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Monday 14 February 2022
Gulfport Man Pleads Guilty to Firearms ConspiracyRead the Press Release
Gulfport, Miss. – A Gulfport man pleaded guilty today to conspiring to possess a firearm in furtherance of a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Raheem Olajuwon Lane, 28, pled guilty in U.S. District Court in Gulfport.
According to court documents and information presented to the Court, in 2020, the DEA and Gulfport Police Department began investigating a local drug trafficking organization involved in the distribution of oxycodone, marijuana, alprazolam (“Xanax”), methamphetamine, and pressed fentanyl pills. During the investigation, law enforcement learned that various members of the organization, like many drug traffickers, possessed firearms to protect themselves, their drugs, and the proceeds from their drug sales. Through their investigation, officers determined that Raheem Olajuwon Lane was a member of the drug trafficking organization. Officers determined that he was distributing fentanyl, alprazolam, methamphetamine, oxycodone, and marijuana. He also transferred firearms to and received firearms from other members of the conspiracy.
On May 12, 2021, officers executed a search warrant at Lane’s residence. They discovered hundreds of alprazolam pills, pressed fentanyl pills, suspected methamphetamine, suspected oxycodone, and marijuana. They also recovered three firearms, a Taurus 9mm handgun, a Smith and Wesson handgun, and an Intratec Model AB-10.
Lane is scheduled to be sentenced on May 13, 2022. He faces a maximum sentence of 20 years in prison for the conspiracy charge, and a maximum of life in prison for the possession charge.
The DEA and Gulfport Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gonic Man Pleads Guilty to Bank RobberiesRead the Press Release
CONCORD - Christopher Kelley, 45, of Gonic, pleaded guilty in federal court to three counts of bank robbery and one count of attempted bank robbery, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between September 11, 2020, and October 9, 2020, Kelley committed three bank robberies in Rochester. He attempted to rob another bank in Wolfeboro on October 13, 2020. In each of the incidents, Kelley claimed to have a bomb.
Kelley is scheduled to be sentenced on May 23, 2022.
“Bank robberies are violent crimes that endanger innocent people and cause untold emotional damage to bank employees and bystanders,” said U.S. Attorney Farley. “By robbing multiple banks while claiming to have a bomb, this defendant left behind victims in each location who may be affected by these incidents for years to come. As this case demonstrates, we are working closely with our law enforcement partners to fight back against violent crime and to hold violent criminals accountable for their unlawful and dangerous conduct.”
“Today, Christopher Kelley finally admitted to putting innocent bystanders in fear for their lives when he walked into four different banks in Rochester and Wolfeboro, claiming he had a bomb, and demanding cash from the tellers,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “While no one was physically injured, Mr. Kelley’s actions have had a lasting impact on everyone who was there. That’s why the FBI and our law enforcement partners will do everything possible to seek justice for the victims and protect the public from violent criminals like him.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Rochester Police Department and Wolfeboro Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Krasinski and Aaron Gingrande.
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Gang Member Pleads Guilty in Federal Court After Robbing Eugene Marijuana DispensaryRead the Press Release
PORTLAND, Ore.—A Portland man affiliated with the Hoover Criminal Gang and Unthank Park Hustlers, two allied Portland street gangs, pleaded guilty today after robbing a Eugene marijuana dispensary.
Timothy Christopher Gaines, 30, pleaded guilty to using and carrying a firearm during and in relation to a crime of violence.
According to court documents, on December 20, 2019, Gaines and an accomplice robbed Green Therapy, a marijuana dispensary in Eugene, of several jars of marijuana and $912 in cash. Gaines brandished a firearm during the robbery and pointed it at a store employee cowering on the floor.
On June 25, 2020, Gaines was charged by criminal complaint with Hobbs Act robbery. Later, on July 23, 2020, a federal grand jury in Portland returned an indictment charging Gaines with the same. A superseding indictment returned on October 20, 2020 added a charge of using and carrying a firearm during and in relation to a crime of violence.
Gaines faces a maximum sentence of life in prison with a seven-year mandatory minimum, a $250,000 fine, and a five-year term of supervised release. He will be sentenced on April 26, 2022 before U.S. District Court Judge Michael H. Simon.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Eugene Police Department and Portland Police Bureau. Assistant U.S. Attorney Leah K. Bolstad is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Fort Pierce Man Sentenced to 10 Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
Miami, Florida – A U.S. District Judge in South Florida has sentenced a prior convicted felon from Fort Pierce to 120 months in prison for possessing a firearm last Memorial Day.
On the night of May 31, 2021, 28-year-old Everette Jerome Jackson, Jr. arrived at a Fort Pierce park and exited a vehicle with a .40 caliber Smith & Wesson pistol. The park was filled with people celebrating the holiday. After some fighting and commotion among parkgoers, Jackson brandished the Smith & Wesson and fired at a vehicle 13 times, hitting a bystander -- the owner of the vehicle. After the shooting, Jackson tried to dispose of the firearm by throwing it into the Intracoastal Waterway, but dive-team officers from the St. Lucie County Sheriff’s Office recovered it.
When he possessed the firearm on May 31, 2021, Jackson had a prior felony drug conviction and a prior felony conviction for illegal firearm possession.
Jackson also faces state charges for shooting the victim. The defendant is presumed innocent of the state charges unless and until proven guilty in a court of law.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami, and Ken J. Mascara, Sheriff, Saint Lucie County Sheriff’s Office, announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
FBI Miami and Saint Lucie County Sheriff’s Office investigated the case. Assistant U.S. Attorney Diana M. Acosta prosecuted it.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated 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.
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-14033.
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Former lab director sentenced to prison for falsifying results of steel testing on parts for Navy subsRead the Press Release
Tacoma – The former Director of Metallurgy at Bradken Inc. was sentenced today in U.S. District Court in Tacoma to 30 months in prison, and a $50,000 fine, for falsifying test results that measure the strength and toughness of steel that Bradken sold for installation in U.S. Navy submarines, announced U.S. Attorney Nick Brown. Elaine Thomas, 67, of Auburn, Washington, pleaded guilty November 8, 2021, to major fraud against the United States. At the sentencing hearing U.S. District Judge Benjamin H. Settle said it was, “a crime of pride and ego, that in some way she knew better than those who set the standards.”
“For 32 years, Elaine Thomas betrayed the trust of the United States Navy, knowingly placing its sailors and military operations at risk,” said U.S. Attorney Nick Brown. “She falsely stated that steel Bradken produced met critical specifications– standards developed to keep our military personnel safe– and allowed inferior steel to go to Navy subs in half the orders she reviewed.”
“Our Sailors and Marines depend upon high quality products and services from our contractors to safely and effectively meet the worldwide mission of the Department of the Navy,” said Secretary of the Navy Carlos Del Toro. “This outcome demonstrates that we will continue to insist that our contractors must meet these high standards and that the actions of Elaine Thomas and others like her will not be tolerated. The efforts seen today are the result of the strong cooperation between the Department of the Navy, the Department of Defense, and the Department of Justice to prevent fraud and to ensure that those who do commit fraud against the Government are brought to justice.”
According to records filed in the case, Bradken is the U.S. Navy’s leading supplier of high-yield steel castings for naval submarines. Bradken’s Tacoma foundry produces castings that prime contractors use to fabricate submarine hulls. The Navy requires that the steel meets certain standards for strength and toughness to ensure that it does not fail under certain circumstances, such as a collision. For 30 years, the Tacoma foundry (which was previously known as Atlas, and acquired by Bradken in 2008), produced castings, many of which had failed lab tests and did not meet the Navy’s standards. Elaine Thomas, as Director of Metallurgy, falsified test results to hide the fact that the steel had failed the tests. Thomas falsified results for over 240 productions of steel, which represents about half the castings Bradken produced for the Navy.
Court filings indicate there is no evidence that Bradken’s management was aware of the fraud until May 2017. At that time, a lab employee discovered that test cards had been altered and that other discrepancies existed in Bradken’s records. In April 2020, Bradken entered into a deferred prosecution agreement, accepting responsibility for the offense and agreeing to take remedial measures. Bradken also entered into a civil settlement, paying $10,896,924 to resolve allegations that the foundry produced and sold substandard steel components for installation on U.S. Navy submarines.
The Navy has taken extensive steps to ensure the safe operation of 30 affected submarines. Those measures will result in increased costs and maintenance as some of the substandard parts are monitored. To date, the Navy says it has spent nearly $14 million including 50,000 hours of engineering work to assess the parts and risk to the submarines.
“This sentencing holds Ms. Thomas accountable for her actions, which needlessly jeopardized the safety of countless U.S. Navy personnel and wasted millions of taxpayer dollars,” said the Honorable Sean W. O'Donnell, Acting Inspector General, Department of Defense. “As exemplified in this case, we and our oversight partners will vigorously investigate fraud, especially where substandard materials endanger our military men and women. Protecting the lives of our service members remains a top priority for the Department of Defense Office of Inspector General.”
“The announced sentencing demonstrates Naval Criminal Investigative Service (NCIS) and our law enforcement partners are committed to hold individuals accountable for supplying substandard products that can cause serious harm and negatively impact Department of Navy (DON) readiness and war fighting capabilities. NCIS will continue to work meticulously with our law enforcement partners to safeguard DON major acquisition programs and ensure the safety of our Sailors and Marines,” said Timothy King, Special Agent in Charge, NCIS Northwest Field Office.”
The criminal case against Thomas, deferred prosecution agreement, and civil settlement with Bradken are the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of Washington, the Civil Division’s Commercial Litigation Branch, the Department of Defense Office of Inspector General's Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency.
The criminal prosecution was handled by Assistant United States Attorney Seth Wilkinson.
Former Navajo Nation employee sentenced for federal program fraudRead the Press Release
Relda Martinez, 57, of Prewitt, New Mexico, was sentenced in federal court on Feb. 10 to five years of probation and 50 hours of community service for federal program fraud. Martinez pleaded guilty on July 14, 2021.
A federal grand jury indicted Martinez on Oct. 16, 2020. According to the indictment and other court records, from 2014 through 2016, Martinez was employed as the Community Service Coordinator at the White Horse Lake Chapter House (WHLCH) on the Navajo Nation, which afforded her access to the WHLCH financial accounting system. Martinez used her access to issue numerous checks to other parties ostensibly as payments for legitimate work, but were issued in amounts greater than the actual cost of the work or for work that was not performed. Martinez admitted that the money went to herself, her family members and her friends.
Among the checks issued by Martinez were 12 checks issued to a person identified in court records as “A.K.” Martinez listed the purpose of the checks as for archeological surveys, which are required for any land development on the Navajo Nation. However, Martinez knew that A.K. was not a licensed archeologist and that A.K. did not perform any surveys.
“IRS Criminal Investigation, along with our law enforcement partners, will vigorously pursue individuals who take advantage of their positions and misappropriate government funds for their own financial gain,” said Andy Tsui, Special Agent in Charge IRS Criminal Investigation Denver Field Office. “We remain firm in our commitment to promote honest and ethical financial operations at all levels, and to prosecute those who violate the public’s trust.”
“We hope this prosecution and sentencing will serve as a deterrent to others contemplating stealing federal funds for their own personal gain,” said Jamie DePaepe, Acting Special Agent in Charge, Department of the Interior Office of Inspector General’s Western Region. “We will continue to work with our law enforcement partners to investigate individuals who violate the public’s trust and bring them to justice.”
In addition to her probation and community service, Martinez must pay $26,885.55 in restitution, either in full immediately or in monthly installments of $250.00 or 10 percent of her monthly income, whichever is greater.
The IRS Criminal Investigation Durango Office and the Department of the Interior Office of the Inspector General investigated this case. Assistant United States Attorney Jonathan Gerson prosecuted the case.
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Former Marine Sentenced to 210 Years in Federal Prison for Using Drugs and Force to Sexually Abuse Young Girls in CambodiaRead the Press Release
LOS ANGELES – A retired Marine Corps captain who traveled to Cambodia in 2005 for the purpose of engaging in illicit sexual conduct with minors was sentenced today to 210 years in federal prison.
Michael Joseph Pepe, 68, a former Oxnard resident who has been in federal custody since 2007, was sentenced by United States District Judge Dale S. Fischer, who described Pepe’s actions as “monstrous” and “horrific.”
“What he did to those pre-teen girls…was torture,” Judge Fischer said, noting that there was “no justification for a sentence that would ever allow [Pepe] to be released from prison.”
Judge Fischer has scheduled a restitution hearing in this case for February 28.
During a seven-day trial in August 2021, jurors heard testimony from eight victims who were as young as 9 years old when they were sexually abused. Each of the victims testified that Pepe sexually abused them, and several explained that Pepe drugged, bound, beat and raped them.
Prosecutors also presented evidence corroborating the victims’ testimony, including homemade child pornography.
Pepe initially was arrested in Cambodia 2006. After being brought to the United States and charged in early 2007, he subsequently was tried, convicted and sentenced to prison. The United States Court of Appeals for the Ninth Circuit overturned the conviction in 2018, and prosecutors retried the defendant on new charges.
Homeland Security Investigations and the Cambodian National Police investigated this matter.
First Assistant United States Attorney Stephanie S. Christensen, Assistant United States Attorney Damaris Diaz of the Violent and Organized Crime Section, and Assistant United States Attorney Lynda Lao of the General Crimes Section prosecuted this case.
Former Employee of Mechanical Contractor Admits Inflating Change OrdersRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that WILLIAM SACCO, 49, of Pelham, New Hampshire, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a conspiracy charge stemming from his involvement in a construction project fraud scheme.
According to court documents and statements made in court, Sacco was a project manager for a Massachusetts-based mechanical contractor. From June 2014 to December 2017, Sacco conspired to defraud his employer and the owners of certain projects he managed by inflating change orders on the projects. As part of the conspiracy, a co-conspirator subcontractor made more than $200,000 in payments to Sacco and also for Sacco’s benefit, including payments for Sacco’s children’s college tuition, a graduation party, a Mac laptop, airline tickets, hotels and Sacco’s rent. Sacco and the co-conspirator submitted inflated change orders to Sacco’s employer to offset some of the costs of the payments the co-conspirator made to Sacco.
Sacco pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years. Sacco has agreed to pay restitution in the amount of $41,195.85.
Sacco was arrested on November 22, 2021. He is released on a $50,000 bond pending sentencing, which is scheduled for May 9.
This investigation is being conducted by the Federal Bureau of Investigation and the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney David T. Huang, with assistance from the Department of Justice’s Antitrust Division, New York Office.
Former D.A.R.E. officer pleads guilty to child pornography crimesRead the Press Release
DAYTON, Ohio – A former longtime Beavercreek police officer pleaded guilty in federal court here today to two federal child pornography crimes.
Kevin A. Kovacs, 60, of Fairborn, was arrested in April 2020 and indicted by a federal grand jury in June 2020.
Kovacs pleaded guilty today to transporting and possessing child pornography.
According to the plea document, between April 2015 and July 2017, Kovacs uploaded more than 300 images and 2,200 videos depicting child pornography to his Dropbox account. Videos featured the sexual abuse of children as young as toddler aged. One video depicted a toddler lying on a diaper whose arms and legs were bound by black tape.
Kovacs also used online messenger, social media, cloud storage and email accounts to transport and possess child pornography.
In total, as of December 2019, Kovacs possessed more than 780 images and 5,100 videos of child pornography.
Kovacs’ plea also includes an agreed upon sentencing range of 60 to 240 months in prison. The Court will ultimately determine the sentence at a future hearing.
Kenneth L. Parker, United States Attorney, Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Fairborn Police Chief Terry Bennington and Beavercreek Police Chief Jeff Fiorita announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorneys Dwight K. Keller and DeMarr Moulton are representing the United States in this case.
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Florida’s NCH Healthcare System Agrees to Pay $5.5 Million to Settle Common Law Allegations for Impermissible Medicaid DonationsRead the Press Release
NCH Healthcare System (NCH), which operates two hospitals in Collier County, Florida, has agreed to pay the United States $5.5 million to resolve allegations that it made donations to local units of government to improperly fund the state’s share of Medicaid payments to NCH.
The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.
The United States alleged that, between October 2014 and September 2015, NCH made improper, non-bona fide donations by: (1) providing free nursing and athletic training services to the Collier County School Board; and (2) assuming and paying certain of Collier County’s financial obligations. Both types of donations were designed to increase Medicaid payments received by NCH, without any actual expenditure of state or local funds. In particular, NCH’s donations freed up funds for the county and school board to make payments to the State as the state share of Medicaid payments to NCH. This state share was “matched” by the federal government before being returned to NCH as Medicaid payments. The Medicaid payments NCH received were thus funded by the federal government and NCH’s own donations, in violation of the prohibition on non-bona fide donations.
“States and local units of government must use their own money when seeking federal Medicaid matching funds to help ensure that Medicaid payments are determined by beneficiaries’ medical needs rather than donations by hospitals or other health care providers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “When private parties violate the rules by making improper donations to fund the state share of Medicaid, they endanger the integrity of the Medicaid program.”
“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This settlement underscores our commitment to protecting the integrity of the Medicaid program by ensuring that government funds are legally obtained and used for their intended purposes.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The matter was handled by Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida’s NCH Healthcare System Agrees to Pay $5.5 Million to Settle Common Law Allegations for Impermissible Medicaid DonationsRead the Press Release
WASHINGTON – NCH Healthcare System (NCH), which operates two hospitals in Collier County, Florida, has agreed to pay the United States $5.5 million to resolve allegations that it made donations to local units of government to improperly fund the state’s share of Medicaid payments to NCH.
The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.
The United States alleged that, between October 2014 and September 2015, NCH made improper, non-bona fide donations by: (1) providing free nursing and athletic training services to the Collier County School Board; and (2) assuming and paying certain of Collier County’s financial obligations. Both types of donations were designed to increase Medicaid payments received by NCH, without any actual expenditure of state or local funds. In particular, NCH’s donations freed up funds for the county and school board to make payments to the State as the state share of Medicaid payments to NCH. This state share was “matched” by the federal government before being returned to NCH as Medicaid payments. The Medicaid payments NCH received were thus funded by the federal government and NCH’s own donations, in violation of the prohibition on non-bona fide donations.
“States and local units of government must use their own money when seeking federal Medicaid matching funds to help ensure that Medicaid payments are determined by beneficiaries’ medical needs rather than donations by hospitals or other health care providers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “When private parties violate the rules by making improper donations to fund the state share of Medicaid, they endanger the integrity of the Medicaid program.”
“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This settlement underscores our commitment to protecting the integrity of the Medicaid program by ensuring that government funds are legally obtained and used for their intended purposes.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The matter was handled by Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida-Based Medicare Reimbursement Consultant Resolves Litigation for Allegedly Causing False Diabetic Supply Claims to MedicareRead the Press Release
Medicare reimbursement consultant Ted Albin and his wholly-owned consulting and billing firm Grapevine Billing and Consulting Services Inc. (Grapevine), both based in Stuart, Florida, have agreed to pay $50,000 to resolve allegations that they violated the False Claims Act. This settlement resolves allegations that Albin and Grapevine caused the submission of false claims to Medicare because of kickbacks to Medicare beneficiaries and because patients were ineligible to receive glucometers. This settlement is based on the United States’ analysis of financial disclosures made by Grapevine.
“Consultants must abide by federal requirements when providing Medicare billing advice,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of federal health insurance programs by pursuing individuals or entities responsible for the submission of false or fraudulent claims, including those who cause such claims to be submitted.”
In its complaint, the United States alleged that, from 2008 until 2017, Albin and Grapevine provided consulting services to now-defunct diabetic testing supplier Arriva Medical LLC (Arriva), its parent Alere Inc. (Alere), and starting in January 2018, Abbott Laboratories (Abbott), after Abbott acquired Arriva and Alere in October 2017. From at least 2009 until 2011, Albin, through Grapevine, allegedly served effectively as the Head of Reimbursement at Arriva, overseeing Arriva’s reimbursement department, developing Arriva’s policies for the collection of beneficiary copayment obligations and submitting claims to Medicare on Arriva’s behalf for diabetic testing supplies.
The United States alleged that, as consultants to Arriva, from April 2010 until the end of 2016, Albin and Grapevine knowingly caused the submission of claims to Medicare that were tainted by the payment of kickbacks to Medicare beneficiaries in the form of (i) free or “no cost” glucometers, or (ii) the routine waiver of beneficiary copayment obligations. Additionally, the United States alleged that Albin and Grapevine knowingly caused the submission of claims to Medicare for glucometers on behalf of beneficiaries who were not eligible to seek reimbursement because they had received a meter paid for by Medicare within the previous five years.
The United States produced sworn testimony from Albin in the litigation in which he admitted that, as a reimbursement consultant for Arriva, Albin personally (1) would “write off customer co-payments” because “I could tell someone on my team ‘Yes, write this off,’” (2) engaged in such write-offs “probably every week,” (3) engaged in “mass write-offs of denials by Medicare” for ineligible meters, (4) created Arriva’s “routine policy not to send a bill for customers who owed less than $5,” and (5) “came up with the policy” of “courtesy adjustments” in the form of copayment waivers in response to customer complaints about their Medicare coinsurance obligations.
“The resolution of this matter brings about the conclusion of a lengthy and protracted investigation and litigation in which the United States sought and received substantial penalties and damages as a result of allegations of False Claims Act violations,” said U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. “I commend the legal team and investigators for working diligently to preserve the integrity of our federal healthcare programs.”
“Those who provide advice to health care providers about Medicare billing must do so with integrity,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to investigate those who cause fraudulent claims to be submitted to federal health care programs.”
The litigation resolved by this settlement originally included claims against Arriva and Alere that were brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee in Arriva’s Antioch, Tennessee call center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The act also permits the United States to intervene and take over the litigation of a qui tam action, as the United States did here. In August 2021, Arriva and Alere agreed to pay $160 million to resolve the claims against them. The United States also previously settled for $1 million claims against Arriva’s founders, David Wallace and Timothy Stocksdale, for their alleged part in the scheme. The litigation, which is concluded by the settlement announced today, is currently captioned United States v. Albin, et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Tennessee and HHS-OIG, with the assistance of the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Jake M. Shields of the Civil Division and Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida-Based Consultant Resolves Litigation for Allegedly Causing False Diabetic Supply Claims to MedicareRead the Press Release
NASHVILLE – Medicare reimbursement consultant Ted Albin and his wholly-owned consulting and billing firm Grapevine Billing and Consulting Services Inc. (Grapevine), both based in Stuart, Florida, have agreed to pay $50,000 to resolve allegations that they violated the False Claims Act. This settlement resolves allegations that Albin and Grapevine caused the submission of false claims to Medicare because of kickbacks to Medicare beneficiaries and because patients were ineligible to receive glucometers. This settlement is based on the United States’ analysis of financial disclosures made by Grapevine.
“The resolution of this matter brings about the conclusion of a lengthy and protracted investigation and litigation in which the United States sought and received substantial penalties and damages as a result of allegations of False Claims Act violations,” said U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. “I commend the legal team and investigators for working diligently to preserve the integrity of our federal healthcare programs.”
In its complaint, the United States alleged that, from 2008 until 2017, Albin and Grapevine provided consulting services to now-defunct diabetic testing supplier Arriva Medical LLC (Arriva), its parent Alere Inc. (Alere), and starting in January 2018, Abbott Laboratories (Abbott), after Abbott acquired Arriva and Alere in October 2017. From at least 2009 until 2011, Albin, through Grapevine, allegedly served as the Head of Reimbursement at Arriva, overseeing Arriva’s reimbursement department, developing Arriva’s policies for the collection of beneficiary copayment obligations, and submitting claims to Medicare on Arriva’s behalf for diabetic testing supplies.
The United States alleged that, as consultants to Arriva, from April 2010 until the end of 2016, Albin and Grapevine knowingly caused the submission of claims to Medicare that were tainted by the payment of kickbacks to Medicare beneficiaries in the form of free or “no cost” glucometers, or the routine waiver of beneficiary copayment obligations. Additionally, the United States alleged that Albin and Grapevine knowingly caused the submission of claims to Medicare for glucometers on behalf of beneficiaries who were not eligible to seek reimbursement because they had received a meter paid for by Medicare within the previous five years.
The United States produced sworn testimony from Albin in the litigation in which he admitted that, as a reimbursement consultant for Arriva, Albin personally (1) would “write off customer co-payments” because “I could tell someone on my team ‘Yes, write this off,’” (2) engaged in such write-offs “probably every week,” (3) engaged in “mass write-offs of denials by Medicare” for ineligible meters, (4) created Arriva’s “routine policy not to send a bill for customers who owed less than $5,” and (5) “came up with the policy” of “courtesy adjustments” in the form of copayment waivers in response to customer complaints about their Medicare coinsurance obligations.
“Consultants must abide by federal requirements when providing Medicare billing advice,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of federal health insurance programs by pursuing individuals or entities responsible for the submission of false or fraudulent claims, including those who cause such claims to be submitted.”
“Those who provide advice to health care providers about Medicare billing must do so with integrity,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will continue to investigate those who cause fraudulent claims to be submitted to federal health care programs.”
The litigation resolved by this settlement originally included claims against Arriva and Alere that were brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee in Arriva’s Antioch, Tennessee call center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The act also permits the United States to intervene and take over the litigation of a qui tam action, as the United States did here. In August 2021, Arriva and Alere agreed to pay $160 million to resolve the claims against them. The United States also previously settled for $1 million claims against Arriva’s founders, David Wallace and Timothy Stocksdale, for their alleged part in the scheme. The litigation, which is concluded by the settlement announced today, is currently captioned United States v. Albin, et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Tennessee, and the U.S. Department of Health and Human Services Office of Inspector General, with the assistance of the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee and Trial Attorney Jake M. Shields of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Final Defendant Sentenced to 10 Years in Federal Prison for Charges Related to a Series of Home BurglariesRead the Press Release
Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced Demar A. Brown, age 38, of Paterson, New Jersey and Winston-Salem, North Carolina to 10 years in federal prison, followed by three years of supervised release, for conspiracy and for transportation of stolen property, taken during a series of burglaries committed in Maryland and Georgia. Brown was convicted by a federal jury on September 16, 2021, after a 10-day trial for his role in the series of home burglaries.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the evidence presented at the trial, from November 29, 2017, through January 26, 2018, Brown, and co-defendants Jashon Fields and Kamar Beckles participated in a series of break-ins at residences in Baltimore County, Maryland and Milton, Georgia, in order to steal property, including: cash; foreign currency; safes; jewelry; designer purses, bags, and clothing; personal electronics; collectibles; personal identity documents; and items of sentimental value, such as historical medals, rare coins, and other memorabilia. The defendants intended to sell the stolen property out-of-state for cash.
Witnesses at trial testified that the defendants wore masks and gloves during the break-ins and communicated with each other using two-way radios and mobile phones. One of the conspirators often remained in the getaway car while the other conspirators committed the burglaries. Brown, Fields, and Beckles rented hotel rooms in Maryland where they would store the proceeds of the burglaries they committed (until the property and proceeds were transported out of state). Brown and Beckles transported the stolen property outside Maryland, including to two residences to which Brown had access in Winston-Salem, North Carolina.
As detailed during the trial, on January 26, 2018, the defendants were arrested near two residences that had recently been burglarized. Brown was arrested after officers responding to the burglary noticed a dark green Ford Explorer with North Carolina tags traveling slowly down the street. The vehicle was identical to a suspect vehicle seen in surveillance footage from some of the earlier burglaries. An officer pulled in behind the vehicle and, after a short vehicle chase, Brown was eventually arrested after trying to flee from the SUV.
Beckles and Fields were arrested in a nearby wooded area, about a half mile from one of the burglarized homes. At the time of his arrest, Beckles was wearing a distinct jacket with a reflective emblem on the back – identical in appearance to the insignia visible in surveillance footage from some of the earlier burglaries. Additional responding officers were able to view through the vehicle’s windows a safe matching the description of a safe stolen during the robbery, along with what appeared to be bags of other property stolen that evening and over $2500 in loose change – later determined to have been stolen from a home in Milton, Georgia.
A search of each defendant resulted in the discovery of hotel key cards, a breakfast ticket from the same hotel as the key cards, as well as $1,000 that one defendant possessed in his sock.
Search warrants executed on the two hotel rooms resulted in the recovery of jewelry stolen from a residence, property from homes burglarized in Milton, Georgia, as well as property from homes burglarized in Baltimore County on December 29, 2017, January 9, 2018, and January 10, 2018. Law enforcement also recovered a mask, a pair of gloves, a diamond tester, a scale, and a gold testing kit. In the second room, they located, among other things, Fields’ license, mail in the name of Beckles, and various phones.
On January 27, 2018, after obtaining a search warrant, law enforcement searched the Ford Explorer driven by Brown the previous day. They discovered, among other things, various tools and clothing for use in connection with burglaries, including a pry bar, a drill and hole saw, a mallet, three chisels, a reciprocating saw, multiple pairs of gloves, black knit hats, a balaclava style mask, two-way radios, and flashlights.
Law enforcement officers searching the vehicle also discovered many of the pieces of property stolen during two burglaries the previous day, as well as notes concerning a pawn shop and a jewelry shop in North Carolina.
On January 30, 2018, law enforcement obtained search and seizure warrants for Brown’s residences in Winston-Salem, North Carolina. There they located property from three earlier burglaries in Baltimore County—including numerous pieces of fine jewelry. Additionally, evidence on the nine phones seized from the defendants, the SUV, and the defendants’ hotel rooms showed, among other things, Brown and Beckles photographing many pieces of the jewelry and other items taken during some of the burglaries.
In total, 21 homes were burglarized in connection with the conspiracy, and the victims reported that $850,000 worth of property was stolen. Only some of that stolen property has been recovered and returned to its owners; for a few victims, most of their property has yet to be recovered.
Co-defendants Jashon C. Fields, age 37, of Atlanta, Georgia, and Kamar O. Beckles, age 36, of Teaneck, New Jersey were previously sentenced to five years in federal prison and 76 months in federal prison, respectively.
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. Project Safe Neighborhoods (PSN) is 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.
United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Paul A. Riley and Christopher M. Rigali, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Essex County Man Sentenced to Four Years in Prison for Conspiring to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 48 months in prison for his role in a conspiracy to steal check books and credit cards from the mail, deposit fraudulent checks, including pandemic relief checks, and use stolen credit cards without authorization, U.S. Attorney Philip R. Sellinger announced.
Jeffrey Bennett, 27, of Irvington, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Bennett conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at these financial institutions and withdrawing funds before the financial institutions identified the fraudulent checks and blocked further withdrawals. Bennett and his conspirators arranged for U.S. Postal Service (USPS) employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Bennett and his conspirators, who forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, who had given Bennett and his conspirators access to their accounts, also in exchange for cash. Bennett and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
In addition to the prison term, Judge Wigenton sentenced Bennett to three years of supervised release and ordered restitution of $61,438.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Duval Felon Indicted for Possession of A Firearm and AmmunitionRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return of an indictment charging Otis L. Shivers (49, Jacksonville) with possessing a firearm and ammunition as a convicted felon. If convicted, Shivers faces a minimum mandatory sentence of 15 years, and up to life, in federal prison. The indictment also notifies Shivers that the United States intends to forfeit a revolver and six live rounds of ammunition.
According to the indictment, on October 29, 2021, Shivers was arrested by officers from the Jacksonville Sheriff’s Officers outside a motel in the Lane Avenue area of Jacksonville. Shivers had a revolver loaded with six live rounds in his possession. At the time, Shivers had five previous felony convictions for selling drugs and therefore is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is 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.
Drug Dealer Sentenced to 25 Years in Prison for Selling the Fentanyl that Resulted in Death of User; Longest Sentence to DateRead the Press Release
Assistant U. S. Attorneys Stephen H. Wong (619) 546-9464 and Mikaela L. Weber (619) 546-9734
NEWS RELEASE SUMMARY – February 14, 2022
SAN DIEGO – Jahvaris Lamoun Springfield was sentenced in federal court today to 300 months in prison for selling the fentanyl pills that resulted in the fatal overdose of U.S. Army veteran Brendan James Gallagher on February 5, 2019. This is the longest sentence to date in this district for this crime.
On August 27, 2021, following a three-day trial before U.S. District Judge Larry Alan Burns, a jury convicted Springfield of causing Gallagher’s death by distributing fentanyl to Gallagher on February 5, 2019.
The evidence presented at trial showed that Gallagher was a U.S. Army veteran who served overseas in Afghanistan. Upon his return to the United States, Gallagher was honorably discharged. In 2018, Gallagher moved from Boston to San Diego in an attempt to break his addiction. However, Gallagher turned to opioid drugs in the form of counterfeit oxycontin pills later that year.
The evidence also showed that, on the afternoon of February 5, 2019, Gallagher sent text messages to Springfield seeking to purchase oxycontin pills. Later that day, Gallagher’s roommates called 911 to report that Gallagher was nonresponsive in his bedroom. When agents arrived at the residence, they found two counterfeit oxycontin pills that tested positive for fentanyl. Additionally, Gallagher’s autopsy showed a fatal concentration of fentanyl in his blood. In the investigation that followed, agents obtained evidence showing that Springfield sold Gallagher pills on February 5, 2019. When agents arrested Springfield, they found counterfeit oxycontin pills that tested positive for fentanyl in the vehicle Springfield had been driving.
DEA Narcotics Task Force Team 10 led the investigation in this case. Team 10 is a specialty unit, with investigators from HSI, FBI, San Diego Police Department, CA Department of Health Care Services, and the San Diego District Attorney’s Office, that investigates overdose deaths in San Diego. Team 10 responds to the discovery of overdose victims and aggressively pursues criminal cases, up the distribution chain, against both the dealers and their sources of supply.
“This is the longest federal sentence to date in a case of a drug dealer being held responsible for the death of a customer in the Southern District of California, and it should put dealers and those who supply them on notice. Every time we have an overdose death, law enforcement will come looking for you, because lives are at stake,” said U.S. Attorney Randy Grossman. “We will not stop with the street-level dealers but will follow the supply chain as far up as necessary and will use every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.” Grossman thanked the prosecution team as well as DEA Team 10 investigators for their hard work on the case.
“Today’s sentencing of Jahvaris Springfield is a reflection of the hard work of the investigators assigned to DEA’s Team 10,” said DEA Special Agent in Charge Shelly S. Howe. “These dedicated men and women work tirelessly around the clock to hold drug dealers accountable for the deaths they are causing and to bring justice to families who have lost their loved ones. This 25-year sentence is proof that their efforts have paid off.”
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego Police Department, the Drug Enforcement Administration and other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 20cr2923-LAB
Jahvaris Lamoun Springfield Age: 31 San Diego
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(a)(1), (b)(1)(C)
Maximum penalty: Life in Prison
AGENCY
Drug Enforcement Administration
Federal Bureau of Investigation
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
San Diego County District Attorney’s Office
District Man Sentenced to 24 Years in Prison for Robbery and Attack in Northwest WashingtonRead the Press Release
WASHINGTON – Joshua Austin, 34, of Washington, D.C., was sentenced today to 24 years in prison for attacking a senior citizen in an apartment stairwell during a robbery in Northwest Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Austin was found guilty by a jury in December 2021 of charges of first-degree burglary of a senior citizen, robbery of a senior citizen, and assault with intent to commit robbery of a senior citizen. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rainey R. Brandt. Following his prison term, he is to be placed on five years of supervised release.
According to the government’s evidence, at approximately 12:30 p.m. on Oct. 30, 2019, the then 68-year-old victim -- who uses a cane and was suffering from multiple significant health issues -- walked from her apartment building to a nearby corner market located at Missouri and Georgia Avenues NW. She encountered Austin, a stranger, inside the store. Not long after she left the market, Austin followed her to her apartment building on his bicycle. According to the evidence, Austin then followed her into the stairwell of her apartment building where he threw her on the ground, assaulted her, dumped her groceries onto the floor, and stole $60 before fleeing. The woman suffered a broken collarbone and injuries to her arms in the attack.
Austin was identified through surveillance video and other evidence. He was arrested Dec. 26, 2019. 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 acknowledged the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Charles J. Willoughby, Jr., Alicia Long, and Daniel Lenerz, Paralegal Specialists Lashaune Briggs and Alesha Matthews, and teams from the Victim/Witness Assistance Unit and the Litigation Technology Unit.
Finally, they commended the work of Assistant U.S. Attorneys Emma McArthur and Kristian Hinson, who investigated and prosecuted the case.
District Man Pleads Guilty to Bias-Related Assault in Confrontation with Employees at Fast-Food RestaurantRead the Press Release
WASHINGTON - Johnnie Williamson, 36, of Washington, D.C. has pleaded guilty to charges stemming from two violent confrontations that took place in 2020, including one that was prosecuted as a hate crime, U.S. Attorney Matthew M. Graves announced today.
Williamson pleaded guilty on Feb. 9, 2022, in the Superior Court of the District of Columbia, to one count of bias-related assault and one count of attempted possession of a prohibited weapon. Williamson had been in custody while awaiting trial ever since his arrest in March 2021. He was sentenced today by the Honorable Jason Park to 450 days of incarceration; however, all of that time was suspended, with credit for the time he has already served, on the condition that he successfully complete one year of supervised probation. As a condition of probation, Williamson must participate in mental health treatment and supervision.
According to the government’s evidence, the first incident took place on June 14, 2020. At approximately 1:45 p.m., Williamson pulled a knife during an argument with an individual while inside of Union Station.
The second incident took place at approximately 8:40 p.m. on Dec. 27, 2020. Williamson entered a Chipotle restaurant in the 2300 block of Washington Place NE. He asked an employee how much food he could purchase with approximately $8. The employee tried to assist. But due to a language barrier, she had difficulty communicating, and so she asked her manager to assist. The manager informed Williamson what was available on the menu for under $8.
Williamson was not satisfied with the answer, and immediately began yelling a series of xenophobic, ethnic, and transphobic slurs at the employee and the manager.
As Williamson yelled these slurs, he climbed onto the service counter and spit on the employee. He then reached over the counter and began throwing food and serving spoons at the employee, striking her in the hand. After throwing the spoons, Williamson then pushed the cash register off the counter. He picked up a fire extinguisher and threw it at the manager, striking her in the leg. Williamson continued yelling slurs throughout the incident. Finally, as he moved towards the exit, he shouted that he was going to return and kill the employees. Williamson was arrested on March 5, 2021.
In announcing the plea, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Assistant U.S. Attorney Travis Wolf, who investigated and prosecuted the case.
Cleveland-Cliffs Agrees to Improve Environmental Compliance at Indiana Facility and Pay $3 Million Civil Penalty for Ammonia and Cyanide ViolationsRead the Press Release
Cliffs Burns Harbor (Cleveland-Cliffs) has agreed to resolve alleged violations of the Clean Water Act (CWA) and other laws, for an August 2019 discharge of ammonia and cyanide-laden wastewater into the East Branch of the Little Calumet River. The discharge, which led to fish kills in the river, also caused beach closures along the Indiana Dunes National Lakeshore. Cleveland-Cliffs is undertaking substantial measures to improve its wastewater system at its steel manufacturing and finishing facility in Burns Harbor, Indiana.
The complaint filed with the settlement alleges that Cleveland-Cliffs exceeded discharge pollution limits for cyanide and ammonia; failed to properly report those cyanide and ammonia releases under the Emergency Planning and Community Right-to-Know Act (EPCRA), and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA); and violated other Clean Water Act and permit terms.
“Today’s settlement with Cleveland-Cliffs appropriately penalizes the company for its significant violations and requires extensive actions by the company to prevent future pollution,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “The cyanide and ammonia reductions will result in a cleaner Lake Michigan, and the public will be kept informed of potential future spills.”
“EPA and its partners worked together to develop a comprehensive solution that will not only support the continued enjoyment of Lake Michigan and Indiana waterways, but also implement necessary measures at the facility to prevent future spills like this again,” said Acting Assistant Administrator Larry Starfield for Environmental Protection Agency (EPA)’s Office of Enforcement and Compliance Assurance. “Today’s settlement demonstrates that EPA is committed to protecting our natural resources from harmful pollution.”
“Hoosiers support a legal climate in Indiana that both promotes thriving businesses and protects our natural environment,” said Indiana Attorney General Todd Rokita. “I’m pleased to see a resolution in this particular case that upholds the rule of law and establishes commitments to make physical upgrades that will benefit everyone involved.”
“I am grateful to our federal and community partners who helped reach this settlement,” said Indiana Department of Environmental Management (IDEM) Commissioner Brian Rockensuess. “The consent decree will result in additional protections for the local community and Lake Michigan and go a long way in improving both health and the environment in Northwest Indiana.”
The settlement agreement, which is memorialized in a consent decree lodged today in federal district court in the Northern District of Indiana, requires Cleveland-Cliffs to pay $3 million as a civil penalty and to reimburse the EPA and the State of Indiana for response costs incurred as a result of an August 2019 discharge of wastewater containing ammonia and cyanide into a river that flows into Lake Michigan. A new ammonia treatment system and cyanide treatment requirements will greatly reduce the facility’s water pollution levels.
Cleveland-Cliffs will also resolve allegations under EPCRA and CERCLA by implementing a protocol to notify relevant state and local groups about any future spills of cyanide from its Burns Harbor facility.
In August 2019, the facility’s blast furnace closed loop air scrubber water recycle system failed, requiring Cleveland-Cliffs to draw in large volumes of Lake Michigan water and discharge it through the facility outfalls, without being able to recycle the water. Cleveland-Cliffs’ wastewater treatment system is not designed for the treatment and discharge of this volume of water, so the incident resulted in discharges containing high levels of untreated cyanide and ammonia-nitrogen. Following the discharge of untreated water, there was a fish kill in the East Branch of the Little Calumet River.
Cleveland-Cliffs failed to provide timely notification and emergency reports to the local emergency response authorities after the release, as required under CERCLA/EPCRA.
EPA and IDEM conducted response actions in and around the areas of the discharges. The incident closed several local beaches along the Indiana Dunes National Lakeshore. Inspections and further investigation of the facility by EPA and Indiana Department of Environmental Management revealed additional violations of the facility’s NPDES permits.
In December 2019, the Environmental Law and Policy Center (ELPC) and Hoosier Environmental Council (HEC) filed a citizen suit against Cleveland-Cliffs for alleged violations of the Clean Water Act. ELPC and HEC are also signatories to the consent decree, which will resolve their ongoing citizen suit.
Under the consent decree, Cleveland-Cliffs will construct and operate a new ammonia treatment system at the blast furnaces, implement a new procedure for managing and treating once-through water during emergency situations, and follow enhanced preventive maintenance, operation and sampling requirements for the facility. These measures are designed to fix conditions at the facility that gave rise to the August 2019 spill, furthering compliance with the CWA and analogous state laws.
To resolve the citizen suit claims, Cleveland-Cliffs has also agreed to two state-administered Environmentally Beneficial Projects (EBPs): (1) a transfer of 127 acres of land property adjacent to the Indiana National Lakeshore to a land trust for conservation; and (2) background sampling on the East Branch of the Little Calumet River and Lake Michigan.
As part of the agreement, Cleveland-Cliffs will reimburse EPA’s total cleanup response costs of $10,025.37 and Indiana’s response costs of $37,650.
Today’s settlement, lodged with the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period following notification in the Federal Register, and final approval by the court. To view the consent decree or to submit a comment, visit the department’s website at: https://www.justice.gov/enrd/consent-decrees.
Chicago Attorney Convicted on False Statement and Tax Offenses in Connection with Funds Received from Failed BankRead the Press Release
CHICAGO — A federal jury today convicted a Chicago attorney on false statement and tax offenses in connection with funds he received from the failed Washington Federal Bank for Savings.
PATRICK D. THOMPSON, 52, of Chicago, was found guilty on all seven counts against him, including five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp. Each false statement count is punishable by a maximum sentence of 30 years in federal prison, while each tax count is punishable by up to three years. U.S. District Judge Franklin U. Valderrama set sentencing for July 6, 2022.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the City of Chicago Inspector General’s Office. The government is represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Jeremy Daniel.
According to evidence presented at trial, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments. He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received. Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans. When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement. In reality, Thompson knew he had actually received $219,000 in three separate installments – none of which went towards home improvements – and that $110,000 of it was paid by the bank directly to Thompson’s law firm as Thompson’s capital contribution.
The tax charges stemmed from Thompson falsely representing on five years of income taxes that he was entitled to a mortgage interest deduction for interest payments made on money he received from Washington Federal, even though he knew the loan was not a mortgage loan and he did not make interest payments as reported on those returns.
Chenango County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Brian T. Whipple, age 42, of New Berlin, New York pled guilty today to receipt and possession of child pornography. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations, and New York State Police Superintendent Kevin P. Bruen.
According to the offer of proof filed by the government and admitted to by Whipple during his change of plea hearing, he used peer-to-peer file sharing programs from 2009 through 2020 to knowingly receive child pornography images and videos. When Whipple was arrested in June 2020, he had over 5,000 child pornography files (images and videos) on DVDs, a thumb drive, and his cellular telephone.
At sentencing scheduled for June 14, 2022, Whipple faces a mandatory minimum term of imprisonment of five years and a maximum term of 20 years for the receipt offense. He faces a maximum sentence of 20 years’ imprisonment for each of the three counts of possession of child pornography to which he pled guilty. In addition to imprisonment, Whipple can be fined up to $250,000 per count, will be required to pay restitution to the victims of his child pornography receipt and possession offenses, and will be required to serve a term of supervised release after imprisonment of between five years and life. Whipple also will have to register as sex offender upon his release. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Homeland Security Investigations in cooperation with the New York State Police and the Chenango County District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is 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 https://www.justice.gov/psc.
Charleston Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Curtis Givens, 52, of Charleston, pleaded guilty today to federal drug and gun crimes.
According to court documents, Givens admitted selling fentanyl to a confidential informant on two separate occasions in November 2020. The drug transactions occurred at Givens’ residence in Charleston. During one of the controlled buys, Givens also sold the confidential informant two firearms.
Givens pleaded guilty to distribution of fentanyl and possession of a firearm in furtherance of a drug trafficking crime and faces up to life in prison when he is sentenced on May 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00166.
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Central Falls Man Admits to Role in Drug Trafficking OrganizationRead the Press Release
PROVIDENCE, R.I. – A Central Falls man admitted in federal court today to being a member of a Drug Trafficking Organization (DTO) that shipped dozens of packages containing kilograms of cocaine from Puerto Rico to various addresses in Rhode Island, announced United States Attorney Zachary A. Cunha.
George Mojica, 42, pled guilty to an information charging conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. In his plea agreement, Mojica admitted that from at least February 22, 2019, and continuing through December 16, 2019, he participated in the conspiracy to distribute cocaine and to possess cocaine with the intent to distribute. Mojica also admitted that he communicated with co-conspirators about the arrival dates of incoming cocaine parcels that had been shipped via US Priority Mail, about receiving and retrieving the cocaine parcels, and about transporting them.
According to court documents, beginning in January 2018, members of the drug trafficking organization in Puerto Rico repeatedly mailed US Priority Mail parcels to various Rhode Island addresses. The return addresses on the parcels used sender names that were not associated with the listed return addresses, and the packages were addressed to recipients in Rhode Island that were not associated with the where the parcels were sent. Members of the organization in Rhode Island routinely tracked the packages online as they moved through the mail to determine when and where they would be delivered. Once delivered, the packages were retrieved by Mojica or by other co-conspirators and couriers. After the parcels were retrieved, they were delivered to Mojica or to other co-conspirators. Based on the packages seized, the known size and weights of many of the parcels not intercepted, the organization is believed to have shipped and/or attempted to ship approximately 51 kilos of cocaine to Rhode Island between January 2018 and December 2019.
It is alleged in charging documents that for nearly two years Mojica, Arcadio Torres, 40, of North Providence, Nelson Carvahlo, 47, of Cranston, Angel Delgado, 25, of Pawtucket, and others, tracked, retrieved, and transported packages containing between one and five kilograms. Numerous packages were intercepted by law enforcement.
Mojica is scheduled to be sentenced by U.S. District Court Mary S. McElroy on May 16, 2022.
Angel Delgado pled guilty on January 7, 2020, to conspiracy to distribute and possession with intent to distribute 500 kilograms or more of cocaine. He is scheduled to be sentenced by U.S. District Court Mary S. McElroy on March 31, 2022. Charges remain pending in federal court against Torres and Carvahlo.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the United States Postal Inspection Service, DEA, and members of the Rhode Island High Intensity Drug Trafficking Area.
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California Man Subdued by Passengers, Flight Crew Aboard American Airlines Flight to Washington, D.C.Read the Press Release
KANSAS CITY, Mo. – A California man was subdued by several passengers and flight attendants when he tried to open the exit door on an American Airlines flight en route to Washington, D.C., on Sunday afternoon, forcing the plane to land at Kansas City International Airport in Kansas City, Missouri.
Juan Remberto Rivas, 50, was charged with one count of assaulting and intimidating a flight attendant and thereby interfering in the performance of the flight attendant’s duties. Rivas remains in federal custody pending a detention hearing, which has not yet been scheduled.
Rivas was a passenger aboard American Airlines flight 1775 traveling nonstop from Los Angeles, Calif., to Washington, D.C., which was diverted to Kansas City International Airport in Kansas City, Mo., at approximately 2:28 p.m. Sunday, Feb. 13.
According to an affidavit filed in support of today’s federal criminal complaint, Rivas created a disturbance on the plane that escalated when he walked up to the cockpit area. Rivas grabbed some plastic silverware, removed the napkin wrapped around it, and placed the plastic silverware in his shirt sleeve and was holding it like a shank. A flight attendant told federal agents he felt threatened by the knife. Rivas then grabbed a small champagne bottle by the neck of the bottle and attempted to break the bottle on the counter. He began kicking and shoving the service cart into one of the flight attendants.
Rivas, who is about six-feet, three-inches tall and weighs about 240 pounds, allegedly grabbed the handles used to manipulate the forward starboard aircraft exit door. Rivas positioned one foot on the aircraft door, the affidavit says, and began pulling hard on the handle with one hand, at first, and then both of his hands. A flight attendant grabbed a coffee pot and hit Rivas twice in the head with it. Several passengers came forward to assist the flight attendants, the affidavit says. One of the passengers, a police officer, began to struggle with Rivas and pulled him away from the door. A passenger punched Rivas in the jaw and another passenger grabbed his neck and pulled him to the floor. Passengers and flight attendants restrained Rivas until they could secure his hands and feet with zip ties and duct tape.
Rivas received medical treatment for a laceration on his head. Flight attendants told investigators they did not serve any alcohol to Rivas during the flight.
The charge contained in this complaint is simply an accusation*, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
California Man Sentenced to Prison for Unemployment Insurance Benefits FraudRead the Press Release
LAS VEGAS – A California man who admitted to fraudulently obtaining over $170,000 in unemployment benefits — by submitting multiple unemployment claims in other people’s names and using benefits debit cards not belonging to him — was sentenced today to 30 months in prison.
Keheir Jordan Parker (25), of Victorville, California, pleaded guilty in June 2021 to one count of conspiracy to effectuate illegal transactions with an access device. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Parker to three years of supervised release.
According to court documents and admissions made in court, on September 11, 2020, Parker and co-conspirator Robert Devon Barber were stopped in Las Vegas for a traffic violation. During the traffic stop, law enforcement officers recovered 12 California Employment Development Department (EDD) unemployment insurance benefits debit cards issued in other peoples’ names, along with ATM receipts showing that the debit cards had been used to make cash withdrawals totaling $7,400 in Nevada and California. At least $249,460 in unemployment benefits was approved for claims associated with the 12 recovered EDD cards, and over $170,715.78 was obtained from accounts associated with those cards — including $148,400 in ATM cash withdrawals and $22,315.78 in purchases.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang 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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Bristol Man Pleads Guilty to Attempting to Engage in Sex with Minor, Distributing Child PornographyRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ROBERT MARLIN SELLERS, 61, of Bristol, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to child exploitation offenses related to his attempt to engage in sex with a minor.
According to court documents and statements made in court, in 2020, law enforcement received information that Sellers was sharing videos of child sex abuse on a website that is focused on incest. In November 2020, an undercover FBI employee began interacting with Sellers on the social media application Kik. In the chats, Sellers made statements that he had sexually abused children, and that he had trafficked a child to engage in commercial sex acts. He also said that he had recently traveled out of state to have sex with another 12-year-old girl. The undercover investigator told Sellers that he had a 12-year-old daughter (“Doe”). After Sellers introduced the idea that Doe could be trafficked for sex, and offered suggestions to the undercover investigator about how it could be accomplished, Sellers arranged to have sex with Doe in exchange for $200.
In January 2021, Sellers, using an encrypted instant messenger application, sent the undercover investigator a link to videos of child sex abuse that Sellers maintained on a file sharing website.
On February 4, 2021, Sellers was arrested at a hotel in Southington shortly after he provided the undercover investigator $200 to engage in sex with Doe.
Sellers has been detained since his arrest.
Sellers pleaded guilty to one count of attempted coercion and enticement of a minor, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and one count of distribution of child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
U.S. Attorney Boyle thanked the New Britain State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This matter is being investigated by the FBI New Haven Child Exploitation Task Force and the Southington Police Department. The task force includes members from the Connecticut State Police and the Naugatuck, East Windsor, New London and Southington Police Departments. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Bourbon County Man Sentenced to 15 Years for Production of Child PornographyRead the Press Release
LEXINGTON, Ky.— A Paris, Ky., man, Joseph Moctezuma Lopez, 28, was sentenced to 180 months in federal prison on Monday, by U.S. District Judge Joseph Hood, after pleading guilty to production of child pornography.
According to Lopez’s plea agreement, in or before August 2017, he admitted to meeting a minor victim online and communicating with her over social media applications and the Internet for over two years. In September 2019, Lopez traveled from Lexington, to the Canadian border to meet the victim; but he was stopped at the border. Law enforcement found explicit photographs of the victim on his phones, which Lopez admitted he enticed the victim into producing.
Lopez pleaded guilty in November 2021.
Under federal law, Lopez must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the Department of Homeland Security (DHS) – Homeland Security Investigations (HSI) and the Lexington Police Department. The United States was represented by Assistant U.S. Attorneys David Marye and Andrea Mattingly Williams.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and 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.
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Beaumont Man Pleads Guilty to Armed Robbery of a Convenience StoreRead the Press Release
BEAUMONT, Texas – A Beaumont man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Kenderious DaShawn Coleman, 20, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence today before U.S. Magistrate Judge Christine Stetson.
According to court documents, on September 10, 2021, Coleman committed the armed robbery of a Dollar General store in Beaumont. Coleman was brandishing a firearm inside the store while demanding money from a store clerk. During the robbery, Coleman struck a store employee in the face with the pistol he was carrying, before making off with approximately $1500 from the store safe. Coleman was arrested nearby a short time later with the pistol and stolen money on him.
Coleman was indicted by a federal grand jury on October 6, 2021. He faces up to 20 years in federal prison on the armed robbery charge and an additional 7 years imprisonment for brandishing a firearm during the commission of that crime. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
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 Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Bakersfield Man Pleads Guilty to Unlawfully Possessing AmmunitionRead the Press Release
FRESNO, Calif. — Jesus B. Cordero, 26, of Bakersfield, pleaded guilty today to possession of ammunition after sustaining a domestic violence conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, at approximately midnight on Sept. 5, 2020, law enforcement officers stopped Cordero for traffic infractions while he was driving in Bakersfield. Cordero did not have a driver’s license and gave a false name to the responding police officers. During a search of Cordero’s vehicle, officers located a baggie containing approximately 45.5 grams of methamphetamine, which Cordero possessed intending to distribute it to others. Officers also discovered in Cordero’s vehicle a 9 mm unmarked privately made handgun known as a “ghost gun” loaded with a high-capacity magazine and 23 rounds of 9 mm ammunition. Cordero may not possess firearms or ammunition because he previously was convicted of inflicting corporal injury on a spouse or cohabitant.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Cordero is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 9, 2022. Cordero faces a maximum term of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
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.
Arrest in California on Hawaii Indictment Charges Investment Fraud of over $2 MillionRead the Press Release
HONOLULU – United States Attorney Clare E. Connors and Federal Bureau of Investigation Special Agent in Charge Steven Merrill announced today that Richard Patterson, also known as Xavier Carter, 40, was arrested on February 11 in California pursuant to an indictment in the District of Hawaii. Patterson, Dashawn Hill, 46, and Judy Ramos, 52, all former residents of Hawaii, were charged with Conspiracy and Wire Fraud, and Patterson and Ramos also were charged with money laundering. Patterson made an initial appearance in court in the Central District of California. Ramos and Hill have not yet been arrested.
The indictment alleges that beginning by at least in or around July 2015, the defendants participated in an “advanced payment scheme.” One or more of the defendants solicited upfront payments from victim-investors that would purportedly be used to generate much larger sums of money for the victim-investors after a short period. The upfront payments were not invested and had no reasonable possibility of generating the promised return. To perpetuate the scheme, the defendants falsely represented that they were wealthy financial professionals, and that Patterson and Hill owned a financial institution that was properly registered in Switzerland. At times, Patterson used a fictitious alias, “Xavier Carter” and spoke with a fake accent.
The indictment further alleges that upfront payments were divided amongst the defendants and used to pay the defendants’ personal expenses, such as credit card bills, rent, entertainment expenses, and other expenses, none of which were investments and had no potential to earn the returns promised to the investors. During the course of the conspiracy, the defendants collectively solicited over $2.5 million in upfront payments from investors, and only returned approximately $163,000, some of which was derived from the payments of other victim-investors.
“Those who take money from investors by promising great returns in a short amount of time, with little or no attempt to generate such returns, should face serious consequences for their actions,” said U.S. Attorney Connors.
“The alleged fraudsters preyed on our communities, targeting trusting families and local business owners for their own selfish gain. The FBI takes financial crimes very seriously and will bring its considerable resources to hold those who commit fraud accountable,” said Special Agent in Charge Steven Merrill. “Friday's arrest is a direct result of the professional and thorough work of our employees and partners. I urge the community to use our tip line at tips.fbi.gov to aid us in bringing those who commit fraudulent schemes to justice.”
If convicted, each defendant faces a sentence of up to 20 years imprisonment, and a fine of up to $250,000 for each count of conspiracy to commit wire fraud or wire fraud. Patterson and Ramos face up to 10 years imprisonment, and a fine of up to $250,000 for each count of money laundering. An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI. Assistant United States Attorney Michael F. Albanese is prosecuting the case.
Antioch Man Sentenced to 147 Months in Prison for Attempted Transfer of Obscene Matter to a MinorRead the Press Release
PEORIA, Ill. – An Antioch, Illinois, man, Carl T. Zwanzig, 56, of the 27000 block of W. Grass Lake Road, was sentenced by U.S. District Court Judge James Shadid to 147 Months for Attempted Transfer of Obscene Matter to a Minor (Count 1 of the Indictment), and Penalty for Registered Sex Offender (Count 3).
At the February 10, 2022 sentencing hearing, the government presented evidence that Zwanzig communicated online with a person he believed to be a 15-year-old girl. In discussing meeting with the girl for sex, Zwanzig sent a video of himself masturbating. At the time, he was required to register as a sex offender based on a previous conviction for the Illinois offense of Grooming.
Zwanzig was indicted by the federal grand jury on December 17, 2019, and pleaded guilty to Counts 1 and 3 of the indictment in federal court on October 14, 2021.
The statutory penalties for the sentences of imprisonment on each count to which the defendant pleaded guilty must be ordered to be served consecutively (in addition to each other). Consequently, the maximum possible sentence which could be imposed on the combined counts was not more than 20 years in prison, not more than a $500,000 fine, not more than a lifetime of supervised release and a $5,200 mandatory special assessment. Zwanzig will be required to register as a sex offender and keep the registration current under the federal Sex Offender Registration and Notification Act.
The Federal Bureau of Investigation, Springfield Division-Peoria Resident Agency investigated the case. Assistant U.S. Attorneys Keith Hollingshead-Cook and Paul B. Morris represented the government in the prosecution.
The case against Zwanzig was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
Albuquerque man sentenced to four years and nine months in prison for cyberstalking, online threats and identity theftRead the Press Release
ALBUQUERQUE, N.M. – Mark Christopher Arnold, 39, of Albuquerque, was sentenced in federal court on Feb. 9 to four years and nine months in prison for interstate communication of threats, cyberstalking, unauthorized computer access in furtherance of cyberstalking, and aggravated identity theft. Arnold pleaded guilty to a four-count indictment on July 14, 2020.
According to the indictment and other court records, Arnold and the victim were involved in a relationship from 2016 to 2018, when the victim ended the relationship after an incident in which Arnold pointed a loaded pistol at her. The victim obtained a restraining order against Arnold in 2019. Between April 10, 2019, and June 10, 2019, Arnold sent over 700 messages including numerous threats and harassing statements to the victim.
In May 2019, the victim closed her Facebook account, but created a new account under a different last name around March 2020 and did not share the new account with Arnold. Between May 22, 2020, and May 24, 2020, she received several security warnings from Facebook, including that her password had been reset and that the account had been accessed from a different location. On May 23, 2020, Arnold sent her a message stating that she had left her passwords on his computer and that he had read her messages. He also left a voicemail in which he admitted to accessing her account.
On May 23, 2022, Arnold created a new Facebook account under the same name as the victim’s account and used it to send messages to the victim. Around the same time, Arnold began using his own Facebook account to send messages to the victim’s friends that included links to private videos of the victim. Arnold had posted the videos online under an account name that was very similar to the victim’s Facebook account. The videos were posted without the victim’s consent.
Upon his release from prison, Arnold will be subject to three years of supervised release.
The FBI Albuquerque Field Office investigated this case. Assistant United States Attorney Paul Mysliwiec prosecuted the case.
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Accountant pleads guilty to embezzling $800,000 from elderly clientRead the Press Release
ATLANTA - Heidi Royal, who was employed as an accountant at an Atlanta-based wealth management firm, has pleaded guilty to federal charges arising from a scheme to defraud one of the firm’s clients.
“Royal exploited the trust placed in her by an elderly client who was unable to manage her own affairs,” said U.S. Attorney Kurt R. Erskine. “Our office continues to prosecute anyone who targets vulnerable members of the community, especially the elderly.”
“It is very disheartening that Royal manipulated a vulnerable victim and stole much of her hard-earned savings after claiming to be a close friend that was supposed to have her best interests in mind,” said Philip Wislar, Acting Special Agent in Charge of FBI Atlanta. “The FBI will always make it a priority to protect senior citizens from exploitation.”
According to U.S. Attorney Erskine, the charges and other information presented in court: Heidi Royal’s employer was registered with the U.S. Securities and Exchange Commission as an investment adviser. The firm provided investment advice and financial services to C.K., an elderly widow suffering from dementia.
As the firm’s Accounting Manager and Bill-Pay Supervisor, Royal had access to C.K.’s Social Security Number and the usernames and passwords for C.K.’s investment accounts and bank accounts. As part of her duties and responsibilities at the firm, Royal provided professional accounting services and bill-pay services to C.K. for more than 10 years. During that time, Royal gained C.K.’s trust and developed a close personal friendship with her. Royal even told a co-worker at the firm that C.K. was like a grandmother to her.
As a person associated with an investment adviser, Royal owed a fiduciary duty to each of the firm’s clients, including C.K., and Royal was required to act in C.K.’s best interests at all times. Royal was not permitted to pay her own debts and expenses with C.K.’s money.
From approximately June 1, 2010, through March 17, 2021, however, Royal misappropriated approximately $800,000 of C.K.’s money and converted it to her own use.
As part of the scheme, Royal stole C.K.’s annuity payments, wrote more than 200 fraudulent checks on C.K.’s bank accounts, forged C.K.’s endorsement on checks, withdrew cash from C.K.’s bank accounts and converted it to her own use, fraudulently used the electronic bill-pay feature associated with C.K.’s bank accounts to divert money to herself, used PayPal to make electronic payments to herself from C.K.’s bank accounts, impersonated C.K. in telephone conversations with financial institutions; and made false and misleading entries in C.K.’s financial records to make the fraud harder to detect.
In addition, Royal fraudulently used C.K.’s name and Social Security Number to open a secret bank account for the purpose of concealing and disguising the fraud proceeds.
In mid-March 2021, when the firm learned that checks drawn on C.K.’s bank accounts had been deposited into Royal’s personal accounts, the firm immediately terminated Royal and reported the matter to law enforcement.
Heidi Royal, 52, of Dallas, Georgia, pleaded guilty to wire fraud and aggravated identity theft. Sentencing is scheduled for May 31, 2022, at 10:00 a.m., before U.S. District Judge Thomas W. Thrash Jr.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorneys Russell Phillips and Elizabeth McBath are prosecuting the case.
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with foreign-based fraud schemes that disproportionately affect American seniors. These include romance scams, phone scams, mass-mailing fraud schemes, and tech-support fraud schemes. For further information on these scams, see https://www.justice.gov/elderjustice/senior-scam-alert.
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.
Friday 11 February 2022
Woman Arriving at Cyril E. King International Airport Sentenced for Attempting to Smuggle 76 Kilograms of MarijuanaRead the Press Release
St. Thomas, USVI - United States Attorney Gretchen C.F. Shappert announced today that Idesha Patricia Sterrod, age 32, was sentenced to time served and two years of supervised release for attempting to smuggle 76 kilograms of marijuana through the Cyril E. King Airport.
According to court documents, on August 5, 2020, Sterrod traveled from California to the Cyril E. King Airport with several suitcases containing marijuana. The Defendant was traveling with three minor females, ages 12, 14, and 15, who are not related to her. While Customs and Border Protection (CBP) officers were conducting an inspection of the checked luggage, the CBP canine alerted to the scent of a controlled substance on a suitcase. The Defendant was observed retrieving the suitcases containing marijuana from the baggage claim area. Each of the three minor females also had a checked bag that was tagged in the minors’ names which contained marijuana.
Sterrod previously pled guilty in this case on May 17, 2021 to Possession with Intent to Distribute Marijuana.
This case was investigated by Customs and Border Protection, the Homeland Security Investigations, and Virgin Islands Police Department.
This effort was part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Wausau Man Sentenced to 18 Months for Illegal Gun PossessionRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, United States Attorney for the Western District of Wisconsin, announced that David Boyle, 44, Wausau, Wisconsin pleaded guilty and was sentenced yesterday by Chief U.S. District Judge James Peterson to 18 months in federal prison for being a felon in possession of firearms.
In May 2020, law enforcement agents learned that Boyle was receiving cocaine and THC through the U.S. Mail at his residence at that time in Marshfield, Wisconsin. The investigation revealed that during one week the residence received 27 packages from various addresses in California. Agents intercepted one package and found 26 grams of cocaine and 29 grams of THC wax inside.
Police investigators executed a search warrant at Boyle’s residence. In his bedroom they found two rifles, three handguns, ammunition, approximately 300 grams of marijuana, 14 grams of cocaine, and over $4,000 in cash. Boyle admitted to selling cocaine. He said that he purchased the firearms found in the house and admitted that he had a prior felony conviction from Nebraska.
At sentencing, Boyle said that his drug dealing was motivated by financial gain, but it was a mistake and he never thought he would be in front of a federal judge for it. Judge Peterson had concerns about Boyle’s judgment and reasoning, saying that the felony conviction in Nebraska should have been a wakeup call. Judge Peterson also recognized that cocaine was an addictive and damaging drug and said that Boyle’s drug dealing was aggravated by his possession of firearms. Boyle was also ordered to participate in three years of supervised release.
The charge against Boyle was the result of an investigation conducted by the Marshfield Police Department, Wisconsin Department of Justice Division of Criminal Investigation, and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan handled the prosecution.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Waianae Man Sentenced to over 11 Years in Prison for Robbery and Attempted CarjackingRead the Press Release
HONOLULU – Senior United States District Judge Helen Gillmor yesterday sentenced Joshua Leiataua, 30, of Waianae, Hawaii, to 137 months imprisonment for robbery and attempted carjacking. He also received 120 months imprisonment, to be served concurrently with the 137 month-sentence, for possessing ammunition as a felon.
U.S. Attorney Clare E. Connors stated that, according to court documents and information presented in court, on April 5, 2020, Leiataua entered a mini mart in Waipahu, brandished a firearm at the cashier, and demanded money. When the cashier was unable to open the register, Leiataua stole cartons of cigarettes and other items at gunpoint.
Approximately one month later, on May 13, 2020, Leiataua and Shanice Faalogo attempted to steal a vehicle from two individuals in Waianae at gunpoint. On that date, Leiataua approached the male victim who was standing just outside of the vehicle, brandished a firearm at the victim, and demanded that he give up the vehicle. Faalogo then took the firearm from Leiataua and discharged it in the direction of the male victim up in the air above him. Leiataua threw the female victim out of the vehicle by her hair. When Leiataua and Faalogo attempted to start the vehicle, they discovered the vehicle’s battery was dead and fled the scene.
At sentencing, Senior U.S. District Judge Helen Gillmor commented that Leiataua’s criminal conduct—involving “violence and firearms”—and criminal history show a “lack of respect for the law.” Faalogo previously pleaded guilty to the attempted carjacking and is awaiting sentencing.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and 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 Honolulu Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, and prosecuted by Assistant U.S. Attorney Sara D. Ayabe.
United States Attorney’s Office Commemorates National Slavery and Human Trafficking Prevention MonthRead the Press Release
TALLAHASSEE, FLORIDA – On February 2, 2022, U.S. Attorney General Merrick B. Garland released the Justice Department’s new National Strategy to Combat Human Trafficking pursuant to the Justice for Victims of Trafficking Act.
Rooted in the foundational pillars and priorities of the interagency National Action Plan to Combat Human Trafficking, which President Biden released on Dec. 3, 2021, the Justice Department's National Strategy is expansive in scope. It aims to enhance the department's capacity to prevent human trafficking; to prosecute human trafficking cases; and to support and protect human trafficking victims and survivors.
“Human trafficking is an insidious crime,” said Attorney General Garland. “Traffickers exploit and endanger some of the most vulnerable members of our society and cause their victims unimaginable harm. The Justice Department’s new National Strategy to Combat Human Trafficking will bring the full force of the Department to this fight.”
“Human trafficking is an abomination,” said United States Attorney Jason R. Coody. “With no regard for human dignity, traffickers inflict indescribable physical harm to their victims and often leave emotional scars that cannot be healed. With our law enforcement partners, our office remains committed to aggressively prosecuting those who must be held accountable for their despicable crimes.”
The United States Attorney’s Office joins law enforcement’s combined efforts to inform and protect communities across the district throughout the year. According to the Florida Department of Children and Families and based on the human trafficking intake rate per 100 children in the population, the Panhandle had one of the highest rates of reporting of human trafficking between July 1, 2020, and June 30, 2021. U.S. Attorney Coody highlights efforts by federal, state, and local partners to prevent and combat human trafficking in the Northern District of Florida (NDFL) held during January’s National Slavery and Human Trafficking Month.
Numerous human trafficking trainings and events included the following:
- On January 6, 2022, Perspectives Call in Radio Show on WFSU (88.9 FM): A panel of representatives from the community and beyond, including Sheriff Walt McNeil, Marsha Crowell from Capital City Bank, STAC, and a survivor of human trafficking, discussed the role of the business sector and local governments in recognizing and safely responding to human trafficking issues.
- On January 11, 2022, the 14th Circuit (Panama City area) Human Trafficking Task Force: The Task Force hosted a candlelight vigil lighting at the foot of the Hathaway Bridge in hopes of lighting the way to freedom for many victims. The purpose of the event was to bring awareness to the community, as well as to focus on human trafficking trends in the Florida Panhandle.
- On January 14, 2022, the North Central Florida Human Trafficking Task Force: “HT8” held its annual meeting in Gainesville, Florida. The purpose of the meeting was educate and engage members of the community in the fight against human trafficking. Various members of the community were recognized for their efforts by receiving the RISE (Recognition of Individuals Service with Excellence) Award.
- On January 20, 2022, 5th Annual Gadsden County Anti-Human Trafficking Forum: This program focused on social justice and human trafficking in Gadsden County and a call to action by and for the community and survivors.
- On January 20, 2022, the Federal Law Enforcement Training Center: conducted a special human trafficking training session in Gainesville, Florida for area law enforcement officers. The training was designed to provide a better understanding of human trafficking in its various forms. The presentation included a guest speaker who spoke about human trafficking victim trauma and was followed by a panel discussion with local area experts.
- On January 20, 2022, the Circuit 1 (Pensacola area) Human Trafficking Task Force: The Task Force partnered with the University of West Florida and other community leaders to host their Annual Human Trafficking Summit. This year’s theme was “A Survivor-Centered Approach: Bringing Their Voices to the Table.” The summit kicked off with a “Human Trafficking 101” training which tackled the real-life facts and truths of human trafficking while demystifying the common myths and misconceptions about what it is and what it is not. This presentation was followed by a survivor panel discussion which detailed the stories of three human trafficking survivors and their trauma. The summit concluded with discussions on how we can better respond as a community and as service providers.
- On January 21, 2022, Human Trafficking and Businesses: The Survive and Thrive Advocacy Center (STAC), with funding from Leon County, Florida, developed a training initiative to give the thousands of businesses and others in our area information about what to look for, how to recognize signs and patterns of sex or labor trafficking and what to do if they suspect human trafficking is occurring.
- On January 24, 2022, Whole Child Leon Professional Network Community Conversation – Human Trafficking: Prevention, Intervention and Victim Services: In observance of National Slavery and Human Trafficking Awareness Month, The Starr Institute and the Open Doors Outreach Network teamed up to share information and provide resources to help us stay informed and make a difference.
- On January 25, 2022, the Impact of Human Trafficking on Campus: This panel discussion focused on how human trafficking can occur in our state’s higher education campuses and how institutions of higher learning can and should respond. Presenters were from Florida State University, Tallahassee Community College, Florida A&M University, Florida International University, the International Rescue Committee, and STAC.
- On January 27, 2022, Human Trafficking, and the Law: Labor Trafficking: Labor Trafficking: This program focused on both the civil and criminal sides of the justice system – and our entire community – are vitally important to recognizing this reality, preventing forced labor, and fully supporting survivors.
In addition to providing education, prevention, and technical and training assistance, the USAO-NDFL also vigorously prosecutes human trafficking crimes. Most recently, NDFL joined its federal, state, and local partners in Operation Stolen Innocence, which resulted in the investigation and federal prosecution of 19 defendants for victimizing a child in the Tallahassee area. In 2021, three defendants were convicted following jury trials. Thirteen defendants pled guilty, and three cases are pending trial. A collective 840 months in federal prison have been imposed for those have been sentenced thus far.
Among other things, the Justice Department’s multi-year strategy to combat all forms of human trafficking will:
- Strengthen engagement, coordination, and joint efforts to combat human trafficking by prosecutors in all 94 U.S. Attorneys’ Offices and by federal law enforcement agents nationwide.
- Establish federally funded, locally led anti-human trafficking task forces that support sustained state law enforcement leadership and comprehensive victim assistance.
- Step up departmental efforts to end forced labor by increasing attention, resources and coordination in labor trafficking investigations and prosecutions.
- Enhance initiatives to reduce vulnerability of American Indians and Alaska Natives to violent crime, including human trafficking, and to locate missing children.
- Develop and implement new victim screening protocols to identify potential human trafficking victims during law enforcement operations and encourage victims to share important information.
- Increase capacity to provide victim-centered assistance to trafficking survivors, including by supporting efforts to deliver financial restoration to victims.
- Expand dissemination of federal human trafficking training, guidance, and expertise.
- Advance innovative demand-reduction strategies.
The department’s strategy will be implemented under the direction of the National Human Trafficking Coordinator designated by the Attorney General in accordance with the Abolish Human Trafficking Act of 2017.
If you believe that you or someone you know may be a victim of human trafficking, please contact the National Human Trafficking Resource Center Hotline at 1-888-373-7888, or Text 233733.
To read the National Strategy to Combat Human Trafficking click here.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two South Bay Executives Charged with Fraud in Obtaining “Specialty Occupation” VisasRead the Press Release
SAN JOSE – Namrata Patnaik and Kartiki Parekh appeared in federal court today to face an indictment charging them both with visa fraud and conspiracy to commit visa fraud and further charging Patnaik with money laundering, announced United States Attorney Stephanie M. Hinds, U.S. Department of State Diplomatic Security Service (DSS), San Francisco Field Office, Special Agent in Charge William Chang, and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King.
According to the indictment, PerfectVIPs, Inc. (PerfectVIPs) is headquartered in San Jose and was incorporated in 2010 as a computer chip design product and services company. Patnaik, 42, a resident of Saratoga, acted as CEO of PerfectVIPs. Parekh, 56, a resident of Santa Clara, acted as the company’s human resources manager. The indictment charges that from 2011 through April 2017 Patnaik and Parekh submitted fraudulent H-1B visa applications for foreign workers sponsored by PerfectVIPs and that Patnaik later laundered the proceeds of the visa fraud.
H-1B visas are issued through the United States government’s H-1B Specialty Occupation Workers program. With an H-1B visa, an employer can employ a foreign worker in a “specialty occupation” in the United States on a temporary, nonimmigrant basis. A specialty occupation requires the theoretical and practical application of a body of specialized knowledge and requires the employee in the occupation have a bachelor's degree or its equivalent in the relevant specialty. Each employer seeking to obtain an H-1B visa to employ a nonimmigrant foreign worker is required to submit an application to the U.S. Department of Labor which attests, among other things, to labor conditions and describes the existence, duration, and wages associated with the temporary job. A subsequent petition requires, among other information, biographical data of the proposed foreign worker and identification of the address where the proposed foreign worker will be working.
The indictment charges that from 2011 through April 2017 Patnaik and Parekh submitted approximately 85 fraudulent H-1B visa applications for temporary nonimmigrant workers sponsored by PerfectVIPs. Each application contained representations under penalty of perjury. During the process, Patnaik and Parekh submitted or caused to be submitted statements that the foreign workers would be employed by PerfectVIPs to work on PerfectVIPs’s in-house contracts and projects at PerfectVIPs’s office locations. Once the applications were approved, Patnaik and Parekh instead created a pool of H-1B workers that were placed at employment positions with other employers, not with PerfectVIPs. This practice provided PerfectVIPs an unfair and illegal advantage over employment-staffing firms. During the period of Patnaik’s and Parekh’s conspiracy, the indictment alleges, the other employers paid fees of nearly $7 million to PerfectVIPs to cover the cost of the H-1B workers’ wages and salaries as well as a profit markup for PerfectVIPs.
Patnaik and Parekh made their initial appearances in San Jose federal court today before United States Magistrate Judge Nathanael M. Cousins. Both defendants were ordered to appear in United States District Court in San Jose on April 12 at 9 a.m. before United States District Judge Beth L. Freeman.
The federal indictment charges both Patnaik and Parekh with one count of conspiracy to commit visa fraud in violation of 18 U.S.C. § 371 and two counts of visa fraud in violation of 18 U.S.C. § 1546(a). The indictment also charges Patnaik with one count of money laundering in violation of 18 U.S.C. § 1957. The maximum statutory imprisonment sentence for a violation of 18 U.S.C. § 371 is 5 years in prison. The maximum statutory imprisonment sentence for each violation of 18 U.S.C. §§ 1546(a) and for a violation of 18 U.S.C. § 1957 is 10 years. Each of the charged statutes carry a maximum statutory fine of $250,000 or twice the gross gain or loss amount or, for money laundering, twice the amount of the criminally derived property involved. However, any sentence following a conviction would be imposed by a 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 charges contained in the criminal indictment are only allegations. As in any criminal case, these defendants are presumed innocent unless and until proven guilty in a court of law.
Assistant United States Attorney Sarah Griswold is prosecuting the case with the assistance of Lynette Dixon. The prosecution was the result of an investigation led by the DSS representative to the Document and Benefit Fraud Task Force (DBFTF), overseen by Homeland Security Investigations. The DBFTF is a multi-agency task force that coordinates investigations into fraudulent immigration documents. U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security also assisted with the investigation.
Two Plead Guilty in Conspiracy to Retaliate Against A WitnessRead the Press Release
ROANOKE, Va. - – A pair of Roanoke men who conspired to retaliate against a witness, to distribute fentanyl, and to possess a firearm during a drug trafficking crime, pleaded guilty recently in federal court.
William Preston Ramey-Woodard, 42, pleaded guilty today to one count of conspiring to threaten bodily harm or cause bodily harm to another person to retaliate against that person for providing information to law enforcement regarding the commission of a federal offense, one count of distributing 40 grams or more of fentanyl, and one count of possessing a firearm in furtherance of a drug trafficking crime.
Joseph Coquia “Kee” Martin, 42, of Roanoke, Va., pleaded guilty last week to one count of attempting to murder a person who was assisting a law enforcement officer and one count of discharging and possessing a firearm in furtherance of a crime of violence.
“These two defendants sought to retaliate against a government witness and for that, they are being held accountable,” United States Attorney Christopher R. Kavanaugh said today. “Too many times people with information have been scared to come forward due to fear of repercussion. This case should serve as an example that we, as a law enforcement community in Roanoke, have your back. We will protect you and prosecute anyone who threatens you for doing what is right.”
“Actions such as witness intimidation will never be tolerated and it is an act that we at ATF take very seriously,” ATF Washington Field Division Special Agent in Charge Charlie J. Patterson said today. “We know that it takes immense courage for some of our brave citizens to come forward and speak out against violent crime. We will continue to work with the United States Attorneys’ Office to investigate all matters such as this.”
“All too often, the solving of and successful prosecution regarding incidents of violent crime relies on witness information,” Roanoke Police Chief Sam Roman said. “We know our community is tired of seeing loved ones suffer from the impacts of gun violence and violent crime, and they would do anything to help us stop the ongoing violence in Roanoke. We also know that there are some people who threaten our community members for working with law enforcement agencies on these cases. This is a direct message to our community: do not be afraid to do the right thing. Do not be afraid to work with us on these cases. We will do all we can to protect you from those who threaten you for doing your part to keep your community safe.”
“I appreciate the combined work of the law enforcement community in Roanoke that has led to two violent criminals being removed from our community,” Roanoke County Police Chief Howard Hall said today. “The message should be clear that we will not tolerate this behavior and that we will do everything possible to protect victims and witnesses.”
According to court documents, in March 2020, Ramey-Woodard sold $4,000 worth of fentanyl to a confidential police informant. The transaction was captured on video, during which it is clear the defendant was in possession of a firearm. Following two subsequent controlled purchases from Ramey-Woodard, the defendant was arrested. While in custody, Ramey-Woodard engaged in coded telephone and email conversations with co-conspirator Joseph Martin, which were recorded by the jail. The two discussed the identity of the informant, where he worked, where he lived, and whether the informant should suffer consequences as a result of working with the police.
On May 31, 2020, Martin went to the informant’s home and shot him, causing a non-lethal injury. Ramey-Woodard claimed he wanted the informant to suffer a threat or perhaps physical assault but did not plan, intend, or anticipate Martin would shoot the informant.
Both Ramey-Woodard and Martin face a mandatory minimum sentence of 10 years in prison, and a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshals Service, the Virginia State Police, the Roanoke County Police Department, the City of Roanoke Police Department, the Salem Police Department, the Office of the Commonwealth’s Attorney for the County of Roanoke, the Western Virginia Regional Jail, and members of the Roanoke High Intensity Drug Trafficking Area Task Force (HIDTA) investigated the case.
Assistant U.S. Attorneys Andrew Bassford and Jonathan Jones are prosecuting the case.
Tioga County Man Sentenced to 51 Months’ Imprisonment for Marijuana Grow OperationRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on February 9, 2022, James Burrous, age 47, of Tioga County, Pennsylvania, was sentenced by Chief U.S. District Court Judge Matthew W. Brann to 51 months’ imprisonment followed by three years of supervised release for his role in a marijuana grow operation.
According to United States Attorney John C. Gurganus, Burrous possessed more than 100 marijuana plants that he intended to distribute. When a search warrant was executed on Burrous’s home in February of 2017, other controlled substances such as Dimethyltryptamine (“DMT”) and lysergic acid diethylamide (“LSD”) were also recovered.
Co-defendant, Zack Boyer, age 37, of Tioga County, was previously sentenced to 57 months’ imprisonment for his role in conspiring with Burrous to manufacture and distribute controlled substances.
The case was investigated by the Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorney Alisan V. Martin prosecuted the case.
This case was also part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Three Time Felon in Possession of Assault Rifle Sentenced to More Than Thirteen Years’ in PrisonRead the Press Release
A man who possessed an AR-15 rifle was sentenced today to more than thirteen years in federal prison.
David Wright, Jr., age 23, from Waterloo, Iowa, received the prison term after a June 10, 2021 guilty plea to two counts of being a felon in possession of firearms.
Evidence in the case showed that Wright and another individual were following an unmarked police car in Waterloo. A marked police car attempted to conduct a traffic stop on Wright’s vehicle, but the driver refused to stop and fled from police at high rates of speed. Once the vehicle stopped, Wright fled on foot. Police located an AR-15 rifle that was fully loaded with a round in the chamber on the seat where Wright was seated. The AR-15 rifle had previously been stolen. The month before, Wright was in possession of a .45 caliber handgun. At the time that Wright possessed these handguns, he was serving a term of federal supervised released, having previously been convicted for illegally possessing firearms as a drug user.
Wright was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wright was sentenced to 151 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. Judge Williams also imposed an additional twelve-month sentence for violating the terms of his supervised release. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is 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.
Wright is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Lisa C. Williams and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2008.
Follow us on Twitter @USAO_NDIA.
The United States Attorney’s Office, Memphis Police Department, Faith Based Leaders and Community Stakeholders Announce Efforts to Reduce Violent CrimeRead the Press Release
Memphis, TN – United States Attorney Joseph C. Murphy Jr., along with stakeholders in the South Memphis Community announced the second "Better Community Summit" effort to reduce violent crime throughout our city. Summit organizers and participants include the Memphis Police Department, represented by Deputy Chief Paul Wright; the Southern Christian Leadership Conference (SCLC) represented by Rev. Dr. Walter Womack; Memphis Baptist Ministerial Alliance (MBMA) Rev. Dr. Rickey Dugger; and program facilitators, Rev. Ricky Floyd, The Pursuit of God Transformation Center; Charles Caswell, Executive Director of Legacy of Legends, CDC; and DeAndre Brown, CEO, Lifeline2Success.
The U.S. Department of Justice is committed to work with law enforcement and other stakeholders to reduce violent crime in Memphis and West Tennessee. To achieve this goal, the Department has directed every U.S. Attorney’s Office to formulate a strategic plan designed to reduce violent crime. To that end, our office convened meetings with over 40 clergy leaders across the greater Memphis area to discuss violent crime and recommend possible solutions.
The U.S. Attorney’s Office, Memphis Police Department, non-profit organizations, clergy leaders, and other community stakeholders are pleased to announce the next "Better Community Summit" will be held on Saturday, February 26, 2022, at the Greater Mt. Moriah Baptist Church, 1098 South Wellington Street. The summit is tailored to address the needs of parents and children. Topics covered will include domestic violence prevention, gang talk, community conflict resolution, and de-escalation training.
Beginning in 2022, the remaining workshops will be held quarterly in the areas of North Memphis; Whitehaven/Westwood; and Hickory Hill/East Memphis.
Community Flyer - 26 February 2022Tennessee Man Admits Distributing FentanylRead the Press Release
BECKLEY, W.Va. – Mario Lavonta Ward, 46, of Tennessee, pleaded guilty today to a federal drug crime.
According to court documents, Ward admitted that on June 8, 2021 he sold a quantity of fentanyl to a confidential informant for $200. The drug transaction occurred near Beckley. Ward also admitted that on this same date, officers executed a search warrant at the residence where the drug transaction had occurred. During the execution of the search warrant, officers found additional quantities of fentanyl, methamphetamine, a firearm and $6,500 in cash. The cash recovered included the $200 used by the confidential informant to purchase the fentanyl. As part of the plea, Ward agreed to forfeit the money and the firearm and also admitted that he knew was prohibited from possessing the firearm due to a prior felony conviction.
Ward pleaded guilty to distribution of fentanyl and faces up to 20 years in prison when he is sentenced on May 27, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Beckley/Raleigh County Drug and Violent Crime Unit. The Beckley/Raleigh County Drug and Violent Crime Unit is comprised of officers from the West Virginia State Police, the Raleigh County Sheriff’s Department, and the Beckley Police Department.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00229.
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Suspected Ecuadorian Drug Trafficker Extradited to San Diego for Conspiracy to Distribute CocaineRead the Press Release
Assistant U.S. Attorney Joshua Mellor (619) 546-9733 and Special Assistant U.S. Attorney Nicole Bredariol (619) 546-8419
NEWS RELEASE SUMMARY – February 11, 2022
SAN DIEGO – Pedro Cornelio Pilligua Iduarte, the owner of multiple Ecuadorian flagged vessels which allegedly provided logistical support to drug laden vessels, was extradited to the United States from Spain yesterday.
On March 19, 2021, a federal grand jury sitting in the Southern District of California returned an indictment charging Pilligua Iduarte, and others, with participating in a long-running conspiracy to traffic substantial quantities of cocaine from South America to the United States.
An Ecuadorian national, Pilligua Iduarte was apprehended by Spanish authorities in April 2021 while visiting Madrid. He arrived in San Diego on February 11, 2021, and made his initial appearance today before U.S. Magistrate Judge Bernard G. Skomal. He is scheduled for a detention hearing before Judge Skomal on February 17, 2022, at 1:30 p.m.
This case is part of Operation Pangeros Locos, a multi-year investigation led by Homeland Security Investigations, along with the Drug Enforcement Administration, the Federal Bureau of Investigation, Customs and Border Protection, and United States Coast Guard Investigative Service and has had a significant impact on drug distribution from source countries in South America.
According to court documents, several Ecuadorian fishing vessels, based in Manta, Ecuador, have operated with impunity while providing material support to drug laden vessels to allow them to transport tons of cocaine over thousands of nautical miles of open ocean from Ecuador and Colombia to Mexico, for eventual distribution to the United States. These fishing vessels provide fuel, replacement parts, communication devices, or anything else needed to help the drug laden vessels complete their thousand-mile journey trafficking metric tons of cocaine from Colombia to Mexico. Without the support provided by the fishing vessel captains and owners, these drug laden vessels, typically pangas or low-profile vessels, would not be able to complete this long journey. This investigation has resulted in the seizure of more than 50,000 kilograms of cocaine, the indictment of 27 fishing vessel captains and owners, and the prosecution of 65 cocaine boat crewmembers.
“The Department of Justice appreciates the cooperation of the Spanish authorities in this matter. With the assistance of our law enforcement colleagues at home and around the world, we will aggressively pursue every avenue available in bringing drug traffickers to justice,” said U.S. Attorney Randy Grossman. Grossman thanked the prosecution team and San Diego Strike Force agents, led by Homeland Security Investigations as well as representatives from DEA, FBI, U.S. Coast Guard Investigative Service (CGIS), and Customs and Border Protection for their excellent work on this case.
“This extradition sends a resounding message to drug traffickers around the world that the United States law enforcement community will vehemently pursue those who seek to harm Americans with their deadly drugs and violence,” said HSI San Diego Special Agent in Charge Chad Plantz, who further praised the efforts of the San Diego Strike Force for their support and contribution to this criminal investigation and extradition.
“This indictment is a testament to the success of our collaborative efforts to disrupt transnational criminal organizations and prevent illicit drugs from making their way to America,” said Rear Adm. Brian Penoyer, the Eleventh Coast Guard District commander. “It is a privilege to work alongside the dedicated women and men of the Department of Justice and the Southern District of California who play such a crucial role in the successful team effort stopping these organizations. The hard work of our Coast Guard ships and crews in the Eastern Pacific Ocean culminates in indictments like this that dismantle smuggling organizations, put smugglers behind bars, and keep drugs off our streets.”
This prosecution was brought as a part of the Department of Justice’s Organized Crime Drug Enforcement Task Forces (OCDETF) Co-located Strike Forces Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations against a continuum of priority targets and their affiliate illicit financial networks. These prosecutor-led co-located Strike Forces capitalize on the synergy created through the long-term relationships that can be forged by agents, analysts, and prosecutors who remain together over time, and they epitomize the model that has proven most effective in combating organized crime. The specific mission of the San Diego Strike Force is to target the most significant drug trafficking organizations in Mexico, Central and South America.
OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
The Justice Department’s Office of International Affairs worked with law enforcement partners in Spain to secure the arrest of Pilligua Iduarte and his extradition to the United States.
The United States is represented in court by Assistant U.S. Attorneys Joshua Mellor and Nicole Bredariol.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Defendant Information
Defendant Criminal Case No: 21-cr-0896-JLS
Defendant Number
Name
Age
Hometown
2
Pedro Cornelio Pilligua Iduarte
aka Don Pedro, aka Corne, aka P, aka Patron, aka Jefe
48
Manabi, Ecuador
Summary Of Charges
International Conspiracy to Distribute Controlled Substances, in violation of Title 21 U.S.C. §§ 959, 960 and 963. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
Conspiracy to Possess with Intent to Distribute Cocaine on Board a Vessel, in violation of Title 46 U.S.C. §§ 70503, and 70506. Term of custody including a mandatory minimum 10 years and up to life imprisonment, $10 million fine.
AGENCIES
Homeland Security Investigations
Drug Enforcement Administration
Federal Bureau of Investigation
Customs and Border Protection
United States Coast Guard Investigative Service
Policia Nacional del Ecuador
Policia Nacional de Colombia
United States Marshals Service
Department of Justice, Organized Crime Drug Enforcement Task Forces
Department of Justice, Office of Enforcement Operations
Department of Justice, Office of International Affairs
Superseding Indictment Adds Defendants to $25 Million, Prison-Based Unemployment Insurance Fraud SchemeRead the Press Release
FRESNO, Calif. — A total of eight defendants have been charged in a superseding indictment for submitting over $25 million in fraudulent unemployment insurance claims in the identities of inmates, minor children, and others to the California Employment Development Department (EDD) during the COVID-19 pandemic. The indictment was announced today by U.S. Attorney Phillip A. Talbert following the arrest of all the defendants.
The original indictment charged Daryol Richmond, 30, an inmate at Kern Valley State Prison; Telvin Breaux, 29, an inmate at the California Correctional Institution in Tehachapi; and Holly White, 30, of Los Angeles, with conspiracy to commit mail fraud and aggravated identity theft. The superseding indictment adds Cecelia Allen, 33, of Downey; Fantasia Brown, 33, of Los Angeles; Tonisha Brown, 28, of Los Angeles; Fantesia Davis, 32, of Victorville; and Shanice White, 28, of Hawthorne. They are also charged with conspiracy to commit mail fraud and aggravated identity theft. Richmond and Breaux are inmates at the Kern Valley State Prison and California Correctional Institute, respectively. The remaining defendants reside in the Southern California area.
According to court documents, the underlying applications for the claims falsely stated that the inmates, minor children, and others previously worked as clothing merchants, handymen, and other jobs, and recently became unemployed because of the COVID-19 pandemic. The defendants created fictitious email accounts and used different physical addresses throughout Southern California for the fraudulent claims. After the defendants received the debit cards for the claims in the mail, they made cash withdrawals at different locations, on different days and times, and in varying amounts all to avoid detection by government authorities.
The actual loss to the EDD and United States is over $5 million. The defendants spent the money on vehicles, furniture, handbags, jewelry, and other items and services.
This case is the product of an investigation by the FBI, EDD, the U.S. Department of Labor Office of Inspector General, and the California Department of Corrections and Rehabilitation (CDCR). Assistant U.S. Attorney Joseph Barton is prosecuting the case.
If the defendants are convicted of the conspiracy to commit mail fraud, they each face a maximum statutory penalty of 20 years in prison and a fine of up to $250,000. If convicted of the aggravated identity theft, they each face a mandatory two-year consecutive sentence. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations and the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Suffolk Man Sentenced for Real Estate Investment SchemeRead the Press Release
NORFOLK, Va. – A Suffolk man was sentenced today to 41 months in prison for a wire fraud scheme in which he defrauded real estate investors out of approximately $378,000.
According to court documents, Kordrick Gibbons, 52, had a reputation with his co-workers and friends as being a savvy investor who was financially successful. From approximately 2015 through in or about 2018, Gibbons utilized this reputation to convince his co-workers to “invest” in his real estate holdings and, in exchange, Gibbons promised them lavish returns on their investments. Gibbons claimed to invest in properties, including businesses and condominiums, and that investors could realize 50% to 100% returns on their investments in as little as four to six months. Gibbons falsified documents to convince his investors that he had ownership interests in these properties. On multiple occasions, Gibbons emailed the victims documents that were inaccurate or false to deceive them into thinking he was wealthy and had multiple income-generating properties, when, in fact, he did not. The victims stated that Gibbons would make excuses as to why they had not yet received their money, all while promising that they would be paid. For instance, Gibbons often falsely suggested a bank had frozen his account in error or falsely asserted he was battling cancer.
In total, Gibbons defrauded at least 13 known victims and caused his investors to lose approximately $378,000.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-78.
State College Man Indicted for Possession of Firearms and Ammunition by A Convicted FelonRead the Press Release
WILLIAMSPORT- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ronald Hertzog, age 59, of State College, Pennsylvania, was indicted on February 10, 2022, by a federal grand jury for possession of firearms and ammunition by a convicted felon.
According to United States Attorney John C. Gurganus, the indictment alleges that on or about February 3, 2022, in Centre County, Hertzog possessed multiple rounds of ammunition in various calibers and two rifle receiver lowers as a previously convicted felon.
The case was investigated by Homeland Security Investigations and the State College Police Department. Assistant U.S. Attorney George J. Rocktashel is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.”
If convicted, the maximum penalty under federal law for this offense is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
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St. Louis Woman Pleads Guilty to Theft from Metro East Charity, Identity TheftRead the Press Release
East St. Louis, Ill – Kenesha Burlison, 40, of St. Louis, Missouri, pled guilty on Thursday,
February 10, 2022, to a two-count felony information charging her with theft from an organization
receiving federal funds and aggravated identity theft.
Burlison served as the Director of Human Relations for Call for Help, Inc., beginning in 2016. Call
for Help is a longstanding charitable organization in East St. Louis, Illinois, that helps people
overcome a variety of personal crises, ranging from sexual assault and poverty to homelessness and
mental health issues. The organization receives federal funds annually to assist in carrying out
its mission.“Federal charges, carrying a mandatory minimum prison sentence, were appropriate here because the
Defendant stole so much money that would have provided needed services to vulnerable
victims, including sexual assault survivors and the homeless,” said U.S. Attorney Steven D.
Weinhoeft.“An organization dedicated to assisting victims of trauma and families in crisis holds high
expectations for honesty and integrity from its director,” said FBI Special Agent in Charge David
Nanz. “Kenesha Burlison demonstrated bold disregard for her co-workers and the people who depend
on Call for Help to survive. The FBI is dedicated to investigating those, like Burlison,
who choose to deceive and defraud others while stealing taxpayer dollars.”According to court documents, Burlison fraudulently obtained a cashier’s check from Call for Help
in the amount of $69,788.62, which she used to pay the down payment for a home she was purchasing.
Burlison told Call for Help that she needed a cashier’s check to provide to the title company and
claimed that she couldn’t get one from her bank because it was closed. In exchange for the
cashier’s check, Burlison provided Call for Help with a personal check in the amount of $70,000.
That check, as well as two others provided by Burlison in the coming months, bounced for
insufficient funds.Following her termination from the organization, Call for Help discovered that Burlison
had also fraudulently submitted requests for reimbursements that she was not entitled to from the
organization that exceeded $100,000. These reimbursements were paid to Burlison.In addition to the charge relating to her theft from Call for Help, Burlison also pled guilty to
aggravated identity theft. Court documents alleged that, in connection with her mortgage
application, Burlison submitted a fraudulent income verification with a forged signature of the
Director of Quality Assurance
at Call for Help.Theft from an organization receiving federal funds carries a maximum sentence of 10 years in prison
and a fine of up to $250,000. Burlison faces a mandatory sentence of two years’ imprisonment for
aggravated identity theft, which must run consecutive to any sentence imposed on the fraud count.
In addition, Burlison could also be ordered to pay restitution to her victims.Burlison is scheduled to be sentenced on May 26, 2022. A federal district court judge will
determine any sentence after considering the U.S. Sentencing Guidelines and other statutory
factors.The investigation was conducted by the Federal Bureau of Investigation - Springfield Division.
Assistant United States Attorney Zoe J. Gross is prosecuting the case.South Florida Man Sentenced to 7 Years in Federal Prison for Multi-Million Dollar Investment Scam Targeting the Elderly, and Spending Investor Money on Gambling, Jewelry, and Luxury VehiclesRead the Press Release
Miami, Florida – Yesterday, a federal district judge in Fort Lauderdale sentenced Isaac Grossman, 47, of Parkland, Florida, to 87 months in federal prison for directing an elder fraud scheme in which he sold stock in his South Florida-based technology company to elderly investors across the country, and then misappropriated the investors’ funds for his own personal use.
From September 2014 through April 2018, Grossman raised approximately $2.4 million in investor funds for his company, Dragon-Click Corp., by soliciting investments from elderly retirees nationwide. Grossman told potential investors that Dragon-Click was developing an internet application that would revolutionize internet shopping by allowing a user to upload a photograph of any item the user wanted to purchase, identify all retailers offering that item for sale, provide price comparisons for that item across retailers, and provide a link to retailers’ websites where the user could purchase the item. Grossman solicited funds by falsely telling potential investors they would double, triple, or quadruple their investments, and that Dragon-Click was on the verge of being sold to a large technology company, such as Google, Apple, or Amazon, for over $1 billion. He concealed from investors that, prior to raising funds for Dragon-Click, he had been permanently barred by the Financial Industry Regulatory Authority (“FINRA”) from acting as a broker-dealer or associating with any broker-dealer firm, and that he had been permanently banned from commodities trading by the U.S. Commodity Futures Trading Commission (“CFTC”).
Grossman falsely told investors that their investment money would be used to complete the technological development of the Dragon-Click internet application, to pay legal fees related to the patent application process, and to close the sale of the application to a large technology company. But rather than using investors’ money for any legitimate business purpose, Grossman misappropriated investors’ funds for his own personal use. Specifically, Grossman spent $1.3 million of investors’ money on gambling, diamond jewelry, luxury cars, home mortgage payments, tuition payments for his children’s private school education, and other personal expenditures. For example, Grossman’s unlawful expenditures included a McLaren MP4-12C, a Chevrolet Corvette, and a 4.81 carat diamond ring.
Grossman previously pled guilty to wire fraud, mail fraud, and money laundering charges. The sentence was imposed by U.S. District Judge Raag Singhal.
Juan Antonio Gonzalez, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
United States Attorney Gonzalez commended the investigative efforts of the FBI’s Miami Field Office and also thanked the SEC’s Miami Regional Office for their assistance, as they had filed a parallel civil enforcement action against Grossman. See SEC v. Isaac Grossman, et al., Case No. 18-61234-CV-BB (S.D. Fla.).
This case was prosecuted by Assistant U.S. Attorney Michael B. Homer. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
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 19-cr-60300.
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