five percent ownership interest and Person 2 had only a ten percent ownership interest.
On June 4, 2013, STRAIN entered into a cooperative endeavor agreement (“privatization agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC, a corporation designed to operate the Slidell work release program. Thereafter, Person 2 was directed to make additional unnecessary financial expenditures. For example, although J.K. and B.H. were merely straw owners who neither operated, oversaw, or administered the Slidell work release program, Person 2 was required to pay J.K. and B.H. salaries in addition to their ownership disbursements. Person 2 was also directed to pay Person 3, who was an employee at STPSO and STRAIN’S relative, approximately $30,000 per year for a no-show job at the Slidell work release program.
During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release program, from July 1, 2013, through July 1, 2016, J.K. and B.H. received not less than $1,384,000 from St. Tammany Workforce Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump sum miscellaneous payments. J.K. received at least 148 payments totaling at over $676,000, while B.H. received at least 133 payments totaling over $708,000. J.K. and B.H. converted the majority of the money they received from St. Tammany Workforce Solutions, LLC to cash, much of which they transferred to their fathers, Keen and Hanson.
Additionally, STRAIN, Hanson, and Keen understood that STRAIN and his family members would receive payoffs from Hanson and Keen in exchange for STRAIN’s conferring the right to operate the Slidell work release program on St. Tammany Workforce Solutions, LLC. The bribes took multiple forms. The ways Hanson and Keen funneled bribe money to STRAIN included giving STRAIN regular cash payments in amounts greater than $1,000 from the money they received from St. Tammany Workforce Solutions LLC, through B.H. and J.K. Second, as part of the scheme, Hanson arranged for STRAIN’s relative, Person 1, to receive a check in the amount of $4,000. Third, STRAIN received campaign money from Hanson and Keen with money from St. Tammany Workforce Solutions, LLC, including a $2,500 payment in November 2015. Further, STRAIN’s relative received a no-show job from the Slidell work release program that effectively doubled his annual salary.
STRAIN, Hanson, Keen, and others attempted to conceal the scheme by, among other things, (a) hiding Hanson’s and Keen’s involvement in and benefit from the Slidell work release program, (b) excluding from the cooperative endeavor agreement the fact that STRAIN would receive cash bribes and other financial compensation in exchange for signing the cooperative endeavor agreement, and (c) providing most of the money to STRAIN in the form of cash.
“Mr. Strain broke the law and must now face the consequences for his actions, “stated U.S. Attorney Duane A. Evans. “His crime was a breach of the public trust owed to the citizens of St. Tammany Parish. Similarly, because the trust between our law enforcement agencies and the citizens they protect is precious, it is imperative that collectively, we assure the public of our unwavering commitment to identify and prosecute anyone who engages in public corruption.”
“The FBI is committed to aggressively pursuing those who violate the trust placed in them by the public and holding them accountable for their actions, even if they come from within the ranks of law enforcement. Today's sentencing sends a clear message that individuals like Jack Strain will be held responsible and no one is above the law," said Douglas A. Williams, Jr. Special Agent in Charge FBI New Orleans "We thank our partners at the U.S. Attorney’s Office Eastern District of Louisiana, Internal Revenue Service – Criminal Investigation Division, and the Metropolitan Crime Commission, for their collaborative efforts in holding our public servants accountable.”
“The sentence handed down today highlights the seriousness of former sheriff Jack Strain’s conduct,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “IRS-CI will remain vigilant in identifying and investigating public officials who seek to defraud the American taxpayers by failing to faithfully discharge the duties of their offices.”
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, Elizabeth Privitera, Chief of the Violent Crime Unit, J. Ryan McLaren, and Alexandra Giavotella, Asset Forfeiture Coordinator, were in charge of the prosecution.
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