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Wednesday 13 October 2021
Man Charged with Selling Multiple Forged Paintings by Contemporary Artist Raymond PettibonRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the indictment of CHRISTIAN ROSA WEINBERGER, a/k/a “Christian Rosa,” for his role in a scheme to defraud art buyers through the sale of forged paintings by the artist Raymond Pettibon accompanied by fake certificates of authenticity. WEINBERGER fled the United States in early 2021 shortly after news about his involvement in selling a fake Pettibon painting was reported in the press, and he remains at large. This case is assigned to U.S. District Judge Andrew Carter.
U.S. Attorney Damian Williams said: “As alleged, Christian Rosa Weinberger cheated contemporary art buyers by selling them forged paintings purportedly from the hand of Raymond Pettibon. Weinberger swindled buyers out of hundreds of thousands of dollars, and risked a New York artist’s legacy, through his forgery scheme. Thanks to the partnership of this Office and the FBI’s Art Theft Crime Team, Weinberger’s forgery scheme is at an end.”
FBI Assistant Director Michael J. Driscoll said: "The beauty of art may be in the eye of the beholder, but the behavior we allege today is objectively ugly. Quite simply, it's a federal crime to defraud investors and fake documentation of artwork provenance. Mr. Weinberger may believe he escaped justice when he fled the country earlier this year, but the FBI and our partners have international reach and steadfast determination. We encourage him to turn himself in, because we will eventually find him with that persistent long arm of the law."
According to the allegations in the Indictment[1] filed today in Manhattan federal court:
From approximately 2017 through 2020, WEINBERGER, together with others known and unknown, engaged in a scheme to defraud potential art buyers by selling forged Pettibon paintings. Pettibon is a prominent contemporary artist based primarily in New York, New York, who has produced a series of paintings depicting ocean waves with surfers accompanied by handwritten text (the “Wave Series”). WEINBERGER is a contemporary visual artist based primarily in Los Angeles, California and Vienna, Austria. As part of the scheme to defraud, in or about 2018 and 2020, WEINBERGER sold the following artworks, which WEINBERGER falsely represented to be authentic Pettibon “Wave Series” paintings, to two buyers (“Buyer-1” and “Buyer-2”):
- Untitled (“It was the Moment . . . ”), 2013, 100 cm by 155 cm:
- Untitled (“Drop in . . .”), 2011, 80 cm by 60 cm:
- Untitled (“Bail, or bail out . . .”), 2012, 115 cm by 163 cm:
- Untitled (“If there is a line . . .”), 2016, 118.1 by 208.3 cm:
WEINBERGER used the proceeds from the sale to Buyer-1 of Untitled (“Bail, or bail out . . .”), and Untitled (“If there is a line . . .”) to make the down payment and subsequent mortgage payments on a residence in California. WEINBERGER also gifted the following “Wave Series” painting to Buyer-1 in exchange for Buyer-1’s help in selling paintings attributed to Pettibon to Buyer-2: Untitled (“I Keep Pouring . . .”), 1997, 110 cm by 90 cm.
In connection with the sale or transfer of the above paintings to Buyer-1 and Buyer-2, WEINBERGER provided purported certificates of authenticity for each painting. The purported certificates of authenticity contained an image of the particular painting, and were purportedly signed by Pettibon. In fact, these purported certificates of authenticity were fake, and Pettibon’s signatures were forged.
In or about December 2019, around the same time that WEINBERGER was discussing the sale of certain Pettibon paintings with Buyer-1, WEINBERGER exchanged emails with a friend of WEINBERGER’s (“Co-conspirator-1”) about trying to find a buyer for certain unnamed paintings. In one of the emails, WEINBERGER told Co-conspirator-1 that “they’re asking about the certificates, how we’re getting them.” Co-conspirator-1 asked WEINBERGER, in substance and in part, why the sales were taking so long. WEINBERGER responded explaining that he wanted to find a buyer who would agree not to resell the works at auction, and wrote in English that “I am not trying to get busted so that’s why it’s takeing[sic] longer.”
On or about January 29, 2021, an online news source published an article reporting accusations that WEINBERGER had forged Untitled (“If there is a line . . .”), one of the “Wave Series” paintings originally purchased by Buyer-1, which was later placed for sale by a subsequent purchaser at a New York auction house. On or about January 30, 2021, the day after the article was published, WEINBERGER emailed Co-conspirator-1 that “[t]he secret is out.” On or about January 31, 2021, WEINBERGER drafted an email to Pettibon, in which he stated that the painting featured in the article “is a overpainted print made from [Co-Conspirator-1] a friend from Austria[.]” Less than a month later, WEINBERGER left the United States. A few months later, WEINBERGER sold the California residence and attempted to transfer the funds abroad.
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WEINBERGER, 43, a Brazilian and Austrian citizen previously residing in Los Angeles, California, before fleeing the United States in February 2021, was charged in the Indictment with one count of wire fraud conspiracy, one count of wire fraud, and one count of aggravated identity theft. The wire fraud charges carry a maximum prison term of 20 years. The aggravated identity theft charge carries a mandatory sentence of two years in prison.
The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Williams praised the investigative work of the FBI’s Art Crime Team.
This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Jessica K. Feinstein and Cecilia E. Vogel are in charge of the prosecution.
To report information related to this case, please contact the FBI's Art Crime Team at [email protected].
The allegations 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 descriptions of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Major Maryland-Washington, D.C. Area Narcotics Distributor Sentenced to Eight Years in Federal Prison for Drug Conspiracy and Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
Baltimore, Maryland – U.S. District Judge Theodore D. Chuang sentenced Arsenio Cleckley, a/k/a “Bund”, age 39, of Accokeek, Maryland to eight years in federal prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute fentanyl and possession of a firearm in furtherance of drug trafficking.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Chief Malik Aziz of the Prince George’s County Police Department; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration (DEA) - Washington Division; and Charles County Sheriff Troy Berry.
According to Cleckley’s guilty plea, from at least in or about January 2017 through June 2018, Cleckley and his co-conspirators—James Belt, Alphonso Black, Terri Bordeaux, Diamante Hailey, Christina Marshall, Thomas Parker III, Devin Simmons, Williams Stuart, and others—conspired to distribute and possess with the intent to distribute, heroin, fentanyl, cocaine, and crack to drug users and other narcotics distributers in Maryland and Washington D.C.
Cleckley also admitted that he acted as a distributor of heroin, fentanyl, cocaine and crack in the Maryland-Washington D.C. area. For example, on or about May 28, 2018, Cleckley and a co-conspirator purchased more than 200 grams of heroin and fentanyl from a supplier. After the purchase, members of law enforcement intercepted telephone calls revealing that Cleckley and the co-conspirator intended to distribute the heroin and fentanyl.
Cleckley and his co-conspirators also possessed firearms in furtherance of their drug trafficking. Specifically, on or about March 14, 2018, after Cleckley crashed his vehicle and fled the scene, officers located a loaded .45 caliber handgun and more than 40 grams of fentanyl in the vehicle. As part of his guilty plea, Cleckley admitted that he possessed the .45 caliber handgun to protect his drug supply and drug proceeds and increase his reputation as a drug trafficker.
Additionally, in or about June 2018, after one of his associates was murdered in the Barry Farms area of Southeast, Washington, D.C., Cleckley planned a retaliatory shooting and purchased a AK-47 assault rifle and .40 caliber handgun. Cleckley also recruited accomplices for the retaliatory shooting. During a subsequent phone call, Cleckley made clear to a co-conspirator that the AK-47 assault rifle was not purchased “for show” and that the firearm needed to “put in work.” In another conversation about his intended targets, Cleckley stated, “I’m going to walk, I’m a stop in the middle of his street, and chase my victims down.”
As stated in his plea agreement, law enforcement arrested Cleckley in a Waldorf, Maryland hotel room where Cleckley had been selling fentanyl. From Cleckley’s hotel room, law enforcement recovered a stolen 9mm handgun with a 32-round extended magazine.
Co-defendants Diamante Lacelle Hailey, a/k/a Tay, age 27 of Clinton, Maryland; James Belt, a/k/a JB, age 32, of Lanham, Maryland; Alphonso Leroy Anthony Black, a/k/a Kobe, age 25 of Temple Hills, Maryland; Terri Bordeaux, a/k/a CeCe and Auntie, age 50, of Washington, D.C.; Christina Marshall, a/k/a Chrissy, age 32, of Accokeek, Maryland; Devin Simmons, age 42, of Marbury, Maryland; and William Stewart, a/k/a Lil’ Will, age 24, also of Marbury, all previously pleaded guilty. Simmons, Belt, Hailey, Stewart, and Black were previously sentenced to periods ranging from time-served to five years in federal prison, each followed by three years of supervised release. On July 15, 2021, U.S. District Judge Theodore D. Chuang sentenced co-defendant Thomas Parker III to 90 months in federal prison followed by three years of supervised release. Bordeaux and Marshall are currently scheduled to be sentenced on October 20, 2021 and October 29, 2021, respectively.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
United States Attorney Erek L. Barron praised HSI, the Prince George’s County Police Department, the DEA, and the Charles County Sheriff’s Office for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Erin B. Pulice and Jennifer L. Wine, who prosecuted the case.
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Local Arabic Tutor Convicted of Child Pornography ChargesRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Woodbridge man, who worked as a children’s tutor, yesterday on charges of transporting and receiving child pornography.
According to court records and evidence presented at trial, from around May 2019 to January 2020, Majed Talat Hajbeh, 58, used a messaging application to forward himself over 800 videos and images of child pornography in order to access them across multiple devices. Along with the videos, Hajbeh forwarded himself links to online groups where child pornography was openly traded, some of which had names such as “Send Child Porn,” “Only Children Sex,” “kids only cp,” and “12 years kids XXX child.” Prior to his arrest in this case, Hajbeh operated a small business providing Arabic language and religious tutoring to school-aged children. GPS data from Hajbeh’s phone showed that some of the child pornography was forwarded from the homes of his tutoring students.
Hajbeh faces a mandatory minimum penalty of five years in prison when sentenced on February 11, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia, and Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the verdict.
Assistant U.S. Attorneys Danya E. Atiyeh and Seth M. Schlessinger are prosecuting 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 U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-83.
Lawrence Man Sentenced for Defense Contracting FraudRead the Press Release
BOSTON – A Lawrence man was sentenced yesterday in connection with a scheme to defraud the U.S. Navy relating to glove liners purchased for use on nuclear submarines.
Adrian Urena, 40, was sentenced by U.S. District Court Judge Richard G. Stearns to one year of probation. On March 24, 2021, Urena pleaded guilty to one count of possessing false papers to defraud the United States and one count of making false statements.
Urena was an employee of a Lawrence company that contracts with the U.S. Navy through the Defense Contract Management Agency. The contractor entered into a contract to provide the Navy with white glove liners for use on nuclear submarines meeting certain specifications, including that the contractor would test the glove liners for heat sensitivity and obtain an associated certificate of testing. To avoid the testing requirement, Urena manufactured counterfeit certificates of testing and compliance, and presented these counterfeit certificates to a Department of Defense contracting officer. When investigators questioned Urena about the counterfeit certificates, Urena falsely claimed that the certificates were not intended to be genuine.
Acting United States Attorney Nathaniel R. Mendell; Michael T. Wiest, Special Agent in Charge of the Naval Criminal Investigative Service, Northeast Field Office; and Patrick Hegarty, Special Agent in Charge of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office made the announcement. Assistant U.S. Attorney Evan Panich of Mendell’s office prosecuted the case.
Lake County Convicted Felon Indicted for Illegal Firearm Possession and Destruction of AircraftRead the Press Release
Ocala, Florida – A federal grand jury has returned an indictment charging Wendell Doyle Goney (51, Mount Dora) with possessing a firearm as a convicted felon and destruction of aircraft. If convicted of both counts, Goney faces a maximum penalty of 30 years in federal prison. The indictment also notifies Goney that the United States intends to forfeit a rifle and ammunition allegedly used in the commission of the offenses.
According to court documents, on July 11, 2021, deputies from the Lake County Sheriff’s Office responded to a burglary at a 10-acre business property in Mount Dora. Deputies deployed a law enforcement drone to assist with the outdoor search, only to have the drone destroyed by gunfire from a neighboring property. When deputies responded to that location, they confronted Goney, who acknowledged that he had just shot down the drone with a .22 caliber rifle. He claimed that drones had been “harassing” him. Goney also admitted to the deputies that he could not lawfully possess a firearm—he has 29 prior felony convictions in Florida. As a convicted felon, Goney is prohibited from possessing firearms and ammunition under federal law.
An indictment is merely an allegation and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Department of Transportation-Office of Inspector General, and the Lake County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Robert E. Bodnar, Jr.
Kalispell man admits sexually exploiting childRead the Press Release
MISSOULA – A Kalispell man accused of taking sexually explicit photographs of a child while boating on Ashley Lake in Flathead County admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Edward Timothy Cockerham, 43, pleaded guilty to sexual exploitation of a child. Cockerham faces a mandatory minimum 15 years to 30 years in prison, a $250,000 fine and at least five years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Jan. 27, 2022 before U.S. District Judge Dana L. Christensen. Cockerham was detained pending further proceedings.
In court documents filed in the case, the government alleged that on June 24, Cockerham went to Ashley Lake and was accompanied by two children. Cockerham took the victim, who was under the age of 18 and was identified as Jane Doe 1, boating. While out on the water, Cockerham touched and took sexually explicit pictures of Jane Doe 1. Jane Doe 1 reported Cockerham’s actions. The Flathead County Sheriff’s Office seized Cockerham’s cell phone and searched it pursuant to a warrant. An initial review determined Cockerham had deleted all of the images from his cell phone. The sheriff’s office obtained a second search warrant and sent the cell phone to the Montana Department of Justice’s Division of Criminal Investigation computer lab. A forensic examiner located sexually explicit images of Jane Doe 1.
Assistant U.S. Attorney Cyndee L. Peterson is prosecuting the case, which was investigated by the Flathead County Sheriff’s Office, Homeland Security Investigations, Montana Division of Criminal Investigation, and the Montana Internet Crimes Against Children Task Force.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Justice, Education Departments Issue Fact Sheet on Supporting Students at Risk of Self Harm during COVID-19 EraRead the Press Release
In recognition of World Mental Health Day, today the U.S. Department of Justice and the U.S. Department of Education’s Office for Civil Rights (OCR) jointly issued a fact sheet to support students with mental health disabilities, their families, and their schools in the era of COVID-19. Along with the fact sheet, OCR released a letter to educators highlighting the civil rights obligations of schools and postsecondary institutions to students with mental health disabilities.
“The Department of Justice is committed to safeguarding the rights of students with mental health disabilities through vigorous enforcement of the civil rights laws, particularly given the continuing effects of the pandemic,” said Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division. “Students should be supported and not excluded from educational opportunities on the basis of disability.”
“The COVID-19 pandemic’s effects on student mental health are widespread and deeply concerning,” said Acting Assistant Secretary for Civil Rights Suzanne B. Goldberg of the Department of Education. “OCR is committed to providing resources to support students with mental health disabilities, including those who may be at risk for self-harm.”
OCR’s June 2021 report, Education in a Pandemic: The Disparate Impacts of COVID-19 on America’s Students, showed that COVID-19 has had disproportionately harsh effects on many students with disabilities. Today’s action responds to pandemic’s effects on students’ mental health and provides information about the federal civil rights laws that protect students with mental health disabilities.
The fact sheet entitled Supporting Students at Risk of Self-Harm in the Era of COVID-19, provides information about federal civil rights laws that protect students with mental health disabilities. The fact sheet includes scenarios that illustrate when the department might investigate a potential violation; gives schools and postsecondary institutions a list of action steps to create an environment that is responsive to students with mental health disabilities; and provides educational and crisis resources for students, families, and educators.
World Mental Health Day is an international day to raise awareness of mental health issues around the world and to mobilize efforts in support of mental health. More than 18 months into the COVID-19 pandemic, it is particularly important to acknowledge the pandemic’s impact on mental health at home and around the world, to present an opportunity for meaningful conversations about mental health, and to celebrate schools and other institutions that have found new and promising ways to provide mental health services to their populations.
The Biden-Harris Administration has taken significant action to address the mental health needs of Americans, and the President's Build Back Better agenda includes funding and support for a wide range of programs aimed at improving access to mental health services.
If you believe that you or another person has been discriminated against at school based on a mental health disability, you may file a complaint with the Justice Department’s Civil Rights Division at https://civilrights.justice.gov/ or https://www.ada.gov/fact_on_complaint.htm, or with the Education Department’s Office for Civil Rights at https://www2.ed.gov/ocr/complaintintro.html to file a complaint in English or www.ed.gov/ocr/docs/howto.html to file a complaint in other languages.
The guidance is on the Justice Department’s website here and on OCR’s website here.
Justice Department Announces Investigation into Conditions at Five Juvenile Facilities in TexasRead the Press Release
The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department.
The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.
“Too often children held in juvenile detention facilities are subject to abuse and mistreatment, and deprived of their constitutional rights,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions. The Department of Justice stands ready to protect the rights of children who end up in juvenile facilities and our investigation will ensure that the treatment of these children comports with constitutional standards.”
“The U.S. Attorney’s Office of the Western District of Texas is committed to protecting the constitutional rights of all persons, including vulnerable young persons incarcerated in Texas Juvenile Justice Department secure facilities,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “We look forward to partnering with the Civil Rights Division and other U.S. Attorney’s Offices in our state to conduct a fair and thorough investigation of these allegations.”
“Young people, even though they are confined in a juvenile facility, should not be abused, mistreated or deprived of essential services,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “We have a duty to ensure young people incarcerated in our state are held under safe and constitutional conditions.”
“No matter who they are – or what they’ve done – our state’s kids deserve safe environments,” said Acting U.S. Attorney Chad Meacham of the Northern District of Texas. “We cannot expect juvenile offenders to thrive later in life if they emerge from confinement traumatized by sexual abuse, excessive force, or incessant isolation.”
“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei of the Eastern District of Texas. “We are proud to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The department’s work has led to important reforms to protect the rights of young people housed in those facilities.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorneys’ offices in the Western, Eastern, Southern and Northern Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.
Justice Department Announces Investigation into Conditions at Five Juvenile Facilities in TexasRead the Press Release
WASHINGTON – The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department.
The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints, and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.
“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei. “We are pleased to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”
“Too often children in juvenile facilities like those at issue here are abused, mistreated, and deprived of essential services,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions, and the Department of Justice is committed to protecting the rights of children who end up in such facilities. We look forward to working with our colleagues in the United States Attorney’s Offices throughout Texas to ensure that the State’s treatment of these children comports with constitutional standards.”
The Department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the Department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The Department’s work has led to important reforms to protect the rights of young people housed in those facilities.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the United States Attorney’s offices in the Eastern, Southern, Northern and Western Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.
Justice Department Announces Investigation into Conditions at Five Juvenile Facilities in TexasRead the Press Release
The Justice Department announced today that it has opened a statewide investigation into the conditions in the five secure juvenile correctional facilities run by the Texas Juvenile Justice Department.
The investigation will examine whether Texas provides children confined in the facilities reasonable protection from physical and sexual abuse by staff and other residents, excessive use of chemical restraints and excessive use of isolation. The investigation will also examine whether Texas provides adequate mental health care.
“Too often children held in juvenile detention facilities are subject to abuse and mistreatment, and deprived of their constitutional rights,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “State officials have a constitutional obligation to ensure reasonable safety for children in these institutions. The Department of Justice stands ready to protect the rights of children who end up in juvenile facilities and our investigation will ensure that the treatment of these children comports with constitutional standards.”
“The U.S. Attorney’s Office of the Western District of Texas is committed to protecting the constitutional rights of all persons, including vulnerable young persons incarcerated in Texas Juvenile Justice Department secure facilities,” said U.S. Attorney Ashley C. Hoff for the Western District of Texas. “We look forward to partnering with the Civil Rights Division and other U.S. Attorney’s Offices in our state to conduct a fair and thorough investigation of these allegations.”
“Young people, even though they are confined in a juvenile facility, should not be abused, mistreated or deprived of essential services,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “We have a duty to ensure young people incarcerated in our state are held under safe and constitutional conditions.”
“No matter who they are – or what they’ve done – our state’s kids deserve safe environments,” said Acting U.S. Attorney Chad Meacham of the Northern District of Texas. “We cannot expect juvenile offenders to thrive later in life if they emerge from confinement traumatized by sexual abuse, excessive force, or incessant isolation.”
“The U.S. Attorney’s Office for the Eastern District of Texas is committed to protecting the constitutional rights of all Texas children, including those incarcerated in Texas Juvenile Correctional Facilities,” said Acting U.S. Attorney Nicholas J. Ganjei of the Eastern District of Texas. “We are proud to partner with the Civil Rights Division and the other U.S. Attorney’s Offices of Texas to conduct a fair and thorough investigation of these allegations.”
The department has not reached any conclusions regarding the allegations in this matter. The investigation will be conducted under the Civil Rights of Institutionalized Persons Act (CRIPA) and the Violent Crime Control and Law Enforcement Act. Both statutes give the department the authority to investigate systemic violations of the rights of young people in juvenile correctional facilities. The department’s work has led to important reforms to protect the rights of young people housed in those facilities.
The Civil Rights Division’s Special Litigation Section is conducting this investigation jointly with the U.S. Attorneys’ offices in the Western, Eastern, Southern and Northern Districts of Texas. Individuals with relevant information are encouraged to contact the department via phone at 1-866-432-0438 or by email at [email protected].
Additional information about the Civil Rights Division’s work regarding juvenile correctional facilities and the administration of juvenile justice is available on its website at https://www.justice.gov/crt/rights-juveniles.
Jury Convicts Raleigh Man of Firearms and Narcotics OffensesRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Raleigh man today on charges of possession with intent to distribute a quantity of cocaine, possession of firearms by a convicted felon, and possession of firearms in furtherance of a drug trafficking crime.
According to court records and evidence presented at trial, Keith Lamont Thompson, Jr., 27, possessed two firearms and over two ounces of powder cocaine. On July 6, 2019, officers with the Raleigh Police Department received information that Thompson was in possession of cocaine and multiple firearms at his apartment in Raleigh, North Carolina. When Raleigh Police executed the search warrant, they learned that Thompson had ordered a female subject to hide his guns and drugs in her car. Officers searched the car and recovered 90 grams of cocaine and two firearms, including one that had been reported stolen. Further investigation revealed that Thompson was a convicted felon on active state probation for selling cocaine at the time of the July 6 search.
Thompson faces a mandatory minimum of 5 years and a maximum of life in prison when sentenced in January 2022. Thompson also faces enhanced sentencing penalties as a career offender due to a conviction in 2014 for Robbery with a Dangerous Weapon and Second-Degree Kidnapping, and a conviction in 2018 for Possession with Intent to Sell or Deliver Cocaine. He faces a guideline range of 360 months to life imprisonment.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Raleigh Police Department investigated the case and Assistant U.S. Attorney Aakash Singh prosecuted the case.
A copy of this press release is located on our website. Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00223-D-1.
Jefferson County man sentenced for unlawful possession of a firearm silencerRead the Press Release
MARTINSBURG, WEST VIRGINIA – Timothy John Watson, of Ranson, West Virginia, was sentenced today to 60 months of incarceration for unlawfully possessing a firearm silencer, United States Attorney William J. Ihlenfeld, II announced.
Watson, 31, pleaded guilty in March 2021 to one count of “Possession of Unregistered Firearm Silencer.” Watson admitted to having an unregistered silencer in November 2020 in Jefferson County.
The government presented evidence today that Watson’s conduct also involved his manufacture and transfer of hundreds of machinegun conversion devices for AR-15 style rifles, also known as “drop in auto sears,” to nearly 800 individuals including individuals whom he had reason to believe were adherents to an extremist political movement referred to as “Boogaloo,” a term referencing an impending civil war or violent uprising against the government for perceived incursions on U.S. Constitutional rights, including the Second Amendment. From those sales, the FBI opened matters involving 58 individuals, resulting to date in three firearms-related arrests and one conviction. Many of the investigations remain ongoing.
Watson was ordered to forfeit the silencer, all 3D-printed items that the government will argue are machinegun conversion devices, the 3D printers, 3D printer parts, and 3D printer supplies, as well as a U.S. Postal Service package containing the same conversion devices. All items were seized during a search in November 2020.
Assistant U.S. Attorneys Jarod J. Douglas and Lara Omps-Botteicher prosecuted the case on behalf of the government. The FBI, the Bureau of Alcohol, Tobacco, and Firearms, and the U.S. Postal Inspection Service continues its investigation.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man pleads guilty to his role in a multi-state methamphetamine distribution conspiracyRead the Press Release
ST. LOUIS – United States District Court Judge Ronnie L. White accepted a plea of guilty from Kevin Karll on today’s date for the crimes of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Judge White set sentencing for January 11, 2022.
Kevin Karll is the first defendant to plead guilty in a multi-defendant conspiracy to distribute methamphetamine. According to the plea agreement, for more than a year, the Drug Enforcement Administration, Homeland Security Investigations, U.S. Postal Inspection Service and Jefferson County Municipal Enforcement Group, investigated a drug trafficking organization responsible for the distribution of crystal methamphetamine in the St. Louis region, with a network connected to Los Angeles, California. Karll was identified as one of many street-level distributors for the illicit drug organization.
The indictment alleges that from January 2019 until the date of the indictment (January 6, 2021) Brendon Thomas, Joe Holliman, Dedrick Jordan, Terry Williams and others, both known and unknown, to include Kevin Karll conspired to distribute methamphetamine and other controlled substances in the Eastern District of Missouri and elsewhere.
On June 18, 2020, investigators joined with the St. Charles County Regional Drug Task Force and the St. Louis Metropolitan Police Department to execute search warrants at locations associated with the conspiracy. Investigators seized more than $140,000 in cash, crystal methamphetamine and high-grade marijuana, as well as two assault rifles and four handguns. Investigators stopped a vehicle on its way to St. Louis and seized 28 pounds of methamphetamine and a firearm from a hidden compartment from within the vehicle.
The investigation involved the following law enforcement agencies: DEA, HSI, U.S. Postal Inspection Service, U.S. Marshals Service, Jefferson County Sheriff’s Department, St. Charles City and County Police, Phelps County Sheriff’s Department, Arnold Police Department and the Normandy Police Department, all in Missouri.
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Helena man sentenced to 10 years in prison for meth trafficking, firearm crimesRead the Press Release
GREAT FALLS — A Helena man who admitted to trafficking methamphetamine and to possessing a stolen gun was sentenced today to 10 years in prison to be followed by four years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Robert Raymond Fasuga, 38, pleaded guilty in June to conspiracy to possess with intent to distribute meth and to possession of a stolen firearm.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the prosecution alleged that on June 14, 2020, Fasuga possessed at least one stolen firearm after he fled from law enforcement, pulled two firearms from his person and pointed them to his head. Officers talked him down, and Fasuga later told agents that he assumed the guns were stolen because he paid $50 for each one. Mountain Man Trading Post in Belgrade was the lawful owner of a .380 pistol recovered from Fasuga. The government also alleged that Fasuga was a meth dealer. During the execution of a federal search warrant on March 24, 2021, agents found about one pound of meth that Fasuga intended to sell and $6,779 in U.S. currency believed to be drug proceeds.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Lewis and Clark County Sheriff’s Office investigated the case.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Harrison County man sentenced for child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Terrell Anderson, of Bridgeport, West Virginia, was sentenced today to 60 months of incarceration for a child pornography charge, U.S. Attorney William J. Ihlenfeld, II announced.
After a two-day trial in June 2021, a federal jury found Anderson, 26, guilty of one count of “Possession of Child Pornography.” Anderson had child pornography on his phone in January 2020 in Harrison County.
Assistant U.S. Attorneys David J. Perri and Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Bridgeport Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Hamlin Man Sentenced to 10 Years for Importing MethamphetamineRead the Press Release
BANGOR, Maine—A Hamlin man was sentenced today in federal court for importing methamphetamine into the United States from Canada, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge Lance E. Walker sentenced Lance Labreck, 25, to 10 years in prison followed by five years of supervised release. Labreck pleaded guilty on January 12, 2021.
According to court records, on November 19, 2019, Labreck drove a snowmobile from the U.S. across the international border into Canada. Later that evening, he returned to the U.S. via snowmobile, carrying with him approximately 55 grams of pure methamphetamine he had obtained in Canada. When stopped by Border Patrol Agents, he admitted to possessing the methamphetamine and bringing it back over the international border into the U.S.
Homeland Security Investigations, the U.S. Border Patrol and the U.S. Drug Enforcement Administration investigated the case.
Gulfport Man Sentenced to 10 Years in Prison for Illegal Possession of FirearmsRead the Press Release
Jackson, Miss. – A Gulfport man was sentenced to 120 months in federal prison for being a convicted felon in possession of three firearms, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
Albert Proctor, 43, was arrested in Jackson on January 17, 2020, for illegally possessing three firearms. Proctor has previous felony convictions for grand larceny, drug possession and manslaughter. He pled guilty on May 6, 2021.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Lynn Murray prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Grant County man admits to firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Jeffery Allen McCurdy, of Cabins, West Virginia, has admitted to a firearms charge, United States Attorney William J. Ihlenfeld, II announced.
McCurdy, 34, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” McCurdy, a person prohibited from having firearms because of a prior conviction, admitted to having two 12-gauge shotguns and a .22 caliber long rifle in January 2021 in Grant County.
McCurdy faces up to 10 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 Stephen D. Warner is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. - A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Lafayette County Man Charged with Child Pornography Crimes
Josiah Creasey, 34, Darlington, Wisconsin, is charged with 3 counts of attempting to produce child pornography, 1 count of producing child pornography, and 1 count of possessing child pornography. The indictment alleges that Creasey attempted to use a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct on three occasions between September 2017 and December 2019, and that Creasey used a minor to produce such a visual depiction in January 2019.
The indictment also charges Creasey with possessing child pornography on March 24, 2021, and that at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Creasey faces a mandatory minimum penalty of 15 years and a maximum of 30 years in federal prison on each of the attempted production charges and on the production charge, and a maximum of 20 years on the possession charge. The charges against him are the result of an investigation by the Lafayette and Grant County Sheriffs’ Offices, Wisconsin Department of Justice Division of Criminal Investigation, Platteville Police Department, and National Center for Missing and Exploited Children. Assistant U.S. Attorney Julie Pfluger is handling the prosecution.
La Crosse Man Charged with Possessing Child Pornography
Jeremy Hogenkamp, 45, La Crosse, Wisconsin, is charged with possessing child pornography. The indictment alleges that on October 6, 2021, he possessed a laptop computer that contained visual depictions of minors engaging in sexually explicit conduct, and that at least one of the depictions involved a minor who had not attained 12 years of age.
If convicted, Hogenkamp faces a maximum penalty of 20 years in federal prison. The charge against him is the result of an investigation by the La Crosse, Onalaska, Holmen, and Town of Campbell Police Departments and the Federal Bureau of Investigation. Assistant U.S. Attorney Elizabeth Altman is handling the prosecution.
Madison Man Charged with Gun Crime
James McGowan, Jr., is charged with being a felon in possession of a firearm. The indictment alleges that he possessed a loaded 9mm handgun on September 20, 2021.
If convicted, McGowan faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Madison Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Milwaukee Man Charged with Gun Crime
Montanez Miller, 25, Milwaukee, Wisconsin, is charged with being a felon in possession of firearms. The indictment alleges that he possessed a loaded 9mm handgun and a loaded .40 caliber handgun on May 16, 2021.
If convicted, Miller faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Fort Worth Woman Sentenced to over 21 Years for Importing MethRead the Press Release
DEL RIO – A Fort Worth woman was sentenced today to 262 months in prison for her part in a conspiracy to import methamphetamine.
According to court documents, Maria Tello, 39, and Juan Tello, 39, both from Fort Worth, conspired together to import over 34 kilograms of methamphetamine from Mexico. On December 2, 2017, a vehicle stopped at the Del Rio Port of Entry had two compartments loaded with 34.32 kilograms of methamphetamine. The vehicle was driven to Dallas where it was met by Maria and Juan Tello. Maria Tello admitted she knew the vehicle was loaded with methamphetamine and that the drug was to be transported within the Dallas-Fort Worth area for further distribution.
“Methamphetamine is a highly addictive poison that destroys lives and destabilizes our communities,” said U.S. Attorney Ashley C. Hoff. “We will hold accountable those seeking to distribute it.”
“Today’s sentence sends a clear message to criminal organizations that there are serious consequences for trafficking-controlled substances,” said Special Agent in Charge Shane Folden, Homeland Security Investigations (HSI) San Antonio. “HSI will continue to pursue cross-border conspiracy investigations to target dangerous individuals who threaten the security of the United States.”
On April 26, 2018, Juan Tello pleaded guilty to one count of conspiracy to import methamphetamine. He was sentenced to 210 months in prison on September 18, 2019.
The HSI investigated the case.
Assistant U.S. Attorneys Sydni Connell and Amy Hail prosecuted the case.
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Former Northeast Missouri City Clerk Sentenced to PrisonRead the Press Release
ST. LOUIS – Tracey Ray, 48, of Center, Missouri, was sentenced today to eighteen months in federal prison and ordered to make restitution to the City of Center, Missouri in the amount of $314,889.59. Ray appeared before United States District Court Judge Rodney W. Sippel.
Ray was the City Clerk of Center, Missouri for many years, since 2004. Beginning in January 2015 and continuing through July 2019, Ray engaged in a scheme to defraud and obtain money from Center, Missouri and its residents in an approximate amount of $315,000, by means of materially false and fraudulent pretenses, representations and promises.
As part of her fraudulent scheme, on approximately 30 occasions, Ray used Center bank funds to pay for charges on her personal credit card. Center funds used to pay for personal charges on Ray’s GM credit card totaled approximately $206,342.53 and were for such personal expenses as retail vendor charges, entertainment, lodging and travel, hair salons, restaurants and grocery store charges. These personal credit card payments were made either by Ray’s issuance of Center bank checks, or by Ray’s wire transfer of Center bank funds. Further, through these unauthorized credit card charges and payments, Ray earned and spent an additional approximately $1,911.00 in reward funds. Further, on approximately 39 occasions, Ray issued Center bank account checks in the approximate total amount of $62,537.76 to Anthem Blue Cross and Blue Shield to pay for the premiums on a family health insurance policy, as well as on life and disability policies for her and her family members.
As a further part of her scheme, Ray issued five additional Center payroll checks to herself in the total amount of approximately $3,580.00, depositing each of those unauthorized checks into her own personal bank account. On 49 occasions, Ray issued checks on City bank accounts, in the total approximate amount of $35,546.85 to directly pay for the purchases of personal items and services. Ray issued these Center checks to make personal purchases at a number of retailers, such as Kohl’s, Lowe’s, Walmart, and Hobby Lobby, as well as to pay for her personal residential mortgage and personal insurance policies. She also issued one or more of these Center checks to her family members, unrelated to the legitimate business and operations of Center. Further, Ray, as Center’s City Clerk, received cash payments from Center residents for various city charges, but Ray failed to deposit those cash receipts into the appropriate Center bank account. Instead, Ray used those cash proceeds, in the total amount of approximately $7,407.45 for her own personal use, without the knowledge and authority of Center and its City Council.
In order to conceal her scheme from Center and its Mayor and City Council, Ray falsified the cash balances of one or more Center bank accounts on financial reports she prepared for monthly City Council meetings. Ray also prepared false and incomplete lists of bills to be paid which she submitted for monthly City Council meetings. Further, Ray falsified internal Center financial accounting records to make it appear that the unauthorized checks and wires she issued from Center bank accounts were made to legitimate third party vendors who had purportedly provided actual services or materials to Center.
The Federal Bureau of Investigation, Missouri State Auditor’s Office and Ralls County Sheriff’s Office investigated the case. Assistant United States Attorney Hal Goldsmith is handling the case.
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Former New Bedford Police Union Treasurer Pleads Guilty to Stealing Union FundsRead the Press Release
BOSTON – A former New Bedford Police Department (NBPD) officer and NBPD Union Treasurer pleaded guilty today to stealing nearly $50,000 in union funds.
Joshua Fernandes, 41, of New Bedford, pleaded guilty to one count of wire fraud. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Feb. 16, 2022. According to the terms of the plea agreement, the government will recommend a sentence of 12-18 months in prison, two years of supervised release, a fine, restitution of $48,630 and forfeiture. Fernandes was charged on July 19, 2021.
Fernandes admitted to abusing his position as Union Treasurer by using nearly $50,000 in union funds to pay for personal expenses including vacations, family outings, and a monthly wireless family phone plan, among other things. Fernandes carried out his scheme by reimbursing his personal credit card accounts with union funds and by using the union’s credit cards to pay directly for non-union expenses.
The charging statute provides a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Jonathan Russo, District Director of U.S. Department of Labor, Office of Labor Management Standards, made the announcement today. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
Former NYPD Officer Pleads Guilty to Trafficking Large Quantities of Methamphetamine and Liquid Date Rape DrugRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that former New York City Police Department (“NYPD”) officer JOHN CICERO pled guilty today to distributing large quantities of methamphetamine and gamma-butyrolactone (known as “GBL”) in Westchester County and New York City. CICERO pled guilty before U.S. Magistrate Judge Andrew E. Krause.
U.S. Attorney Damian Williams said: “A former NYPD police officer once sworn to protect the public, John Cicero now stands convicted of trafficking substantial quantities of methamphetamine and GBL, a liquid date-rape drug, throughout Westchester and New York City. As he admitted today, over several years, Cicero was a leader of a drug trafficking ring, and he was personally responsible for moving over three kilograms of methamphetamine and 750 liters of GBL, and importing narcotics from overseas. Thanks to the dedication of our partners at the Federal Bureau of Investigation, Cicero now awaits sentencing for his dangerous conduct.”
According to the Indictment, public court filings, and statements made in court:
Beginning in at least 2017 and lasting until his arrest in February 2020, CICERO and his co-conspirators stockpiled and sold liters of GBL and kilograms of methamphetamine in apartments, hotel rooms, and storage units in the heart of midtown Manhattan, and a residence in Bronxville, New York. CICERO repeatedly brokered large-scale narcotics transactions over recorded prison calls with an inmate then in New York State custody. U.S. Customs and Border Protection has previously seized GBL sent from China to CICERO’s address in New York. As part of his guilty plea, CICERO stipulated that he was an organizer, leader, manager, or supervisor in the criminal activity, the offense involved the importation of methamphetamine, and his offense conduct involved over three kilograms of methamphetamine and 750 liters of GBL. The charged conduct began years after CICERO left the NYPD.
On February 19, 2020, CICERO was arrested in a Wall Street hotel, in a room he had rented under a false identity. In addition to methamphetamine and GBL, law enforcement recovered from CICERO’s room a bank card and a fake ID, bearing CICERO’s photograph, all in the name of the false identity to whom the room was rented. As part of CICERO’s arrest, law enforcement also recovered detailed drug ledgers, credit card making equipment, and notebooks full of victims’ personally identifiable information.
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CICERO, 39, of Bronxville, New York, is scheduled to be sentenced by United States District Judge Kenneth M. Karas on February 10, 2022. CICERO pled guilty to one count of conspiring to distribute 50 grams of methamphetamine and GBL, which carries a statutory mandatory minimum term of five years in prison and maximum penalty of 40 years in prison. The maximum and mandatory minimum penalties 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 outstanding investigative work of the FBI Westchester County Safe Streets Task Force, which comprises agents and detectives from the FBI, Westchester County District Attorney’s Office, Westchester County Police Department, Yonkers Police Department, Peekskill Police Department, Mount Vernon Police Department, NYPD, and U.S. Probation. He also thanked the New York State Department of Corrections Office of Special Investigations, Drug Enforcement Administration, and U.S. Customs and Border Protection for their assistance.
This case is being prosecuted by the Office’s White Plains Division. Assistant U.S. Attorneys David R. Felton and Daniel G. Nessim are in charge of the prosecution.
Former Musical Director at St. Agnes Cathedral on Long Island Sentenced to 72 Months in Prison for Receiving Child PornographyRead the Press Release
Earlier today, in federal court in Central Islip, Michael Wustrow, a former musical director at St. Agnes Cathedral on Long Island, was sentenced by United States District Judge Denis R. Hurley to 72 months in prison for receiving child pornography. As part of his sentence, Wustrow will also be required to register as a sex offender upon his release from prison. The defendant pleaded guilty to the charge in June 2019.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
“Today’s sentence underscores the serious consequences Wustrow will face for years to come for his sordid role in receiving child pornography and perpetuating the sexual abuse of children,” stated Acting United States Attorney Jacquelyn M. Kasulis. “Protecting vulnerable children from predators and those who traffic in child pornography will always be a priority of this Office and the Department of Justice.” Ms. Kasulis extended her grateful appreciation to the FBI’s Long Island Child Exploitation and Human Trafficking Task Force leading the investigation.
“Mr. Wustrow actions, and the material he collected, are a shock to our collective conscience. Thankfully, he's now headed to federal prison where he will no longer be a danger to the innocent children who have no ability to protect themselves from evil,” stated FBI Assistant Director-in-Charge Driscoll.
In June 2016, law enforcement officers acting in an undercover capacity engaged in chats with Wustrow via the Kik Messenger program (hereinafter “Kik”), which is an instant messaging service, during which the defendant discussed child pornography and shared images of child pornography with the officer. Wustrow utilized the Kik username “pervdad516.” In September 2017, Wustrow was found to be in possession of multiple images on his iPhone of children engaged in sexually explicit conduct. Among these images was a picture of a toddler being abused by an adult male, which Wustrow had received from the Kik messaging app.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Oren Gleich is in charge of the prosecution.
The Defendant:
MICHAEL WUSTROW
Age: 59
Freeport, New YorkE.D.N.Y. Docket No. 19-CR-00087 (DRH)
Former Hawaii Public Official Pleads Guilty to Embezzling from AmeriCorps and Offering a Bribe in Return for CARES Act GrantsRead the Press Release
WASHINGTON – Stacy Higa, 58, a former public official from Hilo, Hawaii, pleaded guilty today to embezzling more than $38,000 from AmeriCorps and also to offering a bribe in return for grants under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
The announcement was made by Channing D. Phillips, Acting U.S. Attorney for the District of Columbia, Deborah Jeffrey, Inspector General of AmeriCorps, and Steven Merrill, Special Agent in Charge of the FBI’s Honolulu Field Office.
Higa pleaded guilty in the U.S. District Court for the District of Columbia to one count each of embezzlement and bribery. Both charges carry statutory maximums of 10 years in prison and financial penalties. Under the federal sentencing guidelines, Higa faces a likely range of between 46 and 57 months in prison and a fine of up to $200,000. The plea agreement requires him to pay $38,642 in restitution to AmeriCorps and an identical amount in a forfeiture money judgment. The Honorable Reggie B. Walton scheduled sentencing for Jan. 13, 2022.
“This defendant has admitted taking money from programs that were designed to help the most vulnerable Americans,” said Acting U.S. Attorney Phillips. “The United States Department of Justice will aggressively prosecute and seek to hold accountable those individuals who choose to abuse their positions of power to enrich themselves at the cost of the American people.”
“Again and again, Stacy Higa betrayed his neighbors, the people of Hawaii, and American taxpayers to serve his greed and vanity by embezzling funds set aside to help communities in need,” said Inspector General Jeffrey of AmeriCorps. “OIG will vigorously pursue allegations of fraud in AmeriCorps programs and will work tirelessly to see that those responsible are brought to justice. I want to thank the FBI’s Honolulu Field Office for its partnership in pursuing this investigation and the U.S. Attorney’s Office in D.C. for overseeing the prosecution.”
“Our communities place great trust and responsibility in our public figures. Stacy Higa ultimately betrayed this trust when he abused his power to embezzle federal funds and participate in bribery,” said FBI Special Agent in Charge Merrill. “The FBI will not tolerate these crimes and will hold perpetrators accountable for their actions. Today’s guilty plea is a direct result of the hard work and dedication the FBI and our law enforcement partners put towards obtaining justice.”
AmeriCorps is a federally funded network of national service programs that address critical community needs like increasing academic achievement, mentoring youth, fighting poverty, sustaining national parks, preparing for disasters, and more. AmeriCorps’ national service members commit to service for a set period, usually a year, in exchange for a living allowance, funding to be used for college tuition, and other benefits.
From June 2011 until May 2020, Higa, a former Hawaii County council member and mayoral candidate, served as the Executive Director of the Hawaii Commission for National and Community Service, the state service commission responsible for administering AmeriCorps programs in Hawaii. From February 2018 through his resignation from the Commission, Higa embezzled more than $38,000 in AmeriCorps funds by signing and authorizing contracts and purchase orders between the Hawaii Commission and two companies that he owned or controlled, without disclosing his control of the companies. Higa spent the embezzled funds on personal expenses including paying for approximately $20,000 of elective aesthetic dental care.
In his plea today, Higa also admitted to carrying out a scheme involving the CARES Act, which was signed into law in March 2020 to provide financial relief to individuals, businesses, states, and localities suffering the economic effects of the COVID-19 pandemic. Among other relief programs, the CARES Act created a $150 billion Coronavirus Relief Fund (CRF) to be distributed to states, localities, and tribal governments to support expenditures incurred due to COVID-19. Government entities that received money from the CRF could use the funds, among other things, to make grants to small businesses to reimburse the costs of business interruption caused by required closures and to provide economic relief for those suffering employment interruption.
In that scheme, Higa admitted to offering financial benefits to Hanalei Aipoalani, who was hired in August 2020 as Honolulu City and County’s Department of Community Service’s CARES Program Administrator. Aipoalani was responsible for administering CRF programs. From August 2020 through October 2020, Higa offered to provide financial benefits to Aipoalani in order to influence the approval of Higa’s applications for two grants totaling $845,000 under the CARES Act. Higa then directed an employee to draft and submit false and backdated invoices under the grants. Higa and Aipoalani discussed opening LLCs on Oahu and using their wives as principals in order to launder the money. As part of his plea agreement, Higa admitted to expecting to receive at least $250,000 in profit from the CARES Act funds.
Aipoalani, 42, of Waianae, Hawaii, separately pleaded guilty in the U.S. District Court for the District of Columbia to embezzling from AmeriCorps and agreeing to accept a bribe under the CARES Act. Aipoalani was sentenced on June 30, 2021 to 46 months in prison and ordered to pay over $532,730 in restitution to AmeriCorps.
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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Additionally, anyone who is aware of fraud, waste, or abuse affecting AmeriCorps or any of its programs, is encouraged to contact the AmeriCorps Office of Inspector General Hotline at 1-800-452-8210 or [email protected].
In announcing the plea, Acting U.S. Attorney Phillips, Inspector General Jeffrey, and Special Agent in Charge Merrill commended the work of those who investigated the case from the Inspector General for AmeriCorps and the FBI’s Honolulu Field office. They also acknowledged the efforts of those who worked on the investigation from the U.S. Attorney’s Office for the District of Columbia, including Assistant U.S. Attorneys Peter Lallas and Amanda Vaughn and Paralegal Specialist Mariela Andrade. Finally, they expressed appreciation for the work of Assistant U.S. Attorney Leslie A. Goemaat, also of the U.S. Attorney’s Office for the District of Columbia, who is prosecuting the case.
Former Georgia Insurance Commissioner sentenced to federal prisonRead the Press Release
ATLANTA – Former Georgia Insurance Commissioner Jim Beck has been sentenced to federal prison following his conviction for stealing more than $2,500,000 from the Georgia Underwriting Association (GUA).
“Former Commissioner Beck has been held accountable for taking advantage of his position of trust at the GUA, stealing millions of dollars from his employer, and then defrauding the IRS,” said Acting U.S. Attorney Kurt R. Erskine. “At the time he was charged with these offenses in 2019, he was the newly elected Georgia Insurance Commissioner. Thankfully, the FBI and IRS uncovered these crimes before Beck got the chance to do even more damage as a statewide public official.”
“Beck’s actions were full of greed and selfishness as he took complete advantage of his employer (GUA) and friends who held him in a high position of trust,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing should serve as a warning that no matter how elaborate a scheme, the FBI and our partners will use all resources necessary to hold deceitful individuals accountable for their actions and bring them to justice.”
“Beck abused his position as the General Manager of Operations for the GUA while engaging in a series of fraudulent transactions devised to siphon funds from a worthwhile organization. IRS Criminal Investigation is proud to have assisted our partners in unraveling the fraud actions undertaken by Beck for his personal benefit,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation Atlanta Field Office. “Pooling the skills of each agency makes a formidable team as we investigate allegations of wrong-doing. This sentencing demonstrates our collective efforts to enforce the law and ensure public trust.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: From January 2012 until Beck was sworn in as Insurance Commissioner on January 14, 2019, Beck worked as the General Manager of Operations for the GUA after being elected to that post by the GUA board of directors. GUA, located in Suwanee, Georgia, is an insurance association created as part of the Georgia Fair Access to Insurance Requirements (FAIR) law to provide high-risk property insurance to homeowners located throughout Georgia. In addition to premiums collected from its customers, GUA is also funded by issuing assessments to the association members, which include every insurer authorized to write any form of property insurance in Georgia.
While Beck served as General Manager of GUA, he also maintained controlling financial interests in two businesses known as Creative Consultants and the GA Christian Coalition. Beginning in 2013, Beck talked four associates—all of whom were either friends or family members--into forming four separate businesses that supposedly supplied necessary services, including residential property inspections and water damage mitigation, to GUA. Then, through an elaborate system of fraudulent invoicing which included producing false documentation and concealing the truth from his four associates, Beck regularly approved substantial GUA payments to the four companies. Beck then prepared fraudulent invoices from Creative Consultants and GA Christian Coalition for services that were never performed, and, at Beck’s direction, his four associates paid the fraudulent invoices from the money they had been paid from GUA. Between February 2013 and August 2018, Beck stole more than $2,500,000 from GUA.
Beck was also sentenced for his convictions on four counts of tax fraud for filing false federal income tax returns for the years 2014 through 2018. Beck's tax returns for those years were fraudulent because they substantially overstated business expenses and substantially understated business profits for Beck's Creative Consultants and GA Christian Coalition. The tax loss to the IRS was more than $350,000.
Jim C. Beck, 60, of Carrolton, Georgia, has been sentenced to seven years, three months in prison to be followed by three years of supervised release, ordered to pay restitution in an amount over $2,619,000 and forfeiture of over $426,000, two pieces of real property and a $2,064.781.85 personal forfeiture money judgment. Beck was found guilty by a jury on July 22, 2021.
This case was investigated by the Federal Bureau of Investigation and Internal Revenue Service Criminal Investigation.
Assistant U.S. Attorneys Brent Alan Gray and Sekret T. Sneed 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.
Florida Man Pleads Guilty to Payment Processing Fraud SchemeRead the Press Release
A Florida man pleaded guilty today in the U.S. District Court for the District of Massachusetts to conspiracy to commit wire fraud in connection with a scheme to deceive banks and credit card companies into processing credit and debit card payments on behalf of merchants involved in prohibited and high-risk businesses, including online gambling, debt collection, payday lending, and prescription drugs.
According to court documents and statements made during the plea proceeding, Thomas Wells, 74, of Martin County, fraudulently represented that his merchant clients were engaged in the sale of low-risk retail goods to obtain debit and credit card payment processing for those clients from banks and credit card companies. Wells, through his company Priority Payout, introduced merchant clients seeking payment processing to Allied Wallet Inc., a payment processing company that served as an intermediary between merchants seeking to accept debit and credit cards and financial institutions that were members of the global electronic payment networks run by credit card companies such as Visa, Mastercard, American Express, and Discover. Wells’ clients included merchants engaged in prohibited or high-risk transactions and merchants that had already been terminated from card payment processing networks such as Visa and Mastercard for fraud, chargeback, or other compliance concerns. Wells admitted that he conspired with others to defraud several financial institutions and credit card companies by fraudulently inducing them to provide payment processing services to these merchant clients. Wells accomplished this with his co-conspirators by, among other means, creating shell companies, designing fake websites that purported to sell low-risk retail goods, and using industry-standard codes that miscategorized the true nature of the transactions. Wells admitted that he earned approximately $700,000 from the scheme.
Wells faces a maximum penalty of 20 years in prison, a $250,000 fine, three years’ supervised release, restitution, and forfeiture. 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; Acting U.S. Attorney Nathaniel R. Mendell of the District of Massachusetts; Special Agent in Charge Jeffrey Ebersole of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Inspector in Charge Ketty Larco-Ward of the U.S. Postal Inspection Service; and Special Agent in Charge Matthew B. Millhollin of Homeland Security Investigations in Boston made the announcement.
The case is being prosecuted by Trial Attorney Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney and Deputy Chief Seth B. Kosto of the Securities, Financial & Cyber Fraud Unit at the U.S. Attorney’s Office for the District of Massachusetts.
MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty to Payment Processing Fraud ConspiracyRead the Press Release
BOSTON – A Florida man pleaded guilty today in federal court in Boston in connection with a scheme to deceive banks and credit card companies into processing more than $150 million in credit and debit card payments on behalf of merchants involved in prohibited and high-risk businesses, including online gaming, debt collection, payday lending and online pharmaceuticals among others.
Thomas Wells, 74, of Martin County, Fla., pleaded guilty to conspiracy to commit wire fraud. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Feb. 23, 2022. Wells was charged along with three others on Aug. 26, 2021.
Wells was the owner of Priority Payout, an independent sales organization based in Florida, whose clients included merchants engaged in prohibited or high-risk transactions and merchants that had already been terminated from card payment processing networks such as Visa and Mastercard for fraud, chargeback, or other compliance concerns. Wells referred merchant clients of Priority Payout seeking payment processing services to Allied Wallet Inc., a payment processing company that obtained for its clients access to services that enabled them to accept debit and credit card payments over global electronic payment networks run by Visa, Mastercard, American Express and Discover, among others (card brands) and served as an intermediary between its merchant clients and financial institutions that were members of the card brand networks (acquirers).
Wells engaged in a scheme to defraud several acquirers, the card brands and others of money and property by knowingly misrepresenting that his merchant clients were engaged in the sale of low-risk retail goods to obtain debit and credit card payment processing for those clients from banks and credit card companies and fraudulently inducing them to provide payment processing services to these merchant clients. According to the charging documents, Wells and his co-conspirators accomplished this by, among other means, creating shell companies, designing fake websites that purported to sell low-risk retail goods and using industry-standard codes that miscategorized the true nature of the transactions. Through the scheme, Wells admitted that he personally obtained approximately $700,000 in fraudulent payment card processing proceeds.
The charge of wire fraud conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, forfeiture and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Assistant Attorney General Kenneth A. Polite of the Justice Department’s Criminal Division; Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Ketty Larco-Ward, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Assistant U.S. Attorney Seth B. Kosto, Deputy Chief of Mendell’s Securities, Financial & Cyber Fraud Unit, and Trial Attorney Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Pleads Guilty to Federal Charges for Fraudulently Obtaining and Laundering More than $4 Million in Paycheck Protection Program LoansRead the Press Release
A Florida man pleaded guilty today in the District of New Jersey to fraudulently obtaining more than $4.6 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief and Economic Security Act, and subsequently laundering the loan proceeds through a series of illicit financial transactions.
According to court documents, Gregory J. Blotnick, 34, of West Palm Beach and formerly of New York City, submitted 21 fraudulent PPP loan applications to 13 lenders on behalf of at least nine purported businesses that Blotnick controlled, including BSC Opportunistic Equity LP and Brattle Street GP LLC. In these fraudulent applications, Blotnick falsified various information, including the number of his employees, the federal tax returns for his businesses, and payroll documentation. Blotnick sought more than $6.8 million in total PPP loans and obtained more than $4.6 million. Blotnick then laundered and misused the loan proceeds, including by transferring the funds to brokerage accounts that he controlled from which he placed more than $3 million in losing stock trades.
Blotnick pleaded guilty to one count of wire fraud and one count of money laundering. He is scheduled to be sentenced on March 1, 2022, and faces a maximum total 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; Acting U.S. Attorney Rachael A. Honig for the District of New Jersey; Special Agent in Charge Robert Manchak of the Northeast Region of the Federal Housing Finance Agency, Office of Inspector General (FHFA-OIG); Special Agent in Charge John F. Grasso of the Social Security Administration OIG (SSA-OIG) New York Field Division; Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation OIG (FDIC-OIG) New York Region; and Special Agent in Charge Michael Montanez of IRS—Criminal Investigation’s (IRS-CI) Newark office made the announcement.
The FHFA-OIG, SSA-OIG, FDIC-OIG, and IRS-CI are investigating the case.
Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office for the District of New Jersey are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. Since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
Five Alleged Street Gang Members Charged with Federal Racketeering Offenses Including Murder of Chicago RapperRead the Press Release
CHICAGO — A federal indictment unsealed today charges five alleged members of the O-Block street gang with participating in a criminal organization that murdered a Chicago rapper and violently protected the gang and its territories on the South Side of Chicago.
The indictment alleges that the O-Block gang publicly claimed responsibility for acts of violence in Chicago and used social media and music to increase their criminal enterprise. The O-Block gang allegedly engaged in numerous acts of violence, including the murder of Carlton Weekly, a Chicago rapper also known as “FBG Duck,” on Aug. 4, 2020.
Charged with committing murder in aid of racketeering are Chicago residents CHARLES LIGGINS, also known as “C Murda,” 30; KENNETH ROBERSON, also known as “Kenny” and “Kenny Mac,” 28; TACARLOS OFFERD, also known as “Los,” 30; CHRISTOPHER THOMAS, also known as “C Thang,” 22; and MARCUS SMART, also known as “Muwop,” 22. The indictment also charges the defendants with federal firearm violations and assaults in aid of racketeering.
Liggins, Offerd, Thomas, and Smart were arrested this morning. They are scheduled to make initial court appearances today at 2:00 p.m. before U.S. Magistrate Judge M. David Weisman. Roberson is currently in the custody of the Cook County Department of Corrections. His initial federal court appearance will be scheduled at a later date.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. Substantial assistance in the investigation was provided by the Cook County State’s Attorney’s Office.
The government is represented by Assistant U.S. Attorneys Jason A. Julien, Albert Berry III, and Ann Marie Ursini.
The public is reminded that an indictment is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The murder count in the indictment carries a mandatory minimum sentence of life in federal prison and a maximum potential sentence of the death penalty. One of the firearm counts is also punishable by a maximum potential sentence of the death penalty, while the other firearm count is punishable by a mandatory minimum of ten years and a maximum of life. The assault counts are each punishable by a maximum of twenty years. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Felon sentenced to prison for possessing firearmRead the Press Release
GREAT FALLS — A Billings man who had absconded from probation and was arrested on the Blackfeet Indian Reservation was sentenced today to two years in prison to be followed by two years of supervised release for illegally possessing a firearm, Acting U.S. Attorney Leif M. Johnson said.
Aaron Leo Ludwig, 30, pleaded guilty in June to felon in possession of a firearm.
Chief U.S. District Judge Brian M. Morris presided.
The government alleged in court documents that on Dec. 22, 2020, law enforcement in Browning, on the Blackfeet Indian Reservation, were looking for Ludwig, who was wanted on a probation hold, and located him at a residence. A female at the residence asked officers if she could get a jacket for Ludwig because of the cold weather, and Ludwig had asked her for a particular jacket. When the female picked up the jacket, she paused and then pulled a gun out of a pocket in the presence of officers. Ludwig looked up at the ceiling. Ludwig initially declined to say how he got the firearm, identified as a 9mm pistol that had been reported stolen in Billings in May 2020. Ludwig later stated the gun was his and that it was “hot.” Ludwig had previous felony convictions, including for a drug offense and for partner or family member assault, and was prohibited from possessing firearms.
Assistant U.S. Attorney Ethan R. Plaut prosecuted the case, which was investigated by the FBI, Glacier County Sheriff’s Office and Billings Police Department.
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Federal Jury Convicts Couple for Transporting Illegal Aliens and Money LaunderingRead the Press Release
BIRMINGHAM, Ala. – A federal jury convicted a husband and wife yesterday for transporting illegal aliens to provide labor for a local chicken plant, announced U.S. Attorney Prim F. Escalona and U.S. Immigration and Customs Enforcement Homeland Security Investigations Special Agent in Charge Katrina W. Berger.
The jury returned its guilty verdict against Deivin Marquitos Escalante-Vasquez, 31, and Crystal Gail Escalante, 38, both of Haleyville, after 5 days of testimony before Chief U.S. District Judge L. Scott Coogler. The couple was convicted of conspiracy to transport illegal aliens within the United States and money laundering.
“This conviction demonstrates how individuals willing to break the law can take advantage of immigration laws for personal gain,” U.S. Attorney Escalona said. “More importantly, no matter how sophisticated their efforts, we will continue to work closely with our law enforcement partners and agencies to see that the immigration laws are followed, and that those who violate them are caught and convicted.”
“Our nation’s employment laws are designed to protect the legal force and prevent business from profiting under an unequitable financial advantages,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI is committed to protecting our citizens and employees from those who seek to gain an illegal advantage and make illicit profits by putting others at risk.”
The evidence at trial showed that the defendants subcontracted over approximately a three-year period with Mar-Jac Poultry, a poultry processing plant in Jasper, to provide labor to work the lines at the plant. The defendants filled multiple shifts with undocumented workers, many of whom were from Guatemala, who were working under false identifications. Evidence also showed that the defendants knew the identities were false and changed names and identities when necessary to ensure the false identities would get through the E-Verify system. The evidence also showed that, when the identities could not get through the E-Verify confirmation system, the defendants kept the workers on their payroll. The defendants owned several passenger vans and used them to provide their workers transportation to and from the plant, which the jury found furthered the illegal workers’ presence in the United States. Over a three-year period, the defendants were paid over 16 million dollars, and used some of their profits to purchase properties in the Haleyville area, and several high-end vehicles. The properties, vehicles, and the defendants’ bank accounts will be the subject of a future asset forfeiture proceeding.
The maximum penalty for conspiracy to transport illegal aliens in furtherance of their presence in the United States is 10 years in prison. The maximum penalty for money laundering is 20 years in prison.
The U.S. Immigration and Customs Enforcement Homeland Security Investigations investigated the case. Assistant U.S. Attorneys Russell Penfield, John Hundscheid and Tom Borton are prosecuting the case.
Federal Jury Convicts Defendants in Nutech Energy Resources Securities FraudRead the Press Release
Acting United States Attorney Bob Murray announced today that a federal jury in Cheyenne returned guilty verdicts against a Pennsylvania man and two Florida men related to a stock fraud involving NuTech Energy Resources Inc., a company that claimed to operate coalbed-methane wells in Wyoming. Justin Herman, 50, of Canonsburg, Pennsylvania, and Charles “Chuck” Winters Jr., 61, of Bradenton, Florida, were convicted of fraud and identity theft crimes. Attorney Ian Horn, 67, of Brandon, Florida, was acquitted of the charged fraud crimes but convicted of making a false statement to the grand jury.
According to court documents and evidence presented at trial, Herman and Winters conspired with Robert “Bob” Mitchell, who pleaded guilty earlier this year, to pump and dump NuTech stock. A “pump and dump” is a form of securities fraud where the conspirators manipulate demand for a stock and the stock’s price, and then sell their worthless shares of the stock to the public at the artificially high price. In this case, the conspirators bought control of a publicly traded shell company called EcoEmissions Solutions Inc. and changed the company’s name to NuTech Energy Resources, whose stock was sold under the ticker symbol NERG. The conspirators released information online to create a false image for NuTech as a company located in Gillette that was operating gas wells in Wyoming using a patented technology. In reality, NuTech had no business, no revenue, and no paid employees in Wyoming or elsewhere.
As part of the conspiracy, Herman and Winters used altered, backdated, and forged documents to acquire 13 billion free-trading shares of NuTech common stock. The conspirators then artificially inflated the market price of NuTech common stock by manipulative trading and by releasing to the public false and misleading information about NuTech’s business prospects. When the market price increased based on this false information, the conspirators turned around and sold their worthless NuTech shares to unwitting investors in the public market, including investors in Wyoming and around the world.
Ian Horn is a Florida-licensed attorney. As part of the investigation, Horn was subpoenaed to testify before the grand jury in January 2019 because his name appeared on documents related to NuTech and because the money used by Mitchell and Herman to buy control of EcoEmissions was transferred through Horn’s bank accounts. The jury found that Horn lied during his grand jury testimony about NuTech-related email communications that he falsely claimed he had lost and could not access even though he still had access to his email and was forwarding relevant email messages to Herman in December 2018.
Herman and Winters were each found guilty of conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and multiple counts of aggravated identity theft. Herman faces a mandatory two-year prison sentence and could be sentenced to a maximum of 53 years in prison. Winters also faces a mandatory two-year prison sentence and could be sentenced to a maximum of 49 years in prison. Horn was found guilty of making a false statement to the grand jury and could be sentenced to a maximum of 5 years in prison. The defendants are scheduled to be sentenced by the Honorable Alan B. Johnson, United States District Court Judge, in Cheyenne on January 5, 2022.
Bob Mitchell is scheduled to be sentenced by Judge Johnson on October 15, 2021. Mitchell could be sentenced to a maximum of 25 years in prison.
“These convictions are the direct result of a diligent investigation by a hardworking Postal Inspector and our partners at the Department of Interior Office of Inspector General and the U.S. Attorney’s Office for the District of Wyoming,” said Ruth Mendonça, Inspector in Charge of the Denver Division, which includes Wyoming. “Working together, their perseverance unraveled the defendants’ complex scheme to defraud over 2,300 victims and delivered the justice that each victim deserved. We are proud of the efforts to uphold the mission of the U.S. Postal Inspection Service to protect postal customers and consumers from fraudsters,” said Mendonça.
This case was investigated by the U.S. Postal Inspection Service and the U.S. Department of Interior’s Office of Inspector General. Assistant United States Attorneys Eric Heimann and Thomas Szott prosecuted the defendants. The Criminal Prosecution Assistance Group of the Financial Industry Regulatory Authority (FINRA) assisted in the investigation and prosecution.
Duluth Souvenir and T-Shirt Store Owner Pleads Guilty to Tax EvasionRead the Press Release
DULUTH, Minn. – A Duluth man pleaded guilty today to tax evasion for failing to report his business revenue and income to the IRS, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, between June 2019 and April 2020, Shimon Shaked, 57, owned and operated several t-shirt and souvenir shops in Duluth’s Canal Park tourist zone, including I Love Duluth, I Love Duluth 2, Up North-The Good Life, and the Lake Life (the “Duluth Stores”). Shaked operated the Duluth Stores under a holding company called ALMS18, LLC, which he formed in 2012. Although Shaked owned, operated, and controlled ALMS18, LLC, he listed his teenage daughter as the nominal owner in order to hide and evade taxes on income he received from the company. In 2017, Shaked opened I Love Marquette, another souvenir store located in Marquette, Michigan, operated under the company SkyMqt, LLC.
According to his guilty plea, Shaked evaded the assessment of taxes on the income he earned through his Duluth and Michigan stores by failing to report the full revenue and income to the IRS. Specifically, Shaked reported the credit card sales for his stores, but failed to report or pay taxes on most of the cash sales. To further conceal his income, Shaked used the cash from the unreported cash sales to pay for personal expenses and to pay some of his employees' overtime wages in cash. In doing so, Shaked failed to account for and pay over to the IRS some or all of the required federal payroll taxes due and owing for those employees. In total, Shaked evaded paying approximately $620,362 in taxes.
Shaked entered his guilty plea earlier today before Chief U.S. District Judge John R. Tunheim. A sentencing hearing has been scheduled for February 15, 2022.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.
Assistant U.S. Attorneys Joseph H. Thompson and Angela M. Munoz are prosecuting the case.
Drug User Sentenced to Federal Prison for Unlawfully Possessing a GunRead the Press Release
A man involved in a traffic incident where two drivers called police on each other was sentenced October 12, 2021, to more than three years in federal prison.
Trever Carl Christopherson, age 32, from Cedar Rapids, Iowa, received the prison term after a May 25, 2021 guilty plea to being a drug user in possession of a firearm.
Christopherson was involved in a traffic incident on January 1, 2020, during which he and the other driver reported each other to police. While investigating the incident, officers recovered a gun in Christopherson’s car. Christopherson admitted during his plea hearing that he was a methamphetamine user at the time. Christopherson was convicted of felony theft and extortion relating to separate incidents following the recovery of the firearm. During a separate investigation, Christopherson was found in possession of a shotgun. Christopherson had sawed‑off a portion of the barrel of the shotgun.
Christopherson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Christopherson was sentenced to 37 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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.
Christopherson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Buchanan County Sheriff’s Office, the Washington County Sheriff’s Office, the Cedar Rapids Police Department, and the North Liberty Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-48.
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Dominican National Sentenced for Illegal Reentry and Money LaunderingRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston for participating in a money laundering conspiracy that laundered or attempted to launder between $150,000 and $250,000 worth of drug sales proceeds and illegally reentering the United States after being deported.
Rafael Pascal, 57, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to four years in prison. Pascal will be subject to deportation upon completion of his sentence. On July 12, 2019, Pascal pleaded guilty to illegal reentry of a deported alien and money laundering conspiracy.
In January 2002, Pascal was deported to the Dominican Republic. In May 2012, Pascal was located in Palm Beach County, Fla., after illegally reentering the United States. Pascal subsequently pleaded guilty to illegal reentry and was deported in 2013. At some point thereafter, Pascal again illegally reentered the United States prior to being arrested in May 2018 on state drug charges. A fingerprint match at the time of his arrest identified Pascal as a previously deported alien and he was taken into federal custody and charged in this case.
From approximately March 2017 through at least July 2017, Pascal participated in a conspiracy to launder money obtained from the sale of controlled substances. Pascal obtained cash proceeds from drug sales from various individuals and then delivered the money to individuals who were responsible for laundering the money. On one occasion, Pascal picked up and delivered $59,060 to an undercover agent. Pascal also arranged for drug sales proceeds in New York to be picked up and laundered. Pascal was held responsible for the laundering of more than $200,000 in drug proceeds.
Acting United States Attorney Nathaniel R Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Joleen D. Simpson, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; Todd Lyons, Field Office Director, Boston, U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. The Wakefield, Arlington, Ipswich, Somerville and Boston Police Departments provided valuable assistance in the investigation. Assistant U.S. Attorneys James E. Arnold and Philip C. Cheng of Mendell’s Narcotics and Money Laundering Unit prosecuted 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 https://www.justice.gov/OCDETF.
Dominican National Sentenced for Fentanyl PossessionRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence was sentenced yesterday for fentanyl possession.
Esteban Nivar Araujo, 39, was sentenced by U.S. District Court Judge Indira Talwani to two years in prison and two years of supervised release. Nivar Araujo may be subject to deportation proceedings upon completion of his sentence. On May 13, 2021, Nivar Araujo pleaded guilty to one count of possession with intent to distribute 40 grams or more of fentanyl.
In July 2019, a search of Nivar Araujo’s residence resulted in the seizure of over 50 grams of a substance containing fentanyl and drug distribution paraphernalia. The fentanyl was packaged in multiple bags and stored alongside hundreds of grams of a substance likely used to dilute the fentanyl for resale.
This case is part of a coordinated enforcement operation in the Merrimack Valley called “Devil’s Highway.” The operation targeted the distribution of opioids, including fentanyl and heroin, and resulted in charges against approximately 40 people for federal drug offenses, with at least a dozen more individuals facing state charges.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement. Assistance was provided by the Massachusetts State Police and the Andover Police Department. Assistant U.S. Attorney Charles B. Weinograd of Mendell’s Office prosecuted the case.
District Man Sentenced to 10 ½ Years in Prison for Armed Robbery and Earlier ShootingRead the Press Release
WASHINGTON – Davon Robinson, 28, of Washington, D.C., was sentenced today to a 10 ½-year prison term for robbing a fast-food restaurant in Northeast Washington at gunpoint earlier this year and shooting a man at close range on a busy street in Southeast Washington last year, announced Acting U.S. Attorney Channing D. Phillips.
Robinson pleaded guilty in June 2021, in the Superior Court of the District of Columbia, to armed robbery, assault with a dangerous weapon, and firearms offenses. The plea, which was contingent upon the Court’s approval, called for an agreed-upon sentence of 10 ½ years. The Honorable Robert D. Okun accepted the plea and sentenced Robinson accordingly. Following his prison term, Robinson will be placed on five years of supervised release.
The armed robbery took place at about 12:05 p.m. on Feb. 25, 2021, at a Chick-fil-A in the 1400 block of Maryland Avenue NE. According to the government’s evidence, Robinson entered the restaurant while holding a pistol with an extended magazine. He then brandished the weapon at multiple employees and forced them back. He grabbed the arm of one employee and ordered the worker to open the cash register, threatening to kill the worker if his orders were not followed. Robinson then grabbed a handful of bills and attempted to flee. However, as Robinson exited the restaurant, he was shot by an on-duty Special Police Officer. Robinson was apprehended and taken to a hospital for a gunshot wound to the face. Police recovered the pistol, which was later determined to be a 9 mm “ghost gun” loaded with 22 rounds of ammunition.
The shooting took place on Aug. 21, 2020, in front of a gas station in the 3000 block of Martin Luther King Jr. Avenue SE. According to the government’s evidence, Robinson approached the victim at approximately 8 p.m. They began a conversation and, soon afterward, Robinson stepped back, pulled out a pistol, and shot the victim once at close range. The victim was struck in the hip and was admitted to the hospital for a gunshot wound. The incident was captured on surveillance video and Robinson was identified through DNA that was recovered from a hat he dropped while fleeing the scene.
In announcing the sentence, Acting U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Alesha Matthews and Assistant U.S. Attorney Miles E. Janssen, who is prosecuting both matters.
Department of Justice Names Philadelphia as One of Ten New Public Safety Partnership SitesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams, City of Philadelphia Mayor Jim Kenney, and Philadelphia Police Commissioner Danielle Outlaw announced that the City of Philadelphia was designated by the Justice Department as one of ten new National Public Safety Partnership (PSP) sites that will work with the Department, local agencies and community organizations to reduce violence in areas with elevated crime rates. PSP is a Justice Department-wide initiative that enables communities to receive coordinated training and technical assistance and an array of resources from the Department’s programmatic and law enforcement components.
After decades of falling crime rates, many cities across the county, including Philadelphia, have seen a dramatic increase in violent crime rates. To address the increase in violence, specifically gun violence, on May 26, 2021, the Attorney General announced the Department’s new Comprehensive Strategy for Reducing Violent Crime. The addition of ten new PSP sites is one facet of that strategy; the new sites are: Antioch, California; Aurora, Colorado; Chattanooga, Tennessee; Gary, Indiana; Louisville, Kentucky; North Charleston/Charleston, South Carolina; Philadelphia, Pennsylvania; Phoenix, Arizona; Richmond, Virginia; and Shreveport, Louisiana.
The PSP program began as a pilot in 2014 and was formally adopted by the Department as an intensive training and technical assistance protocol in June 2017. Sites must apply to participate. To be considered for selection, a site must have sustained levels of violence that far exceed the national average and demonstrate a commitment to reducing crime and enhancing community engagement.
“I am grateful to the Department of Justice for selecting Philadelphia to participate in the PSP program,” said Acting U.S. Attorney Jennifer Arbittier Williams. “PSP emphasizes the importance of law enforcement and community partnerships, essential factors to achieving comprehensive and sustainable approaches to Philadelphia’s violent crime epidemic and a theme we have repeated again and again this year. PSP, with its vast support and resources, joins a growing list of initiatives through which the federal government seeks to assist the Philadelphia Police Department in its mission to reduce and combat violent crime, including the ‘All Hands On Deck’ effort and the ATF’s NIBIN Mobile Unit. Please take heart, Philadelphia; we are continuing to fight and will turn the tide of violence.”
“We are pleased to announce that the Philadelphia Police Department has been selected to participate in the Department of Justice’s Public Safety Partnership. Public Safety is the responsibility of everyone—not just law enforcement. The PSP will not only assist the PPD in ensuring that implementing the latest best practices, but it will also aid with collaboration between the department and other stakeholders,” said Mayor Jim Kenney. “This is a big win for our city, and it comes at no cost to our taxpayers.”
“I’m encouraged that Philadelphia was chosen to take part in the DOJ's Public Safety Partnership—a program that will ensure the Philadelphia Police Department’s remains a leader in modern policing and will help protect our city,” said Police Commissioner Danielle Outlaw. “As a learning organization, our department strives for best practices and equitable policing. PSP will help us improve our current practices, policies, and procedures so that our organization is in a better position to serve the community not just today, but far into the future.”
"Violence—gun violence in particular—has taken a heavy toll on communities across the country, and its impact has been felt most deeply in neighborhoods where resources have always been scarce and justice has historically been elusive,” said Amy L. Solomon, Acting Assistant Attorney General of the Justice Department’s Office of Justice Programs, whose Bureau of Justice Assistance administers the PSP initiative. “We are proud to join local leaders and our partners from across the Department of Justice as we work together to stem the tide of violent crime in these hard-hit communities.”
“From five to now 50 jurisdictions in seven years, PSP has taught the Department a new way to work with communities. We have learned that it is only by leveraging the power of community and using all our collective resources and dedicating all our efforts that we will reduce crime,” said BJA Acting Director Kristen Mahoney. “We look forward to partnering with the 10 new sites to achieve what we are all working toward—safe places to live and work.”
About the PSP Team
The PSP team supports local law enforcement and other key stakeholders in developing each site’s capacity to address its unique violent crime challenges to enhance public safety. Through a collaborative approach and data-driven decision making, the PSP approach ensures that local resources are maximized and federal assets are leveraged where they are most needed. Implemented in 2014 as a pilot program, PSP has served more than 40 sites nationwide. The PSP team’s work is driven by local needs and priorities focused on increasing capacities to reduce violent crime and increase community engagement.
Department of Justice Awards over $270,000 to “Pa Coalitions Against Rape and Domestic Violence” to Combat Sexual Assault and Domestic ViolenceRead the Press Release
HARISBURG –Acting U.S. Attorney Bruce D. Brandler announced that the Department of Justice’s Office of Violence Against Women (OVW) has awarded $172,076 to “PA Coalition Against Rape,” located in Enola, Pennsylvania, to help combat sexual assault, and $98,706 to “PA Coalition Against Domestic Violence,” located in Harrisburg, Pennsylvania, to help combat domestic violence.
OVW’s grant to “PA Coalition Against Rape” (PCAR) will build on and sustain on PCAR’s prior efforts to enhance services to under and unserved communities impacted by sexual harassment, abuse, and assault. Funding from this grant helps support local efforts to improve services and infrastructure to better serve all members of communities impacted by sexual violence. The grant also supports internal workgroups, staff learning opportunities, ongoing technical assistance, and collaboration with network of rape crisis centers and statewide partners. This funding affords PCAR the opportunity to build internal racial justice and language access work by continuing to work in partnership with culturally specific organizations.
OVW’s grant to “PA Coalition Against Domestic Violence” (PCADV) is foundational to continuing to support and grow PCADV’s primary initiatives that support the core of its mission. The funding allows for sustainability of key training and technical assistance, and public awareness activities that support core initiatives at the statewide and local levels. The initiatives include:
- Impact of domestic violence on children;
- Intimate partner violence in later life (IPVILL);
- Helping underserved populations;
- Providing safe housing;
- Ending abuse in the LGBTQ+ community;
- Economic justice and empowerment;
- The intersection of domestic violence and animal abuse;
- Lethality Assessment Program (LAP);
- Civil Legal Representation (CLR); and
- Medical Advocacy.
“The awards we are making this year will touch the lives of millions of survivors of violence and help our nation end these devastating crimes,” said Allison Randall, OVW Acting Director. “OVW is proud to be the leading federal voice in the country’s fight against sexual and domestic violence.”
“This funding provides the Coalition with important support of its infrastructure, which is rare but extremely necessary to ensure PCAR has the capacity to provide support for local sexual assault services programs,” stated COO Joyce Lukima.
“The DOJ OVW State Coalition grant funding is essential for sustaining our fundamental projects,” said Susan Higginbotham, CEO, PCADV. “It funds state-level training and technical assistance for intersectional initiatives and resources that enable our local programs to serve more survivors, especially those in underserved communities.”
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Convicted Sex Offender Sentenced to 15 Years in Federal Prison for Child Exploitation CrimesRead the Press Release
BOWLING GREEN, KY – Barret Lawrence, 39, of Franklin, Kentucky, was sentenced by United States Chief District Judge Greg N. Stivers today to 15 years in prison followed by a life term of Supervised Release for receipt and attempted receipt of child pornography, accessing with the intent to view child pornography, and possession of child pornography. There is no parole in the federal system.
“I commend HSI, the Franklin Police Department, and the Simpson County Sheriff’s Office for their outstanding work in this case,” stated Acting U.S. Attorney Michael A. Bennett. “As a result of their efforts, our children are safer, and a dangerous individual will now spend the next 15 years in prison followed by a life term of federal supervision.”
“Our HSI agents are committed to protecting children from exploitation by predators involved with the production, distribution and possession of child sexual abuse material,” said HSI Nashville Special Agent in Charge Jerry C. Templet, Jr. “The result of this investigation shows that perpetrators of these heinous crimes will be punished with lengthy prison sentences for their actions.”
According to the Plea Agreement and other Court documents in the case, Lawrence was previously convicted in September 2000 in the Warren Circuit Court of Attempted Rape in the First Degree of a three-year old child and was released from incarceration on that offense in November 2010. Law enforcement became aware of Lawrence’s most recent criminal activity when they discovered that, on May 21, 2019, he had accessed a website that had an explicit focus on the facilitation of sharing child abuse material with an emphasis on BDSM, hurtcore, gore and death-related material. A federal search warrant subsequently executed at Lawrence’s residence revealed that Lawrence had received and possessed numerous additional images and videos of child pornography, and that he had accessed some of those images at least as early as 2014.
The United States Department of Homeland Security, Homeland Security Investigations (HSI) with the assistance of the Franklin Police Department and the Simpson County Sheriff’s Office investigated the case.
Assistant U.S. Attorneys Jo E. Lawless and Stephanie M. 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.”
Convicted Felon Pleads Guilty to Gun ChargeRead the Press Release
BIRMINGHAM, Ala. – A convicted felon pleaded guilty today for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Mickey French.
Shane Kirby Green, 48, of Fairfield, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Karon O. Bowdre.
According to the plea agreement, on July 1, 2020, Jefferson County Sheriff’s deputies were dispatched to a gas station in Birmingham on a complaint of a person with a gun. Upon arrival, deputies saw Green standing at a gas pump talking to two other individuals. The deputies asked Green to walk over to them, but he refused. Green initially fled from deputies, but was caught after he tripped over a curb. Green was uncooperative with deputies when they were trying to handcuff him. During the arrest, deputies saw a gun in Green’s jacket pocket. Green tried to get the gun out of his pocket, but a deputy was able to get the gun, a Rossi .38 caliber revolver, first.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Green has 12 prior felony convictions, including receiving stolen property, several instances of unlawful possession of marijuana, criminal possession of forged instrument, promoting prison contraband, unlawful possession of controlled substance by fraud, and several instances of unlawful possession of controlled substance.
Green faces a maximum penalty of 10 years in prison for being a felon in possession of a firearm.
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.
The ATF investigated the case, along with the Jefferson County Sheriff’s Office. Assistant U.S. Attorney Kristy Peoples is prosecuting the case.
Convicted Felon Pleads Guilty to Gun ChargeRead the Press Release
BIRMINGHAM, Ala. – A convicted felon pleaded guilty today for being a felon in possession of a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms, and Explosives Acting Special Agent in Charge Mickey French.
Cedric Dewayne Young, 33, of Fairfield, pleaded guilty to being a felon in possession of a firearm before U.S. District Judge Anna M. Manasco.
According to the plea agreement, on November 23, 2020, Birmingham Police officers were conducting an investigation at a residence in Birmingham. The complainants advised the officers that Young pointed a firearm at them. The complainants gave a description of the suspect’s vehicle. The officers issued a BOLO (“be on the lookout”) for the suspect vehicle. A short time later, an officer saw a vehicle that matched the description of Young’s vehicle at a convenience store on Jefferson Avenue SW. Two officers made contact with Young inside the store. Young was uncooperative with officers during his arrest. When officers finally got control of Young, he refused to move his right hand from under his body. Officers found a loaded Taurus 9mm pistol in the waistband of Young’s shorts.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Young has two felony convictions, including discharging a gun into an occupied building or vehicle, and assault.
Young faces a maximum penalty of 10 years in prison for being a felon in possession of a firearm.
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.
The ATF investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorney Kristy Peoples is prosecuting the case.
Convicted Felon Connected to Multiple Guns Sentenced to over Six Years in Federal PrisonRead the Press Release
A convicted felon who unlawfully possessed a gun was sentenced October 12, 2021, to more than six years in federal prison.
Wonyae Black, age 24, from Waterloo, Iowa, received the prison term after a guilty plea to one count of being a felon in possession of a firearm.
Information at sentencing showed that between March and June 2020, Black was connected to three incidents involving guns. First, in March 2020, Black, while armed with a handgun, kicked down the door of a residence, pointed a gun at the occupant, and stole property from the residence. Second, in June 2020, a gun was recovered at the scene of a shooting in Waterloo. Black’s fingerprint was found on a round of ammunition in the gun.
Third, on June 18, 2020, officers from the Waterloo Police Department attempted to stop the car Black was driving. Rather than stop, Black fled, reaching speeds more than 25 mph over the speed limit. Black eventually crashed into another occupied car, sending both cars careening into a tree. The tree fell over and landed on two unoccupied cars. No one was hurt. Black got out of his car and fled on foot. Officers caught up to him and saw that his hands were over the top of a fence. On the other side of the fence, officers found a bag containing a handgun and marijuana.
Black has multiple prior criminal convictions, including convictions for assault causing bodily injury, carrying weapons, theft, interference with official acts, and felon in possession of a firearm.
Black was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Black was sentenced to 78 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). 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
Black is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Anthony Morfitt and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2043.
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Connecticut Employment Contractor Pays $600K to Resolve Federal False Claims Act AllegationsRead the Press Release
The United States Attorney’s Office today announced that it has entered into a settlement agreement with New Britain-based CW Resources Inc. to resolve allegations that CW Resources submitted claims that falsely certified compliance with program requirements and failed to maintain adequate medical documentation of significantly disabled employees pursuant to the AbilityOne Program.
The U.S. AbilityOne Commission is an independent federal agency that administers the AbilityOne Program, which provides employment opportunities for people who are blind or have significant disabilities in the manufacture and delivery of products and services to the federal government. To qualify for contracts administered by the AbilityOne Commission, CW Resources was required by federal regulation to employ significantly disabled individuals for 75 percent of its direct labor hours. To maintain compliance, CW Resources was required to submit annual certifications certifying such compliance.
It is alleged that CW Resources certified to the federal government that its direct labor hour figures were true and accurate when, in fact, the direct labor hours actually worked by significantly disabled individuals were much lower and were not supported by adequate medical documentation.
To resolve allegations under the False Claims Act, CW Resources has agreed to pay the federal government $600,000 and enter into a compliance agreement.
“These false claims damaged an important government program that provides employment opportunities for people who are blind or have significant disabilities, and we hope that this settlement and the funds recovered send a significant deterrent message,” said Acting U.S. Attorney Leonard C Boyle. “Protecting the U.S. Treasury against false claims is a priority of this office and the Justice Department. I thank CW Resources for cooperating fully during the extensive investigation of this matter and we are confident that the compliance program incorporated into this agreement by the AbilityOne Commission will have a positive impact.”
“Protecting the integrity of the procurement process is a top priority for the Department of Defense (DoD) Office of Inspector General Criminal Investigative Service (DCIS),” stated Special Agent in Charge Patrick J. Hegarty, DCIS Northeast Field Office. “Organizations that contract with the DoD under the AbilityOne Program are expected to fulfill the promises they make to the DoD and the significantly disabled individuals the program is intended to employ.”
“This settlement represents the government’s commitment to hold any AbilityOne contractor accountable for noncompliance and ensure that federal dollars intended to employ workers who are blind or have significant disabilities are indeed used for that purpose” said Acting Inspector General Stefania Porter of the U.S. AbilityOne Commission. “Working with the United States Attorney’s Office and our investigative and law enforcement partners, the AbilityOne Office of Inspector General protects the integrity and public trust in the largest employment program in the nation of blind and significantly disabled workers.”
This investigation was conducted by the Office of the Inspector General for the U.S. AbilityOne Commission, the Department of Defense Office of Inspector General Defense Criminal Investigative Service, the Defense Contract Audit Agency, and the U.S. Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney William M. Brown, Jr.
Clovis CPA Indicted for Stealing over $1 Million from a BankRead the Press Release
FRESNO, Calif. — On Oct. 7, 2021, a grand jury returned an indictment against Kenneth Gould, 65, of Clovis, charging him with bank larceny for stealing over $1 million from a federally insured financial institution, Acting U.S. Attorney Phillip A. Talbert announced.
The indictment was unsealed today, and Gould will be arraigned tomorrow on Oct. 14.
According to court documents, Gould was a CPA in Clovis who owned and operated a payroll services company. From October 2017 through March 2018, he initiated over 90 fraudulent Automated Clearing House (ACH) payments totaling over $20 million from one of his clients’ accounts to his payroll company’s account at the same bank. An ACH payment is a type of Electronic Funds Transfer used to move money from one bank account to another account.
Based on its prior business relationship with Gould, the bank credited the fraudulent ACH payments to the payroll company’s account before it realized there were insufficient funds to cover the payments, denied them, and attempted to recover its money. Over $1 million of the credited funds, however, was gone because Gould withdrew the money while the payments were pending. Gould withdrew the money in cash, cashier’s checks, and online transfers to other accounts to which he had access. The bank made several demands to Gould for repayment. He repeatedly promised to repay the funds, but never did so.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Joseph D. Barton is prosecuting the case.
If convicted, Gould faces a maximum statutory penalty of 10 years in prison and a fine of up to $250,000. Any sentence, however, would be determined at the discretion of the court after considering any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Chinle Man Sentenced to over 18 Years for Second Degree Murder in Domestic Violence CaseRead the Press Release
PHOENIX, Ariz. – Last week, Roderrell Boyd Charley, 33, of Chinle, Arizona, was sentenced by U.S. District Judge Douglas L. Rayes to 222 months of imprisonment. Charley previously pleaded guilty to Second Degree Murder.
Between October 7 and 8, 2019, Charley beat the victim to death with his fists and feet. Family members heard Charley screaming and arguing with the victim on the night of October 7. On the morning of October 8, Charley told his sister that the victim was no longer breathing and left the scene. Charley’s mother called the police, who located the victim lying on the road. The victim was pronounced dead on arrival at the emergency room. The victim died of blunt trauma, and had serious internal injuries, multiple fractures, and extensive bruising on her face and body. Charley is an enrolled member of the Navajo Nation.
The Federal Bureau of Investigation and the Navajo Nation Division of Public Safety conducted the investigation in this case. Assistant U.S. Attorneys Jennifer E. LaGrange and Sharon K. Sexton, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-21-08011-PCT-DLR (MHB)
RELEASE NUMBER: 2021- 070_Charley# # #
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.Chicago Woman Found Guilty of Possession with Intent to Distribute 4 Kilos of CocaineRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal jury has found Tashe Goins, 32, of Chicago, Illinois, guilty of possession with intent to distribute cocaine after a two-day trial.
According to court records and evidence presented at trial, on June 16, 2020, Goins was traveling from Chicago, IL to Pittsburgh, PA, when she was stopped by officers with the Ohio State Highway Patrol (OSP) for a traffic violation on Interstate 80 in Trumbull County. Officers identified Goins as the sole driver of the vehicle, and a police canine unit alerted officers to the presence of a narcotic odor coming from inside of the vehicle. Officers then searched the vehicle and discovered approximately four kilograms of cocaine inside a blue suitcase. Goins was arrested and charged with possession with intent to distribute controlled substances.
Goins will be sentenced on January 26, 2022.
The investigation preceding the indictment was conducted by DEA and the Ohio State Patrol. This case is being prosecuted by Assistant U.S. Attorney Yasmine Makridis and Bryson Gillard.
Chicago Man ChargedRead the Press Release
HAMMOND- Rajesh Kanuru, of Chicago, Illinois, has been charged by way of an Indictment with wire fraud and embezzlement of a bankruptcy estate, announced United States Attorney Clifford D. Johnson.
According to documents in this case, Kanuru was an attorney with a practice located in Chicago, Illinois. It is alleged that from March 2012, and continuing through on or about August 2018, Kanuru, with the intent to defraud, knowingly devised, intended to devise, and participated in a scheme to defraud and to obtain money by means of materially false and fraudulent pretenses, representations, and promises. It is alleged that the purpose of the scheme was to defraud his clients, their bankruptcy estate, the bankruptcy trustee, and the U.S. Bankruptcy Court for the Northern District of Indiana and to obtain money for his own personal use and benefit. The total amount of this alleged fraud is $348,388.50.
The United States Attorney’s Office emphasizes that an Indictment is merely an allegation, and that all persons are presumed innocent until and unless proven guilty in court.
If convicted, any specific sentence to be imposed will be determined by the Judge after a consideration of federal statutes and the Federal Sentencing Guidelines.
The investigation is being conducted by the United States Postal Inspection Service in collaboration with the Northern Indiana Bankruptcy Fraud Working Group, out of Region 10 of the Office of the United States Trustee. The case is being prosecuted by Assistant U. S. Attorneys Luke Reilander and Jennifer Chang.
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Cape Coral Fentanyl Dealer Sentenced to 20 Years in PrisonRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced David Levon Massey (32, Cape Coral) to 20 years in federal prison for possessing fentanyl with the intent to distribute. Massey had pleaded guilty on July 7, 2021.
According to court documents, in February 2020, Massey was released from federal prison after serving more than nine years for organizing a prescription pill distribution ring. Shortly after his release, law enforcement received several tips that Massey was again distributing drugs. In October 2020, during the execution of a search warrant at Massey’s residence, law enforcement officers recovered nearly 100 grams of fentanyl, two firearms, and thousands of dollars in cash.
This case was investigated by the United States Drug Enforcement Administration and the Cape Coral Police Department. It was prosecuted by Assistant United States Attorney Michael V. Leeman.