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Tuesday 16 November 2021
Alabama Man Sentenced to 22 Years After Conviction of Illegal Possession of Meth, 14 Firearms and Stolen Police Body ArmorRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that on Monday, November 15, 2021, Judge Christopher A. Boyko sentenced Brandon L. Sheridan, 35, of Mobile, Alabama, to 22 years in prison. A jury found Sheridan and codefendant Justin Martin, 34, of Akron, guilty of possession with the intent to distribute methamphetamine and possession of firearms in furtherance of a drug trafficking crime in July of 2021.
According to court documents, on January 10, 2018, law enforcement officers executed a search warrant at a residence on Lake Street in Akron. An investigation revealed that Martin and Sheridan were using the address as a base of operations to conduct drug trafficking activities. During the execution of the warrant, officers encountered Martin and Sheridan inside the residence and located approximately 1 kilo of methamphetamine, 14 firearms (four of which were reported stolen), ammunition, approximately $7,000 in cash drug packaging materials and paraphernalia.
Officers also recovered law enforcement-issued body armor previously reported stolen from a Cuyahoga Falls police officer during a residential burglary.
Judge Boyko sentenced codefendant Justin Martin to 23 years imprisonment on October 29, 2021.
This case was investigated by the Federal Bureau of Investigation and the Akron Police Department. This case is being prosecuted by Assistant U.S. Attorneys Aaron P. Howell and Peter Daly.
Akron Man Found Guilty of Distributing Fentanyl that Led to Fatal OverdoseRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that on Monday, November 15, 2021, a federal jury returned guilty verdicts against Defendant Quentin D. Watson, 35, of Akron, Ohio, following a week-long trial before Judge Pamela A. Barker in Cleveland. Watson was found guilty of distributing a fentanyl substance that led to a fatal overdose, possession with intent to distribute methamphetamine, possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and evidence presented at trial, on June 24, 2020, Watson distributed a fentanyl substance to a woman identified in court documents as M.M., who ingested the substance, overdosed and died. Later, in October of 2020, Akron Police stopped and searched a vehicle that Watson was driving and found various amounts of fentanyl, methamphetamine and a 9mm pistol.
Watson faces a mandatory minimum of at least 25 years imprisonment and a max possible sentence of life. A sentencing date has not been scheduled.
This case was investigated by the Akron Police Department, Akron Fire Department, Summit County Medical Examiner’s Office, Ohio Bureau of Criminal Investigation and the Federal Bureau of Investigation. This case is being prosecuted by Assistant United States Attorneys Aaron P. Howell and Christopher J. Joyce.
Aiken Man Sentenced to Ten Years in Federal Prison on Ammunition and Drug ChargesRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Aaron Shawayne Griffin, 29, of Aiken, was sentenced to ten years in federal prison after pleading guilty to felon in possession of ammunition and possession with intent to distribute methamphetamine.
Evidence presented to the court showed that on September 5, 2018, a deputy with the Lexington County Sheriff’s Department stopped Griffin for speeding. As the deputy approached the passenger side of the vehicle, he could smell the odor of marijuana coming from the vehicle. During a search of the vehicle, deputies located a backpack containing a large amount of cash, over 800 grams of methamphetamine, and two firearm magazines loaded with .40 caliber ammunition and 9mm ammunition.
Griffin’s prior record includes a 2010 simple possession of marijuana and resisting arrest and a 2015 misprision of a felony. Griffin is a validated gang member and was on probation at the time of the offense.
United States District Judge J. Michelle Childs sentenced Griffin to 120 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
This case was investigated by the Drug Enforcement Administration (DEA) and Lexington County Sheriff’s Department.
The case was prosecuted as part of the as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
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AUSA Maureen Sheehan-Balchon Receives the “Dick Thornburgh Award”Read the Press Release
PITTSBURGH – Assistant U.S. Attorney Maureen Sheehan-Balchon is the 2021 recipient of the Dick Thornburgh Award, Acting U.S. Attorney Stephen R. Kaufman announced today. Former U.S. Attorney Scott Brady established the annual award to recognize outstanding performance by an Assistant U.S. Attorney.
AUSA Sheehan-Balchon, of Westmoreland County, oversees the U.S. Attorney’s Johnstown branch office. She joined the office in March 2019 and is prosecuting several of the western District’s highest profile cases:
- U.S. v. John Bisbee et al. – Forty-two individuals were accused of bringing kilogram quantities of methamphetamine from Atlanta for distribution throughout northcentral Pennsylvania. It is the largest drug investigation and prosecution in the history of Clearfield County.
- U.S. v. Mikal Davis et al. – Thirty-two individuals were accused of conspiring to distribute and possess with intent to distribute heroin, cocaine, crack cocaine, fentanyl, and methamphetamine from April 2019 to July 2021.
- U.S. v. Jon Osewalt – Osewalt was indicted in September 2021 on charges of producing and possessing images of minors engaged in sexually explicit conduct.
- Operation Tri-County – This wiretap investigation resulted in charges against 20 individuals for conspiring to use the U.S. mail to receive kilogram quantities of cocaine for distribution in Lawrence County and surrounding counties from 2017 through May 2019.
AUSA Sheehan-Balchon received the award during an in-office Service Recognition Ceremony.
The Dick Thornburgh Award is presented annually to an outstanding federal prosecutor in the Western District of Pennsylvania who exhibits the commitment to justice and the highest ethical standards that were embodied by General Thornburgh throughout his career. Mr. Thornburgh was a former Attorney General of the United States, U.S. Attorney for the Western District of Pennsylvania, and Pennsylvania Governor.
The inaugural award was presented to AUSA Brendan T. Conway, Chief of the Major Crimes Section, on November 5, 2020.
$56 Million in Seized Cryptocurrency Being Sold as First Step to Compensate Victims of BitConnect Fraud SchemeRead the Press Release
On Friday, U.S. District Judge Todd W. Robinson granted a request from the U.S. Department of Justice and the U.S. Attorney’s Office for the Southern District of California for authority to liquidate approximately $56 million in fraud proceeds seized from the self-described “number one promoter” of BitConnect, a cryptocurrency, who consented to the seizure. This liquidation is the largest single recovery of a cryptocurrency fraud by the United States to date.
According to court documents, on Sept. 1, Glenn Arcaro, 44, of Los Angeles, pleaded guilty to participating in a massive conspiracy to defraud BitConnect investors in the United States and abroad, in which investors were fraudulently induced to invest over $2 billion. The BitConnect scheme is the largest cryptocurrency fraud scheme ever charged criminally.
With entry of the court’s interlocutory sale order, the government will begin the process of seeking to make whole victims of the BitConnect scheme by selling the cryptocurrency and holding the proceeds in U.S. dollars. The government will maintain custody of the seized proceeds in cryptocurrency wallets and intends to use these funds to provide restitution to the victims pursuant to a future restitution order by the court at sentencing.
All potential victims of the BitConnect scheme are encouraged to visit https://www.justice.gov/usao-sdca/us-v-glenn-arcaro-21cr02542-twr for information on rights they may possess as a victim, the opportunity to submit a victim impact statement, and to identify themselves as a potential victim.
Arcaro is scheduled to be sentenced on Jan. 7, 2022, and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and IRS-Criminal Investigation are investigating the case. The U.S. Postal Inspection Service is assisting with the liquidation of the cryptocurrency proceeds.
Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Daniel Silva, Mark W. Pletcher, Carl Brooker, and Lisa Sanniti of the Southern District of California are prosecuting the case. The Department of Justice’s Office of International Affairs provided indispensable assistance to the investigation.
Monday 15 November 2021
Zachary A. Myers Sworn in as the U.S. Attorney for the Southern District of IndianaRead the Press Release
INDIANAPOLIS – Today, United States District Court Chief Judge Tanya Walton Pratt swore Zachary A. Myers in as the United States Attorney for the Southern District of Indiana. President Joseph R. Biden nominated the veteran federal prosecutor to serve as U.S. Attorney and he was unanimously confirmed by the U.S. Senate.
“Every day, the dedicated professionals in this U.S. Attorney’s Office work tirelessly to enforce the law and defend the interests of the United States according to the law. I look forward to leading this outstanding team. I will work closely with our federal, state, and local partners to hold offenders accountable and to ensure fair and impartial administration of justice for all Americans. It is an honor and a privilege to serve the people of the Southern District of Indiana and of the United States,” said U.S. Attorney Zachary A. Myers.
As the chief federal law enforcement officer in the district, U.S. Attorney Myers will lead an office of approximately 42 Assistant U.S. Attorneys and 46 support professionals in the office’s criminal prosecutions, civil litigation, and to promote public safety throughout the Southern District of Indiana.
Prior to being sworn in as the new U.S. Attorney, Mr. Myers served as an Assistant United States Attorney for the District of Maryland, where he served since 2014. He worked in the Baltimore Division’s Major Crimes Unit and most recently in the District of Maryland’s National Security and Cybercrime Section, serving as the first Cybercrime Counsel for the District.
From 2011 through 2014, Mr. Myers served as an Assistant United States Attorney for the Southern District of Indiana, where he worked in the General Crimes Unit. He has led investigations, prosecutions, and appeals of a wide variety of federal offenses, with a focus on technology-facilitated crime, including cybercrimes, national security offenses, child exploitation, fraud, public corruption, violent crimes, and sex trafficking.
Prior to joining the U.S. Attorney’s Office, Mr. Myers was an attorney at an Indianapolis law firm. He was also a Legislative Correspondent in the Office of Congresswoman Julia M. Carson.
Mr. Myers grew up in Indianapolis. He earned his J.D. from the Georgetown University Law Center in 2008, his M.A. from the George Washington University in 2005, and his B.A. from Stanford University in 2003.
Woodlands pain doctor pays half million dollars for fraudulent PPP and billing allegationsRead the Press Release
HOUSTON - A 49-year-old local physician has agreed to pay $523,331 to settle allegations he submitted false claims for the placement of electro-acupuncture devices and for making false statements when applying for a loan from the Paycheck Protection Program (PPP), announced Acting U.S. Attorney Jennifer B. Lowery.
Dr. Emad Bishai is an anesthesiologist and pain management physician who practices in The Woodlands. Woodlands Pain Institute PLLC is his primary practice entity.
From July 12, 2017, to May 10, 2019, Bishai billed the Medicare and TRICARE programs 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. Neither Bishai nor his staff performed this surgical procedure. Instead, patients received devices used for electro-acupuncture. This only involved inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
In addition to the financial settlement, Bishai and Woodlands Pain Institute PLLC have agreed to a seven-year-period of exclusion from participation in any federal health care programs.
To date, the Southern District of Texas has resolved five similar cases, which included settlements from a Katy anesthesiologist, a Houston pain doctor, a Rockport chiropractor, a Houston chiropractor, and a Laredo pain doctor.
In addition to his false medical claims, Bishai allegedly made false statements when submitting an application to the PPP program in May 2020 on behalf of Woodlands Pain Institute PLLC. Specifically, the application included a question whether the applicant (or any individual owning more than 20% equity) is subject to an indictment, criminal information, arraignment or other means by which formal criminal charges are brought in any jurisdiction.
Bishai is 100% owner of Woodlands Pain Institute PLLC. When filling out the application, he falsely checked the box marked “No” and initialed his name beneath the question. However, at the time of the application, Bishai was facing criminal charges in Montgomery County arising from his practice of prescribing opioid medicines. As a result of his fraudulent application, Bishai received a loan to which he was not entitled.
The Department of Health and Human Services – Office of Inspector General and Defense Criminal Investigation Service conducted the investigation with the assistance of Qlarant, the Unified Program Integrity Contractor for Medicare. 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.
Virgin Islands Woman Convicted by Jury in Tax Fraud Scheme Sentenced to 45 Months of Incarceration, Ordered to Pay Restitution to I.R.S.Read the Press Release
St. Croix, VI – United States Attorney Gretchen C.F. Shappert announced that Jacinta Gussie, age 59 of St. Croix, Virgin Islands, was sentenced on November 12, 2021 by Federal District Court Judge Wilma A. Lewis to 3.75 years in prison for her part in a complex tax fraud scheme. Gussie must also serve a period of three years of supervised release and was ordered to pay $44, 561.11 in restitution to the Internal Revenue Service. Gussie was found guilty by a federal jury on June 15, 2021 after a six-day trial of Conspiracy to Defraud the United States; four counts of Theft of Government Money; and two counts of Aggravated Identity Theft.
According to court documents and evidence presented at the trial, from January 2011 to July 2012, Jacinta Gussie and others participated in a scheme to steal money from the United States Treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information of Virgin Islanders (i.e. name, social security number, and date of birth) used to electronically file falsified tax returns with a designation of refunds to the acquired bank accounts or debit cards. Defendant and her co-conspirators withdrew the deposited refunds. They subsequently spent the funds, using a debit card, or transferred the funds to other accounts, all for personal use. As a result of the scheme, approximately $44,561.11 of falsely-claimed returns were deposited into Gussie’s bank accounts. By means of the scheme, the defendants obtained over $400,000 in illegal tax refunds. The defendants also claimed additional refunds totaling in excess of $100,000 that were not paid.Of ten defendants charged in the tax fraud scheme, Gussie was the tenth defendant to be convicted. Nine others entered guilty pleas, six of whom have been sentenced. Remaining defendants Thema Liverpool, Nicolette Alexander and Lynell Hughes are pending sentencing.
The case is the culmination of years of investigative work by the Internal Revenue Service, Criminal Investigations, which conducted a probe into a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
Union County Man Admits Bribing Mail Carriers to Steal Credit CardsRead the Press Release
NEWARK, N.J. – A Union County, New Jersey, man today admitted his role in a scheme to bribe postal employees to steal credit cards from the mail, Acting U.S. Attorney Rachael A. Honig announced.
Syid Boyd, 26, of Union, New Jersey, pleaded guilty by videoconference before U.S. District Judge Stanley R. Chesler to a two-count Information charging him with bribery of U.S. Postal Service (USPS) employees and credit card fraud.
According to documents filed in this case and statements made in court:
Boyd recruited USPS employees to steal credit cards from the mail in exchange for cash bribes. Once Boyd had taken possession of the stolen credit cards and activated them by posing as the actual accountholders to whom the cards were originally mailed, he and others fraudulently used the stolen credit cards to purchase items, including electronics, at various retail stores throughout New Jersey.
Boyd faces a maximum term of imprisonment of 15 years for the bribery charge and 10 years for the credit card fraud charge. Each charge also carries a maximum fine of $250,000, in part.
Acting U.S. Attorney Honig credited the postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero, and special agents with the USPS-Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi, with the investigation leading to today’s guilty plea.
The government is represented by Jihee G. Suh, Deputy Chief of the Special Prosecutions Division in Newark.
Defense counsel: Brooke M. Barnett, Esq.
Two Mexican Natives Sentenced for Conspiracy to Distribute Methamphetamine and Heroin in the Central ValleyRead the Press Release
RESNO, Calif. — Antonio Valencia-Hernandez, 65, and Jose Reyes-Pineda, 48, natives and citizens of Mexico, were sentenced today to 12 years and three months and one and a half years in prison, respectively, for conspiring to distribute methamphetamine and heroin, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Valencia, Reyes, and co-defendants, Antonio Castellanos, 38, of Whittier, and Genaro Serrato-Calles, 49, a native and citizen of Mexico, have pleaded guilty to a two-year conspiracy to distribute methamphetamine and heroin in the Central Valley. Serrato had Valencia pick up about 11 pounds of methamphetamine from Reyes in Anaheim for distribution in Modesto. In addition, Valencia distributed a half-pound of heroin and a pound of methamphetamine during seven undercover transactions in Stanislaus and San Joaquin Counties.
Serrato is scheduled for sentencing on Dec. 13, 2021, and Castellanos is scheduled for sentencing on Jan. 18, 2022. Serrato and Castellanos face a maximum statutory penalty of life in prison, a statutory mandatory minimum prison term of 10 years, and a $10 million fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; Homeland Security Investigations; the Central Valley High Intensity Drug Trafficking Area (HIDTA) Task Force; the San Joaquin County Metropolitan Narcotics Task Force; the Stanislaus Drug Enforcement Agency; and the Orange County Sheriff’s Special Investigations Bureau. Assistant U.S. Attorney Karen Escobar with assistance from Assistant U.S. Attorney Melanie Alsworth.
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.
Two L.A.-Area Men Found Guilty of Federal Charges for Collecting Ransom Proceeds for Cross-Border Kidnapping ConspiracyRead the Press Release
LOS ANGELES – A federal jury today found two Los Angeles-area men guilty of collecting ransom payments for a criminal conspiracy in which multiple victims were kidnapped near the United States-Mexico border.
Edgar Adrian Hernandez Lemus, 23, of the Central-Alameda neighborhood in Los Angeles, was found guilty of one count of conspiracy and two counts of receiving money from a ransom demand for the release of a kidnapped person. Junior Almendarez Martinez, 23, of Watts, was found guilty of two counts of receiving money from a ransom demand for the release of a kidnapped person.
According to evidence presented at their three-day trial, the kidnapping incidents targeted victims who either were waiting or attempting to cross the border from Mexico into the United States. In each incident, the kidnappers offered to assist in smuggling the victims across the border from Mexico, but instead would hold them for ransom. The kidnappers insisted on ransom payments from the victim’s family members to release the victims.
From March 29 to June 1, 2021, the kidnappers used specific sections at Walmart and other stores in Southern California to meet with the family members to collect the ransom payments. After the payments were made, however, the kidnappers demanded additional money rather than releasing the victims.
Lemus and Almendarez traveled to these stores to pick up ransom payments from the family members of the kidnapped victims. During many of the ransom pickups, the family members of the kidnapped victims remained on the phone with members of the conspiracy who would direct them towards Lemus – who was often on the phone during the ransom pickups. At these stores, Lemus and Almendarez would enter and collect, or attempt to collect, ransom payments from kidnapped victims’ family members. The ransom payments picked up by defendants ranged from $12,000 to $30,000 in cash.
After the ransom pickups, Lemus and Almendarez would use Uber to transport the money, before eventually sending money to co-conspirators in Mexico via MoneyGram. The victims later were assaulted, drugged and released.
United States District Judge John F. Walter has scheduled a January 10, 2022 sentencing hearing, at which time Lemus will face a statutory maximum sentence of 11 years in federal prison and Almendarez will face a statutory maximum sentence of eight years in federal prison.
A co-defendant and fellow ransom collector, Francisco Javier Hernandez Martinez, 21, of the Central-Alameda neighborhood in Los Angeles, pleaded guilty on September 7 to one count of conspiracy. He faces a statutory maximum sentence of five years in federal prison at his sentencing hearing, which is scheduled for November 29.
The FBI investigated this matter. The South Gate Police Department and the Santa Barbara County Sheriff’s Office provided substantial assistance.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section are prosecuting this case.
Three Charged with Mailing Fraudulent Prize NoticesRead the Press Release
The U.S. District Court for the Eastern District of New York unsealed an indictment today charging a New York man, a Florida man and a Canadian national with running a fraudulent mass-mailing scheme that tricked consumers, many of whom were elderly and vulnerable, into paying fees for falsely promised cash prizes.
The indictment charges Shawn Phillips, 52, of British Columbia, Canada; Jeffrey Novis, 79, of Long Island, New York; and Phillip Priolo, 58, of Hallandale Beach, Florida, with conspiracy to commit mail fraud and wire fraud, and multiple counts of mail fraud and wire fraud.
“Elder fraud schemes present a serious threat to the financial security and the well-being of America’s seniors,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue to pursue and prosecute the perpetrators of these schemes.”
The indictment alleges that, from June 2013 to November 2016, Shawn Phillips ran a mail fraud scheme that mailed hundreds of thousands of prize notices that falsely claimed that victims were specially chosen to receive a large cash prize and would receive the prize if they paid a fee, ranging from approximately $20 to $40. Victims who paid the requested fee, however, did not receive the promised cash prize. Although the notices appeared to be personalized correspondence, they were, in fact, mass-produced, boilerplate documents that were bulk mailed to recipients whose names and addresses were on mailing lists. The indictment alleges that in 2016, Jeffrey Novis opened bank accounts for the purpose of depositing checks mailed by the victims of this scheme, and transmitting the funds to Phillips. The indictment further alleges that from 2013 through 2016, victims paid more than $10.8 million in response to these fraudulent prize notices.
The indictment further alleges that from March 2015 through December 2016, Jeffrey Novis and Phillip Priolo owned and controlled a similar mail-fraud scheme that mailed hundreds of thousands of the same type of fraudulent prize notices. The indictment alleges that during that time, victims paid more than $2.2 million in response to these fraudulent prize notices.
The scheme operated by Novis and Priolo used infrastructure shared by the Phillips scheme. All three defendants conspired with Sean Novis and Gary Denkberg, the operators of a direct-mail operation based out of Long Island, New York, to facilitate the printing, mailing and data-management for their mail-fraud schemes. Sean Novis and Denkberg have previously been indicted for their role in aiding and abetting these mail-fraud schemes.
“The defendants in this case allegedly operated a mass-mailing scheme that targeted older Americans — a trend Postal Inspectors unfortunately see on a regular basis,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group. “Today’s action should serve as a reminder that Postal Inspectors have a long history of protecting consumers, and will always be ready to bring individuals to justice for their crimes against the American public.”
Novis made his initial court appearance Nov. 9 before U.S. Magistrate Judge Steven L. Tiscione of the U.S. District Court for the Eastern District of New York. Priolo made his initial court appearance Nov. 9 before U.S. Magistrate Judge Lurana S. Snow of the U.S. District Court for the Southern District of Florida. If convicted, each charge carries a statutory maximum sentence of twenty years in prison along with a statutory maximum fine of $250,000 or twice the gross gain or gross loss from the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The government is represented by Trial Attorneys Bart Dunn and Ann Entwistle the Civil Division’s Consumer Protection Branch. The U.S. Postal Inspection Service Criminal Investigations Group provided investigative support.
The department’s extensive and broad-based efforts to combat elder fraud seeks to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors and other seniors who can use that information to protect themselves.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. Eastern time. English, Spanish and other languages are available.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Thomas Man Pleads Guilty to Conspiracy to Rob a St. Thomas Jewelry StoreRead the Press Release
St. Thomas, USVI – United States Attorney Gretchen C.F. Shappert announced today that Jamari S. Benjamin, a resident of St. Thomas, appeared before United States Magistrate Judge Ruth Miller in the District Court and entered a guilty plea to the charge of conspiracy to rob the Gems and Gold Corner jewelry store located in St. Thomas, V.I. He faces up to twenty years in federal prison. The sentencing date will be set by the Court.
According to Court documents, on Saturday, September 19, 2020, a white Suzuki Vitara arrived in the area of Gems & Gold Corner jewelry store located on the waterfront near Veteran’s Drive, St. Thomas, Virgin Islands. Benjamin was the driver of the white Suzuki Vitara. Two men wearing masks, exited the white Suzuki Vitara with firearms and entered the Gems & Gold Corner jewelry store. The two masked men brandished the firearms and threatened the jewelry store employees and others. One of the masked men physically assaulted a jewelry store employee using the firearm, striking the employee’s head. The two masked men broke the jewelry showcases and took jewelry from the store. They then retreated from the jewelry store, got back into the white Suzuki Vitara, and were driven away from the area by Benjamin.
This case is being investigated by the Federal Bureau of Investigation and the Virgin Islands Police Department. It is being prosecuted by Assistant United States Attorney Juan A. Albino.
This case is part of the Department of Justice’s Project Safe Neighborhood Initiative. Project Safe Neighborhood is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
Santa Clarita Man Sentenced to More Than 4 Years in Prison for Scheming to Fraudulently Obtain $1.8 Million in COVID-Relief FundsRead the Press Release
LOS ANGELES – A Santa Clarita Valley man was sentenced today to 51 months in federal prison for scheming to fraudulently obtain approximately $1.8 million in COVID-19 relief guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) program and the Paycheck Protection Program (PPP).
Hassan Kanyike, 30, of Santa Clarita, was sentenced by United States District Judge Virginia A. Phillips, who also ordered him to pay a $20,000 fine and $1,302,550 in restitution to the SBA and four victim lenders. Kanyike pleaded guilty on March 29 to one count of wire fraud.
From April 2020 to June 2020, Kanyike submitted six fraudulent PPP loan applications and two fraudulent EIDL applications. The applications sought funds to purportedly pay the salaries of employees whom he claimed worked for two of his businesses. Kanyike successfully obtained approximately $1 million through four PPP loans, and another $300,000 through two EIDL loans.
In support of the fraudulent PPP loan applications, Kanyike submitted fake federal tax filings and payroll reports for a used-car business, the Van Nuys-based Falcon Motors. For example, in one loan application, Kanyike falsely claimed the business had 26 employees and an average monthly payroll of $168,000, and he submitted a fabricated IRS tax form claiming Falcon Motors had paid $2,022,300 to employees in 2019.
In reality, Falcon Motors had no employees on payroll. Kanyike further admitted that he obtained additional Employer Identification Numbers from the IRS in April and May 2020 so he could apply for multiple loans for the same used-car business. Kanyike then used a substantial portion of the PPP loan proceeds for his own personal benefit.
Kanyike schemed to fraudulently obtain eight loans totaling approximately $1.8 million, of which six loans worth a total of $1,302,550 were approved.
At the time of his arrest in December 2020, Kanyike had transferred approximately $762,000 to Uganda, his country of citizenship, from one of the business accounts that had received the loan proceeds, in violation of the terms of the PPP and EIDL program.
Homeland Security Investigations and the Treasury Inspector General for Tax Administration investigated the case.
Assistant United States Attorney Richard E. Robinson of the Major Frauds Section and Assistant Chief William Johnston of the Criminal Division’s Fraud Section at the Department of Justice prosecuted this case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at (866) 720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
San Marcos Man Charged Federally with Austin Synagogue ArsonRead the Press Release
AUSTIN – A federal complaint was unsealed charging Franklin Barrett Sechriest, 18, of San Marcos, with arson in connection with the fire intentionally set at the Congregation Beth Israel synagogue in Austin on October 31, 2021. Sechriest had an initial appearance in federal court today in Austin on the complaint.
According to court documents, on October 31, 2021, Sechriest allegedly set the fire at the synagogue, which caused several thousand dollars in damage. Earlier, on October 28, 2021, Sechriest’s vehicle was identified on security footage at the synagogue.
“Arson at a sacred place of worship shakes the very foundations of our society,” said U.S. Attorney Ashley C. Hoff. “This Office strongly condemns the intentional act of violence alleged in the complaint and will vigorously prosecute this type of conduct to the fullest extent possible. I commend the Austin Fire Department, the FBI and our other law enforcement partners for their outstanding investigative work.”
“I would like to thank the Austin Fire Department for their partnership with the FBI’s Joint Terrorism Task Force in Austin, Texas,” said FBI Special Agent in Charge Christopher Combs. “Our dedicated partnership, in this investigation and many others, serves as an innovative and effective model to ensure the protection of our communities and critical infrastructure throughout the United States.”
If convicted of the charge alleged in the complaint, Sechriest faces a maximum penalty of 20 years in prison.
Sechriest is scheduled for a preliminary examination and detention hearing on November 17 at 10:30 a.m. He remains in federal custody since his arrest on November 12, 2021.
Assistant U.S. Attorney Matthew Devlin is prosecuting the case. The FBI and Austin Fire Department are investigating the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty in a court of law.
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Rochester Man Going to Prison for 30 Years for Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced today that Jeremy Hernandez, 30, of Rochester, NY, who was convicted of producing child pornography, was sentenced to 30 years in prison and 15 years of supervised release by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Kyle P. Rossi, who handled the case, stated that in September and October 2018, the National Center for Missing and Exploited Children received information from Tumblr, an electronic service provider, that a user had uploaded several images of child pornography to a blog on Tumblr’s platform. The information was forwarded to investigators at the New York State Police who identified the defendant as the source.
On October 24, 2019, investigators seized several digital devices, including two cell phones, belonging to Hernandez. A forensic analysis uncovered images and videos on the cell phones, which depicted the defendant sexually abusing an 11- to 12-year-old minor on multiple occasions between 2017 and 2019.
The sentencing is the result of an investigation by the National Center for Missing and Exploited Children; the New York State Police Internet Crimes Against Children Taskforce, under the direction of Major Barry Chase; Monroe County Child Protective Services, under the direction of Commissioner Thalia Wright; the Bivona Child Advocacy Center, under the direction of Executive Director Deb Rosen; and Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino.
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Raleigh Real Estate Developer Sentenced to Decade in Prison for Real Estate Ponzi Scheme and Firearm Possession ChargesRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced today to ten years in prison on charges of Wire Fraud, in violation of Title 18, United States Code, Section 1343, and Possession of a Firearm by a Felon, in violation of Title 18, United States Code, Section 922(g). The defendant was also ordered to serve three years of supervised release and to pay restitution to victims in the total amount of $1,771,382.25.
According to court documents and arguments made in court today, Joshua Matthew Houchins, 36, owner of various Raleigh real estate development companies, carried out a Ponzi scheme upon numerous local real estate investors. Houchins also possessed a rifle and several rounds of ammunition after having been convicted of a felony.
According to the superseding indictment, between 2014 and 2018, Houchins owned and operated Rossshire Development LLC, Greenstone Ventures LLC, and Modern South Development LLC, and used these entities to carry out a fraud upon his real estate development investors. Specifically, Houchins solicited investment monies by telling victims that their money would be “put to work” on a specific property, and further represented that the investments would be secured by deeds of trust filed with the county register of deeds. In fact, Houchins did not put all of the investor funds to work on the property on which the investor was solicited to invest, and instead, regularly used investor funds on other properties, or on personal expenses. Likewise, the investor promissory notes were not secured by a deed of trust as promised. In some instances, Houchins did not even own the property that was the subject of the investment, and, as such, could not truthfully grant a deed of trust to the investor.
The indictment alleges that after Houchins diverted investor money away from the property on which the funds were supposed to be spent, Houchins failed to develop and sell the properties, as he represented he would. Houchins then defaulted on the notes by failing to pay investors their promised returns. The investors were unable to foreclose upon the investment properties because Houchins had not secured the promissory notes with a deed of trust filed, thereby resulting in losses to the investors. Houchins specifically pled guilty to Count Nine, which alleged one instance of the above-described fraud on January 6, 2017. As a part of the plea, Houchins agreed to make restitution to all victims for losses arising from the scheme and related schemes.
According to the second part of the superseding indictment, the grand jury began to investigate Houchins in 2018 concerning the aforementioned offenses. Following the issuance of subpoenas to his attorney and to his various real estate companies, Houchins only produced a small number of documents to the grand jury. Instead, the indictment alleges that Houchins admitted in February 2020 letter that he had “destroyed all of the evidence.”
The superseding indictment also alleges that Houchins, who had recently separated from his wife, began to send her harassing messages. The indictment alleges that Houchins’ wife obtained a Domestic Violence Order of Protection (DVPO) barring Houchins from contacting, threatening, or harassing his wife. While Houchins was already prohibited from possessing a firearm due to his status as a convicted felon, the DVPO further prohibited Houchins from possessing a firearm.
The superseding indictment then alleges that in March of 2020, Houchins communicated to friends of his wife that she had, “run to the police” and that Houchins has “no mercy on a lying rat.” Around one month later, the superseding indictment alleges that Houchins sent threatening communications to friends and family of his wife, including photographs of Houchins wearing a mask and tactical vest.
The superseding indictment then charges that, following his internet searches for “killing your wife over love,” Houchins was arrested. At the time of his arrest, Houchins was in possession of a Ruger AR-15, 4 magazines, a double canister magazine containing 100 rounds of ammunition, two boxes of .223 caliber ammunition, and a tactical vest. Houchins pled guilty to Count Fourteen, which alleged that he possessed the Ruger AR-15 despite being a convicted felon.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The Federal Bureau of Investigation and the North Carolina Secretary of State investigated the case. The Wake County Sheriff’s Office, Apex Police Department, and Sanford Police Department also provided assistance. Assistant U.S. Attorney William M. Gilmore served as the prosecutor.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-245-1D(2).
Previously Convicted Felon Who Shot Another Individual Sentenced to 84 Months in PrisonRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 84 months in prison for illegally possessing a firearm and ammunition in connection with an incident in which he shot another individual in Jersey City, Acting U.S. Attorney Rachael A. Honig announced.
Hassan Mosby, 40, of Jersey City, previously pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon. Judge Wigenton imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
On Oct. 12, 2019, members of the Jersey City Police Department were dispatched to the area of Martin Luther King Drive between Woodlawn Avenue and Armstrong Avenue in Jersey City on a report of shots fired in the area.
Officers located a crime scene which included six 9-millimeter shell casings. While the officers were canvassing the area and processing the crime scene, they reviewed video footage from city cameras located near the shooting. The video showed a brief altercation within a group of males on the sidewalk on Martin Luther King Drive. At the end of the altercation, Mosby pointed and fired a handgun several times at a victim, striking the victim.
By viewing additional video footage from other city cameras, officers were able to determine that Mosby walked directly to a nearby residence immediately after the shooting. Officers went to the residence and were let inside by a resident, where they observed Mosby sitting in a chair. Mosby stated, “You got me, I’m who you are looking for. They had nothing to do with it.” Mosby was arrested and a search warrant was obtained for the residence. Officers then found a 9-millimeter semiautomatic handgun, which was loaded with seven rounds of ammunition.
Subsequent ballistics testing determined that five shell casings found at the crime scene were discharged from the firearm found in the residence.
In addition to the prison term, Judge Wigenton sentenced Mosby to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Newark Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, and the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing.
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez of the U.S. Attorney’s Office in Newark.
Defense counsel: Lorraine Gauli-Rufo Esq., Verona, New Jersey
Postal Worker Indicted for Delay or Destruction of MailRead the Press Release
NEW ORLEANS, LOUISIANA – SIERRA HUDSON, age 34, a resident of New Orleans, Louisiana, was charged on November 12, 2021 in a one count indictment for delay or destruction of mail.
According to court documents, HUDSON was employed by the United States Postal Service as a Letter Carrier and was assigned to work at the Central Carrier Station, New Orleans, LA. The indictment alleges that from on or about May 2020 through July 2020, HUDSON secreted, destroyed, detained, and delayed approximately 640 First Class postcards and 573 pieces of political mail that were recovered from a residential trash can. According to court documents, HUDSON also unlawfully secreted, detained, and delayed approximately two First Class letters, 535 advertising flyers, and 20 nonprofit small parcels in the trunk of her personal vehicle.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, the defendant faces a maximum penalty of up to five (5) years imprisonment, up to three (3) years of supervised release, up to a $250,000 fine, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the U.S. Postal Service Office of Inspector General in investigating this matter. Assistant U.S. Attorney Rachal Cassagne is in charge of the prosecution.
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Pittsburgh Man Sentenced to 15 Years in Federal Prison for Producing Child PornographyRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 15 years’ incarceration, to be served consecutively to a sentence of 10 to 20 years’ incarceration imposed in the Allegheny County Court of Common Pleas, followed by 10 years’ supervised release on his conviction of production and attempted production of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on Matthew Joseph Gourley, age 49, of Pittsburgh, Pennsylvania.
According to information presented to the court, on January 6, 2020, Gourley forced Minor A, a minor female victim, to engage in sexually explicit conduct for the purpose of producing a visual depiction, namely, a digital image and a video, depicting Minor A engaging in sexually explicit content. Gourley’s conduct was discovered by law enforcement during an online undercover operation.
Prior to imposing sentence, Judge Stickman stated “there is no room to debate the seriousness” of Gourley’s crime, calling Gourley’s documentation of his sexual abuse of Minor A “heinous, inexcusable, abhorrent.”
Assistant United States Attorney Heidi M. Grogan prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the FBI Pittsburgh Child Exploitation and Human Trafficking Task Force, including the Federal Bureau of Investigation and the Allegheny County Police Department, for the investigation leading to the successful prosecution of Gourley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.Pharmacist to pay $275,000 to settle claims related to the alleged unlawful dispensation of controlled substancesRead the Press Release
SAVANNAH, GA: The former owner of a Bryan County pharmacy has agreed to settle claims that he and his pharmacy unlawfully dispensed controlled substances despite the presence of red flags indicating that the prescriptions, written by a convicted pill-mill doctor, were not issued for legitimate medical reasons.
Willie C. “Billy” Conley, Jr., 68, of Pembroke, Ga., the former owner of a Bryan County pharmacy and its former pharmacist-in-charge, will pay $275,000 to resolve allegations by the United States and the State of Georgia, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The civil settlement is the largest paid by an individual pharmacist for the alleged unlawful dispensation of controlled substances that has been obtained to date by the U.S. Attorney’s Office for the Southern District of Georgia.
“Pharmacists that ignore their obligation to scrutinize suspicious controlled substances prescriptions despite the presence of red flags can expect to be held to account,” said Acting U.S. Attorney Estes. “Pill-mill doctors cannot thrive without pharmacists willing to fill their unlawful prescriptions. We will use every tool at our disposal to battle the opioid epidemic at each level of the supply chain.”
The allegations against Conley relate to prescriptions written by Dr. Frank Bynes Jr., who in February 2020 was convicted and sentenced to 240 months’ imprisonment on numerous counts of health care fraud and unlawfully dispensing controlled substances. The settlement resolves allegations that Conley and his pharmacy violated their corresponding responsibility to fill only legitimate prescriptions and that they submitted false claims to Medicare and Medicaid for a highly dangerous combination of controlled substances, called the “holy trinity,” consisting of overlapping opioid, benzodiazepine, and carisoprodol frequently prescribed by Dr. Bynes.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
“Filling medically unnecessary controlled substance prescriptions harms Georgia citizens and the Georgia Medicaid program and is wrong,” said Georgia Attorney General Chris Carr. “We will continue to work diligently to hold accountable those that harm our state and will use all available resources, including the Georgia False Medicaid Claims Act, to remedy this harm and safeguard our communities.”
The case was investigated by the Savannah Resident Office of the Drug Enforcement Administration, and the U.S. Department of Health and Human Services, Office of Inspector General. The State of Georgia was represented by Assistant Attorney General Sara Vann. The United States was represented by Assistant U.S. Attorneys Bradford C. Patrick and Patrick J. Schwedler.
Pascoag Man Admits to Possessing and Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – A Pascoag man arrested twice on child pornography charges faces between five and twenty years in federal prison when he is sentenced in February 2022, having pleaded guilty today to charges of distribution and possession of child pornography, announced Acting United States Attorney Richard B. Myrus.
According to court documents and information presented to the court, in November 2018, Homeland Security Investigations (HSI) agents developed information that an IP address in Rhode Island was being used to post child pornography on an Internet messaging and networking application. On November 20, 2018, HSI agents discovered at least 19 videos depicting child pornography posted by the same user at the Pascoag residence, later identified as Jacob S. Munroe, 23.
On June 5, 2019, while executing a court-authorized search of Munroe’s residence, images and videos depicting child pornography were observed on Munroe’s cell phone. Munroe was arrested and released on unsecured bond. In an unrelated investigation, on November 4, 2020, while awaiting trial on charges related to his November 2018 arrest, Munroe was arrested by Rhode Island State Police when it was determined that on August 24, 2020, he downloaded images depicting child pornography.
Appearing today before U.S. District Court Chief Judge John J. McConnell, Jr., Munroe pleaded guilty to one count of distribution of child pornography and two counts of possession of child pornography. He is scheduled to be sentenced on February 22, 2022.
Distribution of child pornography is punishable by a statutory penalty of up to 20 years in federal prison, with a minimum mandatory term of incarceration of 5 years. Possession of child pornography is punishable by a term of incarceration of up to 20 years.
The case is being prosecuted by Assistant U.S. Attorney Terrence P Donnelly.
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Pasadena Man Who Cyberstalked and Made Threats to Injure, Rape and Kill Sentenced to More Than 3 Years in Federal PrisonRead the Press Release
LOS ANGELES – A British national was sentenced today to 37 months in federal prison for making a series of graphic online threats to harm, rape and kill.
Samuel Trelawney Hughes, 33, of Pasadena, was sentenced by United States District Judge Dale S. Fischer, who described his conduct as “horrendous.” Hughes pleaded guilty in October 2020 to one count of stalking, one count of witness tampering and one count of making threats by interstate communication.
From May 2019 to June 2020, Hughes stalked and sent anonymous threatening communications to multiple victims, according to court documents. For example, in October 2019, after one victim reported prior threats from Hughes to law enforcement authorities, Hughes sent the victim an email stating in part: “someone I can guarantee will come out and first bash you[r] head in, rape you slash your throat and burn your car and house.”
Hughes’ conduct often followed a pattern. He would meet a victim – usually a woman – at a networking event or through his employment. After the event or after having been employed for a period, he would communicate with the victim from an email or social media account, seeking further social interaction with the victim or inviting the victim to meet him at a future date in a one-on-one setting. When the victim would not reciprocate [Hughes’] desire for further social interaction and would indicate that she or he no longer wished to interact with him, he would then send anonymous threats to the victim, often from anonymous online accounts he used and created to disguise his identity.
He sent the threatening communications via numerous email and social media accounts, as well as through the U.S. mail. The messages sent to the victims were direct, graphic and disturbing in nature, and they contained threats to injure, rape and kill victims.
After being contacted by both federal and state law enforcement officers on multiple occasions regarding the threatening communications, Hughes continued to send electronic communications and letters threatening to injure, rape and kill victims who had reported his threats to law enforcement. In his communications to some victims, Hughes threatened that contacting the police would lead to the injury or death of the victim or the victims’ family members.
“[Hughes] used his computer skills to terrorize these victims and their families with harassment and death threats from anonymized accounts,” prosecutors argued in a sentencing memorandum. “His use of anonymizing techniques and planning allowed him to avoid identification – and punishment – for months while he continued his online harassment campaigns. [Hughes’] conduct traumatized the victims, putting many in fear for their lives and the lives of family members. Some feared going to work or even leaving their homes.”
The FBI investigated this matter.
Assistant United States Attorney Lauren Restrepo of the Cyber and Intellectual Property Crime Section prosecuted this case.
Panamanian Intermediary in Alleged Bribery Scheme Charged with Money Laundering Extradited to the United States from GuatemalaRead the Press Release
Luis Enrique Martinelli Linares (Luis Martinelli Linares), 39, a citizen of Panama and Italy, was extradited from Guatemala to the United States today to face an indictment filed in federal court in Brooklyn charging him and his brother, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), 42, a citizen of Panama and Italy, with money laundering offenses in connection with a massive bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. He is scheduled to make his initial appearance tomorrow before U.S. Magistrate Judge Marcia M. Henry of the U.S. District Court for the Eastern District of New York.
According to court filings, the scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. On Dec. 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act (FCPA) for its involvement in the bribery and money laundering scheme.
“The successful extradition of Luis Martinelli Linares demonstrates the department’s commitment to work with our international partners to pursue, capture and extradite those who use the U.S. financial system to further their corrupt schemes and launder illicit funds,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Thanks to the efforts of our law enforcement partners in Guatemala, Luis Martinelli Linares will be held accountable in the United States for his alleged crimes.”
“The extradition of Luis Martinelli Linares to the Eastern District of New York is a significant first step in holding him accountable for allegedly laundering millions of dollars in bribe payments through bank accounts in New York and elsewhere,” stated U.S. Attorney Breon Peace for the Eastern District of New York. “Combatting bribery and money laundering by extraditing and prosecuting corrupt foreign actors like Martinelli is a priority of the Department of Justice.”
“Anyone who facilitates bribe payments to government officials contributes to national security risks, whether overtly or inadvertently, and interrupts the free market system of international trade,” said FBI Assistant Director in Charge Michael J. Driscoll. “The FBI will use all available resources to put an end to this type of corrupt behavior.”
Luis Martinelli Linares and Ricardo Martinelli Linares are alleged in the indictment and other court filings to have conspired with others to launder approximately $28 million in bribe payments made by and at the direction of Odebrecht to a then high-ranking government official in Panama (Panama Government Official), who was a close relative of the defendants. The defendants were initially charged by criminal complaint on June 27, 2020. The defendants were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, pursuant to a provisional arrest request from the United States as they were attempting to depart Guatemala on a private plane. On Feb. 4, 2021, Luis Martinelli Linares and Ricardo Martinelli Linares were charged in a five-count indictment. The indictment charged both defendants with one count of conspiracy to commit money laundering and two counts of concealment money laundering; Luis Martinelli Linares was also charged with two counts of engaging in transactions in criminally derived property.
On May 17, 2021, after several preliminary appeals were dismissed, the Guatemalan Fifth Criminal Sentencing Court granted the request by the United States to extradite Luis Martinelli Linares. On June 21, the Guatemalan Court of Appeals, Criminal Branch affirmed the ruling of the Guatemalan criminal court granting extradition. On Oct. 15, the Guatemalan Ministry of Foreign Affairs notified the United States, via diplomatic note, that the extradition was final and Luis Martinelli Linares was ready for surrender to the United States, resulting in his arrival in the United States on Nov. 15. The United States continues its efforts to have Ricardo Martinelli Linares returned to the United States to face justice.
The Department of Justice commended and thanked the Government of Guatemala for its assistance in the extradition of Luis Martinelli Linares to the United States. The Justice Department’s Office of International Affairs provided substantial assistance in securing the arrest and extradition of Luis Martinelli Linares. The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador also provided significant cooperation.
The FBI’s International Corruption Unit in New York is investigating this case, and the NY-ICS, New York SWAT and FBI’s International Operations Division conducted the transport of Luis Martinelli Linares from Guatemala to the United States.
Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS), and Assistant U.S. Attorney Alixandra E. Smith of the U.S. Attorney’s Office for the Eastern District of New York are prosecuting the case.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
The Kleptocracy Asset Recovery Initiative in MLARS was formed to prosecute money launderers and forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered asset to benefit the people harmed by the corruption and abuse of office. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to [email protected].
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Panamanian Intermediary Charged with Money Laundering Extradited to the United States from GuatemalaRead the Press Release
BROOKLYN, NY – Luis Enrique Martinelli Linares (Luis Martinelli Linares) was extradited from Guatemala to the United States today on an indictment filed in federal court in Brooklyn charging him and his brother, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), with money laundering offenses for their roles in a bribery and money laundering scheme involving Odebrecht S.A. (Odebrecht), a Brazil-based global construction conglomerate. Luis Martinelli Linares is scheduled to be arraigned tomorrow before United States Magistrate Judge Marcia M. Henry.
Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite Jr., Assistant Attorney General of the Justice Department’s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge of the Federal Bureau of Investigation, New York Field Office (FBI), announced the extradition.
“The extradition of Luis Martinelli Linares to the Eastern District of New York is a significant first step in holding him accountable for allegedly laundering millions of dollars in bribe payments through bank accounts in New York and elsewhere,” stated United States Attorney Peace. “Combatting bribery and money laundering by extraditing and prosecuting corrupt foreign actors like Martinelli is a priority of the Department of Justice.”
“The successful extradition of Luis Martinelli Linares demonstrates the department’s commitment to work with our international partners to pursue, capture and extradite those who use the U.S. financial system to further their corrupt schemes and launder illicit funds,” stated AAG Polite. “Thanks to the efforts of our law enforcement partners in Guatemala, Luis Martinelli Linares will be held accountable in the United States for his alleged crimes.”
“Anyone who facilitates bribe payments to government officials contributes to national security risks, whether overtly or inadvertently, and interrupts the free market system of international trade," stated FBI Assistant Director-in-Charge Driscoll. “The FBI will use all available resources to put an end to this type of corrupt behavior.”
On December 21, 2016, Odebrecht pleaded guilty in the Eastern District of New York to a criminal information charging it with conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act for its involvement in the bribery and money laundering scheme.
The overarching Odebrecht scheme involved the payment of more than $700 million in bribes to government officials, public servants, political parties, and others in Panama and other countries around the world to obtain and retain business for the company. Luis Martinelli Linares and Ricardo Martinelli Linares allegedly conspired with others to launder approximately $28 million in bribe payments made by and at the direction of Odebrecht to a then high-ranking government official in Panama (Panama Government Official), who was a close relative of the defendants.
The defendants were initially charged by criminal complaint on June 27, 2020. Pursuant to a provisional arrest request from the United States, they were arrested at el Aeropuerto Internacional la Aurora in Guatemala on July 6, 2020, as they were attempting to depart Guatemala on a private plane. On February 4, 2021, Luis Martinelli Linares and Ricardo Martinelli Linares were charged in a five-count indictment, which charged both defendants with one count of conspiracy to commit money laundering and two counts of concealment money laundering; Luis Martinelli Linares was also charged with two counts of engaging in transactions in criminally derived property.
On May 17, 2021, after several preliminary appeals were dismissed, the Guatemalan Fifth Criminal Sentencing Court granted the request by the United States to extradite Luis Martinelli Linares. On June 21, 2021, the Guatemalan Court of Appeals, Criminal Branch affirmed the ruling of the Guatemalan criminal court granting extradition. On October 15, 2021, the Guatemalan Ministry of Foreign Affairs notified the United States, via diplomatic note, that the extradition was final and Luis Martinelli Linares was ready for surrender to the United States, resulting in his arrival in the United States earlier today. The United States has also requested to extradite Ricardo Martinelli Linares, and those proceedings are ongoing.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
United States Attorney Peace and Assistant Attorney General Polite thanked the Government of Guatemala for its assistance in the extradition of Luis Martinelli Linares to the United States. The Department of Justice’s Office of International Affairs provided substantial assistance in securing the arrest of Luis Martinelli Linares. The FBI’s International Corruption Squad in New York (ICS-NY) is investigating this case, and the NY-ICS, New York SWAT and FBI’s International Operations Division conducted the transport of Luis Martinelli Linares from Guatemala to the United States."
The case is being prosecuted by Assistant United States Attorney Alixandra Smith of the Office’s Business and Securities Fraud Section, Trial Attorney Michael Culhane Harper of the Criminal Division’s Fraud Section, and Trial Attorneys Barbara Levy and Michael Redmann of the Criminal Division’s Money Laundering and Asset Recovery Section.
The Brazilian Ministerio Publico Federal, Departamento de Polícia Federal, law enforcement authorities in Guatemala including the Public Ministry of Guatemala and Specialized Unit for International Affairs, and law enforcement authorities in El Salvador provided significant cooperation.
The Defendants:
LUIS ENRIQUE MARTINELLI LINARES
Age: 39
Panama City, PanamaRICARDO ALBERTO MARTINELLI LINARES
Age: 42
Panama City, PanamaE.D.N.Y. Docket No. 21-CR-65 (RJD)
Oregon Tax Cheat Sentenced to Federal PrisonRead the Press Release
PORTLAND, Ore.—An Oregon man was sentenced to federal prison today after failing to pay more than $1.7 million in personal income taxes in a complex tax evasion case dating back to 2001.
Robert Andrew Lund, of Lebanon, Oregon, was sentenced to 41 months in federal prison and three years’ supervised release.
According to court documents, in the mid 1980s, after working for several years as a computer engineer and programmer for the Hewlett Packard company, Lund moved to Oregon and started a private computer consulting company called Lund Performance Solutions (LPS). LPS’s clients included large businesses, school districts, and health care companies located throughout the U.S. In 1993, Lund paid $30,000 to an offshore trust promoter to establish layers of trusts to hide his LPS profits from the IRS. From 1994 to 1996, despite LPS being highly profitable, Lund reported almost no income on his personal income tax returns. Soon after, the IRS audited Lund and determined he owed more than $2.7 million in taxes plus penalties.
Lund used his untaxed profits to buy 90 acres of land outside Eugene, Oregon on which he built a 7,000 square foot house that was later appraised at $950,000. Lund, a small aircraft pilot, also built a private landing strip on the property. Lund also purchased the former city hall and post office building in Albany, Oregon, a trailer park with multiple rental units, and two rental houses. Lund ran LPS and several smaller businesses, including a health food store, a bookstore, and a scuba diving equipment and lessons company, from the building in Albany.
Lund challenged his tax assessments in U.S. Tax Court and the Ninth Circuit Court of Appeals. Both affirmed he owed the IRS unpaid taxes. In response, Lund stopped filing tax returns altogether and began creating many limited liability companies (LLC) and trusts to conceal his income and assets. During this time, Lund sought the assistance of a known tax protestor attorney from Georgia named Kyle Weeks. Weeks later surrendered his law license and was convicted for filing false tax returns.
Over the next decade, the IRS sent Lund dozens of letters, bills, and summonses for financial records. Lund replied with his own letters claiming he was not a U.S. citizen and therefore not subject to taxation or the IRS’s authority. During this same time, Lund continued to go to extraordinary lengths to hide his assets and income from the IRS while also stealing from government assistance programs. He repeatedly transferred title to his properties to various straw entities and people; hid rental income by signing leases with the names of at least 16 different LLCs, partnerships, and trusts; applied for and received food stamps and Medicaid benefits; and convinced an employee to open a bank account on behalf of one of Lund’s trusts. On his food stamp and Medicaid applications, Lund boldly claimed to be a part-time handyman earning just $810 a month. In total, Lund stole approximately $70,000 in public benefits, most of which were paid by the federal government.
On June 12, 2019, a federal grand jury in Portland returned an indictment charging Lund with tax evasion, failure to file personal income tax returns, obstructing or impeding the IRS, and theft of government funds. Lund was also charged in a separate federal case with making a false statement in connection with a personal bankruptcy case.
On July 19, 2021, Lund pleaded guilty to tax evasion, failure to file personal income tax returns, and stealing food stamp and Medicaid benefits. All of Lund’s remaining charges were dismissed as part of his plea agreement.
During sentencing, U.S. District Court Judge Michael H. Simon ordered Lund to pay more than $1.7 million in restitution to the IRS and $70,000 to the Oregon Health Authority.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation and prosecuted by Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon.
Oregon Man Sentenced to Federal Prison for Illegal Firearm Possession on the Burns Paiute ReservationRead the Press Release
EUGENE, Ore.—A man staying on the Burns Paiute Indian Reservation was sentenced to federal prison today for illegally possessing a shotgun with an obliterated serial number.
Danny Hank Snapp, 31, was sentenced to two years in federal prison and three years’ supervised release.
According to court documents, on September 13, 2020, a woman called the police after hearing screaming and crying, followed by gunshots, from her neighbor’s residence on the Burns Paiute Indian Reservation. When police arrived on scene, they found Snapp’s ex-wife crying and walking in front of the property. Officers entered the house, removed a child, and placed Snapp under arrest. The officers located a revolver hidden in a floor vent and a shotgun with an obliterated serial number. After initially claiming he had set off fireworks, Snapp admitted to firing the revolver into the air.
Snapp and his ex-wife are not members of the Burns Paiute Tribe.
On September 7, 2021, Snapp pleaded guilty to the firearm charge for which he was sentenced today.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from Bureau of Indian Affairs law enforcement and the Burns Police Department, and prosecuted by Jeffrey S. Sweet, Assistant U.S. Attorney for the District of Oregon, and Thomas Weathers, Tribal Prosecutor for the Burns Paiute Tribe.
Ohio man admits to selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Antonio Mario Hall, of Cleveland, Ohio, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Hall, age 29, pled guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base.” Hall admitted to selling cocaine in Ohio County in January 2020.
Hall faces up to 20 years of incarceration and a 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. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, the Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. Magistrate Judge James P. Mazzone presided.
New Orleans Woman Charged for Theft of More Than $61,000 in Social Security FundsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that CATHERINE CAMPBELL WILLIAMS, age 68, of New Orleans, Louisiana, was indicted on November 12, 2021 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to the Indictment, beginning in December 2010 and continuing through 2020, WILLIAMS collected Social Security Administration benefits paid to a deceased relative. It is alleged that in total, WILLIAMS fraudulently received approximately $61,324 in Social Security Administration benefits to which she was not entitled.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, WILLIAMS faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
New Orleans Man Indicted for a Violation of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – NELSON RAYMOND, age 28, a resident of New Orleans, was charged on November 12, 2021 in a one count indictment by a Federal Grand Jury for possessing a firearm while being a convicted felon, announced U. S. Attorney Duane Evans.
If convicted, RAYMOND faces a maximum term of imprisonment of up to ten (10) years, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment and a $100 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U. S. Attorney Mike Trummel.
* * *
Narcotics Trafficker Extradited from Colombia to Face International Cocaine Distribution ChargesRead the Press Release
Fabian Emilio Zapata Taborda, also known as “Milo” and “Milito,” was arraigned today before United States District Judge Kiyo A. Matsumoto at the federal courthouse in Brooklyn on an indictment charging him with leading an international cocaine distribution conspiracy. The defendant, a Colombian citizen, was arrested in Colombia on a provisional arrest warrant issued from the Eastern District of New York and subsequently extradited from Colombia to the United States on November 12, 2021. Zapata Taborda was ordered detained pending trial. The defendant has been designated a Consolidated Priority Organization Target (“CPOT”) by the Department of Justice, a designation given to the most significant narcotics traffickers in the world.
Breon Peace, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration, New York Division (DEA), Dermot F. Shea, Commissioner, New York City Police Department (NYPD), and Kevin P. Bruen, Superintendent, New York State Police (NYSP), announced the extradition and arraignment.
“As alleged in the indictment, the defendant was the leader of one of Colombia’s largest drug trafficking enterprises that supplied massive, metric ton quantities of cocaine to some of the most violent drug trafficking organizations in the United States, the Caribbean, Central America, and Europe,” stated United States Attorney Peace. “The Department of Justice is committed to working with our international partners to dismantle destructive networks of drug trafficking organizations that seek to spread dangerous and addictive narcotics throughout the world.” Mr. Peace extended his appreciation to the DEA’s office in Bogota, Colombia, the United States Marshals Service, the United States Department of State, the Department of Justice’s Office of International Affairs, the Colombian National Police, and the Government of Colombia.
“After years of supplying multi-ton quantities of cocaine to American criminal organizations, Zapata Taborda is finally facing justice at the hands of the U.S. government,” stated DEA Special Agent-in-Charge Donovan. “This significant arrest and extradition shows DEA's commitment to save lives and bring criminals to justice in collaboration with our law enforcement partners.”
“The waves of internationally trafficked narcotics alleged in this case, which to our hardworking NYPD officers represent countless lives harmed and threatened across our city, are ended with this extradition and indictment. I commend our investigators, our law enforcement partners and the prosecutors in the United States Attorney’s Office for the Eastern District of New York, for their work in this case and for their continuing promise to fight this illegal scourge with every tool at our disposal,” stated NYPD Commissioner Shea.
“I commend the dedicated teamwork of our federal, state and local partners, which was instrumental in this case and bringing a dangerous drug trafficker to justice. By working together, we are preventing these dangerous narcotics from coming into our communities and removing the violent criminals who profit at the expense of the people we serve. We will continue to be vigilant to keep these harmful narcotics off our streets and our neighborhoods safe,” stated NYSP Superintendent Bruen.
According to the indictment, court filings, and statements made in Court, the defendant supplied metric tons of cocaine to numerous drug trafficking organizations in Colombia, for distribution to locations in the Caribbean, Central America, Europe, and the United States. As part of the investigation, law enforcement authorities seized over 1.9 metric tons of cocaine attributable to Zapata Taborda’s drug trafficking enterprise. The seizures included multi-hundred-kilogram shipments of cocaine sent by the Zapata Taborda drug trafficking organization from Colombia to Jamaica and Costa Rica for ultimate importation to the United States. Among the drug trafficking organizations supplied by the defendant was Clan del Golfo which is one of the most prolific and violent in the world. Colombian law enforcement authorities also seized and destroyed a large-scale cocaine laboratory operated by the Zapata Taborda drug trafficking organization in Antioquia, Colombia.
The extradition of Zapata Taborda is the result of an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) investigation led by the United States Attorney’s Office for the Eastern District of New York and the DEA. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces up to life in prison.
The government’s case is being handled by the Office’s International Narcotics and Money Laundering Section. Assistant United States Attorneys Francisco J. Navarro and Margaret Schierberl are in charge of the prosecution. The Justice Department’s Office of International Affairs handled the extradition in this matter.
The Defendant:
FABIAN EMILIO ZAPATA TABORDA
Age: 52
Antioquia, ColombiaE.D.N.Y. Docket No. 19-CR-212 (KAM)
Middlefield Man Pleads Guilty to Defrauding State Jobs ProgramsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DAVID KANIA, 62, of Middlefield, waived his right to be indicted and pleaded guilty today before U.S. District Judge Victor A. Bolden in Bridgeport to offenses stemming from his fraud against several state-run wage subsidy and job training programs.
According to court documents and statements made in court, Kania was the owner and operator of three small businesses, principally in the dietary supplement and beverage industry. Between 2013 and 2018, through his companies, Kania applied for and received state subsidies for employing unemployed jobseekers, including veterans, and for providing training to employees. In order to receive funds, Kania submitted false documents to the Connecticut Department of Labor and the Workforce Investment Boards, which administers wage subsidy programs, showing that he had hired certain workers and they worked for his businesses for a certain period of time, when he knew that to be false. Kania also submitted false invoices to the Manufacturing Innovation Fund (“MIF”) Program for training that was never done. Through this scheme, Kania caused $941,723.24 in loss to the wage subsidy programs and $115,000 in loss to the MIF Program.
Kania also underreported his total income on his 2014 through 2018 federal tax returns by failing to account for $299,201.50 in business funds that he used for personal expenses.
Kania pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of filing a false tax return, which carries a maximum term of imprisonment of three years.
Kania is released on a $100,000 bond pending sentencing, which is not scheduled.
This matter is being investigated by the U.S. Department of Labor – Office of the Inspector General, and the Internal Revenue Service – Criminal Investigation Division, with the assistance of the Connecticut Department of Labor. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
Middle District of Georgia Public Service Campaign Earns International Recognition for Social ImpactRead the Press Release
MACON, Ga. – Local honorees of an international media award—including a U.S. District Judge, an Assistant U.S. Attorney and the Executive Director of the Public Defender’s Office serving the Middle District of Georgia—were given the statuettes at a gathering held on Oct. 26 at the U.S. Courthouse in Macon.
“Armed with Knowledge” (AWK), a locally-produced video project aimed at educating young people on the consequences of illegally possessing a gun, was the recipient of two 2021 Telly Awards. Presented by the Peyton Anderson Foundation in partnership with the U.S. Attorney’s Office for the Middle District of Georgia and the Federal Defenders for the Middle District of Georgia, Inc., AWK earned a Silver for Social Impact and a Bronze for Social Issues. The Telly Awards is a prestigious video and film industry event that recognizes excellence in video and television storytelling. This year, the organization received over 12,000 entries from 50 states and five countries. To learn more about the Telly Awards, please visit tellyawards.com.
“More than 4,800 middle school-aged children in Macon have experienced ‘Armed with Knowledge’ and our hope is that this powerful video and complementary facilitator’s guide will be presented to kids across the Middle District of Georgia and beyond,” said Acting U.S. Attorney Peter D. Leary. “Reducing violent crime cannot be achieved by prosecution alone. As a community, we must help young people learn about the real consequences of choosing to pick up a gun so that we can stop violence from happening before it occurs. We are grateful for the support this public service project has received from the Bibb County School System and other youth-based organizations and churches. We are hopeful that more people will come to the table and take advantage of this free program for youth.”
“Armed with Knowledge’s message is not only impacting our local youth audience but is now recognized nationally for its powerful and purposeful message,” said Karen Lambert, president of the Peyton Anderson Foundation. “The Foundation is proud to partner with the U.S. Attorney’s Office for the Middle District of Georgia, the Federal Defenders for the Middle District of Georgia, Inc., the Bibb County Public Schools and the Macon-Bibb Sheriff’s Office on this imperative social awareness and impact campaign.”
Researched, written and produced locally, AWK addresses the consequences of criminal activity. The video depicts the story of Noah, a preteen youth facing life-altering decisions that lead to illegal possession of a firearm, a federal crime that carries a maximum prison sentence of ten years. Throughout the video, Noah learns hard truths and irreversible consequences through personal points of view from the perpetrator, the victim’s family and the federal court system.
“Representing the indigent accused for more than three decades has given me a front row seat to the devastating consequences young people—especially young men of color—endure when they make what might seem like a small mistake at the time,” said Federal Defender Tina Hunt, Executive Director of Federal Defenders of the Middle District of Georgia, Inc. “My hope is that young people who view ‘Armed with Knowledge’ will make the same courageous choices Noah makes, and that we can even reach young people who have already made bad choices before they make more and suffer the life-long consequences.”
Since the video's debut in 2020, it has been shown to thousands of Georgia youth, including 4,886 middle school students in Bibb County Public Schools. The U.S. Attorney’s Office for the Middle District of Georgia implemented AWK as part of its own Successful Tips for Youth on Law Enforcement Encounters (S.T.Y.L.E.) youth outreach program and the Bibb County Sheriff’s Office has committed to utilize the program in its own youth outreach efforts.
The educational video and accompanying facilitator guide—created by the U.S. Attorney’s Office with the assistance of Georgia teachers and counselors—is suitable for middle school-aged viewers and older, although educators can choose to present the video to older elementary school-aged children, as deemed appropriate.
The video is the brainchild of Peyton Anderson Foundation Trustee Marc Treadwell. Judge Treadwell is a U.S. District Judge, serving in the United States District Court for the Middle District of Georgia since 2010. Filmed entirely in Central Georgia by Big Hair Productions, the video features local actors, as well as Judge Treadwell, Middle District of Georgia Assistant U.S. Attorney Sonja Profit and Christina “Tina” Hunt, Executive Director of the Middle District of Georgia Federal Defenders, Inc. It also features a powerful scene with Tonora Jones, the mother of Ta’Shuntis “Tootie” Roberts, who was lost to gun violence in Macon in 2015.
“Credit for these awards belongs to Ms. Jones’ and Tabitha Walker and her production team at Big Hair Productions. It is because of them that young people find Noah’s journey so compelling,” said U.S. District Judge Marc Treadwell.
To watch the video, access the printable facilitator’s guide and learn more about the program, please visit ArmedWithKnowledge.org
AWK is the product of the joint federal, state and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them.
Mexican Native Sentenced to over 2 Years in Prison for Harmful Marijuana Grow in the Sierra National Forest in Madera CountyRead the Press Release
FRESNO, Calif. — Lester Eduardo Cardenas-Flores, 25, a native and citizen of Mexico, was sentenced today to two years and five months in prison for conspiring to manufacture, distribute, and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced.
Cardenas was also ordered to pay $48,000 in restitution to the U.S. Forest Service for the extreme damage that the cultivation operation had on public land. Cardenas pleaded guilty on Aug. 24, 2021.
According to court documents, the cultivation operation consisted of 2,307 marijuana plants in the Sierra National Forest in Madera County. Cardenas was found carrying fertilizer into the grow site and later apprehended there. The cultivation operation caused significant damage to the area, which serves as habitat for the Sierra Nevada yellow-legged frog, an endangered species and the California spotted owl, which is currently being considered for listing under the Endangered Species Act. Agents found deadly, banned pesticides sprayed directly on the plants.
The cultivation site was located in the Chiquito Creek watershed, which drains into the Fresno River before flowing into the San Joaquin River. Approximately 8.55 million gallons of water had been diverted from a nearby natural stream to irrigate the marijuana plants.
This case was the product of an investigation by the U.S. Forest Service, the California Department of Fish and Wildlife, the Campaign Against Marijuana Planting (CAMP) of the California Department of Justice, and the Madera County Sheriff’s Office. The environmental damage to the forest was analyzed and documented by Integral Ecology Research Center, a non-profit organization dedicated to the research and conservation of wildlife and their ecosystems. Assistant U.S. Attorney Karen A. Escobar prosecuted the case.
Cardenas’s co-defendant, Luis Madrigal-Reyes, 37, also a native and citizen of Mexico, was sentenced on Oct. 18, 2021, to two years and five months in prison.
Mexican National Sentenced to 30 Months in Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
NEWARK, N.J. – A Mexican National was sentenced today to 30 months in prison for possessing with intent to distribute methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.
Mayolo Castro Santamaria, 39, previously pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing with intent to distribute 50 grams or more of methamphetamine. Judge Arleo imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On June 26, 2020, Santamaria possessed 64.76 grams of methamphetamine in his vehicle.
In addition to the prison term, Judge Arleo sentenced Santamaria to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and the Cedar Grove Police Department with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Alexandra Tsakopoulos and Edeli Rivera of the OCDETF/Narcotics Unit in Newark.
Defense counsel: Bishoui A. Beshai Esq., Rutherford, New Jersey
Members and Associates of MS-13 in San Francisco Charged with Participation in Gang-Related Murders in Furtherance of Racketeering ConspiracyRead the Press Release
SAN FRANCISCO- A federal grand jury returned a second superseding indictment charging 13 current and former Bay Area residents for a broad range of racketeering crimes, including allegations that many defendants participated in gang-related murders and attempted murders as part of a racketeering conspiracy, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations (HSI) Special Agent in Charge Tatum King. The second superseding indictment handed down on November 4, 2021, and is now unsealed includes new allegations against defendants previously indicted on February 18, 2020, and adds charges against three new defendants.
“We will never stop seeking justice for murder,” said Acting U.S. Attorney Hinds. “The new indictment reflects our commitment to a partnership of federal, state, and local law enforcement to protect our community against violence, especially from criminal street gangs such as MS-13.”
“Public safety is paramount for the HSI San Francisco investigative team,” wrote HSI Special Agent in Charge Tatum King. “Our agents and analysts are focused on apprehending the most dangerous criminals. This new indictment contains allegations that should concern everyone and is the result of effective collaboration with the San Francisco Police Department, the U.S. Attorney’s Office, and local law enforcement agencies, all of whom are committed to holding criminals accountable for their actions.”
According to the second superseding indictment, the defendants were members of the transnational criminal organization MS-13. MS-13 operates in El Salvador, Honduras, Guatemala, Mexico, and at least 20 states in the United States. The MS-13 clique in San Francisco is the 20th Street clique. The second superseding indictment describes how the 20th Street clique relies on crime to operate, including to avoid detection by law enforcement, to initiate new recruits, to enhance the reputation of the gang and individual gang members, to maintain control of drug distribution channels, and to intimidate people who might testify against or otherwise defy the gang.
The second superseding indictment builds on the February 18, 2020 indictment by describing additional violent crimes the defendants have allegedly committed, including three murders. It alleges that, on or about March 17, 2017, Elmer Rodriguez, a/k/a “Gordo,” ordered another gang member to kill a victim perceived to be a gang rival outside the Beauty Bar in the Mission District of San Francisco. It further alleges that on May 25, 2017, Edwin Alvarado Amaya, a/k/a “Muerte,” murdered a fellow member of the 20th Street clique with a bladed weapon in Bernal Heights under the direction of Rodriguez because they believed the victim had violated gang rules. Finally, it alleges that on February 13, 2018, Abner Marroquin Alegria, a/k/a “Coche” or “Chapin,” Jose Maria Tercero Perez, a/k/a “Delito,” Kevin Reyes Melendez, a/k/a “Neutron,” Kevin Guatemala Zepeda, a/k/a “Mision,” and Fernando Romero Bonilla, a/k/a “Black,” all played a culpable role in the murder, or its aftermath, of a suspected gang rival in the parking lot of the Gray Whale Cove trail in Pacifica. According to the indictment, Tercero Perez, Reyes Melendez, Guatemala Zepeda, and Romero Bonilla encountered the victim at the Mission Playground, which is at the heart of the gang’s territory. Marroquin then drove Tercero Perez, Reyes Melendez, and the victim to the Gray Whale Cove parking lot, where Reyes Melendez and Tercero Perez attacked and murdered the victim with a bladed weapon and a 9mm firearm. Guatemala Zepeda and Romero Bonilla later arrived on scene to remove potentially incriminating evidence.
The second superseding indictment also alleges that on April 20, 2018, Tercero Perez, Reyes Melendez, and Brigido Josue Gonzales Sales, a/k/a “Inocente” or “Kiko” attempted to murder a suspected gang rival near South Van Ness Avenue and Adair Street in the Mission District of San Francisco.
In all, the second superseding indictment alleges 15 overt acts of violence – including murders, attempted murders, and assaults with a dangerous weapon – allegedly perpetrated by the defendants in furtherance of the racketeering conspiracy. The charges pending against each defendant are as follows:
Defendant
Age
Charges
Maximum Statutory Penalty
ROGELIO BELLOSO ALEMAN
a/k/a “Smiley”
28
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
EDWIN ALVARADO AMAYA
a/k/a “Muerte”
24
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Attempted Murder in Aid of Racketeering
18 U.S.C. §§ 1959(a)(5) and 2
10 years in prison
Fine of $250,000
FERNANDO ROMERO BONILLA
a/k/a “Black”
24
Racketeering Conspiracy
18 U.S.C. § 1962(d)
20 years in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
KENNETH CAMPOS,
a/k/a “Nesio”
32
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering (two counts)
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
EVERT
GALDAMEZ
CISNEROS
a/k/a “Talentoso”
23
Racketeering Conspiracy
18 U.S.C. § 1962(d)
20 years in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
LUIS VELIS DIAZ
a/k/a “Popa”
23
Racketeering Conspiracy
18 U.S.C. § 1962(d)
20 years in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
BRIGIDO JOSUE GONZALES SALES a/k/a “Inocente” or “Kiko”
21
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Attempted Murder in Aid of Racketeering
18 U.S.C. § 1959(a)(5) and 2
10 years in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
ABNER MARROQUIN ALEGRIA
a/k/a “Coche” or “Chapin”
41
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
KEVIN REYES MELENDEZ
a/k/a “Neutron”
28
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Attempted Murder in Aid of Racketeering (two counts)
18 U.S.C. §§ 1959(a)(5) and 2
10 years in prison
Fine of $250,000
Discharge of a Firearm During and in Furtherance of a Crime of Violence
18 U.S.C. § 924(c)
Life in prison
(Mandatory minimum of 5 years (7 years if brandished, 10 years if discharged))
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
ELMER RODRIGUEZ
a/k/a “Gordo”
32
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Attempted Murder in Aid of Racketeering
18 U.S.C. §§ 1959(a)(5) and 2
10 years in prison
Fine of $250,000
Discharge of a Firearm During and in Furtherance of a Crime of Violence
18 U.S.C. § 924(c)
Life in prison
(Mandatory minimum of 5 years (7 years if brandished, 10 years if discharged)
Fine of $250,000
KEVIN RAMIREZ VALENCIA
a/k/a “Delincuente”
24
Racketeering Conspiracy
18 U.S.C. § 1962(d)
20 years in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
JOSE MARIA TERCERO PEREZ a/k/a “Delito”
28
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Attempted Murder in Aid of Racketeering
18 U.S.C. §§ 1959(a)(5) and 2
10 years in prison
Fine of $250,000
KEVIN GUATEMALA ZEPEDA
a/k/a “Mision”
25
Racketeering Conspiracy
18 U.S.C. § 1962(d)
Life in prison
Fine of $250,000
Assault with a Dangerous Weapon in Aid of Racketeering
18 U.S.C. §§ 1959(a)(3) and 2
20 years in prison
Fine of $250,000
The court also may order additional terms of supervised release, fines, and restitution. Nevertheless, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case is being prosecuted by the Organized Crime Strike Force of the Office of the United States Attorney. The prosecution is the result of an investigations by HSI, the San Francisco Police Department Homicide unit and Community Violence Reduction Team, San Mateo County Sheriff’s Office Gang Intelligence Unit and Investigations Bureau, Daly City Police Department, Pinole Police Department, Redwood City Police Department Street Crimes Reduction Team, and San Pablo Police Department.
Member of Gregory Butler Drug Trafficking Organization Sentenced to 15 Years in Federal Prison for His Role in the Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Tirrel Saunders, a/k/a “Pretty”, age 35, of Baltimore, Maryland to 15 years in federal prison, followed by five years of supervised release, for conspiracy to distribute controlled substances. Saunders was a member of the Gregory Butler Drug Trafficking Organization (“Butler DTO”) which distributed heroin, fentanyl, cocaine, and crack cocaine in Maryland, Virginia, West Virginia, and Pennsylvania.
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; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Chief Marcus Jones of the Montgomery County Police Department; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his guilty plea, from October 2018 to April 2019, FBI investigators intercepted phone communications of the Butler DTO that operated in and around the Baltimore area, arranging heroin, crack cocaine, and fentanyl sales to drug users and redistributors from Maryland, Virginia, West Virginia, and Pennsylvania. The Butler DTO sold thousands of dollars in narcotics daily and frequently sold over 100 grams of heroin mixed with fentanyl on a daily basis. Customers of the Butler DTO believed they were purchasing heroin; however, the Butler DTO adulterated all heroin it sold with fentanyl.
As stated in his plea agreement, Saunders was identified as a Butler DTO supervisor, which involved managing the daily supplies of narcotics and the collection of drug proceeds from distributors. FBI investigators intercepted communications of Saunders regularly arranging the resupply of heroin and crack cocaine to co-conspirators who would then sell those narcotics to customers. Saunders also communicated with Butler DTO leadership and acted as a liaison between Butler DTO leadership and street-level distributors.
Saunders agreed that over the course of the conspiracy, he distributed over one kilogram of heroin to street-level distributors.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
This case is also 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, DEA, Montgomery County Police Department, and the Baltimore Police Department for their work in the investigation. United States Attorney Barron also recognized the U.S. Postal Inspection Service; the City of Rockville Police Department; the Baltimore County, Howard County, and Montgomery County Police Departments; the Frederick County Sheriff’s Office; the Maryland State Police; the West Virginia State Police; the Virginia State Police; the Warren County (VA) Sheriff’s Department; the Winchester (VA) and Front Royal (VA) Police Departments; and the Frederick County and Howard County State’s Attorney’s Offices for their assistance. United States Attorney Barron thanked Assistant U.S. Attorneys Matthew DellaBetta and Peter J. Martinez, who prosecuted the case.
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Massachusetts Man Sentenced to 45 Months for Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Miguel Skrl Guillermo-Graseki, 23, of Lawrence, Massachusetts was sentenced to 45 months in federal prison for conspiracy to distribute fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between June and September of 2020, Guillermo-Graseki conspired with a Lawrence-based fentanyl distributor (MA Source) to distribute fentanyl in New Hampshire and Massachusetts to a confidential source (CS) and undercover Drug Enforcement Administration Task Force Officer (DEA TFO). Guillermo-Graseki was used as a “go-between” for the MA Source to negotiate prices and quantities of drugs and arrange meeting spots in Massachusetts and New Hampshire. During this time frame, the CS and DEA TFO made purchases totaling over 98 grams of fentanyl powder and 8,844 fentanyl pills.
“Fentanyl trafficking continues to present a significant threat to communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “By trafficking in pills that contained fentanyl, this defendant put customers’ lives at risk because even one fentanyl pill can kill. To protect the residents of the Granite State, we will continue to work with the DEA to identify and prosecute those who distribute fentanyl and other deadly drugs.”
This matter was investigated by the Drug Enforcement Administration, Federal Bureau of Investigation Safe Streets Task Force and the New Hampshire State Police. The case was prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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Marion Man Sentenced to Federal Prison for Making over $250,000 in Phony PostageRead the Press Release
A Corridor e-Bayer, who forged and counterfeited over $250,000 in postage and made false statements on international customs forms, was sentenced on November 12, 2021, to three years in federal prison.
Bradley Jon Matheny, age 43, from Marion, Iowa, received the prison term after a March 2, 2021 verdict finding him guilty of seven counts of postage meter stamp forgery and counterfeiting and three counts of export violations. The verdict and sentencing followed a day-long trial that was held in February.
The evidence at the trial and the sentencing hearing showed that Matheny operated an eBay business known as “Mathenys” from his residence in Marion. Through “Mathenys,” Matheny sold retail goods to individuals all over the United States and around the world. Matheny used the United States Postal Service (USPS) to ship these goods to his customers. In 2015, for example, Matheny shipped over 28,000 packages with the USPS. Postage posed a significant financial cost to Matheny’s business. To reduce his costs, and increase his profit, Matheny possessed and used forged and counterfeited postage meter stamps on many of the packages he sent to his customers between 2013 and 2017.
In 2015, USPS personnel at the Cedar Rapids Main Post Office became suspicious of Matheny’s mailing practices after he kept dropping off his packages at the post office late in the evening at the dock. USPS eventually alerted federal law enforcement, specifically the United States Postal Inspection Service (USPIS), that Matheny might be falsifying postage in connection with his eBay business. A review of Matheny’s packages in late 2015 revealed that most of Matheny’s packages had either insufficient postage or a forged or counterfeited postage meter stamp. Similar reviews in 2016 and 2017 yielded similar results.
In 2017, law enforcement officers executed a federal search warrant at Matheny’s residence, a single-family house in Marion. During the search, the USPIS seized a large number of unusual paper clippings of partial Priority Mail and First Class postage meter stamps as well as a handwritten list of crossed-out Priority Mail tracking numbers. Law enforcement also imaged Matheny’s electronic devices and, on his computer, found a number of the unaltered electronic versions of the forged postage meter stamps in question. Later, working with representatives of eBay, law enforcement learned that Matheny was taking advantage of vulnerabilities in the USPS’s electronic postage payment systems to receive Priority Mail treatment for his packages even though he had only paid the First Class rate. At Matheny’s sentencing, a USPIS inspector testified that the face value of the counterfeited and forged postage that Matheny manufactured between 2013 and 2017 exceeded $380,000.
Some of Matheny’s customers lived overseas, including in Russia, Israel, New Zealand, and South Africa. The USPS required Matheny to make truthful declarations on these exports to other countries. Specifically, Matheny was required to truthfully declare whether the package contained merchandise or a gift and also the value of the contents of the package. Matheny falsely certified on these forms that his packages each contained a “gift” that was worth a nominal sum such as “$1.90,” when in truth Matheny knew the contents of his packages were not gifts and worth more than what he listed on the forms. This allowed Matheny’s packages to clear foreign customs more rapidly and possibly avoid foreign customs taxes.
Matheny was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Matheny was sentenced to 36 months’ imprisonment and fined $10,000. He was also ordered to make $256,441.78 in restitution to the USPS. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Matheny was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Timothy L. Vavricek and investigated by the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-50.
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Manhattan Real Estate Fund Manager Charged with Securities Fraud OffensesRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Philip R. Bartlett, the Inspector-in-Charge of the New York Division of the U.S. Postal Inspection Service (“USPIS”), announced today the unsealing of an indictment charging JOSHUA BURRELL with securities fraud, wire fraud, and aggravated identity theft in connection with his operation of a New York-based investment firm, Activated Capital, LLC. Based on fraudulent representations, BURRELL sought to raise up to $75 million for Opportunity Zone Funds, which are vehicles for making real estate investments in economically distressed areas. BURRELL touted Activated Capital’s Opportunity Zone Funds for delivering consistent and stable cash flows to investors through targeted eight percent annual distributions. However, contrary to BURRELL’s claims, Activated Capital’s funds did not generate enough income on their real estate investments to make those payments, and BURRELL used investors’ money to help make up the shortfall. BURRELL was arrested this morning in Richmond Heights, Missouri, and is expected to be presented tomorrow before United States Magistrate Judge John Bodenhausen in St. Louis federal court.
U.S. Attorney Damian Williams said: “As alleged, Joshua Burrell solicited investors through a series of lies. While promising investors transparency, he doctored documents and falsely depicted his firm’s finances. Now, Burrell faces prosecution for his alleged crimes.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Mr. Burrell’s scheme is unfortunately not an uncommon scam in the investment community. Investors must always check and double check any firm or individual promising guaranteed positive returns to ensure they will not be taken for a ride. It is a good practice for all investors to trust their gut. If it doesn’t seem right, walk away.”
According to the allegations contained in the Indictment,[1] unsealed today in Manhattan federal court:
From in or about 2019 through in or about 2021, BURRELL sought to obtain tens of millions of dollars of investments for the Activated Tax Advantaged Opportunity Fund, LLC, and Activated Capital Opportunity Zone Fund II, LLC (collectively, the “Activated OZ Funds” or the “Funds”) based on fraudulent representations. BURRELL represented, in substance, that the money invested in the Activated OZ Funds would be used to purchase real estate properties in Opportunity Zones and that investors would receive distribution payments out of the Funds’ net real estate investment income. Contrary to those representations, BURRELL caused the Activated OZ Funds to pay putative distributions in amounts greater than the Funds’ net income. From the inception of the Funds in 2019 through approximately February 2021, BURRELL used investor money to help pay distributions totaling approximately $470,000 in a manner akin to a Ponzi scheme. BURRELL also falsely inflated Activate Capital’s assets under management in communications with prospective investors.
To attract additional investment capital for the Activated OZ Funds, BURRELL sought to establish a partnership with an investment bank headquartered in Manhattan (“Company-1”). As part of Company-1’s diligence process, Company-1 asked BURRELL for “[b]acking to show current fund proceeds/acquisitions made.” In response to these requests, BURRELL fabricated documents to make it appear that the Activated OZ Funds were more successful, owned more properties, and were in better financial condition than was actually the case. For example, BURRELL sent Company-1 fake bank statements making it appear that, for the period July 2019 through October 2019, one of the Activated OZ Funds had ending monthly account balances of between approximately $2,094,450 and $2,463,100 when the real account statements for that period showed ending monthly balances of between only $116,369 and $154,399.
BURRELL fabricated additional documents to make it appear to Company-1 that an Activated Capital affiliate had purchased nine properties in Detroit, Michigan, when none of the transactions had taken place. The fabricated documents contained identifying information for two individuals that BURRELL used without lawful authority.
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JOSHUA BURRELL, 38, of New York, New York, faces a maximum sentence of 20 years in prison on each of the securities and wire fraud counts and a mandatory sentence of two years in prison on the aggravated identity theft count, which must run consecutively to any other sentence of imprisonment. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of a defendant would be determined by the judge.
Mr. Williams praised the investigative work of the U.S. Postal Inspection Service. Mr. Williams also thanked the Securities & Exchange Commission, which brought a separate civil action against BURRELL.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Daniel Loss and Alexander Rossmiller are 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 descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Man in U.S. Illegally is Sentenced to Prison for Fraud and Aggravated Identity TheftRead the Press Release
ERIE, Pa. - An individual believed to have entered the United States illegally in March 2018 has been sentenced in federal court to 42 months in jail and ordered to pay $106,341.07 in restitution on his conviction of access device fraud and aggravated identity theft, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Susan Paradise Baxter imposed the sentence on Janos Vaczi, 51.
According to information presented to the court, from March 2018 to June 22, 2019, Vaczi and his co-conspirators installed ATM skimming equipment on numerous ATM machines throughout Northwest Pennsylvania. The skimming equipment unlawfully captured the bank account and personal identity information of numerous individuals. Vaczi and his cohorts then placed the unlawfully captured information on to other cards which they then used at various ATM machines to unlawfully obtain thousands of dollars in victim funds.
During the investigation, the FBI searched a storage locker that Vaczi had rented in the Pittsburgh area. Inside the storage locker the FBI discovered hundreds of cards that contained stolen bank account information which enabled Vaczi and his co-conspirators to use the cards at various ATM machines to steal funds from the victims’ bank accounts. Vaczi’s storage locker also contained $10,000, ATM skimming equipment and numerous fake passports and international driver’s licenses bearing Vaczi’s picture but with different names.
Shortly before the FBI apprehended Vaczi, he attempted to bury hundreds of cards containing stolen identity information near a grocery store in the Pittsburgh area. Agents noticed that the ground had been disturbed in the area where Vaczi had been standing and discovered the cards shortly thereafter.Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Vaczi.
Lolo man sentenced to prison for role in meth trafficking ringRead the Press Release
MISSOULA — A Lolo man who admitted to selling an undercover informant methamphetamine as part of a large trafficking ring was sentenced on Nov. 12 to seven years in prison to be followed by four years of supervised release, Acting U.S. Leif M. Johnson said today.
Jason Dean Hager, 56, pleaded guilty in May to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
The government said in court documents that Hager participated with three other co-defendants in trafficking large amounts of meth in the Missoula community from 2018 through 2021. In December 2019, Hager sold meth to an undercover informant three times in monitored transactions. Law enforcement agents further learned that a confidential informant saw Hager with one and one-half pounds of meth and that he helped a co-defendant move numerous pounds of meth and kept some to use as his own supply.
Co-defendants Terry David Starrett was sentenced to 15 years in prison, Laura Jeanne Haacke was sentenced to 54 months in prison and Jennifer Renee Hawkes was sentenced to 63 months in prison for their convictions in the case.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, the Missoula Police Department and the Missoula County Sheriff’s Office.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Local 98 Leader John Dougherty, Philadelphia City Councilmember Robert Henon Found Guilty of Public CorruptionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that John Dougherty, Business Manager of Local 98 of the International Brotherhood of Electrical Workers (“Local 98”), 61, of Philadelphia, PA, and Robert Henon, Philadelphia City Councilmember, 52, of Philadelphia, PA, were convicted at trial today of multiple crimes involving public corruption
The jury convicted John Dougherty of the following crimes: one count of conspiracy to commit honest services fraud (Count One), and seven counts of honest services wire fraud (Counts Four, Five, Six, Seven, Eight, Nine, and Ten). The jury convicted Robert Henon of the following crimes: one count of conspiracy to commit honest services fraud (Count One), eight counts of honest services wire fraud (Counts Four, Five, Six, Seven, Eight, Nine, Ten, and Twelve), and one count of bribery (Count Sixteen).
The honest services wire fraud convictions against both defendants were premised on the following schemes proven at trial: L&I/CHOP; Plumbing Code/Building Trades; Towing; Comcast; and Soda Tax #2. The additional honest services wire fraud count against Henon (Count Twelve) was predicated on a $5,000 campaign contribution from CWA to Henon’s campaign bank account. The bribery conviction against Henon (Count Sixteen) was based on the same $5,000 check, written on the account of the CWA.
Dougherty, Henon and others affiliated with Local 98 were charged by Indictment in January 2019. The trials were bifurcated thereafter, leaving Dougherty and the other defendants to stand trial on the embezzlement and tax fraud charges at a later date. The Indictment charged that Dougherty and Henon defrauded the City of Philadelphia and its citizens of the right to Henon’s honest services as a member of City Council. Evidence presented at trial demonstrated that Henon received a salary and other things of value from Dougherty and, in exchange, Henon used his position as a member of City Council to serve Dougherty’s interests.
“Today’s verdict is a strong message to the political power players of this city that the citizens of Philadelphia will not tolerate public corruption as ‘business as usual',” said Acting U.S. Attorney Jennifer Arbittier Williams. “John Dougherty is not above the law. He is not entitled, had no right, to pull the strings of official City business as if he were elected to office. And Bobby Henon was not elected to represent Local 98 or John Dougherty’s interests on City Council, or any union for that matter, but to represent all the people of the City’s 6th Councilmanic District – a fact which he failed to remember in doing the bidding of his political godfather, Dougherty. Philadelphians deserve more than a system that favors the few who have a ‘person they can call’ to get things done. Everyone deserves equal access to the decision-makers in their government.”
“From the start, John Dougherty and Bobby Henon sought to tag this as an anti-union case,” said Jacqueline Maguire, Special Agent in Charge of the FBI's Philadelphia Division. “Let's be clear. The FBI has no problem with labor unions. It's criminals we're after, like a local power broker who gives an elected official a handsome salary and benefits he didn't earn, in exchange for doing that benefactor's business at City Hall. Today, the jury called it what it was, a crooked quid pro quo — one that tilted the playing field in Dougherty's favor, giving him an unfair advantage over every Philadelphian who acts with fairness and integrity. That is corruption, that is wrong, and this city deserves so much better.”
“The consequences to those who betray the public trust by making and receiving bribe payments are evident by today’s convictions,” said Yury Kruty, Acting Special Agent in Charge of IRS-Criminal Investigation. “Cases involving betrayal of the public’s trust are of utmost importance and IRS-CI will continue to be a partner in the efforts to bring criminals like this to justice.”
“One of the functions of the U.S. Department of Labor’s Office of Labor-Management Standards is to see to it that union funds are used for proper purposes. It is never proper – and is indeed criminal – to do what Mr. Dougherty did here: use union funds to bribe a politician. Working with our Federal and state investigative partners, OLMS will hold accountable anyone who misuses their office and their union’s funds in this way,” said OLMS District Director Megan Underwood.
“Union officials must ensure that only those individuals who perform rightful union work be permitted to participate in union employee benefit plans. EBSA will vigorously pursue those who arrogate employee benefits intended exclusively for hard–working union members,” said Michael Schloss, Philadelphia Regional Director of the U.S. Department of Labor’s Employee Benefits Security Administration.
“An important part of the mission of the Office of Inspector General is to investigate allegations relating to labor racketeering. Today’s guilty verdict for John Dougherty, Business Manager of Local 98 of the International Brotherhood of Electrical Workers and City of Philadelphia Councilmember Robert Henon for conspiracy and honest services fraud is an affirmation of our commitment to working with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards and Employee Benefits Security Administration to pursue union-affiliated corruption investigations,” said Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, the U.S. Department of Labor Employee Benefits Security Administration, the U.S. Department of Labor Office of Labor Management Standards, the U.S. Department of Labor Office of Inspector General, and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney General’s Office. It is being prosecuted by Assistant United States Attorneys Frank Costello, Bea Witzleben, and Richard Barrett.
Kotzebue Man Sentenced to Seven Years in Prison for Incessant StalkingRead the Press Release
ANCHORAGE – A Kotzebue man was sentenced by U.S. District Judge Sharon L. Gleason to seven years in federal prison followed by three years of supervised release for cyberstalking two individuals who were carrying out their professional responsibilities to protect a child from abuse or neglect.
According to court documents, Louis Holger Eklund, 41, relentlessly stalked and threatened two victims and their family members for nearly three years causing them to fear being attacked in their homes and seriously harmed. The victims are an attorney with the Alaska Attorney General’s office and the then-President of the Native Village of Kotzebue. Following a report from the Alaska Office of Child Services that Eklund had abandoned his infant son, the victims followed their professional responsibilities initiating the Child in Need of Aid (CINA) proceedings. Since the CINA proceeding involved an Alaska Native child, the Native Village of Kotzebue became involved per the Indian Child Welfare Act.
Eklund caused extreme emotional distress to both victims through dozens of phone calls, voicemails and emails in an effort to intimidate their conduct in the proceedings and retaliate against the work they had already done. Even after his indictment and arrest and while trial was pending, Eklund made it clear that he believed his crimes were justified by the victims’ actions and that the laws did not apply to him. Eklund also has a criminal history and a pattern of violence, violating court orders and actively resisting law enforcement.
Eklund is the second person to recently be sentenced for terrorizing people working in child protection. In March, the U.S. District Court sentenced Peter Lee Norris, also known as Bjorn Erik Happaniemi, to nine years in prison for stalking and threatening an Office of Children’s Services case worker, her attorney and an FBI agent who investigated the case.
“The defendant’s incessant harassment and threats to both victims and their family members was terrifying,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “There is perhaps no higher calling than protecting children who may be in harm’s way. Stalking and threatening these individuals for carrying out their professional responsibilities is detestable and a criminal act for which we will always seek justice.”
“Using online tools to scare and disrupt their daily lives, the defendant tormented and caused substantial distress to both victims, who were merely fulfilling their professional responsibilities,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “In Alaska, no one should feel unsafe in their own home, workplace or community, and the FBI will continue to hold accountable those who engage in such conduct.”
The Federal Bureau of Investigation (FBI) conducted the investigation leading to the successful prosecution of the case.
Assistant U.S. Attorney Jonas Walker prosecuted the case.
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KC Man Pleads Guilty to Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to illegally possessing three firearms that he sold to an undercover law enforcement officer.
Robert E. Shepherd, 50, pleaded guilty before U.S. Chief District Judge Beth Phillips to one count of being a felon in possession of firearms.
By pleading guilty today, Shepherd admitted that he sold a Glock 9mm pistol to an undercover federal agent for $500 on Aug. 31, 2020. Shepherd also admitted that he sold a Ruger .40-caliber pistol to an undercover federal agent for $700 on Sept. 1, 2020, and a Taurus 9mm pistol to a federal agent for $460 on Sept. 10, 2020. Each of the three transactions occurred at Shepherd’s residence.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearms or ammunition. Shepherd has two prior felony convictions for tampering with a motor vehicle, and prior felony convictions for being a felon in possession of a firearm and statutory sodomy.
Under federal statutes, Shepherd is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by 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.
Justice Department Settles with Cooler Production Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with Igloo Products Corp., a company that produces coolers, jugs and hydration products, based in Katy, Texas. The settlement resolves the department’s claims that Igloo did not consider workers in the United States (such as U.S. citizens, U.S. nationals, asylees, refugees and recent lawful permanent residents) for certain jobs because the company set aside those positions for workers on temporary work visas.
The department’s investigation concluded that Igloo failed to consider applicants in the United States for seasonal production helper positions because the company assumed that U.S. workers would not be interested in temporary seasonal employment. Instead, Igloo reserved its seasonal production helper positions for workers with H-2B visas based on their immigration status. Under the Immigration and Nationality Act (INA), employers generally cannot discriminate based on citizenship, immigration status or national origin at any stage of the hiring process. In addition, the Department of Labor requires employers seeking permission to hire H-2B workers to first hire all qualified and available U.S. workers who apply by the relevant deadline.
“Employers cannot favor workers on temporary visas and ignore applications from qualified U.S. workers because of assumptions based on citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will not tolerate unlawful employment discrimination and is committed to holding violators accountable.”
Under the terms of the settlement agreement, Igloo will pay $21,000 in civil penalties to the United States and will make $40,000 in back pay available to eligible discrimination victims. Igloo will also change its policies and procedures to comply with the INA’s anti-discrimination provision, train its employees on the requirements of the law, undertake additional recruitment efforts before seeking H-2B visas in the future, and be subject to monitoring for a three-year period to ensure the company is complying with the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Awards Nearly $104 Million to Help Crime Victims in Indian CountryRead the Press Release
The Office for Victims of Crime (OVC), a component of the Department of Justice’s Office of Justice Programs (OJP), has awarded nearly $104 million to serve victims in tribal communities, of which nearly $101 million was awarded through the Crime Victims Fund Tribal Victim Services Set-Aside.
More than 140 awards were made through the Tribal Victim Services Set-Aside formula program to fund culturally-appropriate victim services to meet the needs of Tribal communities.
“American Indian and Alaska Native crime victims deserve the same access to services and the same level of support available to survivors in other communities,” said Associate Attorney General Vanita Gupta. “This administration, and this Department of Justice, are committed to fully discharging our responsibilities to Indian nations, especially to those who have experienced the pain and loss that follow victimization. These funds will help establish, expand and enhance services that are vital to recovery and healing.”
The funds can be used for many victim services purposes, including the development, enhancement and implementation of programs; strategic planning; and needs assessments. Funds may also be used to offer shelter and transitional housing services; crisis abuse intervention; legal services; medical and dental care; mental health care; transportation; and education and employment readiness.
“American Indians and Alaska Natives experience crime and victimization at disproportionate rates, and they are often unable to access the services they need to begin the road to healing,” said Acting Assistant Attorney General Amy L. Solomon of the Justice Department’s Office of Justice Programs. “These awards will support service providers as they undertake the critical work of helping survivors meet basic material and emotional needs and rediscover hope in the wake of tragedy.”
Under the Set-Aside, OVC is:
- Supporting Tribal grantees with capacity building, training and technical assistance ($6.8 million) through the Tribal Set-Aside Training and Technical Assistance Program, the Tribal Financial Management Center and the Human Trafficking Capacity Building Center;
- Updating the Tribal Resource Tool ($199,999) which maps the availability of victim services in Tribal communities;
- Contributing to the Tribal Access Program ($420,000);
- Conducting the next National Indian Nations Conference ($680,796);
- Transferring funding to the Bureau of Indian Affairs to support the Federal Crime Victim Assistance Fund ($30,000) and Victim Specialist positions (more than $1.7 million); and
- Providing funding to the Bureau of Justice Assistance to support Coordinated Tribal Assistance Solicitation Purpose Area 2 ($250,000) and Tribal construction contracts ($251,332).
In addition to funds available to support Tribal communities under the Set-Aside, the remaining $3 million will be awarded under the Children’s Justice Act Partnership to Tribes to respond to cases involving criminal child abuse and neglect.
The Crime Victims Fund was established by the Victims of Crime Act of 1984. It is financed, not by tax dollars, but from criminal fines, forfeited bail bonds, penalty fees and special assessment fees collected by U.S. Attorneys’ Offices, U.S. Courts and the Bureau of Prisons.
Additional information about FY 2021 grant awards from the OJP can be found online at the OJP Award Data Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
Justice Department Announces More Than $73 Million to Help Crime Victims and Improve Public Safety in American Indian and Alaska Native CommunitiesRead the Press Release
The Department of Justice today announced that it will award 137 grants to 85 American Indian and Alaska Native communities, for a total of $73 million, to improve public safety and serve crime victims. The announcement was made during the White House Tribal Nations Summit taking place virtually today and tomorrow.
These funds are designed to help enhance tribal justice systems and strengthen law enforcement, improve the handling of child abuse cases, combat domestic violence and support tribal youth programs.
“The Justice Department is pleased to make the Coordinated Tribal Assistance Solicitation available to federally recognized tribes, providing a transparent and simple process to apply for grants that best align with their community’s needs,” said Associate Attorney General Vanita Gupta. “This one-step application makes it possible for tribes to access critical resources to help them meet the critical public safety needs of their communities.”
More than four in five of American Indian and Alaska Native adults have experienced some form of violence in their lifetime, according to the Bureau of Justice Statistics. This equates to nearly three million people who have experienced stalking, sexual violence, psychological aggression or physical violence by intimate partners.
“Each year, the department invests millions of dollars to help our Tribal partners confront the challenges of violent crime and domestic abuse in their communities and strengthen their public safety infrastructure,” said Acting Assistant Attorney General Amy L. Solomon for the Justice Department’s Office of Justice Programs. “We are pleased to support the critical work that Tribal nations are undertaking in communities across the country.”
More than $73 million will be awarded under CTAS, a streamlined application which helps tribes apply for tribal-specific grant programs that enhance law enforcement and tribal justice practices, expand victim services and sustain crime prevention and intervention efforts. CTAS grants are administered by OJP ($48 million) and the Office of Community Oriented Policing Services (COPS Office) ($25 million).
“These grants provide vital resources to Tribal law enforcement and their communities by offering equipment and training, along with resources to help officers understand and better serve their communities in areas of domestic abuse, stalking and sex trafficking, and alleviate the detrimental effects that substance abuse and crime have on individuals and their families,” said Acting Director Robert Chapman of the COPS Office
The COPS Office also awarded $400,000 to Western Oregon University to create a structured and tribal-centered innovative approach to enhance the operation of the criminal justice system to address the concerns of the American Indian and Alaska Native communities regarding missing and murdered indigenous people, particularly missing and murdered women and girls.
In addition to CTAS funding, OJP has awarded more than $100 million through the Tribal Victim Services Set-Aside to improve services for crime victims in Tribal communities. OJP’s Office for Victims Crime is supporting tribal grantees with capacity building, training and technical assistance (more than $6.8 million) and an update of the Tribal Resource Tool ($199,999), which maps the availability of victim services in tribal communities. An additional $2.9 million will be awarded under the Children’s Justice Act Partnership to tribes to enhance the handling of cases centered around criminal child abuse and neglect.
The department also funded $6.5 million through OJP’s Office of Sex Offender Sentencing, Monitoring, Apprehending Registering and Tracking to help Tribes comply with federal law on sex offender registration and notification.
Information about FY 2021 grant awards from the Office of Justice Programs can be found online on the OJP Grant Awards Page. The page will be updated as awards are made.
Information about FY 2021 grant awards from the COPS Office can be found online at the COPS Grant Page.
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
The COPS Office is the component of the U.S. Department of Justice responsible for advancing the practice of community policing by the nation's state, local, territorial and Tribal law enforcement agencies through information and grant resources. More information about the COPS Office can be found at https://cops.usdoj.gov/.
Jury Convicts Naval Flight Officer of Firearms Conspiracy and Lying During Security Clearance Background InvestigationRead the Press Release
Jacksonville, Florida – A federal jury has found Fan Yang (36, Jacksonville) guilty of conspiring with his co-defendants Ge Songtao (51, Nanjing, People’s Republic of China) and Yang Yang (36, Jacksonville) to violate U.S. firearms laws, making false written statements to federally licensed firearms dealers during the purchase of two firearms, and making false written statements as part of a security clearance background investigation. Fan Yang faces a maximum penalty of 30 years in federal prison. His sentencing hearing is scheduled for March 16, 2022.
Yang initially was indicted on October 31, 2019, and then subsequently charged by a superseding indictment on November 19, 2020.
According to evidence presented at trial, Yang is a Lieutenant in the U.S. Navy, trained in anti-submarine warfare. As a Naval Flight Officer, he flew in the back of the Navy’s P-8 Poseidon, a land-based patrol aircraft, and operated sensors and coordinated tactics.
Prior to becoming a commissioned naval officer, Yang formed a relationship online with Ge Songtao, a citizen of the People’s Republic of China. Photographs admitted at trial showed that the two eventually met in person in 2013, while Yang was in Navy flight training in Pensacola. In 2016, while Yang was stationed in Jacksonville, Yang recommended that Ge Songtao hire Yang’s wife, Yang Yang, as an employee of Shanghai Breeze Technology Co. Ltd., Ge Songtao’s company headquartered in Shanghai, China. That company purchased in the U.S. and exported to China maritime equipment designed for law enforcement and military missions.
From the time that she was hired, Yang Yang received more than $300,000 in payments from Shanghai Breeze, its creditors, and Ge Songtao’s executive assistant and co-defendant, Zheng Yan. The money was used to pay Yang Yang’s salary, Shanghai Breeze’s expenses in the U.S., and for goods that Ge Songtao ordered the Yangs to purchase. The funds were frequently routed through the Yangs’ family business, BQ Tree LLC.
In 2017 and again in 2018, acting on Ge Songtao’s instructions, Fan Yang purchased two handguns for him, specifically a Sig Sauer 9mm pistol and a Glock 9mm pistol. Ge Songtao reimbursed the Yangs for both purchases and had the Sig Sauer pistol engraved with his initials – “G.S.T.” – and the phrase “Never Out of the Fight.” Each time he purchased a firearm, Fan Yang completed a Firearms Transactions Record (known as ATF Form-4473) on which he falsely represented that he was purchasing the firearm for himself, rather than for Ge Songtao.
The evidence at trial showed that although Ge Songtao employed Yang’s wife, had been to the Yangs’ home, and had paid for the Yangs to travel and visit him, Fan Yang consistently hid their relationship from the Navy. Then in January 2019, while assigned as an instructor at the Maritime Patrol and Reconnaissance Weapons School in Jacksonville, Yang completed and signed a background questionnaire as part of the renewal of his top secret security clearance. That questionnaire (called an SF-86 or e-QIP) required the disclosure of a variety of information, including any close or continuing contact with foreign nationals. Yang failed to disclose the extent of his contacts with Ge Songtao, and hid that he had maintained a bank account in China, sometimes worked for his family business, BQ Tree LLC, and possessed an expired Chinese passport.
On November 2, 2020, Ge Songtao pleaded guilty to conspiring to submit false export information through the federal government’s Automated Export System and to export special forces maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law. On July 14, 2021, he was sentenced to three years and six months years in federal prison. On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge Songtao had pleaded guilty, and on December 9, 2020, was sentenced to a time-served sentence or the equivalent of approximately 14 months’ imprisonment. On August 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately 6 months’ imprisonment and 11 months’ home-detention.
This case was investigated by the FBI, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Michael J. Coolican and Kirwinn Mike, as well as Heather Schmidt, Senior Trial Attorney, Counterintelligence and Export Section, U.S. Department of Justice.
Intermediario panameño en supuesto plan de soborno acusado de lavado de dinero fue extraditado a los Estados Unidos desde GuatemalaRead the Press Release
WASHINGTON – Luis Enrique Martinelli Linares (Luis Martinelli Linares), de 39 años, ciudadano de Panamá e Italia, fue extraditado hoy desde Guatemala hacia los Estados Unidos para enfrentar una acusación presentada ante un tribunal federal en Brooklyn acusándolo a él y a su hermano, Ricardo Alberto Martinelli Linares (Ricardo Martinelli Linares), 42, ciudadano de Panamá e Italia, con delitos de lavado de dinero en relación con un plan masivo de soborno y lavado de dinero en el que involucra a Odebrecht S.A. (Odebrecht), un conglomerado mundial de construcción con sede en Brasil. Él está programado para comparecer por primera vez mañana ante la Magistrada de los Estados Unidos, Marcia M. Henry, del Tribunal de Distrito de los Estados Unidos para el Distrito Este de Nueva York.
Según los expedientes judiciales, el plan implicaba el pago de más de $700 millones en sobornos a funcionarios de gobierno, funcionarios públicos, partidos políticos y otros en Panamá y otros países alrededor del mundo para obtener y retener negocios para la compañía. El 21 de diciembre de 2016, Odebrecht se declaró culpable en el Distrito Este de Nueva York de una acusación criminal de conspiración para violar las disposiciones contra el soborno de la Ley de Prácticas Corruptas Extranjeras (FCPA), por su participación en el plan de soborno y lavado de dinero.
“La exitosa extradición de Luis Martinelli Linares demuestra el compromiso del departamento de trabajar con nuestros socios internacionales para perseguir, capturar y extraditar a quienes usan el sistema financiero de Estados Unidos para promover sus esquemas de corrupción y lavar fondos ilícitos,” dijo el fiscal general adjunto Kenneth A. Polite Jr. de la División Criminal del Departamento de Justicia. “Gracias a los esfuerzos nuestros socios en la aplicación de la ley en Guatemala, Luis Martinelli Linares deberá rendir cuentas en los Estados Unidos por sus presuntos delitos.”
“La extradición de Luis Martinelli Linares al Distrito Este de Nueva York es un primer paso significativo para que rinda cuentas por supuestamente haber lavado millones de dólares en pagos de sobornos a través de cuentas bancarias en Nueva York y otros lugares,” declaró el fiscal para el Distrito Este de Nueva York, Breon Peace. “Combatir el soborno y el lavado de dinero extraditando y enjuiciando a actores extranjeros corruptos como Martinelli es una prioridad del Departamento de Justicia.”
“Cualquier persona que facilite los pagos de sobornos a funcionarios gubernamentales contribuye a los riesgos de seguridad nacional, ya sea de manera abierta o involuntariamente, e interrumpe el sistema de libre mercado del comercio internacional,” dijo Michael J. Driscoll, director adjunto a cargo del FBI. “El FBI utilizará todos los recursos disponibles para poner fin a este tipo de comportamiento corrupto.”
Luis Martinelli Linares y Ricardo Martinelli Linares se presume en la acusación y otras presentaciones judiciales que conspiraron con otros para lavar aproximadamente $28 millones en pagos de sobornos hechos por y bajo la dirección de Odebrecht a un funcionario de alto rango en ese entonces del gobierno de Panamá, que era un pariente cercano de los acusados. Los sindicados fueron inicialmente acusados el 27 de junio de 2020 por medio de una denuncia penal. Los acusados fueron detenidos en el Aeropuerto Internacional la Aurora en Guatemala el 6 de julio de 2020, en cumplimiento de una solicitud de arresto provisional de los Estados Unidos cuando intentaban salir de Guatemala en un avión privado. El 4 de febrero de 2021, Luis Martinelli Linares y Ricardo Martinelli Linares fueron acusados formalmente con cinco cargos. La denuncia acusó a ambos sindicados de un cargo de conspiración para cometer lavado de dinero y dos cargos de encubrimiento de lavado de dinero; Luis Martinelli Linares también fue acusado de dos cargos de participación en transacciones de propiedad obtenida ilícitamente.
El 17 de mayo de 2021, después de la desestimación de varios recursos preliminares, el Tribunal Quinto de Sentencia Penal de Guatemala otorgó la solicitud de Estados Unidos de extraditar a Luis Martinelli Linares. El 21 de junio, la Sala de la Corte de Apelaciones Ramo Penal de Guatemala, confirmó el fallo del tribunal penal guatemalteco que concedía la extradición. El 15 de octubre, el Ministerio de Relaciones Exteriores de Guatemala notificó a los Estados Unidos, mediante una nota diplomática, que la extradición era definitiva y Luis Martinelli Linares estaba listo para ser entregado a los Estados Unidos, dando lugar a su llegada a los Estados Unidos el 15 de noviembre. Los Estados Unidos continúa sus esfuerzos para que Ricardo Martinelli Linares regrese a los Estados Unidos para enfrentar la justicia.
El Departamento de Justicia elogió y agradeció al Gobierno de Guatemala su asistencia en la extradición de Luis Martinelli Linares a los Estados Unidos. La Oficina de Asuntos Internacionales del Departamento de Justicia prestó asistencia considerable para asegurar la detención y extradición de Luis Martinelli Linares. El Ministerio Público Federal de Brasil, el Departamento de Policía Federal, las autoridades encargadas de aplicación de la ley en Guatemala, incluyendo al Ministerio Público de Guatemala y la Unidad Especializada de Asuntos Internacionales, y las autoridades del orden público en El Salvador también proporcionaron una importante cooperación.
La Unidad Contra la Corrupción Internacional del FBI en Nueva York está investigando este caso y la División de Operaciones Internacionales del FBI, el NY-ICS, y el SWAT de Nueva York transportaron a Luis Martinelli Linares desde Guatemala a los Estados Unidos.
El abogado litigante Michael Culhane Harper de la Sección de Fraude de la División Criminal, los abogados litigantes Barbara Levy y Michael Redmann de la Sección de Lavado de Dinero y Recuperación de Activos de la División Criminal (MLARS), y la Fiscal Federal Auxiliar Alixandra E. Smith, de la Fiscalía Federal para el Distrito Este de Nueva York están procesando el caso.
La Sección de Fraude es responsable de investigar y procesar todos los asuntos de la Ley de Prácticas Corruptas en el Extranjero (FCPA). Puede encontrar información adicional sobre los esfuerzos del Departamento de Justicia para hacer cumplir la FCPA en www.justice.gov/criminal/fraud/fcpa.
La Iniciativa de Recuperación de Activos de la Cleptocracia en MLARS fue creada para procesar a las personas que lavan dinero y confiscar el producto de la corrupción de funcionarios extranjeros y, cuando es apropiado, utilizar esos activos recuperados para beneficiar a las personas perjudicadas por la corrupción y el abuso de poder. Las personas que tienen información sobre posibles ingresos de corrupción extranjera ubicadas en o lavadas a través de los Estados Unidos deben contactar a la policía federal o enviar un correo electrónico a [email protected].
Una imputación es simplemente una acusación, y todos los acusados se presumen inocentes hasta que se demuestre su culpabilidad más allá de una duda razonable en un tribunal de justicia.