Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
18 November 2021
Former Syracuse-Based Social Security Administration Employee Pleads Guilty to Theft of Government Property and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Sean Okrzesik, age 34, of Syracuse, pled guilty today to charges of theft of government property and aggravated identity theft.
The announcement was made by United States Attorney Carla B. Freedman and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
The charges relate to Okrzesik’s use of the names and Social Security numbers of Supplemental Security Income (SSI) beneficiaries or their representative payees in order to steal SSI benefit payments. Okrzesik’s conduct occurred while he was employed in the Syracuse District Office of the Social Security Administration (SSA). SSI is a federal income supplement program funded by general tax revenue. The program is designed to help the elderly and people with disabilities, with little or no income, cover the costs of basic needs.
As part of his guilty plea, Okrzesik admitted that from February 2020 through February 2021, he opened bank accounts using the names and Social Security numbers of various SSI beneficiaries or their representative payees. Okrzesik also admitted that once these accounts had been created, he would divert SSI benefit payments intended for these beneficiaries into the accounts, which he then used to pay personal expenses including the purchase of video gaming equipment, a custom suit, jewelry, airline tickets to the Caribbean, and online gambling. The total amount of SSI benefits stolen by Okrzesik was $103,798.77.
Sentencing is scheduled for March 16, 2022, in Utica, before United States District Judge David N. Hurd. On the two counts of theft of government property, Okrzesik faces a maximum term of imprisonment of 10 years, a fine of up to $250,000, and a term of supervised of up to 3 years. On the aggravated identity theft count, Okrzesik faces a mandatory term of two years in federal prison which must run consecutively to the sentence imposed on the other counts of conviction.
A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Former Police Officer at the Department of Defense Sentenced for Stealing from the GovernmentRead the Press Release
Greenbelt, Maryland – U.S. Magistrate Judge Gina L. Simms today sentenced Anthony Lesane, age 56, of Fort Washington, Maryland, a former police officer at the Department of Defense, to one year of probation, and a $6,000 fine, for theft of government property, related to his overbilling the government for hours he had not worked. Judge Simms also ordered Lesane to perform 100 hours of community service in the first nine months of his probation and pay restitution in the amount of $25,832.47, which Lesane paid today at his sentencing.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service - Mid-Atlantic Field Office.
According to Lesane’s plea agreement, from at least August 2016 through October 2019, Lesane, a police officer working for the Department of Defense at a facility in Prince George’s County, Maryland, falsely recorded work hours in his department’s time and attendance system that he had not worked. On most occasions, Lesane claimed to have worked overtime hours and on at least one occasion, Lesane claimed work hours while he was out of the country on vacation.
As a result of his fraudulent time and attendance entries, Lesane stole at least $25,832.47 by overbilling his employing agency.
United States Attorney Erek L. Barron praised the Department of Defense Office of Inspector General, Defense Criminal Investigative Service for its work in the investigation and thanked the Naval Criminal Investigative Service for its assistance. Mr. Barron thanked Assistant U.S. Attorney Joseph R. Baldwin, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
# # #
Former Police Officer Found Guilty of Violating an Arrestee’s Civil Rights by Using Excessive ForceRead the Press Release
Former police officer Everett Maynard was found guilty by a federal jury of violating an arrestee’s civil rights by using excessive force against him.
Maynard, 44, was convicted by a jury in Charleston for using excessive force against an arrestee while Maynard was a police officer with the Logan, West Virginia, Police Department.
The jury heard evidence over the course of two days that showed that Maynard assaulted the victim in the bathroom of the Logan Police Department before dragging him into an adjoining room, hauling him across the room, and ramming his head against a doorframe. The assault initially rendered the victim unconscious and left him with a broken shoulder, a broken nose and a cut to his head that required staples to close.
“The Constitution and its Bill of Rights afford all people in our nation the right to be free from unlawful abuse by police officers,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice will not tolerate criminal misconduct by law enforcement officials and will hold accountable those who commit civil rights violations.”
“Everett Maynard abused his authority as a police officer and betrayed the public’s trust when he violated an arrestee’s civil rights,” said U.S. Attorney Will Thompson for the Southern District of West Virginia. “While the overwhelming majority of law enforcement officers perform their duties with honor and professionalism, those who violate the rights of others will be held accountable. The prosecution of cases like this is important to my office, the citizens of West Virginia and the policing profession. I commend P.D. Clemens, the former Chief of the Logan Police Department who now serves as the Sheriff of Logan County, for quickly referring the matter to the West Virginia State Police and the FBI for independent investigation.”
“Everett Maynard used his badge as a license to abuse his power,” said Special Agent in Charge Mike Nordwall of FBI Pittsburgh. “An officer’s use of excessive force violates the oath they are sworn to uphold and the trust placed in them by the community. The FBI is responsible for upholding the Constitution and protecting the American people, and no one is above the law, including law enforcement officers who abuse their authority.”
Maynard’s sentencing has been set for March 17, 2022. He faces a maximum penalty of 10 years of imprisonment.
This case was investigated by the Pittsburgh Division of the FBI with the support of the West Virginia State Police and was prosecuted by Trial Attorney Kathryn E. Gilbert of the Civil Rights Division and Assistant U.S. Attorney Nowles Heinrich of the Southern District of West Virginia.
Former Peoria County Resident Sentenced to 7 ½ Years in Prison for Child Pornography OffenseRead the Press Release
Peoria, Ill. –Benjamin J. Wilson, 42, previously of Peoria, Ill, was sentenced on November 18, 2021, to 90 months’ imprisonment for possession of child pornography.
At Wilson’s sentencing hearing, U.S. District Court Judge James E. Shadid noted the significant and long-lasting impact to the child victims depicted in the videos Wilson possessed.
In September 2021, Wilson pleaded guilty to possession of child pornography, with the offense alleged to have occurred in November 2019. Wilson was detained following arraignment on the indictment and was remanded to the custody of the U.S. Marshals where he has remained since.
The statutory penalty for possession of child pornography is up to 20 years in prison and a fine of up to $250,000.
Following Wilson’s release from the Bureau of Prisons, he will be on federal supervised release for ten years and will be required to register as a sex offender.
The charges are the result of an investigation by the United States Secret Service Central Illinois Cyber Crime Unit with assistance from the Peoria County Sheriff’s Office. Assistant U. S. Attorneys Paul Morris and Katherine G. Legge represented the government in the prosecution.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former New Bedford Man Sentenced for Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A former New Bedford man was sentenced today in federal court in Boston on federal wire fraud charges arising from claims for Pandemic Unemployment Assistance (PUA) funds.
Arthur Pacheco, 47, previously of New Bedford, Mass., was sentenced by U.S. District Court Judge Indira Talwani to one year in prison and three years of supervised release. On July 22, 2021, Pacheco pleaded guilty to two counts of wire fraud. He was indicted in January 2021 along with his wife, Tiffany Pacheco, who pleaded guilty on Aug. 30, 2021 and is scheduled to be sentenced on Jan. 12, 2022.
In April 2020, Tiffany Pacheco was hired by the Massachusetts Department of Unemployment Assistance (DUA) shortly after her release from federal prison following a conviction for aggravated identity theft. While employed by DUA, Tiffany Pacheco misused her position to submit fraudulent PUA claim information on behalf of herself and Arthur Pacheco, who was incarcerated in Texas until Sept. 4, 2020, and thus ineligible for PUA funds.
Specifically, in June 2020, PUA claims submitted for Tiffany Pacheco and her husband reflected 2019 income of $0 and no dependents. In July 2020, via her employment with DUA, Tiffany Pacheco obtained access to the PUA computer system, and later changed claim information for herself and Arthur Pacheco in order to increase the amount of PUA funds they would receive. For example, Tiffany Pacheco increased the amount of 2019 income for her and Arthur Pacheco to more than $240,000 and increased the number of their dependents to seven. Tiffany Pacheco further used her access to the PUA system to verify the increased 2019 income on both claims without the required income verification documents.
In November 2020, Arthur Pacheco called DUA and falsely denied that he had been incarcerated during the timeframe leading up to September 2020, and that he was only incarcerated for approximately one month. Tiffany Pacheco also spoke with DUA and misrepresented the period of time in which Arthur Pacheco had been incarcerated.
A search of the New Bedford apartment where Tiffany and Arthur Pacheco resided uncovered various tools of identity fraud, including an ID laminator, 100 blank ID cards, 68 hologram overlays, 150 card lamination sheets and 649 sheets of blank checks. Law enforcement also seized approximately $17,000 cash and a notebook that appeared to contain the personal identifying information of various individuals. In addition, a driver’s license recovered during the search matched the name of a victim Tiffany Pacheco used to submit another fraudulent PUA claim. On Sept. 23, 2020, DUA terminated Tiffany Pacheco’s employment.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Mellone, Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Labor Racketeering and Fraud Investigation made the announcement. The New Bedford Police Department, Massachusetts Parole Board and Massachusetts Department of Unemployment Assistance, Program Integrity Unit provided valuable assistance with the investigation. Assistant U.S. Attorney William Abely, Chief of Mendell’s Criminal Division, and Assistant U.S. Attorney Dustin Chao, Chief of Mendell’s Public Corruption and Special Prosecutions Unit, prosecuted the case.
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.
Former Margate Police Officer Sentenced to More Than 18 Years for Attempting to Entice A 14-Year-Old Child to Engage in Sexual Activity and for Soliciting Production of Child Sex Abuse ImagesRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Andrew Christian Hammock (48, Boca Raton) to 18 years and 8 months in federal prison for attempting to entice a minor to engage in sexual activity and for attempting to produce visual depictions of a minor engaged in sexually explicit conduct. Hammock was also ordered to serve a 6-year term of supervised release, to register as a sex offender, and to forfeit the cellphone that he used to commit these offenses. When he committed these offenses, Hammock was serving as a police officer with the City of Margate (Florida) Police Department.
Hammock was found guilty by federal jury on June 25, 2021.
According to court documents, during February and March 2020, Hammock used a social media application to send more than 4,700 private online messages to an individual whom he believed was a 14-year-old girl but was actually an undercover FBI agent. After learning her purported age, Hammock told the “child,” “bet you look amazing in a bikini,” and asked the “child” about her sexual experience. Hammock acknowledged the risk he was taking by talking to the “child,” telling her that he could get in trouble for talking to her because she is under 18 and he is not.
Hammock assured the “child” he was trustworthy and a protector and sent the “child” photos of himself wearing his police uniform. He repeatedly told the “child” he was aroused talking to her and that he wanted to help the “child” have her first orgasm. Hammock also repeatedly requested the “child” to take and send him graphic photos of her genitals.
This case was investigated by the Federal Bureau of Investigation, along with the City of Margate Police Department. It was prosecuted by Assistant United States Attorneys Kelly S. Karase and Ashley Washington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former London and Miami Art Dealer Pleads Guilty to Defrauding Art Buyers and Financers of More Than $86 MillionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that INIGO PHILBRICK, an art dealer specializing in post-war and contemporary fine art with galleries in London, United Kingdom, and Miami, Florida, pled guilty today before United States District Judge Sidney H. Stein to one count of wire fraud for perpetrating a multi-year scheme to defraud various individuals and entities in order to finance his art business. In total, PHILBRICK fraudulently obtained more than $86 million as a result of the scheme.
U.S. Attorney Damian Williams said: “Inigo Philbrick was a serial swindler who took advantage of the lack of transparency in the art market to defraud art collectors, investors, and lenders of more than $86 million to finance his art business and his lifestyle. Philbrick has now admitted his guilt and awaits sentencing for perpetrating this extensive fraud.”
According to the allegations in the Complaint, Indictment, and statements made in court:
From approximately 2016 through 2019, to finance his art business, PHILBRICK engaged in a scheme to defraud multiple individuals and entities in the art market located in the New York metropolitan area and abroad. PHILBRICK made material misrepresentations and omissions to art collectors, investors, and lenders to access valuable art and obtain sales proceeds, funding, and loans (the “Fraud Scheme”). PHILBRICK knowingly misrepresented the ownership of certain artworks, for example, by selling a total of more than 100 percent ownership in an artwork to multiple individuals and entities without their knowledge; and by selling artworks and/or using artworks as collateral on loans without the knowledge of co-owners, and without disclosing the ownership interests of third parties to buyers and lenders. PHILBRICK furnished fraudulent contracts and records to investors to artificially inflate the artworks’ value and conceal his scheme, including a contract that listed a stolen identity as the seller.
Over the years, PHILBRICK obtained over $86 million in loans and sale proceeds in connection with the Fraud Scheme. Artworks about which PHILBRICK made these fraudulent misrepresentations in furtherance of the Fraud Scheme include, among others, a 1982 painting by the artist Jean-Michel Basquiat titled “Humidity,” a 2010 untitled painting by the artist Christopher Wool, and an untitled 2012 painting by the artist Rudolf Stingel depicting the artist Pablo Picasso.
By in or about the fall of 2019, PHILBRICK’s Fraud Scheme began to come to light as various investors and lenders learned about the fraudulent records PHILBRICK had provided and the material misrepresentations and omissions he had made. By in or about mid-October, a lender officially notified PHILBRICK that he was in default of approximately a $14 million loan, and by November 2019, various investors had filed civil lawsuits in multiple jurisdictions regarding PHILBRICK’s Fraud Scheme in connection with various artworks. At around the same time, PHILBRICK’s art galleries in Miami and London closed, and PHILBRICK stopped responding to legal process. PHILBRICK fled the United States shortly before public reporting began about the lawsuits. A fugitive, PHILBRICK resided in Vanuatu from approximately October 2019 until he was arrested there on June 11, 2020, in connection with this case.
* * *
PHILBRICK, 34, a U.S. citizen previously residing in London, United Kingdom, pled guilty to one count of wire fraud, which carries a maximum prison term of 20 years. The statutory maximum sentence is prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge. PHILBRICK is scheduled to be sentenced by Judge Stein on March 18, 2022 at 12:00 p.m.
Mr. Williams praised the investigative work of the Federal Bureau of Investigation’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.
Former Air Force Member Sentenced on Child Pornography ChargesRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Adam Richard Henderson, 35, of Bossier City, Louisiana, has been sentenced by United States District Judge Elizabeth E. Foote to 60 months in prison, followed by 5 years of supervised release, on child pornography charges.
In September and October 2020, the Louisiana Bureau of Investigations received cypertip reports from the National Center of Missing and Exploited Children that a Yahoo user was in possession of numerous images of child pornography. Law enforcement agents began an investigation and discovered that the email accounts belonged to Henderson. He was charged and pleaded guilty on July 16, 2021 to transportation of child pornography.
At the guilty plea hearing, Henderson admitted that on March 14, 2020, while living in Bossier City, Louisiana, he emailed images of child pornography from two Yahoo email accounts belonging to him. The images were of prepubescent minors whose genital and pubic areas were lasciviously exhibited. Henderson admitted to sending the images at his guilty plea hearing on July 16, 2021.
The U.S. Air Force, Office of Special Investigations, and Louisiana Bureau of Investigations investigated the case. Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood combines federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
# # #
Felon Pleads Guilty to Gun Possession After Domestic DisturbanceRead the Press Release
Memphis, TN – Donya Davis, 27, has pleaded guilty to being a felon in possession of a weapon during a domestic disturbance. Acting U.S. Attorney Joseph C. Murphy Jr., announced the guilty plea today.
According to information presented in court, on October 11, 2020, officers with the Memphis Police Department responded to an armed party domestic disturbance call in the 2300 block of Ketchum Road. The 911 caller advised that her daughter was locked in a bedroom with the defendant, who was threatening her with a weapon. As the officers arrived on the scene, they could hear the disturbance coming from inside the apartment. They entered the apartment and spoke with the alleged victim, B.C., who is the mother of Davis' children. B.C. allowed the officers to search the apartment, where they found a Mossberg rifle in a Nike backpack, loaded with 1 round in the chamber and 20 rounds in the magazine.
Further investigation revealed, Davis had outstanding warrants for domestic assault and violation of probation, as well as previous convictions for domestic assault involving bodily injury and felony aggravated assault. Davis waived Miranda rights, and admitted to possessing the weapon. As a result of his prior convictions, Davis is prohibited by federal law from possessing firearms or ammunition.
Sentencing is scheduled for March 10, 2022, before U.S. District Judge Sheryl H. Lipman. Davis faces up to ten years imprisonment, to be followed by three years supervised release and a fine of up to $250,000. There is no parole in the federal system.
This case was investigated by the Memphis Police Department and Project Safe Neighborhoods (PSN) Task Force. Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement, and the local community to develop effective, locally based strategies to reduce violent crime.
Special Assistant U.S. Attorney Samuel D. Winnig prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for prosecuting violent crimes and firearms offenses in federal court.
###
Federal jury convicts Columbia County man in “horrific” child sex trafficking caseRead the Press Release
AUGUSTA, GA: A Columbia County man faces up to life in federal prison after a jury convicted him on nine felony counts related to child sex trafficking.
In a verdict returned just after 5 p.m. Thursday, Nov. 18, a U.S. District Court jury found Michael Peyton Gunn, 36, of Evans, Ga., guilty of all nine charges following a four-day trial, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Gunn faces a minimum sentence of 15 years in federal prison, and three of the charges in the case carry a statutory penalty of up to life in prison. There is no parole in the federal system.
“The child exploitation offenses Gunn committed are absolutely horrific, going far beyond the initial, reprehensible child pornography offenses that alerted the FBI to his activities,” said Acting U.S. Attorney Estes. “The jurors are holding Michael Gunn accountable for his monstrous crimes, and providing a path to healing for his victim.”
After the trial before U.S. District Court Chief Judge J. Randal Hall, the jury found Gunn guilty of Conspiracy to Engage in Sex Trafficking of a Minor; Sex Trafficking of a Child; Coercion and Enticement of a Minor to Engage in Sexual Activity; four counts of Production of Child Pornography; Possession of Child Pornography; and Obstruction of a Sex-Trafficking Investigation. Gunn will be sentenced after a background investigation by the U.S. Probation Office.
“Michael Gunn committed unspeakable crimes against a vulnerable child and no sentence for him will wipe away the trauma he has caused the victim,” said Chris Macrae, Acting Special Agent in Charge of FBI Atlanta. “However, thanks to the dedicated work from our agents who aggressively pursue these heinous criminals, Gunn will be removed from our streets where he will no longer be able to harm innocent children.”
The minor victim in the case testified in court that Gunn, through rewards, fear, threats of harm, and intimidation, manipulated the victim to participate in illegal sexual abuse as young as age 7, through sexual exploitation at age 13, as it steadily progressed from production of child pornography to participation in commercial sex trafficking.
As spelled out in evidence and testimony presented during the trial, the investigation led to Gunn in February 2020 when FBI agents were called to assist in a child pornography case in Hopkins County, Texas. Agents discovered more than 700 images – many of them explicit child pornography – depicting a specific minor victim, with digital location information identifying the area of Gunn’s residence in Evans. Agents from the Augusta FBI office later questioned Gunn and searched his home, leading to his indictment in March 2020 on multiple charges of production and possession of child pornography.
The continuing investigation led to a superseding indictment in March 2021 naming Gunn’s then wife, Amanda Gunn, a/k/a “Amanda Howard,” 34, of Augusta, on charges of Sex Trafficking Conspiracy and Obstruction of a Child Sex Trafficking Investigation, and adding multiple child sex trafficking-related charges to Michael Gunn. Amanda Gunn later pled guilty to Sex Trafficking Conspiracy and awaits sentencing. The minor victim testified during Michael Gunn’s trial that he coordinated several years of abuse of the victim in the case, deriving profit from images of the victim and from making the victim available for sexual exploitation by other men.
Also testifying in court was Jonathan Eugene Grantham, 45, of Graniteville, S.C., who awaits sentencing after pleading guilty in August to Coercion and Enticement of a Minor to Engage in Sexual Activity. Grantham admitted responding to an online advertisement trafficking the minor victim, then traveling from South Carolina to Evans to transport the victim to a motel for a sexual act in return for payment. Grantham is a former high school teacher.
The investigation into related crimes in the case continues.
Anyone with information on suspected child sexual exploitation can contact the National Center for Missing and Exploited Children at 800-843-5678, or https://report.cybertip.org/.
The FBI investigated the case. Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons prosecuted the case for the United States with assistance from Paralegal Specialist Tracy Long and Contract Legal Assistant Ana Pridemore.
Federal Jury Convicts Mountain Home Man for Unlawful Possession of FirearmRead the Press Release
BOISE – A federal jury sitting in Boise convicted a Mountain Home man on November 16, 2021 for unlawful possession of a firearm.
According to court records and evidence presented at trial, Brandon J. Yates, 38, of Mountain Home, was previously convicted of a misdemeanor crime of domestic violence. As such, he was prohibited from possessing a firearm. On March 9, 2021, U.S. Probation officers searched Yates’ house pursuant to a supervision agreement. There, they discovered a firearm hidden in the attic of Yates’ garage. After discovering the firearm, the probation officers determined that Yates possessed the firearm and that he had hidden it in the attic to conceal it from law enforcement. Special agents with the Bureau of Alcohol, Tobacco, and Firearms assisted in the investigation.
Yates’ sentencing has yet to be scheduled. He faces a maximum penalty of ten years in federal prison, up to a $250,000 fine, and three years of supervised release. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Probation and Pretrial Services, which led to charges.
###
Federal Judge Sentences Five Methamphetamine TraffickersRead the Press Release
CHARLOTTE, N.C. – Today, U.S. District Judge Kenneth D. Bell handed down sentences of up to 15 years in prison to five defendants for their involvement in a methamphetamine trafficking ring, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Judge Bell sentenced the defendants as follows:
- William Jay Allen, Jr., 29, of Vilas, N.C. was sentenced to 180 months in prison, followed by five years of supervised release. Allen pleaded guilty to drug trafficking conspiracy and distribution methamphetamine.
- Justin Kevin Anderson, 31, of Boone, N.C. was sentenced to 135 months in prison, followed by six years of supervised release. Anderson pleaded guilty to drug trafficking conspiracy and distribution methamphetamine.
- Thomas Burns Shelley, III, 37, of Blowing Rock, N.C., was sentenced to 132 months in prison and five years of supervised release. Shelley pleaded guilty to conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
- Jeffrey David Miller, of Sugar Grove, N.C., was sentenced to 36 months in prison and three years of supervised release. Miller pleaded guilty to conspiracy to distribute methamphetamine and distribution of methamphetamine.
- Danielle Denise Dieters Ward, 42, of Morganton, N.C., was sentenced to 36 months in prison and five years of supervised release. Ward pleaded guilty to conspiracy to distribute methamphetamine and distribution and possession with intent to distribute methamphetamine.
A sixth co-defendant, Timothy Wilson Critcher, 47, of Boone, N.C., is scheduled to be sentenced on December 7, 2021.
According to court documents and the sentencing hearing, from 2018 to 2020, Allen and his co-conspirators trafficked more than 12 kilograms of crystal methamphetamine in Ashe and Watauga Counties, and elsewhere. Court documents show that Allen was the source of supply for the methamphetamine, and his co-defendants operated as couriers and sellers in the conspiracy.
All of the defendants are in currently custody of the U.S. Marshals Service and will be transferred to the custody of the U.S. Bureau of Prisons upon designation of a federal facility.
This case is supported by the Organized Crime and Drug Enforcement Task Force (OCDETF) as part of an ongoing investigation focusing on drug organizations trafficking large quantities of methamphetamine in Western North Carolina. To date, more than 200 individuals have been prosecuted, and law enforcement have seized more than 20 kilograms of crystal methamphetamine, $500,000 in U.S. currency and other assets, and dozens of firearms.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
In making today’s announcement, Acting U.S. Attorney Stetzer recognized the following federal, state and local agencies which partnered in this investigation, and thanked them for their continued cooperation and support: the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); the North Carolina State Bureau of Investigation (NC SBI); the Ashe County Sheriff’s Office; the Watauga County Sheriff’s Office; the Boone Police Department; and the Johnson County Tennessee Sheriff’s Office in Tennessee.
The prosecutions are being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
Federal Grand Jury Issues New Indictment Against Leaders of Philippines-Based Church that Alleges Sex Trafficking SchemeRead the Press Release
SANTA ANA, California – A superseding indictment unsealed today charges the founder of a Philippines-based church and two top administrators of orchestrating a sex trafficking operation that coerced girls and young women to have sex with the church’s leader under threats of “eternal damnation.”
The superseding indictment expands on allegations made early last year against three Los Angeles-based administrators of the church, which is known as the Kingdom of Jesus Christ, The Name Above Every Name (KOJC). The nine defendants named in the 42-count superseding indictment are charged with participating in a labor trafficking scheme that brought church members to the United States, via fraudulently obtained visas, and forced the members to solicit donations for a bogus charity – the Glendale-based Children’s Joy Foundation (CJF) – donations that actually were used to finance church operations and the lavish lifestyles of its leaders. Members who proved successful at soliciting for the KOJC allegedly were forced to enter into sham marriages or obtain fraudulent student visas to continue soliciting in the United States year-round.
The superseding indictment, which was returned by a federal grand jury on November 10, expands the scope of the 2020 indictment by adding six new defendants, including the KOJC’s leader, Apollo Carreon Quiboloy, who was referred to as “The Appointed Son of God.”
Three of the new defendants were arrested today by federal authorities. The remaining three, including Quiboloy, are believed to be in the Philippines.
The defendants charged in the superseding indictment are:
- Quiboloy, believed to be 71, whose primary residence is a KOJC compound in Davao City, Philippines, but who also maintained large residences in Calabasas, California; Las Vegas, Nevada; and Kapolei, Hawaii;
- Teresita Tolibas Dandan, also known as “Tessie” and “Sis Ting,” 59, of Davao City, the “international administrator” who was one of the top overseers of KOJC and CJF operations in the United States;
- Helen Panilag, 56, of Davao City, the one-time top KOJC administrator in the U.S., who oversaw the collection of financial data from KOJC operations around the globe;
- Felina Salinas, also known as “Sis Eng Eng,” 50, of Kapolei, Hawaii, who allegedly was responsible for collecting and securing passports and other documents from KOJC workers in Hawaii, as well as directing funds solicited to church members to church officials in the Philippines (arrested today);
- Guia Cabactulan, 61, the lead KOJC administrator in the United States who operated the KOJC compound in Van Nuys (charged in original indictment);
- Marissa Duenas, 43, a Van Nuys-based administrator who handled fraudulent immigration documents for workers (charged in original indictment);
- Amanda Estopare, 50, another Van Nuys-based administrator who was in charge of tracking and reporting the money raised in the U.S. to KOJC officials in the Philippines (charged in original indictment);
- Bettina Padilla Roces, also known as “Kuki,” 48, a fourth administrator who allegedly handled financial matters (arrested today in Reseda); and
- Maria De Leon, 72, a resident of the Koreatown neighborhood of Los Angeles, the owner of Liberty Legal Document Services, who allegedly processed fraudulent marriages and immigration-related documents for KOJC workers (arrested today at her residence).
The three arrested today are expected to make their initial appearances this afternoon in United States District Court in Los Angeles and Honolulu.
The superseding indictment charges Quiboloy, Dandan and Salinas with participating in a conspiracy to engage in sex trafficking by force, fraud and coercion, as well as the sex trafficking of children. These three defendants allegedly recruited females ranging from approximately 12 to 25 years of age to work as personal assistants, or “pastorals,” for Quiboloy. The indictment states that the victims prepared Quiboloy’s meals, cleaned his residences, gave him massages and were required to have sex with Quiboloy in what the pastorals called “night duty.” The indictment specifically mentions five female victims, three of whom were minors when the alleged sex trafficking began.
“Defendant Quiboloy and other KOJC administrators coerced pastorals into performing ‘night duty’ – that is, sex – with defendant Quiboloy under the threat of physical and verbal abuse and eternal damnation by defendant Quiboloy and other KOJC administrators,” the indictment alleges. “Defendant Quiboloy and other KOJC administrators told pastorals that performing ‘night duty’ was ‘God’s will’ and a privilege, as well as a necessary demonstration of the pastoral’s commitment to give her body to defendant Quiboloy as ‘The Appointed Son of God.’”
The indictment alleges the sex trafficking scheme started no later than 2002 and continued to at least 2018, during which time Quiboloy and his top administrators caused the victims to engage in commercial sex acts by ordering female victims, including the minor victims, to have sex with defendant Quiboloy on a schedule determined by the church leader and others, including Dandan. The victims who were obedient were rewarded with “good food, luxurious hotel rooms, trips to tourist spots, and yearly cash payments that were based on performance” – which were paid for with money solicited by KOJC workers in the United States, according to the indictment.
As part of the alleged scheme, the three defendants told female victims who expressed hesitation at night duty “that they had the devil in them and risked eternal damnation.” Furthermore, Quiboloy would threaten and physically abuse victims who attempted to leave KOJC or were not available to perform night duty, according to the indictment, which also alleges Quiboloy would physically abuse victims for communicating with other men or engaging in other behavior that upset him because he considered such conduct adultery and a sin.
Victims who managed to escape KOJC suffered retaliation in the form of threats, harassment and allegations of criminal misconduct, according to the indictment. “Defendant Quiboloy would give sermons, broadcasted to KOJC members around the world, in which he would allege that victims who escaped had engaged in criminal conduct and sexually promiscuous activity, and therefore faced eternal damnation, in order to discourage other victims from leaving, retaliate against and discredit the victims, and conceal the sexual activity between defendant Quiboloy and the victims,” the indictment states.
Quiboloy, Dandan and Salinas are charged in count one of the superseding indictment, which alleges the sex trafficking conspiracy. Each defendant is charged in at least three of five substantive counts of sex trafficking by force, fraud and coercion.
The superseding indictment also outlines KOJC’s nationwide soliciting operations, which allegedly gave rise to additional criminal conduct, including forced labor, labor trafficking, document servitude, marriage fraud and money laundering.
Under Quiboloy’s direction, KOJC administrators allegedly brought workers from the Philippines to the United States and confiscated all forms of identification before forcing the workers to spend long hours illegally soliciting money for KOJC outside of businesses across the United States. While KOJC workers told potential donors their money would be used by CJF to help impoverished children, the money was actually used to directly finance KOJC operations and the lavish lifestyle of KOJC leaders, including Quiboloy, according to the indictment.
“KOJC administrators maintained the legal immigration status of workers who proved capable of meeting daily cash solicitation quotas by fraudulently obtaining student visas for such workers or by forcing them to enter into sham marriages with other KOJC workers who had already obtained United States citizenship,” the indictment states.
Some of the workers were moved around the United States to solicit donations as CJF “volunteers,” who were also called Full Time Miracle Workers, according to the indictment, which alleges these “workers fundraised for KOJC nearly every day, year-round, working very long hours, and often sleeping in cars overnight.”
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The sex trafficking conspiracy charge alleged in the indictment carries a statutory maximum penalty of life in federal prison. The five substantive sex trafficking charges each carry a mandatory minimum penalty of 15 years in federal prison and a potential sentence of life. The additional fraud, cash smuggling and money laundering offenses in the indictment carry statutory maximum penalties ranging from five to 20 years in federal prison.
As part of the ongoing investigation, the FBI is encouraging potential victims or anyone with information about KOJC activities to contact investigators. Those with information are asked to call the FBI’s Los Angeles Field Office at (310) 477-6565. Individuals may also contact the FBI through its website at https://www.fbi.gov/tips.
The ongoing investigation into KOJC is being led by the FBI, which is receiving substantial assistance from Homeland Security Investigations, U.S. Citizenship and Immigration Service’s Fraud Detection and National Security Unit, the U.S. Department of State’s Diplomatic Security Service, and IRS Criminal Investigation.
Assistant United States Attorneys Daniel H. Ahn, Jake D. Nare and Benjamin D. Lichtman of the Santa Ana Branch Office, along with Special Assistant United States Attorney Angela C. Makabali of the General Crimes Section, are prosecuting this case. Assistant United States Attorney Katharine Schonbachler of the Asset Forfeiture Section is also working on the matter.
Erwin Man Sentenced for 160 Months for Receipt of Child PornographyRead the Press Release
GREENEVILLE, Tenn. – On November 18, 2021, Justin Claude Richardson, 29, currently of Erwin, TN was sentenced by the Honorable R. Leon Jordan, in the United States District Court for the Eastern District of Tennessee at Greeneville, to serve 160 months in federal prison. Upon release, Richardson will be supervised by U.S. Probation for 20 years and will be required to register with the state sex offender registry and comply with special sex offender conditions during supervised release.
As part of the plea agreement filed with the court, Richardson agreed to plead guilty to receipt of child pornography in violation of 18 U.S.C. 2252A(a)(2)(A) and (b)(1). Additionally, the defendant was ordered to pay restitution to victims making claims, who were identified through the Child Victim Identification Program database operated by the National Center for Missing and Exploited Children (NCMEC).
According to court documents, on May 13, 2019, officers stopped Richardson in Unicoi County, Tennessee, upon suspicion of his involvement in a kidnapping. Richardson was placed under arrest and his cellular telephone was seized. Richardson’s cellular telephone contained approximately 2,364 images of child pornography, including images of bestiality, sadomasochistic acts, and infants. The web browser on the cellular phone reflected hundreds of searches for child pornography, with searches occurring shortly before Richardson’s arrest.
The criminal indictment was the result of an investigation by the Unicoi County Sheriff’s Department and Federal Bureau of Investigation. This investigation was led by FBI Special Agent Bianca Pearson.
Assistant United States Attorney J. Gregory Bowman represented the United States.
This case was brought as part of Project Safe Childhood (PSC), a nationwide initiative launched in May 2006, by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC 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 PSC, please visit www.justice.gov/psc.
For more information about internet safety education, please visit www.justice.gov/psc/resources.html and click on the tab "resources.”
###
Eagle Butte Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Elliot Robert Blue Coat, age 45, was indicted on November 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 16, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is ten years in federal prison, a $250,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Blue Coat, a person required to register as a sex offender by reason of a conviction under federal law, knowingly failed to register and update his registration between July 16, 2021, and September 16, 2021, while living in Mobridge, South Dakota.
The charge is merely an accusation and Blue Coat is presumed innocent until and unless proven guilty.
The investigation is being conducted by U.S. Marshals Service, Mobridge Police Department, Campbell County Sheriff’s Office, Walworth County Sheriff’s Office, Corson County Sheriff’s Office, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Blue Coat was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Failure to RegisterRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Brighton Veit, age 22, was indicted on November 9, 2021. He appeared before U.S. Magistrate Judge Mark A Moreno on November 16, 2021 and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life on supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Veit was convicted of Sexual Abuse of a Minor in November 2020. As a result of this conviction, he is required to register as a sex offender. It is alleged that between September 14, 2021, and September 27, 2021, Veit, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Veit is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Carl Thunem is prosecuting the case.
Veit was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Eagle Butte Man Charged with Assaulting a Federal OfficerRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Joseph Elsey, age 26, was indicted on November 9, 2021. He appeared before U.S. Magistrate Judge on November 12, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on October 26, 2020, near Eagle Butte, Elsey assaulted a federal officer using shod feet as a dangerous weapon, while the officer was engaged in the performance of her official duties.
The charge is merely an accusation and Elsey is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carl Thunem is prosecuting the case.
Elsey was released on bond pending trial. A trial date of January 18, 2022, has been set.
Drug Dealer Pleads Guilty to Heroin Distribution and Admits That Heroin He Distributed Resulted in a Fatal OverdoseRead the Press Release
Greenbelt, Maryland – Edwin Kerry Smith, age 43, of Silver Spring, Maryland, pleaded guilty today to possession with intent to distribute a controlled substance and admitted that heroin he distributed to one victim resulted in the victim’s fatal overdose.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division; Chief Marcus Jones of the Montgomery County Police Department; Chief Malik Aziz of the Prince George’s County Police Department; and Chief Robert J. Contee III of the Metropolitan Police Department.
According to his guilty plea, Smith was arrested on March 11, 2021 in Maryland for attempting to distribute four ounces of heroin. Smith committed this offense while on pretrial supervision on narcotics charges in the Circuit Court for Montgomery County.
As part of his guilty plea, Smith also admitted that on August 22, 2019 he distributed heroin to Victim A, who subsequently ingested the heroin provided by Smith, overdosed and died. At the scene of Victim A’s death, law enforcement discovered a ziplock bag containing 1.33 grams of heroin and a small plastic bag containing .34 grams of cocaine. According to an autopsy report from the Office of the Chief Medical Examiner for the State of Maryland, Victim A died of morphine and quetiapine intoxication. The last outgoing communication on Victim A’s phone was a text to order narcotics from Smith and according to historical cell site data, Smith and Victim A met on August 22, 2019 in the same location where Victim A’s body was found. Approximately one month earlier, Smith was arrested near that same location with two bags of heroin, totaling 21.02 grams.
Smith and the government have agreed that, if the Court accepts the plea agreement, Smith will be sentenced to eight years in federal prison. U.S. District Judge Theodore D. Chuang has scheduled sentencing for February 28, 2022 at 2 p.m.
United States Attorney Erek L. Barron commended the DEA, Montgomery County Police Department, the Prince George’s County Police Department, and the Washington Metro Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Caitlin R. Cottingham, who is prosecuting the case.
# # #
Dominican National Sentenced for Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national was sentenced yesterday in federal court in Boston in connection with using the identity of a U.S. citizen at the Massachusetts Registry of Motor Vehicles.
Hector Antonio Cruz Ciprian, 33, a Dominican national previously residing in Lowell, was sentenced by U.S. District Court Chief Judge F. Dennis Saylor IV to 30 months in prison and three years of supervised release. Cruz Ciprian will be subject to deportation proceedings upon completion of his sentence. On June 21, 2021, Cruz Ciprian pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft.
On June 14, 2016, Cruz Ciprian used the identification of a U.S. citizen to apply for an out-of-state driver’s license conversion at the Registry of Motor Vehicles in Haverhill. In the application, Cruz Ciprian provided, among other things, a Social Security card, birth certificate and utility bill in the victim’s name.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and John Cremonini, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations made the announcement today. Valuable assistance was provided by the U.S. Department of Health & Human Services, Office of Inspector General; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; U.S. Department of State, Diplomatic Security Service; U.S. Department of Housing and Urban Development, Office of Inspector General; U.S. Department of Labor, Office of Inspector General; and the Lynn Police Department. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit prosecuted the case.
Department of Justice Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
BILLINGS – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the U.S. Attorney’s Office, District of Montana, two cities were awarded funding totaling $750,000.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“I am pleased to announce that Great Falls and Hardin will be receiving COPS awards. This money will help their police departments hire more officers, support local efforts to drive down violent crime and make their communities safer for everyone,” U.S. Attorney Leif M. Johnson said.
The following cities in Montana received awards:
- Great Falls – $375,000
- Hardin – $375,000
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
###
Court assesses more than $170M in penalties against two area ophthalmologistsRead the Press Release
HOUSTON – Two ophthalmologists and their eye clinic must pay millions of dollars for fraudulently billing Medicare in relation to the evaluation and treatment of glaucoma, announced Acting U.S. Attorney Jennifer B. Lowery.
“Deliberately overcharging the government for medical services wastes our country’s precious health care resources,” said Lowery. “We will not stand idly by as providers in our district attempt to abuse the system.”
U.S. District Judge Lynn N. Hughes assessed the amounts against Dr. Mustapha Kibirige, 58, and Dr. Emelike Agomo, 57, and the eye clinic they operated in Houston – Outreach Diagnostic Clinic LLP. Kibirige also practices in Humble.
The action is a result of a whistleblower lawsuit a former employee of Outreach had filed under the False Claims Act (FCA). It alleged the two ophthalmologists were fraudulently billing the Medicare Program for single eye pressure measurement tests used to assess and treat glaucoma. Kibirige and Agomo allegedly billed the federal health care program using an improper reimbursement code that provided a higher reimbursement than what was allowed.
Under the FCA, the government is entitled to treble damages and a penalty on each false claim. Judge Hughes determined those damages amounted to $2,422,350. The court further found the practice had submitted 14,450 false claims to the Medicare Program between 2006 and 2012. Judge Hughes assessed a penalty of $11,803 for each of those false claims, resulting in a total of $170,553,350 in penalties.
Under the FCA, a private party can file an action on behalf of the United States and receive a share of the recovery.
The Department of Health and Human Services - Office of Inspector General conducted the investigation. Deputy Civil Chief Andrew A. Bobb and former Assistant U.S. Attorney Jose Vela handled that matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Convicted Felon Sentenced for Illegally Possessing a FirearmRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Austin Hack, 24, of Lafayette, has been sentenced by United States District Judge Michael J. Juneau to 26 months in prison, followed by 3 years of supervised release, on firearms charges.
Hack was indicted by a federal grand jury on November 18, 2020 and charged with one count of possession of a firearm by a convicted felon. On April 6, 2021, Hack pleaded guilty to the charge. This case was initiated on January 25, 2019 when officers with the Lafayette Police Department arrested Hack on outstanding arrest warrants on unrelated matters. Before his arrest, Hack was seen driving a silver Mercedes Benz vehicle and had parked it at a residence on Sonny Street in Lafayette. Law enforcement officers surrounded the residence and demanded Hack to come out of the residence. He eventually complied and officers obtained a search warrant and conducted a search of the vehicle he had been driving. Inside the vehicle officers found a revolver loaded with 5 rounds of ammunition, as well as 20 additional rounds of ammunition. Hack admitted to law enforcement officers that the firearm was his and he had purchased it off the street.
As an individual having been previously convicted of a felony, Hack knew he was prohibited from possessing a firearm or ammunition. His prior felony conviction is for illegal possession of a stolen firearm (2018).
The ATF and Lafayette Police Department investigated the case. Assistant U.S. Attorney John W. Nickel prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
# # #
Controller for Anaheim-Based Companies Charged in Federal Grand Jury Indictment that Alleges $3 Million EmbezzlementRead the Press Release
SANTA ANA, California – A federal grand jury today returned a 15-count indictment that accuses the former controller for two Anaheim-based companies of embezzling more than $3 million by directing the transfer of company funds to bank accounts that she controlled.
Rosalba Meza, also known as “Rosalba Sceville,” 47, of Coto de Caza, who was arrested earlier this month pursuant to a criminal complaint filed by prosecutors, is scheduled to be arraigned on the indictment on November 29 in United States District Court.
From May 2017 through the end of 2019, Meza allegedly made unauthorized transfers – currently estimated to total $3,071,880 – from bank accounts belonging to Trilogy Plumbing, Inc. and a related company called Matrix Management, LLC.
In February 2019, Meza told executives their companies did not have funds to meet payroll obligations and failed to inform the executives that she had been embezzling from the companies, the indictment alleges. Several months later, while the companies were the subject of an IRS enforcement action because of unpaid payroll taxes, Meza falsely told the executives that she did not pay the quarterly payroll taxes because she instead had used those funds to pay employees, according to the indictment.
The indictment alleges that, once the funds were transferred to her accounts, Meza used the stolen money to make approximately $292,137 in cash withdrawals at bank branches and more than $1 million in withdrawals at ATMs in the United States and Mexico. Meza also allegedly wired approximately $870,209 to bank accounts in Mexico owned by a family member and another $250,000 in transfers to other family members and friends.
The indictment also alleges that Meza filed tax returns for the years 2017 through 2019 that failed to report as income the embezzled funds.
The indictment charges Meza with eight counts of wire fraud, four counts of money laundering and three counts of subscribing to a false tax return. The wire fraud charges carry a statutory maximum penalty of 20 years in federal prison, while the money laundering and tax counts carry potential penalties of 10 years and three years, respectively.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FBI and IRS Criminal Investigation are conducting the investigation in this matter.
Special Assistant United States Attorney Ryan G. Adams of the Santa Ana Branch Office is prosecuting this case.
Colville Tribal Member Sentenced to 78 Months After Robbing and Killing VictimRead the Press Release
Spokane, Washington – Senior United States District Judge Rosanna M. Peterson sentenced Maddesyn George, age 27, an enrolled member of the Confederated Tribes of the Colville Reservation, to 78 months (six-and-a-half years) in federal custody for voluntary manslaughter and possession of methamphetamine with intent to distribute. Earlier this year, George admitted that she had killed Kristopher “Buddy” Graber in a dispute over money and drugs that George stole from Graber the night before. George also admitted in her Plea Agreement that she had not acted in self-defense. George is likely to be released back into the community in 2025, after which she will spend the rest of her life on federal Supervised Release.
Judge Peterson calculated George’s sentencing range under the United States Sentencing Guidelines at 108-135 months, in part because of George’s criminal history, which includes numerous convictions for drug offenses, burglary, assaults, and making a false statement. However, Judge Peterson disagreed with the United States’ position that George’s criminal history was understated, and exercised her discretion to impose only 78 months of custody despite the United States’ request for a sentence of 204 months.
According to court documents, George – who identified herself in a video recording and telephone records as “Martha Ruthless” – was inside a car on the morning of July 12, 2020. Graber approached the car to recover 47 grams of methamphetamine, a 9mm semi-automatic pistol, and more than $5,000 in cash, which George had stolen from him the night before when he was asleep. Eyewitnesses described Graber as “cool, calm, and collected” that morning. But rather than return Graber’s property or simply drive away, George fired Graber’s own gun at him, shattering the glass of the partially-open window of the locked car door. George’s shot struck Graber in the heart, killing him. Graber had no weapon in his possession when George killed him. In his left hand, he held only a cigarette. While Graber lay dying, George tried to pass the gun off to an eyewitness, and got upset when a neighbor tried to call 911. She then hid the stolen methamphetamine in a nearby field, and hid almost $3,000 in her undergarment. George admitted in her Plea Agreement that she was going to distribute a portion of the methamphetamine to others – as she had done the previous night at the Coulee House Motel. Court documents also revealed that George had a history of distributing drugs on the Confederated Tribes of the Colville Reservation.
Court records showed that George provided law enforcement with numerous accounts of what happened, frequently contradicting her own story. George initially tried to claim self-defense, alleging that Graber had sexually assaulted her the night before. When she was arrested, she said “I had no choice.” In her Plea Agreement, however, George admitted that the shooting was not legally justified because she exerted more force than was lawful under the circumstances. Indeed, the facts undermining George’s self-defense claim are undisputed: a significant amount of time had passed since the alleged assault, Graber did not have a weapon, George was not under any immediate threat, and Graber was on the other side of a locked car door when George shot him.
“This case is devastating—one human being is dead and another is going to prison,” said Vanessa R. Waldref, United States Attorney for the Eastern District of Washington. “But the United States prioritizes the investigation and prosecution of violent crime, whenever it happens, and whoever commits it. The safety of our communities is paramount, including on the Colville Reservation where families have experienced a tragic increase in violent crime. Our mission is to follow the facts wherever they lead. In this case, the facts that Ms. George admitted lead to one inescapable conclusion: she chose to shoot and kill an unarmed man through a locked car door so she could keep the methamphetamine and money she had stolen from him. Whatever else can be said about this tragedy, neither violence nor vigilantism are the answers. I commend the federal and tribal officers who conducted the investigation, the emergency medical personnel who responded to the shooting, and Assistant United States Attorneys Alison Gregoire and Rich Barker, who prosecuted this complicated and wrenching case with fairness, compassion, and justice.”
United States Attorney Waldref also addressed some of the attention this matter has received: “In this case, it is a fact that the Defendant was an Indigenous woman who killed an unarmed person because she did not want to return the drugs and money she had stolen from him. It is also a fact that many violent crimes against Indigenous women have historically gone unsolved and unprosecuted. Both injustices must be addressed, in an evenhanded way by people who have command of, respect for, and a responsibility to, all the facts. The United States Attorney’s Office will continue to aggressively pursue those who commit crimes of violence on Native American Reservations in the Eastern District of Washington.”
The United States Attorney made it clear that under her leadership, crimes of violence will continue to be prosecuted vigorously, based on the specific facts of individual cases: “We will continue to follow the facts wherever they lead, no matter who the Defendant may be. We will continue to seek fair resolutions for all victims of violent crime, no matter how long it takes. We will continue to make Eastern Washington communities safer and stronger through prosecutions driven by facts and evidence, no matter what the reactions may be on social media or commentary. And we will continue to pursue justice in all cases as we have today for Mr. Graber and his family.”
The Federal Bureau of Investigation and Colville Tribal Police investigated this case, which was prosecuted by Assistant United States Attorneys Alison Gregoire and Richard Barker.
Citrus County Woman Pleads Guilty to Producing Sexually Explicit Photos of A Child and Distributing Them over the InternetRead the Press Release
Ocala, Florida – Ashley Renea Hilligoss (37, Citrus Springs) has pleaded guilty to producing photos depicting a minor child being sexually abused. She faces a maximum penalty of 30 years in federal prison and a potential life term of supervised release. A sentencing date has not yet been set.
Hilligoss had been indicted on June 22, 2021.
According to court documents, Hilligoss took sexually explicit photographs of a minor female and sent them to another individual using the internet. FBI agents later searched an encrypted online file storage account belonging to the receiving individual and recovered copies of these photos. When interviewed by law enforcement, Hilligoss admitted to taking and sending the photographs of the child.
This case was investigated by the Federal Bureau of Investigation, Ocala Resident Agency. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Church Employee Sentenced to 5 ½ Years for EmbezzlementRead the Press Release
A former church bookkeeper has been sentenced to five and a half years in federal prison for using church funds for personal enrichment, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Lisa Dawn Stabeno, 52, pleaded guilty in May to two counts of bank fraud. She was sentenced Thursday by U.S. District Judge James Wesley Hendrix, who lamented her “brazen thefts” and ordered her to pay $450,000 in restitution.
According to court documents, Ms. Stabeno embezzled more than $450,000 from Church on the Rock, a non-denominational religious institution serving more than 3,400 parishioners in Lubbock.
In plea papers, Ms. Stabeno admitted that she began embezzling from the church in November 2013, just four months after assuming accounting responsibilities.
She began by using two credit cards – one assigned to a church employee and one assigned to a pastor – to pay personal expenses, including a car loan she co-financed with her daughter, medical and dental expenses, clothing, salon services, and restaurant meals. She also used the credit cards to purchase supplies for a bakery she co-owned with her daughters.
Beginning in 2014, Ms. Stabeno began making payments to herself with church credit cards using Square, a digital point-of-sale payment system which processes payments from credit cards run through a port connected to a cell phone.
In 2015, Ms. Stabeno opened two credit cards, one in her own name and one in her daughter’s name, which she used for personal expenses. She then paid off hundreds of thousands of dollars in credit card debt on the cards using money from church bank accounts, including its general operating account, and its “Dream Center” ministry account.
She also used the personal credit cards to make “purchases” and payroll at her bakery, then paid off the cards with money from the church accounts, thus boosting the bakery’s sales and profits and raising her daughters’ salaries.
The church discovered Ms. Stabeno’s fraud in the summer of 2018 and terminated her employment.
The Federal Bureau of Investigation’s Dallas Field Office, Lubbock Resident Agency, conducted the investigation. Assistant U.S. Attorney Ann Howey prosecuted the case.
Chisago County Felon Sentenced to 175 Months in Prison for Illegal Possession of a Firearm, Methamphetamine TraffickingRead the Press Release
ST. PAUL, Minn. – A Chisago County man was sentenced today to 175 months in prison followed by five years of supervised release for unlawfully possessing a firearm as a felon and for possession with intent to distribute methamphetamine.
According to court documents, on July 12, 2020, Derrick Russell Hoff, 36, was involved in a road rage incident. Hoff, who was driving a pickup truck, ran another vehicle off the road, fired multiple shots at the two occupants, and rammed the vehicle on the side of the road before abandoning his pickup truck on a nearby residential driveway. Chisago County Sheriff’s deputies recovered from Hoff’s abandoned pickup truck spent shell casings and live ammunition, a loaded 9mm magazine, four plastic gallon-size bags containing over 167 grams of actual methamphetamine in crystal shard form, digital scales, baggies, and other drug-sale paraphernalia. Near the truck, buried by some trees, deputies later found a 9mm semiautomatic firearm, loaded with 11 rounds matching those found inside Hoff’s truck.
On June 17, 2021, Hoff pleaded guilty to one count of possessing a firearm as a felon and one count of possession with intent to distribute methamphetamine. Because he has prior felony convictions in Anoka, Chisago, and Isanti Counties, Hoff is prohibited from possessing firearms or ammunition at any time.
Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Susan Richard Nelson sentenced the defendant.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Chisago County Sheriff’s Office.
This case was prosecuted by Assistant U.S. Attorney Benjamin Bejar.
Charleston Man Sentenced to 10 Years in Prison for Distribution of MethamphetamineRead the Press Release
CHARLESTON, W.Va. – Vincent Williams, 40, of Charleston, was sentenced today to 10 years in federal prison for distribution of five grams or more of methamphetamine.
According to court documents, Williams sold approximately 13 grams of methamphetamine to a confidential informant in Hurricane on September 15, 2017 and again on September 18, 2017. On September 19, 2017, law enforcement executed a search warrant at Williams’ residence in Charleston and found approximately 2,266.3 grams of methamphetamine that Williams admitted he intended to distribute. Law enforcement officers also found a .40 caliber handgun and approximately 107.14 grams of heroin inside Williams’ residence.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT), the Drug Enforcement Administration (DEA) and the U.S. Marshals Service.
United States District Judge Irene C. Berger imposed the sentence.
Assistant United States Attorney Nick Miller prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:18-cr-00110.
###
Canton Man Sentenced to 46 Months in Prison for Drug TraffickingRead the Press Release
Jackson, Miss. – A Canton man was sentenced to 46 months in federal prison for drug trafficking, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.
Dwight Powell, 54, was charged following an extensive DEA investigation into drug traffickers in central Mississippi. The investigation resulted in the total seizure of approximately $585,000.00 in U.S. currency and 12 kilograms of cocaine.
Powell was ensnared as part of the investigation and pled guilty on July 30, 2021, to possession with intent to distribute 500 grams or more of cocaine.
Powell was prosecuted as part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The case was investigated by the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, the U.S. Marshals Service, the Hinds County Sheriff’s Office, the Jackson Police Department, the Mississippi Bureau of Narcotics and the Internal Revenue Service. The case was prosecuted by Assistant United States Attorney Keesha Middleton and former Assistant United States Attorney Chris Wansley.
Broken Arrow Man Convicted After Found with 4,000+ Images and Videos of Child PornographyRead the Press Release
TULSA, Okla. – A federal jury Wednesday found a Broken Arrow man guilty after his electronic devices were found to have more than 4,000 images and videos depicting the rape and molestation of children, announced Acting U.S. Attorney Clint Johnson.
Earl Hardy Morrow, 39, was convicted of distribution and receipt of child pornography and possession of child pornography.
“My office and our local, state, tribal, and federal law enforcement partners seek to protect children not only from their sexual abuser, but also from their revictimization through the repeated viewing of that abuse in child pornography,” said Acting U.S. Attorney Clint Johnson. “Individuals like Earl Morrow must be held accountable for their role in a vile industry that preys on children across the globe.”
On Feb. 20, 2020, Morrow distributed and received child pornography via electronic means. From Nov. 5, 2019, to Feb. 27, 2020, Morrow further possessed visual depictions involving prepubescent minors and minors who were under 12 years of age.
On Feb. 20, 2020, multiple files of child sexual abuse material were sent to the Tulsa Police Department’s Cyber Crimes Unit via the BitTorrent network from an IP address that was later tracked to a Broken Arrow user. The final torrent file distributed to Tulsa Police contained multiple video files depicting the sexual abuse of children.
Officers served a search warrant on the address where Morrow resided on Feb. 27, 2020. During the search, Morrow told officers that he used BitTorrent on his computer and that he had illegal files on the computer.
During the forensic extraction and review of Morrow’s devices, the following items were found in Morrow’s bedroom and transported to the Tulsa Police Department for forensic extraction and review:
- 32GB Thumb drive connected to a keychain on Morrow’s car keys, found on the desk in his room--3140 pictures and 25 videos of child sexual abuse material found.
- Computer built by the defendant-- 546 pictures and 85 videos of child pornography, as well as the qBittorrent program.
- Laptop found on Morrow’s desk- 39 pictures and 79 videos of child pornography.
- 32 GB thumb drive found on Morrow’s desk-- 497 pictures and 54 videos of child pornography, includes 1 RTF document, titled “Daddy’s Collection,” where the author is Morrow, and the contents of the document lists child pornography search terms.
- 2 GB thumb drive found on Morrow’s desk-- 5 videos of child pornography.
The Tulsa Police Department led the investigation into Morrow with assistance from Homeland Security Investigations.
“The Tulsa Police Department’s Cyber Crimes Unit and Homeland Security Investigations consistently locate, investigate, and arrest child predators. These officers and agents are key partners when holding defendants accountable at trial,” said Johnson.
Visiting U.S. District Judge Daniel D. Crabtree from Kansas presided over the trial. Assistant U.S. Attorneys Christopher J. Nassar, Nathan E. Michel, and Stacey P. Todd are prosecuting the case.
This case was brought as part the Northern District of Oklahoma’s Operation Clean Sweep, which charged 33 child predators. Assistant U.S. Attorney Christopher J. Nassar led the operation in conjunction with more than a dozen local, state, tribal and federal law enforcement agencies. The case is also part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Breaux Bridge Woman Sentenced for Defrauding Her Employer Out of over $300,000Read the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Tracie Sonnier, 51, of Breaux Bridge, Louisiana, has been sentenced by United States District Judge Michael J. Juneau to 24 months in prison, followed by 3 years of supervised release, on wire fraud charges. Sonnier was also ordered to pay restitution in the amount of $335,015.67.
Sonnier pleaded guilty on July 19, 2021 to a Bill of Information charging her with one count of wire fraud. The charges stemmed from an investigation that began when her employer discovered money missing from their business account. Sonnier was employed by Aries Marine Corporation (Aries) from 1996 until her termination in May 2020. She worked as an administrative assistant and had bookkeeping duties at Aries. An investigation by agents with the U.S. Secret Service and the Lafayette Police Department revealed that Sonnier created a scheme to defraud Aries using Aries’ bank accounts, without authorization, to pay for personal expenses. The investigation revealed that her scheme resulted in a loss to the company of $335,015.67.
The U.S. Secret Service and the Lafayette Police Department investigated the case. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
# # #
Bakersfield Fentanyl Dealer Pleads GuiltyRead the Press Release
FRESNO, Calif. — Uriel Ivan Portillo, 35, of Bakersfield, pleaded guilty today to conspiring to possess with intent to distribute fentanyl, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Nov. 21, 2019, Portillo distributed 5,000 counterfeit oxycodone pills containing fentanyl in exchange for $40,000 during a controlled purchase in Bakersfield.
Portillo is scheduled for sentencing before U.S. District Judge Dale A. Drozd on Feb. 18, 2022. Portillo faces a maximum statutory penalty of 20 years in prison and a $1 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the Drug Enforcement Administration; the Southern Tri-County High Intensity Drug Trafficking Area Task Force; the Kern County Sheriff’s Department; and the Bakersfield Police Department. Assistant U.S. Attorneys Karen Escobar, Angela Scott, and Melanie Alsworth are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Au Gres Resident Sentenced to 28 Years in Federal Prison on Production of Child Pornography ChargesRead the Press Release
BAY CITY – An Au Gres resident was sentenced yesterday to 28 years in federal prison on charges of using a minor to produce visual depictions of sexually explicit conduct and ordered to pay $54,500 in restitution to the victims and $5,100 in special assessment, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division.
Sentenced was Christopher Paul Botimer, 59.
Botimer pleaded guilty in December 2020 to one count of using a minor to produce visual depictions of sexually explicit conduct before United States District Judge Thomas Ludington.
On or about October 6, 2017, while in Arenac County, Michigan, Botimer, a computer network engineer, took sexually explicit photographs of a 2-year-old child in his care. In making some of those photographs, Botimer engaged in sexual contact with the victim. He saved the resulting sexually explicit images on several electronic devices. For several years, well before he began to take sexually explicitly photographs of the victim, Botimer searched for child pornography over the Internet. He repeatedly downloaded sexually explicit images of minor children for his sexual gratification. He then either saved or deleted the child pornography from one of the many digital devices available to him at his home. He also made available some of the images to others through a peer-to-peer network.
“Botimer is a child predator and his conduct was reprehensible. Today’s lengthy sentence ensures Botimer will no longer be a threat to young children,” said Acting US Attorney Mohsin. “I commend the agents and prosecutors who worked on this case and hope that this 28-year sentence helps bring some closure to the victim and victim’s family.”
This case was investigated by agents of the Federal Bureau of Investigations Task Force and was prosecuted by Assistant United States Attorneys Anca Pop and Jaqueline Hotz.
###
Ash Grove Woman Indicted for Stealing $362,000 from Springfield EmployerRead the Press Release
SPRINGFIELD, Mo. – An Ash Grove, Missouri, woman has been indicted by a federal grand jury for a wire fraud scheme in which she embezzled more than $362,000 from her Springfield, Mo., employer.
Carrie Leigh Long, 52, was charged in a 24-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Wednesday, Nov. 17. That indictment was unsealed and made public today upon Long’s arrest and initial court appearance.
Long was employed by Executive Coach Builders, Inc. to provide in-house accounting services to the company and to Executive Bus Builders, Inc. The companies are headquartered in Springfield but do business worldwide with factories and sales offices in Missouri and California. The companies build luxury buses, coaches, and limousines. Long was hired in April 2014.
The federal indictment alleges that Long stole at least $362,175 from the companies from February 2016 to September 2020. Long is also charged with filing false tax returns that failed to report that income, as well as failing to pay approximately $902,226 of employment taxes the companies owed to the IRS.
Long allegedly used her position as an in-house accountant for the companies, and her access to the companies’ check stock, to regularly write checks against the companies’ bank accounts for unauthorized payments to herself. The indictment also alleges that Long stole money from the companies by filling in unauthorized amounts on some pre-signed checks and making such checks payable to herself. Long also allegedly stole money from the companies by forging signatures on the companies’ checks, filling in unauthorized amounts on the checks, and making such checks payable to herself.
As part of the scheme, the indictment says, Long did not claim the unauthorized payments as personal income on her individual income tax returns from 2016 through 2020.
Beginning in April 2019, Long allegedly ceased to make regular payments to IRS for the employment taxes the companies owed the IRS. Long concealed her actions from company officials, the indictment says, by altering the companies’ bank account statements and misrepresenting on her financial reports that the payments had been made. Long caused the companies to fail to pay over to the IRS approximately $902,226 of taxes owed to the IRS for two quarters of 2019 and one quarter of 2020.
When an agent from the Internal Revenue Service attempted to collect those delinquent tax payments, the indictment says, Long falsely claimed they had been paid and provided altered bank account statements.
The federal indictment charges Long with 17 counts of wire fraud, six counts of failure to pay employment taxes, one count of obstructing the administration of internal revenue laws, and five counts of filing a false tax return.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Shannon Kempf. It was investigated by IRS-Criminal Investigation and the FBI.
Albuquerque man appears in court on carjacking, weapons chargesRead the Press Release
ALBUQUERQUE, N.M. – Juan Aguirre, 30, of Albuquerque, appeared in federal court on Nov. 17 on charges of carjacking, attempted carjacking and being a felon in possession of a firearm. Aguirre will remain in custody pending a detention hearing scheduled for Nov. 19.
According to a criminal complaint, on the morning of Oct. 12, detectives with the Albuquerque Police Department (APD) Gang Unit along with APD Gang Suppression Officers allegedly found Aguirre in a stolen pickup truck. At the time, Aguirre allegedly was in possession of a handgun. Aguirre has previous felony convictions for conspiracy to commit robbery, auto burglary, and conspiracy to commit auto burglary. As a previously convicted felon, Aguirre cannot legally possess firearms or ammunition.
That afternoon while in police custody, Aguirre allegedly became ill and requested to be transported to a hospital by ambulance. Once at the hospital, Aguirre allegedly walked out of the emergency entrance and through the parking lot. He allegedly approached an occupied vehicle parked next to an elementary school, insinuated that he had a gun, and demanded that the driver get out of the vehicle and leave the keys inside. The vehicle owner drove away before Aguirre could enter the vehicle.
Aguirre then allegedly approached another vehicle at a nearby preschool. As the victim got out of the vehicle, Aguirre allegedly demanded the keys. When the victim refused, Aguirre allegedly ripped the keys from the victim’s hand and took the victim’s vehicle.
On Oct. 14, Gang Unit detectives located and arrested Aguirre.
A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Aguirre faces up to 15 years in prison.
The FBI Violent Crimes and Gangs Task Force and APD investigated this case. Assistant U.S. Attorney Timothy Trembley is prosecuting the case.
# # #
$614,823 Awarded to Law Enforcement Agencies in the Eastern District of OklahomaRead the Press Release
WASHINGTON – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the Eastern District of Oklahoma, the cities of Haileyville, Seminole, Stringtown, and Tishomingo, along with Hughes County, were awarded funding totaling $614,823.00.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“Protection and service of the public is the goal of law enforcement,” said Acting United States Attorney Christopher J. Wilson. “This funding will aid these police and sheriff departments in the Eastern District in achieve that goal.”
The following entities in the Eastern District of Oklahoma received the following award amounts:
- The City of Haileyville – $75,106
- Hughes County – $97,535
- The City of Seminole – $243,265
- The City of Stringtown – $88,206
- The City of Tishomingo – $110,711
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
17 November 2021
“Cocaine Pepe” gets significant sentence for selling narcoticsRead the Press Release
CORPUS CHRISTI, Texas – A 33-year-old Alice resident has been ordered to federal prison for possession with intent to distribute 112 grams of meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Jose Francisco Arredondo aka Cocaine Pepe pleaded guilty Aug. 19.
Today, U.S. District Judge Nelva Gonzales Ramos ordered him to serve a 151-month sentence to be immediately followed by five years of supervised release. At the hearing, the court heard additional evidence that detailed Arredondo’s life of crime and how he terrorized the Alice and Jim Wells County community – 28 arrests and was one of the main sources of meth, cocaine, steroids and more in Alice. In handing down the sentence, Judge Ramos noted Arredondo was consistently arrested multiple times with guns and drugs and that previous jail sentences did not seem to dissuade him from criminality.
On April 9, law enforcement arrived at a local hotel in response to a potential disturbance. They soon observed a vehicle with its lights on and engine running. Arredondo was driving. As they approached, they immediately noticed a firearm in the center console. Knowing he was a convicted felon, authorities conducted a thorough search of the vehicle.
They ultimately uncovered over $11,000 as well as four bags of narcotics, one with 112 grams of meth, two containing a total of 56 grams of cocaine and another with 13 grams of marijuana. Law enforcement also discovered a digital scale, many lottery tickets, and a defaced firearm.
Arredondo will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Jim Wells County Sheriff’s Office and the Alice Police Department conducted the investigation. Assistant U.S. Attorney Christopher Marin prosecuted the case.
Woman Pleads Guilty to Second Degree Murder on Indian ReservationRead the Press Release
BAY CITY - A 21-year-old resident of Blanchard, Michigan, Kaden Elizabeth Gilbert, pled guilty to murder in the second degree announced Acting U.S. Attorney Saima Mohsin.
The evidence established that in November of 2020, Gilbert went to the victim’s residence and intentionally stabbed her with a knife severing her femoral artery. The victim lost a significant amount of blood and died due to the stabbing. The crime occurred on the Isabella Reservation in Mt. Pleasant, Michigan. Gilbert is a non-Indian. The victim was Indian.
Sentencing is set for March 3, 2022 at 2 p.m. Gilbert faces up to life in prison.
The case was investigated by the Mount Pleasant Police Department and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Roy Kranz and Assistant United States Attorney J. Michael Buckley.
West Linn Man Sentenced to Federal Prison for Role in Real Estate, Agriculture, and Mining Investment SchemesRead the Press Release
PORTLAND, Ore.—A West Linn, Oregon man was sentenced to federal prison today for posing as a successful real estate developer, hemp seed cultivator, and owner of a precious metals mining venture to fraudulently obtain millions of dollars from individual investors and lenders.
David A Shelofsky, 53, was sentenced to 70 months in federal prison and three years’ supervised release.
“David Shelofsky tried every possible ploy to trick investors out of their money, and, unfortunately, was quite successful in doing so,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Federal law enforcement authorities will continue to pursue and prosecute bad actors who seek to steal from well-intentioned investors. Meanwhile, we strongly encourage people to think twice and do extensive research before pursuing unconventional investment opportunities like the ones peddled by this defendant.”
“David Shelofsky promised big returns on an eclectic array of investments, including real estate, precious metals, and hemp seed. In reality, his golden guarantees were nothing more than lies. Victim investors—most of whom have ties to Oregon—lost millions while their money funded Shelofsky’s lavish lifestyle,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
“IRS Criminal Investigation (IRS:CI) is committed to protecting the public from individuals like David Shelofsky who shamelessly steal and defraud,” said Special Agent in Charge Bret Kressin of IRS:CI. “Because financial crimes devastate communities, we will continue to investigate and bring to justice those who commit these crimes.”
According to court documents, beginning in 2013, in Oregon and elsewhere, Shelofsky knowingly and intentionally devised several different investment fraud schemes. Shelofsky falsely told prospective investors and lenders that he had successful real estate development projects in Bend, Oregon and West Linn and a successful hemp seed cultivation and distribution venture in West Linn. During the same time period, Shelofsky and two other individuals formed a precious metals mining operation that purportedly used a proprietary mining technique to extract precious metals from the sand tailings of other mining operations. While the group made minimal efforts to operate the venture, Shelofsky misled several investors about the status of the operation to fraudulently obtain funds.
Shelofsky made repeated and deliberate misrepresentations and false promises about the status and success of his various ventures, the purported returns investors would receive, and the existence of collateral pieces of real estate supposedly backing investments. Shelofsky employed the services of others to further his schemes and establish his credibility, including a lawyer to create legal documents and an assistant to open bank accounts in the names of several limited liability corporations. Shelofsky used investor funds for personal expenses and to support his own high standard of living. Dozens of individual investors and lenders lost millions of dollars as a result of Shelofsky’s schemes.
On June 5, 2020, Shelofsky was charged by criminal complaint with wire fraud and money laundering. Later, on October 20, 2020, a federal grand jury in Portland returned a 17-count indictment charging Shelofsky with wire fraud and money laundering. On August 26, 2021, he pleaded guilty.
A restitution hearing is scheduled for January 7, 2022 before U.S. District Court Judge Michael H. Simon.
Acting U.S. Attorney Asphaug, Special Agent in Charge Ramsey, and Special Agent in Charge Kressin made the announcement.
This case was investigated by the FBI and IRS Criminal Investigation. Assistant U.S. Attorney Claire M. Fay prosecuted the case. Assistant U.S. Attorney Katie DeVilliers served as forfeiture counsel.
Wareham Man Sentenced to 10 Years in Prison for Possession of Child PornographyRead the Press Release
BOSTON – A Wareham man was sentenced yesterday in federal court in Boston for possessing child pornography.
David St. Jacques, 57, was sentenced by U.S. District Court Judge Patti B. Saris to 10 years in prison and five years of supervised release. On April 15, 2021, St. Jacques pleaded guilty to one count of possession of child pornography.
In September 2020, a search of St. Jacques’s residence resulted in the seizure of a computer, three phones and one thumb drive that contained child pornography. St. Jacques destroyed at least two other drives and attempted to destroy one of his phones when agents arrived to execute the search warrant. St. Jacques also admitted to exchanging child pornography with other individuals on various chatting applications.
St. Jacques was convicted in March 2009 in Plymouth County Superior Court of several counts of dissemination and possession of child pornography.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Anne Paruti, Chief of Mendell’s Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Two Men Indicted on Drug Distribution Charges Following Investigation of Fentanyl SalesRead the Press Release
WASHINGTON – Two men, both from Washington, D.C., have been indicted on federal charges following an investigation by federal and local law enforcement agencies into a drug operation that was selling Fentanyl and heroin in the Ivy City area of Northeast Washington.
Nathaniel Scruggs, 37, and Andrew Cooper, 46, were arrested on Nov. 10, 2021, and remain detained following hearings this week in the U.S. District Court for the District of Columbia. Scruggs is charged with six counts of unlawful distribution of Fentanyl and heroin, and, in a separate indictment, Cooper is charged with five counts of Fentanyl distribution. Both men are to appear Nov. 22, 2021, for a status hearing before the Honorable Amit P. Mehta.
The indictments were announced today by U.S. Attorney Matthew M. Graves, Wayne A. Jacobs, Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, Jarod Forget, Special Agent in Charge of the Washington Division Office of the U.S. Drug Enforcement Administration (DEA), Robert J. Contee III, Chief of the Metropolitan Police Department (MPD), and Kevin Davis, Chief of the Fairfax County, Va. Police.
The arrests followed an investigation into drug sales that allegedly were taking place near the defendants’ two residences in the 1900 block of Capitol Avenue NE. According to court documents, the joint law enforcement investigation began last spring after the defendants were linked to drug sales and pending overdose investigations by the Fairfax County Police Department. As noted by the DEA, because of its potency and low cost, drug dealers nationally have been mixing Fentanyl with other drugs including heroin, methamphetamine, and cocaine, increasing the likelihood of a fatal interaction.
At the time of the arrests, law enforcement executed search warrants at the defendants’ residences. According to court documents, law enforcement seized more than 400 grams of suspected Fentanyl and other drugs from Cooper’s residence, along with counterfeit OxyContin pills that were actually Fentanyl, cocaine and other drugs, approximately $74,430 of bundled cash, three cell phones, and a firearm. From Scruggs’s residence, agents seized $1,200 in cash and four cell phones, according to the court filings.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This investigation is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
The case is being investigated by the FBI’s Washington Field Office, the Washington Division Office of the DEA, the Metropolitan Police Department, and the Fairfax County, Va. Police Department. It is being prosecuted by Assistant U.S. Attorney David T. Henek, of the Violent Crime and Narcotics Trafficking Section of the U.S. Attorney’s Office for the District of Columbia.
Three Indicted for Running “Grandparent Scheme” that Defrauded Elderly Victims in Western PARead the Press Release
PITTSBURGH, PA - Two residents of Las Vegas, NV and one resident of Reseda, CA, have been indicted by a federal grand jury in Pittsburgh, PA on a charge of conspiracy to commit wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Roderick Feurtado, 54, of Las Vegas, NV 89166, Tarek Bouanane, 45, Las Vegas, NV 89139, and Roberto Gutierrez, 49, of Reseda, CA 91335, as defendants.
According to Indictment, in September 2021, the defendants traveled to the Pittsburgh area to execute a scheme to defraud that targeted elderly victims. To execute the scheme, members of the conspiracy called the victims, posed as an attorney, and falsely represented that one of the victim’s relatives, typically a grandchild, had been incarcerated and needed money for bail and legal fees. With assistance from Feurtado and other members of the conspiracy, Bouanane and Gutierrez then posed as couriers or bail bondsman, visited the victims at their homes, and collected the fraudulently obtained money. At least $250,000 was obtained in the Western District of Pennsylvania and elsewhere as a result of the conspiracy.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The Department of Homeland Security Investigations and Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Texas Woman Pleads Guilty to Schemes to Procure Adoptions from Uganda and Poland through Bribery and FraudRead the Press Release
U.S. Attorney Bridget M. Brennan announced that a Texas woman who was a program manager at an Ohio-based international adoption agency pleaded guilty today to schemes to procure adoptions of Ugandan and Polish children by bribing Ugandan officials and defrauding U.S. authorities.
According to court documents, Debra Parris, 69, of Lake Dallas, engaged in a scheme with others to bribe Ugandan officials to procure adoptions of Ugandan children by families in the United States. These bribes included payments to (a) probation officers intended to ensure favorable probation reports recommending that a particular child be placed into an orphanage; (b) court registrars to influence the assignment of particular cases to “adoption-friendly” judges; and (c) High Court judges to issue favorable guardianship orders for the adoption agency’s clients. In her plea agreement, Parris also admitted that she continued to direct the adoption agency’s clients to work with her alleged co-conspirator Dorah Mirembe, after knowing that Mirembe caused clients of the adoption agency to provide false information to the U.S. State Department for the purpose of misleading it in its adjudication of visa applications.
According to court documents, in a second scheme, after alleged co-conspirator Margaret Cole, the adoption agency’s Executive Director, learned that clients of the adoption agency determined they could not care for one of the two Polish children they were set to adopt, Parris and her co-conspirator took steps to transfer the Polish child to Parris’s relatives, who were not eligible for intercountry adoption. In her plea agreement, Parris also admitted that after the child was injured and hospitalized, Parris agreed with her co-conspirator to conceal their improper conduct from the U.S. State Department in an attempt to continue profiting from these adoptions.
Parris pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and commit visa fraud in connection with the Uganda scheme, and conspiracy to defraud the United States in connection with the Poland scheme. She is scheduled to be sentenced on March 9, 2022. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Trial against Cole is scheduled to commence on Feb. 7, 2022. Mirembe remains at large.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Bridget M. Brennan for the Northern District of Ohio; and Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division made the announcement.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-fraud/victim-witness-program or call (888) 549-3945.
The FBI’s Cleveland Field Office is investigating the case.
Trial Attorneys Jason Manning and Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs assisted in the investigation.
The Fraud Section has lead responsibility for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Texas Woman Pleads Guilty to Schemes to Procure Adoptions from Uganda and Poland through Bribery and FraudRead the Press Release
A Texas woman who was a program manager at an Ohio-based international adoption agency pleaded guilty today in the Northern District of Ohio to schemes to procure adoptions of Ugandan and Polish children by bribing Ugandan officials and defrauding U.S. authorities.
According to court documents, Debra Parris, 69, of Lake Dallas, engaged in a scheme with others to bribe Ugandan officials to procure adoptions of Ugandan children by families in the United States. These bribes included payments to (a) probation officers intended to ensure favorable probation reports recommending that a particular child be placed into an orphanage; (b) court registrars to influence the assignment of particular cases to “adoption-friendly” judges; and (c) High Court judges to issue favorable guardianship orders for the adoption agency’s clients. In her plea agreement, Parris also admitted that she continued to direct the adoption agency’s clients to work with her alleged co-conspirator Dorah Mirembe, after knowing that Mirembe caused clients of the adoption agency to provide false information to the U.S. State Department for the purpose of misleading it in its adjudication of visa applications.
According to court documents, in a second scheme, after alleged co-conspirator Margaret Cole, the adoption agency’s Executive Director, learned that clients of the adoption agency determined they could not care for one of the two Polish children they were set to adopt, Parris and her co-conspirator took steps to transfer the Polish child to Parris’s relatives, who were not eligible for intercountry adoption. In her plea agreement, Parris also admitted that after the child was injured and hospitalized, Parris agreed with her co-conspirator to conceal their improper conduct from the U.S. State Department in an attempt to continue profiting from these adoptions.
Parris pleaded guilty to conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and commit visa fraud in connection with the Uganda scheme, and conspiracy to defraud the United States in connection with the Poland scheme. She is scheduled to be sentenced on March 9, 2022. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Trial against Cole is scheduled to commence on Feb. 7, 2022. Mirembe remains at large.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Bridget M. Brennan for the Northern District of Ohio; and Acting Assistant Director Jay Greenberg of the FBI’s Criminal Investigative Division made the announcement.
If you believe you are a victim of this offense, please visit https://www.justice.gov/criminal-fraud/victim-witness-program or call (888) 549-3945.
The FBI’s Cleveland Field Office is investigating the case.
Trial Attorneys Jason Manning and Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Chelsea Rice of the Northern District of Ohio are prosecuting the case. The Justice Department’s Office of International Affairs assisted in the investigation.
The Fraud Section has lead responsibility for investigating and prosecuting all FCPA matters. Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
An indictment is merely an allegation, and Cole and Mirembe are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tax Preparer Sentenced in COVID-19 Fraud SchemeRead the Press Release
A South Florida tax preparer was sentenced today to two years in prison for perpetrating a scheme to fraudulently obtain over 100 COVID-19 relief loans under the Paycheck Protection Program (PPP).
According to court documents, Leonel Rivero, 35, of Miami, owned a tax-preparation business and submitted approximately 118 fraudulent PPP loan applications on behalf of himself and his accomplices. Combined, the 118 loan applications sought more than $2.3 million in PPP funds. On each loan application, Rivero falsified the applicant’s prior-year sole proprietorship income and expenses and submitted fraudulent IRS tax forms. Rivero and his accomplices received approximately $900,000 in PPP loans as a result of the fraud. As part of his plea agreement, Rivero agreed to forfeit that entire amount.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Special Agent in Charge Matthew Line of the IRS-Criminal Investigation (IRS-CI) Miami Office; and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General (SBA-OIG) Investigations Division, Eastern Regional Office made the announcement.
The IRS-CI investigated the case with assistance from the SBA-OIG.
Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Browne of the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case. Assistant U.S. Attorney Nicole Grosnoff handled the asset-forfeiture component of the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 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.
Suburban Chicago Man Convicted on Federal Gun and Drug ChargesRead the Press Release
CHICAGO — A federal jury has convicted a suburban Chicago man on firearm and drug charges for illegally possessing two loaded handguns and dealing heroin and crack cocaine.
BRIAN STAFFORD, 42, illegally possessed the guns and drugs in his vehicle and residence in Bellwood, Ill., on Nov. 2, 2016. A day earlier, Stafford sold 101 grams of heroin to an individual who, unbeknownst to Stafford, was cooperating with law enforcement.
After a week-long trial in U.S. District Court in Chicago, the jury on Friday found Stafford guilty of one count of possessing heroin and crack cocaine with the intent to distribute, one count of illegal possession of firearms by a previously convicted felon, and one count of possessing firearms in furtherance of drug-trafficking activities.
A separate jury in 2019 convicted Stafford of illegally possessing three assault rifles. All of the handguns and rifles illegally possessed by Stafford were linked to thefts from a cargo train that passed through Chicago in September 2016.
The convictions are punishable by a mandatory minimum sentence of ten years in federal prison, and a maximum of life. U.S. District Judge Robert W. Gettleman did not immediately set a sentencing date.
The convictions were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Substantial assistance was provided by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives; Cook County Sheriff’s Office; Evergreen Park, Ill., Police Department; and Bolingbrook, Ill., Police Department. The government is represented by Assistant U.S. Attorneys Saurish Appleby-Bhattacharjee and Alejandro Ortega.
Stoughton Man Pleads Guilty to Bank Fraud Scheme Related to COVID-19 PandemicRead the Press Release
BOSTON – A Stoughton man pleaded guilty yesterday in connection with a fraudulent scheme to obtain COVID-19-related small business loans from several financial institutions.
Yves Montima, 53, pleaded guilty to one count of conspiracy to commit bank fraud. U.S. District Court Judge Denise J. Casper scheduled sentencing for March 9, 2022. Montima was charged on Nov. 4, 2021.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary loan program directed at small businesses called the Paycheck Protection Program (PPP). Independent contractors were eligible to apply for PPP loans, which were processed by private financial institutions and fully guaranteed by the U.S. Small Business Administration. If an independent contractor used the loan funds for approved purposes, such as payroll, the loan could be forgiven by the financial institution and paid for by the U.S. Small Business Administration.
Montima participated in a scheme that obtained over $220,000 in proceeds through fraudulent PPP loan applications submitted between April 2020 and April 2021. According to the charging documents, Montima and a co-conspirator submitted 12 fraudulent PPP loan applications, both in their own names and in the names of others, at several financial institutions. It is also alleged that Montima and his co-conspirator received kickback payments from individuals on whose behalf they submitted fraudulent PPP loan applications.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, and forfeiture. 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 and Frederick J. Regan, Special Agent in Charge of the U.S. Secret Service, Boston Field Office made the announcement. Valuable assistance in the investigation was provided by the U.S. Postal Service, Massachusetts State Police and the Boston Police Department. Assistant U.S. Attorney Christopher J. Markham, of Mendell’s Securities, Financial & Cyber Fraud Unit, and Assistant U.S. Attorney Philip C. Cheng, of Mendell’s Narcotics & Money Laundering Unit, are prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
St. Petersburg Man Sentenced to Fifteen Years for Attempting to Entice and Meet A 5-Year-Old Child for SexRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Eric James Templeton (33, St. Petersburg) to 15 years in federal prison for attempting to entice and meet a 5-year-old child for sex. Templeton was also ordered to serve a 15-year term of supervised release, to register as a sex offender, and to pay $11,700 in restitution.
Templeton had pleaded guilty on March 9, 2021.
According to court documents, from May 19 through May 21, 2020, Templeton engaged in online chats and text messaging with an individual whom he believed to be the mother of a 5-year-old child. During those conversations, Templeton indicated to the “mother” (actually an undercover Homeland Security Investigations agent) his desire to meet and sexually abuse the child. On May 21, 2020, Templeton agreed to meet the “mother” and her child for that purpose. Templeton arrived at the meeting location in Tampa and was arrested by HSI agents. A search of Templeton’s person revealed that he was carrying a bottle of lubricant and two lollipops.
“Thanks to the partnership between HSI special agents and the Pasco Sheriff’s Office, this child predator will now be behind bars,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
This case was investigated by Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Erin Claire Favorit.
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.justice.gov/psc.
South Florida Tax Preparer Sentenced in COVID-19 Fraud SchemeRead the Press Release
Miami, Florida – A South Florida tax preparer was sentenced today to 24 months in prison, followed by three years of supervised release, for carrying out a scheme to fraudulently obtain over 100 COVID-19 relief loans under the Paycheck Protection Program (PPP). He was also ordered to pay over $1 million in restitution.
Leonel Rivero, 35, of Miami, owned a tax-preparation business and submitted approximately 118 fraudulent PPP loan applications on behalf of himself and his accomplices. Combined, the 118 loan applications sought more than $2.3 million in PPP funds. On each loan application, Rivero falsified the applicant’s prior-year sole proprietorship income and expenses and submitted fraudulent IRS tax forms. Rivero and his accomplices received approximately $900,000 in PPP loans as a result of the fraud. As part of his plea agreement, Rivero agreed to forfeit that entire amount.
U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Matthew Line of the IRS-Criminal Investigation (IRS-CI) Miami Office; and Special Agent in Charge Amelake McCall-Brathwaite of the U.S. Small Business Administration, Office of the Inspector General (SBA-OIG), Investigations Division, Eastern Regional Office, made the announcement.
The IRS-CI investigated the case with assistance from SBA-OIG.
South Florida Assistant U.S. Attorney Christopher Browne and Trial Attorney Della Sentilles of the Criminal Division’s Fraud Section prosecuted the case. South Florida Assistant U.S. Attorney Nicole Grosnoff handled asset-forfeiture.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-20160.
###
Somerset County Man Charged with Distribution of Child PornographyRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man was charged today with allegedly distributing videos and images of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced.
Marcevan Manasse, 27, Somerville, New Jersey, is charged by complaint with one count of distribution of child pornography. He appeared by videoconference today before U.S. Magistrate Judge André M. Espinosa and was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From Sept. 20, 2020, through Nov. 22, 2020, Manasse distributed material containing images and video files of child sexual abuse, via a publicly available online peer-to-peer (P2P) file-sharing network of linked computers. Users must download the P2P program, which is widely available for free on the internet. The program allows the user to place files into a designated “shared” folder on a hard drive, from which other P2P program users can then download those files directly to the “shared” folders of their own computers. Users can then browse, search, select, and directly download, those files. The program typically keeps a log of each downloaded event.
Law enforcement officials conducted an undercover online session to access the P2P program and to download five video files and 11 images containing child sexual abuse from an IP address assigned to an internet service provider account associated with Manasse’s residence. These files included multiple visual depictions of pre-pubescent children being sexually abused by adults.
The count of distribution of child pornography carries a mandatory minimum penalty of five years in prison, a maximum penalty of 20 years in prison, and a fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, New Jersey Division, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s charges. She also thanked the Somerset County Prosecutor’s Office for its assistance with the investigation.
The government is represented by Assistant U.S. Attorney Dong Joo Lee of the Violent Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.