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Monday 4 October 2021
Robber Who Donned Medical Masks During String of Heists that Targeted Pharmacies Sentenced to over Nine Years in Federal PrisonRead the Press Release
RIVERSIDE, California – A Riverside County man with a three-decade history of crimes was sentenced this afternoon to 110 months in federal prison for a month-long robbery spree of pharmacies in the Inland Empire while wearing medical masks.
David Anthony Battle, 50, of Moreno Valley, was sentenced by United States District Judge Jesus G. Bernal after pleading guilty on March 25 to six felony counts of interference with commerce by robbery (Hobbs Act robbery).
“In this case, [Battle] exploited a public health crisis by robbing essential businesses while concealing his face behind a medical mask,” prosecutors wrote in a sentencing memorandum filed with the court.
According to court documents, from July 6 through August 10, 2020, Battle robbed six pharmacies – Walgreens, CVS, and Rite Aid outlets – in Moreno Valley, Colton and San Bernardino. He also attempted to rob two other Moreno Valley pharmacies.
During each incident, Battle wore similar clothing – including medical masks covering his nose and mouth – and brandished what appeared to be a handgun, Battle admitted in court. He then demanded that money from the cash register be placed in a bag and handed over.
When he was arrested during an attempted robbery of a Moreno Valley Walgreens, Battle was carrying a black BB gun with labeled with “Glock” logos on the barrel and the grip, court documents state.
Battle netted $5,453 in illicit gains from the robberies, more than half of which came from a July 6 robbery of a Walgreens store in Moreno Valley.
Since 1989, Battle has sustained 46 felony convictions and has been sentenced to a total of 66 years of incarceration, “and his history shows that he has been incapable of rehabilitation,” according to the sentencing memo. Prosecutors noted that Battle previously has been found guilty of violent crimes, including a 1994 conviction for false imprisonment by violence while impersonating an officer – one of seven convictions where his conduct involved impersonating a police officer or fire official.
“Although he gained thousands of dollars through his robberies, the traumatic impact of [Battle]’s crimes is much more consequential than his selfish monetary gains,” according to the sentencing memo. “Indeed, though it is impossible to quantify the true psychological and mental harms caused by [his] crimes – the medical expenses for just two of the victims has already reached $29,000. That amount reflects a fraction of the harm the victims have suffered.”
The FBI, the Riverside County Sheriff’s Department, the San Bernardino Police Department, and the Colton Police Department investigated this matter.
Assistant United States Attorney Peter H. Dahlquist of the Riverside Branch Office prosecuted this case.
Port Angeles, Washington, man sentenced to home confinement, probation for assaulting helicopter crew with high-powered laserRead the Press Release
Tacoma – A 36-year-old Port Angeles, Washington, man pleaded guilty and was sentenced this morning to probation and home confinement in connection with a September 26, 2016, laser pointer strike on a U.S. Coast Guard helicopter, announced Acting U.S. Attorney Tessa M. Gorman. Randall Muck pleaded guilty to misdemeanor assault on a federal officer. U.S. District Judge Benjamin H. Settle told Muck, “What you did was extremely reckless, even if you didn’t intend to strike the helicopter.” Judge Settle ordered Muck to be on 90 days home confinement with electronic monitoring as part of his one-year period of probation.
Muck was indicted in May 2019, charged with aiming a laser pointer at an aircraft and making false statements to government agents. In pleading guilty to assault on a federal agent, Muck admitted that on the evening of September 26, 2016, he pointed a high-powered laser beam at a Coast Guard helicopter. According to reports of the incident, the MH-65 Dolphin helicopter was descending when it was hit by a laser that originated near Fourth and Hill Streets in Port Angeles. Laser light can cause temporary loss of vision and force an air crew to abort its mission. In this incident, no one suffered permanent damage, but the crew had to return to base and be assessed medically before returning to duty. In the sentencing memo, prosecutors noted that because the helicopter crew was grounded for a time, the region was without a local emergency response helicopter crew.
Sentencing documents reveal Muck was identified as a suspect, when coworkers reported he had been bragging about the incident at work. Later when Muck learned of the criminal investigation, he made statements that co-workers should not report his involvement to law enforcement, or he would retaliate. Muck is no longer employed by that company.
The case was investigated by U.S. Coast Guard Investigative Service and the FBI. The case was prosecuted by Assistant United States Attorneys Grady Leupold and Erika Evans.
Point Pleasant Man Sentenced to 10 Years in Prison for Child Sex Trafficking OffenseRead the Press Release
CHARLESTON, W.Va. – A Point Pleasant man was sentenced today to 10 years in prison for attempted sex trafficking of a minor. Dale Randall McCarthy, Jr., 51, pleaded guilty to the offense in May 2021.
According to the plea agreement and statements made in court, McCarthy admitted that on August 8, 2020, he agreed with a man he met online to pay $100 to have sex with a 14-year-old girl that would be supplied by the other man. McCarthy met with the man at a motel in Dunbar and paid the man $40 up front for sex with the girl, with the remainder to be paid after the sexual activity. After paying the man $40, McCarthy was placed under arrest. McCarthy further admitted that he had previously used Craigslist to communicate with minors about meeting for sexual activity. In one such conversation, McCarthy admitted to requesting and receiving a sexually explicit image of a person who stated they were a minor.
Upon release from prison, McCarthy will be placed on federal supervised release for a period of 10 years and will be required to register as a sex offender.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the FBI Child Exploitation and Human Trafficking Task Force.
Senior United States District Judge John T. Copenhaver, Jr., imposed the sentence. Assistant United States Attorney Jennifer Rada Herrald handled the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00160.
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Pierre Man Sentenced for Conspiracy to Distribute MethRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pierre, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on October 4, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Daniel James Boe, age 36, was sentenced to 37 months in federal prison, followed by 3 years of supervised release, $1,000 fine, and a $100 special assessment to the Federal Crime Victims Fund.
Boe was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on December 8. 2020. He pled guilty on July 15, 2021.
Beginning in January of 2017, Boe was involved in a conspiracy to distribute methamphetamine in and around the Pierre area and central South Dakota. Boe was involved with the distribution of 200-350 grams of methamphetamine.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan Dilges prosecuted the case.
Boe was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia man sentenced for heroin and fentanyl distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Richard Gaines, of Philadelphia, Pennsylvania, was sentenced today to 151 months of incarceration for opioid distribution, Acting U.S. Attorney Randolph J. Bernard announced.
Gaines, age 46, pled guilty in July 2020 to one count of “Possession with Intent to Distribute Heroin and Fentanyl.” Gaines admitted to having heroin and fentanyl in June 2017 in Berkeley County. The night of his arrest, Gaines fled from police during a traffic stop in Martinsburg at a high rate of speed, hitting a tree. During the hearing today, it was mentioned that Gaines, who is not a drug user, was in Martinsburg for the sole reason of selling drugs. He is labeled as a career offender, with a previous violent crime conviction and another felony drug conviction.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative, the West Virginia State Police, and the Martinsburg Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
New York Woman Admits Entering Sham Marriage in Immigration Fraud CaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that on October 1, 2021, AUDREY BONET JOHNSON, 34, of Brooklyn, New York, pleaded guilty in New Haven federal court to conspiracy to commit immigration marriage fraud.
According to court documents and statements made in court, on March 1, 2012, Johnson, a U.S. citizen, and Shanon St. Aubyn Stephenson, a citizen of Jamaica, entered into a fraudulent marriage. Shortly thereafter, Johnson and Stephenson applied to the U.S. Citizenship and Immigration Service (“USCIS) for Stephenson to become a lawful permanent resident of the U.S., often called a “green card.” Following an interview with the USCIS in 2012, Stephenson was issued a temporary, two-year green card. In subsequent submissions and statements to the USCIS, Johnson and Stephenson claimed to be married and living together in Brooklyn, New York. In fact, Stephenson married Jodian Stephenson, also known as Jodian Gordon, in 2010, and lived with her, and not Johnson, in Bridgeport, Connecticut.
Johnson is scheduled to be sentenced by U.S. District Judge Michael P. Shea in Hartford on January 4, 2022, at which time she faces a maximum term of imprisonment of five years.
This investigation revealed that Jodian Stephenson, a citizen of Jamaica, operated Stephenson Immigration and Legal Services, LLC, in Bridgeport. Between 2011 and 2017, she conspired with others to arrange 28 sham marriages between U.S. citizens and non-citizens residing in the U.S. for the purpose of the non-citizens’ applying for and obtaining green cards. One of the sham marriages was between Johnson and Shanon Stephenson, and another was between Jodian Stephenson and a U.S. citizen. Jodian Stephenson typically found and introduced a U.S. citizen to be the non-citizen’s purported spouse and helped the couple obtain a marriage license. She also organized the marriage ceremony and celebration, coached the couple on how to make their marriage appear to be genuine despite their neither living together nor otherwise intending to remain actually married, and prepared and helped submit several immigration documents needed as part of the non-citizen’s green card application. Jodian Stephenson typically charged between $17,000 and $20,000 to complete this process for a non-citizen, and the citizen spouse received between $2,000 and $4,000 for his or her participation.
Jodian Stephenson and Shanon Stephenson each previously pleaded guilty to conspiracy to commit immigration marriage fraud. On August 26, 2021, Jodian Stephenson was sentenced to six months of imprisonment. Shanon Stephenson awaits sentencing.
A total of 10 individuals were charged as a result of this investigation, and all pleaded guilty. Removal proceedings have been or are being commenced against all individuals whose green card applications were found to have been based on sham marriages.
This investigation has been conducted by Homeland Security Investigations (HSI) and the U.S. Citizenship and Immigration Service’s Office of Fraud Detection and National Security. The case is being prosecuted by Assistant U.S. Attorney Henry K. Kopel.
Missouri Woman Indicted for Tampering with Hospitals’ FentanylRead the Press Release
KANSAS CITY, KAN. – A federal grand jury in Kansas City, Kansas, returned an indictment charging a nurse from Kansas City, Missouri, with two counts of tampering with a consumer product and two counts of possession of fentanyl by deception and subterfuge.
According to court documents, between January 2020 and April 2020 Faith Naccarato, 41, allegedly used her fingerprint to remove vials of fentanyl from an automated dispensing cabinet at Menorah Medical Center in Overland Park. She is accused of replacing the fentanyl with an alternant liquid substance before placing the vials back in the cabinet.
Between February 2020 and April 2020, Naccarato allegedly took vials of fentanyl from an automated dispensing cabinet at AdventHealth Shawnee Mission in Meriam. She is accused of replacing the fentanyl with an alternate liquid substance and then placing the vials back in the cabinet.
The Drug Enforcement Administration is investigating the case.
Assistant U.S. Attorneys Faiza Alhambra and Trent Krug are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Louisville Man Indicted for Illegally Possessing FirearmRead the Press Release
Louisville, Kentucky – A federal grand jury in Louisville returned an indictment on September 22, 2021, charging Antonio D. Williamson, 34, with being a felon in possession of firearm.
According to the indictment and criminal complaint, on May 22, 2021, the Louisville Metro Police Department (LMPD) arrested Williamson after it was reported that a man pointed a firearm at another person at the drive through of a restaurant on Eastern Parkway in Louisville. Williamson was arrested by LMPD for Receiving stolen property over $10,000, obscuring the identity of a machine over $10,000, and no operator’s license. He provided the name “Naz Bey.” LMPD officers observed a firearm, later identified as a CZ-USA Scorpion Evo 3 Sl, near the center console of the vehicle within reach of the driver. Law enforcement officers later determined that “Naz Bey” was Antonio D. Williamson, a convicted felon.
The grand jury indicted Williamson for being a felon in possession of a firearm in violation of Title 18, United States Code, Section 922(g). On September 21, 2021, the defendant appeared before U.S. Magistrate Judge Colin H. Lindsay of the U.S. District Court for a detention hearing. Judge Lindsay detained Williamson detained pending trial, which is scheduled for November 29, 2021, before U.S. District Judge Rebecca Grady Jennings.
If convicted, Williamson faces up to 10 years in prison, a $250,000 fine, and up to 3 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 Michael A. Bennett made the announcement.
Assistant U.S. Attorney Joshua Judd is prosecuting the case. The FBI and LMPD investigated the case with assistance from the ATF.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Logan County Man Sentenced to 10 Years in Prison for Federal Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Logan County man was sentenced today to 10 years in prison for possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of firearms.
According to court documents and statements made in court, Clifford Lee Griffin, 38, of Bruno, was arrested on the evening of September 30, 2019, at a residence in the Gilman Bottom area of Logan County where he had been selling drugs. Griffin was arrested by members of the West Virginia State Police who were executing a search warrant due to drug activity at the location. Troopers recovered two loaded handguns, over 75 grams of methamphetamine and over 100 grams of heroin. Griffin admitted that he possessed the guns to protect his drugs and money.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the West Virginia State Police and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Nowles Heinrich handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00163.
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Leader of Cellphone Account Takeover Fraud Scheme Pleads GuiltyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that defendant HENRY PEREZ pled guilty today to leading a multi-year cellphone account takeover fraud conspiracy. PEREZ impersonated legitimate cellphone accountholders in order to fraudulently obtain smartphones and electronic devices that he charged to compromised accounts. The fraud scheme also caused more than 300 victims across the United States to lose cellphone service for a period of time. PEREZ pled guilty before U.S. District Judge Richard M. Berman, to whom the case is assigned.
Manhattan U.S. Attorney Audrey Strauss said: “As he admitted today, Henry Perez led a sophisticated fraud scheme that impersonated victims, changed victims’ account information so victims would not receive fraud alerts, charged purchases to victims’ accounts, and deprived victims of cellphone service. Thanks to the dedicated work of our partners at Homeland Security, Perez stands convicted of this cellphone fraud scheme and now awaits sentencing for his crime.”
According to the allegations in the Indictment, public court filings, and statements made in court:
From June 2017 through December 2019, PEREZ was the leader of a criminal fraud ring that committed cellphone account takeover fraud and identity theft across the United States, including in the Southern District of New York. The scheme’s primary objective was to obtain new, valuable electronic devices, including iPhones, and charge these purchases to victims’ accounts, without the knowledge or consent of the victim accountholders. Over the course of the conspiracy, participants in the scheme attempted to fraudulently obtain more than $1 million worth of devices and, in fact, fraudulently obtained more than $530,000 worth of devices (e.g., iPhones, iPads, and AirPods), by charging purchases to victims’ accounts.
To conduct the scheme, members of the conspiracy, including PEREZ, used stolen identity information to impersonate victims who had cellphone accounts with a particular cellphone service provider (“Provider-1”). Members of the conspiracy then called customer service representatives of Provider-1 and used social engineering techniques to take over accounts by making various misrepresentations, including impersonating accountholders and expressing a purported need to regain access to their accounts. Through these misrepresentations, conspirators were able to gain unauthorized access to, and control of, accounts belonging to victim accountholders. Once they gained access, members of the conspiracy made various unauthorized changes to victim accounts, so that fraud alerts and emails relating to account changes were sent to a conspiracy member, rather than to the legitimate accountholders. Participants in the conspiracy then purchased new electronic devices, which they charged to victim accounts, without the knowledge or consent of the victims.
In many instances, conspirators arranged for the fraudulently ordered devices to be shipped to addresses under their control. In other instances, members of the scheme, including PEREZ, personally entered stores operated by Provider-1 to pick up fraudulently obtained devices. In total, participants in the conspiracy conducted in-store pickups of fraudulently obtained devices in at least 10 different states.
Once they had successfully exploited a particular victim’s account, members of the conspiracy typically relinquished control of that account, and moved on to exploiting other victim accounts. During the period in which the conspiracy compromised, and retained control of, a particular victim’s cellphone account, that victim typically lost cellphone service. In total, the scheme caused more than 300 victims across the United States to lose cellphone service for a period of time.
PEREZ was integrally involved in all aspects of the scheme, including using victims’ personal identifying information to dupe Provider-1; gaining unauthorized access to victim accounts; making unauthorized changes to victim accounts; receiving fraudulently obtained devices; and recruiting, directing, and paying a subordinate, including supplying that subordinate with victim information.
PEREZ, 33, of Fort Lee, New Jersey, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
PEREZ is scheduled to be sentenced by Judge Berman on January 18, 2022, at 10:00 a.m. Under the terms of his plea agreement, PEREZ also agreed to pay restitution of $539,654.96 and forfeiture of $532,374.96.
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Ms. Strauss praised the New York Office of Homeland Security Investigations (“HSI”) and its El Dorado Task Force for its outstanding work on this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Lakeland Man Sentenced to Federal Prison for Theft of Public Money and Aggravated Identity TheftRead the Press Release
Tampa, Florida – U.S. District Judge William F. Jung has sentenced Julio Gonzales (45, Lakeland) to 2 years and 10 months in federal prison for theft of public money and aggravated identity theft. As part of his sentence, the court also ordered Gonzalez to pay $110,102.90 in restitution and, separately, entered a forfeiture money judgment against him in the amount of $28,527, the proceeds of the offense of conviction.
Gonzalez had pleaded guilty on June 22, 2021.
According to court documents, from February 2014 through February 2018, Gonzales stole Social Security benefit payments made by the Social Security Administration on behalf of four individuals. In total, Gonzalez knowingly and willfully stole approximately $110,102 in benefits to which he was not entitled. In addition, Gonzales used the identity of an unsuspecting U.S. citizen to commit Social Security fraud.
This case was investigated by the Social Security Administration, Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Knoxville YWCA Receives $475,000 in Federal Funding for Housing AssistanceRead the Press Release
KNOXVILLE, Tenn. – The Young Woman’s Christian Association of Knoxville and the Tennessee Valley (YWCA) will receive $475,000 from the Department of Justice’s Office on Violence Against Women (OVW) to support YWCA’s affordable transitional housing program, announced Acting United States Attorney Francis M. Hamilton III.
YWCA's Safer and Stronger Transitional Housing Program offers transitional housing to victims of domestic violence and their families. This transitional housing program offers financial education, parenting education, and trauma-informed care, including support groups and classes specifically for victims of domestic violence.
This award is one of many that OVW is distributing in 2021 to support projects that meaningfully address the needs of underserved and marginalized survivors, improve access to justice, enhance survivor safety, hold offenders accountable, and build a coordinated community response to violence against women.
The Office on Violence Against Women provides federal leadership in developing the national capacity to reduce violence against women and administer justice for and strengthen services to victims of domestic violence, dating violence, sexual assault, and stalking.
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Kansas Woman Sentenced for Sex Trafficking a 16-Year-Old VictimRead the Press Release
A Kansas woman was sentenced Monday in federal court for partnering with two others in a sex trafficking ring that prostituted a 16-year-old in Tulsa, announced Acting U.S. Attorney Clint Johnson.
Chief U.S. District Judge John F. Heil III sentenced Rontaysha Leann Cox, 28, of Wichita, Kansas, to 15 years in federal prison followed by a lifetime of supervised release.
On March 19, 2021, Cox pleaded guilty to sex trafficking of children. Cox admitted that she and two others named in the indictment engaged in the commercial sex trade and recruited, enticed, harbored, transported, and maintained a 16-year-old victim and provided the minor for sex in return for profit. In her written statement, Cox said that she assisted and instructed the victim with taking sexually explicit photographs of herself and assisted the victim with posting advertisements on websites that promoted prostitution and arranged commercial sex acts.
“Targeting and exploiting minors for the commercial sex trade is shameful, inexcusable, and criminal” said Acting U.S. Attorney Clint Johnson. “Every child deserves the full protection of the law. The U.S. Attorney’s Office and our law enforcement partners will hold accountable anyone who engages in the sex trafficking of children, whether as a trafficker or a customer.”
Previously, codefendant Dominque Laron Morgan, 26, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and coercion an enticement of a minor to engage in sexual activity and was later sentenced to 25 years in prison followed by 25 years of supervised release.
Also, codefendant Treveon Marquise Cato, 23, of Tulsa, pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime and was later sentenced to five years in prison followed by five years of supervised release.
On April 17, 2020, officers with the Tulsa Police Department’s Human Trafficking Vice Unit discovered advertisements for the teenager on a website promoting prostitution and soliciting sex acts in exchange for money. An officer, acting as a john, contacted the victim using the phone number listed and arranged to meet her on April 20. During the appointment, the officer revealed his identity, and the minor victim was taken into protective custody.
Officers learned that Rontaysha Cox had rented the room, and that Cox and two other men left the hotel room in a silver sedan shortly before the scheduled appointment. Cox, Cato, and Morgan were later stopped and ordered out of the sedan. A semi-automatic pistol could be seen from outside of the vehicle wedged between the driver’s seat and center console. Officers subsequently arrested the three, and during a search of the vehicle and the occupants, officers recovered marijuana, phones and the firearm.
An analysis of the phones found conversations between Cox, Morgan and the victim discussing prostitution as well as photos of the victim that constituted child pornography. Also found, were conversations between Morgan and the victim where she told him she was 16-years-old.
The Tulsa Police Department, Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Edward Snow and Christopher J. Nassar are prosecuting the case.
Kansas Man Sentenced to Three Years in Prison for Engaging in $900,000 Foreign Currency Ponzi SchemeRead the Press Release
NEWARK, N.J. – A Kansas man who executed an elaborate foreign currency Ponzi scheme that took in more than $900,000 from investors was sentenced today to 36 months in prison, Acting U.S. Attorney Rachael Honig announced.
Thomas Lanzana, 54, of Wichita, Kansas, previously pleaded guilty before U.S. District Judge John Michael Vazquez to Count One of an indictment charging him with wire fraud. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Lanzana fraudulently solicited approximately $900,000 from at least 20 customers to invest in what he claimed were highly successful, algorithm-based trading pools in foreign currency derivatives (“forex”) and other financial instruments.
To maintain the victims’ trust, Lanzana sent false account statements to his customers, posted false monthly account statements to his companies’ websites showing balances and trading activity for forex trading accounts that did not exist, and generated and sent false tax documents to customers reporting earnings that did not exist.
Lanzana misappropriated hundreds of thousands of dollars in investor funds, using some to repay earlier investors in the manner of a Ponzi scheme, and to pay for his personal expenses, including purchases on Amazon.com, payments to a luxury car dealer and a jewelry retailer, and golf expenses.
In addition to the prison term, Judge Vazquez sentenced Lanzana to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark, with the investigation leading to today’s sentencing. She also thanked the U.S. Commodity Futures Trading Commission’s Division of Enforcement for its assistance.
The government is represented by Assistant U.S. Attorney Anthony P. Torntore of the U.S. Attorney’s Office’s Cybercrime Unit.
Kamiah Man Pleads Guilty to Second Degree MurderRead the Press Release
COEUR D'ALENE - A Kamiah man pleaded guilty to second degree murder.
According to court records, on October 30, 2020, Travis Dewayne Ellenwood, 44, of Kamiah, went out to a local bar in Kamiah with the victim, Bessie Blackeagle. During the early morning hours of October 31, they returned home to their residence where an argument ensued. During the argument, Ellenwood repeatedly struck Blackeagle and at one point strangled her until she could not breath. Though it is unknown the exact time that Blackeagle was beaten and strangled, Ellenwood eventually called 911 at approximately 5:30 p.m. and reported that Blackeagle was not breathing. Law enforcement and medical personnel responded to their residence and found Blackeagle was dead.
Chief U.S. Magistrate Judge Candy W. Dale took Ellenwood’s plea and set the case for sentencing in front of Senior U.S. District Judge B. Lynn Winmill at a future date. Ellenwood faces a maximum penalty of life in federal prison, up to a lifetime of supervised release, and a maximum fine of $250,000. 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 credited the cooperative efforts of the Federal Bureau of Investigation, Nez Perce Tribal Police, and Idaho County Sheriff's Office, which led to charges.
“My thoughts today are with Ms. Blackeagle’s loved ones who have lost forever a family member and a friend,” said Acting U.S. Attorney Gonzalez. “This office and our partners at the FBI, Nez Perce Tribal Police, and Idaho County Sheriff's Office will steadfastly pursue justice on behalf of victims of domestic violence and their families."
Mr. Gonzalez also encourages those experiencing domestic violence or those who know of someone in need of help to reach out, “everyone deserves a relationship free from domestic violence,” he added. If you or a loved one need assistance, please reach out to the free and confidential National Domestic Violence Hotline by calling 1-800-799-SAFE, texting “START” to 88788, or visiting their website at www.thehotline.org.
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Justice Department Addresses Violent Threats Against School Officials and TeachersRead the Press Release
Citing an increase in harassment, intimidation and threats of violence against school board members, teachers and workers in our nation’s public schools, today Attorney General Merrick B. Garland directed the FBI and U.S. Attorneys’ Offices to meet in the next 30 days with federal, state, Tribal, territorial and local law enforcement leaders to discuss strategies for addressing this disturbing trend. These sessions will open dedicated lines of communication for threat reporting, assessment and response by law enforcement.
“Threats against public servants are not only illegal, they run counter to our nation’s core values,” wrote Attorney General Garland. “Those who dedicate their time and energy to ensuring that our children receive a proper education in a safe environment deserve to be able to do their work without fear for their safety.”
According to the Attorney General’s memorandum, the Justice Department will launch a series of additional efforts in the coming days designed to address the rise in criminal conduct directed toward school personnel. Those efforts are expected to include the creation of a task force, consisting of representatives from the department’s Criminal Division, National Security Division, Civil Rights Division, the Executive Office for U.S. Attorneys, the FBI, the Community Relations Service and the Office of Justice Programs, to determine how federal enforcement tools can be used to prosecute these crimes, and ways to assist state, Tribal, territorial and local law enforcement where threats of violence may not constitute federal crimes.
The Justice Department will also create specialized training and guidance for local school boards and school administrators. This training will help school board members and other potential victims understand the type of behavior that constitutes threats, how to report threatening conduct to the appropriate law enforcement agencies, and how to capture and preserve evidence of threatening conduct to aid in the investigation and prosecution of these crimes.
Threats of violence against school board members, officials, and workers in our nation’s public schools can be reported by the public to the FBI’s National Threat Operations Center (NTOC) via its national tip line (1-800-CALL-FBI) and online through the FBI website (http://fbi.gov/tips). To ensure that threats are communicated to the appropriate authorities, NTOC will direct credible threats to FBI field offices, for coordination with the U.S. Attorney’s Office and law enforcement partners as appropriate. Reporting threats of violence through NTOC will help the federal government identify increased threats in specific jurisdictions as well as coordinated widespread efforts to intimidate educators and education workers.
Jefferson County man sentenced for methamphetamine distributionRead the Press Release
MARTINSBURG, WEST VIRGINIA – Michael Anthony Parkinson, of Ranson, West Virginia, was sentenced today to 108 months of incarceration for having a large amount of methamphetamine, Acting U.S. Attorney Randolph J. Bernard announced.
Parkinson, 37, pleaded guilty in May 2021 to one count of “Possession with Intent to Distribute Fifty Grams or More of Methamphetamine.” Parkinson admitted to having 50 grams or more of methamphetamine in January 2020 in Jefferson County. During a search of his residence, Parkinson had more than 400 grams of crystal meth, also known as “ice.” It was noted today that on December 21, 2019 in Maryland, he was stopped with 350 grams of crystal methamphetamine.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA –Shaquan Osullivan Kelly, of Ranson, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Kelly, 25, pleaded guilty today to one count of “Distribution of Cocaine Base.” Kelly admitted to selling cocaine base, also known as “crack,” in August 2018 in Jefferson County.
Kelly faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Indian River County Armed Drug Trafficker Sentenced to Federal Prison TermRead the Press Release
Miami, Florida – Today, a South Florida federal district judge sentenced a Vero Beach drug dealer who drove around town with fentanyl, a loaded semi-automatic firearm, and tens of thousands of dollars in cash to 106 months in federal prison.
On February 23, 2020, law enforcement officers arrested 34-year-old Burnell Heiges Emlet, III, after finding him slumped over the steering wheel of a car that was sitting at a stop light. With him inside car, Emlet had a loaded semi-automatic firearm with a large capacity magazine, as well as 76 prepacked baggies of fentanyl. Emlet was charged with state crimes and released on bond. Officers arrested Emlet again on May 22, 2020, following a traffic stop. This time, Emlet had 1,700 prepackaged baggies of fentanyl and more than $55,000 in cash with him inside the car. After this arrest, Emlet’s state bond was revoked.
In 2021, a federal grand jury in the Southern District of Florida charged Emlet with federal gun and drug trafficking crimes relating to the February 2020 arrest. A federal magistrate judge ordered him detained pre-trial, without bond. On July 15, 2021, Emlet pled guilty in federal district court to possessing with intent to distribute fentanyl and possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Donald M. Middlebrooks imposed today’s sentence.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida; La Verne J. Hibbert; Acting Special Agent in Charge, Drug Enforcement Administration, Miami Field Division; and David E. Currey, Chief of Police, Vero Beach Police Department, announced the sentence.
DEA Miami and Vero Beach PD investigated this case. Assistant U.S. Attorney Michael D. Porter prosecuted it.
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-14012.
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Illinois Man Pleads Guilty to Money Laundering for Role in Internet-Based Fraud SchemesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that an Illinois man pleaded guilty Friday, October 1, 2021 to conspiring with others to launder, or attempting to launder, between $550,000 and $1,500,000 from internet-based fraud schemes. Chief Judge Colm F. Connolly accepted the plea.
According to court documents, Daniel Oluwatoki Kuye, 22, received funds from businesses and individuals victimized through internet-based fraud schemes, including business email compromises and romance fraud. Kuye’s co-conspirators defrauded businesses and individuals over the internet and then instructed those victims to send the fraudulently obtained money to Kuye or to an alias Kuye used to receive the illicit proceeds. Kuye personally used a portion of the fraud proceeds and distributed the remainder to other co-conspirators.
Kuye pleaded guilty to one count of conspiracy to commit money laundering and faces a maximum penalty of 20 years in prison when sentenced. Actual sentences for federal crimes are typically less than the maximum penalties. Chief Judge Connolly will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “Mr. Kuye and his co-conspirators used online scams to steal money from American businesses and to cheat citizens out of their hard-earned savings. Mr. Kuye actively aided his co-conspirators by using aliases to receive fraudulently obtained proceeds and enriched himself in the process. My office will continue to prosecute those who participate in internet-based fraud schemes in any capacity.”
“Mr. Kuye admitted to laundering money obtained from various online fraudulent schemes which can be devastating to businesses and individuals who fall prey to them,” said Tomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “He also knowingly engaged in criminal money laundering activities, serving as a Money Mule. Money Mules assist these type of fraud schemes by receiving money from victims and forwarding proceeds to other criminals or even foreign-based perpetrators. This prosecution sends a message to all who are engaged in money mule activity that they will be caught and prosecuted. We also remind the public if you believe you have been the victim of a scam, please report it to the FBI at IC3.gov.”
This case was investigated by FBI-Baltimore Division’s Wilmington Resident Office. This case is being prosecuted by Assistant U.S. Attorney Jesse S. Wenger and Trial Attorneys Mary K. Daly and Alejandra Arias of the Criminal Division’s Money Laundering and Asset Recovery Section.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 20-cr-57-CFC.
High-ranking gang member gets substantial sentence for drug traffickingRead the Press Release
HOUSTON – A 33 year-old Houston man with a lengthy criminal history has been ordered to federal prison after packaging thousands of ecstasy pills for sale, announced Acting U.S. Attorney Jennifer B. Lowery.
Marquese Scott aka Fatboi pleaded guilty Feb. 9, 2019, to possession with intent to distribute MDMA, commonly known as ecstasy. He has been repeatedly documented as a high-ranking member of the 59 PIRU Criminal Street Gang and has many tattoos identifying him as such.
Today, U.S. District Judge Andrew S. Hanen sentenced him to a total of 210 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court heard about Scott’s lengthy criminal record, including aggravated sexual assault of a child, theft, multiple convictions of robbery, carjacking, drug possession, failing to register as a sex offender, unauthorized use of a vehicle and harassment of a public servant. Further, following the drug trafficking in the instant offense, Scott was convicted of dangerous conduct after he got into a fight with his co-defendant - Nicole Olajide, 33, Houston - and her mother, threatened to kill them and then slashed their tires with a knife. During sentencing, Scott attempted to introduce letters from them claiming it was Olajide’s fault he had done so.
In pronouncing the sentence, Judge Hanen noted Scott’s lengthy criminal history, including his convictions of violent crimes including his past convictions for robbery and and deadly conduct.
In 2018, Scott announced to potential buyers that he was selling several multi-kilogram quantities of meth and ecstasy. He then sent photographs of himself with several rocks of meth and “K-Packs,” which are gallon-sized baggies, each containing approximately ecstasy 1,000 pills. Scott advertised 6,000 ecstasy pills for $3,500.
Authorities executed a search warrant and found Scott and Olajide packaging ecstasy into the K-Packs. They recovered a total of approximately four kilograms of ecstasy.
Olajide had also pleaded guilty and later sentenced to 21 months in federal prison for her role in the offense.
Scott has been and 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 and Houston Police Department conducted the investigation. Assistant U.S. Attorney Adam Laurence Goldman is prosecuting the case.
Grand Jury indicts former Creve Coeur pharmacy owner in kickback schemeRead the Press Release
ST. LOUIS – Earlier this week a federal grand jury indicted Michael McCormac with one count of health care fraud and three counts of violations of the Anti-Kickback Statute. The indictment was suppressed until today.
The indictment charges Michael McCormac, the former owner of GoLiveWell Pharmacy in Creve Coeur, Missouri with one count of health care fraud and three counts of violations of the Anti-Kickback Statute. McCormac is accused of paying kickbacks to marketing companies for referrals of prescriptions for topical creams, oral medications, and antibiotic and antifungal drugs referred to as “foot bath” drugs, which were filled by GoLiveWell and reimbursed by federal health insurance.
McCormac is accused of paying the kickbacks to marketing companies as various percentages, or “margins,” which are net profits on each prescription. The indictment also alleges that McCormac was aware that patients often did not have a valid doctor/patient relationship with the providers who signed the prescriptions and that the prescriptions were not medically necessary.
GoLiveWell primarily functioned as a mail-order pharmacy, which filled prescriptions for federal health insurance beneficiaries throughout the United States between on or about March 17, 2017 and November 30, 2019. Through the health care fraud and kickback scheme alleged in the indictment, Medicare paid at least $4.7 million to GoLiveWell to which it was not entitled, Missouri Medicaid paid at least $490,000 to GoLiveWell to which it was not entitled, and Ohio Medicaid paid at least $330,000 to GoLiveWell to which it was not entitled.
“Individuals who seek to enrich themselves through kickback fraud schemes -- as alleged in this case -- undermine the taxpayer-funded Medicare and Medicaid programs and drive up health care costs for everyone,” said Special Agent in Charge Curt L. Muller, of the U.S. Department of Health and Human Services Office of Inspector General. “We remain committed to working closely with our law enforcement partners to swiftly investigate such fraud allegations.”
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Office of Inspector General for the United States Department of Health and Human Services and the Federal Bureau of Investigation.
Government Contractor Agrees to Pay More Than $1 Million to Resolve False Claims Act Lawsuit for Overbilling in Federal ContractsRead the Press Release
Airbus U.S. Space & Defense Inc., formerly known as Airbus Defense and Space Inc. (ADSI), has agreed to pay to the United States $1,043,475 to resolve allegations that it violated the False Claims Act by billing impermissible fees in contracts with a number of federal agencies.
“Government contractors have a responsibility to bill the government both accurately and transparently,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly inflate their costs or otherwise improperly bill the government will be held accountable.”
“This settlement underscores the important role that whistleblowers continue to serve in protecting critical taxpayer resources,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We encourage individuals who uncover suspected misconduct regarding federal contracts to come forward and report their observations.”
“Government contractors who deliberately inflate profits at the expense of our military and taxpayer will be held accountable,” said Special Agent in Charge Christopher Dillard of the Mid-Atlantic Field Office for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This civil settlement reflects DCIS’ commitment to work with our law enforcement partners to tenaciously investigate those alleged to have overcharged the Department of Defense.”
The settlement resolves allegations that from January 2016 through January 2017, ADSI submitted proposals for contracts that included an unapproved cost rate to which ADSI was not entitled. ADSI referred to this as the “Orlando Factor.” The government further alleged that on certain contracts, during 2013 through 2020, ADSI charged federal government agencies an additional fee from its affiliates on top of ADSI’s own fee for parts ADSI acquired from its affiliates, but did not accurately disclose this affiliate fee to the government. Finally, the government alleged that ADSI charged a third-party contractor an excessive monthly storage fee to store a radar system purchased to support a contract with the U.S. Navy. The contractor passed along the full storage fees charged by ADSI to the U.S. Navy. However, ADSI did not disclose that they paid only a portion of those storage fees to store the radar system.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by a former ADSI employee. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Kmec v. Airbus Defense and Space, Inc., et al., No. 1:19-cv-660 (E.D. Va.). The former ADSI employee will receive $157,220 of the False Claims Act settlement.
The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Eastern District of Virginia, with investigative support from the DCIS and the U.S. Army Criminal Investigation Division.
The matter was handled by Trial Attorney Richard Hagner of the Civil Division and Assistant U.S. Attorney Krista Anderson of the Eastern District of Virginia.
Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:19-cv-660 (E.D. Va.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Government Contractor Agrees to Pay More Than $1 Million to Resolve False Claims Act Lawsuit Alleging Overbilling in U.S. Defense ContractsRead the Press Release
ALEXANDRIA, Va. – A U.S. Government contractor has agreed to settle allegations that the company improperly billed fees on U.S. defense contracts involving a number of federal agencies.
Airbus U.S. Space & Defense, Inc., formerly known as Airbus Defense and Space, Inc. (ADSI), with offices in Arlington, Virginia, has agreed to pay to the United States $1,043,475 to resolve allegations that it violated the False Claims Act by billing impermissible fees in contracts involving a number of federal agencies.
“This settlement underscores the important role that whistleblowers continue to serve in protecting critical taxpayer resources,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We encourage individuals who uncover suspected misconduct regarding federal contracts to come forward and report their observations.”
The settlement resolves allegations that, from January 2016 through January 2017, ADSI submitted proposals for contracts that included an unapproved cost rate to which ADSI was not entitled. ADSI referred to this cost rate as the “Orlando Factor.” The government further alleged that on certain contracts, during 2013 through 2020, ADSI charged federal government agencies an additional fee from its affiliates on top of ADSI’s own fee for parts ADSI acquired from its affiliates, but did not accurately disclose this affiliate fee to the government. The government also alleged that ADSI charged a third-party contractor an excessive monthly storage fee to store a radar system purchased to support a contract with the U.S. Navy. The government alleged that ADSI passed along the full storage fees charged by ADSI to the U.S. Navy but did not disclose that it paid only a portion of those storage fees to store the radar system.
“Government contractors have a responsibility to bill the government both accurately and transparently,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Companies that knowingly inflate their costs or otherwise improperly bill the government will be held accountable.”
“Government contractors who deliberately inflate profits at the expense of our military and taxpayer will be held accountable,” said Christopher Dillard, Special Agent in Charge of the Mid-Atlantic Field Office for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “This civil settlement reflects DCIS’ commitment to work with our law enforcement partners to tenaciously investigate those alleged to have overcharged the Department of Defense.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act, by a former Airbus employee. The False Claims Act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Kmec v. Airbus Defense and Space, Inc., et al.). The former Airbus employee will receive $157,220 of the False Claims Act settlement.
The settlement was the result of a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s Civil Division’s Commercial Litigation Branch Fraud Section, with investigative support from the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, and the U.S. Army Criminal Investigation Division.
The matter was handled by Assistant U.S. Attorney Krista Anderson of the Eastern District of Virginia and Trial Attorney Richard Hagner of the Department of Justice’s Civil Division.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information from the civil lawsuit can be accessed on PACER by searching for Case No. 1:19-cv-660 (E.D. Va.).
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Fresno Man Sentenced to 6.5 Years in Prison for Dealing Fentanyl Pills and Illegally Possessing FirearmRead the Press Release
FRESNO, Calif. — Morgan Wency Ventura Sanchez, 24, of Fresno, was sentenced today to six years and six months in prison for possessing hundreds of fentanyl pills with intent to distribute them and illegally possessing a firearm in furtherance of the offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in August 2020 federal and local law enforcement officers were investigating Ventura Sanchez for dealing fentanyl pills. On Aug. 24, 2020, officers searched Ventura Sanchez’s car, person, and residence and found hundreds of fentanyl pills, as well as other controlled substances, including heroin, cocaine, and marijuana. Officers also found a loaded firearm close to Ventura Sanchez’s drug stash. Ventura Sanchez was arrested and pleaded guilty to federal drug and gun charges.
This case was the product of an investigation by the Fentanyl Overdose Resolution Team, a multi‑agency team composed of Homeland Security Investigations, the Drug Enforcement Administration, and the Fresno Police Department. Assistant U.S. Attorney Justin J. Gilio prosecuted the case.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Former Employees of Utility Company Plead Guilty in Bribery and Kickback SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Patrick McCrann and Richard Zavada, two former employees of a New York-based utility company (the “Company”), pleaded guilty to accepting bribes and kickbacks from the owners of a Long Island-based contractor (the “Contractor”) in exchange for steering lucrative contracts to the Contractor. Last week, Ricardo Garcia and Jevan Seepaul, two other former employees of the Company, also pleaded guilty to accepting bribes and kickbacks from the Contractor. Today’s proceedings took place before United States District Judge Carol Bagley Amon.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the guilty pleas.
“The defendants have admitted to accepting thousands of dollars in bribes and kickbacks for their own enrichment and to subverting the no-bid process for awarding contracts,” stated Acting U.S. Attorney Kasulis. “The Office will remain vigilant in prosecuting criminals who seek to enrich themselves at the expense of taxpayers and consumers.”
As alleged in the criminal information and other court filings, the defendants were managers employed in the facilities department of the Company who steered contracts to certain Long Island-based contractors, including the Contractor, in exchange for hundreds of thousands of dollars in bribes and kickbacks. The Contractor secured more than $50 million in facility maintenance contracts from the Company during the time that the Contractor was paying bribes to the defendants. As managers, the defendants had the authority to approve “no-bid” contracts valued at less than $50,000. The Contractor understood that if it did not pay bribes, the defendants would award the Company’s work to the Contractor’s competitors. In exchange for the bribe payments, the defendants also took various steps to assist the Contractor in obtaining contracts from the Company for which there was a bidding process, including providing it with non-public bidding information, circumventing the Company’s competitive bidding process and offering favorable reviews of the Contractor’s work. The Contractor paid bribes to ensure that the defendants did not slow or stop disbursement of project funds to the Contractor, provide negative performance reviews regarding the Contractor’s work, or otherwise claim that the Contractor’s work did not meet contractual specifications.
The illicit payments to the defendants included cash, the purchase of a recreational vehicle, home improvements, landscaping and an overseas vacation. As part of the investigation, agents recovered approximately $300,000 in cash from a safe deposit box held by Zavada.
When sentenced, each defendant faces a maximum sentence of five years in prison, a maximum fine of $500,000, mandatory restitution and forfeiture.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Turner Buford and Artie McConnell are in charge of the prosecution.
The Defendants Who Pleaded Guilty Today:
PATRICK MCCRANN
Age: 57
Selden, New YorkE.D.N.Y. Docket No. 21-CR-467 (CBA)
RICHARD ZAVADA
Age: 65
Hicksville, New YorkE.D.N.Y. Docket No. 21-CR-468 (CBA)
The Defendants Who Previously Pleaded Guilty:
RICARDO GARCIA
Age: 48
Stroudsburg, PennsylvaniaE.D.N.Y. Docket No. 21-CR-460 (CBA)
JEEVAN SEEPAULAge: 36
Rockville Centre, New YorkE.D.N.Y. Docket No. 21-CR-469 (CBA)
Fort Myers Man Sentenced to More Than 22 Years for Firearms Offense and for Receiving Illegal Drugs Through the MailRead the Press Release
Fort Myers, Florida – U.S. District Judge Sheri Polster Chappell has sentenced Bradleigh Wayne Carter (32, Fort Myers) to 22 years and 6 months in federal prison for attempted possession with the intent to distribute 50 grams of methamphetamine and for possession of a firearm in furtherance of a drug trafficking crime. The court also ordered Carter to forfeit firearms and ammunition that were related to the offense.
Carter had pleaded guilty on October 6, 2020.
According to court documents, Carter agreed to have a United States Postal Service (USPS) Priority Mail parcel shipped to his residence in Fort Myers, knowing that the package contained approximately one pound of methamphetamine. During the execution of a search warrant at Carter’s residence, law enforcement located additional quantities of controlled substances, including methamphetamine, fentanyl and cocaine. Agents also seized several firearms and ammunition that Carter, a convicted felon, knowingly possessed in furtherance of his drug trafficking activity.
This case was investigated by the United States Postal Inspection Service with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jesus M. Casas.
Former Operations Supervisor at Social Security Administration Sentenced to over 5 Years for Wire Fraud and Identity TheftRead the Press Release
NEW BERN, N.C. – A Saint Pauls, North Carolina woman, Stephanie Chavis, was sentenced today to 65 months in prison and three years of supervised release for wire fraud and aggravated identity theft. Chavis was also ordered to pay $760,966 in restitution to the Social Security Administration. On April 16, 2019, Chavis pled guilty to the charges.
According to court documents and other information presented in court, Chavis was an Operations Supervisor at the Fayetteville offices of the Social Security Administration (SSA). SSA administers monetary aid to the public through federally funded programs, including the Supplemental Security Income program (SSI), which authorizes monthly payments to qualifying individuals who are 65 years or older, blind, or disabled, and who meet certain income and resource criteria.
In her capacity as an Operations Supervisor, Chavis had access to SSA beneficiary accounts and associated personal identifying information (PII). Between approximately August 2010 and April 2018, Chavis caused over $760,000 in SSI benefits to be electronically deposited into nine different bank accounts held in her name, and in the names of various family members, by making false and fraudulent representations to fellow SSA employees, including claims representatives and other supervisors. The investigation established that Chavis used her government-issued PIN number to query the accounts of approximately 62 program beneficiaries and used their PII to generate the fraudulent payment requests. The beneficiaries targeted by Chavis included incarcerated individuals who were not entitled to payments, individuals who had been suspended or terminated from the SSI program, and beneficiaries who were legitimately owed SSI funds.
To circumvent SSA policy requirements, Chavis provided the beneficiary PII and account information for deposit purposes to unsuspecting claims representatives and asked them to create approximately 100 fraudulent payment requests. After the requests were created, Chavis either approved them herself or asked other SSA employees to process the approvals. Thereafter, the stolen funds were deposited into the bank accounts under Chavis’s control.
“Ms. Chavis misused her official position and authority in the Social Security Administration to steal over $760,000 in taxpayer funds. I am gratified that a review by the SSA OIG audit office flagged this activity to OIG investigators as potential fraud,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will continue to identify and aggressively pursue any instances of employee fraud and hold wrongdoers to account. These efforts are critical to maintaining the public’s trust in Social Security. I want to thank the U.S. Attorney’s Office for its support of our investigation and efforts to bring it to a successful resolution.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The case was investigated by Social Security Administration, Office of Inspector General, Atlanta Field Division, under the supervision of Special Agent in Charge Rodregas W. Owens. Former Special Assistant U.S. Attorney Tamika Moses and Assistant U.S. Attorney Adam F. Hulbig prosecuted the case for the government.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:18-cr-00407-FL-1.
Former Director of Operations at Stockton Biofuel Company Sentenced to 18 Months in Prison for Illegally Dumping Industrial WastewaterRead the Press Release
SACRAMENTO, Calif. — Christopher Young, 45, of El Dorado Hills, was sentenced today by U.S. District Judge Kimberly J. Mueller to 18 months in prison and a $50,000 fine for tampering with monitoring equipment, unlawful discharge of industrial wastewater, and conspiracy, Acting U.S. Attorney Phillip A. Talbert announced.
Young was Director of Operations for Community Fuels from 2010 to 2016. Community Fuels is registered in San Joaquin County by American Biodiesel Inc. and manufactured biodiesel fuel on property leased from the Port of Stockton
According to court documents, Young participated in a scheme to discharge hundreds of thousands of gallons of polluted wastewater by various unlawful means, including the discharge of wastewater directly into Stockton’s sewer system after tampering with pH sensors and discharge flow monitors to hide evidence of the dumping. Young also directed others to cause a discharge on various dates using improvised hidden hoses and pipes that ultimately connected to the city’s sewer system.
The City of Stockton issued wastewater permits to American Biodiesel that allowed the limited discharge of wastewater into the sewer system under specific standards—a limitation on the total volume discharged per month, an allowable range of pH readings, and a restriction on the concentration of methanol. American Biodiesel had previously represented to the City of Stockton that unpermitted wastewater would be transported offsite to an appropriate facility for treatment. Young’s actions circumvented these restrictions through equipment tampering and unauthorized dumping.
In one instance in 2016, the City of Stockton conducted a surprise inspection and found plant personnel engaged in a procedure that misreported the pH level data and the flow rate of wastewater being discharged into the Stockton sewer system. The City issued an immediate cease and desist order. Young then met with the city inspectors and told them that the discharge was an accident and employees had been disciplined for the act. But later, Young sent an email instructing an employee to restart the wastewater dumping into the sewer because inspectors were unlikely to appear after hours.
“Violating the environmental laws of the United States can carry criminal consequences, potentially including time in prison,” said Acting U.S. Attorney Talbert. “Protecting the environment for our community and future generations is critical, and those who violate our environmental laws will be held accountable.”
“Our nation’s environmental laws are designed to protect our communities, natural resources, and critical infrastructure from hazardous pollutants,” said Special Agent in Charge Scot Adair of EPA’s criminal investigation program in California. “The sentencing outcomes in this case demonstrate that companies and individuals that intentionally violate those laws will be held responsible for their crimes.”
On July 8, 2019, Judge Mueller sentenced American Biodiesel for violations of the Clean Water Act when it allowed the discharge of industrial wastewater into the City of Stockton sewer system. American Biodiesel admitted to tampering with monitoring devices and methods designed to detect such violations, and admitted that employees tampered with pH recordings and flow meters for the purpose of underreporting acid and pollutant levels and volumes that would have exceeded the figures allowed under the city’s regulations.
This case was the product of an investigation by the EPA’s Criminal Investigation Division, the San Joaquin County District Attorney’s Office, the City of Stockton Municipal Utilities Department, the San Joaquin County Environmental Health Department, the Port of Stockton, and the California Department of Toxic Substances Control. Assistant U.S. Attorneys Philip A. Scarborough and Paul Hemesath prosecuted the case.
Former Boston Police Officer Charged in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer has been charged and has agreed to plead guilty in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Thomas Nee, 64, of Quincy, agreed to plead guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. A plea hearing has not yet been scheduled.
According to charging documents, from at least January 2015 through February 2019, Nee submitted false and fraudulent overtime slips for overtime hours that he did not work at the evidence warehouse. The “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. “Kiosk” overtime involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Nee claimed to have worked from 4 – 8 p.m., but he and, allegedly, other members of the unit, routinely left at 6 p.m., or earlier. For the “kiosk” shift, Nee submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit, only worked three-to-four hours of those shifts. As a result, between January 2015 and August 2017, Nee personally collected approximately $16,642 for overtime hours he did not work.
Nee is the 15th Boston Police officer to have been charged in connection with committing overtime fraud at the Boston Police Department’s evidence warehouse. Nine of the charged officers have pleaded guilty.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Florida Man Sentenced to Federal Prison for Filing Hundreds of False Tax ReturnsRead the Press Release
PORTLAND, Ore.—A Homestead, Florida man was sentenced to federal prison today for perpetrating a multi-year fraud scheme wherein he filed 745 false tax returns in 19 different states.
Damian O. Barrett, 40, was sentenced to 54 months in federal prison and three years’ supervised release.
“With tax filing season right around the corner, it is important that all Americans who choose to hire a tax preparation professional take the necessary precautions to ensure they are legitimate and have their best interests in mind, said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. “Misusing personally identifiable information to submit fraudulent tax returns in the names of unknowing clients is a serious crime and be treated as such by our office. We applaud the IRS’s effort to hold Mr. Barrett accountable for his crimes.”
“Mr. Barrett used his specialized knowledge as a tax preparer to obtain false refunds at the cost of honest taxpayers all over the United States. Today’s sentence is a victory for those of us who have been victims of a sophisticated tax refund scheme,” said IRS Criminal Investigation (IRS:CI) Special Agent in Charge Bret Kressin. “IRS:CI continues to prioritize investigating individuals who diminish the integrity of our tax systems to hold them accountable for their fraud.”
According to court documents, Barrett owned two tax preparation companies, Max Tax Experts, LLC and Winngate Tax Services, LLC. Barrett used Max Tax Experts to service and submit tax returns on behalf of legitimate clients. He used Winngate Tax Services to submit false and fraudulent income tax returns. From approximately January 2015 through December 2018, Barrett filed 745 false tax returns to 19 different state taxing authorities. The Oregon Department of Revenue alone received 348 tax returns requesting more than $322,000 in fraudulent refunds. The agency paid out more than $130,000 in fraudulent refunds to Barrett.
To further his scheme, Barrett used the names, social security numbers, and employer identification numbers of various individuals, some of whom were his clients, to submit fraudulent returns. Additionally, he set up bank accounts in the names of some of his victims to receive fraudulent refunds. In total, Barrett sought nearly $900,000 and received more than $234,000 in fraudulent refunds.
In addition to his fraud scheme, in 2016, Barrett intentionally excluded more than $21,000 in income from his personal income tax return, resulting in a tax loss of $5,506. In 2017, Barrett failed to file a personal income tax return, creating an additional tax loss of $68,918.
On August 5, 2020, a federal grand jury in Portland returned a six-count indictment charging Barrett with mail fraud and money laundering. Later, on June 17, 2021, he was charged by superseding criminal information with mail fraud, filing a false tax return, and aggravated identity theft. On July 19, 2021, Barrett pleaded guilty to all three charges in the superseding information.
During sentencing, U.S. District Court Judge Michael H. Simon ordered Barrett to pay more than $234,000 in restitution to 11 state departments of revenue, including the taxing authorities in Arizona, Connecticut, Iowa, Louisiana, Michigan, Missouri, New Jersey, New Mexico, Oklahoma, Oregon, and South Carolina, and more than $74,000 to the IRS.
Acting U.S. Attorney Asphaug and Special Agent in Charge Kressin made the announcement.
This case was investigated by IRS:CI with assistance from the U.S. Postal Inspection Service. Assistant U.S. Attorneys Katherine A. Rykken and Seth D. Uram prosecuted the case.
Felon Who Possessed Multiple Firearms Sentenced to over Nine Years in PrisonRead the Press Release
A man who possessed five firearms as a felon was sentenced today to more than nine years in federal prison.
Demond Rollins, age 21, from Waterloo, Iowa, received the prison term after an April 19, 2021 guilty plea to being a felon in possession of a firearm.
Evidence in the case showed Rollins was in possession of a firearm as a passenger in a vehicle. When police initiated a traffic stop, the vehicle fled at a high rate of speed through Waterloo. Rollins tossed a firearm out of the car window and then ran from police when the vehicle stopped. Rollins has two prior state court convictions for being a felon in possession of firearms.
Rollins was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Rollins was sentenced to 110 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Rollins is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Jacob Schunk and was investigated by a Federal Task Force composed of the Waterloo Police Department, Federal Bureau of Investigation, and Bureau of Alcohol Tobacco and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2009.
Follow us on Twitter @USAO_NDIA.
Federal Indictment Charges Two Men and A Woman for Mail Theft and Bank Fraud SchemeRead the Press Release
CHARLOTTE, N.C. – A federal indictment was unsealed in court today, charging two men and a woman for their involvement in a mail theft and bank fraud scheme, in which more than $2 million in stolen business checks were deposited into straw bank accounts, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Chief Johnny Jennings of the Charlotte Mecklenburg Police Department (CMPD) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to allegations in the indictment, beginning in November 2020, Terrell Devon Freeman, 34, Joshua MacDavid Monteith, 31, and Yanalise Simone Hodge, 22, all of Charlotte, engaged in a bank fraud scheme involving stolen mail. As alleged in the indictment, the defendants and their co-conspirators stole business checks and other mail from U.S. Postal Service collection boxes and business mailboxes in Charlotte and elsewhere, and cashed the stolen checks using fraudulent identifications and straw bank accounts before the victim banks detected the fraud. The indictment alleges that the defendants and their co-conspirators executed the fraud scheme in North Carolina, South Carolina, Georgia and Virginia and defrauded at least seven financial institutions. The indictment further alleges that the total face value of the business checks stolen in the scheme was over $2 million.
The federal indictment was unsealed today, following Freeman’s arrest and scheduled court appearance in U.S. District Court in Atlanta, Georgia. Monteith and Hodge appeared before U.S. Magistrate Judge David S. Cayer last week, following their arrest by law enforcement in Charlotte.
The defendants are each charged with one count of bank fraud conspiracy and multiple individual counts of bank fraud, which carry a maximum penalty of 30 years in prison and a $1 million fine. Freeman and Hodge are also charged with aggravated identity theft, which carries a potential two-year prison sentence, consecutive to any other term imposed.
The charges contained in the indictment are allegations. The defendants are presumed innocent until proven guilty beyond reasonable doubt in a court of law.
In making today’s announcement Acting U.S. Attorney Stetzer thanked USPIS and CMPD for their investigation of the case.
Assistant U.S. Attorney William T. Bozin, of the U.S. Attorney’s Office in Charlotte, is in charge of the prosecution.
Fayetteville Cocaine Trafficker Sentenced to 15 YearsRead the Press Release
NEW BERN, N.C. – A Fayetteville man was sentenced today to 180 months in prison for a cocaine distribution conspiracy dating back to 2010.
According to court documents and other information presented in court, Dominique Hope, 33, was a kilogram level cocaine dealer in the Fayetteville area for almost a decade. During that time, investigators also received information indicating that Hope was involved in several shootings and robberies of other drug distributors and was not charged in these instances because the victims elected not to cooperate with law enforcement. On June 28, 2019, investigators seized cocaine, drug packaging material, and four firearms from Hope’s residence.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Fayetteville Police Department, Cumberland County Sheriff’s Office, Federal Bureau of Investigation, and Drug Enforcement Administration investigated the case and Assistant U.S. Attorney Caroline Webb prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-140-FL.
Department of Justice Awards over $21 Million in Grants to Enhance Victim Services and Support Public Safety Efforts in NevadaRead the Press Release
LAS VEGAS, Nev. – Acting U.S. Attorney Christopher Chiou for the District of Nevada announced today that the Department of Justice has recently awarded $21,997,467 in grant funding to improve services for crime victims and to support state, local, and tribal public safety across Nevada.
“By providing additional resources for victim service providers in Nevada, these grants will help secure victims’ legal rights and get survivors on the road to recovery,” said Acting U.S. Attorney Chiou. “The grants also reflect the Department of Justice’s steadfast commitment to protecting public safety and reducing crime in our communities and homes.”
Since mid-September 2021, Nevada entities have been awarded the following grants from the Office of Justice Programs (OJP) and its components:
- Bureau of Justice Assistance:
- The Nevada Department of Public Safety was awarded: (a) $2,174,534, as part of the Edward Byrne Memorial Justice Assistance Grant Program; (b) $21,783, as part of the Prison Rape Elimination Act Reallocation Funds; and (c) $358,297, as part of the Residential Substance Abuse Treatment for State Prisoners Program Formula Grant.
- The State of Nevada was awarded $36,901, as part of the John R. Justice Program Formula Grant Solicitation.
- Office for Victims of Crime:
- Noah’s Animal House Foundation in Reno was awarded $500,000, as part of the Emergency and Transitional Pet Shelter and Housing Assistance Grant Program.
- The Inter-Tribal Council of Nevada was awarded $3,082,025, as part of the Tribal Victim Services Set-Aside Formula Grant Program.
- The Division of Child & Family Services was awarded: (a) $10,054,895, as part of the Victims of Crime Act (VOCA) Victim Assistance Formula Grant; and (b) $1,119,000, as part of the VOCA Victim Compensation Formula Grant.
Further, Nevada entities have been awarded the following grants from the Office on Violence Against Women (OVW):
- The National Council of Juvenile and Family Court Judges was awarded $2,600,000, as part of the Training and Technical Assistance Initiative Program.
- The Washoe Tribe of Nevada & California was awarded $600,000, as part of the Grants to Indian Tribal Governments Program.
- The Pyramid Lake Paiute Tribe was awarded $900,000, as part of the Grants to Indian Tribal Governments Program.
- The Nevada Coalition to End Domestic and Sexual Violence was awarded $270,782, as part of the State and Territory Domestic Violence and Sexual Assault Coalitions Grant Program.
- The Nevada Attorney General’s Office was awarded $279,250, as part of the Enhanced Training and Services to End Abuse in Later Life Grant Program.
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OJP provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
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Creve Coeur pharmacy and owner agree to pay $1,507,808.50 to resolve lawsuit alleging dispensing of controlled substances with no legitimate medical purposeRead the Press Release
ST. LOUIS – The United States has reached a civil settlement with Olive Street Pharmacy, LLC (Olive Street) and pharmacy technician Irina Shlafshteyn (Shlafshteyn) resolving a civil complaint bringing claims under the False Claims Act (FCA) and Controlled Substances Act (CSA) for damages, statutory penalties, and injunctive relief related to the unlawful dispensing of controlled substances, including controlled substances that were submitted to Medicaid or Medicare for reimbursement. As part of the settlement, Olive Street and Shlafshteyn agreed to pay $1,507,808.50, an amount that was based in part on their ability to pay.
According to the civil complaint filed by the United States, Olive Street, a retail pharmacy located in Creve Coeur, Missouri, and Shlafshteyn, its 25 percent owner and managing employee, repeatedly dispensed prescriptions for controlled substances while disregarding warning signs of diversion, or “red flags,” indicating the prescriptions were not legitimate. The United States alleged that the types of red flags that Olive Street and Shlafshteyn ignored included clear instances of tampering with written prescriptions; dangerous combinations of drugs commonly sought after for recreational purposes; and amounts of opioids that exceeded CDC guidance by as much as 17.5 times the recommended maximum daily dosage.
In the complaint, the United States further accused Olive Street of routinely dispensing prescriptions for Subsys, an oral fentanyl spray, which is subject to heightened FDA restrictions and indicated only for opioid-tolerant patients experiencing breakthrough pain due to cancer. The United States contended that Olive Street and Shlafshteyn knowingly dispensed high dosages of Subsys to patients who did not qualify for the drug, and that the vast majority of the Subsys Olive Street dispensed was prescribed by Philip Dean, M.D. Dean, a Warrenton, Missouri neurologist, pleaded guilty to illegally distributing prescription opioids in 2018, including to women with whom he had lived and with whom he had had personal relationships.
The United States alleged that even though Shlafshteyn knew Dean was having intimate relationships with at least one of the women for whom he was prescribing controlled substances, Shlafshteyn and others at her direction continued to dispense Dean’s controlled substance prescriptions to that patient and to other patients of Dean. Further, according to the civil complaint, as the managing employee of Olive Street, Shlafshteyn had the control and authority to effect compliance with the FCA and CSA.
According to the settlement agreement, effective September 30, 2021, Shlafshteyn surrendered her Missouri pharmacy technician license and Olive Street terminated its enrollment in the Transmucosal Immediate Release Fentanyl Risk Evaluation and Mitigation Strategy (TIRF REMS) Program, the FDA-mandated program that had allowed Olive Street to dispense immediate-release fentanyl drugs like Subsys. The parties further agreed to enter into a consent decree of permanent injunction prohibiting Shlafshteyn from participating in the dispensing of controlled substances or being employed by any establishment that does so, prohibiting Olive Street from seeking enrollment in the TIRF REMS Program, and detailing many additional specific parameters limiting the circumstances under which Olive Street is permitted to continue dispensing controlled substances.
“Medical professionals have the legal obligation to ensure the dispensing of prescriptions are for legitimate medical purposes,” said Inez Davis, the Drug Enforcement Administration’s Diversion Program Manager for the states of Missouri and Kansas, and southern Illinois. “In this case, the pharmacy abandoned its corresponding responsibility and ignored the clear signs that powerful medications, like oral fentanyl spray, were being prescribed far beyond the recommended guidance. This settlement sends a message that DEA will not accept actions that put people’s lives at risk.”
Under the settlement agreement, Shlafshteyn is excluded from participating in the federal healthcare programs for a period of 10 years, and Olive Street is bound by the terms of a corporate integrity agreement governing its ability to continue participating in the federal programs.
“Health care providers who unlawfully dispense controlled drugs risk the health of their patients and pose a threat to society,” said Curt L. Muller, Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General. “We will continue to work with our law enforcement partners to protect the integrity of federal health programs and hold accountable individuals who endanger beneficiaries.”
“The Missouri Attorney General’s Medicaid Fraud Control Unit aids in conducting complex investigations and prosecutions to ensure that those who game the Medicaid system for personal gain are held accountable,” added Missouri Attorney General Eric Schmitt. “We’re proud of our work in this case, and our work across the state to hold bad actors accountable and save taxpayer money.”
The Office of Inspector General of the Department of Health and Human Services, Drug Enforcement Administration, Federal Bureau of Investigation and the Missouri Attorney General’s Medicaid Fraud Control Unit investigated the case. Assistant United States Attorney Amy Sestric handled the case.
Convicted Rapist and Armed Robber Who Assumed Another’s Identity for More Than 40 Years Pleads Guilty to Federal ChargesRead the Press Release
Tampa, Florida – Douglas Edward Bennett (77, Clearwater) has pleaded guilty to passport fraud, aggravated identity theft, and possession of a firearm by a convicted felon. He faces a maximum penalty of 22 years in federal prison. A sentencing date has not yet been set.
According to the plea agreement, in 1975 a Connecticut jury convicted Bennett of several violent felony and sex offenses, including robbery, kidnapping, sexual contact, rape, and two counts of deviate sexual intercourse, pursuant to which he was sentenced to 9 to 18 years in state prison. After his conviction, Bennett was permitted to remain out of custody pending appeal. But after his conviction was affirmed, Bennett never surrendered to begin serving his sentence, and instead assumed the identity of Gordon Ewen, under which he lived for more than 40 years. According to Massachusetts death records, the real Gordon Ewen died in 1945.
Around July 2016, Bennett submitted a passport application that used Gordon Ewen’s name, date of birth, and Social Security number and failed to disclose Bennett’s true identity.
On November 4, 2020, Bennett was arrested on the federal charges and on a warrant from the State of Connecticut. A fingerprint comparison confirmed that he was the same person convicted in Connecticut in 1975. That same day, federal agents executed a search warrant at Bennett’s house and discovered handwritten notes detailing the first time Bennett used Ewen’s identity and details on how he originally obtained Ewen’s identification documents. Additionally, inside Bennett’s home, investigators discovered and seized five firearms and nearly five thousand rounds of ammunition. As a convicted felon, Bennett is prohibited from possessing firearms or ammunition.
While in jail, family members visited Bennett. During a video visitation, Bennett stated to a family member, “I would have explained to him [the Federal Judge] the entirety of things, said ‘yes I started out as Douglas Bennett, but Douglas Bennett ceased to exist in 1977…and from that time forward, I’ve spent forty-three years being Gordon Ewen.’”
This case was investigated by the U.S. Department of State’s Diplomatic Security Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pinellas County Sheriff’s Office, and the Social Security Administration – Office of Inspector General, with substantial support from the Department of State’s National Passport Center, the U.S. Marshals Service, and the Connecticut U.S. Marshals Task Force. It is being prosecuted by Assistant United States Attorney Erin Claire Favorit.
Columbus man charged in narcotics conspiracy also accused of forcing addicts into prostitution through violenceRead the Press Release
COLUMBUS, Ohio – Six additional defendants and new charges involving sex trafficking have been added to a case pending against a Columbus man who allegedly provided individuals cocaine and fentanyl in exchange for criminal acts.
Court documents allege Ricco Lamonte Maye, 39, of Columbus, was the head of a loose organization of individuals engaged in various types of criminal activity, including drug trafficking, sex trafficking, and mail and wire fraud. Maye allegedly used threats, violence and manipulation of drug dependencies to ensure individuals continued to carry out his criminal schemes.
A federal grand jury has now charged 10 total defendants with crimes related to distributing bulk quantities of fentanyl, crack, cocaine and methamphetamine; a mail and wire fraud conspiracy involving fraudulent Pandemic Unemployment Assistance; a conspiracy to threaten potential witnesses; and an alleged conspiracy in which women were sex trafficked to earn drug money.
Maye was originally charged by indictment in November 2020 and has remained in federal custody since. A second superseding indictment was unsealed today.
According to the second superseding indictment, beginning in at least 2018, Maye’s drug trafficking organization primarily distributed narcotics to addicts in street-level quantities. It is alleged he regularly purchased narcotics from supply sources both inside and outside of Ohio and used addicts to transport the drugs back to Columbus for resale.
Court documents say Maye would accept stolen goods, gift cards, Social Security numbers and other items in addition to cash as payment for the drugs.
The indictments detail that Maye and other defendants filed for and received more than $30,000 in fraudulent Pandemic Unemployment Assistance. Maye allegedly kept all or a portion of the others’ benefits.
It is alleged that Maye initially gave drugs to women for free and later required them to earn drug money through prostitution. The second superseding indictment details that Maye provided the means for the women to engage in prostitution – frequently obtaining hotel rooms, having the women driven to the hotels, providing cell phones, and directing Internet prostitution ads. Maye allegedly collected the prostitution proceeds, enforced specific rules on the women and punished the women through physical violence.
Finally, it is alleged that, after his initial arrest on federal charges in November 2020, Maye attempted to obstruct the ongoing investigation into his sex trafficking and fraud activities.
Specifically, according to court documents, Maye consistently made phone calls to various co-conspirators and potential witnesses in an attempt to determine whether individuals had spoken to or otherwise cooperated with law enforcement. In these communications, he allegedly directed co-conspirators to cause physical harm to potential witnesses against him or directly threatened such potential witnesses with physical harm. Maye allegedly directed some co-defendants to use his Facebook account to reach and threaten others.
For example, in November 2020, Maye allegedly directed someone to mix rat poison into fentanyl and give it to a co-defendant he believed could be cooperating with law enforcement.
Defendants charged in this case include:
Name
Also Known As
Age
City
Ricco L. Maye
Roscoe
39
Columbus
Airrika N. Anthony
33
Columbus
Nicole L. Groves
Nikki
32
Columbus
Kevin E. Pearson
58
Columbus
Jasmine R. Weather
Jazmine, Jazmyne, Jaz
23
Columbus
Jacob M. Capan
Jake
28
Pickerington
Danielle C. Ferguson
Dani
31
Columbus
Vincent N. Morrow
V
39
Columbus
Ashleigh A. Davis
Snowflake
28
Chillicothe
Victor Blake
Slim
60
Columbus
The drug conspiracy charged in this case is punishable by a minimum of 10 years and up to life in prison. The sex trafficking by force conspiracy charged in this case is punishable by at least 15 years and up to life in prison. Conspiracy to commit wire and mail fraud is punishable by up to 20 years in prison. Conspiring to tamper with a witness carries a potential penalty of up to 30 years in prison. Obstructing law enforcement is punishable by up to 25 years in prison.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Ohio Attorney General Dave Yost; the U.S. Department of Labor Office of Inspector General and Columbus Police Chief Elaine Bryant announced the charges. Assistant United States Attorneys Kevin W. Kelley and Heather A. Hill are representing the United States in this case.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Charleston Man Sentenced to 10 Years in Federal Prison for Methamphetamine DistributionRead the Press Release
CHARLESTON, W.Va. – Dante Williams, 24, of Charleston, was sentenced to 120 months in federal prison for distribution of 50 grams or more of methamphetamine.
According to court documents, Williams sold two ounces of methamphetamine to a confidential informant on January 14, 2021. Williams arranged to first meet the informant in the parking lot of the Family Dollar store on Charleston’s West Side, but then directed the informant to follow him to Swinburn Street where the transaction took place. Williams also admitted that he fronted the informant an additional two ounces of methamphetamine for which Williams would be paid later.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT), the U.S. Marshals Service and the West Virginia State Police.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Monica Coleman handled the prosecution.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
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. 2:21-cr-00032 (Williams, et al.).
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Camden Man Admits Possession with Intent to Distribute FentanylRead the Press Release
CAMDEN, N.J. – A Camden man today admitted to possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Desmund M. Walker, 36, pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with possession with intent to distribute fentanyl.
According to documents filed in this case and statements made in court:
On May 16, 2020, patrol officers from the Camden County Police Department encountered Walker in the vicinity of South 8th and Thurman streets in Camden. Walker fled from the officers through Robert B. Johnson Park, was apprehended, and found to be in possession of 17.67 grams of fentanyl wrapped in 93 white wax folds.
The maximum penalty for possession with intent to distribute fentanyl is 20 years in prison and a $1 million fine. Sentencing is scheduled for Feb. 10, 2022.
Acting U.S. Attorney Honig credited special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Field Division, under the direction of Special Agent in Charge Jeffrey L. Matthews, with the investigation leading to today’s plea. She also thanked the Camden County Police Department, under the direction of Chief Gabriel Rodriguez, for its assistance.
The government is represented by Assistant U.S. Attorney Diana Vondra Carrig of the U.S. Attorney’s Office in Camden.
Camden County Man Admits Role in Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man today admitted defrauding a victim of almost $2 million in connection with a fraudulent investment scheme, Acting U.S. Attorney Rachael A. Honig announced.
Frank N. Tobolsky, 59, of Cherry Hill, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to one count of wire fraud.
According to documents filed in this case and statements made in court:
Beginning in 2013, Tobolsky raised money from a victim, purportedly as an investment that would loan money to season ticket holders who owned seat licenses for the Philadelphia Eagles. The seat licenses would be used as collateral to secure the loans. The victim sent Tobolsky approximately $2.4 million to invest in the purported business venture. The money was not used for loans to season ticket holders. Instead, Tobolsky used a substantial portion on personal expenses.
The charge of wire fraud to which Tobolsky pleaded guilty carries a maximum penalty of 20 years in prison and a maximum fine of $250,000, or twice the gross loss to any victim or gain to Tobolsky, whichever is greatest. Sentencing is scheduled for Feb. 10, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, Philadelphia Division, under the direction of Inspector in Charge Damon Wood, with the investigation leading to today’s guilty plea. She also thanked the U.S. Attorney’s Office for the District of Delaware for assisting in the investigation.
The government is represented by Assistant U.S. Attorney Jeffrey Bender and Special Assistant U.S. Attorney John Crockett of the U.S. Attorney’s Office in Camden.
Bridgeport Man Admits Participating in Gang-Related ShootingsRead the Press Release
DIOMIE BLACKWELL, also known as “Yamo,” 24, of Bridgeport, pleaded guilty today to a racketeering offense stemming from his participation in gang-related shootings, including a shooting in front of a state courthouse in Bridgeport in January 2020.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Blackwell has been a member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities. From approximately 2017 until August 2020, GHB/Hotz members were aligned with members of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
In pleading guilty, Blackwell admitted that on February 7, 2018, he and an associate shot and attempted to kill “MJ,” a member or associate of the 150 gang. And, on January 27, 2020, he and others attempted to kill members and associates of the East End gang in a brazen afternoon shooting in front of a Bridgeport courthouse. At 12:11 p.m. on that date, Bridgeport Police responded to the area of 172 Golden Hill Street in Bridgeport after a Shot Spotter activation detected approximately 20 shots being fired in front of the state courthouse located there. Upon arrival, investigators discovered that four victims had been shot while sitting inside a black Chevrolet Impala. One victim was shot in the side of his chest and was left paralyzed and a second victim sustained multiple gunshot wounds to his back, shoulder and wrist. The victims’ vehicle had approximately 23 entry bullet holes in the driver’s side and windshield area.
Blackwell also appears in YouTube videos and in social media posts, where firearms are present, promoting the gang.
Blackwell pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, an offense that carries a maximum term of imprisonment of 20 years. He is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on December 28, 2021, at which time he faces a maximum term of imprisonment of 20 years.
Blackwell has been detained since August 6, 2020.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Naugatuck Police Department. The case is being prosecuted by Assistant U.S. Attorneys, Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle, Karen L. Peck and Stephanie T. Levick.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. If a group member elects to engage in gun violence, the focused attention of federal, state and local law enforcement will be directed at that entire group.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Beverlywood Man Pleads Guilty to Securities Fraud, Admitting Massive Ponzi that Falsely Claimed to License Foreign Film RightsRead the Press Release
LOS ANGELES – A Los Angeles man pleaded guilty this afternoon to a federal securities fraud charge and admitted operating a Ponzi scheme that raised at least $650 million with bogus claims that investor money would be used to acquire licensing rights to films that HBO and Netflix purportedly had agreed to distribute abroad.
Zachary Joseph Horwitz, 34, who resides in the Beverlywood neighborhood of Los Angeles, admitted his fraudulent scheme has caused more than $230 million in losses.
Horwitz pleaded guilty before United States District Judge Mark C. Scarsi, who scheduled a sentencing hearing for January 3, 2022. When he is sentenced, Horwitz will face a statutory maximum sentence of 20 years in federal prison.
Over the course of about five years, Horwitz used his company – 1inMM Capital LLC, which purported to be a film distribution company – to solicit investors with false claims their money would be used to purchase regional distribution rights to films and then would generate profits by licensing the rights to online platforms such as Netflix and HBO.
The scheme began in 2014, when groups of private investors began entering into hundreds of six- and 12-month promissory notes with 1inMM Capital based on Horwitz’s statements. The funds supplied under each note were supposed to provide money for 1inMM Capital to acquire the rights to a specific film. The promissory notes guaranteed a specified payment on a specified maturity date, as well as the specified amount to be paid at maturity, which included investment returns ranging from 25 percent to 45 percent.
“However, as [he] then knew, his representations concerning 1inMM Capital’s business activities and the promissory notes themselves were false and deceptive because 1inMM Capital generally did not and would not acquire or possess the film distribution rights for the films specified as collateral in the promissory notes, and 1inMM Capital did not and would not enter into any distribution agreements with the online streaming platforms for these specified films…and the purported copies of the distribution agreements were fake,” Horwitz admitted in his plea agreement.
Instead of using the funds to acquire films and arrange distribution deals, Horwitz operated 1inMM Capital as a Ponzi scheme, using victims’ money to repay earlier investors and to fund his own lifestyle, including the purchase of his $6 million Beverlywood residence.
Investors started to complain after 1inMM Capital began defaulting on notes in 2019, court documents states. In response, Horwitz “falsely reassured investors that any missed payments on promissory notes were caused by the actions of the online streaming platforms, and that payment on the notes would resume,” he admitted in the plea agreement. To support these false claims, Horwitz sent the investors emails and text messages he falsely claimed had been sent to him by representatives of the online streaming platforms.
Horwitz defrauded five major groups of private investors, but these entities derived funds from more than 250 sub-investors. By late 2019, 1inMM Capital began defaulting on all of its outstanding promissory notes, according to the plea agreement, in which Horwitz admits that he owes investors more than $230 million and that his scheme has caused substantial financial hardship to at least five investors.
The FBI is investigating this matter. The U.S. Securities and Exchange Commission provided substantial assistance.
Assistant United States Attorneys Alexander B. Schwab and David H. Chao of the Major Frauds Section are prosecuting this case.
Berkeley County man sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Medo Hallack, of Inwood, West Virginia, was sentenced today to 70 months of incarceration for his role in a drug conspiracy that spanned several states, Acting U.S. Attorney Randolph J. Bernard announced.
Hallack, 32, pleaded guilty in May 2021 to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Cocaine Hydrochloride.” Hallack admitted to working with another to sell cocaine hydrochloride, also known as “coke,” in August and September 2019 in Berkeley County. Hallack received a sentencing enhancement for firearms possession and violence. During the execution of search warrant for drug activity, he allegedly fired at officers and was engaged in a 45-minute standoff with law enforcement.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
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.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Related case here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Barge Company Will Preserve 649 Acres of Habitat and Pay over $2 Million for Injuries to Natural Resources Resulting from its Oil Spill in the Mississippi River near New OrleansRead the Press Release
Jeffersonville, Indiana-based American Commercial Barge Line LLC (American Commercial) has agreed to acquire and preserve 649 acres of woodland wildlife habitat near New Orleans, Louisiana, and pay over $2 million in damages, in addition to $1.32 million previously paid for damage assessment and restoration planning costs, under the Oil Pollution Act (OPA) and the Louisiana Oil Spill Prevention and Response Act (OSPRA), to resolve federal and State claims for injuries to natural resources resulting from an oil spill from one of its barges.
The United States and Louisiana concurrently filed a civil complaint with a proposed consent decree. The complaint seeks damages and costs under OPA and OSPRA for injuries to natural resources resulting from American Commercial’s July 2008 discharge of approximately 6,734 barrels (282,828 gallons) of No. 6 fuel oil into the Mississippi River upriver of New Orleans. The complaint alleges that the spill resulted from a collision that occurred when the American Commercial tug Mel Oliver, which was pushing a barge upriver, veered directly in front of the MV Tintomara, an ocean-going tanker ship sailing downriver. The oil spill spread more than 100 miles downriver and covered over 5,000 acres of shoreline habitat. The oil spill caused significant impact and injuries to aquatic habitats within the Mississippi River and along its shoreline, as well as to birds and other wildlife. The oil spill forced the closure of the river from River Mile Marker 98 (just upriver from New Orleans) to the Southwest Pass Sea Buoy, from July 23, 2008 until July 29, 2008. American Commercial, the Coast Guard, and the State were involved in extensive response and cleanup efforts, and American Commercial has cooperated with the federal and State trustees in the assessment of injuries to natural resources.
“This settlement secures full compensation for the damaged resources, including the permanent preservation of 649 acres of critical wildlife habitat along the Mississippi River just a few miles from downtown New Orleans,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “The restoration projects funded by this settlement will restore wildlife and wetlands, and enhance recreational opportunities for Louisiana’s residents and visitors.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Ultimately, this case demonstrates the DOJ’s firm commitment, along with our federal and state partners, to utilize the full panoply of legal remedies available to protect and remediate vital water sources and the diverse ecosystems found in southeastern Louisiana.”
“Local communities and economies in Louisiana depend on the Mississippi River and the vibrant ecosystems it supports,” said Director Nicole LeBoeuf of NOAA's National Ocean Service. “We are pleased to join with industry and our co-trustees to restore vital habitats, wildlife, and outdoor recreational areas injured by the oil spill, and look forward to working with the public to implement restoration projects.”
“The wildlife resources and outdoor recreation opportunities of the lower Mississippi are critical to Louisiana’s rich natural heritage,” said Regional Director Leopoldo Miranda-Castro of the U.S. Fish and Wildlife Service’s South Atlantic-Gulf & Mississippi-Basin Regional Office. This settlement will allow for the restoration of lost resources and services and will facilitate locally-driven conservation and management that ensures equitable access to the connected local communities.”
Under the proposed consent decree, American Commercial will acquire (at an estimated purchase price of $3.25 million) and preserve 649 acres of woodland habitat, consisting of hardwood forested wetland, swamp, relic wetlands, and open waters (i.e., canals), near the Mississippi River in upper Plaquemines Parish, Louisiana (Woodlands Parcel). The Woodlands Conservancy, a local nonprofit that currently manages the property for recreational and educational use, will hold title to the property and a conservation servitude will forever limit the use of the Woodlands Parcel to passive recreation, thereby protecting and preserving the ecological benefits of the property.
American Commercial will also pay $2.07 million to compensate for natural resource damages from the spill. The federal and State trustees will jointly use the cash payment to perform projects to restore or ameliorate the impacts to aquatic life, birds, river batture, wetlands, marshes, and recreational uses along the Mississippi River. The projects, which are described in the final Damage Assessment and Restoration Plan and Environmental Assessment, Mississippi River Oil Spill, Gretna – New Orleans, Louisiana, July 23, 2008, include habitat restoration activities at the Woodlands Parcel and marsh creation in the Pass-a-Loutre State Wildlife Management Area. American Commercial has paid $1.32 million to reimburse the federal and State trustees for their past damage assessment and restoration planning costs, as required under OPA and OSPRA.
Today’s action was filed by the Department of Justice and the Louisiana Oil Spill Coordinator’s Office, Department of Public Safety & Corrections (LOSCO) on behalf of the federal and State trustees for natural resources. The designated federal trustees for the natural resources impacted by American Commercial’s oil spill are the U.S. Department of Commerce through the National Oceanic and Atmospheric Administration and the U.S. Department of the Interior through the United States Fish and Wildlife Service. The designated state trustees are LOSCO, Louisiana Department of Natural Resources, Louisiana Department of Environmental Quality, Louisiana Department of Wildlife and Fisheries, and the Louisiana Coastal Protection and Restoration Authority. The federal and State trustees worked together to perform the injury assessment and to develop and adopt the restoration plan.
In an earlier related OPA enforcement action filed in 2011, the Department of Justice secured a settlement with American Commercial for $20,000,000 to reimburse the United States for OPA removal costs and damages.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
The United States and Louisiana concurrently filed a civil complaint with a proposed consent decree. The complaint seeks damages and costs under OPA and OSPRA for injuries to natural resources resulting from American Commercial’s July 2008 discharge of approximately 6,734 barrels (282,828 gallons) of No. 6 fuel oil into the Mississippi River upriver of New Orleans. The complaint alleges that the spill resulted from a collision that occurred when the American Commercial tug Mel Oliver, which was pushing a barge upriver, veered directly in front of the MV Tintomara, an ocean-going tanker ship sailing downriver. The oil spill spread more than 100 miles downriver and covered over 5,000 acres of shoreline habitat. The oil spill caused significant impact and injuries to aquatic habitats within the Mississippi River and along its shoreline, as well as to birds and other wildlife. The oil spill forced the closure of the river from River Mile Marker 98 (just upriver from New Orleans) to the Southwest Pass Sea Buoy, from July 23, 2008 until July 29, 2008. American Commercial, the Coast Guard, and the State were involved in extensive response and cleanup efforts, and American Commercial has cooperated with the federal and State trustees in the assessment of injuries to natural resources.
“This settlement secures full compensation for the damaged resources, including the permanent preservation of 649 acres of critical wildlife habitat along the Mississippi River just a few miles from downtown New Orleans,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “The restoration projects funded by this settlement will restore wildlife and wetlands, and enhance recreational opportunities for Louisiana’s residents and visitors.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Ultimately, this case demonstrates the DOJ’s firm commitment, along with our federal and state partners, to utilize the full panoply of legal remedies available to protect and remediate vital water sources and the diverse ecosystems found in southeastern Louisiana.”
“Local communities and economies in Louisiana depend on the Mississippi River and the vibrant ecosystems it supports,” said Director Nicole LeBoeuf of NOAA's National Ocean Service. “We are pleased to join with industry and our co-trustees to restore vital habitats, wildlife, and outdoor recreational areas injured by the oil spill, and look forward to working with the public to implement restoration projects.”
“The wildlife resources and outdoor recreation opportunities of the lower Mississippi are critical to Louisiana’s rich natural heritage,” said Regional Director Leopoldo Miranda-Castro of the U.S. Fish and Wildlife Service’s South Atlantic-Gulf & Mississippi-Basin Regional Office. This settlement will allow for the restoration of lost resources and services and will facilitate locally-driven conservation and management that ensures equitable access to the connected local communities.”
Under the proposed consent decree, American Commercial will acquire (at an estimated purchase price of $3.25 million) and preserve 649 acres of woodland habitat, consisting of hardwood forested wetland, swamp, relic wetlands, and open waters (i.e., canals), near the Mississippi River in upper Plaquemines Parish, Louisiana (Woodlands Parcel). The Woodlands Conservancy, a local nonprofit that currently manages the property for recreational and educational use, will hold title to the property and a conservation servitude will forever limit the use of the Woodlands Parcel to passive recreation, thereby protecting and preserving the ecological benefits of the property.
American Commercial will also pay $2.07 million to compensate for natural resource damages from the spill. The federal and State trustees will jointly use the cash payment to perform projects to restore or ameliorate the impacts to aquatic life, birds, river batture, wetlands, marshes, and recreational uses along the Mississippi River. The projects, which are described in the final Damage Assessment and Restoration Plan and Environmental Assessment, Mississippi River Oil Spill, Gretna – New Orleans, Louisiana, July 23, 2008, include habitat restoration activities at the Woodlands Parcel and marsh creation in the Pass-a-Loutre State Wildlife Management Area. American Commercial has paid $1.32 million to reimburse the federal and State trustees for their past damage assessment and restoration planning costs, as required under OPA and OSPRA.
Today’s action was filed by the Department of Justice and the Louisiana Oil Spill Coordinator’s Office, Department of Public Safety & Corrections (LOSCO) on behalf of the federal and State trustees for natural resources. The designated federal trustees for the natural resources impacted by American Commercial’s oil spill are the U.S. Department of Commerce through the National Oceanic and Atmospheric Administration and the U.S. Department of the Interior through the United States Fish and Wildlife Service. The designated state trustees are LOSCO, Louisiana Department of Natural Resources, Louisiana Department of Environmental Quality, Louisiana Department of Wildlife and Fisheries, and the Louisiana Coastal Protection and Restoration Authority. The federal and State trustees worked together to perform the injury assessment and to develop and adopt the restoration plan.
In an earlier related OPA enforcement action filed in 2011, the Department of Justice secured a settlement with American Commercial for $20,000,000 to reimburse the United States for OPA removal costs and damages.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
Barge Company Will Preserve 649 Acres of Habitat and Pay over $2 Million for Injuries to Natural Resources Resulting from its Oil Spill in the Mississippi River near New OrleansRead the Press Release
WASHINGTON – Jeffersonville, Indiana-based American Commercial Barge Line LLC (American Commercial) has agreed to acquire and preserve 649 acres of woodland wildlife habitat near New Orleans, Louisiana, and pay over $2 million in damages, in addition to $1.32 million previously paid for damage assessment and restoration planning costs, under the Oil Pollution Act (OPA) and the Louisiana Oil Spill Prevention and Response Act (OSPRA), to resolve federal and State claims for injuries to natural resources resulting from an oil spill from one of its barges.
The United States and Louisiana concurrently filed a civil complaint with a proposed consent decree. The complaint seeks damages and costs under OPA and OSPRA for injuries to natural resources resulting from American Commercial’s July 2008 discharge of approximately 6,734 barrels (282,828 gallons) of No. 6 fuel oil into the Mississippi River upriver of New Orleans. The complaint alleges that the spill resulted from a collision that occurred when the American Commercial tug Mel Oliver, which was pushing a barge upriver, veered directly in front of the MV Tintomara, an ocean-going tanker ship sailing downriver. The oil spill spread more than 100 miles downriver and covered over 5,000 acres of shoreline habitat. The oil spill caused significant impact and injuries to aquatic habitats within the Mississippi River and along its shoreline, as well as to birds and other wildlife. The oil spill forced the closure of the river from River Mile Marker 98 (just upriver from New Orleans) to the Southwest Pass Sea Buoy, from July 23, 2008 until July 29, 2008. American Commercial, the Coast Guard, and the State were involved in extensive response and cleanup efforts, and American Commercial has cooperated with the federal and State trustees in the assessment of injuries to natural resources.
“This settlement secures full compensation for the damaged resources, including the permanent preservation of 649 acres of critical wildlife habitat along the Mississippi River just a few miles from downtown New Orleans,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “The restoration projects funded by this settlement will restore wildlife and wetlands, and enhance recreational opportunities for Louisiana’s residents and visitors.”
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “Ultimately, this case demonstrates the DOJ’s firm commitment, along with our federal and state partners, to utilize the full panoply of legal remedies available to protect and remediate vital water sources and the diverse ecosystems found in southeastern Louisiana.”
“Local communities and economies in Louisiana depend on the Mississippi River and the vibrant ecosystems it supports,” said Director Nicole LeBoeuf of NOAA's National Ocean Service. “We are pleased to join with industry and our co-trustees to restore vital habitats, wildlife, and outdoor recreational areas injured by the oil spill, and look forward to working with the public to implement restoration projects.”
“The wildlife resources and outdoor recreation opportunities of the lower Mississippi are critical to Louisiana’s rich natural heritage,” said Regional Director Leopoldo Miranda-Castro of the U.S. Fish and Wildlife Service’s South Atlantic-Gulf & Mississippi-Basin Regional Office. This settlement will allow for the restoration of lost resources and services and will facilitate locally-driven conservation and management that ensures equitable access to the connected local communities.”
Under the proposed consent decree, American Commercial will acquire (at an estimated purchase price of $3.25 million) and preserve 649 acres of woodland habitat, consisting of hardwood forested wetland, swamp, relic wetlands, and open waters (i.e., canals), near the Mississippi River in upper Plaquemines Parish, Louisiana (Woodlands Parcel). The Woodlands Conservancy, a local nonprofit that currently manages the property for recreational and educational use, will hold title to the property and a conservation servitude will forever limit the use of the Woodlands Parcel to passive recreation, thereby protecting and preserving the ecological benefits of the property.
American Commercial will also pay $2.07 million to compensate for natural resource damages from the spill. The federal and State trustees will jointly use the cash payment to perform projects to restore or ameliorate the impacts to aquatic life, birds, river batture, wetlands, marshes, and recreational uses along the Mississippi River. The projects, which are described in the final Damage Assessment and Restoration Plan and Environmental Assessment, Mississippi River Oil Spill, Gretna – New Orleans, Louisiana, July 23, 2008, include habitat restoration activities at the Woodlands Parcel and marsh creation in the Pass-a-Loutre State Wildlife Management Area. American Commercial has paid $1.32 million to reimburse the federal and State trustees for their past damage assessment and restoration planning costs, as required under OPA and OSPRA.
Today’s action was filed by the Department of Justice and the Louisiana Oil Spill Coordinator’s Office, Department of Public Safety & Corrections (LOSCO) on behalf of the federal and State trustees for natural resources. The designated federal trustees for the natural resources impacted by American Commercial’s oil spill are the U.S. Department of Commerce through the National Oceanic and Atmospheric Administration and the U.S. Department of the Interior through the United States Fish and Wildlife Service. The designated state trustees are LOSCO, Louisiana Department of Natural Resources, Louisiana Department of Environmental Quality, Louisiana Department of Wildlife and Fisheries, and the Louisiana Coastal Protection and Restoration Authority. The federal and State trustees worked together to perform the injury assessment and to develop and adopt the restoration plan.
In an earlier related OPA enforcement action filed in 2011, the Department of Justice secured a settlement with American Commercial for $20,000,000 to reimburse the United States for OPA removal costs and damages.
The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
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Attorney General Merrick B. Garland Issues Statement on Recent Deaths and Injuries of Law Enforcement PersonnelRead the Press Release
U.S. Attorney General Merrick B. Garland today issued the following statement:
“This past week has been a reminder for all of us at the Department of Justice of the risks our deputies, agents and local law enforcement partners confront each day.
“I’m deeply saddened by the shooting this morning in Tucson, Arizona, that killed a DEA special agent and injured another DEA agent and a task force officer from the Tucson Police Department.
“We also learned of the tragic passing of Deputy U.S. Marshal and Senior Inspector Jared Keyworth, who, on Friday, succumbed to injuries sustained in a vehicle accident while assisting with a law enforcement operation late last month.
“We are grateful for the courage and selfless sacrifice of these heroes, and I join the entire Justice Department in conveying our support and deepest sympathies to their families.”
Alderson Man Pleads Guilty to Child Pornography OffenseRead the Press Release
BECKLEY, W.Va. – An Alderson man pleaded guilty to production and attempted production of child pornography. Jack Michael Smith, 34, was charged by indictments in the Southern District of West Virginia and the District of Oregon. The United States Attorney’s Office for the District of Oregon transferred their charges to the Southern District of West Virginia.
According to the plea agreement and statements made in court, Smith uploaded child pornography from a computer in West Virginia to Kik Messenger to share with others in March 2019. In October 2019, additional child pornography was shared from Smith’s account. A conversation with another Kik user indicated ongoing sexual abuse of a minor female. Smith admitted that he traveled from West Virginia to Oregon on a regular basis to engage in sexual activity with the minor female and took photographs of the minor female engaged in sexual activity with him.
Smith faces at least 15 years and up 30 years in prison when he is sentenced on January 28, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Homeland Security Investigations (HSI). Local law enforcement in Oregon assisted in the investigation.
United States District Judge Frank W. Volk presided over the hearing. Assistant United States Attorney Julie M. White is handling the prosecution.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00193.
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Saturday 2 October 2021
Leading ISIS Media Figure and Foreign Fighter Charged with Conspiring to Provide Material Support to a Terrorist Organization, Resulting in DeathRead the Press Release
ALEXANDRIA, Va. – As alleged in a criminal complaint unsealed today in the U.S. District Court for the Eastern District of Virginia, Mohammed Khalifa, a Saudi-born Canadian citizen who was a leading figure in the Islamic State of Iraq and al-Sham’s (ISIS) English Media Section and served as an ISIS fighter, was charged with conspiring to provide material support to ISIS, a foreign terrorist organization, resulting in death. Khalifa was captured overseas by the Syrian Democratic Forces (SDF) in January 2019. He was recently transferred into the custody of the FBI, at which point he was first brought to the Eastern District of Virginia.
“As alleged, Mohammed Khalifa not only fought for ISIS on the battlefield in Syria, but he was also the voice behind the violence,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through his alleged leading role in translating, narrating, and advancing ISIS’s online propaganda, Khalifa promoted the terrorist group, furthered its worldwide recruitment efforts, and expanded the reach of videos that glorified the horrific murders and indiscriminate cruelty of ISIS. EDVA and our partners have a long history of prosecuting national security cases, and we are honored to serve once again in this effort to seek justice on behalf of the United States and the victims of ISIS’s brutality.”
As alleged in the criminal complaint, Mohammed Khalifa, a/k/a “Abu Ridwan Al-Kanadi,” a/k/a “Abu Muthanna Al-Muhajir,” 38, of Canada, served in prominent roles within ISIS starting in 2013 and continuing until his capture by the SDF in January 2019 following a firefight between ISIS fighters and the SDF. In addition to allegedly serving as an ISIS fighter, Khalifa allegedly served as a lead translator in ISIS’s propaganda production and the English-speaking narrator on multiple violent ISIS recruitment videos.
“This arrest is the first step in holding the defendant accountable for his alleged terrorist activity, which included serving as an ISIS fighter and an important member of the ISIS media bureau,” said Acting Assistant Attorney General for National Security Mark J. Lesko. “As alleged in the complaint, the defendant and others engaged in a wide-ranging conspiracy to provide material support to ISIS, with the conspirators serving the terrorist organization in a variety of capacities. As alleged, that conspiracy resulted in the death of numerous others at the hands of ISIS members and fighters. The National Security Division and our partners are committed to holding accountable those who provide material support to foreign terrorist organizations. I want to thank all of the agents, analysts, and prosecutors who are responsible for this case.”
“Let there be no doubt, the FBI will hold terrorists and those who provide material support to terrorist organizations accountable for their actions,” stated Assistant Director Timothy Langan, FBI Counterterrorism Division. “The unsealing of the charges today demonstrates the FBI’s tireless dedication and commitment to pursue those who join foreign terrorist organizations like ISIS. The defendant is alleged to have, among other things, played an integral role in the recruitment and radicalization of Westerners through the production, narration, and dissemination of English-language ISIS propaganda, including the Flames of War videos that depicted the brutal execution of ISIS-held prisoners and hostages. He will now face justice inside of a U.S. courtroom for his actions. We will continue to present a united front, with our U.S. government and international partners, in the fight against ISIS, those who support ISIS, and other terrorist groups.”
“As alleged in the complaint, as one of the leading figures in ISIS’s English media section, Mohammed Khalifa contributed to the radicalization of individuals through his English narration of ISIS recruitment propaganda,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “While many Americans are aware of the brutal and violent crimes committed by many ISIS actors, ISIS’s efforts to radicalize individuals to travel to Syria and commit violence on its behalf were equally horrendous. The charges announced today, which are the result of years of diligent work by the FBI’s Washington Field Office and our partners, are a reminder to those who continue to support ISIS around the world that the U.S. Government has not forgotten your crimes. We will find you and hold you accountable.”
The complaint also alleges that Khalifa traveled to Syria in the spring of 2013 with the intent of becoming a foreign fighter and ultimately joining ISIS. He joined ISIS in or around November 2013 and swore allegiance to then-ISIS leader Abu Bakr al-Baghdadi. In early 2014, he was recruited to join ISIS’s Media Bureau due in part to his linguistic capabilities as a fluent English and Arabic speaker. Khalifa played an important role in the production and dissemination of ISIS propaganda across multiple media platforms targeting Western audiences. A primary focus of much of Khalifa’s propaganda production was aimed at enticing ISIS supporters to travel to ISIS-controlled areas to join ISIS or to conduct attacks in the West, including in the United States, on ISIS’s behalf. Khalifa actively participated in armed hostilities on behalf of ISIS. Just prior to his capture by the SDF on or about January 13, 2019, Khalifa engaged in armed conflict on behalf of ISIS, including throwing grenades against opposing combatants.
The complaint further alleges that Khalifa was a prominent figure within the ISIS Media Bureau, the “Diwan of Central Media,” and assisted in the translation and narration of approximately 15 total videos created and distributed by ISIS. The productions narrated by Khalifa include two of the most influential and exceedingly violent ISIS propaganda videos: “Flames of War: Fighting Has Just Begun,” distributed on September 19, 2014, and “Flames of War II: Until the Final Hour,” distributed on November 29, 2017. These videos, containing English narration by Khalifa, were part of an ISIS media campaign promoting violence committed against U.S. citizens and other countries’ citizens in order to incite further violence against the United States, allied nations, and their citizens. The videos depict glamorized portrayals of ISIS and its fighters as well as scenes of violence, including depictions of unarmed prisoners being executed, depictions of ISIS attacks in the United States, and footage of ISIS attacks and fighting in what is described as Syria and Egypt.
Khalifa also allegedly narrated a series of recruitment videos entitled “Inside the Khilafah” that depicted various aspects of daily life within the Islamic State and featured ISIS members encouraging potential recruits to join ISIS and conduct terrorist attacks against non-Muslims. The narration in one of these videos encourages recruits unable to leave their home countries to join ISIS in conducting attacks in countries outside the Islamic State, displaying footage of ISIS attacks in Europe, including attacks in Paris, France; Brussels, Belgium; and Nice, France. The video also includes a voice recording of Omar Mateen, the Pulse Nightclub mass shooter, declaring his allegiance to ISIS during the June 12, 2016 terrorist attack in Orlando, Florida.
Productions by the ISIS Media Bureau during the time period in which Khalifa was allegedly a prominent member include videos or images depicting: the beheadings of American hostages James Wright Foley, Steven Joel Sotloff, and Peter Edward Kassig; an announcement concerning the death of American hostage Kayla Jean Mueller; the beheadings of British citizens David Haines and Alan Henning; the decapitated body of Japanese citizen Haruna Yukawa; and the beheading of Japanese citizen Kenji Goto.
Khalifa is charged with conspiring to provide material support or resources to a foreign terrorist organization, resulting in death. If convicted, he faces a maximum penalty of life in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Dennis M. Fitzpatrick; Acting United States Attorney Raj Parekh; and Assistant U.S. Attorneys John T. Gibbs, and Aidan Taft Grano-Mickelson, all from the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the Justice Department are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-mj-34.
Affidavit is available here.A criminal complaint contains allegations that a defendant has committed one or more crimes. The defendant is presumed innocent until and unless proven guilty.
ISIS Media Figure and Foreign Fighter Charged with Conspiring to Provide Material Support to a Terrorist Organization, Resulting in DeathRead the Press Release
As alleged in a criminal complaint unsealed today in the U.S. District Court for the Eastern District of Virginia, Mohammed Khalifa, a Saudi-born Canadian citizen, who was a leading figure in the Islamic State of Iraq and al-Sham’s (ISIS) English Media Section and served as an ISIS fighter, was charged with conspiring to provide material support to ISIS, a designated foreign terrorist organization, resulting in death. Khalifa was captured overseas by the Syrian Democratic Forces (SDF) in January 2019. He was recently transferred into the custody of the FBI, at which point he was first brought to the Eastern District of Virginia.
As alleged in the criminal complaint, Mohammed Khalifa, aka Abu Ridwan Al-Kanadi and Abu Muthanna Al-Muhajir, 38, of Canada, served in prominent roles within ISIS starting in 2013 and continuing until his capture by the SDF in January 2019 following a firefight between ISIS fighters and the SDF. In addition to allegedly serving as an ISIS fighter, Khalifa allegedly served as a lead translator in ISIS’s propaganda production and the English-speaking narrator on multiple violent ISIS recruitment videos.
“This arrest is the first step in holding the defendant accountable for his alleged terrorist activity, which included serving as an ISIS fighter and an important member of the ISIS media bureau,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “As alleged in the complaint, the defendant and others engaged in a wide-ranging conspiracy to provide material support to ISIS, with the conspirators serving the terrorist organization in a variety of capacities. As alleged, that conspiracy resulted in the death of numerous others at the hands of ISIS members and fighters. The National Security Division and our partners are committed to holding accountable those who provide material support to foreign terrorist organizations. I want to thank all of the agents, analysts, and prosecutors who are responsible for this case.”
“As alleged, Mohammed Khalifa not only fought for ISIS on the battlefield in Syria, but he was also the voice behind the violence,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Through his alleged leading role in translating, narrating, and advancing ISIS’s online propaganda, Khalifa promoted the terrorist group, furthered its worldwide recruitment efforts, and expanded the reach of videos that glorified the horrific murders and indiscriminate cruelty of ISIS. EDVA and our partners have a long history of prosecuting national security cases, and we are honored to serve once again in this effort to seek justice on behalf of the United States and the victims of ISIS’s brutality.”
“Let there be no doubt, the FBI will hold terrorists and those who provide material support to terrorist organizations accountable for their actions,” said Assistant Director Timothy Langan of the FBI’s Counterterrorism Division. “The unsealing of the charges today demonstrates the FBI’s tireless dedication and commitment to pursue those who join foreign terrorist organizations like ISIS. The defendant is alleged to have, among other things, played an integral role in the recruitment and radicalization of Westerners through the production, narration, and dissemination of English-language ISIS propaganda, including the Flames of War videos that depicted the brutal execution of ISIS-held prisoners and hostages. He will now face justice inside of a U.S. courtroom for his actions. We will continue to present a united front, with our U.S. government and international partners, in the fight against ISIS, those who support ISIS, and other terrorist groups.”
“As alleged in the complaint, as one of the leading figures in ISIS’ English media section, Mohammed Khalifa contributed to the radicalization of individuals through his English narration of ISIS recruitment propaganda,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “While many Americans are aware of the brutal and violent crimes committed by many ISIS actors, ISIS’ efforts to radicalize individuals to travel to Syria and commit violence on its behalf were equally horrendous. The charges announced today, which are the result of years of diligent work by the FBI’s Washington Field Office and our partners, are a reminder to those who continue to support ISIS around the world that the U.S. Government has not forgotten your crimes. We will find you and hold you accountable.”
The complaint also alleges that Khalifa traveled to Syria in the spring of 2013 with the intent of becoming a foreign fighter and ultimately joining ISIS. He joined ISIS in or around November 2013 and swore allegiance to then-ISIS leader Abu Bakr al-Baghdadi. In early 2014, he was recruited to join ISIS’s Media Bureau due in part to his linguistic capabilities as a fluent English and Arabic speaker. Khalifa played an important role in the production and dissemination of ISIS propaganda across multiple media platforms targeting Western audiences. A primary focus of much of Khalifa’s propaganda production was aimed at enticing ISIS supporters to travel to ISIS-controlled areas to join ISIS or to conduct attacks in the West, including in the United States, on ISIS’s behalf. Khalifa actively participated in armed hostilities on behalf of ISIS. Just prior to his capture by the SDF on or about Jan. 13, 2019, Khalifa engaged in armed conflict on behalf of ISIS, including throwing grenades against opposing combatants.
The complaint further alleges that Khalifa was a prominent figure within the ISIS Media Bureau, the “Diwan of Central Media,” and assisted in the translation and narration of approximately 15 total videos created and distributed by ISIS. The productions narrated by Khalifa include two of the most influential and exceedingly violent ISIS propaganda videos: “Flames of War: Fighting Has Just Begun,” distributed on Sept. 19, 2014, and “Flames of War II: Until the Final Hour,” distributed on Nov. 29, 2017. These videos, containing English narration by Khalifa, were part of an ISIS media campaign promoting violence committed against U.S. citizens and other countries’ citizens in order to incite further violence against the United States, allied nations and their citizens. The videos depict glamorized portrayals of ISIS and its fighters as well as scenes of violence, including depictions of unarmed prisoners being executed, depictions of ISIS attacks in the United States, and footage of ISIS attacks and fighting in what is described as Syria and Egypt.
Khalifa also allegedly narrated a series of recruitment videos entitled “Inside the Khilafah” that depicted various aspects of daily life within the Islamic State and featured ISIS members encouraging potential recruits to join ISIS and conduct terrorist attacks against non-Muslims. The narration in one of these videos encourages recruits unable to leave their home countries to join ISIS in conducting attacks in countries outside the Islamic State, displaying footage of ISIS attacks in Europe, including attacks in Paris, France; Brussels, Belgium; and Nice, France. The video also includes a voice recording of Omar Mateen, the Pulse Nightclub mass shooter, declaring his allegiance to ISIS during the June 12, 2016, terrorist attack in Orlando, Florida.
Productions by the ISIS Media Bureau during the time period in which Khalifa was allegedly a prominent member include videos or images depicting: the beheadings of American hostages James Wright Foley, Steven Joel Sotloff and Peter Edward Kassig; an announcement concerning the death of American hostage Kayla Jean Mueller; the beheadings of British citizens David Haines and Alan Henning; the decapitated body of Japanese citizen Haruna Yukawa; and the beheading of Japanese citizen Kenji Goto.
Khalifa is charged with conspiring to provide material support or resources to a foreign terrorist organization, resulting in death. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Raj Parekh and Assistant U.S. Attorneys Dennis M. Fitzpatrick, John T. Gibbs and Aidan Taft Grano-Mickelson, all from the U.S. Attorney’s Office for the Eastern District of Virginia, and Trial Attorney Alicia H. Cook of the National Security Division‘s Counterterrorism Section are prosecuting the case.
A criminal complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.