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Newest first across public DOJ and U.S. Attorney press releases.
Thursday 30 December 2021
Anchorage Man Sentenced to over 23 Years in Prison for Sex Trafficking and Drug OffensesRead the Press Release
ANCHORAGE – An Anchorage man was sentenced by U.S. District Judge Joshua M. Kindred to 285 months in federal prison followed by 20 years of supervised release for sex trafficking and drug offenses.
Davon Smith, 29, was found guilty by a federal jury in August this year on three counts of sex trafficking and one count of drug distribution. The trial lasted six days and the jury reached its verdicts after one day of deliberation.
According to court documents, Smith, was charged with one count of sex trafficking a minor, one count of benefitting from a sex trafficking enterprise, one count of sex trafficking an adult by force, fraud or coercion and one count of possession with intent to distribute heroin. According to evidence presented at trial, he trafficked an adult and a runaway juvenile victim in early 2019. Smith had a previous felony drug conviction and was on federal supervised release at the time he committed the offenses. His total sentence represented 22 years for substantive offenses plus 21 months for committing those offenses while on supervised release.
“It is impossible to overstate the trauma done by trafficking minors and other vulnerable persons,” said U.S. Attorney John E. Kuhn, Jr. “And trafficking deadly opioids unleashes other terrible harms. By working so hard to see that justice was done in this case, the FBI, Anchorage Police Department, and the prosecutors of the U.S. Attorney’s Office have made Alaska safer.”
“Through manipulation and abuse, the defendant coerced adults and minors to perform commercial sex acts for his own financial gain,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “With a victim-centered approach, the FBI and our partners on the Child Exploitation and Human Trafficking Task Force, will continue investigating and holding accountable those who commit such reprehensible crimes.”
The Federal Bureau of Investigation (FBI) Child Exploitation and Human Trafficking Task Force and the Anchorage Police Department investigated the case. The task force marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children through sex trafficking, as well as to identify and recover victims.
Assistant U.S. Attorneys Jennifer Ivers and Adam Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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$2.2+ Million in DOJ Grants Awarded in the Middle District of GeorgiaRead the Press Release
MACON, Ga. – The Department of Justice’s Office of Justice Programs (OJP) has awarded grants totaling $2,265,281 to support local programs addressing a range of community safety and criminal justice issues across the Middle District of Georgia.
“These grants are substantial investments toward both necessary and innovative solutions for a wide-ranging set of criminal justice issues effecting communities across the Middle District of Georgia,” said U.S. Attorney Peter D. Leary. “As the new year dawns, our office reaffirms our total commitment to our region’s shared goal of reducing violence and ensuring fair and equal justice in each community we serve.”
The following jurisdictions and agencies applied for and received grants through OJP’s Bureau of Justice Assistance (BJA) for FY 2021, awarded in Dec. 2021:
1. The Beekeeper Reentry Program – An Innovative Approach to Reducing Recidivism
$900,000 BJA FY 2021 Second Chance Act Grant awarded to the Family Wellness Outreach Center of Georgia, Inc. in Albany, Georgia, with a goal to reduce recidivism rates by at least 25% for 102 reentering adults at highest risk for reoffending in 14 Southwest Georgia counties. Georgia's recidivism rate among individuals released from prison is around 30%.
2. Implementing Standards, Protecting Inmates – Stronger, Better Locks
$250,000 BJA FY 2021 Implementing the PREA (Prison Rape Elimination Act) Standards, Protecting Inmates, and Safeguarding Communities Grant awarded to the Muscogee County, Georgia, Sheriff's Office to replace cell locks in the jail to both keep the facility in compliance and greatly enhance the safety and security of both inmates, staff and visitors.
3. Fort Valley Police Community Policing Initiative – Combat Rising Violent Crime Issues
$150,000 BJA FY 2021 Rural Violent Crime Reduction Initiative for Law Enforcement Agencies Grant awarded to the City of Fort Valley, Georgia, Police Department to create a stronger relationship between community and police, offer individual officer training and increase focused patrols in high crime areas while partnering with community members and apartment management in those areas.
4. South Georgia Circuit Rural Crime Reduction Initiative Project
$141,687 BJA FY 2021 Rural Violent Crime Reduction Initiative for Law Enforcement Agencies Grant awarded to the Decatur County, Georgia, Board of Commissioners for purposes focused on reducing violent crime in rural areas served by the South Georgia Judicial Circuit.
The following non-profit organization applied for and received a grant through OJP’s Office of Juvenile Justice Delinquency Prevention (OJJDP) for FY 2021, awarded in Oct. 2021:
5. Mentoring for Youth Affected by the Opioid Crisis and Drug Addiction
$622,903 Office of Juvenile Justice Delinquency Prevention (OJJDP) FY 2021 Grant awarded to Beginning New Outreach, Inc. in Columbus, Georgia to provide ongoing mentoring for youth who are currently abusing or addicted to drugs, youth at risk for abusing and youth with family members who are currently abusing or addicted to drugs.
The following jurisdictions applied for and received OJP’s Bureau of Justice Assistance (BJA) Edward Byrne Memorial Justice Assistance Grant (JAG) for FY 2021, awarded in Oct. 2021:
6. Funding Assistance for Local Law Enforcement, Columbus Consolidated Government
$104,731 BJA FY 2021 Edward Byrne Memorial Justice Assistance Grant (JAG) to support criminal justice initiatives to include law enforcement, drug and gang task forces, enhancing public and officer safety, courts, corrections, education, treatment, technology improvement, crime victim support, mental health and other programs aimed at reducing crime and improving safety.
7. Less than Lethal Program, City of Americus, Georgia
$12,155 BJA FY 21 Edward Byrne Memorial Justice Assistance Grant (JAG) to support criminal justice initiatives to include law enforcement, drug and gang task forces, enhancing public and officer safety, courts, corrections, education, treatment, technology improvement, crime victim support, mental health and other programs aimed at reducing crime and improving safety.
8. Law Enforcement Operational Enhancement Project, City of Albany
$83,805 BJA FY 21 Edward Byrne Memorial Justice Assistance Grant (JAG) to support criminal justice initiatives to include law enforcement, drug and gang task forces, enhancing public and officer safety, courts, corrections, education, treatment, technology improvement, crime victim support, mental health and other programs aimed at reducing crime and improving safety.
Once the awards are made, information about the grantees selected under each solicitation can be found online at the OJP Grant Awards Page.
OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Wednesday 29 December 2021
Zuni man pleads guilty to murder in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Brodie Coonsis, 28, of Zuni, New Mexico, and an enrolled member of the Pueblo of Zuni, pleaded guilty on Dec. 27 in federal court to second-degree murder in Indian Country.
According to the plea agreement and other court documents, Coonsis shot and killed John Doe on Feb. 26 at John Doe’s residence in Zuni. Coonsis, who had been using drugs and was upset with John Doe, travelled to the victim’s house on the Pueblo of Zuni. After John Doe opened the door, Coonsis fired his shotgun four times as he followed the victim up the stairs, eventually killing him.
Coonsis is currently in custody pending his sentencing, which has not been scheduled. He faces up to life in prison.
The Gallup Resident Agency of the FBI investigated this case with assistance from the Zuni Police Department. Assistant U.S. Attorney Nicholas Marshall is prosecuting the case.
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U.S. Attorney’s Office Collects over $36 Million in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
RALEIGH, N.C. – U.S. Attorney Michael Easley announced today that the Eastern District of North Carolina collected $36,556,528.37 in criminal and civil actions in Fiscal Year 2021. Of this amount, $26,265,414.19 was collected in criminal actions and $10,291,114.18 was collected in civil actions.
Additionally, the Eastern District worked with other U.S. Attorneys Offices and components of the Department of Justice to collect an additional $1,240,138.15 in cases pursued jointly by these offices. Of this amount, $38,938.15 was collected in criminal actions and $1,201,200.00 was collected in civil actions.
In the past fiscal year, the Eastern District of North Carolina has recovered millions of dollars for crime victims. For example, in United States v. Treyton Lee Thomas, over $7.2 million was recovered for victims of the defendant’s criminal conduct. In United States v. Adam Frankel, a case involving the manufacturing of child pornography, over $200,000 was recovered from the defendant.
“We use every legal remedy available to collect victim restitution and criminal fines, and to recover taxpayer dollars lost to waste, fraud, and abuse,” said Mr. Easley. “Today’s announcement is a testament of the dedication and professionalism of our attorneys and staff in furtherance of that important mission, especially those in our Asset Recovery Unit.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Eastern District working with partner agencies and divisions, collected $24,506,586.00 in asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. “The forfeiture of assets that facilitate crimes, or which are the fruits of crime, serves an important law enforcement interest, including depriving criminals of the means and reasons for their criminal activity,” Mr. Easley stated. “The proper use of asset forfeiture can aid in financially disrupting and dismantling criminal organizations and restoring funds to victims of crime. Our office will continue to do that important work.”
U.S. Attorney’s Office Collects More Than $14 Million in Criminal and Civil Actions in Fiscal Year 2021Read the Press Release
U.S. Attorney Bridget M. Brennan announced today that the U.S. Attorney’s Office for the Northern District of Ohio collected $14,351,785.37 in criminal and civil actions in fiscal year 2021. Of this amount, $10,314,484.90 was collected in criminal actions and $4,037,300.47 was collected in civil actions.
“Despite the challenges brought about by the pandemic, the Financial Litigation Program in the Northern District was able to pursue and recover considerable funds from numerous civil and criminal judgments,” said First Assistant U.S. Attorney Michelle M. Baeppler. “When this Office represents the United States of America and secures a collection judgment, we will seek to recover every dollar possible.”
Furthermore, the U.S. Attorney’s Office for the Northern District of Ohio, working with other U.S. Attorney’s Offices and Department of Justice agencies across the country, collected an additional $27,194,349.03 in cases pursued jointly by these offices.
In total, the Northern District of Ohio and partner agencies collected a combined total of $41,546,134.40 in criminal and civil actions and forfeitures in fiscal year 2021.
Notable collections and forfeitures in fiscal year 2021 include:
CRIMINAL
USA v. Stellato: Defendant Chad M. Stellato pleaded guilty in December of 2020 to defrauding Lowe’s Home Improvement stores via a fraudulent purchase and return scheme. Stellato was ordered to pay restitution in the amount of $594,799.12, and final payment was collected within six months of sentencing.
USA v. Chime, et al.: Defendants John D. Chime, II, Jerry L. Stackhouse and Rogelio Alonso, Jr. were convicted of orchestrating a real estate investment scheme in 2012 and were ordered to pay $677,493.68 in restitution. Final restitution was collected in December of 2021.
USA v. Sturgill: Defendant James Sturgill pleaded guilty in December of 2000 to bank fraud and was ordered to pay $224,116.04 in restitution. Final restitution was collected in March of 2021.
CIVIL
U.S. ex rel. Ethical Solutions, LLC, et al. V. Akron General Health System, et al.: In July of 2021, Akron General Health System agreed to pay over $21 million to resolve allegations under the False Claims Act that it had improper relationships with certain referring physicians, resulting in the submission of false claims to the Medicare program.
USA v. Shaffer Pharmacy, et al.: In June of 2021, Shaffer Pharmacy, located in Toledo, Ohio, agreed to pay $375,000 to resolve a civil suit filed under the Controlled Substances Act alleging that the pharmacy and two individuals filled prescriptions that did not have a legitimate medical purpose.
Tronair, Inc.: In September of 2021, Tronair, Inc., located in Swanton, Ohio, agreed to pay $92,400 to resolve a False Claims Act investigation that it sold several federal agencies aircraft tow tractors with remanufactured transaxles, in violation of its contracts with the affected agencies.
The U.S. Attorneys’ Offices and the department’s litigating divisions are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss.
While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office Announces More Than $1.1 Million to Support Substance Abuse Programs in Western OhioRead the Press Release
The U.S. Attorney's Office for the Northern District of Ohio announced today that the Department of Justice Office of Justice Programs (O.J.P.) awarded $1,199,650 in grant funding to support programs that provide services to address opioid, stimulant and substance abuse issues in Western Ohio.
The Hancock County A.D.A.M.H.S. Board was awarded $600,000 to support the Recovery Community Organization Outreach Project. This initiative provides recovery support services, peer recovery support services and access to transitional or recovery housing for individuals 18 years and older who have a history of opioid, stimulant or other substance use disorders and are either at risk or involved in the criminal justice system in Hancock County.
The City of Maumee was awarded $599,650 to implement a law-enforcement-led response to address the city's substance abuse issues. The City of Maumee plans to use the funding to embed social services into law enforcement operations for children impacted by family drug use, begin an evidence-based school drug prevention initiative - the L.E.A.D. program and expand the City's drug take-back capabilities.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation's capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about O.J.P. and its components can be found at www.ojp.gov.
Two Defendants Plead Guilty to Illegally Straw Purchasing Multiple FirearmsRead the Press Release
MINNEAPOLIS – Two defendants have pleaded guilty to making false statements in connection with the illegal purchase of multiple firearms, announced Acting U.S. Attorney Charles J. Kovats.
According to their guilty pleas, between May 2020 and May 2021, Sarah Jean Elwood, 34, and Jeffrey Paul Jackson, 31, conspired together and with others to buy dozens of firearms from various Federal Firearms Licensees (FFL) in the State of Minnesota. As part of the straw-purchasing scheme, Elwood and others would go to various FFLs, and she would purchase the firearms on behalf of others who requested the firearms in advance of the purchases. In making the purchases, Elwood knowingly misrepresented to the dealers that she was the actual purchaser of the firearms, when in fact she and her co-defendants knew she was not. Jackson helped arrange the deals with his co-defendants and others, which included a $100 premium for each straw-purchased gun, and obtained cash or other items of value upfront for the firearms. In total, the defendants straw purchased approximately 97 firearms, including approximately 62 firearms in May 2021 alone. To date, approximately 17 firearms have been recovered by local law enforcement at various crime scenes and/or in the possession of persons legally prohibited from possessing firearms.
During recent court hearings, Elwood and Jackson each admitted to their roles in the conspiracy and pleaded guilty before United States District Court Judge Ann D. Montgomery to one count each of aiding and abetting false statements in connection with the purchase of firearms. Co-conspirator Geryiell Lamont Walker, 22, has pleaded not guilty to charges of conspiracy and making false statements in connection with the purchase of firearms.
Straw purchasing typically involves a buyer who can lawfully purchase firearms from an FFL but who then provides them to another person who is legally prohibited from purchasing or possessing firearms, therefore allowing the prohibited person to illegally obtain firearms and avoid the national background check system.
This case was made possible by investigative leads generated from the ATF’s National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
This case is the result of an investigation conducted by the ATF and the Blaine Police Department.
Assistant U.S. Attorney Benjamin Bejar is prosecuting the case.
Tulsa Man Pleads Guilty to Shooting Outside a Tulsa NightclubRead the Press Release
A 21-year-old Tulsa man who committed a shooting outside of a Tulsa nightclub in August pleaded guilty Wednesday in federal court, announced U.S. Attorney Clint Johnson.
Jaden Perez pleaded guilty to carrying, using, brandishing, and discharging a firearm during and in relation to a crime of violence. Perez admitted to firing a handgun at a security guard and injuring him on Aug. 21, 2021, at a nightclub in southeast Tulsa. He faces ten years in federal prison at his sentencing, which is scheduled for April 27, 2022.
“Jaden Perez has been held accountable for his blatant criminal disregard for the safety of nightclub patrons and employees when he shot a security guard outside the nightclub. I am thankful that no one was killed in the incident,” said U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office and our partners at the Tulsa Police Department and ATF will continue to hold accountable those responsible for gun violence in our community.”
In his plea agreement, Perez admitted that he got into a fight with a security guard as the nightclub was closing. After the fight ended, he returned to his friend’s car to retrieve two firearms, a Kimber .45 caliber pistol and a Taurus 9mm caliber pistol. Perez then ran across the parking lot firing multiple times at security guards and other bystanders, ultimately hitting one security guard who returned fire and struck Perez multiple times.
During the shooting, the security guard felt a pain in his chest when he was struck. Upon examination, he suffered bruising and redness to the left side of his chest.
Perez fled the scene immediately afterwards. Tulsa police officers responding to the shooting conducted a traffic stop on a vehicle driven by Perez’s friend shortly after the incident and found Perez in the back seat suffering from gunshot wounds. Perez was transported by ambulance to St. Francis Hospital for treatment.
Perez is a citizen of the Muscogee Nation, and the crime occurred on the Muscogee Nation Reservation.
The Tulsa Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney George Jiang is prosecuting the case.
Syracuse Man Admits Possessing Firearms and Ammunition as a FelonRead the Press Release
SYRACUSE, NEW YORK – Kamar L. Boatman, age 36, of Syracuse, pled guilty today to possessing firearms and ammunition as a felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Chief Kenton Buckner, Syracuse Police Department.
As part of his guilty plea today, Boatman admitted that he possessed at his residence in Syracuse the following firearms and ammunition recovered by the Syracuse Police Department-Special Investigations Division (SPD-SID) during the execution of a search warrant on May 31, 2018:
Firearms
One (1) Ruger pistol, model P89DC, caliber 9mm
One (1) Hi Point rifle, model 4595, .45 ACP caliber rifle,
One (1) Smith and Wesson rifle, model M&P15 .556 caliber rifle,
One (1) Defense Procurement Manufacturing Services model A15, Multi Caliber rifle
Ammunition
Twenty-six (26) rounds of .223 caliber ammunition
Six (6) rounds of 9mm caliber ammunition
Eight (8) rounds of .45 caliber ammunition
Boatman also admitted that he was previously convicted of possession with intent to distribute cocaine (a felony) in United States District Court for the Northern District of New York, and was sentenced on May 7, 2010 to serve 48 months in federal prison.
Sentencing in the current case is scheduled for February 28, 2022, at which time the defendant faces a sentence of 60 months in federal prison, followed by a three-year term of supervised release. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case is being investigated by the Syracuse Police Department-Special Investigations Division (SPD-SID) and the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and is being prosecuted by Assistant U.S. Attorney Richard Southwick.
Statement of U.S. Attorney Damian Williams on the Verdict in U.S. V. Ghislaine MaxwellRead the Press Release
“A unanimous jury has found Ghislaine Maxwell guilty of one of the worst crimes imaginable – facilitating and participating in the sexual abuse of children. Crimes that she committed with her long-time partner and co-conspirator, Jeffrey Epstein. The road to justice has been far too long. But, today, justice has been done. I want to commend the bravery of the girls – now grown women – who stepped out of the shadows and into the courtroom. Their courage and willingness to face their abuser made this case, and today’s result, possible. I also want to thank the career prosecutors of the Southern District of New York, who embraced the victims’ quest for justice and have worked tirelessly, day in and day out, to ensure that Maxwell was held accountable for her crimes. This Office will always stand with victims, will always follow the facts wherever they lead, and will always fight to ensure that no one, no matter how powerful and well connected, is above the law.”
St. Paul Man Sentenced to 100 Months in Prison for Arson and Riot During August 2020 Riots in Downtown MinneapolisRead the Press Release
MINNEAPOLIS – A St. Paul man was sentenced to 100 months in prison followed by two years of supervised release for burning, looting, and damaging stores and businesses in downtown Minneapolis on August 26, 2020. Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
According to the evidence presented at trial, on the evening of August 26, 2020, Victor Devon Edwards, 32, drove to downtown Minneapolis following a city-wide curfew to join a large crowd that had gathered following false rumors regarding police involvement in the death of a man on Nicollet Mall earlier that evening. Over the course of approximately three hours, Edwards engaged in acts of riot, arson, and other property damage and destruction in downtown Minneapolis. Edwards was captured on video surveillance participating in the rioting and looting at Saks Off Fifth and entering other closed stores and businesses that evening, including Caribou Coffee, Target Headquarters, and Brit’s Pub on Nicollet Mall. Edwards was captured on video surveillance helping to break into the Target Headquarters building and adding fuel to a fire set inside the building, which ultimately caused almost a million dollars in damages to Target. Edwards was then captured on video surveillance entering the nearby Brit’s Pub, which, shortly after he went in, became engulfed in flames.
During and after his criminal activity downtown that evening, Edwards bragged about his participation in the rioting and looting. Edwards also took orders from friends for items to loot. The next morning, Edwards took a video of himself flashing a large amount of cash and saying, “On the looting side. . .” He also admitted that he got “MK purses and money” in text messages with his friends.
On August 12, 2021, Edwards was convicted by a federal jury of one count of riot and one count of arson.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the FBI, the Hennepin County Sheriff’s Office, the Minneapolis Fire Department, and the Minneapolis, Bloomington, and Richfield Police Departments.
This case was prosecuted by Assistant U.S. Attorneys Nathan H. Nelson and Chelsea A. Walcker.
South Florida Man Charged with Covid-19 Relief Fraud, Buying Lamborghini, Rolex, and Louis Vuitton with Loan MoneyRead the Press Release
Miami, Florida — A Florida man charged with fraudulently obtaining COVID-19 relief loans under the Paycheck Protection Program (PPP) made his first appearance today in federal magistrate court in Ft. Lauderdale.
According to the allegations in the indictment, Valesky Barosy, 27, of Ft. Lauderdale, submitted fraudulent loan applications on behalf of himself and his accomplices, seeking more than $4.2 million in PPP loans. In each loan application, Barosy falsified the applicant’s prior-year expenses, net profit, and payroll, and submitted fraudulent IRS tax forms, says the indictment.
According to the charges, Barosy and his accomplices received approximately $2.1 million in PPP loans from the fraudulent scheme. Barosy used the fraudulently-obtained proceeds to purchase a Lamborghini Huracán EVO, Rolex and Hublot watches, and designer clothing from Louis Vuitton, Gucci, and Chanel, it is alleged.
The indictment charges Barosy with five counts of wire fraud, three counts of money laundering, and one count of aggravated identity theft. If convicted, Barosy faces up to 132 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), Miami Field Office, made the announcement.
USSS Miami investigated the case. Assistant U.S. Attorney Jonathan Bailyn is prosecuting the case. Assistant United States Attorney Nicole Grosnoff is handling asset forfeiture.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
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.
An indictment is a mere allegation. A defendant is presumed innocent until found guilty beyond a reasonable doubt in a court of law.
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 no. 21-cr-60345.
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Justice Department Awards over $5.1 Million in Grants to State of LouisianaRead the Press Release
U.S. Attorney Ronald C. Gathe, Jr. announced that the Department of Justice’s Bureau of Justice Assistance has awarded $5,186,242 collectively to the Louisiana Commission on Law Enforcement, the Louisiana District Attorney’s Association, the Judiciary Courts of the State of Louisiana, the Louisiana Department of Justice, and the Louisiana Department Public Safety and Corrections.
Grantees will use funds to:
- provide digital evidence training supplemented with equipment to substantially upgrade the skills of Louisiana prosecutors, whose limited resources compound challenges with digital evidence;
- support adult reentry education, employment, treatment and recovery programs;
- improve the quality and timeliness of forensic science and medical examiner services, eliminating or reducing the backlog of analysis of forensic science evidence, and training;
- provide training and technical assistance to affiliate agencies and supporting Louisiana Department of Justice investigator positions to conduct proactive and reactive investigations of technology-facilitated crimes against children; and
- invest in a local technical and training assistance pilot to promote sustainable evidence-based practices and a broad strategy to align probation and parole specialized caseloads with treatment courts, beginning with mental health and veteran treatment courts.
Hampton Man Pleads Guilty to Defrauding Elderly Victims and Tax EvasionRead the Press Release
NEWPORT NEWS, Va. – A Hampton man pleaded guilty yesterday to defrauding victims in the Hampton Roads area out of more than $630,000 and evading the assessment of more than $50,000 in income taxes.
According to court documents, between 2013 and 2019, Clarence M. Rice Jr., 54, falsely represented to victims that he was going to receive a sizeable inheritance from his father’s death, under the condition that Rice paid off all his existing debts. He tricked victims into giving him large sums of money using the false representations that he needed the funds to obtain his inheritance.
As a result of his fraud scheme, Rice stole more than $350,000 from a 75-year-old retired bricklayer and more than $140,000 from an elderly blind man. In total, Rice obtained at least $632,017.44 in fraudulent proceeds from the scheme. As part of the plea, Rice agreed that all his victims were of limited financial means and suffered substantial hardship from his fraud.
Despite earning income from his fraud scheme, Rice has not filed taxes since 2011. Between 2015 and 2019, he defrauded the IRS by living a cash lifestyle, negotiating checks from victims for U.S. currency instead of depositing them in bank accounts, hiding assets on prepaid cards, and lying to law enforcement about his income and assets. The approximate tax due and owing resulting from Rice’s failure to pay his personal income tax is $52,064.18.
Rice pleaded guilty to wire fraud and evasion of income tax assessment and is scheduled to be sentenced on May 25, 2022. He faces a maximum of 20 years in prison for the fraud offense and a maximum of five years in prison for the tax evasion. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea.
Assistant U.S. Attorney D. Mack Coleman and Managing Assistant U.S. Attorney Brian J. Samuels are prosecuting the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
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. 4:21-cr-60.
Federal Court Permanently Shuts Down Two Miami-Area Tax Return PreparersRead the Press Release
A federal court in the Southern District of Florida has permanently enjoined two Miami-area tax return preparers from preparing federal income tax returns for others.
The injunctions against Gerald Vito, James Eleby and Gerald Vito LLC dba Income Tax Services, were entered by default. The complaint filed against the defendants alleged that they prepared tax returns that significantly understated their customers’ tax liabilities by claiming deductions for fabricated or inflated charitable deductions, medical expenses and employee business expenses. The complaint further alleged that the defendants significantly understated their customers’ tax liabilities by reporting false or inflated business losses. In addition, the complaint alleged, the defendants often deducted hundreds of dollars in fees from their customers’ refunds, in many cases without disclosing the fee that they charged. According to the complaint, based on IRS estimates from audits of some of the defendants’ customers, the defendants’ fraudulent activities likely cost the United States millions of dollars in lost tax revenue.
Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
DOJ awards more than $8.5 million to Western Washington Tribes for justice and tribal youth development programsRead the Press Release
Seattle – The U.S. Department of Justice has awarded more than $8.5 million to Western Washington Indian Tribes for improvements to their criminal justice systems and youth development programs, announced U.S. Attorney Nick Brown. The awards, to eight different tribes, are targeted for specific needs identified by each tribal community.
“It is an impressive list of projects and goals that each of these tribes outlined in their grant applications,” said U.S. Attorney Brown. “From developing programs to connect tribal youth with their culture and heritage, to upgrading facilities for tribal courts and treatment facilities, these projects strengthen our communities.”
Four tribes are receiving grants to enhance services to teens:
Quinault Indian Nation - $600,000 for a juvenile healing and wellness court program.
Squaxin Island Tribe - $508,242 for a teen development and mentoring program.
Puyallup Tribe - $508,254 for tribal youth development and justice programs.
Confederated Tribes of the Chehalis Reservation - $508,245 for tribal youth programs.
Three tribes are receiving grants to improve the physical spaces involved in tribal justice and wellness programs:
Tulalip Tribes – grants totaling $1,339,961 to expand and improve the Healing Lodge for drug treatment and expand and assess services under the Path to Wellness program.
Skokomish Tribe – $1,200,000 to assist with construction of a public safety building that provides police and court services.
Nooksack Tribe -$1,186,249 to assist with renovations to the Tribal Justice Center.
Finally, three tribes received grants to enhance their court systems and criminal justice related programs:
Port Gamble S’Klallam Tribe - $900,000 to enhance reentry services for previously incarcerated tribal members.
Nooksack Tribe -$891,544 to hire a tribal prosecutor, bailiff, and staff to provide court services.
Quinault Indian Nation -$900,000 to expand the adult wellness court and develop a family wellness court.
In its grant application for the wellness courts the Quinault Indian Nation noted that it “has been working to build a stronger restorative justice model. Part of this model serves to help nonviolent offenders and their families work through substance abuse issues through a variety of social services such as Chemical Dependency, behavioral health, and family services…. Establishing these courts will promote the restorative justice model and be better suited to reduced recidivism, lesson the burden on community policing, reduce jail capacity, and build stronger communities.”
Copies of the grant awards are available on request to [email protected]
Additional information about these and other FY 2021 grant awards made by OJP can be found online at the OJP Grant Awards Page.
Convicted Felon Who Shot at a Group of Teenagers and Hit a Parked Car Sentenced to a Decade in Federal PrisonRead the Press Release
A convicted felon who unlawfully possessed a gun he fired at a group of teenagers and who had another individual buy two guns for him less than a week later was sentenced today to ten years in federal prison.
Dmontrey Rayshawn Redmond, age 24, from Cedar Rapids, Iowa, received the prison term after a July 7, 2021 guilty plea to one count of being a felon in possession of a firearm.
Information from the sentencing hearing showed that, on November 29, 2020, Redmond exited a house into an alley in Cedar Rapids. A group of five teenagers was walking in the alley. They began to run as Redmond exited the house. Redmond pointed a handgun towards the group and fired in their direction. None of the teenagers were hit, but a nearby parked car was struck. Redmond went back into the house while tucking the gun into his pants.
Law enforcement responded to the scene of the shooting. During the investigation of the shooting, officers searched Redmond’s home and found a loaded Glock handgun. Officers also found nine spent shell casings in the alley that matched the rounds found in the Glock handgun. The spent shell casings were compared to the Glock handgun using the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). The NIBIN comparison showed that the nine rounds were shot from the Glock handgun.
On December 4, 2020, Redmond went to a gun store in Waterloo, Iowa, with another individual named Jamie Marie Graham. Redmond instructed Graham to choose two Glock handguns and a box of .40 caliber ammunition. She did so and began working with a store employee to fill out the paperwork necessary to purchase the guns. Graham lied on the forms, indicating she was the purchaser of the guns. Redmond paid for the guns using a cash card that was in his name. After leaving the store, Redmond took the guns and ammunition.
On December 23, 2020, one of the two Glock handguns that Redmond had obtained on December 4 was located in a house in Cedar Rapids. A friend of Redmond’s was living in the house with another adult and a four-year old child. The Glock handgun was left unsecured in the house. The child got the gun and accidently discharged it. The fired round struck the child in the chin and head causing significant injuries. The child survived the injuries.
Redmond has prior convictions for assault, disorderly conduct – fighting or violent behavior, possession of drugs, theft, providing false identification, robbery, reckless use of a firearm resulting in bodily injury, and trafficking in stolen weapons. During the robbery, Redmond shot the victim of the robbery three times, once in the arm and twice in the legs.
Redmond was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Redmond was sentenced to 120 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. He was also ordered to pay approximately $1,000 in restitution to the owner of the car he shot.
On December 17, 2021, Graham was sentenced to five years of federal probation after previously pleading guilty to making a false statement during the purchase of the two Glock handguns on December 4, 2020.
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.
This case was made possible by investigative leads generated from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) National Integrated Ballistic Information Network (NIBIN). NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. For more information on NIBIN, visit https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Redmond is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Safe Streets Task Force, the Waterloo Police Department, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department and was prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-115.
Follow us on Twitter @USAO_NDIA.
Convicted Felon Who Ran from Police and Tried to Hide a Loaded Gun Sentenced to Federal PrisonRead the Press Release
A convicted felon who unlawfully possessed a gun he attempted to hide while running from police was sentenced today to more than two years in federal prison.
Ryan Matthew Willis, age 24, Dubuque, Iowa, received the prison term after a September 13, 2021 guilty plea to one count of being a felon in possession of a firearm.
Information from the sentencing hearing showed that, on January 30, 2021, Willis was the passenger in a car driving in Dubuque. Law enforcement attempted to stop the car. The car then led law enforcement on a high-speed chase. The car eventually stopped and three people, including Willis, got out and attempted to flee on foot. While running from the police, Willis stashed a loaded handgun under a tarp. Law enforcement officers found the gun a short time later.
Willis has a lengthy criminal history. He has convictions for aggravated unlawful use of a weapon, possessing drugs, providing false identification, disorderly conduct, theft, criminal mischief, and interference with official acts causing bodily injury. The interference with official acts conviction resulted after Willis ran from law enforcement officers. The officers had to tackle Willis to stop him from running. Two officers received injuries as a result.
Willis was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Willis was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. 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.
Willis is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ashley Corkery and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-1021.
Follow us on Twitter @USAO_NDIA.
Clinton Johnson Appointed U.S. Attorney for the Northern District of OklahomaRead the Press Release
Attorney General Merrick Garland appointed Clinton J. Johnson as the United States Attorney for the Northern District of Oklahoma effective December 26, 2021. Chief U.S. District Judge John F. Heil III administered the oath of office.
“I am privileged to serve the people of northeastern Oklahoma and to lead an exceptional team of attorneys and support staff dedicated to ensuring the public’s safety,” said U.S Attorney Clint Johnson. “The U.S. Attorney’s Office remains committed to working closely with our local, state, federal and tribal partners in the pursuit of justice in the Northern District of Oklahoma.”
Johnson previously began a term appointment as the Acting U.S. Attorney on March 1, 2021, under the Vacancies Reform Act. That term appointment expired on December 25, 2021. Under the Attorney General’s December 26, 2021, appointment, Johnson now serves as the United States Attorney for a term of 120 days or until a presidentially appointed U.S. Attorney is in place.
Johnson is the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States in the Northern District of Oklahoma, an area covering eleven counties and including thirteen federally recognized Indian tribes. He leads a staff of more than 100 attorneys and support personnel to accomplish this mission.
He has also held the position of First Assistant U.S. Attorney where he supervised the criminal, civil, and administrative divisions for the Northern District of Oklahoma. He further managed the agency’s budget and resources and took an active role in the hiring of personnel and expansion of office space as the U.S. Attorney’s Office was required to grow dramatically to fulfill its public safety mission.
Johnson is a career federal prosecutor with 26 years of experience. He has investigated and prosecuted violent felonies, white-collar offenses, public corruption, drug and gun-related crimes, and human trafficking in the Northern District of Oklahoma. Previously, he served as an Assistant U.S. Attorney and Deputy Branch Chief in the District of New Mexico.
For more information about the U.S. Attorney’s Office for the Northern District of Oklahoma, please visit https://www.justice.gov/usao-ndok. The U.S. Attorney’s full bio can be found here.
Billings man admits stealing firearms from business after using construction excavator to break inRead the Press Release
BILLINGS – A Billings man accused of stealing firearms from a business after breaking in by using a construction excavator to tear down a section of wall and door admitted to a firearms crime today, U.S. Attorney Leif M. Johnson said.
Erik Stephen Deaner, 46, pleaded guilty to theft from a federal firearm licensee. Deaner faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Timothy J. Cavan presided. Deaner was detained pending further proceedings. A sentencing date is pending before U.S. District Judge Susan P. Watters.
In court documents, the government alleged that on Oct. 21, Deaner stole firearms from Castle Arms, a federal firearms licensee located in Yellowstone County, by using a construction excavator to tear down a section of wall and door. The excavator had been taken from a nearby construction site. Construction site employees told law enforcement that the excavator had been locked and no keys were missing but that the key was universal so anyone with the manufacturer’s key could potentially access the excavator. An investigation determined that five pistols and one antique rifle had been stolen and that Deaner had been in the business previously and had behaved oddly. Investigators went to Deaner’s home and arrested him on an outstanding warrant when he came outside. Deaner admitted to using the excavator to break into the business and to stealing the firearms. Deaner said he knew he was prohibited from possessing firearms but that he liked firearms. All of the stolen firearms were recovered from his garage.
Assistant U.S. Attorney Thomas K. Godfrey is prosecuting the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Arkansas Man Pleads Guilty to Being a Felon in Possession of AmmunitionRead the Press Release
Gulfport, Miss. – An Arkansas man pleaded guilty to the federal felony offense of being a convicted felon in possession of ammunition.
Victor Cody Rosillo, 26, was found guilty and convicted of the offense by U.S. District Court Judge Taylor B. McNeel. Rosillo is scheduled to be sentenced on April 6, 2022, and faces a maximum penalty of 10 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, on October 6, 2020, Rosillo, who had been traveling in Mississippi, committed a drive-by shooting from a nearby street onto Keesler Air Force Base near the Military Hospital Emergency Room. While no firearm was recovered, two shell casings and a fired bullet were recovered from the scene by Biloxi Police and Keesler Security Forces. The recovered projectile was analyzed by a forensic examiner and was determined to be a 9mm bullet consistent with the 9mm shell casings recovered. The forensic examiner also noted that the 9mm projectile would have been fired from a 9mm HiPoint firearm, which investigators learned was the same type of firearm possessed by Rosillo during the Keesler shooting incident.
Rosillo was serving a term of state felony probation in Arkansas at the time of the shooting in Mississippi.
U.S. Attorney Darren J. LaMarca, Special Agent in Charge Jermicha Fomby of the FBI in Mississippi, and Special Agent in Charge Kurt Thielhorn of the ATF in New Orleans, made the announcement. U.S. Attorney LaMarca praised the investigation and coordination of the FBI, the ATF, Keesler Security Forces and the Biloxi Police Department.
Assistant U.S. Attorney Stan Harris is prosecuting the case as part of the federal, state, and local Project Safe Neighborhoods (PSN) Program. The centerpiece of the Department of Justice’s crime reduction efforts, PSN is an evidence-based program proven effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together and develop comprehensive solutions. As part of this strategy, PSN focuses enforcement efforts and partners with locally based prevention and reentry programs for lasting reductions in crime.
Tuesday 28 December 2021
U.S. Attorney’s Office Collects $4,302,430 in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
INDIANAPOLIS – U.S. Attorney Zachary A. Myers announced today that the Southern District of Indiana collected $4,302,430.23 in criminal and civil actions in Fiscal Year 2021. Of this amount, $2,799,296.37 was collected in criminal actions and $1,503,133.86 was collected in civil actions.
Additionally, the Southern District of Indiana worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $1,941,923.77 in cases pursued jointly by these offices. Of this amount, $114.58 was collected in criminal actions and $1,941,809.19 was collected in civil actions.
“The diligent efforts of our federal prosecutors and support staff in the Southern District of Indiana’s Criminal Division, Civil Division and Asset Recovery Unit are committed to protecting its citizens and their resources,” said U.S. Attorney Zachary A. Myers. “We have some of the best in the country, and I want to thank them for making this year's collections possible.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s office in the Southern District of Indiana, working with partner agencies and divisions, collected $1,414,230 in asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office Collects over $38.5 Million in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
LAS VEGAS – Acting U.S. Attorney Christopher Chiou announced today that the District of Nevada collected $38,515,689.66 in criminal and civil actions in Fiscal Year 2021. Of this amount, $36,943,966.20 was collected in criminal actions and $1,571,723.46 was collected in civil actions.
“Without the dedication, commitment, and hard work of our Civil Division, particularly the Financial Litigation Program and Asset Forfeiture Unit, these significant collections would not have been possible,” said Acting U.S. Attorney Chiou. “Our office is honored to work alongside our law enforcement and other collection partners, and contribute these funds for (among other things) victim compensation and assistance.”
Highlights of the District of Nevada’s FY 2021 collection efforts include:
- In March 2021, Indian drug manufacturer Fresenius Kabi Oncology Limited (FKOL) pleaded guilty to violating the Federal Food, Drug and Cosmetic Act by failing to provide certain records to FDA investigators. As part of a criminal resolution, FKOL paid a criminal fine of $30 million in April. The Asset Forfeiture Unit also obtained an order compelling FKOL to forfeit an additional $20 million.
- In September 2021, the U.S. Attorney’s Office obtained an order granting a motion for final order of garnishment in United States v. Patel. The garnishment, which was directed to a complicated investment vehicle owned by the defendant, enabled the government to obtain $453,025.57 to apply towards the defendant’s outstanding $500,000 fine.
The U.S. Attorneys’ Offices, along with the Department of Justice’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
Additionally, the U.S. Attorney’s Office for the District of Nevada, working with partner agencies and divisions, collected $22,292,063 in asset forfeiture actions in FY 2021. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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San Diego Resident Indicted for Distributing Fentanyl that Resulted in 15-Year-Old’s DeathRead the Press Release
Assistant U. S. Attorneys Vivian Sapthavee (619) 546-7696 and Adam Gordon (619) 546-6720
NEWS RELEASE SUMMARY—December 28, 2021
SAN DIEGO - Kaylar Junior Tawan Beltranlap of San Diego appeared in federal court today in connection with a grand jury indictment charging him with selling the fentanyl that resulted in the death of a 15-year-old Coronado High School sophomore on May 12, 2021.
Agents and Task Force officers with the Drug Enforcement Administration are leading the investigation into the death. The next court date is set for February 4, 2022 for a Motion Hearing/Trial Setting.
“Every loss of life to opioids is tragic, but the death of a 15-year-old is heart-shattering,” said Acting U.S. Attorney Randy Grossman. “Our community must recognize the threat to middle and high school students from the plague of fentanyl. This case must be a call to action to educate our children about the extreme danger of experimenting with drugs.” Grossman thanked the prosecution team and investigating agencies for their dedication to this case and to the cause of preventing opioid-related deaths and seeking justice for victims.
“The Coronado Police Department is thankful for the collective work to hold the suspect accountable. We are also reminded that we have a family that lost a child because of a dangerous drug,” - Coronado Police Chief Chuck Kaye.
“Parents: More than ever before, it’s so important to educate your teenager about the dangers of drugs because just One Pill Can Kill,” said DEA Acting Special Agent in Charge Shelly S. Howe. “If you don’t have the conversation with your teen, their friends or a drug dealer will give them inaccurate information and it could cost your child’s life. The DEA has resources available to parents at www.getsmartaboutdrugs.gov.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, the California Department of Health Care Services and the San Diego County District Attorney’s Office to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The DEA created Narcotics Task Force (NTF) Team 10 as a response to the increase in overdose deaths in San Diego County. Investigators from Team 10, as well as the Coronado Police Department and NTF Team 3, contributed to the investigation into C.J.S.’s death.
DEFENDANT Case Number 21-CR-3442 CAB
Kaylar Junior Tawan Beltranlap Age: 21 San Diego, CA
SUMMARY OF CHARGES
Distribute of Fentanyl Resulting in Death – Title 21, United States Code, Sections 841(a) and (b)(1)(C)
Maximum penalty: Life in prison; Twenty-year mandatory minimum
AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
Coronado Police Department
San Diego Police Department
California Department of Health Care Services
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Robert J. Troester Appointed United States Attorney for the Western District of OklahomaRead the Press Release
OKLAHOMA CITY – Attorney General Merrick Garland appointed Robert J. Troester as the United States Attorney for the Western District of Oklahoma effective December 26, 2021. He took the oath of office from Chief United States District Judge Timothy D. DeGiusti last week.
"It is an honor to serve the great citizens of the Western District of Oklahoma and work every day to keep our communities safe," said U.S. Attorney Troester. "I am privileged to work with an incredibly talented team of professionals in the U.S. Attorney’s Office and exceptional state, local, tribal, and federal law enforcement partners, who are all dedicated to the mission of justice."
U.S. Attorney Troester had served as First Assistant U.S. Attorney and began a term appointment as the Acting U.S. Attorney under the Vacancies Reform Act on March 1, 2021, following the resignation of then-U.S. Attorney Timothy J. Downing. That term appointment expired on December 25, 2021. Under the Attorney General’s December 26, 2021 appointment, U.S. Attorney Troester now serves as the United States Attorney for a term of 120 days or until a Presidentially appointed U.S. Attorney is in place.
As United States Attorney, Troester serves as the chief federal law enforcement officer responsible for all federal criminal prosecutions and civil litigation involving the United States, federal agencies, and federal employees in the Western District of Oklahoma. The Western District is the largest of three judicial districts in Oklahoma and includes 40 of the 77 counties and including 21 federally recognized Indian tribes. The U.S. Attorney’s Office consists of nearly 100 staff members to accomplish this mission.
U.S. Attorney Troester has served in the Department of Justice since 1995. He has held multiple managerial positions throughout his career, including Acting U.S. Attorney on four occasions, First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, and Chief of the Civil Division. He has also served in other capacities in Washington D.C., including Associate Deputy Attorney General, Sr. Counsel to the Deputy Attorney General, and Deputy Director of the Executive Office for U.S. Attorneys. Prior to joining the U.S. Attorney’s Office, Troester worked in private practice in Oklahoma City, in Oklahoma state government, and in local law enforcement at the Buffalo County Sheriff’s Office in Kearney, Nebraska.
For more information about the U.S. Attorney’s Office for the Western District of Oklahoma, please visit https://www.justice.gov/usao-wdok.
Pittsburgh Felon Charged with Illegally Possessing a Firearm and AmmunitionRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearm laws, United States Attorney Cindy K. Chung announced today.
The one-count Indictment named Isaiah Khalil Wise, age 21, formerly of the City’s East Hills neighborhood, as the sole defendant.
According to the Indictment, on or about December 4, 2021, Wise possessed a firearm and ammunition as a convicted felon. It is prohibited under federal law for a convicted felon to be in possession of a firearm and/or ammunition.
The law provides for a term of imprisonment not more than ten (10) years, a fine not to exceed $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian W. Castello is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, Office of the Attorney General – Criminal Law Division and the Allegheny County Sheriff’s Office conducted the investigation leading to the Indictment in this case.
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
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Omaha Man Sentenced for Child Sex Trafficking OffensesRead the Press Release
COUNCIL BLUFFS, IA – Earl Jonell Jackson, age 40, of Omaha, NE was sentenced on December 20, 2021 by United States District Court Judge Stephanie M. Rose to 120 months in prison for Transportation and Sex Trafficking of a Child. His prison term will be followed by five years of supervised release. According to court documents, Jackson pleaded guilty to the charge on August 5, 2021.
On September 8, 2020, the mother of the minor victim reported her daughter missing to the Council Bluffs Police Department. Law enforcement began their investigation and based on phone number information, they were able to locate numerous ads for prostitution posted by Jackson on skipthegames.com, an online website where ads are posted for prostitution purposes. Prostitution ads of the minor victim were posted in the Omaha and Council Bluffs area, specifically in the Council Bluffs area in August and September of 2020.
Law enforcement further found on September 5, 2020, Jackson and the minor victim drove from Omaha to Chicago. Jackson supplied the minor victim with drugs and posted prostitution ads on skipthegames.com in the Chicago and Highland Park, IL area numerous times in September of 2020. The minor victim was located in Chicago, Illinois.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department and the Federal Bureau of Investigation investigated the case. This case was prosecuted by the United States Attorney’s Offices for the Southern District of Iowa.
John T. Earnest Sentenced to Life Plus 30 years in Prison for Federal Hate Crimes Related to 2019 Poway Synagogue Shooting and Attempted Mosque ArsonRead the Press Release
Assistant U. S. Attorneys Peter Ko (619) 546-7359 and Shane Harrigan (619) 546-6981
NEWS RELEASE SUMMARY – December 28, 2021
SAN DIEGO – John T. Earnest, a Rancho Penasquitos man who entered the Chabad of Poway on April 27, 2019, opened fire and killed one woman, injured three others, and attempted to kill 50 others, was sentenced in federal court today to life plus 30 years in prison for his crimes.
Earnest previously pleaded guilty to a 113-count indictment that included 54 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, 55 counts of violating the Church Arson Prevention Act, and four firearms offenses.
Earnest also admitted that on March 24, 2019, he attempted to burn down the Dar-ul-Arqam mosque in Escondido, California, because of his hatred of Muslims and the religious character of the building. Seven missionaries were asleep in the mosque, but no one was injured.
“All people in this country should be able to freely exercise their religion without fear of being attacked,” said Attorney General Merrick B. Garland. “This defendant’s horrific crime was an assault on fundamental principles of our nation. The Justice Department is steadfast in its commitment to confronting unlawful acts of hate and to holding perpetrators of hate-fueled violence accountable.”
“Today we stand with the family of Lori Gilbert Kaye, the injured, and all who suffered as a result of the defendant’s heinous crimes,” said U.S. Attorney Randy Grossman. “The United States Attorney’s Office and our law enforcement partners reject all forms of hatred and prejudice, and we will relentlessly pursue justice for the victims of bias-motivated violence.” Grossman thanked the prosecution team, the Department of Justice’s Civil Rights Division, the FBI, the ATF, the San Diego Sheriff’s Department, and the San Diego Police Department for their excellent work on this case.
“Hate has no place in our society and bias-motivated violence will not be tolerated,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By committing these heinous and senseless acts of violence against Jewish and Muslim community members, this defendant violated our most basic American ideal: all persons are created equal. The Department of Justice is committed to aggressively prosecuting bias-motivated violence and will continue partnering with state and local law enforcement to ensure that those who seek to engage in violence based on bias are held accountable for their crimes.”
“While today's sentence brings an end to this case, it also reaffirms the FBI's commitment to pursue those who operate in the world of prejudice and religious hate,” said FBI Special Agent in Charge Suzanne Turner. “Hate crimes tear at the social fabric of our community. The FBI stands with our state and federal partners to ensure houses of worship are free from bias-motivated violence, and we will use all investigative tools to seek justice for the victims.”
“ATF will continue to use all investigative tools and resources at our disposal to combat hate-fueled gun violence,” said ATF Special Agent in Charge Monique Villegas. “Hatred of any kind has no place in our society and we will work tirelessly with our federal and local law enforcement partners to ensure any individual or groups that perpetuate criminal acts are held accountable for their actions.
According to court documents, after several weeks of planning, on the morning of April 27, 2019, Earnest drove to the Chabad of Poway synagogue, where members of the congregation were gathered for religious worship. Earnest entered the building armed with a Smith and Wesson M&P 15 assault rifle that was fully loaded with a 10-round magazine. He wore a chest rig which contained five additional magazines, each loaded with ten rounds of ammunition. Earnest opened fire, killing Lori Gilbert-Kaye and injuring three other members of the congregation, including a then eight-year-old child. After Earnest emptied his initial magazine, several congregants rushed at Earnest. Earnest fled in his car and, shortly after, called 911 and confessed that he had “just shot up a synagogue.” Earnest was apprehended by local law enforcement who found the rifle and additional ammunition in his car.
Investigators found a manifesto written by Earnest and posted on the Internet shortly before the attack. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements, including “I can only kill so many Jews” and “I only wish I killed more.”
The case is being prosecuted by Assistant U.S. Attorneys Shane Harrigan and Peter Ko, along with Deputy Chief Rose Gibson of the Civil Rights Division. The FBI, ATF, and San Diego Sheriff’s Department conducted the investigation.
John J. Flatley Company Enters into Consent Decree to Resolve Claims That It Violated the Fair Housing Act by Refusing to Permit Tenant to Have Emotional Support DogRead the Press Release
CONCORD – Acting U.S. Attorney John J. Farley announced today that United States District Judge Joseph Laplante has approved a consent decree resolving claims that John J. Flatley, d/b/a John J. Flatley Company (Flatley), and a property manager employed by Flatley, violated the Fair Housing Act (FHA).
In a complaint filed in April of 2021, the United States alleged that Flatley discriminated against a tenant in its apartment complex in Nashua by refusing to allow a reasonable accommodation of the tenant’s disability when the tenant sought to have an emotional support animal, a dog named Molly. The tenant, who experienced anxiety and depression, used Molly as an emotional support animal. After the tenant requested permission to have an emotional support animal at the apartment, Flatley and the property manager agreed to permit the tenant to have an emotional support animal, but not a dog. The complaint alleged Flatley would not permit tenants to have dogs as emotional support animals.
The United States and Flatley agreed to the entry of a consent decree, which Judge Laplante approved on December 27, 2021. The Consent Decree resolved the claims in the government’s complaint. Without admitting liability, Flatley agreed to pay the tenant $35,000, enact reasonable accommodation policies for its New Hampshire residential properties that comply with the FHA, and complete FHA training.
“Under the Fair Housing Act, landlords must make reasonable accommodations for tenants with disabilities,” said Acting U.S. Attorney Farley. “We are pleased that the company has agreed to resolve this matter and is now instituting policies and conducting training so that individuals with disabilities are given equal housing opportunities. As this case demonstrates, the U.S. Attorney’s Office is committed to protecting the rights of individuals with disabilities and will vigorously enforce federal civil rights laws in the Granite State.”
“Protecting the rights of individuals and families when their fair housing rights are violated is central to HUD’s mission,” said Demetria L. McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD commends the Department of Justice for reaching this settlement and for pursuing allegations of fair housing violations.”
This lawsuit arose from an administrative complaint filed by the tenant with the U.S. Department of Housing and Urban Development (HUD). Upon investigation, HUD determined that there was reasonable cause to believe that the FHA had been violated. The tenant elected, pursuant to the FHA, to have HUD’s determination resolved in federal court.
The FHA prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
The case was handled by Assistant U.S. Attorney Raphael Katz.
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Illinois Felon Sentenced in Iowa After Possessing a Gun and Drugs Inside a Cedar Rapids Wal-MartRead the Press Release
A convicted felon who possessed drugs he intended to distribute and a gun inside a Wal-Mart was sentenced today to more than seven years in federal prison.
Sylvester Cunningham, age 41, from Blue Island, Illinois, received the prison term after a July 13, 2021 guilty verdict following a two-day trial in federal court in Cedar Rapids. Cunningham was convicted of being a felon in possession of a firearm, possessing crack and powder cocaine with the intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime.
The evidence at trial showed that at about 11:00 A.M. on August 7, 2020, Cunningham, who was in a wheelchair, entered the vestibule of a Wal-Mart store in Cedar Rapids. Cunningham moved from his wheelchair into a Wal-Mart electric shopping cart. A short time later, while helping Cunningham look for a lost cellphone, a Wal-Mart employee lifted the cushion of Cunningham’s wheelchair and saw a .357 caliber revolver.
The employee alerted an off-duty Cedar Rapids Police Department officer who was providing security for the store. The officer retrieved the gun. After finding out that Cunningham was on federal supervised release for a prior gun charge, police officers arrested him. While searching him as part of the arrest, officers located thirteen individual baggies of crack and powder cocaine concealed in Cunningham’s clothing.
Prior to August 7, 2020, Cunningham had received two felony convictions. First, in 2004, Cunningham was convicted of felony operating while intoxicated in Illinois. Second, in 2012, Cunningham was convicted of being a felon in possession of a firearm in the federal district court for the Northern District of Iowa. In the 2012 case, Cunningham was found in possession of a rifle after he crashed a car he was driving in Cedar County, Iowa.
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.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and Special Assistant United States Attorney Devra Hake and investigated by the Cedar Rapids Police Department and the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation, the Marion Police Department, and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-104.
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Hartford Fentanyl Trafficker Sentenced to 5 Years in Federal PrisonRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that JOHNNY ORTEGA, also known as “Clatcho,” 39, of Hartford, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by four years of supervised release, for distributing fentanyl.
According to court documents and statements made in court, in 2018, the FBI’s Northern Connecticut Gang Task Force began investigating Ricardo Reyes, also known as “Rick the Ruler,” a member of the Los Solidos street gang who was distributing fentanyl, heroin, cocaine and crack in the area of Park Street and Hungerford Street in Hartford. During the investigation, law enforcement conducted multiple controlled purchases of narcotics from Reyes. Court-authorized wiretaps confirmed that Reyes was distributing narcotics to numerous customers, and identified individuals who supplied drugs to Reyes, as well as associates of Reyes who sold drugs on his behalf. Intercepted communications also revealed Reyes was acquiring and trafficking firearms.
Ortega, who is Reyes’ brother-in-law, supplied Reyes with fentanyl, and used his Rowe Avenue residence to store, process and package fentanyl for distribution. On June 17, 2019, a court-authorized search of the residence revealed approximately 3,450 dose-bags of fentanyl, narcotics paraphernalia, a loaded Glock .40 caliber pistol, and ammunition.
On June 27, 2019, a grand jury Hartford returned a 32-count indictment charging Reyes, Ortega and 13 associates with various narcotics trafficking and firearm possession offenses. Ortega was arrested on July 2, 2019. On April 20, 2021, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and distribution of, 40 grams or more of fentanyl.
Ortega, who is released on a $200,000 bond, is required to report to prison on February 28, 2022.
Reyes pleaded guilty and, on February 11, 2021, was sentenced to 18 years of imprisonment.
The FBI’s Northern Connecticut Gang Task Force includes members of the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division provided valuable assistance to the investigation.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Guam Meth Dealer Sentenced to 49 Months for Drug TraffickingRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands announced that defendant Lovelia C. Mendoza, age 39, from Guam was sentenced in the United States District Court of Guam to 49 months imprisonment to run concurrently with prior federal offense for Conspiracy to Distribute Fifty (50) Grams or More of Methamphetamine Hydrochloride, a Schedule II Substance in violation of 21 U.S.C. §§ 846 and 841(a)(1) and (b)(1)(A)(viii). The Court also ordered 5 years of supervised release following imprisonment, and a mandatory $100.00 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On May 10, 2018, law enforcement conducted a controlled delivery of a package that contained a substance that field tested positive for the presence of methamphetamine. The package was picked up by Joseph R. Roman II at the U.S. Post Office in Barrigada. Upon exiting the postal facility with the package, Roman entered a vehicle driven by Daniel Topasna Pangelinan. Law enforcement conducted surveillance and monitored the movements of the package utilizing a GPS device that was placed in the box. While under surveillance, Roman was seen disposing the package behind a shelter in Dededo where both Roman and Pangelinan were subsequently detained. Pangelinan waived his rights and admitted to assisting Roman in picking up the package at Lovelia Mendoza's request.
Few days prior, Pangelinan was at Mendoza's residence and was given a postal slip and told Pangelinan and Roman that the package was ready for pickup. On May 9, 2018, Pangelinan drove Roman to the U.S. Post Office in Barrigada to pick up the package but was unsuccessful and got it the next day. When the package was retrieved, Mendoza gave instructions to Roman and Pangelinan to deliver the package to Mark Mayo. The plan was for Roman to discard the package on the roadway for Mayo to pick-up. Soon after the package was discarded, investigators immediately took possession. Pangelinan received a phone call from Mayo and said, the "feds" got the package. Laboratory analysis of the substance recovered from the package revealed that it was 418.7 net grams of d-methamphetamine hydrochloride with a purity level of 98%. This quantity was indicative of an intent to distribute.
Pangelinan, Roman, and Mayo were also charged in connection with this package. Daniel Pangelinan pled guilty to Attempted Possession of Methamphetamine Hydrochloride with Intent to Distribute and was sentenced to 41 months in federal prison on June 22, 2021. Joseph R. Roman II pled guilty to Conspiracy to Distribute Methamphetamine Hydrochloride and was sentenced to time served on August 26, 2021. Mark Mayo was found guilty of Conspiracy to Distribute Methamphetamine Hydrochloride and Attempted Possession of Methamphetamine Hydrochloride with Intent to Distribute following a jury trial. Mayo was sentenced to 120 months in federal prison on June 22, 2021.
“Our office is dedicated to supporting our law enforcement partners in targeting drug traffickers in our districts,” stated U.S. Attorney Anderson. “The interdiction of mail parcels continues to reveal large quantities of methamphetamine arriving on island. Anyone with information about this type of crime should contact federal authorities at the earliest opportunity.”
"The FBI works alongside with our law enforcement partners to stop the importation and sale of illegal drugs," said FBI Special Agent in Charge Steven Merrill. "Today's sentencing shows our commitment and our tireless efforts to combat and deter the distribution of illegal, and potentially deadly, narcotics. The FBI will continue to do everything we can to put those who bring illegal drugs into our communities out of business."
The case was investigated by the Federal Bureau of Investigation and the United States Postal Inspection Service as part of the Organized Crime Drug Enforcement Task Force’s (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
This case was prosecuted by Assistant United States Attorney Laura C. Sambataro, United States Attorney’s Office for the District of Guam.
Federal Jury Convicts Baltimore Defense Attorney for Money Laundering ConspiracyRead the Press Release
Baltimore, Maryland – A federal jury has convicted attorney Kenneth Wendell Ravenell, age 61, of Monkton, Maryland, of conspiracy to commit money laundering conspiracy charge.
The conviction was announced by First Assistant United States Attorney for the District of Maryland Phil Selden; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office. The United States Attorney has recused himself from this case.
The trial evidence proved that Ravenell received drug proceeds from clients and associates who engaged in drug trafficking. Evidence was presented that Ravenell also used bank accounts of the law firm where he practiced to launder more than a million dollars and used the law firm’s bank accounts to receive drug payments and make payments to attorneys retained to represent other members of the conspiracy and make various investments on behalf of a drug trafficker client concealing and misrepresenting the source of the funds and promoting the client’s unlawful activity. According to trial evidence, Ravenell also received substantial cash payments derived from drug sales as compensation for laundering money.
The jury acquitted Ravenell of racketeering conspiracy and narcotics conspiracy charges. The jury also acquitted Ravenell and attorney Joshua Reinhardt Treem, age 73, of Columbia, Maryland, on federal charges of a conspiracy to commit offenses against the United States, falsification of documents, and obstructing an official proceeding. The jury acquitted Sean Francis Gordon, age 45, of Crownsville, Maryland, a private investigator who worked for both Ravenell and Treem of those same charges.
Ravenell faces a maximum sentence of 20 years in federal prison for the money laundering conspiracy. U.S. District Judge Liam O’Grady of the U.S. District Court for the Eastern District of Virginia, who presided over this case in the District of Maryland, scheduled sentencing for Ravenell on May 14, 2022, at 11:00 a.m.
First Assistant United States Attorney Phil Selden commended the IRS-CI, the DEA, the Maryland Transportation Authority Police Department, the Phoenix (Arizona) Police Department, and the Arizona Financial Crimes Task Force for their work in the investigation. Mr. Selden thanked Assistant U.S. Attorneys Leo J. Wise and Zachary Ray, and Special Assistant U.S. Attorney Derek Hines, who are prosecuting the case.
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District Court Orders New Jersey Defendants to Stop Distributing Unapproved ‘Nano Silver’ Products Touted as COVID TreatmentRead the Press Release
A federal court permanently enjoined a New Jersey entity and its principals from distributing unapproved and misbranded drugs touted as a treatment for COVID-19.
In a complaint filed on Nov. 13, 2020, the United States alleged that Natural Solutions Foundation, along with trustees Ralph Fucetola and Dr. Rima Laibow, violated the Federal Food, Drug and Cosmetic Act (FDCA) by distributing a “nano silver” product that they claimed would prevent, treat or cure COVID-19. According to the complaint, which was filed at the request of the U.S. Food and Drug Administration (FDA), Natural Solutions operated various websites to market “Dr. Rima Recommends Nano Silver,” a product that purportedly contained silver particles in a solution. The complaint further alleged that nano silver is not generally recognized by qualified experts as safe and effective to prevent, treat or cure COVID-19, and that the defendants’ claims were not supported by credible scientific evidence or studies. Additionally, the complaint alleged that the defendants’ nano silver products were misbranded drugs, because their labeling failed to bear adequate directions for use, as required by the FDCA.
“Marketing unproven products as treatments for COVID-19 endangers public health and violates the law,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will work closely with the FDA to stop anyone attempting to take advantage of the pandemic by selling unapproved, misbranded drugs.”
“The FDA will continue to aggressively pursue and hold accountable those who jeopardize public health,” said Acting Deputy Director Greg Noonan for the FDA’s Office of Dietary Supplement Programs. “Today’s consent decree demonstrates that we will use all of our authority to stop companies that prey on the public during a global pandemic by selling unapproved new drugs.”
The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The order entered by the federal court permanently enjoins the defendants from violating the FDCA and requires that they institute a recall for the nano silver products they sold and destroy any such products in their possession. Before distributing any drug in the future, the defendants must notify FDA in advance, comply with specific remedial measures set forth in the injunction and permit FDA to inspect their facilities and procedures.
The enforcement action was prosecuted by Trial Attorney Brianna M. Gardner of the Civil Division’s Consumer Protection Branch, with assistance from Associate Chief Counsel for Enforcement Jaclyn Martínez Resly of the FDA’s Office of Chief Counsel.
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 and efforts to stop COVID-19 fraud, 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.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Disruptive Passenger on Airline Facing Federal ChargesRead the Press Release
NASHVILLE – A criminal complaint unsealed today, charges a Lebanon, Tennessee woman with interfering with a flight crew following an incident on board a Spirit Airlines flight flying to Nashville on November 27, 2021, announced U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Amanda Renee Henry, 43, surrendered to FBI agents in Nashville this morning and will appear before a U.S. Magistrate Judge later today.
“In accordance with the Attorney General’s directive, the prosecution of those who endanger the safety of airline passengers, flight crews, and flight attendants is a priority of this office,” said U.S. Attorney Wildasin. Those whose behavior disrupts or otherwise endangers the safety of persons on aircrafts should expect to face federal charges.”
According to the criminal complaint, Henry was a passenger on a flight from Fort Lauderdale, Florida, and became disruptive and appeared to be intoxicated. Passengers seated next to Henry requested to be moved to other seats due to Henry’s disruptive behavior. Since Henry was seated next to an emergency exit, flight attendants decided for the safety of everyone on board to move Henry to another seat. When they requested that Henry move, she refused and grabbed her carry-on bag and ran toward the front of the aircraft screaming, “I’m getting off this plane.” Another flight attendant blocked Henry from getting to the main cabin door and began to restrain her, at which time Henry began to kick and hit the flight attendant. Henry also assaulted the other flight attendant who assisted in trying to restrain her.
Once the flight attendants were able to restrain Henry, a passenger who was an off-duty firefighter assisted the crew by sitting with Henry and keeping her calm for the duration of the flight. When the plane landed at Nashville International Airport, Henry was arrested by the Nashville Airport Department of Public Safety and charged with public intoxication.
If convicted of the federal offense, Henry faces up to 20 years in prison and a $250,000 fine.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Joshua Kurtzman.
A criminal complaint is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Department of Justice Awards More Than $300 Million to Fight Opioid and Stimulant Crisis and to Address Substance Use DisordersRead the Press Release
WASHINGTON ― The Department of Justice’s Office of Justice Programs (OJP) today announced grant awards totaling more than $300 million to help combat America’s substance use crisis, which has worsened during the coronavirus pandemic. In the Northern District of West Virginia, more than $1.8 million was awarded, announced United States Attorney William J. Ihlenfeld, II.
“Against the backdrop of the COVID-19 pandemic, the nation is experiencing a precipitous rise in opioid and stimulant misuse and overdoses,” said Attorney General Merrick B. Garland. “The Justice Department is committed to supporting programs aimed at addressing the substance use crisis that is devastating communities across the nation.”
The most recent provisional data from the Centers for Disease Control and Prevention indicates that, “there were an estimated 100,306 drug overdose deaths in the United States during the 12-month period ending in April 2021, an increase of 28.5% from the 78,056 deaths during the same period the year before.”
“The substance use crisis in American society has been a persistent and deadly problem for decades, and illicitly manufactured fentanyl and synthetic opioids have tightened the grip drugs have on our society,” said Principal Deputy Assistant Attorney General Amy L. Solomon for OJP.
“The Biden-Harris Administration is working diligently to address these problems by committing unprecedented levels of funding toward research, substance use treatment and mental health services, along with investments in enforcement, response and evidence-based treatment.”
OJP’s Bureau of Justice Assistance (BJA) and Office of Juvenile Justice and Delinquency Prevention (OJJDP) are distributing millions of dollars in grant awards aimed at addressing the substance use crisis throughout the nation. In addition to these grants, OJP is awarding $34 million to help communities respond to public safety and public health emergencies, including crises that result from substance use disorders.
Below is a list of awards being made in Fiscal Year 2021 to address the opioid and stimulant crisis and the needs of individuals with substance use disorders:
BJA is awarding more than $137 million under its Comprehensive Opioid, Stimulant and Substance Abuse Site-Based Program, which will help communities address the prevention, diversion, treatment and recovery needs of those affected by substance use disorders. Another $9.7 million is funding related training and technical assistance.
- Berkeley County was awarded $900,000 to support the Berkeley County Day Report Center. The Comprehensive Opioid, Stimulant, and Substance Abuse Site-Based Program (COSSAP) will provide an opportunity for Berkeley County to support those most vulnerable in the community to the opioid crisis - the children. Working in partnership with Berkeley County Schools, and the Martinsburg Initiative the program, hosted by the Berkeley Recovery Resource Center, will provide Peer Recovery services to address treatment and intervention needs primarily for students and secondarily, their family members, strengthen social services where children have been impacted by drug addition to connect them to community services, and provide sustaining funds to Project AWARE, an ongoing initiative of the Berkeley County School system whose overarching goal is to improve the mental health and wellbeing of all school-aged children. The long-term goal of the community is to curtail opioid use, supporting all citizens to lead productive, healthy lives.
More than $61.6 million under BJA’s Adult Drug and Veteran Treatment Court Program will help states, state courts, local courts and federally recognized tribal governments implement and enhance the operations of adult drug courts and veteran treatment courts. Another $15.7 million is funding related training and technical assistance.
BJA is awarding $29.6 million to support the Residential Substance Abuse Treatment for State Prisoners Program, which helps states develop and implement residential substance use treatment programs, including medication assisted treatment within correctional and detention facilities.
- The West Virginia Department of Military Affair and Public Safety was awarded $245,539 for the Residential Substance Abuse Treatment (RSAT) for State Prisoners Program. The program assists states and local governments to develop and implement substance abuse treatment programs in state and local correctional and detention facilities and to create and maintain community-based aftercare services for offenders.
BJA is awarding nearly $29.6 million to fund the Harold Rogers Prescription Drug Monitoring Program, which enhances the capacity of regulatory and law enforcement agencies and public health officials to collect and analyze controlled substance prescription data and other scheduled chemical products through a centralized database administered by an authorized agency.
OJJDP is awarding $16 million to support Mentoring for Youth Affected by the Opioid Crisis and Drug Addiction, which supports services for youth who are currently using or at-risk for using drugs or to youth with family members who have a substance use disorder.
OJJDP is awarding more than $8.9 million to support the Opioid Affected Youth Initiative, which will support states, communities, tribes and nonprofits implementing programs and strategies that treat children, youth and families impacted by the opioid epidemic.
- Morgan County was awarded $702,864 for the Morgan County Partnership. The MCP will use funding to create an initiative to improve outcomes for opioid and substance use affected youth and families in a rural West Virginia. MCP will coordinate a multi-sector collaboration among child welfare agencies, school-based mental health providers, criminal justice systems, behavioral health providers, and other community-based organizations to provide parent education, and school-based substance use prevention programming and therapeutic supports. MCP will partner with Court Appointed Special Advocates of the Eastern Panhandle and Shenandoah Valley Health Care System’s Family Resource Center to provide youth mentorship supports to justice-involved abused and neglected opioid affected youth in the foster care system, with the overarching goal to promote public safety and provide evidence-based interventions.
OJJDP’s Juvenile Drug Treatment Court Program is awarding nearly $7.9 million to jurisdictions to establish or enhance juvenile drug treatment courts and to improve court system operations and treatment services.
OJJDP is awarding $13.8 million across 14 jurisdictions under its Family Drug Court Program to build the capacity of state and local courts, units of local government and federally recognized tribal governments to implement family drug court practices. The program aims to increase collaboration with substance use treatment and child welfare systems to ensure the provision of treatment and other services that improve child, parent and family outcomes.
Once the awards are made, information about the grantees selected under each solicitation can be found online at the OJP Grant Awards Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Davenport Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man, Lucas Michael McNulty-Snodgrass, was sentenced on December 22, 2021 by United States District Court Chief Judge John A. Jarvey to 210 months in prison for Conspiracy to Distribute Methamphetamine and a Mixture and Substance Containing Fentanyl and Felon in Possession of Firearms and Ammunition. McNulty-Snodgrass was ordered to serve five years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
McNulty-Snodgrass, age 29, was identified by law enforcement as a distributor of methamphetamine and prescription pills in the Davenport area. After buying methamphetamine and fentanyl directly from McNulty-Snodgrass on multiple occasions, law enforcement obtained a search warrant of McNulty-Snodgrass’s residence in Davenport on December 2, 2020. Officers found over 200 grams of ice methamphetamine, over 110 grams of fentanyl in the form of pills, scales, and drug packaging material. Furthermore, a shotgun, two pistols, and more than 100 rounds of ammunition were discovered during the search. As a convicted felon out of Clinton County, Iowa, McNulty-Snodgrass was prohibited from owning or possessing firearms and ammunition.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department and the Drug Enforcement Administration investigated the case.
Davenport Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man, originally from Chicago, Chovontae Martise Farmer, was sentenced by United States District Court Chief Judge John A. Jarvey on December 22, 2021 to 228 months in prison for Conspiracy to Distribute Methamphetamine and Heroin and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Farmer was ordered to serve five years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
Farmer, age 30, was identified by law enforcement as a participant in an active drug conspiracy that was responsible for the large scale distribution of heroin, fentanyl purported to be heroin, and methamphetamine in the Quad Cities. Farmer is the seventh member of the conspiracy who has been prosecuted to-date. Between October 2020 and December 2020, Farmer worked with other members of the conspiracy to distribute and possess with intent to distribute methamphetamine, heroin, and fentanyl purported to be heroin. On December 10, 2020, law enforcement arrested Farmer and executed a search warrant on his hotel room. During the search, officers located distribution quantities of a heroin, fentanyl, and acetyl-fentanyl mixture; ice methamphetamine; drug packaging materials; a digital scale; $5,370 in drug proceeds; and both a loaded and stolen Sig Sauer Model P230 firearm. Farmer later admitted in a post-Miranda interview to working with other conspirators to distribute significant quantities of drugs in the Quad Cities. Farmer further admitted to obtaining the firearm found in his hotel room for protection.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Bettendorf Police Department and the Drug Enforcement Administration investigated the case.
California Man Sentenced to Life Followed by 30 Years in Prison for Federal Hate Crimes Related to 2019 Poway Synagogue Shooting and Attempted Mosque ArsonRead the Press Release
John T. Earnest, a California man who entered the Chabad of Poway on April 27, 2019, opened fire and killed one woman, injured three others, and attempted to kill 50 others, was sentenced today in the Southern District of California to life followed by 30 years in prison for his crimes.
Earnest previously pleaded guilty to a 113-count indictment that included 54 counts of violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, 55 counts of violating the Church Arson Prevention Act, and four firearms offenses.
“All people in this country should be able to freely exercise their religion without fear of being attacked,” said Attorney General Merrick B. Garland. “This defendant’s horrific crime was an assault on fundamental principles of our nation. The Justice Department is steadfast in its commitment to confronting unlawful acts of hate and to holding perpetrators of hate-fueled violence accountable.”
“Hate has no place in our society and bias-motivated violence will not be tolerated,” said Assistant Attorney General Kristen Clarke. “By committing these heinous and senseless acts of violence against Jewish and Muslim community members, this defendant violated our most basic American ideal: all persons are created equal. The Department of Justice is committed to aggressively prosecuting bias-motivated violence and will continue partnering with state and local law enforcement to ensure that those who seek to engage in violence based on bias are held accountable for their crimes.”
“Today we stand with the family of Lori Gilbert Kaye, the injured, and all who suffered as a result of the defendant’s heinous crimes,” said U.S. Attorney Randy Grossman of the Southern District of California. “The United States Attorney’s Office and our law enforcement partners reject all forms of hatred and prejudice, and we will relentlessly pursue justice for the victims of bias-motivated violence.”
According to court documents, after several weeks of planning, on the morning of April 27, 2019, Earnest drove to the Chabad of Poway synagogue, where members of the congregation were gathered for religious worship. Earnest entered the building armed with a Smith and Wesson M&P 15 assault rifle that was fully loaded with a 10-round magazine. He wore a chest rig which contained five additional magazines, each loaded with ten rounds of ammunition. Earnest opened fire, killing one person and injuring three other members of the congregation, including a then eight-year-old child. After Earnest emptied his initial magazine, several congregants rushed at Earnest. Earnest fled in his car and, shortly after, called 911 and confessed that he had “just shot up a synagogue.” Earnest was apprehended by local law enforcement who found the rifle and additional ammunition in his car.
Investigators found a manifesto written by Earnest and posted on the Internet shortly before the attack. In the manifesto, Earnest made many anti-Semitic and anti-Muslim statements, including expressing a desire to kill people because of their Jewish faith, and regret that he could not kill more.
Earnest also admitted that on March 24, 2019, he attempted to set fire to the Dar-ul-Arqam mosque in Escondido, California, because of his hatred of Muslims and the religious character of the building. Seven missionaries were asleep in the mosque, but no one was injured.
The court ordered that the federal sentence will run consecutive to the state sentence. The court further recommended that Earnest serve his term of incarceration in a federal facility.
The case is being prosecuted by Assistant U.S. Attorneys Shane Harrigan and Peter Ko, along with Deputy Chief Rose Gibson of the Civil Rights Division. The FBI, ATF and San Diego Sheriff’s Office conducted the investigation.
Butler Felon Named in Superseding Indictment Alleging Drug and Firearms Law ViolationsRead the Press Release
PITTSBURGH, PA - A resident of Butler, Pennsylvania, has been charged by superseding indictment before a federal grand jury in Pittsburgh on charges of violating federal narcotic and firearm laws, United States Attorney Cindy K. Chung announced today.
The three-count Superseding Indictment named Darnell Wynn, age 41, as the sole defendant.
According to the Superseding Indictment, on or about February 15, 2021, Wynn possessed with the intent to distribute 100 grams or more of a mixture and substance containing a detectable amount of heroin, 10 grams or more of a mixture and substance containing detectable amounts of fluorofentanyl, fentanyl, and tramadol, as well as a quantity of a mixture and substance containing detectable amounts of heroin and fentanyl. The Superseding Indictment further charged Wynn with possessing a firearm in furtherance of a drug trafficking crime. Finally, the Superseding Indictment charged Wynn with possession of a firearm and ammunition as a convicted felon.
The law provides for a term of imprisonment of life imprisonment, a fine not to exceed $8,000,0000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Butler City Police Department and the Drug Enforcement Administration conducted the investigation leading to the Superseding Indictment in this case.
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 superseding indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bettendorf Man Sentenced to Federal Prison for Drug and Ammunition ChargesRead the Press Release
DAVENPORT, Iowa – A Bettendorf man, Joshua Andrew Dewilfond, was sentenced by United States District Court Chief Judge John A. Jarvey on December 23, 2021 to 200 months in prison for Conspiracy to Distribute Methamphetamine and Felon in Possession of Ammunition. Dewilfond was ordered to serve five years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
Dewilfond, age 32, was identified by law enforcement when an anonymous tip was submitted to Crime Stoppers that alleged Dewilfond was selling drugs out of his vehicle. On September 27, 2020, law enforcement located Dewilfond driving and stopped him; he attempted to flee and was not cooperative with law enforcement. Officers noted the smell of burnt marijuana emanating from the vehicle. A probable cause search of the vehicle was completed and 988 grams of methamphetamine, ammunition, and other various prescription medication were located. The following day, agents located a vehicle registered to Dewilfond. A canine alerted on the vehicle and it was searched. More ammunition and loaded magazines were found in the vehicle. Additional ammunition, drugs, and drug paraphernalia were also located during a search of Dewilfond’s residence. As a convicted felon, Dewilfond was prohibited from owning or possessing ammunition. Dewilfond pleaded guilty to the charges brought against him on August 24, 2021.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Scott County Drug Taskforce, the Scott County Sheriff’s Office, and the Bettendorf, Iowa, Police Department.
Albuquerque man appears in federal court for bank robbery chargeRead the Press Release
ALBUQUERQUE, N.M. – Paul Ramirez, 33, of Albuquerque, appeared in federal court on Dec. 27 on a charge of bank robbery. Ramirez will remain in custody pending a detention hearing scheduled for Dec. 29.
A federal grand jury indicted Ramirez on Dec. 8. According to the indictment and other court records, on Nov. 1, Ramirez allegedly entered a Bank of the West location in Albuquerque and presented a demand note to a teller. The teller complied and Ramirez allegedly placed the money in a bag and fled the bank on a motorcycle.
Albuquerque police responding to the robbery spotted Ramirez and followed him. Ramirez allegedly proceeded to an off-road area where he discarded his helmet and backpack as well as some articles of clothing. Officers continued following Ramirez to an apartment and later arrested Ramirez after he left the apartment. At the time of the arrest, Ramirez allegedly had the money from the robbery in his possession.
An indictment is only an accusation. A defendant is considered innocent unless and until proven guilty. If convicted, Ramirez faces up to 20 years in prison.
The FBI Violent Crimes and Gangs Task Force investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Advertising Platform OpenX Agrees to Injunctive Relief and $2 Million Payment in Case Alleging Violations of Children’s Privacy LawRead the Press Release
Online advertising platform OpenX Technologies Inc. (OpenX) has agreed to a court order requiring it to pay $2 million and to be bound by injunctive relief provisions mandating its compliance with the Federal Trade Commission (FTC) Act and Children’s Online Privacy Protection Act (COPPA) Rule. This stipulated order resolves a lawsuit the government filed against OpenX in the U.S. District Court for the Central District of California.
The government alleged that OpenX’s Ad Exchange platform, which connects publishers of websites and mobile applications (apps) with advertisers who wish to display targeted advertisements, collected and maintained location data and other personal information from children under 13 without parental notice and consent and facilitated the use of that data for targeted advertising on hundreds of child-directed apps. According to the complaint, OpenX violated the FTC Act by misrepresenting its data collection policies as having been implemented with consumer consent, when such consent was frequently lacking, and also by misrepresenting its compliance with the COPPA Rule. The complaint alleges that OpenX violated the COPPA Rule by failing to provide notice to parents and by failing to obtain verifiable parental consent before collecting personal information from children or allowing third-party advertising networks to do so.
“Americans should be able to visit websites and use mobile apps with confidence that their privacy — and their children’s privacy — is being protected,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “The Department of Justice and Federal Trade Commission are committed to ensuring that the digital advertising industry complies with federal privacy law.”
“OpenX secretly collected location data and opened the door to privacy violations on a massive scale, including against children,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “Digital advertising gatekeepers may operate behind the scenes, but they are not above the law.”
The stipulated order requires OpenX to pay a civil penalty of $2 million and bars OpenX from committing future violations of the COPPA Rule or making related misrepresentations. It also prohibits OpenX from collecting location information without first obtaining express affirmative consent, mandates the deletion of data that OpenX collected in the past and requires OpenX to maintain a comprehensive program to protect the privacy of data collected from consumers and their devices.
The FTC referred this case and proposed stipulated order to the Department of Justice. The case was handled by attorneys in the Civil Division’s Consumer Protection Branch, including Trial Attorneys Zachary Dietert and David Crockett and Assistant Director Lisa Hsiao, in conjunction with attorneys at the FTC’s Division of Privacy and Identity Protection.
Monday 27 December 2021
U.S. Attorney Announces the Appointment of Chief Public Information OfficerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, today announced the appointment of Nicholas V. Biase as the Office’s Chief Public Information Officer, effective January 1, 2022.
Mr. Biase has been with the Office as a senior public affairs officer and director of social media in the Public Information Office. Prior to his tenure at the U.S. Attorney’s Office, Mr. Biase was an agent, investigator, and director with the Essex County Prosecutor’s Office.
In making the appointment, U.S Attorney Damian Williams said: “Over his 15-plus years of dedicated service, Nick has been a vital liaison for an Office in the media capital of the world, and he has been a trusted counselor and confidante to every U.S. Attorney he has served. Nick has also developed close working relationships with our law enforcement partners, and he is respected by the press corps for his professionalism, integrity, and candor. He has been a leader in our press office for years, and it is my pleasure to formally announce his appointment as Chief Public Information Officer.”
Mr. Williams added: “I also want to thank Jim Margolin, the outgoing Chief Public Information Officer, who is retiring after more than eight years of outstanding service to the Office, and nearly 34 years of dedicated public service. We will miss him dearly, and wish him the best as he embarks on his exciting new chapter.”
South Carolina Man Sentenced to Federal Prison for Child Pornography ChargeRead the Press Release
DAVENPORT, Iowa – An Aiken, South Carolina man, Travis Lee McKie, age 41, was sentenced on Wednesday, December 22, 2021, by United States District Court Chief Judge John A. Jarvey to 325 months in prison for Production of Child Pornography. McKie was ordered to serve 10 years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.
McKie was incarcerated at the Lee Correctional Institution in Bishopville, South Carolina when he obtained a cellular phone and communicated with a minor victim located in the Southern District of Iowa. McKie persuaded and induced the victim to send sexually explicit images of themselves to McKie—oftentimes with derogatory remarks.
McKie came to law enforcement’s attention after receiving a Cybertip from Facebook regarding uploaded sexually explicit material depicting minors. Law enforcement obtained several search warrants that ultimately identified McKie as the suspect. Law enforcement then obtained a search warrant for McKie’s Google account, which revealed stored images depicting child pornography produced by the victim. McKie pleaded guilty to the offense on August 11, 2021.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Secret Service investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Scott Erik Asphaug Appointed to Serve as U.S. AttorneyRead the Press Release
PORTLAND, Ore.—Attorney General Merrick B. Garland has appointed Scott Erik Asphaug to serve as U.S. Attorney for the District of Oregon in an interim capacity, effective December 25, 2021.
Asphaug, who was previously appointed to serve as Acting U.S. Attorney for the District of Oregon beginning February 28, 2021, will serve as U.S. Attorney for up to 120 days or until the confirmation of Oregon’s next presidentially-appointed U.S. Attorney by the U.S. Senate. If after 120 days, a new presidentially-appointed U.S. Attorney has not been confirmed by the U.S. Senate, Marco A. Hernández, Chief U.S. District Judge for the District of Oregon, will appoint a U.S. Attorney to serve until such confirmation occurs.
“It is a privilege to serve Oregonians as U.S. Attorney and I look forward to continuing to do so for the next four months or until the confirmation of Oregon’s next presidentially-appointed U.S. Attorney,” said U.S. Attorney Asphaug. “During this time of transition, our office continues to focus intently on our ongoing mission of protecting the safety and wellbeing of all Oregonians.”
Asphaug is a 16-year veteran of the Department of Justice, joining the U.S. Attorney’s Office in October 2005. He has held several leadership positions in the district including First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, Assistant U.S. Attorney, Mortgage Fraud Coordinator, Discovery Coordinator, and Professional Responsibility Officer. Asphaug previously served as a line Assistant U.S. Attorney in both the Civil and Criminal Divisions.
Prior to his federal service, Asphaug was a Senior Assistant and Deputy County Attorney in the Multnomah County Attorney’s Office, where he handled tort and medical malpractice litigation. He also served as the advisory attorney to the Multnomah County Sheriff.
Before entering government service, Asphaug spent several years in private practice focused on criminal litigation. During this time, he was empaneled by the Portland Police Officer’s Union to represent officers during use of force administrative and grand jury investigations.
Asphaug received his bachelor’s degree in history from the University of Minnesota in 1979 and his law degree from the Northwestern School of Law at Lewis and Clark College in 1983.
USA Scott Erik AsphaugMont Vernon Attorney Convicted of Engaging in Multimillion Dollar Fraud SchemeRead the Press Release
CONCORD – Acting United States Attorney John J. Farley announced that Joseph A. Foistner, 67, of Mont Vernon, was found guilty on Thursday of four counts of bank fraud, as well as charges of wire fraud, money laundering, and making misrepresentations during bankruptcy proceedings. The verdict was returned by Senior U.S. District Judge Paul Barbadoro on Thursday, December 23, 2021, following a two-week bench trial.
According to exhibits and witness testimony during the trial, Foistner used fraudulent means to apply for over $8 million in loans from five different financial institutions, laundered money, and made material misrepresentations during bankruptcy proceedings between 2015 and 2018. Foistner, at the time of the scheme, was a licensed attorney in Massachusetts. He did not have any paying clients and earned no income through his law firm. In order to obtain millions of dollars in loans from multiple financial institutions, Foistner provided banks with misleading documents that suggested that he was operating a lucrative law firm. For example, he claimed that he was a “seasoned attorney” with international clients and that his firm earned over a million dollars in annual income. In fact, all the firm’s purported income was based upon bogus, unpaid invoices the firm submitted to entities that the defendant controlled, including bankrupt entities. The defendant also made other false statements to obtain bank loans, including lying about whether he was involved as a party to any lawsuits and denying that he had an interest in other companies. He also falsely represented that he had a salary by mischaracterizing loan proceeds as a salary. In one of the bank fraud schemes, the defendant submitted false information to obtain a loan by claiming falsely that his wife was earning over $200,000 per year as a paralegal. Each of the loans made to Foistner were backed by either the Department of the Veterans Affairs or the Small Business Administration.
The evidence further showed that Foistner committed several crimes during Chapter 7 bankruptcy court proceedings in 2017 and 2018. He made false representations by falsely denying that he held or controlled property owned by others when he actually controlled funds that were held in the name of a business. He also made false statements under oath by lying about what happened to the proceeds of one of the fraudulent loans and lying about not knowing the location of a piece of real estate that had been purchased in part with funds he borrowed and had subsequently funneled into bank accounts not in his name.
Foistner is scheduled to be sentenced on April 4, 2022.
“While no one is entitled to commit fraud, this defendant’s crimes were particularly egregious because they were committed by an attorney,” said Acting U.S. Attorney Farley. “The evidence in this case demonstrated that Foistner engaged in a shocking pattern of fraudulent and deceitful conduct to obtain millions of dollars from financial institutions and that he told a host of lies in his efforts to further his scheme and cover his tracks during bankruptcy proceedings. With this guilty verdict, Foistner finally is being held accountable for his lengthy pattern of lying and manipulation. I am grateful to all of the federal agents and prosecutors who worked hard to investigate and prosecute this significant fraud case.”
“Joseph Foistner took advantage of programs that were designed to help veterans achieve home ownership, and small businesses expand and develop. In fraudulently collecting millions of dollars, his lies and deceit have not only hurt himself, but every citizen whose tax dollars support these federally funded programs,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI is determined to work with our partners to hold anyone who commits such fraud accountable.”
This matter was investigated by the Federal Bureau of Investigation, the Office of Inspector General of the Department of Veterans Affairs, and the Office of Inspector General of the Small Business Administration. The case was prosecuted by Assistant U.S. Attorneys Charles L. Rombeau, Seth R. Aframe and Special Assistant U.S. Attorney Alexander S. Chen. Former Assistant U.S. Attorney Robert Kinsella, Assistant U.S. Attorneys John S. Davis and Kasey Weiland previously worked on this matter.
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Mexican National Sentenced to 12 Years for Conspiracy to Distribute More Than 2,600 Kilos of CocaineRead the Press Release
KANSAS CITY, Mo. – A Mexican national was sentenced in federal court today for his role in a conspiracy that distributed more than 2,600 kilograms of cocaine in the Kansas City metropolitan area.
Jesus Salvador Campoy-Estrada, also known as “Chava” and “Chavita,” 27, of Kansas City, Kansas, was sentenced by U.S. Chief District Judge Beth Phillips to 12 years in federal prison without parole. The court also ordered Campoy-Estrada to forfeit to the government $12,150,000, which represents the proceeds of illegal drug trafficking.
On Dec. 19, 2019, Campoy-Estrada pleaded guilty to one count of conspiracy to distribute cocaine and one count of money laundering. He is the final defendant among 13 defendants to be sentenced in this case.
When Campoy-Estrada was arrested, law enforcement searched his residence and found $111,995 that he admitted was illicit drug proceeds, marijuana, a drug ledger, and a loaded XD 9mm semi-automatic handgun.
Campoy-Estrada was a primary organizer in a drug-trafficking organization that distributed substantial amounts of cocaine from Mexico in the Kansas City metropolitan area from October 2013 to Nov. 15, 2018. Campoy-Estrada admitted that he was personally responsible for the distribution of well in excess of 450 kilograms of cocaine during his involvement with the larger conspiracy. At one point, he distributed approximately 10 to 20 kilograms of cocaine each week.
Campoy-Estrada obtained substantial sums of money from his involvement in the drug-trafficking conspiracy, which he converted to other forms of property, such as real estate, in an effort to conceal the illicit nature of the drug proceeds.
Campoy-Estrada received cocaine from the leader of the conspiracy, co-defendant Jose Luis Armendariz-Rascon, also known as “Uncle” or “Rambo,” 41, of Kansas City, Kan. Campoy-Estrada then sold cocaine to other cocaine dealers, including co-defendant Howard Christopher Walters, also known as “Chris,” 44, of Lee’s Summit, Missouri. Investigators intercepted several telephone calls in which Campoy-Estrada and Walters discussed the sale of multiple kilograms of cocaine to Walters. Law enforcement also intercepted many other wire and electronic communications between Campoy-Estrada and persons he sold cocaine to during the course of the conspiracy.
Armendariz-Rascon was sentenced on May 21, 2021, to 15 years in federal prison without parole. Walters was sentenced on April 21, 2021, to 25 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy. The court also ordered Armendariz-Rascon to forfeit to the government more than $56 million, which represents the proceeds of illegal drug trafficking.
Armendariz-Rascon was in charge of coordinating the transportation of loads of cocaine from the El Paso, Texas, area to the Kansas City metropolitan area for distribution. Armendariz-Rascon would then coordinate the collection of bulk cash that was sent back to El Paso as payment for the cocaine.
Otilio Zaragoza-Navarrette, 65, of El Paso, delivered cocaine to Jose Armendariz-Rascon as well as to Campoy-Estrada and Miguel Armendariz-Rascon, 33, a citizen of Mexico residing in Olathe, Kan. Zaragoza-Navarrette and Miguel Armendariz-Rascon have pleaded guilty and been sentenced.
Zaragoza-Navarette also transported illicit drug proceeds from the drug-trafficking organization back to Texas and/or to Mexico. Zaragoza-Navarrette hid the cocaine and/or the cash proceeds inside of five-gallon gas cans and anti-freeze jugs on his commercial semi-tractor trailer. In one instance, law enforcement officers seized nearly $500,000 from Zaragoza-Navarrette, who was transferring the illicit drug proceeds in an operation orchestrated by Armendariz-Rascon.
This case was prosecuted by Assistant U.S. Attorneys Trey Alford and Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.
Organized Crime Drug Enforcement Task Forces
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
John E. Kuhn, Jr. Appointed U.S. Attorney for the District of AlaskaRead the Press Release
ANCHORAGE – Attorney General Merrick Garland appointed John Kuhn as U.S. Attorney for the District of Alaska effective December 26, 2021, pursuant to 28 U.S.C. § 546.
Kuhn most recently served with the Executive Office for United States Attorneys since 2018 in various roles, including National Heroin and Opioid Coordinator, National Controlled Substances Coordinator, and Acting Assistant Director in the Office of Legal Programs.
“I’m honored to serve as the United States Attorney in the great state of Alaska. The dedicated prosecutors and staff in the United States Attorney’s Office for the District of Alaska are some of the best in the nation, and together we will continue to fulfill our mission, protecting the people of Alaska and the interests of the United States.”
Before joining the Executive Office, Kuhn served as United States Attorney for the Western District of Kentucky for nearly three years, from December 2014 to September 2017. During his tenure as U.S. Attorney, Kuhn was deeply engaged in combatting the opioid crisis, developing a number of effective initiatives and programs. Before he became U.S. Attorney, Kuhn served for more than four years as First Assistant U.S. Attorney, supervising the Criminal, Civil, Appellate, and Administrative Divisions of the Office.
Kuhn has more than 31 years of legal experience and 24 years with the Department of Justice. He served as an Assistant U.S. Attorney in both the Civil and Criminal Divisions of the Western District of Kentucky U.S. Attorney’s Office, where he prosecuted narcotics, violent crime, and white-collar offenses. In addition to his extensive trial work, Kuhn argued appeals before the Sixth Circuit Court of Appeals and served as a hearing officer in Washington, D.C. and New York City for the September 11th Victims Compensation Fund, a federal program established for victims of the September 11, 2001 terrorist attacks.
Mr. Kuhn graduated cum laude from the University of Louisville School of Law and earned his undergraduate degree from the University of Kentucky.
Kuhn replaces former Acting U.S. Attorney Bryan Wilson, who served in that role since March 1, 2021. Wilson is returning to his role as the First Assistant U.S. Attorney where he has served since November 2017.
For more information about the U.S. Attorney’s Office for the District of Alaska, please visit https://www.justice.gov/usao-ak
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Japanese Language Version - United States Files Civil Action to Return $150 Million in Embezzled Funds to Sony; FBI Tracks Money to BitcoinRead the Press Release
下記の日本語文書は参考のための仮翻訳で、正文は英文 です。
司法省
カリフォルニア州南部地区連邦検事局
2021年12月20日（月）
即時のプレスリリース
米政府が横領金1億5000万ドルをソニーに返金するため民事訴訟を起こし、FBIが資金をビットコインに追跡
担当連絡先
オレクサンドラ・ジョンソン検事補 (619) 546-9769
アーロン・P・アルンゼン検事補 (619) 546-8384
プレスリリース要旨 ― 2021年12月20日
サンディエゴ ― 米政府は本日、東京に本社があるソニーグループ株式会社の子会社から詐取され、その後、米連邦捜査局(FBI)による窃盗事件捜査中に法執行機関によって差し押さえられ1億5400万ドルを超える資金を保全し、最終的に返還するため連邦裁判所に提訴した。
米国は、当該資産に対するソニーの利害保全を目的として、カリフォルニア州南部地区連邦裁判所に民事没収を申し立てた。この資産は、2021年5月に従業員が詐取した上で、現在の相場で1億8000万ドル以上に相当する3879ビットコイン超に換金したとされる。FBIの捜査に基づき、2021年12月1日に法執行機関によって差し押さえられた。
政府の申し立てによると、東京のソニー生命保険株式会社（ソニー生命）社員の石井伶は、会社が会社名義の金融口座間で資金移動をしようとした際に、1億5400万ドルを流用したとされる。申し立てはまた、石井が取引指示を改ざんすることで、当該資金をカリフォルニア州ラホヤ所在の銀行にある自身が管理する口座へ送金し、その後間を置かず暗号通貨であるビットコインに換金した、と述べている。
FBIの捜査で明らかとなった証拠に基づき、2021年6月、カリフォルニア州南部地区連邦裁判所の下級判事によって差し押さえ令状が許可された。裏付けとなる宣誓供述書で陳述されたように、法執行機関は転送されたビットコインを追跡し、ソニー生命の子会社から詐取された資金額に相当する3879.16ビットコインが特定のビットコインアドレスに送金され、後にオフラインの暗号通貨コールドウォレットに移動されていたことを特定した。
FBIは、ソニー及びシティバンクから多大な支援を受けつつ、警察庁、警視庁、東京地方検察庁、最高検察庁・先端犯罪検察ユニット (JPEC) と連携し、引き続き捜査を行った。このような連携した取り組みにより、捜査員らは、ビットコインアドレスのアクセスに必要なパスワードにほぼ相当する“秘密鍵”を入手した。この窃盗に起因する全てのビットコインは回収され、完全に保全された。石井は、日本で刑事告訴されている。
ランディ・S・グロスマン連邦検事代理は、以下のように述べた。「我々の目的は盗まれた資金を、この大胆な窃盗事件の被害者に返還することであり、本日とられた措置は、その目的達成に資するものである。本事件は、FBI捜査員と日本の法執行機関が、仮想通貨の追跡に連携して取り組んだ好例である。犯罪者が留意すべきことである。不正に手にした収益を法執行機関から隠匿するために暗号通貨を当てにすることはできない。米国は犯罪を未然に防ぎ、盗まれた資金を取り戻すため、国際的なパートナー機関と幅広く連携していく」。グロスマンは、検察チーム、FBI、日本の当局に対して、本事件への素晴らしい仕事に感謝した。
スーザン・ターナーＦＢＩ支局長は、「FBIは2つの極めて大きな理由により、詐取された資金の回収ができた。第一に、ソニーとシティバンクは窃盗を認知した直後に法執行機関に通知・協力し、FBIも両社と連携し資金の追跡を行った。第二に、今回の場合は日本にあたるが、FBIが海外に設置した法務官事務所および海外で構築した既存の関係性を通じて国際的に築いた資源により、法執行機関が連携し、容疑者を特定できた。FBIの持つ専門技術により、詐取された資金を被告の暗号通貨ウォレット内で発見し、差し押さえすることが可能になった」と述べた。
カリフォルニア州南部地区連邦検事局の大規模詐欺・公務汚職課と資産回復室は、司法省刑事部の資金洗浄・資産回復課およびコンピューター犯罪・知的財産課から多大な支援を受け、訴訟手続きを実施している。司法省国際室も捜査支援を提供した。FBIも本事件を引き続き捜査している。