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Friday 22 October 2021
Richmond Man Pleads Guilty in Internet Sales Fraud SchemeRead the Press Release
RICHMOND, Va. – A Richmond man pleaded guilty today to wire fraud in connection with a scheme involving the sale of fictitious online businesses.
According to court documents, between 2018 and 2019, Harlan Barry Cox, 24, promoted the sale of internet-based businesses, including multiple companies that purported to specialize in the sale of drones, by listing those businesses on online marketplaces. When soliciting the sales of the purported businesses, Cox, using aliases, misrepresented information about the businesses, including that the businesses had generated millions of dollars in revenue. Cox also fabricated statements from banks and payment processors to support his false claims of substantial revenue.
Interested buyers of the misrepresented businesses subsequently wired substantial down payments to accounts controlled by Cox. Cox used the money for personal expenses and the upkeep of his lifestyle, including the purchase of a luxury Mercedes SUV and various trips to Miami, New York City, and Los Angeles. Ultimately, Cox defrauded five victims of at least $706,000.
Cox is scheduled to be sentenced on March 1, 2022. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after U.S. District Judge David J. Novak accepted the plea.
Assistant U.S. Attorneys Avi Panth and Michael C. Moore are prosecuting the case. Former Assistant U.S. Attorney Kevin S. Elliker assisted with the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-078.
Repeat sex offender sentenced to 20 years in prison for attempting to coerce minors to engage in online sexual conductRead the Press Release
DAYTON, Ohio – Sean T. Porter, 56, of Moraine, Ohio, was sentenced in U.S. District Court to 240 months in prison and a lifetime of supervised release for attempting to solicit nude photos from teenage girls while registered as a sex offender.
According to court documents, from October 2020 through January 2021, Porter created seven accounts with the profile names “Sean” and “Mike” on a dating app. In that time, Porter communicated with approximately 52 individuals who identified themselves as minors as young as 11 years old and sent pornographic images of himself to at least 26 suspected minors. He also solicited sexual content from the minors. One of the minors Porter communicated with was an FBI undercover officer who was using two personas of minor females.
Porter made a number of requests for the undercover officer to send nude images. Porter also sent images of himself in an exposed state. On Valentine’s Day 2021, Porter sent a video of himself engaging in sexual conduct to the agent purporting to be a teenager.
Porter committed these acts while on federal supervision after serving 10 years in federal prison for his last offense.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, announced the sentence imposed by Senior U.S. District Court Judge Thomas M. Rose. Assistant Deputy Criminal Chief Laura I. Clemmens and Assistant United States Attorney Rob Painter are representing the United States in this case.
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Red Lake Man Pleads Guilty to Sexual Abuse of a ChildRead the Press Release
ST. PAUL, Minn. – A Red Lake man pleaded guilty to sexually abusing a child over the course of several years, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, between August 2014 and August 2020, Kory Paul Lussier, 25, knowingly and repeatedly engaged in sexual contact with a minor female who was between seven and thirteen years old at the time.
Lussier pleaded guilty yesterday before Senior U.S. District Judge Paul A. Magnuson to one count of abusive sexual contact with a child. A sentencing date has not been set.
This case is the result of investigations conducted by the Red Lake Department of Public Safety and the FBI Headwaters Safe Trails Task Force.
Assistant U.S. Attorney Alexander D. Chiquoine is prosecuting the case.
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Real Estate Developer Pleads Guilty to Bribery Conspiracy Involving City of Taylor OfficialsRead the Press Release
DETROIT – Real Estate Developer Shady Awad, 41, of Allen Park, pleaded guilty today to conspiring with Richard Sollars, Mayor of the City of Taylor and Jeffrey Baum, City of Taylor Community Development Manager and former Treasurer for the Committee to Elect Richard (“RICK”) Sollars by giving Sollars cash, household appliances, free renovations to his home and lake house, and other items of value in connection with the City of Taylor’s Right of First Refusal (“ROFR”) Program, which is a program designed to allow Taylor to acquire tax-foreclosed properties from Wayne County for redevelopment, Acting United States Attorney Saima S. Mohsin announced today.
According to court records, between 2016 and 2018, Shady Awad paid for improvements and renovations to Sollars’ home and lake house totaling over $50,000; provided his credit card information to another developer interested in acquiring tax-foreclosed properties under the City’s ROFR program and allowed that developer to charge over $19,000 to his credit cards, which the developer converted to cash and gave to Sollars; and, gave Sollars at least $4,000 in cash while Sollars gambled in Las Vegas, all in exchange for Sollars’ assistance in obtaining tax- foreclosed properties under the City’s ROFR program. Among other items of value, Shady Awad paid for the installation of hardwood flooring, garage doors, front doors as well as kitchen appliances, a Hall Tree bench and washer and dryer at Sollars’ home. In addition, Shady Awad also paid for the installation of hardwood flooring and deck and railings refinishing at Sollars’ lake house. Between 2015 and 2018, Awad was awarded the vast majority of Taylor’s tax-foreclosed properties in the City’s ROFR program.
The bribery conspiracy count to which Awad pleaded guilty carries a maximum sentence of 5 years of imprisonment. Under the United States Sentencing Guidelines, it is likely that Awad will face a guideline sentencing range of between 37 and 46 months of imprisonment, and a maximum fine of up to $250,000. A sentencing date has been set for March 1, 2022.
Mohsin was joined in the announcement by Timothy Waters, Special Agent In Charge of the Michigan Field Office of the Federal Bureau of Investigation.
“Not only do we seek to hold public officials accountable when they violate the law, we also hold those accountable who benefit from such illegal activity,” said Acting US Attorney Mohsin. “Today’s plea is a step towards ensuring that the citizens of Taylor receive the honest government services they are entitled to.”
“Mr. Awad’s investigation is proof of the FBI’s resolve to root out fraud and corruption in all forms,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “It is our continuing core mission to work with our federal, state, and local law enforcement partners to protect the integrity of city governments and to take strong action against those who seek to personally benefit by corrupting the fair administration of government programs."
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Dawn N. Ison.
Postal Manager Pleads Guilty to Drug ChargesRead the Press Release
BOSTON – A U.S. Postal employee pleaded guilty today in connection with stealing mail believed to contain controlled substances.
Shawn M. Herron, 44, of Whitman, pleaded guilty to one count of conspiracy to possess cocaine with intent to distribute and one count of theft of mail by a postal employee. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Feb. 17, 2022. Herron was indicted in August 2020.
Since September 2005, Herron has been employed with the Postal Service where he has served as Supervisor of Customer Service at the Canton Post Office and more recently as Manager of Customer Services at the Fall River Post Office (FPO).
Herron tracked packages he suspected of containing narcotics and, rather than dealing with them appropriately, opened them and stole the contents. Specifically, Herron profiled priority parcels from Puerto Rico and West Coast states as well as parcels flagged by law enforcement as potentially containing illegal narcotics and then removed them from the mail stream. Herron tracked the suspected parcels through Postal Service databases and monitored their arrival at the FPO. After their arrival Herron located the parcels and brought them to his personal office space, where he stole the narcotics for distribution.
The charge of conspiracy to distribute controlled substances provides for a sentence of up to 20 years in prison, five years of supervised release and a fine of up to $500,000. The charge of theft of mail provides for a sentence of up to five years in prison, three years of supervised release and a $250,000 fine. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew M. Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General; and Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service made the announcement. Assistant U.S. Attorneys Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, and Charles Dell-Anno, of Mendell’s Major Crimes Unit, are prosecuting the case.
Plaquemine Woman Indicted for Mail Fraud and Wire FraudRead the Press Release
A federal grand jury recently returned a three-count indictment charging Lestreonia Renee Rodrigue, age 26, of Plaquemine, Louisiana, with mail fraud and wire fraud. Rodrigue appeared for her arraignment today and pled not guilty to the pending charges.
According to the indictment, between July 2020 and June 2021, Rodrigue submitted claims for unemployment benefits in her name and in the names of other individuals in multiple states, including California, among others. Rodrigue also submitted claims for Paycheck Protection Program (“PPP”) benefits in the names of fictitious businesses and based on fictitious business profits and losses.
Further, Rodrigue obtained names, birth dates, and Social Security numbers of others, and submitted fraudulent claims for unemployment benefits in their names, with and without their knowledge or consent. Rodrigue used social media to obtain as many people’s identifying information as possible to file as many unemployment claims as possible. Upon submitting the claims and receiving the funds, she either gave a cut of the funds to the people or kept all the funds for herself. Through her scheme, Rodrigue obtained hundreds of thousands of dollars in prepaid debit cards in the mail.
In March 2021, Rodrigue also devised a scheme to defraud the Small Business Administration by filing false and fraudulent applications for PPP funds. In furtherance of the scheme, on or about March 6, 2021, she submitted false and misleading PPP applications in the business name of “Lestreonia Rodrigue” seeking PPP funds. Rodrigue submitted a forged bank statement, false tax documents, and made misrepresentations in her PPP applications.
Throughout the course of the fraudulent schemes, Rodrigue caused $20,833.00 to be deposited into her bank account, to which she was not entitled. Additionally, Rodrigue caused over $500,000 in prepaid debit cards to be mailed to her addresses, to which she and others were not entitled.
This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Labor and is being prosecuted by Assistant United States Attorney Edward H. Warner and Assistant United States Attorney Elizabeth White who also serves as Deputy Criminal Chief.
NOTE: An indictment is an accusation by a grand jury. The defendant is presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Phoenix Man Sentenced to over 4 Years for Abusive Sexual ContactRead the Press Release
PHOENIX, Ariz. – Yesterday, Virgil Fabian Brown, Jr., 44, of Phoenix, Arizona, was sentenced by U.S. District Judge Michael T. Liburdi to 54 months in prison, followed by ten years of supervised release. Brown previously pleaded guilty to two counts of Abusive Sexual Contact.
On November 3, 2018, Brown touched the adult victim’s breast and genitalia while she was unconscious. His 54-month sentence includes two and a half years for Abusive Sexual Contact and a consecutive two years of confinement for Abusive Sexual Contact Without Permission. Brown is also required to register as a sexual offender for life. Brown is an enrolled member of the Gila River Indian Community,
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-19-01419-PHX-MTL
RELEASE NUMBER: 2021- 075_Brown# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Phoenix Man Sentenced to 4 Years for AssaultRead the Press Release
PHOENIX, Ariz. – On Wednesday, Augustine Apkaw, 34, of Phoenix, Arizona, was sentenced by U.S. District Judge Susan M. Brnovich to four years in prison, followed by three years of supervised release. Apkaw previously pleaded guilty to Assault Resulting in Serious Bodily Injury.
On September 16, 2020, Apkaw hit his victim in the face with a baseball bat, causing her to suffer a broken jaw and tooth. Apkaw is an enrolled member of the Gila River Indian Community.
The Gila River Police Department conducted the investigation in this case. Assistant U.S. Attorney Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-00198-PHX-SMB
RELEASE NUMBER: 2021- 073_Apkaw# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Peoria Man Sentenced to over 12 Months in Prison for Involvement in Looting a Gun Store and Providing False Statements to the ATFRead the Press Release
PEORIA, Ill. – A Peoria, Illinois, man, Jeron C. McNeal, 29, of the 200 block of Northeast Rock Island Avenue, was sentenced to a year and a day in federal prison and three years of supervised release on October 20, 2021, for his involvement in the burglary of a federally licensed firearms dealer and for giving false statements to federal law enforcement officers. U.S. District Court Judge Joe Billy McDade also ordered McNeal to pay $1,000 in restitution. McNeal will remain on bond and report to the Bureau of Prisons on February 1, 2022.
At the sentencing hearing, the government presented evidence that on June 1, 2020, McNeal was the driver of an SUV whose occupants were participants in looting incidents around the city of Peoria. At approximately 2:00 a.m., McNeal, along with a caravan of approximately 30 cars, stopped in front of Pinnacle Gun & Ammo, a federal firearm licensee located at 701 Main Street. Two minors exited McNeal’s SUV and entered a smashed front window of Pinnacle along with approximately seven other unidentified individuals. McNeal’s sister, Chayla R. McNeal, stood at the SUV and recorded the incident with her phone. Each of the two minors with McNeal stole firearms from the store and ran back to McNeal’s SUV, which was waiting outside. When police gave chase, McNeal fled with the male minor and several guns. The female minor was unable to retreat to McNeal’s SUV in time and was apprehended by police. When she was captured, the minor female was in possession of three stolen guns. In total, twenty-nine firearms were stolen during the looting of Pinnacle.
The government presented additional evidence that on June 1, 2020, federal agents located and interviewed McNeal. He admitted to driving the black Cadillac SUV, which he owned, that was parked in front of Pinnacle at the time of the burglary. He also admitted to driving around the city from business to business that night and that he was present when looting occurred. However, McNeal provided false statements to agents from the Bureau of Alcohol, Tobacco, Firearms & Explosives in that he falsely claimed that (1) he only stopped in front of Pinnacle because he got stuck in traffic; (2) he didn’t know anyone got out of his SUV during the burglary; and (3) he made false statements about who was in the SUV when he went to Pinnacle.
At McNeal’s sentencing hearing, Judge McDade commented that McNeal did not have an extensive criminal record and may not have grasped the enormity of what he was doing, having failed to appreciate that he would go to prison if he was caught. Noting the serious nature of the crime, Judge McDade stated that putting stolen firearms in the hands of people who cannot lawfully possess them is contributing to violence in the streets. To date, five of the twenty-nine guns have been recovered.
McNeal was arrested on September 18, 2020, and pleaded guilty before Judge McDade on June 2, 2021.
The offense of stealing from a licensed firearms dealer carries a statutory penalty of up to ten years in prison, a fine of up to $250,000, and three years of supervised release following imprisonment. For the offense of false statements, the statutory penalty is up to five years in prison, a fine of up to $250,000, and three years of supervised release following imprisonment.
Chayla R. McNeal has also pleaded guilty to burglary of a federally licensed firearms dealer and false statements to a federal law enforcement officer. Her sentencing hearing is scheduled for November 5, 2021, in federal court in Peoria.
The Peoria Police Department and U.S. Department of Justice Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant U.S. Attorney Ronald L. Hanna represented the government in the prosecution.
Parmelee Man Indicted for Sexual AbuseRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse.
Justis Running Bear, age 23, was indicted on October 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 22, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 9, 2018, and March 28, 2021, in Mission, South Dakota, Running Bear knowingly engaged in a sexual act with the victim and that the victim was incapable of declining participation in the sexual act.
The charges are merely accusations and Running Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Running Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
O’fallon, Il Bookkeeper Sentenced to Four Years in Prison for Defrauding Client Out of More Than $1,000,000Read the Press Release
O’Fallon, Ill. – An O’Fallon, Illinois, bookkeeper was sentenced to 4 years in prison for
defrauding one of her clients out of more than $1,000,000. The sentencing hearing was
conducted on Thursday, October 21, 2021, in U.S. District Court in Benton, Illinois.
“While our work on violent crimes often garners larger headlines, the public should be remined that
financial crimes remain a clear federal priority,” said Steven D. Weinhoeft, United States
Attorney for the Southern District of Illinois. He continued, “Financial criminals like Dvorak
cause great harm and must be held accountable.”“For years, Dvorak bilked her employer’s accounts, choosing greed over trust,” said FBI Special
Agent in Charge David Nanz. “No matter how simple or sophisticated the fraud scheme, the FBI
won’t hesitate to bring all available resources to bear to hold criminals accountable and seek
justice for victims.”Kathleen M. Dvorak, 61, conducted a large, multi-year fraud scheme, against one of her clients.
From 2012 through 2019, Dvorak defrauded the victim out more than $1,000,000. Evidence
presented in court established that Dvorak took this money from her client in two primary ways:
(1) by writing large checks, payable to herself, that were drawn on the victim’s bank account; and
(2) by taking large amounts of cash back for herself when she deposited checks payable to the
victim into his bank accounts. Dvorak concealed her fraud from the victim by making false entries
into his Quickbooks accounting program.In addition to the four-year prison sentence, the court also ordered Dvorak to pay $1,495,072.74 to
her victim. The court further sentenced Dvorak to serve three years of supervised
release following her release from prison. As a condition of her supervised release,
the court ordered Dvorak to participa e in treatment for gambling addiction and to not
participate in any further gambling activities.The case was investigated by the Federal Bureau of Investigation, Springfield Division, Fairview
Heights Resident Agency.
Assistant U.S. Attorney Scott Verseman prosecuted the case.Online Pastor and Former Real Estate Agent Among Those Sentenced to Prison for Bank Fraud in Ongoing Identity Fraud ProsecutionRead the Press Release
RALEIGH, N.C. – Numerous defendants were sentenced in connection with charges contained in a 50-count, 2nd Superseding Indictment alleging various forms of Bank Fraud, Wire Fraud, Conspiracy, and Perjury.
The indictment charges that defendant Michael Griffin (“MGriffin”), operating from his business location in Raleigh and home in Knightdale, accepted fees from clients for alleged credit repair services. The indictment alleges that, in reality, Griffin was creating fictitious credit profiles and fraudulently altering client credit data through the use of fictitious police reports.
The indictment further charges that various defendants, many of whom were family, conspired with MGriffin to defraud Synchrony Bank, a Lowe’s credit card provider, by opening credit accounts in the name of fraudulent identities, cashing out the accounts through prepaid card purchases, and then defaulting on the credit accounts. The indictment also charges various defendants with similar frauds against other banks, including Capital One and Discover.
Regina Griffin (MGriffin’s sister), 49, of Raleigh, North Carolina, and former real estate agent; pled guilty to Count 29 of the 2nd Superseding Indictment, which charged False Statement to Influence a Bank on a Loan, in violation of Title 18, United States Code, Section 1014. The offense occurred between February 11, 2019 and March 19, 2019, and involved Alcova Mortgage, LLC. On Wednesday, October 20, 2021, the Court sentenced Regina Griffin to 14 months in prison, followed by 3 years of supervised release. She was also ordered to make restitution of $70,606.72.
Sharon Annita Edmond (MGriffin’s sister), 57, of Raleigh, North Carolina, and an online pastor; pled guilty to Count 25 of the 2nd Superseding Indictment, which charged Wire Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1343 and 2. The offense occurred on or about April 16, 2018 and involved Strategic Funding Partners, doing business as Merchant Cash Group. On Wednesday, October 20, 2021, the Court sentenced Sharon Edmond to 12 months in prison, followed by 3 years of supervised release. She was also ordered to make restitution of $36,204.00.
Creshun Alexandria Griffin (MGriffin’s daughter), 27, of Knightdale, North Carolina; pled guilty to Count 16 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between August 11, 2017 and December 31, 2018 and involved Capital One Bank. On Wednesday, October 20, 2021, the Court sentenced Creshun Griffin to 30 day in custody, followed by 2 years of supervised release, and 200 hours of community service. She was also ordered to make restitution of $8,406.51.
Katina Griffin Perry (MGriffin’s sister), 48, of Raleigh, North Carolina; pled guilty to Count 27 of the 2nd Superseding Indictment, which charged Wire Fraud, in violation of Title 18, United States Code, Section 1343. The offense occurred between August 21, 2017 and September 19, 2017 and involved Kia Motor Finance. On Wednesday, October 20, 2021, the Court sentenced Katina Perry to 2 years of probation and 50 hours of community service.
Harvey Griffin (MGriffin’s brother) 47, of Raleigh, North Carolina; pled guilty to Count 11 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October of 2017 and January of 2018 and involved Synchrony Bank. On Wednesday, October 20, 2021, the Court sentenced Harvey Griffin to Time Served, plus 3 years of supervised release. He was also ordered to make restitution of $7,609.75.
Angela Griffin (MGriffin’s wife), 53, of Knightdale, North Carolina; pled guilty to Count 13 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between November 21, 2017 and December 21, 2017 and involved Synchrony Bank. Today, the Court sentenced Angela Griffin to 12 months confinement and five years of supervised release. She was also ordered to make restitution of $9,614.31.
Melvin Griffin (MGriffin’s brother), 45, of Knightdale, North Carolina; pled guilty to Count 18 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October 5, 2017 and August 31, 2018 and involved Discover Bank. Today, the Court sentenced Melvin Griffin to six months confinement plus three years of supervised release. He was also ordered to make restitution of $42,861.98.
Jasmine Mariah Davis, 29, of Lakeland, Florida; pled guilty to Count 11 of the 2nd Superseding Indictment, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between October of 2017 and February of 2018 and involved Synchrony Bank. Today, the Court sentenced Jasmine Davis to three months confinement plus three years of supervised release. She was also ordered to make restitution of $69,502.71.
Tyrone Edmonds, 47 of Weldon, North Carolina, pled guilty on February 8, 2021 to Count 6, which charged Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2. The offense occurred between July of 2017 and August of 2021, and involved Synchrony Bank. Today, the Court sentenced Tyrone Edmonds to time served and three years of supervised release. He was also ordered to make restitution of $12,407.86.
In January of this year, Shawn Allen Farmer, 52, of Cary, North Carolina, also named in the Second Superseding Indictment, pled guilty to Bank Fraud and Aiding and Abetting, in violation of Title 18, United States Code, Sections 1344 and 2, and Making False Claims, in violation of Title 18, United States Code, Section 287. In May of 2021 the Court sentenced Shawn Farmer to 15 months in prison and ordered to pay $42,783 in restitution.
Additional defendants Michael Griffin and Jasper Deonta Goodman have also pled guilty but have not yet been sentenced. The maximum punishment for committing Bank Fraud and Conspiracy to Commit Bank Fraud, violations of Title 18, United States Code, Sections 1344 and 1349, is not more than 30 years in prison. The maximum punishment for Wire Fraud, a violation of Title 18, United States Code, Section 1343, is not more than 20 years imprisonment. The maximum punishment for Making a False Statement to a Bank on a Loan is not more than 30 years in prison.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement. The investigation was conducted by the Internal Revenue Service Criminal Investigation with the assistance of the United States Marshals Service and the United States Postal Inspection Service. Assistant United States Attorney William M. Gilmore represents the United States.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-245-1D(2).
Omaha Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Jose Ivan Marino-Meza, 25, of Omaha, Nebraska, was sentenced today by United States District Judge John M. Gerrard to 11 years and three months in federal prison for conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine actual (pure) between March and October of 2020. Marino-Meza was also ordered to forfeit any interest he had in $38,840.00 in United States currency. Following his prison term, Marino-Meza will serve five years on supervised release. However, he is likely to be deported to Mexico at the end of his prison term. There is no parole in the federal system.
In March and April of 2020, a confidential informant working with the Lincoln/Lancaster County Narcotics Task Force and an undercover officer made four purchases of methamphetamine totaling at least two pounds from Lucio Cruz-Guerrero. Marino-Meza accompanied Cruz on some of these purchases. In July of 2020, an undercover officer bought approximately one ounce of methamphetamine from Marino-Meza who drove to the buy location in a car belonging to Cruz. In August of 2020, the undercover officer made two additional purchases of methamphetamine from Cruz totaling approximately ¾ pound. In October of 2020, search warrants were executed at Cruz’s Lincoln residence, Marino’s Omaha residence, and two storage units used by Cruz. A total of approximately 33 pounds of methamphetamine and $38,840 in cash were found during these searches. Testing at the Nebraska State Patrol Crime Lab showed the methamphetamine purchased and found during the searches contained a total of more than six kilograms of methamphetamine actual (pure).
Cruz-Guerrero was sentenced in July of 2021 to 168 months in prison on the conspiracy charge and was ordered to forfeit any interest in the seized $38,840.00 in U.S. currency.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force and the Drug Enforcement Administration (DEA).
Ohio man appears on drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Reuben Jahmell Dauntez Donald, of Akron, Ohio, appeared in federal court today on a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Donald, 35, was charged in a criminal complaint with one count of “Distribution of Methamphetamine.” Donald is accused of having nearly 150 grams of methamphetamine on Wheeling Island on October 20, 2021. According to the affidavit, the Ohio Valley Drug Task Force conducted a controlled buy of methamphetamine from Donald. The purchased methamphetamine weighed approximately 149.56 grams, with a street value of nearly $15,000.
Donald is facing up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated. The Wheeling Police Department, the West Virginia State Police, and the Marshall County Drug Task Force, a HIDTA-funded initiative, assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Northborough Man Arrested for Wire Fraud and Money Laundering After Embezzling from Non-ProfitRead the Press Release
BOSTON – A Northborough man was arrested today for allegedly embezzling approximately $370,000 from a non-profit organization in Sturbridge.
Kyriakos Kapiris, a/k/a Rick Kapiris, 35, was indicted on two counts of wire fraud and one count of money laundering. Kapiris was released on conditions following an initial appearance this afternoon before U.S. District Court Magistrate Judge David H. Hennessy.
According to charging documents, from April 2015 to May 2020, Kapiris worked as the Information Technology (IT) manager at the non-profit organization. As part of his responsibilities, the organization provided Kapiris access to two company credit cards to purchase IT equipment and services as needed. Beginning in 2016, Kapiris used the two company credit cards to purportedly purchase IT equipment from two vendor accounts on Square and one account on Amazon. In reality, it is alleged that Kapiris created the three vendor accounts to embezzle the funds and fabricated sales invoices for purportedly purchased equipment to conceal the scheme. Kapiris allegedly used the names of legitimate Massachusetts companies for the two Square accounts and created the Amazon account in the name of a fictitious company, “NetworkingPlus.”
It is alleged that Kapiris linked the three vendor accounts to several of his own personal accounts at Bank of America into which he transferred the fraudulent proceeds. Kapiris then used the stolen funds for personal expenses including a $19,250 payment to a contractor that Kapiris hired to build a new residence in Northborough.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of money laundering provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistance was provided by the Sturbridge and Northborough Police Departments. Assistant U.S. Attorney Lucy Sun of Mendell’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Norfolk Man Sentenced for Fentanyl Distribution and Bribery of a Federal AgentRead the Press Release
NORFOLK, Va. – A Norfolk man was sentenced today to 262 months in prison for conspiracy to distribute 400 grams or more of fentanyl and bribery of a public official.
According to court documents, Donatarius Leshay Boone, 31, received numerous packages through the U.S. Postal Service containing pressed fentanyl pills over the course of approximately sixteen months. Once received, Boone wholesale distributed the pills to at least three other individuals for further sale and distribution. Although these pills contained fentanyl, they were pressed to look like real prescription opioid medication.
Between February and March 2021, law enforcement identified two packages, each containing approximately 2,000 fentanyl pills, bound for the Eastern District of Virginia. They further determined that one package was bound for a business located in Windsor and the other to a rented postal box at a UPS Store located in Suffolk. On March 15, Boone arrived to pick up the second package and, when confronted by law enforcement, he attempted to flee on foot. Upon apprehension, Boone admitted he was the intended recipient of both packages. He further admitted he had been responsible for the importation of approximately 10,000 pills per month. A subsequent search of Boone’s residence resulted in the recovery of a firearm, additional quantities of cocaine and fentanyl, scales, and commonly used adulterants.
Shortly after his interaction with law enforcement, Boone attempted to bribe a federal agent to form a “partnership.” Boone told the agent in a recorded phone call that, in exchange for $20,000, he expected the agent to protect him from criminal charges and assist him in maintaining his lines of drug supply and distribution. The agent immediately reported the conversation to his supervisors. On April 29, 2021, Boone was arrested after arranging a meeting with the agent. After his arrest, agents searched his car and found the $20,000 he promised.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; and Al Chandler, Interim Chief of Suffolk Police, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
The U.S. Immigration and Customs Enforcement Office of Professional Responsibility provided significant assistance in this case.
Special Assistant U.S. Attorney Kristin Bird prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-44.
Navillus Construction Executives Convicted of Embezzling from Union Benefits FundsRead the Press Release
Earlier today, in federal court in Brooklyn, a jury returned guilty verdicts against Donal O’Sullivan, the founder, owner and President of Navillus Tile, Inc. d/b/a/ Navillus Contracting (“Navillus”), one of New York City’s largest construction firms, Padraig Naughton, Navillus’s Financial Controller, and Helen O’Sullivan, a Payroll Administrator, on all 11 counts charging wire fraud, mail fraud, embezzlement from employee benefits funds, submission of false remittance reports to union benefits funds, and conspiracy to commit those crimes. The verdicts followed a three-week trial before United States District Judge Pamela K. Chen. When sentenced, each of the defendants faces up to 20 years in prison.
Breon Peace, United States Attorney for the Eastern District of New York, announced the verdict.
“As found by the jury, the defendants deliberately devised a fraudulent scheme to avoid making required contributions to union benefits funds on behalf of Navillus’s workers, in order to deprive the workers of benefits they had earned and deserved,” stated United States Attorney Peace. “This Office and its law enforcement partners will continue to investigate and prosecute these types of blatant frauds that are harmful to workers.”
Mr. Peace expressed his thanks to the agents and investigators of the Federal Bureau of Investigation, New York Field Office; United States Department of Labor, Office of Inspector General; the United States Department of Labor, Employee Benefits Security Administration; the Port Authority of New York and New Jersey, Office of Inspector General; and Homeland Security Investigations for their outstanding work on the case.
Navillus was a signatory to multiple collective bargaining agreements that required the company to make contributions to union benefits funds, such as health, pension and vacation funds, for all “covered work” performed by its workers at construction sites. Between 2011 and 2017, the defendants engaged in a scheme to avoid making these required contributions by placing some of Navillus’s workers on the payroll of another company (the “Consulting Company”). The Consulting Company then issued weekly paychecks to those Navillus workers for work they did on Navillus construction jobs. To conceal the scheme from benefits fund auditors, the defendants caused the Consulting Company to issue fraudulent invoices to disguise the fact that the funds Navillus had issued to the Consulting Firm were made to reimburse the Consulting Company for the wages the Consulting Company had paid to Navillus workers.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford and Meredith Arfa, and Special Assistant United States Attorney Virginia Nguyen are in charge of the prosecution.
The Defendants:
DONAL O’SULLIVAN
Age: 60
Queens, New YorkPADRAIG NAUGHTON
Age: 49
New York, New YorkHelen o’sullivan
Age: 61
Queens, New YorkE.D.N.Y. Docket No. 20-CR-272 (PKC)
Miami Man Pleads Guilty to Participating in Access Device Fraud and Money Laundering Conspiracies for his Roles in Nationwide Gas Station Skimming SchemeRead the Press Release
ALBANY, NEW YORK – Hugo Hernandez, age 34, of Miami Lakes, Florida, pled guilty today to a superseding indictment charging him with being part of access device fraud and money laundering conspiracies for his roles in a nationwide gas station skimming scheme that involved stealing banking and personal information of residents in and around the Northern District of New York, as well as multiple other parts of the country, who used the “pay at the pump” feature to make gasoline purchases.
The announcement was made by United States Attorney Carla B. Freedman; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and Inspector in Charge Ketty Larco-Ward, Boston Division, United States Postal Inspection Service (USPIS).
As part of his guilty plea, Hernandez admitted that between December 2015 and July 2019, he conspired with others to commit access device fraud by building skimming devices designed to steal gas station customer information, installing those devices inside gas pumps in Albany, Broome, and Montgomery Counties, and elsewhere, and then using the information collected by those devices to create fake credit and debit cards. The fake cards were used to obtain money orders, gift cards, cash, and other things of value.
Hernandez also admitted to being part of a conspiracy to launder funds obtained through the access device fraud conspiracy, and, in facilitating that conspiracy, causing at least 162 money orders, worth $173,257, to be deposited into a bank account he controlled. As part of his plea agreement, Hernandez agreed to be subject to a forfeiture money judgment in the amount of $173,257.
A sentencing hearing is set to take place on March 1, 2022, before Senior United States District Judge Gary L. Sharpe. Hernandez faces up to 20 years in prison; a fine of up to $500,000 or twice the value of the property involved in the transaction, whichever is greater; and up to 3 years of supervised release. 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 FBI Albany Field Office and USPIS Boston Division, with assistance from the FBI Field Offices in Miami, Pittsburgh, and San Juan, the USPIS Miami Division, the United States Secret Service Miami Field Office, as well as the New York State Department of Agriculture, Division of Weights and Measures. The case is being prosecuted by Assistant U.S. Attorneys Rick Belliss and Emily C. Powers.
Man Convicted of Arson of Alexandria Businesses Sentenced in Federal CourtRead the Press Release
ALEXANDRIA, La. – Jasmine Roberson, 31, of Baton Rouge, Louisiana, has been sentenced by United States District Judge Dee D. Drell to 60 months in prison, followed by 3 years of supervised release, on arson charges.
According to information presented in court, on April 20, 2019, firefighters with the Alexandria Fire Department responded to reported fires at a strip mall on Elliott Street in Alexandria, Louisiana. When they arrived at the location, they observed flames in a store-front window and saw a hole in the window. The flames had subdued in that area, but as they moved through the business, they located flames through an open doorway and extinguished the fire. Evidence at the scene led firefighters to suspect arson.
On May 3, 2019, firefighters were called once again to reported fires at the same strip mall on Elliott Street in Alexandria. When they arrived, they found that another business had its front window broken and soot was visible on the ceiling above the window. Firefighters found an unbroken glass bottle that was used to fashion a Molotov cocktail that was filled with gasoline and a rag stuffed in the charred bottle.
Agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) began an investigation into both fires and discovered that they were related. After conducting interviews of witnesses, ATF agents learned that the owner of the store that suffered damage from the second fire was in a romantic relationship with an inmate at Hunt Correctional Center. The victim indicated that the boyfriend/inmate had given her money to help start her business but when he learned that her business was not doing well financially, he told her he was going to burn it down.
Further investigation revealed that the boyfriend/inmate contacted Jasmine Roberson and a co-conspirator to set the fires so he could collect insurance money on the failing business. The first fire on April 20, 2019 was started on the wrong business so Roberson went back on May 3, 2019 and attempted to set fire to the correct business location.
A DNA analysis was performed on the glass bottle found at the scene and Roberson was identified as a potential match for DNA found on the bottle used at the fire. Roberson admitted to agents that he attempted to set fire to both businesses.
The ATF and Alexandria Fire Department investigated the case. Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
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Lincoln Couple Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Raymond Michael Maestas, 28, and his wife, Jaesa Suzanne Vaughn, 28, both of Lincoln, Nebraska, were sentenced today by United States District Judge John M. Gerrard to federal prison for possession with intent to distribute 500 grams or more of methamphetamine mixture.
Maestas was sentenced to 15 years for possession with intent to distribute 500 grams or more of methamphetamine mixture with a prior conviction for serious violent felony, (robbery). He also received a sentence of five years for using, carrying, and possessing a firearm in furtherance of a drug-trafficking crime. The sentence on the gun charge must be served consecutive to (after) the sentence on the drug charge. Following his prison term, Maestas will serve ten years on supervised release.
Vaughn was sentenced to 10 years for possession with intent to distribute 500 grams or more of methamphetamine mixture. She will serve five years on supervised release after completing her prison term. There is no parole in the federal system.
On February 28, 2021, a pickup driven by Maestas, in which Vaughn was the passenger, was stopped in Lancaster County for speeding. A Lancaster Sheriff’s Office canine indicated the odor of narcotics on the passenger side door. The pickup was searched. A box was found inside a battery cover where the pickup’s battery would normally be located. This box contained two locked safes containing three packages of methamphetamine weighing a total of approximately 1 ½ pounds, 13 Fentanyl pills and a vacuum-sealed Jimenez .380 handgun. The actual battery for the pickup was found hooked up near the passenger-side window. A Hi-Point .45 caliber handgun was found under the center console inside the passenger compartment. A vacuum sealer was also found in the pickup. Maestas claimed everything belonged to him and said Vaughn had nothing to do with it. Vaughn said the vacuum sealer belonged to her and claimed it was used to seal food. On the same date, a search warrant was executed at Maestas’s and Vaughn’s Lincoln residence. During that search, scales and packaging materials along with suspected drug sales records were found.
This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
Maestas’s and Vaughn’s cases were investigated by the Lincoln/Lancaster County Narcotics Task Force.
Laurel Man Sentenced to More Than 16 Years in Federal Prison for Charge of Receipt of Child PornographyRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Barry Thomas Goldsborough, age 53, of Laurel, Maryland to 195 months in federal prison, followed by a lifetime of supervised release, for receipt of child pornography and for violating his federal supervised release. Goldsborough was on supervised release for two previous federal sex offense convictions for attempting to entice a minor to engage in sexual activity and for possession of child pornography.
As part of his sentence, Goldsborough acknowledged that he will be required to continue to register as a sex offender in the places where he resides, is an employee, and is a student, pursuant to the Sex Offender Registration and Notification Act (SORNA), and the laws of his state of residence. Goldsborough will also be required to pay $9,000 in restitution.
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; and Chief Malik Aziz of the Prince George’s County Police Department.
According his plea agreement, in April 2019, an internet search engine and internet portal sent a CyberTipline Report to the National Center for Missing and Exploited Children (NCMEC) that reported an email account associated with Goldsborough had uploaded 181 files of suspected child pornography to his user account. Law enforcement subsequently reviewed the 181 files and determined that approximately 70 of the 181 files were considered child pornography.
On November 19, 2019, law enforcement executed a search warrant at Goldsborough’s Laurel, Maryland residence and seized several electronic devices. A review of one of the devices revealed one image of child pornography. Law enforcement subsequently obtained a search warrant for Goldsborough’s email address, which revealed that Goldsborough sent and received multiple images of child pornography. For example, on January 27, 2018, Goldsborough received an image of child pornography from another email address. Goldsborough responded to the sender, indicating that he liked young girls between eight and 14 years old. Goldsborough also claimed to have had sex with an 11-year-old girl.
As a result of an executed search warrant of Goldsborough’s Internet storage account, law enforcement located approximately 26 videos documenting the sexual abuse of children.
Goldsborough has two prior federal sex offense convictions involving minor children. Specifically, a prior conviction for attempted enticement of a minor to engage in illegal sexual activity in the United States District Court for the Middle District of Tennessee and a prior conviction for possession of child pornography in the United States District Court for the District of Maryland. Goldsborough was serving a 72-month term of federal supervised release from those two prior federal convictions at the time he committed the instant offense. Prior to those convictions, Goldsborough was convicted in the District Court for Baltimore County in 2005 for Possession of Child Pornography and sentenced to a sentence of one year, suspended, with two years of supervised probation. Goldsborough was also convicted in the District Court for Howard County in 2015 with Failing to Register as a Sex Offender and sentenced to a two-day period of incarceration.
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.
For information about the Maryland U.S. Attorney’s Office’s priorities regarding Project Safe Childhood, visit https://www.justice.gov/usao-md/project-safe-childhood. For more USAO-MD information about internet safety for children, visit https://www.justice.gov/usao-md/community-outreach.
United States Attorney Erek L. Barron commended HSI, Maryland State Police Internet Crimes Against Children Task Force, and the Prince George’s County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, who prosecuted the federal case.
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Justice Department Announces New Initiative to Combat RedliningRead the Press Release
The Justice Department announced the launch of the department’s new Combatting Redlining Initiative today. 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.”
“Enforcement of our fair lending laws is critical to ensure that banks and lenders are providing communities of color equal access to lending opportunities,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Equal and fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth in our country. We know well that redlining is not a problem from a bygone era but a practice that remains pervasive in the lending industry today. Our new Initiative should send a strong message to banks and lenders that we will hold them accountable as we work to combat discriminatory race and national origin-based lending practices.”
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 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.
Trustmark National Bank Settlement
In addition to today’s Initiative announcement, the Justice Department, the U.S. Attorney’s Office for the Western District of Tennessee, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) announced an agreement to resolve allegations that Trustmark National Bank engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Memphis, Tennessee.
The parties’ proposed consent order was filed today in conjunction with a complaint in the U.S. District Court for the Western District of Tennessee. The complaint alleges that Trustmark National Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color or national origin in their mortgage lending services. The complaint also alleges that Trustmark National Bank violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law.
Specifically, the complaint alleges that, from 2014 to 2018, Trustmark engaged in unlawful redlining in Memphis by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in, or seeking credit for properties in, those neighborhoods. The complaint also alleges that Trustmark’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, that Trustmark’s outreach and marketing avoided those neighborhoods, and that Trustmark’s internal fair-lending policies and procedures were inadequate to ensure that the bank provided equal access to credit to communities of color.
The department opened its investigation after one of Trustmark’s regulators, the OCC, referred the matter. Trustmark has fully cooperated in this investigation and amicably resolved the allegations.
“Trustmark purposely excluded and discriminated against Black and Hispanic communities,” said Director Rohit Chopra of the Consumer Financial Protection Bureau (CFPB). “The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms.”
“Home ownership is the foundation of economic success for most American families,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Fair lending practices required by federal law — and the enforcement of those laws — ensure a better future for all Americans. Our office believes that enforcement actions of this type are essential to fair lending system that benefits everyone, and we will continue to prioritize these cases.”
“The OCC has had a long history of strong partnership with the Justice Department’s Housing and Civil Enforcement Section of the Civil Rights Division, referring potential fair lending violations and sharing our extensive examiner, economist and legal findings, as we did in the Trustmark matter,” said Acting Comptroller of the Currency Michael J. Hsu. “Today’s announcement is important because it signifies the unified and unmitigated focus that each of our agencies has placed on the enforcement of the Fair Housing Act and the Equal Credit Opportunity Act. Our collective efforts are critical to addressing the discriminatory lending practices that create and reinforce racial inequity in the financial system.”
Under the proposed consent order:
- Trustmark will invest $3.85 million in a loan subsidy fund to increase credit opportunities for current and future residents of predominantly Black and Hispanic neighborhoods in the Memphis area; dedicate at least four mortgage loan officers or community lending specialists to these neighborhoods; and open a loan production office in a majority-Black and Hispanic neighborhood in Memphis.
- Trustmark will devote $400,000 to developing community partnerships to provide services to residents of majority-Black and Hispanic neighborhoods in Memphis that increase access to residential mortgage credit.
- Trustmark will devote at least $200,000 per year to advertising, outreach, consumer financial education and credit repair initiatives in and around Memphis.
- Trustmark will pay a total civil money penalty of $5 million to the OCC and CFPB.
- Trustmark already has established a Fair Lending Oversight Committee and designated a Community Lending Manager who will oversee these efforts and work in close consultation with the bank’s leadership.
In August 2021, the department announced a redlining settlement with Cadence Bank. Under the settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of majority-Black and Hispanic neighborhoods in Houston.
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.
Justice Department Announces New Initiative to Combat RedliningRead the Press Release
Memphis, TN – Today the Department of Justice, the U.S. Attorney’s Office for the Western District of Tennessee, the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) announced an agreement to resolve allegations that Trustmark National Bank engaged in lending discrimination by redlining predominantly Black and Hispanic neighborhoods in Memphis, Tennessee. "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.
"Enforcement of fair lending laws is a priority for the Civil Rights Division. Our fair lending laws enable us to hold banks and lenders accountable when they fail to serve communities of color in our country. Having fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth," said Assistant Attorney General Kristen Clarke of the Civil Rights Division. "This settlement makes clear our commitment to ensuring equal access to lending opportunities for all communities, regardless of race or national origin."
"Home ownership," said Joseph C. Murphy, Jr., Acting United States Attorney for the Western District of Tennessee, "is the foundation of economic success for most American families. Fair lending practices required by federal law - and the enforcement of those laws - ensure a better future for all Americans. Our office believes that enforcement actions of this type are essential to fair lending system that benefits everyone, and we will continue to prioritize these cases."
The parties’ proposed consent order was filed today in conjunction with a complaint in the U.S. District Court for the Western District of Tennessee. The complaint alleges that Trustmark National Bank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race, color, or national origin in their mortgage lending services. The complaint also alleges that Trustmark National Bank violated the Consumer Financial Protection Act, which prohibits offering or providing to a consumer any financial product or service not in conformity with federal consumer financial law.
Specifically, the complaint alleges that, from 2014 to 2018, Trustmark engaged in unlawful redlining in Memphis by avoiding predominantly Black and Hispanic neighborhoods because of the race, color, and national origin of the people living in, or seeking credit for properties in, those neighborhoods. The complaint also alleges that Trustmark’s branches were concentrated in majority-white neighborhoods, that the bank’s loan officers did not serve the credit needs of majority-Black and Hispanic neighborhoods, that Trustmark’s outreach and marketing avoided those neighborhoods, and that Trustmark’s internal fair-lending policies and procedures were inadequate to ensure that the bank provided equal access to credit to communities of color.
The department opened its investigation after one of Trustmark’s regulators, the OCC, referred the matter. Trustmark has fully cooperated in this investigation and amicably resolved the allegations.
"Trustmark purposely excluded and discriminated against Black and Hispanic communities," said Director Rohit Chopra of the Consumer Financial Protection Bureau (CFPB). "The federal government will be working to rid the market of racist business practices, including those by discriminatory algorithms."
"The OCC has had a long history of strong partnership with the Justice Department’s Housing and Civil Enforcement Section of the Civil Rights Division, referring potential fair lending violations and sharing our extensive examiner, economist and legal findings, as we did in the Trustmark matter," said Acting Comptroller of the Currency Michael J. Hsu. "Today’s announcement is important because it signifies the unified and unmitigated focus that each of our agencies has placed on the enforcement of the Fair Housing Act and the Equal Credit Opportunity Act. Our collective efforts are critical to addressing the discriminatory lending practices that create and reinforce racial inequity in the financial system."
Under the proposed consent order:
• Trustmark will invest $3.85 million in a loan subsidy fund to increase credit opportunities for current and future residents of predominantly Black and Hispanic neighborhoods in the Memphis area; dedicate at least four mortgage loan officers or community lending specialists to these neighborhoods; and open a loan production office in a majority-Black and Hispanic neighborhood in Memphis.
• Trustmark will devote $400,000 to developing community partnerships to provide services to residents of majority-Black and Hispanic neighborhoods in Memphis that increase access to residential mortgage credit.
• Trustmark will devote at least $200,000 per year to advertising, outreach, consumer financial education, and credit repair initiatives in and around Memphis.
• Trustmark will pay a total civil money penalty of $5 million to the OCC and CFPB.
• Trustmark already has established a Fair Lending Oversight Committee and designated a Community Lending Manager who will oversee these efforts and work in close consultation with the Bank’s leadership.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. 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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Justice Department Announces New Initiative to Combat RedliningRead the Press Release
NASHVILLE – The U.S. Attorney’s Office for the Middle District of Tennessee 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.”
“When Redlining is employed by lending institutions, communities of color are prevented from recognizing the American dream of home ownership and become stagnated in their present socio-economic status,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. We are pleased to partner with the Civil Rights Division to address this illegal practice and will pursue the appropriate remedy when such practices are identified.”
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.
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Justice Department Announces New Initiative to Combat RedliningRead the Press Release
Tampa, Florida – Today, the Justice Department announced the launch of 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.”
“Enforcement of our fair lending laws is critical to ensure that banks and lenders are providing communities of color equal access to lending opportunities. Equal and fair access to mortgage lending opportunities is the cornerstone on which families and communities can build wealth in our country,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “We know well that redlining is not a problem from a bygone era but a practice that remains pervasive in the lending industry today. Our new Initiative should send a strong message to banks and lenders that we will hold them accountable as we work to combat discriminatory race and national origin-based lending practices.”
“Discriminatory practices such as Redlining rend the fabric of our society by destroying one of our nation’s foundational principles – equal opportunity for all,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. The deliberate denial of economic and housing opportunities to individuals based upon race, ethnicity, or nationality is strictly prohibited under the law. The U.S. Attorney’s Office works and will continue to work diligently, with its partners, to enforce our nation’s Fair Housing laws and to prosecute those who engage in criminal discriminatory practices.”
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 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.
Jacksonville Man Sentenced to Federal Prison for Submitting False Claims for Fema Benefits Involving Hurricane IrmaRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Deontres Javan Taylor (27, Jacksonville) to 24 months in federal prison for disaster assistance fraud involving Federal Emergency Management Agency (FEMA) benefits. As part of the sentence, the Court also ordered Taylor to pay restitution to the United States in the amount of $8,083.19.
According to court documents, on September 4, 2017, Taylor, while in Duval County, Florida, made an application for disaster assistance benefits to FEMA. In the application, he claimed that his primary residence in Jacksonville, Florida had suffered storm damage from Hurricane Irma. Taylor stated that storm surge flooded his residence and lightning caused a power surge which resulted in the residence losing power. As a result of these issues, Taylor claimed that he moved to a hotel and needed housing assistance. Based on the false statements made by Taylor in his application for disaster assistance benefits, FEMA paid $8,038.19 in benefits for Taylor.
Further investigation determined that Taylor did not live at the residence listed in his benefits application since at least 2015, nor was he at that residence in any capacity when Hurricane Irma impacted the Jacksonville area. An inspection of the residence by FEMA also determined that it did not suffer storm surge damage or power loss as a result of Hurricane Irma.
“When criminals commit disaster relief fraud, they are victimizing all taxpayers, but more specifically, those directly impacted by the disaster,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “HSI is proud of our partnership with the DHS, Office of Inspector General, in identifying and prosecuting those who attempt to thwart the integrity of the FEMA disaster assistance program.”
This case was investigated by the Department of Homeland Security - Office of Inspector General, with assistance from Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Kevin C. Frein. This case is part of the United States Attorney’s Disaster Fraud Task Force, which was announced in September 2017.
Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. A live operator is available 24 hours a day, 7 days a week. Information may also be faxed to the Center at (225) 334-4707 or emailed to [email protected].
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Oct. 21 was:
Colton James Fredrickson, 35, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Fredrickson faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Fredrickson was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-71.
Appearing on Oct. 20 was:
Michael Paul Nohrenberg, 57, of Ryegate, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Nohrenberg faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. The FBI’s Western Transnational Organized Crime Task Force and the Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-61.
Appearing on Oct. 19 was:
Jeffrey Ryan O’Keefe, 27, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, O’Keefe faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. O’Keefe was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives and Billings Police Department investigated the case. PACER case reference. 21-34.
Appearing on Oct. 18 was:
Cameron Ross Forney, 38, of Billings, on charges of false statement during a firearms transaction and prohibited person in possession of a firearm. If convicted of the most serious crime, Forney faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Forney was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-135.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Oct. 19 was:
Shane William Driscoll, 36, of Whitehall, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Driscoll faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Driscoll was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Probation and Parole Division and Jefferson County Sheriff’s Office investigated the case. PACER case reference. 21-09.
Nicole Ann Lopez, 37, of Great Falls, on charges of wire fraud. If convicted of the most serious crime, Lopez faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Lopez was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-69.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Oct. 21 was:
Dale Robert Johnson, 36, of Butte, on charges of conspiracy to possess with intent to distribute methamphetamine and possession with intent to distribute meth. If convicted of the most serious crime, Johnson faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Johnson was detained pending further proceedings. The Drug Enforcement Administration, Homeland Security Investigations, U.S. Postal Service, Butte Silver Bow Police Department and Montana Division of Criminal Investigation investigated the case. PACER case reference. 21-34.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Native Sentenced for 2019 Attempt Armed Robbery of Uptown CVS Which Resulted in Shooting of NOPD OfficerRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on October 19, 2021 that ALAN PARSON, age 21, a resident of Indianapolis, Indiana, was sentenced in the United States District Court for his participation in the June 17, 2019 robbery of the CVS pharmacy located at 4901 Prytania Street.
United States District Court Judge Greg G. Guidry imposed a sentence to each count of the three-count Indictment to which PARSON plead guilty. In Count One, PARSON was charged with conspiracy to commit a robbery involving a controlled substance, in violation of Title 18, United States Section, 2118. For Count One, the court sentenced PARSON sentenced to a term of imprisonment of 120 months in the Bureau of Prisons. In Count Two, PARSON was charged with armed robbery involving controlled substances in violation of Title 18, United States Sections, 2118(a) and (c)(1). For Count Two, the court sentenced PARSON sentenced to a term of imprisonment of 121 months in the Bureau of Prisons. Count 1 and 2 were ordered to run consecutive with one another. In Count Three, PARSON was charged with discharge of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Section, 924(c)(1)(A)(iii). The Court sentenced PARSON to a term of imprisonment of 120 months for this count. The sentence imposed in Count Three will run consecutive to the sentences imposed in Counts One and Two. Following his term of imprisonment, PARSON will be placed on supervised release for a period of 4 years. A restitution hearing will be held to determine if any restitution is owed to the victims in this case. Finally, PARSON was ordered to pay a $300 mandatory special assessment fee.
At approximately 6:06 a.m., PARSON and his co-defendant, Richard Sansbury entered the 24-hour pharmacy, armed with weapons. Both wore hooded sweatshirts and blue medical gloves. Upon entering the store, Sansbury removed a firearm from his waistband, went behind the front counter, and detained a cashier by using zip-ties. Sansbury led the cashier to another area of the store. PARSON relocated to the rear of the store, in the pharmacy area, and forced another employee to the ground before securing the employee’s feet with zip-ties. PARSON is then filled a large trash bag with several pill bottles that he retrieved from the pharmacy safe. Sansbury relocated to the pharmacy area where he continued to zip-tie the employee’s hands whom PARSON initially detained. Sansbury and PARSON began to exit the store.
Upon exiting the store, PARSON and Sansbury engaged on a shootout with responding officers of the New Orleans Police Department. The confrontation resulted in a bullet wound to one of the officers, who was shot in the shoulder. Video surveillance captured the robbery as it occurred inside of the CVS, as well as the subsequent shootout with police as Sansbury and PARSON fled the store.
United States District Court Judge Greg G. Guidry will sentence SANSBURY on November 30, 2021.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. It is being prosecuted by Assistant United States Attorneys David Haller and Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.
Hinton Man Sentenced to Federal Prison for Possession of Child PornographyRead the Press Release
BECKLEY, W.Va. – David Alan Hunt, 30, of Hinton, was sentenced today to 10 years in prison for possession of child pornography. At the time Hunt possessed the child pornography, he was on supervised release for a 2014 federal child pornography conviction. Hunt was sentenced to an additional two years in prison, to run consecutively to the 10-year sentence, for violating his supervised release.
According to court documents, Hunt possessed child pornography of prepubescent minors on an iPad at his Hinton residence on January 22, 2021. Hunt’s supervising United States Probation Officer recovered the iPad containing the child pornography during a home visit.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the United States Probation Office.
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorneys Kristin F. Scott and Jennifer Rada Herrald 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. 5:21-cr-00075.
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Gordonsville Man Pleads Guilty in Series of 2020 Summertime Armed Robberies of Local BusinessesRead the Press Release
CHARLOTTESVILLE, Va. – A Gordonsville, Virginia man pleaded guilty today to federal Hobbs Act robbery charges in connection to a series of armed robberies that took place at commercial businesses in Charlottesville, Albemarle County, and Stafford County.
According to court documents, Dominique Dejone Thurston, 23, committed a series of armed Hobbs Act robberies at commercial businesses in Albemarle County, the City of Charlottesville, and Stafford County. These robberies included the Oak Hill Market in Albemarle County, the 7-Eleven on Ivy Road in the City of Charlottesville, a BP gas station convenience store in the City of Charlottesville, the 7-Eleven on Greenbrier Drive in Albemarle County, a Kangaroo Gas station in Albemarle County, a 7 Day Junior Store in the City of Charlottesville, and the 7-Eleven on Boulderview Road in Albemarle County. During each robbery, Thurston brandished a firearm while pointing it at a store employee and demanding cash.
“This case serves as a perfect example of when federal, state, and local law enforcement work together to help address violent crime. The U.S. Attorney’s Office for the Western District of Virginia is dedicated to investigating and prosecuting the most violent offenders in our communities,” United States Attorney Christopher R. Kavanaugh said today.
“This investigation is a great example of law enforcement collaboration at its best. ATF is proud to partner with the U.S. Attorney’s Office, the Albemarle County Police Department, the City of Charlottesville Police Department, and the Stafford County Police Department in addressing violent offenders and those that illegally possess firearms,” ATF Special Agent in Charge Charlie J. Patterson said. “The ATF Washington Field Division will continue to stand alongside our partners to ensure our communities are protected against people that commit acts of violence.”
Thurston pleaded guilty today to seven counts of Hobbs Act robbery and two counts of brandishing and possessing a firearm during and in relation to a crime of violence. He is scheduled to be sentenced on January 31, 2022. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation of the case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Albemarle County Police Department, the City of Charlottesville Police Department, the Office of the Commonwealth's Attorney for the City of Charlottesville, and the Stafford County Sheriff’s Office.
Assistant United States Attorney Ronald M. Huber and Special Assistant United States Attorney Nina-Alice Antony with the Office of the Commonwealth's Attorney for the City of Charlottesville are prosecuting the case for the United States.
Fresno Woman Pleads Guilty to Committing $100,000 in Credit Card FraudRead the Press Release
FRESNO, Calif. — Alena Nicole George, 43, of Fresno, pleaded guilty today to access device fraud, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, from February through April 2019, George used a credit card that was fraudulently opened in the identity of a victim with a name similar to her own name to make $100,000 in purchases at national retailers and cash advances at a national bank.
This case is the product of an investigation by the Federal Bureau of Investigation and the U.S. Postal Inspection Service. Assistant U.S. Attorneys Vincente Tennerelli and Joseph Barton are prosecuting the case.
George is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 21, 2022. George faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Spa Owner Sentenced for Using Cosmetic Fillers Not Approved for Distribution in the United StatesRead the Press Release
A woman who operated a Tulsa spa was sentenced today in federal court for using medical devices on her patients that were not approved by the U.S. Food and Drug Administration, announced Acting U.S. Attorney Clint Johnson. The devices are also known as cosmetic fillers.
U.S. District Judge Gregory K. Frizzell sentenced Elisa Kaye Sanders, 62, of Tulsa, to three years of probation. As a condition of her probation, Sanders cannot apply for reinstatement of her nurse’s license for the duration of her sentence. Sanders was further ordered to pay a fine of $25,000.
“U.S. consumers rely on FDA oversight to ensure that the drugs and devices they receive are safe and effective. Rogue health care professionals who obtain foreign unapproved medical products and then dispense and administer them to their patients, put the health of those patients at significant risk,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who choose to put the public’s health at such risk.”
Sanders was a majority owner and operator of L’Chaim Medical Spa, previously known as Enhance Skin and Body Medical Spa. She was originally charged in a 13-count indictment in January 2020 alleging Sanders defrauded clients seeking treatment from her spa; her staff; and state and federal regulatory agencies responsible for the oversight of the spa.
Sanders pleaded guilty on April 30, 2021, to misdemeanor fraud relating to misbranded devices. The defendant admitted that on March 10, 2017, she administered the medical devices Juvederm® Ultra 4 and Juvederm® Ultra with Lidocaine to a patient who, as a result, suffered adverse reactions. These specific devices are not approved by the FDA for distribution in the United States and are considered adulterated under the Food, Drug, and Cosmetic Act. Sanders failed to tell the patient she was using unapproved fillers. The defendant purchased the fillers from unauthorized sources after previously being advised by the FDA that purchasing these prescription devices from unauthorized sources was illegal.
L’Chaim Medical Spa is no longer in operation.
The Food and Drug Administration Office of Criminal Investigations conducted the investigation. Assistant U.S. Attorney Shannon Cozzoni prosecuted the case.
Former Payroll Administrator Sentenced to Eight Years in Prison for Stealing over $1.6 Million from Former EmployerRead the Press Release
WASHINGTON – Eleanor R. Milligan, 61, a longtime payroll administrator from Laurel, Md., was sentenced today to eight years in prison for carrying out a scheme in which she embezzled more than $1.6 million from her former employer.
The announcement was made by Acting U.S. Attorney Channing D. Phillips and Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division.
Milligan was found guilty by a jury in July 2021, following a trial in the U.S. District Court for the District of Columbia, of wire fraud, aggravated identity theft, and first-degree theft. She was sentenced by the Honorable Timothy J. Kelly. The Court also ordered Milligan to pay restitution in the amount of $1,618,082 as well as a forfeiture money judgment in the same amount. Following her prison term, she will be placed on at least three years of supervised release.
According to the government’s evidence at trial, except for brief periods, Milligan worked from 1998 to 2016 for a company based in Washington, D.C. Beginning in at least or about August 2009, and continuing until in or about March 2016, Milligan used her fellow employees’ names and personal identifying identification without authority to transmit false payment requests to herself through the employer’s payroll processing system.
In total, Milligan stole money on more than 500 occasions, totaling $1,618,082. In addition, when she was nearly caught, Milligan created a fake email and mailing address in the name of another employee, whose identity she used to hide her scheme and that she was actually receiving the fraudulent payments herself.
In announcing the sentence, Acting U.S. Attorney Phillips and Special Agent in Charge Jacobs commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD). They commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Chad Byron and Michon Tart, Victim-Witness Service Coordinator Tonya Jones, Supervisory Litigation Technology Specialist Leif Hickling, Litigation Technology Specialist Jeanie Latimore-Brown, and Assistant U.S. Attorneys Diane Lucas and Christine Macey, who prosecuted the case.
Former Madison High School Teacher Sentenced to 12 Years for Secretly Filming StudentsRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, and Wisconsin Attorney General Josh Kaul announced that David M. Kruchten, 39, was sentenced today by U.S. District Judge James Peterson to 12 years in federal prison for attempting to produce obscene depictions of minors engaging in sexually explicit conduct and transporting minors in interstate commerce with the intent to engage in illicit sexual conduct. This term of imprisonment is to be followed by 20 years of supervised release. Kruchten pleaded guilty to these charges on August 16, 2021.
On December 6, 2019, a group of students went to Minneapolis on a school trip arranged by Kruchten. The trip was associated with a school organization and the defendant was one of their advisors and accompanied them on the trip. That evening, one of the students pressed down on an air freshener on the bathroom counter of her hotel room. When she pressed it, the device opened up and was revealed to be a surveillance camera.
After the discovery of the first device, the students started going through their rooms and found additional air fresheners, a smoke detector, two alarm clocks, and several thermostats that were all surveillance devices. Trusting Kruchten, the students turned over all the devices to him that night. He was later seen on hotel video appearing to dispose of the devices in trash cans around the hotel. Kruchten lied to authorities and said he gave the devices to a security guard at the hotel.
During the course of the investigation, multiple students provided pictures and videos that they had taken in their hotel rooms during school trips to the Kalahari Resort in Wisconsin Dells and the Grand Geneva Resort in Lake Geneva. In the photos provided, multiple air freshener type-devices are visible on the bathroom countertops. In the same photos, digital clocks, thermostats, and tissue boxes that were actually recording devices are also visible. The devices could be seen on the counter, on the toilet, and on the wall.
Kruchten used his personal credit card to reserve a suite at the Kalahari Resort in the Wisconsin Dells for trips in 2018 and 2019. He also determined which of the students stayed in this upgraded room. The photos and videos provided to law enforcement by the minors who stayed in the upgraded rooms showed numerous recording devices in each bathroom of the suite. He also rented a room at another Wisconsin resort for a babysitter. Photos she took of the bathroom also showed multiple recording devices in the bathroom.
At sentencing, numerous victims and their parents told the Court how Kruchten’s crimes had affected them and their families. Victims reported betrayal, sadness, and anger. Some reported fear showering in hotels and checking air fresheners in public bathrooms to ensure they were not recording devices. Parents also reported betrayal and guilt for allowing their children to go on trips with the defendant.
Judge Peterson thanked the victims and families for their courage and for letting him know through their statements how much the crime impacted the victims, their families, and the community. Judge Peterson also told the victims that the defendant took advantage of their good qualities and that they were not at fault.
In sentencing the defendant, Judge Peterson found Kruchten engaged in “sustained and masterful manipulation” and exploited the fact that he was a beloved teacher. Judge Peterson also found that the defendant was either lying to the Court or self-delusional in denying that his crime was sexually motivated.
The charges against Kruchten were the result of an investigation conducted by the Wisconsin Department of Justice Division of Criminal Investigation, the Minneapolis Police Department, and the Cottage Grove Police Department, with assistance from the Wisconsin Attorney General’s Office. Assistant U.S. Attorneys Elizabeth Altman and Laura Przybylinski Finn prosecuted this case.
Former Bank Teller Sentenced for Role in Bank Fraud ConspiracyRead the Press Release
BOSTON – A former bank teller was sentenced yesterday in federal court in Boston for her role in a scheme to fraudulently obtain funds from customer bank accounts.
Valnardia Novas, 25, of Framingham, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to one year of home confinement and two years of supervised release. Novas was also ordered to pay restitution of $341,433 and forfeiture of $27,900. On Dec. 10, 2020, Novas pleaded guilty to one count of bank fraud conspiracy.
This case was the result of a larger investigation into multiple schemes to withdraw funds, in the form of checks and cash, from customer accounts at several financial institutions. The organizers of the scheme paid individuals to go into banks with falsified identification documents in the names of bank customers and request withdrawals from those customers’ accounts. Bank tellers were also recruited to accept the falsified identification documents without scrutiny and facilitate the withdrawals. The fraudulently-obtained funds were then negotiated through accounts at other financial institutions that had been opened in the names of fictitious business entities.
Novas was a bank teller at TD Bank and was paid to participate in this scheme. In September and October 2017, co-conspirators instructed Novas to fraudulently withdraw more than $300,000 in the form of bank checks and cash.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorneys Leslie A. Wright and Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Federal Jury Convicts Gang Member of Drugs and Gun CrimesRead the Press Release
Tampa, Florida – A federal jury has found Keon Moore (29, Tampa) guilty of possessing a firearm or ammunition as a convicted felon and possessing controlled substances with the intent to distribute them. Moore faces a minimum mandatory penalty of 5 years, and up to, 40 years in federal prison. His sentencing hearing is scheduled for January 6, 2022.
Moore had been indicted on June 4, 2020.
According to testimony and evidence presented at trial, Moore is a convicted felon who stored guns and drugs for use by himself and others, sold guns and drugs, and threatened violence to collect drug debts. In one of Moore’s private Facebook communications, a person to whom Moore provided drugs on consignment, but who failed to pay on time, begged Moore not to kill him via drive-by shooting over the $90 he owed.
The charges and trial revolved around a Public Storage unit rented by Moore, but used by at least one other adult male. After a drug-detecting dog alerted to Moore’s unit, law enforcement officers executed a search warrant of the unit. Inside the otherwise empty 50 square-foot unit, officers found seven guns, including two assault rifles; ammunition; approximately 45 grams of pure methamphetamine; 34 grams of cocaine, 53 grams of Eutylone, and 1.6 kilograms of marijuana, among other drugs; and a clothing item containing Moore’s DNA.
Moore is a previously convicted felon, including multiple state burglary and drug possession convictions. As such, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the FBI, the Hillsborough County Sheriff’s Office, the Florida Department of Law Enforcement, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Michael M. Gordon.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Federal Grand Jury Indicts Four IndividualsRead the Press Release
PEORIA, Ill. – A federal grand jury returned indictments on October 19, 2021, against the following individuals:
Alante Malik Jackson, 22, of Peoria, Illinois, was charged with possession of a firearm by a felon. The offense occurred September 20, 2021, in Peoria County. The Peoria Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case. Jackson remains in federal custody.
John W. Beck, 54 – currently in federal custody on two counts of interference with commerce by robbery, one count of bank robbery, and one count of armed bank robbery and was charged with attempted escape in September 2021 from the Livingston County Jail in Pontiac, Illinois. The Federal Bureau of Investigation, Springfield Office, investigated the case.
Monica Renee Wright, 38, of Colorado Springs, Colorado, was charged in a superseding indictment with conspiracy to distribute and possess with intent to distribute at least 50 grams of actual methamphetamine, a Schedule II controlled substance, and at least 500 grams of a mixture and substance containing methamphetamine. The offense occurred during or about June 2016 and continued through about March 2017. The Drug Enforcement Administration investigated the case. Wright has been released on bond.
Daniel Allee, 42, of Vinton, Iowa, was charged with travel with intent to engage in illicit sexual conduct. The indictment alleges that Allee traveled interstate to engage in illicit sexual conduct with a person he believed to be under the age of 18 on or about October 6, 2021. The Federal Bureau of Investigation, Springfield Office, investigated the case, and Allee was arrested in Moline, Illinois, on that same date. He remains in the custody of the U.S. Marshals Service.
The U.S. District Court for the Central District of Illinois will schedule a date for the appearance of the defendants.
Members of the public are reminded that an indictment is merely an accusation; the defendants are presumed innocent unless proven guilty.
Ex-chairwoman of Montana Native Women’s Coalition sentenced for stealing federal grant fundsRead the Press Release
BILLINGS — The former chairwoman of the Montana Native Women’s Coalition was sentenced today for conviction at trial of stealing federal grant funds for unapproved travel to Las Vegas, Nevada, and other unauthorized expenses, Acting U.S. Attorney Leif M. Johnson said.
Meredith McConnell, 52, of Lame Deer, was found guilty on April 2 at trial by a federal jury on all counts in a superseding indictment, including theft from a program receiving federal funding, wire fraud and false claims.
McConnell faced a possible sentence of 20 years in prison for wire fraud. The government requested a sentence within the guideline range of 12 months to 18 months in prison, and the court sentenced McConnell to four years of probation and ordered $29,114 restitution jointly and severally with co-defendant Sheryl Lynn Lawrence.
U.S. District Judge Susan P. Watters presided.
“As chairwoman of the Montana Native Women’s Coalition, McConnell was entrusted with the responsibility of using federal money to help domestic violence victims on Montana’s Indian reservations. McConnell even received training on how not to commit fraud. Yet, she committed fraud anyway and used the money for her own benefit. Those who misuse grant funds will be held accountable and prosecuted. I want to thank Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake and the Department of Justice Office of the Inspector General for investigating and prosecuting this case.”
“McConnell stole grant funds that were meant to help Native American victims of domestic and sexual violence. Today’s sentencing shows that those who steal federal grant funds will be brought to justice,” said Douglas B. Bruce, Special Agent in Charge of the Department of Justice Office of the Inspector General Denver Field Office.
In court documents and in evidence presented at trial, the government alleged that beginning in about August 2017, McConnell, along with others, misappropriated federal grant funds to give cash payments to others, to buy purses and earrings as door prizes, to meet in Las Vegas, a trip that cost $31,744, and to receive double payments for meals. Prosecutors alleged that during a four-month period, McConnell was responsible in the misappropriation of more than 10 percent of grant funds designed to help victims of domestic violence Montana’s Indian reservations.
The thefts occurred four months after McConnell and other board officials participated in training about conflicts of interest, whistleblower policies, ethics and financial oversight. The training came after the Coalition’s previous executive director, Toni Plummer, was convicted of fraud in March 2017 for stealing approximately $246,000 from the organization.
The Coalition is a Lame Deer-based organization that helps Native American victims of domestic and sexual violence. The Coalition receives funding from the U.S. Department of Justice’s Office on Violence Against Women (OVW), which provides grants for victim services. OVW awarded the Coalition $318,008 from October 1, 2017 to September 30, 2018.
Co-defendants Sheryl Lynn Lawrence, of Colstrip, who was the Coalition’s executive director, and Barbara Mary Daychief, of Browning, who was a Coalition board member, each pleaded guilty to theft of federal funds. Lawrence was sentenced to three years of probation and ordered to pay $35,127 restitution jointly and severally with McConnell. Daychief was sentenced to two years of probation and ordered to be solely liable for $2,973 restitution.
Assistant U.S. Attorneys Ryan G. Weldon and Bryan T. Dake prosecuted the case, which was investigated by Department of Justice Office of the Inspector General.
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Elkton Fentanyl Drug Dealer Pleads Guilty to Fentanyl Distribution Charges Relating to A Fatal OverdoseRead the Press Release
Baltimore, Maryland – Robert Allen Valladares, age 37, of Elkton, Maryland, pleaded guilty yesterday to distribution of fentanyl, and two counts of possession with intent to distribute fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Cecil County State’s Attorney James A. Dellmyer; Cecil County Sheriff Scott Adams; and Chief Carolyn Rogers of the Elkton Police Department.
According to his guilty plea, in December 2019, the Cecil County Drug Task Force received information from a confidential informant that identified Valladares as a Cecil County controlled substances dealer acting under the alias of “Rob Valley” and provided his cell phone number.
On February 8, 2020, the Elkton Police Department was dispatched to a residence in reference to an overdose death. Upon arrival, an officer made contact with the victim’s father who stated that his son was deceased in his bedroom from, what he believed to be, an overdose. Emergency medical services arrived and pronounced the victim deceased shortly after.
Within the victim’s bedroom, officers located two empty wax bags stamped “Facetime” laying on the victim’s bed, an uncapped syringe that appeared to contain blood in it, and four cell phones. According to the victim’s family, the victim was recently discharged from a recovery house and appeared to be recovering well.
The victim’s father then informed officers that the night before the victim’s death, the victim asked his father to take him to his friend “Rob’s” house to obtain suboxone strips. The victim’s father knew Valladares and had meet him previously. Once the victim’s father drove him to Valladares’ residence, the victim went inside for approximately two minutes and returned to his father’s vehicle.
An autopsy performed on the victim’s body revealed the cause of death to be a mixed drug intoxication of acyrl fentanyl, fentanyl, desproprionyl fentanyl, methamphetamine and xylazine.
A subsequent forensic data extraction of the victim’s four cell phones revealed that the victim had called Valladares one day before his death and texted Valladares that his father was bringing him to his residence, and that they had to “keep it on the low”.
As stated in his plea agreement, on February 13, 2020, investigators executed a search warrant on Valladares’ residence. As a result of the search warrant, investigators seized prescription alprazolam pills, a digital scale, mail addressed to Valladares, five blue wax bags stamped “Facetime” containing suspected fentanyl, additional empty blue wax bags stamped “Facetime,” and a cell phone. Analysis of three of the blue wax bags stamped “Facetime” revealed the substance to be fentanyl.
A subsequent forensic data extraction of Valladares’ cell phone revealed that it contained over 80,000 text messages and messages consistent with the distribution and sale of controlled substances.
On May 4, 2020, a traffic stop was conducted on a vehicle leaving the Valladares residence. A K-9 scan resulted in the discovery of baggies containing fentanyl in the car. The driver advised that he had been purchasing drugs from Valladares for the past three to four months. Analysis of the substance within the bags seized from the car was confirmed to be fentanyl.
On May 19, 2020, a search warrant was executed at Valladares’ Elkton, Maryland residence. Valladares was detained at the front door of the residence. A search of the house yielded 38 bags of fentanyl. Valladares admits that he possessed the fentanyl with the intent to distribute it.
Valladares and the government have agreed that, if the Court accepts the plea agreement, Valladares will be sentenced to between 132 months and 168 months in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for January 7, 2022 at 2 p.m.
United States Attorney Erek L. Barron commended the Maryland State Police, Office of the State’s Attorney for Cecil County, Cecil County Sheriff’s Office, and the Elkton Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Kim Y. Oldham and Mary W. Setzer, who are prosecuting the case.
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El Departamento de Justicia anuncia una nueva iniciativa para combatir la exclusión financieraRead the Press Release
El Departamento de Justicia anunció hoy el lanzamiento de la nueva iniciativa del Departamento para combatir la exclusión financiera (“redlining” en inglés). La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios a individuos que viven en comunidades de color por motivos de la raza o el origen nacional de las personas que viven en esas comunidades. La nueva Iniciativa representa el esfuerzo de aplicación de la ley más agresivo y coordinado del Departamento que aborde el tema de la exclusión financiera, cosa que, en virtud de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, está prohibida.
«La discriminación en el ámbito crediticio va en contra de promesas fundamentales de nuestro sistema económico», declaró el Fiscal General Merrick B. Garland. «Cuando se les niega a las personas un préstamo simplemente por motivos de su raza u origen nacional, su capacidad de participar en la prosperidad de nuestra nación prácticamente se elimina. Hoy, nos estamos comprometiendo a abordar la exclusión financiera moderna al hacer un uso mucho más robusto de nuestras autoridades de préstamos justos. No escatimaremos ningún recurso en nuestra lucha por garantizar que las leyes de préstamos justos se hagan cumplir con firmeza y que las instituciones financieras proporcionen a cada estadounidense la igualdad de oportunidades de obtener un préstamo».
«Si queremos asegurar que los bancos y prestamistas brinden la igualdad de acceso a oportunidades crediticias a comunidades de color, es esencial hacer cumplir nuestras leyes de préstamos justos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acceso igualitario y justo a oportunidades de crédito hipotecario es la piedra angular en la cual las familias y comunidades pueden crear riqueza en nuestro país. Todos sabemos muy bien que la exclusión financiera no constituye un problema de otra época sino una práctica que sigue siendo dominante en la industria crediticia de hoy. Nuestra nueva Iniciativa debe trasmitir un mensaje claro a los bancos y prestamistas que nosotros les haremos rendir cuentas de sus acciones a medida que trabajemos por combatir prácticas crediticias que discriminan con base en la raza u origen nacional de uno».
La exclusión financiera, una práctica institucionalizada por el Gobierno federal durante la época del New Deal e implementada en aquel entonces y hoy día por prestamistas privados, ha tenido un impacto negativo duradero. Para las familias estadounidenses, el ser propietario de una vivienda sigue siendo la forma principal de crear riqueza, y la privación de inversión en y acceso a servicios de crédito hipotecario en las comunidades de color ha contribuido a tasas continuamente más bajas entre las comunidades de color de propietarios de viviendas y patrimonio neto, en comparación con familias blancas. La brecha en las tasas de propietarios entre las familias blancas y las negras es más ancha hoy que en 1960, antes de la aprobación de la ley de Vivienda Justa de 1968.
Esta Iniciativa, que será dirigida por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles, en asociación con las Fiscalías Federales, empleará como base el trabajo de muchos años de la División cuya meta es convertir a los préstamos hipotecarios y la posibilidad de ser propietario en algo al que todo estadounidense pueda acceder bajo los mismos términos, independientemente de su raza u origen nacional e independientemente del barrio en el que vive. La Iniciativa:
- Utilizará las Fiscalías Federales como fuerzas multiplicadoras para garantizar que la aplicación de las leyes de préstamos justos sea informada por pericia local en los mercados inmobiliarios y las necesidades crediticias de comunidades locales de color.
- Expandirá los análisis del Departamento de posibles casos de exclusión financiera a tanto las instituciones depositarias como a las no depositarias. Los prestamistas no depositarios no son bancos tradicionales y no prestan servicios bancarios típicos pero conceden préstamos hipotecarios y actualmente son los responsables de la mayoría de las hipotecas en este país.
- Fortalecerá nuestra asociación con agencias reguladoras financieras con el fin de garantizar la identificación de infracciones de las leyes de préstamos justos y la referencia de las mismas al Departamento de Justicia.
- Aumentará la coordinación con Fiscales Generales Estatales en lo que se refiere a posibles infracciones de las leyes de préstamos justos.
El acuerdo con Trustmark National Bank
Además del anuncio de hoy del lanzamiento de la Iniciativa, el Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Tennessee, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y la Oficina del Contralor de la Moneda (OCC, por sus siglas en inglés) anunciaron un acuerdo para resolver alegatos de que Trustmark National Bank había discriminado en el ámbito crediticio al practicar la exclusión financiera contra barrios en Memphis, Tennessee cuyos residentes son principalmente negros e hispanos.
La orden de consentimiento propuesta de las partes se presentó hoy en combinación con una demanda ante el Tribunal Federal de Distrito para el Distrito Oeste de Tennessee. La demanda alega que Trustmark National Bank vulneró la ley de Vivienda Justa y la Ley de Igualdad de Oportunidades Crediticias, las cuales prohíbe que las instituciones financieras discriminen por motivos de raza, color de piel u origen nacional en la provisión de sus servicios de crédito hipotecario. Más aún, la demanda alega que Trustmark National Bank vulneró la ley de Protección Financiera del Consumidor, que prohíbe la oferta o provisión a un consumidor de productos o servicios financieros de una manera que no esté en conformidad con las leyes federales financieras destinadas a los consumidores.
En concreto, la demanda alega que, entre el 2014 y el 2018, Trustmark practicó exclusión financiera ilícita en Memphis al evitar barrios cuyos residentes son principalmente negros e hispanos, por motivos de la raza, el color de piel y el origen nacional de las personas que vivían en esos barrios o que pedían un préstamo para propiedades ubicadas en los mismos. Por otra parte, la demanda alega que las sucursales de Trustmark estaban concentradas en barrios de mayoría blanca, que los oficiales de crédito del banco no satisfacían las necesidades crediticias de barrios de mayoría negra o hispana, que los esfuerzos de extensión comunitaria y mercadeo de Trustmark esquivaban esos barrios y que los procedimientos y políticas internos de Trustmark de préstamos justos no eran suficientes como para garantizar que el banco brindara la igualdad de acceso al crédito a las comunidades de color.
El Departamento inició su investigación después de que uno de los reguladores de Trustmark, la OCC, refirió el asunto. Trustmark ha cooperado plenamente en esta investigación y resolvió los alegatos de forma amigable.
«Trustmark excluyó y discriminó, de manera intencional, a comunidades negras e hispanas», declaró Rohit Chopra, el director de la Oficina para la Protección Financiera del Consumidor. «El Gobierno federal luchará por eliminar prácticas empresariales racistas en el mercado, incluyendo aquellas provenientes de algoritmos discriminatorios».
«Para muchas familias estadounidenses, el ser propietario de una vivienda es el fundamento del éxito económico», comentó el Fiscal Federal Interino para el Distrito Oeste de Tennessee, Joseph C. Murphy Jr. «Las prácticas de préstamos justos que se requieren en virtud de las leyes federales, así como la aplicación de dichas leyes, garantizan un mejor futuro para todo estadounidense. Nuestra oficina cree que medidas de aplicación de la ley de esta naturaleza son primordiales para un sistema de préstamos justos que beneficia a todos y seguiremos dando prioridad a estos casos».
«Desde hace mucho tiempo, la OCC ha tenido una sólida asociación con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia: ha referido posibles infracciones de las leyes de préstamos justos y hemos compartido nuestros hallazgos extensos de los equipos examinadores, economistas y legales, tal y como hemos hecho en el caso de Trustmark», indicó el Contralor Interino de la Moneda, Michael J. Hsu. «El anuncio de hoy es importante porque representa el enfoque unificado y absoluto que cada una de nuestras agencias ha dedicado a la aplicación de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito. Nuestros esfuerzos colectivos son esenciales al abordaje de las prácticas crediticias discriminatorias que crean y refuerzan la inequidad racial en el sistema financiero».
Conforme la orden de consentimiento propuesto:
- Trustmark invertirá $3.85 millones en un fondo de préstamos subsidiados para incrementar las oportunidades crediticias para residentes actuales y futuros de barrios cuyos residentes son principalmente negros e hispanos en la zona de Memphis; dedicará al menos cuatro oficiales de crédito hipotecario o especialistas en préstamos comunitarios a estos barrios y abrirá una oficina de producción crediticia en un barrio de Memphis cuyos residentes son principalmente negros o hispanos.
- Trustmark dedicará $400,000 al desarrollo de asociaciones comunitarias para la prestación de servicios a residentes de barrios de Memphis que son principalmente negros e hispanos que mejorarán el acceso al crédito hipotecario residencial.
- Por otra parte, Trustmark dedicará al menos $200,000 por año a iniciativas de publicidad, proyección comunitaria, educación financiera del consumidor y reparación del crédito en Memphis y sus alrededores.
- Trustmark pagará a la OCC y la CFPB una sanción civil monetaria que asciende, en su totalidad, a $5 millones.
- Trustmark ya ha establecido un Comité de Supervisión de las Leyes de Préstamos Justos y ha designado un Gestor de Crédito Comunitario que supervisará estos esfuerzos y trabajará estrechamente con el liderazgo del banco.
En agosto del 2021, el Departamento anunció un acuerdo con Cadence Bank por motivos de exclusión financiera. Conforme al acuerdo, Cadence invertirá más de $5.5 millones para mejorar las oportunidades crediticias de residentes de barrios de Houston que son principalmente negros e hispanos.
Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
El Departamento de Justicia anuncia una nueva iniciativa para combatir la exclusión financieraRead the Press Release
El Departamento de Justicia anunció hoy el lanzamiento de la nueva iniciativa del Departamento para combatir la exclusión financiera (“redlining” en inglés). La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios a individuos que viven en comunidades de color por motivos de la raza o el origen nacional de las personas que viven en esas comunidades. La nueva Iniciativa representa el esfuerzo de aplicación de la ley más agresivo y coordinado del Departamento que aborde el tema de la exclusión financiera, cosa que, en virtud de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, está prohibida.
«La discriminación en el ámbito crediticio va en contra de promesas fundamentales de nuestro sistema económico», declaró el Fiscal General Merrick B. Garland. «Cuando se les niega a las personas un préstamo simplemente por motivos de su raza u origen nacional, su capacidad de participar en la prosperidad de nuestra nación prácticamente se elimina. Hoy, nos estamos comprometiendo a abordar la exclusión financiera moderna al hacer un uso mucho más robusto de nuestras autoridades de préstamos justos. No escatimaremos ningún recurso en nuestra lucha por garantizar que las leyes de préstamos justos se hagan cumplir con firmeza y que las instituciones financieras proporcionen a cada estadounidense la igualdad de oportunidades de obtener un préstamo».
«Si queremos asegurar que los bancos y prestamistas brinden la igualdad de acceso a oportunidades crediticias a comunidades de color, es esencial hacer cumplir nuestras leyes de préstamos justos», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El acceso igualitario y justo a oportunidades de crédito hipotecario es la piedra angular en la cual las familias y comunidades pueden crear riqueza en nuestro país. Todos sabemos muy bien que la exclusión financiera no constituye un problema de otra época sino una práctica que sigue siendo dominante en la industria crediticia de hoy. Nuestra nueva Iniciativa debe trasmitir un mensaje claro a los bancos y prestamistas que nosotros les haremos rendir cuentas de sus acciones a medida que trabajemos por combatir prácticas crediticias que discriminan con base en la raza u origen nacional de uno».
La exclusión financiera, una práctica institucionalizada por el Gobierno federal durante la época del New Deal e implementada en aquel entonces y hoy día por prestamistas privados, ha tenido un impacto negativo duradero. Para las familias estadounidenses, el ser propietario de una vivienda sigue siendo la forma principal de crear riqueza, y la privación de inversión en y acceso a servicios de crédito hipotecario en las comunidades de color ha contribuido a tasas continuamente más bajas entre las comunidades de color de propietarios de viviendas y patrimonio neto, en comparación con familias blancas. La brecha en las tasas de propietarios entre las familias blancas y las negras es más ancha hoy que en 1960, antes de la aprobación de la ley de Vivienda Justa de 1968.
Esta Iniciativa, que será dirigida por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles, en asociación con las Fiscalías Federales, empleará como base el trabajo de muchos años de la División cuya meta es convertir a los préstamos hipotecarios y la posibilidad de ser propietario en algo al que todo estadounidense pueda acceder bajo los mismos términos, independientemente de su raza u origen nacional e independientemente del barrio en el que vive. La Iniciativa:
- Utilizará las Fiscalías Federales como fuerzas multiplicadoras para garantizar que la aplicación de las leyes de préstamos justos sea informada por pericia local en los mercados inmobiliarios y las necesidades crediticias de comunidades locales de color.
- Expandirá los análisis del Departamento de posibles casos de exclusión financiera a tanto las instituciones depositarias como a las no depositarias. Los prestamistas no depositarios no son bancos tradicionales y no prestan servicios bancarios típicos pero conceden préstamos hipotecarios y actualmente son los responsables de la mayoría de las hipotecas en este país.
- Fortalecerá nuestra asociación con agencias reguladoras financieras con el fin de garantizar la identificación de infracciones de las leyes de préstamos justos y la referencia de las mismas al Departamento de Justicia.
- Aumentará la coordinación con Fiscales Generales Estatales en lo que se refiere a posibles infracciones de las leyes de préstamos justos.
El acuerdo con Trustmark National Bank
Además del anuncio de hoy del lanzamiento de la Iniciativa, el Departamento de Justicia, la Fiscalía Federal para el Distrito Oeste de Tennessee, la Oficina para la Protección Financiera del Consumidor (CFPB, por sus siglas en inglés) y la Oficina del Contralor de la Moneda (OCC, por sus siglas en inglés) anunciaron un acuerdo para resolver alegatos de que Trustmark National Bank había discriminado en el ámbito crediticio al practicar la exclusión financiera contra barrios en Memphis, Tennessee cuyos residentes son principalmente negros e hispanos.
La orden de consentimiento propuesta de las partes se presentó hoy en combinación con una demanda ante el Tribunal Federal de Distrito para el Distrito Oeste de Tennessee. La demanda alega que Trustmark National Bank vulneró la ley de Vivienda Justa y la Ley de Igualdad de Oportunidades Crediticias, las cuales prohíbe que las instituciones financieras discriminen por motivos de raza, color de piel u origen nacional en la provisión de sus servicios de crédito hipotecario. Más aún, la demanda alega que Trustmark National Bank vulneró la ley de Protección Financiera del Consumidor, que prohíbe la oferta o provisión a un consumidor de productos o servicios financieros de una manera que no esté en conformidad con las leyes federales financieras destinadas a los consumidores.
En concreto, la demanda alega que, entre el 2014 y el 2018, Trustmark practicó exclusión financiera ilícita en Memphis al evitar barrios cuyos residentes son principalmente negros e hispanos, por motivos de la raza, el color de piel y el origen nacional de las personas que vivían en esos barrios o que pedían un préstamo para propiedades ubicadas en los mismos. Por otra parte, la demanda alega que las sucursales de Trustmark estaban concentradas en barrios de mayoría blanca, que los oficiales de crédito del banco no satisfacían las necesidades crediticias de barrios de mayoría negra o hispana, que los esfuerzos de extensión comunitaria y mercadeo de Trustmark esquivaban esos barrios y que los procedimientos y políticas internos de Trustmark de préstamos justos no eran suficientes como para garantizar que el banco brindara la igualdad de acceso al crédito a las comunidades de color.
El Departamento inició su investigación después de que uno de los reguladores de Trustmark, la OCC, refirió el asunto. Trustmark ha cooperado plenamente en esta investigación y resolvió los alegatos de forma amigable.
«Trustmark excluyó y discriminó, de manera intencional, a comunidades negras e hispanas», declaró Rohit Chopra, el director de la Oficina para la Protección Financiera del Consumidor. «El Gobierno federal luchará por eliminar prácticas empresariales racistas en el mercado, incluyendo aquellas provenientes de algoritmos discriminatorios».
«Para muchas familias estadounidenses, el ser propietario de una vivienda es el fundamento del éxito económico», comentó el Fiscal Federal Interino para el Distrito Oeste de Tennessee, Joseph C. Murphy Jr. «Las prácticas de préstamos justos que se requieren en virtud de las leyes federales, así como la aplicación de dichas leyes, garantizan un mejor futuro para todo estadounidense. Nuestra oficina cree que medidas de aplicación de la ley de esta naturaleza son primordiales para un sistema de préstamos justos que beneficia a todos y seguiremos dando prioridad a estos casos».
«Desde hace mucho tiempo, la OCC ha tenido una sólida asociación con la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles del Departamento de Justicia: ha referido posibles infracciones de las leyes de préstamos justos y hemos compartido nuestros hallazgos extensos de los equipos examinadores, economistas y legales, tal y como hemos hecho en el caso de Trustmark», indicó el Contralor Interino de la Moneda, Michael J. Hsu. «El anuncio de hoy es importante porque representa el enfoque unificado y absoluto que cada una de nuestras agencias ha dedicado a la aplicación de la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito. Nuestros esfuerzos colectivos son esenciales al abordaje de las prácticas crediticias discriminatorias que crean y refuerzan la inequidad racial en el sistema financiero».
Conforme la orden de consentimiento propuesto:
- Trustmark invertirá $3.85 millones en un fondo de préstamos subsidiados para incrementar las oportunidades crediticias para residentes actuales y futuros de barrios cuyos residentes son principalmente negros e hispanos en la zona de Memphis; dedicará al menos cuatro oficiales de crédito hipotecario o especialistas en préstamos comunitarios a estos barrios y abrirá una oficina de producción crediticia en un barrio de Memphis cuyos residentes son principalmente negros o hispanos.
- Trustmark dedicará $400,000 al desarrollo de asociaciones comunitarias para la prestación de servicios a residentes de barrios de Memphis que son principalmente negros e hispanos que mejorarán el acceso al crédito hipotecario residencial.
- Por otra parte, Trustmark dedicará al menos $200,000 por año a iniciativas de publicidad, proyección comunitaria, educación financiera del consumidor y reparación del crédito en Memphis y sus alrededores.
- Trustmark pagará a la OCC y la CFPB una sanción civil monetaria que asciende, en su totalidad, a $5 millones.
- Trustmark ya ha establecido un Comité de Supervisión de las Leyes de Préstamos Justos y ha designado un Gestor de Crédito Comunitario que supervisará estos esfuerzos y trabajará estrechamente con el liderazgo del banco.
En agosto del 2021, el Departamento anunció un acuerdo con Cadence Bank por motivos de exclusión financiera. Conforme al acuerdo, Cadence invertirá más de $5.5 millones para mejorar las oportunidades crediticias de residentes de barrios de Houston que son principalmente negros e hispanos.
Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.
Asunto(s):
Derechos Civiles
Componente(s):
División de Derechos Civiles
Sección de Vivienda y Cumplimiento de la Ley Civil
Fiscalía General
Fiscalía Federal
Duplin County Man Receives More Than 12 Years in Federal Prison for Methamphetamine Trafficking and Possession of Sawed-Off ShotgunsRead the Press Release
WILMINGTON, N.C. – Alexander Hawes, 36, of Duplin County, North Carolina, was sentenced yesterday to 145 months in prison for conspiracy to possess with intent to distribute and distribution of 50 grams or more of a substance containing methamphetamine, possession with intent distribute a quantity of methamphetamine, two counts of possession of a firearm in furtherance of a drug trafficking crime, and two counts of possession of a sawed-off shotgun.
According to court documents, evidence presented in court, and other documents, on July 17, 2020 and again on August 4, 2020 the Duplin County Sheriff’s Office made controlled purchases of methamphetamine from Hawes in Rose Hill. Hawes had a handgun during each of these deals.
On August 29, 2020, the Duplin County Narcotics Unit served a search warrant at Hawes’ residence in Rose Hill. Law enforcement recovered a fully automatic rifle with a high-capacity magazine, a small amount of methamphetamine, and a sawed-off shotgun. Law enforcement also found “buy money” from a controlled purchase that Duplin County had made from Hawes two days earlier.
The Duplin County Narcotics Unit working with the Drug Enforcement Administration arrested Hawes at his residence in Rose Hill on December 9, 2020. Hawes had a loaded handgun and rifle on his person. Law enforcement searched his residence and found another fully automatic weapon with a high-capacity magazine, 43 grams of methamphetamine, and another sawed-off shotgun.
During the course of the investigation, law enforcement was able to determine that Hawes was responsible for possessing with the intent to distribute and distributing almost a kilogram of methamphetamine.
This is part of operation “Fighting Jelly Fish” which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco and Firearms, the Drug Enforcement Administration, and the Duplin County Sheriff’s Office investigated the case and Assistant U.S. Attorney Timothy Severo prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 21-CR-00048-M.
Drug supplier who sold deadly fentanyl sentenced to 5+ years in prisonRead the Press Release
Seattle – A prolific drug trafficker, who sold deadly fentanyl-tainted pills, was sentenced this week in U.S. District Court in Seattle to 66 months in prison and three years of supervised release. Raoul V. Normandia, Jr., 30, was arrested April 24, 2020, near his Federal Way, Washington, residence. At his sentencing hearing U.S. District Judge Robert S. Lasnik said Normandia, “was a drug dealer…. He was making a large amount of money selling drugs…. It was a pattern of criminal activity that he chose to do.”
“Fentanyl-tainted pills are flooding Western Washington and resulting in record high overdose rates and deaths,” said U.S. Attorney Nick Brown. “Fatal fentanyl overdoses are up 82% in the first six months of 2021 as compared to 2020. We must do all we can to stop the distribution of these pills. They are made to look like oxycodone but are far more powerful and deadly.”
The investigation in this case began April 18, 2020, when a Navy sailor was found dead in his workspace aboard a Navy ship. In his pocket were two counterfeit pills that were laced with fentanyl. The Naval Criminal Investigative Services (NCIS) were able to identify former Navy sailor Ivan Armenta, 21, as the sailor who provided the pills to the sailor who died. Armenta had distributed the pills to three other sailors as well: Two became ill and one was revived by Narcan. Armenta was sentenced to 4 years in prison last month.
The investigation into the source of the pills revealed Chase Friedrich, 29, had supplied the pills to Armenta. He was arrested April 21, 2020, at his Des Moines, Washington, apartment. A search of Friedrich’s apartment revealed cocaine, a handgun, and a bag of approximately 100 counterfeit pills. Friedrich pleaded guilty in May 2021, and today he was sentenced to 3 years in prison and 3 years of supervised release.
Investigators determined that Raoul Normandia had supplied the pills to Friedrich. Law enforcement arrested Normandia in his car a few blocks from his Federal Way residence. In his vehicle was cocaine. During a court‑authorized search of Normandia’s residence, law enforcement recovered cocaine, MDMA, firearms (including an assault rifle), ammunition, body armor, narcotics, and various signs of the drug trade, including scales, baggies, heat sealers, Moneygram receipts, and twenty cell phones.
Normandia pleaded guilty in April 2021 to conspiracy to distribute fentanyl, possession of MDMA and cocaine with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime.
In asking for a 7-year prison sentence, prosecutors wrote to the court, “Counterfeit prescription pills containing fentanyl… pose a unique and substantial danger of overdose. The fact that these pills are manufactured to look like a Precocet increases the likelihood that they will be taken not only by those who intend to take fentanyl, but also by individuals who believe they are taking nothing more potent than an oxycodone. This danger is particularly acute in light of the fact that fentanyl cannot be detected by smell or taste, and someone cannot tell if there is fentanyl in a pill merely by looking at it.”
Judge Lasnik noted that it is the families of the sailor who died, and of the defendants, who suffer from the conduct. “There is so much tragedy in this case…. There’s four families that are rendered to their knees by these actions,” the Judge said. Judge Lasnik said he reduced Normandia’s sentence, in part, because Normandia has been in custody throughout the pandemic -- suffering with the illness and through long-term lockdowns in the Bureau of Prisons.
The case was investigated by NCIS and the Kitsap County Sheriff’s Office as a part of the West Sound Narcotics Enforcement Team (WestNET) and was prosecuted by Assistant United States Attorney Lyndsie Schmalz.
Doctor and Owner of Medical Practice Indicted for Health Care FraudRead the Press Release
TUCSON, Ariz. – On Wednesday, a federal grand jury returned a fifty-count indictment, charging Linh Cao Nguyen, M.D., 48, of Peoria, Arizona, with Health Care Fraud, False Statements Relating to a Health Care Matter, and Aggravated Identity Theft.
Dr. Nguyen ran a mobile multi-specialty medical practice that primarily treated patients in their homes and living facilities throughout Phoenix and Tucson, Arizona. The indictment alleges that for over a decade, Dr. Nguyen, through his practice, engaged in a health care fraud scheme by submitting false claims to health care insurance programs for medical services: (1) that identified a physician as the rendering provider when Dr. Nguyen knew that the service was not completed by a physician and did not qualify for reimbursement as a physician; (2) that were not medically necessary; (3) that were billed at a higher complexity level than the actual level of care provided; and (4) that were not performed as the only legitimate service rendered was a Covid vaccination. The indictment also alleges that Dr. Nguyen created false medical records to conceal and avoid detection of his fraudulent billing practices. During the timeframe of the indictment, Dr. Nguyen, through his medical practice, is alleged to have billed Medicare approximately $50 million dollars and received approximately $33 million dollars in Medicare funds.
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.
The United States Department of Health and Human Services (Office of Inspector General), the United States Defense Criminal Investigative Service (Department of Defense Inspector General) and the Federal Bureau of Investigation are investigating the case. The U.S. Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
CASE NUMBER: CR-21-2716-TUC-JCH (LCK)
RELEASE NUMBER: 2021-074_Nguyen# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Department of Justice Announces Initiative to Fight Housing Discrimination, a Practice Known as Redlining, in the Eastern District of PennsylvaniaRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced a partnership between the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Justice Department’s Civil Rights Division for the launch of DOJ’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.”
“The U.S. Attorney’s Office is proud to partner with the Attorney General and the Civil Rights Division on this important initiative,” said Acting U.S. Attorney Jennifer Arbittier Williams. “Homeownership is the American dream. Lending institutions that make decisions based on the color of a person’s skin, rather than their creditworthiness, violate the fundamental principles on which our Constitution is based. These entities are now on notice that they will be fully prosecuted by the Department of Justice.”
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.
Davenport Man Sentenced for Attempted Enticement of Minors and Traveling with Intent to Engage in Illicit Sexual ActivityRead the Press Release
ROCK ISLAND, Ill. – A Davenport, Iowa, man, Douglas Speer, 31, of West 49th Street, was sentenced to eleven years in federal prison, to be followed by fifteen years of supervised release, on October 20, 2021, for traveling with the intent to engage in illicit sexual activity and attempting to entice two underage girls to engage in sexual activity.
According to court documents, in November 2020, Speer arranged to pay for sex with individuals he believed to be two girls, ages fifteen and eleven. After traveling from Iowa to Illinois to meet with the intended victims, Speer was arrested by federal agents and local law enforcement officers.
Speer was subsequently charged in an indictment with two counts of attempted enticement of a minor and one count of travel with the intent to engage in illicit sexual activity. In June 2021, Speer pleaded guilty to two counts of attempted enticement of a minor and one count of traveling with the intent to engage in illicit sexual activity.
At Speer’s sentencing hearing, U.S. District Court Judge Sara Darrow stated that the applicable penalties, including the statutory minimum of ten years in prison, were severe but necessary given that such laws serve to protect the most vulnerable within the community from “predators” like Speer. The judge further commented on the need for a sentence such as this to deter others from attempting similar crimes.
The statutory penalty for each count of attempted enticement of a minor is a minimum of 10 years to life imprisonment. The penalty for travel with intent to engage in illicit sexual activity is up to 30 years in prison. Each count also carries a fine of up to $250,000.
This case was investigated as part of an operation by the Federal Bureau of Investigation, Springfield Office, with the assistance of the Rock Island Police Department, the Macomb Police Department, the Illinois State Police, the East Moline Police Department, the Galesburg Police Department, the Davenport Police Department, and the Knox County Sherriff’s Office. Assistant U.S. Attorneys Alyssa Raya and Ryan Bintz represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
DEA National Prescription Drug Take Back DayRead the Press Release
KNOXVILLE, Tenn. On Saturday, October 23, from 10 a.m. to 2 p.m., the U.S. Drug Enforcement Administration will provide the public the opportunity to prevent pill abuse and theft by ridding their homes of potentially dangerous expired, unused, and unwanted prescription drugs. Location information is available from the DEA, along with items that cannot be accepted. This service is free and anonymous, no questions asked.
This October’s event is DEA’s 21st nationwide event since its inception 11 years ago. Last spring, Americans turned in nearly 839,543 pounds of prescription drugs at nearly 5,060 sites operated by the DEA and almost 5,000 from its state and local law enforcement partners. DEA and its partners have collected nearly 6,770 tons of expired, unused, and unwanted prescription medications since the inception of the National Prescription Drug Take Back Initiative in 2010.
The DEA will now accept vaping devices and cartridges at any of its drop-off locations during National Prescription Drug Take Back Day. It is important to note that DEA cannot accept devices containing lithium-ion batteries. If batteries cannot be removed prior to drop-off, DEA encourages individuals to consult with stores that recycle lithium-ion batteries. Concerns have been raised across the United States over illnesses and deaths caused by vaping and the high youth vaping initiation rates. To support a healthy lifestyle and energetic population, especially among America’s youth, DEA is committed to doing all it can to help safely dispose of vaping devices and substances.
To keep everyone safe, collection sites will follow CDC COVID-19 guidelines and regulations.
The DEA’s “Take Back” day and “Get Smart About Drugs” initiatives address the vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse. Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses because of these drugs. Synthetic opioids, such as illicit fentanyl, are the primary driver of the increase in overdose deaths. For information on DEA’s “Take Back” in Spanish click here, or for more information on the “Get Smart About Drugs” publication, click for English or Spanish.
In addition to DEA’s National Prescription Drug Take Back Day, there are many other ways to dispose of unwanted prescription drugs every day, including the 11,000 authorized collectors that are available all year long. For more information, visit DEA’s year-round collection site locator. Participating in the next DEA Take Back Day on Saturday, October 23, simply means cleaning out your medicine cabinet or anywhere you keep unused, unwanted, or expired medications and dropping them off at your nearest collection site. For more information about the disposal of prescription drugs or about the October 23rd Take Back day event, go to DEA Drug Take Back event or by calling 800-882-9539.
The FDA also provides information on how to properly dispose of prescription drugs. More information is available here: English or Spanish.
###Convicted Felon Indicted for Possessing Fentanyl, Heroin, and a Firearm in the Lower Ninth WardRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that on October 21, 2021, GEORGE JEFFERSON, age 45, a resident of New Orleans, has been charged in a four-count Indictment for possessing with intent to distribute 40 grams or more of fentanyl and a quantity of heroin. JEFFERSON, a convicted felon, is also charged with possessing a firearm in furtherance of drug trafficking and for being a felon in possession of a firearm.
For possession with intent to distribute fentanyl, JEFFERSON faces a minimum of five (5) years imprisonment up to a statutory maximum forty (40) years of imprisonment, a fine of up to $5,000,000, at least four (4) years of supervised release in violation of Title 21, United States Code, Sections 841(a)(1) and 841(B)(1)(B). For possession with intent to distribute heroin, JEFFERSON faces up to twenty (20) years imprisonment, a fine of up to $1,000,000, at least three (3) years of supervised release in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C). JEFFERSON also faces a mandatory minimum sentence of five (5) years of imprisonment, imposed consecutively to the charged drug offenses, for possessing a Glock Model 23, .40 caliber gun, in furtherance of dealing fentanyl and heroin, in violation of Title 18, United States Code Section 924(c). If convicted, JEFFERSON faces a $100 mandatory special assessment fee for each charge.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of the New Orleans Police Department and the FBI in investigating this matter. Assistant United States Attorney David Howard Sinkman is in charge of the prosecution.
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Connecticut Man Guilty of Sex-Trafficking During Miami SuperBowlRead the Press Release
Miami, Florida – A man who coerced two women and a girl into selling themselves for sex in Miami during the 2020 Superbowl was found guilty of commercial sex trafficking by a federal jury in Ft. Lauderdale this week.
During the eight-day trial, Assistant U.S. Attorneys Alejandra L. López and Brian Dobbins presented evidence that in January 2020, Edward Walker, 48, of New Haven, Connecticut, brought two adult women and a 17-year-old girl to Miami from Connecticut to engage in commercial sex acts during the SuperBowl. While in Miami, Walker emotionally, psychologically, and financially coerced the victims into soliciting customers and having sex with them in exchange for money, all of which Walker kept. Additional evidence showed that after the Superbowl in Miami, Walker planned to take the victims to Chicago, Illinois (during the NBA All-Star Game), New Orleans, Louisana (during Mardi Gras), Las Vegas, Nevada, and other places to further sexually exploit them.
The jury found Walker guilty of sex trafficking by force and coercion, sex trafficking of a minor and by force and coercion, and transporting a person for sexual activity. U.S. District Judge James I. Cohn will sentence Walker on January 6, 2022, in federal court in Ft. Lauderdale. He faces a sentence of up to life in prison.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorney’s Offices and the Criminal Divisions Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; and Alfredo Ramirez, III, Director of Miami-Dade Police Department (MDPD), announced the guilty verdict.
This case was investigated by the FBI’s Child Exploitation and Human Trafficking Task Force, in partnership with MDPD’s Human Trafficking Squad, and the South Florida Human Trafficking Task Force. FBI New Haven; Homeland Security Investigations Miami; Department of Health and Human Services, Office of Inspector General, Miami Office; Miami Beach Police Department; and Miami-Dade State Attorney’s Office assisted.
To report suspected human trafficking or to obtain resources for victims, please call 1-888-373-7888; text “BeFree” (233733), or live chat at HumanTraffickingHotline.org. The toll-free phone, SMS text lines, and online chat function are available 24 hours a day, 7 days a week, 365 days a year. Help is available in English, Spanish, Creole, or in more than 200 additional languages. The National Hotline is not managed by law enforcement, immigration or an investigative agency. Correspondence with the National Hotline is confidential and you may request assistance or report a tip anonymously.
To learn more about the National Resource Hotline visit www.humantraffickinghotline.org. To learn more about the U.S. Department of Justice’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.
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. 20-cr-20087.
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Canton Man Pleads Guilty to Solicitation of an Obscene Visual Depiction of a MinorRead the Press Release
PEORIA, Ill. – A Canton, Illinois, man, Joseph M. Graham, 29, of the 500 block of Baxter Court, pleaded guilty on October 21, 2021, to the charge of soliciting an obscene visual depiction of a minor. Sentencing has been scheduled for February 24, 2022, at the federal courthouse in Peoria, Illinois.
In court today, before U.S. District Judge James Shadid, Graham admitted that he used an online application to request sexually explicit images of an individual whom he believed to be 8 years old.
During the hearing, the government stated that in December 2019 Graham initiated messages arranging to meet with individuals he believed to be the child and his father and, on January 8, 2020, traveled to a coffee shop on North Prospect Road, in Peoria, where he was taken into custody by federal agents.
Graham remains in the custody of the U.S. Marshals Service pending sentencing.
For the offense of solicitation of an obscene visual depiction of a minor, the statutory penalty is not less than five years and up to 20 years in prison; a fine of up to $250,000; and a term of supervised release of not less than five years and up to life.
The charges were investigated by the Federal Bureau of Investigation, Springfield Office. Assistant U.S. Attorney Ronald Hanna is representing the government in the prosecution.
The case 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), to marshal 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.