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1 December 2021
Michigan Man Who Led Law Enforcement on A High Speed Chase from Lewiston to Dunkirk Sentenced to Home ConfinementRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Donyell Williams, 27, of Michigan, who was convicted of high-speed flight from an immigration checkpoint, was sentenced to serve six months home confinement and two years’ probation by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on March 5, 2021, at approximately 9:54 p.m., Williams was driving a Jeep Commander with Ohio license plates on the Lewiston-Queenston Bridge. Co-defendant Johnny Greer, 19, was a passenger in the vehicle. As the defendants drove towards the Lewiston Port of Entry, they failed to stop for federal inspection despite numerous “stop” signs posted by Customs and Border Protection. Williams instead proceeded to accelerate through a commercial truck lane and then drove around a tire deflating strip. While being pursued by CBP officers and the New York State Police, Williams drove on the I-190 south to I-90 west at speeds ranging from 95 mph to 110 mph. A few hours later, at approximately 12:30 a.m. on March 6, 2021, the Jeep Commander was located on the side of the road in the vicinity of Dunkirk, NY, and Williams and Greer were arrested.
Greer was previously convicted and sentenced to serve six months in prison
The sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Matthew Scarpino, Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and the New York State Police, under the direction of Major Jennifer H. Gottstine.
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Merrimack Man Sentenced to 10 Years for Drug Trafficking and Firearm ChargesRead the Press Release
CONCORD - Kyle Mehlhorn, 28, of Merrimack, was sentenced to 120 months in federal prison for multiple drug trafficking and firearm charges, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on October 27, 2020, Manchester police officers observed a vehicle with wrongfully attached license plates and made a traffic stop. Mehlhorn was the driver and he had a female passenger. A records check of Mehlhorn revealed his license and registration were suspended and he was placed under arrest. The passenger was cooperative and identified her belongings in the vehicle. On November 2, 2020, after obtaining a search warrant, Manchester police officers searched the vehicle and found over 209 grams of methamphetamine, over 28 grams of fentanyl, various items used in drug packaging, $13,800 in cash, and two loaded firearms. At the time of his arrest, Mehlhorn was a previously convicted felon and was prohibited from possessing firearms.
In January of 2021, Mehlhorn was arrested in Boston on a complaint from the District of New Hampshire. Mehlhorn was armed with a 9 mm handgun and was carrying a backpack containing over 196 grams of methamphetamine and over 187 grams of fentanyl. A subsequent search warrant for the vehicle revealed an additional .22 caliber handgun.
Mehlhorn previously pleaded guilty on August 6, 2021. He will forfeit the firearms and cash seized in January of 2021. The money and firearms seized in October of 2020 have already been forfeited.
“Armed drug traffickers like Kyle Mehlhorn pose a serious threat to the community by carrying deadly weapons and selling dangerous substances,” said Acting U.S. Attorney Farley. “As a convicted felon, Mehlhorn should not have had a gun. Instead, he possessed multiple guns while peddling significant quantities of fentanyl and methamphetamine. This lengthy sentence shows that the law enforcement community is working hard to protect the Granite State from violent crime and to hold armed criminals accountable for their actions.”
“Armed with multiple firearms and deadly drugs, Kyle Mehlhorn is responsible for bringing danger and violence to our neighborhoods, and for this, he will spend significant time behind bars, said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI’s New Hampshire Safe Streets Gang Task Force will continue to collaborate with our law enforcement partners to rid our communities of armed drug dealing criminals.”
“This investigation and subsequent arrest of the defendant is another example of the outstanding work being done by the officers and detectives of the Manchester Police Department,” said Manchester Police Chief Allen Aldenberg. “We continue to value our state and local law enforcement partnerships which greatly assist in holding people such as this defendant accountable for their behavior.”
This matter was investigated by the Federal Bureau of Investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the New Hampshire State Police, the Manchester Police Department, the Concord Police Department, the Gorham Police Department, and the Boston (MA) Police Department. The case was prosecuted by Assistant U.S. Attorney Charles Rombeau. Assistant U.S. Attorney Robert Rabuck assisted with forfeiture aspects of this matter.
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MediaMuv Principals Charged with Stealing Millions in Music RoyaltiesRead the Press Release
PHOENIX, Ariz. – Jose Teran, 36, of Scottsdale, Arizona appeared today in federal court on charges for Conspiracy, Wire Fraud, Transactional Money Laundering, and Aggravated Identity Theft. In mid-November, a federal grand jury in Phoenix returned a 30-count indictment against Teran, and his co-conspirator, Webster Batista, 38, of Doral, Florida. On November 18, Special Agents with the Internal Revenue Service – Criminal Investigation arrested Batista at his residence in Florida.
According to the indictment, from 2016 to the present, Teran and Batista used fraudulent pretenses and made false representations to collect over $20 million in royalty payments for music that was monetized through a third-party company. Through their company MediaMuv, Teran and Batista allegedly first claimed they had the legal right to monetize over 50,000+ songs on February 13, 2017. The indictment alleges that contractual agreements were executed between MediaMuv and two third party companies in which MediaMuv made false and fraudulent affirmations that they had legal rights over the music they claimed to control. According to the indictment, Teran and Batista did not pay anything to the top 30 artists or their representatives, whose music generated royalties that the defendants collected. Teran and Batista allegedly used the identities of others to make false claims about ownership and to create the false impression that MediaMuv had other employees. The indictment further alleges that Teran and Batista used the fraudulent proceeds to purchase high-end items such as cars, jewelry, and property.
If convicted, Teran and Batista face up to 5 years in prison for Conspiracy, up to 20 years for Wire Fraud, up to 10 years for Transactional Money Laundering, and a mandatory consecutive sentence of 2 years for Aggravated Identity Theft. They may also be fined up to $250,000 per felony conviction.
An indictment is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilty beyond a reasonable doubt.
Internal Revenue Service – Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorneys Raymond K. Woo and Seth T. Goertz, District of Arizona, Phoenix, are handling the prosecution.
CASE NUMBER: CR21-0955-PHX-DLR
RELEASE NUMBER: 2021-090_Batista# # #
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.McDowell County Woman Pleads Guilty to Child Pornography OffenseRead the Press Release
BLUEFIELD, W.Va. – A McDowell County woman plead guilty today to a child pornography offense.
According to the plea agreement and statements made in court, Lacosta Steele, 25, of Iaeger, admitted that in October and November 2020 she persuaded a 12-year-old girl to engage in sexually explicit conduct, including masturbation and the lascivious exhibition of her genitals, for the purpose of creating videos of this conduct. Steele admitted that she then sent those images to her then-boyfriend using her cell phone. Steele also admitted that during this same time frame she transported the same 12-year-old girl to R.D. Bailey Lake, where her then-boyfriend engaged in sexual intercourse with the child.
Steele pleaded guilty to distribution of child pornography and faces at least five and up to 20 years in prison when she is sentenced on April 4, 2022.
“I want to thank the West Virginia State Police and Homeland Security Investigations for their partnership in making sure that this defendant was held accountable for her heinous crime against a vulnerable child,” said United States Attorney Will Thompson.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Jennifer Rada Herrald is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-00187.
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Maryland man admits to a firearms conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Dylan Michael Ward, of Hagerstown, Maryland, has admitted to a firearms conspiracy, United States Attorney William J. Ihlenfeld, II announced.
Ward, 22, pleaded guilty today to one count of “Conspiracy.” Ward admitted to working with others to purchase and transport firearms illegally across state lines from West Virginia into Maryland. The crimes occurred in March and April of 2021 in Berkeley County and elsewhere.
Ward faces up to five years of incarceration and a fine of up to $250,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Maryland Woman Sentenced for Paying More than $6,500 in Bribes to Metropolitan Police Department EmployeeRead the Press Release
WASHINGTON – Michelle Cage, 46, of Temple Hills, Md., was sentenced today to five years of probation, including six months of home confinement, for paying more than $6,500 in bribes to a Metropolitan Police Department (MPD) employee in exchange for personal identifying information of traffic crash victims.
The announcement was made by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, and Robert J. Contee III, Chief of the Metropolitan Police Department.
Cage pleaded guilty in November 2020, in the U.S. District Court for the District of Columbia, to one count of bribery of a public official. She was sentenced by the Honorable Emmett G. Sullivan. While on probation, Cage must complete 100 hours of community service.
According to the government’s evidence, dating back to at least 2012, Cage worked, in return for referral fees, to connect people in need of legal representation or medical services with providers of those services. In 2017, Cage started MC Referrals and Marketing L.L.C. to provide these referral services. To identify potential clients, Cage obtained from the Metropolitan Police Department (MPD) Traffic Accident Reports, or “PD Form 10s,” which contained the names and contact information of individuals involved in traffic accidents.
Beginning in 2015, however, MPD General Order 401.03 limited the distribution of these reports to individuals involved in traffic accidents and their representatives. Cage admitted that, beginning at that time and continuing into 2017, she paid cash bribes in the amount of $50 to $200 per week to a clerk in MPD’s First District station, to influence the clerk to violate the General Order and provide Cage with the confidential reports, which Cage used to contact and solicit potential clients. Cage admitted that she paid the clerk at least $6,500 in bribes.
In announcing the sentence, U.S. Attorney Graves, Special Agent in Charge Jacobs, and Chief Contee commended the work of those who investigated the case from the FBI’s Washington Field Office and MPD’s Internal Affairs Division. They also acknowledged the work of those who handled the case at the U.S. Attorney’s Office’s Public Corruption and Civil Rights Section and Fraud Section, including Assistant U.S. Attorney Joshua S. Rothstein and Veronica Sanchez.
Man Sentenced for Receipt of Child PornographyRead the Press Release
A Tulsa man who possessed more than 600 images of child pornography was sentenced in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Matthew Steven Janson, 38, to seven years in federal prison followed by seven years of supervised release.
“Matthew Janson accessed and viewed hundreds of images of children being sexually abused,” said Acting U.S. Attorney Clint Johnson. “The demand for child pornography feeds an illicit industry that preys on the most vulnerable members of society. The U.S. Attorney’s Office remains relentless in its pursuit of those who produce and seek out depictions of child sexual abuse.”
Janson pleaded guilty in June after he knowingly used the internet to receive child pornography from April 18, 2016 to May 25, 2016.
According to the plea agreement, Janson admitted to possessing at least 600 images of child sexual abuse including the abuse of prepubescent minors who had not attained 12 years of age. The materials were possessed and knowingly accessed via Janson’s computer and within the Muscogee Nation Reservation.
Janson is a citizen of the Cherokee Nation. Janson’s state conviction was vacated due to the Supreme Court’s ruling in McGirt v. Oklahoma. He previously pleaded guilty in state court in 2017 and was sentenced to 10 years with 5 years of that time suspended.
The Tulsa Police Department, Oklahoma State Bureau of Investigation and U.S. Immigration and Customs Enforcements’ Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Cymetra M. Williams prosecuted the case.
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 United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Man Sentenced for Committing Two Armed RobberiesRead the Press Release
A man who engaged in a series of violent crimes in Tulsa was sentenced Tuesday in federal court, announced Acting U.S. Attorney Clint Johnson
Chief U.S. District Judge John F. Heil III sentenced Deshawn Patrick, 19, of Tulsa, to 121 months in federal prison followed by 3 years of supervised release.
“Deshawn Patrick, armed with a firearm, committed two robberies against a teenager and an elderly man,” said Acting U.S. Attorney Clint Johnson. “Patrick posed a serious danger to the public and will spend more than 10 years in prison for his violent acts.”
Patrick pleaded guilty on Aug. 23, 2021, to two counts of robbery in Indian Country.
In his plea agreement, Patrick admitted that he pointed a firearm and used force to take a minor victim’s phone, car keys and vehicle in Tulsa. When the victim arrived at an apartment complex on Sept. 6, 2020, Deshawn Patrick exited his vehicle pointing a firearm at the teenage victim and, along with a codefendant and two juvenile accomplices, demanded the driver and passenger exit the vehicle. He and his accomplices grabbed the victim’s phone and car keys. Patrick and an accomplice then drove away in the victim’s car.
Patrick further admitted to robbing a second victim on Oct. 18, 2020. Patrick and a juvenile accomplice approached the 74 year-old victim inside the victim’s garage. Patrick and his accomplice pointed semi-automatic pistols at the victim in order to gain entry into the house. Patrick struck the elderly victim in the head with a pistol, knocking him unconscious. Patrick then entered the victim’s home and took his keys and wallet. The two defendants fled the scene in the victim’s vehicle. The victim sustained lacerations to his head during the incident.
Both robbery victims are Muscogee Nation citizens, and the crimes occurred within the Muscogee Nation Reservation.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorneys Ryan H. Heatherman and Reagan V. Reininger prosecuted the case.
Madisonville Woman Sentenced in Conspiracy to Commit Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that, earlier today, U.S. District Court Judge Sarah S. Vance sentenced defendant JILL LEWIS (“LEWIS”), age 41, resident of Madisonville, Louisiana, to six (6) months’ home confinement and two (2) years’ probation. LEWIS previously pleaded guilty to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371, arising out of her involvement in a postal fraud scheme. LEWIS is also required to pay restitution in the amount of $42,749.74.
According to her guilty plea, between January 2014 and January 2016, LEWIS and her co-conspirator conspired to submit false insurance claims to the United States Postal Service (“USPS”), causing the USPS to mail reimbursement checks to LEWIS and her co-conspirator for over $42,000. In this scheme, LEWIS and her co-conspirator falsely claimed that they had purchased expensive jewelry and other items and attempted to return the items to the retailers through the mail, but the USPS had lost the items. LEWIS and her co-conspirator then submitted forged invoices to the USPS to support the reimbursement amounts. The false claims and forged documents caused the USPS to send the reimbursement checks to LEWIS and a co-conspirator through the mail.
The U.S. Attorney’s Office would like to acknowledge the United States Postal Service, Office of Inspector General, for its work in investigating this case. The case is being prosecuted by Assistant United States Attorneys Brandon Long and Shirin Hakimzadeh.
MS-13 Gang Member Sentenced to 51 Years in Federal Prison for His Role in the Commission of a Murder and a Series of Armed RobberiesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Luis Antonio Cruz-Hernandez, a/k/a “Paniquiado “, age 27, of Silver Spring, Maryland to 51 years in federal prison, followed by five years of supervised release for conspiracy to use interstate commerce facilities in the commission of a murder for hire, interference with interstate commerce by robbery, and the use of a firearm in furtherance of a crime of violence. Judge Grimm has also ordered Cruz-Hernandez to pay over $250,000 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Marcus Jones of the Montgomery County Police Department.
According to his plea agreement, Cruz-Hernandez is a member of the La Mara Salvatrucha gang, also known as “MS-13”, an international criminal organization and criminal enterprise. Specifically, Cruz-Hernandez was a member and associate of the Pinos Locotes Salvatrucha (“PLS”) clique of MS-13. MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States. In Maryland and elsewhere MS-13 members are organized in “cliques,” smaller groups that operate in a specific city of region. MS-13 members are required to commit acts of violence, both to maintain membership and discipline within the gang and against rival gangs. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
In November 2016, a PLS clique member was hired to murder someone in exchange for money, and Cruz-Hernandez was directed to assist with the murder. Between November 20, 2016 and November 30, 2016, Cruz-Hernandez conspired with others to murder the victim in return for monetary payment from two individuals (Co-conspirator 1 and Co-conspirator 2). Cruz-Hernandez understood Co-conspirator 1 to be the person paying to have Victim 1 murdered and understood Co-conspirator 2 to be the middle-man between Co-conspirator 1 and a PLS clique member.
Over the course of the conspiracy, Co-conspirator 1 and Co-conspirator 2 paid for a hotel room located in the vicinity of the victim’s residence, for Cruz-Hernandez, and other conspirators, including the clique member to use. Further, Cruz-Hernandez and other conspirators conducted surveillance of the victim in order to determine the most opportune time to murder him.
As stated in his plea agreement, on November 30, 2016, Co-conspirator 2 drove Cruz-Hernandez and the clique member to an area in the vicinity of the victim’s residence. The clique member then exited the vehicle and shot and killed the victim. After the murder, the clique member was paid for the murder of the victim and gave a portion of the payment to Cruz-Hernandez.
Facilities of commerce utilized as part of the conspiracy to murder the victim in return for monetary payment included the vehicle used to conduct physical surveillance and to murder the victim, and cell phones used by conspirators to communicate and facilitate the murder.
Additionally, Cruz-Hernandez pled guilty in relation to seven of armed robberies in the eastern district of Virginia and Maryland between June 2017 and November 2017. These robberies occurred at the direction of a PLS clique member and resulted in the loss of more than $250,000 to victim businesses.
United States Attorney Erek L. Barron praised the FBI, the U.S. Postal Inspection Service, HSI Baltimore, the Prince George’s County Police Department, the Montgomery County Police Department, the Fairfax County Police Department (Virginia) and the Herndon Police Department (Virginia) for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney William D. Moomau, who prosecuted the case.
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Louisville Man Sentenced to 32 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
LOUISVILLE, KY – A Louisville man was sentenced on Monday to 32 years in prison followed by a life term of Supervised Release for production, attempted production, distribution, and possession of child pornography. There is no parole in the federal system.
According to court documents, in 2017 and 2019, Shaun Douglas Dickson, 26, engaged in conversations with children on the Internet while posing as both an 11-year-old girl and 13-year-old boy. During these conversations, Dickson sent images of child pornography to children he met online, including young girls in Greece and Australia that he attempted to and successfully induced and coerced into creating images of sexually explicit conduct to send to him. Dickson further threatened a child that he would distribute the images of child pornography he had produced of her to her friends and family if she did not send him additional images, and then subsequently distributed those images to other children. After a search warrant was conducted at his residence in 2019, Dickson was also found to be in possession of over 1,200 images and videos of child pornography.
“The outstanding effort of the investigators and prosecutors assigned to the case ended the activities of a sexual predator who exploited children internationally,” stated United States Attorney Michael A. Bennett. “I commend the work and partnership of Attorney General Cameron’s office and HSI Nashville.”
“Thanks to the partnership between our Cyber Crimes Unit, HSI, and U.S. Attorney Bennett’s team, we were able to stop this criminal from continuing to exploit children online,” said Attorney General Cameron. “Our children deserve childhoods free from exploitation, abuse, and neglect, and collaboration among law enforcement agencies through initiatives like Project Safe Childhood are essential to protecting our youngest.”
“HSI agents make it a top priority to protect vulnerable children who become victims of online sexual predators,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “The investigative efforts of our agents in this case, working with the Kentucky State Attorney General’s office, ensured that this offender will pay for his inexcusable acts with a lengthy stay in federal prison.”
The Office of the Kentucky Attorney General and the United States Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case.
Assistant U.S. Attorneys Alicia Gomez and Stephanie Zimdahl prosecuted the case.
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This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources
Louisville Gas & Electric Company to Permanently Limit Harmful Air PollutionRead the Press Release
In a proposed consent decree lodged today in U.S. District Court, Louisville Gas & Electric Company (LG&E) has agreed to permanent emission limits for the sulfuric acid mist that it emits from its Mill Creek Station, located in Jefferson County, Kentucky. LG&E also agreed to perform a congressionally authorized diesel-emissions reduction supplemental environmental project aimed at reducing ground-level emissions to resolve allegations that it emitted too much sulfuric acid mist in violation of the Clean Air Act.
The complaint, filed in July 2020, alleges that LG&E failed to timely install and operate emission control technology and operated its facility, including its boilers and nitrogen oxide controls, in a manner that exacerbated sulfuric acid mist emissions. As a result, the utility’s coal combustion operations emitted high levels of sulfuric acid mist, affecting the surrounding community and violating certain federally enforceable general provisions of Kentucky’s Clean Air Act State Implementation Plan.
“This settlement will ensure that this utility permanently controls emissions of a harmful air pollutant,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “This agreement demonstrates the Justice Department’s and EPA’s continuing efforts, together with our local partners, to reduce harmful air pollution caused by poor air pollution control practices.”
“By establishing a permanent limit on emissions of sulfuric acid mist from Louisville Gas & Electric’s Mill Creek facility, this settlement will help protect future air quality for local communities,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “An additional provision of the settlement will improve local air quality, including in historically underserved communities, by reducing diesel emissions from the company’s truck fleet.”
“These permanent emissions limits continue the work of protecting the air for the people of Louisville,” said Director Rachael Hamilton of the Louisville Metro Air Pollution Control District (LMAPCD). “This settlement will have a positive impact on air quality, and it could not have been done without the combined efforts of the Justice Department, EPA, Jefferson County Attorney Mike O’Connell and his office, and our own staff at LMAPCD.”
As part of the settlement, the company will also pay a $750,000 civil penalty and will incorporate into its service fleet trucks that use battery rather than diesel power when performing power line maintenance or construction. The project will reduce ground-level emissions of nitrogen oxides, particulate matter, sulfur dioxides and other pollutants. The project also will reduce emissions of approximately 180,000 pounds of carbon dioxide per year. Because the settlement requires all of the trucks to be stationed at LG&E’s service center in Auburndale, the benefits of the project will be realized in the surrounding communities, including historically underserved communities.
The consent decree, lodged in the Western District Court of Kentucky, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.
Louisiana Construction Company Employee Pleads Guilty to Tax ConspiracyRead the Press Release
A Louisiana man pleaded guilty today to conspiracy to defraud the IRS.
According to court documents, from 2011 to April 2018, Randall Lackey of Jefferson Parish conspired to defraud the IRS by concealing his own income and the income of others. Lackey worked as an employee for two commercial construction companies, SES Construction Consulting Group (SES) and Global Technical Solutions (GTS). To hide his income from the IRS, Lackey had his SES and GTS wages paid to R&O Renovations and Reconstructions (R&O), a company he owned. For the 2012 through 2017 tax years, Lackey did not file corporate income tax returns for R&O or personal income tax returns with the IRS. Lackey’s co-conspirators furthered the scheme by falsely classifying Lackey as a contractor of SES and GTS rather than an employee. As a result, Lackey had no taxes withheld from his paycheck and SES and GTS avoided paying employment taxes on his wages. Lackey and other members of the conspiracy also hired workers who lacked proper documentation and were not authorized to work in the United States, and then paid them in cash “off the books.”
Lackey is scheduled to be sentenced on March 16, 2022, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Other members of the conspiracy, Randy Farrell, the current owner of SES and GTS; Mathew Reck, the former co-owner of SES and GTS; and two other employees of SES and GTS, Dawn Farrell Ruiz and David Farrell (Randy Farrell’s sister and brother), all previously pleaded guilty to conspiracy to defraud the IRS. Reck is scheduled to be sentenced on Jan. 12, 2022. Randy Farrell, David Farrell, and Farrell Ruiz are all scheduled to be sentenced on Feb. 9, 2022.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney's Office for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Parker Tobin of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Moses of the Eastern District of Louisiana are prosecuting the case.
Louisiana Construction Company Employee Pleads Guilty to Tax ConspiracyRead the Press Release
A Louisiana man pleaded guilty today to conspiracy to defraud the IRS.
According to court documents, from 2011 to April 2018, Randall Lackey of Jefferson Parish conspired to defraud the IRS by concealing his own income and the income of others. Lackey worked as an employee for two commercial construction companies, SES Construction Consulting Group (SES) and Global Technical Solutions (GTS). To hide his income from the IRS, Lackey had his SES and GTS wages paid to R&O Renovations and Reconstructions (R&O), a company he owned. For the 2012 through 2017 tax years, Lackey did not file corporate income tax returns for R&O or personal income tax returns with the IRS. Lackey’s co-conspirators furthered the scheme by falsely classifying Lackey as a contractor of SES and GTS rather than an employee. As a result, Lackey had no taxes withheld from his paycheck and SES and GTS avoided paying employment taxes on his wages. Lackey and other members of the conspiracy also hired workers who lacked proper documentation and were not authorized to work in the United States, and then paid them in cash “off the books.”
Lackey is scheduled to be sentenced on March 16, 2022, and faces a maximum penalty of five years in prison. He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Other members of the conspiracy, Randy Farrell, the current owner of SES and GTS; Mathew Reck, the former co-owner of SES and GTS; and two other employees of SES and GTS, Dawn Farrell Ruiz and David Farrell (Randy Farrell’s sister and brother), all previously pleaded guilty to conspiracy to defraud the IRS. Reck is scheduled to be sentenced on Jan. 12, 2022. Randy Farrell, David Farrell, and Farrell Ruiz are all scheduled to be sentenced on Feb. 9, 2022.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and the U.S. Attorney's Office for the Eastern District of Louisiana made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys William Montague and Parker Tobin of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Moses of the Eastern District of Louisiana are prosecuting the case.
Local Media Production and Political Consulting Firm Sentenced on Wire Fraud ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. – The United States Attorney’s Office announced today that LSA Strategies LLC, a media production and political consulting firm located in Buffalo, NY, which was convicted of wire fraud, was ordered to pay restitution totaling $8,283.59 by Senior U.S. District Judge William M. Skretny.
Assistant U.S. Attorney Paul E. Bonanno, who handled the case, stated that Steven M. Casey organized LSA Strategies under the laws of New York State on June 6, 2012. Between August 20 and September 19, 2012, LSA Strategies devised a scheme to defraud a candidate (Candidate 1) running for the New York State Senate 60th District.
Steven Casey provided consulting services to Candidate 1, including arranging for campaign mailings to be printed by Company 1. In doing so, Casey requested that Company 1 increase each of its invoices to Candidate 1 by a specified amount. However, Casey did not inform Candidate 1 of the increase in the amount of the invoices, rather Casey led the candidate to believe that he was working on a voluntary basis. Candidate 1 was unaware that Company 1’s invoices were being increased to provide sums of money to Casey and LSA. After Candidate 1 paid the invoices, Company 1 paid LSA the amount by which the invoices had been increased. In total, Company 1 paid LSA $8,283.59.
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
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Lebanon County Man Pleads Guilty to Fraudulently Obtaining Pandemic Unemployment AssistanceRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 30, 2021, Luis Mercado, age 44, of Lebanon, Pennsylvania, pled guilty before U.S. District Court Judge Sylvia H. Rambo, to wire fraud for fraudulently claiming pandemic unemployment assistance funds.
According to United States Attorney John C. Gurganus, Mercado began claiming Pandemic Unemployment Assistance in August 2020 despite being employed with the United States Department of Agriculture as a poultry inspector. Mercado falsely claimed that he was unemployed due to the pandemic or a major disaster, and he received benefits based on this false claim. Mercado reaffirmed his unemployment status on a weekly basis and ultimately received $37,555 in fraudulently obtained unemployment benefits. Mercado pleaded guilty to a single count of wire fraud based on his course of conduct.
“This investigation and prosecution should send a strong zero-tolerance message to those individuals who explicitly apply for aid to exploit taxpayer funded pandemic relief programs,” said Bethanne M. Dinkins, Special Agent in Charge, USDA-Office of Inspector General. “We appreciate the partnership with our federal partners in pursuing this type of fraud and holding these bad actors to account in this great time of need.”
“Luis Mercado fraudulently applied for and received Pennsylvania Pandemic Unemployment Assistance (PUA) benefits,” stated Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General. “Mercado submitted weekly certifications where he falsely certified that he was unemployed due to COVID-19 while he was actively employed as a food inspector by the United States Department of Agriculture. The U.S. Department of Labor Office of Inspector General will continue to work with the Pennsylvania Department of Labor and Industry and our federal law enforcement partners to safeguard the integrity of unemployment compensation benefits programs.”
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was investigated by the U.S. Department of Agriculture Office of Inspector General and the U.S. Department of Labor Office of Inspector General. Assistant U.S. Attorney Paul J. Miovas, Jr. is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is twenty years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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KC Man Sentenced for Illegal Firearm Following High-Speed Police ChaseRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today for illegally possessing a firearm after leading police officers on a high-speed chase through oncoming traffic and crashing into several police vehicles.
Kyle K. Kessler, 35, was sentenced by U.S. District Judge Roseann Ketchmark to nine years in federal prison without parole.
On Oct. 15, 2020, Kessler pleaded guilty to being a felon in possession of a firearm. Kessler admitted he was in possession of a Jimenez Arms 9mm semi-automatic pistol on Dec. 18, 2019.
Kansas City, Mo., police officers attempted to stop Kessler, who was driving a stolen Chevrolet 2500 pickup truck, shortly after noon on Dec. 18, 2019. When officers activated their emergency lights, however, Kessler refused to stop. Kessler’s vehicle struck several police cars as he fled from the area at a high rate of speed.
According to court documents, Kessler fled in a stolen vehicle at speeds averaging 80 miles per hour, up to 100 miles per hour. Kessler ran two stoplights on Blue Ridge Cutoff at Sni-A-Bar road and at E. 55th Street. Kessler weaved into oncoming traffic, which caused motorists to take evasive action to avoid colliding with Kessler’s vehicle. At E. 80th Street and Raytown Road, Kessler drove through a school zone without slowing. At E. 85th Street and Hickman Mills Road, Kessler lost control and drove off the road, striking a concrete pillar.
Two officers parked their vehicles behind the pickup. Kessler put the pickup in reverse and accelerated rapidly toward one of the officers. The officer dove out of the path of the truck, which struck the officer’s police car and pushed it back. Kessler continued accelerating into another officer’s vehicle. After striking both police cars, Kessler struck a guardrail and stopped. Two more police officers used their vehicles to block the truck and keep Kessler from fleeing.
Kessler refused to follow instructions to get out of the vehicle, so officers had to break the passenger window and pull him out. Kessler continued to resist officers until they handcuffed him. Officers then found the loaded Jimenez Arms pistol in Kessler’s left front jacket pocket.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Kessler has 11 prior felony convictions for tampering with a motor vehicle as well as prior felony convictions for burglary of a motor vehicle, tampering with an airplane or motor boat, theft, resisting arrest, and fraudulent use of a credit device.
This case was prosecuted by Assistant U.S. Attorney Stefan C. Hughes. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Project Safe Neighborhoods
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Justice Department and Federal Trade Commission Announce Agenda for Dec. 6 and 7 Workshop ‘Making Competition Work: Promoting Competition in Labor Markets’Read the Press Release
The Department of Justice Antitrust Division and the Federal Trade Commission (FTC) announced an agenda for their upcoming virtual workshop regarding competition in labor markets.
First announced on Oct. 27, “Making Competition Work: Promoting Competition in Labor Markets,” will take place from 10 a.m. to 3:30 p.m. on Dec. 6, and from 10 a.m. to 5 p.m. on Dec. 7, and will be webcast on the FTC’s website.
Over two days, a series of panels, presentations, and remarks will address competition issues affecting labor markets and the welfare of workers, including: labor monopsony; the increased use of restrictive contractual clauses in labor agreements, including non-competes and non-disclosure agreements; the perspectives of workers on the state of competition; information sharing and benchmarking activity among competing employers; the role of other federal agencies in ensuring fair competition in labor markets; and the relationship between antitrust law and collective bargaining efforts in the “gig economy.” Panelists will be invited to discuss potential steps antitrust enforcers can take to better target enforcement resources, improve public guidance, and pursue a whole-of-government approach to ensuring fair competition for workers and consumers by leveraging interagency resources. Assistant Attorney General Jonathan Kanter of the Antitrust Division, FTC Chair Lina Khan, and Special Assistant to the President Tim Wu will deliver remarks, among others.
“The Department of Justice is thrilled to work alongside its colleagues at the FTC to address these timely issues that are fundamental to the health of our economy and the livelihoods of American workers,” said Assistant Attorney General Kanter.
A recording of the workshop will be available on the Antitrust Division’s website and the FTC’s website. In addition to the agenda, a list of speakers, and instructions for accessing the webcast will be available on the event page. The Department of Justice Antitrust Division and the FTC invite comments from the public on the topics covered by this workshop. Interested parties may submit public comments online through Dec. 20 at Regulations.gov.
Justice Department Secures Agreement with Hy-Vee Supermarket Chain to Make Online COVID-19 Vaccine Registration Accessible for People with DisabilitiesRead the Press Release
The Justice Department today announced that it has secured a settlement agreement with Hy-Vee Inc. that will help people with disabilities get information about COVID-19 vaccinations and book their vaccination appointments online. The Hy-Vee supermarket chain has more than 280 stores in Iowa, Illinois, Missouri, Kansas, Nebraska, South Dakota, Minnesota and Wisconsin. Today’s resolution is the department’s second agreement on this critical issue, following a November 2021 announcement of its settlement with Rite Aid Corporation.
Hy-Vee’s COVID-19 Vaccine Registration Portal, currently located at www.hy-vee.com/my-pharmacy/covid-vaccine, was not accessible to some people with disabilities, including those who use screen reader software and those who have a hard time using a mouse. For instance, people who used screen readers would not hear the questions on the medical screening forms, and people who used the tab key instead of a mouse could not select available appointment times.
“Individuals with disabilities must be able to get potentially lifesaving healthcare like COVID-19 vaccines on equal terms, without sacrificing their privacy or independence,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Ensuring that people with disabilities can schedule COVID-19 vaccination appointments the same way that people without disabilities can is not only a public health necessity, but a key civil rights issue under the Americans with Disabilities Act.”
Under today’s settlement, Hy-Vee will make content about the COVID-19 vaccine, including the forms for scheduling an appointment to get the vaccine, conform to the Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA. WCAG is a set of voluntary industry guidelines for making information on a website accessible to users with disabilities. Hy-Vee also must regularly test the pages of its website about vaccine scheduling and information and quickly fix any problems that keep people with disabilities from being able to use these pages.
This matter was handled jointly by the Disability Rights Section of the Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Iowa. Title III of the Americans with Disabilities Act (ADA) requires public accommodations like drugstores and grocery stores to provide individuals with disabilities with full and equal enjoyment of goods and services, such as vaccines. The ADA also requires public accommodations to ensure effective communication with people with disabilities, including by using auxiliary aids and services like accessible technology.
For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at www.ada.gov/complaint.
Justice Department Reaches Settlement with Maryland School District to Protect Students with DisabilitiesRead the Press Release
The Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the District of Maryland announced today a settlement agreement with the Frederick County Public School District in Maryland to address the discriminatory use of seclusion and restraint against students with disabilities.
The department’s investigation found that the school district unnecessarily and repeatedly secluded and restrained students as young as five years old in violation of Title II of the Americans with Disabilities Act (ADA). Under the settlement, Frederick County will end the use of seclusion, overhaul its restraint practices, and train staff on use of appropriate behavioral interventions for students with disabilities.
The investigation, opened in October 2020, revealed thousands of incidents of seclusion and restraint in just two and a half school years. Although students with disabilities make up only 10.8% of students enrolled in the district, every single student the district secluded was a student with disabilities, as were 99% — all but one — of the students the district restrained. The district routinely resorted to seclusion and restraint in non-emergency situations instead of using appropriate behavior interventions tailored to individual students’ needs. The investigation found that these practices often intensified students’ distress, with some students engaging in self-harm and showing other signs of trauma while in seclusion.
“We cannot stand by and watch schools put children with disabilities in isolation thousands of times and call it public education,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The district’s unlawful use of seclusion and restraint did not help students; it led to heightened distress and denied them access to a safe and positive learning environment. Frederick County Public Schools understand the significant work ahead under this agreement and we will ensure that they institute all the institutional reforms necessary to comply with the law.”
“Every child should feel safe and protected while in school,” said U.S. Attorney Erek L. Barron of the District Maryland. “The use of seclusion rooms and unjustified physical restraints on young people, particularly those with disabilities, falls painfully short of a school district’s responsibility to support the safety, health, and educational needs of its students. Students with disabilities deserve a school environment rooted in positive, preventive, and supportive classroom strategies. We appreciate Frederick County Public School District’s cooperation in this investigation and are pleased that the district has agreed to take comprehensive steps to ensure that students with disabilities receive equal educational opportunities.”
The school district cooperated fully throughout the investigation. Under the settlement agreement, the school district will take proactive steps to ensure that its practices do not discriminate against students with disabilities. The district will, among other things:
- prohibit the use of seclusion;
- report all instances of restraint and evaluate whether they were justified;
- designate trained staff to collect and analyze restraint data and oversee the creation of appropriate behavior intervention plans;
- deliver appropriate training and resources to help schools implement the agreement;
- design and implement procedures for handling complaints about restraint;
- offer counseling and compensatory education services to students with disabilities who were subjected to the district’s discriminatory practices; and
- hire an administrator to supervise school-based staff and ensure the district’s compliance with the agreement and Title II of the ADA.
The investigation was conducted jointly by the Civil Rights Division’s Educational Opportunities Section and the U.S. Attorney’s Office for the District of Maryland, as part of a division initiative to address unlawful segregation, seclusion, and restraint of students with disabilities in public schools. Enforcement of Title II of the ADA is a priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.
Members of the public may report possible civil rights violations at www.civilrights.justice.gov/.
View the letter here. View the agreement here.
Jury Convicts Gypsy Joker Outlaw Motorcycle Club Members on Racketeering ChargesRead the Press Release
PORTLAND, Ore.—On November 30, 2021, a federal jury in Portland found two members of the Gypsy Joker Outlaw Motorcycle Club (GJOMC) guilty of kidnapping and murder in aid of racketeering for the 2015 kidnapping and murder of Robert Huggins, a Portland resident and former club member.
GJOMC Portland clubhouse president Mark Leroy Dencklau, 61, of Woodburn, Oregon and Portland clubhouse member Chad Leroy Erickson, 51, of Rainier, Oregon, were found guilty of murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death; and conspiracy to commit kidnapping, resulting in death. Additionally, Dencklau was found guilty of racketeering conspiracy.
The jury acquitted Erickson and GJOMC national president Kenneth Earl Hause, 64, of Aumsville, Oregon, of racketeering conspiracy.
“Organized crime will not be tolerated in the District of Oregon. Dencklau, Erickson and other members of the Gypsy Joker Outlaw Motorcycle Club prided themselves in using violence to intimidate others and bolster their sense of power and influence. The kidnapping, torture, and murder of Robert Huggins was a gruesome example of the lengths these men were willing to go to exert their authority over rivals and perceived enemies,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “A robust, coordinated law enforcement operation led to their arrest and prosecution. Our community is safer thanks to the dedication of all involved law enforcement agencies.”
“The heinous actions of this criminal organization clearly warranted this guilty verdict,” said Jonathan T. McPherson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Seattle Field Division. “ATF remains committed to combatting organizations like the Gypsy Jokers Outlaw Motorcycle Club that endanger our communities.”
According to court documents and trial testimony, the GJOMC is a hierarchical criminal organization wherein members and associates maintain their position and status in the organization by participating in, directly or indirectly, various acts of violent racketeering activity including murder, kidnapping, robbery, extortion, narcotics trafficking, and witness tampering. Since the 1980s, the club has been active in several states including Oregon and Washington and, until recently, operated six clubhouses in the Pacific Northwest. The club also has international chapters in Germany, Australia, and Norway.
From 2003 until his arrest, Dencklau served as the president of the club’s Portland chapter. The GJOMC also oversaw several support clubs in Oregon and Washington including the Road Brothers Northwest Motorcycle Club, Solutions Motorcycle Club, Northwest Veterans Motorcycle Club, High-Side Riders, and the Freedom Fellowship Motorcycle Club. Support club members conducted criminal activities in support of the GJOMC and served as a source of new members and revenue for the club.
On July 1, 2015, the body of Robert Huggins, an estranged member of the GJOMC Portland chapter, was found lying in a field in Clark County, Washington. Huggins’ body was badly beaten, and he appeared to have been tortured prior to his death. Huggins was previously stripped of his club membership for allegedly stealing from the club and, after breaking into Dencklau’s Woodburn residence, tying up Dencklau’s girlfriend and stealing multiple firearms. In the days and weeks following this robbery, Dencklau directed GJOMC members to find Huggins.
Several government witnesses testified at trial to Dencklau, Erickson, and their co-defendants’ roles in the revenge kidnapping, torture, and murder of Huggins. On the evening of June 30, 2015, Dencklau and others kidnapped Huggins from a residence in Portland and transported him to a rural property in Southwest Washington. Over the course of several hours, Huggins was severely beaten and tortured. He sustained numerous injuries to his head and face, including a fractured skull; lacerations to his chest and torso; and removed nipples. A local medical examiner ruled that Huggins’ death was caused by multiple blunt and sharp force injuries.
On June 28, 2018, a federal grand jury in Portland returned a four-count indictment charging Dencklau; Earl Deverle Fisher, 48, of Gresham, Oregon; and Tiler Evan Pribbernow, 40, of Portland, with murder in aid of racketeering; kidnapping in aid of racketeering, resulting in death; kidnapping resulting in death and conspiracy to commit kidnapping, resulting in death.
Later, on November 29, 2018, Dencklau; Fisher; Erickson; Hause; Ryan Anthony Negrinelli, 36, of Gresham, Oregon; and Joseph Duane Folkerts, 61, of Battleground, Washington, were charged by superseding indictment with racketeering conspiracy.
Fisher, Negrinelli, Folkerts, and Pribbernow have all previously pleaded guilty to the conspiracy charge and are awaiting sentencing.
All defendants convicted face a maximum sentence of life in federal prison. Dencklau and Erickson also face mandatory minimum sentences of life in prison.
Acting U.S. Attorney Asphaug and Special Agent in Charge McPherson made the announcement.
This case was investigated by the Portland Police Bureau and ATF, with assistance from the U.S. Marshals Service, IRS-Criminal Investigation, the Clark County Sheriff’s Office, Oregon State Police, and the Oregon and Washington State Crime Labs. Leah K. Bolstad and Steven T. Mygrant, Assistant U.S. Attorneys for the District of Oregon, prosecuted the case with Damaré Theriot, Trial Attorney for the Criminal Division’s Organized Crime and Gang Section.
This case was brought as part of Project Safe Neighborhoods (PSN). In keeping with the Attorney General’s mission to reduce violent crime, the District of Oregon’s PSN program focuses on prosecuting those individuals who most significantly drive violence in our communities, and supports and fosters partnerships between law enforcement, community organizations, and local community leaders to prevent and deter future criminal conduct.
This prosecution is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the U.S. 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.
Judge sentences man to 18 years for armed carjackings and firearms offensesRead the Press Release
ST. LOUIS – Today United States District Court Judge Stephen N. Limbaugh, Jr. sentenced David Curtis President to 18 years in prison for the crimes of carjacking and firearms offenses for separate carjackings committed on June 28, 2019 and July 29, 2019. President pleaded guilty to the charges on August 24, 2021.
According to the plea agreement, President, a 29- year-old resident of St. Louis County, committed two separate carjackings in St. Louis County. On June 28, 2019, in the 11100 Block of Riaza Square, President took a 2007 Buick Lucerne from the victim at gun point. President was later identified as the carjacker and determined to be in possession of the victim’s pistol, which was in the Lucerne at the time of the carjacking. On July 29, 2019, at the Petro Mart at 698 Gravois Bluffs Boulevard, President shot two persons and took from them a 2017 Nissan Altima.
The St. Louis County Police Department investigated the carjacking and firearms offenses.
Inmate Sentenced for Having Weapon at FCI McDowellRead the Press Release
BLUEFIELD, W.Va. - An inmate at the Federal Correctional Institution (FCI) McDowell was sentenced today for possessing a weapon at the correctional facility. Rondale Faulkner, 34, from Virginia, was sentenced to one year and three months in prison to run consecutively to the sentence he currently is serving.
According to court documents, on September 26, 2020, Faulkner possessed a handcrafted weapon commonly known as a “shank.” During a visual search of Faulkner, staff members from FCI McDowell found the shank, which was a piece of metal approximately six inches in length, sharpened to a point at one end, with thread tied around cloth on the other end to form a handle. As part of his plea, Faulkner admitted that the shank was designed and intended to be used as a weapon.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Federal Bureau of Prisons.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess 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. 1:21-cr-00110.
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Inmate Leader of Racketeering Conspiracy at Maryland Correctional Institute Jessup Sentenced to Six Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced inmate Corey Alston, a/k/a “C,” age 29, yesterday to six years in federal prison, followed by three years of supervised release, for a racketeering conspiracy charge for being a leader in a scheme to smuggle contraband into the Maryland Correctional Institute Jessup (MCIJ), including narcotics, unauthorized flash drives, tobacco, and cell phones into the prison.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski, of the Federal Bureau of Investigation, Baltimore Field Office; and Secretary Robert L. Green, of the Maryland Department of Public Safety and Correctional Services.
According to court documents, MCIJ was a medium-security prison in Anne Arundel County, Maryland, that housed approximately 1,100 male inmates, with 262 custody staff or Correctional Officers (COs) and 52 non-custody staff, including case management, medical, and administrative staff.
Alston admitted that he was a leader in the racketeering conspiracy. As detailed in the plea agreement, Alston conspired with four outside facilitators, Tyrisha Johnson, Jamia Lawson, Ashley Alston, and Aldon Alston, who obtained and packaged contraband, met with the correction officers and employees to provide contraband and bribe payments, and managed the proceeds of illegal contraband sales for Alston. According to Alston’s plea agreement, Correctional Officer Janel Griffin and another MCIJ employee brought the contraband into the prison for Alston, in exchange for bribe payments, and Alston conspired with inmate Schvel Mack to sell the contraband to other inmates.
Alston was overheard by law enforcement on a series of recorded calls arranging for contraband to be smuggled into MCIJ and arranging payment for the contraband and for bribes. Recorded jail calls between Alston and others confirm that between April 16 and August 14, 2017, Griffin met with Johnson or another facilitator on at least six occasions to obtain contraband and at least $2,800 in bribe payments. Griffin smuggled the contraband, including Suboxone and Percocet, into MCIJ.
In addition to Corey Alston, 14 other defendants—six outside facilitators, four prison employees, and four inmates—have pleaded guilty to their roles in the conspiracy, including Janel Griffin, Schvel Mack, Tyrishia Johnson, Jamia Lawson, Ashley Alston, and Aldon Alston. Seven defendants are awaiting sentencing and five defendants are pending trial. Correctional Officer Janel Griffin, age 42, of Baltimore and inmate Schvel Mack, a/k/a Weezy, and L Weezy, age 31; were sentenced to 27 months each in federal prison and inmate Tavon Price, a/k/a Tay, age 37 was sentenced to 46 months in federal prison.
This case arose from the efforts of the Maryland Prison Task Force, coordinated by the U.S. Attorney’s Office and comprised of local, state, and federal stakeholders that meet regularly to share information and generate recommendations to reform prison procedures and attack the gang problem that has plagued Maryland in recent years. The work of the Task Force previously resulted in the federal convictions of more than 78 defendants, including 16 correctional officers, at the Eastern Correctional Institution, and 40 defendants, including 24 correctional officers, at the Baltimore City Detention Center.
United States Attorney Erek L. Barron commended the FBI and the Department of Public Safety and Correctional Services for their work in the investigation. The U.S. Attorney expressed appreciation to the Department of Public Safety and Correctional Services, whose staff initiated the MCIJ investigation and have been full partners in this investigation. Mr. Barron thanked Assistant U.S. Attorneys Lauren E. Perry and Sean R. Delaney, who are prosecuting this case.
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High-Volume Heroin Supplier to Middle Georgia Sentenced to PrisonRead the Press Release
MACON, Ga. – The primary supplier of a heroin distribution ring operating between Atlanta and Macon, which funneled up to 30,000 doses of heroin into the region in three months, was sentenced to more than 11 years in federal prison for his crime.
Michael Duffy, 43, of Sandy Springs, Georgia, was sentenced to serve 135 months in prison to be followed by three years of supervised release by U.S. District Judge Marc Treadwell on Tuesday, Nov. 30, after he previously pleaded guilty to conspiracy to possess with intent to distribute heroin. There is no parole in the federal system.
“Michael Duffy richly profited from supplying large quantities of heroin as untold lives in Middle Georgia were ruined by the opioid addiction he was feeding,” said U.S. Attorney Peter D. Leary. “High-volume opioid suppliers and repeat offenders will face the possibility of federal prosecution for their crimes as we work alongside law enforcement to maintain the safety and health of the communities we serve.”
“The significant sentence Duffy received reflects the seriousness associated with distributing heroin throughout our communities in Georgia,” said Alex Santiago, Acting Special Agent in Charge of FBI Atlanta. “The FBI will spare no resource when it comes to identifying and prosecuting individuals that fuel the opioid epidemic by distributing poison and causing great damage to our citizens.”
The following co-defendants have been sentenced for their crimes:
Chad Bresach, 38, of Eatonton, Georgia, pleaded guilty to distribution of heroin. Bresach was sentenced to serve 84 months in prison to run consecutively to any term of imprisonment imposed in Peach County, Jones County, Putnam County and Houston County Superior Courts to be followed by three years of supervised release on March 3;
Reginald Summerford, 49, of Macon, pleaded guilty to conspiracy to possess with intent to distribute heroin. Summerford was sentenced to serve 80 months in prison to be followed by three years of supervised release on March 3;
Terrence Jackson, 43, of Macon, pleaded guilty to one count conspiracy to possess with intent to distribute heroin. Jackson was sentenced to 52 months in prison to be followed by three years of supervised release on June 10;
Arthur Anderson, 57, of Macon, pleaded guilty to one count use of a communication facility to facilitate a drug trafficking offense. Anderson was sentenced to 48 months in prison to be followed by one year of supervised release on June 15;
Courtney Dews, 36, of Macon, pleaded guilty to use of a communication facility to facilitate a drug trafficking offense. Dews was sentenced to serve 48 months in prison to be followed by one year of supervised release on March 3;
Patrick Dews, 34, of Macon, pleaded guilty to use of a communication facility to facilitate a drug trafficking offense. Dews was sentenced to serve 20 months in prison to be followed by one year of supervised release on March 3; and,
Kathy Black, 40, of Macon, pleaded guilty to use of a communication facility to facilitate a drug trafficking offense. Black was sentenced to serve 18 months in prison to be followed by one year of supervised release on March 3.
According to court documents, federal and local law enforcement began investigating heroin distribution by co-defendant Summerford in Dec. 2017, following the arrest of a heroin dealer in Macon. The wiretap investigation ultimately led to the discovery of Duffy being the source of heroin supply. On a number of occasions, co-defendants Summerford, Black and Patrick Dews would travel to metro-Atlanta to purchase heroin from Duffy, generally 142 grams on each trip – enough heroin to provide more than 1,000 doses. During Dec. 2018 and Jan. 2019, Duffy sold heroin from a “trap house” located in an Atlanta apartment. In early Feb. 2019, Duffy moved into a house in Sandy Springs, and used that residence to sell heroin.
From Dec. 2018 to Feb. 2019, Summerford generally went to Duffy to resupply heroin approximately every four to five days and usually purchased approximately 142 grams on each trip. Those trips were confirmed using interceptions and/or surveillance. On the way back from purchasing heroin from Duffy on Feb. 20, 2019, Summerford’s van was stopped and the heroin was seized. The heroin that was seized at that time was tested at the Drug Enforcement Agency (DEA) Mid-Atlantic Laboratory and was positively identified as heroin weighing 98.47 grams. On Feb. 22, 2019, pursuant to a valid federal search warrant, law enforcement searched Duffy’s Sandy Springs home. During the search, a Kel-Tec 9mm pistol, 9mm and .40 caliber ammunition, a bag containing small drug baggies and a quantity of suspected narcotics were seized. Duffy admitted that he conspired with others to possess with intent to distribute between one and three kilograms of heroin, or enough heroin to provide more than 10,000-30,000 doses, from Dec. 2018 to Feb. 2019.
The case was investigated by the FBI.
Assistant U.S. Attorney Robert McCullers prosecuted the case.
Hartland Man Sentenced for Fentanyl Trafficking and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
BANGOR, Maine: A Hartland, Maine, man was sentenced today in federal court for conspiring to distribute and to possess with intent to distribute fentanyl and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Nicholas Culver, 41, to 14 years in prison and five years of supervised release. Culver pleaded guilty on December 10, 2018.
According to court records, between January 1, 2018 and July 17, 2018, Culver, on a weekly basis, obtained fentanyl from an out-of-state source of supply that he would then bring back to a residence in central Maine for distribution. On the day of his arrest, Culver was in possession of a 9-millimeter semi-automatic pistol, approximately 30 grams of fentanyl and proceeds of drug trafficking. Culver admitted to carrying the gun to deter people from robbing him during drug deals.
During the sentencing hearing, Judge Walker found that Culver was responsible for “a staggering amount of some of the most lethal poison in the illicit drug market.”
The U.S. Drug Enforcement Administration and the Somerset County Sheriff’s Office investigated the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Hartland Man Sentenced for Fentanyl Trafficking and Possessing a Firearm in Furtherance of Drug TraffickingRead the Press Release
BANGOR, Maine: A Hartland, Maine, man was sentenced today in federal court for conspiring to distribute and to possess with intent to distribute fentanyl and possessing a firearm in furtherance of drug trafficking, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Nicholas Culver, 41, to 14 years in prison and five years of supervised release. Culver pleaded guilty on December 10, 2018.
According to court records, between January 1, 2018 and July 17, 2018, Culver, on a weekly basis, obtained fentanyl from an out-of-state source of supply that he would then bring back to a residence in central Maine for distribution. On the day of his arrest, Culver was in possession of a 9-millimeter semi-automatic pistol, approximately 30 grams of fentanyl and proceeds of drug trafficking. Culver admitted to carrying the gun to deter people from robbing him during drug deals.
During the sentencing hearing, Judge Walker found that Culver was responsible for “a staggering amount of some of the most lethal poison in the illicit drug market.”
The U.S. Drug Enforcement Administration and the Somerset County Sheriff’s Office investigated the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
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Hartford Man Sentenced to Federal Prison for Role in Northeast "Grab and Go" Theft SchemeRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ANDRES BARCLETT, also known as “Coolie,” 27, of Hartford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 15 months of imprisonment, followed by two years of supervised release, for participating in an extensive commercial larceny spree.
This case stems from “Operation American Steal,” a long-term multi-agency investigation into numerous “grab and go” thefts from various retail fashion stores in Connecticut and nearby states. A “grab-and-go” scheme is a type of theft where one or more perpetrators enter a retail store, grab as many items of clothing or other goods as they can carry, leave the store without paying for the merchandise, and depart in a waiting getaway vehicle.
Barclett was part of a network of individuals who in 2019 and 2020 committed more than 50 grab and go thefts from Polo Ralph Lauren, T.J. Maxx, Balenciaga, Burberry, Macy’s, Marshalls, Dick’s Sporting Goods, Tommy Hilfiger, Sephora and other stores in Connecticut, Massachusetts, New Hampshire, Vermont, and New York. They then transported the stolen merchandise to Connecticut and sold the items on the internet or the street.
Barclett participated in at least 13 thefts resulting in losses of more than $50,000.
Judge Bryant ordered Barclett to pay $19,968.85 in restitution.
On September 15, 2020, a grand jury returned a six-count indictment charging Barclett and seven other individuals. Barclett has been detained since May 8, 2020, since his arrest on unrelated state charges. On August 25, 2021, he pleaded guilty in federal court to one count of conspiracy to transport and possess stolen property.
This matter is being investigated by the Federal Bureau of Investigation and the Hartford, New Canaan, Wrentham (Mass.), Auburn (Mass.) and Nassau County (N.Y.) Police Departments. The case is being prosecuted by Assistant U.S. Attorneys Margaret Donovan and Brendan Keefe.
Harrold Man Sentenced for AssaultRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Harrold, South Dakota, man convicted of Assault Resulting in Substantial Bodily Injury to an Intimate Partner was sentenced on November 29, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Ervin Yellow Robe, age 41, was sentenced to 32 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Yellow Robe was indicted by a federal grand jury on October 14, 2020. He pled guilty on July 29, 2021.
The conviction stemmed from an incident that occurred on March 1, 2020, in Big Bend, South Dakota, wherein Yellow Robe assaulted his intimate partner, breaking her nose.
This case was investigated by the Federal Bureau of Investigation, and Bureau of Indian Affairs – Office of Justice Services, Crow Creek Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Yellow Robe was immediately turned over to the custody of the U.S. Marshals Service.
Hardy County woman admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Barbara Ann Thomas, of Moorefield, West Virginia, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Thomas, 49, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Thomas admitted to having methamphetamine in August 2019 in Grant County.
Thomas faces up to 20 years of incarceration and 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police; and the Grant County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Halfmoon Man Sentenced for Firearms and Threats ChargesRead the Press Release
ALBANY, NEW YORK – Romano McCain, age 49, of Halfmoon, New York, was sentenced on Monday to 46 months in prison and three years of post-release supervision for his convictions at trial for possession of a firearm and ammunition by a prohibited person and two counts of interstate transmission of threats to injure.
The announcement was made by United States Attorney Carla B. Freedman; John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); and Chief David Keevern of the North Greenbush Police Department.
The evidence at trial established that in January 2020, McCain and a man had a dispute over the man’s failure to pay $65 for a motorcycle vest. In demanding payment on January 10, 2020, McCain sent the man Facebook messages threatening, “Bro..just have my money....i play with guns..no fighting....and i always have one on me...you on that bs....pay me pay money,” followed by, “i will blow your [expletive] head off.” Later in the month, McCain had a falling out with another man over money McCain owed the man. On January 31, 2020, McCain sent the second man a Facebook message threatening, “I will kill your dauther..bro..i dont know me....we at the strip in morning..be there...me and my girl...with the heat..see you there.” The man had an infant daughter at the time and “heat” is slang for a gun.
The evidence showed that “the Strip” is an area on River Road in North Greenbush, New York, where motorsport enthusiasts rode ATVs, dirt bikes, and motorcycles. On February 23, 2020, McCain went to the Strip with his girlfriend, was in a fistfight, and then retrieved a rifle from his girlfriend’s truck, which he fired in the direction of a crowd of people. Five days later, in the early-morning hours of February 28, 2020, the ATF and other law enforcement agencies executed a search warrant at McCain’s girlfriend’s house in Latham, New York, where McCain had spent the previous night. In searching a box chest at the foot of the bed in the bedroom, agents discovered a loaded .38 special caliber revolver. A box of ammunition for the revolver was discovered under a couch in the living room. In a number of text messages, McCain threatened the use of firearms and referenced his possession of firearms with his girlfriend, including after the shooting on February 23, when he texted: “We got alot [sic] of guns.” At the time he possessed the revolver and ammunition, McCain was subject to a domestic violence restraining order issued by the Albany City Court in June 2019, making his possession of the revolver and ammunition illegal under federal law.
This case was investigated by the ATF, North Greenbush Police Department, and Colonie Police Department, and prosecuted by Assistant U.S. Attorneys Cyrus P.W. Rieck and Rachel Williams.
Georgia inmate sentenced for running a multi-million-dollar fraud scheme from state prisonRead the Press Release
ROME, Ga. - Damon Thomas Young, a/k/a Morgan Sylvia, has been sentenced for his fraud scheme to steal heavy equipment worth nearly $3 million from various dealers, while serving a 20-year state sentence as an inmate with the Georgia Department of Corrections.
“Young schemed to steal millions of dollars’ worth of heavy equipment while serving a sentence for assaulting a police officer,” said U.S. Attorney Kurt R. Erskine. “Inmates should not think that the crimes they commit from prison will go unpunished just because they are already incarcerated. As in this case, inmates who commit crimes from behind bars face additional federal prison time to be served after their state sentences end.”
“Young committed an elaborate fraud scheme continuing his criminal activity even while behind bars, and for that he will be further punished by serving time in the federal prison system without the opportunity for parole,” said Alex Santiago, Acting Special Agent in Charge of FBI Atlanta. “The FBI would like to thank our state and local partners for all their hard work and persistence that will keep this criminal behind bars for a significant amount of time.”
“People committing crimes, even from behind bars, should not expect to escape accountability. The GBI continues to collaborate with federal and local partners to make sure these types of investigations lead to successful prosecution ,” said Vic Reynolds, Director, Georgia Bureau of Investigation.
“The use of contraband cell phones by inmates as a tool to continue carrying out crimes from behind the walls of our facilities will not be tolerated,” said Georgia Department of Corrections Commissioner Timothy C. Ward. “We are grateful to our law enforcement partners on every level for ensuring justice is served on this individual for his role in jeopardizing both the safe and secure operations of our facilities and the safety of the public.”
“We are very pleased that this matter has been brought to a successful conclusion through the combined efforts of our partners in state and federal government, and ourselves. This was a massive and complex investigation that required the best efforts of all the officers, agents and prosecutors assigned to the case. My congratulations to each investigative agency and to the U.S. Attorney's Office for all of their hard work,” Gordon County Sheriff Mitch Ralston.
According to U.S. Attorney Erskine, the charges and other information presented in court: Since 2010, Damon Thomas Young has been an inmate with the Georgia Department of Corrections, incarcerated first at Georgia State Prison in Reidsville, Georgia, and then at Hays State Prison in Trion, Georgia. Young is serving a 20-year state sentence for aggravated assault on a police officer and a 10-year sentence for violation of the Georgia Racketeer Influenced and Corrupt Organizations (RICO) Act. Young also has prior convictions for theft by taking, impersonating a public officer, arson, forgery, burglary and arson, and theft by deception. His maximum possible release date from state prison is June 16, 2030.
While serving his state prison sentence, in 2019, Young used a contraband cell phone to defraud, or attempt to defraud, multiple heavy equipment dealers out of equipment worth millions of dollars. Using the alias Morgan Sylvia and pretending to be a purchasing officer with AbbVie, a real biopharmaceutical company, Young ordered heavy construction equipment that he had delivered in and around Ranger, Georgia, where he and his family lived. He then put the equipment up for sale to buyers on Craigslist.
To carry out his fraud, Young called heavy equipment dealers, posed as Morgan Sylvia, a fictitious purchasing officer, and stated that he wanted to order some heavy construction equipment. Using the Sylvia alias, Young misrepresented that AbbVie needed the equipment because it was building a facility in Ranger. He ordered heavy equipment, such as wheel loaders, skid steer loaders, an excavator, a horizontal grinder, and dump trucks. Young communicated with the equipment dealers by phone, text, and email from prison. He fraudulently completed credit applications, purchase orders, sales contracts, and insurance documents and emailed them to the dealers as part of the scheme. He also emailed a fraudulent AbbVie corporate resolution document, purportedly signed by actual corporate officers of the company, but in truth he had forged the signatures on the document.
As part of his scheme, Young fraudulently ordered equipment worth over $2.8 million from six different equipment dealers. Most of the dealers caught the fraud before shipment, but Young was successful in acquiring four pieces of equipment worth over $500,000. He sold some of the stolen equipment online and used the proceeds to purchase two Chevrolet work trucks. The Gordon County Sheriff’s Office has since recovered all of the stolen equipment that was shipped.
Young, 39, of Ranger, Georgia, has been sentenced to seven years in prison, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $30,000 to the online purchaser of the stolen equipment. The Court ordered that five years of the federal sentence must run consecutively to the state sentence that Young is currently serving. Young was convicted of wire fraud and aggravated identity theft on August 27, 2021, after he pleaded guilty.
This case is being investigated by the Federal Bureau of Investigation, Gordon County Sheriff’s Office, Georgia Bureau of Investigation, and the Georgia Department of Corrections Criminal Investigations Division.
Assistant U.S. Attorney Stephen H. McClain, Chief of the Complex Frauds Section, prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Four Executives Plead Guilty to Fraud Scheme that Caused over $4.5 Million in Losses to the Small Business AdministrationRead the Press Release
Three former executives of Valley Bank, a defunct financial institution based in Moline, Illinois, and the President of Vital Financial Services (Vital Financial), a lending service provider, have pleaded guilty to scheming to defraud the Small Business Administration (SBA) in connection with its programs to guarantee loans made to small businesses.
According to court document, the defendants — Michael Slater, 65, of Clive, Iowa, former President and Founder of Vital Financial; Larry Henson, 70, of Davenport, Iowa, former President and Chairman of Valley Bank; Andrew Erpelding, 43, also of Davenport, Iowa, former Vice President and Regional Manager of Valley Bank; and Susan McLaughlin, 68, of Bettendorf, Iowa, former Vice President for Credit Administration of Valley Bank — conspired to and did fraudulently obtain loan guarantees from the SBA on behalf of Valley Bank borrowers, knowing that the loans did not meet SBA’s guidelines and requirements for the guarantees. They did so by, among other things, altering loan payment histories, renaming businesses, and hiding the fact that borrowers had previously defaulted on loans. When the fraudulently guaranteed loans defaulted, the defendants caused the submission of reimbursement requests to the SBA to purchase the defaulted loans from investors and lending institutions, thereby shifting the majority of losses on the ineligible loans to the SBA. In all, the defendants attempted to obtain guarantees on over $14 million in loans, were successful in obtaining guarantees on over $9 million in loans, and caused the SBA losses of over $4.5 million.
All four defendants pleaded guilty to conspiracy to commit wire fraud affecting a financial institution. McLaughlin pleaded guilty on Sept. 20; Erpelding on Sept. 21; Henson on Nov. 9; and Slater on Nov. 18. The defendants each face a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Richard D. Westphal for the Southern District of Iowa; Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG); Inspector General Mark Bialek of the Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau (FRB/CFPB-OIG); Inspector General Hannibal “Mike” Ware of the SBA Office of Inspector General (SBA-OIG), Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division, and Acting Inspector General Phyllis K. Fong of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) made the announcement.
The FDIC-OIG, FRB/CFPB-OIG, SBA-OIG, FBI, and FHFA-OIG investigated the case.
Trial Attorney Siji Moore of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Adam Kerndt of the Southern District of Iowa are prosecuting the case.
Former charter school official sent to prisonRead the Press Release
HOUSTON – A 65-year-old Missouri City man has been ordered to federal prison for conspiracy to commit mail fraud, announced Acting U.S. Attorney Jennifer B. Lowery.
Richard Rose pleaded guilty Aug. 17.
Today, Chief U.S. District Judge Lee H. Rosenthal imposed a 36-month prison sentence and further ordered Rose to pay restitution of $335,439.
Rose was the founder of Zoe Learning Academy. He served in various capacities to include superintendent, CEO and chief financial officer during its operations from 2001 until it closed in September 2019.
At the time of his plea, he admitted he filed falsified governance reports through the U.S. mail to obtain charter school funds. He embezzled funds intended for the charter school’s operation and used them for his personal expenses such as legal fees, a lawsuit settlement and for the purchase of a timeshare.
Rose was permitted to remain on bond and voluntarily surrender to a Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation, Secret Service, Department of Education-Office of Inspector General and the FBI conducted the investigation. Assistant U.S. Attorney Belinda Beek and Quincy Ollison prosecuted the case.
Former State Department Employee Sentenced to Federal Prison for Embezzling more than $150,000 from Department of DefenseRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Roudy Pierre-Louis, 49, a citizen of Haiti and former State Department employee, was sentenced to more than a year in federal prison after pleading guilty to committing Wire Fraud.
Evidence presented to the court showed that from 2015 through August 2018, Pierre-Louis was an employee of the State Department who worked at the Embassy of Haiti as the sole budget analyst for the Security Coordination Office (SCO). In this role, Pierre-Louis was responsible for managing all lines of accounting for the State Department and Department of Defense (DoD) associated with the SCO, which included per diem cash advances for individuals travelling to United States Southern Command events. Pierre-Louis also was designated as the SCO’s Occasional Money Holder, allowing him to receive cash on behalf of other individuals who did not have full access to the Embassy in order to obtain cash advances for travel expenses, including, but not limited to, per diem, lodging, and air fare.
The Embassy maintained a vault, or “cash cage,” from which cash advances could be disbursed to employees providing documentation of supervisory approval. This cash cage was reconciled on a daily basis, as cash on hand along with approved disbursements were required to be reconciled and approved by a financial officer with the State Department in order to balance and replenish the cash supply.
Beginning in 2015 and continuing through at least August 2018, Pierre-Louis submitted fraudulent vouchers and supporting documents for cash advances in the names of Haitian Nationals that contained forged signatures of requesting and approving DoD supervisors.
Unaware of this fraud, the Department of State released these cash funds to Pierre-Louis, which were subsequently reimbursed by the Department of Defense. During the relevant time period, from 2015 to August 2018, Pierre-Louis embezzled at least $156,950 from his wire fraud scheme.
United States District Judge Richard M. Gergel sentenced Pierre-Louis to 12 months and one day in federal prison, to be followed by a three-year term of court-ordered supervision, and ordered that Pierre-Louis pay full restitution in this case. There is no parole in the federal system.
The case was investigated by the State Department Office of Inspector General’s Charleston, South Carolina Field Office, and the Major Procurement Fraud Unit of the U.S. Army Criminal Investigation Command.
Assistant United States Attorney Allessandra Stewart prosecuted the case.
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Former St. Tammany Parish Sheriff Jack Strain Pleads Guilty to Soliciting and Receiving Bribes Involving Contract for Privatization of Work Release Program in St. Tammany ParishRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that former long-time St. Tammany Parish Sheriff RODNEY J. STRAIN (a/k/a Jack Strain), age 56, from Abita Springs, Louisiana, pleaded guilty today before United States District Judge Jane Triche Milazzo to Count 15 of the Indictment returned in August 2019, charging him with soliciting and receiving bribes, in violation of Title 18, United States Code, Section 666(a)(1)(B) for his role in the privatization and operation of a work release program that operated in Slidell, Louisiana between 2013 and 2016.
According to court documents, STRAIN, who was the Sheriff of St. Tammany Parish from about 1996 to 2016, had the unilateral authority to decide whether Parish-run work release programs (i.e., halfway houses) would be operated by the Sheriff’s Office or private entities and to choose which private entities would be granted the right to operate privately-run halfway houses. In about early 2013, STRAIN decided to privatize a work release program in Slidell, Louisiana. He discussed with his two close associates and Captains with the St. Tammany Parish Sheriff’s Office (STPSO), David Hanson and Clifford “Skip” Keen, the prospect of Hanson and Keen becoming joint owners of the Slidell work release program. However, St. Tammany Parish Sheriff’s Office employees advised STRAIN that state law prohibited Hanson and Keen from owning and operating the Slidell work release program while employed at STPSO. As a result, since state law prohibited employees from “participating in a transaction in which he has a personal substantial economic interest of which he may be reasonably expected to know involving the governmental entity,” Hanson and Keen would have had to resign from STPSO if they wanted to assume ownership and control of the Slidell work release program. Thus, they would be obliged to forfeit their salaries and pension increases from continued employment with STPSO to become joint owners.
STRAIN, Hanson, and Keen discussed ways to allow Hanson and Keen to maintain their employment and still profit from the Slidell work release program. To conceal their scheme, STRAIN, Hanson, and Keen agreed to make Keen’s adult son (J.K.) and Hanson’s adult daughter (B.H.) owners of the Slidell work release program, with the understanding that J.K. and B.H. would funnel much of the profits to Hanson and Keen. Hanson and Keen agreed to give regular payoffs to STRAIN and his selected family members from the funds they received. This understanding was partly based on STRAIN having previously required Keen to kickback to STRAIN half of the money Keen earned from an earlier place of employment.
STRAIN, Hanson, and Keen agreed that they needed to find another individual to actually operate the Slidell work release program because J.K. and B.H. lacked the education, training, experience, and funding to do so. They decided on Person 2, to whom Hanson presented a series of non-negotiable pre-conditions, including the following: J.K. and B.H. would each own forty-five (45) percent of the Slidell work release program and would each receive forty-five (45) percent of the profits, while Person 2 would only own ten (10) percent, receive ten (10) percent of the profits, and receive a salary. Person 2 would be responsible for operating the Slidell work release program and for providing the capital necessary to initiate the program. On or about May 1, 2013, J.K., B.H., and Person 2 entered into an operating agreement that created St. Tammany Workforce Solutions, LLC, in which J.K. and B.H. each had a forty-five percent ownership interest and Person 2 had only a ten percent ownership interest.
On June 4, 2013, STRAIN entered into a cooperative endeavor agreement (“privatization agreement”) on behalf of STPSO with St. Tammany Workforce Solutions, LLC, a corporation designed to operate the Slidell work release program. Thereafter, Person 2 was directed to make additional unnecessary financial expenditures. For example, although J.K. and B.H. were merely straw owners who neither operated, oversaw, or administered the Slidell work release program, Person 2 was required to pay J.K. and B.H. salaries in addition to their ownership disbursements. Person 2 was also directed to pay Person 3, who was an employee at STPSO and STRAIN’S relative, approximately $30,000 per year for a no-show job at the Slidell work release program.
During the time St. Tammany Workforce Solutions, LLC operated the Slidell work release program, from July 1, 2013, through July 1, 2016, J.K. and B.H. received not less than $1,384,000 from St. Tammany Workforce Solutions, LLC in the form of ownership disbursements, salary payments, and occasional lump sum miscellaneous payments. J.K. received at least 148 payments totaling at over $676,000, while B.H. received at least 133 payments totaling over $708,000. J.K. and B.H. converted the majority of the money they received from St. Tammany Workforce Solutions, LLC to cash, much of which they transferred to their fathers, Keen and Hanson.
Additionally, STRAIN, Hanson, and Keen understood that STRAIN and his family members would receive payoffs from Hanson and Keen in exchange for STRAIN’s conferring the right to operate the Slidell work release program on St. Tammany Workforce Solutions, LLC. The bribes took multiple forms. The ways Hanson and Keen funneled money to STRAIN included giving STRAIN regular cash payments in amounts greater than $1,000 from the money they received from St. Tammany Workforce Solutions LLC, through B.H. and J.K. Second, as part of the scheme, Hanson arranged for STRAIN’s relative, Person 1, to receive a check in the amount of $4,000. Third, STRAIN received campaign money from Hanson and Keen with money from St. Tammany Workforce Solutions, LLC, including a $2,500 payment in November 2015. Further, STRAIN’s relative received a no-show job from the Slidell work release program that effectively doubled his annual salary.
STRAIN, Hanson, Keen, and others attempted to conceal the scheme by, among other things, (a) hiding Hanson’s and Keen’s involvement in and benefit from the Slidell work release program, (b) excluding from the cooperative endeavor agreement the fact that STRAIN would receive cash bribes and other financial compensation in exchange for signing the cooperative endeavor agreement, and (c) providing most of the money to STRAIN in the form of cash.
Hanson and Keen were charged for their roles in the scheme in November 2018. They pleaded guilty on February 27, 2019 and were each sentenced to fifty (50) months in prison by United States District Judge Ivan L.R. Lemelle on October 6, 2021.
“Mr. Strain broke the law and must now face the consequences, “stated U.S. Attorney Duane A. Evans. “More disturbing was that his crime was a breach of the public trust owed to the citizens of St. Tammany Parish. Similarly, because the trust between our law enforcement agencies and the citizens they protect is precious, it is imperative that collectively, we assure the public of our unwavering commitment to identity and prosecute anyone who engages in public corruption.”
“Rooting out public corruption remains one of the IRS-CI’s highest priorities,” said Special Agent in Charge James E. Dorsey, IRS Criminal Investigation, Atlanta Field Office. “Today’s guilty plea underscores our commitment to work in a collaborative effort to promote honest and ethical government at all levels and to prosecute those who violated the public’s trust.”
“When a law enforcement officer chooses to violate their oath of office and commit crimes, their actions erode public trust and confidence and tarnish the entire community of dedicated public servants. Today’s guilty plea is a result of the FBI’s commitment to bringing corrupt officials to justice like former sheriff Jack Strain, who engaged in deceitful, corrupt practices involving kickbacks and bribery schemes for personal gain, will be held accountable,” said FBI New Orleans Special Agent in Charge Douglas A. Williams, Jr. "We thank our partners at the United States Attorney's Office, Eastern District of Louisiana, Internal Revenue Service Criminal Investigation Division, and Metropolitan Crime Commission for their strong partnership and unrelenting pursuit of justice."
STRAIN faces a maximum term of imprisonment of up to ten (10) years. He also faces a fine of up to $250,000, up to three years supervised release after imprisonment, and a mandatory $100 special assessment fee. STRAIN has also acknowledged that he may be liable for restitution ordered by Judge Milazzo. As part of the plea, the Government has made no representation, and cannot determine, the order in which he will serve any sentence of imprisonment imposed in this matter and in any currently pending state criminal matter in which he is a defendant. Sentencing before Judge Milazzo has been scheduled for March.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division and thanks the Metropolitan Crime Commission for its assistance. Assistant United States Attorneys Jordan Ginsberg, Chief of the Public Corruption Unit, Elizabeth Privitera, Chief of the Violent Crime Unit, and J. Ryan McLaren are in charge of the prosecution.
Former Rochester Housing Authority Chair Convicted by A Federal Jury on 28 Counts Including Multiple Fraud Charges, Money Laundering and Lying to the FBIRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that a federal jury has convicted George H. Moses, 52, of Rochester, NY, on 28 of 29 counts for his role in defrauding three nonprofit organizations; Rochester Housing Charities (RHC), which provides housing to the elderly and disabled; the North East Area Development (NEAD), which assists low-income residents in the northeast quadrant of Rochester; and Quad A for Kids, which provided after-school and extended-day learning programs at some elementary schools in the Rochester City School District. Moses was also the Chairman of the Board of Commissioners of the Rochester Housing Authority (RHA). The charges include mail fraud, wire fraud, federal program fraud, tax fraud, money laundering, and lying to the FBI. The charges cumulatively carry a maximum penalty of more than 200 years in prison.
Assistant U.S. Attorneys Richard A. Resnick, Melissa M. Marangola, and Meghan K. McGuire, who handled the prosecution of the case, stated that Moses used money from the RHC and grant funds earmarked for the community for his own personal use, including to purchase a vehicle, a time share in Florida, a cruise, tickets to a New York Knicks game at Madison Square Garden, health products, car repairs for his family’s vehicles, personal credit card payments, and multiple trips to Canada to visit his girlfriend at the apartment they had in Canada. Moses also paid wages to approximately 17 family members employed by NEAD and RHC.
In addition to defrauding Rochester Housing Charities and the Rochester Housing Authority, Moses was also convicted of:
• Two counts of lying to the FBI regarding his hiring of Adam McFadden as a subcontractor for RHC in 2015. McFadden, a former city councilmember, pleaded guilty to defrauding RHC with respect to the subcontract and is awaiting sentencing. Moses concealed the fact that he hired McFadden after McFadden was forced to resign as the Interim Executive Director of the RHA.
• Defrauding the Dormitory Authority of the State of New York (DASNY). As Executive Director of the NEAD, Moses applied for a $125,000 grant for renovation of the Freedom Market, owned by Freedom Community Enterprise Inc., a subsidiary of NEAD. After receiving the grant, Moses and a co-conspirator Shirley Boone tricked DASNY into believing that NEAD paid Freedom Community $45,000 for construction work which never occurred. As a result, DASNY reimbursed NEAD $45,000 to which it was not entitled. Moses used the funds to pay wages to his family members employed by NEAD.
• Five counts of filing false tax returns for the years 2014 through 2018. He failed to report income he received from NEAD and the RHC, as well as took false deductions with respect to his wife’s cleaning business and falsely claimed childcare expenses.“As a leader in the Rochester Housing Authority, George Moses was in a position of trust with access to public funding intended for those most in need in our community,” stated U.S. Attorney Ross. “As a federal jury concluded, George Moses broke that trust, stole public funding, and will now face the consequences for the choices he made.”
The verdict is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, the Department of Housing and Urban Development, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Machelle Jindra, and Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
Sentencing will be scheduled at a later date before Chief Judge Elizabeth A. Wolford who presided over the trial.
Former Employee of Technology Company Charged with Stealing Confidential Data and Extorting Company for Ransom While Posing as Anonymous AttackerRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced the arrest today of NICKOLAS SHARP for secretly stealing gigabytes of confidential files from a New York-based technology company where he was employed (“Company‑1”), and then, while purportedly working to remediate the security breach, extorting the company for nearly $2 million for the return of the files and the identification of a remaining purported vulnerability. SHARP subsequently re-victimized his employer by causing the publication of misleading news articles about the company’s handling of the breach that he perpetrated, which were followed by a significant drop in the company’s share price associated with the loss of billions of dollars in its market capitalization.
SHARP was arrested earlier today in the District of Oregon and will be presented this afternoon before U.S. Magistrate Judge John V. Acosta. The case was assigned to U.S. District Judge Katherine Polk Failla.
U.S. Attorney Damian Williams said: “As alleged, Nickolas Sharp exploited his access as a trusted insider to steal gigabytes of confidential data from his employer, then, posing as an anonymous hacker, sent the company a nearly $2 million ransom demand. As further alleged, after the FBI searched his home in connection with the theft, Sharp, now posing as an anonymous company whistle-blower, planted damaging news stories falsely claiming the theft had been by a hacker enabled by a vulnerability in the company’s computer systems. Now the alleged theft and lies have been exposed, and Sharp is facing serious federal charges.”
FBI Assistant Director Michael J. Driscoll said: “We allege Mr. Sharp created a twisted plot to extort the company he worked for by using its technology and data against it. Not only did he allegedly break several federal laws, he orchestrated releasing information to media when his ransom demands weren't met. When confronted, he then lied to FBI agents. Mr. Sharp may have believed he was smart enough to pull off his plan, but a simple technical glitch ended his dreams of striking it rich.”
According to the Indictment unsealed today in Manhattan federal court[1]:
At all times relevant to the Indictment, Company-1 was a technology company headquartered in New York that manufactured and sold wireless communications products, and whose shares were traded on the New York Stock Exchange. NICKOLAS SHARP, the defendant, was employed by Company-1 from in or about August 2018 up to and including on or about April 1, 2021. SHARP was a senior developer who had access to credentials for Company-1’s Amazon Web Services (“AWS”) and GitHub Inc. (“GitHub”) servers.
In about December 2020, SHARP repeatedly misused his administrative access to download gigabytes of confidential data from his employer. For the majority of this cybersecurity incident (the “Incident”), SHARP used a virtual private network service that he subscribed to from a company named Surfshark to mask his Internet Protocol (“IP”) address when he accessed Company-1’s AWS and GitHub infrastructure without authorization. At one point during the exfiltration of Company-1 data, SHARP’s home IP address became unmasked following a temporary internet outage at SHARP’s home.
During the course of the Incident, SHARP caused damage to Company-1’s computer systems by altering log retention policies and other files, to conceal his unauthorized activity on the network. In or about January 2021, while working on a team remediating the effects of the Incident, SHARP sent a ransom note to Company-1, posing as an anonymous attacker who claimed to have obtained unauthorized access to Company-1’s computer networks. The ransom note sought 50 Bitcoin, a cryptocurrency – which was the equivalent of approximately $1.9 million, based on the prevailing exchange rate at the time – in exchange for the return of the stolen data and the identification of a purported “backdoor,” or vulnerability, to Company-1’s computer systems. After Company-1 refused the demand, SHARP published a portion of the stolen files on a publicly accessible online platform.
On or about March 24, 2021, FBI agents executed a search warrant at SHARP’s residence in Portland, Oregon, and seized certain electronic devices belonging to SHARP. During the execution of that search, SHARP made numerous false statements to FBI agents, including, among other things, in substance, that he was not the perpetrator of the Incident and that he had not used Surfshark VPN prior to the discovery of the Incident. When confronted with records demonstrating that SHARP purchased the Surfshark VPN service in July 2020, approximately six months prior to the Incident, SHARP falsely stated, in part and substance, that someone else must have used his PayPal account to make the purchase.
Several days after the FBI executed the search warrant at SHARP’s residence, SHARP caused false news stories to be published about the Incident and Company-1’s response to the Incident and related disclosures. In those stories, SHARP identified himself as an anonymous whistleblower within Company-1 who had worked on remediating the Incident. In particular, SHARP falsely claimed that Company-1 had been hacked by an unidentified perpetrator who maliciously acquired root administrator access to Company-1’s AWS accounts. In fact, as SHARP well knew, SHARP had taken Company-1’s data using credentials to which he had access in his role as Company‑1’s AWS cloud administrator, and SHARP had used that data in a failed attempt to extort Company-1 for millions of dollars.
Following the publication of these articles, between March 30, 2021, and March 31, 2021, Company-1’s stock price fell approximately 20%, losing over $4 billion in market capitalization.
SHARP, 36, of Portland, Oregon, is charged in four counts. The first count charges him with transmitting a program to a protected computer that intentionally caused damage, which carries a maximum sentence of 10 years in prison. The second count charges transmission of an interstate threat, which carries a maximum sentence of two years in prison. The third count charges wire fraud, which carries a maximum sentence of 20 years in prison. The fourth count charges the making of false statements to the FBI, which carries a maximum sentence of five years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the extraordinary work of the FBI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Vladislav Vainberg is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former Chief Lending Officer of New Jersey Bank Sentenced to 18 Months in Prison for Making False Statements to United States to Secure Federal Guarantees on LoansRead the Press Release
TRENTON, N.J. – A Pennsylvania man was sentenced today to 18 months in prison for securing a federal guarantee on certain loans by making false statements to the Small Business Administration (SBA) about the creditworthiness of those loans while serving as the chief lending officer of a New Jersey bank, Acting U.S. Attorney Rachael A. Honig announced.
James Bortolotti, 53, previously pleaded guilty before U.S. District Judge Michael Shipp in Trenton federal court to an information charging him with one count of knowingly making false statements for the purpose of influencing the action of the SBA. Judge Shipp imposed the sentence by videoconference today.
According to documents filed in this case and statements made in court:
While serving as the chief lending officer of a New Jersey bank (Bank-1), Bortolotti became aware of a Small Business Administration lending program to incentivize lenders, including banks, to loan money to small businesses by providing a 75 percent SBA-backed guarantee on loans. When a lender applies an SBA guarantee on a loan, the lender must disclose information related to the creditworthiness of the small business. Bank-1 hired a consulting firm to help the bank apply for SBA-backed guarantees.
On Feb. 29, 2012, a consultant from the consulting firm submitted an application to the SBA for a guarantee of approximately $3.75 million on loans totaling approximately $5 million made to a small business located in Robbinsville, New Jersey. The application contained false information related to the creditworthiness of the business. Bortolotti knew the application contained false information, but he nevertheless reviewed and signed the application on behalf of the bank.
In addition to the prison term, Judge Shipp sentenced Bortolotti to three years of supervised release and ordered him to pay restitution of $3.17 million to the SBA.
Acting U.S. Attorney Honig credited special agents of the SBA-Office of the Inspector General (SBA-OIG), Eastern Region, under the direction of Special Agent in Charge Amaleka McCall-Brathwaite; the FDIC-Office of the Inspector General (FDIC-OIG), under the direction of Inspector General Jay N. Lerner; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG), under the direction of Special Agent in Charge Robert Manchak, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Chief of the U.S. Attorney’s Office Health Care Fraud Unit in Newark.
Former Chief Financial Officer of Publicly Traded Company Sentenced to Two Years for Significant Securities FraudRead the Press Release
The former chief financial officer of Roadrunner Transportation Systems Inc. (Roadrunner), a publicly-traded trucking and logistics company formerly headquartered in Cudahy, Wisconsin, was sentenced yesterday in the Eastern District of Wisconsin to 24 months in prison for his role in a complex securities and accounting fraud scheme.
According to court documents and evidence produced at trial, Peter R. Armbruster, 62, of Milwaukee, Wisconsin, participated in a sophisticated accounting fraud scheme that resulted in Roadrunner filing materially false financial statements with the SEC for the third quarter of 2016. Evidence presented at trial showed that Armbruster inflated Roadrunner’s reported income by misrepresenting Roadrunner’s expenses. His actions caused the investing public to lose tens of millions of dollars when Roadrunner eventually announced that it would need to restate its previously filed financial statements, triggering a sharp drop in the company’s stock. On July 29, following an 11-day trial, a jury convicted Armbruster of four counts of violating federal securities laws, including misleading a public company’s auditors, securities fraud, and keeping false books and records.
“This sentence reflects the serious harm an executive caused by deliberately misleading shareholders, auditors, and the general public about the financial health of a publicly traded company,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “People deserve better from corporate management. The Criminal Division remains committed to fighting white-collar crime, protecting investors, and safeguarding the integrity of our markets from C-suite executives who commit accounting and securities fraud.”
“Peter Armbruster failed to honestly perform his corporate duties, costing investors tens of millions of dollars in losses,” said Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division. “Corporate fraud remains a top priority for the FBI, as stamping out illegal activity like this scheme is essential to preserving confidence in our collective ability to invest for a brighter tomorrow. This sentencing shows that the FBI and our law enforcement partners vigilantly protect American investors from corporate fraud while holding accountable those who undermine our way of life.”
“This sentencing sends a strong message that those who commit transportation-related financial fraud will be held accountable,” said Special Agent in Charge Andrea M. Kropf of the Department of Transportation Office of Inspector General, Midwestern Region. “Together with our law enforcement and prosecutorial partners, we will continue to identify, investigate, and pursue those who perpetrate complex criminal schemes for profit.”
The FBI’s Milwaukee Division and the Department of Transportation’s Office of Inspector General are investigating the case.
Trial Attorneys Emily Scruggs and Kyle Hankey and Acting Principal Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section prosecuted the case. Assistant U.S. Attorney Caitlin R. Cottingham, formerly of the Fraud Section, provided valuable assistance.
Federal Jury Convicts Pennsylvania Man and New Mexico Man for Their Roles in Fraud, Money Laundering & Obstruction ConspiraciesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that Nathan J. Peachey, age 50, of Pennsylvania, and John Rick Winer, age, 67 of New Mexico, were convicted by a federal jury in Sioux Falls, South Dakota, after a seven-day trial before U.S. District Judge Karen E. Schreier. The guilty verdicts were returned on November 23, 2021.
Peachey was convicted of Conspiracy to Commit Wire Fraud, Conspiracy to Launder Monetary Instruments, Conspiracy to Obstruct Justice, and nine counts of Laundering Monetary Instruments. Winer was likewise convicted of the three conspiracy offenses, in addition to four counts of Wire Fraud and five counts of Laundering Monetary Instruments. The jury also returned a special verdict relating to the forfeiture of a residence in Norway, a luxury vehicle, and silver coins.
“Luring victims into believing their money would be invested to better humanity, the defendants engaged in a long-running, international scheme to steal and launder victims’ money for self-enrichment,” said Acting U.S. Attorney Dennis R. Holmes. “The jury’s verdict validates the extensive work of this Office and of its law enforcement partners across the United States and in Norway. Together, we will continue to use every available tool to combat and prevent criminals from exploiting victims for personal benefit.”
“Mr. Peachey and Mr. Winer preyed on the charitable hearts of innocent victims. IRS Criminal Investigation is committed to unraveling complex schemes that send victim’s money overseas. We will continue to work with our law enforcement partners to track ill-gotten gains and bring these criminals to justice,” said Special Agent in Charge, Tyler Hatcher, IRS Criminal Investigation, St. Louis Field Office.
“During the trial, we heard evidence of the defendants boasting on tape about their ability to con ‘99-percent of the population,’ which shows that anyone can become a victim of a scam,” said FBI Special Agent in Charge Michael Paul. “But it only strengthens our resolve to hold these con men responsible for their actions, no matter the type of scam or their intended target.”
The maximum penalties for each counts of conviction are 20 years in prison, a $250,000 fine, or both imprisonment and a fine, a term of three years of supervised release, a $100 special assessment to the Federal Crime Victims Fund, restitution, and forfeiture.
Defendants Nathan Peachey and John Rick Winer were originally indicted by a federal grand jury on November 5, 2019. A second Superseding Indictment was filed on October 6, 2020.
According to evidence presented at trial, Peachey resided in and operated from the State of Pennsylvania and from a suburb of Oslo, Norway. Peachey aided in soliciting millions of dollars from investors in the United States, and he received funds from others who were involved in the fraud scheme. Funds obtained by and through Peachey were, in part, laundered through and into domestic and international bank accounts. After his receipt of funds, Peachey would transfer or wire funds to his co-conspirators, and he also would use funds on personal expenditures.
Winer resided and operated from New Mexico, among other places. Winer recruited individuals from South Dakota and elsewhere to invest in various projects, and he solicited funds that were obtained through the fraud scheme. After his receipt of funds, Winer would transfer or wire funds to his co-conspirators and others known and unknown to the Grand Jury, and he also would use funds on personal expenditures.
As to the scheme to defraud the victims across the country, Peachey and Winer, along with their co-conspirators, informed investors that the monies provided to one or more of the co-conspirators would be used for charitable or humanitarian projects, oftentimes using religion to entice and induce victims into investing money in the scheme. They also made promises that there would be a return on investments. Peachey and Winer informed investors that the monies provided to one or more of the co-conspirators would not be expended on personal expenses. Investor money was not used for charitable or for humanitarian projects, and investors never received a return on investments relating to the monies provided to Peachey, Winer or their co-conspirators. The purpose of the conspiracy was to enrich the co-conspirators, all of whom amassed nearly $13 million and then spent the fraud proceeds on a luxury residence located in a suburb of Oslo, Norway, renovation costs on the house, a Mercedes Benz, nearly $4 million in silver, travel, and personal expenses. This fraud scheme impacted victims from around the United States, including South Dakota, Minnesota, Arizona, New Mexico, Florida, Colorado, Pennsylvania, and North Carolina.
Peachey, Winer, and their co-conspirators utilized, independently or jointly, entities to perpetrate the fraud scheme, including, but not limited to: AG Enterprises, L.L.C.; House of Winer; Jacobs Provision Trust; The Joseph Project; Jericho Outreach; Jericho Outreach – Norway; Christian Charity Foundation; and G47 Initiative. These entities were fake and used to receive fraud proceeds and launder money.
Through extensive coordination and partnership, this complex, long-running fraud and money laundering case was investigated and prosecuted by the following entities:
- Internal Revenue Service Criminal Investigation;
- Federal Bureau of Investigation;
- ØKOKRIM, the Norwegian National Authority for Prosecution and Investigation of Economic and Environmental Crime, Oslo, Norway;
- Oslo, Norway, Police Department;
- Department of Justice’s Office of International Affairs; and
- South Dakota Division of Criminal Investigation.
Assistant U.S. Attorneys Jeremy R. Jehangiri and Ann M. Hoffman prosecuted the case.
A presentence investigation was ordered and a sentencing date was set for February 14, 2022. The defendants were released pending their sentencing hearings.
Eau Claire Felon Sentenced to 4 Years for Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Gavin Potter, 21, Eau Claire, Wisconsin was sentenced yesterday by Chief U.S. District Judge James D. Peterson to 4 years in prison for being a felon in possession of a firearm. The prison term will be followed by 3 years of supervised release. Potter pleaded guilty to this charge on September 14, 2021.
In December 2020, Potter was taken into custody as the result of an investigation of a state crime. Following his arrest, officers executed a search warrant at Potter’s residence and found a SIG Sauer P320 9mm handgun, firearm magazines, ammunition, and marijuana in a safe. Detectives determined that after his arrest, Potter’s girlfriend took the gun from his bedroom and gave it to his stepfather, who put it in the safe.
The investigation by the Eau Claire County Sheriff’s Office revealed that a couple of weeks before he was taken into custody, Potter traded a Ruger LCP .380 pistol for the SIG P320 9mm. Potter’s phone showed internet searches for firearms, corroborated the firearm trade, and suggested that he was involved in drug trafficking.
At the time of his arrest, Potter was on supervision for state convictions for felony burglary and possessing a short-barreled shotgun. Potter also has served time in state prison for trafficking marijuana. At sentencing, Judge Peterson remarked that for his age, Potter has a serious criminal history. Because of Potter’s dangerous conduct, Judge Peterson said that it was the Court’s responsibility to keep the community safe.
The charge against Potter was the result of an investigation conducted by the Eau Claire County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan handled the prosecution.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Dundalk Man Sentenced to More Than Two Years in Federal Prison for Charges Related to Aggravated Identity Theft, Sale of Stolen Citizenship Documents and Counterfeit Driver’s LicensesRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander sentenced Orvil Perez-Jimenez, age 34, of Dundalk, Maryland to two years and four months in federal prison, followed by three years of supervised release for the transfer of false identification documents, the sale of citizenship documents, and aggravated identity theft.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Andrew Wroblewski of the U.S. Department of State’s Diplomatic Security Service (DSS)- Washington Office.
According to his guilty plea, from 2017 to March 2020, Perez-Jimenez obtained birth certificates and social security cards issued to real U.S. citizens, without those individuals’ knowledge or consent. He then sold these identification documents to alien clients living in the United States. Additionally, Perez-Jimenez sold fraudulent identification cards to the alien clients listing the victim citizens’ personal identifying information but displaying photos of his alien clients.
Specifically, in 2017, Perez-Jimenez agreed to sell birth certificates, social security cards, and false driver’s licenses to a married couple living in Maryland without lawful status to reside in the United States (Individual 1 and Individual 2) for $5,000. After directing the couple to produce two passport-sized photos of themselves, Perez-Jimenez fraudulently obtained the birth certificates and social security cards issued in the names of two real U.S. citizens residing in Puerto Rico. Perez-Jimenez also obtained fake Puerto Rican driver’s licenses listing the names of the two citizens but displaying the photos of Individual 1 and Individual 2, respectively.
Individual 1 and Individual 2 then used identity documents purchased from Perez-Jimenez to make false applications for U.S. passports, fraudulently obtain employment eligibility verification with U.S. Citizenship and Immigration Services, open financial accounts, and obtain Maryland driver’s licenses in the names of the victims residing in Puerto Rico.
As stated in his plea agreement, on February 8, 2020, Perez-Jimenez informed an undercover DSS agent that he could provide a Puerto Rican birth certificate, driver’s license, and a social security card. On February 11, 2020, Perez-Jimenez asked the agent to provide his height, weight, hair color, skin color, and two passport-sized photos of himself, as well as $1,000 as a deposit. Perez-Jimenez and the DSS agent met two days later, and the agent provided Perez-Jimenez the information requested including the photos, and $1,000 in cash.
On March 12, 2020, Perez-Jimenez met with the agent in Baltimore, Maryland, provided him with the falsified identity documents and accepted an agreed upon final payment of $2,000 in cash. Perez-Jimenez was subsequently arrested. The identity documents included a birth certificate and social security card issued in the name of a real U.S. citizen residing in Puerto Rico, as well as a fake Puerto Rico driver’s license. The counterfeit driver’s license that Perez-Jimenez procured for the agent displayed the photo of the agent and the identifying information of the victim living in Puerto Rico.
During the search of Perez-Jimenez’s person, vehicle, and residence, law enforcement recovered an Internal Revenue Service Form W-2 in the victim’s name, a cell phone, and other documents and electronic devices.
Examination of the cell phone revealed communications between Perez-Jimenez and other persons about procuring identification documents, including discussions about obtaining passport-sized photos and physical descriptions for the purpose of creating fake driver’s licenses and photos of identification documents issued in a victim’s name.
United States Attorney Erek L. Barron commended the DSS for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Matthew J. Maddox, who prosecuted the case.
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Distributor of More than 100 Pounds of Fentanyl Sentenced to Almost Six Years in PrisonRead the Press Release
Assistant U. S. Attorney Meghan E. Heesch (619) 546-9442
NEWS RELEASE SUMMARY – December 1, 2021
SAN DIEGO – Ernesto Renteria of Chula Vista was sentenced in federal court today to 71 months in custody for distributing more than 100 pounds of deadly fentanyl plus fentanyl analogues, cocaine and methamphetamine.
According to his plea agreement, in May 2021, Renteria stored large quantities of the federally controlled substances at his house in Chula Vista and was shipping them to distributors across the country via UPS. In total, DEA agents seized from Renteria 49.1 kilograms (108.2 pounds) of fentanyl; 7 kilograms of cocaine; 4 kilograms of fentanyl analogue; and 1.8 kg methamphetamine. Agents also seized packaging materials and GPS tracking devices.
This seizure of fentanyl is yet another example of drug cartels pushing huge quantities of fentanyl into the San Diego community. On November 19, 2021, authorities at the Otay Mesa port of entry made a record-breaking seizure of 17,584 pounds of methamphetamine and 388.93 pounds of fentanyl from a commercial trailer attempting to enter the U.S. The driver of the vehicle, Carlos Martin Quintana-Arias, faces narcotics importation charges.
DEA agents across the country have seized a record-high 12,000 pounds of fentanyl this year.
“Fentanyl is an incredibly dangerous drug that is destroying lives and families in our community and across the nation,” said Acting U.S. Attorney Randy S. Grossman. “Our office will continue to aggressively prosecute those responsible for distributing this poison and profiting from the opioid epidemic.” Grossman praised the prosecution team and DEA agents for their excellent work on this case.
“The quantity of fentanyl DEA agents seized from Ernesto Renteria is disturbing,” said DEA Acting Special Agent in Charge Shelly S. Howe. “Had DEA not seized these deadly drugs prior to distribution, many Americans could have died from a fentanyl overdose. The DEA will continue to prioritize investigations targeting fentanyl drug traffickers to fight the growing number of overdose deaths in our country.”
Fentanyl analogues like the ones possessed by Renteria are particularly dangerous because the chemical structure can be manipulated to increase the potency. Since 2018, fentanyl analogues have been temporarily classified by the Drug Enforcement Administration as a Schedule I controlled substance. The temporary schedule expires in February 2022. In January 2020, all four U.S. Attorneys in California called on Congress to strengthen federal prosecutors’ toolkits by permanently scheduling all fentanyl analogues as Schedule I controlled substances.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
DEFENDANT Case Number 21cr1594-CAB
Ernesto Renteria Age: 45 Chula Vista, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances, in violation of 21 U.S.C. 841 and 846
Maximum Penalty: Life in prison; $10 million fine
AGENCY
Drug Enforcement Administration
Defendant Sentenced to 24 Years in Prison for 2015 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that BRYANT BROWN, a/k/a “Trigga,” was sentenced by U.S. District Judge Paul A. Engelmayer yesterday to 24 years in prison for the December 2015 murder of Albendris Nunez and a 2017 armed robbery.
U.S. Attorney Damian Williams said: “On a Sunday morning in 2015, Bryant Brown shot and killed Albendris Nunez in Devoe Park in the Bronx over $600 of marijuana. For this senseless killing, Brown will serve a substantial sentence in federal prison.”
According to the allegations in the Indictment and other filings and statements made in court:
On or about December 20, 2015, BROWN attempted to rob Nunez of approximately $600 worth of marijuana in Devoe Park in the Bronx, New York. BROWN set up the purported drug deal with Nunez over Facebook and instructed Nunez to meet him in Devoe Park. BROWN brought a gun and planned to rob Nunez during this meeting and, during the planned robbery, shot Nunez in the back, killing him.
On or about November 18, 2017, BROWN and a co-conspirator robbed a victim of liquid promethazine with codeine, also known as “wock” or “lean,” inside a residential apartment building in the Bronx, New York. BROWN brought a gun to this robbery and struck the victim in the face with it.
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In addition to his prison sentence, BROWN, 26, was sentenced to three years of supervised release.
Mr. Williams praised the outstanding investigative work of the New York City Police Department in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jamie Bagliebter and Mollie Bracewell are in charge of the prosecution.
Davante Harrison (“YGG Tay”) Sentenced to 15 Years in Federal Prison for Drug Conspiracy and Related Gun and Drug ChargesRead the Press Release
Baltimore, Maryland – U.S. District Judge Paul W. Grimm sentenced Davante Harrison, a/k/a “YGG Tay,” age 27, of Baltimore, yesterday to 15 years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute fentanyl, heroin, cocaine, and crack cocaine; possession with intent to distribute heroin; being a felon in possession of a firearm; and possession of a firearm in furtherance of a drug trafficking crime. Harrison was convicted of those charges by a federal jury on August 20, 2021, after a five-day trial.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Commissioner Michael Harrison of the Baltimore Police Department; and Chief Amal E. Awad of the Anne Arundel County Police Department.
According to the evidence presented at his five-day trial, in October and November 2019, Harrison was part of a drug conspiracy that distributed fentanyl, heroin, cocaine, and crack cocaine in Baltimore and Baltimore County. Law enforcement officers investigating the conspiracy surveilled Harrison, who is believed to be the leader of the group “Young Go Getters,” and observed him traveling from Baltimore to locations in Rosedale and Golden Ring Park in Baltimore County, where he made short stops to conduct narcotics transactions. Afterward, Harrison traveled to a casino in Delaware with the drug proceeds.
According to testimony and court documents, on November 25, 2019, FBI investigators executed search warrants at locations associated with the conspiracy, including a search of Harrison. From Harrison, investigators recovered $9,277 in cash and a .40 caliber handgun loaded with an extended magazine containing 17 rounds, including one in the chamber. The $9,277 were proceeds of Harrison’s drug trafficking activity. At a stash location associated with the conspiracy, law enforcement recovered a 9mm pistol, loaded with 16 rounds, including one in the chamber; a .25 caliber pistol loaded with five rounds; a container with 386 grams of a mixture of fentanyl and heroin; several clear plastic bags containing a total of 40 grams of cocaine; a clear plastic bag containing 50 grams of a mixture of heroin and fentanyl; a clear plastic bag containing 27 grams of crack cocaine; a plastic bag containing 71 grams of a fentanyl mixture; and drug paraphernalia.
Harrison knew that he was prohibited from possessing firearms or ammunition as a result of a previous felony conviction.
Co-defendant Christopher Jerry, age 30, of Baltimore, previously pleaded guilty to his role in the conspiracy and is scheduled to be sentenced on December 2, 2021.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney Erek L. Barron commended the FBI, the Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Christine Goo and Charles Austin, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Dade City Man Sentenced in Bank Fraud and Aggravated Identity Theft CaseRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Daniel Santos (26, Dade City) to seven years and three months in federal prison for bank fraud and aggravated identity theft. As part of his sentence, the court also ordered restitution in the amount of $263,066.15, the proceeds of the bank fraud.
Santos had pleaded guilty on August 24, 2021.
According to court documents, from May 2016 through June 2018, Santos was involved in a bank fraud scheme that victimized at least 55 individuals and 21 financial institutions. Bank video surveillance captured Santos depositing fraudulent or altered checks into bank accounts and then withdrawing cash from the accounts before the banks discovered the checks were fraudulent. Through the scheme, Santos deposited $570,977.38 in fraudulent checks and received $263,066.15 in fraud proceeds. Santos had an extensive criminal history.
This case was investigated by the Tampa Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys John Cannizzaro and Mandy Riedel.
Cypress medical sales representative agrees to settle allegations regarding neurostimulator devicesRead the Press Release
HOUSTON - A 47-year-old medical sales representative has agreed to pay $100,000 to settle allegations that he assisted in causing the submission of false claims, announced Acting U.S. Attorney Jennifer B. Lowery.
Matthew Thibaut is a sales representative from Cypress. He sold products through his business, Flex Surgical Management LLC.
From Jan. 1, 2017, to Dec. 31, 2019, Thibaut sold ANSiStim and Primary Relief devices to various medical providers. DyAnsys Inc. manufactures the devices which are used for electro-acupuncture. This only involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
However, Thibaut’s customers falsely billed Medicare for the surgical implantation of neurostimulator electrodes. These are invasive procedures usually requiring use of an operating room for which Medicare pays thousands of dollars. Thibaut allegedly knew his customers would bill Medicare in this fashion and, therefore, assisted in causing the submission of false claims, according to the allegations.
To date, the Southern District of Texas has resolved six other similar cases which included settlements from a Katy anesthesiologist, a Houston pain doctor, a Rockport chiropractor, a Houston chiropractor, a Laredo pain doctor and a Woodlands pain doctor. This is the first settlement in the Southern District of Texas involving a device marketer.
The U.S. Attorney’s Office jointly conducted the investigation with the Department of Health and Human Services – Office of Inspector General. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Crossroads Hospice Agrees to Pay $5.5 Million to Settle False Claims Act LiabilityRead the Press Release
Memphis, TN – Carrefour Associates LLC; Crossroads Hospice of Cincinnati LLC; Crossroads Hospice of Cleveland LLC; Crossroads Hospice of Dayton LLC; Crossroads Hospice of Northeast Ohio LLC; and Crossroads Hospice of Tennessee LLC ("Crossroads Hospice"), operating in Ohio and Tennessee, have agreed to pay $5.5 million to resolve allegations that they violated the False Claims Act by submitting claims to Medicare for non-covered hospice services.
Hospice care is special end-of-life care intended to comfort terminally ill patients. Patients admitted to hospice care generally stop receiving coverage for traditional medical care designed to cure their terminal condition and instead receive medical care focused on providing them with relief from the symptoms, pain and stress of a terminal illness. Medicare patients are terminally ill and hospice eligible when they have a life expectancy of six months or less if their illness runs its normal course.
This settlement resolves allegations that Crossroads Hospice knowingly submitted false claims to Medicare for hospice services for patients who were not terminally ill. According to the settlement agreement, the United States alleged that from Jan. 1, 2012 to Dec. 31, 2014, Crossroads Hospice billed Medicare for hospice care for certain patients with a diagnosis of dementia or Alzheimer’s disease at its Ohio and Tennessee locations who were not terminally ill for at least a portion of the more than three years that the patients received care at these locations.
"Medicare’s hospice benefit provides critical end of life services that focus on palliative rather than curative care," said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. "Today’s settlement demonstrates our continuing commitment to ensure that hospice services are provided to patients who truly need this care and that patients who are not terminally ill receive appropriate curative care."
"This Office is committed to pursuing providers who put profits ahead of patients," said Acting U.S. Attorney Vipal J. Patel for the Southern District of Ohio. "We will continue to hold accountable those who abuse federal healthcare programs at the expense of the taxpayers."
"The Medicare program provides older Americans with access to health," said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. "When frauds like this are committed by serviced providers, it effectively deprives older Americans of health care resources. Our office will continue to take steps to prevent frauds like this from taking place in order to ensure that the Medicare program’s resources are used effectively."
"The decision to provide hospice services should be prompted by a patient’s terminally ill medical diagnosis and desire for palliative care, not a hospice provider’s desire to boost its profits," said Special Agent in Charge Lamont Pugh III, U.S. Department of Health and Human Services Office of Inspector General. "Our agency is dedicated to safeguarding both the Medicare program and Medicare patients. This settlement reaffirms HHS-OIG’s commitment to holding accountable providers who knowingly submit false claims to Medicare."
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Leanne Malone, Jackie Burns and Angela Heck, former employees of Crossroads Hospice, as well as Dr. David Weber, a home health physician in Tennessee. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are United States ex rel. Leanne Malone et al. v. Carrefour Associates LLC et al., No. 1:15-cv-460 (S.D. Ohio) and United States ex rel. David Weber v. Crossroads Hospice of Tennessee, LLC, No. 2:16-cv-02684 (W.D. Tenn.). Under today’s settlement, the whistleblowers in the Malone action will receive approximately $1,045,000.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Ohio; and the U.S. Attorney’s Office for the Western District of Tennessee. The Department of Health and Human Services, Office of Inspector General, assisted in the investigation.
The investigation and resolution of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Fraud Section Trial Attorney Jonathan Hoerner, Assistant U.S. Attorney Andrew Malek of the Southern District of Ohio and Assistant U.S. Attorney Eileen Kuo of the Western District of Tennessee.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Corpus Christi Man Sentenced for Assault at JBSA-LacklandRead the Press Release
SAN ANTONIO – A Corpus Christi man was sentenced today to 33 months in federal prison for assaulting a female on Joint Base San Antonio - Lackland.
According to court records, on November 28, 2020, Robert Allen Cavazos, 51, and a woman were arguing in an RV located in the housing area of Lackland. When the woman tried to leave, Cavazos grabbed her arm and pulled her into the RV and blocked the door. The woman continued to try and leave but Cavazos kept pushing her and throwing her to the floor. At one point Cavazos put her in a choke hold. He also put his hands around her neck in order to strangle her. The woman was eventually able to get away and contacted Security Forces about the assault.
On August 17, 2021, Cavazos was found guilty by U.S. District Judge Jason K. Pulliam of assault.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Christopher Combs made the announcement.
The FBI investigated the case.
Special Assistant U.S. Attorney Tiffany Miller prosecuted the case.
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