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14 February 2022
Maryland Nuclear Engineer Pleads Guilty to Espionage-Related OffenseRead the Press Release
WASHINGTON – A Maryland man pleaded guilty today to conspiracy to communicate restricted data related to the design of nuclear-powered warships to a person he believed was a representative of a foreign nation.
Jonathan Toebbe, 43, of Annapolis, was arrested on Oct. 9, 2021, after he placed an SD card at a pre-arranged “dead drop” at a location in West Virginia. According to court documents, at the time of his arrest, Toebbe was an employee of the Department of the Navy who served as a nuclear engineer and was assigned to the Naval Nuclear Propulsion Program, also known as Naval Reactors. He held an active national security clearance through the Department of Defense, giving him access to “Restricted Data” within the meaning of the Atomic Energy Act. Restricted Data concerns design, manufacture or utilization of atomic weapons, or production of Special Nuclear Material (SNM), or use of SNM in the production of energy – such as naval reactors. Toebbe worked with and had access to information concerning naval nuclear propulsion including information related to military sensitive design elements, operating parameters and performance characteristics of the reactors for nuclear powered warships.
“Among the secrets the U.S. government most zealously protects are those related to the design of its nuclear-powered warships,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division. “The defendant was entrusted with some of those secrets and instead of guarding them, he betrayed the trust placed in him and conspired to sell them to another country for personal profit. The Department of Justice will vigilantly protect the American people and our nation’s security by investigating and prosecuting those who violate their Constitutional oath and abuse their positions for personal gain.”
“The agents and prosecutors handling this matter are to be commended for their efforts,” said U.S. Attorney William Ihlenfeld for the Northern District of West Virginia. “They are talented and tenacious, and their work in this case has helped to make our country safer.”
“There’s a message here for anyone who would sell out America’s secrets,” said Assistant Director Alan E. Kohler, Jr. of the FBI’s Counterintelligence Division. “The FBI and its partners will use all our investigative techniques to bring you to justice.”
“The FBI is relentless in its efforts to uncover those who seek to do our nation harm by targeting our most valuable secrets,” said Special Agent in Charge Mike Nordwall of the FBI’s Pittsburgh Field Office. “This case is an example of the hard work and diligence of the FBI and our federal partners to neutralize and hold accountable those people who threaten our national security.”
“Today Jonathan Toebbe admitted that he violated federal law when he conspired with his wife to sell sensitive government information to a foreign power,” said U.S. Attorney Cindy Chung for the Western District of Pennsylvania. “My office will continue to work with our law enforcement partners to identify and hold accountable those who would pursue financial gain at the expense of their solemn duty to protect our country’s closely held secrets.”
“The overarching mission of the Naval Criminal Investigative Service (NCIS) is to prevent terrorism, reduce crime and protect secrets, with a very high priority on protecting vital information such as the design and operation of nuclear-powered warships,” said Special Agent in Charge Michelle Kramer of the NCIS Office of Special Projects. “It’s this kind of technology that provides the Department of the Navy with capabilities unmatched by any of America’s adversaries. NCIS remains committed to protecting that information to ensure the readiness of the US Navy and Marine Corps.”
According to his plea, in April 2020, Toebbe sent a package to a foreign government, listing a return address in Pittsburgh, Pennsylvania, containing a sample of Restricted Data and instructions for establishing a covert relationship to purchase additional Restricted Data. Toebbe began corresponding via encrypted email with an individual whom he believed to be a representative of the foreign government. The individual was really an undercover FBI agent. Toebbe continued this correspondence for several months, which led to an agreement to sell Restricted Data in exchange for thousands of dollars in cryptocurrency.
On June 8, 2021, the undercover agent sent $10,000 in cryptocurrency to Toebbe as “good faith” payment. Shortly afterwards, on June 26, Toebbe serviced a dead drop by placing an SD card, which was concealed within half a peanut butter sandwich and contained military sensitive design elements relating to submarine nuclear reactors, at a pre-arranged location. After retrieving the SD card, the undercover agent sent Toebbe a $20,000 cryptocurrency payment. In return, Toebbe emailed the undercover agent a decryption key for the SD Card. A review of the SD card revealed that it contained Restricted Data related to submarine nuclear reactors. On Aug. 28, Toebbe made another “dead drop” of an SD card in eastern Virginia, this time concealing the card in a chewing gum package. After making a payment to Toebbe of $70,000 in cryptocurrency, the FBI received a decryption key for the card. It, too, contained Restricted Data related to submarine nuclear reactors. The FBI arrested Toebbe and his wife on Oct. 9, after he placed yet another SD card at a pre-arranged “dead drop” at a second location in West Virginia.
Toebbe pleaded guilty to count one of the indictment charging him with conspiracy to communicate Restricted Data which carries a maximum statutory penalty of up to life in prison, a fine up to $100,000, and term of supervised release not more than five years. Pursuant to his plea agreement, Toebbe will serve a minimum of 151 months, or 12 and a half years, in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and NCIS are investigating the case.
Trial Attorneys Matthew J. McKenzie and S. Derek Shugert of the National Security Division's Counterintelligence and Export Control Section, Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher of the Northern District of West Virginia, and Special Assistant U.S. Attorney Jessica Lieber Smolar for the Western District of Pennsylvania are prosecuting the case.
Maryland Accountant Sentenced to Three Years in Prison for Preparing False Tax ReturnsRead the Press Release
A Maryland woman was sentenced today to three years in prison for preparing false tax returns for District of Columbia residents as part of a nationwide tax fraud scheme.
According to court documents and evidence presented at trial, Charese Johnson, of Aberdeen, prepared 13 false income tax returns that collectively sought more than $6.6 million in refunds from the IRS. Between 2014 and 2016, scheme participants held seminars throughout the country where they promoted the purported ability of taxpayers to utilize their mortgages and other debts to generate tax refunds. Information was then collected from clients and provided to Johnson and others for use in the preparation of false returns. Those returns falsely claimed that banks and other financial institutions had withheld large amounts of income taxes from the clients, which entitled the clients to refunds. In reality, the financial institutions had not paid any income to or withheld any taxes from the clients.
Johnson tried to conceal her role in the scheme by convincing one of her clients to mislead the IRS about Johnson’s involvement in the preparation of the client’s tax returns.
On July 1, 2021, Johnson was convicted at trial of three counts of helping others prepare false tax returns. Thus far, more than a dozen other individuals around the country have been charged or convicted for their involvement in this multimillion-dollar scheme.
In addition to the term of imprisonment, U.S. District Judge Randolph D. Moss ordered Johnson to serve one year of supervised release.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Jeffrey McLellan and George Meggali, and former Trial Attorney Abigail Burger Chingos, of the Tax Division prosecuted the case.
Marshall County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Mitchell R. Arbogast, of Wheeling, West Virginia, has admitted to a firearms charge, United States Attorney William Ihlenfeld announced.
Arbogast, 60, pleaded guilty today on one count of “Unlawful Possession of a Firearm.” Arbogast, a person prohibited from having a firearm because of a prior conviction, admitted to having a double-barrel 20-gauge Chinese shotgun, a 12-gauge shotgun, a 6-shot .22 caliber revolver, and a .380 semi-automatic pistol in March 2021 in Marshall County.
Arbogast faces up to 10 years of incarceration and a fine of up to $250 ,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Sheriff’s Office investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Man Indicted for Possessing U.S. Postal Service Key to Steal U.S. Mail from Postal MailboxesRead the Press Release
NEW ORLEANS, LOUISIANA -- U.S. Attorney Duane A. Evans announced today that WAYNE C. WALKER, age 24, of New Orleans, Louisiana, was indicted on February 11, 2022 for Unlawful Possession and Use of a United States Postal Service “arrow” key used by Postal Service employees to access authorized mail receptacles in violation of Title 18, United States Code, Section 1704 and Unlawful Possession of approximately 80 pieces of stolen United States Mail that had been deposited into authorized mail receptacles in violation of Title 18, United States Code, Section 1708.
According to the indictment, on January 26, 2022, WALKER was arrested while in possession of the United States Postal Service “arrow” key and the stolen mail. If convicted, WALKER faces a maximum penalty of ten (10) years imprisonment on the count of unlawful possession of the United States Postal Service mail key and a maximum penalty of five (5) years imprisonment on the count of possession of stolen mail, both counts to be followed by up to three (3) years of supervised release, a fine of up to a $250,000 fine, and a $100 mandatory special assessment fee.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, and the Jefferson Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Jon Maestri and G. Dall Kammer are in charge of the prosecution.
Major Columbus Area Methamphetamine Trafficker Pleads GuiltyRead the Press Release
COLUMBUS, Ga. – A known methamphetamine trafficker considered a major drug distributor in the Columbus community has pleaded guilty to his crimes in federal court.
Brandon Juwan Jones, 37, of Columbus, pleaded guilty to possession of methamphetamine before U.S. District Clay Land on Feb. 10. Jones faces a maximum 20 years in prison to be followed by at least three years of supervised release and a $1,000,000 fine. Sentencing is scheduled for May 10.
“The arrest and conviction of Brandon Jones takes a major supplier of some of the most addictive and deadly illicit drugs to the Columbus community off the streets,” said U.S. Attorney Peter D. Leary. “I want to thank the dedicated men and women at the DEA, the Muscogee County Sheriff’s Office and the Harris County Sheriff’s Office for their ceaseless commitment to making Middle Georgia a safer place.”
“This criminal network posed a clear and present danger to the Columbus area,” said Robert J. Murphy, the Special Agent in Charge of the DEA Atlanta Field Division. “The removal of their ‘ringleader’ makes these communities much safer. This guilty plea illustrate how success can be achieved through spirited law enforcement efforts.”
“The takedown of this organized criminal drug enterprise and the federal prosecution of the leader of this organization is a prime example of our current strategy to identify, target and remove impact offenders responsible for the violence and the demise of the quality of life within Muscogee County,” said Muscogee County Sheriff Greg Countryman. “By taking a one neighborhood at a time approach, the Muscogee County Sheriff's Office will continue to work with our local, state and federal partners in the relentless pursuit of every gang member that engages in gang-related violence and organized crime. On behalf of the citizens of Muscogee County, I want to thank the U.S. Attorney's Office for the Middle District of Georgia, the U.S. Drug Enforcement Administration and the deputies from the Muscogee County Sheriff’s Office and Harris County Sheriff’s Office for their work on such a successful operation.”
“With this guilty plea and sentencing of Brandon Jones by the U.S. Middle District Federal Court, a major drug player is taken off the streets of our Chattahoochee area,” said Harris County Sheriff Mike Jolley. “This shows how local and federal law enforcement agencies can work together to accomplish the mission of drug enforcement. As Sheriff of Harris County, I know this is just a small step on the ‘old war against drugs’; however, every step counts and we cannot give up the fight.”
According to court documents, Jones was identified by multiple Drug Enforcement Administration (DEA) sources in 2019 as a major methamphetamine distributor in the Columbus community. In the ensuing months, agents conducted surveillance and other investigative actions, including an undercover controlled buy operation with Jones. Law enforcement executed multiple search warrants on various properties associated with Jones’ drug trafficking network in Jan. 2020. Agents discovered more than four kilograms of methamphetamine, as well as heroin, cash and multiple firearms and ammunition. Jones was taken into custody and admitted to agents that the drugs belonged to him and that he felt that his arrest was imminent after being advised he had been under investigation for several months. Jones has multiple prior felony convictions, including felony convictions for trafficking methamphetamine, sale of methamphetamine, possession of a firearm during a crime, theft by receiving stolen property and bribery of a government officer.
This case was investigated by DEA, the Muscogee County Sheriff’s Office and the Harris County Sheriff’s Office. Assistant U.S. Attorney Christopher Williams is prosecuting the case.
MS-13 Leader Sentenced to 40 Years in Prison for RICO Conspiracy and Murder of TeenagerRead the Press Release
BOSTON – A leader of MS-13 was sentenced today in federal court in Boston for RICO conspiracy and his participation in the July 2018 murder of a teenage boy in Lynn, who suffered at least 32 sharp force trauma wounds consistent with being stabbed repeatedly, along with blunt force injuries to the head.
Erick Lopez Flores, a/k/a “Mayimbu,” 33, of Lynn, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 40 years in prison and five years of supervised release. In July 2020, Lopez Flores pleaded guilty to one count of conspiracy to conduct enterprise affairs through a pattern of racketeering activity, also known as RICO conspiracy, on behalf of the MS-13 gang. As part of his plea, Lopez Flores also admitted that he participated in the 2018 murder of a teenager, who was murdered with extreme atrocity and cruelty, and with deliberate premeditation, in violation of Massachusetts law.
MS-13, or La Mara Salvatrucha, is a transnational street gang operating in Massachusetts and numerous other states, as well as countries such as El Salvador, Honduras and Guatemala. MS-13 gang members often commit acts of extreme violence against suspected rivals, those suspected of cooperating with law enforcement, and others who the gang views as a threat. In recent years, dozens of MS-13 members have been convicted of RICO conspiracy and other serious felonies in the District of Massachusetts.
MS-13 is organized into “cliques” or branches operating in local territories. Lopez Flores belonged to the “Sykos Locos Salvatrucha” clique of MS-13, which operated in the cities of Lynn, Chelsea and other parts of Massachusetts. Lopez Flores was one of the leaders of the Sykos clique and had been an MS-13 member since approximately 2006.
In November 2018, Lopez Flores and five other MS-13 members of the Sykos clique were indicted following an investigation into the murder of a teenage boy, whose body was found in a park in Lynn on Aug. 2, 2018. The six defendants in this case included five participants in the murder, as well as one longstanding member of the Sykos clique. In a related case, the government charged a juvenile co-conspirator who was the sixth person involved in the murder.
The evidence in this case, which included a recording of one of Lopez Flores’ co-defendants describing the murder in graphic detail, revealed that Lopez Flores and five other MS-13 gang members murdered the victim based on their mistaken belief that he may have been assisting law enforcement.
On July 30, 2018, the gang members lured the victim to a playground and at least four of them were armed with knives. The group pretended to be friendly with the unsuspecting victim and took him to a wooded area of the park. At the scene, the gang members surrounded the victim and repeatedly stabbed him to death. At least four of the six assailants stabbed the victim, while Lopez Flores and a juvenile gang member assisted at the scene. Lopez Flores authorized the murder in his capacity as one of the leaders of the clique. After killing the victim, the gang members left his body in the wooded area of the public park. An autopsy revealed that the victim suffered at least 32 sharp force trauma wounds consistent with being stabbed repeatedly, along with blunt force injuries to the head.
All six defendants indicted in this case, along with the juvenile charged in the related case, have pleaded guilty. Lopez Flores is the first defendant to be sentenced. Jonathan Tercero Yanes, a/k/a “Desalmado,” is scheduled to be sentenced on Feb. 15, 2022 for RICO conspiracy and his participation in the July 2018 murder; Henri Salvador Gutierrez, a/k/a “Perverso,” is scheduled to be sentenced on Feb. 16, 2022 for RICO conspiracy and his participation in the July 2018 murder, as well as his participation in a December 2016 murder in East Boston; and Djavier Duggins, a/k/a “Haze,” is scheduled to be sentenced for RICO conspiracy on Feb. 17, 2022. Sentencing hearings for the two remaining co-defendants, Marlos Reyes and Eliseo Vaquerano Canas, have not yet been scheduled by the Court.
First Assistant United States Attorney Joshua S. Levy; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Essex County District Attorney Jonathan W. Blodgett; Suffolk County District Attorney Kevin Hayden; Acting Boston Police Commissioner Gregory Long; and Lynn Police Chief Christopher Reddy made the announcement. Assistant U.S. Attorneys Kunal Pasricha and Kaitlin O’Donnell of the Criminal Division prosecuted the case.
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.
Local man sent to prison for targeting children via InstagramRead the Press Release
CORPUS CHRISTI, Texas – A 31-year-old Corpus Christi resident has been ordered to federal prison for coercing a child via the internet in order to have sex with her, announced U.S. Attorney Jennifer B. Lowery.
Steven Lopez pleaded guilty Nov. 8, 2021.
Today, U.S. District Court Judge Drew B. Tipton ordered him to serve a total of 151 months in federal prison. Lopez will also serve the rest of his life on supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the internet. In imposing the sentence, the court also heard evidence that Lopez continued to communicate with minors while awaiting further criminal proceedings. He must also register as a sex offender and pay restitution to identified victims.
In July 2019, law enforcement learned Lopez had sexually abused a minor and eventually apprehended him. At that time, they seized his cell phone which revealed that Lopez used social media to target a minor for the purpose of having sex. Lopez had also attempted to hide his criminal conduct by deleting certain messages. However, forensic analysis yielded multiple instances of incriminating content.
Homeland Security Investigations conducted the investigation with the assistance of the Corpus Christi Police Department.
Assistant U.S. Attorneys Molly K. Smith and Dennis E. Robinson prosecuted the case, which was brought as part of Project Safe Childhood (PSC), a nationwide initiative the Department of Justice (DOJ) launched in May 2006 to combat the growing epidemic of child sexual exploitation and abuse. U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section leads PSC, which marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children and identifies and rescues victims. For more information about PSC, please visit DOJ’s PSC page. For more information about internet safety education, please visit the resources link on that page.
Local felon admits to illegally possessing RugerRead the Press Release
CORPUS CHRISTI, Texas – A 40-year-old Corpus Christi resident has pleaded guilty to illegally possessing a firearm as a felon, announced U.S. Attorney Jennifer B. Lowery.
Pat Anthony Lacour admitted that on March 15, 2019, he was in possession of a loaded Ruger 9mm caliber, semi-automatic pistol.
On that date, law enforcement pulled him over for a traffic violation. As they approached his vehicle, he appeared to be concealing something in the front passenger side. They also smelled burnt marijuana and asked Lacour to step out of the car.
Authorities then searched the vehicle and found a Ruger 9mm caliber, semi-automatic pistol under the passenger seat. It was loaded with seven rounds of ammunition.
Lacour is a convicted felon for robbery, aggravated assault, assault family violence and deadly conduct discharging a firearm. As such, he is prohibited from possessing firearms or ammunition per under federal law.
U.S. District Judge Drew B. Tipton will impose sentencing on May 11, 2022. At that time, Lacour faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He has been and will remain in custody pending sentencing.
The Bureau of Alcohol, Tobacoo, Firearms and Explosives conducted investigation with the assistance of Corpus Christi Police Department. Assistant U.S. Attorney Christopher Marin prosecuted the case.
L.A. Man Sentenced to 20 Years in Federal Prison for $650 Million Ponzi Scheme that Falsely Claimed to License Foreign Film RightsRead the Press Release
LOS ANGELES – A Los Angeles man was sentenced today to 240 months in federal prison for operating a Ponzi scheme that raised at least $650 million with bogus claims that investor money would be used to acquire licensing rights to films that HBO and Netflix purportedly had agreed to distribute abroad.
Zachary Joseph Horwitz, 35, of the Beverlywood neighborhood of Los Angeles, was sentenced by United States District Judge Mark C. Scarsi, who also ordered Horwitz to pay $230,361,884 in restitution to his victims. Horwitz pleaded guilty in October 2021 to one count of securities fraud.
“Defendant Zachary Horwitz portrayed himself as a Hollywood success story,” prosecutors argued in a sentencing memorandum. “He branded himself as an industry player, who, through his company…leveraged his relationships with online streaming platforms like HBO and Netflix to sell them foreign film distribution rights at a steady premium…But, as his victims came to learn, [Horwitz] was not a successful businessman or Hollywood insider. He just played one in real life.”
For more than five years, Horwitz raised millions of dollars from investors, many of whom were personal friends, based on false claims that their money would be used to acquire film distribution rights, which then would be profitably licensed to online platforms such as Netflix and HBO.
But the whole business was a lie. In reality, Horwitz’s company neither acquired film rights nor entered into any distribution agreements with HBO or Netflix. The purported copies of film licensing agreements and distribution agreements were fake.
Instead of using the funds to acquire films and arrange distribution deals, Horwitz operated 1inMM Capital as a Ponzi scheme, using victims’ money to repay earlier investors and to fund his own lavish lifestyle, including the purchase of his $6 million Beverlywood residence, luxury cars, and travel by private jet, according to the government’s sentencing memorandum.
Horwitz defrauded five major groups of private investors, but he knew these entities derived funds from individual investors. Throughout the scheme, Horwitz raised at least $650 million from more than 250 individuals who invested directly or indirectly in 1inMM Capital. By late 2019, 1inMM Capital began defaulting on all of its outstanding promissory notes. To date, Horwitz, through 1inMM Capital, remains in default to investors on a total outstanding principal of approximately $230 million and his scheme has caused substantial financial hardship to dozens of investors.
Horwitz’s scheme began in 2014 and lasted until the FBI arrested him in April 2021. During that time, Horwitz, through his company, 1inMM Capital, entered into hundreds of six- and 12-month promissory notes with investors. The funds supplied under each note were supposed to provide money for 1inMM Capital to acquire the rights to a specific film, and each note was supposed to be repaid using the profits from licensing those film rights to Netflix or HBO. The promissory notes guaranteed repayment on a specified maturity date, as well as the amount to be paid at maturity, which included investment returns ranging from 25 percent to 45 percent.
To give investors a sense of security, Horwitz furnished them with purported film license agreements between 1inMM Capital and sales agents for production companies, as well as purported distribution agreements with Netflix and HBO.
Investors started to complain after 1inMM Capital began defaulting on notes in 2019. In response, Horwitz falsely reassured investors that any missed payments on promissory notes were caused by the streaming platforms, and that payment on the notes would resume. To support these false excuses, Horwitz sent the investors fabricated emails and text messages using the identities of actual employees of HBO and Netflix.
The FBI investigated this matter. The United States Securities and Exchange Commission provided substantial assistance.
Assistant United States Attorneys Alexander B. Schwab and David H. Chao of the Major Frauds Section prosecuted this case.
Kentucky Man Convicted of Meth TraffickingRead the Press Release
SPRINGFIELD, Mo. – A Louisville, Kentucky, man has been convicted of possessing more than two kilograms of methamphetamine hidden in a rental vehicle after he was stopped on Interstate 44 in Jasper County, Missouri.
Quennel Young, 31, was found guilty of possessing methamphetamine with the intent to distribute. U.S. District Judge M. Douglas Harpool issued the verdict today following a one-day bench trial that was held on Wednesday, Feb. 9.
Young was arrested on July 26, 2020, when he was pulled over by a Missouri State Highway Patrol trooper on Interstate 44 in Jasper County after the trooper observed Young commit multiple traffic violations.
The trooper searched Young’s vehicle. When the trooper searched the trunk, he saw the trunk lid liner was not secured tight against the trunk lid sheet metal. He pulled back the corner of the formed liner and found two duct-taped bundles that contained approximately 2.2 pounds of methamphetamine. In a later search of the vehicle, officers found three additional duct-taped bundles of methamphetamine hidden under the center console gear shift cover. All five bundles of methamphetamine weighed a total of approximately 5.59 pounds (2.539 kilograms).
Under federal statutes, Young is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Special Assistant United States Attorney Cameron A. Beaver and Assistant United States Attorney Megan Chalifoux. It was investigated by the Missouri State Highway Patrol, the Joplin, Mo., Police Department, and the Drug Enforcement Administration.
Kalispell man sentenced to prison for transporting stolen firearms to Idaho, trafficking methRead the Press Release
MISSOULA — A Kalispell man who admitted transporting firearms and ammunition stolen from a storage unit to Idaho and to trafficking methamphetamine was sentenced on Feb. 11 to six years and eight months in prison, to be followed by five years of supervised release, U.S. Attorney Leif M. Johnson said.
Joseph Vernon Holmstrom 41, pleaded guilty in October 2021 to interstate transportation of stolen firearms and to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided. Judge Molloy ordered restitution of $101,900 to be joint and several with the co-defendant.
The government alleged in court documents that in December 2019, Idaho Falls, Idaho, police responded to a report of an abandoned U-Haul vehicle that appeared to have been stolen. An investigation led to a Kalispell man, who then discovered his storage unit in Kalispell had been burglarized and that he was missing firearms and ammunition. Holmstrom, who was with the U-Haul, had the victim’s driver’s license in his pocket.
The investigation further led to co-defendant, Jeremy Anthony O’Canna, and evidence of him entering the victim’s storage unit and removing guns and ammunition. O’Canna sent Facebook messages to people asking if they needed guns and sent photographs of guns and ammunition he had to sell. He claimed he was on his way to Idaho Falls to sell guns to Mexicans. Holmstrom messaged people that they were going to need two U-Hauls, in reference to hauling the guns, sent the same pictures of guns and ammunition that O’Canna was sending and that he was in Idaho Falls. In December, Holmstrom sent messages that they were robbed. The firearms and ammunition have not been recovered.
When arrested in Idaho Falls, Holmstrom had a small amount of meth, and witnesses told law enforcement that they purchased meth from Holmstrom.
O’Canna was sentenced previously to two years in prison and ordered to pay $101,900 restitution for conviction in the case.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Flathead County Sheriff’s Office, Idaho Falls Police Department and Idaho Falls Animal Control.
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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Jury Convicts Norfolk Woman on Identity Theft ChargesRead the Press Release
NEWPORT NEWS, Va. – A federal jury convicted a Norfolk woman last Friday on charges of misuse of a Social Security number, loan fraud, and identity theft.
According to court records and evidence presented at trial, Shaneca Moseley, 38, engaged in an identity takeover of C.J., a New Jersey resident. Between 2018 and 2020, Moseley impersonated C.J. by possessing and using a forged driver’s license containing C.J.’s personal identifying information, including name, date of birth, home address, and driver’s license number, and a Social Security card containing C.J.’s Social Security number.
During these two years, Moseley used C.J.’s personal identifying information in acquiring an apartment lease; purchasing and obtaining a loan for a Mercedes Benz; purchasing furniture on credit; obtaining an email account, insurance, and other utilities; and masking her true identity during a traffic stop, among various other acts. Moseley’s activity left C.J. to deal with the results of various payment defaults and impacts to their credit.
Moseley was convicted of three counts of false representation of a Social Security number, one count of false statement on a loan application, and three counts of aggravated identity theft. She faces a maximum penalty of 30 years, along with a mandatory consecutive sentence of 2 years in prison when sentenced on July 15. 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.
Moseley plead guilty in 2009 to running another social security fraud scheme and was sentenced to 2 months imprisonment, 3 years of supervised release, and ordered to pay restitution.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Greg Torbenson, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Larry D. Boone, Chief of Norfolk Police, made the announcement after Senior U.S. District Judge John A. Gibney, Jr., accepted the verdict.
Assistant U.S. Attorney Brian J. Samuels and Special Assistant U.S. Attorney Danbee C. Kim are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:21-cr-54.
Jefferson County District Attorney Receives Award to Create Domestic Violence Unit and Fatality Review BoardRead the Press Release
BIRMINGHAM, Ala. — The U.S. Department of Justice’s Bureau of Justice Assistance (BJA) awarded the Jefferson County District Attorney’s Office (Birmingham Division) $339,574 through BJA’s FY 2021 Innovative Prosecution Solutions grant to increase the response of law enforcement and prosecutors to domestic violence, and to enhance domestic violence prevention efforts in Jefferson County. The District Attorney’s Office will create a specialized domestic violence unit that prioritizes the investigation and prosecution of domestic violence offenses and builds upon its existing victim support and violence prevention partnership with One Place Alabama Metro Family Justice Center, as well as the federal and local collaborative Jefferson County Domestic Violence Firearms Technical Assistance Project.
“Local crime data shows that domestic violence offenders commit most of the homicides in Jefferson County. My office already prioritizes the protection of domestic violence victims, and these new resources will increase our ability to investigate and prosecute domestic violence offenders”, said District Attorney Danny Carr. “Further, the creation of a local domestic violence fatality review board will guide systems improvements by my office, law enforcement, and victim service providers when our best efforts and practices fail to protect victims. Learning and adapting systems of care and protection for victims is essential to innovative public safety practices.”
“Domestic violence is a leading driver of violence in Jefferson County and across Alabama. The United States Attorney’s Office and our law enforcement partners are increasing our collective response to the persistent threat that domestic violence offenders bring to their victims and our community”, said U.S. Attorney Prim Escalona. “The Jefferson County District Attorney is one of our leading partners to improve protections for victims and to aggressively pursue domestic violence offenders. We are pleased that the Bureau of Justice Assistance is providing our partners with additional resources to further our efforts to reduce crime and victimization in Jefferson County.”
Preliminary data for 2021 indicates that fifty-seven percent of homicides in Jefferson County were committed by domestic violence offenders, while 53% and 58% of homicide offenders in 2020 and 2019 respectively were domestic violence offenders. Annually, more than 14,000 calls for service are made to local law enforcement in response to domestic violence. For mass shootings of four or more people between 2014 – 2019, 68% of perpetrators had a prior history of domestic violence.
Houstonian sent to prison for fraud schemes totaling nearly $2MRead the Press Release
HOUSTON – A 36-year-old Houston resident has been ordered to federal prison following his convictions of bank and wire fraud in two separate cases, announced U.S. Attorney Jennifer B. Lowery.
Julius Joachim Ohumole pleaded guilty Nov. 12, 2021.
Today, U.S. District Judge Hughes ordered he serve a total of 97 months in federal prison to be immediately followed by five years of supervised release.
At the time of his plea, Ohumole admitted he defrauded Regions Bank of over $1 million. Specifically, he opened a bank account in the name of Mars Construction using false identification documents identifying himself as Kenneth Davis.
Later, he accompanied another individual to Regions who used false identification documents to represent himself as a Regions accountholder. Ohumole asked for this person to be a co-signer on the Mars account, thereby allowing it to be linked to the real person’s account.
In January 2019, Ohumole caused $274,000 to be transferred from that account to the Mars account without permission or authorization. He then wired $273,000 to a bank account in New York and subsequently out of the United States.
In a separate case, Ohumole also defrauded the Teton School District in Idaho. In December 2018, he sent an email falsely representing to be from a construction contractor. In it, he claimed payments should be made to a new bank account.
Ohumole admitted in his plea that this new bank account had nothing to do with the real construction contractor and was actually his Comerica Bank account in Houston.
As a result of his scheme, the Teton School District sent $784,883.71 to Ohumole via his bank account.
He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Houston Men Sentenced for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – United States District Judge Jay C. Zainey sentenced RAYMOND ZEPEDA, age 49, and ROLANDO CLARK, age 39, both of Houston, Texas, to 120 months imprisonment for violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans. The sentencing occurred on February 8, 2022.
According to the court records, ZEPEDA and CLARK conspired to possess with the intent to distribute and to distribute a kilogram or more of a mixture or substance containing a detectable amount of heroin and five kilograms or more of a mixture or substance containing a detectable amount of cocaine. They were both Houston-based sources of supply for drug dealers in New Orleans.
Judge Zainey sentenced both ZEPEDA and CLARK to served ten (10) years in prison to be followed by five (5) years of supervised release and ordered that they each pay a $100 special assessment fee.
This case was investigated by Special Agents of the federal Drug Enforcement Administration (DEA). The prosecution is being handled by Assistant United States Attorney David Haller.
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Hermanos peruanos condenados a más de siete años de cárcel por estafar a miles de inmigrantes de habla hispanaRead the Press Release
Dos ciudadanos peruanos responsables de operar una serie de centros de llamadas en Perú que estafaban y amenazaban a residentes de habla hispana en los Estados Unidos fueron sentenciados en el Tribunal de Distrito de EE.UU. del Distrito Sur de Florida a cumplir condena de cárcel. El 9 de febrero de 2022, el Juez de Distrito de EE.UU., Robert N. Scola Jr., condenó a Josmell Espinoza Huerta (Josmell Espinoza), de 32 años, a cumplir 88 meses en prisión. Hoy mismo, el Juez Scola ordenó que Carlos Alberto Espinoza Huerta (Carlos Espinoza), de 40 años, fuera encarcelado durante 102 meses.
Josmell Espinoza y su hermano Carlos Espinoza se declararon culpables a finales de 2021 de conspirar para cometer fraude postal y fraude electrónico a través de varios centros de llamadas peruanos de los que eran propietarios y operadores. Según los documentos del Tribunal, Josmell Espinoza y Carlos Espinoza eran copropietarios y operaban el centro de llamadas JFC Peru en Perú. Además, Josmell Espinoza era propietario y operador de los centros de llamadas Camino Al Progreso y Latin Shop, y Carlos Espinoza era propietario y operador por separado de los centros de llamadas Latinos en Acción y Latin Force en Perú.
Desde abril de 2011 hasta julio de 2019, los hermanos Espinoza y sus cómplices en Perú llamaban a las víctimas, muchas de las cuales eran inmigrantes recientes de Centroamérica, México y otros países de habla hispana. Amenazaban a las víctimas fraudulentamente con consecuencias legales si no hacían pagos por productos supuestamente entregados y honorarios de liquidación para clases de inglés. Los demandados y sus cómplices usaban declaraciones falsas y amenazas para obtener dinero de las víctimas de todos los Estados Unidos. Les decían falsamente que estaban obligadas a aceptar y pagar cursos de inglés y otros productos educativos, y que no hacerlo las pondría en una situación legal riesgosa. Los demandados y sus cómplices entonces amenazaban falsamente con procurar que sus víctimas fueran arrestadas y deportadas para que les pagaran.
Al declararse culpables, ambos demandados admitieron que ellos y sus empleados afirmaron falsamente ser abogados, funcionarios del tribunal, agentes federales y representantes de un supuesto "tribunal de delitos menores", que no existe. Las personas que llamaban amenazaban falsamente a las víctimas con procedimientos judiciales, calificaciones negativas en sus informes de crédito, encarcelamiento y consecuencias migratorias si no pagaban inmediatamente los productos supuestamente entregados y los honorarios de liquidación. Carlos Espinoza causó a las víctimas una pérdida de más de 1.3 millones de dólares, y Josmell Espinoza causó a las víctimas una pérdida de más de 700 mil dólares.
"La sección de Protección al Consumidor del Departamento de Justicia investigará y procesará a los delincuentes transnacionales que defrauden a los consumidores vulnerables de los Estados Unidos", declaró el fiscal general adjunto interino Brian M. Boynton, de la División Civil del Departamento de Justicia. "Estas dos sentencias demuestran que los demandados que usen amenazas para aprovecharse de nuestras comunidades de inmigrantes serán enjuiciados y rendirán cuentas en los tribunales de los Estados Unidos".
"Este caso demuestra que la justicia no tiene límites cuando se trata de alcanzar a los defraudadores que se aprovechan de las poblaciones más vulnerables de nuestra nación", dijo el Fiscal Federal del Distrito Sur de Florida, Juan Antonio Gonzalez. "Seguiremos trayendo ante la justicia estadounidense a los delincuentes transnacionales que usen tácticas de miedo e intimidación para robar el dinero de los inmigrantes, personas mayores y otras personas que viven en este país".
"Durante muchos años, el Servicio de Inspección Postal de EE. UU. y sus colaboradores en la aplicación de la ley han investigado y procesado a redes delictivas internacionales que tienen como objetivo a los consumidores estadounidenses para robarles el dinero que tanto les ha costado ganar", declaró el inspector encargado Joseph Cronin, de la División de Miami del Servicio de Inspección Postal de EE. UU. "Seguiremos investigando de forma diligente a estos delincuentes para asegurarnos de que sean procesados con todo el peso de la ley".
Al incluir la sentencia de Carlos Espinoza en Miami hoy, los siete acusados en este caso se han declarado culpables y han sido condenados a penas de cárcel. Cinco acusados fueron detenidos por las autoridades peruanas con base en una solicitud de extradición presentada por los Estados Unidos y fueron extraditados al Distrito Sur de Florida en octubre de 2020. Cada uno de estos acusados fue condenado a cumplir una sentencia de prisión a principios de este año. Henrry Milla fue condenado a 110 meses en prisión, Jerson Renteria fue condenado a 100 meses en prisión y Evelyng Milla, Fernan Huerta y Omar Cuzcano fueron sentenciados cada uno a 90 meses en prisión. Carlos Espinoza y Josmell Espinoza evadieron el arresto cuando sus cómplices fueron arrestados. Posteriormente fueron localizados en Perú y extraditados a los Estados Unidos el 25 de junio de 2021.
El Servicio de Inspección Postal de EE.UU. y la sección de Protección al Consumidor de la División Civil investigaron el caso. El fiscal principal Phil Toomajian y el fiscal Max Goldman, de la sección de Protección al Consumidor, estuvieron a cargo del caso penal. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Fiscalía de EE.UU. del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional del Perú brindaron ayuda esencial.
La información sobre la Iniciativa contra el Fraude a Personas Mayores del Departamento de Justicia está disponible en https://www.justice.gov/elderjustice-espanol. Hay más información sobre la sección de Protección al Consumidor y sus medidas para combatir el fraude contra las personas mayores en www.justice.gov/civil/consumer-protection-branch. Si usted o alguien que conoce tiene 60 años o más y ha sido víctima de un fraude financiero, puede recibir ayuda si llama a la línea telefónica nacional contra el fraude a personas mayores: 1-833-FRAUD-11 (1-833-372-8311).
In English
Hermanos peruanos condenados a más de siete años de cárcel por estafar a miles de inmigrantes de habla hispanaRead the Press Release
Dos ciudadanos peruanos responsables de operar una serie de centros de llamadas en Perú que estafaban y amenazaban a residentes de habla hispana en los Estados Unidos fueron sentenciados en el Tribunal de Distrito de EE.UU. del Distrito Sur de Florida a cumplir condena de cárcel. El 9 de febrero de 2022, el Juez de Distrito de EE.UU., Robert N. Scola Jr., condenó a Josmell Espinoza Huerta (Josmell Espinoza), de 32 años, a cumplir 88 meses en prisión. Hoy mismo, el Juez Scola ordenó que Carlos Alberto Espinoza Huerta (Carlos Espinoza), de 40 años, fuera encarcelado durante 102 meses.
Josmell Espinoza y su hermano Carlos Espinoza se declararon culpables a finales de 2021 de conspirar para cometer fraude postal y fraude electrónico a través de varios centros de llamadas peruanos de los que eran propietarios y operadores. Según los documentos del Tribunal, Josmell Espinoza y Carlos Espinoza eran copropietarios y operaban el centro de llamadas JFC Peru en Perú. Además, Josmell Espinoza era propietario y operador de los centros de llamadas Camino Al Progreso y Latin Shop, y Carlos Espinoza era propietario y operador por separado de los centros de llamadas Latinos en Acción y Latin Force en Perú.
Desde abril de 2011 hasta julio de 2019, los hermanos Espinoza y sus cómplices en Perú llamaban a las víctimas, muchas de las cuales eran inmigrantes recientes de Centroamérica, México y otros países de habla hispana. Amenazaban a las víctimas fraudulentamente con consecuencias legales si no hacían pagos por productos supuestamente entregados y honorarios de liquidación para clases de inglés. Los demandados y sus cómplices usaban declaraciones falsas y amenazas para obtener dinero de las víctimas de todos los Estados Unidos. Les decían falsamente que estaban obligadas a aceptar y pagar cursos de inglés y otros productos educativos, y que no hacerlo las pondría en una situación legal riesgosa. Los demandados y sus cómplices entonces amenazaban falsamente con procurar que sus víctimas fueran arrestadas y deportadas para que les pagaran.
Al declararse culpables, ambos demandados admitieron que ellos y sus empleados afirmaron falsamente ser abogados, funcionarios del tribunal, agentes federales y representantes de un supuesto "tribunal de delitos menores", que no existe. Las personas que llamaban amenazaban falsamente a las víctimas con procedimientos judiciales, calificaciones negativas en sus informes de crédito, encarcelamiento y consecuencias migratorias si no pagaban inmediatamente los productos supuestamente entregados y los honorarios de liquidación. Carlos Espinoza causó a las víctimas una pérdida de más de 1.3 millones de dólares, y Josmell Espinoza causó a las víctimas una pérdida de más de 700 mil dólares.
"La sección de Protección al Consumidor del Departamento de Justicia investigará y procesará a los delincuentes transnacionales que defrauden a los consumidores vulnerables de los Estados Unidos", declaró el fiscal general adjunto interino Brian M. Boynton, de la División Civil del Departamento de Justicia. "Estas dos sentencias demuestran que los demandados que usen amenazas para aprovecharse de nuestras comunidades de inmigrantes serán enjuiciados y rendirán cuentas en los tribunales de los Estados Unidos".
"Este caso demuestra que la justicia no tiene límites cuando se trata de alcanzar a los defraudadores que se aprovechan de las poblaciones más vulnerables de nuestra nación", dijo el Fiscal Federal del Distrito Sur de Florida, Juan Antonio Gonzalez. "Seguiremos trayendo ante la justicia estadounidense a los delincuentes transnacionales que usen tácticas de miedo e intimidación para robar el dinero de los inmigrantes, personas mayores y otras personas que viven en este país".
"Durante muchos años, el Servicio de Inspección Postal de EE. UU. y sus colaboradores en la aplicación de la ley han investigado y procesado a redes delictivas internacionales que tienen como objetivo a los consumidores estadounidenses para robarles el dinero que tanto les ha costado ganar", declaró el inspector encargado Joseph Cronin, de la División de Miami del Servicio de Inspección Postal de EE. UU. "Seguiremos investigando de forma diligente a estos delincuentes para asegurarnos de que sean procesados con todo el peso de la ley".
Al incluir la sentencia de Carlos Espinoza en Miami hoy, los siete acusados en este caso se han declarado culpables y han sido condenados a penas de cárcel. Cinco acusados fueron detenidos por las autoridades peruanas con base en una solicitud de extradición presentada por los Estados Unidos y fueron extraditados al Distrito Sur de Florida en octubre de 2020. Cada uno de estos acusados fue condenado a cumplir una sentencia de prisión a principios de este año. Henrry Milla fue condenado a 110 meses en prisión, Jerson Renteria fue condenado a 100 meses en prisión y Evelyng Milla, Fernan Huerta y Omar Cuzcano fueron sentenciados cada uno a 90 meses en prisión. Carlos Espinoza y Josmell Espinoza evadieron el arresto cuando sus cómplices fueron arrestados. Posteriormente fueron localizados en Perú y extraditados a los Estados Unidos el 25 de junio de 2021.
El Servicio de Inspección Postal de EE.UU. y la sección de Protección al Consumidor de la División Civil investigaron el caso. El fiscal principal Phil Toomajian y el fiscal Max Goldman, de la sección de Protección al Consumidor, estuvieron a cargo del caso penal. La Comisión Federal de Comercio, la Oficina de Asuntos Internacionales del Departamento de Justicia, la Fiscalía de EE.UU. del Distrito Sur de Florida, el Servicio de Seguridad Diplomática del Departamento de Estado y la Policía Nacional del Perú brindaron ayuda esencial.
La información sobre la Iniciativa contra el Fraude a Personas Mayores del Departamento de Justicia está disponible en https://www.justice.gov/elderjustice-espanol. Hay más información sobre la sección de Protección al Consumidor y sus medidas para combatir el fraude contra las personas mayores en www.justice.gov/civil/consumer-protection-branch. Si usted o alguien que conoce tiene 60 años o más y ha sido víctima de un fraude financiero, puede recibir ayuda si llama a la línea telefónica nacional contra el fraude a personas mayores: 1-833-FRAUD-11 (1-833-372-8311).
In English
Harrisburg Man Sentenced to 15 Years’ Imprisonment for Firearms OffenseRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Donald Jackson, age 36, of Harrisburg, Pennsylvania, was sentenced to 15 years’ imprisonment on February 11, 2022, by U.S. District Court Judge Jennifer P. Wilson for possession of a firearm in furtherance of drug trafficking.
According to United States Attorney John C. Gurganus, on June 19, 2018, Harrisburg Bureau of Police offers stopped a vehicle in which Jackson was a passenger. Jackson exited the vehicle and fled on foot. An officer observed Jackson carrying what he believed to be a firearm and another officer saw Jackson discard the item in a trash can. Officers took Jackson into custody and found inside the trash can a black purse which contained marijuana, plastic baggies, and a digital scale. Underneath the purse, officers recovered a Ruger 9mm pistol with an obliterated serial number. During a search of Jackson and the vehicle, ecstasy, marijuana, and crack were also recovered.
The Harrisburg Bureau of Police and the Pennsylvania Office of Attorney General Mobile Street Crimes Unit investigated the case with assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Scott Ford prosecuted the case.
This case was also part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of
this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Gulfport Man Pleads Guilty to Firearms ConspiracyRead the Press Release
Gulfport, Miss. – A Gulfport man pleaded guilty today to conspiring to possess a firearm in furtherance of a drug trafficking crime and possession of a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Raheem Olajuwon Lane, 28, pled guilty in U.S. District Court in Gulfport.
According to court documents and information presented to the Court, in 2020, the DEA and Gulfport Police Department began investigating a local drug trafficking organization involved in the distribution of oxycodone, marijuana, alprazolam (“Xanax”), methamphetamine, and pressed fentanyl pills. During the investigation, law enforcement learned that various members of the organization, like many drug traffickers, possessed firearms to protect themselves, their drugs, and the proceeds from their drug sales. Through their investigation, officers determined that Raheem Olajuwon Lane was a member of the drug trafficking organization. Officers determined that he was distributing fentanyl, alprazolam, methamphetamine, oxycodone, and marijuana. He also transferred firearms to and received firearms from other members of the conspiracy.
On May 12, 2021, officers executed a search warrant at Lane’s residence. They discovered hundreds of alprazolam pills, pressed fentanyl pills, suspected methamphetamine, suspected oxycodone, and marijuana. They also recovered three firearms, a Taurus 9mm handgun, a Smith and Wesson handgun, and an Intratec Model AB-10.
Lane is scheduled to be sentenced on May 13, 2022. He faces a maximum sentence of 20 years in prison for the conspiracy charge, and a maximum of life in prison for the possession charge.
The DEA and Gulfport Police Department investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Gonic Man Pleads Guilty to Bank RobberiesRead the Press Release
CONCORD - Christopher Kelley, 45, of Gonic, pleaded guilty in federal court to three counts of bank robbery and one count of attempted bank robbery, United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between September 11, 2020, and October 9, 2020, Kelley committed three bank robberies in Rochester. He attempted to rob another bank in Wolfeboro on October 13, 2020. In each of the incidents, Kelley claimed to have a bomb.
Kelley is scheduled to be sentenced on May 23, 2022.
“Bank robberies are violent crimes that endanger innocent people and cause untold emotional damage to bank employees and bystanders,” said U.S. Attorney Farley. “By robbing multiple banks while claiming to have a bomb, this defendant left behind victims in each location who may be affected by these incidents for years to come. As this case demonstrates, we are working closely with our law enforcement partners to fight back against violent crime and to hold violent criminals accountable for their unlawful and dangerous conduct.”
“Today, Christopher Kelley finally admitted to putting innocent bystanders in fear for their lives when he walked into four different banks in Rochester and Wolfeboro, claiming he had a bomb, and demanding cash from the tellers,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “While no one was physically injured, Mr. Kelley’s actions have had a lasting impact on everyone who was there. That’s why the FBI and our law enforcement partners will do everything possible to seek justice for the victims and protect the public from violent criminals like him.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Rochester Police Department and Wolfeboro Police Department. The case is being prosecuted by Assistant U.S. Attorneys Anna Krasinski and Aaron Gingrande.
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Gang Member Pleads Guilty in Federal Court After Robbing Eugene Marijuana DispensaryRead the Press Release
PORTLAND, Ore.—A Portland man affiliated with the Hoover Criminal Gang and Unthank Park Hustlers, two allied Portland street gangs, pleaded guilty today after robbing a Eugene marijuana dispensary.
Timothy Christopher Gaines, 30, pleaded guilty to using and carrying a firearm during and in relation to a crime of violence.
According to court documents, on December 20, 2019, Gaines and an accomplice robbed Green Therapy, a marijuana dispensary in Eugene, of several jars of marijuana and $912 in cash. Gaines brandished a firearm during the robbery and pointed it at a store employee cowering on the floor.
On June 25, 2020, Gaines was charged by criminal complaint with Hobbs Act robbery. Later, on July 23, 2020, a federal grand jury in Portland returned an indictment charging Gaines with the same. A superseding indictment returned on October 20, 2020 added a charge of using and carrying a firearm during and in relation to a crime of violence.
Gaines faces a maximum sentence of life in prison with a seven-year mandatory minimum, a $250,000 fine, and a five-year term of supervised release. He will be sentenced on April 26, 2022 before U.S. District Court Judge Michael H. Simon.
U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Eugene Police Department and Portland Police Bureau. Assistant U.S. Attorney Leah K. Bolstad is prosecuting the case.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fort Pierce Man Sentenced to 10 Years in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
Miami, Florida – A U.S. District Judge in South Florida has sentenced a prior convicted felon from Fort Pierce to 120 months in prison for possessing a firearm last Memorial Day.
On the night of May 31, 2021, 28-year-old Everette Jerome Jackson, Jr. arrived at a Fort Pierce park and exited a vehicle with a .40 caliber Smith & Wesson pistol. The park was filled with people celebrating the holiday. After some fighting and commotion among parkgoers, Jackson brandished the Smith & Wesson and fired at a vehicle 13 times, hitting a bystander -- the owner of the vehicle. After the shooting, Jackson tried to dispose of the firearm by throwing it into the Intracoastal Waterway, but dive-team officers from the St. Lucie County Sheriff’s Office recovered it.
When he possessed the firearm on May 31, 2021, Jackson had a prior felony drug conviction and a prior felony conviction for illegal firearm possession.
Jackson also faces state charges for shooting the victim. The defendant is presumed innocent of the state charges unless and until proven guilty in a court of law.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami, and Ken J. Mascara, Sheriff, Saint Lucie County Sheriff’s Office, announced the sentence imposed by U.S. District Judge Aileen M. Cannon.
FBI Miami and Saint Lucie County Sheriff’s Office investigated the case. Assistant U.S. Attorney Diana M. Acosta prosecuted it.
This case stems from Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14033.
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Former lab director sentenced to prison for falsifying results of steel testing on parts for Navy subsRead the Press Release
Tacoma – The former Director of Metallurgy at Bradken Inc. was sentenced today in U.S. District Court in Tacoma to 30 months in prison, and a $50,000 fine, for falsifying test results that measure the strength and toughness of steel that Bradken sold for installation in U.S. Navy submarines, announced U.S. Attorney Nick Brown. Elaine Thomas, 67, of Auburn, Washington, pleaded guilty November 8, 2021, to major fraud against the United States. At the sentencing hearing U.S. District Judge Benjamin H. Settle said it was, “a crime of pride and ego, that in some way she knew better than those who set the standards.”
“For 32 years, Elaine Thomas betrayed the trust of the United States Navy, knowingly placing its sailors and military operations at risk,” said U.S. Attorney Nick Brown. “She falsely stated that steel Bradken produced met critical specifications– standards developed to keep our military personnel safe– and allowed inferior steel to go to Navy subs in half the orders she reviewed.”
“Our Sailors and Marines depend upon high quality products and services from our contractors to safely and effectively meet the worldwide mission of the Department of the Navy,” said Secretary of the Navy Carlos Del Toro. “This outcome demonstrates that we will continue to insist that our contractors must meet these high standards and that the actions of Elaine Thomas and others like her will not be tolerated. The efforts seen today are the result of the strong cooperation between the Department of the Navy, the Department of Defense, and the Department of Justice to prevent fraud and to ensure that those who do commit fraud against the Government are brought to justice.”
According to records filed in the case, Bradken is the U.S. Navy’s leading supplier of high-yield steel castings for naval submarines. Bradken’s Tacoma foundry produces castings that prime contractors use to fabricate submarine hulls. The Navy requires that the steel meets certain standards for strength and toughness to ensure that it does not fail under certain circumstances, such as a collision. For 30 years, the Tacoma foundry (which was previously known as Atlas, and acquired by Bradken in 2008), produced castings, many of which had failed lab tests and did not meet the Navy’s standards. Elaine Thomas, as Director of Metallurgy, falsified test results to hide the fact that the steel had failed the tests. Thomas falsified results for over 240 productions of steel, which represents about half the castings Bradken produced for the Navy.
Court filings indicate there is no evidence that Bradken’s management was aware of the fraud until May 2017. At that time, a lab employee discovered that test cards had been altered and that other discrepancies existed in Bradken’s records. In April 2020, Bradken entered into a deferred prosecution agreement, accepting responsibility for the offense and agreeing to take remedial measures. Bradken also entered into a civil settlement, paying $10,896,924 to resolve allegations that the foundry produced and sold substandard steel components for installation on U.S. Navy submarines.
The Navy has taken extensive steps to ensure the safe operation of 30 affected submarines. Those measures will result in increased costs and maintenance as some of the substandard parts are monitored. To date, the Navy says it has spent nearly $14 million including 50,000 hours of engineering work to assess the parts and risk to the submarines.
“This sentencing holds Ms. Thomas accountable for her actions, which needlessly jeopardized the safety of countless U.S. Navy personnel and wasted millions of taxpayer dollars,” said the Honorable Sean W. O'Donnell, Acting Inspector General, Department of Defense. “As exemplified in this case, we and our oversight partners will vigorously investigate fraud, especially where substandard materials endanger our military men and women. Protecting the lives of our service members remains a top priority for the Department of Defense Office of Inspector General.”
“The announced sentencing demonstrates Naval Criminal Investigative Service (NCIS) and our law enforcement partners are committed to hold individuals accountable for supplying substandard products that can cause serious harm and negatively impact Department of Navy (DON) readiness and war fighting capabilities. NCIS will continue to work meticulously with our law enforcement partners to safeguard DON major acquisition programs and ensure the safety of our Sailors and Marines,” said Timothy King, Special Agent in Charge, NCIS Northwest Field Office.”
The criminal case against Thomas, deferred prosecution agreement, and civil settlement with Bradken are the result of a coordinated effort among the U.S. Attorney’s Office for the Western District of Washington, the Civil Division’s Commercial Litigation Branch, the Department of Defense Office of Inspector General's Defense Criminal Investigative Service, Naval Criminal Investigative Service, and the Defense Contract Audit Agency.
The criminal prosecution was handled by Assistant United States Attorney Seth Wilkinson.
Former Navajo Nation employee sentenced for federal program fraudRead the Press Release
Relda Martinez, 57, of Prewitt, New Mexico, was sentenced in federal court on Feb. 10 to five years of probation and 50 hours of community service for federal program fraud. Martinez pleaded guilty on July 14, 2021.
A federal grand jury indicted Martinez on Oct. 16, 2020. According to the indictment and other court records, from 2014 through 2016, Martinez was employed as the Community Service Coordinator at the White Horse Lake Chapter House (WHLCH) on the Navajo Nation, which afforded her access to the WHLCH financial accounting system. Martinez used her access to issue numerous checks to other parties ostensibly as payments for legitimate work, but were issued in amounts greater than the actual cost of the work or for work that was not performed. Martinez admitted that the money went to herself, her family members and her friends.
Among the checks issued by Martinez were 12 checks issued to a person identified in court records as “A.K.” Martinez listed the purpose of the checks as for archeological surveys, which are required for any land development on the Navajo Nation. However, Martinez knew that A.K. was not a licensed archeologist and that A.K. did not perform any surveys.
“IRS Criminal Investigation, along with our law enforcement partners, will vigorously pursue individuals who take advantage of their positions and misappropriate government funds for their own financial gain,” said Andy Tsui, Special Agent in Charge IRS Criminal Investigation Denver Field Office. “We remain firm in our commitment to promote honest and ethical financial operations at all levels, and to prosecute those who violate the public’s trust.”
“We hope this prosecution and sentencing will serve as a deterrent to others contemplating stealing federal funds for their own personal gain,” said Jamie DePaepe, Acting Special Agent in Charge, Department of the Interior Office of Inspector General’s Western Region. “We will continue to work with our law enforcement partners to investigate individuals who violate the public’s trust and bring them to justice.”
In addition to her probation and community service, Martinez must pay $26,885.55 in restitution, either in full immediately or in monthly installments of $250.00 or 10 percent of her monthly income, whichever is greater.
The IRS Criminal Investigation Durango Office and the Department of the Interior Office of the Inspector General investigated this case. Assistant United States Attorney Jonathan Gerson prosecuted the case.
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Former Marine Sentenced to 210 Years in Federal Prison for Using Drugs and Force to Sexually Abuse Young Girls in CambodiaRead the Press Release
LOS ANGELES – A retired Marine Corps captain who traveled to Cambodia in 2005 for the purpose of engaging in illicit sexual conduct with minors was sentenced today to 210 years in federal prison.
Michael Joseph Pepe, 68, a former Oxnard resident who has been in federal custody since 2007, was sentenced by United States District Judge Dale S. Fischer, who described Pepe’s actions as “monstrous” and “horrific.”
“What he did to those pre-teen girls…was torture,” Judge Fischer said, noting that there was “no justification for a sentence that would ever allow [Pepe] to be released from prison.”
Judge Fischer has scheduled a restitution hearing in this case for February 28.
During a seven-day trial in August 2021, jurors heard testimony from eight victims who were as young as 9 years old when they were sexually abused. Each of the victims testified that Pepe sexually abused them, and several explained that Pepe drugged, bound, beat and raped them.
Prosecutors also presented evidence corroborating the victims’ testimony, including homemade child pornography.
Pepe initially was arrested in Cambodia 2006. After being brought to the United States and charged in early 2007, he subsequently was tried, convicted and sentenced to prison. The United States Court of Appeals for the Ninth Circuit overturned the conviction in 2018, and prosecutors retried the defendant on new charges.
Homeland Security Investigations and the Cambodian National Police investigated this matter.
First Assistant United States Attorney Stephanie S. Christensen, Assistant United States Attorney Damaris Diaz of the Violent and Organized Crime Section, and Assistant United States Attorney Lynda Lao of the General Crimes Section prosecuted this case.
Former Employee of Mechanical Contractor Admits Inflating Change OrdersRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that WILLIAM SACCO, 49, of Pelham, New Hampshire, waived his right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a conspiracy charge stemming from his involvement in a construction project fraud scheme.
According to court documents and statements made in court, Sacco was a project manager for a Massachusetts-based mechanical contractor. From June 2014 to December 2017, Sacco conspired to defraud his employer and the owners of certain projects he managed by inflating change orders on the projects. As part of the conspiracy, a co-conspirator subcontractor made more than $200,000 in payments to Sacco and also for Sacco’s benefit, including payments for Sacco’s children’s college tuition, a graduation party, a Mac laptop, airline tickets, hotels and Sacco’s rent. Sacco and the co-conspirator submitted inflated change orders to Sacco’s employer to offset some of the costs of the payments the co-conspirator made to Sacco.
Sacco pleaded guilty to one count of conspiracy to commit wire fraud, which carries a maximum term of imprisonment of 20 years. Sacco has agreed to pay restitution in the amount of $41,195.85.
Sacco was arrested on November 22, 2021. He is released on a $50,000 bond pending sentencing, which is scheduled for May 9.
This investigation is being conducted by the Federal Bureau of Investigation and the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney David T. Huang, with assistance from the Department of Justice’s Antitrust Division, New York Office.
Former D.A.R.E. officer pleads guilty to child pornography crimesRead the Press Release
DAYTON, Ohio – A former longtime Beavercreek police officer pleaded guilty in federal court here today to two federal child pornography crimes.
Kevin A. Kovacs, 60, of Fairborn, was arrested in April 2020 and indicted by a federal grand jury in June 2020.
Kovacs pleaded guilty today to transporting and possessing child pornography.
According to the plea document, between April 2015 and July 2017, Kovacs uploaded more than 300 images and 2,200 videos depicting child pornography to his Dropbox account. Videos featured the sexual abuse of children as young as toddler aged. One video depicted a toddler lying on a diaper whose arms and legs were bound by black tape.
Kovacs also used online messenger, social media, cloud storage and email accounts to transport and possess child pornography.
In total, as of December 2019, Kovacs possessed more than 780 images and 5,100 videos of child pornography.
Kovacs’ plea also includes an agreed upon sentencing range of 60 to 240 months in prison. The Court will ultimately determine the sentence at a future hearing.
Kenneth L. Parker, United States Attorney, Southern District of Ohio; J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Fairborn Police Chief Terry Bennington and Beavercreek Police Chief Jeff Fiorita announced the plea entered into today before U.S. District Judge Michael J. Newman. Assistant United States Attorneys Dwight K. Keller and DeMarr Moulton are representing the United States in this case.
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Florida’s NCH Healthcare System Agrees to Pay $5.5 Million to Settle Common Law Allegations for Impermissible Medicaid DonationsRead the Press Release
NCH Healthcare System (NCH), which operates two hospitals in Collier County, Florida, has agreed to pay the United States $5.5 million to resolve allegations that it made donations to local units of government to improperly fund the state’s share of Medicaid payments to NCH.
The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.
The United States alleged that, between October 2014 and September 2015, NCH made improper, non-bona fide donations by: (1) providing free nursing and athletic training services to the Collier County School Board; and (2) assuming and paying certain of Collier County’s financial obligations. Both types of donations were designed to increase Medicaid payments received by NCH, without any actual expenditure of state or local funds. In particular, NCH’s donations freed up funds for the county and school board to make payments to the State as the state share of Medicaid payments to NCH. This state share was “matched” by the federal government before being returned to NCH as Medicaid payments. The Medicaid payments NCH received were thus funded by the federal government and NCH’s own donations, in violation of the prohibition on non-bona fide donations.
“States and local units of government must use their own money when seeking federal Medicaid matching funds to help ensure that Medicaid payments are determined by beneficiaries’ medical needs rather than donations by hospitals or other health care providers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “When private parties violate the rules by making improper donations to fund the state share of Medicaid, they endanger the integrity of the Medicaid program.”
“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This settlement underscores our commitment to protecting the integrity of the Medicaid program by ensuring that government funds are legally obtained and used for their intended purposes.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The matter was handled by Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida’s NCH Healthcare System Agrees to Pay $5.5 Million to Settle Common Law Allegations for Impermissible Medicaid DonationsRead the Press Release
WASHINGTON – NCH Healthcare System (NCH), which operates two hospitals in Collier County, Florida, has agreed to pay the United States $5.5 million to resolve allegations that it made donations to local units of government to improperly fund the state’s share of Medicaid payments to NCH.
The Florida Medicaid program provides medical assistance to low-income individuals and individuals with disabilities, and is jointly funded by the federal and state governments. Under federal law, Florida’s share of Medicaid payments must consist of state or local government funds, and not “non-bona fide donations” from private health care providers, such as hospitals. A non-bona fide donation is a payment — in cash or in kind — from a private provider to a governmental entity that is then returned to the private provider as the state share of Medicaid. The private provider’s donation triggers a corresponding federal expenditure for the federal share of Medicaid, which is also paid to the private provider. This unlawful conduct causes federal expenditures to increase without any corresponding increase in state expenditures, since the state share of the Medicaid payments to the provider comes from and is returned to the provider. The prohibition of this practice ensures that states are in fact paying a share of Medicaid payments and thus have an incentive to curb Medicaid costs and prevent unnecessary services.
The United States alleged that, between October 2014 and September 2015, NCH made improper, non-bona fide donations by: (1) providing free nursing and athletic training services to the Collier County School Board; and (2) assuming and paying certain of Collier County’s financial obligations. Both types of donations were designed to increase Medicaid payments received by NCH, without any actual expenditure of state or local funds. In particular, NCH’s donations freed up funds for the county and school board to make payments to the State as the state share of Medicaid payments to NCH. This state share was “matched” by the federal government before being returned to NCH as Medicaid payments. The Medicaid payments NCH received were thus funded by the federal government and NCH’s own donations, in violation of the prohibition on non-bona fide donations.
“States and local units of government must use their own money when seeking federal Medicaid matching funds to help ensure that Medicaid payments are determined by beneficiaries’ medical needs rather than donations by hospitals or other health care providers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “When private parties violate the rules by making improper donations to fund the state share of Medicaid, they endanger the integrity of the Medicaid program.”
“Millions of Floridians depend on the Medicaid Program for medical care and related services,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “This settlement underscores our commitment to protecting the integrity of the Medicaid program by ensuring that government funds are legally obtained and used for their intended purposes.”
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The matter was handled by Fraud Section Attorneys Alison B. Rousseau and Jonathan T. Thrope and Assistant U.S. Attorney Carolyn B. Tapie.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida-Based Medicare Reimbursement Consultant Resolves Litigation for Allegedly Causing False Diabetic Supply Claims to MedicareRead the Press Release
Medicare reimbursement consultant Ted Albin and his wholly-owned consulting and billing firm Grapevine Billing and Consulting Services Inc. (Grapevine), both based in Stuart, Florida, have agreed to pay $50,000 to resolve allegations that they violated the False Claims Act. This settlement resolves allegations that Albin and Grapevine caused the submission of false claims to Medicare because of kickbacks to Medicare beneficiaries and because patients were ineligible to receive glucometers. This settlement is based on the United States’ analysis of financial disclosures made by Grapevine.
“Consultants must abide by federal requirements when providing Medicare billing advice,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of federal health insurance programs by pursuing individuals or entities responsible for the submission of false or fraudulent claims, including those who cause such claims to be submitted.”
In its complaint, the United States alleged that, from 2008 until 2017, Albin and Grapevine provided consulting services to now-defunct diabetic testing supplier Arriva Medical LLC (Arriva), its parent Alere Inc. (Alere), and starting in January 2018, Abbott Laboratories (Abbott), after Abbott acquired Arriva and Alere in October 2017. From at least 2009 until 2011, Albin, through Grapevine, allegedly served effectively as the Head of Reimbursement at Arriva, overseeing Arriva’s reimbursement department, developing Arriva’s policies for the collection of beneficiary copayment obligations and submitting claims to Medicare on Arriva’s behalf for diabetic testing supplies.
The United States alleged that, as consultants to Arriva, from April 2010 until the end of 2016, Albin and Grapevine knowingly caused the submission of claims to Medicare that were tainted by the payment of kickbacks to Medicare beneficiaries in the form of (i) free or “no cost” glucometers, or (ii) the routine waiver of beneficiary copayment obligations. Additionally, the United States alleged that Albin and Grapevine knowingly caused the submission of claims to Medicare for glucometers on behalf of beneficiaries who were not eligible to seek reimbursement because they had received a meter paid for by Medicare within the previous five years.
The United States produced sworn testimony from Albin in the litigation in which he admitted that, as a reimbursement consultant for Arriva, Albin personally (1) would “write off customer co-payments” because “I could tell someone on my team ‘Yes, write this off,’” (2) engaged in such write-offs “probably every week,” (3) engaged in “mass write-offs of denials by Medicare” for ineligible meters, (4) created Arriva’s “routine policy not to send a bill for customers who owed less than $5,” and (5) “came up with the policy” of “courtesy adjustments” in the form of copayment waivers in response to customer complaints about their Medicare coinsurance obligations.
“The resolution of this matter brings about the conclusion of a lengthy and protracted investigation and litigation in which the United States sought and received substantial penalties and damages as a result of allegations of False Claims Act violations,” said U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. “I commend the legal team and investigators for working diligently to preserve the integrity of our federal healthcare programs.”
“Those who provide advice to health care providers about Medicare billing must do so with integrity,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working with our law enforcement partners, we will continue to investigate those who cause fraudulent claims to be submitted to federal health care programs.”
The litigation resolved by this settlement originally included claims against Arriva and Alere that were brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee in Arriva’s Antioch, Tennessee call center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The act also permits the United States to intervene and take over the litigation of a qui tam action, as the United States did here. In August 2021, Arriva and Alere agreed to pay $160 million to resolve the claims against them. The United States also previously settled for $1 million claims against Arriva’s founders, David Wallace and Timothy Stocksdale, for their alleged part in the scheme. The litigation, which is concluded by the settlement announced today, is currently captioned United States v. Albin, et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Tennessee and HHS-OIG, with the assistance of the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Trial Attorney Jake M. Shields of the Civil Division and Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Florida-Based Consultant Resolves Litigation for Allegedly Causing False Diabetic Supply Claims to MedicareRead the Press Release
NASHVILLE – Medicare reimbursement consultant Ted Albin and his wholly-owned consulting and billing firm Grapevine Billing and Consulting Services Inc. (Grapevine), both based in Stuart, Florida, have agreed to pay $50,000 to resolve allegations that they violated the False Claims Act. This settlement resolves allegations that Albin and Grapevine caused the submission of false claims to Medicare because of kickbacks to Medicare beneficiaries and because patients were ineligible to receive glucometers. This settlement is based on the United States’ analysis of financial disclosures made by Grapevine.
“The resolution of this matter brings about the conclusion of a lengthy and protracted investigation and litigation in which the United States sought and received substantial penalties and damages as a result of allegations of False Claims Act violations,” said U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee. “I commend the legal team and investigators for working diligently to preserve the integrity of our federal healthcare programs.”
In its complaint, the United States alleged that, from 2008 until 2017, Albin and Grapevine provided consulting services to now-defunct diabetic testing supplier Arriva Medical LLC (Arriva), its parent Alere Inc. (Alere), and starting in January 2018, Abbott Laboratories (Abbott), after Abbott acquired Arriva and Alere in October 2017. From at least 2009 until 2011, Albin, through Grapevine, allegedly served as the Head of Reimbursement at Arriva, overseeing Arriva’s reimbursement department, developing Arriva’s policies for the collection of beneficiary copayment obligations, and submitting claims to Medicare on Arriva’s behalf for diabetic testing supplies.
The United States alleged that, as consultants to Arriva, from April 2010 until the end of 2016, Albin and Grapevine knowingly caused the submission of claims to Medicare that were tainted by the payment of kickbacks to Medicare beneficiaries in the form of free or “no cost” glucometers, or the routine waiver of beneficiary copayment obligations. Additionally, the United States alleged that Albin and Grapevine knowingly caused the submission of claims to Medicare for glucometers on behalf of beneficiaries who were not eligible to seek reimbursement because they had received a meter paid for by Medicare within the previous five years.
The United States produced sworn testimony from Albin in the litigation in which he admitted that, as a reimbursement consultant for Arriva, Albin personally (1) would “write off customer co-payments” because “I could tell someone on my team ‘Yes, write this off,’” (2) engaged in such write-offs “probably every week,” (3) engaged in “mass write-offs of denials by Medicare” for ineligible meters, (4) created Arriva’s “routine policy not to send a bill for customers who owed less than $5,” and (5) “came up with the policy” of “courtesy adjustments” in the form of copayment waivers in response to customer complaints about their Medicare coinsurance obligations.
“Consultants must abide by federal requirements when providing Medicare billing advice,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “We will continue to protect the integrity of federal health insurance programs by pursuing individuals or entities responsible for the submission of false or fraudulent claims, including those who cause such claims to be submitted.”
“Those who provide advice to health care providers about Medicare billing must do so with integrity,” said Special Agent in Charge Tamala E. Miles of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will continue to investigate those who cause fraudulent claims to be submitted to federal health care programs.”
The litigation resolved by this settlement originally included claims against Arriva and Alere that were brought under the qui tam or whistleblower provisions of the False Claims Act by Gregory Goodman, a former employee in Arriva’s Antioch, Tennessee call center. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The act also permits the United States to intervene and take over the litigation of a qui tam action, as the United States did here. In August 2021, Arriva and Alere agreed to pay $160 million to resolve the claims against them. The United States also previously settled for $1 million claims against Arriva’s founders, David Wallace and Timothy Stocksdale, for their alleged part in the scheme. The litigation, which is concluded by the settlement announced today, is currently captioned United States v. Albin, et al., Case No. 3:13-cv-00760 (M.D. Tenn.).
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, the U.S. Attorney’s Office for the Middle District of Tennessee, and the U.S. Department of Health and Human Services Office of Inspector General, with the assistance of the Tennessee Bureau of Investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was handled by Assistant U.S. Attorney Ellen Bowden McIntyre of the Middle District of Tennessee and Trial Attorney Jake M. Shields of the Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Final Defendant Sentenced to 10 Years in Federal Prison for Charges Related to a Series of Home BurglariesRead the Press Release
Baltimore, Maryland – U.S. District Judge George J. Hazel sentenced Demar A. Brown, age 38, of Paterson, New Jersey and Winston-Salem, North Carolina to 10 years in federal prison, followed by three years of supervised release, for conspiracy and for transportation of stolen property, taken during a series of burglaries committed in Maryland and Georgia. Brown was convicted by a federal jury on September 16, 2021, after a 10-day trial for his role in the series of home burglaries.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the evidence presented at the trial, from November 29, 2017, through January 26, 2018, Brown, and co-defendants Jashon Fields and Kamar Beckles participated in a series of break-ins at residences in Baltimore County, Maryland and Milton, Georgia, in order to steal property, including: cash; foreign currency; safes; jewelry; designer purses, bags, and clothing; personal electronics; collectibles; personal identity documents; and items of sentimental value, such as historical medals, rare coins, and other memorabilia. The defendants intended to sell the stolen property out-of-state for cash.
Witnesses at trial testified that the defendants wore masks and gloves during the break-ins and communicated with each other using two-way radios and mobile phones. One of the conspirators often remained in the getaway car while the other conspirators committed the burglaries. Brown, Fields, and Beckles rented hotel rooms in Maryland where they would store the proceeds of the burglaries they committed (until the property and proceeds were transported out of state). Brown and Beckles transported the stolen property outside Maryland, including to two residences to which Brown had access in Winston-Salem, North Carolina.
As detailed during the trial, on January 26, 2018, the defendants were arrested near two residences that had recently been burglarized. Brown was arrested after officers responding to the burglary noticed a dark green Ford Explorer with North Carolina tags traveling slowly down the street. The vehicle was identical to a suspect vehicle seen in surveillance footage from some of the earlier burglaries. An officer pulled in behind the vehicle and, after a short vehicle chase, Brown was eventually arrested after trying to flee from the SUV.
Beckles and Fields were arrested in a nearby wooded area, about a half mile from one of the burglarized homes. At the time of his arrest, Beckles was wearing a distinct jacket with a reflective emblem on the back – identical in appearance to the insignia visible in surveillance footage from some of the earlier burglaries. Additional responding officers were able to view through the vehicle’s windows a safe matching the description of a safe stolen during the robbery, along with what appeared to be bags of other property stolen that evening and over $2500 in loose change – later determined to have been stolen from a home in Milton, Georgia.
A search of each defendant resulted in the discovery of hotel key cards, a breakfast ticket from the same hotel as the key cards, as well as $1,000 that one defendant possessed in his sock.
Search warrants executed on the two hotel rooms resulted in the recovery of jewelry stolen from a residence, property from homes burglarized in Milton, Georgia, as well as property from homes burglarized in Baltimore County on December 29, 2017, January 9, 2018, and January 10, 2018. Law enforcement also recovered a mask, a pair of gloves, a diamond tester, a scale, and a gold testing kit. In the second room, they located, among other things, Fields’ license, mail in the name of Beckles, and various phones.
On January 27, 2018, after obtaining a search warrant, law enforcement searched the Ford Explorer driven by Brown the previous day. They discovered, among other things, various tools and clothing for use in connection with burglaries, including a pry bar, a drill and hole saw, a mallet, three chisels, a reciprocating saw, multiple pairs of gloves, black knit hats, a balaclava style mask, two-way radios, and flashlights.
Law enforcement officers searching the vehicle also discovered many of the pieces of property stolen during two burglaries the previous day, as well as notes concerning a pawn shop and a jewelry shop in North Carolina.
On January 30, 2018, law enforcement obtained search and seizure warrants for Brown’s residences in Winston-Salem, North Carolina. There they located property from three earlier burglaries in Baltimore County—including numerous pieces of fine jewelry. Additionally, evidence on the nine phones seized from the defendants, the SUV, and the defendants’ hotel rooms showed, among other things, Brown and Beckles photographing many pieces of the jewelry and other items taken during some of the burglaries.
In total, 21 homes were burglarized in connection with the conspiracy, and the victims reported that $850,000 worth of property was stolen. Only some of that stolen property has been recovered and returned to its owners; for a few victims, most of their property has yet to be recovered.
Co-defendants Jashon C. Fields, age 37, of Atlanta, Georgia, and Kamar O. Beckles, age 36, of Teaneck, New Jersey were previously sentenced to five years in federal prison and 76 months in federal prison, respectively.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the FBI and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Paul A. Riley and Christopher M. Rigali, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Essex County Man Sentenced to Four Years in Prison for Conspiring to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 48 months in prison for his role in a conspiracy to steal check books and credit cards from the mail, deposit fraudulent checks, including pandemic relief checks, and use stolen credit cards without authorization, U.S. Attorney Philip R. Sellinger announced.
Jeffrey Bennett, 27, of Irvington, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Bennett conspired to fraudulently obtain money from victim financial institutions by depositing counterfeit checks and checks stolen from the mail into accounts at these financial institutions and withdrawing funds before the financial institutions identified the fraudulent checks and blocked further withdrawals. Bennett and his conspirators arranged for U.S. Postal Service (USPS) employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Bennett and his conspirators, who forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, who had given Bennett and his conspirators access to their accounts, also in exchange for cash. Bennett and his conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
In addition to the prison term, Judge Wigenton sentenced Bennett to three years of supervised release and ordered restitution of $61,438.
U.S. Attorney Sellinger credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. He also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Duval Felon Indicted for Possession of A Firearm and AmmunitionRead the Press Release
Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return of an indictment charging Otis L. Shivers (49, Jacksonville) with possessing a firearm and ammunition as a convicted felon. If convicted, Shivers faces a minimum mandatory sentence of 15 years, and up to life, in federal prison. The indictment also notifies Shivers that the United States intends to forfeit a revolver and six live rounds of ammunition.
According to the indictment, on October 29, 2021, Shivers was arrested by officers from the Jacksonville Sheriff’s Officers outside a motel in the Lane Avenue area of Jacksonville. Shivers had a revolver loaded with six live rounds in his possession. At the time, Shivers had five previous felony convictions for selling drugs and therefore is prohibited from possessing a firearm or ammunition under federal law.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It will be prosecuted by Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Drug Dealer Sentenced to 25 Years in Prison for Selling the Fentanyl that Resulted in Death of User; Longest Sentence to DateRead the Press Release
Assistant U. S. Attorneys Stephen H. Wong (619) 546-9464 and Mikaela L. Weber (619) 546-9734
NEWS RELEASE SUMMARY – February 14, 2022
SAN DIEGO – Jahvaris Lamoun Springfield was sentenced in federal court today to 300 months in prison for selling the fentanyl pills that resulted in the fatal overdose of U.S. Army veteran Brendan James Gallagher on February 5, 2019. This is the longest sentence to date in this district for this crime.
On August 27, 2021, following a three-day trial before U.S. District Judge Larry Alan Burns, a jury convicted Springfield of causing Gallagher’s death by distributing fentanyl to Gallagher on February 5, 2019.
The evidence presented at trial showed that Gallagher was a U.S. Army veteran who served overseas in Afghanistan. Upon his return to the United States, Gallagher was honorably discharged. In 2018, Gallagher moved from Boston to San Diego in an attempt to break his addiction. However, Gallagher turned to opioid drugs in the form of counterfeit oxycontin pills later that year.
The evidence also showed that, on the afternoon of February 5, 2019, Gallagher sent text messages to Springfield seeking to purchase oxycontin pills. Later that day, Gallagher’s roommates called 911 to report that Gallagher was nonresponsive in his bedroom. When agents arrived at the residence, they found two counterfeit oxycontin pills that tested positive for fentanyl. Additionally, Gallagher’s autopsy showed a fatal concentration of fentanyl in his blood. In the investigation that followed, agents obtained evidence showing that Springfield sold Gallagher pills on February 5, 2019. When agents arrested Springfield, they found counterfeit oxycontin pills that tested positive for fentanyl in the vehicle Springfield had been driving.
DEA Narcotics Task Force Team 10 led the investigation in this case. Team 10 is a specialty unit, with investigators from HSI, FBI, San Diego Police Department, CA Department of Health Care Services, and the San Diego District Attorney’s Office, that investigates overdose deaths in San Diego. Team 10 responds to the discovery of overdose victims and aggressively pursues criminal cases, up the distribution chain, against both the dealers and their sources of supply.
“This is the longest federal sentence to date in a case of a drug dealer being held responsible for the death of a customer in the Southern District of California, and it should put dealers and those who supply them on notice. Every time we have an overdose death, law enforcement will come looking for you, because lives are at stake,” said U.S. Attorney Randy Grossman. “We will not stop with the street-level dealers but will follow the supply chain as far up as necessary and will use every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.” Grossman thanked the prosecution team as well as DEA Team 10 investigators for their hard work on the case.
“Today’s sentencing of Jahvaris Springfield is a reflection of the hard work of the investigators assigned to DEA’s Team 10,” said DEA Special Agent in Charge Shelly S. Howe. “These dedicated men and women work tirelessly around the clock to hold drug dealers accountable for the deaths they are causing and to bring justice to families who have lost their loved ones. This 25-year sentence is proof that their efforts have paid off.”
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the San Diego Police Department, the Drug Enforcement Administration and other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 20cr2923-LAB
Jahvaris Lamoun Springfield Age: 31 San Diego
SUMMARY OF CHARGES
Distribution of Fentanyl Resulting in Death – Title 21, U.S.C., Section 841(a)(1), (b)(1)(C)
Maximum penalty: Life in Prison
AGENCY
Drug Enforcement Administration
Federal Bureau of Investigation
San Diego Police Department
Homeland Security Investigations
California Department of Health Care Services
San Diego County District Attorney’s Office
District Man Sentenced to 24 Years in Prison for Robbery and Attack in Northwest WashingtonRead the Press Release
WASHINGTON – Joshua Austin, 34, of Washington, D.C., was sentenced today to 24 years in prison for attacking a senior citizen in an apartment stairwell during a robbery in Northwest Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Austin was found guilty by a jury in December 2021 of charges of first-degree burglary of a senior citizen, robbery of a senior citizen, and assault with intent to commit robbery of a senior citizen. The verdict followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Rainey R. Brandt. Following his prison term, he is to be placed on five years of supervised release.
According to the government’s evidence, at approximately 12:30 p.m. on Oct. 30, 2019, the then 68-year-old victim -- who uses a cane and was suffering from multiple significant health issues -- walked from her apartment building to a nearby corner market located at Missouri and Georgia Avenues NW. She encountered Austin, a stranger, inside the store. Not long after she left the market, Austin followed her to her apartment building on his bicycle. According to the evidence, Austin then followed her into the stairwell of her apartment building where he threw her on the ground, assaulted her, dumped her groceries onto the floor, and stole $60 before fleeing. The woman suffered a broken collarbone and injuries to her arms in the attack.
Austin was identified through surveillance video and other evidence. He was arrested Dec. 26, 2019. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who handled the case at the U.S. Attorney’s Office, including Assistant U.S. Attorneys Charles J. Willoughby, Jr., Alicia Long, and Daniel Lenerz, Paralegal Specialists Lashaune Briggs and Alesha Matthews, and teams from the Victim/Witness Assistance Unit and the Litigation Technology Unit.
Finally, they commended the work of Assistant U.S. Attorneys Emma McArthur and Kristian Hinson, who investigated and prosecuted the case.
District Man Pleads Guilty to Bias-Related Assault in Confrontation with Employees at Fast-Food RestaurantRead the Press Release
WASHINGTON - Johnnie Williamson, 36, of Washington, D.C. has pleaded guilty to charges stemming from two violent confrontations that took place in 2020, including one that was prosecuted as a hate crime, U.S. Attorney Matthew M. Graves announced today.
Williamson pleaded guilty on Feb. 9, 2022, in the Superior Court of the District of Columbia, to one count of bias-related assault and one count of attempted possession of a prohibited weapon. Williamson had been in custody while awaiting trial ever since his arrest in March 2021. He was sentenced today by the Honorable Jason Park to 450 days of incarceration; however, all of that time was suspended, with credit for the time he has already served, on the condition that he successfully complete one year of supervised probation. As a condition of probation, Williamson must participate in mental health treatment and supervision.
According to the government’s evidence, the first incident took place on June 14, 2020. At approximately 1:45 p.m., Williamson pulled a knife during an argument with an individual while inside of Union Station.
The second incident took place at approximately 8:40 p.m. on Dec. 27, 2020. Williamson entered a Chipotle restaurant in the 2300 block of Washington Place NE. He asked an employee how much food he could purchase with approximately $8. The employee tried to assist. But due to a language barrier, she had difficulty communicating, and so she asked her manager to assist. The manager informed Williamson what was available on the menu for under $8.
Williamson was not satisfied with the answer, and immediately began yelling a series of xenophobic, ethnic, and transphobic slurs at the employee and the manager.
As Williamson yelled these slurs, he climbed onto the service counter and spit on the employee. He then reached over the counter and began throwing food and serving spoons at the employee, striking her in the hand. After throwing the spoons, Williamson then pushed the cash register off the counter. He picked up a fire extinguisher and threw it at the manager, striking her in the leg. Williamson continued yelling slurs throughout the incident. Finally, as he moved towards the exit, he shouted that he was going to return and kill the employees. Williamson was arrested on March 5, 2021.
In announcing the plea, U.S. Attorney Graves commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also expressed appreciation for the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Assistant U.S. Attorney Travis Wolf, who investigated and prosecuted the case.
Cleveland-Cliffs Agrees to Improve Environmental Compliance at Indiana Facility and Pay $3 Million Civil Penalty for Ammonia and Cyanide ViolationsRead the Press Release
Cliffs Burns Harbor (Cleveland-Cliffs) has agreed to resolve alleged violations of the Clean Water Act (CWA) and other laws, for an August 2019 discharge of ammonia and cyanide-laden wastewater into the East Branch of the Little Calumet River. The discharge, which led to fish kills in the river, also caused beach closures along the Indiana Dunes National Lakeshore. Cleveland-Cliffs is undertaking substantial measures to improve its wastewater system at its steel manufacturing and finishing facility in Burns Harbor, Indiana.
The complaint filed with the settlement alleges that Cleveland-Cliffs exceeded discharge pollution limits for cyanide and ammonia; failed to properly report those cyanide and ammonia releases under the Emergency Planning and Community Right-to-Know Act (EPCRA), and the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA); and violated other Clean Water Act and permit terms.
“Today’s settlement with Cleveland-Cliffs appropriately penalizes the company for its significant violations and requires extensive actions by the company to prevent future pollution,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “The cyanide and ammonia reductions will result in a cleaner Lake Michigan, and the public will be kept informed of potential future spills.”
“EPA and its partners worked together to develop a comprehensive solution that will not only support the continued enjoyment of Lake Michigan and Indiana waterways, but also implement necessary measures at the facility to prevent future spills like this again,” said Acting Assistant Administrator Larry Starfield for Environmental Protection Agency (EPA)’s Office of Enforcement and Compliance Assurance. “Today’s settlement demonstrates that EPA is committed to protecting our natural resources from harmful pollution.”
“Hoosiers support a legal climate in Indiana that both promotes thriving businesses and protects our natural environment,” said Indiana Attorney General Todd Rokita. “I’m pleased to see a resolution in this particular case that upholds the rule of law and establishes commitments to make physical upgrades that will benefit everyone involved.”
“I am grateful to our federal and community partners who helped reach this settlement,” said Indiana Department of Environmental Management (IDEM) Commissioner Brian Rockensuess. “The consent decree will result in additional protections for the local community and Lake Michigan and go a long way in improving both health and the environment in Northwest Indiana.”
The settlement agreement, which is memorialized in a consent decree lodged today in federal district court in the Northern District of Indiana, requires Cleveland-Cliffs to pay $3 million as a civil penalty and to reimburse the EPA and the State of Indiana for response costs incurred as a result of an August 2019 discharge of wastewater containing ammonia and cyanide into a river that flows into Lake Michigan. A new ammonia treatment system and cyanide treatment requirements will greatly reduce the facility’s water pollution levels.
Cleveland-Cliffs will also resolve allegations under EPCRA and CERCLA by implementing a protocol to notify relevant state and local groups about any future spills of cyanide from its Burns Harbor facility.
In August 2019, the facility’s blast furnace closed loop air scrubber water recycle system failed, requiring Cleveland-Cliffs to draw in large volumes of Lake Michigan water and discharge it through the facility outfalls, without being able to recycle the water. Cleveland-Cliffs’ wastewater treatment system is not designed for the treatment and discharge of this volume of water, so the incident resulted in discharges containing high levels of untreated cyanide and ammonia-nitrogen. Following the discharge of untreated water, there was a fish kill in the East Branch of the Little Calumet River.
Cleveland-Cliffs failed to provide timely notification and emergency reports to the local emergency response authorities after the release, as required under CERCLA/EPCRA.
EPA and IDEM conducted response actions in and around the areas of the discharges. The incident closed several local beaches along the Indiana Dunes National Lakeshore. Inspections and further investigation of the facility by EPA and Indiana Department of Environmental Management revealed additional violations of the facility’s NPDES permits.
In December 2019, the Environmental Law and Policy Center (ELPC) and Hoosier Environmental Council (HEC) filed a citizen suit against Cleveland-Cliffs for alleged violations of the Clean Water Act. ELPC and HEC are also signatories to the consent decree, which will resolve their ongoing citizen suit.
Under the consent decree, Cleveland-Cliffs will construct and operate a new ammonia treatment system at the blast furnaces, implement a new procedure for managing and treating once-through water during emergency situations, and follow enhanced preventive maintenance, operation and sampling requirements for the facility. These measures are designed to fix conditions at the facility that gave rise to the August 2019 spill, furthering compliance with the CWA and analogous state laws.
To resolve the citizen suit claims, Cleveland-Cliffs has also agreed to two state-administered Environmentally Beneficial Projects (EBPs): (1) a transfer of 127 acres of land property adjacent to the Indiana National Lakeshore to a land trust for conservation; and (2) background sampling on the East Branch of the Little Calumet River and Lake Michigan.
As part of the agreement, Cleveland-Cliffs will reimburse EPA’s total cleanup response costs of $10,025.37 and Indiana’s response costs of $37,650.
Today’s settlement, lodged with the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period following notification in the Federal Register, and final approval by the court. To view the consent decree or to submit a comment, visit the department’s website at: https://www.justice.gov/enrd/consent-decrees.
Chicago Attorney Convicted on False Statement and Tax Offenses in Connection with Funds Received from Failed BankRead the Press Release
CHICAGO — A federal jury today convicted a Chicago attorney on false statement and tax offenses in connection with funds he received from the failed Washington Federal Bank for Savings.
PATRICK D. THOMPSON, 52, of Chicago, was found guilty on all seven counts against him, including five counts of willfully filing a false income tax return and two counts of knowingly making a false statement to the Federal Deposit Insurance Corp. Each false statement count is punishable by a maximum sentence of 30 years in federal prison, while each tax count is punishable by up to three years. U.S. District Judge Franklin U. Valderrama set sentencing for July 6, 2022.
The conviction was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jay N. Lerner, Inspector General of the FDIC’s Office of Inspector General; Justin Campbell, Special Agent-in-Charge of IRS Criminal Investigation in Chicago; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; Catherine Huber, Special Agent-in-Charge of the Central Region of the Federal Housing Finance Agency, Office of Inspector General; Sally Luttrell, Assistant Inspector for Investigations of the Department of the Treasury, Office of Inspector General; and Kathryn B. Richards, Chicago Housing Authority Inspector General. Valuable assistance was provided by the City of Chicago Inspector General’s Office. The government is represented by Assistant U.S. Attorneys Michelle Petersen, Brian Netols, and Jeremy Daniel.
According to evidence presented at trial, Thompson from 2011 to 2014 received $219,000 from Chicago-based Washington Federal via a purported loan and other unsecured payments. He made one re-payment on the loan but then stopped making payments, and he failed to pay interest on the funds he received. Washington Federal was shut down in 2017 after the Office of the Comptroller of the Currency determined it was insolvent and had at least $66 million in nonperforming loans. When the FDIC, as successor in interest to Washington Federal, attempted to obtain repayment from Thompson in 2018, he falsely stated that he owed only $110,000 and that those funds were for home improvement. In reality, Thompson knew he had actually received $219,000 in three separate installments – none of which went towards home improvements – and that $110,000 of it was paid by the bank directly to Thompson’s law firm as Thompson’s capital contribution.
The tax charges stemmed from Thompson falsely representing on five years of income taxes that he was entitled to a mortgage interest deduction for interest payments made on money he received from Washington Federal, even though he knew the loan was not a mortgage loan and he did not make interest payments as reported on those returns.
Chenango County Man Pleads Guilty to Child Pornography ChargesRead the Press Release
SYRACUSE, NEW YORK – Brian T. Whipple, age 42, of New Berlin, New York pled guilty today to receipt and possession of child pornography. The announcement was made by United States Attorney Carla B. Freedman, Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations, and New York State Police Superintendent Kevin P. Bruen.
According to the offer of proof filed by the government and admitted to by Whipple during his change of plea hearing, he used peer-to-peer file sharing programs from 2009 through 2020 to knowingly receive child pornography images and videos. When Whipple was arrested in June 2020, he had over 5,000 child pornography files (images and videos) on DVDs, a thumb drive, and his cellular telephone.
At sentencing scheduled for June 14, 2022, Whipple faces a mandatory minimum term of imprisonment of five years and a maximum term of 20 years for the receipt offense. He faces a maximum sentence of 20 years’ imprisonment for each of the three counts of possession of child pornography to which he pled guilty. In addition to imprisonment, Whipple can be fined up to $250,000 per count, will be required to pay restitution to the victims of his child pornography receipt and possession offenses, and will be required to serve a term of supervised release after imprisonment of between five years and life. Whipple also will have to register as sex offender upon his release. A defendant’s sentence is imposed by a judge based on the statutes the defendant violated, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Homeland Security Investigations in cooperation with the New York State Police and the Chenango County District Attorney’s Office. It is being prosecuted by Assistant U.S. Attorney Michael D. Gadarian as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Charleston Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Curtis Givens, 52, of Charleston, pleaded guilty today to federal drug and gun crimes.
According to court documents, Givens admitted selling fentanyl to a confidential informant on two separate occasions in November 2020. The drug transactions occurred at Givens’ residence in Charleston. During one of the controlled buys, Givens also sold the confidential informant two firearms.
Givens pleaded guilty to distribution of fentanyl and possession of a firearm in furtherance of a drug trafficking crime and faces up to life in prison when he is sentenced on May 9, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney L. Alexander Hamner is handling the prosecution.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00166.
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Central Falls Man Admits to Role in Drug Trafficking OrganizationRead the Press Release
PROVIDENCE, R.I. – A Central Falls man admitted in federal court today to being a member of a Drug Trafficking Organization (DTO) that shipped dozens of packages containing kilograms of cocaine from Puerto Rico to various addresses in Rhode Island, announced United States Attorney Zachary A. Cunha.
George Mojica, 42, pled guilty to an information charging conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine. In his plea agreement, Mojica admitted that from at least February 22, 2019, and continuing through December 16, 2019, he participated in the conspiracy to distribute cocaine and to possess cocaine with the intent to distribute. Mojica also admitted that he communicated with co-conspirators about the arrival dates of incoming cocaine parcels that had been shipped via US Priority Mail, about receiving and retrieving the cocaine parcels, and about transporting them.
According to court documents, beginning in January 2018, members of the drug trafficking organization in Puerto Rico repeatedly mailed US Priority Mail parcels to various Rhode Island addresses. The return addresses on the parcels used sender names that were not associated with the listed return addresses, and the packages were addressed to recipients in Rhode Island that were not associated with the where the parcels were sent. Members of the organization in Rhode Island routinely tracked the packages online as they moved through the mail to determine when and where they would be delivered. Once delivered, the packages were retrieved by Mojica or by other co-conspirators and couriers. After the parcels were retrieved, they were delivered to Mojica or to other co-conspirators. Based on the packages seized, the known size and weights of many of the parcels not intercepted, the organization is believed to have shipped and/or attempted to ship approximately 51 kilos of cocaine to Rhode Island between January 2018 and December 2019.
It is alleged in charging documents that for nearly two years Mojica, Arcadio Torres, 40, of North Providence, Nelson Carvahlo, 47, of Cranston, Angel Delgado, 25, of Pawtucket, and others, tracked, retrieved, and transported packages containing between one and five kilograms. Numerous packages were intercepted by law enforcement.
Mojica is scheduled to be sentenced by U.S. District Court Mary S. McElroy on May 16, 2022.
Angel Delgado pled guilty on January 7, 2020, to conspiracy to distribute and possession with intent to distribute 500 kilograms or more of cocaine. He is scheduled to be sentenced by U.S. District Court Mary S. McElroy on March 31, 2022. Charges remain pending in federal court against Torres and Carvahlo.
The case is being prosecuted by Assistant U.S. Attorney Denise M. Barton.
The matter was investigated by the United States Postal Inspection Service, DEA, and members of the Rhode Island High Intensity Drug Trafficking Area.
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California Man Subdued by Passengers, Flight Crew Aboard American Airlines Flight to Washington, D.C.Read the Press Release
KANSAS CITY, Mo. – A California man was subdued by several passengers and flight attendants when he tried to open the exit door on an American Airlines flight en route to Washington, D.C., on Sunday afternoon, forcing the plane to land at Kansas City International Airport in Kansas City, Missouri.
Juan Remberto Rivas, 50, was charged with one count of assaulting and intimidating a flight attendant and thereby interfering in the performance of the flight attendant’s duties. Rivas remains in federal custody pending a detention hearing, which has not yet been scheduled.
Rivas was a passenger aboard American Airlines flight 1775 traveling nonstop from Los Angeles, Calif., to Washington, D.C., which was diverted to Kansas City International Airport in Kansas City, Mo., at approximately 2:28 p.m. Sunday, Feb. 13.
According to an affidavit filed in support of today’s federal criminal complaint, Rivas created a disturbance on the plane that escalated when he walked up to the cockpit area. Rivas grabbed some plastic silverware, removed the napkin wrapped around it, and placed the plastic silverware in his shirt sleeve and was holding it like a shank. A flight attendant told federal agents he felt threatened by the knife. Rivas then grabbed a small champagne bottle by the neck of the bottle and attempted to break the bottle on the counter. He began kicking and shoving the service cart into one of the flight attendants.
Rivas, who is about six-feet, three-inches tall and weighs about 240 pounds, allegedly grabbed the handles used to manipulate the forward starboard aircraft exit door. Rivas positioned one foot on the aircraft door, the affidavit says, and began pulling hard on the handle with one hand, at first, and then both of his hands. A flight attendant grabbed a coffee pot and hit Rivas twice in the head with it. Several passengers came forward to assist the flight attendants, the affidavit says. One of the passengers, a police officer, began to struggle with Rivas and pulled him away from the door. A passenger punched Rivas in the jaw and another passenger grabbed his neck and pulled him to the floor. Passengers and flight attendants restrained Rivas until they could secure his hands and feet with zip ties and duct tape.
Rivas received medical treatment for a laceration on his head. Flight attendants told investigators they did not serve any alcohol to Rivas during the flight.
The charge contained in this complaint is simply an accusation*, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the FBI.
California Man Sentenced to Prison for Unemployment Insurance Benefits FraudRead the Press Release
LAS VEGAS – A California man who admitted to fraudulently obtaining over $170,000 in unemployment benefits — by submitting multiple unemployment claims in other people’s names and using benefits debit cards not belonging to him — was sentenced today to 30 months in prison.
Keheir Jordan Parker (25), of Victorville, California, pleaded guilty in June 2021 to one count of conspiracy to effectuate illegal transactions with an access device. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Parker to three years of supervised release.
According to court documents and admissions made in court, on September 11, 2020, Parker and co-conspirator Robert Devon Barber were stopped in Las Vegas for a traffic violation. During the traffic stop, law enforcement officers recovered 12 California Employment Development Department (EDD) unemployment insurance benefits debit cards issued in other peoples’ names, along with ATM receipts showing that the debit cards had been used to make cash withdrawals totaling $7,400 in Nevada and California. At least $249,460 in unemployment benefits was approved for claims associated with the 12 recovered EDD cards, and over $170,715.78 was obtained from accounts associated with those cards — including $148,400 in ATM cash withdrawals and $22,315.78 in purchases.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Bristol Man Pleads Guilty to Attempting to Engage in Sex with Minor, Distributing Child PornographyRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, announced that ROBERT MARLIN SELLERS, 61, of Bristol, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to child exploitation offenses related to his attempt to engage in sex with a minor.
According to court documents and statements made in court, in 2020, law enforcement received information that Sellers was sharing videos of child sex abuse on a website that is focused on incest. In November 2020, an undercover FBI employee began interacting with Sellers on the social media application Kik. In the chats, Sellers made statements that he had sexually abused children, and that he had trafficked a child to engage in commercial sex acts. He also said that he had recently traveled out of state to have sex with another 12-year-old girl. The undercover investigator told Sellers that he had a 12-year-old daughter (“Doe”). After Sellers introduced the idea that Doe could be trafficked for sex, and offered suggestions to the undercover investigator about how it could be accomplished, Sellers arranged to have sex with Doe in exchange for $200.
In January 2021, Sellers, using an encrypted instant messenger application, sent the undercover investigator a link to videos of child sex abuse that Sellers maintained on a file sharing website.
On February 4, 2021, Sellers was arrested at a hotel in Southington shortly after he provided the undercover investigator $200 to engage in sex with Doe.
Sellers has been detained since his arrest.
Sellers pleaded guilty to one count of attempted coercion and enticement of a minor, which carries a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life, and one count of distribution of child pornography, which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
U.S. Attorney Boyle thanked the New Britain State’s Attorney’s Office for its cooperation in the investigation and prosecution of this case.
This matter is being investigated by the FBI New Haven Child Exploitation Task Force and the Southington Police Department. The task force includes members from the Connecticut State Police and the Naugatuck, East Windsor, New London and Southington Police Departments. The case is being prosecuted by Assistant U.S. Attorney Angel M. Krull.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Bourbon County Man Sentenced to 15 Years for Production of Child PornographyRead the Press Release
LEXINGTON, Ky.— A Paris, Ky., man, Joseph Moctezuma Lopez, 28, was sentenced to 180 months in federal prison on Monday, by U.S. District Judge Joseph Hood, after pleading guilty to production of child pornography.
According to Lopez’s plea agreement, in or before August 2017, he admitted to meeting a minor victim online and communicating with her over social media applications and the Internet for over two years. In September 2019, Lopez traveled from Lexington, to the Canadian border to meet the victim; but he was stopped at the border. Law enforcement found explicit photographs of the victim on his phones, which Lopez admitted he enticed the victim into producing.
Lopez pleaded guilty in November 2021.
Under federal law, Lopez must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge of Homeland Security Investigations (HSI); and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the Department of Homeland Security (DHS) – Homeland Security Investigations (HSI) and the Lexington Police Department. The United States was represented by Assistant U.S. Attorneys David Marye and Andrea Mattingly Williams.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Beaumont Man Pleads Guilty to Armed Robbery of a Convenience StoreRead the Press Release
BEAUMONT, Texas – A Beaumont man has been convicted of federal firearms violations in the Eastern District of Texas, announced U.S. Attorney Brit Featherston today.
Kenderious DaShawn Coleman, 20, pleaded guilty to Hobbs Act robbery and brandishing a firearm during a crime of violence today before U.S. Magistrate Judge Christine Stetson.
According to court documents, on September 10, 2021, Coleman committed the armed robbery of a Dollar General store in Beaumont. Coleman was brandishing a firearm inside the store while demanding money from a store clerk. During the robbery, Coleman struck a store employee in the face with the pistol he was carrying, before making off with approximately $1500 from the store safe. Coleman was arrested nearby a short time later with the pistol and stolen money on him.
Coleman was indicted by a federal grand jury on October 6, 2021. He faces up to 20 years in federal prison on the armed robbery charge and an additional 7 years imprisonment for brandishing a firearm during the commission of that crime. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Joseph R. Batte.
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Bakersfield Man Pleads Guilty to Unlawfully Possessing AmmunitionRead the Press Release
FRESNO, Calif. — Jesus B. Cordero, 26, of Bakersfield, pleaded guilty today to possession of ammunition after sustaining a domestic violence conviction, U.S. Attorney Phillip A. Talbert announced.
According to court documents, at approximately midnight on Sept. 5, 2020, law enforcement officers stopped Cordero for traffic infractions while he was driving in Bakersfield. Cordero did not have a driver’s license and gave a false name to the responding police officers. During a search of Cordero’s vehicle, officers located a baggie containing approximately 45.5 grams of methamphetamine, which Cordero possessed intending to distribute it to others. Officers also discovered in Cordero’s vehicle a 9 mm unmarked privately made handgun known as a “ghost gun” loaded with a high-capacity magazine and 23 rounds of 9 mm ammunition. Cordero may not possess firearms or ammunition because he previously was convicted of inflicting corporal injury on a spouse or cohabitant.
This case is the product of an investigation by the Federal Bureau of Investigation and the Bakersfield Police Department. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Cordero is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on May 9, 2022. Cordero faces a maximum term of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Arrest in California on Hawaii Indictment Charges Investment Fraud of over $2 MillionRead the Press Release
HONOLULU – United States Attorney Clare E. Connors and Federal Bureau of Investigation Special Agent in Charge Steven Merrill announced today that Richard Patterson, also known as Xavier Carter, 40, was arrested on February 11 in California pursuant to an indictment in the District of Hawaii. Patterson, Dashawn Hill, 46, and Judy Ramos, 52, all former residents of Hawaii, were charged with Conspiracy and Wire Fraud, and Patterson and Ramos also were charged with money laundering. Patterson made an initial appearance in court in the Central District of California. Ramos and Hill have not yet been arrested.
The indictment alleges that beginning by at least in or around July 2015, the defendants participated in an “advanced payment scheme.” One or more of the defendants solicited upfront payments from victim-investors that would purportedly be used to generate much larger sums of money for the victim-investors after a short period. The upfront payments were not invested and had no reasonable possibility of generating the promised return. To perpetuate the scheme, the defendants falsely represented that they were wealthy financial professionals, and that Patterson and Hill owned a financial institution that was properly registered in Switzerland. At times, Patterson used a fictitious alias, “Xavier Carter” and spoke with a fake accent.
The indictment further alleges that upfront payments were divided amongst the defendants and used to pay the defendants’ personal expenses, such as credit card bills, rent, entertainment expenses, and other expenses, none of which were investments and had no potential to earn the returns promised to the investors. During the course of the conspiracy, the defendants collectively solicited over $2.5 million in upfront payments from investors, and only returned approximately $163,000, some of which was derived from the payments of other victim-investors.
“Those who take money from investors by promising great returns in a short amount of time, with little or no attempt to generate such returns, should face serious consequences for their actions,” said U.S. Attorney Connors.
“The alleged fraudsters preyed on our communities, targeting trusting families and local business owners for their own selfish gain. The FBI takes financial crimes very seriously and will bring its considerable resources to hold those who commit fraud accountable,” said Special Agent in Charge Steven Merrill. “Friday's arrest is a direct result of the professional and thorough work of our employees and partners. I urge the community to use our tip line at tips.fbi.gov to aid us in bringing those who commit fraudulent schemes to justice.”
If convicted, each defendant faces a sentence of up to 20 years imprisonment, and a fine of up to $250,000 for each count of conspiracy to commit wire fraud or wire fraud. Patterson and Ramos face up to 10 years imprisonment, and a fine of up to $250,000 for each count of money laundering. An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the FBI. Assistant United States Attorney Michael F. Albanese is prosecuting the case.
Antioch Man Sentenced to 147 Months in Prison for Attempted Transfer of Obscene Matter to a MinorRead the Press Release
PEORIA, Ill. – An Antioch, Illinois, man, Carl T. Zwanzig, 56, of the 27000 block of W. Grass Lake Road, was sentenced by U.S. District Court Judge James Shadid to 147 Months for Attempted Transfer of Obscene Matter to a Minor (Count 1 of the Indictment), and Penalty for Registered Sex Offender (Count 3).
At the February 10, 2022 sentencing hearing, the government presented evidence that Zwanzig communicated online with a person he believed to be a 15-year-old girl. In discussing meeting with the girl for sex, Zwanzig sent a video of himself masturbating. At the time, he was required to register as a sex offender based on a previous conviction for the Illinois offense of Grooming.
Zwanzig was indicted by the federal grand jury on December 17, 2019, and pleaded guilty to Counts 1 and 3 of the indictment in federal court on October 14, 2021.
The statutory penalties for the sentences of imprisonment on each count to which the defendant pleaded guilty must be ordered to be served consecutively (in addition to each other). Consequently, the maximum possible sentence which could be imposed on the combined counts was not more than 20 years in prison, not more than a $500,000 fine, not more than a lifetime of supervised release and a $5,200 mandatory special assessment. Zwanzig will be required to register as a sex offender and keep the registration current under the federal Sex Offender Registration and Notification Act.
The Federal Bureau of Investigation, Springfield Division-Peoria Resident Agency investigated the case. Assistant U.S. Attorneys Keith Hollingshead-Cook and Paul B. Morris represented the government in the prosecution.
The case against Zwanzig was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov