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Wednesday 1 December 2021
Justice Department Secures Agreement with Hy-Vee Supermarket Chain to Make Online COVID-19 Vaccine Registration Accessible for People with DisabilitiesRead the Press Release
The Justice Department today announced that it has secured a settlement agreement with Hy-Vee Inc. that will help people with disabilities get information about COVID-19 vaccinations and book their vaccination appointments online. The Hy-Vee supermarket chain has more than 280 stores in Iowa, Illinois, Missouri, Kansas, Nebraska, South Dakota, Minnesota and Wisconsin. Today’s resolution is the department’s second agreement on this critical issue, following a November 2021 announcement of its settlement with Rite Aid Corporation.
Hy-Vee’s COVID-19 Vaccine Registration Portal, currently located at www.hy-vee.com/my-pharmacy/covid-vaccine, was not accessible to some people with disabilities, including those who use screen reader software and those who have a hard time using a mouse. For instance, people who used screen readers would not hear the questions on the medical screening forms, and people who used the tab key instead of a mouse could not select available appointment times.
“Individuals with disabilities must be able to get potentially lifesaving healthcare like COVID-19 vaccines on equal terms, without sacrificing their privacy or independence,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Ensuring that people with disabilities can schedule COVID-19 vaccination appointments the same way that people without disabilities can is not only a public health necessity, but a key civil rights issue under the Americans with Disabilities Act.”
Under today’s settlement, Hy-Vee will make content about the COVID-19 vaccine, including the forms for scheduling an appointment to get the vaccine, conform to the Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA. WCAG is a set of voluntary industry guidelines for making information on a website accessible to users with disabilities. Hy-Vee also must regularly test the pages of its website about vaccine scheduling and information and quickly fix any problems that keep people with disabilities from being able to use these pages.
This matter was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Iowa. Title III of the Americans with Disabilities Act (ADA) requires public accommodations like drugstores and grocery stores to provide individuals with disabilities with full and equal enjoyment of goods and services, such as vaccines. The ADA also requires public accommodations to ensure effective communication with people with disabilities, including by using auxiliary aids and services like accessible technology.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
Justice Department Reaches Settlement with Maryland School District to Protect Students with DisabilitiesRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Maryland announced today a settlement agreement with the Frederick County Public School District in Maryland to address the discriminatory use of seclusion and restraint against students with disabilities.
The department’s investigation found that the school district unnecessarily and repeatedly secluded and restrained students as young as five years old in violation of Title II of the Americans with Disabilities Act (ADA). Under the settlement, Frederick County will end the use of seclusion, overhaul its restraint practices, and train staff on use of appropriate behavioral interventions for students with disabilities.
The investigation, opened in October 2020, revealed thousands of incidents of seclusion and restraint in just two and a half school years. Although students with disabilities make up only 10.8% of students enrolled in the district, every single student the district secluded was a student with disabilities, as were 99% — all but one — of the students the district restrained. The district routinely resorted to seclusion and restraint in non-emergency situations instead of using appropriate behavior interventions tailored to individual students’ needs. The investigation found that these practices often intensified students’ distress, with some students engaging in self-harm and showing other signs of trauma while in seclusion.
“We cannot stand by and watch schools put children with disabilities in isolation thousands of times and call it public education,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The district’s unlawful use of seclusion and restraint did not help students; it led to heightened distress and denied them access to a safe and positive learning environment. Frederick County Public Schools understand the significant work ahead under this agreement and we will ensure that they institute all the institutional reforms necessary to comply with the law.”
“Every child should feel safe and protected while in school,” said U.S. Attorney Erek L. Barron of the District Maryland. “The use of seclusion rooms and unjustified physical restraints on young people, particularly those with disabilities, falls painfully short of a school district’s responsibility to support the safety, health, and educational needs of its students. Students with disabilities deserve a school environment rooted in positive, preventive, and supportive classroom strategies. We appreciate Frederick County Public School District’s cooperation in this investigation and are pleased that the district has agreed to take comprehensive steps to ensure that students with disabilities receive equal educational opportunities.”
The school district cooperated fully throughout the investigation. Under the settlement agreement, the school district will take proactive steps to ensure that its practices do not discriminate against students with disabilities. The district will, among other things:
- prohibit the use of seclusion;
- report all instances of restraint and evaluate whether they were justified;
- designate trained staff to collect and analyze restraint data and oversee the creation of appropriate behavior intervention plans;
- deliver appropriate training and resources to help schools implement the agreement;
- design and implement procedures for handling complaints about restraint;
- offer counseling and compensatory education services to students with disabilities who were subjected to the district’s discriminatory practices; and
- hire an administrator to supervise school-based staff and ensure the district’s compliance with the agreement and Title II of the ADA.
The investigation was conducted jointly by the Civil Rights Division’s Educational Opportunities Section and the U.S. Attorney’s Office for the District of Maryland, as part of a division initiative to address unlawful segregation, seclusion, and restraint of students with disabilities in public schools. Enforcement of Title II of the ADA is a priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
View the letter here. View the agreement here.
Jury Convicts Gypsy Joker Outlaw Motorcycle Club Members on Racketeering ChargesRead the Press Release
PORTLAND, Ore.—On November 30, 2021, a federal jury in Portland found two members of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) guilty of kidnapping and murder in aid of racketeering for the 2015 kidnapping and murder of Robert Huggins, a Portland resident and former club member.
GJOMC Portland clubhouse president Mark Leroy Dencklau, 61, of Woodburn, Oregon and Portland clubhouse member Chad Leroy Erickson, 51, of Rainier, Oregon, were found guilty of murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death. Additionally, Dencklau was found guilty of racketeering conspiracy.
The jury acquitted Erickson and GJOMC national president Kenneth Earl Hause, 64, of Aumsville, Oregon, of racketeering conspiracy.
“Organized crime will not be tolerated in the District of Oregon. Dencklau, Erickson and other members of the Gypsy Joker Outlaw Motorcycle Club prided themselves in using violence to intimidate others and bolster their sense of power and influence. The kidnapping, torture, and murder of Robert Huggins was a gruesome example of the lengths these men were willing to go to exert their authority over rivals and perceived enemies,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “A robust, coordinated law enforcement operation led to their arrest and prosecution. Our community is safer thanks to the dedication of all involved law enforcement agencies.”
“The heinous actions of this criminal organization clearly warranted this guilty verdict,” said Jonathan T. McPherson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Seattle Field Division. “ATF remains committed to combatting organizations like the Gypsy Jokers Outlaw Motorcycle Club that endanger our communities.”
According to court documents and trial testimony, the GJOMC is a hierarchical criminal organization wherein members and associates maintain their position and status in the organization by participating in, directly or indirectly, various acts of violent racketeering activity including murder, kidnapping, robbery, extortion, narcotics trafficking, and witness tampering. Since the 1980s, the club has been active in several states including Oregon and Washington and, until recently, operated six clubhouses in the Pacific Northwest. The club also has international chapters in Germany, Australia, and Norway.
From 2003 until his arrest, Dencklau served as the president of the club’s Portland chapter. The GJOMC also oversaw several support clubs in Oregon and Washington including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. Support club members conducted criminal activities in support of the GJOMC and served as a source of new members and revenue for the club.
On July 1, 2015, the body of Robert Huggins, an estranged member of the GJOMC Portland chapter, was found lying in a field in Clark County, Washington. Huggins’ body was badly beaten, and he appeared to have been tortured prior to his death. Huggins was previously stripped of his club membership for allegedly stealing from the club and, after breaking into Dencklau’s Woodburn residence, tying up Dencklau’s girlfriend and stealing multiple firearms. In the days and weeks following this robbery, Dencklau directed GJOMC members to find Huggins.
Several government witnesses testified at trial to Dencklau, Erickson, and their co-defendants’ roles in the revenge kidnapping, torture, and murder of Huggins. On the evening of June 30, 2015, Dencklau and others kidnapped Huggins from a residence in Portland and transported him to a rural property in Southwest Washington. Over the course of several hours, Huggins was severely beaten and tortured. He sustained numerous injuries to his head and face, including a fractured skull; lacerations to his chest and torso; and removed nipples. A local medical examiner ruled that Huggins’ death was caused by multiple blunt and sharp force injuries.
On June 28, 2018, a federal grand jury in Portland returned a four-count indictment charging Dencklau; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 40, of Portland, with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death.
Later, on November 29, 2018, Dencklau; Fisher; Erickson; Hause; Ryan Anthony Negrinelli, 36, of Gresham, Oregon; and Joseph Duane Folkerts, 61, of Battleground, Washington, were charged by superseding indictment with racketeering conspiracy.
Fisher, Negrinelli, Folkerts, and Pribbernow have all previously pleaded guilty to the conspiracy charge and are awaiting sentencing.
All defendants convicted face a maximum sentence of life in federal prison. Dencklau and Erickson also face mandatory minimum sentences of life in prison.
Acting U.S. Attorney Asphaug and Special Agent in Charge McPherson made the announcement.
This case was investigated by the Portland Police Bureau and ATF, with assistance from the U.S. Marshals Service, IRS-Criminal Investigation, the Clark County Sheriff’s Office, Oregon State Police, and the Oregon and Washington State Crime Labs. Leah K. Bolstad and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon, prosecuted the case with Damaré Theriot, Trial Attorney for the Criminal Division’s Organized Crime and Gang Section.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the District of Oregon’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement, community organizations, and local community leaders to prevent and deter future criminal conduct.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Judge sentences man to 18 years for armed carjackings and firearms offensesRead the Press Release
ST. LOUIS – Today United States District Court Judge Stephen N. Limbaugh, Jr. sentenced David Curtis President to 18 years in prison for the crimes of carjacking and firearms offenses for separate carjackings committed on June 28, 2019 and July 29, 2019. President pleaded guilty to the charges on August 24, 2021.
According to the plea agreement, President, a 29- year-old resident of St. Louis County, committed two separate carjackings in St. Louis County. On June 28, 2019, in the 11100 Block of Riaza Square, President took a 2007 Buick Lucerne from the victim at gun point. President was later identified as the carjacker and determined to be in possession of the victim’s pistol, which was in the Lucerne at the time of the carjacking. On July 29, 2019, at the Petro Mart at 698 Gravois Bluffs Boulevard, President shot two persons and took from them a 2017 Nissan Altima.
The St. Louis County Police Department investigated the carjacking and firearms offenses.
Inmate Sentenced for Having Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. - An inmate at the Federal Correctional Institution (FCI) McDowell was sentenced today for possessing a weapon at the correctional facility. Rondale Faulkner, 34, from Virginia, was sentenced to one year and three months in prison to run consecutively to the sentence he currently is serving.
According to court documents, on September 26, 2020, Faulkner possessed a handcrafted weapon commonly known as a “shank.” During a visual search of Faulkner, staff members from FCI McDowell found the shank, which was a piece of metal approximately six inches in length, sharpened to a point at one end, with thread tied around cloth on the other end to form a handle. As part of his plea, Faulkner admitted that the shank was designed and intended to be used as a weapon.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-00110.
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Inmate Leader of Racketeering Conspiracy at Maryland Correctional Institute Jessup Sentenced to Six Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced inmate Corey Alston, a/k/a “C,” age 29, yesterday to six years in federal prison, followed by three years of supervised release, for a racketeering conspiracy charge for being a leader in a scheme to smuggle contraband into the Maryland Correctional Institute Jessup (MCIJ), including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
Alston admitted that he was a leader in the racketeering conspiracy. As detailed in the plea agreement, Alston conspired with four outside facilitators, Tyrisha Johnson, Jamia Lawson, Ashley Alston, and Aldon Alston, who obtained and packaged contraband, met with the correction officers and employees to provide contraband and bribe payments, and managed the proceeds of illegal contraband sales for Alston. According to Alston’s plea agreement, Correctional Officer Janel Griffin and another MCIJ employee brought the contraband into the prison for Alston, in exchange for bribe payments, and Alston conspired with inmate Schvel Mack to sell the contraband to other inmates.
Alston was overheard by law enforcement on a series of recorded calls arranging for contraband to be smuggled into MCIJ and arranging payment for the contraband and for bribes. Recorded jail calls between Alston and others confirm that between April 16 and August 14, 2017, Griffin met with Johnson or another facilitator on at least six occasions to obtain contraband and at least $2,800 in bribe payments. Griffin smuggled the contraband, including Suboxone and Percocet, into MCIJ.
In addition to Corey Alston, 14 other defendants—six outside facilitators, four prison employees, and four inmates—have pleaded guilty to their roles in the conspiracy, including Janel Griffin, Schvel Mack, Tyrishia Johnson, Jamia Lawson, Ashley Alston, and Aldon Alston. Seven defendants are awaiting sentencing and five defendants are pending trial. Correctional Officer Janel Griffin, age 42, of Baltimore and inmate Schvel Mack, a/k/a Weezy, and L Weezy, age 31; were sentenced to 27 months each in federal prison and inmate Tavon Price, a/k/a Tay, age 37 was sentenced to 46 months in federal prison.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 78 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Erek L. Barron commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Barron thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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High-Volume Heroin Supplier to Middle Georgia Sentenced to PrisonRead the Press Release
MACON, Ga. – The primary supplier of a heroin distribution ring operating between Atlanta and Macon, which funneled up to 30,000 doses of heroin into the region in three months, was sentenced to more than 11 years in federal prison for his crime.
Michael Duffy, 43, of Sandy Springs, Georgia, was sentenced to serve 135 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Tuesday, Nov. 30, after he previously pleaded guilty to conspiracy to possess with intent to distribute heroin. There is no parole in the federal system.
“Michael Duffy richly profited from supplying large quantities of heroin as untold lives in Middle Georgia were ruined by the opioid addiction he was feeding,” said U.S. Attorney Peter D. Leary. “High-volume opioid suppliers and repeat offenders will face the possibility of federal prosecution for their crimes as we work alongside law enforcement to maintain the safety and health of the communities we serve.”
“The significant sentence Duffy received reflects the seriousness associated with distributing heroin throughout our communities in Georgia,” said Alex Santiago, Acting Special Agent in Charge of FBI Atlanta. “The FBI will spare no resource when it comes to identifying and prosecuting individuals that fuel the opioid epidemic by distributing poison and causing great damage to our citizens.”
The following co-defendants have been sentenced for their crimes:
Chad Bresach, 38, of Eatonton, Georgia, pleaded guilty to distribution of heroin. Bresach was sentenced to serve 84 months in prison to run consecutively to any term of imprisonment imposed in Peach County, Jones County, Putnam County and Houston County Superior Courts to be followed by three years of supervised release on March 3;
Reginald Summerford, 49, of Macon, pleaded guilty to conspiracy to possess with intent to distribute heroin. Summerford was sentenced to serve 80 months in prison to be followed by three years of supervised release on March 3;
Terrence Jackson, 43, of Macon, pleaded guilty to one count conspiracy to possess with intent to distribute heroin. Jackson was sentenced to 52 months in prison to be followed by three years of supervised release on June 10;
Arthur Anderson, 57, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Anderson was sentenced to 48 months in prison to be followed by one year of supervised release on June 15;
Courtney Dews, 36, of Macon, pleaded guilty to use of a communication facility to facilitate a drug trafficking offense. Dews was sentenced to serve 48 months in prison to be followed by one year of supervised release on March 3;
Patrick Dews, 34, of Macon, pleaded guilty to use of a communication facility to facilitate a drug trafficking offense. Dews was sentenced to serve 20 months in prison to be followed by one year of supervised release on March 3; and,
Kathy Black, 40, of Macon, pleaded guilty to use of a communication facility to facilitate a drug trafficking offense. Black was sentenced to serve 18 months in prison to be followed by one year of supervised release on March 3.
According to court documents, federal and local law enforcement began investigating heroin distribution by co-defendant Summerford in Dec. 2017, following the arrest of a heroin dealer in Macon. The wiretap investigation ultimately led to the discovery of Duffy being the source of heroin supply. On a number of occasions, co-defendants Summerford, Black and Patrick Dews would travel to metro-Atlanta to purchase heroin from Duffy, generally 142 grams on each trip – enough heroin to provide more than 1,000 doses. During Dec. 2018 and Jan. 2019, Duffy sold heroin from a “trap house” located in an Atlanta apartment. In early Feb. 2019, Duffy moved into a house in Sandy Springs, and used that residence to sell heroin.
From Dec. 2018 to Feb. 2019, Summerford generally went to Duffy to resupply heroin approximately every four to five days and usually purchased approximately 142 grams on each trip. Those trips were confirmed using interceptions and/or surveillance. On the way back from purchasing heroin from Duffy on Feb. 20, 2019, Summerford’s van was stopped and the heroin was seized. The heroin that was seized at that time was tested at the Drug Enforcement Agency (DEA) Mid-Atlantic Laboratory and was positively identified as heroin weighing 98.47 grams. On Feb. 22, 2019, pursuant to a valid federal search warrant, law enforcement searched Duffy’s Sandy Springs home. During the search, a Kel-Tec 9mm pistol, 9mm and .40 caliber ammunition, a bag containing small drug baggies and a quantity of suspected narcotics were seized. Duffy admitted that he conspired with others to possess with intent to distribute between one and three kilograms of heroin, or enough heroin to provide more than 10,000-30,000 doses, from Dec. 2018 to Feb. 2019.
The case was investigated by the FBI.
Assistant U.S. Attorney Robert McCullers prosecuted the case.
Hartland Man Sentenced for Fentanyl Trafficking and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
BANGOR, Maine: A Hartland, Maine, man was sentenced today in federal court for conspiring to distribute and to possess with intent to distribute fentanyl and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Nicholas Culver, 41, to 14 years in prison and five years of supervised release. Culver pleaded guilty on December 10, 2018.
According to court records, between January 1, 2018 and July 17, 2018, Culver, on a weekly basis, obtained fentanyl from an out-of-state source of supply that he would then bring back to a residence in central Maine for distribution. On the day of his arrest, Culver was in possession of a 9-millimeter semi-automatic pistol, approximately 30 grams of fentanyl and proceeds of drug trafficking. Culver admitted to carrying the gun to deter people from robbing him during drug deals.
During the sentencing hearing, Judge Walker found that Culver was responsible for “a staggering amount of some of the most lethal poison in the illicit drug market.”
The U.S. Drug Enforcement Administration and the Somerset County Sheriff’s Office investigated the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Hartland Man Sentenced for Fentanyl Trafficking and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
BANGOR, Maine: A Hartland, Maine, man was sentenced today in federal court for conspiring to distribute and to possess with intent to distribute fentanyl and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Nicholas Culver, 41, to 14 years in prison and five years of supervised release. Culver pleaded guilty on December 10, 2018.
According to court records, between January 1, 2018 and July 17, 2018, Culver, on a weekly basis, obtained fentanyl from an out-of-state source of supply that he would then bring back to a residence in central Maine for distribution. On the day of his arrest, Culver was in possession of a 9-millimeter semi-automatic pistol, approximately 30 grams of fentanyl and proceeds of drug trafficking. Culver admitted to carrying the gun to deter people from robbing him during drug deals.
During the sentencing hearing, Judge Walker found that Culver was responsible for “a staggering amount of some of the most lethal poison in the illicit drug market.”
The U.S. Drug Enforcement Administration and the Somerset County Sheriff’s Office investigated the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Hartford Man Sentenced to Federal Prison for Role in Northeast "Grab and Go" Theft SchemeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ANDRES BARCLETT, also known as “Coolie,” 27, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 15 months of imprisonment, followed by two years of supervised release, for participating in an extensive commercial larceny spree.
This case stems from “Operation American Steal,” a long-term multi-agency investigation into numerous “grab and go” thefts from various retail fashion stores in Connecticut and nearby states. A “grab-and-go” scheme is a type of theft where one or more perpetrators enter a retail store, grab as many items of clothing or other goods as they can carry, leave the store without paying for the merchandise, and depart in a waiting getaway vehicle.
Barclett was part of a network of individuals who in 2019 and 2020 committed more than 50 grab and go thefts from Polo Ralph Lauren, T.J. Maxx, Balenciaga, Burberry, Macy’s, Marshalls, Dick’s Sporting Goods, Tommy Hilfiger, Sephora and other stores in Connecticut, Massachusetts, New Hampshire, Vermont, and New York. They then transported the stolen merchandise to Connecticut and sold the items on the internet or the street.
Barclett participated in at least 13 thefts resulting in losses of more than $50,000.
Judge Bryant ordered Barclett to pay $19,968.85 in restitution.
On September 15, 2020, a grand jury returned a six-count indictment charging Barclett and seven other individuals. Barclett has been detained since May 8, 2020, since his arrest on unrelated state charges. On August 25, 2021, he pleaded guilty in federal court to one count of conspiracy to transport and possess stolen property.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford, New Canaan, Wrentham (Mass.), Auburn (Mass.) and Nassau County (N.Y.) Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan and Brendan Keefe.
Harrold Man Sentenced for AssaultRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Harrold, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on November 29, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Ervin Yellow Robe, age 41, was sentenced to 32 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Yellow Robe was indicted by a federal grand jury on October 14, 2020. He pled guilty on July 29, 2021.
The conviction stemmed from an incident that occurred on March 1, 2020, in Big Bend, South Dakota, wherein Yellow Robe assaulted his intimate partner, breaking her nose.
This case was investigated by the Federal Bureau of Investigation, and Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Yellow Robe was immediately turned over to the custody of the U.S. Marshals Service.
Hardy County woman admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Barbara Ann Thomas, of Moorefield, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Thomas, 49, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Thomas admitted to having methamphetamine in August 2019 in Grant County.
Thomas faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Grant County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Halfmoon Man Sentenced for Firearms and Threats ChargesRead the Press Release
ALBANY, NEW YORK – Romano McCain, age 49, of Halfmoon, New York, was sentenced on Monday to 46 months in prison and three years of post-release supervision for his convictions at trial for possession of a firearm and ammunition by a prohibited person and two counts of interstate transmission of threats to injure.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Chief David Keevern of the North Greenbush Police Department.
The evidence at trial established that in January 2020, McCain and a man had a dispute over the man’s failure to pay $65 for a motorcycle vest. In demanding payment on January 10, 2020, McCain sent the man Facebook messages threatening, “Bro..just have my money....i play with guns..no fighting....and i always have one on me...you on that bs....pay me pay money,” followed by, “i will blow your [expletive] head off.” Later in the month, McCain had a falling out with another man over money McCain owed the man. On January 31, 2020, McCain sent the second man a Facebook message threatening, “I will kill your dauther..bro..i dont know me....we at the strip in morning..be there...me and my girl...with the heat..see you there.” The man had an infant daughter at the time and “heat” is slang for a gun.
The evidence showed that “the Strip” is an area on River Road in North Greenbush, New York, where motorsport enthusiasts rode ATVs, dirt bikes, and motorcycles. On February 23, 2020, McCain went to the Strip with his girlfriend, was in a fistfight, and then retrieved a rifle from his girlfriend’s truck, which he fired in the direction of a crowd of people. Five days later, in the early-morning hours of February 28, 2020, the ATF and other law enforcement agencies executed a search warrant at McCain’s girlfriend’s house in Latham, New York, where McCain had spent the previous night. In searching a box chest at the foot of the bed in the bedroom, agents discovered a loaded .38 special caliber revolver. A box of ammunition for the revolver was discovered under a couch in the living room. In a number of text messages, McCain threatened the use of firearms and referenced his possession of firearms with his girlfriend, including after the shooting on February 23, when he texted: “We got alot [sic] of guns.” At the time he possessed the revolver and ammunition, McCain was subject to a domestic violence restraining order issued by the Albany City Court in June 2019, making his possession of the revolver and ammunition illegal under federal law.
This case was investigated by the ATF, North Greenbush Police Department, and Colonie Police Department, and prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Rachel Williams.
Georgia inmate sentenced for running a multi-million-dollar fraud scheme from state prisonRead the Press Release
ROME, Ga. - Damon Thomas Young, a/k/a Morgan Sylvia, has been sentenced for his fraud scheme to steal heavy equipment worth nearly $3 million from various dealers, while serving a 20-year state sentence as an inmate with the Georgia Department of Corrections.
“Young schemed to steal millions of dollars’ worth of heavy equipment while serving a sentence for assaulting a police officer,” said U.S. Attorney Kurt R. Erskine. “Inmates should not think that the crimes they commit from prison will go unpunished just because they are already incarcerated. As in this case, inmates who commit crimes from behind bars face additional federal prison time to be served after their state sentences end.”
“Young committed an elaborate fraud scheme continuing his criminal activity even while behind bars, and for that he will be further punished by serving time in the federal prison system without the opportunity for parole,” said Alex Santiago, Acting Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our state and local partners for all their hard work and persistence that will keep this criminal behind bars for a significant amount of time.”
“People committing crimes, even from behind bars, should not expect to escape accountability. The GBI continues to collaborate with federal and local partners to make sure these types of investigations lead to successful prosecution ,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“The use of contraband cell phones by inmates as a tool to continue carrying out crimes from behind the walls of our facilities will not be tolerated,” said Georgia Department of Corrections Commissioner Timothy C. Ward. “We are grateful to our law enforcement partners on every level for ensuring justice is served on this individual for his role in jeopardizing both the safe and secure operations of our facilities and the safety of the public.”
“We are very pleased that this matter has been brought to a successful conclusion through the combined efforts of our partners in state and federal government, and ourselves. This was a massive and complex investigation that required the best efforts of all the officers, agents and prosecutors assigned to the case. My congratulations to each investigative agency and to the U.S. Attorney's Office for all of their hard work,” Gordon County Sheriff Mitch Ralston.
According to U.S. Attorney Erskine, the charges and other information presented in court: Since 2010, Damon Thomas Young has been an inmate with the Georgia Department of Corrections, incarcerated first at Georgia State Prison in Reidsville, Georgia, and then at Hays State Prison in Trion, Georgia. Young is serving a 20-year state sentence for aggravated assault on a police officer and a 10-year sentence for violation of the Georgia Racketeer Influenced and Corrupt Organizations (RICO) Act. Young also has prior convictions for theft by taking, impersonating a public officer, arson, forgery, burglary and arson, and theft by deception. His maximum possible release date from state prison is June 16, 2030.
While serving his state prison sentence, in 2019, Young used a contraband cell phone to defraud, or attempt to defraud, multiple heavy equipment dealers out of equipment worth millions of dollars. Using the alias Morgan Sylvia and pretending to be a purchasing officer with AbbVie, a real biopharmaceutical company, Young ordered heavy construction equipment that he had delivered in and around Ranger, Georgia, where he and his family lived. He then put the equipment up for sale to buyers on Craigslist.
To carry out his fraud, Young called heavy equipment dealers, posed as Morgan Sylvia, a fictitious purchasing officer, and stated that he wanted to order some heavy construction equipment. Using the Sylvia alias, Young misrepresented that AbbVie needed the equipment because it was building a facility in Ranger. He ordered heavy equipment, such as wheel loaders, skid steer loaders, an excavator, a horizontal grinder, and dump trucks. Young communicated with the equipment dealers by phone, text, and email from prison. He fraudulently completed credit applications, purchase orders, sales contracts, and insurance documents and emailed them to the dealers as part of the scheme. He also emailed a fraudulent AbbVie corporate resolution document, purportedly signed by actual corporate officers of the company, but in truth he had forged the signatures on the document.
As part of his scheme, Young fraudulently ordered equipment worth over $2.8 million from six different equipment dealers. Most of the dealers caught the fraud before shipment, but Young was successful in acquiring four pieces of equipment worth over $500,000. He sold some of the stolen equipment online and used the proceeds to purchase two Chevrolet work trucks. The Gordon County Sheriff’s Office has since recovered all of the stolen equipment that was shipped.
Young, 39, of Ranger, Georgia, has been sentenced to seven years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $30,000 to the online purchaser of the stolen equipment. The Court ordered that five years of the federal sentence must run consecutively to the state sentence that Young is currently serving. Young was convicted of wire fraud and aggravated identity theft on August 27, 2021, after he pleaded guilty.
This case is being investigated by the Federal Bureau of Investigation, Gordon County Sheriff’s Office, Georgia Bureau of Investigation, and the Georgia Department of Corrections Criminal Investigations Division.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four Executives Plead Guilty to Fraud Scheme that Caused over $4.5 Million in Losses to the Small Business AdministrationRead the Press Release
Three former executives of Valley Bank, a defunct financial institution based in Moline, Illinois, and the President of Vital Financial Services (Vital Financial), a lending service provider, have pleaded guilty to scheming to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.
According to court document, the defendants — Michael Slater, 65, of Clive, Iowa, former President and Founder of Vital Financial; Larry Henson, 70, of Davenport, Iowa, former President and Chairman of Valley Bank; Andrew Erpelding, 43, also of Davenport, Iowa, former Vice President and Regional Manager of Valley Bank; and Susan McLaughlin, 68, of Bettendorf, Iowa, former Vice President for Credit Administration of Valley Bank — conspired to and did fraudulently obtain loan guarantees from the SBA on behalf of Valley Bank borrowers, knowing that the loans did not meet SBA’s guidelines and requirements for the guarantees. They did so by, among other things, altering loan payment histories, renaming businesses, and hiding the fact that borrowers had previously defaulted on loans. When the fraudulently guaranteed loans defaulted, the defendants caused the submission of reimbursement requests to the SBA to purchase the defaulted loans from investors and lending institutions, thereby shifting the majority of losses on the ineligible loans to the SBA. In all, the defendants attempted to obtain guarantees on over $14 million in loans, were successful in obtaining guarantees on over $9 million in loans, and caused the SBA losses of over $4.5 million.
All four defendants pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. McLaughlin pleaded guilty on Sept. 20; Erpelding on Sept. 21; Henson on Nov. 9; and Slater on Nov. 18. The defendants each face a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Richard D. Westphal for the Southern District of Iowa; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB/CFPB-OIG); Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (SBA-OIG), Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division, and Acting Inspector General Phyllis K. Fong of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) made the announcement.
The FDIC-OIG, FRB/CFPB-OIG, SBA-OIG, FBI, and FHFA-OIG investigated the case.
Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adam Kerndt of the Southern District of Iowa are prosecuting the case.
Former charter school official sent to prisonRead the Press Release
HOUSTON – A 65-year-old Missouri City man has been ordered to federal prison for conspiracy to commit mail fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Richard Rose pleaded guilty Aug. 17.
Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 36-month prison sentence and further ordered Rose to pay restitution of $335,439.
Rose was the founder of Zoe Learning Academy. He served in various capacities to include superintendent, CEO and chief financial officer during its operations from 2001 until it closed in September 2019.
At the time of his plea, he admitted he filed falsified governance reports through the U.S. mail to obtain charter school funds. He embezzled funds intended for the charter school’s operation and used them for his personal expenses such as legal fees, a lawsuit settlement and for the purchase of a timeshare.
Rose was permitted to remain on bond and voluntarily surrender to a Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation, Secret Service, Department of Education-Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek and Quincy Ollison prosecuted the case.
Former State Department Employee Sentenced to Federal Prison for Embezzling more than $150,000 from Department of DefenseRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Roudy Pierre-Louis, 49, a citizen of Haiti and former State Department employee, was sentenced to more than a year in federal prison after pleading guilty to committing Wire Fraud.
Evidence presented to the court showed that from 2015 through August 2018, Pierre-Louis was an employee of the State Department who worked at the Embassy of Haiti as the sole budget analyst for the Security Coordination Office (SCO). In this role, Pierre-Louis was responsible for managing all lines of accounting for the State Department and Department of Defense (DoD) associated with the SCO, which included per diem cash advances for individuals travelling to United States Southern Command events. Pierre-Louis also was designated as the SCO’s Occasional Money Holder, allowing him to receive cash on behalf of other individuals who did not have full access to the Embassy in order to obtain cash advances for travel expenses, including, but not limited to, per diem, lodging, and air fare.
The Embassy maintained a vault, or “cash cage,” from which cash advances could be disbursed to employees providing documentation of supervisory approval. This cash cage was reconciled on a daily basis, as cash on hand along with approved disbursements were required to be reconciled and approved by a financial officer with the State Department in order to balance and replenish the cash supply.
Beginning in 2015 and continuing through at least August 2018, Pierre-Louis submitted fraudulent vouchers and supporting documents for cash advances in the names of Haitian Nationals that contained forged signatures of requesting and approving DoD supervisors.
Unaware of this fraud, the Department of State released these cash funds to Pierre-Louis, which were subsequently reimbursed by the Department of Defense. During the relevant time period, from 2015 to August 2018, Pierre-Louis embezzled at least $156,950 from his wire fraud scheme.
United States District Judge Richard M. Gergel sentenced Pierre-Louis to 12 months and one day in federal prison, to be followed by a three-year term of court-ordered supervision, and ordered that Pierre-Louis pay full restitution in this case. There is no parole in the federal system.
The case was investigated by the State Department Office of Inspector General’s Charleston, South Carolina Field Office, and the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command.
Assistant United States Attorney Allessandra Stewart prosecuted the case.
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Former St. Tammany Parish Sheriff Jack Strain Pleads Guilty to Soliciting and Receiving Bribes Involving Contract for Privatization of Work Release Program in St. Tammany ParishRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that former long-time St. Tammany Parish Sheriff RODNEY J. STRAIN (a/k/a Jack Strain), age 56, from Abita Springs, Louisiana, pleaded guilty today before United States District Judge Jane Triche Milazzo to Count 15 of the Indictment returned in August 2019, charging him with soliciting and receiving bribes, in violation of Title 18, United States Code, Section 666(a)(1)(B) for his role in the privatization and operation of a work release program that operated in Slidell, Louisiana between 2013 and 2016.
According to court documents, STRAIN, who was the Sheriff of St. Tammany Parish from about 1996 to 2016, had the unilateral authority to decide whether Parish-run work release programs (i.e., halfway houses) would be operated by the Sheriff’s Office or private entities and to choose which private entities would be granted the right to operate privately-run halfway houses. In about early 2013, STRAIN decided to privatize a work release program in Slidell, Louisiana. He discussed with his two close associates and Captains with the St. Tammany Parish Sheriff’s Office (STPSO), David Hanson and Clifford “Skip” Keen, the prospect of Hanson and Keen becoming joint owners of the Slidell work release program. However, St. Tammany Parish Sheriff’s Office employees advised STRAIN that state law prohibited Hanson and Keen from owning and operating the Slidell work release program while employed at STPSO. As a result, since state law prohibited employees from “participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity,” Hanson and Keen would have had to resign from STPSO if they wanted to assume ownership and control of the Slidell work release program. Thus, they would be obliged to forfeit their salaries and pension increases from continued employment with STPSO to become joint owners.
STRAIN, Hanson, and Keen discussed ways to allow Hanson and Keen to maintain their employment and still profit from the Slidell work release program. To conceal their scheme, STRAIN, Hanson, and Keen agreed to make Keen’s adult son (J.K.) and Hanson’s adult daughter (B.H.) owners of the Slidell work release program, with the understanding that J.K. and B.H. would funnel much of the profits to Hanson and Keen. Hanson and Keen agreed to give regular payoffs to STRAIN and his selected family members from the funds they received. This understanding was partly based on STRAIN having previously required Keen to kickback to STRAIN half of the money Keen earned from an earlier place of employment.
STRAIN, Hanson, and Keen agreed that they needed to find another individual to actually operate the Slidell work release program because J.K. and B.H. lacked the education, training, experience, and funding to do so. They decided on Person 2, to whom Hanson presented a series of non-negotiable pre-conditions, including the following: J.K. and B.H. would each own forty-five (45) percent of the Slidell work release program and would each receive forty-five (45) percent of the profits, while Person 2 would only own ten (10) percent, receive ten (10) percent of the profits, and receive a salary. Person 2 would be responsible for operating the Slidell work release program and for providing the capital necessary to initiate the program. On or about May 1, 2013, J.K., B.H., and Person 2 entered into an operating agreement that created St. Tammany Workforce Solutions, LLC, in which J.K. and B.H. each had a forty-five percent ownership interest and Person 2 had only a ten percent ownership interest.
On June 4, 2013, STRAIN entered into a cooperative endeavor agreement (“privatization agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC, a corporation designed to operate the Slidell work release program. Thereafter, Person 2 was directed to make additional unnecessary financial expenditures. For example, although J.K. and B.H. were merely straw owners who neither operated, oversaw, or administered the Slidell work release program, Person 2 was required to pay J.K. and B.H. salaries in addition to their ownership disbursements. Person 2 was also directed to pay Person 3, who was an employee at STPSO and STRAIN’S relative, approximately $30,000 per year for a no-show job at the Slidell work release program.
During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release program, from July 1, 2013, through July 1, 2016, J.K. and B.H. received not less than $1,384,000 from St. Tammany Workforce Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump sum miscellaneous payments. J.K. received at least 148 payments totaling at over $676,000, while B.H. received at least 133 payments totaling over $708,000. J.K. and B.H. converted the majority of the money they received from St. Tammany Workforce Solutions, LLC to cash, much of which they transferred to their fathers, Keen and Hanson.
Additionally, STRAIN, Hanson, and Keen understood that STRAIN and his family members would receive payoffs from Hanson and Keen in exchange for STRAIN’s conferring the right to operate the Slidell work release program on St. Tammany Workforce Solutions, LLC. The bribes took multiple forms. The ways Hanson and Keen funneled money to STRAIN included giving STRAIN regular cash payments in amounts greater than $1,000 from the money they received from St. Tammany Workforce Solutions LLC, through B.H. and J.K. Second, as part of the scheme, Hanson arranged for STRAIN’s relative, Person 1, to receive a check in the amount of $4,000. Third, STRAIN received campaign money from Hanson and Keen with money from St. Tammany Workforce Solutions, LLC, including a $2,500 payment in November 2015. Further, STRAIN’s relative received a no-show job from the Slidell work release program that effectively doubled his annual salary.
STRAIN, Hanson, Keen, and others attempted to conceal the scheme by, among other things, (a) hiding Hanson’s and Keen’s involvement in and benefit from the Slidell work release program, (b) excluding from the cooperative endeavor agreement the fact that STRAIN would receive cash bribes and other financial compensation in exchange for signing the cooperative endeavor agreement, and (c) providing most of the money to STRAIN in the form of cash.
Hanson and Keen were charged for their roles in the scheme in November 2018. They pleaded guilty on February 27, 2019 and were each sentenced to fifty (50) months in prison by United States District Judge Ivan L.R. Lemelle on October 6, 2021.
“Mr. Strain broke the law and must now face the consequences, “stated U.S. Attorney Duane A. Evans. “More disturbing was that his crime was a breach of the public trust owed to the citizens of St. Tammany Parish. Similarly, because the trust between our law enforcement agencies and the citizens they protect is precious, it is imperative that collectively, we assure the public of our unwavering commitment to identity and prosecute anyone who engages in public corruption.”
“Rooting out public corruption remains one of the IRS-CI’s highest priorities,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Today’s guilty plea underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who violated the public’s trust.”
“When a law enforcement officer chooses to violate their oath of office and commit crimes, their actions erode public trust and confidence and tarnish the entire community of dedicated public servants. Today’s guilty plea is a result of the FBI’s commitment to bringing corrupt officials to justice like former sheriff Jack Strain, who engaged in deceitful, corrupt practices involving kickbacks and bribery schemes for personal gain, will be held accountable,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. "We thank our partners at the United States Attorney's Office, Eastern District of Louisiana, Internal Revenue Service Criminal Investigation Division, and Metropolitan Crime Commission for their strong partnership and unrelenting pursuit of justice."
STRAIN faces a maximum term of imprisonment of up to ten (10) years. He also faces a fine of up to $250,000, up to three years supervised release after imprisonment, and a mandatory $100 special assessment fee. STRAIN has also acknowledged that he may be liable for restitution ordered by Judge Milazzo. As part of the plea, the Government has made no representation, and cannot determine, the order in which he will serve any sentence of imprisonment imposed in this matter and in any currently pending state criminal matter in which he is a defendant. Sentencing before Judge Milazzo has been scheduled for March.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, Elizabeth Privitera, Chief of the Violent Crime Unit, and J. Ryan McLaren are in charge of the prosecution.
Former Rochester Housing Authority Chair Convicted by A Federal Jury on 28 Counts Including Multiple Fraud Charges, Money Laundering and Lying to the FBIRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal jury has convicted George H. Moses, 52, of Rochester, NY, on 28 of 29 counts for his role in defrauding three nonprofit organizations; Rochester Housing Charities (RHC), which provides housing to the elderly and disabled; the North East Area Development (NEAD), which assists low-income residents in the northeast quadrant of Rochester; and Quad A for Kids, which provided after-school and extended-day learning programs at some elementary schools in the Rochester City School District. Moses was also the Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA). The charges include mail fraud, wire fraud, federal program fraud, tax fraud, money laundering, and lying to the FBI. The charges cumulatively carry a maximum penalty of more than 200 years in prison.
Assistant U.S. Attorneys Richard A. Resnick, Melissa M. Marangola, and Meghan K. McGuire, who handled the prosecution of the case, stated that Moses used money from the RHC and grant funds earmarked for the community for his own personal use, including to purchase a vehicle, a time share in Florida, a cruise, tickets to a New York Knicks game at Madison Square Garden, health products, car repairs for his family’s vehicles, personal credit card payments, and multiple trips to Canada to visit his girlfriend at the apartment they had in Canada. Moses also paid wages to approximately 17 family members employed by NEAD and RHC.
In addition to defrauding Rochester Housing Charities and the Rochester Housing Authority, Moses was also convicted of:
• Two counts of lying to the FBI regarding his hiring of Adam McFadden as a subcontractor for RHC in 2015. McFadden, a former city councilmember, pleaded guilty to defrauding RHC with respect to the subcontract and is awaiting sentencing. Moses concealed the fact that he hired McFadden after McFadden was forced to resign as the Interim Executive Director of the RHA.
• Defrauding the Dormitory Authority of the State of New York (DASNY). As Executive Director of the NEAD, Moses applied for a $125,000 grant for renovation of the Freedom Market, owned by Freedom Community Enterprise Inc., a subsidiary of NEAD. After receiving the grant, Moses and a co-conspirator Shirley Boone tricked DASNY into believing that NEAD paid Freedom Community $45,000 for construction work which never occurred. As a result, DASNY reimbursed NEAD $45,000 to which it was not entitled. Moses used the funds to pay wages to his family members employed by NEAD.
• Five counts of filing false tax returns for the years 2014 through 2018. He failed to report income he received from NEAD and the RHC, as well as took false deductions with respect to his wife’s cleaning business and falsely claimed childcare expenses.“As a leader in the Rochester Housing Authority, George Moses was in a position of trust with access to public funding intended for those most in need in our community,” stated U.S. Attorney Ross. “As a federal jury concluded, George Moses broke that trust, stole public funding, and will now face the consequences for the choices he made.”
The verdict is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Department of Housing and Urban Development, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Machelle Jindra, and Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
Sentencing will be scheduled at a later date before Chief Judge Elizabeth A. Wolford who presided over the trial.
Former Employee of Technology Company Charged with Stealing Confidential Data and Extorting Company for Ransom While Posing as Anonymous AttackerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest today of NICKOLAS SHARP for secretly stealing gigabytes of confidential files from a New York-based technology company where he was employed (“Company‑1”), and then, while purportedly working to remediate the security breach, extorting the company for nearly $2 million for the return of the files and the identification of a remaining purported vulnerability. SHARP subsequently re-victimized his employer by causing the publication of misleading news articles about the company’s handling of the breach that he perpetrated, which were followed by a significant drop in the company’s share price associated with the loss of billions of dollars in its market capitalization.
SHARP was arrested earlier today in the District of Oregon and will be presented this afternoon before U.S. Magistrate Judge John V. Acosta. The case was assigned to U.S. District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “As alleged, Nickolas Sharp exploited his access as a trusted insider to steal gigabytes of confidential data from his employer, then, posing as an anonymous hacker, sent the company a nearly $2 million ransom demand. As further alleged, after the FBI searched his home in connection with the theft, Sharp, now posing as an anonymous company whistle-blower, planted damaging news stories falsely claiming the theft had been by a hacker enabled by a vulnerability in the company’s computer systems. Now the alleged theft and lies have been exposed, and Sharp is facing serious federal charges.”
FBI Assistant Director Michael J. Driscoll said: “We allege Mr. Sharp created a twisted plot to extort the company he worked for by using its technology and data against it. Not only did he allegedly break several federal laws, he orchestrated releasing information to media when his ransom demands weren't met. When confronted, he then lied to FBI agents. Mr. Sharp may have believed he was smart enough to pull off his plan, but a simple technical glitch ended his dreams of striking it rich.”
According to the Indictment unsealed today in Manhattan federal court[1]:
At all times relevant to the Indictment, Company-1 was a technology company headquartered in New York that manufactured and sold wireless communications products, and whose shares were traded on the New York Stock Exchange. NICKOLAS SHARP, the defendant, was employed by Company-1 from in or about August 2018 up to and including on or about April 1, 2021. SHARP was a senior developer who had access to credentials for Company-1’s Amazon Web Services (“AWS”) and GitHub Inc. (“GitHub”) servers.
In about December 2020, SHARP repeatedly misused his administrative access to download gigabytes of confidential data from his employer. For the majority of this cybersecurity incident (the “Incident”), SHARP used a virtual private network service that he subscribed to from a company named Surfshark to mask his Internet Protocol (“IP”) address when he accessed Company-1’s AWS and GitHub infrastructure without authorization. At one point during the exfiltration of Company-1 data, SHARP’s home IP address became unmasked following a temporary internet outage at SHARP’s home.
During the course of the Incident, SHARP caused damage to Company-1’s computer systems by altering log retention policies and other files, to conceal his unauthorized activity on the network. In or about January 2021, while working on a team remediating the effects of the Incident, SHARP sent a ransom note to Company-1, posing as an anonymous attacker who claimed to have obtained unauthorized access to Company-1’s computer networks. The ransom note sought 50 Bitcoin, a cryptocurrency – which was the equivalent of approximately $1.9 million, based on the prevailing exchange rate at the time – in exchange for the return of the stolen data and the identification of a purported “backdoor,” or vulnerability, to Company-1’s computer systems. After Company-1 refused the demand, SHARP published a portion of the stolen files on a publicly accessible online platform.
On or about March 24, 2021, FBI agents executed a search warrant at SHARP’s residence in Portland, Oregon, and seized certain electronic devices belonging to SHARP. During the execution of that search, SHARP made numerous false statements to FBI agents, including, among other things, in substance, that he was not the perpetrator of the Incident and that he had not used Surfshark VPN prior to the discovery of the Incident. When confronted with records demonstrating that SHARP purchased the Surfshark VPN service in July 2020, approximately six months prior to the Incident, SHARP falsely stated, in part and substance, that someone else must have used his PayPal account to make the purchase.
Several days after the FBI executed the search warrant at SHARP’s residence, SHARP caused false news stories to be published about the Incident and Company-1’s response to the Incident and related disclosures. In those stories, SHARP identified himself as an anonymous whistleblower within Company-1 who had worked on remediating the Incident. In particular, SHARP falsely claimed that Company-1 had been hacked by an unidentified perpetrator who maliciously acquired root administrator access to Company-1’s AWS accounts. In fact, as SHARP well knew, SHARP had taken Company-1’s data using credentials to which he had access in his role as Company‑1’s AWS cloud administrator, and SHARP had used that data in a failed attempt to extort Company-1 for millions of dollars.
Following the publication of these articles, between March 30, 2021, and March 31, 2021, Company-1’s stock price fell approximately 20%, losing over $4 billion in market capitalization.
SHARP, 36, of Portland, Oregon, is charged in four counts. The first count charges him with transmitting a program to a protected computer that intentionally caused damage, which carries a maximum sentence of 10 years in prison. The second count charges transmission of an interstate threat, which carries a maximum sentence of two years in prison. The third count charges wire fraud, which carries a maximum sentence of 20 years in prison. The fourth count charges the making of false statements to the FBI, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the extraordinary work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Chief Lending Officer of New Jersey Bank Sentenced to 18 Months in Prison for Making False Statements to United States to Secure Federal Guarantees on LoansRead the Press Release
TRENTON, N.J. – A Pennsylvania man was sentenced today to 18 months in prison for securing a federal guarantee on certain loans by making false statements to the Small Business Administration (SBA) about the creditworthiness of those loans while serving as the chief lending officer of a New Jersey bank, Acting U.S. Attorney Rachael A. Honig announced.
James Bortolotti, 53, previously pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging him with one count of knowingly making false statements for the purpose of influencing the action of the SBA. Judge Shipp imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
While serving as the chief lending officer of a New Jersey bank (Bank-1), Bortolotti became aware of a Small Business Administration lending program to incentivize lenders, including banks, to loan money to small businesses by providing a 75 percent SBA-backed guarantee on loans. When a lender applies an SBA guarantee on a loan, the lender must disclose information related to the creditworthiness of the small business. Bank-1 hired a consulting firm to help the bank apply for SBA-backed guarantees.
On Feb. 29, 2012, a consultant from the consulting firm submitted an application to the SBA for a guarantee of approximately $3.75 million on loans totaling approximately $5 million made to a small business located in Robbinsville, New Jersey. The application contained false information related to the creditworthiness of the business. Bortolotti knew the application contained false information, but he nevertheless reviewed and signed the application on behalf of the bank.
In addition to the prison term, Judge Shipp sentenced Bortolotti to three years of supervised release and ordered him to pay restitution of $3.17 million to the SBA.
Acting U.S. Attorney Honig credited special agents of the SBA-Office of the Inspector General (SBA-OIG), Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite; the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Inspector General Jay N. Lerner; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.
Former Chief Financial Officer of Publicly Traded Company Sentenced to Two Years for Significant Securities FraudRead the Press Release
The former chief financial officer of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly-traded trucking and logistics company formerly headquartered in Cudahy, Wisconsin, was sentenced yesterday in the Eastern District of Wisconsin to 24 months in prison for his role in a complex securities and accounting fraud scheme.
According to court documents and evidence produced at trial, Peter R. Armbruster, 62, of Milwaukee, Wisconsin, participated in a sophisticated accounting fraud scheme that resulted in Roadrunner filing materially false financial statements with the SEC for the third quarter of 2016. Evidence presented at trial showed that Armbruster inflated Roadrunner’s reported income by misrepresenting Roadrunner’s expenses. His actions caused the investing public to lose tens of millions of dollars when Roadrunner eventually announced that it would need to restate its previously filed financial statements, triggering a sharp drop in the company’s stock. On July 29, following an 11-day trial, a jury convicted Armbruster of four counts of violating federal securities laws, including misleading a public company’s auditors, securities fraud, and keeping false books and records.
“This sentence reflects the serious harm an executive caused by deliberately misleading shareholders, auditors, and the general public about the financial health of a publicly traded company,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “People deserve better from corporate management. The Criminal Division remains committed to fighting white-collar crime, protecting investors, and safeguarding the integrity of our markets from C-suite executives who commit accounting and securities fraud.”
“Peter Armbruster failed to honestly perform his corporate duties, costing investors tens of millions of dollars in losses,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “Corporate fraud remains a top priority for the FBI, as stamping out illegal activity like this scheme is essential to preserving confidence in our collective ability to invest for a brighter tomorrow. This sentencing shows that the FBI and our law enforcement partners vigilantly protect American investors from corporate fraud while holding accountable those who undermine our way of life.”
“This sentencing sends a strong message that those who commit transportation-related financial fraud will be held accountable,” said Special Agent in Charge Andrea M. Kropf of the Department of Transportation Office of Inspector General, Midwestern Region. “Together with our law enforcement and prosecutorial partners, we will continue to identify, investigate, and pursue those who perpetrate complex criminal schemes for profit.”
The FBI’s Milwaukee Division and the Department of Transportation’s Office of Inspector General are investigating the case.
Trial Attorneys Emily Scruggs and Kyle Hankey and Acting Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Caitlin R. Cottingham, formerly of the Fraud Section, provided valuable assistance.
Federal Jury Convicts Pennsylvania Man and New Mexico Man for Their Roles in Fraud, Money Laundering & Obstruction ConspiraciesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Nathan J. Peachey, age 50, of Pennsylvania, and John Rick Winer, age, 67 of New Mexico, were convicted by a federal jury in Sioux Falls, South Dakota, after a seven-day trial before U.S. District Judge Karen E. Schreier. The guilty verdicts were returned on November 23, 2021.
Peachey was convicted of Conspiracy to Commit Wire Fraud, Conspiracy to Launder Monetary Instruments, Conspiracy to Obstruct Justice, and nine counts of Laundering Monetary Instruments. Winer was likewise convicted of the three conspiracy offenses, in addition to four counts of Wire Fraud and five counts of Laundering Monetary Instruments. The jury also returned a special verdict relating to the forfeiture of a residence in Norway, a luxury vehicle, and silver coins.
“Luring victims into believing their money would be invested to better humanity, the defendants engaged in a long-running, international scheme to steal and launder victims’ money for self-enrichment,” said Acting U.S. Attorney Dennis R. Holmes. “The jury’s verdict validates the extensive work of this Office and of its law enforcement partners across the United States and in Norway. Together, we will continue to use every available tool to combat and prevent criminals from exploiting victims for personal benefit.”
“Mr. Peachey and Mr. Winer preyed on the charitable hearts of innocent victims. IRS Criminal Investigation is committed to unraveling complex schemes that send victim’s money overseas. We will continue to work with our law enforcement partners to track ill-gotten gains and bring these criminals to justice,” said Special Agent in Charge, Tyler Hatcher, IRS Criminal Investigation, St. Louis Field Office.
“During the trial, we heard evidence of the defendants boasting on tape about their ability to con ‘99-percent of the population,’ which shows that anyone can become a victim of a scam,” said FBI Special Agent in Charge Michael Paul. “But it only strengthens our resolve to hold these con men responsible for their actions, no matter the type of scam or their intended target.”
The maximum penalties for each counts of conviction are 20 years in prison, a $250,000 fine, or both imprisonment and a fine, a term of three years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, restitution, and forfeiture.
Defendants Nathan Peachey and John Rick Winer were originally indicted by a federal grand jury on November 5, 2019. A second Superseding Indictment was filed on October 6, 2020.
According to evidence presented at trial, Peachey resided in and operated from the State of Pennsylvania and from a suburb of Oslo, Norway. Peachey aided in soliciting millions of dollars from investors in the United States, and he received funds from others who were involved in the fraud scheme. Funds obtained by and through Peachey were, in part, laundered through and into domestic and international bank accounts. After his receipt of funds, Peachey would transfer or wire funds to his co-conspirators, and he also would use funds on personal expenditures.
Winer resided and operated from New Mexico, among other places. Winer recruited individuals from South Dakota and elsewhere to invest in various projects, and he solicited funds that were obtained through the fraud scheme. After his receipt of funds, Winer would transfer or wire funds to his co-conspirators and others known and unknown to the Grand Jury, and he also would use funds on personal expenditures.
As to the scheme to defraud the victims across the country, Peachey and Winer, along with their co-conspirators, informed investors that the monies provided to one or more of the co-conspirators would be used for charitable or humanitarian projects, oftentimes using religion to entice and induce victims into investing money in the scheme. They also made promises that there would be a return on investments. Peachey and Winer informed investors that the monies provided to one or more of the co-conspirators would not be expended on personal expenses. Investor money was not used for charitable or for humanitarian projects, and investors never received a return on investments relating to the monies provided to Peachey, Winer or their co-conspirators. The purpose of the conspiracy was to enrich the co-conspirators, all of whom amassed nearly $13 million and then spent the fraud proceeds on a luxury residence located in a suburb of Oslo, Norway, renovation costs on the house, a Mercedes Benz, nearly $4 million in silver, travel, and personal expenses. This fraud scheme impacted victims from around the United States, including South Dakota, Minnesota, Arizona, New Mexico, Florida, Colorado, Pennsylvania, and North Carolina.
Peachey, Winer, and their co-conspirators utilized, independently or jointly, entities to perpetrate the fraud scheme, including, but not limited to: AG Enterprises, L.L.C.; House of Winer; Jacobs Provision Trust; The Joseph Project; Jericho Outreach; Jericho Outreach – Norway; Christian Charity Foundation; and G47 Initiative. These entities were fake and used to receive fraud proceeds and launder money.
Through extensive coordination and partnership, this complex, long-running fraud and money laundering case was investigated and prosecuted by the following entities:
- Internal Revenue Service Criminal Investigation;
- Federal Bureau of Investigation;
- ØKOKRIM, the Norwegian National Authority for Prosecution and Investigation of Economic and Environmental Crime, Oslo, Norway;
- Oslo, Norway, Police Department;
- Department of Justice’s Office of International Affairs; and
- South Dakota Division of Criminal Investigation.
Assistant U.S. Attorneys Jeremy R. Jehangiri and Ann M. Hoffman prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for February 14, 2022. The defendants were released pending their sentencing hearings.
Eau Claire Felon Sentenced to 4 Years for Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Gavin Potter, 21, Eau Claire, Wisconsin was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 4 years in prison for being a felon in possession of a firearm. The prison term will be followed by 3 years of supervised release. Potter pleaded guilty to this charge on September 14, 2021.
In December 2020, Potter was taken into custody as the result of an investigation of a state crime. Following his arrest, officers executed a search warrant at Potter’s residence and found a SIG Sauer P320 9mm handgun, firearm magazines, ammunition, and marijuana in a safe. Detectives determined that after his arrest, Potter’s girlfriend took the gun from his bedroom and gave it to his stepfather, who put it in the safe.
The investigation by the Eau Claire County Sheriff’s Office revealed that a couple of weeks before he was taken into custody, Potter traded a Ruger LCP .380 pistol for the SIG P320 9mm. Potter’s phone showed internet searches for firearms, corroborated the firearm trade, and suggested that he was involved in drug trafficking.
At the time of his arrest, Potter was on supervision for state convictions for felony burglary and possessing a short-barreled shotgun. Potter also has served time in state prison for trafficking marijuana. At sentencing, Judge Peterson remarked that for his age, Potter has a serious criminal history. Because of Potter’s dangerous conduct, Judge Peterson said that it was the Court’s responsibility to keep the community safe.
The charge against Potter was the result of an investigation conducted by the Eau Claire County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan handled the prosecution.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Dundalk Man Sentenced to More Than Two Years in Federal Prison for Charges Related to Aggravated Identity Theft, Sale of Stolen Citizenship Documents and Counterfeit Driver’s LicensesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Orvil Perez-Jimenez, age 34, of Dundalk, Maryland to two years and four months in federal prison, followed by three years of supervised release for the transfer of false identification documents, the sale of citizenship documents, and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew Wroblewski of the U.S. Department of State’s Diplomatic Security Service (DSS)- Washington Office.
According to his guilty plea, from 2017 to March 2020, Perez-Jimenez obtained birth certificates and social security cards issued to real U.S. citizens, without those individuals’ knowledge or consent. He then sold these identification documents to alien clients living in the United States. Additionally, Perez-Jimenez sold fraudulent identification cards to the alien clients listing the victim citizens’ personal identifying information but displaying photos of his alien clients.
Specifically, in 2017, Perez-Jimenez agreed to sell birth certificates, social security cards, and false driver’s licenses to a married couple living in Maryland without lawful status to reside in the United States (Individual 1 and Individual 2) for $5,000. After directing the couple to produce two passport-sized photos of themselves, Perez-Jimenez fraudulently obtained the birth certificates and social security cards issued in the names of two real U.S. citizens residing in Puerto Rico. Perez-Jimenez also obtained fake Puerto Rican driver’s licenses listing the names of the two citizens but displaying the photos of Individual 1 and Individual 2, respectively.
Individual 1 and Individual 2 then used identity documents purchased from Perez-Jimenez to make false applications for U.S. passports, fraudulently obtain employment eligibility verification with U.S. Citizenship and Immigration Services, open financial accounts, and obtain Maryland driver’s licenses in the names of the victims residing in Puerto Rico.
As stated in his plea agreement, on February 8, 2020, Perez-Jimenez informed an undercover DSS agent that he could provide a Puerto Rican birth certificate, driver’s license, and a social security card. On February 11, 2020, Perez-Jimenez asked the agent to provide his height, weight, hair color, skin color, and two passport-sized photos of himself, as well as $1,000 as a deposit. Perez-Jimenez and the DSS agent met two days later, and the agent provided Perez-Jimenez the information requested including the photos, and $1,000 in cash.
On March 12, 2020, Perez-Jimenez met with the agent in Baltimore, Maryland, provided him with the falsified identity documents and accepted an agreed upon final payment of $2,000 in cash. Perez-Jimenez was subsequently arrested. The identity documents included a birth certificate and social security card issued in the name of a real U.S. citizen residing in Puerto Rico, as well as a fake Puerto Rico driver’s license. The counterfeit driver’s license that Perez-Jimenez procured for the agent displayed the photo of the agent and the identifying information of the victim living in Puerto Rico.
During the search of Perez-Jimenez’s person, vehicle, and residence, law enforcement recovered an Internal Revenue Service Form W-2 in the victim’s name, a cell phone, and other documents and electronic devices.
Examination of the cell phone revealed communications between Perez-Jimenez and other persons about procuring identification documents, including discussions about obtaining passport-sized photos and physical descriptions for the purpose of creating fake driver’s licenses and photos of identification documents issued in a victim’s name.
United States Attorney Erek L. Barron commended the DSS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.
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Distributor of More than 100 Pounds of Fentanyl Sentenced to Almost Six Years in PrisonRead the Press Release
Assistant U. S. Attorney Meghan E. Heesch (619) 546-9442
NEWS RELEASE SUMMARY – December 1, 2021
SAN DIEGO – Ernesto Renteria of Chula Vista was sentenced in federal court today to 71 months in custody for distributing more than 100 pounds of deadly fentanyl plus fentanyl analogues, cocaine and methamphetamine.
According to his plea agreement, in May 2021, Renteria stored large quantities of the federally controlled substances at his house in Chula Vista and was shipping them to distributors across the country via UPS. In total, DEA agents seized from Renteria 49.1 kilograms (108.2 pounds) of fentanyl; 7 kilograms of cocaine; 4 kilograms of fentanyl analogue; and 1.8 kg methamphetamine. Agents also seized packaging materials and GPS tracking devices.
This seizure of fentanyl is yet another example of drug cartels pushing huge quantities of fentanyl into the San Diego community. On November 19, 2021, authorities at the Otay Mesa port of entry made a record-breaking seizure of 17,584 pounds of methamphetamine and 388.93 pounds of fentanyl from a commercial trailer attempting to enter the U.S. The driver of the vehicle, Carlos Martin Quintana-Arias, faces narcotics importation charges.
DEA agents across the country have seized a record-high 12,000 pounds of fentanyl this year.
“Fentanyl is an incredibly dangerous drug that is destroying lives and families in our community and across the nation,” said Acting U.S. Attorney Randy S. Grossman. “Our office will continue to aggressively prosecute those responsible for distributing this poison and profiting from the opioid epidemic.” Grossman praised the prosecution team and DEA agents for their excellent work on this case.
“The quantity of fentanyl DEA agents seized from Ernesto Renteria is disturbing,” said DEA Acting Special Agent in Charge Shelly S. Howe. “Had DEA not seized these deadly drugs prior to distribution, many Americans could have died from a fentanyl overdose. The DEA will continue to prioritize investigations targeting fentanyl drug traffickers to fight the growing number of overdose deaths in our country.”
Fentanyl analogues like the ones possessed by Renteria are particularly dangerous because the chemical structure can be manipulated to increase the potency. Since 2018, fentanyl analogues have been temporarily classified by the Drug Enforcement Administration as a Schedule I controlled substance. The temporary schedule expires in February 2022. In January 2020, all four U.S. Attorneys in California called on Congress to strengthen federal prosecutors’ toolkits by permanently scheduling all fentanyl analogues as Schedule I controlled substances.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
DEFENDANT Case Number 21cr1594-CAB
Ernesto Renteria Age: 45 Chula Vista, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances, in violation of 21 U.S.C. 841 and 846
Maximum Penalty: Life in prison; $10 million fine
AGENCY
Drug Enforcement Administration
Defendant Sentenced to 24 Years in Prison for 2015 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BRYANT BROWN, a/k/a “Trigga,” was sentenced by U.S. District Judge Paul A. Engelmayer yesterday to 24 years in prison for the December 2015 murder of Albendris Nunez and a 2017 armed robbery.
U.S. Attorney Damian Williams said: “On a Sunday morning in 2015, Bryant Brown shot and killed Albendris Nunez in Devoe Park in the Bronx over $600 of marijuana. For this senseless killing, Brown will serve a substantial sentence in federal prison.”
According to the allegations in the Indictment and other filings and statements made in court:
On or about December 20, 2015, BROWN attempted to rob Nunez of approximately $600 worth of marijuana in Devoe Park in the Bronx, New York. BROWN set up the purported drug deal with Nunez over Facebook and instructed Nunez to meet him in Devoe Park. BROWN brought a gun and planned to rob Nunez during this meeting and, during the planned robbery, shot Nunez in the back, killing him.
On or about November 18, 2017, BROWN and a co-conspirator robbed a victim of liquid promethazine with codeine, also known as “wock” or “lean,” inside a residential apartment building in the Bronx, New York. BROWN brought a gun to this robbery and struck the victim in the face with it.
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In addition to his prison sentence, BROWN, 26, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jamie Bagliebter and Mollie Bracewell are in charge of the prosecution.
Davante Harrison (“YGG Tay”) Sentenced to 15 Years in Federal Prison for Drug Conspiracy and Related Gun and Drug ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Davante Harrison, a/k/a “YGG Tay,” age 27, of Baltimore, yesterday to 15 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl, heroin, cocaine, and crack cocaine; possession with intent to distribute heroin; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime. Harrison was convicted of those charges by a federal jury on August 20, 2021, after a five-day trial.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Amal E. Awad of the Anne Arundel County Police Department.
According to the evidence presented at his five-day trial, in October and November 2019, Harrison was part of a drug conspiracy that distributed fentanyl, heroin, cocaine, and crack cocaine in Baltimore and Baltimore County. Law enforcement officers investigating the conspiracy surveilled Harrison, who is believed to be the leader of the group “Young Go Getters,” and observed him traveling from Baltimore to locations in Rosedale and Golden Ring Park in Baltimore County, where he made short stops to conduct narcotics transactions. Afterward, Harrison traveled to a casino in Delaware with the drug proceeds.
According to testimony and court documents, on November 25, 2019, FBI investigators executed search warrants at locations associated with the conspiracy, including a search of Harrison. From Harrison, investigators recovered $9,277 in cash and a .40 caliber handgun loaded with an extended magazine containing 17 rounds, including one in the chamber. The $9,277 were proceeds of Harrison’s drug trafficking activity. At a stash location associated with the conspiracy, law enforcement recovered a 9mm pistol, loaded with 16 rounds, including one in the chamber; a .25 caliber pistol loaded with five rounds; a container with 386 grams of a mixture of fentanyl and heroin; several clear plastic bags containing a total of 40 grams of cocaine; a clear plastic bag containing 50 grams of a mixture of heroin and fentanyl; a clear plastic bag containing 27 grams of crack cocaine; a plastic bag containing 71 grams of a fentanyl mixture; and drug paraphernalia.
Harrison knew that he was prohibited from possessing firearms or ammunition as a result of a previous felony conviction.
Co-defendant Christopher Jerry, age 30, of Baltimore, previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on December 2, 2021.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the FBI, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine Goo and Charles Austin, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Dade City Man Sentenced in Bank Fraud and Aggravated Identity Theft CaseRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Daniel Santos (26, Dade City) to seven years and three months in federal prison for bank fraud and aggravated identity theft. As part of his sentence, the court also ordered restitution in the amount of $263,066.15, the proceeds of the bank fraud.
Santos had pleaded guilty on August 24, 2021.
According to court documents, from May 2016 through June 2018, Santos was involved in a bank fraud scheme that victimized at least 55 individuals and 21 financial institutions. Bank video surveillance captured Santos depositing fraudulent or altered checks into bank accounts and then withdrawing cash from the accounts before the banks discovered the checks were fraudulent. Through the scheme, Santos deposited $570,977.38 in fraudulent checks and received $263,066.15 in fraud proceeds. Santos had an extensive criminal history.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys John Cannizzaro and Mandy Riedel.
Cypress medical sales representative agrees to settle allegations regarding neurostimulator devicesRead the Press Release
HOUSTON - A 47-year-old medical sales representative has agreed to pay $100,000 to settle allegations that he assisted in causing the submission of false claims, announced Acting U.S. Attorney Jennifer B. Lowery.
Matthew Thibaut is a sales representative from Cypress. He sold products through his business, Flex Surgical Management LLC.
From Jan. 1, 2017, to Dec. 31, 2019, Thibaut sold ANSiStim and Primary Relief devices to various medical providers. DyAnsys Inc. manufactures the devices which are used for electro-acupuncture. This only involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
However, Thibaut’s customers falsely billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room for which Medicare pays thousands of dollars. Thibaut allegedly knew his customers would bill Medicare in this fashion and, therefore, assisted in causing the submission of false claims, according to the allegations.
To date, the Southern District of Texas has resolved six other similar cases which included settlements from a Katy anesthesiologist, a Houston pain doctor, a Rockport chiropractor, a Houston chiropractor, a Laredo pain doctor and a Woodlands pain doctor. This is the first settlement in the Southern District of Texas involving a device marketer.
The U.S. Attorney’s Office jointly conducted the investigation with the Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Crossroads Hospice Agrees to Pay $5.5 Million to Settle False Claims Act LiabilityRead the Press Release
Memphis, TN – Carrefour Associates LLC; Crossroads Hospice of Cincinnati LLC; Crossroads Hospice of Cleveland LLC; Crossroads Hospice of Dayton LLC; Crossroads Hospice of Northeast Ohio LLC; and Crossroads Hospice of Tennessee LLC ("Crossroads Hospice"), operating in Ohio and Tennessee, have agreed to pay $5.5 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare for non-covered hospice services.
Hospice care is special end-of-life care intended to comfort terminally ill patients. Patients admitted to hospice care generally stop receiving coverage for traditional medical care designed to cure their terminal condition and instead receive medical care focused on providing them with relief from the symptoms, pain and stress of a terminal illness. Medicare patients are terminally ill and hospice eligible when they have a life expectancy of six months or less if their illness runs its normal course.
This settlement resolves allegations that Crossroads Hospice knowingly submitted false claims to Medicare for hospice services for patients who were not terminally ill. According to the settlement agreement, the United States alleged that from Jan. 1, 2012 to Dec. 31, 2014, Crossroads Hospice billed Medicare for hospice care for certain patients with a diagnosis of dementia or Alzheimer’s disease at its Ohio and Tennessee locations who were not terminally ill for at least a portion of the more than three years that the patients received care at these locations.
"Medicare’s hospice benefit provides critical end of life services that focus on palliative rather than curative care," said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. "Today’s settlement demonstrates our continuing commitment to ensure that hospice services are provided to patients who truly need this care and that patients who are not terminally ill receive appropriate curative care."
"This Office is committed to pursuing providers who put profits ahead of patients," said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. "We will continue to hold accountable those who abuse federal healthcare programs at the expense of the taxpayers."
"The Medicare program provides older Americans with access to health," said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. "When frauds like this are committed by serviced providers, it effectively deprives older Americans of health care resources. Our office will continue to take steps to prevent frauds like this from taking place in order to ensure that the Medicare program’s resources are used effectively."
"The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis and desire for palliative care, not a hospice provider’s desire to boost its profits," said Special Agent in Charge Lamont Pugh III, U.S. Department of Health and Human Services Office of Inspector General. "Our agency is dedicated to safeguarding both the Medicare program and Medicare patients. This settlement reaffirms HHS-OIG’s commitment to holding accountable providers who knowingly submit false claims to Medicare."
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Leanne Malone, Jackie Burns and Angela Heck, former employees of Crossroads Hospice, as well as Dr. David Weber, a home health physician in Tennessee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are United States ex rel. Leanne Malone et al. v. Carrefour Associates LLC et al., No. 1:15-cv-460 (S.D. Ohio) and United States ex rel. David Weber v. Crossroads Hospice of Tennessee, LLC, No. 2:16-cv-02684 (W.D. Tenn.). Under today’s settlement, the whistleblowers in the Malone action will receive approximately $1,045,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Ohio; and the U.S. Attorney’s Office for the Western District of Tennessee. The Department of Health and Human Services, Office of Inspector General, assisted in the investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Fraud Section Trial Attorney Jonathan Hoerner, Assistant U.S. Attorney Andrew Malek of the Southern District of Ohio and Assistant U.S. Attorney Eileen Kuo of the Western District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Corpus Christi Man Sentenced for Assault at JBSA-LacklandRead the Press Release
SAN ANTONIO – A Corpus Christi man was sentenced today to 33 months in federal prison for assaulting a female on Joint Base San Antonio - Lackland.
According to court records, on November 28, 2020, Robert Allen Cavazos, 51, and a woman were arguing in an RV located in the housing area of Lackland. When the woman tried to leave, Cavazos grabbed her arm and pulled her into the RV and blocked the door. The woman continued to try and leave but Cavazos kept pushing her and throwing her to the floor. At one point Cavazos put her in a choke hold. He also put his hands around her neck in order to strangle her. The woman was eventually able to get away and contacted Security Forces about the assault.
On August 17, 2021, Cavazos was found guilty by U.S. District Judge Jason K. Pulliam of assault.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Christopher Combs made the announcement.
The FBI investigated the case.
Special Assistant U.S. Attorney Tiffany Miller prosecuted the case.
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Colorado Nurse Sentenced to Federal Prison for Taking Controlled Substances from PatientsRead the Press Release
DENVER – Alicia Nickel-Tangeman, age 44, formerly of Woodland Park, Colorado, was sentenced to 12 months in federal prison for obtaining controlled substances using fraud and deception while she was on the job as a Registered Nurse at a hospital in Colorado. Following her term of incarceration, Nickel-Tangeman will serve one year of supervised release.
According to court documents, Ms. Nickel-Tangeman used her position as Registered Nurse to access the rooms of patients she was not assigned to care for in a separate unit of a Colorado hospital. The defendant falsely and fraudulently told patients that she was conducting a “study” on the effectiveness of Patient-Controlled Analgesia (PCA) pumps, which deliver controlled substances to hospital patients to relieve pain on-demand when the patient pushes a button. The defendant then used a key to open the machine that secured the syringe of hydromorphone that was to be dispensed to the patient. The defendant removed a portion of the drug from the syringe, which she kept, then returned the syringe to the patient’s PCA. The defendant illegally obtained controlled substances in this way from three patients on four occasions. When confronted by law enforcement regarding her actions, the defendant lied about the diversions and persisted in her false story that she was engaged in a study with a well-known university. The defendant engaged in obstructionist conduct by producing to law enforcement a false e-mail that she stated came from a friend who asked her to participate in the research. The defendant created the false e-mail herself using a fictitious e-mail account she created in the name of this alleged friend.
“Medical professionals who criminally abuse their positions of trust will be held accountable,” said United States Attorney Cole Finegan. “Our office’s priority is to protect the public and the health care system our citizens rely upon for their medical care.”
“The FDA oversees the U.S. drug supply to ensure that it is safe and effective, and those health care professionals who fraudulently obtain needed medicines from patients put those patients’ health at risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “Today’s announcement should serve as a reminder that such conduct will not be tolerated.”
"The results of this investigation and corresponding sentence of Ms. Nickel-Tangeman reveal once more the seriousness of the overdose epidemic and opioid crisis facing our nation when even a nurse is susceptible to the temptation these drugs provide," said DEA Denver Acting Special Agent in Charge David Olesky.
U.S. District Court Judge Christine M. Arguello issued the sentence on November 30, 2021.
The investigation in this case was conducted by the Food and Drug Administration, Office of Criminal Investigations, and the Drug Enforcement Administration.
Assistant United States Attorney Anna Edgar prosecuted this matter.
Case No. 21-cr-00214-CMA
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Cole Finegan Sworn in as United States AttorneyRead the Press Release
DENVER – Cole Finegan was sworn in as the United States Attorney for the District of Colorado. In a private ceremony early Wednesday morning, Mr. Finegan took the oath of office before United States District Court Judge Christine M. Arguello.
“I am honored to serve the people of Colorado as United States Attorney,” said U.S. Attorney Finegan. “I am excited to work with the talented and dedicated staff of this office, as well as our colleagues in law enforcement and the defense bar.”
As United States Attorney, Mr. Finegan is the chief federal law enforcement officer in the State of Colorado. He oversees all federal criminal prosecutions, as well as all civil litigation undertaken on behalf of the United States Government. He leads an office of more than 160 attorneys and professional staff members, in addition to approximately 20 government contractors. The U.S. Attorney’s Office is headquartered in Denver, with branch offices in Grand Junction and Durango.
U.S. Attorney Finegan was nominated by President Biden on September 28, 2021, and confirmed by the United States Senate on November 19, 2021. He rejoins public service from private practice at a global law firm, where he served as the Regional Managing Partner for the Americas, as well as the Denver Managing Partner. Previously, U.S. Attorney Finegan was the Chief of Staff for the Denver Mayor as well as the Denver City Attorney, positions he held simultaneously. He has also served as Chief Legal Counsel in the Office of the Governor for the State of Colorado.
During his career, he has served on numerous charitable boards, including the Colorado ‘I Have A Dream’ Foundation, Children’s Hospital Colorado, and the Denver Public Schools Foundation. He also helped create Denver’s first Family Justice Center dedicated to fighting against domestic violence.
A formal investiture ceremony will be scheduled at a future date.
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Cleveland Man Found Guilty of Robbery and Evidence TamperingRead the Press Release
U.S. Attorney Bridget M. Brennan announced that a federal jury today returned guilty verdicts against Defendant Tandre Buchanan, Jr., 24, of Cleveland, following a three-day trial before Judge Donald C. Nugent in Cleveland. Buchanan was found guilty of interference with commerce by means of robbery and tampering with evidence.
According to court documents and evidence presented at trial, on May 30, 2020, Buchanan, wearing a bright orange jacket, head covering and shoes, threw an object that shattered a large window at Colossal Cupcakes on Euclid Avenue in downtown Cleveland. Buchanan then entered the business through the broken window and encountered the store owner and employees, who locked themselves in a bathroom to call for help.
Buchannan removed a chair from the shop and exited through the same window. Using the chair, Buchanan repeatedly smashed a second window until it finally shattered and fell out. Court documents state that multiple individuals then entered the business through the broken window, destroyed the shop’s interior and stole several items, including store inventory and iPads, all while Buchanan was smashing the second window.
According to court records, text messages regarding the incident were later recovered from Buchanan’s phone. An individual sent a text to Buchanan’s asking, “what the hell they do with all the cupcakes?” Buchanan replied, “man I was giving them out.”
The jury also found Buchanan guilty of evidence tampering after evidence showed Buchanan disposed of the bright orange clothing he wore in an attempt to conceal his identity and participation in the incident. Buchanan was ultimately identified and arrested based on multiple identifications made from photos released to the public.
Buchanan is scheduled to be sentenced on March 23, 2022. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by the Cleveland FBI with the help of the Cleveland Police Department. This case is being prosecuted by Assistant United States Attorney Scott C. Zarzycki.
Clark Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Clark, South Dakota, man convicted of Receipt and Distribution of Child Pornography was sentenced on November 29, 2021, by U.S. District Judge Charles B. Kornmann.
The Defendant, Anthony Dialo Holmes, age 37, was sentenced to 120 months in federal prison, followed by 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Anthony Holmes was indicted by a federal grand jury on August 17, 2020. He pled guilty on August 31, 2021.
The conviction stemmed from incidents between on or about September 1, 2019, and May 22, 2020, when Anthony Holmes knowingly received and distributed child pornography. He used his Kik Messenger social media account to send and receive files depicting the minors engaged in sexually explicit conduct.
This case was investigated by the South Dakota Division of Criminal Investigation and Homeland Security Investigations. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Anthony Holmes was immediately turned over to the custody of the U.S. Marshals Service.
Cedar Rapids Man to Spend More than Seven Years in Federal Prison for COVID-19 Fraud and Illegally Possessing a GunRead the Press Release
A man who received COVID-19 relief funds that he was not entitled to and unlawfully possessed firearms was sentenced November 29, 2021, to more than seven years in federal prison.
Dannish Dontreal Robertson, age 22, from Cedar Rapids, Iowa, received the prison term after a May 21, 2021 guilty plea to one count of wire fraud and one count of possession of a firearm by an unlawful user of a controlled substance.
Information from a plea agreement and sentencing showed that, in June 2020, fraudulent applications in Robertson’s name were submitted for loans intended to aid small businesses struggling with the economic effects of the
COVID-19 pandemic. Robertson received more than $30,000 in loan funds because of the false applications. Robertson then sent some of the money to other participants in the scheme and spent some of it himself at high-end retailers.
Robertson is a convicted felon and an unlawful drug user. He admitted to unlawfully possessing five firearms between 2018 and 2020. This included possessing a firearm during an incident on July 28, 2018, in which Robertson ran from a Cedar Rapids police officer while clutching a gun in his waistband. Robertson discarded the gun behind a house. The loaded gun was not found until August 11, 2018, when a resident found it and reported it to the police.
Robertson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Robertson was sentenced to 87 months’ imprisonment. He was ordered to make $20,607 in restitution to a Small Business Administration lending institution and $10,000 to the Small Business Administration. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
This prosecution is an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to COVID-19. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
This case was also brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Robertson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and investigated by the Federal Bureau of Investigation and the Small Business Administration - Office of Inspector General, as well as the Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 21-CR-008, 21-CR-009.
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Cedar Rapids Man Who Robbed Victim at Gunpoint Sentenced to More than Eight Years in PrisonRead the Press Release
A man who committed a robbery and operated his car while intoxicated with a firearm in his possession was sentenced on November 29, 2021, to more than eight years in federal prison.
Rickey Bernard Wright, age 35, from Cedar Rapids, Iowa, received the prison term after a June 2, 2021 guilty plea to one count of possession of a firearm by a felon.
Information at sentencing showed that on November 17, 2019, Cedar Rapids police officers responded to a 911 call reporting that Wright had robbed a victim at gunpoint behind a liquor store in Cedar Rapids. The victim described Wright’s car, his clothing, and the firearm Wright used. The victim had to drive his car into the back of the liquor store to get away. Approximately a half hour later, police officers responded to a second 911 call reporting a car doing donuts on the grounds of a registered historical site. After arriving at the site, officers discovered that Wright had crashed his car through a fence. Wright was intoxicated and could not walk straight. Officers found the firearm that the victim of the robbery had described on the driver’s side floorboard in the car.
Wright was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Wright was sentenced to 104 months and 28 days’ imprisonment. He was ordered to make $200 in restitution to the victim of the robbery. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Wright is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Kyndra Lundquist and Cedar Rapids Safe Streets Task Force. The task force is composed of representatives from the Federal Bureau of Investigation and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-044.
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Cedar Rapids Felon Sentenced to Nearly Five Years in Prison After Shooting at a VehicleRead the Press Release
A Cedar Rapids, Iowa, convicted felon who shot a firearm at a vehicle was sentenced November 30, 2021, to nearly five years in federal prison.
Nicholas Campbell-Scott, age 24, from Cedar Rapids, Iowa, received the prison sentence after a May 13, 2021 guilty plea to possession of a firearm by a felon.
Evidence at the plea and sentencing hearings showed that, in December 2020, Campbell-Scott fired several shots at a vehicle. While there were people nearby, no one was injured but the vehicle was damaged. Officers found Campbell-Scott a few blocks away from the shooting. He was travelling as a passenger in a vehicle. Officers found the gun used in the shooting underneath of his seat. Campbell-Scott has at least four prior felony convictions, some of which involved violence.
Campbell-Scott was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Campbell-Scott was sentenced to 57 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term and pay a $100 special assessment fee. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. This case was brought as part of Project Safe Neighborhoods (PSN) through a cooperative effort of the Waterloo Police Department, FBI Safe Streets Task Force, and the Bureau of Alcohol, Tobacco, Firearms & Explosives. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime.
Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2017.
Follow us on Twitter @USAO_NDIA.
California Parents Agree to Plead Guilty in College Admissions CaseRead the Press Release
BOSTON – Two Silicon Valley parents have agreed to plead guilty in connection with their involvement in the college admissions case.
Gregory Colburn, M.D., 64, and Amy Colburn, 52, of Palo Alto, Calif., have agreed to plead guilty to one count of conspiracy to commit mail and wire fraud and honest services mail and wire fraud. Plea hearings for the defendants have not yet been scheduled by the Court. The Colburns were previously scheduled for trial on Jan. 13, 2022.
The Colburns will plead guilty to their roles in a scheme to defraud The College Board by paying William “Rick” Singer $25,000 to bribe Igor Dvorskiy, a corrupt test administrator, to allow Mark Riddell, a corrupt test “proctor,” to secretly correct the Colburns’ son’s SAT exam answers to obtain a fraudulently inflated score.
Singer, Dvorskiy and Riddell have pleaded guilty for their respective roles in the scheme.
Under the terms of the plea agreements, each of the defendants has agreed to sentences, subject to the Court’s approval, of eight weeks in prison, one year of supervised release with 100 hours of community service and a fine of $12,500.
Gregory Colburn and Amy Colburn will be the 36th and 37th parents in the college admissions case to either plead guilty or be convicted by a jury following trial, respectively.
Case information, including the status of each defendant, charging documents and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
The charge of conspiracy to commit mail and wire fraud and honest services mail and wire fraud provides for a sentence of up 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Kristen A. Kearney, Ian J. Stearns and Leslie Wright of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
California Man Pleads Guilty to Wire FraudRead the Press Release
CONCORD - Jesse Hernandez, 58, of Los Angeles, California pleaded guilty on Tuesday in federal court to wire fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May of 2019, a Portsmouth- based marketing company (TH) was retained by a client for a marketing campaign to help introduce a new ice cream product in the San Francisco, California area. The events would include a specialty-branded truck that was wrapped in the product’s marketing art and contained multiple specifications for ease of service and proper storage of the ice cream. TH vetted three companies for the job of creating the truck. Hernandez represented a company called Mobie Experiential Trucks (Mobie). Hernandez appeared to be capable and less expensive than the next vendor. He provided a slide presentation to TH personnel and talked through it over the telephone. The images in the presentation were later determined to display products done by other companies and pictures taken from the internet by Hernandez to misrepresent his experience and work.
TH selected Hernandez and Mobie as the company to perform the work in mid-June of 2019 with a delivery date of July 9, 2019. Hernandez demanded full payment prior to delivery of the truck. TH sent a check in the amount of $36,941 on July 3, 2019. On July 8, 2019, TH personnel traveled to California to retrieve the truck. The defendant never delivered any truck and was unresponsive to inquiries from TH.
After federal investigators became involved in the case in the fall of 2019, they interviewed Hernandez. Hernandez stated that he received the check from TH, deposited the funds, and used them for purposes unrelated to the TH truck. He acknowledged that he was not going to deliver the truck.
Hernandez is scheduled to be sentenced on March 8, 2022. As part of his plea agreement, Hernandez agreed to pay restitution to TH in the amount of $46,615.29.
“Fraudsters can use a host of different methods to steal from their victims and we all must remain vigilant to protect ourselves from scammers,” said Acting U.S. Attorney Farley. “This defendant’s fraud scheme used lies and misrepresentations to defraud a New Hampshire company out of thousands of dollars. Thanks to the hard work of the FBI, this schemer has been held responsible for his criminal conduct.”
“Jesse Hernandez defrauded a Portsmouth, NH marketing company out of tens of thousands of dollars by failing to deliver on his promises, while also misrepresenting his experience and work. Today, his lies finally caught up with him and he accepted responsibility for this fraudulent scheme,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Despite these challenging times we are all navigating, scammers are still doing everything they can to defraud people of their hard-earned money and we want everyone to know that the FBI is doing everything we can to make sure they don’t succeed.”
This matter was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Charles Rombeau.
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Cheyenne Felon Arrested on Federal Firearm ChargesRead the Press Release
United States Attorney Bob Murray announced today that ANTHONY PIERCE UNOCIC, age 52, of Cheyenne, Wyoming was arrested on a complaint and later indicted for being a felon in possession of firearms and ammunition and for possession of a firearm not registered in the National Firearms Registration and Transfer Record.
Unocic appeared before Federal District Court Chief Magistrate Judge Kelly H. Rankin on November 22, 2021, for an arraignment hearing and pleaded not guilty. Unocic was remanded to the custody of the United States Marshals Service, and a jury trial has been set for January 24, 2022, before Federal District Court Chief Judge Alan B. Johnson. These crimes carry a term of up to 40 years imprisonment, up to six years of supervised release, and up to $1 million in fines and $200 in special assessments.
This crime was investigated by the Bureau of Alcohol, Tobacco and Firearms, Homeland Security Investigations, and the United States Postal Inspection Service. The case is being prosecuted by Assistant United States Michael J. Elmore.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case Number: 0:21-mj-00065-ABJ
Brooklyn Man Sentenced to 43 Years’ Imprisonment for Armed Robberies of Convenience Stores in QueensRead the Press Release
Earlier today, in federal court in Brooklyn, Elgin Brack was sentenced by United States District Judge Eric N. Vitaliano to 43 years’ imprisonment for his role in the armed robberies of four convenience stores in Queens. Elgin Brack was convicted following a two-week trial in March 2020 of three counts of robbery, one count of attempted robbery, one count of conspiracy to commit robbery, one count of discharging a firearm during a crime of violence and three counts of brandishing a firearm during a crime of violence. As part of his sentence, the Court also ordered Elgin Brack to pay $1,264,536.86 in restitution. Elgin Brack’s co-defendant, Scott Brack, pleaded guilty in November 2019 for his participation in the robbery conspiracy and is awaiting sentencing.
Breon Peace, United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives, New York Division (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“With today’s sentence, the defendant is deservedly punished for brutally shooting an innocent employee in the head and hand, and for committing violent armed robberies of convenience stores that jeopardized the safety of innocent people,” stated United States Attorney Peace. “This Office will continue to vigorously prosecute defendants like Brack who engage in gun violence that threatens the safety of the community and endangers customers and hardworking store employees.”
“Our NYPD officers work tirelessly to prevent and fight the kind of violent crime that threatens the fabric of life for everyone in our city. This sentence today strengthens our commitment to the public and highlights the joint work of our NYPD officers, law enforcement partners and prosecutors from the United States Attorney’s Office in the Eastern District of New York in achieving a measure of justice in this case,” stated NYPD Commissioner Shea.
During the early morning hours of November 26, 2018, Elgin Brack robbed at gunpoint a Duane Reade store, a 7-Eleven, and two Rite-Aid stores. During each robbery, Elgin Brack pretended to make a purchase. When the store employee opened the cash register drawer to complete the sale, the defendant brandished a .357 Magnum revolver, pointed it at the cashier and demanded money. During the first robbery, the defendant shot the Duane Reade store clerk in the hand and the head and then fled emptyhanded. The victim survived the shooting. After each robbery, Elgin Brack was picked up by a getaway car driven by his uncle and co-defendant Scott Brack.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Jonathan Siegel and Jonathan P. Lax are in charge of the prosecution. Assistant United States Attorney Tanisha R. Payne of the Office’s Asset Recovery Section is handling the forfeiture matters.
The Defendant:
ELGIN BRACK
Age: 24
Brooklyn, New YorkCo-Defendant Who Previously Pleaded Guilty:
SCOTT BRACK
Age: 51
Bronx, New YorkE.D.N.Y. Docket No. 18-CR-684 (ENV)
Box Elder man admits assault with intent to commit murder in shooting on the Rocky Boy’s Indian ReservationRead the Press Release
GREAT FALLS – A Box Elder man admitted allegations today that he tried to murder another man by shooting him on the Rocky Boy’s Indian Reservation in 2019, U.S. Attorney Leif M. Johnson said.
Dakota Houle, 25, pleaded guilty to assault with intent to commit murder, assault with a dangerous weapon, assault resulting in serious bodily injury and use of a firearm during a crime of violence. Houle maintained his not guilty plea to a charge of kidnapping and is pending trial on that crime. Houle faces a maximum of 20 years in prison, a $250,000 fine and three years of supervised release on the crime of assault with intent to commit murder and a mandatory 10 years to life in prison, consecutive to any other term of imprisonment, a $250,000 fine and five years of supervised release on the firearms crime.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for April 6, 2022. Houle was detained pending further proceedings.
The government alleged in court documents that on March 17, 2019 in Box Elder, located on the Rocky Boy’s Indian Reservation, Houle, another male, identified as Male 1, and two females were at a residence. A Facebook messenger account was used lure John Doe to the residence. Shortly after Doe arrived, Houle and Male 1 attacked and beat Doe, robbed him and threatened to kill him. Male 1 told Doe that they were going to take him “for a ride in the mountains.” Everyone present, including Doe, understood that meant they were going to take Doe to the mountains to kill him.
Doe was forced at gun point into the front-passenger seat of his own car, while Houle sat in the rear passenger-side seat with a shotgun behind Doe. The two females were passengers. Male 1 drove the car toward the mountains as Doe pleaded for his life. Doe reached over and jerked the steering wheel, causing the car to go into a ditch. Doe jumped out and attempted to escape. Male 1 shouted at Houle that Doe was “getting away” and to “shoot” him. Houle got out of the car and shot Doe, intending to kill him. Houle, Male 1 and the two females fled the scene on foot. Doe suffered serious life-threatening injuries and has permanent damage as a result of the shooting.
Assistant U.S. Attorneys Jared C. Cobell and Lori Harper Suek are prosecuting the case, which was investigated by Chippewa Cree Law Enforcement Services and the FBI.
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Bloods Gang Member Sentenced to Life in Prison for Murders in Newport NewsRead the Press Release
NEWPORT NEWS, Va. – A New York man was sentenced today two consecutive terms of life in prison for the murders of two men in Newport News in June and July 2014.
According to court documents, Mark Anthony Skeete, a.k.a. Mark Brown, 33, was a member of the Nine Trey Gangsters, an offshoot of the California-based “Bloods” street gang. In June 2014, Skeete came to Virginia to facilitate and profit from the prostitution of adult women in the Richmond area. On June 28, 2014, Skeete and others traveled to Newport News to facilitate and profit from the prostitution of a woman from New York. When a client of the woman was unable to pay, Skeete shot and killed him to maintain his position as part of the Nine Trey enterprise.
After the June 2014 murder, Skeete and others fled to North Carolina. Skeete and others then returned to Newport News and killed another man on July 16, 2014 during a drug transaction. Skeete also robbed the victim of money, drugs, and a cell phone. Shortly thereafter, Skeete returned to Richmond. On September 17, 2014, Skeete, a previously convicted felon, possessed a firearm in Richmond that was later forensically linked to the Newport News murders. Cartridge casings recovered from the June and July 2014 murder scenes revealed that the same Ruger .45 caliber firearm recovered on September 17, 2014 in Richmond was the weapon used in both of those murders.
Following the two murders in this case, Skeete shot and killed two other individuals in Richmond in September 2014. He was sentenced in state court to 75 years in prison for those murders.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.
This investigation was conducted by the FBI’s Peninsula Safe Streets Task Force, a partnership that includes the FBI, Virginia State Police, Hampton Police Division, James City County Police Department, and Newport News Police Department. This task force investigates the most violent criminal enterprises operating on the Virginia Peninsula. Tips regarding gang activity and other violent crimes in the region can be reported to the FBI at 1-800-CALL-FBI or https://tips.fbi.gov/.
Assistant U.S. Attorneys Lisa McKeel and Brian Samuels and former Managing Assistant U.S. Attorney Howard J. Zlotnick prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:19-cr-62.
Batavia Man Previously Convicted of Possessing Child Pornography Is Going Back to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Matthew Barber, 53, of Batavia, NY, who was convicted of possession of child pornography and violating supervised release, was sentenced to serve 147 months in prison by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorneys Aaron J. Mango and Michael DiGiacomo, who handled the case, stated that in April 2007, Barber was convicted on a federal charge of possessing child pornography and sentenced to serve 74 months in prison and five years’ supervised release. Barber’s supervised release was revoked on July 5, 2017, after he was unsuccessfully discharged from sex offender treatment. As a result of this violation, Barber was sentenced to six months in prison and five years of supervised release.
On May 20, 2020, Barber was found in possession of and using a cell phone and a USB device to view child pornography. A forensic examination of the cell phone and USB device recovered over 1,000 images and 200 videos of child pornography on the two devices. Barber was subsequently charged and convicted of possession of child pornography.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Cheektowaga Police Department, under the direction of Chief Brian Gould; the Batavia Police Department, under the direction of Chief Shawn Heubusch; and the New York State Department of Corrections and Community Supervision, under the direction of Acting Commissioner Anthony J. Annucci.
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Barge Company Will Pay over $15 Million for Injuries to Natural Resources Resulting from Oil Spill in Houston Ship ChannelRead the Press Release
Houston, Texas-based Kirby Inland Marine LP has agreed to pay $15.3 million in damages and assessment costs under the Oil Pollution Act to resolve federal and state claims for injuries to natural resources resulting from an oil spill from a Kirby barge, after a collision Kirby caused.
The United States and Texas concurrently filed a civil complaint along with a proposed consent decree. The complaint seeks money damages and costs under the Oil Pollution Act for injuries to natural resources resulting from Kirby’s March 2014 discharge of approximately 4,000 barrels (168,000 gallons) of oil from one of its barges into the Houston Ship Channel at the Texas City “Y” crossing. The complaint alleges that the spill resulted from a collision that occurred while a Kirby towboat, the Miss Susan, attempted to push two 300-foot-long oil barges across the Houston Ship Channel in front of the oncoming M/V Summer Wind, a 585-foot-long deep-draft bulk cargo ship that was already underway in the Channel.
The oil flowed from the Houston Ship Channel into Galveston Bay and the Gulf of Mexico, polluting waters and washing onshore from the collision site down to Padre Island National Seashore near Corpus Christi. The oil spill caused significant impacts and injuries to the Texas coastline including the wildlife refuge on Matagorda Island, and to aquatic and terrestrial habitats, as well as to dolphins and migratory birds. The oil spill also forced the closure of the Houston Ship Channel and disrupted recreational uses of the Texas coastline, resulting in lost recreational opportunities from Galveston-area beaches to beaches as far south as Padre Island National Seashore. Kirby, the Coast Guard, and the State were involved in extensive response and cleanup efforts, and Kirby has cooperated in the assessment of injuries to natural resources.
“All oil transporters must take care to operate safely and prevent spills into our nation’s waters,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “This case illustrates that the stakes are high, the harms are serious, and the United States and its state partners will diligently pursue and secure compensation for injuries to natural resources resulting from oil spills.”
“We are pleased to join our co-trustees to restore vital habitats, dolphins, birds and recreational areas injured by this oil spill,” said Director Nicole LeBoeuf of National Oceanic and Atmospheric Administration (NOAA)’s National Ocean Service. “Local communities and economies depend on resilient coastal ecosystems, and we look forward to working with the public on projects to restore them.”
“The Texas City Y oil spill impacted shoreline and marsh habitat on Matagorda Island, which is part of the Aransas National Wildlife Refuge,” said Amy Lueders, the Service’s Southwest Regional Director. “This settlement will provide for restoration of these injured resources as well as helping to recover shorebirds and other birds and their habitats impacted by the oil and cleanup activities.”
Under the proposed consent decree, Kirby will pay $15.3 million as natural resource damages for the spill, which the federal and State trustees will jointly use to plan, design and perform projects to restore or ameliorate the impacts to dolphins and other aquatic life, birds, beaches, marshes, and recreational uses along the Texas coast. Kirby also has been paying the federal and State trustees for their assessment work and will reimburse the last remaining unpaid costs, as required under the Oil Pollution Act.
Today’s action was filed by the Department of Justice and the Office of the Texas Attorney General on behalf of the federal and State trustees for natural resources. The designated federal trustees for the natural resources impacted by Kirby’s oil spill are the U.S. Department of Commerce through the NOAA and the U.S. Department of the Interior through the U.S. Fish and Wildlife Service and the National Park Service. The designated State trustees are the Texas General Land Office, the Texas Commission on Environmental Quality, and the Texas Parks and Wildlife Department. The federal and State trustees have worked together to perform their injury assessment work and are engaged in joint restoration planning efforts.
In a related Clean Water Act enforcement action in 2016, the United States on behalf of the Coast Guard secured a settlement with Kirby for $4.9 million in civil penalties and injunctive relief measures to improve the company’s operations to help prevent future spills.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Baltimore Man Sentenced to Federal Prison for Conspiring to Sell Stolen Goods and Tax FraudRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced James Bender, age 36, of Baltimore, Maryland to one year and one day in federal prison, six months of home detention, and three years of supervised release, for federal conspiracy and tax fraud charges.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore.
According to his guilty plea, from 2014 through August 2019, Bender controlled three eBay accounts, in the names of HiddenGemFurniture (HGF), EddiesAffordableGear (EAG), and AffordableGoodies4You (AG). EAG and AG offered sports-related merchandise for sale, including jerseys and shirts. Bender also used, operated, and controlled related PayPal accounts.
Bender admitted that beginning in 2014 he agreed to allow a good friend and co-defendant, Saurabh Chawla, and a relative of Chawla’s, SC2, to sell goods and merchandise through Bender’s eBay accounts. Chawla’s eBay account had previously been suspended due to security concerns. From May 2014 through August 2019, Bender and Chawla conspired so Chawla could use Bender’s eBay and PayPal accounts to sell stolen goods and merchandise.
As detailed in the plea agreement, in furtherance of the fraud scheme, Bender and Chawla repeatedly deceived online platforms such as Amazon, eBay, as well as the manufacturers and distributors, as to the source of the goods and merchandise being sold by Bender and Chawla. More than $3 million of these goods and merchandise had been stolen, including more than $125,000 of iPods that had been stolen from a New Mexico school district and intended for underprivileged children. In 2018, Chawla and Bender sold more than $550,000 of goods and merchandise that had been stolen from a Delaware FedEx facility. As part of his participation in the fraud scheme, Bender received more than $10,000 per year from the eBay sales of stolen goods and merchandise.
Bender further admitted that he filed false tax returns for the tax years 2014 through 2018, which falsely inflated the gross receipts and cost of goods sold of Bender's businesses. In each of these years, Bender reported as his gross receipts amounts that had actually been generated by Chawla's sales through his eBay stores, and reported as his cost of goods sold the difference between gross receipts and the amount Chawla paid him for the use of his eBay stores. As a result, Bender engaged in significant misstatements on his tax returns for each year. Bender also subscribed to additional false information on his tax returns, including overstating his postage expenses. In total, Bender stipulates that he failed to pay the United States an additional $36,518 in taxes due and owing for the tax years 2014 to 2018.
As part of the conspiracy to defraud, Chawla purchased stolen Apple products from Kristy Stock from 2012 to 2018. Stock was a New Mexico public school employee responsible for overseeing a program to provide Apple iPods to school children with the intent to benefit underprivileged Native American children in New Mexico. Stock stole more than 3,000 iPods purchased by the school district and sold them to Chawla. Chawla initially purchased the iPods from Stock on eBay, and they later dealt directly with each other, in emails, texts, and phone calls. Stock admitted that she received more than $800,000 in illegal proceeds from selling stolen iPods worth more than $1 million. In 2019, Chawla purchased Apple products that he believed had been stolen by a different person working at another school district in New Mexico, including 25 iPads for $5,000 in May 2019. After his relative received the stolen goods, Chawla listed them for sale online through eBay at a substantial markup.
Co-defendants Saurabh Chawla, age 36, of Aurora, Colorado and Joseph Kukta, age 45 of Laurel, Delaware, were sentenced to 66 months and 42 months in federal prison; respectively. Additionally, Chawla was sentenced to pay restitution to the Internal Revenue Service in the amount of $713,619, and to sign an order of forfeiture requiring him to forfeit a 2013 Tesla Model S, $2,308,062.61 from accounts held in his name, and the sale of property in Aurora, Colorado. Kukta was ordered to pay $1,101,743.91 in restitution and forfeiture of $1,880,000.
Co-defendant Kristy Stock, age 46, of Waterflow, New Mexico is scheduled to be sentenced in 2022.
United States Attorney Erek L. Barron commended the IRS-Criminal Investigation and HSI for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Harry M. Gruber and Paul A. Riley, who prosecuted the case.
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Baltimore Drug Dealer Sentenced to More Than Three Years in Federal Prison for Federal Narcotics Trafficking ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake sentenced William Diggs, age 30, of Baltimore, Maryland to 42 months in federal prison, followed by three years of supervised release, for conspiracy to distribute, possession with the intent to distribute, and the distribution of crack cocaine.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to his guilty plea, from December 2019 to September 2020, Diggs conspired with others to possess, distribute, and sell crack cocaine in the area of the 2600 block of Greenmount Avenue in Baltimore, Maryland. As a member of a drug trafficking organization (“DTO”), Diggs sold crack cocaine, including to two individuals who happened to be confidential informants for law enforcement.
Over the course of four drug transactions, Diggs sold 42 vials of cocaine base as well as an eighth of an ounce of crack cocaine to an ATF confidential informant. Additionally, during one drug transaction, the confidential informant asked Diggs if they could purchase a firearm. Diggs told the informant they could purchase a firearm for $200 when he gained possession of the firearm, although he ultimately did not proceed with the firearm transaction.
As stated in his plea agreement, a second confidential informant witnessed Diggs and two co-conspirators in a Baltimore rowhouse where the confidential informant saw several firearms. Diggs later admitted the firearms were possessed in furtherance of the drug conspiracy.
The Baltimore City Police Department’s Drug Analysis Unit confirmed that the substances sold by Diggs contained cocaine base.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the ATF, the Baltimore Police Department, and the Maryland Attorney General’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Zachary Stendig, Lindsey N. McCulley and Special Assistant United States Attorney Lindsay DeFrancesco, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach
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Ash Grove Man Sentenced for Illegal Firearms Stolen from NeighborRead the Press Release
SPRINGFIELD, Mo. – An Ash Grove, Missouri, man was sentenced in federal court today for illegally possessing 10 firearms, three of which were stolen during his burglary of a neighbor’s house.
Jason B. Roberts, 44, was sentenced by U.S. District Judge M. Douglas Harpool to nine years in federal prison without parole.
On June 17, 2021, Roberts pleaded guilty to being a felon in possession of firearms.
Law enforcement officers executed a search warrant at Roberts’s residence on April 7, 2020. They found three rifles and a jewelry box that Roberts admitted he stole during the burglary of a neighbor’s house. Officers also found seven other firearms and approximately 12 grams of methamphetamine.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Roberts has two prior felony convictions for being a felon in possession of a firearm, three prior felony convictions for forgery and a prior felony convictions for possessing methamphetamine with the intent to distribute.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Greene County, Mo., Sheriff’s Department, the FBI, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.