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21 December 2021
Statement by Attorney General Merrick B. GarlandRead the Press Release
Attorney General Merrick B. Garland issued the following statement in reference to today’s Office of Legal Counsel opinion on home confinement:
“Thousands of people on home confinement have reconnected with their families, have found gainful employment, and have followed the rules. In light of today’s Office of Legal Counsel opinion, I have directed that the Department engage in a rulemaking process to ensure that the Department lives up to the letter and the spirit of the CARES Act. We will exercise our authority so that those who have made rehabilitative progress and complied with the conditions of home confinement, and who in the interests of justice should be given an opportunity to continue transitioning back to society, are not unnecessarily returned to prison.”
Southwestern PA Man Pleads Guilty to Cocaine PossessionRead the Press Release
PITTSBURGH - A southwestern Pennsylvania resident has pleaded guilty to a charge of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.
Leonard Jackson, age 45, of Washington, PA 15301 and Brownsville, PA 15417, pleaded guilty to a one-count indictment charging him with possessing with the intent to distribute 500 grams or more of cocaine before United States District Judge Christy Criswell Wiegand.
In connection with the guilty plea, the Court was advised that on or about June 3, 2021, agents executed a federal search warrant for Jackson’s residence, where they found approximately a kilogram of cocaine, a Schedule II controlled substance, along with other drug packaging materials and U.S. Currency.
Judge Wiegand scheduled sentencing for April 26, 2022 at 10 a.m. The law provides for a total sentence of not less than 10 years in prison, a fine of not more than $8,000,000, and a term of supervised release of at least 8 years. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Jonathan D. Lusty and Yvonne M. Saadi prosecuted this case on behalf of the government.
The Federal Bureau of Investigation, the Pennsylvania State Police, and the Perryopolis Police Department conducted the investigation that led to the prosecution of Jackson.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. 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.
South Sioux City Man Sentenced to Federal Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
South Sioux City, Nebraska man who conspired to distribute methamphetamine around the tristate area was sentenced December 17, 2021, to 10 years in federal prison. Jose Elorza, age 25, received the prison term after an August 5, 2021, guilty plea to conspiracy to distribute a controlled substance.
In a plea agreement, Elorza admitted to selling methamphetamine (approximately 3 pounds total) in March 2021.
Elorza was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand to 120 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Elorza is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Ron Timmons and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4039.
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Seymour Manufacturing Company Pleads Guilty to Violating Clean Water Act; Agrees to Pay $2.4 MillionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, Tyler Amon, Special Agent in Charge of EPA’s Criminal Investigation Division for New England, and Commissioner Katie Scharf Dykes of the Connecticut Department of Energy and Environmental Protection announced that MARMON UTILITY LLC waived its right to be indicted and pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a felony violation of the Clean Water Act for knowingly failing to properly operate and maintain the industrial wastewater treatment system and sludge-processing equipment at the Kerite Power Cable & Pump Cable factory located at 49 Day Street in Seymour, Connecticut. Marmon Utility LLC (“Marmon”), a subsidiary of Berkshire Hathaway, owns and operates the factory.
Under the terms of its plea agreement, if accepted by the court, Marmon will be under federal probation for three years and must pay $2.4 million to the government: $800,000 as a federal penalty and $1.6 million to fund a community service project administered by the Connecticut Department of Energy and Environmental Protection (“CT DEEP”) to remediate the Naugatuck River.
According to court documents and statements made in court, the Kerite Power Cable & Pump Cable (“Kerite”) factory in Seymour manufactures large power cables and generates industrial wastewater containing heavy metals such as lead and zinc. Under its 2015 CT DEEP permit, Marmon was required to properly operate and maintain the wastewater treatment system at the factory to reduce the heavy-metal content by chemical precipitation before the wastewater could be discharged to the sewage treatment plant.
The investigation revealed that Marmon had been cutting back on its environmental compliance program for many years, and had not had an employee with an environmental background running its wastewater treatment system since February 2004. When the operator of the wastewater treatment system became ill in March 2016, Marmon ran the system for approximately five months with maintenance employees who lacked environmental training and training on the treatment system.
On September 7 and 8, 2016, the superintendent of the Seymour treatment plant observed unusual, rusty brown wastewater flowing into the plant and notified CT DEEP. This rusty brown influent was interfering with the decomposition of the sewage. The superintendent took samples and determined that the lead concentration of the rusty brown influent was approximately 127 times greater than the plant’s normal lead measurement, and that its zinc concentration was over 10 times the typical zinc concentration. During the next several days, the superintendent had to order several truckloads of biologic microorganisms to break down the unprocessed sewage. It took two weeks for the treatment plant to return to usual operational capacity.
On September 27 and 29, 2016, CT DEEP and the plant superintendent inspected Marmon’s Kerite facility and concluded that it had discharged the rusty brown influent with the high lead and zinc concentrations on September 7, 8, and 9, 2016. CT DEEP issued a Notice of Violation to Marmon based on, among other evidence:
- The Marmon facility manager’s statements (1) that the wastewater treatment operator had not been at the facility since the end of March 2016 due to medical reasons; (2) that no sludge had been processed in the filter press since this employee’s departure; and (3) no other Marmon employee had been trained to process sludge as required under the CT DEEP permit.
- The Kerite factory had discharged 5,725 gallons of industrial wastewater on September 7, 2016, and 5,225 gallons on September 8, 2016, which exceeded the daily discharge limit in Marmon’s CT DEEP permit.
- The lead concentration in water samples taken from Marmon’s final discharge tank, which flows to the Seymour sewage treatment plant, was 69 times greater than the permissible limit in Marmon’s CT DEEP permit. The zinc concentration was 8.5 times greater than the prescribed limit.
The EPA’s investigation further disclosed that from at least April 24, 2016, and until September 29, 2016, the Marmon maintenance employees operating the wastewater treatment system did not know how to check and maintain the pH probe, operate the sludge filter press, check or change certain filters. These were all key components of the treatment system used to remove heavy metals from the factory’s industrial wastewater. These employees also did not have access to detailed manuals for operating the system.
In fact, these Marmon employees informed investigators that, during this time period, when certain tanks became full and the system was imbalanced, they would empty the tank by opening certain valves to discharge the industrial wastewater without treating it. As of mid-October 2016, the 3,000-gallon holding tank in Marmon’s wastewater treatment system held 1,000 gallons of sludge.
In addition to not properly operating and maintaining the wastewater treatment system and sludge-processing equipment at the Seymour factory, Marmon has also admitted to knowingly exceeding its maximum daily discharge limit in its CT DEEP permit on September 7 and 8, 2016, knowingly failing to notify CT DEEP promptly of the improper bypass, and that it had stopped processing the sludge using a sludge filter press as required under the CT DEEP permit.
“Any company operating a factory in Connecticut that ignores federal and state environmental laws does so at its own peril,” said Acting U.S. Attorney Boyle. “Marmon failed to properly operate its industrial wastewater treatment system, thereby allowing unacceptably high levels of lead and zinc in its factory wastewater to flow to the Seymour sewage treatment plant – nearly knocking it offline. Although Marmon once had a robust environmental program, the company gradually eliminated its environmental compliance department and reassigned these duties to maintenance workers with minimal training. Today’s prosecution under the CWA is the direct result of Marmon’s penny-wise, pound-foolish approach. We recognize and thank the EPA and CT DEEP for their invaluable work in protecting the environmental integrity of Connecticut’s rivers and the Long Island Sound.”
“A town’s publicly owned wastewater treatment plant disinfects incoming wastewater from industry so clean water can be safely returned to our creeks, rivers, and lakes,” explained Special Agent in Charge Tyler Amon with EPA’s Criminal Investigation Division for New England. “The criminal conduct of Marmon Utility compromised Seymour’s operations and the company simply did not play by the rules. Today’s criminal pleading demonstrates again the U.S. Attorney’s Office and EPA’s commitment to protecting Connecticut’s environment.”
“By disinvesting in environmental management and the proper operation and maintaining of its wastewater pretreatment systems, Marmon’s conduct compromised the Town of Seymour’s Publicly Owned Treatment Works’ ability to properly treat all the wastewaters it receives from its community and protect the quality of the Naugatuck River for fishing and swimming, “ DEEP Commissioner Katie Dykes said. “This action sends a clear message – everyone has a role in protecting public health and our environment and there are significant consequences for not obeying our environmental laws and regulations. Funds that will be provided to DEEP as a result of the proposed settlement of this case will strengthen programs that preserve and improve the quality of the Naugatuck River and its aquatic ecosystem. This settlement was achieved through a strong partnership of the DEEP, the EPA and the U.S. Attorney’s Office. DEEP is proud to have played a part in this effort.”
This Clean Water Act offense carries a fine of not less than $5,000 but not more than $50,000 per day of the violation.
Judge Dooley has scheduled sentencing for April 7, 2022.
This matter has been investigated by the U.S. Environmental Protection Agency and the Connecticut Department of Energy and Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Hal Chen, with assistance from the Connecticut Office of the Attorney General.
Sex Offender Sentenced for Failing to Update Registration After Moving to VermontRead the Press Release
The United States Attorney for the District of Vermont announced that Curtis Johnston, 39, formerly of Putnam County, Tennessee, was sentenced today in U.S. District Court in Rutland. Johnston had earlier pleaded guilty to traveling in interstate commerce without updating his registration under the Sex Offender Registration and Notification Act (“SORNA”).
Chief U.S. District Judge Geoffrey W. Crawford imposed a sentence of time served, reflecting over five months Johnston spent in pretrial detention, to be followed by a five-year term of supervised release.According to court records, Johnston was convicted in Tennessee of aggravated statutory rape in 2012. He was accordingly required to register as a sex offender with officials of any state where he resided or to which he relocated. Under federal law, when a sex offender moves from one state to another, he has three days to update his registration. Johnston relocated to Vermont in or about October 2020, but had not updated his registration to reflect his new residence as of July 2021.
The U.S. Marshals Service investigated this case.
Assistant U.S. Attorney Spencer Willig represented the United States. The defendant was represented by Jean-Claude Charbonneau.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and Child Exploitation Obscenity Section, Criminal Division (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Registered Sex Offender Sentenced to 288 Months in Prison for Production of Child PornographyRead the Press Release
ST. PAUL, Minn. – An Isanti County man has been sentenced to 288 months in prison followed by 25 years of supervised release for producing child pornography.
According to court documents, Russell James Anderson-Baldwin, 39, used Instagram, Snapchat, and other online messaging apps to communicate with a minor victim. Between December 2019 and August 2020, Anderson-Baldwin coerced the minor to create sexually explicit videos. In total, Anderson-Baldwin created approximately 286 sexually explicit videos of the minor. Investigators also found on Anderson-Baldwin’s phone approximately 140 sexually explicit images and videos of other minor victims.
On January 16, 2020, Anderson-Baldwin was convicted in Isanti County of three counts of possession of child pornography. As a result of those convictions, he was required to register as a sex offender and was on probation when he committed the production offense. Anderson-Baldwin pleaded guilty in federal court on June 22, 2021, to one count of production of child pornography.
Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Donovan W. Frank sentenced the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is the result of an investigation conducted by the Minnesota Bureau of Criminal Apprehension and the Ramsey County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorney Evan B. Gilead.
Rapid City Man Indicted on Child Pornography ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Sexual Exploitation of a Minor, Receipt of Child Pornography, and Possession of Child Pornography.
Harland Bernard Johnson, age 73, was indicted on November 18, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on December 15, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 15 up to 30 years in federal prison and/or a $250,000 fine, lifetime supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
Johnson was federally indicted following a Cybertip from the National Center of Missing and Exploited Children. The charges relate to Johnson producing child pornography between October 2018 and November 2018, as well as receiving and possessing child pornography between January 2018 and February 2021, at Rapid City. The charges are merely accusations and Johnson is presumed innocent until and unless proven guilty.
The investigation is a joint effort between the Internet Crimes Against Children Taskforce, Homeland Security Investigations, South Dakota Division of Criminal Investigation, Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah B. Collins is prosecuting the case.
Johnson was released on conditions pending trial. A trial date has not yet been set.
Raleigh Man Sentenced to 17 ½ Years on Child Pornography Charge After Sex Trafficking 14-Year-Old RunawayRead the Press Release
NEW BERN, N.C. – Marcus Antwan Gambrell, 30, of Raleigh, was sentenced today to 210 months in prison for manufacturing child pornography. Gambrell and co-defendant Kevin Rudolph were charged in a four-count superseding indictment on April 7, 2020. The indictment charged both men with sex trafficking of a minor and using the internet to promote prostitution, Gambrell with manufacturing child pornography, and Rudolph with possession of a firearm by a felon. Gambrell pled guilty to the manufacturing charge on January 19, 2021.
According to court records and statements made during hearings, on December 28, 2018, a detective of the Raleigh Police Department was conducting an online investigation when he came across an advertisement offering a minor for prostitution. Law enforcement identified the minor as a 14-year-old girl who had run away from a temporary home six days earlier. The detective texted the phone number listed on the advertisement to set up a prostitution sting date. He was directed to a room at a Motel 6 in Raleigh, where he located and rescued the victim. In the room, officers located condoms, an iPad, and a bookbag with a firearm. Law enforcement discovered that the hotel was registered to Marcus Gambrell. A review of the iPad revealed photos of the victim that had been used in the prostitution advertisements, as well as additional photos that showed the minor victim’s genitals. In some photos, Gambrell’s hand was visible and identifiable based on tattoos.
The victim explained to officers that after running away—in slippers and with no coat, despite it being late December—she had ended up at the Raleigh Inn in Raleigh. There, on Christmas Day, she had met and socialized with Gambrell and Rudolph. The two men invited her to relocate with them to a nearby Motel 6 the next day. Once at the Motel 6, Gambrell took nude photos of the victim with the iPad. The two men used those photos to post and maintain prostitution advertisements for the victim on the internet. Over the next two days, they took turns supervising the prostitution and updated each other over Facebook Messenger. The victim estimated that Rudolph and Gambrell arranged around 10 to 15 “dates” per day, and they kept all the money. She stated that on one occasion Gambrell had vaginal sex with her, as Rudolph recorded a video with his cell phone. Law enforcement, however, did not recover the video.
Co-defendant Kevin Rudolph pled not guilty on September 14, 2021, to three counts: sex trafficking of a minor, possession of a firearm by a convicted felon, and use of the internet to promote prostitution. Hs trial is currently scheduled to begin May 16, 2022.
Charges against Rudolph are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
Michael F. Easley, Jr., U.S. Attorney for the Eastern District of North Carolina, made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Raleigh Police Department and Homeland Security Investigations (HSI) conducted the investigation. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
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. 5:19-cr-0336-FL.
Prairieville Woman Sentenced to Federal Prison for Defrauding COVID-19 Relief ProgramRead the Press Release
United States Attorney Ronald C. Gathe, Jr. announced that Chief U.S. Judge Shelly D. Dick sentenced April R. Falgoust, age 46, of Prairieville, Louisiana, to 18 months in federal prison following her conviction for wire fraud. The Court also sentenced Falgoust to serve three years of supervised release following her term of imprisonment, ordered her to pay $147,925.69 in restitution to the United States Small Business Administration, and further ordered her to forfeit an additional $143,800 in proceeds from her crime.
Today’s sentence stems from a series of ongoing investigations into fraud schemes targeting COVID-19 relief funds made available under the CARES Act, including fraud schemes targeting Economic Injury Disaster Loan (EIDL) funds, Paycheck Protection Program (PPP) funds, and other benefits intended to help people and businesses suffering from the economic effects of the pandemic.
In this case, as Falgoust admitted in connection with her guilty plea, she devised a scheme to defraud the U.S. Small Business Administration by filing numerous false and fraudulent applications for EIDL funds. Specifically, between March 31, 2020 and May 8, 2020, Falgoust filed five fraudulent applications, in the names of the following companies: “LA Fitness & Tan, LLC,” “FalgouStrong Fitness, LLC,” “Boss Lady Suits,” “Forever the Baddest Makeup,” and “Hemphire Seed & Nutrients.” In the applications, she misrepresented the companies’ gross revenues, their costs, their number of employees, and the extent to which the companies had been affected by the pandemic, among other misrepresentations. Based on the defendant’s fraudulent representations, the SBA disbursed approximately $143,800 to the defendant, and the intended loss, including potential loss from fraudulent applications that the defendant submitted but that the SBA did not fund, was approximately $473,000.
U.S. Attorney Ronald C. Gathe, Jr., who is also the National Center for Disaster Fraud’s Executive Director, stated, “Preventing and prosecuting fraud is a priority of the Department of Justice, and this sentence should serve as a warning to those who would commit such crimes that we will bring offenders to justice and punish those who break the law. I applaud the efforts of our prosecutors and law enforcement partners the in the prosecution and conviction of this defendant.”
“Today’s sentencing should serve as a reminder to those who deceive and steal from hardworking Americans that they will be held to account for their actions. The FBI and its partners will continue to hold accountable those like Ms. April Falgoust who perpetrate fraud schemes at the expense of the American people,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. “We thank our partners at United States Attorney's Office for the Middle District of Louisiana, Internal Revenue Service and the Small Business Administration Office of Inspector General for their strong partnership and unrelenting pursuit of justice.”
“The Treasury Inspector General for Tax Administration (TIGTA) will aggressively pursue those who use Internal Revenue Service (IRS) systems to facilitate their schemes to defraud pandemic relief programs,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Fraudulent schemes such as this undermine the integrity of IRS programs and operations. We would like to thank the FBI, the SBA Office of the Inspector General and the US Attorney’s Office for their continued partnership in combating pandemic fraud.”
This matter was investigated by the Federal Bureau of Investigation, the United States Treasury Inspector General for Tax Administration (TIGTA), and the United States Small Business Administration—Office of Inspector General (SBA-OIG), and prosecuted by Assistant United States Attorney Alan Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office.
Members of the public are reminded to be extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster. They are also reminded to report suspected waste, fraud, abuse, or allegations of criminal conduct. If members of the public believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, they are strongly encouraged to contact the National Center for Disaster Fraud Hotline toll free by phone at (866) 720-5721, email at [email protected], or fax at (225) 334-4707. The telephone line is staffed by live operators 24 hours a day, seven days a week.
To learn more about the NCDF please visit the website at www.justice.gov/disaster-fraud and watch a public service announcement.
Pike County Man Sentenced to 375 Months for Distribution of Child PornographyRead the Press Release
PIKEVILLE, Ky.— A Belfry, Ky., man, Oscar Joshua Calhoun, 36, was sentenced to 375 months in federal prison on Monday, by U.S. District Judge Robert Wier, after pleading guilty to three counts of distribution of child pornography.
According to Court records, Calhoun admitted to engaging with others to exchange child pornography, through online platforms. Calhoun’s distribution of child pornography involved numerous images of child pornography, and images involving children under the age of twelve.
Calhoun pled guilty to the charges, as set forth in the indictment, in May 2021.
Under federal law, Calhoun must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for life.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky, and Jodi Cohen, Special Agent in Charge, FBI, Louisville Filed Office, jointly announced the sentence.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Nick Rabold.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Pennsylvania man admits to drug trafficking chargeRead the Press Release
WHEELING, WEST VIRGINIA – John Ross Lawrence, of Wind Ridge, Pennsylvania, has admitted to a drug a charge, United States Attorney William J. Ihlenfeld, II announced.
Lawrence, 32, pleaded guilty today to one count of “Distribution of Methamphetamine.” Lawrence admitted to selling methamphetamine in February 2021 in Marshall County.
Lawrence 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. Attorney Clayton J. Reid is prosecuting the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Sheriff’s Office, and the Cameron Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Pain Clinic and Ambulatory Surgery Center Agree to Pay $836K to Resolve Allegations of OverbillingRead the Press Release
WACO – U.S. Attorney Ashley C. Hoff of the Western District of Texas announced today that Integrated Pain Associates, PLLC (“IPA”), a pain clinic headquartered in Killeen, and Central Texas Day Surgery Center, LLC (“CTDSC”), an affiliated ambulatory surgery center, have agreed to pay the United States and the State of Texas $836,702.88 to resolve allegations they violated the False Claims Act by overbilling federal healthcare programs.
The United States’ allegations arise from IPA and CTDSC’s submission of claims to Medicare, Medicaid, and TRICARE for facet joint injections, transforaminal injections, and radiofrequency ablation procedures. The United States contends that the defendants billed for more units or levels of these procedures than they performed. For example, the United States alleges that even when a patient received only a single injection, IPA and CTDSC would sometimes bill the government as though the patient had received two or three injections, thereby increasing the amount paid for the procedure.
“We will not allow health care providers to enrich themselves at taxpayer expense,” said U.S. Attorney Hoff. “We are grateful to our partners at the Department of Health and Human Services Office of Inspector General, the Defense Criminal Investigative Service, and the Civil Medicaid Fraud Division of the Office of the Attorney General of Texas for their assistance in obtaining this significant recovery.”
“Health care providers who try to boost their profits by overbilling federal health care programs will be held accountable for their actions,” said Special Agent in Charge Miranda L. Bennett of the Department of Health and Human Services Office of the Inspector General. “In coordination with our law enforcement partners, our agency will continue to safeguard critical health care programs from such schemes.”
“The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (‘DCIS’) and our law enforcement partners diligently investigate allegations of fraud against individuals or companies attempting to take advantage of the military healthcare system, known as TRICARE,” said Special Agent in Charge Michael Mentavlos, DCIS Southwest Field Office. “Today’s outcome reflects DCIS’s steadfast commitment to protect our Warfighters and their families and hold accountable those who perpetrate the fraud.”
The civil settlement of these allegations includes the resolution of claims brought under the qui tam provisions of the False Claims Act by Susan Edwards. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States and Texas ex rel. Edwards v. Integrated Pain Associates, et al., 5:15-cv-00315-FB (W.D. Tex.).
Assistant U.S. Attorney Thomas Parnham represented the United States in this matter.
The claims resolved by the settlement are allegations only. There has been no determination of liability.
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Owner of Telemedicine Company Pleads Guilty to Health Care Fraud ConspiracyRead the Press Release
NASHVILLE – A Kentucky woman pleaded guilty yesterday in U.S. District Court in Nashville, to conspiracy to pay and receive health care kickbacks, announced Acting U.S. Attorney Mark H. Wildasin for the Middle District of Tennessee.
Elizabeth Turner, 34 of Glenview, Kentucky, was charged by criminal Information in November with conspiring with Fadel Alshalabi, the owner of Crestar Labs, LLC, based in Spring Hill, Tennessee, Melissa Lynn “Lisa” Chastain, the owner of marketing company Genetix, LLC, located in Belton, South Carolina, as well as other marketers and physicians, to offer, pay, solicit and receive illegal kickbacks and to defraud the Medicare and Medicaid Programs.
Between approximately February 2018 and ending around August 2019, Turner was the owner of telemedicine company Advanced Tele-Genetic Counseling (“ATGC”), which received kickback payments from marketers in exchange for providing signed doctors’ orders for Cancer genomic (“CGx”) testing. CGx testing uses DNA sequencing to detect mutations in genes that could indicate a higher risk of developing certain types of cancers in the future. CGx testing is not a method of diagnosing whether an individual presently has cancer. The marketers targeted Medicare and Medicaid patients through door-to-door marketing, at senior citizen fairs, at nursing homes, and at other locations, and convinced patients to provide their genetic material via a mouth swab kit. The marketers then provided the swab kits to Crestar Labs for CGx testing in exchange for kickbacks paid by Crestar Labs. Crestar Labs billed Medicare and Medicaid for the tests.
Turner, through ATGC, paid kickbacks to doctors for signed orders for CGx tests, without regard for the medical necessity of the tests. Turner knew the doctors were not the patients’ treating physicians, were not treating the patients for any specific medical problem, symptom, illness, or diagnosis, and were not using the results in the care of the patients. Turner was aware that the doctors often never contacted the patients at all.
As a result of Turner’s involvement in the conspiracy, ATGC received approximately $234,730 in illegal kickback payments from marketing company co-conspirators, including Genetix, LLC. As a result of the conspiracy, Medicare and Medicaid paid laboratories, including Crestar Labs, LLC millions of dollars in reimbursements they were not entitled to receive because the CGx tests had been procured through the payment of kickbacks, and were otherwise ineligible for reimbursement.
Turner faces up to five years in prison when she is sentenced on May 2, 2022, and a fine of up to $250,000; restitution to the Medicare and Medicaid programs; and forfeiture of the ill-gotten proceeds.
This case was investigated by the U.S. Department of Health and Human Services - Office of the Inspector General, and the Federal Bureau of Investigation. Assistant U.S. Attorneys Sarah K. Bogni and Robert S. Levine are prosecuting the case.
United States v. Elizabeth Turner is docketed at Criminal Case No. 3:21-cr-00280.
United States v. Fadel Alshalabi, Edward Klapp, and Melissa Lynn Chastain is docketed at Criminal Case No. 3:21-cr-00171. The charges contained in that Superseding Indictment are merely accusations. The defendants are presumed innocent until proven guilty in a court of law.
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Osage Beach Gun Store Owner Indicted for Illegal SalesRead the Press Release
JEFFERSON CITY, Mo. – The owner of Skelton Tactical, a gun store in Osage Beach, Missouri, has been indicted by a federal grand jury for illegally selling firearms to undercover agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
James Antonio Skelton, 74, of Kaiser, Mo., was charged in a 15-count indictment returned under seal by a federal grand jury in Jefferson City, Mo., on Dec. 14, 2021. That indictment was unsealed and made public following Skelton’s arrest this morning.
The federal indictment alleges that Skelton, a federal firearms licensee, used his business to illegally sell firearms by allowing straw purchases; that is, allowing customers to purchase firearms on behalf of another person who is the actual buyer, but for whom there is no background check or information recorded.
Federal law requires federal firearms licensees to certify the purchaser is the actual buyer of the firearm. Federal firearms licensees must establish the identity, residence, and age of the actual buyer, as well as complete a background check prior to the sale of a firearm. Licensees must make certain the actual purchaser completes the federal firearms transaction record. The firearms transaction record requires the buyer to certify that he/she was the actual buyer of the firearm.
Federal agents executed a search warrant at Skelton Tactical on Nov. 9, 2021, and seized 323 firearms from Skelton following an undercover ATF investigation. The federal indictment contains a forfeiture allegation, which would require Skelton to forfeit all of those firearms to the government.
The federal indictment charges Skelton with four counts of failing to keep proper records mandated for federally licensed dealers. Skelton allegedly sold 19 firearms to an undercover ATF agent in four separate transactions from Sept. 24 to Oct. 29, 2021, without recording the name, age, and place of residence of the purchaser. Skelton also is charged with four counts of failing to conduct background checks related to those sales. Skelton allegedly sold the 19 firearms to an undercover ATF agent without completing the appropriate background check through the National Instant Criminal Background Check System (NICS) prior to the sale.
Skelton is charged with two counts of false records in a firearms transaction. Skelton allegedly counselled an undercover ATF agent to have another person (also an undercover ATF agent) make a straw purchase of four firearms on his behalf from Oct. 5 to Oct. 15, 2021 – a Romarm/Cugir 7.62 x 39mm rifle, a Mossberg 12-gauge shotgun, a Derva Arms 12-gauge shotgun, and a TISAS .45-caliber pistol. Skelton allegedly counselled an undercover ATF agent to have another person (also an undercover ATF agent) make a straw purchase of 10 firearms on his behalf from Oct. 5 to Oct. 29, 2021 – a BH Best Arms 12-gauge shotgun, a Pioneer Arms 7.62 x 25mm pistol, a Weihrauch .38-caliber revolver, an ALFA-PROJ .357-caliber Magnum revolver, two TISAS 9mm pistols, and four TISAS .45-caliber pistols.
Skelton is charged with five counts of failing to make appropriate entries in a required record. Skelton allegedly sold five firearms from Sept. 24 to Oct. 15, 2021, without making entries in his Acquisition and Disposition Records Book as required by federal law.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Operators of Three Texas Pharmacies and Two Pain Clinics Arrested for Illegally Dispensing Nearly Four Million Opioid PillsRead the Press Release
Three Houston-area pharmacists, a doctor, and a pharmacy technician have been arrested for allegedly running three pharmacies and two clinics as “pill mills;” distributing hydrocodone, oxycodone, and other controlled drugs without a legitimate medical purpose.
According to court documents, since January 2018, Chrisco Pharmacy (Chrisco), Keystone Pharmacy (Keystone), and Peoples Pharmacy (Peoples) illegally dispensed nearly four million pills of the Schedule II opioids hydrocodone and oxycodone. Keystone owner and pharmacist-in-charge Anthony Obute, 46, of Houston, was indicted yesterday in the U.S. District Court for the Southern District of Texas for illegally distributing and dispensing hydrocodone and the Schedule IV muscle relaxer carisoprodol. According to the filed criminal complaint leading to Obute’s arrest on Dec. 2, Obute operated Keystone as a pill mill, illegally distributing hydrocodone and oxycodone. The complaint further alleges that from about September 2018 to about September 2020, Obute directed Keystone to purchase around 1.1 million of the highest-strength, short-acting hydrocodone and oxycodone pills commercially available, which he then sold to so-called “crew leaders,” or drug traffickers who pay individuals to pose as patients in order to obtain pills to sell onto the black market.
Ophelia Emeakoroha, 50, of Pearland, was arrested on Dec. 2 on a criminal complaint, filed in the U.S. District Court for the Southern District of Texas, alleging that Emeakoroha, the pharmacist-in-charge at Peoples, illegally distributed and dispensed hydrocodone and oxycodone. According to court documents, from about Jan. 1, 2019, to about Dec. 31, 2019, Emeakoroha caused Peoples to purchase around 250,000 of the highest-strength, short-acting hydrocodone and oxycodone pills commercially available, which she then sold to crew leaders in a scheme similar to Keystone’s.
Shivarajpur Ravi, M.D., 65, of Houston, was arrested on Dec. 2 on a criminal complaint, filed in the U.S. District Court for the Southern District of Texas, alleging that he operated two pill-mill clinics in the Houston area, which he used to illegally distribute and dispense hydrocodone and carisoprodol. According to court documents, undercover officers obtained illegitimate prescriptions from Ravi, once in 2020 at his clinic operating out of 12555 Ste. B Gulf Freeway in Houston, and again at a new clinic located at 3333 Bayshore Dr., Ste. 250, Pasadena, which he opened in 2021. The papers detail how crew leaders were observed paying for groups of patients, filling out their paperwork, and coaching them on what to say to the doctor as they waited to be seen. The 2020 purported consult with Ravi is alleged to have lasted less than two minutes, after which officers had the prescription filled at Keystone. In both cases, the visit ended with Ravi prescribing large quantities of hydrocodone and carisoprodol.
A few weeks prior to the arrests of Obute, Emeakoroha, and Ravi, Christopher Obaze, 61, of Richmond, and Eric Tubbe, 36, of Rosenberg, were arrested on charges brought in the U.S. District Court for the Southern District of Texas related to their alleged illicit operation of Chrisco as a pill mill. The eight-count indictment alleged that in doing so, Obaze and Tubbe conspired to illegally distribute and dispense hydrocodone and oxycodone, maintained Chrisco as a drug-involved premises in proximity to a facility for children, and laundered their ill-gotten gains, using the proceeds to promote the enterprise, depositing cash in amounts below $10,000 to avoid bank reporting requirements, and transferring the proceeds through numerous accounts to obscure the funds’ origins. Obaze was also charged with tax crimes. According to court documents, from around January 2018, to around October 2021, Obaze was the pharmacist-in-charge and Tubbe was a pharmacy technician at Chrisco, which the two men used as a front to purchase and then illegally sell around 2.25 million of the highest-strength short-acting hydrocodone and oxycodone pills commercially available. The indictment alleges that Obaze and Tubbe sold the pills, in bulk, directly to drug traffickers, without the involvement of doctors, prescriptions, or patients.
Federal charges related to the illegal distribution of Schedule II opioids like hydrocodone and oxycodone, which all of the indicted defendants face, carry statutory maximums of 20 years in prison. Obaze and Tubbe are both charged with money laundering crimes that carry statutory maximums of 10 and 20 years in prison, while Obaze’s tax charges carry a statutory maximum of three years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Administrator Anne Milgram of the Drug Enforcement Administration (DEA); Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division; Assistant Special Agent in Charge Ramsey E. Covington of the IRS Criminal Investigation (IRS-CI) Houston Field Office; Acting Special Agent in Charge Conrad Barnett of U.S. Postal Service Office of Inspector General (USPS-OIG); Acting Inspector in Charge Dana Carter of the U.S. Postal Inspection Service, Houston Division; Texas Attorney General Office’s Medicare Fraud Control Unit (MFCU); and Houston Police Department (HPD) made the announcement.
The DEA, HPD, FBI, MFCU, IRS-CI, USPS-OIG, and U.S. Postal Inspection Service are investigating the cases.
Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section is prosecuting the cases.
Indictments and criminal complaints are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Omaha Woman Sentenced to 11 Years’ Imprisonment for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced Rachel McCluskey, age 46, of Omaha, Nebraska, was sentenced today in federal court in Omaha, for Conspiracy to Possess with Intent to Distribute Methamphetamine. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced McCluskey to 11 years’ imprisonment. After completing her term of imprisonment, McCluskey will be required to serve a 4-year term of supervised release as there is no parole in the federal system.
On July 16, 2020, Omaha Police Investigators received information that McCluskey was actively involved in distributing methamphetamine out of her Omaha apartment. That same day officers obtained and executed a search warrant on her apartment and found 173 grams of actual methamphetamine, a digital scale, drug packaging, phones, and $5,010 in United States currency.
A search of her phones revealed messages from her methamphetamine source confirming her involvement in a conspiracy to distribute methamphetamine.
This case was investigated by the Omaha Police Department.
Old Town Man Sentenced for Possessing Short-Barreled ShotgunRead the Press Release
BANGOR, Maine: An Old Town man was sentenced in federal court today for possessing an unregistered firearm, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Stephen Warren, 38, to four years and two months in prison and two years of supervised release. Warren pleaded guilty in July 2021.
According to court records, on September 8, 2020, Warren was stopped by an Old Town police officer. Warren was issued a summons for operating a motor vehicle with a suspended license and served with a protection order. Warren was told not to operate his car due to his suspended license. He ignored this order, however, and drove away from the area. Following a brief pursuit, Warren was stopped and arrested.
A subsequent inventory search of Warren’s car revealed a short-barreled shotgun without a serial number. The shotgun was not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Federal law prohibits the possession of an unregistered weapon made from a shotgun if the modified weapon has a barrel less than 18 inches in length or an overall length of less than 26 inches.
“These firearms are more dangerous because they are easily concealed and devastating when used at close range,” said U.S. Attorney McElwee. “As a result, anyone who seeks to possess one of these weapons must comply with the registration requirements of the National Firearms Act.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Old Town Police Department investigated the case as part of the Justice’s Project Safe Neighborhood (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Old Town Man Sentenced for Possessing Short-Barreled ShotgunRead the Press Release
BANGOR, Maine: An Old Town man was sentenced in federal court today for possessing an unregistered firearm, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Stephen Warren, 38, to four years and two months in prison and two years of supervised release. Warren pleaded guilty in July 2021.
According to court records, on September 8, 2020, Warren was stopped by an Old Town police officer. Warren was issued a summons for operating a motor vehicle with a suspended license and served with a protection order. Warren was told not to operate his car due to his suspended license. He ignored this order, however, and drove away from the area. Following a brief pursuit, Warren was stopped and arrested.
A subsequent inventory search of Warren’s car revealed a short-barreled shotgun without a serial number. The shotgun was not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Federal law prohibits the possession of an unregistered weapon made from a shotgun if the modified weapon has a barrel less than 18 inches in length or an overall length of less than 26 inches.
“These firearms are more dangerous because they are easily concealed and devastating when used at close range,” said U.S. Attorney McElwee. “As a result, anyone who seeks to possess one of these weapons must comply with the registration requirements of the National Firearms Act.”
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Old Town Police Department investigated the case as part of the Justice’s Project Safe Neighborhood (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Ohio man sentenced for drug distributionRead the Press Release
WHEELING, WEST VIRGINIA – Zachary Price, of Flushing, Ohio, was sentenced today to 33 months of incarceration for drug distribution, United States Attorney William J. Ihlenfeld, II announced.
Price, age 25, pled guilty in March 2019 to one count of “Conspiracy to Possess with Intent to Distribute and Distribute Cocaine, MDMA, LSD, Marijuana, Oxycodone, Adderall, Codeine, and Alprazolam.” Price admitted to distributing cocaine, MDMA, LSD, Marijuana, Oxycodone, Adderall, Codeine, and Alprazolam from April 2017 to November 2017 in Ohio County.
The judge also ordered $43,169 in cash seized be forfeited.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Ohio County Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Magistrate Judge John Preston Bailey presided.
Ohio man admits to drug chargesRead the Press Release
WHEELING, WEST VIRGINIA – Michael Edward Lamp, II, of East Liverpool, Ohio, has admitted to drug charges, United States Attorney William J. Ihlenfeld, II announced.
Lamp, also known as “Chubs,” 43, pleaded guilty today to one count of “Conspiracy to Distribute and Possess with the Intent to Distribute 50 Grams or More of Methamphetamine” and one count of “Distribution of 5 Grams or More of Methamphetamine.” Lamp admitted to working with others to distribute more than 50 grams of methamphetamine from September 2020to February 2021 in Hancock County and elsewhere, including the Northern District of Ohio.
Lamp faces at least 10 years and up to life incarceration and a fine of up to $10,000,000 for the conspiracy charge and faces at least five years and up to 40 years of incarceration and a fine of up to $5,000,000 for the distribution charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Hancock-Brooke-Weirton Drug Task Force, a HIDTA-funded initiative; the Drug Enforcement Administration in Youngtown, Ohio; the Liverpool Township Police Department-Ohio; and the East Liverpool Police Department -Ohio investigated. The U.S. Attorney’s Office in the Northern District of Ohio assisted.
U.S. Magistrate Judge James P. Mazzone presided.
North Carolina Business Owner Pleads Guilty to Filing False Tax ReturnRead the Press Release
A North Carolina man pleaded guilty yesterday to filing a false tax return.
According to court documents and statements made in court, Steve Sloan, 64, owned and operated Total Lawn and Landscape Pros LLC (Total Lawn), which provided lawn care services in Greensboro, Chapel Hill, and nearby areas. From 2014 to 2018, Sloan filed false returns with the IRS reporting each year only a portion of the profits actually earned by Total Lawn. For example, on his 2017 tax return Sloan reported total receipts of less than $200,000. In reality, the company’s receipts that year were $464,650. In all, Sloan caused a tax loss to the IRS of approximately $318,735.
Sloan is scheduled to be sentenced on June 21, 2022, and faces a maximum sentence of three years in prison. Sloan also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina, and Acting Special Agent-in-Charge Karen Wingerd of the IRS-Criminal Investigation Charlotte Field Office made the announcement.
IRS-Criminal Investigation and the North Carolina State Bureau of Investigation investigated the case.
Trial Attorney Kevin Schneider of the Justice Department’s Tax Division and Assistant U.S. Attorney Tanner Kroeger of the U.S. Attorney’s Office for the Middle District of North Carolina are prosecuting the case.
New Orleans Woman Charged with Social Security FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that YADA CLARK (“CLARK”), age 62, of New Orleans, Louisiana was charged by Bill of Information filed on December 16, 2021, for Theft of Federal Funds.
According to the Bill of Information, the Social Security Administration (“SSA”), an agency or department of the United States of America, operated the Retirement Survivor Insurance Benefit program (“RSI Program”). The purpose of the RSI Program is to provide benefits to retired workers in their post working years.
In or around February 1997, E.C. applied for and began receiving RSI Program benefits. The SSA sent the benefits to E.C. by direct deposit into his bank account. CLARK was a co-owner of E.C.’s bank account.
On February 5, 2006, E.C. died. CLARK never advised the SSA of E.C.’s death. From February 2006 through August 2020, SSA continued to electronically deposit funds to E.C.’s, bank account. From February 2006 through August 2020, CLARK received monthly SSA benefits totaling approximately $216,236 that she was not entitled to receive, which were deposited into E.C.’s account. CLARK was not entitled to receive these funds, however, she used such funds for her living expenses.
CLARK faces a maximum sentence of up to 10 years imprisonment, restitution, a fine of not more than $250,000, supervised release of up to 3 years, and a mandatory special assessment fee of $100.
U.S. Attorney Evans reiterated that the bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Social Security Administration, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Carter K. D. Guice, Jr.
New Orleans Man Sentenced to Eighty (80) Months for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – On December 16, 2021, United States District Judge Susie Morgan sentenced ROMALIS HARRIS, to eighty (80) months in the Bureau of Prisons for conspiracy to possess with the intent to distribute cocaine base, and use of a communication facility, a telephone, during the commission of a drug trafficking crime, in violation of the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
HARRIS was charged on December 19, 2019 and pled guilty on June 14, 2021. In one count, he pled guilty to conspiracy to possess with the intent to distribute cocaine base, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(B). Judge Morgan sentenced HARRIS to eighty (80) months on that count, to be followed by four (4) years of supervised release. Additionally, HARRIS was sentenced to pay a $100 mandatory special assessment fee.
HARRIS also pled guilty and was sentenced to use of a communication facility, a telephone, during the commission of a drug trafficking crime, in violation of Title 21, United States Code, Section 843(b). Judge Morgan sentenced HARRIS to forty-eight (48) months imprisonment, to be followed by four (4) years of supervised release, to be served concurrently to all other sentences. HARRIS was also sentenced to pay a $100 mandatory special assessment fee.
This case was brought as part of Project Safe Neighborhoods (PSN), which 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.
U. S. Attorney Duane A. Evans praised the work of the Drug Enforcement Administration, the Jefferson Parish Sheriff’s Office, and the Gretna Police Department. The prosecution was handled by Assistant United States Attorneys Brittany Reed, Andre Jones, and Melissa Bücher.
New Jersey Man Pleads Guilty to Obstructing Pittsburgh Police During May 30, 2020 ProtestRead the Press Release
PITTSBURGH - A resident of Long Beach Township, New Jersey, pleaded guilty to a charge of obstruction of law enforcement during civil disorder, United States Attorney Cindy K. Chung announced today.
Nicholas Lucia, 26, pleaded guilty before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on May 30, 2020, Lucia knowingly and willfully threw an explosive device at uniformed Pittsburgh police officers, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
Judge Schwab scheduled sentencing for June 7, 2022. The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
NatWest Markets Pleads Guilty to Fraud in U.S. Treasury MarketsRead the Press Release
NatWest Markets Plc (NatWest), a London, U.K.-based global banking and financial services firm, pleaded guilty today to various fraud schemes in the markets for U.S. Treasury securities and futures contracts.
NatWest pleaded guilty to one count of wire fraud and one count of securities fraud in connection with a criminal information filed today in the District of Connecticut. U.S. District Judge Omar A. Williams accepted the pleas and sentenced NatWest to pay approximately $35 million in a criminal fine, restitution, and forfeiture. NatWest also will serve three years of probation and will agree to the imposition of an independent compliance monitor.
“As we have previously warned, there will be serious consequences for a company that breaches the terms of an agreement with the government. Today’s guilty plea by NatWest and the associated penalty show exactly that,” said Deputy Attorney General Lisa O. Monaco. “Company executives should realize that investment in compliance programs can avoid situations like this, and take action accordingly.”
“NatWest is a repeat offender,” said Acting U.S. Attorney Leonard C Boyle for the District of Connecticut. “In this instance, a criminal conviction was an appropriate penalty, given the conduct of NatWest’s supervisors, its compliance deficiencies, and its decision not to take the steps required to fulfill its agreement with this office that resolved a prior securities fraud scheme.”
“NatWest’s schemes were egregious – spanning multiple years and countries – and the sentencing today reflects that,” said Deputy Director Paul M. Abbate of the FBI. “Let this case be an example that the FBI will not tolerate companies that fraudulently interfere in U.S. markets for their own gain. The FBI and our law enforcement partners are dedicated to protecting the integrity of our financial institutions and the Americans who use them.”
“For over six years, NatWest engaged in separate fraud schemes to manipulate the market and unlawfully enrich themselves,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Those who engage in this type of abuse of power should know they cannot escape detection and will be held accountable for their actions. The U.S. Postal Inspection Service is proud to work alongside our fellow law enforcement partners to protect the integrity of the financial marketplace and it’s participants.”
According to court documents and NatWest admissions, between January 2008 and May 2014, NatWest traders in London and Stamford, Connecticut, independently engaged in schemes to defraud in connection with the purchase and sale of U.S. Treasury futures contracts. Separately, in 2018, two other traders employed at NatWest’s Singapore branch engaged in a fraud scheme in connection with the purchase and sale of U.S. Treasury securities in the secondary (cash) market.
In each scheme, NatWest traders engaged in “spoofing” by placing orders with the intent to cancel those orders before execution, attempting to profit by deceiving other market participants by injecting false and misleading information regarding the existence of genuine supply and demand in the market. The spoof orders were designed to artificially push up or down the prevailing market price so that the NatWest traders could trade more profitably as a result of these schemes. In some instances, one of the NatWest traders took advantage of the close correlation between U.S. Treasury securities and U.S. Treasury futures contracts and engaged in cross-market manipulation by placing spoof orders in the futures market in order to profit from trading in the cash market.
The 2018 securities fraud scheme constituted a material breach of the Oct. 25, 2017 Non-Prosecution Agreement between the U.S. Attorney’s Office for the District of Connecticut and NatWest’s U.S. broker-dealer subsidiary, NatWest Markets Securities Inc. (formerly RBS Securities Inc.), and occurred while NatWest (formerly The Royal Bank of Scotland Plc) was on probation following its May 20, 2015 guilty plea and Jan. 5, 2017 sentencing for conspiring to manipulate the foreign currency exchange market.
A number of relevant considerations contributed to the department’s criminal resolution with NatWest, including the nature and seriousness of the offense, NatWest’s substantial prior history of other criminal conduct and civil and regulatory actions against it, its breach of a prior agreement, and the state of NatWest’s compliance program.
The FBI and U.S. Postal Inspection Service investigated this matter.
Acting Deputy Chief Avi Perry and Trial Attorney Elise Kent Bernanke of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jonathan Francis of the U.S. Attorney’s Office for the District of Connecticut are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at https://www.justice.gov/criminal-vns/case/natwest.
NatWest Markets Pleads Guilty to Fraud in U.S. Treasury MarketsRead the Press Release
NatWest Markets Plc (NatWest), a London, U.K.-based global banking and financial services firm, pleaded guilty today to various fraud schemes in the markets for U.S. Treasury securities and futures contracts.
NatWest pleaded guilty to one count of wire fraud and one count of securities fraud in connection with a criminal information filed today in the District of Connecticut. U.S. District Judge Omar A. Williams accepted the pleas and sentenced NatWest to pay approximately $35 million in a criminal fine, restitution, and forfeiture. NatWest also will serve three years of probation and will agree to the imposition of an independent compliance monitor.
“As we have previously warned, there will be serious consequences for a company that breaches the terms of an agreement with the government. Today’s guilty plea by NatWest and the associated penalty show exactly that,” said Deputy Attorney General Lisa O. Monaco. “Company executives should realize that investment in compliance programs can avoid situations like this, and take action accordingly.”
“NatWest is a repeat offender,” said Acting U.S. Attorney Leonard C Boyle for the District of Connecticut. “In this instance, a criminal conviction was an appropriate penalty, given the conduct of NatWest’s supervisors, its compliance deficiencies, and its decision not to take the steps required to fulfill its agreement with this office that resolved a prior securities fraud scheme.”
“NatWest’s schemes were egregious – spanning multiple years and countries – and the sentencing today reflects that,” said Deputy Director Paul M. Abbate of the FBI. “Let this case be an example that the FBI will not tolerate companies that fraudulently interfere in U.S. markets for their own gain. The FBI and our law enforcement partners are dedicated to protecting the integrity of our financial institutions and the Americans who use them.”
“For over six years, NatWest engaged in separate fraud schemes to manipulate the market and unlawfully enrich themselves,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Those who engage in this type of abuse of power should know they cannot escape detection and will be held accountable for their actions. The U.S. Postal Inspection Service is proud to work alongside our fellow law enforcement partners to protect the integrity of the financial marketplace and it’s participants.”
According to court documents and NatWest admissions, between January 2008 and May 2014, NatWest traders in London and Stamford, Connecticut, independently engaged in schemes to defraud in connection with the purchase and sale of U.S. Treasury futures contracts. Separately, in 2018, two other traders employed at NatWest’s Singapore branch engaged in a fraud scheme in connection with the purchase and sale of U.S. Treasury securities in the secondary (cash) market.
In each scheme, NatWest traders engaged in “spoofing” by placing orders with the intent to cancel those orders before execution, attempting to profit by deceiving other market participants by injecting false and misleading information regarding the existence of genuine supply and demand in the market. The spoof orders were designed to artificially push up or down the prevailing market price so that the NatWest traders could trade more profitably as a result of these schemes. In some instances, one of the NatWest traders took advantage of the close correlation between U.S. Treasury securities and U.S. Treasury futures contracts and engaged in cross-market manipulation by placing spoof orders in the futures market in order to profit from trading in the cash market.
The 2018 securities fraud scheme constituted a material breach of the Oct. 25, 2017 Non-Prosecution Agreement between the U.S. Attorney’s Office for the District of Connecticut and NatWest’s U.S. broker-dealer subsidiary, NatWest Markets Securities Inc. (formerly RBS Securities Inc.), and occurred while NatWest (formerly The Royal Bank of Scotland Plc) was on probation following its May 20, 2015 guilty plea and Jan. 5, 2017 sentencing for conspiring to manipulate the foreign currency exchange market.
A number of relevant considerations contributed to the department’s criminal resolution with NatWest, including the nature and seriousness of the offense, NatWest’s substantial prior history of other criminal conduct and civil and regulatory actions against it, its breach of a prior agreement, and the state of NatWest’s compliance program.
The FBI and U.S. Postal Inspection Service investigated this matter.
Acting Deputy Chief Avi Perry and Trial Attorney Elise Kent Bernanke of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jonathan Francis of the U.S. Attorney’s Office for the District of Connecticut are prosecuting the case.
Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at https://www.justice.gov/criminal-vns/case/natwest.
Nampa Man Sentenced to 9 Years in Federal Prison for Possession of Methamphetamine with Intent to DistributeRead the Press Release
BOISE – A Nampa man was sentenced to 108 months in federal prison for possession of methamphetamine with the intent to distribute.
According to court records, Cainen Bleu Johnson, 44, of Nampa, was pulled over on a routine traffic stop on February 16, 2021. During the traffic stop, Johnson became visibly agitated, refused to give his driver’s license to law enforcement, put his vehicle in drive, and fled the scene. After a high-speed chase, law enforcement officers were able to safely perform a pursuit intervention technique (PIT) maneuver to stop the vehicle and apprehended Johnson after a brief standoff. A subsequent search of Johnson’s vehicle uncovered 399.09 grams of methamphetamine, that he admitted he intended to distribute to others, along with 5.5 grams of heroin, and 1.3 grams of 3,4-Methylenedioxymethamphetamine (MDMA). Johnson also possessed a digital scale and plastic packaging materials commonly used to weigh and package methamphetamine for distribution.
Johnson has a long criminal history with convictions ranging from resisting or obstructing officers to grand theft. Johnson was on parole from a prison sentence for possession of a controlled substance when he committed this crime.
Chief U.S. District Judge David C. Nye also ordered Johnson to serve five years of supervised release following his prison sentence.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and credited the efforts of the Nampa Police Department, which led to charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Monongalia County man sentenced for his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Jeremy Hamlin, of Morgantown, West Virginia, was sentenced today to 12 months and one day of incarceration for his role in a drug trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Hamlin, 42, pled guilty in April 2021 to one count of “Maintaining Drug-Involved Premises.” Hamlin admitted to using a place on Bradley Street in Morgantown for the purpose of distributing heroin and cocaine base, also known as “crack,” in March 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. District Judge Irene M. Keeley presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Mexican National Living in California Sentenced to over Eight Years in Federal Prison for Attempting to Purchase Five Kilograms of CocaineRead the Press Release
Miami, Florida – Drug trafficker, Pablo Alexander Reyes-Sanchez, a 33-year-old Mexican national, was sentenced yesterday in federal court in Miami to 97 months in prison by Chief United States District Court Cecilia M. Altonaga.
Reyes-Sanchez brokered a deal involving the purchase of five kilograms of cocaine for $160,000. Reyes-Sanchez traveled to Miami with a co-conspirator, obtained a sample of cocaine for inspection, and then completed the transaction by providing the seller the cash in exchange for the cocaine. Law enforcement officers arrested Reyes-Sanchez and his co-conspirator and seized the currency for forfeiture.
Reyes-Sanchez previously pled guilty to a three-count indictment charging him with conspiracy to possess with intent to distribute cocaine, attempted possession with intent to distribute cocaine, and reentry of a removed alien.
Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Deanne L. Reuter, Special Agent in Charge, Drug Enforcement Administration, Miami Field Division, made the announcement.
DEA Miami and Hialeah Police Department investigated this case. Assistant U.S. Attorney Christopher Hudock prosecuted it. Assistant U.S. Attorney Mitchell Hyman is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 21-cr-20032.
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Meriden Woman Admits Embezzling More Than $400KRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that CRYSTAL KLATT, 36, of Meriden, waived her right to be indicted and pleaded guilty today before U.S. District Judge Janet C. Hall in New Haven to one count of wire fraud stemming from an embezzlement scheme.
According to court documents and statements made in court, Klatt was employed as an office manager by a property management company located in Hamden. Clients of the property management company would allow the company access to their bank accounts in order to allow the management company to make payments on behalf of the respective client. Klatt had access to the client’s bank accounts as part of her job responsibilities. Between approximately December 2014 and January 2021, Klatt diverted a total of $446,859.82 from the bank accounts of at least 14 clients to pay her personal credit card charges.
Judge Hall scheduled sentencing for March 8, 2022, at which time Klatt faces a maximum term of imprisonment of 20 years. Klatt is released on a $50,000 bond pending sentencing.
This matter has been investigated by the U.S. Secret Service, Hamden Police Department and Connecticut Financial Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Member of H-2 Mexican Drug Cartel Sentenced to 60 Months in Prison for International Narcotics Distribution ConspiracyRead the Press Release
Earlier today at the federal courthouse in Brooklyn, Deovaldo Gutierrez Alfaro, also known as “Leoba,” was sentenced by United States District Judge Carol Bagley Amon to 60 months’ imprisonment for his participation in a large-scale international narcotics distribution conspiracy. The defendant was arrested in Nayarit, Mexico in March 2019 and extradited to the United States in November 2019. Alfaro pleaded guilty in June 2021.
Breon Peace, United States Attorney for the Eastern District of New York, and William D. Bodner, Special Agent-in-Charge, Drug Enforcement Administration, Los Angeles Division (DEA), announced the sentence.
“With today’s sentence, the defendant is held accountable for conspiring to smuggle large quantities of heroin and other dangerous drugs into the United States and for transmitting hundreds of thousands of dollars in illegal drug proceeds between the United States and Mexico,” stated United States Attorney Peace. “This Office and its law enforcement partners are committed to dismantling international drug cartels and their distribution cells that fuel addiction and promote drug-related violence in our cities and local communities.”
“Drug trafficking organizations continue to flood our communities with drugs and perpetuate the cycle of addiction that is causing unprecedented overdose deaths across the nation,” stated DEA Los Angeles Special Agent-in-Charge Bodner. “This case exemplifies the hard work and collaborative efforts utilizing domestic and international resources to effectively disrupt sophisticated criminal syndicates.”
According to court filings and facts presented during court proceedings, the defendant was a member of the H-2 Cartel, a violent Mexican drug trafficking organization based in Nayarit and Sinaloa, Mexico. The H-2 Cartel had numerous drug distribution cells in the United States, including in Los Angeles, Las Vegas, Ohio, Minnesota, North Carolina and New York. The DEA estimates that between January 2013 and February 2017, the H-2 Cartel distributed on a monthly basis approximately 500 kilograms of heroin, 100 kilograms of cocaine, 200 kilograms of methamphetamine and 3,000 kilograms of marijuana into the United States and earned millions of dollars in illegal proceeds. In furtherance of its drug trafficking operation, the H-2 Cartel used firearms and physical violence, including torture and dozens of homicides.
Between June 2013 and December 2016, the defendant conspired with the H-2 Cartel to smuggle large quantities of heroin from Mexico into the United States and distribute the heroin throughout the country, including in the Eastern District of New York. The defendant also helped the Cartel move hundreds of thousands of dollars in drug proceeds from the United States back to Mexico. In September 2015 and November 2016, law enforcement seized more than three kilograms of heroin in connection with two drug shipments that the defendant had coordinated.
The government’s case is being handled by the Office’s International Narcotics & Money Laundering Section. Assistant United States Attorneys Craig R. Heeren, Ryan C. Harris, and Andrew D. Wang are in charge of the prosecution. The Justice Department’s Office of International Affairs provided substantial assistance in securing Alfaro’s arrest and extradition.
The Defendant:
DEOVALDO GUTIERREZ ALFARO
Age: 43
Residence: Nayarit, MexicoE.D.N.Y. Docket No. 16-CR-241 (CBA)
McLaughlin Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a McLaughlin, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Mikal John White Mountain, age 38, was indicted on December 14, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 21, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to ten years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that White Mountain, a person required to register as a sex offender, knowingly failed to register and update his registration after traveling in interstate commerce and residing in Indian country between September 4, 2021, and December 14, 2021, while living in McLaughlin.
The charge is merely an accusation and White Mountain is presumed innocent until and unless proven guilty.
The investigation is being conducted by U.S. Marshals Service, the Corson County Sheriff’s Office, the North Dakota Division of Criminal Investigation, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
White Mountain was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Maryland U.S. Attorney’s Office Collects over $26 Million in Civil and Criminal Actions for U.S. Taxpayers in FY 2021Read the Press Release
Baltimore, Maryland – U.S. Attorney Erek L. Barron announced that financial collections in criminal and civil actions in Fiscal Year (FY) 2021 in the District of Maryland reached $26,206,937.09. The U.S. Department of Justice keeps statistics on a fiscal year basis, closing the books each September 30.
“Thanks to the hard work and dedication of employees of the U.S. Attorney’s Office and our partner agencies, funds recovered far exceed the cost of operating the office,” said Maryland U.S. Attorney Erek L. Barron. “We will continue to hold accountable anyone who seeks to profit from illegal activities.”
According to statistics from the Department of Justice, the U.S. Attorney’s Office for the District of Maryland’s Asset Recovery Unit, which handles both Asset Forfeiture and Financial Litigation, recovered $18,363,220.59 in FY 2021, in criminal debts owed to the U.S. government and to federal crime victims, including restitution, criminal fines, and felony assessments, which was applied directly to restitution owed to victims of crime and other criminal penalties. It also finalized forfeiture on $8,135,791.30 in assets and obtained another $60,513,818.00 in forfeiture money judgments, all of which are eligible to re returned to victims to satisfy restitution once liquidated. In FY 2021 $1,881,580 in forfeiture proceeds were transferred to the Clerk of the United States District Court in Maryland to be paid to victims as restitution.
The statistics show that the District’s Civil Division recovered $7,843,716.50 in cases handled solely within this Office, in civil actions in Maryland including affirmative civil enforcement cases—in which the United States recovered government money lost to fraud or other misconduct or collected penalties imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws—and debts collected on behalf of several federal agencies, including the U.S. Department of Health and Human Services and the Department of Homeland Security. These cases include the successful resolution of investigations or qui tam actions against St. Jude Medical, Inc., Creative Computing Solutions, Inc. and Dr. Njideka Udochi.
Additionally, the District of Maryland worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $37,689,449.53 in cases pursued jointly with these offices. Of this amount, $12,231.39 was collected in criminal actions and $37,677,218.14 was collected in civil actions, including cases resolved under the False Claims Act on behalf of victim agencies such as the U.S. Department of Health and Human Services, the U.S. Department of Defense, and the U.S. Department of Education.
The U.S. Attorney’s Offices, along with the Department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the United States and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the Department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal healthcare laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, the U.S. Department of Health and Human Services, the Internal Revenue Service, the Small Business Administration, and the U.S. Department of Education.
For more information, the Department’s Annual Statistical Reports on prior fiscal years can be found on the Internet at: https://www.justice.gov/usao/resources/annual-statistical-reports.
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Marshall County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Alex R. Lee, of Moundsville, West Virginia, was sentenced today to 14 months of incarceration for a methamphetamine charge, United States Attorney William J. Ihlenfeld, II announced.
Lee, 35, pleaded guilty in November 2021 to one count of “Distribution of Methamphetamine.” Lee admitted to selling methamphetamine in February 2021 in Marshall County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Marshall County man sentenced for drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Alex R. Lee, of Moundsville, West Virginia, was sentenced today to 14 months of incarceration for a methamphetamine charge, United States Attorney William J. Ihlenfeld, II announced.
Lee, 35, pleaded guilty in November 2021 to one count of “Distribution of Methamphetamine.” Lee admitted to selling methamphetamine in February 2021 in Marshall County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Man Serving State Sentence in Angola Sentenced on Federal Drug Conspiracy ChargeRead the Press Release
SHREVEPORT, La. - United States Attorney Brandon B. Brown announced that Damione Brock, 42, has been sentenced by United States District Judge Donald E. Walter to spend 292 months (24 years, 4 months) in prison, followed by 5 years of supervised release, for drug conspiracy. Other co-defendants have also been sentenced to either conspiracy or other drug trafficking charges in connection with this case.
Brock was convicted of the charge by a federal jury after a two-day trial in April 2021. Evidence presented at the trial showed the jury that agents with the U.S. Drug Enforcement Administration (DEA) began an investigation in 2018 into drug trafficking activities in the Plain Dealing and Springhill areas of Louisiana. During their investigation, agents sought approval to use wiretaps and were able to intercept phone calls and text messages between Brock and Hogan wherein they discussed having methamphetamine delivered to Brock while he was a prisoner at the Louisiana State Penitentiary at Angola (“Angola”). Brock, who was serving a lengthy sentence in Angola for possession of cocaine, was using a contraband cell phone to communicate with Hogan. Brock had arranged for the methamphetamine to be brought to him in Angola, using a courier and Keisarah McGee, a female who worked at the prison as a corrections officer.
DEA agents observed the transportation of the methamphetamine, which was hidden in fake soda cans driven from Bossier City to Alexandria by one of Brock’s couriers. The courier, Marvin Beck, put the package into McGee’s vehicle, who then took possession of the methamphetamine hidden in fake soda cans with the plan to transfer them to Angola when reporting for work. DEA agents alerted Louisiana Department of Corrections investigators to expect the female officer to try and enter the facility with the hidden narcotics. Investigators were able to stop her vehicle at the front gate of Angola and seized the methamphetamine prior to her entry into the facility.
In addition, agents uncovered a separate conspiracy involving Hogan to distribute cocaine in the Springhill, Louisiana, and Arkansas areas. Between October and December 2018, Hogan conspired with Steven Dewayne Gilbert, Patrick Clayton, and Kagan Weaver to distribute and possess with intent to distribute cocaine. Agents with the DEA were able to intercept numerous phone calls between these defendants wherein they discussed the distribution of cocaine and the conversion of powder cocaine to crack cocaine. On December 18, 2018, Clayton was found to have individually wrapped baggies of cocaine packaged for street level distribution.
Law enforcement agents received additional information that Weaver was intending to purchase cocaine from Gilbert to distribute to individuals in Arkansas. On December 14, 2018, agents observed Weaver arrive in Springhill and meet with Gilbert. They both traveled to a residence in Plain Dealing that belonged to Hogan where cocaine was purchased from Hogan. Weaver then drove to Arkansas where he was stopped by law enforcement and found to have the cocaine in his possession. An analysis of the narcotics seized from these defendants was conducted by the DEA Laboratory and confirmed to be cocaine.
“Some of the defendants convicted in this case, which are from the Western District of Louisiana, used the Louisiana State Penitentiary at Angola to facilitate this conspiracy. This office will continue to aggressively prosecute repeat drug traffickers who have no regard or respect for the law. Further, state correctional officers are held to a high standard and are entrusted to ensuring that order is maintained in state prisons, not to assist prisoners in committing other crimes.”
All of the co-defendants in this case have been sentenced and their names, convictions and information are as follows:
Steven Dewayne Gilbert, 39, of Springhill, Louisiana, was sentenced June 19, 2020 to 188 months (15 years, 8 months) in prison, followed by 6 years of supervised release;
Roderick Dewaine Hogan, 40, of Plain Dealing, Louisiana, was sentenced April 23, 2021 to 200 months (16 years, 8 months) in prison, followed by 5 years supervised release;
Keisarah McGee, 30, of Woodville, Mississippi, was sentenced to 87 months in prison, followed by 2 years supervised release;
Kagan Weaver, 24, of Waldo, Arkansas, was sentenced to 10 months in prison, followed by 3 years supervised release;
Marvin Beck, 45, of Dallas, Texas, was sentenced to 4 years supervised probation; and
Patrick Clayton, 44, of Springhill, Louisiana, was sentenced to 1 day in prison, with credit for time served, followed by 3 years supervised release.
This case was investigated by the U.S. Drug Enforcement Administration and prosecuted by U.S. Attorney Brandon B. Brown and Assistant U.S. Attorney J. Aaron Crawford.
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Lower Brule Man Indicted for Kidnapping, Assault ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Kidnapping, Assault with a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, Obstruction of Justice, Assault Resulting in Substantial Bodily Injury to an Intimate Partner, and Assaulting, Resisting, and Impeding A Federal Officer.
William Eagle Thunder, Jr., age 30, was indicted on December 14, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on December 20, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on multiple occasions between August and October of 2021, in Lower Brule, Eagle Thunder kidnapped and assaulted an intimate partner and prevented the victim from seeking medical care for injuries. He also assaulted a federal law enforcement officer.
The charges are merely accusations and Eagle Thunder is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs – Office of Justice Services, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Eagle Thunder was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lexington Man Sentenced to 360 Months for Armed Methamphetamine TraffickingRead the Press Release
LEXINGTON, Ky.— A Lexington man, Jeffrey Robinson, 35, was sentenced to 360 months in federal prison on Monday, by Chief U.S. District Judge Danny C. Reeves, for intent to distribute 50 grams or more of methamphetamine and possession of a firearm in furtherance of drug trafficking.
According to Robinson’s plea agreement, law enforcement was contacted regarding a package containing narcotics that was sent to an inmate at Luther Luckett Correctional Complex in LaGrange, Ky., and the package was traced to Robinson. Law enforcement executed a search warrant at Robinson’s address and found him in possession of one pound of methamphetamine, a quantity of heroin, MDMA, a large amount of cash, and a loaded firearm. Robinson admitted he distributed the drugs and that he possessed the firearm in furtherance of the drug trafficking.
Robinson pleaded guilty in September 2021.
Under federal law, Robinson must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Division; and Chief Lawrence Weathers, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by the DEA and Lexington Police Department. The United States was represented by Assistant U.S. Attorney Todd Bradbury.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Las Vegas Man Sentenced to Prison for Credit Card Fraud SchemeRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced yesterday to 111 months in prison for using skimming devices to steal victims’ identities and credit card account information to buy luxury merchandise — including Rolex watches and high-end purses — and to obtain cash advances at various properties on The Strip.
According to court documents, from about January 1, 2013, to January 3, 2017, Fausto Teixeira Martins Neto (41) — also known as “Margrello,” “Fausto Neto,” and “Fausto Martins” — and co-conspirators placed skimming devices on ATMs and cash-out transaction ticket dispensing terminals, such as Global Cash Advance machines, in order to steal credit card account information. Martins Neto and others would then encode the stolen account information onto forged credit cards. They used the counterfeit cards to purchase high-end retail items, such as Rolex watches and luxury designer purses, and to withdraw money from hotel-casino cash advance machines and ATMs. In total, Martins Neto and co-conspirators stole over $2.28 million through their fraud scheme.
Martins Neto pleaded guilty in March 2020 to one count of use or trafficking in unauthorized access device and one count of aggravated identity theft. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Martins Neto to three years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
Martins Neto is the 14th defendant to be sentenced in this case. Twenty-one individuals were charged in a 2017 indictment for their alleged roles in the conspiracy. The remaining seven indicted defendants are currently at large. The charges as to these seven defendants are allegations only: they are presumed innocent unless and until proven guilty in a court of law.
This case was the product of a ten-month investigation by the FBI, the U.S. Department of State’s Diplomatic Security Service, the Las Vegas Metropolitan Police Department, and the Henderson Police Department. Assistant U.S. Attorney Simon Kung is prosecuting the case.
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Keshena Man Sentenced to Prison for Attempted Murder on Menominee Indian Reservation.Read the Press Release
United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on December 20, 2021, a man received a prison sentence for his actions in shooting another man on the Menominee Indian Reservation. Menom L. Powless-Brown (age: 19), formerly of Keshena, which is on the Menominee Indian Reservation, was sentenced after entering a plea of guilty to Assault with Intent to Murder on September 10, 2021. Senior United States District Judge William C. Griesbach imposed a sentence of 120 months, which will be followed by 36 months of supervised release.
According to court records, on or about March 13, 2021, Powless-Brown assaulted another man by pointing a 9mm semiautomatic handgun at him. Powless-Brown intentionally discharged the handgun several times during the incident, resulting in bullets striking the other man once in the abdomen and Powless-Brown’s mother once in the face. The other man sustained significant injuries as the result of the shooting.
In imposing sentence, Senior Judge Griesbach noted the seriousness of the offense, reflecting that the incident was an unjustified attack on someone else who was fleeing from the defendant. Judge Griesbach observed the incident occurred in a residential area and exposed others to danger. Although the United States had recommended a higher sentence, Judge Griesbach concluded that the defendant’s youth and lack of prior record made a 10-year sentence appropriate.
The Menominee Tribal Police Department and Federal Bureau of Investigation investigated the case, which Assistant United States Attorney Andrew J. Maier prosecuted.
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Kassim Marsh Sentenced for Methamphetamine ConspiracyRead the Press Release
The United States Attorney for the District of Vermont announced that Kassim Marsh, 30, formerly of Manchester, New Hampshire was sentenced yesterday for his role in a methamphetamine trafficking conspiracy. Senior U.S. District Judge William K. Sessions III sentenced Marsh to 40 months of imprisonment, to be followed by a three-year term of supervised release. Judge Sessions also sentenced Marsh to a concurrent 18-month term of imprisonment for a related supervised release violation, stemming from a prior federal narcotics conviction.
According to court records, Marsh conspired to distribute methamphetamine in the spring of 2021. He had returned to drug trafficking shortly after his release from federal prison following a prior sentence for conspiring to distribute heroin and cocaine. Authorities arrested Marsh in May of 2021 after he sold $2,000 of methamphetamine to an undercover Homeland Security Investigations Special Agent. He has remained in custody since his arrest. His brother, Jahlil Marsh—also his co-defendant in his prior federal drug-trafficking case—pleaded guilty to a related drug conspiracy charge earlier this year and was sentenced to 60 months in prison on December 3, 2021.
Assistant U.S. Attorney Spencer Willig prosecuted this case, which was investigated by Homeland Security Investigations. The defendant is represented by Robert L. Sussman, Esq.
Justice Department Finds that Manson Youth Institution Violates the U.S. Constitution and the Individuals with Disabilities Education ActRead the Press Release
The Department of Justice’s Civil Rights Division announced today that it has concluded an investigation into whether Manson Youth Institution is violating the Eighth and Fourteenth Amendments of the U.S. Constitution and the Individuals with Disabilities Education Act (IDEA) with respect to children in the facility.
The department’s investigation concluded that there is reasonable cause to believe that Manson’s isolation practices and inadequate mental health services seriously harm children, under age 18, and place them at substantial risk of serious harm. In addition, Manson fails to provide adequate special education services to children with disabilities. These violations are pursuant to a pattern or practice of resistance to the full enjoyment of rights protected by the Constitution and federal law.
“Children in adult correctional facilities do not forfeit their constitutional and federal rights,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Our investigation uncovered systemic evidence that children are deprived of the mental health and special education services they need to become productive, successful adults. When children misbehave, Manson frequently subjects them to harmful periods of isolation, despite evidence that children are uniquely vulnerable to the traumatic and lasting damage isolation causes. The Civil Rights Division is committed to protecting the constitutional rights of children in correctional facilities to ensure they have access to the resources these facilities are legally required to provide.”
The Civil Rights Division’s Special Litigation Section initiated the investigation pursuant to the Civil Rights of Institutionalized Persons Act and the Violent Crime Control and Law Enforcement Act of 1994, which together authorize the department to address a pattern or practice of deprivation of constitutional and federal rights of children confined to state or local government-run correctional facilities. Individuals with relevant information are encouraged to contact the department via phone at 1- 833-223-1565 or by email at [email protected].
The Civil Rights Division is committed to safeguarding the rights of children held in detention facilities across the country. For example, the division recently opened a statewide investigation of Texas’s secure juvenile facilities to examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints and excessive use of isolation. The Texas investigation will also examine whether Texas provides adequate mental health care. In South Carolina, in another investigation involving a state juvenile justice facility, the division recently issued findings that the state fails to keep children reasonably safe from harm caused by punitive and excessive isolation, as well as harm inflicted by other children.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Justice Department Alleges That Chicopee, Massachusetts, Housing Authority and its Executive Director Discriminated Against Tenants on the Basis of Race, National Origin and DisabilityRead the Press Release
The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts announced today that they have filed an amended complaint alleging that the Chicopee Housing Authority and its Executive Director, Monica Blazic, violated federal law by discriminating against residents based on race, national origin and disability. These allegations, which are significantly broader than those in the original complaint, include claims under the Fair Housing Act (FHA), the Americans with Disabilities Act (ADA) and the Rehabilitation Act. The original complaint, filed in April, alleged that the defendants had discriminated against one tenant because of her disability.
The amended complaint alleges that, since at least 2013, Blazic has made discriminatory statements to and about Black and Hispanic tenants, including using racial slurs to describe current and potential residents, indicating a preference against having Black and Hispanic residents and demanding that Spanish-speaking residents speak English. According to the department’s amended complaint, Blazic’s statements have intimidated and threatened Black and Hispanic tenants. The department also alleges that residents with disabilities who requested reasonable accommodations, such as transfers to first-floor or elevator-accessible units, have waited for years, even though the Housing Authority could have accommodated them.
“It is simply inexcusable for the head of a public housing authority to repeatedly use racial slurs and make other bigoted statements about Black and Hispanic residents, or for the housing authority to repeatedly violate the rights of residents with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice will vigorously pursue housing providers who use brazenly unlawful and discriminatory conduct to threaten and intimidate tenants. All people deserve access to housing free from discrimination.”
“Bigotry has no place in public housing,” Acting U.S. Attorney Nathaniel R. Mendell of the District of Massachusetts. “We expect our public officials to operate with common decency and respect, not with bias and prejudice. That someone could operate in such an important public position and engaged in this conduct going on for so long, is disturbing.”
“Racial discrimination and discrimination against persons living with disabilities have absolutely no place in our country’s housing market, and those who discriminate must be held accountable,” said Principal Deputy Assistant Secretary Demetria McCain of the Department of Housing and Urban Development (HUD)’s Office for Fair Housing and Equal Opportunity. “HUD applauds the Justice Department for taking today’s action and will continue supporting its efforts to hold housing providers accountable when they fail to meet their obligations under the nation’s housing laws.”
The matter was originally investigated by HUD, which issued a charge of discrimination against the Housing Authority and Blazic after finding that they violated the FHA by failing to allow a tenant to transfer to a first-floor or elevator-accessible unit to accommodate her disability. After the department filed the lawsuit, HUD made a second referral under the ADA and the Rehabilitation Act after finding that this was not an isolated incident, but rather, the result of a systemic practice of discrimination based on disability. For example, the amended complaint alleges that the tenant applied for a transfer based on her disability in 2017, and since that time the Housing Authority offered 10 vacant apartments – any one of which could have accommodated the tenant – to other individuals.
The lawsuit seeks an order requiring the defendants to cease discrimination against any tenant based on race, national origin or disability, pay damages to individuals who were harmed by the defendants’ discriminatory conduct, pay civil penalties to the government to vindicate the public interest and modify policies and procedures, including those for responding to requests by residents to accommodate their disabilities.
Individuals who have information about this case can contact the U.S. Attorney’s Office by calling 1-617-275-756 or by emailing [email protected].
The Justice Department’s Civil Rights Division enforces the FHA, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status, and the ADA and the Rehabilitation Act, which prohibit discrimination because of disability. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals wishing to report discrimination in housing may call the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291 or submit a report online.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, visit www.justice.gov/usao-ma/civil-rights.
Information Technology Contractor Agrees to Pay More Than $1.3 Million to Settle Federal False Claims Act Allegations of OverbillingRead the Press Release
Baltimore, Maryland – Virginia-based Telophase Corporation (“Telophase”) has agreed to pay the United States $1,389,509 million dollars to resolve federal False Claims Act allegations that it overbilled the National Aeronautics and Space Administration (“NASA”) for labor hours worked and for labor rates and costs in excess of those actually incurred.
The civil settlement was announced by United States Attorney for the District of Maryland Erek L. Barron, and Assistant Inspector General for Investigations (AIGI) Robert Steinau of NASA’s Office of Inspector General.
“Federal contractors are required to bill for costs actually incurred, and to be truthful in the claims they submit to federal agencies,” said U.S. Attorney Erek L. Barron. “Companies that submit false bills to the government must be held accountable.”
“The NASA Office of Inspector General is proud of the exceptional work from our agents and partnership with the United States Attorney, District of Maryland in aggressively investigating these allegations,” said AIGI Steinau. It is through these partnerships that we will continue to pursue and hold those accountable that attempt to defraud NASA.”
Telophase is a provider of information technology and cyber-security services, operations engineering for monitoring tools and automation, quality and compliance management, environmental engineering, and education and training initiatives to both the public and commercial sectors. Telophase was awarded a Cost-Plus Fixed-Fee (“CPFF”) subcontract for services to be provided to the Applied Engineering and Technology Directorate of NASA’s Goddard Space Flight Center. This contract type reimburses the contractor for actual project costs, plus a fee.
The settlement resolves allegations that, between April 1, 2016 through December 31, 2018, Telophase caused the submission of false claims to NASA by billing NASA for: labor hours in excess of the hours that Telophase could demonstrate that its employees and contractors actually worked; labor rates higher than the rates actually paid to its employees and contractors; labor costs in excess of Telophase’s actual recorded costs; and indirect rates that were higher than those actually incurred.
The claims resolved by this settlement are allegations. The settlement is not an admission of liability by Telophase, nor a concession by the United States that its claim is not well founded.
United States Attorney Erek L. Barron commended NASA’s Office Investigations for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Tarra DeShields who handled this case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/affirmative-civil-enforcement and https://www.justice.gov/usao-md.
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Hudson Man Sentenced to 71 Months for Cocaine Base, Fentanyl DistributionRead the Press Release
ALBANY, NEW YORK – Micah Hines, a/k/a “Water,” age 42, was sentenced today to 71 months in prison, to be followed by 4 years of supervised release, for distributing more than 28 grams of cocaine base.
The announcement was made by United States Attorney Carla B. Freedman; Keith Kruskall, Acting Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division; and New York State Police Superintendent Kevin P. Bruen.
Hines has recently resided in Hudson, Cairo and Poughkeepsie, New York. In pleading guilty, he admitted to selling about 40 grams of cocaine base on January 7, 2021, and to selling about 52 grams of fentanyl, and about 28 grams of cocaine base, on January 13, 2021.
Hines has three prior drug felony convictions and two prior firearm felony convictions.
This case was investigated by the New York State Police and the DEA’s Capital District Drug Enforcement Task Force, which includes investigators from the Columbia County Sheriff’s Office and Hudson Police Department. The case was prosecuted by Assistant U.S. Attorney Michael Barnett.
Hudson County Man and Essex County Woman Charged with Four Robberies and Two Shootings in Jersey CityRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man and an Essex County, New Jersey, woman are charged with committing four robberies and two shootings on a single night in Jersey City, New Jersey, U.S. Attorney Philip R. Sellinger announced today.
Rodney Williams, 29, of Jersey City, New Jersey, and Siobhan Chandler, 19, of Newark, are scheduled to appear by videoconference today before U.S. Magistrate Judge James B. Clark III. They are each charged by complaint with conspiring to rob, and robbing, four businesses and shooting two individuals in Jersey City. Williams is additionally charged with possession of a firearm and ammunition as a convicted felon.
According to documents filed in this case and statements made in court:
On the evening of Nov. 14, 2021, Williams and Chandler committed four commercial robberies and two shootings within approximately 70 minutes. At approximately 8:10 p.m., Williams entered Store-1, placed a firearm on the clerk’s chest and threatened to kill the clerk. Williams continued pointing the firearm at the clerk, while directing the clerk to give him all of Store-1’s money. Williams fled on foot after the clerk complied.
Approximately 35 minutes later, Williams and Chandler approached Gas Station-1 together. Chandler attempted to enter Gas Station-1’s attendant booth. After noticing that Chandler was not successful, Williams pointed the firearm at an attendant and demanded money. The attendant did not comply. Williams shot the attendant in the chest and stated, “do you think I am f—king playing with you? Give me the money!” Williams then pointed the firearm at the other attendant and threatened to shoot, as the attendant escaped to the attendant booth and locked the door. Williams followed the attendant and tried to force his way inside the booth, as Chandler waited for Williams near the entrance of Gas Station-1. After he could not enter the booth, Williams ran toward Chandler and they fled the scene.
Approximately 15 minutes later, Williams and Chandler entered Store-2. Williams pointed the firearm at the clerk and demanded Store-2’s money. As Williams held the clerk at gunpoint, Chandler emerged from the aisle and stood near Williams and Store-2’s clerk gave Williams money from the cash register. Williams and Chandler exited Store-2 on foot.
Approximately 10 minutes later, Williams and Chandler entered Restaurant-1. Williams immediately approached the clerk at the register, pointed the firearm at the clerk’s chest and demanded money. The clerk, believing Williams’ demand was not serious, failed to immediately respond to Williams’ demand. Williams attempted to shoot the clerk, but the firearm misfired. Williams then re-cocked the firearm and shot the clerk in the chest. Williams then forcibly entered the restaurant’s kitchen and demanded money from the employees. Chandler remained at the doorway and ordered one employee out of the restaurant and barred a patron from entering the restaurant. As Williams forced the wounded clerk to empty cash from the register, Chandler yelled, “Let’s go! Let’s go!”
At approximately 9:20 PM, Jersey City Police Department officers observed the defendants in a motor vehicle near Restaurant-1. Upon observing law enforcement, Williams drove the vehicle into oncoming traffic, striking a police vehicle and rendering his vehicle inoperable. The officers immediately apprehended the defendants.
Williams and Chandler are subject to a maximum potential penalty of 20 years in prison and a fine of $250,000 for each charge of robbery; a maximum penalty for 20 years in prison and a fine of $250,000 for conspiring to use and carry a firearm during and in relation to a crime of violence; and a maximum potential penalty of life in prison and a fine of $250,000 for each charge of possessing, carrying or using a firearm during a crime of violence. Williams is subject to a maximum potential penalty of 10 years in prison and a fine of $250,000 for the charge of possession of a firearm and ammunition by a convicted felon.
U.S. Attorney Sellinger credited officers of the Jersey City Police Department, under the direction of Public Safety Director James Shea, the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez, and special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorneys Jamel Semper of the Organized Crime and Gangs Unit and Kimberly Mitchell of the OCDETF and Narcotics Unit in Newark.
The charges and allegations contained in the criminal complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Hudson County Man Admits Firearms OffenseRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man today admitted possessing a firearm and ammunition after having previously been convicted of a felony, U.S. Attorney Philip R. Sellinger announced.
Andre Cannon, 29, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an indictment charging him with illegal possession of a handgun and ammunition by a previously convicted felon.
According to documents filed in this case and statements made in court:
On July 11, 2020, a victim was shot in the leg near Martin Luther King Drive and Oak Street in Jersey City. Police discovered a .40-caliber S&W shell casing in a nearby courtyard. Surveillance video showed that Cannon had committed the shooting. The following day, law enforcement officers executed a search warrant at Cannon’s house. As police announced their presence and entered the front of the house, officers stationed at the back of the house saw Cannon throw a black Beretta Gardone .40-caliber handgun loaded with 10 .40-caliber rounds of ammunition out of a first-floor window.
Cannon had previously been convicted in the Superior Court of Hudson County of unlawful possession of a handgun, a felony punishable by more than one year in prison.
The charges of possession of a firearm and ammunition by a convicted felon carry a maximum penalty of 10 years in prison and a maximum fine of $250,000.
U.S. Attorney Sellinger credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. He also thanked members of the Jersey City Police Department, under the leadership of Public Safety Director James Shea, for their assistance.
The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Violent Crimes Unit in Newark.
Honduran Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that OSCAR NOEL DUENAS-RODRIGUEZ, age 47, a native of Honduras, was charged on December 16, 2021 in a one-count Bill of Information with illegally using a social security number to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
DUENAS-RODRIGUEZ faces a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Harvard University Professor Convicted of Making False Statements and Tax OffensesRead the Press Release
BOSTON – The former Chair of Harvard University’s Chemistry and Chemical Biology Department was convicted by a federal jury today in connection with lying to federal authorities about his affiliation with People’s Republic of China’s Thousand Talents Program and the Wuhan University of Technology (WUT) in Wuhan, China, as well as failing to report income he received from WUT.
Dr. Charles Lieber, 62, was convicted following a six-day jury trial of two counts of making false statements to federal authorities, two counts of making and subscribing a false income tax return and two counts of failing to file reports of foreign bank and financial accounts (FBAR) with the Internal Revenue Service (IRS). U.S. Senior District Court Judge Rya W. Zobel will sentence Lieber at a later date that has not yet been scheduled. Lieber was indicted in June 2020 and was subsequently charged in a superseding indictment in July 2020.
“There is now no question that Charles Lieber lied to federal investigators and to Harvard in an attempt to hide his participation in the Chinese Thousand Talents Program,” said Acting United States Attorney Nathaniel R. Mendell. “He lied to the IRS about the money he was paid, and he concealed his Chinese bank account from the United States. The jury followed the evidence and the law to a just verdict.”
“Today’s verdict reinforces our commitment to protect our country’s position as a global leader in research and innovation and to hold those accountable who exploit and undermine that position through dishonesty. By Charles Lieber’s own admission – after we arrested him – the evidence against him was formidable. He repeatedly lied to his employer, the federal government, and taxpayers to fraudulently maintain access to federal research funds,” Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Mr. Lieber exploited the openness and transparency of our academic system. The FBI will not hesitate to work with our law enforcement partners to focus on those who put their financial and professional interests ahead of our country’s economic prosperity.”
“The Department of Defense (DoD) Office of Inspector General’s Defense Criminal Investigative Service (DCIS) investigates foreign conflicts of interest in DoD grant programs," said Patrick J. Hegarty Patrick J. Hegarty, Special Agent in Charge of the Defense Criminal Investigative Service, Northeast Field Office. "Mr. Lieber lied to DCIS Special Agents about his ties to the Chinese government while conducting research for the DoD, and he eroded the trust the DoD has in its researchers to prioritize the United States and its service members over foreign governments, and over personal financial gain."
“NCIS continues to aggressively protect the Department of the Navy’s technologies and strategic advantages provided as a result of years of investment in cutting edge research and technology development” said Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS), Northeast Field Office. “By failing to disclose his connections and foreign support, Mr. Lieber broke a trust and undermined the integrity of research that the federal government paid for. The guilty verdicts in this case are the results of exceptional teamwork with the U.S. Attorney’s Office and our federal partners at the FBI, DCIS, IRS and NIH.”
“We expect professors like Dr. Lieber who are privileged to be part of taxpayer-funded research to be honest in their actions,” said Philip M. Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General. “Today’s conviction demonstrates OIG’s commitment to ensuring that taxpayer dollars are not wasted, and that those handling these funds are truthful in their dealings with federal agencies.”
“Today’s Guilty verdict is a shining example of IRS-CI’s commitment to investigating international tax crimes” said Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division for the Boston Field Office. “Despite Mr. Lieber’s lengthy effort to conceal assets and underreport his income, the verdict is proof that Mr. Lieber’s actions were intentional, deliberate, and criminal. IRS-CI will continue to work with the United States Attorney’s Office and our Federal law enforcement partners to investigate complex financial fraud that extends beyond the borders of the United States.”
Lieber served as the Principal Investigator of the Lieber Research Group at Harvard University, which received more than $15 million in federal research grants between 2008 and 2019. Unbeknownst to his employer, Harvard University, Lieber became a “Strategic Scientist” at WUT and, later, a contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015. China’s Thousand Talents Plan is one of the most prominent Chinese talent recruitment plans designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
Under the terms of Lieber’s three-year Thousand Talents contract, WUT paid Lieber a salary of up to $50,000 per month, living expenses of up to $150,000 and awarded him more than $1.5 million to establish a research lab at WUT. In 2018 and 2019, Lieber lied to federal authorities about his involvement in the Thousand Talents Plan and his affiliation with WUT.
In tax years 2013 and 2014, Lieber earned income from WUT in the form of salary and other payments made to him pursuant to the Strategic Scientist and Thousand Talents Contracts, which he did not disclose to the IRS on his federal income tax returns. Lieber, together with WUT officials, opened a bank account at a Chinese bank during a trip to Wuhan in 2012. Thereafter, between at least 2013 and 2015, WUT periodically deposited portions of Lieber’s salary into that account. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing an FBAR with the IRS. Lieber failed to file FBARs for the years 2014 and 2015.
The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making and subscribing false income tax returns provides for a sentence of up to three years in prison, one year of supervised release and a $100,000 fine. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Mendell; Matthew Olsen, Assistant Attorney General for National Security; FBI SAC Bonavolonta; DCIS SAC Hegarty; NCIS SAC Wiest; HHS OIG SAC Coyne; and IRS CI SAC Simpson made this announcement. Assistant U.S. Attorney Jason Casey of Mendell’s National Security Unit and Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
Harvard University Professor Convicted of Making False Statements and Tax OffensesRead the Press Release
The former Chair of Harvard University’s Chemistry and Chemical Biology Department was convicted by a federal jury today in connection with lying to federal authorities about his affiliation with the People’s Republic of China’s Thousand Talents Program and the Wuhan University of Technology (WUT) in Wuhan, China, as well as failing to report income he received from WUT.
Dr. Charles Lieber, 62, was convicted following a six-day jury trial of two counts of making false statements to federal authorities, two counts of making and subscribing a false income tax return and two counts of failing to file reports of foreign bank and financial accounts (FBAR) with the Internal Revenue Service (IRS). U.S. Senior District Court Judge Rya W. Zobel will sentence Lieber at a later date that has not yet been scheduled. Lieber was indicted in June 2020 and was subsequently charged in a superseding indictment in July 2020.
Lieber served as the Principal Investigator of the Lieber Research Group at Harvard University, which received more than $15 million in federal research grants between 2008 and 2019. Unbeknownst to his employer, Harvard University, Lieber became a “Strategic Scientist” at WUT and, later, a contractual participant in China’s Thousand Talents Plan from at least 2012 through 2015. China’s Thousand Talents Plan is one of the most prominent talent recruitment plans designed to attract, recruit and cultivate high-level scientific talent in furtherance of China’s scientific development, economic prosperity and national security.
Under the terms of Lieber’s three-year Thousand Talents contract, WUT paid Lieber a salary of up to $50,000 per month, living expenses of up to $150,000 and awarded him more than $1.5 million to establish a research lab at WUT. In 2018 and 2019, Lieber lied to federal authorities about his involvement in the Thousand Talents Plan and his affiliation with WUT.
In tax years 2013 and 2014, Lieber earned income from WUT in the form of salary and other payments made to him pursuant to the Strategic Scientist and Thousand Talents Contracts, which he did not disclose to the IRS on his federal income tax returns. Lieber, together with WUT officials, opened a bank account at a Chinese bank during a trip to Wuhan in 2012. Thereafter, between at least 2013 and 2015, WUT periodically deposited portions of Lieber’s salary into that account. U.S. taxpayers are required to report the existence of any foreign bank account that holds more than $10,000 at any time during a given year by the filing an FBAR with the IRS. Lieber failed to file FBARs for the years 2014 and 2015.
The charge of making false statements provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of making and subscribing false income tax returns provides for a sentence of up to three years in prison, one year of supervised release and a $100,000 fine. The charge of failing to file an FBAR provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell; National Security AAG Olsen; FBI SAC Bonavolonta; DCIS SAC Hegarty; NCIS SAC Wiest; HHS OIG SAC Coyne; and IRS CI SAC Simpson made this announcement. Assistant U.S. Attorney Jason Casey of Mendell’s National Security Unit and Assistant U.S. Attorney James R. Drabick of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.