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Monday 25 October 2021
Justice Department Obtains Consent Decree in Sexual Harassment Lawsuit Against Owners of Minneapolis Area Rental PropertiesRead the Press Release
MINNEAPOLIS – The Justice Department today announced that it has obtained a consent decree with Reese Pfeiffer and several other defendants to resolve allegations that Pfeiffer violated the Fair Housing Act (FHA) by subjecting 23 women to severe and repeated sexual harassment and retaliation at residential properties defendants own or manage in and around Minneapolis.
Under the consent decree, the defendants must pay a total of $736,000 in compensation to 23 victims of the alleged sexual harassment and retaliation, and a $14,000 civil penalty to the United States. Additionally, the consent decree permanently bars Reese Pfeiffer from property management and requires the retention of an independent property manager approved by the Department of Justice at specified Twin Cities properties. The defendants must also undergo education and training on the FHA, with specific emphasis on discrimination on the basis of sex and sexual harassment.
The defendants are property managers/owners Reese Pfeiffer, Jeanne Pfeiffer, Michael Fruen and Jeremy Martineau and business entities Fruen & Pfeiffer LLP (F&P) and M. Fruen Properties (MFP).
The consent decree, entered today by the U.S. District Court for the District of Minnesota, resolves a lawsuit that the department filed in Sept. 2020, as well as a related private lawsuit brought by Mid-Minnesota Legal Aid on behalf of three women who were subjected to Pfeiffer’s alleged sexual harassment.
“All people deserve to feel safe in their homes,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment in housing deprives individuals of that security. The Justice Department will not tolerate landlords who abuse their power by sexually harassing their tenants and will continue to work resolutely to hold such persons accountable and obtain relief for their victims.”
“The sexual harassment and discrimination of female tenants is unacceptable and a violation of federal law,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This resolution helps restore the public safety of these female tenants. No one should be subjected to an environment of harassment, discrimination, and retaliation, especially in their own homes.”
The United States’ lawsuit alleged that Reese Pfeiffer, property manager for numerous rental properties in Minneapolis and surrounding suburbs, subjected multiple female tenants and prospective tenants to sexual harassment. The complaint alleged that Reese Pfeiffer commented on female tenants’ looks and body parts, engaged in unwelcome touching, asked personal questions about their relationship status, made unwelcome sexual advances, discussed sexual topics without consent, entered their homes under the pretense of collecting rent to solicit sexual favors, and offered them rental benefits, such as excusing late or unpaid rent, in exchange for sexual favors. The complaint further alleged that Reese Pfeiffer’s co-defendants are vicariously liable for Pfeiffer’s discriminatory conduct because he acted as their agent when he sexually harassed tenants at properties in which they had an ownership interest.
This case is handled by the Civil Division of the U.S. Attorney’s Office for the District of Minnesota with the assistance of the Justice Department’s Civil Rights Division and the U.S. Department of Housing and Urban Development (HUD), Office of Inspector General.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s 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 in October 2017, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $4.8 million for victims of such harassment.
If you think you are a victim of sexual harassment by a landlord, or other forms of housing discrimination, you may contact the Justice Department by submitting a report online or contact the United States Attorney’s Office for the District of Minnesota at (612) 664-5600.
Reports 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.
Justice Department Announces New Initiative to Combat RedliningRead the Press Release
[KANSAS CITY, KAN.]— The U.S. Attorney’s Office for the District of Kansas announced its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system. When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated,” said Attorney General Garland. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“This initiative is important to our community, and we stand ready to work with community stakeholders and the Civil Rights Division to investigate allegations of redlining and, when appropriate, hold those accountable who participate in illegal redlining practices,” said Acting U.S. Attorney Duston Slinkard.
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The initiative will:
• Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.• Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
• Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
• Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.###
Jefferson County Man Guilty of FEMA Fraud for Hurricane Harvey PaymentsRead the Press Release
BEAUMONT, Texas – A Beaumont man has pleaded guilty to hurricane-related fraud in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Ricky Gonzales, 61, pleaded guilty to fraud in connection with a major disaster or emergency benefits today before U.S. Magistrate Judge Christine L. Stetson.
According to information presented in court, Hurricane Harvey made landfall in southeast Texas in August 2017, causing extensive damage to the region. Gonzales applied for assistance from the Federal Emergency Management Agency (FEMA) for damage to a residence in Mauriceville, which he claimed was his primary residence. Gonzales received approximately $35,000 as a result of his claim. This residence, however, was actually rented and occupied by Gonzales’ daughter, who also applied for FEMA assistance. Her application was denied because of the duplicate applications for the same address. In order to receive FEMA funds, the applicant must use the property as their primary residence. Rental income properties are not eligible for FEMA funds.
Gonzales was indicted by a federal grand jury on July 8, 2021. He faces up to 30 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
“FEMA relief funds are intended to assist Americans who have been affected by life-changing disasters, not as a publicly-funded handout for unscrupulous fraudsters,” said Acting U.S. Attorney Nicholas J. Ganjei. “EDTX will protect the integrity of these relief programs, and the interests of the American taxpayer, by vigorously prosecuting anyone who attempts to steal disaster relief funds.”
This case is being investigated by the Department of Homeland Security Office of Inspector General and the Federal Emergency Management Agency and prosecuted by Assistant U.S. Attorney Rachel Grove.
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Jacksonville Man Sentenced to 12 Years in Federal Prison for Using the Internet to Attempt to Entice and Meet A 12-Year-Old Child for SexRead the Press Release
Jacksonville, Florida – United States District Judge Brian J. Davis has sentenced Wayne Dale Epps, Jr. (36, Jacksonville) to 12 years in federal prison for using the internet to attempt to entice a 12-year-old child to engage in sexual activity. Epps was also ordered to serve a life term of supervised release and to register as a sex offender.
Epps had pleaded guilty on June 10, 2021.
According to court documents, on February 14, 2020, an undercover FBI agent who was posing online as the family member of a 12-year-old child was contacted by Epps using the screen name “ksaber2040.” Over the next several days, Epps and the undercover agent engaged in online conversation in which Epps expressed his desire to meet the “child.” Epps confirmed that he wanted to meet the “child” for sexual activity, stating “[t]his is a first for me I’m nervous but I’ve been wanting to try younger.” Epps provided the undercover agent with graphic details about how he intended to sexually abuse the “child.” He offered to use a “flavored condom” and requested pictures of the “child.”
On February 18, 2020, Epps drove to a prearranged location at a shopping center in Jacksonville to meet the “child” for sex and was arrested by FBI agents. During an interview, Epps stated that it was “possible that [he] would have followed through” and engaged in sex with the 12-year-old child, and further that he “should have never made that decision.”
This case was investigated by the Federal Bureau of Investigation in Jacksonville. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
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.
Jackson Grant Charged for Unlawfully Possessing a FirearmRead the Press Release
The Office of the United States Attorney for the District of Vermont announced that Jackson Grant, 37, of Brooklyn, New York, was charged today by criminal complaint with unlawfully possessing a firearm as a convicted felon. Grant is scheduled to appear on the charge before U.S. Magistrate Judge Kevin J. Doyle on Tuesday, October 26, 2021.
According to court records, Grant was found in possession of a firearm during the execution of a federal search warrant on October 22, 2021. Federal law enforcement, with the assistance of state and local officers, searched the ground floor of an apartment located at 47 Baxter St., Rutland, Vermont, where Grant was encountered. The search at 47 Baxter St. also yielded a large amount of U.S. currency and suspected controlled substances. Grant is prohibited from possessing firearms under federal law due to a prior felony conviction.
If convicted of the charge alleged in the complaint, Grant faces a maximum sentence of ten years of imprisonment and a $250,000 fine. The actual sentence, however, would be determined by the Court with guidance from the advisory Federal Sentencing Guidelines. The Acting United States Attorney emphasizes that the charge in the complaint is merely an accusation, and that the defendant is presumed innocent unless and until he is proven guilty.
The United States is represented in this matter by Assistant U.S. Attorney Paul Van de Graaf. Assistant Federal Public Defender Sara M. Puls represents the defendant.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian and other law enforcement partners: Homeland Security Investigations, the Vermont State Police, and the Rutland Police Department. For more information about Project Guardian, please see http://www.justice.gov/projectguardian/.
Indictment Unsealed Charges Three in Fraud Scheme Targeting Rhode Island SeniorsRead the Press Release
PROVIDENCE, R.I. – A federal indictment unsealed in U.S. District Court in Providence on Friday charges three individuals with allegedly participating in a so called “Grandparent Scam” to defraud at least eleven elderly Rhode Island residents in nine communities of thousands of dollars, announced Acting United States Attorney Richard B. Myrus.
The indictment alleges that members of the conspiracy contacted Rhode Island senior citizens by telephone, posing as their grandchild, a lawyer, or other individual, and falsely claimed the grandchild had been in a car accident, had been arrested, and that cash was needed for bail and legal fees.
The indictment charges Bryan Valdez-Espinosa, 21, of Union City, NJ., with conspiracy to commit wire fraud; and Diego A. Alarcon, 22, of Union City, NJ, and Jason Hatcher, 39, of New York, NY, with conspiracy to commit wire fraud and aggravated identity theft.
Valdez-Espinosa, arrested by Homeland Security Investigation (HSI) agents last week and arraigned on Friday, was released on unsecured bond. Federal arrest warrants have been issued for Alarcon and Hatcher. Anyone with information as to the whereabouts of Alarcon or Hatcher are asked to contact the United States Marshals Service in Providence at (401) 528-5000.
According to the indictment and information presented to the court, an investigation by HSI determined that between June 9 and June 11, 2021, the three men allegedly participated in a scheme to contact elderly Rhode Islanders and pose as the person’s grandchild, claiming that they had been arrested and needed money for bail. The victims were instructed to gather the necessary funds in cash and provide the cash to a courier who would arrive at their home later that day. Several victims were contacted multiple times, in some instances by an individual claiming to be an attorney, seeking additional funds because, they claimed, the amount of cash bail had increased due to additional and more serious criminal charges being brought against their grandchild. The victims were instructed to provide the additional cash to a courier; to mail the cash to an address in Florida; or to electronically transfer the funds to an account in the Dominican Republic. Some victims were told that a “gag order” was in effect and that they were prohibited from telling anyone about the case or the cash payments.
Eleven of the twelve victims allegedly contacted by members of the conspiracy provided cash payments ranging from $6,000 to $99,225. Relatives of one person targeted by the scammers intervened and chased away a person who attempted to retrieve $9,500 in cash.
The case is being prosecuted by Assistant United States Attorney William F. Ferland.
Acting United States Attorney Myrus thanks the Barrington, Cranston, Coventry, Cumberland, East Providence, Hopkinton, Johnston, Smithfield, and Warwick Police Departments for their assistance in investigating and assisting residents in their community allegedly victimized by this scam.
A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
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Indian Trail Man Is Sentenced to Three and A Half Years for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced today that Bryan John Cohen, 46, of Indian Trail, N.C. was ordered to serve 42 months in prison and a year of supervised release for orchestrating an investment scheme. He was also ordered to pay $291,000 as restitution.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), in North Carolina, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and the sentencing hearing, from 2015 to 2020, Cohen defrauded at least 10 victims of more than $385,000, by inducing them to invest money in his purported investment businesses, OTC Bully, Ascension Trading, and Recharge Investments, and in other business ventures. Court records show that Cohen falsely represented to victims, most of whom were Cohen’s friends and acquaintances, that he was a financially savvy investor with a successful track record in the financial industry, and that he would invest their funds using a computer algorithm called the “Dewey System.”
As Cohen previously admitted in court, to convince victims their investments were legitimate, Cohen provided them with bogus Investment Agreements that purported, among other things, that Cohen would not charge any investment fees, and that the money would be invested in a manner “expected of a reputable, experienced and competent professional investment manager.” To further lull victims into thinking their investments were safe, Cohen supplied them with fake profit and loss sheets on a monthly basis, which falsely indicated the victims’ investments were growing.
Contrary to claims Cohen made to his victims, court documents show that Cohen did not invest their money as promised. Rather, Cohen used the money to pay for personal expenses and to make Ponzi-style payments to older investors using new investors’ money. In November 2020, Cohen pleaded guilty to wire fraud.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI in Charlotte, and the North Carolina Department of Public Safety, Special Operations and Intelligence Unit, for their investigation.
Assistant U.S. Attorney Maria Vento, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Huntington Woman Sentenced on Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – Christa Dawn Ravenscroft, 45, of Huntington, was sentenced today to 24 months in federal prison for possession with intent to distribute methamphetamine.
According to court documents, law enforcement officers executed a search warrant on March 8, 2019, at a residence on Baer Street in Huntington after receiving multiple reports of drug activity at that location. A search of the residence found approximately 1.55g of methamphetamine along with multiple ledgers and a digital scale. Ravenscroft admitted that she sold drugs to support her own habit.
United States Attorney William S. Thompson made the announcement and commended the investigative efforts of the Huntington Violent Crime and Drug Task Force and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Ryan A. Keefe handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-00181.
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Huntington Man Pleads Guilty to Fentanyl and Cocaine ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today in connection with his participation in a large fentanyl and cocaine distribution ring operating in the Huntington area. William Raeshaun Byrd, 31, entered a guilty plea to conspiracy to distribute 400 grams or more of fentanyl and 5 kilograms or more of cocaine.
According to court documents and statements made in court, Byrd admitted that he participated in the conspiracy from the Summer of 2020 to July of 2021. During the conspiracy, Byrd frequently received shipments of fentanyl and cocaine which were transported from Columbus, Ohio to Huntington by vehicle. For each shipment, Byrd received a minimum of 1 kilogram of fentanyl and 1 kilogram of cocaine. The drugs were provided to Byrd on consignment and Byrd would pay for the drugs after he distributed them in Huntington. Byrd further admitted that he operated two residences in Huntington as locations to accept the shipments and distribute the drugs.
Byrd was arrested on July 29, 2021, after a federal grand jury returned an indictment charging multiple individuals in the investigation. A search warrant was also executed at Byrd’s residence on that date and law enforcement officers seized a number of items including two firearms and over $113,000 in United States currency. Byrd admitted that he possessed the firearms and that the money constituted proceeds from drug sales.
Byrd faces a mandatory minimum of 10 years and up to life in federal prison when he is sentenced on January 31, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force, which consists of the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department. The West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West provide investigative support to the task force. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus also assisted in the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams is handling the prosecution.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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-00109.
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Fresno Man Sentenced to over 2 Years in Prison for Being a Felon in Possession of a FirearmRead the Press Release
FRESNO, Calif. — Eugene Dajohn Marshall, 31, of Fresno, was sentenced today by U.S. District Judge Dale A. Drozd to two years and eight months in prison, for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 15, 2019, law enforcement officers were called to a domestic violence disturbance at Marshall’s home. Marshall, a previously convicted felon prohibited by law from possessing firearms and ammunition, was found to be in possession of a loaded firearm and additional rounds of ammunition.
This case was the product of an investigation by Homeland Security Investigations and the Fresno Police Department. Assistant U.S. Attorney Jessica A. Massey prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Tribal Police Chief Admits to Stealing More than $300,000 from Local Tribe by Selling Fake BadgesRead the Press Release
Assistant U. S. Attorney Andrew J. Galvin (619) 546-9721
NEWS RELEASE SUMMARY – October 25, 2021
SAN DIEGO – Anthony Reyes Vazquez pleaded guilty in federal court today, admitting that he stole more than $300,000 from the Manzanita Band of the Kumeyaay Nation while serving as chief of the Manzanita Tribal Police Department.
According to his plea agreement, Vazquez admitted that he sold fake badges to buyers who made substantial payments to become members of the Manzanita Tribal Police Department and have privileges available to law enforcement officers, such as carrying concealed weapons.
From 2012 to 2018, Vazquez served as the Chief of Police for the Manzanita Tribal Police Department. The Manzanita Tribal Police Department, however, was not recognized by the Bureau of Indian Affairs or the State of California as a police department, and it did not have the authority to enforce federal or state laws, on or off the reservation.
In his plea agreement, Vazquez admitted that he and other tribal police officers recruited wealthy individuals in the Los Angeles area to become members of the Manzanita Tribal Police Department. These wealthy individuals often had little to no law enforcement experience before joining the police department. Vazquez and his recruiters asked these wealthy individuals – known as the “VIP Group” – to make large payments, ranging from $5,000 to $100,000, in exchange for membership in the Manzanita Tribal Police Department, which included a badge purporting to allow the holder to carry a concealed weapon. Members of the VIP Group were not expected to perform any law enforcement services for the police department and many never visited the Manzanita Band reservation.
As a result of this recruiting effort, dozens of individuals paid the recruiters and, in return, these individuals were made members of the Manzanita Tribal Police Department. Vazquez paid cash kickbacks or commissions to the recruiters and paid himself approximately $2,000 per month as purported reimbursement for travel expenses from his home to the reservation. In addition, Vazquez kept approximately $300,000 worth of donations from the VIP Group, which Vazquez admitted should have instead been given to the Manzanita Band. Vazquez did not disclose to the Manzanita Band that he was selling membership to the Manzanita Tribal Police Department to unqualified members in exchange for large sums of money or that he was paying himself out of money collected by recruiters.
As part of his plea, Vazquez also admitted that he suffered a felony drug conviction in 1992 and illegally possessed approximately twenty-four firearms while serving as Chief of Police of the Manzanita Tribal Police Department.
"This defendant sold law enforcement badges and jeopardized public safety,” said Acting U.S. Attorney Randy Grossman. “His manipulative and self-serving ploy also significantly undermined state laws governing the issuance of credentials to carry concealed weapons.” Grossman thanked prosecutors Andrew Galvin and Frances Lewis, as well as FBI agents, for their excellent work on this case.
“Anthony Vazquez, a convicted felon, collected hundreds of thousands of dollars in ‘donations’ from dozens of people - to line his own pockets - in exchange for giving them police credentials,” said FBI Special Agent in Charge Suzanne Turner. “This brazen scheme not only deprived the Manzanita Band of funding, but also caused numerous untrained ‘officers’ to believe they were authorized to carry concealed weapons on and off the reservation and enforce laws with little to no training.”
Vazquez is scheduled to be sentenced on January 24, 2022 at 8:30 a.m. before U.S. District Judge Gonzalo P. Curiel.
This case is being prosecuted by Assistant U.S. Attorneys Andrew Galvin of the Southern District of California and Frances Lewis of the Central District of California.
DEFENDANT Case Number 21-CR-3020-GPC
Anthony Reyes Vazquez Age: 49 Camarillo, CA
SUMMARY OF CHARGES
Theft Concerning Programs Receiving Federal Funds – Title 18, U.S.C., Section 666(a)(1)
Maximum penalty: Ten years’ imprisonment and $250,000 fine
AGENCY
Federal Bureau of Investigation
Former Philadelphia Man Sentenced to Prison for Making. Passing Counterfeit $100 BillsRead the Press Release
PITTSBURGH, PA - A former resident of Philadelphia, Pennsylvania, has been sentenced in federal court to 18 months in prison, three years supervised release and restitution of $4,600.00 on his conviction of violating federal counterfeit laws, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Forkpa Howard, 32, formerly of Philadelphia, PA 19124.
According to information presented to the court, Howard conspired to counterfeit $100 Federal Reserve Notes and then passed said counterfeit bills at various retail stores and businesses in the Western District of Pennsylvania and elsewhere in August 2019.
Prior to imposing sentence, Judge Bissoon concurred with the government that defendant’s crime affects the integrity of our monetary system and our nation’s economy. She did not agree to a vary from the advisory guidelines range in this case.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the United States Secret Service for the investigation leading to the successful prosecution of Howard.
Former Naturopath convicted of trafficking in misbranded drugs he claimed could treat and prevent COVIDRead the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was convicted late last week of a federal felony related to his misbranding of products he claimed could prevent and treat numerous serious diseases, including COVID-19 and MRSA, announced U.S. Attorney Nicholas W. Brown. Richard Marschall, 68, was convicted following a 4-day trial. The jury found Marschall guilty of Introduction of Misbranded Drugs into Interstate Commerce, his third conviction for the same crime following earlier prosecutions in 2011 and 2017. Sentencing in front of U.S. District Judge Benjamin H. Settle likely will occur in early 2022.
According to records filed in the case, in late March, 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public about Facebook posts for Marschall’s products. Investigators reviewed Marschall's Facebook page which included claims that his product the “Dynamic Duo” could “crush” viruses, including the coronavirus. Marschall billed himself as a retired naturopath and “Health Coach.” Marschall’s Facebook page also claimed that his products could eliminate MRSA and other infections “even if there is antibiotic resistance.”
On March 30, 2020, an FDA investigator spoke to Marschall on the telephone in an undercover capacity explaining to Marschall that she was worried about COVID-19. Marschall told the investigator that the “Dynamic Duo” contained garlic extract and larch tree starch, and further represented that one of the substances “doesn’t boost the immune system, it just kills the virus.” Marschall represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
On the call with the FDA investigator, Marschall also referred to himself as “Dr. Rick Marschall.” His Facebook posts and other marketing materials for the “Dynamic Duo” also referred to Marschall as “N.D.” and “N.D. retired.” But Marschall did not have a license to practice naturopathy. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
FDA investigators received Marschall’s “Dynamic Duo” products in early April 2020, along with documents. The products themselves were not made by Marschall but by other manufacturers. The manufacturers’ labels for the substances do not claim to kill viruses, but still Marschall included documents that stated the substances can “crush 30 different viral infections, including those in the Corona family, like in China Corona-19.”
The jury found that Marschall misbranded the drugs because his marketing was false or misleading and because his products were not listed with the FDA.
In 2011 and again in 2017, Marschall was convicted and sentenced in federal court for distributing misbranded drugs. For the current conviction, Marschall faces up to three years in prison and a $250,000 fine.
The case was investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case was prosecuted by Assistant United States Attorneys Nicholas Manheim, Michelle Jensen, and Brian Werner.
Former Georgetown Head Tennis Coach Pleads Guilty in College Admissions CaseRead the Press Release
BOSTON – The former head coach of men and women’s tennis at Georgetown University pleaded guilty today in connection with soliciting and accepting bribes to facilitate the admission of prospective Georgetown applicants and failing to report all of the income from the bribes on his federal income taxes.
Gordon Ernst, 54, of Chevy Chase, Md. and Falmouth, Mass., pleaded guilty to one count of conspiracy to commit federal programs bribery, three counts of federal programs bribery and one count of filing a false tax return. U.S. District Court Judge Indira Talwani scheduled sentencing for March 2, 2022.
As set forth in the charging document, Ernst solicited and received bribe payments from William “Rick” Singer and the families of prospective Georgetown applicants to facilitate their admission to Georgetown as student athletes. Ernst then failed to report all of the income from those bribe payments on his federal income tax returns.
Under the terms of Ernst’s plea agreement, the parties have agreed to a sentence of at least one year and up to four years in prison, two years of supervised release and forfeiture of $3,435,053.
The charge of federal programs bribery provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of conspiracy to commit federal programs bribery provides for a sentence of up to five years in prison, three years of supervised release a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of filing a false tax return provides for a sentence of up to three years in prison, one year of supervised release and a fine of $100,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Case information, including the status of each defendant, charging documents, and plea agreements are available here: https://www.justice.gov/usao-ma/investigations-college-admissions-and-testing-bribery-scheme.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Mark Deckett, Resident Agent in Charge of the Department of Education, Office of Inspector General made the announcement today. Assistant U.S. Attorneys Leslie A. Wright, Kristen A. Kearney and Kriss Basil of Mendell’s Criminal Division are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Air War College Professor Pleads Guilty to Making False Statements About Relationship with Government Official in ChinaRead the Press Release
A civilian professor at the Air War College on Maxwell Air Force Base in Montgomery, Alabama, pleaded guilty to making false statements to a federal agent.
According to court documents, Xiaoming Zhang, 69, a naturalized citizen of Chinese descent living in Montgomery, Alabama, began working as an Air War College (AWC) professor in July 2003. During his tenure at the AWC, Zhang would travel to China on a regular basis for work-related purposes, research and to visit family living there.
Beginning sometime in 2012, Zhang developed a relationship with a known foreign official working with the Shanghai Municipal Government. Records indicate that Zhang met with the official in person on approximately six occasions and exchanged approximately 40 emails with him from December 2012 to January 2017. At some point during this period, Zhang became aware that the official was using, or attempting to use, their relationship to gain access to sensitive information in Zhang’s possession, as well as to make contact with other potentially valuable individuals.
As part of his employment at the AWC, Zhang held a “secret” security clearance and attended annual security training that informed him of reporting requirements about suspicious foreign contacts and relationships with foreign government officials, along with other briefings concerning reporting requirements. Despite all the trainings and briefings, Zhang failed to report the relationship with the foreign official even after he came to understand that the official was attempting to gather sensitive information from Zhang.
According to the factual basis contained in the plea agreement, Zhang made multiple misleading or false statements to authorities in an attempt to hide his relationship with the Chinese official. In August of 2017, Zhang denied knowing the foreign official when questioned by U.S. Office of Personnel Management (OPM) investigators who were verifying his continued eligibility for a security clearance. When the FBI interviewed Zhang in July of 2020, he initially made more false statements, but eventually admitted to meeting with the official in China on numerous occasions and to being untruthful concerning that information. Zhang also acknowledged that he had concealed the relationship with the official because he knew it was improper.
Zhang pleaded guilty to making false statements to a federal agent and faces a maximum of five years in prison at sentencing. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division and Acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama made the announcement.
The FBI investigated the case, with valuable assistance provided by the U.S. Office of Personnel Management, the Department of the Air Force’s Office of Special Investigations (AFOSI), and the Department of Defense.
Assistant U.S. Attorney Brett Talley of the Middle District of Alabama is prosecuting the case with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.
Former Air War College Professor Pleads Guilty to Making False Statements About Relationship with Government Official in ChinaRead the Press Release
Montgomery, Alabama – A civilian professor at the Air War College on Maxwell Air Force Base in Montgomery, Alabama, pleaded guilty to making false statements to a federal agent, Announced Acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama, and Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division.
According to court documents, Xiaoming Zhang, 69, a naturalized citizen of Chinese descent living in Montgomery, Alabama, began working as an Air War College (AWC) professor in July 2003. During his tenure at the AWC, Zhang would travel to China on a regular basis for work-related purposes, research and to visit family living there.
Beginning sometime in 2012, Zhang developed a relationship with a known foreign official working with the Shanghai Municipal Government. Records indicate that Zhang met with the official in person on approximately six occasions and exchanged approximately 40 emails with him from December 2012 to January 2017. At some point during this period, Zhang became aware that the official was using, or attempting to use, their relationship to gain access to sensitive information in Zhang’s possession, as well as to make contact with other potentially valuable individuals.
As part of his employment at the AWC, Zhang held a “secret” security clearance and attended annual security training that informed him of reporting requirements about suspicious foreign contacts and relationships with foreign government officials, along with other briefings concerning reporting requirements. Despite all the trainings and briefings, Zhang failed to report the relationship with the foreign official even after he came to understand that the official was attempting to gather sensitive information from Zhang.
According to the factual basis contained in the plea agreement, Zhang made multiple misleading or false statements to authorities in an attempt to hide his relationship with the Chinese official. In August of 2017, Zhang denied knowing the foreign official when questioned by U.S. Office of Personnel Management (OPM) investigators who were verifying his continued eligibility for a security clearance. When the FBI interviewed Zhang in July of 2020, he initially made more false statements, but eventually admitted to meeting with the official in China on numerous occasions and to being untruthful concerning that information. Zhang also acknowledged that he had concealed the relationship with the official because he knew it was improper.
Zhang pleaded guilty to making false statements to a federal agent and faces a maximum of five years in prison at sentencing. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case, with valuable assistance provided by the U.S. Office of Personnel Management, the Department of the Air Force’s Office of Special Investigations (AFOSI), and the Department of Defense.
Assistant U.S. Attorney Brett Talley of the Middle District of Alabama is prosecuting the case with assistance from Trial Attorney Scott Claffee of the National Security Division’s Counterintelligence and Export Control Section.
Fight in Rocky Mount Hotel Leads to Drugs, Gun, and a 16 Year Sentence for Prior Federal FelonRead the Press Release
RALEIGH, N.C. – On Friday, October 22, 2021, a Scotland Neck man was sentenced to 192 months in prison for narcotics and firearm violations while on post-release supervision for a prior federal felony. On April 2021, Gerard Roderkus Fenner, 40, pled guilty to possession with intent to distribute heroin, fentanyl, marijuana, and methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a felon.
According to court documents and other information presented in court, on November 26, 2019, Rocky Mount Police Officers responded to the Days Inn after receiving a 911 call about a fight involving a firearm. The caller said the fight was over drugs.
Officers responded to the hotel room in question and found the door locked. The occupant, eventually identified as Fenner, refused to open the door. Concerned Fenner was tossing evidence out the third-story window, officers went to the outside window just in time to find Fenner jumping. Landing hard on the ground after the thirty-foot jump, Fenner was immediately arrested.
Officers found over $4,000 cash stuffed in Fenner’s underwear. Back in the hotel room, officers discovered heroin and fentanyl mixtures, marijuana, over eight hundred methamphetamine pills, and a loaded firearm. At the time of the incident, Fenner was serving a term of post-release supervision stemming from a federal firearm charge in 2013.
In issuing a 168-month sentence for the conviction and a 24-month consecutive sentence for the revocation of supervision, the Court noted the danger posed by the narcotics and firearm involved in Fenner’s trafficking.
“Our mission here at the Rocky Mount Police Department is to improve the quality of life in the city of Rocky Mount by building partnerships to reduce crime. We value our partnership with our Federal Law Enforcement agencies, who assist us in creating a safe environment for all citizens who reside and visit Rocky Mount, North Carolina. The Rocky Mount Police Department will continue to work with Federal, State, and Local law enforcement agencies while providing the highest level of police services,” said the Rocky Mount Chief of Police Robert Hassell.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. Rocky Mount Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 4:12-CR-115 and 5:20-CR-85-D.
District Man Sentenced to 18 Years in Prison for 2018 Killing Near Union StationRead the Press Release
WASHINGTON - MacArthur Venable, 36, of Washington, D.C., was sentenced today to 18 years in prison for killing a man near Union Station in October 2018.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Venable pleaded guilty in February 2020, in the Superior Court of the District of Columbia, to a charge of second-degree murder while armed. The plea, which was contingent upon the Court’s approval, called for a sentence between 15 and 18 years. The Honorable Chief Judge Anita Josey-Herring accepted the plea and sentenced Venable accordingly. Following his prison term, Venable will be placed on five years of supervised release.
According to the government’s evidence, on Oct. 31, 2018, at approximately 9:50 p.m., Venable was walking down Massachusetts Avenue with another individual when he came upon the victim, James Ferrell, near the intersection of North Capitol Street NW. Venable then began to speak to Mr. Ferrell and an argument ensued. The argument escalated and Venable walked up to the individual who he was walking with, reached into his waistband, and pulled out a firearm. Venable then pointed and fired the firearm at Mr. Ferrell. Mr. Ferrell was struck in his chest twice and subsequently ran across the street and collapsed in front of the National Postal Museum. A witness called 911 and police and paramedics arrived at the scene. Mr. Ferrell, 34, was taken to a hospital, where he was pronounced dead soon afterward.
Venable was arrested on Dec. 20, 2018 and has been in custody ever since.
In announcing the sentence, Acting U.S. Attorney Phillips and Chief Contee commended the work of those who investigated the case from the Criminal Investigations Division Homicide Branch of the Metropolitan Police Department and also the U.S. Capitol Police. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Lashone Samuel, Victim/Witness Advocate Marcia Rinker, and Investigative Analyst Zachary McMenamin. Finally, they commended the work of Assistant U.S. Attorney Shehzad Akhtar, who investigated and prosecuted the matter.
Detroit Man Sentenced to Federal Prison for Heroin DistributionRead the Press Release
HUNTINGTON, W.Va. – A Detroit, Michigan man was sentenced today to 121 months in prison for a federal drug crime. Bandon William Jones, 42, previously pleaded guilty to distribution of heroin.
According to court documents, a confidential informant working with law enforcement purchased approximately 10.8 grams of heroin from Jones for $1,000.00 on October 29, 2020. The drug transaction took place on 16th Street Road in Huntington. Officers then followed Jones to the 1500 block of Hal Greer Boulevard where they arrested him. Officers found additional suspected heroin and the $1,000 used in the controlled heroin purchase. Jones also admitted that he was responsible for selling at least 20 kilograms of heroin in the Huntington area.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Greg McVey handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00029.
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Danville Man Sentenced for Distributing Cocaine, MethamphetamineRead the Press Release
DANVILLE, Va. – A Danville man was sentenced last week to 87 months in federal prison for distributing cocaine and methamphetamine.
Joe Ali Daniels, 61, pleaded guilty in May 2021 to one count of distributing cocaine and two counts of distributing 5 grams or more of methamphetamine.
According to court documents, in May, September, and October of 2019, Daniels made several sales of cocaine and methamphetamine to police. During each of these transactions, Daniels used a cell phone to arrange the sales, which took place at Daniels’ residence in Danville, Virginia. Once at the residence, Daniels called another individual, who delivered the drugs to complete the transaction.
United States Attorney Christopher R. Kavanaugh of the Western District of Virginia and Charlie J. Patterson, Special Agent in Charge of ATF’s Washington Field Division made the announcement.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Danville Police Department.
Assistant United States Attorneys Rachel Swartz and Coleman Adams prosecuted the case for the United States.
Cleveland man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Eiandreus Kirkland Rebraun Pique, of Cleveland, Ohio, was sentenced today to 57 months of incarceration for his role in a drug trafficking conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Pique, also known as “Duke,” age 26, pleaded guilty in July 2021 to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1000 feet of a Protected Location.” Pique admitted to working with someone to distribute cocaine base, also known as “crack,” near Wheeling University in February 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Chief Financial Officer for Oklahoma Business Found Guilty of Employment Tax FraudRead the Press Release
A federal jury convicted a North Carolina woman on Oct. 22 of employment tax fraud.
According to court documents and evidence presented at trial, Christina Rochelle Anglin, aka Christy Anglin, of Burnsville, was the Controller and Chief Financial Officer for Atmospheric Technology Services Company (ATSC) located in Norman, Oklahoma. In that role, Anglin was responsible for withholding from employee wages and paying to the IRS payroll taxes, which included Social Security and Medicare taxes and federal income taxes. From the first quarter through the third quarter of 2018, Anglin did not pay to the IRS nearly $920,000 in payroll taxes, which had been withheld from employees. At the same time these taxes were not paid, Anglin approved thousands of dollars of business expenditures, including salary and bonuses for herself and other executives.
Anglin faces a maximum penalty of five years in prison for each count of employment tax fraud plus payment of restitution to the IRS. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma made the announcement.
This case was investigated by IRS-Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS), U.S. General Services Administration-Office of Inspector General (GSA-OIG), FBI, Naval Criminal Investigative Service (NCIS), Army Criminal Investigations Division (ARMY-CID), and the Small Business Administration-Office of Inspector General (SBA-OIG).
Assistant U.S. Attorney William Farrior of the U.S. Attorney’s Office for the Western District of Oklahoma and Trial Attorney Ahmed Almudallal of the Tax Division are prosecuting the case.
Chief Financial Officer for Oklahoma Business Found Guilty of Employment Tax FraudRead the Press Release
OKLAHOMA CITY – On October 22, 2021, a federal jury in Oklahoma City convicted Christina Rochelle Anglin, aka Christy Anglin, of Burnsville, North Carolina, of employment tax fraud, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Robert J. Troester for the Western District of Oklahoma.
According to court documents and evidence presented at trial, Anglin was the Controller and Chief Financial Officer for Atmospheric Technology Services Company (ATSC) located in Norman, Oklahoma. In that role, Anglin was responsible for withholding from employee wages and paying to the IRS payroll taxes, which included Social Security and Medicare taxes and federal income taxes. From the first quarter through the third quarter of 2018, Anglin did not pay to the IRS nearly $920,000 in payroll taxes, which had been withheld from employees. At the same time these taxes were not paid, Anglin approved thousands of dollars of business expenditures, including salary and bonuses for herself and other executives.
At sentencing, Anglin faces a maximum penalty of five years in prison for each count of employment tax fraud plus payment of restitution to the IRS. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case was investigated by IRS-Criminal Investigation (IRS-CI), Defense Criminal Investigative Service (DCIS), U.S. General Services Administration-Office of Inspector General (GSA-OIG), FBI, Naval Criminal Investigative Service (NCIS), Army Criminal Investigations Division (ARMY-CID), and the Small Business Administration-Office of Inspector General (SBA-OIG).
Assistant U.S. Attorney William Farrior of the U.S. Attorney’s Office for the Western District of Oklahoma and Trial Attorney Ahmed Almudallal of the Tax Division are prosecuting the case.
A Department of Justice national press release can be found at https://www.justice.gov/opa/pr/chief-financial-officer-oklahoma-business-found-guilty-employment-tax-fraud.
Chicago Man Sentenced to Federal Prison for Fraudulent Concert SchemeRead the Press Release
A man who fraudulently solicited artist booking deposits and other expenses for concerts that never occurred was sentenced on October 20, 2021, to more than six years in federal prison. Romel Murphy, age 43, from Chicago, Illinois, received the prison term after a January 8, 2021 guilty plea to one count of wire fraud.
Information from a plea agreement and at sentencing showed that Murphy operated a talent booking agency that ostensibly booked artists for performances at concert venues around the United States. From about November 2017 through March 2019, Murphy used his business to induce potential clients to send him funds to secure artists’ performances at concerts. For instance, Murphy sent signed contracts to victims that appeared to have come from the artists. In fact, Murphy had drafted and signed the contracts himself. The victim would sign the contracts and wire deposit funds to Murphy. Murphy did not send the money to the artists and converted the funds to his own use, including gambling. As the concert dates approached and the victims had advertised the concerts, the victims would discover that the artists had not received any funds, frequently through communications from the artists’ actual representatives. In total, Murphy defrauded his victims out of more than $410,000. Murphy had three prior convictions for federal fraud-related offenses. He committed two of those offenses while on federal supervised release.
Murphy was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Murphy was sentenced to 77 months’ imprisonment. He was ordered to make $414,433.23 in restitution to the victims of his offense. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Murphy 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 Kyndra Lundquist and investigated by the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-0006.
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Charlotte Tax Preparer Is Sentenced to More than Five Years for $3 Million Tax FraudRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad Jr. sentenced Andrivia Wells, 54, of Charlotte, today to 70 months in prison for tax fraud, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Wells, who also goes by the names Tina Smith, Tina Harris, Andrivia Smith, and Andrivia Harris, was also ordered to serve one year under court supervision and to pay $3,373,595 as restitution.
Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI), Charlotte Field Office, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, beginning in at least 2011 and continuing through June 2019, Wells owned and operated Rush Tax Service, a return preparation business with multiple locations in Charlotte. Between 2013 and 2017, Wells prepared, or caused to be prepared, more than 6,000 tax returns that falsely claimed more than $3 million in refunds. Wells and Rush Tax Service received over $1.2 million in fees from her clients. The tax preparation fees were taken directly from the clients’ tax refunds and in many cases the clients were unaware of how much they were being charged, which was frequently more than $500.
Court records also show that Wells prepared income tax returns for clients for 2013 through 2018 that claimed false filing statuses, false American Opportunity and education credits, and false fuel tax credits, among others, in order to inflate refunds paid by the IRS. In addition to filing fraudulent income tax returns for her clients, Wells falsified her own income tax returns by underreporting the fees she earned in her tax preparation business for tax years 2014, 2015, 2016, and 2017, and in 2018, she failed to file any tax return with the IRS. In addition, her 2012 through 2017 tax returns also falsely claimed American Opportunity credits and fuel tax credits, and the incorrect filing status.
On May 17, 2017, after being notified she was the subject of a criminal investigation and after being served a summons for records of Rush Tax Service, a fire was intentionally set at Rush Tax Service’s Beatties Ford Road location. The fire destroyed client files, financial records, and computer hardware. Subsequently, a grand jury subpoena was served on Rush Tax Service for records. It was at a February 2019 grand jury appearance that the government was first alerted to the May 2017 fire. After the indictment was returned on June 20, 2019, Wells was arrested and detained. On June 30, 2019, a second fire was intentionally set destroying Rush Tax Service documents that were responsive to the grand jury subpoena. At today’s sentencing, the Court found that Wells obstructed the administration of justice with respect to the investigation and prosecution of the offense and stated that this was “one fire too many.” As a result, the Court also found that Wells did not accept responsibility for her crimes.
In announcing today’s sentence, Judge Conrad said Wells “showed a profound disrespect for the law” and that “the tax structure breaks down when taxpayers and tax preparers” file false tax returns.
Wells pleaded guilty to aiding and assisting in the filing of false tax returns and filing a false tax return.
Acting U.S. Attorney Stetzer commended IRS-CI for their investigation of the case. Assistant U.S. Attorney Caryn Finley with the U.S. Attorney’s Office in Charlotte prosecuted the case.
Captain of Vessel is Sentenced to Federal Prison for Smuggling $287,660 in U.S. Currency into St. Thomas Following High-Speed Chase and Apprehension Near Savana IslandRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Arioc Diaz Melendez, 28, from Puerto Rico, was sentenced today to 30 months in prison for concealing $287,660 in U.S. currency while onboard a vessel outfitted for smuggling.
According to court documents, Arioc Diaz Melendez was the captain of a vessel that was traveling without navigation lights at approximately 2:00 A.M. on September 30, 2019 north of Savana Island, U.S. Virgin Islands. Customs and Border Protection (CBP) Marine Units identified the vessel and pulled their vessel alongside the 24-foot yola-type vessel that was operating without lights. CBP agents activated their police blue lights and discharged a flare to convince the other vessel to yield.
When CBP agents attempted to initiate a stop, the other vessel did not yield but instead increased speed. The CBP agents shot one round into one of the engines of the other vessel at which point the vessel decreased speed and stopped. Agents observed Arioc Diaz Melendez speaking to the passenger of the vessel, identified as co-defendant Jose C. Diaz Melendez, at which point Jose C. Diaz Melendez threw a duffel bag overboard. The bag was recovered by CBP agents and later found to contain $287,660.00 in U.S. currency and a Glock firearm. After CBP agents disabled one of the boat’s motor, they boarded the vessel, and apprehended the captain, Arioc Diaz Melendez, and the passenger, Jose C. Diaz Melendez, of the vessel.
Homeland Security Investigations (HSI) and (CBP) investigated the case. Assistant U.S. Attorney Juan Albino prosecuted the case.
Bridgeport Marina Owner Who Illegally Scuttled Abandoned Vessels in Long Island Sound is SentencedRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOHN MAGNESS, 72, of Bristol, Maine, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to two years of probation and ordered to pay a $45,000 fine for scuttling several sailboats and motorboats between the Black Rock Harbor and the Pennfield Reef Lighthouse in Long Island Sound. Judge Underhill also ordered Magness to perform 50 hours of community service while on supervised release.
According to court documents and statements made in court, Magness, formerly of Southbury, Connecticut, was the owner of Bluefish Cove Marina in Bridgeport. While preparing to sell the property in 2018, Magness and Peter Albrecht, who worked at the marina, engaged Carlos Santos to sink several abandoned vessels in the Long Island Sound without a permit. Magness agreed to forgive Santos’ unpaid dockage fees in exchange for his help sinking the vessels. Investigators identified as least five vessels as having been scuttled at Magness’ request between October 2018 and April 2019.
On November 2, 2020, Magness pleaded guilty to one count of obstruction of navigable waters by sinking a vessel. Albrecht, of Norwalk, and Santos, of Westbrook, each previously pleaded guilty to the same charge and was sentenced to a one-year term of probation. Albrecht was ordered to pay a $1,000 fine and Santos was ordered to pay a $500 fine.
This matter was investigated by the U.S. Coast Guard Investigative Service and prosecuted by Assistant U.S. Attorney Lauren C. Clark.
Bridgeport Gang Member Admits Murder, Role in Courthouse Shooting, Other Violent ActsRead the Press Release
TYIESE WARREN, also known as “Loose Screw,” 21, of Bridgeport, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a racketeering offense stemming from a murder and other violent crimes he committed as a member of a Bridgeport gang.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Warren has been a member of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport whose members sold narcotics, laundered narcotics proceeds, committed acts of violence against rival gang members, robbed drug dealers, stole cars from inside and outside Connecticut and used them to commit crimes, and tampered with witnesses who might testify against them. From approximately 2017 until August 2020, O.N.E. members were aligned with the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
In pleading guilty, Warren admitted that on December 8, 2019, he and others shot and killed Ty’Quess Moore, a member or associate of the East End/P.T. Barnum gang alliance.
Warren also helped plan the retaliation shootings of East End gang members and associates in a brazen afternoon shooting in front of a Bridgeport courthouse. At 12:11 p.m. on January 27, 2020, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. One victim was shot in the side of his chest and was left paralyzed and a second victim sustained multiple gunshot wounds to his back, shoulder and wrist. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
Warren also admitted that he participated in gang-related drug trafficking.
Further, on March 25, 2020, Warren and an accomplice stole a car that was in front of the Citgo 6M Service Station and Quik Mart located at 2000 Barnum Avenue in Stratford. During the theft, they dragged the car’s driver, who was trying to stop the theft and was hanging onto the car, several hundred yards before he let go. Warren and an accomplice then engaged in a carjacking involving a Toyota Corolla in Bridgeport, holding the owner at gunpoint and ultimately driving away in the car. Minutes later, Warren and an accomplice committed a gunpoint robbery of the Citgo in Stratford, taking cash from the store and a cellphone from a store employee. Stratford Police arrested Warren later that night after he crashed another stolen car he was driving on an I-95 on-ramp and then ran from police.
Warren pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity. Judge Dooley scheduled sentencing for January 21, 2022, at which time Warren faces a maximum term of imprisonment of life.
Warren has been detained since March 25, 2020.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Stratford and Naugatuck Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle, Karen L. Peck and Stephanie T. Levick.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Atlanta pharmacy to pay $4.6 million to settle False Claims Act allegations regarding compound medicationsRead the Press Release
ATLANTA – Curant, Inc., which owns pharmacies in Smyrna, Georgia and St. Petersburg, Florida, along with its owners and related entities, agreed to pay $4.6 million to resolve allegations that they violated the False Claims Act by, among other things, charging the government far higher prices than the “usual and customary” prices charged to other patients.
“Pharmacies cannot overcharge government healthcare programs while offering cheaper prices to others, in violation of their payor agreements,” said Acting U.S. Attorney Kurt Erskine. “Such actions undermine efforts to protect government healthcare plans and keep costs lower.”
“The FBI is committed to protecting the health and safety of the American taxpayer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Healthcare providers that take shortcuts to increase their financial bottom line must be held accountable for improper and illegal billings that increase the cost of medical care.”
“This settlement serves as a warning to those companies and individuals who seek to take advantage of the Department of Defense (DoD) health care program,” stated Special Agent in Charge Cynthia A. Bruce of the DoD, Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS and our investigative partners are committed to fully investigating allegations of fraud, waste and abuse which jeopardize our military families’ precious healthcare resources.”
Curant Health Georgia LLC and Curant Health Florida LLC, which are owned by Patrick Dunham, Scott Zepp, Marc O’Connor, and Pankajkumar Patel (collectively “Curant”), dispensed compound pain creams and scar creams to TRICARE beneficiaries. TRICARE provides health insurance to members of the military and their families. In order to keep costs down, TRICARE prohibits pharmacies from charging more than their “usual and customary” price, which is defined as the retail price of the medication in a cash transaction. Despite this prohibition, the government alleges that between 2013 and 2015, Curant charged TRICARE a much higher price for its compound creams than it offered to its cash-paying patients.
The government further alleges that, between 2013 and 2015, Curant paid kickbacks to a third-party marketer to arrange for doctors to send prescriptions to Curant, it waived patient copayments in an effort to drive up its sales, it submitted claims to TRICARE for compound creams that were not medically necessary, and it failed to return overpayments that it had received from TRICARE once it learned of them.
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Dennis Long, a former pharmacist at Curant’s Georgia pharmacy, under the qui tam, or whistleblower provisions, of the False Claims Act. United States ex rel. Long v. Curant Health Georgia, LLC, et al., Civil Action No. 1:19-CV-3954-AT. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. Mr. Long will receive $805,000 from the settlement. Curant will also pay his attorney’s fees.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Defense Criminal Investigative Service, and the FBI.
The civil settlement was reached by Assistant U.S. Attorney Anthony DeCinque.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Agents Arrest 17 People in Large-Scale Multi-State Drug Trafficking Ring Involving Fentanyl, Heroin, Crystal Methamphetamine and FirearmsRead the Press Release
ST. LOUIS – This week the Drug Enforcement Administration, United States Marshals Service, and United States Postal Inspection Service arrested 17 people in Missouri, Arizona, California, and Mexico linked to an organized multi-state drug trafficking conspiracy.
According to the previously sealed sixteen count indictment, returned on October 13, 2021, this was a long-running drug distribution conspiracy operating in the Eastern District of Missouri and with ties to California, Arizona, and Texas. According to a court document, law enforcement officers seized items including: (1) approximately 50 pounds of fentanyl; (2) 500 pounds of methamphetamine; (3) 50 firearms; and (4) more than $400,000 in drug proceeds. The conspiracy included the mailing and shipping of packages containing large amounts of the illegal drugs to be distributed in the St. Louis area and other cities in the United States. Three defendants are also charged with firearms violations. Among the defendants indicted in this case are:
Stephen Griffin: M, St. Louis, 27
Kenny Thomas: M, St. Louis, arrested in Mexico, 38
Raymundo Deleon: M, in custody in Los Angeles, 40
Kyanna Canales: F, arrested in Phoenix, 19
Ariel Navarez-Gonzalez: M, arrested in Phoenix, 20
Troy Mills: M, St. Louis, 30
Arieawn Dillon: M, St. Louis, 26
Daveon Barnes: M, St. Louis, 27
Dalvin Wiley: M, St. Louis, 29
Crystal Miller: F, St. Louis, 27
Latoya Wilson: F, St. Louis, 40
Steven Hilliard: M, St. Louis, 30
Andrew Prout: M, in custody in Missouri, 28
Ariel Randall: F, St. Louis, 26
Jessica Alvarez: F, arrested in Los Angeles, 40
Larry Martinez-Soto: M, arrested in Phoenix, 24
Sanela Demirovic: F, St. Louis, 31
“The individuals arrested earlier this week for their involvement in drug related crimes and activities provide an example of the threat the drug industry imposes in our communities,” DEA St. Louis Division Assistant Special Agent in Charge Colin Dickey said. “The drug cell we dismantled with operations in various states in the United States and Mexico has no regard for the people around them and will take whatever actions necessary to protect their profit and themselves. This fact is evident by the significant amount of drugs, weapons and money seized in the multi-state, multi-agency operation. It’s important for everyone to keep in mind that no city is immune from the threat of drugs. The only way we can keep our streets safe is by working together to educate those around us on the dangers of these illegal substances and the threat associated with them.”
For the past three years, the U.S. Postal Inspection Service and its law enforcement partners have tenaciously investigated this multi-state drug trafficking network operated largely by violent gangs around the country,” stated Inspector in Charge William Hedrick who heads the Postal Inspection Service’s Chicago Division, which includes the St. Louis field office. “The resulting indictment and arrests should serve as a warning to all criminals who see fit to utilize the U.S. Mail to conduct their illegal drug business.”
John Jordan, the United States Marshal for the Eastern District of Missouri, provided the following statement: The United States Marshals Service serves as the United States Government’s primary fugitive investigation and apprehension agency. Empowered through federal law, the USMS also serves as a charter agency within the Organized Crime Drug Enforcement Task Forces. The focus of the USMS within the OCDETF program is to “destabilize and disrupt the most serious crime organizations through joint and collaborative fugitive investigations.” In this case, USMS personnel were contacted by our partner agencies, conducted fugitive investigations, and coordinated arrests across several metropolitan areas and with the assistance of multiple USMS investigative assets. The USMS remains committed to the OCDETF goal of dismantling dangerous national-level drug trafficking organizations.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach to combat transnational organized crime. The OCDETF program facilitates complex, joint operations by focusing its partner agencies on priority targets, by managing and coordinating multi-agency efforts, and by leveraging intelligence across multiple investigative platforms. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
This case was investigated by the Drug Enforcement Administration, United States Postal Inspection Service, United States Marshals Service with assistance from officers at the following police departments: Bellefontaine Neighbors, Shrewsbury, St. Louis Metropolitan, St. Louis County, St. Charles County, Ballwin and Maryland Heights. This investigation was also supported by DEA’s Special Operations Division under Operation Isolated Culture.
Additional Carjacking and Firearm Charges Added to Federal Indictment Accusing Chicago Man of Murdering Rideshare DriverRead the Press Release
CHICAGO — A newly filed federal indictment adds additional carjacking and firearm charges against a Chicago man accused of murdering a rideshare driver during a carjacking earlier this year.
EDMOND HARRIS, 18, was initially charged with carjacking a Lexus GS sedan and fatally shooting the driver, rideshare worker Javier Ramos, on March 23, 2021, in the North Lawndale neighborhood of Chicago. The superseding indictment renews that charge and adds additional carjacking and attempting carjacking charges against Harris.
JOSHUA WALKER, 21, of Chicago, is also charged in the new indictment with carjacking and firearm offenses.
According to the new charges, Harris and Walker conspired to carjack a Mitsubishi Outlander sport-utility vehicle in the Loop neighborhood of Chicago, and together committed that carjacking on Jan. 20, 2021. The new indictment alleges that Harris on the same day attempted to carjack another vehicle – a Nissan Altima sedan – in west suburban Oak Park.
In addition to the carjacking offenses, the new indictment charges Harris and Walker with federal firearm violations that, if convicted, carry mandatory minimum sentences in federal prison.
Harris and Walker are both in federal custody. Walker was arraigned last week in federal court in Chicago and pleaded not guilty to the charges. He is scheduled to appear for a detention hearing Thursday at 11:00 a.m. before U.S. Magistrate Judge Jeffrey T. Gilbert.
Harris will be arraigned on the superseding indictment Friday at 9:30 a.m. before U.S. District Judge Mary M. Rowland.
The superseding indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Kristen de Tineo, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; David Brown, Superintendent of the Chicago Police Department; and LaDon Reynolds, Chief of the Oak Park Police Department. The government is represented by Assistant U.S. Attorneys Michelle Kramer and Paige Nutini.
The charges against Harris carry a mandatory minimum sentence of 27 years in federal prison and a maximum of death. The charges against Walker carry a mandatory minimum sentence of seven years in federal prison and a maximum of life.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal statutes and the advisory U.S. Sentencing Guidelines.
Acting U.S. Attorney Announces Office Collects Nearly $11.4 MillionRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr., announced today that the office’s Financial Litigation Program collected more than $10.94 million in criminal restitution, fines, and assessments and in civil debts for the fiscal year that ended September 30, 2021. In some cases, the U.S. Attorney’s Office worked in conjunction with litigating components of the U.S. Department of Justice. Of the total collected, approximately $5 million were criminal restitution, fines, and/or assessments, and approximately $5.9 million were civil debts. In addition, the Asset Forfeiture Unit deposited to the Asset Forfeiture Fund approximately $452,963 in proceeds and instruments of crime in criminal and civil forfeiture actions.
“This office’s collection and asset forfeiture attorneys, paralegals, analysts, and fiscal agents is second to none. They come to work every day to recover money for you from those who have hurt victims and attempted to profit from their nefarious deeds,” said Mr. Gonzalez. “We should all be proud of the outstanding work these dedicated public servants have done over the past year. These results show they served this office and the taxpayers of Idaho so very well.”
Victims of crime receive funds collected in criminal restitution cases. In fiscal year 2021, the U.S. Attorney’s Office, through the Financial Litigation Program, collected over $4.6 million in criminal restitution that was or will be distributed to victims of crime. Other criminal collections such as fines go into the Crime Victims Fund. From there, funds are distributed to the Idaho Crime Victims Compensation Program, the Idaho Council on Domestic Violence and Victim Assistance, and similar programs across the country. Money recovered from the illegal proceeds of criminal activity through forfeiture is returned to victims, used to offset the costs of operating federal prisons, and shared with local, state, and federal law enforcement agencies to help fight crime. Other recoveries go back to agency creditors.
During the fiscal year, some notable criminal restitution collections include $3 million from a defendant who committed wire fraud, almost $250,000 from a defendant who embezzled from their employer, $100,000 from a defendant who also embezzled funds, and almost $100,000 from a business for violating the Clean Water Act.
Forfeitures valued at approximately $452,963, included currency, vehicles, and other property related to trafficking in controlled substances, fraud, child exploitation, and other serious crimes. These included $191,841 from a defendant who embezzled from his employer and invested the proceeds in real estate and two $100,000 payments from defendants convicted of drug crimes. In some cases, the United States shared, or will share, seized money and property with local investigating agencies. In victim cases, the U.S. Attorney’s Office works to direct proceeds of forfeiture to crime victims.
As for civil debts and penalties, the Financial Litigation Program collects civil penalties for violations of regulations involving, among other things, controlled substances, environmental protection, damage to federal property, and procurement fraud. It also collects civil debts for defaulted loans.
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Friday 22 October 2021
Woman Found Guilty for Her Role in Dothan Truck Bombing Targeting A Former BoyfriendRead the Press Release
Montgomery, Ala. – On Thursday, October 21, 2021, Ashley Nicole Haydt, 36, from Taylor, Alabama, was convicted by a federal jury for her role in a Dothan truck bombing that targeted a former boyfriend and father to one of her children, announced Acting U.S. Attorney Sandra J. Stewart.
According to court records and evidence presented at trial, in 2017, Haydt worked at Wiregrass Rehabilitation Center in Dothan with Sylvio Joseph King. Testimony presented at trial showed that the two became friends and that Haydt began to tell King about her troubled relationship with her long-time boyfriend and father of her unborn child. Haydt was upset that her boyfriend would not agree to marry her and that he ultimately ended their relationship. In June 2017, the child was born and, soon after, the ex-boyfriend filed for custody. The jury saw numerous texts from Haydt to King during this time where she villainized her ex-boyfriend. She repeatedly expressed concern over losing custody of her infant child and how her life would be better if the ex-boyfriend were out of the picture. Those texts continued for several weeks until, at the suggestion of Haydt, they began using an alternate app to communicate called Snapchat. One of the principal features of Snapchat is that pictures and messages are usually only available for a short time before they become inaccessible to their recipients.
Based on the ongoing encouragement from Haydt to eliminate her ex, King began to purchase materials needed to construct a pipe bomb. Haydt provided King with her ex-boyfriend’s address and in the early morning hours of October 23, 2017, King placed the explosive device in the ex’s work truck that was parked at his home. King detonated the bomb while the victim was driving to work and shrapnel from the device was blasted into the victim’s back and hip area. Thanks to the actions of a passing motorist and first responders, the victim survived. After the explosion, King sent Haydt a message that read, “boom, I felt that from 120 feet away.”
Law enforcement quickly became suspicious of Haydt’s involvement in the crime. Haydt gave numerous conflicting statements during multiple interviews and when agents checked her cell phone, they discovered she had deleted text messages she exchanged with King the day of the bombing and before. She had also deleted the Snapchat app. However, significant evidence of their prior communications remained on King’s phone and he also testified during the trial confirming Haydt’s involvement. After a four-day trial, the jury found Haydt guilty of conspiracy, malicious use of an explosive, and concealing the commission of a felony. King had previously pleaded guilty to conspiracy and malicious use of an explosive device in October of last year. A sentencing hearing will be scheduled in the next few months for each of them. At that hearing, they will be facing a minimum of 7 years, and a maximum of 40 years, in prison.
Acting U.S. Attorney Stewart would like to thank the following agencies for their diligent work on this case: The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Houston County Sheriff’s Office, the Dothan Police Department, and the Alabama Law Enforcement Agency (ALEA). The Federal Bureau of Investigation (FBI) and the Alabama Fire Marshal’s Office also assisted. Assistant United States Attorneys Brandon Bates and Chelsea Phillips prosecuted the case.
Watertown Man Sentenced to 155 Months for Drug and Firearms ConvictionsRead the Press Release
SYRACUSE, NEW YORK - Daniel J. Borg, age 43, of Watertown, New York, was sentenced today to serve 155 months (12 years and 11 months) in federal prison for his convictions for possession of controlled substances (heroin/fentanyl and eutylone) with intent to distribute, possession of a firearm in furtherance of a drug trafficking crime, possession of a sawed-off shotgun, and possession of a firearm by a convicted felon, announced United States Attorney Carla B. Freedman, John B. DeVito, Special Agent in Charge of the New York Field Division of the United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and Jefferson County District Attorney Kristyna Mills.
As part of his previous guilty plea, Daniel J. Borg admitted that on January 21, 2021 he was in possession of 305 grams of eutylone as well as 30 separate bags of a heroin/fentanyl mixture in an Audi automobile that he parked at a self-storage area in Watertown where he leased a unit. Detectives from the Metro-Jefferson Drug Task Force (Met-Jeff) surveilled Borg as he was about to enter his locked storage unit. After taking Borg into custody and recovering the drugs from the Audi, Met-Jeff Detectives obtained Borg’s consent to search his locked storage unit. Inside the storage unit Met-Jeff Detectives located a safe containing 500 separate small plastic bags, each holding a small quantity of a heroin/fentanyl mixture. Also recovered from the storage unit was a sawed-off .410-gauge shotgun illegally possessed by Borg, who was previously convicted of five (5) prior felony offenses.
In imposing sentence today, Senior District Judge Frederick J. Scullin, Jr. ordered Borg to serve 95 months for his possession with intent to distribute controlled substances, and a consecutive sentence of 60 months for his possession of the sawed-off shotgun in furtherance of a drug trafficking crime, with concurrent sentences for possession of the firearm as a convicted felon and possession of an unregistered short-barreled shotgun.
This case was investigated by United States Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Metro-Jefferson Drug Task Force, consisting of Detectives from the City of Watertown Police Department, Detectives from the Jefferson County Sheriff’s Office, Investigators from the Jefferson County District Attorney’s Office, Agents of the United States Border Patrol, and Special Agents from the United States Department of Homeland Security-Homeland Security Investigations (HSI), and was prosecuted by Assistant U.S. Attorney Richard Southwick.
Utica Man Pleads Guilty to Drug Trafficking ChargesRead the Press Release
SYRACUSE, NEW YORK – Anulfo Fernandez, age 42, of Utica, New York, pled guilty today to possessing and intending to distribute heroin in the Utica area in 2019, announced United States Attorney Carla B. Freedman and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Division.
As part of his guilty plea, Fernandez admitted that in 2019, he repeatedly sold heroin, and that those sales totaled more than one kilogram. Fernandez further admitted that he stored and packaged his drugs at a vacant apartment in Utica, and that on December 11, 2019, he had nearly 400 grams of heroin at that location, which he intended to sell. Sentencing is scheduled for March 1, 2022 in Syracuse. At sentencing, Fernandez faces a prison term of at least 5 and up to 40 years, a fine of up to $5 million, and a term of supervised release following incarceration of between 4 years and life.
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the DEA, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations, the New York State Police, the Oneida County Sheriff’s Office and the Utica Police Department, and is being prosecuted by Assistants U.S. Attorney Nicolas Commandeur and Matthew McCrobie.
Upshur County Man Sentenced to 14 Years in Federal Prison for Sex Offense Against A MinorRead the Press Release
BECKLEY, W.Va. – An Upshur County man was sentenced today to 168 months in federal prison for a sex crime against a minor.
George Albert Romer, Jr., 63, of Buckhannon, was convicted of attempted sex trafficking of a minor following a jury trial in June 2021. The evidence at trial revealed that on October 31, 2019, Romer began communicating via a dating application with a person he understood to a 15-year-old girl in Lewisburg, West Virginia. During the messages, Romer offered to pay the girl $100 to engage in sexual intercourse. On November 1, 2019, Romer drove from Buckhannon to Lewisburg and rented a hotel room in order to meet the minor. He was placed under arrest shortly thereafter.
Following his release from prison, Romer will be placed on supervised release for 15 years and will be required to register as a sex offender.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the FBI Child Exploitation and Human Trafficking Task Force. Assistant United States Attorneys Jennifer Rada Herrald and Courtney Cremeans handled the prosecution.
United States District Judge Frank W. Volk imposed the sentence.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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. 5:19-cr-00293.
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U.S. Attorney’s Office Announces Partnership with Justice Department’s New Initiative to Combat RedliningRead the Press Release
GREENSBORO, N.C. - The U.S. Attorney’s Office for the Middle District of North Carolina announces its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system,” said Attorney General Merrick B. Garland. “When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated. Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Even now, more than fifty years since the passage of the Fair Housing Act, our local communities continue to experience the effects of discriminatory housing policies and unequal access to credit and investment,” said Acting U.S. Attorney Hairston. “Our office is proud to partner with the Civil Rights Division to combat housing discrimination, and to ensure that financial institutions that operate in our District comply with their obligations under federal law.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The initiative will:
- Use U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
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U.S. Attorney’s Office Announces Election Hotline to Protect Voting RightsRead the Press Release
NEWARK, N.J. – In advance of New Jersey’s November 2, 2021 general election, Acting U.S. Attorney Rachael A. Honig announced today that the public may call the U.S. Attorney’s Office Election Hotline at 888-636-6596 to report threats against voters, threats against election workers, or any other activities that would interfere with a citizen’s right to vote. Early voting begins in New Jersey on Saturday, October 23, 2021 and continues through Sunday, October 31, 2021. The Election Hotline will be active from October 22, 2021 through November 3, 2021.
Federal law protects the rights of voters to vote without discrimination and free from acts designed to harass or intimidate them. Federal law also permits voters to have an accessible polling place and to mark their own ballot, or to be assisted by a person of their choice for reasons of disability, illiteracy, or limited English proficiency. As the Department of Justice reiterated when it launched the Task Force to Combat Threats against Election Workers, federal law also prohibits threats against election workers, administrators, officials, and others associated with the electoral process. The Department and its federal law enforcement partners will work with state and local officials to respond to complaints and to ensure that every voter is able to cast a ballot.
Acting U.S. Attorney Honig said, “We are committed to ensuring free and fair elections in New Jersey by protecting the right of every voter to access polling places and cast a ballot and the right of every election worker to work without harassment, threats, or intimidation. We encourage the public to reach out to our Office to report any threats, discrimination, or other concerns.”
In the case of a crime of violence or intimidation, please call 911 immediately. The public may report potential violations of federal voting rights laws at any time by calling the Civil Rights Hotline, 855- 281-3339, or by submitting an online complaint here.U.S. Attorney announces partnership with DOJ’s Combatting Redlining InitiativeRead the Press Release
COLUMBUS, Ohio – The U.S. Attorney’s Office for the Southern District of Ohio announced its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Redlining is not only harmful in our communities of color, but it is also illegal,” said Acting United States Attorney Vipal J. Patel. “I want to assure those living in the Southern District of Ohio that we will investigate and hold accountable those who are redlining our communities.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live.
The initiative will:
- Use U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.
- Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
- Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
- Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online.
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Two Former Medical Practice Employees Sentenced for Conspiring to Distribute AdderallRead the Press Release
BOSTON – Two former employees of a medical practice with locations in Framingham and Whitinsville were sentenced in federal court in Worcester in connection with a federal drug conspiracy involving Adderall.
Rene Ruliera, 54, of Southborough, was sentenced yesterday by U.S. District Court Judge Timothy S. Hillman to two years in prison and three years of supervised release. In August 2019, Ruliera pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and four counts of distributing and possessing with intent to distribute Adderall.
Meghan Giacomuzzi, 39, of Whitinsville, was sentenced today by Judge Hillman to one year and one day in prison and three years of supervised release. In February 2019, Giacomuzzi pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and six counts of distributing and dispensing Adderall.
Between March 2016 and February 2018, Ruliera and Giacomuzzi conspired with Leslie Caraceni M.D, to distribute Adderall, an amphetamine, for reasons other than for a legitimate medical purpose and not in the usual course of medical practice. Caraceni hired Ruliera and Giacomuzzi to work at her medical practice in Framingham and later in Whitinsville, and enlisted both in a conspiracy to sell and distribute Adderall to individuals who had not been medically examined or given a clinical diagnosis to warrant a prescription. Office visitors met with either Ruliera or Giacomuzzi, discussed their desired prescription, paid for their office visit and left with a signed prescription for Adderall. Office visits lasted just minutes and each such visit cost approximately $200, payable in cash or through a credit card or debit card. Caraceni collected the cash from the office or received funds through deposits to her bank account.
Caraceni provided Ruliera and Giacomuzzi with blank prescription pads and explained how to fill out prescriptions for sale. Electronic communications between Caraceni, Ruliera and Giacomuzzi documented Caraceni’s knowledge of the prescriptions written by Ruliera and Giacomuzzi, the number of office visitors seen in her absence and the profits resulting from their sale of prescriptions to those visitors. Between November 2015 and July 2018, records from the Massachusetts Prescription Monitoring Program show that well over 1,500 prescriptions for Adderall—amounting to over 110,000 pills—were filled in Massachusetts based on Caraceni’s prescriptions.
On Jan. 15, 2021, Caraceni was sentenced by Judge Hillman to seven years in prison and three years of supervised release after previously pleading guilty to one count of conspiracy to distribute and to possess with intent to distribute Adderall and three counts of distributing and dispensing Adderall.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Uxbridge Police Chief Marc Montminy; and Southborough Police Chief Jane Moran made the announcement. Assistant U.S. Attorney Craig Estes of Mendell’s Narcotics and Money Laundering Unit prosecuted both cases.
Twin Carroll County Sex Offenders Each Sentenced to 10 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Matthew Curtis and Tyler Curtis, ages 24, both of Hampstead, Maryland, each to 10 years in federal prison, followed by 18 years and 17 years of supervised release, respectively, for possession of child pornography. Judge Hollander ordered that, upon their release from prison, the defendants must continue to register as sex offenders in the places where they reside, where they are employees, and where they are students, under the Sex Offender Registration and Notification Act (SORNA).
The twin brothers were previously convicted of child pornography-related charges in 2017 within the Circuit Court of Carroll County. Specifically, Tyler Curtis was previously convicted of the promotion and distribution of child pornography and was subsequently required to register as a sex offender. Matthew Curtis was convicted of possession of child pornography and was sentenced to one year and six months in prison and three years’ probation. He then was required to register as a sex offender.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees, and Frederick County Sheriff Charles A. “Chuck” Jenkins.
“Thankfully, the Curtis brothers will spend the next decade in federal prison for their extensive and disturbing conduct.” stated United States Attorney for the District of Maryland, Erek L. Barron. “This office will continue to aggressively protect our children and relentlessly prosecute those who perpetuate child exploitation.”
According to their plea agreements, from 2019 to 2020, Tyler and Matthew Curtis downloaded, possessed, and distributed child pornography while on state probation for their previous convictions for child pornography related charges. Furthermore, Matthew Curtis used an internet-based messaging application to repeatedly share depictions of prepubescent minors engaging in sexually explicit conduct with other users of the application.
On March 5, 2020, the cloud-based service submitted a CyberTip to the National Center for Missing and Exploited Children. Specifically, the service reported that a user account had uploaded 22 files of suspected child pornography. Images included the sexual abuse of prepubescent children. The IP address used to login to the cloud-based application was assigned to the defendants’ Hampstead residence and the email address was an address used by Matthew Curtis.
The investigation revealed that within messaging chatrooms, Matthew Curtis frequently posed as the mother of an infant or toddler and discussed the sexual abuse of his purported children. Matthew Curtis also distributed images documenting the sexual abuse of what he claimed were his children. Matthew Curtis and other online users frequently discussed their sexual abuse of children and their desire to abuse Curtis’s purported children.
As stated in their plea agreements, on May 28, 2020, law enforcement executed a search warrant at the Curtis’s residence and seized electronic devices, including two of Matthew Curtis’s cell phones. A forensic review of Matthew’s cell phones revealed a total of 429 images and 129 videos of child pornography. Some of the images and videos depicted prepubescent minors and sado-masochistic conduct.
During an interview with law enforcement, Tyler Curtis falsely informed investigators that he had not viewed child pornography since his 2017 conviction and that he did not have a cell phone in his possession. As a result of the search warrant, law enforcement seized a cell phone that was hidden in the bottom of Tyler Curtis’s bedroom dresser.
A forensic review of Tyler Curtis’s hidden cell phone revealed artifacts associated with at least 13 different email addresses. Investigators also discovered 115 images and 137 videos of child pornography on Curtis’s cell phone. The sexually abusive material contained sado-masochistic content as well as images of prepubescent females engaged in sexual acts with adult men, including at least two videos that depicted the sexual abuse of an infant or toddler. A forensic review of Tyler Curtis’s file storage and hosting service account revealed that he uploaded 185 images and 10 videos of child pornography to the service.
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 Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron commended HSI, the Maryland State Police, the Carroll County Sheriff’s Office and the Frederick County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul A. Riley, who prosecuted the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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The U.S. Attorney’s Office for the District of New Jersey Announces Its Partnership in the Justice Department’s Combatting Redlining InitiativeRead the Press Release
NEWARK –The U.S. Attorney’s Office for the District of New Jersey announced its partnership with the Justice Department’s Civil Rights Division as it launches the department’s new Combatting Redlining Initiative.
Redlining is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race or national origin of the people who live in those communities. The new Initiative represents the department’s most aggressive and coordinated enforcement effort to address redlining, which is prohibited by the Fair Housing Act and the Equal Credit Opportunity Act.
“Lending discrimination runs counter to fundamental promises of our economic system. When people are denied credit simply because of their race or national origin, their ability to share in our nation’s prosperity is all but eliminated,” said Attorney General Garland. “Today, we are committing ourselves to addressing modern-day redlining by making far more robust use of our fair lending authorities. We will spare no resource to ensure that federal fair lending laws are vigorously enforced and that financial institutions provide equal opportunity for every American to obtain credit.”
“Redlining is a form of discrimination that has devastating consequences for communities of color.” said Acting U.S. Attorney Rachael A. Honig. “By systemically and unlawfully denying credit to those in minority neighborhoods, a bank that redlines causes those neighborhoods to deteriorate by unfairly denying residents opportunities to become a homeowner. This office has vigorously enforced the Fair Housing Act and Equal Credit Opportunity Act to combat the practice of redlining. In 2015, together with the Justice Department’s Civil Rights Division and the Consumer Financial Protection Bureau, we filed suit to obtain a consent order requiring Hudson City Savings Bank to end its pattern or practice of redlining predominantly Black and Hispanic neighborhoods. The consent order, which represented the Justice Department’s largest residential mortgage redlining settlement in its history, required the bank to make systemic changes to its practices and pay $25 million in loan subsidies to individuals in the redlined neighborhoods. We are pleased that, earlier this year, the bank satisfied its obligations under the schedule set forth in the consent order. This office enthusiastically joins in the Justice Department’s Combatting Redlining Initiative and will continue its work to end redlining in the District of New Jersey.”
Redlining, a practice institutionalized by the federal government during the New Deal era and implemented then and now by private lenders, has had a lasting negative impact. For American families, homeownership remains the principal means of building wealth, and the deprivation of investment in and access to mortgage lending services for communities of color have contributed to families of color persistently lagging behind in homeownership rates and net worth compared to white families. The gap in homeownership rates between white and Black families is larger today than it was in 1960, before the passage of the Fair Housing Act of 1968.
This Initiative, which will be led by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorney’s Offices, will build on the longstanding work by the Division that seeks to make mortgage credit and homeownership accessible to all Americans on the same terms, regardless of race or national origin and regardless of the neighborhood where they live. The U.S. Attorney’s Office for the District of New Jersey’s Civil Rights Unit will continue its active partnership with the Civil Rights Division as it joins in this initiative. The initiative will:
• Utilize U.S. Attorneys’ Offices as force multipliers to ensure that fair lending enforcement is informed by local expertise on housing markets and the credit needs of local communities of color.• Expand the department’s analyses of potential redlining to both depository and non-depository institutions. Non-depository lenders are not traditional banks and do not provide typical banking services, but engage in mortgage lending and now make the majority of mortgages in this country.
• Strengthen our partnership with financial regulatory agencies such as to ensure the identification and referrals of fair lending violations to the Department of Justice.
• Increase coordination with State Attorneys General on potential fair lending violations.
Individuals may report lending discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Complaints of discrimination may also be made by contacting the United States Attorney’s Office for the District of New Jersey at (855) 281-3339 or by filing a complaint online.
Texas Pain Management Physicians Agree to Pay $3.9 Million to Resolve Allegations Relating to Unnecessary Urine Drug TestingRead the Press Release
Two Texas physicians, Robert Wills and Brannon Frank, have agreed to pay $3.9 million to resolve allegations that they violated the False Claims Act by knowingly billing Medicare, Medicaid and TRICARE for medically unnecessary urine drug testing.
The settlements with Wills and Frank resolve allegations that the physicians, formerly co-owners of now-defunct Austin Pain Associates located in Austin, Texas, knowingly caused the submission of false claims to federal healthcare programs by ordering excessive and unnecessary urine drug testing for patients without any individualized assessment of clinical need. Starting in 2011, all urine drug tests ordered by Austin Pain Associates’ physicians, including Wills and Frank, were performed at Austin Pain Associates’ in-house laboratory. The United States alleged that Wills and Frank drafted the testing protocols that resulted in unnecessary tests, were aware that the in-house laboratory was conducting an excessive number of tests on urine samples, and that Austin Pain Associates could not remain profitable without the income generated from unnecessary testing. Pursuant to their respective settlement agreements, Wills has agreed to pay $2,100,000 to settle these allegations and Frank has agreed to pay $1,800,000.
“The provision of medical services should be based on a patient’s medical needs, not on a physician’s desire to increase profits,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is committed to taking appropriate action to safeguard the integrity of federal healthcare programs and the welfare of their beneficiaries.”
“Physicians who bill taxpayer-funded health programs for expensive and medically unnecessary drug tests increase the cost of healthcare for all of us,” said U.S. Attorney Ashely C. Hoff for the Western District of Texas. “We will continue to vigorously investigate and prosecute allegations of false claims submitted to Medicare, Medicaid, TRICARE and any other government health program.”
“Physicians who perform medically unnecessary and excessive tests exploit patients and taxpayer-funded healthcare programs,” said Special Agent in Charge Miranda Bennett for the Department of Health and Human Services Office of Inspector General (HHS OIG). “With our law enforcement partners, we will continue to hold accountable individuals who engage in false claims practices.”
"Today's outcome demonstrates the commitment of the Department of Defense Office of the Inspector General, Defense Criminal Investigative Service (DCIS), in coordination with our law enforcement partners to diligently investigate allegations of fraud committed against TRICARE," said Special Agent in Charge Michael Mentavlos of the DCIS Southwest Field Office. "We will continue to hold accountable individuals who obtain taxpayer funds through false and fraudulent means."
Medicaid is funded jointly by the states and the federal government. The State of Texas paid for a portion of the Medicaid claims at issue and will receive a total of approximately $260,000 from the settlements with Wills and Frank.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Jennifer Nuessner and Robert Hoffman, former employees of Austin Pain Associates. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. As part of the resolutions with Frank and Wills, the two whistleblowers will receive a total of approximately $618,000 from the federal share of the settlements. The qui tam case is captioned United States ex rel. Nuessner, et al. v. Austin Pain Associates, LLC, et al., 5:16-CV-1125-FB (W.D. Tex.).
The resolutions obtained in this matter were the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Texas, HHS OIG and the Defense Criminal Investigative Service.
The matter was handled by Trial Attorney Jonathan Thrope of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Thomas Parnham for the Western District of Texas.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Tallahassee Man Sentenced to 24 Years in Prison for Sexual Exploitation of Children and Child Pornography OffensesRead the Press Release
TALLAHASSEE, FLORIDA – Aquiles Alexander Delaosa, 37, of Tallahassee, Florida, has been sentenced to 288 months in federal prison after pleading guilty to sexual exploitation of children, distribution of child pornography, receipt of child pornography, and transferring obscene material to a person under 16. The sentence, which was handed down following the defendant’s guilty plea in June, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“There is no greater charge than the protection of our children,” stated Acting U.S. Attorney Coody. “This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who engage in such heinous conduct.”
For over eight years – between July 26, 2012, and January 27, 2021 – Delaosa knowingly and intentionally used, induced, and enticed a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct. During this time, he also received and distributed material containing child pornography. Delaosa also transferred, by means of interstate commerce, obscene matter to an individual who had not attained the age of 16 years.
“Protecting our innocent children is one of the most important missions we have,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “Thanks to HSI special agents and the Leon County Sheriff’s Office, this predator is being held accountable for his crimes. The Defendant’s 24-year prison sentence will be followed by supervised release for the rest of his life.”
Delaosa’s prison sentence will be followed by a lifetime of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions. Additionally, Delaosa was also ordered to pay a $100,000 fine, a $35,000 assessment pursuant to the Vicky and Andy Child Pornography Victim Assistance Act of 2018 (“AVAA”), and restitution to the victims.
This case resulted from a joint investigation by the Leon County Sheriff’s Office and Homeland Security Investigations. Assistant United States Attorney Justin M. Keen prosecuted the case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tallahassee Man Sentenced to 180 Months Federal Prison for Enticing A Minor to Engage in ProstitutionRead the Press Release
TALLAHASSEE, FLORIDA – Michael Jarcord, 52, of Tallahassee, Florida, was sentenced to 180 months federal prison for coercing or enticing a minor to engage in prostitution. The sentence was announced today by Jason Coody, Acting United States Attorney for the Northern District of Florida.
Jarcord’s sentence was the result of a federal jury returning a guilty verdict on June 29, 2021, finding Jarcord guilty on the sole count of coercing or enticing a minor to engage in prostitution.
“This sentence is yet another example of the unwavering commitment to the protection of our most vulnerable and should serve as a significant deterrent to those who would attempt to harm them,” said Acting U.S. Attorney Coody. “Through concerted efforts like Operation Stolen Innocence we will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
“We are grateful to see justice prevail for the victim in this case,” said Tallahassee Police Chief Lawrence Revell. Jarcord’s sentencing is a testament to the judicial systems’ tireless efforts to hold accountable those who break the law and reiterate to the community that human trafficking will not be tolerated.”
“Another child predator is now behind bars thanks to the law enforcement partnership between HSI and the Tallahassee Police Department,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
Jarcord’s prison sentence will be followed by 10 years of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
The conviction was the result of a collaborative investigation by the Tallahassee Police Department and Homeland Security Investigations as part of Operation Stolen Innocence, a multi-agency coordinated effort by the United States Marshals Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of the State Attorney, Second Judicial Circuit to combat human trafficking in the Tallahassee area. Assistant United States Attorney Michelle Spaven prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Statement of U.S. Attorney Damian Williams on Guilty Verdicts Against Lev Parnas and Andrey KukushkinRead the Press Release
“A unanimous federal jury has found that Lev Parnas and Andrey Kukushkin conspired to manipulate the United States political system for their own financial gain. In order to gain influence with American politicians and candidates, they illegally funneled foreign money into the 2018 midterm elections with an eye toward making huge profits in the cannabis business. Campaign finance laws are designed to protect the integrity of our free and fair elections – unencumbered by foreign interests or influence – and safeguarding those laws is essential to preserving the freedoms that Americans hold sacred. I commend the career prosecutors of this Office’s Public Corruption Unit whose outstanding work has helped bring to justice those who sought to illicitly influence our government.”
Springfield Man Sentenced to Ten Years in Prison for Attempted Enticement of a MinorRead the Press Release
SPRINGFIELD, Ill. – A Springfield, Illinois, man, Rafael Mercado Berrios, 42, of the 700 block of South Durkin Drive, was sentenced to ten years in prison, to be followed by ten years of supervised release, on October 20, 2021, for attempted enticement of a minor and use of interstate facilities to attempt to transmit information about a minor.
Mercado Berrios was convicted in June 2021 following a jury trial in which the United States presented evidence establishing that Mercado Berrios had used a mobile application to arrange to meet a person he believed to be a 15-year-old minor for sexual activity.
At Mercado Berrios’s sentencing hearing, U.S. District Court Judge Sue E. Myerscough found that he had also attempted to obstruct justice by requesting that a former girlfriend delete information from his computer and directing her not to speak to law enforcement agencies, as well as telling her what to say if she did choose to speak.
The statutory penalty for attempted enticement of a minor is ten years to life imprisonment. The statutory penalty for use of interstate facilities to attempt to transmit information about a minor is not more than five years imprisonment. Each count also carries a fine of up to $250,000.
The prosecution was the result of an investigation by the Federal Bureau of Investigation, Springfield Office, with the assistance of the Sangamon County Sheriff’s Office; U.S. Immigration and Customs Enforcement Homeland Security Investigations; the Springfield Police Department; and the Illinois State Police. Assistant U.S. Attorneys Tanner K. Jacobs and Gregory K. Harris represented the government in the prosecution.
The case against Mercado Berrios was brought as part of Project Safe Childhood, a Department of Justice initiative led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
South Florida Residents Convicted of Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
Miami, Florida – A federal jury convicted a pair of Florida residents yesterday for their roles in an illegal exports scheme. According to court documents and evidence presented at trial, Peter Sotis, 57, of Delray Beach, and Emilie Voissem, 45, of Sunrise, participated in a scheme to cause the illegal export of rebreather diving equipment to Libya in August 2016.
Rebreathers enable a diver to operate undetected for long periods of time underwater by producing little to no bubbles and by efficiently re-circulating the diver’s own breath after replacing its carbon dioxide with oxygen. Because of these enhanced capabilities, rebreathers have a dual use, with both civilian and military applications, and are specifically included on the Commerce Control List, which is the list of dual use items that are export controlled and licensed by the U.S. Department of Commerce, Bureau of Industry and Security (DOC-BIS). Such restricted items require a DOC-BIS license if the rebreathers are to be exported to any countries with national security concerns, such as Libya.
The defendants were warned that it was illegal to export the items to Libya without a DOC-BIS license and they willfully attempted to export those items after receiving an instruction from a Department of Commerce special agent that such items were detained and not to be exported while a license determination was pending. The exhibits and testimony at trial showed that the defendants lied to and misled Ramas LLC, a shipping company in Virginia, about what the DOC-BIS agent had told them and about whether the rebreathers had a military use. Testimony at trial also showed that Sotis threatened a government witness not to cooperate with the federal investigation.
Sotis and Voissem were both convicted of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), attempted violation of the IEEPA and smuggling. Voissem was found not guilty of making false statements to a federal agency.
They are scheduled to be sentenced on Jan. 6, 2022 and face a maximum penalty of 20 years in prison and a $1 million fine for attempting to violate the IEEPA, a maximum of 5 years and a $250,000 fine for the IEEPA conspiracy, and a maximum of 10 years and a $250,000 fine for smuggling. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division; Special Agent in Charge Ariel Joshua Leinwand of the DOC-BIS, Office of Export Enforcement, Miami Field Office; and Special Agent in Charge Anthony Salisbury of Homeland Security Investigations (HSI), Miami Field Office made the announcement.
DOC-BIS Miami and HSI Miami investigated the case. U.S. Customs and Border Protection Miami and FBI Miami assisted.
Assistant U.S. Attorneys Michael Thakur and Andy Camacho of the Southern District of Florida and Trial Attorney Nathan Swinton of the National Security Division’s Counterintelligence and Export Control Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no. 19-cr-20693.
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South Florida Residents Convicted of Attempting to Illegally Export Controlled Items to LibyaRead the Press Release
A federal jury convicted a pair of Florida residents yesterday for their roles in an illegal exports scheme. According to court documents and evidence presented at trial, Peter Sotis, 57, of Delray Beach, and Emilie Voissem, 45, of Sunrise, participated in a scheme to cause the illegal export of rebreather diving equipment to Libya in August 2016.
Rebreathers enable a diver to operate undetected for long periods of time underwater by producing little to no bubbles and by efficiently re-circulating the diver’s own breath after replacing its carbon dioxide with oxygen. Because of these enhanced capabilities, rebreathers have a dual use, with both civilian and military applications, and are specifically included on the Commerce Control List, which is the list of dual use items that are export controlled and licensed by the U.S. Department of Commerce, Bureau of Industry and Security (DOC-BIS). Such restricted items require a DOC-BIS license if the rebreathers are to be exported to any countries with national security concerns, such as Libya.
The defendants were warned that it was illegal to export the items to Libya without a license and they willfully attempted to export those items after receiving an instruction from a Department of Commerce special agent that such items were detained and not to be exported while a license determination was pending. The exhibits and testimony at trial showed that the defendants lied to and misled Ramas LLC, a shipping company in Virginia, about what the agent had told them and about whether the rebreathers had a military use. Testimony at trial also showed that Sotis threatened a government witness not to cooperate with the federal investigation.
Sotis and Voissem were both convicted of conspiracy to violate the International Emergency Economic Powers Act (IEEPA), attempted violation of the IEEPA and smuggling. Voissem was found not guilty of making false statements to a federal agency. They are scheduled to be sentenced on Jan. 6, 2022 and face a maximum penalty of 20 years in prison and a $1 million fine for attempting to violate the IEEPA, a maximum of 5 years and a $250,000 fine for the IEEPA conspiracy, and a maximum of 10 years and a $250,000 fine for smuggling. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division; Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Special Agent in Charge Ariel Joshua Leinwand, Department of Commerce, BIS, Office of Export Enforcement Miami Field Office, which oversees investigations in the southeast; and Special Agent in Charge Anthony Salisbury of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations’ (ICE-HSI) Miami Field Office made the announcement.
The DOC-BIS and ICE-HSI investigated the case.
Trial Attorney Nathan Swinton of the National Security Division’s Counterintelligence and Export Control Section and Assistant U.S. Attorneys Michael Thakur and Andy Camacho of the Southern District of Florida are prosecuting the case.
Saint Charles Parish Area Drug Traffickers Plead Guilty to Federal ChargesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that, on October 19, 2021, DUVELL LONDON, JR., 41, of St. Rose, La., and JEREMY LEVANDA, age 40, of Destrehan, La., pled guilty to conspiracy to distribute and possess with intent to distribute fentanyl, powder cocaine, and crack cocaine, in violation of 21 U.S.C. §§ 841(a)(1), 841(b)(1)(B), 841(b)(1)(C), and 846. LONDON further pled guilty to 4 counts of distribution of controlled substances, 3 counts of possession with intent to distribute controlled substances, and 4 counts of use of a telephone in furtherance of a drug trafficking crime. LEVANDA further pled guilty to one count of possession with intent to distribute controlled substances, and one count of use of a telephone in furtherance of a drug trafficking crime.
According to court documents, LONDON, LEVANDA, and others, distributed significant quantities of fentanyl, powder cocaine, and crack cocaine in St Charles Parish and surrounding areas during the summer of 2020.
LONDON faces a mandatory minimum term of imprisonment of 5 years up to a maximum of 40 years of imprisonment, a fine of up to $5,000,000.00, at least 4 years of supervised release following any term of imprisonment, and $1,200 in mandatory special assessment fees. LEVANDA faces up to a maximum of 20 years of imprisonment, a fine of up to $1,000,000.00, and at least 3 years of supervised release following any term of imprisonment, and a $300 mandatory special assessment fee. U.S. District Judge Wendy Vitter set sentencing for January 11, 2022.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
U.S. Attorney Evans praised the work of the U.S. Drug Enforcement Administration, St. Charles Parish Sheriff’s Office, St. John the Baptist Sheriff’s Office, Jefferson Parish Sheriff’s Office, Terrebonne Parish Sheriff’s Office, and St. James Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorneys Nolan Paige and Paige O’Hale.
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