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13 December 2021
Monahans Man Found Guilty of Being a Felon in Possession of a FirearmRead the Press Release
PECOS – Today a federal jury convicted a Monahans man for being a felon in possession of a firearm.
According to court documents and evidence presented at trial, Jacob Lynn Lyon, 29, was previously convicted for prior felonies including armed robbery, theft of a firearm and burglary of a habitation. On May 28, 2020, ATF agents did a consensual search of Lyon’s residence and found two handguns and a rifle.
Lyon was remanded into federal custody after the verdict. He is scheduled for sentencing on March 28, 2021, before U.S. District Judge David Counts.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Jeffrey C. Boshek, II made the announcement.
The ATF, Texas Rangers and Monahans Police Department are investigating the case.
Assistant U.S. Attorney Lance Kennedy is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Michigan Man Pleads Guilty to Federal Drug Trafficking ChargeRead the Press Release
CHARLESTON, W.Va. – A Michigan man pleaded guilty today to a federal drug trafficking crime.
According to court documents, Oji Williams, of Ann Arbor, admitted that on August 1, 2020, law enforcement officers seized over 200 grams of fentanyl from behind the glovebox of a vehicle in which he was a passenger, after conducting a traffic stop in Charleston. Williams admitted that he possessed and intended to distribute the fentanyl. Officers also seized two firearms from Williams’ home after he was arrested.
Williams pleaded guilty to possession with the intent to distribute 40 grams or more of fentanyl and faces a mandatory minimum of five years and up to 40 years in prison when he is sentenced on March 17, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing. Assistant United States Attorney Negar M. Kordestani is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00025.
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Mexican nationals face life sentence for human smuggling resulting in deathRead the Press Release
LAREDO, Texas – Two Mexican men have admitted to their roles in an alien smuggling conspiracy which resulted in death, announced Acting U.S. Attorney Jennifer B. Lowery.
Fabian Hernandez, 29, Nuevo Laredo, Tamaulipas, Mexico, and Emmanuel Ferral-Tonche, 19, Nuevo Laredo, Tamaulipas, Mexico, pleaded guilty before U.S. Magistrate Judge John Kazen today.
On June 9, 2021, Hernandez and Ferral-Tonche marched a group of approximately two dozen individuals through the hot south Texas brush. Some were unable to keep going. At no time did Hernandez or Ferral-Tonche offer water or attempt to look for anyone who had fallen behind or gotten lost.
Authorities eventually responded to multiple 911 emergency calls coming from the Hachar Ranch property in Webb County. They ultimately discovered 24 individuals illegally present in the United States who had become lost at that location. They identified Hernandez and Ferral-Tonche as the smugglers.
Law enforcement also found the remains of three deceased people. Agents determined Hernandez and Ferral-Tonche had guided at least one of them before they succumbed to dehydration and hyperthermia while being smuggled.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing March 16, 2022. At that time, both men face up to life in federal prison. They have been and will remain in custody pending that hearing.
Homeland Security Investigations and Customs and Border Protection conducted the investigation with assistance from the Laredo Police Department.
Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Mexican National Pleads Guilty to Federal Gun ChargeRead the Press Release
HUNTINGTON, W.Va. – David Ferrusquia-Sanchez, 36, a Mexican national who was in the United States illegally, pleaded guilty today to a federal gun charge.
According to court documents and statements made in court, on March 22, 2021, law enforcement officers pulled over a vehicle on I-64 in Putnam County that lacked registration and was following a tractor trailer too closely. The driver, identified as Ferrusquia-Sanchez, provided a passport and a driver’s license, both of Mexican origin. Officers also learned that Ferrusquia-Sanchez had an active warrant for driving under revocation. A K9 unit arrived on scene and alerted to the vehicle. A search of the vehicle yielded a loaded 9mm Sportarms pistol in a duffel bag behind the driver’s seat. Ferrusquia-Sanchez admitted that he had not been given any legal status in the United States.
Ferrusquia-Sanchez pleaded guilty to being an illegal alien in possession of a firearm and faces up to 10 years in prison when sentenced on February 7, 2022.
United States Attorney Will Thompson made the announcement and commended the investigative efforts of the Hurricane Police Department and U.S. Immigration and Customs Enforcement (ICE).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Ryan A. Keefe is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00061.
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Maryland man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Antonio Cortez Darden, of Maugansville, Maryland, was sentenced today to 21 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Darden, 44, pleaded guilty in August 2021 to one count of “Possession with Intent to Distribute Cocaine Hydrochloride.” Darden admitted to having cocaine hydrochloride in September 2019 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Berkeley County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Man Pleads Guilty to a Return Fraud Scheme Victimizing Amazon.com, Inc.Read the Press Release
ALEXANDRIA, Va. – A Manassas man pleaded guilty today to defrauding the online retailer, Amazon.com, Inc. (Amazon), of over $300,000 by operating a mail fraud scheme to buy high-end products, claim a refund, then return a similar item of significantly lesser value.
According to court documents, from 2017 through 2020, Farhaad Riyaz, 34, would open multiple Amazon accounts, purchase high-end items online and have them shipped to his residence. Riyaz would then claim the item had arrived too late or was not as described online, thereby initiating a return. He would send back to Amazon, via United Parcel Service, an item of materially lesser value but Amazon would refund him the full purchase price. For instance, in June 2019, Riyaz bought a rare Fender Telecaster electric guitar for approximately $2,600 from Amazon, then returned a Squier Telecaster electric guitar of the same color that had cost him approximately $400. During the scheme, Riyaz also fraudulently obtained a $37,000 home theater system by returning a $2,000 model, and fraudulently obtained multiple $4,400 toilets with electric bidets.
Riyaz is scheduled to be sentenced on March 22, 2022. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; and Kevin Davis, Fairfax County Chief of Police, made the announcement after U.S. District Judge Leonie M. Brinkema accepted the plea.
Amazon’s fraud detection unit provided valuable assistance in the investigation of the case.
Assistant U.S. Attorney Russell L. Carlberg is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-264.
Man Pleads Guilty Sexual Assault of Child in GrenadaRead the Press Release
A New York man pleaded guilty today in the Eastern District of New York to sexually assaulting a five-year-old child abroad.
According to court documents, during a trip to Grenada in October 2019, Treverson Roberts, 27, of Brooklyn, a dual United States and Grenadian citizen, forced a five-year-old boy to perform oral sex on him while the boy was temporarily left in Roberts’ care.
Roberts previously pleaded guilty to Grenadian charges related to the abuse but did not receive a sentence of imprisonment. Rather, the Grenadian court fined him $1,500 and required him to pay $600 compensation to the victim.
Roberts pleaded guilty to engaging in illicit sexual conduct with a minor in a foreign place and faces a maximum sentence of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division, U.S. Attorney Breon Peace for the Eastern District of New York, and Acting Special Agent in Charge Rick J. Patel for Homeland Security Investigations (HSI) New York made the announcement.
HSI New York’s Child Exploitation Investigations Unit investigated the case with valuable assistance provided by the HSI Caribbean Attaché Office and the Royal Grenada Police Force.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Laura Zuckerwise for Eastern District of New York are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Major Cocaine Supplier of Violent Drug Trafficking Organization Sentenced to 20 Years in PrisonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that JOSE MARTINEZ-DIAZ, a/k/a “Tony Zinc,” who supplied over 5,000 kilograms of cocaine to the Puerto-Rico-based drug alliance, La Organización de Narcotraficantes Unidos (“La ONU”), was sentenced by U.S. District Judge Jesse M. Furman to 20 years in prison. MARTINEZ-DIAZ previously pled guilty to participating in a racketeering conspiracy.
U.S. Attorney Damian Williams said: “Jose Martinez-Diaz supplied a staggering quantity of cocaine, a dangerous and addictive drug, to a violent drug trafficking organization. Some of the cocaine he supplied came to New York, where it was distributed out of, among other places, a daycare center in the Bronx. To ensure his drug business flourished, Martinez-Diaz brokered violence and even used corrupt law enforcement officials. Today Jose Martinez-Diaz was rightly sentenced to a lengthy prison term for his horrific crimes.”
According to the Indictment, other filings in this case, and statements during court proceedings:
MARTINEZ-DIAZ was a high-volume cocaine trafficker who supplied over 5,000 kilograms of cocaine to La ONU, a criminal enterprise involved in shipping thousands of kilograms of cocaine from Puerto Rico to New York. Cocaine from La ONU was then distributed in New York City, including out of a daycare center in the Bronx, New York. Members and associates of La ONU also engaged in acts of violence, including murder, to protect and expand the enterprise’s criminal operations and in connection with rivalries with other criminal organizations. In particular, members of the enterprise were ordered to shoot and kill suspected rival drug trafficking members.
MARTINEZ-DIAZ, or those working on his behalf, smuggled cocaine from the Dominican Republic to Puerto Rico, usually by boat. The shipments often occurred as frequently as once per week, with such shipments containing 130 to 160 kilograms of cocaine. MARTINEZ-DIAZ would then parcel out the shipments to La ONU members.
MARTINEZ-DIAZ used the machinery of La ONU to protect his narcotics trade. For example, MARTINEZ-DIAZ arranged for corrupt members of the Puerto Rico Police Department (“PRPD”) to locate rival drug dealers and effect unwarranted traffic stops to control their movements or to isolate them until others from La ONU could attack them.
In or about 2007, MARTINEZ-DIAZ ordered a shooting on Avenue Monserrate in Carolina, Puerto Rico. The target was shot, but survived.
On another occasion, MARTINEZ-DIAZ paid a police officer $5,000 in connection with the attempted murder of a rival drug dealer known as “Taliban.” The intended victim was shot, but survived.
MARTINEZ-DIAZ funded and assisted La ONU in its fight against its rival, La Rompe ONU. For example, MARTINEZ-DIAZ provided money to La ONU members to purchase firearms. In addition, MARTINEZ-DIAZ and others created a fake PRPD patrol car. Members of La ONU used the fake patrol car to harass and intimidate members of La Rompe ONU, and to conduct shootings.
MARTINEZ-DIAZ also worked with a corrupt Drug Enforcement Administration (“DEA”) agent, who helped MARTINEZ-DIAZ and others in the narcotics conspiracy evade detection by law enforcement.
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In addition to the prison term, Judge Furman sentenced MARTINEZ-DIAZ, 48, of Puerto Rico, to three years of supervised release, and ordered him to forfeit $6.875 million.
Mr. Williams praised the investigative work of the U.S. Postal Inspection Service, the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the New York City Police Department. Mr. Williams also thanked the United States Attorney’s Office for the District of Puerto Rico and the Puerto Rico Police Department for their support in this ongoing investigation.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Lara Pomerantz, Justin Rodriguez, and Andrew Thomas are in charge of the prosecution.
Loan Officer Admits Participation in Large-Scale Mortgage Fraud SchemeRead the Press Release
NEWARK, N.J. – A loan officer for a mortgage company today admitted his role in a long-running, large-scale mortgage fraud scheme, Acting U.S. Attorney Rachael A. Honig announced.
Isaac DePaula, 41, pleaded guilty before U.S. District Judge Esther Salas in Newark federal court to Count 1 of an indictment charging him with conspiracy to commit bank fraud. DePaula was a long-time fugitive who was charged by criminal complaint in 2012 and by indictment in 2016. He returned to the United States in March 2020 to face the charges in the indictment.
According to the documents filed in this and other cases and statements made in court:
From September 2006 to September 2010, DePaula and his conspirators engaged in a long-running, large-scale mortgage fraud conspiracy through a mortgage company called Premier Mortgage Services (PMS). The conspirators targeted properties in low-income areas of New Jersey. After recruiting straw buyers, the defendants used a variety of fraudulent documents to make it appear as though the straw buyers possessed far more assets, and earned far more income, than they actually did. The defendants then submitted these fraudulent documents as part of mortgage loan applications to financial institutions. Relying on these fraudulent documents, financial institutions provided mortgage loans for the subject properties.
The defendants then split the proceeds from the mortgages among themselves and others by using fraudulent settlement statements (HUD-1s), which hid the true sources and destinations of the mortgage funds provided by financial institutions. The defendants made false representations and provided fraudulent documents when, in fact, the straw buyers had no means of paying the mortgages on the subject properties, many of which entered into foreclosure proceedings.
The defendants played different roles in the scheme, and others charged and convicted included a part owner of PMS, an attorney who aided the fraud by performing closings on many of the subject properties, an accountant who created false documents, the owner of a real estate development company, several loan officers, and a paralegal for another attorney who also closed fraudulent transactions.
DePaula was a loan officer at PMS and recruited straw buyers, provided false and fraudulent documents to the straw buyers, and incorporated false and fraudulent documents into loan applications to induce financial institutions to fund mortgage loans. The loan officers profited illegally by receiving a commission from PMS for each mortgage loan that they closed, and also profited illegally by diverting portions of the fraudulently obtained mortgage proceeds for themselves, often via shell corporations or nominee bank accounts.
The offense to which DePaula pleaded guilty carries a maximum potential penalty of 30 years in prison and a maximum fine of $1 million. Sentencing is scheduled for April 19, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and special agents of the Federal Housing Finance Agency - Office of the Inspector General, under the direction of Special Agent in Charge Robert W. Manchak, with the investigation leading to today’s guilty plea.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
Lexington Man Sentenced for Wire FraudRead the Press Release
LEXINGTON, Ky. – A Lexington man, Subhadarshi Nayak, 49, was sentenced to 6 months in federal prison and 6 months of home detention on Monday by Chief U.S. District Judge Danny C. Reeves, for conspiracy to commit wire fraud and wire fraud. The matter of restitution is set for a hearing in February 2022.
According to his plea agreement, Nayak was a co-owner of the company ScienceTomorrow. In late 2013, Nayak electronically submitted a false proposal, to maximize a DOE Phase II SBIR grant from the U.S. Department of Energy. Specifically, he inflated the budget a university in Tennessee had provisionally authorized in support of the project and, as a result of this misrepresentation, the DOE awarded a grant to ScienceTomorrow. Nayak admitted he knew, upon receipt of the award, they would have to finalize a contract with the university to match the false budget provision, but they could not justify the inflated budget with the university and never finalized a contract with the institution, as of the day he abandoned the company in August 2014. Nayak intentionally took no steps to notify the DOE or correct this material misrepresentation in the ScienceTomorrow proposal.
Separately, Nayak also admitted he obtained a $100,000.00 EPA contract for his solely owned business, Qmetry, under false pretenses. Working alone, to induce the EPA to award him the contract, he falsely certified Qmetry had an agreement with a university and professor to complete specific work, when he did not. After certifying all funds had been spent according to the contract, Nayak also unlawfully retained $46,564.61 of EPA funding for the project, well after the close of the period of performance.
Nayak pleaded guilty in August 2021.
“Government grants are critically important to furthering countless community goals,” said Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky. “When individuals fraudulently obtain and misuse these valuable – and often scarce – resources, we all suffer the loss. We are committed to doing our part to protect these valuable resources from fraud, waste, and abuse, and to pursuing those who illegally prey on these important funds.
“The EPA Office of Inspector General is steadfast in our efforts to preserve the integrity of the SBIR program by aggressively rooting out attempts to defraud the U.S. government and taxpayers,” said EPA Inspector General Sean W. O’Donnell. “Today’s sentencing is the fruition of our commitment to ensuring that SBIR awardees are held accountable. I would like to thank our investigators and our law enforcement partners for their efforts and hard work on this case.”
“Small Business Innovation Research and Small Business Technology Transfer grants are valuable tools for furthering high profile research and development at the Department of Energy,” said Department of Energy Inspector General Teri L. Donaldson. “It is critical that we hold anyone who abuses these grants accountable, and we are thankful to our law enforcement partners and to the U.S. Attorney’s Office for their efforts in maintaining the integrity of these programs. The Office of Inspector General remains committed to protecting these programs, as well as all Departmental programs, to allow the generation of scientific breakthroughs and technological innovations.”
Under federal law, Nayak must serve 85 percent of his prison sentence, and upon his release from prison will be under the supervision of the U.S. Probation Office for three years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; Sean Earle, U.S. EPA, Acting Deputy Assistant Inspector General for Investigations; Teri L. Donaldson, U.S. Department of Energy Inspector General; and Cynthia Bruce, Special Agent in Charge, Defense Criminal Investigative Service, U.S. Department of Defense, jointly announced the sentence.
The investigation was conducted by the EPA-OIG, DOE-OIG, and DOD DCIS. The United States was represented by Assistant United States Attorney Tashena A. Fannin.
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Leaders of the Lorenzana Drug Trafficking Organization Extradited on International Narcotics Trafficking ChargesRead the Press Release
Two Guatemalan nationals were extradited to the United States from Guatemala on Friday to face international narcotics trafficking charges.
Guatemalan nationals Haroldo Geremias Lorenzana-Cordon, aka Chuci, aka Chuchy, and Marta Julia Lorenzana-Cordon, aka Julie, aka Yulie, aka Julia and aka Morena, were extradited from Guatemala to the United States on Dec. 10 to face international drug trafficking charges. They made their initial court appearance in Washington, D.C. on Dec. 11. They are detained pending their appearance today before U.S. Magistrate Judge Zia M. Faruqui in the U.S. District Court for the District of Columbia.
According to allegations contained in court documents, the defendants were leaders of the Lorenzana drug trafficking organization. According to court documents, the Lorenzana drug trafficking organization, a historically patriarchal criminal group comprised primarily of family members, is one of the largest and most influential drug cartels in Guatemala. The organization transports tonnage quantities of cocaine from Colombia into Guatemala, where the cocaine is inventoried and stored on properties owned by the organization throughout Guatemala. Once processed, the organization works with the Sinaloa Cartel, among other organizations, to traffic cocaine into Mexico, through Central America, and eventually, into the United States.
According to court documents, between 1996 and 2019, the organization coordinated the transportation, storage and distribution of multi-ton quantities of cocaine from Colombia to Central America and Mexico, for eventual distribution into the United States. Their siblings, Eliu Elixander Lorenzana-Cordon and Waldemar Lorenzana-Cordon, were convicted on international narcotics trafficking charges in the District of Columbia in March 2019. Their father, Waldemar Lorenzana-Lima Sr., pleaded guilty to international narcotics trafficking charges in the District of Columbia in August 2014. Eliu and Waldemar Lorenzana-Cordon received life sentences. Waldemar Lorenzana-Lima received a 23 year sentence.
In April 2010, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) designated Haroldo, along with his father and two brothers, as Specially Designated Narcotics Traffickers (SDNT) pursuant to the Foreign Narcotics Kingpin Designation Act (Kingpin Act) for their role in facilitating the narcotics-trafficking activities of the Sinaloa Cartel in Guatemala. OFAC subsequently designated Marta Julia as an SDNT in November 2012.
A grand jury in the District of Columbia returned an indictment against Haroldo on March 10, 2009. In November 2019, Haroldo was arrested by Guatemalan authorities, pursuant to a provisional arrest request by the United States, where he remained detained pending his extradition. A grand jury in the District of Columbia returned an indictment against Marta Julia on July 23, 2020. In April, Marta Julia was arrested by Guatemalan authorities, pursuant to an extradition request by the United States, where she remained detained pending her extradition.
The defendants are charged with conspiracy to distribute five kilograms or more of cocaine, knowing and intending that it will be unlawfully imported to the United States. If convicted, they each face mandatory minimum sentences of 10 years in federal prison and a statutory maximum sentence of life imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is part of “Operation Slipknot,” which is supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The Drug Enforcement Administration’s 959/Bilateral Investigations Unit is investigating with assistance from the DEA Guatemala City Country Office.
Trial Attorneys Imani Hutty and Teresita Mutton of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. The Office of International Affairs and Office of Enforcement Operations also provided significant assistance.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Las Vegas Man Sentenced to Prison for Assaulting U.S. Postal Carrier with A Metal Pipe During RobberyRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to eight years and six months in prison after assaulting and robbing a U.S. Postal Service mail carrier who was delivering mail in North Las Vegas.
According to court documents, on February 28, 2018, Ryan Joseph Ritter (31) ambushed and repeatedly swung a 13-inch metal pipe at the mail carrier’s head, causing bodily injuries. During the attack, Ritter also stole the mail carrier’s postal keys.
Ritter pleaded guilty in June 2021 to one count of aggravated robbery of a postal mail carrier. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Ritter to two years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada made the announcement.
This case was investigated by the U.S. Postal Service. Assistant U.S. Attorney Jim Fang prosecuted the case.
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Justice Department Obtains Settlement from Kentucky Landlords to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
The Justice Department announced today that Chester Gordon Whitescarver and his wife, Betsy Whitescarver, who have owned and managed rental properties in and around Russellville, Kentucky, have agreed to pay $230,000 to resolve a lawsuit alleging that they violated the Fair Housing Act (FHA). The department’s lawsuit alleged that Gordon Whitescarver has sexually harassed female tenants since at least 2012 and that Betsy Whitescarver was on notice of sexual harassment allegations but took no action to stop his sexually harassing behavior.
Under the consent decree entered by the U.S. District Court for the Western District of Kentucky, the Whitescarvers must pay $220,000 to 11 women who are current or former tenants harmed by the Whitescarvers’ discriminatory conduct, and must pay a $10,000 civil penalty to the United States. The Whitescarvers must also take steps to dismiss any pending eviction actions against the victims, vacate any adverse judgments they obtained against the victims, and take steps to repair the credit of any affected victim. The consent decree also bars future discrimination, permanently bars the Whitescarvers from property management, mandates Fair Housing Act training, and requires monitoring and reporting regarding property management activities.
“We all deserve to feel safe in our own homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment by housing providers deprives tenants of their right to be safe, secure and free from unlawful conduct. The Justice Department is committed to pursuing predatory landlords and will work resolutely to hold those landlords accountable and obtain relief for their victims.”
“I commend the attorneys and investigators assigned to this case for their outstanding work on behalf of the 11 victims,” said U.S. Attorney Michael A. Bennett for the Western District of Kentucky. “The Fair Housing Act prohibits sexual harassment of tenants. We will continue to aggressively pursue landlords who subject their tenants to such discriminatory conduct.”
The United States’ lawsuit alleged that Gordon Whitescarver subjected multiple female tenants to sexual harassment and retaliation. According to the complaint, he made repeated and unwelcome sexual comments, entered the homes of female tenants without their consent, touched female tenants without their consent, requested sexual acts, offered reduced or free rent in exchange for sexual acts and took adverse housing-related actions against female tenants who refused his sexual advances. The United States’ complaint also alleged that Betsy Whitescarver threatened and retaliated against women who complained about her husband’s harassment.
The Justice Department launched its Sexual Harassment in Housing Initiative in October 2017. The department’s initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys' Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the initiative, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $5.2 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, or have suffered other forms of housing discrimination, you may contact the Justice Department by submitting a report online or contacting the U.S. Attorney’s Office for the Western District of Kentucky at (502) 582-5911.
Reports may also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
Jury Convicts Portland Gang Affiliate of Illegal Firearm PossessionRead the Press Release
PORTLAND, Ore.—On December 10, 2021, a federal jury found a known Portland gang affiliate guilty for illegally possessing a firearm as a convicted felon.
Kneko Tyray Moore, 33, a resident of Portland and an affiliate of the Rollin’ 60s Crips gang, was found guilty of one count of felon in possession of a firearm.
According to court documents, on the evening of April 17, 2020, the Portland Police Bureau (PPB) received numerous calls from neighbors about an unruly gathering at the Lone Fir Cemetery in Southeast Portland. Callers reported that approximately 20 people were having a barbeque and playing loud music. The gathering occurred during the height of the COVID-19 pandemic in direct violation of the governor’s stay-home order.
An undercover officer reported seeing known members or associates of the Rollin’ 60s Crips gang, including Moore, at the gathering. Six of the gathering attendees, also including Moore, were on state or federal supervision following felony weapons convictions. When marked police cars arrived on scene, Moore quickly left the group and walked toward a black sedan. Moore entered the vehicle and sped away, nearly hitting a tree and an unmarked police vehicle.
Two officers then assigned to PPB’s Gun Violence Reduction Team followed Moore as he left the cemetery and pulled him over after he almost struck another car. Both officers recognized Moore as a Rollin’ 60s affiliate and convicted felon and reported he was visibly nervous and trembling. Moore became agitated when the officers impounded his vehicle and was placed under arrest for interfering with an officer. When officers searched Moore’s vehicle, they found a loaded .40 caliber semi-automatic pistol with a chambered round on the front passenger floorboard.
On October 6, 2020, a federal grand jury in Portland returned a one-count indictment charging Moore with illegally possessing a firearm as a convicted felon.
Moore faces a maximum sentence of 10 years in prison, a $250,000 fine and three years’ supervised release. He will be sentenced on April 11, 2022 before U.S. District Court Judge Karin J. Immergut. Moore, who was on supervised release in a prior federal firearm case, is also facing violation proceedings.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by PPB and Bureau of Alcohol, Tobacco, Firearms, and Explosives. It was prosecuted by Gary Sussman, Jaclyn Jenkins, and Leah Bolstad, Assistant U.S. Attorneys for the District of Oregon.
Jefferson County man sentenced for sex offender registry violationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Frederick M. Hilliard, of Charles Town, West Virginia, was sentenced today to 18 months of incarceration for a sex offender registry charge, United States Attorney William J. Ihlenfeld, II announced.
Hilliard, 66, pleaded guilty in August 2021 to one count of “Failure to Register.” Hilliard admitted to not updating his sex offender registration from February to October 2019 in Jefferson County, as required by law, because of a rape conviction in Pennsylvania.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The U.S. Marshals Service investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for drug chargeRead the Press Release
MARTISNBURG, WEST VIRGINIA – Luis Manuel Solero Ortiz, of Ranson, West Virginia, was sentenced today to 60 months of incarceration for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Ortiz, 38, pled guilty in October 2020 to one count of “Possess with Intent to Distribute 500 Grams or More of Cocaine Hydrochloride.” Ortiz admitted to having more than 500 grams of cocaine hydrochloride in March 2019 in Jefferson County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Ranson Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Human Smugglers Sentenced for La Jolla Maritime Smuggling DeathRead the Press Release
Assistant U. S. Attorneys Colin M. McDonald (619) 546-9144 and Victor P. White (619) 546-8439
NEWS RELEASE SUMMARY – December 13, 2021
SAN DIEGO – Victor Alfonso Soto Aguilar and Jose Ramon Geraldo Romero were sentenced in federal court today to 71 and 60 months in prison, respectively, for attempting to smuggle fourteen Mexican citizens into the United States by sea, resulting in the tragic drowning death of a 43-year-old passenger.
Court records show that on May 19, 2021, Soto Aguilar and Geraldo Romero agreed to smuggle a group of undocumented individuals on a panga boat from Ensenada, Mexico to the shores of La Jolla, California—a distance nearing 100 miles. The smuggling venture encountered issues from the start. Due to engine trouble, the panga—which was significantly overloaded—stalled in the middle of open ocean waters. As a result, the group was forced to spend the night in the panga without adequate food or water. Soto Aguilar and Geraldo Romero then dropped their passengers on an island in the middle of the ocean while they tried to repair the panga. After making repairs, Soto Aguilar and Geraldo Romero retrieved the passengers from the island and proceeded to navigate the panga north towards La Jolla.
On May 20, 2021, in the early morning hours, the panga neared the shores of La Jolla by Marine Street beach. When the panga was approximately eighty yards from shore, Soto Aguilar and Geraldo Romero—not knowing if anyone could swim—instructed the passengers to remove their life jackets and jump into the water, assuring them the water was shallow.
Twelve passengers did as they were told. Immediately they struggled to stay afloat and desperately started calling for help. The two passengers that remained on the panga saw their fellow passengers struggling and tossed life jackets into the ocean. Soto Aguilar and Geraldo Romero then saw a lifeless body floating in the water. After pulling the body into the panga, Soto Aguilar and Geraldo Romero sped the boat away from the group in the water towards another beach about a half-mile away. After landing there, Soto Aguilar and Geraldo Romero then left the panga and fled the scene. However, after some searching by law enforcement, they were apprehended nearby.
As law enforcement was securing the crime scene, a concerned citizen spotted an individual floating in the water near the beached panga. Responding officers immediately rushed to the individual’s aid, extricated him from the water, and quickly realized he was unconscious. A Border Patrol agent performed CPR in an attempt to revive the individual, but he was pronounced dead once lifeguards arrived on scene. The decedent was later identified as Rogelio Perez-Gutierrez, a 43-year-old citizen of Mexico.
At the original drop-off location, United States Border Patrol, the United States Coast Guard, and San Diego Lifeguards spotted the individuals struggling desperately in the ocean. Lifeguards ultimately rescued ten people out of the water. In later interviews, the passengers on the panga said they were paying between $12,000 and $15,000 to be brought into the United States; they stated they feared for their lives throughout the ocean journey.
At the sentencing hearing, U.S. District Judge John Houston spoke about the “extraordinary danger” of smuggling on the high seas. Speaking of the gravity of the crime, Judge Houston said, “A human being is not here because of the risk you were willing to take.” He further urged the defendants to “[t]ell the people in Mexico that to captain or assist in driving a boat on the high seas will create a significant sentence.”
“This was a tragedy that never should have happened,” said Acting U.S. Attorney Randy Grossman. “These deadly smuggling incidents are on the rise. We will aggressively seek justice for the victims. But we also urge anyone who is contemplating an attempt to cross the border illegally: Don’t do it. Don’t put your life in the hands of greedy smugglers who care about money, not you.” Grossman commended the excellent work of the prosecution team as well as the HSI agents, Coast Guard officers, Border Patrol agents, and San Diego Lifeguards, for their efforts in connection with the case.
“The U.S. Border Patrol will continue to seek maximum prosecution of individuals who smuggle at sea,” said San Diego Sector’s Chief Patrol Agent Aaron Heitke. “This incredibly dangerous and unpredictable tactic has already claimed lives, yet smuggling organizations continue to enrich themselves by using it.”
DEFENDANTS Case Number 21cr1665-JAH
Victor Alfonso Soto Aguilar Age: 37 Residence: Mexico
Jose Ramon Geraldo Romero Age: 24 Residence: Mexico
SUMMARY OF CHARGES
8 U.S.C. § 1324(a)(1)(A)(i) and (B)(iv) - Attempted Bringing In Illegal Aliens Resulting in Death
Maximum penalty: Death or imprisonment for any term of years or for life; $250,000 fine.
8 U.S.C. § 1324(a)(2)(B)(ii) - Attempted Bringing In Illegal Aliens for Financial Gain (three counts)
Maximum penalty: mandatory minimum five years’ imprisonment; maximum fifteen years; $250,000 fine
AGENCIES
Homeland Security Investigations
United States Coast Guard
San Diego Lifeguards
United States Border Patrol
Customs and Border Protection
The U.S. Attorney’s Office for the Southern District of California helps lead Joint Task Force Alpha (JTFA), which was established by Attorney General Merrick B. Garland in June 2021 to marshal the investigative and prosecutorial resources of the Department of Justice, in partnership with the Department of Homeland Security (DHS), to enhance U.S. enforcement efforts against the most prolific and dangerous human smuggling and trafficking groups operating in Mexico and the Northern Triangle countries of Guatemala, El Salvador, and Honduras. The Task Force focuses on disrupting and dismantling smuggling and trafficking networks that abuse, exploit, or endanger migrants, pose national security threats, and are involved in organized crime. JTFA consists of federal prosecutors and attorneys from U.S. Attorney’s Offices along the Southwest Border (District of Arizona, Southern District of California, Southern District of Texas, and Western District of Texas), from the Criminal Division and the Civil Rights Division, along with law enforcement agents and analysts from DHS’s Immigration and Customs Enforcement, Customs and Border Protection, and Border Patrol. The FBI and the Drug Enforcement Administration are also part of the Task Force.
Hudson County Man Sentenced to 86 Months in Prison on Drug Distribution ChargesRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 86 months in prison for possessing with intent to distribute heroin, cocaine and cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Hason Armfield, 43, of Jersey City, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with possessing with intent to distribute heroin, cocaine and cocaine base. Judge McNulty imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
Armfield’s residence was searched as part of an investigation by the Drug Enforcement Administration (DEA) and the Jersey City Police Department. Law enforcement officers found heroin, cocaine, cocaine base, drug paraphernalia, and U.S. currency.
In addition to the prison term, Judge McNulty sentenced Armfield to three years of supervised release.
Acting U.S. Attorney Honig credited agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s sentencing.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in the U.S. Attorney’s Office in Newark.
Headland Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
Montgomery, Alabama – On December 10, 2021, Dedric J. Dean, 44, from Headland, Alabama, was sentenced to 36 months in prison, to be followed by three years of supervised release, announced Acting United States Attorney Sandra J. Stewart. There is no parole in the federal system.
According to court records, on May 12, 2020, officers with the Ozark Police Department spotted a vehicle being driven by Dean that had been reported stolen and performed a traffic stop. When officers searched the vehicle, they found a 9mm handgun. Dean has several felony convictions on his record and is prohibited from possessing firearms. Dean pleaded guilty to possession of a firearm by a convicted felon on June 23, 2021.
This case was investigated by the Ozark Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), with assistance from the Montgomery County Sheriff’s Office. Assistant United States Attorneys Russell T. Duraski, Chelsea Phillips, and Joshua J. Wendell prosecuted the case.
Hampshire County woman sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jessica Lynn Lundbald, of Augusta, West Virginia, was sentenced today to four years of probation for a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Lundbald, 24, pleaded guilty in September 2021 to one count of “Possession with Intent to Distribute Heroin and Fentanyl Mixture.” Lundbald admitted to working with another to distribute heroin and fentanyl in Hampshire County in August 2020.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, investigated. The task force consists of the FBI, the West Virginia State Police, the Grant County Sheriff’s Office, the Hardy County Sheriff’s Office, the Hardy County Sheriff’s Office, the Mineral County Sheriff’s Office, and the Keyser Police Department.
Chief U.S. District Gina M. Groh presided.
Greenbush Man Sentenced for Unlawfully Possessing AmmunitionRead the Press Release
BANGOR, Maine: A Greenbush man was sentenced in federal court today for being a felon in possession of ammunition, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced David Phillips, 30, to ten months in prison and one year of supervised release. Phillips pleaded guilty in July 2021.
According to court records, on multiple dates at the end of January 2021, Phillips was seen on video purchasing ammunition at a gun and ammunition store in Maine. These purchases were confirmed on Phillips’ debit card. This ammunition was not manufactured in the state of Maine. Phillips was prohibited from possessing ammunition under federal law because of a 2016 felony conviction in the Bridgeport, Connecticut Superior Court for violating a protective order.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the FBI; the Penobscot County Sheriff’s Office; the Maine State Police; and the Bangor Police Department investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
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Grant County man sentenced for fentanyl chargeRead the Press Release
ELKINS, WEST VIRGINIA – Kevin Wayne Fultz, of Maysville, West Virginia, was sentenced today to 70 months of incarceration for his role in a methamphetamine and fentanyl distribution operation, United States Attorney William J. Ihlenfeld, II announced.
Fultz, 32, pled guilty in May 2021 to one count of “Aiding and Abetting Possession with Intent to Distribute of Fentanyl.” Fultz admitted to having fentanyl in Grant County in January 2020.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Grand Jury Charges Former St. Bernard Parish Assistant District Attorney and Two Associates with Bank Fraud and Money Laundering OffensesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that a grand jury returned an indictment on December 10, 2021 against GLENN E. DIAZ, age 70, of Arabi; PETER J. “PETE” JENEVEIN, age 56, of Panama City, Florida; and MARK S. GRELLE, age 67, of Chalmette, for bank fraud and money laundering charges related to defrauding First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the 19-count indictment, from at least April 2016 through December 20, 2016, DIAZ, JENEVEIN, and GRELLE conspired to defraud First NBC Bank through a series of false invoices for work purportedly done at a Florida warehouse owned by DIAZ. As set forth in the indictment, DIAZ was a customer of First NBC Bank from 2006 through the bank’s closure in 2017. By late 2015, DIAZ had been overdrawing his checking account for purported business expenses, although DIAZ was depositing these overdrafts into his personal account at another bank. In April 2016, First NBC Bank officers were asking DIAZ for additional information about the use of the overdrafts. In June 2016, bank officers began requiring invoices as proof that DIAZ was spending bank funds on improving the Florida warehouse.
Thereafter, DIAZ had his associate JENEVEIN provide invoices for improvements on the Florida warehouse performed by GRELLE’s company, Grelle Underground Services LLC. Bank officers then approved the overdrafts based on these invoices. However, after DIAZ wrote the check to GRELLE’s company, GRELLE would then write a check back to DIAZ, which DIAZ would deposit into his personal account at JPMorgan Chase bank. DIAZ then used the money for expenditures unrelated to the Florida warehouse project. In total, DIAZ, JENEVEIN, and GRELLE executed a total of 17 round-trip transactions that defrauded First NBC Bank of $345,841.41.
DIAZ, JENEVEIN, and GRELLE are all charged in each of the 19 counts of the indictment. Count 1 charges the defendants with conspiracy to commit bank fraud, in violation of Title 18, United States Code, Sections 1344 and 1349. The maximum penalties that may be imposed upon conviction are up to 30 years in prison, a maximum fine of the greater of $1,000,000.00 or twice the gross gain to the defendants or twice the gross loss; up to five years of supervised release; and a $100 mandatory special assessment fee.
In Count 2, DIAZ, JENEVEIN, and GRELLE are charged with conspiring to commit money laundering, in violation of Title 18, United States Code, Sections 1956(a)(1)(B)(i) and 1956(h). If convicted, they face a maximum of up to 20 years in prison, a maximum fine of the greater of $500,000.00 or twice the value of the property involved in the transaction, up to three years of supervised release, and $100 mandatory special assessment fee.
In Counts 3 through 19, DIAZ, JENEVEIN, and GRELLE are charged with bank fraud, in violation of Title 18, United States Code, Section 1344. As to each count, the defendants may receive a maximum of up to 30 years in prison, a maximum fine of the greater of $1,000,000.00 or twice the gross gain to the defendants or twice the gross loss, up to five years of supervised release, and a $100 mandatory special assessment fee.
“The FBI is determined to identify, investigate, and bring to justice those who are committing financial crimes to enrich themselves at the expense of others,” said Douglas A. Williams, Jr., Special Agent in Charge, FBI New Orleans. “The FBI remains committed to investigating those who engage in white collar crimes that impact our financial institutions.”
“We will vigorously pursue any wrongdoers whose fraudulent actions impact the safety and soundness of financial institutions regulated by the Federal Reserve Board,” said Stephen Donnelly, Acting Special Agent in Charge, Eastern Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
U.S. Attorney Evans reiterated that an indictment is merely an accusation and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation; Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General; and the Federal Deposit Insurance Corporation, Office of Inspector General. Assistant U.S. Attorneys Matthew R. Payne, Nicholas D. Moses, J. Ryan McLaren, K. Paige O’Hale, and Rachal Cassagne are in charge of the prosecution.
Georgia Woman Pleads Guilty to Promoting Nationwide Tax Fraud SchemeRead the Press Release
A Georgia woman pleaded guilty today to conspiring to defraud the United States by promoting a nationwide tax fraud scheme and preparing false tax returns for the scheme’s participants.
According to court documents, Yomarie Febres, 47, of Covington, prepared 77 false income tax returns that collectively sought more than $23.8 million in tax refunds from the IRS. Between 2014 and 2016, Febres’s co-conspirators held seminars throughout the country where they promoted the scheme and recruited clients to file false tax returns with the IRS by convincing them that their mortgages and other debts entitled them to tax refunds. Information was then collected from clients and provided to Febres for use in the preparation of false tax returns. The tax returns Febres prepared falsely claimed that banks and other financial institutions had withheld large amounts of income taxes from the clients, which entitled the clients to refunds. In reality, the financial institutions had not paid any income to or withheld any taxes from the clients. The false tax returns Febres prepared caused the IRS to pay out more than $15 million in fraudulent refunds to scheme participants. Febres concealed her role in the scheme by falsely reporting that all of the returns were “self-prepared,” when, in fact, she had created them.
As part of her plea, Febres admitted that her co-conspirators charged clients approximately $10,000 to $15,000 in fees to participate in the scheme. A portion of the fee – typically $500 per client – was paid to Febres for each tax return she prepared. Febres further admitted that she did not report on her 2014 and 2015 income tax returns the income she received for preparing these false returns. She also admitted to claiming false business losses on her personal tax returns.
Febres is scheduled to be sentenced at a later date. She faces a maximum penalty of five years in prison for conspiring to defraud the United States and three years in prison for aiding and assisting in the preparation of false tax returns. Febres also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Several of Febres’s co-conspirators are scheduled to go to trial in January 2022.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Justice Department’s Tax Division and Assistant U.S. Attorney Chauncey A. Bratt of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case.
Georgia Woman Pleads Guilty to Promoting Nationwide Tax Fraud SchemeRead the Press Release
Orlando, FL – A Georgia woman pleaded guilty today to conspiring to defraud the United States by promoting a nationwide tax fraud scheme and preparing false tax returns for the scheme’s participants.
According to court documents, Yomarie Febres, 47, of Covington, prepared 77 false income tax returns that collectively sought more than $23.8 million in tax refunds from the IRS. Between 2014 and 2016, Febres’s co-conspirators held seminars throughout the country where they promoted the scheme and recruited clients to file false tax returns with the IRS by convincing them that their mortgages and other debts entitled them to tax refunds. Information was then collected from clients and provided to Febres for use in the preparation of false tax returns. The tax returns Febres prepared falsely claimed that banks and other financial institutions had withheld large amounts of income taxes from the clients, which entitled the clients to refunds. In reality, the financial institutions had not paid any income to or withheld any taxes from the clients. The false tax returns Febres prepared caused the IRS to pay out more than $15 million in fraudulent refunds to scheme participants. Febres concealed her role in the scheme by falsely reporting that all of the returns were “self-prepared,” when, in fact, she had created them.
As part of her plea, Febres admitted that her co-conspirators charged clients approximately $10,000 to $15,000 in fees to participate in the scheme. A portion of the fee – typically $500 per client – was paid to Febres for each tax return she prepared. Febres further admitted that she did not report on her 2014 and 2015 income tax returns the income she received for preparing these false returns. She also admitted to claiming false business losses on her personal tax returns.
Febres is scheduled to be sentenced at a later date. She faces a maximum penalty of five years in prison for conspiring to defraud the United States and three years in prison for aiding and assisting in the preparation of false tax returns. Febres also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Two of Febres’s co-conspirators are scheduled to go to trial in January 2022.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Melissa S. Siskind, Kavitha Bondada and Isaiah Boyd III of the Justice Department’s Tax Division and Assistant U.S. Attorney Chauncey A. Bratt of the U.S. Attorney’s Office for the Middle District of Florida are prosecuting the case.
Fugitive Extradited from Cameroon to the United States to Serve 80 Year Prison SentenceRead the Press Release
In the first extradition from the Republic of Cameroon to the United States, a Texas man was extradited to Houston on Friday to serve an 80-year prison sentence he received in absentia four years ago after he pleaded guilty in two separate cases to conspiracy, health care fraud, money laundering, and tax offenses.
According to court documents, in November 2016, Ebong Aloysius Tilong, 57, of Sugar Land, Texas, and his wife, Marie Neba, went to trial on the conspiracy, health care fraud, and money laundering charges. The trial evidence and court documents showed that between 2006 and 2015, Tilong, Neba, and their co-conspirators used Tilong and Neba’s company, Fiango Home Healthcare Inc. (Fiango), to corruptly obtain more than $13 million by submitting false and fraudulent claims to Medicare for home health care services that Fiango’s patients did not need or receive. The trial evidence and court documents also showed that Tilong and Neba paid illegal kickbacks to patient recruiters to refer patients to Fiango, and that Tilong falsified and directed others to falsify medical records to make it appear as though Fiango’s patients met the Medicare qualifications for home health care. Additional evidence demonstrated that Tilong attempted to destroy evidence and blackmail and suborn perjury from witnesses. After the first week of trial, Tilong pleaded guilty to one count of conspiracy to commit health care fraud, three counts of health care fraud, one count of conspiracy to pay and receive health care kickbacks, three counts of payment and receipt of health care kickbacks, and one count of conspiracy to launder monetary instruments.
In June 2017, Tilong pleaded guilty in a separate case to two counts of filing fraudulent tax returns. In connection with this guilty plea, Tilong admitted that he created a shell company called Quality Therapy Services (QTS) to limit the amount of tax that he paid to the IRS on the proceeds that he and his co-conspirators stole from Medicare. According to Tilong’s plea agreement, in 2013 and 2014, Tilong wrote almost $1 million in checks from Fiango to QTS for physical-therapy services that QTS never provided to Fiango’s patients and deducted as business expenses. Tilong admitted that his tax fraud scheme caused the IRS a tax loss of approximately $344,452.
In August 2017, Neba was sentenced to 75 years in prison the Medicare fraud scheme at Fiango. The U.S. District Court scheduled Tilong’s sentencing for Oct. 13, 2017, but court records show that on the morning of his sentencing hearing, Tilong removed an ankle bracelet monitoring his location and failed to respond to phone calls from, or appear in, the U.S. District Court for his sentencing. On Dec. 8, 2017, the U.S. District Court sentenced Tilong in absentia to 80 years in prison for his role in the Medicare and tax fraud schemes.
After Tilong absconded, the FBI Houston Field Office located Tilong in Cameroon, and worked collaboratively with the FBI Legal Attaché in Abuja, Nigeria, the Department of Health and Human Services Office of Inspector General (HHS-OIG), IRS Criminal Investigation (IRS-CI) Fraud Section, and the Office of the President of the Republic of Cameroon to ensure Tilong’s capture. Prior to his removal from Cameroon, Tilong was wanted by the FBI and listed among HHS-OIG’s Top 10 Most Wanted Fugitives. The National Police Force of Cameroon arrested Tilong in January 2019.
In September 2021, the Republic of Cameroon President Paul Biya signed a decree ordering Tilong’s removal to the United States.
On Dec. 10, 2021, U.S. Marshals escorted Tilong from Cameroon to the United States.
The United States is grateful to the Government of Cameroon for its cooperation and support of this extradition request.
“The successful return of Ebong Tilong demonstrates the department’s commitment to working with our international partners to pursue, capture, and return those who try to defraud the American people,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Thanks to the efforts of our law enforcement partners and their counterparts in Cameroon, Ebong Tilong has been returned to the United States and brought to justice.”
“This successful extradition of Ebong Tilong to serve his 80-year prison sentence is an example of the FBI’s collaboration with our federal and international partners that we hope will deter others from fleeing to avoid prosecution or sentencing,” said Acting Special Agent in Charge Richard A. Collodi of the FBI Houston Field Office. “These partnerships highlight the FBI’s reach as well as its determination to pursue actors anywhere to administer justice.”
“Convicted fraudster and former fugitive Ebong Tilong has been brought to justice in our country, thanks to the tireless efforts of U.S. law enforcement, including our investigators,” said Special Agent in Charge Miranda L. Bennett of HHS-OIG. “Our agency, together with our law enforcement partners, will continue to aggressively pursue those who steal from federal health care programs, wherever they try to hide.”
“IRS-CI is committed to not only investigating and ultimately seeking convictions of individuals who scheme to defraud Medicare, launder proceeds of their illicit transactions, and evade the IRS in paying their taxes, but we’re also committed to assisting in the apprehension and return of criminals who choose to run and hide upon their conviction and sentencing no matter where they go or how long they’ve been gone,” said Assistant Special Agent in Charge Ramsey E. Covington of the IRS-CI Houston Field Office. “We appreciate the efforts of our law enforcement partners and federal prosecutors in ensuring Tilong ultimately begins serving his 80-year sentence in federal prison.”
The Justice Department’s Office of International Affairs, the Regional Security Office of the State Department’s Bureau of Diplomatic Security, and the Consular Section of the U.S. Embassy in Yaoundé provided invaluable assistance in supporting the extradition and coordinating the return of Tilong to the United States.
Trial Attorney Jonathan Baum formerly of the Criminal Division’s Fraud Section (now with the Money Laundering and Asset Recovery Section) and Trial Attorney Andrew Pennebaker of the Fraud Section are prosecuting Tilong’s Medicare and tax fraud cases.
The FBI, HHS-OIG, and IRS-CI conducted the investigation under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Texas as part of the Medicare Fraud Strike Force. The interagency team combines the resources of federal, state, and local law enforcement entities to prevent and combat health care fraud, waste, and abuse. Strike Force teams have shut down health care fraud schemes around the country, arrested more than a thousand criminals, and recovered millions of taxpayer dollars.
Four More Defendants Sentenced in Coast Guard Test-Fixing SchemeRead the Press Release
NEW ORLEANS –U.S. Attorney Duane A. Evans announced the sentencings of four defendants for their roles in a test score-fixing scheme at a Coast Guard exam center.
On December 8, 2021, ALONZO WILLIAMS, who plead guilty to being an intermediary in the scheme, was sentenced by the Honorable Barry W. Ashe to 40 months incarceration to be followed by three years of supervised release.
QUANG TRAN, HARRY JOHNSON, and JAMES CARR, who each plead guilty to unlawfully receiving an officer-level mariner license, were sentenced by Judge Ashe to a year of probation and 100 hours of community service on October 28, December 8, and December 9, 2021 respectively
All 28 maritime industry workers charged in the November 2020 indictment have been convicted—24 plead guilty to unlawfully receiving licenses and 4 plead guilty to conspiring to defraud the United States by acting as intermediaries in the scheme. The other three defendants in this indictment—DOROTHY SMITH, ELDRIDGE JOHNSON, and BEVERLY MCCRARY—are former Coast Guard employees charged with conspiring to defraud the United States and are awaiting trial. Also awaiting trial are eight mariners charged with unlawfully receiving licenses in a separate, recently filed, indictment.
The indictments allege that the licenses at issue were unlawfully obtained though false exam scores entered by SMITH. The exams tested mariners’ knowledge and training to safely operate under the authority of the licenses, which were legally required to work various positions on vessels. SMITH is accused using a network of intermediaries to obtain payments from the mariners.
U.S. Attorney Evans reiterated that the indictments’ allegations against SMITH and any other defendants who are awaiting trial are merely charges and their guilt must be proven beyond a reasonable doubt.
This case is being investigated by the Coast Guard Investigative Service. Assistant U.S. Attorney Chandra Menon is in charge of the prosecution.
Former postal employee pleads guilty to theft of public moneyRead the Press Release
HOUSTON – A 35-year-old Houston resident has admitted to four counts of theft of public money, announced Acting U.S. Attorney Jennifer B. Lowery.
Tranese Nicole Mitchel was formerly employed as a lead sales and service clerk with the U.S. Postal Service (USPS) in Houston. Today, she admitted she issued fraudulent refunds by creating no-fee postal money orders She then cashed against her drawer at the post office where she worked.
Mitchell fraudulently issued and cashed a total of $29,947.30. She admitted using the money for her own benefit.
U.S. District Judge Andrew Hanen accepted the plea and set sentencing for April 11. At that time, Mitchell faces up to 10 years imprisonment and a maximum $250,000 fine.
She was permitted to remain on bond pending that hearing.
The U.S. Postal Service - Office of Inspector General conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
Former Realtor Sentenced for Attempting to Entice a MinorRead the Press Release
PROVIDENCE – A former Providence realtor convicted by a federal court jury of attempting to entice a 10 year-old girl to engage in sexual activity was sentenced today by U.S. District Court Judge William E. Smith to 15 years in federal prison to be followed by seven years of federal supervised release, announced United States Attorney Zachary A. Cunha.
Thomas M. Hammond, 54, of Lincoln, was convicted after trial of attempting to persuade, entice, induce or coerce a minor to engage in illicit sexual activity.
At trial, the government presented evidence that in June 2017, Hammond communicated on line and by telephone for several days with a person he believed to be the stepfather of a 10 year-old girl living in Warwick; in actuality, he was communicating with undercover officers of the Rhode Island Internet Crimes Against Children (ICAC) Task Force and Homeland Security Investigations (HSI). When Hammond was told that the man was sexually abusing his stepdaughter, he proposed joining in the abuse. Hammond arranged to meet with the stepfather, and to accompany him to his home to molest the 10 year-old at a pool party that Hammond planned. Instead, when Hammond arrived at the designated meeting location, he was arrested by HSI and ICAC officers.
“As the jury heard, the evidence in this case was distressingly clear: this Defendant repeatedly, unequivocally, and enthusiastically sought to victimize the most vulnerable among us in the most vile ways imaginable,” said United States Attorney Zachary A. Cunha. “Today’s sentence should serve notice that this type of exploitation cannot, and will not, be tolerated in our communities.”
“Law enforcement takes very seriously the protection of the vulnerable among our communities,” said Matthew B. Millhollin, special agent in charge of Homeland Security Investigations. “Due to the diligence and dedication of HSI’s special agents, and that of our ICAC partners, this predator is behind bars where he belongs.”
Colonel James M. Manni, Superintendent of the Rhode Island State Police and Director of the Department of Public Safety stated, “I commend the work of the members of the ICAC Unit, as well as Homeland Security Investigation, and their continued vigilance in identifying and apprehending these online predators. I would also like to extend my thanks to the United States Attorney’s Office for their continued efforts in combating those individuals seeking to exploit the children of our State.”
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Former NFL Player Sentenced to Federal Prison for COVID-19 Relief FraudRead the Press Release
Miami, Florida – A former National Football League (NFL) player was sentenced Friday to 37 months in federal prison for fraudulently obtaining over $1.2 million through a Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Joshua J. Bellamy, 32, of St. Petersburg, Florida, a former NFL player pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on June 9. As part of the fraud scheme, Bellamy obtained a PPP loan of $1,246,565 for his company, Drip Entertainment LLC, using falsified documents and false information. Bellamy admitted to using the PPP loan proceeds on personal items, such as jewelry, and a stay at the Seminole Hard Rock Hotel and Casino. Bellamy also sought PPP loans on behalf of his family members and close associates. Bellamy further admitted that he paid more than $311,000 to an alleged co-conspirator, James Stote, as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to his prison sentence, Bellamy was ordered to serve three years of supervised released and pay $1,246,565 in restitution and $1,246,565 in forfeiture.
In addition, a Florida woman was sentenced on Dec. 9 to two years in federal prison for fraudulently obtaining a PPP loan as part of this criminal scheme. According to court documents, Yashica Bain, 38, of Miramar, Florida, pleaded guilty in the Southern District of Florida to conspiracy to commit wire fraud on Sept. 30. As part of the fraud scheme, Bain obtained a PPP loan of $415,232 for her company, Microblading Brow Studio LLC, using falsified documents and false information. Bain used the PPP loan proceeds to enrich herself and others who never worked for her company. She falsely described those payments as “payroll” and “wages” to perpetrate this fraud. Bain admitted that she paid more than $28,000 to Stote as a kickback for his assistance in preparing and submitting the fraudulent loan application. In addition to her prison sentence, Bain was ordered to serve three years of supervised released and pay $415,232 in restitution and $415,232 in forfeiture.
Stote was charged by complaint on June 24, 2020, with wire fraud, bank fraud, and conspiracy to commit wire fraud and bank fraud. His case remains pending.
U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Michael J. De Palma of the IRS-Criminal Investigation (IRS-CI) Miami Field Office; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the SBA’s Office of Inspector General (SBA-OIG) Eastern Region made the announcement.
IRS-CI, the FBI, and SBA-OIG investigated the cases.
Trial Attorney Philip Trout of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys David Turken and Yisel Valdes of the Southern District of Florida prosecuted the cases.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A complaint is merely an allegation, and Stote is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Former Florida Election Commission Attorney Pleads Guilty to Conspiracy and Distribution of Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Eric Matthew Lipman, 59, of Tallahassee, Florida, pled guilty today to conspiring to distribute, receive, and possess material constituting child pornography, and distributing material constituting child pornography. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the guilty plea.
Between February 8, 2021, and February 11, 2021, Lipman, along with others, was a participant in Mega.NZ chat groups that distributed, received, possessed, and discussed child pornography images and videos. Mega.NZ was an Internet cloud storage and file hosting service based in New Zealand. Lipman conspired with the members of the chat groups to distribute, receive, and possess material constituting child pornography, and posted child pornography material within Mega.NZ chat groups for the benefit of other like-minded participants. The pornographic material that Lipman distributed, and that was found on Lipman’s electronic devices, involved prepubescent minors as well as minors under the age of 12.
Lipman faces a maximum penalty of 20 years in prison, with a minimum mandatory sentence of 5 years in prison, followed by a term of 5 years to life of supervised release on all counts following his prison sentence.
This case resulted from an investigation by the Homeland Security Investigations and the Leon County Sheriff’s Office. Assistant United States Attorney Justin M. Keen is prosecuting the case.
Lipman’s sentencing hearing is scheduled for March 18, 2022, at 1:30 p.m., at the United States Courthouse in Tallahassee before the Honorable United States Chief District Judge Mark E. Walker.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Former Financial Advisor Sentenced to 14 Years in Federal Prison for $12 Million Fraud that Caused Clients to Lose Retirement SavingsRead the Press Release
LOS ANGELES – A former financial advisor with a lengthy disciplinary history was sentenced today to 168 months in federal prison for a real estate investment con that caused his clients – many of them elderly people who had invested their retirement savings – to lose more than $12 million.
Paul Ricky Mata, 58, a former resident of Upland who now lives in Oceanside, was sentenced by United States District Judge R. Gary Klausner, who also ordered him to pay $12,560,385 in restitution to his victims. Mata was remanded into federal custody at the hearing’s conclusion.
On July 19, Mata pleaded guilty to 17 felonies: 11 counts of mail fraud, three counts of wire fraud, one count of making a false statement in a bankruptcy proceeding, one count of concealing assets in bankruptcy, and one count of making a false oath and accounts in bankruptcy.
From August 2008 to September 2015, Mata caused victims to invest in several of his businesses, including Secured Capital, Logos Real Estate, and other ventures. Mata failed to disclose his disciplinary history to his victims, including disciplinary actions taken against him by the states of Nevada and California, a one-year suspension and $10,000 fine imposed by the Financial Industry Regulatory Authority (FINRA), and a three-year suspension by the Certified Financial Planner (CFP) Board stemming from various forms of misconduct, including omitting material facts necessary to make other statements not misleading.
Mata induced his victims to invest their money in Secured Capital, a real estate investment program that purportedly invested in “government-backed tax liens,” “asset-backed deed certificates,” and distressed commercial and residential properties. Mata guaranteed investors that Secured Capital’s investment return generated annual rates of 5 percent to 10 percent, when in fact, investments in Secured Capital had significant loss risks and did not make a profit from 2011 onward.
Instead of properly investing his clients’ money, Mata used Secured Capital investor funds to pay his personal expenses, including a $197,000 down payment on his personal residence in Upland, loans to himself and to other entities he created, and $370,000 that was transferred into his personal bank accounts.
“It was not simply that [Mata] was an investment advisor to his victims,” prosecutors argued in a sentencing memorandum. “It was that, for many of them, he met them through church. He prayed with them, professed to share values and beliefs with them, and he acted like they were his friends. Moreover, many of his victims are currently retired, and/or were in the process of retiring when [Mata] advised them to enter into his risky investments based on false pretenses.”
Mata also made false statements on bankruptcy court documents in October 2016, including that he had not used any business names during the previous eight years, and that he had not filed for bankruptcy protection within the previous eight years. In fact, Mata had previously filed for bankruptcy in June 2010.
During the bankruptcy proceeding, Mata fraudulently concealed his personal property – including a 2008 Mini Cooper automobile and a 2001 Jeep – from the government and from his creditors.
At a bankruptcy hearing in November 2016, Mata lied when he denied that he had transferred anything to family or friends during the previous four years. In fact, in October 2016, Mata transferred the 2008 Mini Cooper to his daughter, and, in August 2016, he transferred his Upland home to his wife.
In 2015, the United States Securities and Exchange Commission filed a civil action against Mata and two business associates, alleging that they operated the real estate scam. Later that year, the SEC obtained a judgment against Mata that enjoined him from violating securities laws and ordered him to pay $11,748,831. That same year, the California Department of Business Oversight obtained a permanent injunction against Mata, as well as a $14 million restitution order and $6.3 million in civil penalties.
The FBI investigated this matter. The Office of the United States Trustee provided assistance.
Assistant United States Attorney Sean D. Peterson of the Riverside Branch Office prosecuted this case.
Former Erie Man Sentenced to More than 18 Years in Prison for Child Sexual Exploitation CrimesRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania has been sentenced in federal court to 222 months in jail, to be followed by 15 years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children. Holden was also ordered to pay $3,000 in restitution and a $600 special assessment, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Ryan Matthew Holden, 37.
According to information presented to the court, Holden used Instagram to induce a ten-year-old female to provide him sexually explicit images and sent images of his penis to the minor victim. Holden also sent images of child sexual abuse material to the minor victim to encourage her to engage in sexually explicit conduct. Holden also received and possessed thousands of other items of child sexual abuse material.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Prior to imposing sentence, Judge Cercone noted the seriousness of Holden’s conduct and its significant impact upon the victim.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Holden.
Former Dubuque Postal Employee Sentenced to Nearly Three Years in Federal Prison for Mail TheftRead the Press Release
A former postal employee who stole hundreds of thousands of dollars-worth of checks from the mail was sentenced today to more than two years in federal prison.
Amy Jurisic, age 38, currently of Carterville, Georgia, and previously from Dubuque, Iowa, received the prison term after a June 14, 2021 guilty plea to one count of mail theft.
Evidence at the sentencing hearing showed that Jurisic worked as a postal clerk for the Dubuque Post Office in 2017 and 2018. Starting in June 2017 and lasting through at least October 2018, Jurisic stole over 60 pieces of mail. Jurisic specifically stole mail that contained checks made out to a business located in Dubuque. Evidence showed that she then gave the checks to an individual in Chicago who was part of a check-cashing operation. The operation would change the names on the check and attempt to deposit the checks into various bank accounts. Overall, Jurisic stole nearly $650,000 in checks. Of that amount, approximately $62,000 was actually deposited into bank accounts. Other checks were flagged as fraudulent and banks did not process the deposits.
Jurisic was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jurisic was sentenced to 33 months’ imprisonment. She was ordered to make $62,456.33 in restitution to victims. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Jurisic was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Postal Service-Office of Inspector General and the United States Postal Inspection Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1042.
Follow us on Twitter @USAO_NDIA.
Ex-LADWP Executive Agrees to Plead Guilty to Lying to FBI About Agreeing to Accept Job in Exchange for ‘Guarantees’ to ContractorRead the Press Release
INFORMATION
PLEA AGREEMENTLOS ANGELES – A former Los Angeles Department of Water and Power (LADWP) executive has agreed to plead guilty to a federal criminal charge for lying to the FBI about a lucrative job offer he secretly solicited and agreed to accept in exchange for providing “guarantees” of additional LADWP contract money to a lawyer who held a bribery-fueled contract with the department, the Justice Department announced today.
David F. Alexander, 54, of Arcadia, agreed to plead guilty to one felony charge of making false statements, a crime that carries a statutory maximum sentence of five years in federal prison.
A one-count information charging Alexander and his plea agreement were both filed today in United States District Court. Alexander is expected to make his initial court appearance in the coming weeks.
According to his plea agreement, Alexander was LADWP’s chief information security officer from May 2017 until February 2019, and then he served as the department’s chief cyber risk officer for the next six months.
Beginning in 2017, Alexander developed a professional relationship with Paul O. Paradis, 58, a New York lawyer who represented LADWP in a lawsuit against PricewaterhouseCoopers (PwC), the vendor it blamed for a major billing debacle. In 2017, Paradis created a downtown Los Angeles-based company known as Aventador Utility Solutions LLC, which obtained a three-year, $30 million no-bid contract with LADWP to perform remediation work on the faulty billing system. Aventador also performed certain cybersecurity-related work for LADWP.
In March 2019, Paradis – who simultaneously had represented a ratepayer suing LADWP while he represented the department itself – resigned as special counsel for LADWP’s billing lawsuit and, later that month, purportedly sold Aventador to an employee. Aventador then changed its name to Ardent Cyber Solutions LLC, and Paradis was to have no financial interest in or control over the Aventador or its successor company.
In February 2019, the Southern California Public Power Authority (SCPPA) – a collective of 11 municipal utilities, including LADWP – issued a request for proposal (RFP) for a cybersecurity services contract at the request of LADWP’s then-general manager, David H. Wright. Alexander, the RFP’s primary drafter, was one of four members of the scoring committee for the SCPPA RFP, which was responsible for presenting its scores and recommendations to the SCPPA’s Cybersecurity Working Group.
Alexander knew the SCPPA RFP process was intended to be a competitive, neutral and transparent process. But he manipulated that process with the goal of securing future cybersecurity work for Aventador, and, later, Ardent.
From late February 2019 to April 2019, Alexander used his position as the LADWP chief cyber risk officer and the vice-chair of the SCPPA’s Cyber Security Working Group to influence the composition of the scoring committee to include individuals whom he could persuade to rank Ardent favorably and shared his confidential scores for the SCPPA proposals with other members of the committee to persuade them to score Ardent favorably.
On April 5, 2019, the SCPPA Cybersecurity Working Group informed Ardent that it would recommend Ardent for the SCPPA contract. Later that day, Alexander met with Paradis, who by that time was covertly cooperating with the FBI. During that meeting, Alexander told Paradis that he had used the SCPPA bidding process to get LADWP’s “desired outcome,” that is, a contract with Ardent, but in a manner that falsely appeared “completely transparent.” Alexander also boasted that he was the one who had secured the contract for Ardent, informing Paradis, “that was me driving it.”
On April 18, 2019, the SCPPA Board approved a multi-award contract for Ardent and two other vendors valued at a total of approximately $17 million.
In June and July of 2019, Alexander further manipulated in Ardent’s favor an RFP process from LADWP for the award of a three-year, $82.5 million cybersecurity consulting services contract. Alexander was one of the RFP drafters and he solicited Paradis’s edits for the drafts to enhance Ardent’s ability to gain the contract over the dozen-plus other vendors.
On July 9, 2019, Paradis told Alexander, via text message, that after he submitted the Ardent proposal, “it will be up to you to ‘manage’ the evaluators the same way you did for the SCPAA [sic] process so that we get the correct result... [winking face emoji].” Alexander responded via text message, “I know my job [crying-laughing emoji].”
During a meeting in mid-July 2019, Alexander told Paradis that, in violation of his obligation to keep his scores strictly confidential, he provided his score sheet to two other evaluators to influence them to give Ardent a high score. At this lunch meeting, Alexander informed Paradis that he was interested in working at Ardent as its business manager.
By the end of that week, Alexander solicited and agreed to accept from Paradis a future job as the chief administrative officer of Ardent, a to-be-determined executive-level annual salary, a sign-on bonus, and recompense of $60,000 per year for 30 years for his early retirement penalty from LADWP. Alexander did so intending to be influenced and rewarded in connection with his ongoing assistance in securing the award of a multimillion-dollar LADWP contract to Ardent and use of his position to guarantee more than $10 million in future task orders for Ardent under the anticipated LADWP contract.
Alexander also asked for a secret Ardent email address and laptop computer to communicate with Paradis and to secretly perform work for Ardent while he was employed at LADWP.
On July 22, 2019, the FBI executed search warrants at LADWP as part of its ongoing investigation into the department and the Los Angeles City Attorney’s Office. Two days later during a voluntary interview, Alexander lied to the FBI about his conversations and agreements with Paradis. On July 26, 2019, Alexander met again with the FBI and again lied, falsely stating that he had declined any employment opportunity with Ardent and that he had never provided any guarantees to Ardent or to Paradis.
Paradis has agreed to plead guilty to a bribery charge for accepting an illicit kickback of nearly $2.2 million for getting another attorney to purportedly represent his ratepayer client in a collusive lawsuit against LADWP related to the billing debacle. Paradis is cooperating with the ongoing investigation into the collusive litigation and corruption at LADWP. Paradis is expected to make his initial court appearance on December 16.
Wright, LADWP’s former general manager, has agreed to plead guilty to a federal criminal charge for accepting bribes from Paradis in exchange for his official action to secure a three-year, $30 million no-bid LADWP contract for Aventador. His change-of-plea hearing is expected to occur in the coming weeks.
The FBI is investigating this matter. Any member of the public who has information related to this or any other public corruption matter in the City of Los Angeles is encouraged to send information to the FBI’s tip line at tips.fbi.gov or to contact the FBI’s Los Angeles Field Office at (310) 477-6565.
Assistant United States Attorneys Melissa Mills, Jamari Buxton and Susan Har of the Public Corruption and Civil Rights Section are prosecuting this case.
Erie Online Scammer Sentenced to 34 Months for Defrauding VictimRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 34 months in jail on his conviction of wire fraud and engaging in monetary transactions in property derived from specified unlawful activity, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Henry James Corder, 68, 2206 Glendale Avenue, Erie, Pennsylvania.
According to information presented to the court, Corder engaged in a scheme wherein he used numerous falsehoods to steal from a victim that he met online. Corder falsely stated that he was a U.S. Marshal who could find the perpetrator who had previously scammed the victim. He also falsely claimed he needed money for cancer treatments, funeral services for relatives, business partnerships in which he promised to include the victim and items for a non-existent security business. As a result of his lies to the victim, Corder obtained more than $500,000 from her. He then used that money to pay off his mortgage and buy cars and a motorcycle.
Prior to imposing sentence, Judge Cercone noted the length of time that Corder engaged in the criminal conduct and the devastating impact on the victim.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation for the investigation leading to the successful prosecution of Corder.
Erie Market Owner Pleads Guilty to Defrauding Food Stamp ProgramRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to a charge of food stamp fraud, United States Attorney Cindy K. Chung announced today.
Bader Al-Dhumani, 56, pleaded guilty to one count before United States District Judge Susan Paradise Baxter.
In connection with the guilty plea, the court was advised that from in and around January 2015 to in and around April 2020, Al-Dhumani, who is the owner and operator of Palm Tree Market in Erie, committed food stamp fraud by accepting food stamps for cash, store credit, and ineligible items. Al-Dhumani also took possession of customers’ PA Access Cards so that he could use the customers’ food stamp benefits at other stores to purchase inventory for his store.
Judge Baxter scheduled sentencing for April 20, 2022 at 1:30 p.m. The law provides for a total sentence of twenty years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Al-Dhumani on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General and Homeland Security Investigations conducted the investigation that led to the prosecution of Al-Dhumani.
Erie Man Sentenced in Project Safe Childhood CaseRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, has been sentenced in federal court to 24 months in jail to be followed by five years of supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Gregory A. Doyle, 58.
According to information presented to the court, Doyle possessed computer videos depicting minors under the age of 12 engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Pennsylvania State Police for the investigation leading to the successful prosecution of Doyle.
Erie Man Gets Prison Sentence for Possessing Molotov Cocktails During May 30, 2020 ProtestRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 40 months in jail on his conviction of possession of an unregistered destructive device, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Tyvarh Nicholson, 30.
According to information presented to the court, Nicholson threw Molotov cocktails at police officers during the riot that occurred in downtown Erie on May 30, 2020.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
United States Attorney Chung commended the Federal Bureau of Investigation and the Erie Police Department for the investigation leading to the successful prosecution of Nicholson.
Erie Fentanyl Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 120 months in jail on his conviction of violating federal drug laws, United States Attorney Cindy K. Chung announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Chancelor Amir Jordan, 37.
According to information presented to the court, on or about February 4, 2020, Jordan possessed with intent to distribute more than 30 grams of fentanyl. The court was advised that Jordan also possessed a 9mm Taurus semi-automatic handgun, ammunition, cash, and a press used for packaging controlled substances.
Project Safe Neighborhood (PSN) is the centerpiece of the Department of Justice’s violent crime reductions efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevent and reentry programs for lasting reductions in crime.
Assistant United States Attorney Paul S. Sellers prosecuted this case on behalf of the government.
United States Attorney Chung commended the Pennsylvania State Police for the investigation leading to the successful prosecution of Jordan.
Ethete Man Arraigned for Assault by StrangulationRead the Press Release
United States Attorney Bob Murray announced today that CALVIN ANDERSON WHITE, 32, of Ethete, Wyoming was charged by indictment for assault by strangulation. White appeared for an arraignment hearing before United States Magistrate Judge Teresa M. McKee on
December 3, 2021 and pleaded not guilty to the charges. A trial has been set for January 31, 2022 and the defendant was remanded to the custody of the United States Marshals Service.
According to the indictment, on or about October 25, 2020, White did knowingly assault the victim by strangling and attempting to strangle her. If convicted, White faces up to 10 years imprisonment, up to a $250,000 fine, three years of supervised release and a $100 special assessment.
This crime is being investigated by the Federal Bureau of Investigation with assistance from the Bureau of Indian Affairs. Assistant United States Attorney Timothy W. Gist is prosecuting the case.
An indictment merely contains allegations, and every defendant is presumed innocent unless and until proven guilty.
Case No. 21-cr-00123-SWS
District Man Sentenced to 15-Year Prison Term for Two Armed Robberies in Northeast WashingtonRead the Press Release
WASHINGTON – Tyrell Morris, 24, of Washington, D.C., was sentenced today to serve 15 years in prison for a pair of armed robberies he committed over a six-week period this summer in Northeast Washington, announced U.S. Attorney Matthew M. Graves and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Morris pleaded guilty in September 2021, in the Superior Court of the District of Columbia, to two counts of armed robbery and related firearms offenses. He was sentenced by the Honorable J. Michael Ryan to 18 years in prison; however, three years of that time was suspended on the condition that Morris successfully complete five years of supervised probation.
According to the government’s evidence, on July 22, 2021, at approximately 7:35 a.m., Morris and an accomplice approached a man in the mouth of an alley behind the 1700 block of Gales Street NE, demanding everything that he had. The man, who had been walking, had a bag containing his phone and wallet. Morris brandished a firearm, which he then used to hit the victim across his face and head. When the victim turned to run away, Morris fired at him several times, hitting the victim once in the leg. Morris and the accomplice then fled with the bag.
The second robbery took place on Aug. 29, 2021, at approximately 10:10 a.m. The victim was using an ATM located inside a small building in the 1100 block of H Street NE, in the process of withdrawing money. As he was doing so, Morris and an accomplice entered the building. Morris aimed a firearm at the victim and demanded money. He took approximately $70 from the man, as well as the victim’s ATM card, which Morris used to withdraw approximately $1,000. Morris and the accomplice then left.
Morris was arrested on Sept. 7, 2021, following an investigation by the Metropolitan Police Department into a series of armed robberies. He has been in custody ever since.
In announcing the sentence, U.S. Attorney Graves and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews Yette, Victim/Witness Program Specialist Karina Hernandez, Victim/Witness Advocate Jennifer Allen, and Assistant U.S. Attorney Andy Wang, who investigated and prosecuted the case.
Defendant Sentenced in Brooklyn Federal Court to 28 Years in Prison for Drug-Related MurderRead the Press Release
Earlier today, in federal court in Brooklyn, Christian O. Dalmau was sentenced by United States District Judge Pamela K. Chen to 28 years in prison for murder in furtherance of a drug trafficking conspiracy and possessing a firearm in connection with that drug trafficking conspiracy. Dalmau pleaded guilty to those charges in September 2020.
Breon Peace, United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Dalmau callously murdered the victim over an unpaid drug debt, but today, Dalmau begins to answer for a different debt – the one he owes to society for decades to come for committing these crimes,” stated United States Attorney Peace. “Today’s sentence underscores the commitment of this Office to protecting our communities from violence and dangerous drugs.”
Mr. Peace thanked the Buffalo Police Department for its assistance in this case.
From at least 2011 until Dalmau’s arrest in 2015, the defendant was the leader of a large-scale cocaine distribution network operating throughout the northeast, but primarily in New York City, Buffalo, New York, Pennsylvania, Massachusetts and Puerto Rico. One of the individuals Dalmau supplied with quantities of cocaine was Dustin Ortiz-Maldonado. According to public filings and statements made during his guilty plea, on January 5, 2014, Dalmau fatally shot Ortiz-Maldonado four times in Buffalo over a dispute involving an unpaid drug debt.
Assistant United States Attorney Lauren Howard Elbert is in charge of the prosecution.
The Defendant:
CHRISTIAN O. DALMAU
Age: 35
Bronx, New YorkE.D.N.Y. Docket No. 18-CR-250 (PKC)
Deadline Extended for Submitting Comments on Draft Policy Statement on Licensing Negotiations and Remedies for Standards-Essential Patents Subject to F/RAND CommitmentsRead the Press Release
The Justice Department’s Antitrust Division, U.S. Patent and Trademark Office (USPTO), and the National Institute of Standards and Technology (NIST) are extending the period for receiving comments on the Draft Policy Statement on Licensing Negotiations and Remedies for Standards-Essential Patents Subject to F/RAND Commitments, released on Dec. 6. The agencies are extending the comment period from 30 to 60 days, with comments now being accepted until Feb. 4, 2022. The agencies extended the comment period to give all stakeholders more time to provide input on the new draft policy statement, which seeks to promote good-faith licensing negotiations and addresses the scope of remedies available to patent owners that have agreed to license their essential technologies on reasonable and non-discriminatory or fair, reasonable and non-discriminatory (F/RAND) terms.
Interested parties, including attorneys, economists, academics, consumer groups, industry stakeholders or other members of the public, may submit public comments to Regulations.gov until Feb. 4, 2022. Information about the draft revised statement can also be found on the Antitrust Division’s website.
DOJ Project Safe Neighborhoods Grant to Address State Crime Lab Gun BacklogRead the Press Release
PROVIDENCE, R.I. – United States Attorney Zachary A. Cunha announced today that the Justice Department has awarded a $296,966 Project Safe Neighborhoods grant to the Rhode Island State Crime Laboratory to address a backlog of firearm related cases.
The grant will be used to retain a firearms examiner to reduce the backlog of expended cartridge casings and projectiles that increased from zero cases in April of 2020 to over 280 cases in when the funding was requested in May of 2021.
“Getting violent criminals and their guns off the street is critical to the safety of our communities,” said United States Attorney Zachary A. Cunha. “Project Safe Neighborhoods leverages federal and state law enforcement partnerships, data, and resources to do just that. This grant, which will help our Rhode Island partners to quickly move potentially significant evidence through the state crime lab, is a critical part of our efforts.” ”
The Rhode Island Crime Lab serves all of the state of Rhode Island including state and municipal law enforcement agencies, the Office of the State Medical Examiner, and the Rhode Island Attorney General’s Office.
The Project Safe Neighborhoods (PSN) Program is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Clarksburg man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Gary Roudolph Loy, Jr., of Clarksburg, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Loy, 48, pleaded guilty today to one count of “Distribution of Methamphetamine.” Loy admitted to selling methamphetamine in October 2020 in Randolph County.
Loy faces up to 20 years of incarceration and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
City of Kenner Director of Inspection and Code Enforcement Charged with Conspiracy and Tax FraudRead the Press Release
NEW ORLEANS, LA – The U.S. Attorney’s Office announced today that JAMES MOHAMAD, 52, of Kenner, was charged on December 10, 2021 in a 5-count superseding indictment by a federal Grand Jury with conspiracy to use an interstate facility with intent to carry on unlawful activity (Title 18, United States Code, Sections 371 and 1952(a)(3)) and filing false tax returns (Title 26, United States Code, Section 7206(1)).
According to the superseding indictment, MOHAMAD, the Director of the Department of Inspection and Code Enforcement for the City of Kenner, paid bribe money to Brian Medus, the Assistant Chief Mechanical Inspector for the City of New Orleans, Safety and Permits Department, in return for the issuance of fraudulent permits for MOHAMAD’s HVAC jobs. Throughout the course of the conspiracy, MOHAMAD paid Medus and others approximately $93,000 to further the bribery scheme. Additionally, MOHAMAD is charged with four counts of filing false tax returns for 2016-2019.
If convicted of Count 1, MOHAMAD faces a maximum term of imprisonment of five (5) years, a fine of not more than $250,000, up to three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee. As to each of Counts 2-5, MOHAMAD faces a maximum term of imprisonment of three (3) years, a fine of not more than $250,000, up to three years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee.
A co-defendant, Brian Medus, has pleaded guilty to the conspiracy charge and is scheduled for sentencing on February 16, 2022.
The United States Attorney’s Office reiterated that the Superseding Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This matter was investigated by the Federal Bureau of Investigation, the Internal Revenue Service-Criminal Investigations, and the City of New Orleans/Office of Inspector General. Assistance was also provided by the Louisiana State Licensing Board for Contractors. Assistant United States Attorney Tracey N. Knight is prosecuting the matter.
Chicago Woman SentencedRead the Press Release
HAMMOND- Taniya Williams, 22, of Chicago, Illinois, was sentenced by United States District Court Chief Judge Jon DeGuilio after pleading guilty to the felony offense of making false statements in connection with the acquisition of a firearm, announced United States Attorney Clifford D. Johnson.
Williams was sentenced to 5 months in prison, 5 months home detention and 1 year of supervised release.
According to documents in the case, on November 12, 2020, Williams purchased a semi-automatic pistol from a federally licensed firearms dealer in Lake County, Indiana. At the time of the purchase, Williams, a Chicago resident under felony indictment for aggravated unlawful use of a weapon, falsely stated that she was an Indiana resident and that she did not have any pending felony charges against her. These false statements were in violation of federal law. Williams was subsequently convicted of felony aggravated unlawful use of a weapon in Illinois.
This case was investigated by Bureau of Alcohol, Tobacco, Firearms, and Explosives along with the Chicago Police Department. This case was prosecuted by Assistant U.S. Attorney Nicholas J. Padilla.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Brooklyn Supreme Court Justice Convicted of Obstructing Federal Investigation of Misconduct at Municipal Credit UnionRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced today the conviction of SYLVIA ASH, a justice of the New York State Supreme Court, and former chair of the Board of Directors of Municipal Credit Union (“MCU”), for conspiracy to obstruct justice, obstruction of justice, and making a false statement to a federal agent. These charges arose from a scheme to impede the federal criminal investigation into fraud and corruption at MCU, a non-profit, multibillion-dollar financial institution, including misconduct committed by Kam Wong, the former chief executive officer (“CEO”), and Joseph Guagliardo, a former New York City Police Department Officer and member of MCU’s Supervisory Committee. Wong and Guagliardo were charged separately and previously pled guilty to embezzlement from MCU. ASH was convicted after a two-week jury trial before U.S. District Judge Lewis A. Kaplan and is scheduled to be sentenced on April 20, 2022 by Judge Kaplan.
U.S. Attorney Damian Williams said: “Today’s conviction demonstrates our resolve in uncovering criminal conduct at the highest levels of MCU and ensuring that those who attempt to thwart a federal investigation face consequences for that corrosive conduct. As the jury unanimously found, Sylvia Ash took repeated steps, over multiple months, to seek to obstruct the federal criminal investigation into financial misconduct at MCU that took place during Ash’s tenure as chair of the Board of Directors. Obstruction of justice, particularly by a sitting state court judge, is a serious crime, and Ash now faces punishment for her obstruction scheme.”
According to the Complaint, Indictment, Superseding Indictment, publicly-available information, court filings, and evidence presented during the trial in Manhattan federal court:
Municipal Credit Union
MCU is a non-profit financial institution headquartered in New York, New York, which is federally insured by the National Credit Union Administration (“NCUA”). MCU is the oldest credit union in New York State and one of the oldest and largest in the country, providing banking services to more than 500,000 members, and with more than $4 billion in member accounts, each of which is insured for at least $250,000 by the National Credit Union Share Insurance Fund, which is administered by the NCUA. Membership in MCU is generally available to employees of New York City and its agencies, employees of the federal and New York state governments who work in New York City, and employees of hospitals, nursing homes, and similar facilities located within New York State.
At all relevant times, MCU was overseen by a Board of Directors (the “Board”) and a Supervisory Committee (the “Supervisory Committee”), each of which was composed of members of MCU, who were not supposed to be compensated. As a result of severe deficiencies in the Board’s and the Supervisory Committee’s oversight of the credit union, which came to light in connection with the federal investigation, the New York Department of Financial Services (“DFS”) removed the members of the Supervisory Committee in May 2018 and the Board in June 2018. Subsequently, DFS appointed NCUA as the conservator for the credit union.
ASH
ASH is a sitting New York State Supreme Court Justice in Kings County. ASH has served as a judge in the New York State court system since approximately 2006, first as a Kings County Civil Court Judge, and then, starting in 2011, as a Kings County Supreme Court Justice. In or about January 2016, ASH was appointed as the presiding judge in the Kings County Supreme Court’s Commercial Division. After the charges in this case were unsealed, ASH was suspended from her position.
ASH served on MCU’s Board from in or about May 2008 until on or about August 15, 2016, when she resigned. From in or about May 2015 until her resignation, ASH served as the chair of the Board. ASH resigned after a complaint was filed against her by the New York State Commission on Judicial Conduct arising from a conflict of interest between her position as a state judge and her membership on MCU’s Board. More than a year before her resignation, ASH had been instructed to resign from MCU’s Board by the Advisory Committee on Judicial Ethics, which instruction she disregarded.
From at least in or about 2012 through 2016, while serving as an MCU Board member and while Wong was CEO, ASH received annually tens of thousands of dollars in reimbursements and other benefits from MCU, including airfare, hotels, food and entertainment expenses for her and a guest to attend conferences both domestically and abroad, annual birthday parties at a minor league baseball stadium, payment for phone and cable bills, and electronic devices. Even after her resignation from the Board, Wong continued to provide or cause MCU to provide ASH with benefits, such as Apple devices and sports tickets. As a sitting state judge, ASH was required to report both her board service and gifts and benefits she received from any outside sources on an annual state disclosure form. But between at least 2012 and 2018, ASH never reported her board service nor any gifts or benefits from MCU.
ASH’s Obstruction of Justice
In January 2018, after Wong, MCU’s then-CEO, had been approached by federal law enforcement agents investigating apparent financial misconduct by Wong, in an attempt to protect Wong, ASH agreed to and did sign a false and misleading memorandum purporting to explain and justify millions of dollars Wong had received from MCU. Wong subsequently provided that false and misleading memorandum to federal agents in an attempt to demonstrate that the millions of dollars had purportedly been orally approved for him to receive by ASH in June 2015, when she was chair of the Board. However, in truth, neither ASH nor the Board had approved the payment of those funds.
On March 1, 2018, shortly after Wong was placed on administrative leave by MCU, ASH was interviewed about the memorandum she signed for Wong. During that interview, ASH admitted that the memorandum was not accurate, but attempted to justify the money that Wong received by stating that MCU’s then-current general counsel had told her that Wong’s employment contract gave him the option of receiving such money. That statement was false.
On March 13, 2018, ASH was served with a federal grand jury subpoena (the “First Subpoena”), which required the production of documents related to various matters, including Wong’s compensation, and any communications with Wong through the date of the First Subpoena. On April 6, 2018, during a telephonic interview with a federal agent, ASH falsely stated that she did not have any materials responsive to the First Subpoena.
On June 8, 2018—after Wong was charged with embezzlement from MCU and the Government executed a judicially-authorized search of the residence of Guagliardo—ASH was interviewed by telephone for a second time about the First Subpoena. During that interview, ASH again falsely stated that she did not have any materials responsive to the First Subpoena.
On June 18, 2018, ASH was served with a second federal grand jury subpoena (the “Second Subpoena”), which required the production of, among other things, all correspondence with Wong and Guagliardo; all documents regarding any criminal investigation, internal investigation, or audit related to Wong; and all documents regarding items of value ASH received from MCU, Wong, or Guagliardo. Shortly afterward, ASH went to an Apple store and wiped an iPhone X that Wong had provided her in January 2018. In addition, ASH deleted emails from her Gmail account, including all of her emails with Guagliardo, none of which she produced in response to either of the two federal grand jury subpoenas directed to her. ASH also later wiped two MCU-issued iPads she had received.
On July 6, 2018, on ASH’s behalf, her then-counsel produced materials to the Government in response to the Second Subpoena. This production was materially incomplete, and did not contain text messages, emails, and other documents ASH possessed or had under her custody or control that were responsive to the Second Subpoena.
On July 9, 2018, ASH attended a voluntary interview with the U.S. Attorney’s Office. During this interview, while accompanied by her then-counsel, ASH made multiple false statements, including repeating false statements regarding her purported conversations with MCU’s former general counsel about Wong’s receipt of cash payments and falsely claiming that she and her aunt took a trip to Las Vegas paid for by MCU, including airfare, lodging, and entertainment expenses, after she resigned because all of her travel arrangements were paid for by MCU before she resigned, when in truth all of the expenses were paid for after she resigned.
On or about October 11, 2019, ASH was arrested and her cellphone was seized. After obtaining a judicially-authorized search warrant, ASH’s phone was searched, which revealed, among other things, numerous text messages, including with Wong and Guagliardo, that were concealed in response to the First and Second Subpoenas.
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ASH, 64, of Brooklyn, New York, was convicted of one count of conspiracy to obstruct justice, which carries a maximum penalty of five years in prison; one count of obstruction of justice, which carries a maximum penalty of 20 years in prison; and one count of making false statements, which carries a maximum penalty of five years in prison. The maximum potential penalties are prescribed by Congress and are provided here for informational purposes only, as sentencing of the defendant will be determined by Judge Kaplan.
On June 4, 2019, Wong was sentenced to 66 months in prison for embezzlement from MCU and was ordered to forfeit $9,890,375 and to pay restitution in the same amount to MCU.
On July 23, 2020, Guagliardo was sentenced to 27 months in prison for embezzlement from MCU and was ordered to forfeit $425,514 and to pay $468,189 in restitution to MCU.
U.S. Attorney Williams praised the outstanding work of the Special Agents of the United States Attorney’s Office. Mr. Williams also thanked the New York County District Attorney’s Office and DFS for their assistance.
The case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Eli J. Mark, Daniel C. Richenthal, and Jonathan Rebold are in charge of the prosecution, with the assistance of Special Assistant U.S. Attorney Alona S. Katz from the New York County District Attorney’s Office.
Brevard County Man Sentenced to 13 Years for Receiving Child Sexual Abuse Videos over the InternetRead the Press Release
Orlando, Florida – United States District Judge Paul G. Byron has sentenced Fred Lee White (41, Titusville) to 13 years in federal prison for receiving images over the internet that depicted child sexual abuse. White was also ordered to serve a 15-year term of supervised release and to register as a sex offender.
White had pleaded guilty in September 2021.
According to court documents, the Brevard County Sheriff’s Office arrested White on May 28, 2020, for exposing himself to a 10-year-old child who lived in his neighborhood. Later, a neighbor found an unlocked electronic tablet that belonged to White and reported to law enforcement that the tablet contained several images that appeared to depict the sexual abuse of children.
A forensic examination of White’s tablet revealed several videos White had recorded from an application on the tablet. The app was a social network service on which account holders can post livestream broadcasts of material recorded on electronic devices. Other users with accounts could choose to watch the broadcast and send real time comments and rewards to the broadcaster.
Approximately 114 video recordings of the app were found on White’s tablet. The videos depicted children taking selfie-style videos of themselves, in various stages of undress, while White and other users were viewing the live broadcasts. Some of the videos depicted minor girls exposing and sexually abusing themselves in return for rewards offered by those like White who were viewing the broadcasts.
“Every time a predator shares child pornography it re-victimizes a young child,” said HSI Orlando Assistant Special Agent in Charge David Pezzutti. “Thanks to HSI and our law enforcement partnership with the Brevard County Sheriff’s Office, he will be held accountable for his crimes.”
This case was investigated by the Brevard County Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney John Gardella.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.