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Monday 20 December 2021
Former USPS Employee Admits Stealing FundsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service, Office of Inspector General, announced that LINDIM ASIPI, 44, of Waterbury, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud related to his theft of U.S. Postal Service (USPS) funds.
According to court documents and statements made in court, Asipi was a motor vehicle service driver for the USPS based in Waterbury, and the USPS provided Asipi with a fleet credit card that enabled him to purchase fuel. Between approximately January 2019 and June 2020, Asipi conducted several hundred fraudulent transactions with his fleet credit card to obtain cash from gas stations without purchasing fuel. To execute these fraudulent transactions, Asipi used his assigned personal identification number (PIN), as well as the PIN of another USPS driver who was unaware of Asipi’s scheme.
On April 11, 2020, Asipi was recorded on store video surveillance driving his USPS vehicle and parking next to the gas pumps at a gas station in Prospect. After Asipi exited the vehicle and entered the store, Asipi’s credit card was used to charge $160 at 11:50 a.m. and $140 at 11:51 a.m. Surveillance video footage then shows Asipi driving away from the gas station without pumping any fuel.
At sentencing, which is not scheduled, Asipi faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the U.S. Postal Service, Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Former Tucson Insurance Agent Sentenced to Prison for Million Dollar Elder Fraud SchemeRead the Press Release
TUCSON, Ariz. – On Friday, Koreasa M. Williams, 46, of Tucson, Arizona, was sentenced by U.S. District Judge Jennifer G. Zipps to 51 months in prison. Williams previously pleaded guilty to wire fraud.
In her guilty plea, Williams, a licensed insurance agent, admitted that she devised a scheme to defraud nine annuity clients out of $1,064,522. In furtherance of her scheme, Williams sent request forms to various life insurance companies seeking to withdraw funds from her clients’ annuities without their knowledge and consent. Williams also directed the life insurance companies to wire the fraudulently obtained funds directly to her personal bank account. Williams then used the mostly elderly victims’ money for her personal benefit.
“It is essential that individuals who use their position and skill to harm others be held accountable,” said U.S. Attorney Gary Restaino. “We are grateful to our partners at the FBI for bringing this case forward and are hopeful that its resolution will bring some closure for the victims.”
The Federal Bureau of Investigation conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-1276-TUC-JGZ (BGM)
RELEASE NUMBER: 2021- 095_Williams# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Greenfield Township Sewer Authority Manager Found Guilty of Clean Water Act Violations and Wire FraudRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Evans, Sr., age 68, and Bruce Evans, Jr., age 40, both of Greenfield Township, were found guilty on December 17, 2021, after trial of multiple counts of Clean Water Act violations that occurred at the Greenfield Township wastewater treatment plant beginning in 2013 through 2017. Evans, Sr. was also found guilty of multiple counts of wire fraud and obstruction of correspondence. The trial took place before United States District Court Judge Malachy E. Mannion.
According to United States Attorney John C. Gurganus, Evans, Sr. and Evans, Jr. knowingly failed to operate and maintain the municipality’s wastewater treatment plant in accordance with regulations and limitations specified in a permit issued by the Pennsylvania Department of Environmental Protection (PADEP) and the United States Environmental Protections Agency (EPA). The permit requires that the permittee at all times maintain in good working order, and properly operate and maintain all facilities and systems, which were installed and used by the permittee to achieve compliance with the terms and conditions of the permits. As a result of the defendants’ failures, pollutants were discharged in violation of the permit on multiple occasions.
Prosecutors from the U.S. Attorney’s Office and the EPA presented testimony from 34 witnesses over the course of a trial that began on November 15, 2021 and ended on December 17, 2021. Witnesses included Greenfield Township Sewer Authority (GTSA) board members, Greenfield Township Supervisors, FBI and EPA Special Agents, and multiple PADEP inspectors and supervisors.
Throughout the time covered by the charges, Evans, Sr. was a Greenfield Township Supervisor, a Greenfield Township employee, a GTSA Board Member, and Manager of the GTSA. Evans, Jr. was an employee of Greenfield Township and the GTSA. Evans, Sr. was convicted of twenty (20) counts of Clean Water Act violations; four (4) counts of wire fraud involving the misappropriation of GTSA funds for his personal benefit and the benefit of his family; and four (4) counts of obstruction of PADEP certified mail addressed to his fellow GTSA board members but intercepted by Evans, Sr. Evans, Jr. was convicted of four (4) counts of Clean Water Act violations, and one (1) count of submitting a false statement to the PADEP related to representations and certifications made by Evans, Jr. regarding his professional work experience.
The evidence presented at trial established that after many years of permit non-compliance at the GTSA, the EPA and FBI initiated a criminal investigation in late 2013, which involved the use of covert cameras positioned to surveil activity at the actual GTSA facility and a pump station located on Route 106 in Greenfield Township. The investigation uncovered repeated warnings about deficient facility inspections, permit non-compliance, community complaints about foul odors and visible raw sewage routinely overflowing from the Route 106 pump station, and false statements reported to the PADEP by both Evans Sr. and Evans, Jr. It was also learned that information concerning deficient plant operations and clean water act violations was routinely conveyed directly to Evans, Sr. as the GTSA’s responsible corporate officer from the PADEP, but Evans, Sr. concealed that information from his fellow GTSA board members over a period of many years.
The investigation was jointly conducted by the U.S. Environmental Protection Agency - Criminal Investigations Division, the Federal Bureau of Investigation – Scranton Field Office, and the Pennsylvania Department of Environmental Protection - Northeast Region. Assistant U.S. Attorney Michelle Olshefski and EPA Attorneys W. Martin Harrell and Patricia C. Miller prosecuted the case.
The maximum penalty under federal law for wire fraud is 20 years’ imprisonment, a term of supervised release following imprisonment, and a fine. The Obstruction of Correspondence violations carry a maximum of 5 years’ imprisonment. The Clean Water Act violations carry a maximum of 3 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Former Child Protective Officer Sentenced to over Seven Years in Federal Prison for Receipt and Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Stephanie A. Gallagher sentenced Haitian national Jean Buteau Remarque, age 40, of Greenbelt, Maryland, today to 90 months in federal prison, followed by 10 years of supervised release, for two counts of receipt of child pornography and one count of possession of child pornography. The jury convicted Remarque late on March 25, 2021 after a four-day trial. Judge Gallagher also ordered that, upon his release from prison, Remarque must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to testimony presented at his four-day trial, Remarque previously held positions at the International Bureau of Children’s Rights in Montreal, Canada, and as a Child Protective Officer for the United Nations in Africa. In May 2018, law enforcement received information that Remarque was engaging in sexually explicit conversations with a 15-year-old female. In addition, Remarque was believed to have sexually explicit images of prepubescent minors on his cell phone. On July 17, 2018, a federal search warrant was executed at Remarque’s residence in Greenbelt. Investigators recovered an external hard drive that contained files that had been copied from one of Remarque’s phones. The evidence presented at trial proved that on November 16 and November 22, 2017, Remarque received sexually explicit images of minors. Further, the evidence showed that the files included a collection of approximately 311 images and two videos of child pornography, including sexually explicit images depicting prepubescent minors.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI and the Maryland State Police for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy Hagan, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Federal Jury Convicts Charlotte Man of Armed Robbery and Firearms OffensesRead the Press Release
CHARLOTTE, N.C. – A federal jury handed down a guilty verdict today against Valentino Cabral Darosa, 29, of Charlotte, for the armed robbery of a local business and related firearms offenses, announced Dena J. King, U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join U.S. Attorney King in making today’s announcement.
According to filed court documents, evidence introduced at trial and witness testimony, on October 23, 2020, CMPD officers responded to a robbery service call at Atlantic Metals Xchange, located at 11318 N. Community House Road, in Charlotte. The store owner, identified in court documents as M.S., told officers at the scene that prior to opening for business an individual later identified as Darosa approached the store and knocked on the door. When M.S. did not immediately answer, Darosa walked away. M.S. went outside and approached Darosa. Following a short exchange, Darosa produced a firearm and forced M.S. into the business and into a back room. As trial evidence established, Darosa ordered M.S. to unplug the surveillance system’s recorder, then handcuffed M.S. and opened the safes. Darosa began stealing items from the safes and proceeded to duct-tape M.S.’s hands and ankles together. Darosa took approximately $133,980 in property and cash and the surveillance system hard drive. Darosa also took M.S.’s backpack, which contained a firearm, cash, and the victim’s wallet. After Darosa fled the scene, M.S. managed to free himself and call 911 for assistance. On November 5, 2020, CMPD officers arrested Darosa at his apartment in Charlotte. During a search of Darosa’s apartment and vehicle, law enforcement recovered several items Darosa had stolen from the business.
Court records show that Darosa was on post-release supervision when he committed the armed robbery. He also has multiple felony convictions in Mecklenburg and Cabarrus Counties and he is prohibited from possessing a firearm.
Darosa was convicted of robbery of a business affecting interstate commerce, or Hobbs Act Robbery, using or carrying a firearm during and in relation to a crime of violence, and possession of a firearm by a felon. He is currently in federal custody. A sentencing date has not been set.
In making today’s announcement U.S. Attorney King thanked the FBI and CMPD for their investigation of the case.
Assistant U.S. Attorneys Christopher Hess and Dana Washington are in charge of the prosecution.
Essex County Man Sentenced to Three Years in Prison for Unlawfully Possessing Firearm and Conspiring to Defraud Banks of over $250,000 Using Stolen Credit Cards and Blank ChecksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 36 months in prison for illegally possessing a firearm and conspiring to defraud two banks of $250,000 using stolen credit cards and blank checks, U.S. Attorney Philip R. Sellinger announced.
Tamir Duval, 23, of Newark, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of illegal possession of a firearm by a previously convicted felon, and to an information charging him with 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:
On July 27, 2020, Duval unlawfully possessed a Taurus PT740 semi-automatic handgun loaded with seven hollow nose rounds of ammunition. The firearm had been reported stolen from Gastonia, Georgia. Duval was previously convicted in Essex County Superior Court of receiving stolen property, a felony under state law.
From August 2018 through January 2020, Duval and others engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme.
The credit cards and blank checks were stolen from various New Jersey-based postal facilities and never reached their intended recipients. Duval and his conspirators used the credit cards and checks to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere. Duval and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit and then fraudulently withdrew money at various ATMs from third-party account holders’ accounts.
In addition to the prison term, Judge Wigenton sentenced Duval to five years of supervised release.
U.S. Attorney Sellinger credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the East Orange Police Department, under the direction of Chief Phyllis Bindi; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Eastern District of Wisconsin U.S. Attorney’s Office Collects over $10 Million in Civil and Criminal Actions in Fiscal Year 2021Read the Press Release
United States Attorney Richard G. Frohling announced on December 20, 2021, that the Eastern District of Wisconsin collected $10,974, 686.11 in criminal and civil actions in Fiscal Year 2021. Of this amount, $4,795,841.29 was collected in criminal actions and $6,178,844.82 was collected in civil actions.
Additionally, the Eastern District of Wisconsin worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $385,794.19 in cases pursued jointly by these offices. Of this amount, $15,007.92 was collected in criminal actions and $370,786.27 was collected in civil actions.
“Everyone in the U.S. Attorney’s Office in this district works diligently to protect the taxpayers and make crime victims whole,” said U.S. Attorney Frohling. “We are committed to recovering any funds owed to the United States, collecting restitution for victims, and ensuring that wrongdoers do not profit from their criminal activities.”
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.
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(414) 297-1700
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EDVA Takes Action Against COVID-19 Fraud in 2021Read the Press Release
ALEXANDRIA, Va. – Today Jessica D. Aber, United States Attorney for the Eastern District of Virginia, announced an update on the Eastern District of Virginia’s criminal and civil enforcement efforts to combat COVID-19 related fraud, including schemes targeting the Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL) program and Unemployment Insurance (UI) programs.
“In the past year, Virginians have endured the physical, mental, and economic hardship brought on by the COVID-19 pandemic,” said Aber. “Within the last year, we have stood firm in our commitment to protect the programs implemented by Congress to assist community members suffering from the economic effects of this pandemic and, going forward, will continue to aggressively prosecute those who steal taxpayers’ funds.”
Since the start of 2021, EDVA has charged over 30 defendants with criminal offenses based on fraud schemes connected to the COVID-19 pandemic. These cases involve attempts to defraud over $105 million from the U.S. government and unsuspecting private individuals. The success of these cases reflects a degree of reach, coordination, and expertise emblematic of EDVA’s and the Justice Department’s response to COVID-19-related fraud.
In March 2020, Congress passed a $2.2 trillion economic relief bill known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. Anticipating the need to protect the integrity of these taxpayer funds and to otherwise protect Americans from fraud related to the COVID-19 pandemic, the Department of Justice immediately stood up multiple efforts dedicated to identifying, investigating, and prosecuting such fraud.
On criminal matters, EDVA’s efforts to combat COVID-19-related fraud schemes in 2021 have proceeded on numerous fronts, including:
- Paycheck Protection Program (PPP) fraud: The PPP fraud cases charged in EDVA this year involve a range of conduct, from individual business owners who inflated their payroll expenses to obtain larger loans than they otherwise would have qualified for, to a serial fraudster applying for multiple loans using false claims about business entities and income. Most charged defendants misappropriated loan proceeds for prohibited purposes, such as the purchase of houses, cars, Cessna aircraft, jewelry, and other luxury items. In one case, U.S. v. Andrew Tezna, a Senior Executive Service (SES) employee of the National Aeronautics and Space Administration (NASA) was sentenced for submitting fraudulent applications for over $357,000 in PPP relief loans and COVID-19 benefits.
- Economic Injury Disaster Loans (EIDL) fraud: EDVA has also focused on fraud against the EIDL program, which was designed to provide loans to small businesses, agricultural and non-profit entities. Nationally, fraudsters have targeted the program by applying for EIDL advances and loans on behalf of ineligible, newly created, shell, or non-existent businesses, and diverting the funds for illegal purposes. In U.S. v. Joseph Cherry, a repeat fraudster was sentenced in EDVA for engaging in an EIDL and PPP loan fraud scheme while under federal supervision, with an intended loss to the government of nearly $232,000.
- Unemployment Insurance (UI) fraud: Due to the COVID-19 pandemic, more than $860 billion in federal funds were appropriated for UI benefits through September 2021. Early investigation and analysis indicate that international organized criminal groups have targeted these funds by using stolen identities to file for UI benefits. Domestic fraudsters, ranging from identity thieves to prison inmates, have also committed UI fraud. In U.S. v. Mary Benton et al, the defendant operated a fraudulent scheme to obtain nearly $437,000 in pandemic-related unemployment benefits by using the personal identifying information of over 30 Virginia prison inmates.
- Personal Protective Equipment (PPE) fraud: EDVA charged and prosecuted criminals who exploited the nation’s need for personal protective equipment (PPE) required to protect medical professionals and the public from contracting and spreading COVID-19. These schemes often offered to sell scarce PPE, such as N95 respirator masks, to various medical supply companies, government entities, and consumers. For example, in U.S. v. Robert Stewart, the defendant falsely stated to multiple Federal Government agencies that he was in possession of large quantities of PPE, thus putting him in the position to obtain contracts with the Department of Veteran’s Affairs (VA) and the Federal Emergency Management Agency valued at $35.1 million and $3.5 million, respectively.
- Economic Impact Payments (Stimulus Checks) Fraud: EDVA has also worked to investigate and prosecute fraudsters who attempted financial scams, counterfeiting of checks, and mail, and identity theft targeting COVID-19 stimulus checks. In U.S. v. Jonathan Drew, the defendant stole U.S. mail addressed to more than 150 individuals in EDVA, stealing more than $700,000 in checks, including $1,200 in COVID-19 stimulus payments and checks which the defendant further used to create counterfeit stimulus checks.
EDVA has also worked to shut down fraudulent websites that were facilitating consumer scams related to COVID-19 and has taken scores of actions to disrupt financial networks supporting such scams. For example, EDVA announced the seizure of seven websites used to collect personal information and that sought to exploit the increased interest in vaccines, treatments, and employment opportunities associated with the COVID-19 pandemic.
EDVA has also used numerous civil tools to address fraud in connection with CARES Act programs. For example, EDVA obtained a civil settlement of $230,414.65 with KC Investments Group, Inc. and its owner for fraud involving Paycheck Protection Program loans.
"We are dedicated to preserving the integrity of these programs that were designed and implemented to assist citizens during a time of uncertainty and strain related to the COVID pandemic; and will continue to work with our partners to investigate and hold accountable those who manipulate these government resources for personal gain,” said Stanley M. Meador, Special Agent in Charge of the Federal Bureau of Investigation (FBI) Richmond Field Office.
“The NASA Office of Inspector General is committed to working with the EDVA in aggressively investigating allegations of wrongdoing targeting PPP, EIDL, and UI programs,” said Robert Steinau, Assistant Inspector General for Investigations for NASA. “We will continue to pursue and hold those accountable that defraud these crucial programs.”
“Through the dedicated efforts of Special Agents around the world, HSI conducted investigations into the sale of counterfeit personal protective equipment, disrupted financial fraud schemes that exploited COVID-19 relief programs, shut down websites that defrauded consumers, and interdicted shipments of dangerous prohibited pharmaceuticals and medical supplies through Operation Stolen Promise,” said Ray Villanueva, Special Agent in Charge of Homeland Security Investigations (HSI), Washington, D.C. “These efforts help protect American citizens from the transnational criminal organizations who seek to exploit the COVID-19 pandemic for financial gain.”
“Those who commit Covid fraud are robbing taxpayers while hurting the people who truly needed the financial support,” said Darrell Waldon, Internal Revenue Service Criminal Investigation (IRS-CI) Special Agent in Charge, Washington DC Field Office. “We will continue to prioritize COVID-19 fraud investigations and ensure those who commit it are brought to justice.”
“Each day, the OIG stands beside the nation’s robust diverse small business community by safeguarding the unique SBA programs established to support their development and growth,” said the Small Business Administration’s (SBA) Office of Inspector General’s Eastern Region Special Agent in Charge, Amaleka McCall-Brathwaite. “OIG remains committed to rooting out bad actors and protecting the integrity of SBA programs every day. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“Initiatives like our Newport News Financial Crimes Task Force were created to crack down on various white-collar crimes, to include COVID-19 related fraud schemes. Our continued partnerships with area law enforcement, prosecutors and financial institutions will assist us in identifying and prosecuting those who commit pandemic-related fraud offenses involving the U.S. Mail,” said Daniel Adame, Postal Inspector in Charge of the Washington Division.
“So long as criminals continue to exploit pandemic relief programs, the U.S. Secret Service will continue to investigate and identify them for prosecution,” said U.S. Secret Service Special Agent in Charge Jerald Page. “The protection of our national economy and financial infrastructure has remained a critical part of our mission for more than 150 years, and our dedicated investigators will continue to work tirelessly to ensure that protection from any and all threats.”
“COVID-19 demands have created a climate for bad actors to pursue unique and considerable opportunities for fraud," said VA Inspector General Michael J. Missal. “This office is actively engaging with our law enforcement partners to identify those who would capitalize on this pandemic to steal from veterans and taxpayers.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud related to Unemployment Insurance programs,” stated Troy W. Springer, Acting Special Agent-in-Charge, Washington Region, U.S. Department of Labor Office of Inspector General. “We will continue to work with the U.S. Attorney’s Office, our law enforcement partners, and the Virginia Employment Commission, to protect the integrity of programs intended for unemployed American workers, including those who continue to be affected by the ongoing COVID-19 pandemic.”
Some of the major COVID-19-related cases prosecuted by EDVA in 2021 are as follows:
Case Name
Case #
Program Targeted
Intended Loss to Taxpayer
U.S. v. Punelli*
1:21-cr-224
PPP, EIDL
$55,606,000
U.S. v. Stewart
1:21-cr-5
PPP, EIDL, PPE
$39,576,500
U.S. v. Mitchums*
4:21-cr-85
PPP, EIDL
$5,100,000
U.S. v. Kindambu
1:20-cr-260
PPP
$2,501,753
U.S. v. Noel*
4:21-cr-72
UI
$469,635
U.S. v. Benton et al.
2:21-cr-33
UI
$436,834
U.S. v. Tezna
1:21-cr-77
PPP, EIDL, UI
$357,734
U.S. v. Suber
2:20-cr-110
PPP
$350,000
U.S. v. Cherry
4:20-cr-27
PPP, EIDL
$231,900
KC Investments
Civil Settlement
PPP
$230,414
U.S. v. Smith
3:21-cr-60
UI
$223,984
U.S. v. Khan*
1:21-cr-207
EIDL
$110,000
U.S. v. Tierney et al
3:21-cr-32
UI
$74,805
U.S. v. Jefferson
4:20-cr-64
EIDL
$25,000
U.S. v. Drew
1:21-cr-71
Stimulus
$1,200
*pending sentencing
In addition to these efforts, the Newport News Financial Crimes Task Force, led by the U.S. Postal Inspection Service (USPIS) and in partnership with EDVA, the FBI Norfolk Field office through its Resident Agency in Newport News, and the Washington Regional Office of the U.S. Department of Labor Office of Inspector General (DOL-OIG), have launched a joint pandemic counter-fraud operation focused on the Virginia Peninsula region. This collaborative initiative targets the trend of criminal organizations and networks incorporating pandemic-related fraud into their other illegal activities. As of December 13, 2021, this operation has successfully initiated 21 investigations, resulting in 14 individuals charged in 7 criminal cases, with identified losses of over $800,000 related to the charged cases. An additional 14 cases remain ongoing and active.
All these efforts have been made possible through the diligent work of a wide range of law enforcement partners from the FBI (Washington, Norfolk and Richmond Field Offices), DOL-OIG, U.S. Secret Service, IRS-CI, Defense Criminal Investigative Service, HSI, USPIS, the Offices of Inspectors General from SBA, Department of Homeland Security, Social Security Administration, Federal Deposit Insurance Corporation, NASA, Department of Health and Human Services, and the VA.
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 the government to enhance efforts to combat and prevent pandemic-related fraud. The Virginia Coronavirus Fraud Task Force is a federal and state partnership led by the Eastern and Western Districts of Virginia along with fraud investigators from the FBI and Virginia State Police. The task force’s mission is to identify, investigate, and prosecute fraud related to the ongoing pandemic. The task force reviews and investigates all credible leads of fraud associated with COVID-19, focusing on schemes to exploit vulnerable populations, including the elderly and concerned citizens.
EDVA continues its fight against COVID-19 related fraud. To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Des Moines Woman Sentenced to Federal Prison for Fentanyl Overdose DeathRead the Press Release
DES MOINES, IA – On Thursday, December 16, 2021, Tonia Sue White, age 41, of Des Moines, was sentenced by United States District Court Judge Rebecca Goodgame Ebinger to 188 months in prison for distributing a controlled substance which resulted in death. White previously pleaded guilty to the charge.
On June 17, 2020, members of the Des Moines Police Department were dispatched to a Walgreens in Des Moines for a drug overdose. The victim was rushed to the hospital and was later pronounced dead. Members of the Des Moines Police Department Vice-Narcotics Unit made contact with the victim’s associate, who was with the victim at the time of the overdose, who provided information that led detectives to White. In a post-Miranda interview, White admitted to distributing a quantity of heroin to the victim’s associate, which was shared with the victim. Lab results indicated the substance White distributed was a heroin and fentanyl mixture.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The investigation was conducted by the Des Moines Police Department. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Des Moines Man Sentenced to over 12 Years in Prison for His Role in Importing Methamphetamine from Mexico to IowaRead the Press Release
A Des Moines man who was involved in the importation and distribution of multiple kilograms of methamphetamine was sentenced on December 17, 2021, to over twelve years in federal prison.
Jack Mazariegos-Galicia, age 20, from Des Moines, Iowa, received the prison sentence after a May 24, 2021 guilty plea to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that, beginning in 2017, law enforcement was investigating a large-scale methamphetamine organization operating out of Mexico. The head of the organization, Mario Hernandez, was in Mexico and worked with others, including Mazariegos-Galicia, to transport kilogram quantities of methamphetamine from Mexico to Iowa. In June 2020, law enforcement conducted a traffic stop of a vehicle occupied by Mazariegos-Galicia and an associate. The stop took place outside of Des Moines and the vehicle had travelled from Texas. Inside the vehicle, officers located nearly 5,000 grams of pure “ice” methamphetamine. Mazariegos-Galicia and his associated had picked up the methamphetamine in Texas and drove it back to Iowa for it to be distributed in Iowa. In total, Mazariegos-Galicia’s role in the group involved over 43,000 grams of methamphetamine.
Mazariegos-Galicia was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Mazariegos-Galicia was sentenced to 151 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorneys Ashley Corkery and Emily Nydle. This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Mid-Iowa Task Force (Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Marshalltown Police Department), Iowa National Guard and Counter Drug Program, Tri-County Task Force (Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office), the Federal Bureau of Investigation, the FBI Safe Streets Task Force, the Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2034.
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Delray Beach Man Sentenced to 17 Years in Prison for Bank Fraud, False Statements, and Aggravated Identity Theft Involving COVID-19 Relief ProgramsRead the Press Release
GAINESVILLE, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida announced the sentencing of Jeremie Saintvil, 46, of Delray Beach, Florida. Saintvil was sentenced to a total of 17 years in prison followed by five years of supervised release. Further, Saintvil was ordered to pay $1,560,628.38 in restitution to several banks, credit unions, and credit card companies, and to the United States Small Business Administration (SBA).
Saintvil’s sentence was the result of an eight-day jury trial that resulted in guilty verdicts on September 24, 2021. Saintvil was found guilty of bank fraud, making false statements to a federally insured financial institution, aggravated identity theft, and making false statements to a federal agency.
“The theft of vital taxpayer relief funds and victimization of our elderly is reprehensible,” stated Acting U.S. Attorney Coody. “The deceptive and sophisticated acts of this defendant not only diverted emergency financial assistance from small businesses necessary for job retention, but also victimized our elderly citizens, many of whom due to advanced age or illness, were more vulnerable and unable to readily discern their identities had been stolen and used for illegal acts. With the assistance of our dedicated law enforcement partners, we are committed to investigating and prosecuting those who engage in acts of elder abuse and covid-related fraud.”
Between February 2018 and June 2020, Saintvil submitted fraudulent applications seeking more than $1.5 million in Paycheck Protection Program (PPP) and Economic Injury Disaster (EIDL) loans offered by the SBA. As part of his scheme, Saintvil fraudulently obtained the identities of elderly individuals who were residents of senior living facilities, whom he then represented were principles in the fictitious businesses seeking the forgivable loans. The fraudulent applications, which were directed to nine different federally insured credit unions, banks, and the SBA, misrepresented the number of employees and payroll expenses of the alleged companies, and made numerous other inaccurate statements in support of the PPP and EIDL loan applications, including submitting falsified tax documents and bank account information.
“Today’s sentencing is the final chapter in this investigation and can hopefully begin the healing process for all of those impacted by the defendant’s nefarious actions,” said IRS Criminal Investigation Special Agent in Charge Brian Payne. “We will continue to investigate criminals like Saintvil who steal identities, rob vital taxpayer relief funds, and victimize the elderly.”
The Coronavirus Aid Relief and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The Small Business Administration (SBA) guarantees PPP loans which are funded by participating financial institutions. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP then allows the interest and principal to be forgiven if businesses spent the loan proceeds on qualifying expenses within a set time-period and used at least a certain percentage of the loan proceeds for payroll expenses.
“In a time of national turmoil and uncertainty, this defendant flagrantly defrauded programs intended to assist Americans and their businesses,” said Sean T. Ryan, Acting Special Agent in Charge of the FBI Jacksonville Division. “His total disregard for his fellow citizens during the pandemic – especially vulnerable elders – revealed his true colors as a fraudster. The FBI will continue to allocate resources to investigate COVID-19 and elder fraud, and work alongside our partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”
“Lying to gain access to SBA’s pandemic response programs is not without consequence,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our office will aggressively pursue evidence of wrongdoing and bring those responsible to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
This conviction was the result of a joint investigation by Internal Revenue Service - Criminal Investigations, the Federal Bureau of Investigation, and the SBA-Office of Inspector General. Assistant United States Attorneys Justin M. Keen and David Byron prosecuted the case.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Learn more about the Justice Department’s Elder Justice and National Nursing Home Initiatives at http://www.justice.gov/elderjustice/.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Danville Man Pleads Guilty to Federal Charges from Virginia, North CarolinaRead the Press Release
DANVILLE, VA - A Danville, Virginia man, who spent two years as a fugitive after embezzling $600,000 from a Danville credit union before being arrested in Durham, North Carolina, pleaded guilty today to federal charges stemming from his conduct in both Virginia and North Carolina.
Jorge Omar Navarro, 30, pleaded guilty today in federal court in the Middle District of North Carolina to one count of possession with intent to distribute cocaine and one count of possession of firearms in furtherance of a drug trafficking crime for his conduct in Durham. Navarro also pleaded guilty to federal charges arising out of the Western District of Virginia: one count of embezzlement and one count of using counterfeit currency with the intent to commit fraud for his conduct in Danville.
“A unique course of criminality culminated in today’s guilty plea, which ensures that the defendant will be sentenced for the entire range of his misconduct,” said Sandra J. Hairston, United States Attorney for the Middle District of North Carolina. “Credit for putting an end to the spree goes to officers of the Durham Police Department, whose thoroughness revealed that the defendant was in fact a drug trafficker and a fugitive from justice.”
“This defendant used his position of trust within the credit union to gain access to large sums of money only to abuse that trust in the name of greed,” United States Attorney Chris Kavanaugh of the Western District of Virginia said today. “Fortunately, the men and women of the Danville Police Department acted swiftly and were able to keep all of the counterfeit bills in this case from making their way into circulation.”
Navarro was the head teller at a branch of URW Federal Credit Union in Danville. As head teller, Navarro had access to the vault and authority to order money for the branch. In September 2018, Navarro fled after taking $600,000 in cash from the credit union’s vaults and replacing it with counterfeit bills. Navarro spent two years as a fugitive.
Navarro remined a fugitive until March 2021, when the Durham Police Department in North Carolina responded to a report of shots fired and found a man (later identified as Navarro) covered in blood who claimed to have been robbed at gunpoint. After obtaining a search warrant for the premises, they located multiple firearms, kilograms of cocaine and marijuana, drug paraphernalia, and $74,000 in cash. Navarro later admitted to investigators that he obtained the cash by selling drugs and confirmed his true identity, admitting that he had been using an alias after an incident with a bank in Virginia.
He is scheduled to be sentenced on June 21, 2022, and faces a minimum of ten years in prison and a maximum penalty of life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Danville Police Department, the United States Secret Service, the Durham Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Homeland Security Investigations investigated the case.
The case is being prosecuted by Assistant U.S. Attorneys Eric L. Iverson for the Middle District of North Carolina and Rachel Barish Swartz for the Western District of Virginia.
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Danville Man Pleads Guilty to Federal Charges from Virginia, North CarolinaRead the Press Release
DANVILLE, Va. – A Danville, Virginia man, who spent two years as a fugitive after embezzling $600,000 from a Danville credit union before being arrested in Durham, North Carolina, pleaded guilty today to federal charges stemming from his conduct in both Virginia and North Carolina.
Jorge Omar Navarro, 30, pleaded guilty today in federal court in the Middle District of North Carolina to one count of possession with intent to distribute cocaine and one count of possession of firearms in furtherance of a drug trafficking crime for his conduct in Durham. Navarro also pleaded guilty to federal charges arising out of the Western District of Virginia: one count of embezzlement and one count of using counterfeit currency with the intent to commit fraud for his conduct in Danville.
“A unique course of criminality culminated in today’s guilty plea, which ensures that the defendant will be sentenced for the entire range of his misconduct,” said Sandra J. Hairston, United States Attorney for the Middle District of North Carolina. “Credit for putting an end to the spree goes to officers of the Durham Police Department, whose thoroughness revealed that the defendant was in fact a drug trafficker and a fugitive from justice.
“This defendant used his position of trust within the credit union to gain access to large sums of money only to abuse that trust in the name of greed,” United States Attorney Chris Kavanaugh of the Western District of Virginia said today. “Fortunately, the men and women of the Danville Police Department acted swiftly and were able to keep all of the counterfeit bills in this case from making their way into circulation.”
Navarro was the head teller at a branch of URW Federal Credit Union in Danville. As head teller, Navarro had access to the vault and authority to order money for the branch. In September 2018, Navarro fled after taking $600,000 in cash from the credit union’s vaults and replacing it with counterfeit bills. Navarro spent two years as a fugitive.
Navarro remined a fugitive until March 2021, when the Durham Police Department in North Carolina responded to a report of shots fired and found a man (later identified as Navarro) covered in blood who claimed to have been robbed at gunpoint. After obtaining a search warrant for the premises, they located multiple firearms, kilograms of cocaine and marijuana, drug paraphernalia, and $74,000 in cash. Navarro later admitted to investigators that he obtained the cash by selling drugs and confirmed his true identity, admitting that he had been using an alias after an incident with a bank in Virginia.
At sentencing, he faces a minimum of ten years in prison and a maximum penalty of life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Danville Police Department, the United States Secret Service, the Durham Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and Homeland Security Investigations investigated the case.
The case is being prosecuted by Assistant U.S. Attorneys Eric L. Iverson for the Middle District of North Carolina and Rachel Barish Swartz for the Western District of Virginia.
Council Bluffs Man Sentenced to Prison for Firearm OffenseRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man, Jaime Antonio Hernandez, Jr., age 28, was sentenced on December 14, 2021, by United States District Court Chief Judge John A. Jarvey to 84 months in prison for Prohibited Person in Possession of a Firearm. His term of imprisonment is to be followed by three years of supervised release.
In June of 2020 law enforcement located Hernandez in an apartment in Council Bluffs. Hernandez was found to be in possession of a firearm, methamphetamine and drug paraphernalia. Hernandez pleaded guilty to Prohibited Person in Possession of a Firearm in February of 2021.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa Division of Narcotics Enforcement, Pottawattamie County Sheriff’s Office, Council Bluffs Police Department, and Omaha Police Department investigated the case.
Council Bluffs Man Sentenced for Human Trafficking OffensesRead the Press Release
COUNCIL BLUFFS, IA – Hershel James Ratliff, age 71, of Council Bluffs, was sentenced Thursday December 16, 2021, by United States District Court Chief Judge John A. Jarvey to 360 months in prison for six counts of Human Trafficking and one count of Distribution of a Controlled Substance to a Minor. His prison term will be followed by ten years of supervised release. A jury found Ratliff guilty of the offenses on July 23, 2021.
The Council Bluffs Police Department began investigating Ratliff in August 2019 after a mandatory reporter made a report to the Iowa Department of Human Services about information reported by a fourteen-year-old child that involved inappropriate sexual conversations and advances by Ratliff. As the investigation continued, numerous other young adults were identified as being victimized by Ratliff while they were in high school. Ratliff provided drugs, alcohol, and a place to party for teenagers. Ratliff groomed teenagers and after cultivating a trusting relationship with them, convinced them to engage in various sex acts with him and his friends for money, alcohol, or drugs. Ratliff also used his business, Jimmy’s All-American Diner and his rental properties to groom and recruit victims. This illegal activity spanned from 2012-2019.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Council Bluffs Police Department, Southwest Iowa Narcotics Task Force, and Federal Bureau of Investigation investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Colorado Woman and South Florida “Master” Guilty of Producing Child Pornography of Six-Year-Old Boy; Woman Sentenced to 20 YearsRead the Press Release
Miami, Florida – On Friday, a Lake Worth man and registered sex offender who produced child pornography together with a Colorado woman with whom he shared a dominant-submissive relationship pled guilty to child exploitation crimes in Miami federal court. The Colorado woman pled guilty last year and was sentenced to 20 years in prison.
In November 2019, Robert Dunn and Tonya Bagley began chatting on social media and developed an online relationship. Bagley and Dunn, both in their early forties, agreed in writing for Bagley to photograph herself performing oral sex on a six-year-old boy. Bagley, who was in Colorado, did so and sent the child sexual abuse images to Dunn in Lake Worth, Florida through a social media messenger application. Law enforcement officers arrested Dunn at his home on March 10, 2020. After later learning about Bagley, the FBI arrested Bagley at her Colorado home.
Dunn pleaded guilty to conspiring to produce, producing, receiving, and possessing child pornography. U.S. District Judge Roy K. Altman will sentence Dunn in federal court in Miami on February 25, 2022. Dunn faces a mandatory minimum sentence of 25 years imprisonment and a maximum sentence of 120 years’ imprisonment.
On December 10, 2020, Bagley pled guilty in West Palm Beach federal court to conspiring to produce child pornography and transmitting information about a minor. On May 19, 2021, U.S. District Judge Donald M. Middlebrooks sentenced Bagley to 20 years in a federal prison. In addition, the judge ordered Bagley to pay restitution to the abused boy.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
FBI Miami investigated the matter. Grand County Colorado Sheriff’s Office assisted.
Assistant U.S. Attorney Gregory Schiller prosecuted the cases. Assistant U.S. Attorney William T. Zloch handled asset forfeiture.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
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 numbers 20-cr-80069 and 20-cr-80085.
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College Football Player Arrested on Federal Charges of Orchestrating Fraudulent Scheme to Obtain COVID-Related Jobless BenefitsRead the Press Release
LOS ANGELES – A college football player was taken into custody this morning on federal charges alleging he orchestrated a scheme that fraudulently sought hundreds of thousands of dollars in COVID-related unemployment benefits.
Abdul-Malik McClain, 22, who currently attends school in Jackson, Mississippi, surrendered to federal law enforcement this morning in Los Angeles before being arraigned this afternoon in United States District Court.
A federal grand jury indictment returned on December 16 and unsealed this afternoon charges McClain with 10 counts of mail fraud and two counts of aggravated identity theft. McClain, who was residing in Los Angeles in 2020 during the alleged scheme, pleaded not guilty to the charges against him and was ordered released on a $20,000 bond.
According to the indictment, while a member of his university’s football team, McClain organized and assisted a group of other football players in filing fraudulent claims for unemployment benefits, including under the Pandemic Unemployment Assistance (PUA) program established by Congress in response to the pandemic’s economic fallout. The indictment alleges that the claims – which were filed with the California Employment Development Department (EDD), the administrator of the state’s unemployment insurance (UI) benefit program – contained false information about the football players’ supposed prior employment, pandemic-related job loss, and job-seeking efforts in California.
The indictment alleges that the false statements in the UI applications led EDD to authorize Bank of America to mail debit cards to the football players. Those debit cards were loaded with at least hundreds of dollars, and sometimes thousands of dollars, in unemployment benefits, which the recipients used to make cash withdrawals at ATMs and to fund personal expenses. In some cases, McClain sought and obtained a cut for helping others file fraudulent UI applications.
McClain and his co-schemers also allegedly filed applications in their own names, in the names of other friends and associates, and in the names of identity theft victims. According to the indictment, these claims also falsely stated that the claimants were self-employed workers, including athletic trainers and tutors, who had lost work in California as a result of the pandemic. These allegedly false claims also induced EDD to authorize Bank of America to issue debit cards in the names of the claimants. The indictment alleges that McClain and his co-schemers caused those cards to be mailed to addresses where they could collect the mail.
McClain allegedly caused at least three dozen fraudulent applications to be filed with EDD during the summer of 2020. According to the indictment, those fraudulent applications sought at least $903,688 in PUA benefits and led the EDD to pay out at least $227,736.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
During today’s arraignment, McClain was ordered to stand trial on February 15.
Each mail fraud count carries a statutory maximum sentence of 20 years in federal prison. The aggravated identity theft counts carry a two-year mandatory prison sentence consecutive to any sentence imposed on the mail fraud counts.
The FBI; the U.S. Department of Labor, Office of Inspector General; the Federal Deposit Insurance Corporation, Office of Inspector General; the U.S. Treasury Inspector General for Tax Administration; and the Social Security Administration, Office of Inspector General investigated this matter. The university, called “University 1” in the indictment, cooperated in this investigation.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section is prosecuting this 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. More information on the Justice Department’s response to the pandemic may be found here.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF online Complaint Form.
Child Sex Trafficker and Armed Robber Sentenced to Decades in Federal PrisonRead the Press Release
Miami, Florida – A federal district judge in Miami last week sentenced 35-year-old Christopher Grant Proby to 30 years in prison for sex trafficking a minor and for participating in the armed robbery of a Riviera Beach plumber.
In December 2017, Proby initiated a social media conversation with a 14-year-old girl. Proby asked about the minor’s sexual experience and said that he wanted to have sex with her. In late January 2018, the girl ran away from her foster home to meet with Proby in Riviera Beach. They engaged in sexual activity.
In June 2018, Proby used on-line social media to advertise the girl for commercial sex. When men responded to the advertisement requesting to have sex with the minor, Proby communicated with them by text message to arrange a price, meeting location, and specify the sex acts that the minor would perform. Proby drove the minor to meet with these men to engage in commercial sex acts, and took any money that she earned.
On July 11, 2018, Proby and his codefendants, Jamal Lamar Head and Keon Travy Glanton, worked together to rob a Roto-Rooter plumber of valuable plumbing equipment in Riviera Beach, Florida. Head, Proby, and Glanton directed the minor to place a service all to Roto-Rooter. At their direction, the minor lured the Roto-Rooter plumber to an abandoned residence in Riviera Beach, where Head assaulted him with a firearm. Proby and Glanton took valuable plumbing equipment from the vehicle while Head held the victim at gunpoint.
Head and Glanton were previously sentenced to 60 and 33 years in prison, respectively, for the armed robbery of the Riviera Beach plumber, as well as for other crimes, including the murder of a different plumber from Miami.
U.S. District Judge Roy K. Altman imposed the sentences.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida; Christopher Robinson, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), Miami Field Office; and George L. Piro, Special Agent in Charge, FBI Miami made the announcement.
This case was investigated by ATF Miami, the FBI’s Child Exploitation and Human Trafficking Task Force, and Miami Dade Police Department. The Palm Beach County Sheriff’s Office and Riviera Beach Police Department assisted. This case was prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Jessica Kahn Obenauf. AUSA Richard Brown is handling asset forfeiture.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-20063.
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Chicago Physician Charged with Insider TradingRead the Press Release
CHICAGO — A Chicago physician used insider information to purchase shares of a California-based biotechnology company before it publicly announced positive results from a clinical trial of an experimental cancer drug, according to a federal criminal charge filed by the U.S. Attorney’s Office in Chicago.
DANIEL V.T. CATENACCI, a gastrointestinal medical oncologist in Chicago, served as one of the lead physicians and primary field investigators on the biotechnology company’s clinical trial. Dr. Catenacci through this position allegedly received confidential information about the company and its clinical trial results.
In November 2020, Dr. Catenacci used material, non-public information about the trial results to make more than $134,000 in illegal profits from the purchase and sale of securities in the company, according to a criminal information filed Friday in U.S. District Court in Chicago. Dr. Catenacci purchased more than 8,000 shares before the company announced positive results from the trial, and then sold those shares shortly after the announcement, the information states. In the interim, the shares held by Dr. Catenacci tripled or quadrupled in value, the information states.
The information charges Dr. Catenacci, 45, of Chicago, with one count of securities fraud. The charge is punishable by up to 20 years in federal prison. Arraignment in federal court in Chicago has not yet been scheduled.
The charge was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The U.S. Securities and Exchange Commission provided valuable assistance. Assistant U.S. Attorney Brian Havey represents the government.
The public is reminded that an information is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Calvert County Felon Convicted After Four Day Trial for Illegal Possession of a FirearmRead the Press Release
Baltimore, Maryland – A federal jury convicted Earl Leroy Griffin, Jr., age 45, of Sunderland, Maryland, late on December 17, 2021, for being a felon in possession of a firearm.
The conviction was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Calvert County Sheriff Mike Evans; and Calvert County State’s Attorney Robert Harvey.
According to the evidence presented at his four-day trial, on September 5, 2019, law enforcement executed a search warrant at Griffin’s residence and on his vehicle as part of a drug investigation. In Griffin’s locked vehicle, law enforcement recovered a stolen .40 caliber handgun, loaded with 14 rounds of ammunition; powder cocaine, crack cocaine and marijuana; and three Maryland driver’s licenses bearing Griffin’s name and photo. The vehicle was registered to Griffin. When he was searched incident to his arrest, Griffin had the keys to his vehicle and $1,870 in cash in his pockets.
Griffin had four previous felony drug convictions and knew that as a result, he was prohibited from possessing a firearm and ammunition. This conviction qualifies Griffin for armed career criminal status.
The jury acquitted Griffin on charges of possession with intent to distribute controlled substances and possession of a firearm in furtherance of drug trafficking.
As an armed career criminal, Griffin faces a mandatory minimum sentence of 15 years in federal prison and a maximum of life in prison for being a felon in possession of a firearm. U.S. District Judge George J. Hazel has scheduled sentencing for April 19, 2022 at 10:00 a.m.
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 DEA, the Calvert County Sheriff’s Office, and the Calvert County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Barron thanked Assistant U.S. Attorneys Michael Morgan and Timothy F. Hagan, Jr., who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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California Man Sentenced to 3 Years in Prison for Making Threats Against Political Officials and Journalists Relating to the Outcome of the 2020 Presidential ElectionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ROBERT LEMKE, a California man who threatened members of Congress and journalists in connection with the outcome of the 2020 presidential election, was sentenced to 36 months in prison after previously having pled guilty to making threatening interstate communications. U.S. District Judge Alvin K. Hellerstein imposed today’s sentence.
U.S. Attorney Damian Williams said: “Robert Lemke, refusing to accept the result of the 2020 presidential election, sent messages threatening dozens of victims, including journalists, elected officials, and their families, for the perceived offense of stating the facts. Rather than attempting to effect change through the lawful forms of expression that all of us Americans still enjoy, Lemke sought to quell freedom of expression, to intimidate and instill fear in others by threats of violence. Today, Robert Lemke was rightly sentenced to prison for his conduct.”
According to the allegations in the Complaint, Superseding Indictment, and other documents in the public record, as well as statements made in public court proceedings:
From November 2020 through early January 2021, LEMKE sent threatening electronic and audio messages to approximately 50 victims, including journalists and politicians, targeting those individuals because of their statements expressing that then-President Trump had lost the 2020 presidential election. On January 6, 2021, the same day that individuals purporting to protest the 2020 presidential election gathered in Washington, D.C., and stormed the Capitol Building, LEMKE sent a series of these threatening text messages to journalists, members of Congress, other politicians, and their families.
As the attack on the Capitol Building was ongoing, LEMKE sent threatening text messages to a New York City-based family member of a journalist (the “Journalist”), stating: “[The Journalist’s] words are putting you and your family at risk. We are nearby, armed and ready. Thousands of us are active/retired law enforcement, military, etc. That’s how we do it.”
At approximately the same time that LEMKE was sending threats directed at the Journalist, LEMKE also sent threats to the brother of a New York City-based U.S. Congressman (the “Congressman”), citing the Congressman’s statements about the result of the 2020 presidential election. LEMKE’s text messages, which included a picture of a home in the same neighborhood as the home of the Congressman’s brother, stated:
Your brother is putting your entire family at risk with his lies and other words. We are armed and nearby your house. You had better have a word with him. We are not far from his either. Already spoke to [the Congressman’s son] and know where his kids are.
. . . your words have consequences. Stop telling lies; Biden did not win, he will not be president. We are not[] white supremacists. Most of us are active/retired law enforcement or military. You are putting your family at risk. We have armed members near your home. . . . Don’t risk their safety with your words and lies.
LEMKE acquired and used at least three different phone numbers and various electronic accounts to mask his identity when sending threats to his victims. LEMKE was not in fact affiliated with law enforcement or the U.S. military as he claimed in some of his threats. On or about November 7, 2020, LEMKE posted to Facebook: “Folks. Be ready for war. Trump has refused to cede. Evidence shows fraud occurred and the Supreme Court cases will be successful. We blockchained and watermarked ballots in 16 states. Trump will prevail.[] Spread this message. . . . FAITH my fellow Republicans. Do not give up.”
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In addition to the prison sentence, LEMKE, 36, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the Federal Bureau of Investigation (“FBI”), the New York City Police Department, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the U.S. Attorney’s Office for the Northern District of California and the FBI’s San Francisco Field Office for their assistance.
The case is being handled by the Office’s National Security and International Narcotics Unit. Assistant United States Attorneys Kimberly J. Ravener and Kyle A. Wirshba are in charge of the prosecution.
California Employment Development Department Contract Employee Sentenced to 25 Months for Pandemic-Related FraudRead the Press Release
Assistant U. S. Attorney Stephen H. Wong (619) 546-9464
NEWS RELEASE SUMMARY – December 20, 2021
SAN DIEGO – Nyika Gomez, a San Diego resident and former contract employee with the California Employment Development Department (EDD), was sentenced in federal court to 25 months in prison and ordered to pay $93,248 dollars in restitution in connection with a scheme to submit fraudulent pandemic unemployment insurance claims for California state prisoners.
As part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act of 2020, Congress provided new unemployment benefits for those affected by the COVID-19 pandemic who would not otherwise qualify for unemployment insurance. In California, the EDD administers unemployment insurance benefits. In Arizona, benefits are administered by the Arizona Department for Economic Security (AZDES).
Gomez was sentenced on December 15. According to her plea agreement, in July 2020, Gomez devised a scheme to defraud the EDD and AZDES by submitting Pandemic Unemployment Assistance claims for prisoners and other persons who were not eligible for such assistance, including making up false claims about their employment. Gomez submitted more than $214,344 in fraudulent claims and collected $93,248 on those claims. Gomez arranged for the stolen benefits – paid out in the form of a debit card – to be mailed directly to her residence, or to the residence of someone working with her. Gomez returned some of the proceeds to the prison inmates by transferring money to their prison accounts and kept some of the proceeds for herself.
The charges are the product of an investigation jointly undertaken by the U.S. Department of Labor, Office of the Inspector General (DOL-OIG), the California Employment Development Department Office of Investigations (EDD OI), United States Postal Inspection Service (USPIS), and Homeland Security Investigations (HSI).
“Pandemic unemployment insurance programs are designed to support workers who are suffering financial hardship during this unprecedented time,” said Acting U.S. Attorney Randy Grossman. “This defendant was supposed to help unemployed workers. Instead, she cut a hole in their safety net, and she has been be held to account for her greedy actions.” Grossman thanked the prosecution team and the state and federal investigators for their excellent work on this case.
If you think you are a victim of COVID-19 fraud, immediately report it the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800.
In addition, the public is urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANTS Case Number 20-CR-729-CAB
Nyika Gomez Age: 31 San Diego, CA
SUMMARY OF CHARGES
Count 5: Title 18, United States Code, section 1343 (wire fraud)
Maximum penalty: Twenty years in prison; fine; penalty assessment
Count 12: Title 18, United States Code, section 1028A; (aggravated identity theft)
Maximum penalty: Two-year mandatory minimum term of imprisonment, consecutive to any term of imprisonment imposed for Counts 1 through 9.
AGENCIES
U.S. Department of Labor, Office of the Inspector General
California Employment Development Department Office of Investigations
California Department of Corrections and Rehabilitation-Investigative Services Unit
United States Postal Inspection Service
Homeland Security Investigations
Butler, PA Drug Dealer Gets Federal Prison Sentence that Begins After His Pending State Cases are ResolvedRead the Press Release
PITTSBURGH, PA – On Thursday, December 16, 2021, a former resident of Butler, Pennsylvania, was sentenced in Pittsburgh on a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Charles Perkins, age 27, was sentenced to 15 months’ imprisonment, followed by three years of supervised release. This sentenced was imposed by Judge Joy Flowers Conti on one count of possession with intent to distribute a quantity of fentanyl and a quantity of cocaine base, in the form commonly known as crack.
In connection with a change of plea hearing, the government informed the Court that on August 6, 2020, the Pennsylvania State Police conducted a traffic stop on a silver Ford sedan due to non-functioning brake lights at South Duffy Road and New Castle Road in Butler, Pennsylvania. Law enforcement identified Charles Perkins as the driver and sole occupant of the vehicle. While speaking with Mr. Perkins, the trooper observed, in plain view, marijuana on the front passenger seat and several stamp bags in a plastic bag on the floor behind the driver’s seat. Mr. Perkins admitted that the plastic bag behind the front passenger seat was his. Subsequently, the trooper detained Mr. Perkins and conducted a search of the vehicle. The searched resulted in the seizure of cocaine base, fentanyl packaged within 300 stamp bags, and $965.00. Law enforcement advised Mr. Perkins of his rights, which he waived. Mr. Perkins admitted to being on his way to Butler City to sell the seized substances. Mr. Perkins also stated that he knew he would be going to prison and that he would immediately begin distributing again upon release because there was too much money to stop.
The defendant was remanded into the custody of the U.S. Marshals to be returned to the Butler County Prison. The defendant is pending five cases in the Butler County Court of Common Pleas. He will begin his federal sentence upon resolution of the pending cases.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney, Cindy K. Chung commended the Pennsylvania State Police and the Drug Enforcement Administration for conducting the investigation leading to the prosecution of this case.
Bridgeton man pleads guilty for armed carjacking that resulted in the death of the victimRead the Press Release
ST. LOUIS – United States District Court Judge Stephen R. Clark accepted a plea of guilty from Anthony D. Jones, 28, of Bridgeton, Missouri for his role in the May 4, 2019 carjacking and death of Jessica Vinson. Jones was previously indicted by a grand jury in July 2020. Judge Clark set sentencing for April 20, 2022.
According to the plea agreement, on the morning of May 4, 2019, Jessica Vinson was found deceased, her body abandoned in an alley behind the 5300 block of Vernon Avenue, Saint Louis, Missouri, within the Eastern District of Missouri. Vinson was shot twice in the side of the head and once in the back. Her car, a 2015 Dodge Charger, was missing and her home in the 4300 block of Maffitt Avenue had been burglarized.
The investigation into Vinson's murder revealed that in the early morning hours of May 4, 2019, Jones and Vinson met outside of a club in Saint Louis, Missouri. Jones and Vinson did not know each other prior to May 4, 2019. Befriending the victim, Jones drove Vinson's vehicle into the alley behind the 5300 block of Vernon Avenue, Saint Louis, Missouri and shot Vinson in the head and back. Jones then pulled Vinson's body out of the vehicle, fired another shot at Vinson's head, then returned to Vinson's vehicle, entered the driver's side door, and drove away.
On May 6, 2019, St. Louis Metropolitan Police Department (SLMPD) officers attempted to conduct a traffic stop of Ms. Vinson’s vehicle, which fled at a high rate of speed and eventually crashed near an exit ramp at I-70 and Grand Avenue. Jones fled from the driver’s seat of the vehicle. Police located Jones, who was hiding, and arrested him. Officers also recovered a pistol from the vehicle.
The SLMPD Laboratory identified the fingerprints of Jones on the front driver's window and gas cap. Forensic analysis of clothing located in the vehicle, a bag containing fentanyl, and the airbag (which deployed when Jones crashed the vehicle), identified his DNA as being present on these items. Forensic analysis of the suspected blood in the vehicle identified it as being the victim’s DNA.
Jones admitted that he possessed, brandished, and discharged a handgun during the carjacking as a show of force and violence to take Vinson's vehicle. The handgun Jones discharged during the robbery is a firearm as defined under federal law. Jones possessed, brandished, and discharged the firearm to use deadly force to overcome resistance to the carjacking. Jones, in fact, used deadly force, which caused the death of Vinson.
The investigation also revealed that Jones sent electronic communications threatening to harm individuals who were aware of his violent conduct related to Ms. Vinson. In sending these electronic messages, Jones intended to hinder, delay, and prevent the communication of information to a law enforcement officer relating to his commission of Vinson's carjacking and discharging a firearm in furtherance of Vinson's carjacking.
The case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jen Szczucinski is prosecuting the case.
Bowling Green Man Arrested on Multiple Terrorism ChargesRead the Press Release
WASHINGTON – A federal court in Kentucky unsealed an indictment today charging a dual U.S.-Bosnian citizen with providing material support to the Islamic State of Iraq and al-Sham (ISIS) a designated foreign terrorist organization. The defendant is also charged with conspiring to provide material support to ISIS and receiving military type training from ISIS.
According to court documents, on June 3, 2014, Mirsad Hariz Adem Ramic, 31, of Bowling Green, Kentucky and two co-conspirators each departed the United States for Istanbul, Turkey in order to support ISIS. All three then purchased tickets with cash to fly to Gaziantep, Turkey, a city located near the border with Syria. From there, Ramic and the two co-conspirators crossed the Syrian border to join ISIS.
As alleged, after joining ISIS, Ramic attended an ISIS training camp where he received weapons and physical training and fired an AK-47. The FBI obtained photographs of Ramic in ISIS territory which depict him wearing camouflage clothing and standing in front of a pickup truck outfitted with an anti-aircraft gun and the ISIS flag. A second photograph of Ramic depicts him holding a rifle.
After joining ISIS, Ramic and his co-conspirators remained in contact with each other and discussed, among other things, Ramic’s presence in Raqqa, Syria, and his use of an anti-aircraft weapon to shoot at planes. Ramic and his co-conspirators also discussed jihad, martyrdom and fighting for ISIS. After joining ISIS, one of Ramic’s co-conspirators sent two e-mails to Western Kentucky University, stating that he had traveled to Syria to join ISIS and expressing his desire that ISIS conquer the United States.
Ramic had been incarcerated in Turkey and was deported to the United States. He arrived in the United States Thursday evening and made his initial appearance in court this afternoon.
If convicted of the charged offenses, Ramic faces a maximum penalty of 50 years in prison, a fine of $750,000, and term of supervised release up to life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Michael A. Bennett for the Western District of Kentucky; Assistant Director Timothy Langan of the FBI’s Counterterrorism Division and Special Agent in Charge Jodi Cohen of the Louisville Field Office made the announcement..
The FBI is investigating the case.
Assistant U.S. Attorneys Joshua Judd and Christopher Tieke of the Western District of Kentucky and Trial Attorney Danielle Rosborough of the National Security Division’s Counterterrorism Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Bowling Green Man Arrested on Multiple Terrorism ChargesRead the Press Release
A federal court in Kentucky unsealed an indictment today charging a dual U.S.-Bosnian citizen with providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization. The defendant is also charged with conspiring to provide material support to ISIS and receiving military type training from ISIS.
According to court documents, on June 3, 2014, Mirsad Hariz Adem Ramic, 31, of Bowling Green, Kentucky and two co-conspirators each departed the United States for Istanbul, Turkey in order to support ISIS. All three then purchased tickets with cash to fly to Gaziantep, Turkey, a city located near the border with Syria. From there, Ramic and the two co-conspirators crossed the Syrian border to join ISIS.
As alleged, after joining ISIS, Ramic attended an ISIS training camp where he received weapons and physical training and fired an AK-47. The FBI obtained photographs of Ramic in ISIS territory which depict him wearing camouflage clothing and standing in front of a pickup truck outfitted with an anti-aircraft gun and the ISIS flag. A second photograph of Ramic depicts him holding a rifle.
After joining ISIS, Ramic and his co-conspirators remained in contact with each other and discussed, among other things, Ramic’s presence in Raqqa, Syria, and his use of an anti-aircraft weapon to shoot at planes. Ramic and his co-conspirators also discussed jihad, martyrdom and fighting for ISIS. After joining ISIS, one of Ramic’s co-conspirators sent two e-mails to Western Kentucky University, stating that he had traveled to Syria to join ISIS and expressing his desire that ISIS conquer the United States.
Ramic had been incarcerated in Turkey and was deported to the United States. He arrived in the United States Thursday evening and made his initial appearance in court this afternoon.
If convicted of the charged offenses, Ramic faces a maximum penalty of 50 years in prison, a fine of $750,000 and term of supervised release up to life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division; U.S. Attorney Michael A. Bennett for the Western District of Kentucky; Assistant Director Timothy Langan of the FBI’s Counterterrorism Division and Special Agent in Charge Jodi Cohen of the Louisville Field Office made the announcement.
The FBI is investigating the case. The Justice Department’s Office of International Affairs provided assistance.
Assistant U.S. Attorneys Joshua Judd and Christopher Tieke of the Western District of Kentucky and Trial Attorney Danielle Rosborough of the National Security Division’s Counterterrorism Section are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Beckley Man Pleads Guilty to Federal Gun CrimeRead the Press Release
BECKLEY, W.Va. – A Beckley man pleaded guilty today to a federal gun crime.
According to court documents and statements made in court, on March 4, 2021, law enforcement officers utilized a confidential informant to conduct a controlled purchase of fentanyl from Curtis Harris, 34, at his residence in Beckley. Harris sold approximately 2.5 grams of fentanyl and a Cobra .380 handgun to the informant in the same transaction for $550. On March 11, 2021, law enforcement officers utilized a confidential informant to conduct a second controlled purchase of fentanyl from Harris. Harris sold approximately 14 grams of fentanyl to the informant for $1400.
Harris pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and faces a mandatory minimum of five years and up to life in prison when he is sentenced on April 8, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Alex Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00148.
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Akron, OH Man Pleads Guilty in Meth Trafficking RingRead the Press Release
ERIE, Pa. - A resident of Akron, Ohio, pleaded guilty in federal court to a charge of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
Charles John Vanderhoff, 38, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from in and around June 2018, to on or about February 28, 2020, the defendants conspired to possess with intent to distribute and distributed five hundred grams or more of a mixture or substance containing a detectable amount of methamphetamine as they participated in a methamphetamine distribution network that trafficked methamphetamine from Akron, Ohio and Erie, Pennsylvania into Crawford, Venango and Warren Counties.
Judge Baxter scheduled sentencing for April 14, 2022 at 1:30 p.m. The law provides for a total sentence of life in prison, a fine of $10,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Vanderhoff on bond.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pennsylvania State Police, Troop E, Vice Unit, the Titusville Police Department, the Warren County Drug Task Force, the
Warren County Sherriff’s Office and the Crawford County Sherriff’s Office conducted the investigation that led to the prosecution of Vanderhoff.
"Long Time Coming" Update: Three Defendants Plead Guilty in Connection with Their Roles in Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – Ambera Roberts, 34, Matthew Edward Depew, 31, and Era Dawn Corder, 46, all of Parkersburg, pleaded guilty to conspiracy to distribute methamphetamine.
According to court documents and statements made in court, Roberts, Depew and Corder admitted to acquiring and re-distributing large quantities of methamphetamine in furtherance of the conspiracy. This methamphetamine was acquired and re-distributed in the Parkersburg area between June and September 2021. Roberts and Corder separately obtained several ounces of methamphetamine directly from Carlo Ramsey and distributed it to third party customers. Depew acquired several pounds of methamphetamine directly from Robert Sanders, Jr., and distributed it to third party customers.
Roberts faces up to 20 years in prison when she is sentenced on March 30, 2022. Depew faces up to life in prison when he is sentenced on March 24, 2022. Corder faces up to 20 years in prison when she is sentenced on March 23, 2022.
Carlo Ramsey, Robert Sanders, Jr., and Floyd Dermonta Ramsey are awaiting trial.
The nearly year-long investigation also resulted in more than a dozen arrests on state criminal complaints in Wood County.
United States Attorney Will Thompson made the announcement and commended the excellent investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Parkersburg Narcotics Task Force (PNTF), the Parkersburg Police Department, the West Virginia State Police, the United States Postal Inspection Service, the Vienna Police Department, the Williamstown Police Department, the Wood County Sheriff’s Office, the Cabell County Sheriff’s Department, the Boyd County (KY) Sheriff’s Department, the Russell (KY) Police Department and the Raceland (KY) Police Department.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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-00163.
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Saturday 18 December 2021
Holiday Travelers Assured that Aircraft Violations Are a Prosecution PriorityRead the Press Release
DENVER – The U.S. Attorney for the District of Colorado and the Special Agent in Charge of the Denver FBI reminded air travelers that criminal conduct on commercial aircraft is a prosecution priority for their Denver based offices.
United States Attorney Cole Finegan noted, “As travel season begins, passengers should know that the U.S. Attorney’s Office in Colorado and our law enforcement partners are prioritizing the prosecution of criminal conduct on aircraft. We are all highly concerned about an increase in criminal conduct on commercial aircraft which endangers the safety of every person on a plane: passengers, pilots, and flight attendants. Please be assured that our office will investigate and prosecute crimes on aircraft.”
"The FBI is committed to investigating criminal acts aboard commercial aircraft that endanger the safety of passengers, flight crews, and flight attendants,” said FBI Special Agent in Charge Michael Schneider of the Denver Division. “We will continue to work with our law enforcement partners to ensure the safety of all individuals during their air travel this holiday season and throughout the year.”
Working with the FBI, Homeland Security Investigations, and the Denver Police, the U.S. Attorney’s Office for the District of Colorado prosecutes offenses that originate on commercial aircraft. Among these offenses, federal law prohibits the interference with flight crews and the commission of certain enumerated crimes while aboard commercial aircraft, such as sexual abuse (18 U.S.C. §§ 2241-43) and assault (18 U.S.C. § 113).
Colorado is home to several commercial airports, including Denver International Airport (DIA), which claims to be the third-busiest airport in the world by passengers. (https://www.flydenver.com/about/media_center/ranking) In the last year, the U.S. Attorney’s Office and the FBI handled several incidents on board commercial aircraft that landed at DIA.
- A California man was charged with assault and interference with an American Airlines flight crew. U.S. v. Brian Hsu, Case No. 21-cr-0367
- A Canon City man was charged after failing to wear a mask and urinating in his seat aboard an Alaska Airlines flight. U.S. v. Landon Grier, Case No. 21-cr-0095
- A passenger on a Spirit Airlines flight was sentenced to prison for trying to open the rear exit door while in flight. U.S. v. Jahmir Williams, Case No. 21-cr-110
- A passenger on a Frontier Airlines flight was charged with engaging in unwanted sexual contact with another passenger. U.S. v. Robert Earl Glasper III, Case No. 21-cr-365
- A Pennsylvania man was prosecuted for starting a fire on a Delta Flight. U.S. v. Robert Allen, Case No. 20-cr-147
If you are aware of a crime on board a commercial aircraft that has landed in Colorado, you can report that crime to the Denver FBI at (303) 629-7171.
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Friday 17 December 2021
“Glizzy Gang” Members Sentenced to Prison for Conspiracy to Distribute Heroin, Distribution of Heroin, and Firearms OffensesRead the Press Release
ROCK ISLAND, Ill. – Four individuals engaged in a conspiracy to distribute heroin in the Quad Cities were sentenced on December 16, 2021, to multi-year terms in federal prison.
Adell Moore, 31, of the 1400 block of 38th Street, in Rock Island, Illinois, was sentenced to 240 months’ imprisonment for conspiracy to distribute heroin and possession of a firearm by a felon.
Mandell Moore, 25, of the 600 block of West 61st Street in Chicago, Illinois, was sentenced to 135 months’ imprisonment for conspiracy to distribute heroin, possession with intent to distribute heroin, and possessing a firearm in furtherance of drug trafficking.
Diontae Brown, 33, of the 3000 block of 26th Street in Rock Island was sentenced to 84 months’ imprisonment for conspiracy to distribute heroin and possession with intent to distribute heroin.
Kendrick Prince, 31, of the 1800 block of West Vienna Avenue in Milwaukee, Wisconsin, was sentenced to 81 months’ imprisonment for conspiracy to distribute heroin and distribution of heroin.
Each of the defendants previously pleaded guilty to the offenses. At the sentencing hearing, the government presented evidence that Moore, Moore, Brown, Prince, and others, who referred to themselves as the “Glizzy Gang,” conspired together to sell heroin in the Quad Cities between 2016 and 2019 and regularly and illegally carried firearms.
At the hearing, Chief U.S. District Court Judge Sara Darrow found that Adell Moore was the leader of the conspiracy and stated that the defendants created a “path of destruction in this community,” referencing their involvement with guns and drugs and other violent acts. Chief Judge Darrow stated that the defendants found a “lucrative market” in the Quad Cities and profited from “others’ pain, misery, and addiction.”
Chief Judge Darrow previously sentenced co-defendant Anthony McGhee, 23, of the 6200 block of Brown Street in Bettendorf, Iowa, to 180 months’ imprisonment for conspiracy to distribute heroin and carrying a firearm during and in relation to a drug trafficking crime.
“This case is another example of the collaborative efforts of federal and local law enforcement agencies to target major drug organizations,” said U.S. Attorney Gregory K. Harris. “These organizations poison our communities with illegal drugs and increase the likelihood of violent crime in our neighborhoods. The sentences imposed reflect the serious nature of the defendants’ offenses.”
“The opioid epidemic is a public crisis fueled by criminals like these four individuals who spread toxins into our communities to feed addictions,” said David Nanz, Special Agent in Charge of the Federal Bureau of Investigation’s Springfield Office. “Additionally, drug activity is a gateway to other crimes like gun violence, homicide, and robbery. The FBI, along with our law enforcement partners, takes an all-encompassing approach to investigating drug trafficking, targeting and dismantling the most significant source of drug operations. These combined sentence of 540 months will significantly impact the quantity of drugs flowing through our neighborhoods and keep dangerous criminals off our streets for quite some time.”
The statutory penalty for conspiracy to distribute at least one kilogram of heroin is a mandatory minimum of ten years and up to life in prison. The statutory penalty for distribution of heroin and possession with intent to distribute heroin is not more than twenty years’ imprisonment. The statutory penalty for possession of a firearm as a felon is up to ten years’ imprisonment. The statutory penalty for possession of a firearm in furtherance of a drug trafficking crime is a mandatory minimum five years imprisonment, to be served consecutively to any other term of imprisonment.
The Federal Bureau of Investigation's Quad Cities Federal Gang Task Force investigated the case with the assistance of the East Moline Police Department, the Rock Island County Sheriff’s Office, the Rock Island Police Department, and the Silvis Police Department. Assistant U.S. Attorney Alyssa Raya represented the government in the prosecution.
Worcester Physician Agrees to Pay $115,000 Settlement to Resolve Allegations of Illegal Prescribing of Opioid Controlled SubstancesRead the Press Release
BOSTON – A Worcester physician has agreed to resolve allegations that he improperly prescribed opioid controlled substances outside the usual course of professional practice.
Edward Driscoll, M.D., a physician who practiced at UMass Memorial Medical Center in Worcester, has agreed to pay $115,000 to resolve allegations that he violated the civil remedies provisions of the Controlled Substances Act.
According to the settlement agreement, Dr. Driscoll admitted that he prescribed Schedule II controlled substances that were outside the usual course of professional practice for nine patients. Dr. Driscoll prescribed opioids for chronic pain without conducting functional pain assessments or opioid risk assessments. He rarely ordered urine drug screens and did not have consistent monthly office visits, despite prescribing opioids to patients monthly.
“We entrust physicians to appropriately care for their patients and comply with DEA prescribing regulations, especially in the midst of a destructive opioid epidemic,” said Acting United States Attorney Nathaniel R. Mendell. “These medications are controlled for a reason and failure to abide by the rules puts patients’ safety at risk. We are committed to working with our law enforcement and regulatory partners to enforce compliance and ensure public safety against the dangers of improper prescribing.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration, Boston Division. “Failure to do so increases the potential for diversion and jeopardizes public health and safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
During the investigation, Dr. Driscoll surrendered his Drug Enforcement Administration (DEA) registration number and, as part of the settlement, agreed that he would not seek a new DEA registration number.
Acting United States Attorney Mendell and DEA SAC Boyle made the announcement today. Assistant U.S. Attorney Alexandra Brazier of Mendell’s Affirmative Civil Enforcement unit handled the case.
West Plains Woman Sentenced to 20 Years for Leading Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Two West Plains, Missouri, residents were sentenced in federal court today for their roles in a conspiracy to distribute large amounts of methamphetamine in Howell, Greene, and Texas counties.
Shirley J. Hicks, 64, and Shaun M. Ross, 44, both of West Plains, were sentenced in separate hearings before U.S. District Judge Stephen R. Bough. Hicks was sentenced to 20 years and one month in federal prison without parole. Ross was sentenced to six years in federal prison without parole.
Hicks, the leader of the conspiracy, and Ross each pleaded guilty to participating in a conspiracy to distribute methamphetamine in Howell, Greene, and Texas counties from Dec. 31, 2015, to June 21, 2019. Hicks also pleaded guilty to possessing methamphetamine with the intent to distribute.
When law enforcement officers executed a search warrant at Hicks’s residence on July 24, 2018, they found a red toolbox inside a shop/barn that contained six bags with a total of 5.627 kilograms of pure methamphetamine. Inside a bedroom closet in the house, officers also found 12 bags with a total of 243 grams of pure methamphetamine inside a black leather bag, and a blue waterproof box that contained 122.892 grams of pure methamphetamine.
During the search, officers also found five handguns in the toolbox and five more firearms in the house. Officers also seized a total of $20,393, which Hicks admitted was proceeds from her distribution of methamphetamine.
Two days later, law enforcement officers were conducting surveillance and saw Ross visit Hicks’s house. Officers conducted a traffic stop afterward and searched Ross’s vehicle, where they found a zippered bag that contained 17.69 grams of methamphetamine, a small bag of marijuana, and drug paraphernalia. After Ross was arrested, he told investigators that he purchased methamphetamine from Hicks for $600 per ounce, which he then distributed to others. Ross said he had been getting two or three ounces of methamphetamine from her each month for several months.
Hicks and Ross are among six defendants who have been sentenced in this case.
Fontella J. Noose, 41, of Springfield, was sentenced to 20 years in federal prison without parole. Benny D. Griffin, 59, of West Plains, was sentenced to 15 years in federal prison without parole. Jordan W. Gutierrez, 27, of West Plains, was sentenced to 12 years and six months in federal prison without parole. Jose I. Gonzales, 39, of West Plains, was sentenced to 10 years in federal prison without parole.
Co-defendants Raymon F. Ortega, 65, of West Plains; James E. Cooper, 54, of Mountain View; and Luis Ortiz Rodriguez, 39, address unknown, have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the South Central Drug Task Force, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Howell County, Mo., Sheriff’s Department, the West Plains, Mo., Police Department, and the Mountain View, Mo., Police Department.
Virginia Woman Charged with Murder of Ohio Man in Cuyahoga Valley National ParkRead the Press Release
U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a three-count indictment charging Chelsea Perkins, 31, of Alexandria, Virginia, with first-degree murder, second-degree murder, and discharging a firearm during and in relation to a crime of violence.
According to court documents, on or about March 6, 2021, the defendant is accused of shooting an individual identified in the indictment as M.J.D. (initials used to protect the decedent’s identity) near the Terra Vista Natural Study Area in the Cuyahoga Valley National Park.
Court documents state that M.J.D.’s body was taken to the Cuyahoga County Medical Examiner’s Office for an autopsy, where it was determined that the manner of death was a gunshot wound to the back of his head. The cause of death was ruled a homicide.
On December 9, the Cleveland Division of the Federal Bureau of Investigation announced the arrest of Defendant Chelsea Perkins in connection with the homicide. According to court documents, investigators linked the defendant to the shooting of M.J.D using GPS data, ballistics analysis, and DNA evidence.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it is the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Federal Bureau of Investigation, Cleveland Division; Ohio Bureau of Criminal Identification; National Parks Service; and Valley View Police Department. This case is being prosecuted by Assistant U.S. Attorneys Scott C. Zarzycki, Margaret A. Kane, and Adam J. Joines.
Universal Aryan Brotherhood Member Pleads Guilty for Participating in a Racketeering Conspiracy and KidnappingRead the Press Release
A member of the Universal Aryan Brotherhood pleaded guilty Thursday for his role in a racketeering enterprise, announced Acting U.S. Attorney Clint Johnson. The UAB is a “whites only” prison-based gang with members operating inside and outside of state prisons throughout Oklahoma.
Eddie L. Funkhouser, 51, pleaded guilty to conspiracy to participate in a racketeering enterprise and to kidnapping but refused to cooperate with the United States.
The plea agreement, if accepted by U.S. District Judge Claire V. Eagan, stipulates that Funkhouser will serve 15 years in prison. Judge Eagan will sentence Funkhouser on April 12, 2022.
“Universal Aryan Brotherhood gang member Eddie Funkhouser was brought to justice for his violent criminal acts, including a 2014 kidnapping,” said Acting U.S. Attorney Clint Johnson. “Thankfully, Homeland Security Investigations and IRS-Criminal Investigation joined forces with state and local law enforcement to take down UAB members and associates, including Funkhouser, who helped to expand and further the influence of this dangerous criminal enterprise.”
In his plea agreement, Funkhouser admitted to being part of the UAB criminal enterprise from about 2005 and continuing through December 2018.
Funkhouser stated that he conspired with other UAB members and associates to directly and indirectly further the gang’s criminal enterprise, consisting of criminal acts such as murder, kidnapping, robbery in violation of Oklahoma state law, and drug trafficking conspiracy acts that violated federal law. He further admitted that he knew and agreed that at least two gang members charged in the same indictment would commit racketeering crimes for the benefit of the UAB.
Funkhouser also admitted to personally being involved in the Oct. 26, 2014, kidnapping of two individuals. Funkhouser and other UAB members believed that one of the individuals was a law enforcement informant. As part of the kidnapping, Funkhouser participated in overt acts of intimidation meant to instill fear in the victims and to keep the victims confined against their will, believing there was no escape. Defendant Charles M. McCully, 44, also admitted to taking part in the 2014 kidnapping when he pleaded guilty in federal court on Nov. 30, 2021.
Funkhouser was indicted on Dec. 7, 2018, with 17 other UAB members and associates. The indictment was unsealed Feb. 20, 2019, and alleged the gang to be a racketeering enterprise that committed acts of murder, kidnapping, the trafficking of methamphetamine and firearms, money laundering, assault, and robbery throughout the State of Oklahoma. The indictment alleged that nine individuals were murdered as part of the UAB’s racketeering operations, often upon the orders of the Main Council, the highest governing body of the UAB.
The UAB was established in 1993 within the Oklahoma Department of Corrections and modeled itself after the principles and ideology of the Aryan Brotherhood, a California-based prison gang that formed in the 1960s.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS-Criminal Investigation led the investigation with assistance from the Tulsa County Sheriff’s Office, the Oklahoma Department of Corrections, the Tulsa and Enid Police Departments, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Dennis A. Fries is prosecuting this case.
You can find the press release announcing charges in February 2019 here.
Union County Man Charged with Bank Robbery and Armed Convenience Store RobberiesRead the Press Release
TRENTON, N.J. – A Union County, New Jersey, man has been charged in connection with his commission of a string of robberies in New Jersey, including a bank robbery and two armed robberies of convenience stores, U.S. Attorney Philip R. Sellinger announced today.
Dayshawn Brimfield, 30, of Elizabeth, New Jersey, is charged by complaint with one count of bank robbery, two counts of Hobbs Act robbery, one count of using and carrying a firearm during and in relation to a crime of violence, and one count of interstate transportation of stolen property. He appeared by videoconference before U.S. Magistrate Judge Lois H. Goodman and was detained.
According to documents filed in this case and statements made in court:
On April 2, 2021, a man dressed in dark clothing walked into a Hazlet, New Jersey, bank and handed a note to an employee. In the note, the man claimed to have a gun and threatened to kill the employee if the employee did not give him money. The employee turned over $750, which the man took before fleeing. Law enforcement later identified Brimfield’s palmprint on the note.
On April 20, 2021, Brimfield entered an Aberdeen, New Jersey, convenience store wearing dark clothing and a mask that partially covered his face. Brimfield approached an employee behind the counter and ordered him to the ground while brandishing a handgun. The employee complied, and Brimfield took approximately $450 from the store’s cash registers. Law enforcement reviewed security camera footage of the robbery and identified Brimfield as the robber. Security cameras also captured an older-model green Honda Civic park outside of the store immediately prior to the robbery.
On April 22, 2021, Brimfield, who was wearing a dark jacket with light stains and a mask, approached an employee of a South Plainfield, New Jersey, convenience store behind the counter and brandished a handgun. Brimfield demanded the employee’s wallet and cellphone, and the employee handed them over. The employee’s wallet contained his driver’s license, Social Security card and cash. Brimfield ordered the man to the ground as he took more than $2,000 from the store. Brimfield left the store and walked in the direction of a neighboring business. Law enforcement reviewed security camera footage from that neighboring business. Immediately prior to the robbery, security cameras captured Brimfield driving a green Honda Civic that had been stolen in Elizabeth four to five days earlier and wearing a knit New England Patriots hat.
On April 25, 2021, Nebraska State Patrol Officers arrested Brimfield after he led them on a five-mile pursuit in the stolen Civic. Law enforcement seized the South Plainfield convenience store employee’s driver’s license and Social Security card, clothing consistent with the clothing Brimfield wore during both convenience store robberies, and a knit New England Patriots hat from the Civic.
The bank robbery and Hobbs Act robbery charges each carry a maximum penalty of 20 years in prison and a fine of up to $250,000. The using and carrying a firearm during and in relation to a crime of violence charge carries a maximum penalty of life in prison, and a fine of up to $250,000. The interstate transportation of stolen property charge carries a maximum penalty of 10 years in prison, and a fine of up to $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; officers of the Hazlet Police Department, under the direction of Chief Ted A. Wittke; officers of the South Amboy Police Department, under the direction of Chief Darren LaVigne; officers of the Aberdeen Police Department, under the direction of Acting Chief Matthew Lloyd; officers of the Nebraska State Patrol, under the direction of Col. John A. Bolduc; members of the Middlesex County Prosecutor’s Office, under the direction of Prosecutor Yolanda Ciccone; and members of the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey, with the investigation leading to today’s charges.
The government is represented by Special Assistant U.S. Attorney Christopher Matthews of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S.-Swiss Dual National Sentenced to Three Years in Prison for Bank Fraud Charges Connected to Investment Fraud SchemeRead the Press Release
WASHINGTON – Lawrence Paul Schmidt, aka Lawrence Schmid, 61, formerly of Washington, D.C., was sentenced today to three years in prison in connection with federal bank fraud charges related to an investment fraud scheme.
The announcement was made by U.S. Attorney Matthew M. Graves and Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division.
In addition to his term of imprisonment, the Honorable Amy Berman Jackson imposed a four-year term of supervised release, restitution in the amount of $106,775.84, and entry of a forfeiture money judgment in the amount of $106,775.84.
Schmidt was indicted in November 2018 on two counts of bank fraud, two counts of wire fraud, and six counts of engaging in monetary transactions in property derived from specified unlawful activity. He was extradited from the United Kingdom in late 2020 in connection with the federal charges and has remained in US custody since his arrest. On Sept. 29, 2021, Schmidt pleaded guilty to a bank fraud charge in the U.S. District Court for the District of Columbia.
According to the statement of offense submitted to the Court and admitted by Schmidt, beginning in 2008, Schmidt created several investment entities and related corporations, including Commercial Equity Partners, Ltd. (“CEP”) and FutureGen Company (“FGC”), through which he solicited funds. Schmidt was the sole signatory on the bank accounts for each of these entities. Between June 2008 and April 2014, Schmidt raised over $22 million in funds, which he then comingled and transferred between the various entities and to personal accounts. Schmidt knew that by January 2014, the bank accounts for the various CEP and FGC entities contained insufficient funds to meet the companies’ financial obligations. By March 2014, the approximate combined balance of all the entities’ bank accounts was just $8,600.
As a result, over a roughly four-month period in early 2014, Schmidt masterminded a scheme to defraud and attempt to defraud Bank of America and SunTrust Bank of approximately $746,885.59 in funds controlled by the banks. Specifically, using various methods, Schmidt deposited fraudulent and forged checks into investment fund bank accounts that he controlled, then transferred and used the money for, amongst other things, his own benefit and use. In doing so, according to the government’s evidence, Schmidt abused his position of private trust with the investors of the various CEP and FGC-related entities.
As the scheme continued to unravel, on April 10, 2014, Schmidt boarded a one-way flight from the United States to London, where he remained until his arrest and extradition. Prior to leaving the United States, Schmidt wrote two letters to family members in which he stated, among other things, “[a]t this point in my life I have three choices, suicide, prison more than likely or to try and start over and make right by everyone.” Thereafter, on or about July 24, 2015, in responding to a message sent to him on LinkedIn from one of his investors, Schmidt wrote, “I know the federal government would like to prosecute me and I cannot blame them.”
On June 1, 2014, the U.S. Securities and Exchange Commission (SEC) filed suit in U.S. District Court for the District of Columbia, in Civil Action No. 14-cv-1002 (CRC), against Schmidt, CEP, FutureGen, and the entities Schmidt controlled. The court entered final judgment against Schmidt on October 3, 2018, and entered final judgment against CEP, FutureGen, and the additional entities that Schmidt controlled on March 11, 2019.
This investigation was conducted by the FBI’s Washington Field Office Criminal Division. The Justice Department’s Office of International Affairs in the Department’s Criminal Division, the United States Marshals Service, and the government of the United Kingdom provided substantial assistance in securing Schmidt’s arrest and extradition. The SEC also provided substantial assistance in this investigation.
The prosecution is being handled by Assistant U.S. Attorneys Anne P. McNamara and David B. Kent of the U.S. Attorney’s Office for the District of Columbia.
U.S. Attorney’s Office Announces More Than $6.4 Million in Funding Awarded to Support Sexual Assault Kit Testing, Investigations, Services and Training in Northern OhioRead the Press Release
The U.S. Attorney’s Office for the Northern District of Ohio announced today that the Department of Justice Office of Justice Programs (OJP) has awarded more than $6.4 million in grant funding to support sexual assault kit testing, investigations and prosecutions in Northern Ohio. In addition, funding was awarded to provide services for prepubescent victims of sexual assault and assist medical nurses with obtaining specialized training.
The following is a summary of the awards.
City of Cleveland, $2,461,762.
The City of Cleveland was awarded funding to continue sexual assault kit testing, identify victims of sexual assault cold cases and continue the implementation of best practices and victim-centered approaches to investigating and prosecuting these cases.
City of Akron, $2,002,676.
The City of Akron was awarded funding to hire personnel to continue investigations and prosecutions into sexual assault cold cases. Funding was also awarded to conduct public outreach, support lab efforts for advanced DNA testing, provide support for victims and witnesses and provide training for investigators and prosecutors.
Cuyahoga County Prosecutor’s Office, $1,395,078.
The Cuyahoga County Prosecutor’s Office was awarded funding to help identify “John Doe” defendants, solve sexually motivated homicides and re-investigate previous sexual assault kits to find case leads.
ProMedica Metro Forensic Program: Children’s Advocacy Center (CAC) and Training Expansion (PMFPE), Toledo, Ohio, $600,000.
ProMedica was awarded funding to provide coordinated forensic interviews, non-acute medical exams and follow-up care for prepubescent victims of sexual assault. In addition, the grant funding will assist nurses with obtaining their sexual assault nurse examiner (SANE) certification.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
U.S. Attorney's Office Settles Disability Discrimination Allegations with Massachusetts Parole BoardRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts has reached an agreement with the Massachusetts Parole Board to resolve allegations that the Parole Board violated the Americans with Disabilities Act (ADA) by discriminating against individuals with Substance Use Disorder (SUD).
The agreement resolves complaints that the Parole Board discriminated against parolees and prospective parolees with SUD taking Medication for Opioid Use Disorder (MOUD). MOUDs include buprenorphine (Suboxone), methadone and naltrexone (Vivitrol). According to the complaints, the Parole Board required certain parolees with SUD to take a specific form of MOUD as a condition of parole instead of requiring them to comply with their health care provider’s recommended treatment. In addition, the Parole Board had a prior practice of requiring certain prospective parolees with SUD to take prescription Vivitrol without conducting individualized assessments to ascertain the efficacy or appropriateness of Vivitrol for that person and without considering whether other forms of MOUD might be more appropriate or effective.
“Ensuring access to medical treatment for opioid use disorder is a central part of this office’s strategy to combat the opioid crisis and every bit as important as prosecuting drug traffickers,” said Acting United States Attorney Nathaniel R. Mendell. “Individualized and effective medical treatment for drug addiction saves lives and reduces illegal drug use. We commend the Parole Board for working with us and sharing our commitment to fighting the opioid crisis with every tool we have.”
Under the terms of the agreement, the Parole Board will ensure that when parole applicants with SUD are assessed for treatment, a qualified addiction specialist authorized to prescribe all three types of MOUD will conduct an individualized assessment and recommend or prescribe the appropriate MOUD or treatment for the applicant, if deemed appropriate. The Parole Board will not express a preference for, or mandate, one form of MOUD over another, even if an individualized assessment results in a recommendation that includes more than one medication option.
In addition, the Parole Board agreed that it will modify conditions of parole for all parolees with SUD to eliminate any condition that includes a requirement for a specific MOUD and instead require that the parolee comply with their health care providers’ recommendations regarding SUD treatment. For all new parolees going forward, the Parole Board will ensure that no parolees with SUD will be required to take a specific form of MOUD as a condition of parole.
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce the ADA and to eliminate discriminatory barriers to treatment for SUD. This matter was handled by Assistant U.S. Attorneys Torey B. Cummings and Gregory Dorchak of Mendell’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney's Office Recognizes Law Enforcement Partners for Outstanding Contributions to Public Safety and Department of Justice's MissionRead the Press Release
LAS VEGAS – This week, the U.S. Attorney’s Office for the District of Nevada recognized nine federal, state, and local law enforcement officers and special agents who went above and beyond in 2021, putting themselves at risk to support the Department of Justice’s mission.
“These awards honor law enforcement’s commitment to maintaining public safety across Nevada,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Each recipient has made a significant impact in our communities, and our office is grateful for the opportunity to work with them.”
The award recipients were honored for their dedication, contributions, and collaboration with the U.S. Attorney’s Office towards reducing violent crime, combatting human trafficking, and preventing fraud. The recipients came from the following law enforcement agencies:
- Federal Bureau of Investigation
- Henderson Police Department
- Las Vegas Metropolitan Police Department
- U.S. Department of State’s Diplomatic Security Service
- U.S. Postal Inspection Service
The U.S. Attorney’s Office thanks all of the recipients, their colleagues, their families, and agency leadership for their continued commitment to promoting public safety.
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U.S. Attorney Erskine announces eight new additions to the U.S. Attorney’s Office teamRead the Press Release
ATLANTA – U.S. Attorney Kurt R. Erskine announced the appointment of eight new Assistant U.S. Attorneys (AUSA) who will immediately employ their talents to support the Northern District of Georgia’s (NDGA) mission to enforce the law and defend the interests of the citizens that we serve in this district.
“We are fortunate to have such talented and dedicated professionals join us to represent the United States,” said U.S. Attorney Kurt R. Erskine. “We are committed to excellence in our service to this country as well as the citizens of the Northern District of Georgia and welcome these outstanding Assistant U.S. Attorneys to the office.”
The following AUSAs joined our office or have assumed new roles:
- Mary Jane Stewart, a career public servant, has returned to the United States Attorney’s Office as Senior Trial Counsel in the Criminal Division, after having served over four years as the First Assistant U.S. Attorney in the Middle District of Tennessee, and then as the Acting U.S. Attorney for the district. Hired as an AUSA in 1983 in Atlanta, she has handled hundreds of criminal cases and tried scores of jury trials. During her tenure, she also served as the Deputy Chief of the Drug Division, Senior Litigation Counsel, and the Criminal Division’s Training Coordinator. From 2002 until her departure in October 2017, she and former AUSA William R. Toliver trained over 100 newly hired AUSAs to be federal prosecutors. She holds three degrees from the University of Georgia: a BA in French (1975), a MA in Political Science (1977), and her Juris Doctor (1980).
- Larry Sommerfeld has rejoined the office as Chief of Appeals and Legal Advice. Larry returns to the office from a partnership at Alston & Bird where he was a member of the firm’s Litigation and Trial Practice Group and its Privacy, Cyber & Data Strategy Team. Larry advised clients on their most sensitive cybersecurity matters including significant computer network intrusions, cyber preparedness, and data privacy compliance. He counseled clients on technology and data strategy matters, spanning the life cycle of their digital data across the globe. Previously, Larry served as an AUSA in the Economic Crimes section and led the office’s Cybercrimes unit before being promoted to Appellate Chief. Larry was a member of the trial team that convicted the individuals who assassinated DeKalb County Sheriff-elect Derwin Brown on the orders of the outgoing Sheriff, and argued the case on appeal. He also led the successful investigation and prosecution of one of the most sophisticated and coordinated cyber intrusions ever perpetrated, involving the withdrawal within 12 hours of $9.4 million from more than 2,100 ATM terminals in at least 280 cities worldwide, bringing to justice defendants from four continents. Larry is an MIT graduate and member of the Order of the Coif from the University of Virginia School of Law. He clerked for judges on both the U.S. District Court for the Northern District of Georgia, the Eleventh Circuit U.S. Court of Appeals, and has practiced at firms in New York City and Silicon Valley, California.
- AUSA Jeffrey Davis also returns to our office from the Vermont U.S. Attorney’s Office and will serve as Special Counsel in the Criminal Division. Jeff previously served as the Chief of the Public Integrity and Special Matters Section in the NDGA U.S. Attorney’s Office. Before beginning his federal service, Jeff was a vice president in the anti-money laundering division of an international investment bank. After graduating from law school, he served as an assistant district attorney in the New York County District Attorney’s Office. Jeff graduated from Connecticut College and Emory University School of Law with honors. Jeff also received a professional certificate in forensic accounting from New York University.
- AUSA Aileen Bell Hughes will serve as Special Counsel in the Civil Division. Aileen currently leads the Civil Rights Unit in the Civil Division and represents the United States in civil rights matters involving disability, housing, education, and other civil rights statutes. After serving as a civil rights attorney in Connecticut, Hughes joined the Department of Justice in Washington D.C. in 1998 as a Senior Trial Attorney in the Civil Division. She later transferred to the Civil Rights Division as a Senior Trial Attorney and led several high-profile civil rights investigations involving people with mental illness and intellectual disabilities. In 2003, Aileen joined the U.S. Attorney’s Office for the Northern District of Georgia where she defended various federal agencies in civil defensive matters. In 2010, Aileen was appointed the Civil Rights Coordinator in the Civil Division of the office. She developed, coordinated, and implemented a new civil rights practice in the NDGA, and was successful in helping to create a Civil Rights Unit in the U.S. Attorney’s Office. Aileen received her B.A. cum laude from the University of Connecticut, and her J.D. from Georgetown University Law Center.
- Sharon Lim will serve as an AUSA in the Civil Division. Lim served as an associate in the Atlanta office of Jackson Lewis P.C., representing employers in federal and state courts and before administrative agencies on a variety of employment-related matters, including collective and class action wage and hour disputes. Prior to that, Sharon served as a law clerk for the Hon. Catherine M. Salinas, U.S. Magistrate Judge for the Northern District of Georgia. Sharon worked in Hawaii for nearly five years before moving to Georgia, first as a law clerk to two state court judges on Maui, and then as an associate in a Honolulu law firm devoted exclusively to the representation of management in labor and employment law matters. Sharon received her B.A. cum laude from the University of California, Irvine, and her J.D. from Notre Dame Law School.
- Natasha Cooper will serve as an AUSA in the Criminal Division. Cooper served as an Associate in the Complex Commercial Litigation Group of McGuireWoods LLP, where she handled both financial services litigation and regulatory matters. Natasha also served as Regulatory Counsel to Edward Jones where she handled state securities, SEC and FINRA matters for the broker-dealer. She has also been active serving as the past Chair of the American Bar Association, Young Lawyers Division Litigation Committee. In 2019, the National Black Lawyers named Natasha as a Top 40 under 40 Lawyer. Natasha received her law degree from the Emory University School of Law, where she was a Kessler-Edison Scholar. She received her B.A., summa cum laude, from the State University of New York at Albany Honors College.
- Norman Barnett will serve as an AUSA in the Criminal Division. Barnett served as a Senior Assistant District Attorney in the Cobb County District Attorney’s Office, where he prosecuted a variety of matters, including homicides, serious violent felonies, and organized crime cases. He also served as an Assistant District Attorney in the Douglas County District Attorney’s Office. Prior to his prosecution career, Norman worked as an associate at Swift, Currie, McGee and Hiers, LLP and the Law Offices of W. Calvin Smith, II, P.C. In 2016 and 2018, Norman served as the Musical Director, keyboardist, and band director for the Atlanta Bar Association’s Bard Show. Additionally, he served on the planning committee for the State Bar of Georgia’s High School Mock Trial program and recently served as the program’s chair. Norman earned his Juris Doctor from the University of Georgia School of Law, where he served as a Notes Editor for the Journal of Intellectual Property Law. He also earned his Bachelor of Arts in English with a music minor from the University of Georgia.
- Vivieon Kelly Jones joins the office from the Department of Justice in Washington, where she served as a trial attorney in the Office of General Counsel for the U.S. Trustee Program, promoting the integrity and efficiency of the bankruptcy system. Vivieon entered duty at the Department in 2009 as a trial attorney for the U.S. Trustee Program in the Northern District of Georgia. Prior to her tenure with the Department, Vivieon worked as an associate at Troutman Pepper where she focused her practice in the areas of bankruptcy reorganizations and complex litigation. Vivieon earned her law degree from William & Mary Law School, and her B.A. from the College of William & Mary. She also served as a clerk for Hon. E. Stephen Derby of the Bankruptcy Court in the District of Maryland. Vivieon is a member of the Civil Division and currently serves as Parliamentarian for DOJABA, the Department's Association of Black Attorneys.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Two Men from North Carolina and Georgia Charged with Scheme to Fraudulently Inflate Credit ScoresRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Ashante Richardson, 46, of Lawrenceville, GA, and Frank Crosson, 50, of Greensboro, NC, were arrested and charged by Indictment with conspiracy to commit wire fraud and multiple counts of wire fraud in connection with a scheme to fraudulently alter numerous individuals’ credit scores in order to obtain loans and credit.
According to the Indictment, which was unsealed in conjunction with the defendants’ initial appearances in federal court on these charges today, from about September until December 2016, the defendants conspired with another individual to alter the credit histories of themselves and their clients in order to falsely improve those individuals’ chances of securing credit and loans from financial institutions. At the time of the charged conduct, the defendants’ co-conspirator was an employee of TransUnion, one of the three primary consumer credit reporting agencies in the United States. Richardson and Crosson allegedly paid this individual $40,000 in exchange for making unauthorized and unsupported alterations to individuals’ TransUnion credit histories, including the credit histories of clients of Perpetual Synergy, a credit repair business operated by Richardson. Shortly after the co-conspirator at TransUnion made the alterations to these individuals’ credit histories, many of those individuals credit scores increased and they obtained new credit cards, lines of credit, or bank loans.
“The defendants allegedly cheated our national system of credit reporting in order to bolster their scores and those of their clients,” said U.S. Attorney Williams. “Criminals that conduct schemes like this prey on the hard work and honesty of all American consumers who operate within the system to build their credit histories. Our Office will continue to investigate and prosecute financial fraud to protect the integrity of the markets and commerce.”
If convicted the defendants faces a maximum possible sentence of 180 years in prison, three years of supervised release, a $2,250,000 fine, and a $900 special assessment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.
Two Members of Pagan’s Motorcycle Club Indicted for Shooting at Hells Angels Associate on New Jersey TurnpikeRead the Press Release
NEWARK, N.J. – Two high-ranking members of the Pagan’s Motorcycle Club were indicted today for assault with a dangerous weapon in aid of racketeering, narcotics distribution, and firearms offenses, U.S. Attorney Philip R. Sellinger announced.
Larry Ortiz, aka “Savage,” 31, of Elizabeth, New Jersey, and Junius Aquino, aka “Jayo,” 38, of Vauxhall, New Jersey, were indicted for assault with a dangerous weapon in aid of racketeering (Count One) and discharging a firearm during and in relation to a crime of violence (Count Two), in connection with their roles in a gang-related shooting. Aquino was also charged with possession of ammunition by a convicted felon (Count Three) and possession with intent to distribute cocaine (Count Four), and Ortiz was also charged with possession with intent to distribute methamphetamine (Count Five) and possession of a firearm in furtherance of a drug trafficking crime (Count Six).
According to documents filed and statements made in court:
On Oct. 21, 2020, Aquino visited a bar in Verona, New Jersey, with other members of the Pagan’s. When Aquino and his associates exited the bar, a group of individuals approached and assaulted them with baseball bats. Approximately one week later Aquino and Ortiz shot at an associate of the Hells Angels on the New Jersey Turnpike in retaliation for the Verona assault. The Pagan’s and the Hells Angels are known to be rival gangs.
Aquino was also indicted for possession of ammunition by a convicted felon and possession with intent to distribute cocaine. The ammunition charge arises from a shooting that occurred in Elizabeth on Oct. 31, 2020, during which Aquino shot at an occupied vehicle. On Nov. 5, 2020, law enforcement officers executed a search warrant at Aquino’s residence and recovered, among other items, multiple .40 caliber rounds of ammunition and approximately 50 grams of cocaine. At the time of Aquino’s arrest, he was the vice president of the Elizabeth membership chapter of the Pagan’s.
Ortiz was indicted for possession with intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime. On Nov. 17, 2020, law enforcement executed a search warrant at Ortiz’s residence and recovered approximately 300 grams of methamphetamine and a loaded firearm. At the time of his arrest, Ortiz was the president of the Pagans’ Jersey City membership chapter.
These charges were filed as part of a multi-agency investigation into the Pagan’s Motorcycle Club – an outlaw motorcycle gang known to engage in illegal activity, including narcotics trafficking, weapons trafficking, and violent crimes. The Pagan’s have established membership chapters in numerous states and U.S. territories, including multiple active chapters in New Jersey. This investigation involved court-authorized wiretaps, the use of multiple undercover law enforcement agents, and execution of multiple search warrants at physical locations in multiple jurisdictions. Through the investigation, law enforcement seized 10 firearms and more than 800 grams of methamphetamine.
Count One carries a maximum sentence of 20 years in prison and a fine of up to $250,000. Count Two carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $250,000. Count Three carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Count Four carries a maximum sentence of 20 years in prison and a maximum fine of $1 million. Count Five carries a mandatory minimum sentence of 10 years in prison, a maximum sentence of life in prison, and a fine of up to $10 million. Count Six carries a mandatory minimum sentence of five years in prison, a maximum sentence of life in prison, and a fine of up to $250,000.
U.S. Attorney Sellinger credited a joint task force comprised of special agents of the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson; special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews; the Union County Prosecutor’s Office, under the direction of Prosecutor William A. Daniel; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to these charges. He also thanked the Elizabeth Police Department, under the direction of Chief Giacomo Sacca, for its assistance with this investigation.
These cases are 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.
The government is represented by Assistant U.S. Attorneys Robert Frazer, R. Joseph Gribko, and Samantha C. Fasanello, of the U.S. Attorney’s Office in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Two Florida Men Plead Guilty to $35 Million COVID-19 Relief Fraud SchemeRead the Press Release
Two Florida men pleaded guilty this week in the Northern District of Ohio for leading a nationwide scheme to fraudulently obtain over $35 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, James R. Stote, 55, of Hollywood, and Phillip J. Augustin, 52, of Coral Springs, conspired to obtain millions of dollars in fraudulent PPP loans. Augustin and Stote obtained a fraudulent PPP loan for Augustin’s company, Clear Vision Music Group LLC, using falsified documents. After submitting that application, Stote and Augustin immediately began working to obtain larger PPP loans for themselves and their associates. Stote and Augustin recruited additional PPP loan applicants and prepared and submitted fraudulent loan applications for them in exchange for a share of the loan proceeds. Augustin used his network of business contacts from his work as a manager for professional football players. The applications they submitted for all of the loans in the scheme relied on fake payroll numbers, falsified IRS forms and phony bank statements. They submitted or facilitated at least 79 fraudulent loan applications worth at least $35 million and planned to submit more. As part of the plea, Stote agreed to forfeit more than $1 million in proceeds of the fraud that had previously been seized.
The scheme included at least two loans to entities in Northeast Ohio worth approximately $875,000.
“These convictions, and the numerous convictions of others involved in this wide-ranging conspiracy, demonstrate that people will be held accountable for defrauding the PPP Program,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Fraud against PPP programs directly harms taxpayers and undermine public trust in essential government support during the pandemic. We will continue to combat fraud and ensure that COVID-19 relief goes to those who deserve it.”
“While many businesses in our communities relied upon relief funds to keep their doors open and employees paid, these defendants profited off a scheme that stole millions of taxpayer dollars intended for struggling businesses and spent it lavishly on themselves,” said First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio. “Theft of government funds will not be tolerated, and prosecuting PPP fraud remains a priority for law enforcement.”
Stote and Augustin each pleaded guilty to conspiracy to commit wire fraud. They are scheduled to be sentenced at a later date and each face a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
“From submitting false documentation to recruiting other individuals, the defendants went to great lengths to defraud the Paycheck Protection Program of millions of dollars,” said Special Agent in Charge Bryant Jackson of IRS Criminal Investigation (IRS-CI), Cincinnati Field Office. “IRS-CI will continue to work with our law enforcement partners to hold those accountable that defraud programs designed to help struggling Americans and businesses.”
“This sentencing serves as a deterrent to anyone who would commit fraud targeting COVID-19 relief programs,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “Programs like these were created to help individuals during a pandemic, not for fraudsters to take advantage for personal gain. The FBI will continue to pursue criminal actors who engage in this activity.”
“Conspiring to fraudulently use SBA program funds is unacceptable,” said Special Agent in Charge Sharon Johnson of the SBA Office of Inspector General’s (SBA-OIG) Central Region. “OIG will aggressively root out fraud to protect the integrity of SBA’s programs, which are intended to provide vital assistance to the nation’s small businesses. I want to thank the Department of Justice and our law enforcement partners for their dedication and commitment to seeing justice served.”
In total, 25 people have been charged for their participation in this scheme in the Northern District of Ohio, Southern District of Florida and Middle District of North Carolina. To date, 20 of those defendants have been convicted.
The IRS-CI, FBI and SBA-OIG are investigating the cases.
This case is being prosecuted by and Assistant U.S. Attorney Elliot Morrison and Trial Attorney Philip Trout of the Criminal Division’s Fraud Section.
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Two Felons Sentenced to Respectively to 96 and 78 Months in Prison of Illegal Possession of a FirearmRead the Press Release
ST. PAUL, Minn. – Two men have been sentenced for illegal possession of firearms, announced Acting U.S. Attorney Charles J. Kovats.
Jarvae Josiah Somerville, 28, of White Bear Lake, and Ronald Donte Finley, Jr., 26, of Minneapolis, were both convicted on August 26, 2021, of one count each of illegal possession of a firearm, following a three-day jury trial before U.S. District Judge Paul A. Magnuson. The defendants were sentenced yesterday to 96 months and 78 months in prison, respectively. Both men were sentenced to three years of supervised release that will begin upon their release from prison.
“The staggering spike in gun violence throughout the Twin Cities must end,” said Acting U.S. Attorney Charles J. Kovats. “The U.S. Attorney’s Office remains steadfast in our commitment to hold accountable individuals who put public safety at risk.”
According to court documents, Minneapolis Police Department (MPD) officers investigating a shooting followed Somerville and Finley to a restaurant on Lake Street in Minneapolis. While Somerville was inside the restaurant and Finley was outside in an Infinity sedan that the men were driving, officers moved in to make an arrest. When officers approached Finley, Finley ran from the Infinity sedan but was apprehended and arrested. Inside the Infiniti sedan, officers found a Sig Sauer 9mm semi-automatic pistol with an extended magazine. When officers entered the restaurant and attempted to arrest Somerville, Somerville ran inside a private bathroom in the back of the restaurant. Two officers chasing Somerville followed Somerville inside, and Somerville reached into his waistband. Concerned that Somerville was reaching for a firearm, an officer grabbed Somerville’s hands, and the three men struggled until other officers arrived to assist. After Somerville was handcuffed and taken into custody, officers recovered from the floor of the bathroom a Glock, .45 caliber semi-automatic handgun with an extended magazine.
After the arrests, officers executed a search warrant at Somerville’s residence and found a box of .45 caliber ammunition the same model of which was found in the firearm found in the bathroom. Officers also found a gun cleaning kit. Investigators later confirmed that Finley’s fingerprints were present on the magazine of the 9mm pistol found in the Infiniti sedan.
Because Somerville has prior felony convictions in Hennepin County and Finley has prior felony convictions in Cook County, Illinois, they are prohibited under federal law from possessing firearms or ammunition at any time.
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.
This case is the result of an investigation conducted by the Minneapolis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Assistant U.S. Attorney Thomas Calhoun-Lopez prosecuted the case.
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Two Essex County Women Charged in Sham Marriage Immigration SchemeRead the Press Release
NEWARK, N.J. – Two Essex County, New Jersey, women were indicted today in connection with a scheme to arrange sham marriages between U.S. citizens and non-citizens seeking to stay in the United States unlawfully, U.S. Attorney Philip R. Sellinger announced.
Sisters Andrea Torres, 55, and Regina Johnson, 57, of Newark, were both charged by indictment with one count of conspiracy to encourage and induce non-citizens to remain in the United States illegally. They had been previously charged by complaint with the same offense. Torres and Johnson will be arraigned at a later date.
According to documents filed in this case and statements made in court:
From September 2016 to July 2019, Torres and Johnson devised and participated in a fraudulent scheme to arrange and facilitate sham marriages for non-citizens who wished to remain in the United States despite lacking legal status or the proper documentation. They recruited U.S. citizen as potential spouses and paid them a fee in exchange for those U.S. citizens entering into sham marriages with Torres’ and Johnson’s non-citizen clients. Torres and Johnson arranged for the “couples” to obtain fraudulent marriage licenses and even arranged and charged their clients for wedding ceremonies and afterparties that were staged to make the sham marriages appear legitimate. Torres and Johnson advised their clients on ways to make their marriage appear legitimate on paper, including the opening of joint bank accounts and frequent meetings with their U.S. spouses – where they were advised to take pictures in a variety of locations and in different clothing – to document the relationship and give the appearance of cohabitation, even though none of the clients ever resided or intended to reside with their U.S. spouses. Torres and Johnson then helped their non-citizen clients fill out immigration forms to obtain permanent residency on the basis of materially false misrepresentations.
The charge in the indictment carries a maximum penalty of 10 years in prison and a fine of $250,000, or twice the pecuniary gain or loss resulting from the offense, whichever is greatest.
U.S. Attorney Sellinger credited special agents of the Department of Homeland Security, Homeland Security Investigation, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s indictment.
The government is represented by Assistant U.S. Attorney Sammi Malek of the National Security Unit in Newark.
The charge and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Thibodaux Man Sentenced to 160 Months in Federal Prison for Attempted Coercion and Enticement of a MinorRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that U.S. District Judge Brian A. Jackson sentenced Dillon M. Guidry, age 29, of Thibodaux, Louisiana, to 160 months in federal prison following his conviction for attempted coercion and enticement of a minor. The Court further sentenced Guidry to serve five years of supervised release following his term of imprisonment, and he must register as a convicted sex offender for life.
According to admissions made during his plea, on or about March 17, 2021, an FBI online covert employee (“OCE”), herein referred to as “OCE 1,” while working in an undercover capacity in the Middle District of Louisiana and posing as a 13-year-old female, posted a message on a social media mobile application (“Mobile App”). On March 18, 2021, Guidry contacted OCE 1 on the Mobile App. During his communication with OCE 1, Guidry indicated that he was a 28-year-old male and acknowledged the age of OCE 1 as 13 years old. During the same conversation, Guidry and OCE 1 exchanged phone numbers.
From approximately March 18 through May 20, 2021, Guidry engaged in sexually explicit text messages with OCE 1. During these text messages, Guidry misrepresented his identity and claimed that his name was “James from Gonzales.” On April 14, 2021, Guidry asked OCE 1 whether they could have sexual intercourse. OCE 1 replied that she was not on birth control and asked Guidry to bring condoms when they met to have sexual intercourse. Also, on April 14, 2021, Guidry sent OCE 1 a picture of his face, which law enforcement officers later used to match with Guidry’s photo on the Lafourche Parish Sheriff’s Office sex offender registration website. On April 22, 2021, Guidry asked OCE 1 if she has any friends that he could have sexual intercourse with. When OCE 1 replied yes, Guidry asked for the friend’s age. OCE 1 replied, “13 like me.”
On April 27, 2021, OCE 1 provided Guidry with a telephone number utilized by a second OCE (“OCE 2”) working in an undercover capacity in the Middle District of Louisiana and posing as a 13-year-old female. On or about April 27, 2021, Guidry texted OCE 2. OCE 2 advised Guidry that she was 13 years old. From approximately April 27 through May 20, 2021, Guidry engaged in sexually explicit text messages with OCE 2.
On April 29, 2021, Guidry texted OCE 2 about meeting in person to have sexual intercourse. OCE 2 asked when they would meet, and Guidry replied that they would meet on May 20, 2021. Guidry explained that he would meet OCE 1 and OCE 2 at OCE 1’s house. On May 20, 2021, Guidry traveled to a location designated by OCE 1, located within the Middle District of Louisiana, for the purpose of engaging in sexual activity with two females who Guidry believed to be 13-year-olds. While driving to the meeting location, Guidry stopped and purchased condoms. Guidry arrived in the area of the meeting location in Baton Rouge, Louisiana at approximately 6:45 PM. Based on the aforementioned communications, law enforcement officers arrested Guidry for various child exploitation offenses.
U.S. Attorney Ronald C. Gathe, Jr. stated, “This case highlights the commitment to protect our children from sexual predators. May this sentence serve as a stark warning of the severe consequences to those who may be inclined to engage in similar conduct. I am grateful for the excellent work of all those involved in bringing this defendant to justice.”
FBI New Orleans Special Agent in Charge Douglas Williams, Jr. stated, “Today’s sentencing sends a clear message that criminals like Dillon Guidry who destroy innocent lives will be held accountable. Investigating individuals like Mr. Guidry is one of the highest priorities of the FBI and we will continue to take an aggressive approach to identify and hold accountable those who prey on our children. We thank our partners at the United States Attorney’s Office for the Middle District of Louisiana, U.S. Homeland Security, Louisiana State Police, Louisiana Bureau of Investigation, and the East Baton Rouge Sheriff’s Office for their strong partnership and unrelenting pursuit of justice.”
This matter was investigated by the Federal Bureau of Investigation, Department of Homeland Security, the Louisiana Attorney General’s Office, Louisiana State Police, Louisiana Bureau of Investigation, and the East Baton Rouge Parish Sheriff’s Office and prosecuted by Assistant United States Attorney Edward H. Warner and Assistant United States Attorney Jamie A. Flowers Jr., who also serves as Deputy Chief for the United States Attorney’s Office.
Team Telecom Recommends FCC Grant Google and Meta Licenses for Undersea CableRead the Press Release
Today, the Department of Justice announced that Team Telecom entered into National Security Agreements with Google LLC and its subsidiary GU Holdings Inc., and Meta Platforms Inc. (formerly known as Facebook Inc.) and its subsidiary Edge Cable Holdings USA LLC to protect data on the Pacific Light Cable Network (PLCN) system, an undersea fiber optic cable system that will connect the United States, Taiwan and the Philippines.
The agreements were made with the Departments of Justice (DOJ), Defense (DOD), and Homeland Security (DHS) in their roles as members of the Committee for the Assessment of Foreign Participation in the U.S. Telecommunications and Services Sector (known informally as Team Telecom), and were coordinated with committee advisors listed in section 3(d) of Executive Order 13913 (2020). The Executive Branch has recommended that the Federal Communications Commission (FCC) condition any license to operate the PLCN system on compliance with the National Security Agreements.
“These agreements enable Google and Meta to take advantage of critical, additional cable capacity while protecting U.S. persons’ privacy and security through terms that reflect the current threat environment,” said Assistant Attorney General Matthew G. Olsen of the Justice Department’s National Security Division, who leads Team Telecom’s work for the Justice Department. “This resolution also demonstrates Team Telecom’s ability to resolve complex cases involving critical infrastructure in a timely matter, thanks to recent reforms of our structure and process.”
Under the National Security Agreements, Google and Meta (and their subsidiaries) have agreed to (among other terms):
- Conduct annual assessments of risk to sensitive data that transits the PLCN cable system, including when the data exits the cable;
- Pursue diversification of interconnection points in Asia, including but not limited to Indonesia, Philippines, Thailand, Singapore and Vietnam; and
- Restrict access to information and infrastructure by Pacific Light Data Communications Co. Ltd (PLDC), the Hong Kong-based owner of PLCN that withdrew its application for an FCC license.
In June 2020, the committee publicly recommended that the FCC partially deny a previous application for PLCN with respect to PLCN’s proposed connections to Hong Kong and to the portions of the PLCN owned by PLDC. Shortly after that recommendation, the applicants withdrew the original PLCN application. Google’s and Meta’s subsidiaries then filed a new FCC application removing Hong Kong and seeking to operate only the United States, Taiwan and Philippines portions of PLCN.
The National Security Agreements are justified by the current national security environment, including:
- the PRC government’s sustained efforts to acquire the sensitive personal data of millions of U.S. persons;
- the PRC government’s access to other countries’ data through both digital infrastructure investments and recent PRC intelligence and cybersecurity laws; and
- changes in the market that have transformed subsea cable infrastructure into increasingly data-rich environments that are vulnerable to exploitation.
Through appropriate mitigation agreements like these, the committee seeks to protect the national security interests of the United States while preserving global access to U.S. information and communications technology systems.
The committee was established pursuant to Executive Order 13913, and the Attorney General’s role as Chair of the Committee is carried out by the Department of Justice’s National Security Division, Foreign Investment Review Section. The Department of Homeland Security and the Department of Defense are fellow members of the committee. More information concerning the agreements is available on the FCC’s International Bureau Filing System (IBFS), under Docket Number SCL-LIC-20200827-00038.
Tampa Woman Sentenced to 15 Months in Federal Prison for Embezzling over $900,000 from Her EmployerRead the Press Release
Tampa, Florida – U.S. District Judge Virginia M. Hernandez Covington has sentenced Alicia Sheri Morgan (43, Tampa) to 15 months in federal prison for conspiracy to embezzle $906,109 from her employer. The Court also ordered Morgan to forfeit $373,126, which is traceable to proceeds of the offense.
Morgan had pleaded guilty on August 23, 2021.
According to court documents, between May 2015 and May 2019, Morgan served as a finance supervisor for her employer. She exploited that role to embezzle $906,109 from the employer by causing the employer to issue approximately 300 checks to Morgan’s co-conspirators, whom Morgan falsely and fraudulently represented were vendors that had provided services to the employer and were, therefore, due payment. Specifically, Morgan drafted false and fraudulent invoices, check requests, and medical claim forms, indicating that the fake vendors (co-conspirators) had performed services and even met with medical patients. Through creation and submission of these false and fraudulent documents to her employer, Morgan caused the employer to issue payments to her co-conspirators. Morgan then diverted many of these payments into her personal bank account and a bank account she shared with one of the co-conspirators. Morgan used much of the ill-gotten money for her personal expenses.
This case was investigated by the United States Secret Service and the Clearwater Police Department. It was prosecuted by Assistant United States Attorney Jennifer L. Peresie.
Suburban Chicago Man Sentenced to 30 Years in Federal Prison for Violently Sex Trafficking Multiple WomenRead the Press Release
CHICAGO — A suburban Chicago man has been sentenced to 30 years in federal prison for violently sex trafficking multiple women over the course of a decade.
From 2007 to 2016, BENJAMIN BIANCOFIORI used false promises of assistance to entice women into performing commercial sex acts. Biancofiori recruited multiple victims and arranged for them to travel to meet customers in the Chicago area and other locations in the United States. He often beat and punched the women, and he kept almost all of the money they received. On one occasion, Biancofiori arranged for a victim to be returned to him at gunpoint after she tried to leave him.
A jury in 2018 convicted Biancofiori, 41, of Naperville, Ill., on sex trafficking and obstruction charges. U.S. District Judge Harry D. Leinenweber imposed the prison sentence Thursday after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent in Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. Substantial assistance was provided by the U.S. Attorney’s Office for the District of Colorado, the Denver Field Office of the FBI, the Carol Stream, Ill., Police Department, and the Naperville Police Department. The government is represented by Assistant U.S. Attorneys Erika Csicsila and Diane MacArthur.
Two co-defendants of Biancofiori pleaded guilty and admitted conspiring with Biancofiori to engage in sex trafficking. MARCUS WILLIS, of Wheaton, Ill., and NATHAN PEREZ, of West Chicago, Ill., are awaiting sentencing.