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Monday 13 December 2021
Headland Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On December 10, 2021, Dedric J. Dean, 44, from Headland, Alabama, was sentenced to 36 months in prison, to be followed by three years of supervised release, announced Acting United States Attorney Sandra J. Stewart. There is no parole in the federal system.
According to court records, on May 12, 2020, officers with the Ozark Police Department spotted a vehicle being driven by Dean that had been reported stolen and performed a traffic stop. When officers searched the vehicle, they found a 9mm handgun. Dean has several felony convictions on his record and is prohibited from possessing firearms. Dean pleaded guilty to possession of a firearm by a convicted felon on June 23, 2021.
This case was investigated by the Ozark Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Montgomery County Sheriff’s Office. Assistant United States Attorneys Russell T. Duraski, Chelsea Phillips, and Joshua J. Wendell prosecuted the case.
Hampshire County woman sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jessica Lynn Lundbald, of Augusta, West Virginia, was sentenced today to four years of probation for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Lundbald, 24, pleaded guilty in September 2021 to one count of “Possession with Intent to Distribute Heroin and Fentanyl Mixture.” Lundbald admitted to working with another to distribute heroin and fentanyl in Hampshire County in August 2020.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, the West Virginia State Police, the Grant County Sheriff’s Office, the Hardy County Sheriff’s Office, the Hardy County Sheriff’s Office, the Mineral County Sheriff’s Office, and the Keyser Police Department.
Chief U.S. District Gina M. Groh presided.
Greenbush Man Sentenced for Unlawfully Possessing AmmunitionRead the Press Release
BANGOR, Maine: A Greenbush man was sentenced in federal court today for being a felon in possession of ammunition, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced David Phillips, 30, to ten months in prison and one year of supervised release. Phillips pleaded guilty in July 2021.
According to court records, on multiple dates at the end of January 2021, Phillips was seen on video purchasing ammunition at a gun and ammunition store in Maine. These purchases were confirmed on Phillips’ debit card. This ammunition was not manufactured in the state of Maine. Phillips was prohibited from possessing ammunition under federal law because of a 2016 felony conviction in the Bridgeport, Connecticut Superior Court for violating a protective order.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Penobscot County Sheriff’s Office; the Maine State Police; and the Bangor Police Department investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Grant County man sentenced for fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Kevin Wayne Fultz, of Maysville, West Virginia, was sentenced today to 70 months of incarceration for his role in a methamphetamine and fentanyl distribution operation, United States Attorney William J. Ihlenfeld, II announced.
Fultz, 32, pled guilty in May 2021 to one count of “Aiding and Abetting Possession with Intent to Distribute of Fentanyl.” Fultz admitted to having fentanyl in Grant County in January 2020.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Grand Jury Charges Former St. Bernard Parish Assistant District Attorney and Two Associates with Bank Fraud and Money Laundering OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that a grand jury returned an indictment on December 10, 2021 against GLENN E. DIAZ, age 70, of Arabi; PETER J. “PETE” JENEVEIN, age 56, of Panama City, Florida; and MARK S. GRELLE, age 67, of Chalmette, for bank fraud and money laundering charges related to defrauding First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the 19-count indictment, from at least April 2016 through December 20, 2016, DIAZ, JENEVEIN, and GRELLE conspired to defraud First NBC Bank through a series of false invoices for work purportedly done at a Florida warehouse owned by DIAZ. As set forth in the indictment, DIAZ was a customer of First NBC Bank from 2006 through the bank’s closure in 2017. By late 2015, DIAZ had been overdrawing his checking account for purported business expenses, although DIAZ was depositing these overdrafts into his personal account at another bank. In April 2016, First NBC Bank officers were asking DIAZ for additional information about the use of the overdrafts. In June 2016, bank officers began requiring invoices as proof that DIAZ was spending bank funds on improving the Florida warehouse.
Thereafter, DIAZ had his associate JENEVEIN provide invoices for improvements on the Florida warehouse performed by GRELLE’s company, Grelle Underground Services LLC. Bank officers then approved the overdrafts based on these invoices. However, after DIAZ wrote the check to GRELLE’s company, GRELLE would then write a check back to DIAZ, which DIAZ would deposit into his personal account at JPMorgan Chase bank. DIAZ then used the money for expenditures unrelated to the Florida warehouse project. In total, DIAZ, JENEVEIN, and GRELLE executed a total of 17 round-trip transactions that defrauded First NBC Bank of $345,841.41.
DIAZ, JENEVEIN, and GRELLE are all charged in each of the 19 counts of the indictment. Count 1 charges the defendants with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed upon conviction are up to 30 years in prison, a maximum fine of the greater of $1,000,000.00 or twice the gross gain to the defendants or twice the gross loss; up to five years of supervised release; and a $100 mandatory special assessment fee.
In Count 2, DIAZ, JENEVEIN, and GRELLE are charged with conspiring to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) and 1956(h). If convicted, they face a maximum of up to 20 years in prison, a maximum fine of the greater of $500,000.00 or twice the value of the property involved in the transaction, up to three years of supervised release, and $100 mandatory special assessment fee.
In Counts 3 through 19, DIAZ, JENEVEIN, and GRELLE are charged with bank fraud, in violation of Title 18, United States Code, Section 1344. As to each count, the defendants may receive a maximum of up to 30 years in prison, a maximum fine of the greater of $1,000,000.00 or twice the gross gain to the defendants or twice the gross loss, up to five years of supervised release, and a $100 mandatory special assessment fee.
“The FBI is determined to identify, investigate, and bring to justice those who are committing financial crimes to enrich themselves at the expense of others,” said Douglas A. Williams, Jr., Special Agent in Charge, FBI New Orleans. “The FBI remains committed to investigating those who engage in white collar crimes that impact our financial institutions.”
“We will vigorously pursue any wrongdoers whose fraudulent actions impact the safety and soundness of financial institutions regulated by the Federal Reserve Board,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
U.S. Attorney Evans reiterated that an indictment is merely an accusation and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General; and the Federal Deposit Insurance Corporation, Office of Inspector General. Assistant U.S. Attorneys Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, K. Paige O’Hale, and Rachal Cassagne are in charge of the prosecution.
Georgia Woman Pleads Guilty to Promoting Nationwide Tax Fraud SchemeRead the Press Release
A Georgia woman pleaded guilty today to conspiring to defraud the United States by promoting a nationwide tax fraud scheme and preparing false tax returns for the scheme’s participants.
According to court documents, Yomarie Febres, 47, of Covington, prepared 77 false income tax returns that collectively sought more than $23.8 million in tax refunds from the IRS. Between 2014 and 2016, Febres’s co-conspirators held seminars throughout the country where they promoted the scheme and recruited clients to file false tax returns with the IRS by convincing them that their mortgages and other debts entitled them to tax refunds. Information was then collected from clients and provided to Febres for use in the preparation of false tax returns. The tax returns Febres prepared falsely claimed that banks and other financial institutions had withheld large amounts of income taxes from the clients, which entitled the clients to refunds. In reality, the financial institutions had not paid any income to or withheld any taxes from the clients. The false tax returns Febres prepared caused the IRS to pay out more than $15 million in fraudulent refunds to scheme participants. Febres concealed her role in the scheme by falsely reporting that all of the returns were “self-prepared,” when, in fact, she had created them.
As part of her plea, Febres admitted that her co-conspirators charged clients approximately $10,000 to $15,000 in fees to participate in the scheme. A portion of the fee – typically $500 per client – was paid to Febres for each tax return she prepared. Febres further admitted that she did not report on her 2014 and 2015 income tax returns the income she received for preparing these false returns. She also admitted to claiming false business losses on her personal tax returns.
Febres is scheduled to be sentenced at a later date. She faces a maximum penalty of five years in prison for conspiring to defraud the United States and three years in prison for aiding and assisting in the preparation of false tax returns. Febres also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Several of Febres’s co-conspirators are scheduled to go to trial in January 2022.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Justice Department’s Tax Division and Assistant U.S. Attorney Chauncey A. Bratt of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case.
Georgia Woman Pleads Guilty to Promoting Nationwide Tax Fraud SchemeRead the Press Release
Orlando, FL – A Georgia woman pleaded guilty today to conspiring to defraud the United States by promoting a nationwide tax fraud scheme and preparing false tax returns for the scheme’s participants.
According to court documents, Yomarie Febres, 47, of Covington, prepared 77 false income tax returns that collectively sought more than $23.8 million in tax refunds from the IRS. Between 2014 and 2016, Febres’s co-conspirators held seminars throughout the country where they promoted the scheme and recruited clients to file false tax returns with the IRS by convincing them that their mortgages and other debts entitled them to tax refunds. Information was then collected from clients and provided to Febres for use in the preparation of false tax returns. The tax returns Febres prepared falsely claimed that banks and other financial institutions had withheld large amounts of income taxes from the clients, which entitled the clients to refunds. In reality, the financial institutions had not paid any income to or withheld any taxes from the clients. The false tax returns Febres prepared caused the IRS to pay out more than $15 million in fraudulent refunds to scheme participants. Febres concealed her role in the scheme by falsely reporting that all of the returns were “self-prepared,” when, in fact, she had created them.
As part of her plea, Febres admitted that her co-conspirators charged clients approximately $10,000 to $15,000 in fees to participate in the scheme. A portion of the fee – typically $500 per client – was paid to Febres for each tax return she prepared. Febres further admitted that she did not report on her 2014 and 2015 income tax returns the income she received for preparing these false returns. She also admitted to claiming false business losses on her personal tax returns.
Febres is scheduled to be sentenced at a later date. She faces a maximum penalty of five years in prison for conspiring to defraud the United States and three years in prison for aiding and assisting in the preparation of false tax returns. Febres also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Two of Febres’s co-conspirators are scheduled to go to trial in January 2022.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Justice Department’s Tax Division and Assistant U.S. Attorney Chauncey A. Bratt of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case.
Fugitive Extradited from Cameroon to the United States to Serve 80 Year Prison SentenceRead the Press Release
In the first extradition from the Republic of Cameroon to the United States, a Texas man was extradited to Houston on Friday to serve an 80-year prison sentence he received in absentia four years ago after he pleaded guilty in two separate cases to conspiracy, health care fraud, money laundering, and tax offenses.
According to court documents, in November 2016, Ebong Aloysius Tilong, 57, of Sugar Land, Texas, and his wife, Marie Neba, went to trial on the conspiracy, health care fraud, and money laundering charges. The trial evidence and court documents showed that between 2006 and 2015, Tilong, Neba, and their co-conspirators used Tilong and Neba’s company, Fiango Home Healthcare Inc. (Fiango), to corruptly obtain more than $13 million by submitting false and fraudulent claims to Medicare for home health care services that Fiango’s patients did not need or receive. The trial evidence and court documents also showed that Tilong and Neba paid illegal kickbacks to patient recruiters to refer patients to Fiango, and that Tilong falsified and directed others to falsify medical records to make it appear as though Fiango’s patients met the Medicare qualifications for home health care. Additional evidence demonstrated that Tilong attempted to destroy evidence and blackmail and suborn perjury from witnesses. After the first week of trial, Tilong pleaded guilty to one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, three counts of payment and receipt of health care kickbacks, and one count of conspiracy to launder monetary instruments.
In June 2017, Tilong pleaded guilty in a separate case to two counts of filing fraudulent tax returns. In connection with this guilty plea, Tilong admitted that he created a shell company called Quality Therapy Services (QTS) to limit the amount of tax that he paid to the IRS on the proceeds that he and his co-conspirators stole from Medicare. According to Tilong’s plea agreement, in 2013 and 2014, Tilong wrote almost $1 million in checks from Fiango to QTS for physical-therapy services that QTS never provided to Fiango’s patients and deducted as business expenses. Tilong admitted that his tax fraud scheme caused the IRS a tax loss of approximately $344,452.
In August 2017, Neba was sentenced to 75 years in prison the Medicare fraud scheme at Fiango. The U.S. District Court scheduled Tilong’s sentencing for Oct. 13, 2017, but court records show that on the morning of his sentencing hearing, Tilong removed an ankle bracelet monitoring his location and failed to respond to phone calls from, or appear in, the U.S. District Court for his sentencing. On Dec. 8, 2017, the U.S. District Court sentenced Tilong in absentia to 80 years in prison for his role in the Medicare and tax fraud schemes.
After Tilong absconded, the FBI Houston Field Office located Tilong in Cameroon, and worked collaboratively with the FBI Legal Attaché in Abuja, Nigeria, the Department of Health and Human Services Office of Inspector General (HHS-OIG), IRS Criminal Investigation (IRS-CI) Fraud Section, and the Office of the President of the Republic of Cameroon to ensure Tilong’s capture. Prior to his removal from Cameroon, Tilong was wanted by the FBI and listed among HHS-OIG’s Top 10 Most Wanted Fugitives. The National Police Force of Cameroon arrested Tilong in January 2019.
In September 2021, the Republic of Cameroon President Paul Biya signed a decree ordering Tilong’s removal to the United States.
On Dec. 10, 2021, U.S. Marshals escorted Tilong from Cameroon to the United States.
The United States is grateful to the Government of Cameroon for its cooperation and support of this extradition request.
“The successful return of Ebong Tilong demonstrates the department’s commitment to working with our international partners to pursue, capture, and return those who try to defraud the American people,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Thanks to the efforts of our law enforcement partners and their counterparts in Cameroon, Ebong Tilong has been returned to the United States and brought to justice.”
“This successful extradition of Ebong Tilong to serve his 80-year prison sentence is an example of the FBI’s collaboration with our federal and international partners that we hope will deter others from fleeing to avoid prosecution or sentencing,” said Acting Special Agent in Charge Richard A. Collodi of the FBI Houston Field Office. “These partnerships highlight the FBI’s reach as well as its determination to pursue actors anywhere to administer justice.”
“Convicted fraudster and former fugitive Ebong Tilong has been brought to justice in our country, thanks to the tireless efforts of U.S. law enforcement, including our investigators,” said Special Agent in Charge Miranda L. Bennett of HHS-OIG. “Our agency, together with our law enforcement partners, will continue to aggressively pursue those who steal from federal health care programs, wherever they try to hide.”
“IRS-CI is committed to not only investigating and ultimately seeking convictions of individuals who scheme to defraud Medicare, launder proceeds of their illicit transactions, and evade the IRS in paying their taxes, but we’re also committed to assisting in the apprehension and return of criminals who choose to run and hide upon their conviction and sentencing no matter where they go or how long they’ve been gone,” said Assistant Special Agent in Charge Ramsey E. Covington of the IRS-CI Houston Field Office. “We appreciate the efforts of our law enforcement partners and federal prosecutors in ensuring Tilong ultimately begins serving his 80-year sentence in federal prison.”
The Justice Department’s Office of International Affairs, the Regional Security Office of the State Department’s Bureau of Diplomatic Security, and the Consular Section of the U.S. Embassy in Yaoundé provided invaluable assistance in supporting the extradition and coordinating the return of Tilong to the United States.
Trial Attorney Jonathan Baum formerly of the Criminal Division’s Fraud Section (now with the Money Laundering and Asset Recovery Section) and Trial Attorney Andrew Pennebaker of the Fraud Section are prosecuting Tilong’s Medicare and tax fraud cases.
The FBI, HHS-OIG, and IRS-CI conducted the investigation under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas as part of the Medicare Fraud Strike Force. The interagency team combines the resources of federal, state, and local law enforcement entities to prevent and combat health care fraud, waste, and abuse. Strike Force teams have shut down health care fraud schemes around the country, arrested more than a thousand criminals, and recovered millions of taxpayer dollars.
Four More Defendants Sentenced in Coast Guard Test-Fixing SchemeRead the Press Release
NEW ORLEANS –U.S. Attorney Duane A. Evans announced the sentencings of four defendants for their roles in a test score-fixing scheme at a Coast Guard exam center.
On December 8, 2021, ALONZO WILLIAMS, who plead guilty to being an intermediary in the scheme, was sentenced by the Honorable Barry W. Ashe to 40 months incarceration to be followed by three years of supervised release.
QUANG TRAN, HARRY JOHNSON, and JAMES CARR, who each plead guilty to unlawfully receiving an officer-level mariner license, were sentenced by Judge Ashe to a year of probation and 100 hours of community service on October 28, December 8, and December 9, 2021 respectively
All 28 maritime industry workers charged in the November 2020 indictment have been convicted—24 plead guilty to unlawfully receiving licenses and 4 plead guilty to conspiring to defraud the United States by acting as intermediaries in the scheme. The other three defendants in this indictment—DOROTHY SMITH, ELDRIDGE JOHNSON, and BEVERLY MCCRARY—are former Coast Guard employees charged with conspiring to defraud the United States and are awaiting trial. Also awaiting trial are eight mariners charged with unlawfully receiving licenses in a separate, recently filed, indictment.
The indictments allege that the licenses at issue were unlawfully obtained though false exam scores entered by SMITH. The exams tested mariners’ knowledge and training to safely operate under the authority of the licenses, which were legally required to work various positions on vessels. SMITH is accused using a network of intermediaries to obtain payments from the mariners.
U.S. Attorney Evans reiterated that the indictments’ allegations against SMITH and any other defendants who are awaiting trial are merely charges and their guilt must be proven beyond a reasonable doubt.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
Former postal employee pleads guilty to theft of public moneyRead the Press Release
HOUSTON – A 35-year-old Houston resident has admitted to four counts of theft of public money, announced Acting U.S. Attorney Jennifer B. Lowery.
Tranese Nicole Mitchel was formerly employed as a lead sales and service clerk with the U.S. Postal Service (USPS) in Houston. Today, she admitted she issued fraudulent refunds by creating no-fee postal money orders She then cashed against her drawer at the post office where she worked.
Mitchell fraudulently issued and cashed a total of $29,947.30. She admitted using the money for her own benefit.
U.S. District Judge Andrew Hanen accepted the plea and set sentencing for April 11. At that time, Mitchell faces up to 10 years imprisonment and a maximum $250,000 fine.
She was permitted to remain on bond pending that hearing.
The U.S. Postal Service - Office of Inspector General conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Former Realtor Sentenced for Attempting to Entice a MinorRead the Press Release
PROVIDENCE – A former Providence realtor convicted by a federal court jury of attempting to entice a 10 year-old girl to engage in sexual activity was sentenced today by U.S. District Court Judge William E. Smith to 15 years in federal prison to be followed by seven years of federal supervised release, announced United States Attorney Zachary A. Cunha.
Thomas M. Hammond, 54, of Lincoln, was convicted after trial of attempting to persuade, entice, induce or coerce a minor to engage in illicit sexual activity.
At trial, the government presented evidence that in June 2017, Hammond communicated on line and by telephone for several days with a person he believed to be the stepfather of a 10 year-old girl living in Warwick; in actuality, he was communicating with undercover officers of the Rhode Island Internet Crimes Against Children (ICAC) Task Force and Homeland Security Investigations (HSI). When Hammond was told that the man was sexually abusing his stepdaughter, he proposed joining in the abuse. Hammond arranged to meet with the stepfather, and to accompany him to his home to molest the 10 year-old at a pool party that Hammond planned. Instead, when Hammond arrived at the designated meeting location, he was arrested by HSI and ICAC officers.
“As the jury heard, the evidence in this case was distressingly clear: this Defendant repeatedly, unequivocally, and enthusiastically sought to victimize the most vulnerable among us in the most vile ways imaginable,” said United States Attorney Zachary A. Cunha. “Today’s sentence should serve notice that this type of exploitation cannot, and will not, be tolerated in our communities.”
“Law enforcement takes very seriously the protection of the vulnerable among our communities,” said Matthew B. Millhollin, special agent in charge of Homeland Security Investigations. “Due to the diligence and dedication of HSI’s special agents, and that of our ICAC partners, this predator is behind bars where he belongs.”
Colonel James M. Manni, Superintendent of the Rhode Island State Police and Director of the Department of Public Safety stated, “I commend the work of the members of the ICAC Unit, as well as Homeland Security Investigation, and their continued vigilance in identifying and apprehending these online predators. I would also like to extend my thanks to the United States Attorney’s Office for their continued efforts in combating those individuals seeking to exploit the children of our State.”
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Former NFL Player Sentenced to Federal Prison for COVID-19 Relief FraudRead the Press Release
Miami, Florida – A former National Football League (NFL) player was sentenced Friday to 37 months in federal prison for fraudulently obtaining over $1.2 million through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Joshua J. Bellamy, 32, of St. Petersburg, Florida, a former NFL player pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on June 9. As part of the fraud scheme, Bellamy obtained a PPP loan of $1,246,565 for his company, Drip Entertainment LLC, using falsified documents and false information. Bellamy admitted to using the PPP loan proceeds on personal items, such as jewelry, and a stay at the Seminole Hard Rock Hotel and Casino. Bellamy also sought PPP loans on behalf of his family members and close associates. Bellamy further admitted that he paid more than $311,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Bellamy was ordered to serve three years of supervised released and pay $1,246,565 in restitution and $1,246,565 in forfeiture.
In addition, a Florida woman was sentenced on Dec. 9 to two years in federal prison for fraudulently obtaining a PPP loan as part of this criminal scheme. According to court documents, Yashica Bain, 38, of Miramar, Florida, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on Sept. 30. As part of the fraud scheme, Bain obtained a PPP loan of $415,232 for her company, Microblading Brow Studio LLC, using falsified documents and false information. Bain used the PPP loan proceeds to enrich herself and others who never worked for her company. She falsely described those payments as “payroll” and “wages” to perpetrate this fraud. Bain admitted that she paid more than $28,000 to Stote as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to her prison sentence, Bain was ordered to serve three years of supervised released and pay $415,232 in restitution and $415,232 in forfeiture.
Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. His case remains pending.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
IRS-CI, the FBI, and SBA-OIG investigated the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Turken and Yisel Valdes of the Southern District of Florida prosecuted the cases.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A complaint is merely an allegation, and Stote is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Former Florida Election Commission Attorney Pleads Guilty to Conspiracy and Distribution of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Eric Matthew Lipman, 59, of Tallahassee, Florida, pled guilty today to conspiring to distribute, receive, and possess material constituting child pornography, and distributing material constituting child pornography. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the guilty plea.
Between February 8, 2021, and February 11, 2021, Lipman, along with others, was a participant in Mega.NZ chat groups that distributed, received, possessed, and discussed child pornography images and videos. Mega.NZ was an Internet cloud storage and file hosting service based in New Zealand. Lipman conspired with the members of the chat groups to distribute, receive, and possess material constituting child pornography, and posted child pornography material within Mega.NZ chat groups for the benefit of other like-minded participants. The pornographic material that Lipman distributed, and that was found on Lipman’s electronic devices, involved prepubescent minors as well as minors under the age of 12.
Lipman faces a maximum penalty of 20 years in prison, with a minimum mandatory sentence of 5 years in prison, followed by a term of 5 years to life of supervised release on all counts following his prison sentence.
This case resulted from an investigation by the Homeland Security Investigations and the Leon County Sheriff’s Office. Assistant United States Attorney Justin M. Keen is prosecuting the case.
Lipman’s sentencing hearing is scheduled for March 18, 2022, at 1:30 p.m., at the United States Courthouse in Tallahassee before the Honorable United States Chief District Judge Mark E. Walker.
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.
Former Financial Advisor Sentenced to 14 Years in Federal Prison for $12 Million Fraud that Caused Clients to Lose Retirement SavingsRead the Press Release
LOS ANGELES – A former financial advisor with a lengthy disciplinary history was sentenced today to 168 months in federal prison for a real estate investment con that caused his clients – many of them elderly people who had invested their retirement savings – to lose more than $12 million.
Paul Ricky Mata, 58, a former resident of Upland who now lives in Oceanside, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $12,560,385 in restitution to his victims. Mata was remanded into federal custody at the hearing’s conclusion.
On July 19, Mata pleaded guilty to 17 felonies: 11 counts of mail fraud, three counts of wire fraud, one count of making a false statement in a bankruptcy proceeding, one count of concealing assets in bankruptcy, and one count of making a false oath and accounts in bankruptcy.
From August 2008 to September 2015, Mata caused victims to invest in several of his businesses, including Secured Capital, Logos Real Estate, and other ventures. Mata failed to disclose his disciplinary history to his victims, including disciplinary actions taken against him by the states of Nevada and California, a one-year suspension and $10,000 fine imposed by the Financial Industry Regulatory Authority (FINRA), and a three-year suspension by the Certified Financial Planner (CFP) Board stemming from various forms of misconduct, including omitting material facts necessary to make other statements not misleading.
Mata induced his victims to invest their money in Secured Capital, a real estate investment program that purportedly invested in “government-backed tax liens,” “asset-backed deed certificates,” and distressed commercial and residential properties. Mata guaranteed investors that Secured Capital’s investment return generated annual rates of 5 percent to 10 percent, when in fact, investments in Secured Capital had significant loss risks and did not make a profit from 2011 onward.
Instead of properly investing his clients’ money, Mata used Secured Capital investor funds to pay his personal expenses, including a $197,000 down payment on his personal residence in Upland, loans to himself and to other entities he created, and $370,000 that was transferred into his personal bank accounts.
“It was not simply that [Mata] was an investment advisor to his victims,” prosecutors argued in a sentencing memorandum. “It was that, for many of them, he met them through church. He prayed with them, professed to share values and beliefs with them, and he acted like they were his friends. Moreover, many of his victims are currently retired, and/or were in the process of retiring when [Mata] advised them to enter into his risky investments based on false pretenses.”
Mata also made false statements on bankruptcy court documents in October 2016, including that he had not used any business names during the previous eight years, and that he had not filed for bankruptcy protection within the previous eight years. In fact, Mata had previously filed for bankruptcy in June 2010.
During the bankruptcy proceeding, Mata fraudulently concealed his personal property – including a 2008 Mini Cooper automobile and a 2001 Jeep – from the government and from his creditors.
At a bankruptcy hearing in November 2016, Mata lied when he denied that he had transferred anything to family or friends during the previous four years. In fact, in October 2016, Mata transferred the 2008 Mini Cooper to his daughter, and, in August 2016, he transferred his Upland home to his wife.
In 2015, the United States Securities and Exchange Commission filed a civil action against Mata and two business associates, alleging that they operated the real estate scam. Later that year, the SEC obtained a judgment against Mata that enjoined him from violating securities laws and ordered him to pay $11,748,831. That same year, the California Department of Business Oversight obtained a permanent injunction against Mata, as well as a $14 million restitution order and $6.3 million in civil penalties.
The FBI investigated this matter. The Office of the United States Trustee provided assistance.
Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office prosecuted this case.
Former Erie Man Sentenced to More than 18 Years in Prison for Child Sexual Exploitation CrimesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been sentenced in federal court to 222 months in jail, to be followed by 15 years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children. Holden was also ordered to pay $3,000 in restitution and a $600 special assessment, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Ryan Matthew Holden, 37.
According to information presented to the court, Holden used Instagram to induce a ten-year-old female to provide him sexually explicit images and sent images of his penis to the minor victim. Holden also sent images of child sexual abuse material to the minor victim to encourage her to engage in sexually explicit conduct. Holden also received and possessed thousands of other items of child sexual abuse material.
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 Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Prior to imposing sentence, Judge Cercone noted the seriousness of Holden’s conduct and its significant impact upon the victim.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Holden.
Former Dubuque Postal Employee Sentenced to Nearly Three Years in Federal Prison for Mail TheftRead the Press Release
A former postal employee who stole hundreds of thousands of dollars-worth of checks from the mail was sentenced today to more than two years in federal prison.
Amy Jurisic, age 38, currently of Carterville, Georgia, and previously from Dubuque, Iowa, received the prison term after a June 14, 2021 guilty plea to one count of mail theft.
Evidence at the sentencing hearing showed that Jurisic worked as a postal clerk for the Dubuque Post Office in 2017 and 2018. Starting in June 2017 and lasting through at least October 2018, Jurisic stole over 60 pieces of mail. Jurisic specifically stole mail that contained checks made out to a business located in Dubuque. Evidence showed that she then gave the checks to an individual in Chicago who was part of a check-cashing operation. The operation would change the names on the check and attempt to deposit the checks into various bank accounts. Overall, Jurisic stole nearly $650,000 in checks. Of that amount, approximately $62,000 was actually deposited into bank accounts. Other checks were flagged as fraudulent and banks did not process the deposits.
Jurisic was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jurisic was sentenced to 33 months’ imprisonment. She was ordered to make $62,456.33 in restitution to victims. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Jurisic was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Postal Service-Office of Inspector General and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1042.
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Ex-LADWP Executive Agrees to Plead Guilty to Lying to FBI About Agreeing to Accept Job in Exchange for ‘Guarantees’ to ContractorRead the Press Release
INFORMATION
PLEA AGREEMENTLOS ANGELES – A former Los Angeles Department of Water and Power (LADWP) executive has agreed to plead guilty to a federal criminal charge for lying to the FBI about a lucrative job offer he secretly solicited and agreed to accept in exchange for providing “guarantees” of additional LADWP contract money to a lawyer who held a bribery-fueled contract with the department, the Justice Department announced today.
David F. Alexander, 54, of Arcadia, agreed to plead guilty to one felony charge of making false statements, a crime that carries a statutory maximum sentence of five years in federal prison.
A one-count information charging Alexander and his plea agreement were both filed today in United States District Court. Alexander is expected to make his initial court appearance in the coming weeks.
According to his plea agreement, Alexander was LADWP’s chief information security officer from May 2017 until February 2019, and then he served as the department’s chief cyber risk officer for the next six months.
Beginning in 2017, Alexander developed a professional relationship with Paul O. Paradis, 58, a New York lawyer who represented LADWP in a lawsuit against PricewaterhouseCoopers (PwC), the vendor it blamed for a major billing debacle. In 2017, Paradis created a downtown Los Angeles-based company known as Aventador Utility Solutions LLC, which obtained a three-year, $30 million no-bid contract with LADWP to perform remediation work on the faulty billing system. Aventador also performed certain cybersecurity-related work for LADWP.
In March 2019, Paradis – who simultaneously had represented a ratepayer suing LADWP while he represented the department itself – resigned as special counsel for LADWP’s billing lawsuit and, later that month, purportedly sold Aventador to an employee. Aventador then changed its name to Ardent Cyber Solutions LLC, and Paradis was to have no financial interest in or control over the Aventador or its successor company.
In February 2019, the Southern California Public Power Authority (SCPPA) – a collective of 11 municipal utilities, including LADWP – issued a request for proposal (RFP) for a cybersecurity services contract at the request of LADWP’s then-general manager, David H. Wright. Alexander, the RFP’s primary drafter, was one of four members of the scoring committee for the SCPPA RFP, which was responsible for presenting its scores and recommendations to the SCPPA’s Cybersecurity Working Group.
Alexander knew the SCPPA RFP process was intended to be a competitive, neutral and transparent process. But he manipulated that process with the goal of securing future cybersecurity work for Aventador, and, later, Ardent.
From late February 2019 to April 2019, Alexander used his position as the LADWP chief cyber risk officer and the vice-chair of the SCPPA’s Cyber Security Working Group to influence the composition of the scoring committee to include individuals whom he could persuade to rank Ardent favorably and shared his confidential scores for the SCPPA proposals with other members of the committee to persuade them to score Ardent favorably.
On April 5, 2019, the SCPPA Cybersecurity Working Group informed Ardent that it would recommend Ardent for the SCPPA contract. Later that day, Alexander met with Paradis, who by that time was covertly cooperating with the FBI. During that meeting, Alexander told Paradis that he had used the SCPPA bidding process to get LADWP’s “desired outcome,” that is, a contract with Ardent, but in a manner that falsely appeared “completely transparent.” Alexander also boasted that he was the one who had secured the contract for Ardent, informing Paradis, “that was me driving it.”
On April 18, 2019, the SCPPA Board approved a multi-award contract for Ardent and two other vendors valued at a total of approximately $17 million.
In June and July of 2019, Alexander further manipulated in Ardent’s favor an RFP process from LADWP for the award of a three-year, $82.5 million cybersecurity consulting services contract. Alexander was one of the RFP drafters and he solicited Paradis’s edits for the drafts to enhance Ardent’s ability to gain the contract over the dozen-plus other vendors.
On July 9, 2019, Paradis told Alexander, via text message, that after he submitted the Ardent proposal, “it will be up to you to ‘manage’ the evaluators the same way you did for the SCPAA [sic] process so that we get the correct result... [winking face emoji].” Alexander responded via text message, “I know my job [crying-laughing emoji].”
During a meeting in mid-July 2019, Alexander told Paradis that, in violation of his obligation to keep his scores strictly confidential, he provided his score sheet to two other evaluators to influence them to give Ardent a high score. At this lunch meeting, Alexander informed Paradis that he was interested in working at Ardent as its business manager.
By the end of that week, Alexander solicited and agreed to accept from Paradis a future job as the chief administrative officer of Ardent, a to-be-determined executive-level annual salary, a sign-on bonus, and recompense of $60,000 per year for 30 years for his early retirement penalty from LADWP. Alexander did so intending to be influenced and rewarded in connection with his ongoing assistance in securing the award of a multimillion-dollar LADWP contract to Ardent and use of his position to guarantee more than $10 million in future task orders for Ardent under the anticipated LADWP contract.
Alexander also asked for a secret Ardent email address and laptop computer to communicate with Paradis and to secretly perform work for Ardent while he was employed at LADWP.
On July 22, 2019, the FBI executed search warrants at LADWP as part of its ongoing investigation into the department and the Los Angeles City Attorney’s Office. Two days later during a voluntary interview, Alexander lied to the FBI about his conversations and agreements with Paradis. On July 26, 2019, Alexander met again with the FBI and again lied, falsely stating that he had declined any employment opportunity with Ardent and that he had never provided any guarantees to Ardent or to Paradis.
Paradis has agreed to plead guilty to a bribery charge for accepting an illicit kickback of nearly $2.2 million for getting another attorney to purportedly represent his ratepayer client in a collusive lawsuit against LADWP related to the billing debacle. Paradis is cooperating with the ongoing investigation into the collusive litigation and corruption at LADWP. Paradis is expected to make his initial court appearance on December 16.
Wright, LADWP’s former general manager, has agreed to plead guilty to a federal criminal charge for accepting bribes from Paradis in exchange for his official action to secure a three-year, $30 million no-bid LADWP contract for Aventador. His change-of-plea hearing is expected to occur in the coming weeks.
The FBI is investigating this matter. Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Assistant United States Attorneys Melissa Mills, Jamari Buxton and Susan Har of the Public Corruption and Civil Rights Section are prosecuting this case.
Erie Online Scammer Sentenced to 34 Months for Defrauding VictimRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 34 months in jail on his conviction of wire fraud and engaging in monetary transactions in property derived from specified unlawful activity, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Henry James Corder, 68, 2206 Glendale Avenue, Erie, Pennsylvania.
According to information presented to the court, Corder engaged in a scheme wherein he used numerous falsehoods to steal from a victim that he met online. Corder falsely stated that he was a U.S. Marshal who could find the perpetrator who had previously scammed the victim. He also falsely claimed he needed money for cancer treatments, funeral services for relatives, business partnerships in which he promised to include the victim and items for a non-existent security business. As a result of his lies to the victim, Corder obtained more than $500,000 from her. He then used that money to pay off his mortgage and buy cars and a motorcycle.
Prior to imposing sentence, Judge Cercone noted the length of time that Corder engaged in the criminal conduct and the devastating impact on the victim.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation for the investigation leading to the successful prosecution of Corder.
Erie Market Owner Pleads Guilty to Defrauding Food Stamp ProgramRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of food stamp fraud, United States Attorney Cindy K. Chung announced today.
Bader Al-Dhumani, 56, 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 January 2015 to in and around April 2020, Al-Dhumani, who is the owner and operator of Palm Tree Market in Erie, committed food stamp fraud by accepting food stamps for cash, store credit, and ineligible items. Al-Dhumani also took possession of customers’ PA Access Cards so that he could use the customers’ food stamp benefits at other stores to purchase inventory for his store.
Judge Baxter scheduled sentencing for April 20, 2022 at 1:30 p.m. The law provides for a total sentence of twenty years in prison, a fine of $250,000, 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 Al-Dhumani on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General and Homeland Security Investigations conducted the investigation that led to the prosecution of Al-Dhumani.
Erie Man Sentenced in Project Safe Childhood CaseRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 24 months in jail to be followed by five years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Gregory A. Doyle, 58.
According to information presented to the court, Doyle possessed computer videos depicting minors under the age of 12 engaging in sexually explicit conduct.
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 Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Doyle.
Erie Man Gets Prison Sentence for Possessing Molotov Cocktails During May 30, 2020 ProtestRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 40 months in jail on his conviction of possession of an unregistered destructive device, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Tyvarh Nicholson, 30.
According to information presented to the court, Nicholson threw Molotov cocktails at police officers during the riot that occurred in downtown Erie on May 30, 2020.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Erie Police Department for the investigation leading to the successful prosecution of Nicholson.
Erie Fentanyl Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 120 months in jail on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Chancelor Amir Jordan, 37.
According to information presented to the court, on or about February 4, 2020, Jordan possessed with intent to distribute more than 30 grams of fentanyl. The court was advised that Jordan also possessed a 9mm Taurus semi-automatic handgun, ammunition, cash, and a press used for packaging controlled substances.
Project Safe Neighborhood (PSN) is the centerpiece of the Department of Justice’s violent crime reductions 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 prevent and reentry programs for lasting reductions in crime.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Jordan.
Ethete Man Arraigned for Assault by StrangulationRead the Press Release
United States Attorney Bob Murray announced today that CALVIN ANDERSON WHITE, 32, of Ethete, Wyoming was charged by indictment for assault by strangulation. White appeared for an arraignment hearing before United States Magistrate Judge Teresa M. McKee on
December 3, 2021 and pleaded not guilty to the charges. A trial has been set for January 31, 2022 and the defendant was remanded to the custody of the United States Marshals Service.
According to the indictment, on or about October 25, 2020, White did knowingly assault the victim by strangling and attempting to strangle her. If convicted, White faces up to 10 years imprisonment, up to a $250,000 fine, three years of supervised release and a $100 special assessment.
This crime is being investigated by the Federal Bureau of Investigation with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Timothy W. Gist is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 21-cr-00123-SWS
District Man Sentenced to 15-Year Prison Term for Two Armed Robberies in Northeast WashingtonRead the Press Release
WASHINGTON – Tyrell Morris, 24, of Washington, D.C., was sentenced today to serve 15 years in prison for a pair of armed robberies he committed over a six-week period this summer in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Morris pleaded guilty in September 2021, in the Superior Court of the District of Columbia, to two counts of armed robbery and related firearms offenses. He was sentenced by the Honorable J. Michael Ryan to 18 years in prison; however, three years of that time was suspended on the condition that Morris successfully complete five years of supervised probation.
According to the government’s evidence, on July 22, 2021, at approximately 7:35 a.m., Morris and an accomplice approached a man in the mouth of an alley behind the 1700 block of Gales Street NE, demanding everything that he had. The man, who had been walking, had a bag containing his phone and wallet. Morris brandished a firearm, which he then used to hit the victim across his face and head. When the victim turned to run away, Morris fired at him several times, hitting the victim once in the leg. Morris and the accomplice then fled with the bag.
The second robbery took place on Aug. 29, 2021, at approximately 10:10 a.m. The victim was using an ATM located inside a small building in the 1100 block of H Street NE, in the process of withdrawing money. As he was doing so, Morris and an accomplice entered the building. Morris aimed a firearm at the victim and demanded money. He took approximately $70 from the man, as well as the victim’s ATM card, which Morris used to withdraw approximately $1,000. Morris and the accomplice then left.
Morris was arrested on Sept. 7, 2021, following an investigation by the Metropolitan Police Department into a series of armed robberies. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews Yette, Victim/Witness Program Specialist Karina Hernandez, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorney Andy Wang, who investigated and prosecuted the case.
Defendant Sentenced in Brooklyn Federal Court to 28 Years in Prison for Drug-Related MurderRead the Press Release
Earlier today, in federal court in Brooklyn, Christian O. Dalmau was sentenced by United States District Judge Pamela K. Chen to 28 years in prison for murder in furtherance of a drug trafficking conspiracy and possessing a firearm in connection with that drug trafficking conspiracy. Dalmau pleaded guilty to those charges in September 2020.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Dalmau callously murdered the victim over an unpaid drug debt, but today, Dalmau begins to answer for a different debt – the one he owes to society for decades to come for committing these crimes,” stated United States Attorney Peace. “Today’s sentence underscores the commitment of this Office to protecting our communities from violence and dangerous drugs.”
Mr. Peace thanked the Buffalo Police Department for its assistance in this case.
From at least 2011 until Dalmau’s arrest in 2015, the defendant was the leader of a large-scale cocaine distribution network operating throughout the northeast, but primarily in New York City, Buffalo, New York, Pennsylvania, Massachusetts and Puerto Rico. One of the individuals Dalmau supplied with quantities of cocaine was Dustin Ortiz-Maldonado. According to public filings and statements made during his guilty plea, on January 5, 2014, Dalmau fatally shot Ortiz-Maldonado four times in Buffalo over a dispute involving an unpaid drug debt.
Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution.
The Defendant:
CHRISTIAN O. DALMAU
Age: 35
Bronx, New YorkE.D.N.Y. Docket No. 18-CR-250 (PKC)
Deadline Extended for Submitting Comments on Draft Policy Statement on Licensing Negotiations and Remedies for Standards-Essential Patents Subject to F/RAND CommitmentsRead the Press Release
The Justice Department’s Antitrust Division, U.S. Patent and Trademark Office (USPTO), and the National Institute of Standards and Technology (NIST) are extending the period for receiving comments on the Draft Policy Statement on Licensing Negotiations and Remedies for Standards-Essential Patents Subject to F/RAND Commitments, released on Dec. 6. The agencies are extending the comment period from 30 to 60 days, with comments now being accepted until Feb. 4, 2022. The agencies extended the comment period to give all stakeholders more time to provide input on the new draft policy statement, which seeks to promote good-faith licensing negotiations and addresses the scope of remedies available to patent owners that have agreed to license their essential technologies on reasonable and non-discriminatory or fair, reasonable and non-discriminatory (F/RAND) terms.
Interested parties, including attorneys, economists, academics, consumer groups, industry stakeholders or other members of the public, may submit public comments to Regulations.gov until Feb. 4, 2022. Information about the draft revised statement can also be found on the Antitrust Division’s website.
DOJ Project Safe Neighborhoods Grant to Address State Crime Lab Gun BacklogRead the Press Release
PROVIDENCE, R.I. – United States Attorney Zachary A. Cunha announced today that the Justice Department has awarded a $296,966 Project Safe Neighborhoods grant to the Rhode Island State Crime Laboratory to address a backlog of firearm related cases.
The grant will be used to retain a firearms examiner to reduce the backlog of expended cartridge casings and projectiles that increased from zero cases in April of 2020 to over 280 cases in when the funding was requested in May of 2021.
“Getting violent criminals and their guns off the street is critical to the safety of our communities,” said United States Attorney Zachary A. Cunha. “Project Safe Neighborhoods leverages federal and state law enforcement partnerships, data, and resources to do just that. This grant, which will help our Rhode Island partners to quickly move potentially significant evidence through the state crime lab, is a critical part of our efforts.” ”
The Rhode Island Crime Lab serves all of the state of Rhode Island including state and municipal law enforcement agencies, the Office of the State Medical Examiner, and the Rhode Island Attorney General’s Office.
The Project Safe Neighborhoods (PSN) Program 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.
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Clarksburg man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Gary Roudolph Loy, Jr., of Clarksburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Loy, 48, pleaded guilty today to one count of “Distribution of Methamphetamine.” Loy admitted to selling methamphetamine in October 2020 in Randolph County.
Loy faces up to 20 years of incarceration and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
City of Kenner Director of Inspection and Code Enforcement Charged with Conspiracy and Tax FraudRead the Press Release
NEW ORLEANS, LA – The U.S. Attorney’s Office announced today that JAMES MOHAMAD, 52, of Kenner, was charged on December 10, 2021 in a 5-count superseding indictment by a federal Grand Jury with conspiracy to use an interstate facility with intent to carry on unlawful activity (Title 18, United States Code, Sections 371 and 1952(a)(3)) and filing false tax returns (Title 26, United States Code, Section 7206(1)).
According to the superseding indictment, MOHAMAD, the Director of the Department of Inspection and Code Enforcement for the City of Kenner, paid bribe money to Brian Medus, the Assistant Chief Mechanical Inspector for the City of New Orleans, Safety and Permits Department, in return for the issuance of fraudulent permits for MOHAMAD’s HVAC jobs. Throughout the course of the conspiracy, MOHAMAD paid Medus and others approximately $93,000 to further the bribery scheme. Additionally, MOHAMAD is charged with four counts of filing false tax returns for 2016-2019.
If convicted of Count 1, MOHAMAD faces a maximum term of imprisonment of five (5) years, a fine of not more than $250,000, up to three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. As to each of Counts 2-5, MOHAMAD faces a maximum term of imprisonment of three (3) years, a fine of not more than $250,000, up to three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee.
A co-defendant, Brian Medus, has pleaded guilty to the conspiracy charge and is scheduled for sentencing on February 16, 2022.
The United States Attorney’s Office reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, and the City of New Orleans/Office of Inspector General. Assistance was also provided by the Louisiana State Licensing Board for Contractors. Assistant United States Attorney Tracey N. Knight is prosecuting the matter.
Chicago Woman SentencedRead the Press Release
HAMMOND- Taniya Williams, 22, of Chicago, Illinois, was sentenced by United States District Court Chief Judge Jon DeGuilio after pleading guilty to the felony offense of making false statements in connection with the acquisition of a firearm, announced United States Attorney Clifford D. Johnson.
Williams was sentenced to 5 months in prison, 5 months home detention and 1 year of supervised release.
According to documents in the case, on November 12, 2020, Williams purchased a semi-automatic pistol from a federally licensed firearms dealer in Lake County, Indiana. At the time of the purchase, Williams, a Chicago resident under felony indictment for aggravated unlawful use of a weapon, falsely stated that she was an Indiana resident and that she did not have any pending felony charges against her. These false statements were in violation of federal law. Williams was subsequently convicted of felony aggravated unlawful use of a weapon in Illinois.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives along with the Chicago Police Department. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Padilla.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Brooklyn Supreme Court Justice Convicted of Obstructing Federal Investigation of Misconduct at Municipal Credit UnionRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced today the conviction of SYLVIA ASH, a justice of the New York State Supreme Court, and former chair of the Board of Directors of Municipal Credit Union (“MCU”), for conspiracy to obstruct justice, obstruction of justice, and making a false statement to a federal agent. These charges arose from a scheme to impede the federal criminal investigation into fraud and corruption at MCU, a non-profit, multibillion-dollar financial institution, including misconduct committed by Kam Wong, the former chief executive officer (“CEO”), and Joseph Guagliardo, a former New York City Police Department Officer and member of MCU’s Supervisory Committee. Wong and Guagliardo were charged separately and previously pled guilty to embezzlement from MCU. ASH was convicted after a two-week jury trial before U.S. District Judge Lewis A. Kaplan and is scheduled to be sentenced on April 20, 2022 by Judge Kaplan.
U.S. Attorney Damian Williams said: “Today’s conviction demonstrates our resolve in uncovering criminal conduct at the highest levels of MCU and ensuring that those who attempt to thwart a federal investigation face consequences for that corrosive conduct. As the jury unanimously found, Sylvia Ash took repeated steps, over multiple months, to seek to obstruct the federal criminal investigation into financial misconduct at MCU that took place during Ash’s tenure as chair of the Board of Directors. Obstruction of justice, particularly by a sitting state court judge, is a serious crime, and Ash now faces punishment for her obstruction scheme.”
According to the Complaint, Indictment, Superseding Indictment, publicly-available information, court filings, and evidence presented during the trial in Manhattan federal court:
Municipal Credit Union
MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”). MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $4 billion in member accounts, each of which is insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA. Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York state governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.
At all relevant times, MCU was overseen by a Board of Directors (the “Board”) and a Supervisory Committee (the “Supervisory Committee”), each of which was composed of members of MCU, who were not supposed to be compensated. As a result of severe deficiencies in the Board’s and the Supervisory Committee’s oversight of the credit union, which came to light in connection with the federal investigation, the New York Department of Financial Services (“DFS”) removed the members of the Supervisory Committee in May 2018 and the Board in June 2018. Subsequently, DFS appointed NCUA as the conservator for the credit union.
ASH
ASH is a sitting New York State Supreme Court Justice in Kings County. ASH has served as a judge in the New York State court system since approximately 2006, first as a Kings County Civil Court Judge, and then, starting in 2011, as a Kings County Supreme Court Justice. In or about January 2016, ASH was appointed as the presiding judge in the Kings County Supreme Court’s Commercial Division. After the charges in this case were unsealed, ASH was suspended from her position.
ASH served on MCU’s Board from in or about May 2008 until on or about August 15, 2016, when she resigned. From in or about May 2015 until her resignation, ASH served as the chair of the Board. ASH resigned after a complaint was filed against her by the New York State Commission on Judicial Conduct arising from a conflict of interest between her position as a state judge and her membership on MCU’s Board. More than a year before her resignation, ASH had been instructed to resign from MCU’s Board by the Advisory Committee on Judicial Ethics, which instruction she disregarded.
From at least in or about 2012 through 2016, while serving as an MCU Board member and while Wong was CEO, ASH received annually tens of thousands of dollars in reimbursements and other benefits from MCU, including airfare, hotels, food and entertainment expenses for her and a guest to attend conferences both domestically and abroad, annual birthday parties at a minor league baseball stadium, payment for phone and cable bills, and electronic devices. Even after her resignation from the Board, Wong continued to provide or cause MCU to provide ASH with benefits, such as Apple devices and sports tickets. As a sitting state judge, ASH was required to report both her board service and gifts and benefits she received from any outside sources on an annual state disclosure form. But between at least 2012 and 2018, ASH never reported her board service nor any gifts or benefits from MCU.
ASH’s Obstruction of Justice
In January 2018, after Wong, MCU’s then-CEO, had been approached by federal law enforcement agents investigating apparent financial misconduct by Wong, in an attempt to protect Wong, ASH agreed to and did sign a false and misleading memorandum purporting to explain and justify millions of dollars Wong had received from MCU. Wong subsequently provided that false and misleading memorandum to federal agents in an attempt to demonstrate that the millions of dollars had purportedly been orally approved for him to receive by ASH in June 2015, when she was chair of the Board. However, in truth, neither ASH nor the Board had approved the payment of those funds.
On March 1, 2018, shortly after Wong was placed on administrative leave by MCU, ASH was interviewed about the memorandum she signed for Wong. During that interview, ASH admitted that the memorandum was not accurate, but attempted to justify the money that Wong received by stating that MCU’s then-current general counsel had told her that Wong’s employment contract gave him the option of receiving such money. That statement was false.
On March 13, 2018, ASH was served with a federal grand jury subpoena (the “First Subpoena”), which required the production of documents related to various matters, including Wong’s compensation, and any communications with Wong through the date of the First Subpoena. On April 6, 2018, during a telephonic interview with a federal agent, ASH falsely stated that she did not have any materials responsive to the First Subpoena.
On June 8, 2018—after Wong was charged with embezzlement from MCU and the Government executed a judicially-authorized search of the residence of Guagliardo—ASH was interviewed by telephone for a second time about the First Subpoena. During that interview, ASH again falsely stated that she did not have any materials responsive to the First Subpoena.
On June 18, 2018, ASH was served with a second federal grand jury subpoena (the “Second Subpoena”), which required the production of, among other things, all correspondence with Wong and Guagliardo; all documents regarding any criminal investigation, internal investigation, or audit related to Wong; and all documents regarding items of value ASH received from MCU, Wong, or Guagliardo. Shortly afterward, ASH went to an Apple store and wiped an iPhone X that Wong had provided her in January 2018. In addition, ASH deleted emails from her Gmail account, including all of her emails with Guagliardo, none of which she produced in response to either of the two federal grand jury subpoenas directed to her. ASH also later wiped two MCU-issued iPads she had received.
On July 6, 2018, on ASH’s behalf, her then-counsel produced materials to the Government in response to the Second Subpoena. This production was materially incomplete, and did not contain text messages, emails, and other documents ASH possessed or had under her custody or control that were responsive to the Second Subpoena.
On July 9, 2018, ASH attended a voluntary interview with the U.S. Attorney’s Office. During this interview, while accompanied by her then-counsel, ASH made multiple false statements, including repeating false statements regarding her purported conversations with MCU’s former general counsel about Wong’s receipt of cash payments and falsely claiming that she and her aunt took a trip to Las Vegas paid for by MCU, including airfare, lodging, and entertainment expenses, after she resigned because all of her travel arrangements were paid for by MCU before she resigned, when in truth all of the expenses were paid for after she resigned.
On or about October 11, 2019, ASH was arrested and her cellphone was seized. After obtaining a judicially-authorized search warrant, ASH’s phone was searched, which revealed, among other things, numerous text messages, including with Wong and Guagliardo, that were concealed in response to the First and Second Subpoenas.
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ASH, 64, of Brooklyn, New York, was convicted of one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison; one count of obstruction of justice, which carries a maximum penalty of 20 years in prison; and one count of making false statements, which carries a maximum penalty of five years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as sentencing of the defendant will be determined by Judge Kaplan.
On June 4, 2019, Wong was sentenced to 66 months in prison for embezzlement from MCU and was ordered to forfeit $9,890,375 and to pay restitution in the same amount to MCU.
On July 23, 2020, Guagliardo was sentenced to 27 months in prison for embezzlement from MCU and was ordered to forfeit $425,514 and to pay $468,189 in restitution to MCU.
U.S. Attorney Williams praised the outstanding work of the Special Agents of the United States Attorney’s Office. Mr. Williams also thanked the New York County District Attorney’s Office and DFS for their assistance.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Daniel C. Richenthal, and Jonathan Rebold are in charge of the prosecution, with the assistance of Special Assistant U.S. Attorney Alona S. Katz from the New York County District Attorney’s Office.
Brevard County Man Sentenced to 13 Years for Receiving Child Sexual Abuse Videos over the InternetRead the Press Release
Orlando, Florida – United States District Judge Paul G. Byron has sentenced Fred Lee White (41, Titusville) to 13 years in federal prison for receiving images over the internet that depicted child sexual abuse. White was also ordered to serve a 15-year term of supervised release and to register as a sex offender.
White had pleaded guilty in September 2021.
According to court documents, the Brevard County Sheriff’s Office arrested White on May 28, 2020, for exposing himself to a 10-year-old child who lived in his neighborhood. Later, a neighbor found an unlocked electronic tablet that belonged to White and reported to law enforcement that the tablet contained several images that appeared to depict the sexual abuse of children.
A forensic examination of White’s tablet revealed several videos White had recorded from an application on the tablet. The app was a social network service on which account holders can post livestream broadcasts of material recorded on electronic devices. Other users with accounts could choose to watch the broadcast and send real time comments and rewards to the broadcaster.
Approximately 114 video recordings of the app were found on White’s tablet. The videos depicted children taking selfie-style videos of themselves, in various stages of undress, while White and other users were viewing the live broadcasts. Some of the videos depicted minor girls exposing and sexually abusing themselves in return for rewards offered by those like White who were viewing the broadcasts.
“Every time a predator shares child pornography it re-victimizes a young child,” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “Thanks to HSI and our law enforcement partnership with the Brevard County Sheriff’s Office, he will be held accountable for his crimes.”
This case was investigated by the Brevard County Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney John Gardella.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Big Stone Gap Man Sentenced for Unemployment, Mail FraudRead the Press Release
ABINGDON, Va., – A Big Stone Gap, Virginia man was sentenced last week to 60 months in federal prison and ordered to pay $164,470 in restitution for his part in a much larger conspiracy to defraud the government of more than $1.5 million in pandemic-related unemployment funds.
Johnny Hobbs, 37, joined co-defendant Farren Ricketts, 31, and others in a scheme to file fraudulent claims for pandemic unemployment benefits via the Virginia Employment Commission [VEC] website. Co-conspirators submitted unemployment claims containing materially false representations for various individuals who were known to be ineligible to receive pandemic unemployment benefits.
While incarcerated, Hobbs joined the scheme in May 2020, initially seeking to receive unemployment benefits for himself. After he was released from jail, Hobbs approached Ricketts, and the other co-conspirators, and accepted a limited role with their criminal enterprise submitting claims to the VEC and recertifying weekly claims for other co-conspirators.
Ricketts, who pleaded guilty to similar charges, will be sentenced later this week.
United States Attorney Christopher R. Kavanaugh announced the sentence today.
The Department of Labor - Office of the Inspector General, the Internal Revenue Service - Criminal Investigation (IRS-CI), the Russell County Sheriff’s Office, and the Norton Police Department in Wise County investigated the case.
Assistant United States Attorney Daniel J. Murphy is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .
Bath Man Sentenced for Defrauding Employer of over $2.7 Million and Related OffensesRead the Press Release
PORTLAND, Maine: A Bath man was sentenced today in U.S. District Court in Portland for wire fraud, money laundering, transferring property to prevent seizure, and aggravated identity theft, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge D. Brock Hornby sentenced David Altenburg, 46, to ten years in prison followed by 18 months of supervised release. He was also ordered to pay $2,807,080 in restitution to victims of the offenses. He pleaded guilty on June 24, 2021.
According to court records, between February 2019 and September 2020, Altenburg used his access to his employer’s financial accounts to conduct approximately 106 wire transfers and other withdrawals. To execute his scheme, he fraudulently used the name and email address of a firm director to purportedly authorize certain transfers. In total, he diverted more than $2.7 million to accounts under his control. He used the diverted monies to fund travel; pay down his mortgage; and purchase luxury vehicles, jewelry, clothing, and other items. After learning he was under investigation, he transferred title of his residence to a trust managed by his wife in an effort to prevent its seizure.
Prior to entering his guilty plea, Altenburg opened an online bank account. Despite agreeing to surrender all proceeds of his criminal conduct, he funded this account through the sale of criminally derived property. He then spent money on visits to resorts in Maine and New Hampshire and other non-essential items. This conduct resulted in his loss of credit for accepting responsibility for the offenses.
The FBI investigated this case with assistance from the Bath Police Department.
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Bahamian Man Charged in False Claim to United States Citizenship, Passport and Voter FraudRead the Press Release
RALEIGH – Michael F. Easley, Jr., United States Attorney for the Eastern District of North Carolina announced today that on November 16, 2021, a federal grand jury sitting in the Eastern District of North Carolina returned a sealed, ten-count indictment charging Garbant Piquant with passport fraud, voting by an alien, and falsely claiming to be a United States citizen in order to register to vote.
Garbant Piquant, 53, residing in Garner, was arrested on December 9, 2021 and will be presented before U.S. Magistrate Judge Robert T. Numbers, II today. The case is assigned to U.S. District Judge James C. Dever III.
According to court documents and other information presented in court, on October 6, 2014, Piquant applied for a renewal of his previously issued U.S. passport. The U.S. Department of State’s Diplomatic Security Service (DSS) initiated an investigation into the veracity of the Virginia birth certificate that Piquant had previously used to establish U.S. citizenship. Record checks with the Virginia Office of Vital Statistics indicated that the birth certificate was not on record with the Commonwealth of Virginia and had not been issued. Further investigation by DSS located a birth record for Piquant in the Bahamas, as well as U.S. Immigration records that reveled Piquant’s brother had previously filed a petition for lawful permanent residence on his behalf.
As a result of Piquant falsely claiming to be a U.S. citizen and being previously issued a U.S. passport on November 6, 2018, Piquant cast a ballot in Wake County for the primary election. Additionally, on February 11, 2019, Piquant submitted his fraudulently obtained U.S. passport and voter registration card to the North Carolina Division of Motor Vehicles in order to procure a Real Identification Driver’s License.
From November 2018, through November 2020, Piquant, voted in all Primary and General Elections, claiming that he was a U.S. citizen. Piquant cast ballots in person, early voting, and by using absentee ballots.
If convicted of Counts One or Three, passport fraud, Piquant faces up to ten years in federal prison and fines of up to $250,000 or both. If convicted of Counts Two, Seven or Ten, voting by alien, Piquant faces up to one year in federal prison and fines of up to $100,000 or both. If Piquant is convicted of counts Four, Six, or Nine, false claim of U.S. citizenship, Piquant faces up to three years in federal prison and fines up to $250,00 or both. If convicted of Counts Five or Eight, false statement and claim of U.S. citizenship in order to register to vote, Piquant faces up to five years in federal prison and fines up to $250,000 or both.
This case is being investigated by DSS, Homeland Security Investigations, and the North Carolina, Division of Motor Vehicles, License and Theft Bureau.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-417-01D.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Atlanta man sentenced to prison for attempting to conceal firearms in overseas shipment of household goodsRead the Press Release
SAVANNAH, GA: An Atlanta man has been sentenced in federal court after admitting he attempted to hide firearms in an overseas shipment of goods.
Shawn Sabi, 53, of Atlanta, was sentenced to 19 months in prison after pleading guilty to Submitting False or Misleading Export Information, said David H. Estes, U.S. Attorney for the Southern District of Georgia. Sabi also was ordered to serve two years of supervised release after completion of his prison sentence.
There is no parole in the federal system.
“There are very strict laws in place to restrict shipment of firearms overseas, and Shawn Sabi violated those laws,” said U.S. Attorney Estes. “He is now being held accountable, and his sentence should serve as a warning that our law enforcement partners are ever vigilant in monitoring traffic through our ports.”
In March 2021, agents from U.S. Customs and Border Protection (CBP) flagged a shipment moving through the Port of Savannah, labeled “115 pieces used household goods and personal effects,” based on discrepancies in declarations Sabi filed for the shipment. An agent from the U.S. Department of Commerce Bureau of Industry and Security (BIS) reviewed the records, leading to a search of the container in which a shotgun, a rifle, and three handguns were discovered concealed inside the legs of an aluminum shelving unit, along with ammunition and other materials.
In most cases, it is illegal to export firearms to another country without a federal export license. BIS confirmed that Sabi does not possess such a license.
“Firearms illegally exported from the United States can often lead to dire consequences overseas,” said Ariel Joshua Leinwand, Special Agent in Charge of the Bureau of Industry and Security’s (BIS) Office of Export Enforcement, which oversees BIS investigations in the Southeast. “Disrupting those that supply illegal weapons from the United States is a top priority of BIS Special Agents, and we will continue to work with our law enforcement partners to prevent firearms from potentially falling into the wrong hands abroad.”
“U.S. Customs and Border Protection (CBP) takes great pride in fostering collaboration with our partner government agencies to diligently enforce U.S. export control laws as part of our overall duties and responsibilities in protecting and preserving our national security, while continuing to facilitate lawful trade,” said Area Port Director Henry DeBlock.
“HSI is committed to combating illegal firearms smuggling activities that fuel violence both domestically and abroad,” said Homeland Security Investigations Atlanta Special Agent in Charge Katrina Berger. “This case highlights how law enforcement partnerships work together to protect our communities and our nation.”
The case was investigated by the U.S. Department of Commerce Bureau of Industry and Security, Office of Export Enforcement, Miami Field Office; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Customs and Border Protection; and Homeland Security Investigations; and prosecuted for the United States by Assistant U.S. Attorney Jennifer G. Solari and Special Assistant U.S. Attorney Darron J. Hubbard.
Anchorage Man Sentenced to over Seven Years in Prison for Drug TraffickingRead the Press Release
ANCHORAGE – An Anchorage man was sentenced by U.S. District Chief Judge Timothy M. Burgess to over seven years in federal prison for possession of more than 50 grams of methamphetamine with the intent to distribute. Gian Carol Clemente Pangilinan, 25, was found guilty after a three-day federal jury trial in January 2020.
According to court documents and evidence presented at trial, Anchorage Police Officers (APD) were looking for Pangilinan on July 9, 2019 and found him in the Burger King parking lot near Penland Parkway. Once Pangilinan saw the police, he scaled a fence and fled on foot into the Penland Parkway neighborhood, shedding items of clothing and other personal items along the way including his cellular telephone and a baggie containing 162 grams of 99 percent pure methamphetamine. Despite his attempt to evade law enforcement, APD pursued Pangilinan on foot and took him into custody.
Evidence pulled from Pangilinan’s cell phone, such as text messages and direct messages on social media, established that since December 2018 Pangilinan had been distributing many different types of illegal drugs (including heroin, cocaine and methamphetamine) in quantities ranging from one gram to several ounces. Specifically, individuals would contact Pangilinan via text or direct message on social media asking for different quantities of illegal drugs. Pangilinan would then respond with a price and agree to meet up with them.
The jury also heard evidence of a separate incident that occurred in February 2019, when APD responded to a call of shots fired near the Mountain View car wash. When APD attempted to contact the defendant, he tried to flee on foot. During the chase, Pangilinan again began shedding personal items including his cellular telephone and a baggie of methamphetamine.
At the time of the July 2019 incident, Pangilinan was out on release from the State of Alaska in four pending criminal cases including Vehicle Theft in the First Degree, Assault in the Third Degree, Resisting Arrest and Violating Conditions of his Release.
“The defendant couldn’t escape the law, and neither will other dealers wanting to profit from the misery of people addicted to these illegal and deadly drugs,” said Acting U.S. Attorney Bryan Wilson of the District of Alaska. “We will continue to work together with law enforcement partners to ensure that drug traffickers are held responsible for the harm they cause in communities across Alaska.”
“Anchorage Police Officers work very hard to keep Anchorage safe and to keep drug trafficking off of our streets. Pangilinan’s arrest helps accomplish both of these goals,” said Anchorage Chief of Police Kenneth McCoy. “We have a strong relationship with our law enforcement partners and we will continue coordinated efforts towards stopping drug trafficking in our city.”
In November 2020 an unsealed indictment charged Gian Carlo Pangilinan with conspiracy, theft of firearms, possession of stolen firearms and tampering with evidence related to the June 6, 2019, burglary of Granny’s Guns, a federally licensed firearms dealer located in Anchorage. Also charged in the indictment are: Muna Junior Rhode, 22, Kao Chiang Saelee, aka “Robbie,” 39, and Hans Mikaele Wells, aka “Mika,” 25.
The Anchorage Police Department (APD), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Drug Enforcement Administration (DEA) conducted the investigation leading to the successful prosecution of this case.
Assistant U.S. Attorney Kelly Cavanaugh prosecuted the case.
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Amtrak Employee Admits Defrauding Amtrak of More Than $76,000 Worth of Chainsaws and Chainsaw PartsRead the Press Release
NEWARK, N.J. – An Ocean County, New Jersey man today admitted to fraudulently obtaining chainsaws and chainsaw parts from his employer Amtrak and then selling this equipment for personal profit, Acting U.S. Attorney Rachael A. Honig announced.
Jose Rodriguez, 49, of Brick, New Jersey, pleaded guilty by videoconference before U.S. District Judge Zahid N. Quraishi to an information charging him with one count of mail fraud. Rodriguez was previously charged by complaint in March 2021 with one count of theft from an agency receiving federal funds and one count of theft of government property.
According to documents filed in this case and statements made in court:
Rodriguez had been an Amtrak employee since October 2007, most recently as a senior engineer and repairman, based out of an Amtrak facility in North Brunswick, New Jersey. Between March 2012 and July 2020, Rodriguez obtained 114 chainsaws, 122 chainsaw replacement bars, and 222 replacement chains from Amtrak, the total value of which was over $76,000, under the false pretense that this equipment would be used for Amtrak projects, but then sold the equipment either on an online auction service or directly to purchasers. Rodriguez used the U.S. Postal Service to mail the stolen chainsaw and chainsaw parts to purchasers throughout the United States, including purchasers in Ohio, Pennsylvania, and West Virginia.
The mail fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for April 19, 2022.
Acting U.S. Attorney Honig credited detectives from Amtrak Police New York Division and Mid-Atlantic Division, under the direction of Chief Sam Dotson, and special agents from Amtrak Office of Inspector General, under the direction of Special Agent in Charge Michael J. Waters, Eastern Field Office, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Leslie Faye Schwartz in the Special Prosecutions Division and Cari Fais, Chief of the Criminal Division’s Opioids Unit.
Acting U.S. Attorney Gonzalez Announces a $344,963 Grant Awarded to the Idaho ICAC Task Force to Help Fund Ongoing OperationsRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today that the Idaho Internet Crimes Against Children (ICAC) Task Force received an award totaling $344,963 from the Department of Justice’s Office of Juvenile Justice Delinquency Prevention (OJJDP).
The Idaho ICAC Task Force is a statewide multi-disciplinary, multi-jurisdictional task force that detects, investigates, prosecutes, and engages in prevention activities involving technology-facilitated crimes against children. The task force is led by the Idaho Attorney General's Office, which employs a unit of experienced investigators and forensic examiners that actively investigate ICAC cases throughout the state on a full-time basis.
“I am encouraged to see federal resources come to Idaho, resources that will be used to forge and to strengthen vital relationships, to share information and best practices, and to take our efforts to prevent and reduce child exploitation to a new level,” said Acting U.S. Attorney Gonzalez. “ICAC is a recognized leader dedicated to keeping our nation’s most sacred pledge and helping to fulfill our promise to ensure security and opportunity for our children. As everyone knows, this work is not easy, but our collective efforts – to protect children in need and at risk, to support juvenile victims, and to safeguard our young people from exploitation, abuse, and trafficking – have never been more urgent. I thank our state and local partners for all that they have done, and I look forward to working with each of them to further develop and execute our child safety strategy and to celebrate additional achievements.”
“ICAC is a partnership strengthened by support from local, state and federal resources,” Attorney General Lawrence Wasden said. “I thank our federal partners for continuing to recognize the need that exists in Idaho for a strong, well-equipped task force that targets those who prey on our children and grandchildren. Idaho’s young people will be safer as a result of this support and for that I am grateful.”
OJJDP grant funds will support program costs to include personnel, overtime for affiliate agencies, an officer wellness program, equipment, software, and mobile services for the task force's activities. The task force will equip and train investigators in Internet investigations; equip and train forensic analysts of digital evidence; coordinate effective prosecution and training for law enforcement and prosecutors; recruit, train and equip new agencies to build statewide capacity to effectively investigate crimes and respond to requests from the National Center for Missing and Exploited Children and other partners; and provide public education regarding Internet safety and crime prevention techniques. The task force's progress will be measured in terms of the number of investigations conducted, arrests made, investigators/prosecutors trained, agencies equipped, presentations conducted, and – most importantly – children rescued.
Anyone with information regarding the exploitation of children is encouraged to contact local police, the Attorney General’s ICAC Unit at 208-947-8700, or the National Center for Missing and Exploited Children at 1-800-843-5678. Parents, educators and law enforcement officials can find more information and helpful resources at the ICAC website, ICACIdaho.org.
To learn more about OJJDP, please visit ojjdp.ojp.gov/about. For additional information about the OJJDP’s Fiscal Year 2021 Strengthening ICAC Technological Investigative Capacity funding, please visit ojjdp.ojp.gov/funding/opportunities/o-ojjdp-2021-121002.
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Sunday 12 December 2021
Tallahassee Man Sentenced to 20 Years in Federal Prison for Gun and Drug-Trafficking ChargesRead the Press Release
TALLAHASSEE, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the sentencing of Rocky M. Thomas, 44, of Tallahassee, Florida. Thomas was sentenced to twenty years in federal prison followed by six years of supervised release. Thomas’s sentence was the result of his guilty plea to possession of a firearm and ammunition by a convicted felon, possession with intent to distribute cocaine and alpha-PVP, and possession of a firearm in furtherance of a drug trafficking crime.
“This case is another example of the success that can be achieved through collaboration between our local and federal law enforcement agencies,” stated Acting U.S. Attorney Coody. “As a result of the excellent relationship between the Tallahassee Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, this armed drug trafficker has been held accountable for his criminal conduct, and the community is safer as a result.”
According to court documents, Thomas was stopped on May 2, 2021, by an officer of the Tallahassee Police Department for running a red light. Thomas was subsequently detained because a small amount of marijuana was in plain view in his vehicle. A fanny pack which Thomas was wearing was searched and found to contain a loaded semiautomatic Glock firearm and approximately 75 small jeweler’s baggies filled with white powder. Some of the baggies of white powder contained cocaine and some contained alpha-PVP, a synthetic cathinone also known as “flakka.” Officers also found two digital scales and various empty baggies in the vehicle.
“ATF is at the forefront in fighting violent crimes and apprehending the criminals involved. This case is another example of our resolve to continue these efforts as we work jointly with our local, state and federal partners to ensure the safety of our communities.” said ATF Special Agent in Charge, Craig W. Saier.
Thomas had previously been convicted of multiple felonies and qualified for enhanced sentencing as an Armed Career Criminal and a Career Offender because of prior convictions for armed robbery with a deadly weapon, robbery, and possession of a controlled substance with intent to sell or deliver.
Assistant United States Attorney James A. McCain prosecuted the case, which was the result of a joint investigation between the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Tallahassee Police Department.
Court records reflect that the firearm Thomas was caught with had previously been reported stolen. The United States Attorney’s Office is encouraging everyone to lock their car doors, particularly at night. Burglaries from unlocked automobiles are a significant source of guns for criminals in the Northern District of Florida. Please do your part and protect yourself by locking your car doors.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime. In Tallahassee, the Sheriff’s ALLinLEON initiative has focused on enforcement, and engaged community volunteers to regularly take at-risk youth to places of worship, activated Neighborhood Crime Watch programs, and conducted other activities to target neighborhoods that are perennial hotspots for violence. The effort also aims to help connect individuals who are reentering the community from incarceration with education, job skills and substance abuse treatment.
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, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Saturday 11 December 2021
Pueblo Cattle Investment Operator Sentenced to Federal Prison for Wire Fraud and Money LaunderingRead the Press Release
DENVER – The United States Attorney’s Office for the District of Colorado announces that Richard K. Sears, 73, of Pueblo was sentenced to serve 41 months in prison for his role in a cattle investment fraud scheme. After his term of incarceration, Sears will serve 3 years of supervised release. In addition, Sears must pay restitution of $4,969,384.35.
According to information contained in court documents, beginning in June 2008, and continuing into May 2015, Sears defrauded investors through a cattle investment program to develop a breed of cattle – Rocky Mountain Romangus – that did not then exist. For a set “entry fee,” Sears claimed he would purchase a specific number of cows for the investor’s benefit. Sears claimed he would then “leaseback” the cattle for a set period of time and be responsible for paying all costs related to the cattle. Sears further agreed to pay the investors an annual “cash return” or “leaseback payment” of 10 percent and to repurchase the cows for no less than the original purchase price at the end of the lease period.
Initially, Sears made some leaseback payments, thereby lulling investors into believing the investment was successful and operating consistent with their agreements. In 2011, Sears stopped purchasing cattle, yet continued to solicit new investors. At the same time, he misrepresented the true number of cows in his possession. By September 2013, Sears knew he was unable to meet his obligations but he continued to solicit investors, obtaining over $800,000 from the later investors. Sears used a portion of investor funds to pay personal debts unrelated to the cattle program.
“Creative fraudsters may go to great lengths to hide their crimes, but we are going to uncover them,” said United States Attorney Cole Finegan. “Dedicated experts in this office and our law enforcement partners use painstaking means to stop complicated fraudulent schemes and bring fraudsters to justice.”
“This complex case required thousands of hours of investigation by U.S. Postal Inspectors and other investigative staff,” said Ruth Mendonça, Inspector in Charge of the Denver Division of the U.S. Postal Inspection Service. “This sentence makes every minute spent unraveling this scam worthwhile. We are proud of the combined efforts of our partners at the Internal Revenue Service – Criminal Investigation and the United States Attorney’s Office who assisted Postal Inspectors in bringing justice to Mr. Sears’ victims,” said Mendonça.
“This complex investment fraud case highlights the unique investigative skills that IRS Criminal Investigation brings to federal prosecutions,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “This sentence and restitution order are a step towards righting the wrongs perpetrated upon the victims of Sears’ fraudulent scheme.“
U.S. District Court Judge Robert E. Blackburn pronounced the sentence on December 9, 2021.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the United States Postal Inspection Service.
This case was prosecuted by Assistant United States Attorney Tim Neff.
CASE NUMBER: 19-cr-00408
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Friday 10 December 2021
York County Nurse Charged with Stealing Prescription Drugs from A Hospice PatientRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that licensed practical nurse (LPN) Dana Aldinger, age 55, of York, PA, was charged by criminal information with theft in connection with health care.
According to United States Attorney John C. Gurganus, the criminal information alleges that on or about August 10, 2019, Aldinger stole and converted for personal use Oxycodone pills prescribed for a Medicare hospice patient residing at a personal care home where she was employed.
The case was investigated by the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services, Harrisburg Field Office, and the Bureau of Narcotics Investigations (BNI) of the Pennsylvania Office of Attorney General. Assistant U.S. Attorney Samuel S. Dalke is prosecuting the case.
Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the offense charged is one year of imprisonment, a term of supervised release following imprisonment, and a $100,000 fine. 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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Woodbridge Resident Who Embezzled from Family Company Pleads Guilty to Tax EvasionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that MATTHEW V. BLACKWELL, 40, of Woodbridge, waived his right to be indicted and pleaded guilty yesterday before U.S. District Judge Sarah A.L. Merriam in New Haven to one count of tax evasion.
According to court documents and statements made in court, Blackwell was the Vice President of Operations at a family-owned food company based in Orange. Between approximately 2012 and 2016, Blackwell embezzled $927,143 from the company by creating false purchase orders and invoices that he presented to the company controller, who had no knowledge of their fraudulent nature. The company issued payment checks that Blackwell deposited in a business checking account that he had opened and controlled.
In pleading guilty, Blackwell admitted that he willfully filed federal income tax returns that omitted the embezzled income for the 2012 through 2016 tax years, resulting in a tax loss of $285,361 to the IRS.
Judge Merriam scheduled sentencing for March 2, 2022, at which time Blackwell faces a maximum term of imprisonment of five years and a fine of up to $100,000. Blackwell has agreed to pay $285,361 in back taxes, as well as interest and penalties.
Blackwell is released on a $50,000 bond pending sentencing.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Hal Chen.
Will County Woman Who Engaged in Sexual Conduct with Underage Boy Sentenced to More Than Five Years in Federal PrisonRead the Press Release
CHICAGO — A Will County woman has been sentenced to more than five years in federal prison for engaging in sexual conduct with an underage boy and directing him to send her sexually explicit images of himself.
DAYNA CHIDESTER engaged in sexual conduct with the boy on numerous occasions in November and December 2018. Chidester knew at the time that the boy was 14 years old. Chidester also directed the boy to take photos of himself while he was engaged in sexually explicit conduct, and to send the photos to Chidester’s cell phone.
Chidester, 53, of Manhattan, Ill., pleaded guilty earlier this year to a charge of receiving child pornography. U.S. District Judge Jorge L Alonso on Wednesday sentenced Chidester to five years and four months in federal prison.
The sentence 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. Valuable assistance was provided by the Will County State’s Attorney’s Office, Illinois State Police, and the Manhattan, Ill., Police Department.
“Defendant’s offense was not a one-time lapse in judgment, but an ongoing pattern of criminal activity,” Assistant U.S. Attorney Ashley A. Chung argued in the government’s sentencing memorandum. “Knowing full well that what she was doing was both reprehensible and criminal, defendant repeatedly victimized a child who trusted defendant.”
If you believe you are a victim of sexual exploitation, you are encouraged to contact the National Center for Missing and Exploited Children by logging on to www.missingkids.com or by calling 1-800-843-5678. The service is available 24 hours a day, seven days a week.
Union Women Indicted in Conspiracy to Commit Wire Fraud and Aggravated Identity TheftRead the Press Release
Jackson, Miss. – Three Union women appeared in federal court today on charges of wire fraud and aggravated identity theft, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
A federal grand jury in Jackson returned an indictment on September 8, 2021, charging Crystal Holliday, 33, Annie J. Blalock, 62, and Ashton Crouthers, 33, with carrying out a scheme using wire fraud and identity theft to access bank accounts of several patrons of the Pearl River Resort in Choctaw, Mississippi.
The defendants are charged in a nine count indictment with conspiracy to commit wire fraud and aggravated identity theft. They made their initial court appearances today before U.S. Magistrate Judge F. Keith Ball.
The case is set for trial on January 24, 2022 in U.S. District Court in Jackson. If convicted, each defendant faces a maximum penalty of twenty years in prison on counts 1-5 of the indictment, and a possible additional consecutive mandatory minimum penalty of two years in prison on counts 6-9.
The Choctaw Police Department and the Federal Bureau of Investigation are investigating the case. The Neshoba County Sheriff’s Department and the Union Police Department assisted with the arrests.
Assistant U.S. Attorney Kevin J. Payne is 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.
U.S. Minerals, Inc. sentenced for Clean Air Act violation that exposed employees to arsenic at former Anaconda plantRead the Press Release
BUTTE — U.S. Minerals, Inc., a corporation that admitted to exposing employees at its former Anaconda plant to elevated levels of arsenic, was sentenced today to a maximum probationary term, fined and ordered to enact a medical monitoring plan for workers at the Montana plant and a nationwide environmental health and safety plan at its five other plants, U.S. Attorney Leif M. Johnson said.
U.S. Minerals pleaded guilty in August to one count of negligent endangerment, a misdemeanor, under the Clean Air Act as charged in a criminal information.
U.S. District Judge Dana L. Christensen sentenced U.S. Minerals as recommended in a plea agreement to a maximum of five years of probation and to pay a $393,200 fine. The criminal fine is in addition to civil penalties totaling $106,800 imposed by the Occupational Safety and Health Administration in a related civil proceeding, bringing the total amount to be paid by U.S. Minerals to $500,000.
Probationary conditions require U.S. Minerals to implement a medical monitoring program for employees who were exposed to elevated levels of arsenic during their work at the Anaconda plant and a nationwide environmental health and safety plan at all five of its plants throughout the United States. The Anaconda plant ceased operations in June. The company operates plants in Illinois, Wisconsin, Kansas, Texas and Louisiana.
“Despite repeated warnings and enforcement actions from regulators, U.S. Minerals continued to poison its workers and put profits before the well-being of its employees. U.S. Minerals’ history of misconduct showed a lack of care for employee safety and an utter disregard for regulations intended to protect human health and the environment. This case ends U.S. Minerals’ criminal conduct in Montana and will hold it accountable at its other plants,” U.S. Attorney Johnson said. “I want to thank Assistant U.S. Attorney Ryan G. Weldon, Special Assistant U.S. Attorney Eric E. Nelson, the Environmental Protection Agency’s Criminal Investigation Division, the U.S. Department of Labor, Occupational Safety and Health Administration, the National Institute for Occupational Safety and Health, and the Montana Department of Public Health and Human Services for investigating this case and bringing these wrongdoers to justice.”
“U.S. Minerals exposed its employees to toxic levels of arsenic, a hazardous air pollutant known to pose significant health risks,” said Special Agent in Charge Lance Ehrig of EPA’s Criminal Investigation Division in Montana. “Today’s sentencing demonstrates that EPA and its partners will hold corporations accountable when they ignore environmental regulations and jeopardize the health of workers.”
“The continued dedication of the Environmental Protection Agency and the United States Department of Justice, working in collaboration with the Occupational Safety and Health Administration, achieved justice and improved health and safety working conditions for the employees of U.S. Minerals nationwide. By working together, we leveraged a multi-agency front and held U.S. Minerals accountable for violating multiple federal laws and overexposing employees to inorganic arsenic,” said Jennifer Rous, Regional Administrator for OSHA’s Denver Region.
The government alleged in court documents that U.S. Minerals manufactured silicate abrasive, a substance sold to industrial and governmental customers. Raw materials used in the production process were obtained from a waste copper slag pile, located within the Anaconda Superfund site. Processing the slag generates dust, which releases inorganic arsenic into the air. The government further alleged that from July 2015 until February 2019, U.S. Minerals negligently released inorganic arsenic, a hazardous air pollutant, into the air and exposed employees. Exposure to arsenic is known to cause lung and skin diseases, including an increased risk of skin cancer, and may also cause cardiovascular effects and other cancers.
The government further alleged that in 2015, the National Institute for Occupational Safety and Health (NIOSH) and OSHA each inspected the site and found numerous violations of health and safety standards that resulted in $106,800 in OSHA penalties.
In 2018, the Montana Department of Public Health and Human Services learned of health-related issues affecting U.S. Minerals employees, visited the site and informed the company that its employees were exposed to “apparent inhalation hazards” from dust. A second inspection found the violations were unresolved. Montana shut down U.S. Minerals in February 2019. When the state allowed operations to resume in March 2019, employees continued to test high for arsenic and lead.
Assistant U.S. Attorney Ryan G. Weldon and Special Assistant U.S. Attorney Eric E. Nelson prosecuted the criminal case, which was investigated by the Environmental Protection Agency’s Criminal Investigation Division, OSHA, NIOSH, and the Montana Department of Public Health and Human Services. The U.S. Department of Labor’s Office of the Solicitor litigated the OSHA matter.
XXXTwo Women Charged in 2019 Murder and Assault on the Red Lake Indian ReservationRead the Press Release
MINNEAPOLIS – Two women have been arrested and charged with one count of second-degree murder, one count of assault with a dangerous weapon, and one count of assault resulting in serious bodily injury, announced Acting U.S. Attorney Charles Kovats.
According to court documents, on August 12, 2019, Alexia Gah Gi Gay Mary Cutbank, 20, and Mia Faye Sumner, 20, while aided and abetted by others, murdered victim “D.A.J.” Additionally, Cutbank and Sumner shot and injured victim “T.B.S.”
Cutbank and Sumner both made their initial appearances today before Magistrate Judge Katherine M. Menendez. Cutbank and Sumner were ordered detained pending a formal detention hearing scheduled for 10:00 am on December 15, 2021.
This case is the result of an investigation conducted by the Red Lake Tribal Police Department, the Federal Bureau of Investigation (FBI), the FBI Headwaters Safe Trails Task Force, the Duluth Police Department, the Minnesota Bureau of Criminal Apprehension (BCA), and the Minnesota Department of Corrections, in collaboration with the United States Attorney’s Office Missing and Murdered Indigenous Persons Initiative.
Assistant U.S. Attorney Deidre Y. Aanstad is prosecuting the case.
An indictment is merely an allegation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Two Western Washington artists charged with misrepresenting themselves as Native American carversRead the Press Release
Seattle – In two separate criminal cases, Western Washington artists are charged with violating the Indian Arts and Crafts Act (IACA) by representing themselves as Native American artists, when they have no tribal membership or heritage, announced U.S. Attorney Nick Brown. The men, 52-year-old Lewis Anthony Rath, of Maple Falls, Washington, and 67-year-old Jerry Chris Van Dyke aka Jerry Witten, of Seattle, will make their initial appearance on the complaints in U.S. District Court in Seattle at 2:00 PM today.
“Our special agents investigate crimes that violate the Indian Arts and Crafts Act on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “By flooding the market with counterfeit Native American art and craftwork, these crimes cheat the consumer, undermine the economic livelihood of Native American artists, and impairs Indian culture. We thank the Indian Arts and Crafts Board and the U.S. Department of Justice for their assistance with these investigations.”
The investigation of Jerry Van Dyke began in February 2019, when the Indian Arts and Crafts Board received a complaint that Van Dyke was representing himself as a Nez Perce Indian Artist, when in fact, he is not an enrolled tribal member. Investigators from the U.S. Fish and Wildlife Service made undercover purchases at a gallery in the Pike Place Market area of Seattle that advertised pendants Van Dyke had made as Native American Art. Van Dyke used the name Witten for these sales. When interviewed by agents, Van Dyke admitted knowing about the Indian Arts and Crafts Act, and admitted he was not a tribal member. Through the gallery Van Dyke had sold more than $1,000 worth of carved pendants represented as Native American artwork based on Aleut masks.
Van Dyke is charged with two counts of Misrepresentation of Indian Produced Goods and Products,
The investigation of Anthony Rath began in May 2019, after a complaint to the Indian Arts and Crafts Board. The investigation revealed that Rath falsely represented himself to be a member of the San Carlos Apache Tribe. Undercover agents purchased a carved totem pole and necklace from the same Pike Place Market gallery for more than $1,334. Agents noticed the gallery had other carvings by Rath that were represented as Native produced. At another shop on the Seattle waterfront agents purchased another carved totem pole and a mask, again represented to be Indian produced. The biography of the artist at both shops falsely claimed that Rath was Native American. Internet sites Rath used to sell his artwork also falsely claim he is an enrolled member of the San Carlos Apache Tribe.
When agents executed a search warrant on Rath’s Whatcom County home and studio, they found he also possessed feathers from protected birds: golden eagles and other migratory birds such as hawks, jays, owls and more.
Rath is charged with four counts of Misrepresentation of Indian Produced Goods and Products, one misdemeanor count of Unlawful Possession of Golden Eagles Parts and one misdemeanor count of Unlawful Possession of Migratory Bird Parts.
Misrepresentation of Indian Produced Goods and Products is punishable by up to 5 years in prison. The misdemeanor counts related to bird parts are punishable by up to 1 year in prison.
The charges contained in the complaints are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The cases are being investigated by the National Fish and Wildlife Service. The cases are being prosecuted by Assistant United States Attorney J. Tate London.
Two USP Lewisburg Inmates Charged with Possessing Contraband in Federal PrisonRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Jordan Reid, age 29, and Ralph Hooper, age 43, inmates at United States Penitentiary (USP Lewisburg), Lewisburg, Pennsylvania, were charged separately by criminal information with unlawfully possessing contraband in federal prison.
According to United States Attorney John C. Gurganus, the criminal informations allege that on September 29, 2021, Hooper possessed a black Android cellphone and on October 5, 2021, Reid possessed a black LG cellphone while serving their federal sentences at USP Lewisburg. Federal law prohibits inmates from possessing cellphones due to the institutional security risks posed by their use.
The matter is being investigated by the Federal Bureau of Prisons and the Federal Bureau of Investigation. Special Assistant U.S. Attorney Drew O. Inman and Assistant U.S. Attorney Geoffrey W. MacArthur are prosecuting the cases.
Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is one year of 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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Two Montgomery Men Sentenced for Illegal Possession of a FirearmRead the Press Release
Montgomery, Alabama – Two convicted felons from Montgomery were sentenced to federal prison for possession of firearms, announced Acting United States Attorney Sandra J. Stewart.
On December 9, 2021, Darious Jamal Jackson, 25, was sentenced to 21 months in prison, and on November 19, 2021, Aaron Taki Gage, 21, was sentenced to 46 months in prison. Once their prison sentences are completed, both Jackson and Gage will serve three years of supervised release. There is no parole in the federal system.
According to court records and evidence presented in court, Gage broke into a vehicle outside a home in Prattville during the early morning hours of May 15, 2019. The homeowner confronted him, and Gage shot at the homeowner three times before fleeing in a Ford Focus. The Prattville Police Department identified the Ford Focus and its tag number using surveillance footage and asked local law enforcement to be on the lookout for the vehicle.
On May 17, 2019, officers with the Montgomery Police Department saw a Ford Focus with matching tag numbers linked to the Prattville shooting and performed an investigative stop in Montgomery. Jackson was the driver and Gage was the front seat passenger. During the stop, Jackson admitted to having a handgun under the driver’s seat, and Gage stated he had a firearm on his person. Both Jackson and Gage are convicted felons and are prohibited from possessing firearms. There was no evidence presented that connected Jackson to the Prattville shooting. However, related state charges were brought against Gage; he pleaded guilty in Autauga County Court and was previously sentenced for those charges.
This case was investigated by the Prattville Police Department, the Montgomery Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Megan A. Kirkpatrick prosecuted the case.